Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | INGEVITY CORPORATION | ||
Entity Central Index Key | 1,653,477 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 1,433,127,614 | ||
Entity Common Stock, Shares Outstanding | 42,125,358 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
Net sales | $ 908.3 | $ 958.3 | $ 1,035.5 | |
Cost of sales | 633.9 | 682.9 | 717 | |
Gross profit | 274.4 | 275.4 | 318.5 | |
Selling, general and administrative expenses | 114 | 110.1 | 107.7 | |
Separation costs | 17.5 | 17.2 | 0.4 | |
Restructuring and other (income) charges, net | 41.2 | (7.5) | (5.6) | |
Other (income) expense, net | (3.2) | (1) | (2.5) | |
Interest expense | 19.3 | 20.1 | 16.4 | |
Interest income | (1.4) | 0 | 0 | |
Income before income taxes | 87 | 136.5 | 202.1 | |
Provision for income taxes | 42.6 | 52.2 | 69.5 | |
Net income (loss) | 44.4 | 84.3 | 132.6 | |
Less: Net income (loss) attributable to noncontrolling interests | 9.2 | 4.6 | 3.6 | |
Net income (loss) attributable to Ingevity stockholders | $ 35.2 | $ 79.7 | $ 129 | |
Basic and Diluted earnings (loss) per share | ||||
Basic earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | [1] | $ 0.83 | $ 1.89 | $ 3.06 |
Diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | [1] | $ 0.83 | $ 1.89 | $ 3.06 |
[1] | On May 15, 2016, WestRock distributed 42,102 thousand shares of Ingevity's common stock to holders of its common stock. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 are calculated using the number of common shares distributed on May 15, 2016. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. Refer to Note 20 for information regarding the calculation of basic and diluted earnings per share. |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Parentheticals) | May 15, 2016shares |
Affiliated Entity | |
Shares issued (in shares) | 42,102,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 44.4 | $ 84.3 | $ 132.6 | |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | [1] | (2.9) | (9.2) | (6.7) |
Derivative instruments: | ||||
Unrealized gain (loss), net of tax of zero, $0.6 and $0.6 | 0 | (1.9) | (1.2) | |
Reclassifications of deferred derivative instruments (gain) loss, included in net income | [2] | 1 | 1.9 | 0 |
Total derivative instruments, net of tax of ($0.6), zero and $0.6 | 1 | 0 | (1.2) | |
Pension & Other postretirement benefits (3) | ||||
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax of $0.3, zero and zero (4) | [3],[4] | (0.6) | 0 | 0 |
Total pension and other postretirement benefits, net of tax of $0.3, zero and zero | [4] | (0.6) | 0 | 0 |
Other comprehensive income (loss), net of tax of ($0.3), zero and $0.6 | (2.5) | (9.2) | (7.9) | |
Comprehensive income (loss) | 41.9 | 75.1 | 124.7 | |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 9.2 | 4.6 | 3.6 | |
Comprehensive income (loss) attributable to the Ingevity stockholders | $ 32.7 | $ 70.5 | $ 121.1 | |
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries or affiliates since it is our intention that such earnings will remain invested in those affiliates permanently. | |||
[2] | Amounts reflected in "Cost of sales" on the Consolidated Statements of Operations. | |||
[3] | At December 31st of each year, we remeasure our pension and other postretirement plan obligations at which time we record any actuarial gains (losses) and prior service (costs) credits to other comprehensive income. | |||
[4] | During the years ended December 31, 2016, 2015 and 2014, there were no reclassifications of net actuarial gains (losses) or prior service (costs) credits. |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized derivative gain (loss), tax | $ 0 | $ 600,000 | $ 600,000 |
Reclassification of derivative gain (loss), tax | (600,000) | (600,000) | 0 |
Total derivative gain (loss), tax | (600,000) | 0 | 600,000 |
Unrealized actuarial gains (losses) and prior service (costs) credits, tax | 300,000 | 0 | 0 |
Total pension and other postretirement benefits, tax | 300,000 | 0 | 0 |
Other comprehensive income, tax | $ (300,000) | $ 0 | $ 600,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 30.5 | $ 32 |
Accounts receivable, net | 89.8 | 95.2 |
Inventories, net | 151.2 | 148.9 |
Prepaid and other current assets | 23.7 | 20.2 |
Current assets | 295.2 | 296.3 |
Property, plant and equipment, net | 422.8 | 437.5 |
Goodwill | 12.4 | 11.9 |
Other intangibles, net | 7.3 | 10 |
Deferred income taxes | 3.4 | 0 |
Restricted investment | 69.7 | 0 |
Other assets | 22 | 23 |
Total Assets | 832.8 | 778.7 |
Liabilities and equity | ||
Accounts payable | 79.2 | 64.8 |
Accrued expenses | 19.3 | 14.8 |
Accrued payroll and employee benefits | 25.6 | 10 |
Notes payable and current maturities of long-term debt | 7.5 | 9.4 |
Income taxes payable | 5.3 | 0.8 |
Current liabilities | 136.9 | 99.8 |
Long-term debt including capital lease obligations | 481.3 | 80 |
Deferred income taxes | 69.8 | 74.3 |
Other liabilities | 10.2 | 7.2 |
Total Liabilities | 698.2 | 261.3 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Net parent investment | 0 | 530.1 |
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; no issued and outstanding at 2016 and 2015) | 0 | 0 |
Common stock (par value $0.01 per share; 300,000,000 shares authorized; 42,116,430 issued and 42,115,824 outstanding at 2016; no shares issued in 2015) | 0.4 | 0 |
Additional paid-in capital | 129.9 | 0 |
Retained earnings | 16 | 0 |
Accumulated other comprehensive loss | (19) | (16.5) |
Treasury stock, common stock, at cost (606 shares at 2016; no shares at 2015) | (0.3) | 0 |
Total Ingevity stockholders' equity | 127 | 513.6 |
Noncontrolling interests | 7.6 | 3.8 |
Total Equity | 134.6 | 517.4 |
Total Liabilities and Equity | $ 832.8 | $ 778.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, shares authorized (shares) | 300,000,000 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0 |
Common stock, shares issued (shares) | 42,116,430 | 0 |
Common stock shares outstanding (shares) | 42,115,824 | 0 |
Treasury stock, shares | 606 | 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Net parent investment | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interests | ||
Beginning balance, value at Dec. 31, 2013 | $ 326.3 | $ 0 | $ 323.7 | $ 0 | $ 0 | $ 0.5 | $ 0 | $ 2.1 | ||
Beginning balance, shares at Dec. 31, 2013 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 132.6 | 129 | 3.6 | |||||||
Other comprehensive income (loss) before reclassifications | [1] | (7.8) | (7.8) | |||||||
Noncontrolling interest distributions | (3.1) | (3.1) | ||||||||
Transaction with parent | (31.4) | (31.4) | ||||||||
Ending balance, shares, value at Dec. 31, 2014 | 416.6 | $ 0 | 421.3 | 0 | 0 | (7.3) | 0 | 2.6 | ||
Ending balance, shares at Dec. 31, 2014 | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 84.3 | 79.7 | 4.6 | |||||||
Other comprehensive income (loss) before reclassifications | [1] | (9.2) | (9.2) | |||||||
Noncontrolling interest distributions | (3.4) | (3.4) | ||||||||
Transaction with parent | 29.1 | 29.1 | ||||||||
Ending balance, shares, value at Dec. 31, 2015 | $ 517.4 | $ 0 | 530.1 | 0 | 0 | (16.5) | 0 | [2] | 3.8 | |
Ending balance, shares at Dec. 31, 2015 | 0 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | $ 44.4 | 19.2 | 16 | 9.2 | ||||||
Other comprehensive income (loss) before reclassifications | [1] | (2.5) | (2.5) | |||||||
Noncontrolling interest distributions | (5.4) | (5.4) | ||||||||
Transaction with parent | 24.8 | 24.8 | ||||||||
Issuance of common stock at separation, value | 0 | $ 0.4 | (0.4) | |||||||
Common stock issued - compensation plans | (0.3) | (0.3) | [2] | |||||||
Common stock issued - compensation plans, shares | 14,800 | |||||||||
Issuance of common stock at separation, shares | 42,101,600 | |||||||||
Cash distributed to WestRock at Separation | (448.5) | (448.5) | ||||||||
Reclassifications from net parent investment to additional paid in capital | 0 | (125.6) | 125.6 | |||||||
Stock-based compensation expense | 4.7 | 4.7 | ||||||||
Ending balance, shares, value at Dec. 31, 2016 | $ 134.6 | $ 0.4 | $ 0 | $ 129.9 | $ 16 | $ (19) | $ (0.3) | [2] | $ 7.6 | |
Ending balance, shares at Dec. 31, 2016 | 42,115,824 | 42,116,400 | ||||||||
[1] | See Consolidated Statements of Comprehensive Income (Loss).The accompanying notes are an integral part of these financial statements. | |||||||||
[2] | During the years ended December 31, 2016, 2015, 2014 and 2013, there were no Preferred shares issued and outstanding. Additionally during these periods, the dollar value of Treasury stock held was immaterial. Therefore, Preferred stock activity has been excluded from the Consolidated Statements of Stockholders' Equity. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash provided by (used in) operating activities: | |||
Net income (loss) | $ 44.4 | $ 84.3 | $ 132.6 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 38.8 | 34.6 | 32.3 |
Deferred income taxes | (7.9) | 8.3 | 2.2 |
Disposal/impairment of assets | 1.5 | 3.9 | 0.8 |
Restructuring and other (income) charges, net | 41.2 | (7.5) | (5.6) |
Share-based compensation | 4.7 | 0 | 0 |
Pension and other postretirement benefit costs | 0.7 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 5.7 | 8.5 | (4.8) |
Inventories, net | (2.2) | (24.1) | (27.6) |
Prepaid and other current assets | (3.9) | (6.7) | (5.3) |
Accounts payable | (1.5) | (22.3) | 6.9 |
Accrued expenses | (1.9) | 1 | 6.4 |
Accrued payroll and employee benefit costs | 15 | (7.8) | 0 |
Income tax payable | 4.5 | 0.8 | 0 |
Pension contribution | (1) | 0 | 0 |
Restructuring and other spending | (8.3) | 0 | 0 |
Changes in all other operating assets and liabilities, net | (1.9) | (0.8) | 0.6 |
Net cash provided by (used in) operating activities | 127.9 | 72.2 | 138.5 |
Cash provided by (used in) investing activities: | |||
Capital expenditures | (56.7) | (100.9) | (101.8) |
Proceeds from divestiture | 0 | 11 | 6 |
Restricted investment | (69.7) | 0 | 0 |
Other investing activities, net | 0 | 0.6 | (1) |
Net cash provided by (used in) investing activities | (126.4) | (89.3) | (96.8) |
Cash provided by (used in) financing activities: | |||
Net borrowings under our revolving credit facility | 111.9 | 0 | 0 |
Proceeds from long-term borrowings | 300 | 0 | 0 |
Payments on long-term borrowings | 0 | (5.8) | 0 |
Debt issuance costs | (3.6) | 0 | 0 |
Borrowings (repayments) of notes payable and other short-term borrowings, net | (9.4) | 7.1 | 2.8 |
Taxes withheld for employee equity award vesting | (0.3) | 0 | 0 |
Noncontrolling interest distributions | (5.4) | (3.4) | (3.1) |
Cash distributed to WestRock at Separation | (448.5) | 0 | 0 |
Transactions with WestRock, net | 51.9 | 29.1 | (31.4) |
Net cash provided by (used in) financing activities | (3.4) | 27 | (31.7) |
Increase (decrease) in cash and cash equivalents | (1.9) | 9.9 | 10 |
Effect of exchange rate changes on cash | 0.4 | 2.2 | (1.6) |
Cash and cash equivalents | |||
Change in cash and cash equivalents | (1.5) | 12.1 | 8.4 |
Cash and cash equivalents at beginning of period | 32 | 19.9 | 11.5 |
Cash and cash equivalents at end of period | 30.5 | 32 | 19.9 |
Supplemental cash flow information: | |||
Cash paid for interest | 15.1 | 6.5 | 6.5 |
Cash paid for taxes | 22.4 | 1.4 | 0 |
Purchases of property, plant and equipment in accounts payable | $ 3.7 | $ 1.3 | $ 15.6 |
Background
Background | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Ingevity Corporation ("Ingevity," "we," "us" or "our") is a leading global manufacturer of specialty chemicals and high performance activated carbon materials. Ingevity participates in attractive, higher growth sectors of the global specialty chemicals industry. Our specialty chemicals products serve as critical inputs used in a variety of high performance applications, primarily in three product families: pavement technologies, oilfield technologies and industrial specialties. We are also the leading global manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats, with over 750 million units installed globally over the 30-year history of this business. We report in two business segments, Performance Materials and Performance Chemicals. The Performance Materials segment primarily produces automotive activated carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The carbon products capture and store gasoline vapor emissions that would otherwise be released into the atmosphere as volatile organic compounds which contain hazardous air pollutants. The stored vapors are then largely purged from the carbon and directed to the engine where they are used as supplemental power for the vehicle. The segment also produces a number of other carbon products for food, water, beverage and chemical purification. The Performance Materials segment serves customers globally from its manufacturing operations in the United States and China. The Performance Chemicals segment develops, manufactures and sells a wide range of specialty chemicals primarily derived from co-products of the kraft pulping process. Products include performance chemicals derived from pine chemicals used in asphalt paving, oilfield technologies and other diverse industrial specialty applications such as adhesives, agrochemical dispersants, publication inks, lubricants and petroleum. The Performance Chemicals segment serves customers globally from its manufacturing operations in the United States. Separation and Distribution On May 15, 2016 (the "Distribution Date"), WestRock Company (“WestRock”) completed the previously announced separation of the business comprising WestRock's Specialty Chemicals reporting segment, and certain other assets and liabilities, into Ingevity, a separate and distinct public company (herein referred to as the "Separation"). The Separation was completed by way of a distribution of all of the then outstanding shares of common stock of Ingevity through a dividend in kind of Ingevity's common stock (par value $0.01 ) to holders of record of WestRock common stock (par value $0.01 ) as of the close of business of May 4, 2016 (the "Record Date"). On the Distribution Date, each holder of WestRock's common stock received one share of Ingevity's common stock for every six shares of WestRock's common stock held on the Record Date. The Separation was completed pursuant to a Separation and Distribution Agreement and other agreements with WestRock related to the Separation, including an Employee Matters Agreement ("EMA"), a Tax Matters Agreement, a Transition Services Agreement and an Intellectual Property Agreement (collectively, the "Separation Agreements"), each of which was filed as an exhibit to our Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 16, 2016. The Separation Agreements govern the relationship among Ingevity and WestRock following the Separation and provide for the allocation of various assets, liabilities, rights and obligations. The Separation Agreements also include arrangements for transition services to be provided by WestRock to Ingevity. The Registration Statement was declared effective by the Securities and Exchange Commission ("SEC") on April 25, 2016, and Ingevity's common stock began "regular-way" trading on the New York Stock Exchange ("NYSE") on May 16, 2016 under the symbol "NGVT". Unless the context otherwise requires, references in these Notes to the Consolidated Financial Statements to "we," "us," "our" and "Ingevity" refer to Ingevity Corporation and its consolidated subsidiaries after giving effect to the Separation. |
Basis of Consolidation and Pres
Basis of Consolidation and Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation Ingevity did not operate as a separate, stand-alone entity for the full period covered by these Consolidated Financial Statements. Our consolidated balance sheet as of December 31, 2016 consists of the consolidated balances of Ingevity as prepared on a stand-alone basis. Our consolidated balance sheet as of December 31, 2015 and consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2016, 2015 and 2014, respectively as well as our consolidated statements of cash flows for the years ended December 31, 2016, 2015 and 2014, respectively, have been prepared on a “carve out” basis for the periods and dates prior to the spin-off on May 15, 2016. Prior to the Separation, Ingevity's operations were included in WestRock's financial results and were comprised of certain WestRock wholly owned legal entities for which Ingevity was the sole business and components of legal entities in which Ingevity operated in conjunction with other WestRock businesses. For periods prior to May 15, 2016, the accompanying Consolidated Financial Statements were prepared from WestRock's historical accounting records and are presented on a stand-alone basis as if the business operations had been conducted independently from WestRock. Prior to May 15, 2016, WestRock's net investments in these operations is shown in lieu of Ingevity stockholder's equity in the Consolidated Financial Statements. The Consolidated Financial Statements include the historical operations, assets and liabilities of the legal entities that are considered to comprise the Ingevity business. In all periods presented within these Consolidated Financial Statements all intercompany accounts and transactions have been eliminated. The Consolidated Financial Statements include the accounts of Ingevity and subsidiaries in which a controlling interest is maintained. If Ingevity's ownership is less than 100 percent, the outside stockholders' interests are shown as noncontrolling interests. In all periods presented within the Consolidated Financial Statements our noncontrolling interest represents the 30 percent ownership interest held by a third party U.S. based company in our consolidated Purification Cellutions LLC legal entity. Purification Cellutions LLC is the legal entity that owns the technology associated with, and manufactures, our structured honeycomb products within our Performance Materials segment. For purposes of these Consolidated Financial Statements, the term “WestRock” herein refers to the legacy operations of MeadWestvaco Corporation (“MWV”) and its subsidiaries prior to the July 1, 2015 merger of MWV and Rock-Tenn Company ("Rock-Tenn") (the "Merger") and the combined operations of Rock-Tenn and MWV subsequent to the Merger. References to Ingevity’s historical business and operations refer to the business and operations of the Specialty Chemicals Business of WestRock, or prior to the Merger, MWV, that were transferred to Ingevity in connection with the Separation. All of the allocations and estimates in the Consolidated Financial Statements prior to May 15, 2016 are based on assumptions that management believes are reasonable. However, the Consolidated Financial Statements included herein may not be indicative of the financial position, results of operations and cash flows of Ingevity in the future or if Ingevity had been a separate, stand-alone entity during the periods presented. |
Correction to previously issued
Correction to previously issued financial statements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Correction to previously issued financial statements | Correction to previously issued financial statements During the quarters and year ended December 31, 2016, we identified various errors related to our previously issued annual and interim Consolidated Financial Statements. Specifically, in the first quarter of 2016, we determined that $3.3 million of cumulative intercompany profit in inventory had not been eliminated in prior years. During the fourth quarter, we also identified errors related to the understatement of accruals for services rendered in prior years, as well as errors related to the timing for which revenue has been previously recognized. A cash flow reclassification error decreased 2014 cash flow from operating activities and increased cash flow from investing activities by $6.0 million was also corrected as part of this revision. The cumulative impact of the errors identified in 2016 had resulted in the overstatement of pre-tax and net income of $1.6 million and $1.0 million in 2015 and $0.9 million and $0.6 million in 2014, and a cumulative impact to net parent investment of $2.5 million as of January 1, 2014. In addition, such errors resulted in the $9.4 million and $5.5 million overstatement of revenue in 2015 and 2014, respectively. Although Ingevity’s management has determined that the impact of such errors is immaterial to all previously issued financial statements, we revised the previously issued financial statements for the periods ended December 31, 2015 and 2014, as shown below, in connection with this 2016 Form 10-K, and those corrections will also be reflected in the Company’s future Form 10-Q filings. Year ended December 31, In millions 2015 2014 As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Statement of Operations Net sales $ 967.7 (9.4 ) $ 958.3 $ 1,041.0 (5.5 ) $ 1,035.5 Cost of sales 687.0 (4.1 ) 682.9 718.3 (1.3 ) 717.0 Gross profit 280.7 (5.3 ) 275.4 322.7 (4.2 ) 318.5 Selling, general and administrative expenses 113.8 (3.7 ) 110.1 111.0 (3.3 ) 107.7 Income before income taxes 138.1 (1.6 ) 136.5 203.0 (0.9 ) 202.1 Provision for income taxes 52.8 (0.6 ) 52.2 69.8 (0.3 ) 69.5 Net income (loss) 85.3 (1.0 ) 84.3 133.2 (0.6 ) 132.6 Less: Net income (loss) attributable to noncontrolling interests 5.0 (0.4 ) 4.6 3.8 (0.2 ) 3.6 Net income (loss) attributable to Ingevity stockholders $ 80.3 (0.6 ) $ 79.7 $ 129.4 (0.4 ) $ 129.0 Year ended December 31, In millions 2015 2014 Segment Information As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Net sales Performance Materials $ 256.6 (0.2 ) $ 256.4 $ 249.4 — $ 249.4 Performance Chemicals 711.1 (9.2 ) 701.9 791.6 (5.5 ) 786.1 Total net sales $ 967.7 (9.4 ) $ 958.3 $ 1,041.0 (5.5 ) $ 1,035.5 Segment operating profit Performance Materials $ 81.1 (1.4 ) 79.7 $ 90.0 (0.5 ) 89.5 Performance Chemicals 86.8 (0.2 ) 86.6 124.2 (0.4 ) 123.8 Total segment operating profit $ 167.9 (1.6 ) $ 166.3 $ 214.2 (0.9 ) $ 213.3 Year ended December 31, In millions 2015 Balance Sheet As reported Increase/(decrease) Revised Assets Accounts receivable, net $ 96.2 (1.0 ) $ 95.2 Inventories, net 151.0 (2.1 ) 148.9 Current assets $ 299.4 (3.1 ) $ 296.3 Liabilities and Equity Accrued expenses $ 12.2 2.6 $ 14.8 Current liabilities 97.2 2.6 99.8 Deferred income taxes 75.7 (1.4 ) 74.3 Total liabilities 260.1 1.2 261.3 Net parent investment 533.5 (3.4 ) 530.1 Noncontrolling interest 4.7 (0.9 ) 3.8 Total equity 521.7 (4.3 ) 517.4 Total liabilities and equity $ 781.8 (3.1 ) $ 778.7 Year ended December 31, In millions 2015 2014 As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Statement of Cash Flows Net income (loss) $ 85.3 (1.0 ) $ 84.3 $ 133.2 (0.6 ) $ 132.6 Deferred income taxes 9.3 (1.0 ) 8.3 2.4 (0.2 ) 2.2 Accounts receivable, net 8.9 (0.4 ) 8.5 (4.2 ) (0.6 ) (4.8 ) Inventories (25.4 ) 1.3 (24.1 ) (28.7 ) 1.1 (27.6 ) Prepaid and other current assets (8.1 ) 1.4 (6.7 ) 1.6 (6.9 ) (5.3 ) Accrued expenses 0.3 0.7 1.0 5.9 0.5 6.4 Changes in all other operating assets and liabilities, net 0.5 (1.3 ) (0.8 ) (0.3 ) 0.9 0.6 Net cash provided by (used in) operating activities 72.5 (0.3 ) 72.2 144.3 (5.8 ) 138.5 Proceeds from divestiture 11.0 — 11.0 — 6.0 6.0 Net cash provided by (used in) investing activities (89.3 ) — (89.3 ) (102.8 ) 6.0 (96.8 ) Transactions with WestRock, net 28.8 0.3 29.1 (31.2 ) (0.2 ) (31.4 ) Net cash provided by (used in) financing activities 26.7 0.3 27.0 (31.4 ) (0.2 ) (31.7 ) |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Related-party transactions: For periods prior to May 15, 2016, these Consolidated Financial Statements include allocated expenses associated with centralized WestRock support functions including legal, accounting, tax, treasury, internal audit, information technology, human resources and other services. The costs associated with these functions generally include all payroll and benefit costs as well as related overhead costs. For periods prior to May 15, 2016, these Consolidated Financial Statements also include allocated costs associated with WestRock’s office facilities, corporate insurance coverage and medical, pension, post-retirement and other health plan costs attributed to Ingevity’s employees participating in WestRock’s sponsored plans. Allocations are generally based on a number of utilization measures including employee count and proportionate effort. In situations in which determinations based on utilization are impracticable, WestRock and Ingevity used other methods and criteria such as net sales which are believed to result in reasonable estimates of costs attributable to Ingevity. Such allocated expenses are components of net income in the Consolidated Statement of Operations and are therefore included as a component of net cash provided by (or used in) operating activities in the Consolidated Statement of Cash Flows. All such amounts have been assumed to have been immediately settled by Ingevity to WestRock in the period in which the costs were recorded in the Consolidated Financial Statements. We believe the related-party allocations included in these Consolidated Financial Statements for periods prior to the Separation have been made on a reasonable basis. However, these Consolidated Financial Statements may not necessarily be indicative of the results of operations that would have been obtained if Ingevity had operated as a separate entity during the periods presented prior to May 15, 2016. Actual costs that may have been incurred if Ingevity had been a stand-alone business would depend on a number of factors, including organizational structure and what functions were outsourced or performed by employees, as well as strategic decisions made in areas such as information technology and infrastructure. Consequently, Ingevity’s future earnings while operated as an independent business could include items of income and expense that are materially different from what is included in the Consolidated Statements of Operations prior to the Separation. Accordingly, the Consolidated Financial Statements for the periods presented prior to the Separation are not necessarily indicative of Ingevity’s future results of operations, financial position and cash flows. Net parent investment: At December 31, 2015, Ingevity’s net parent investment on the Consolidated Balance Sheets, which includes retained earnings, represents WestRock’s interest in the recorded net assets of Ingevity and is presented as “Equity” in lieu of stockholders’ equity. All significant transactions between Ingevity and WestRock have been included in the accompanying Consolidated Financial Statements. For periods prior to the Separation, transactions with WestRock are reflected in the accompanying Consolidated Statements of Stockholders' Equity as “Transactions with Parent” and in the accompanying Consolidated Balance Sheets within “Equity.” The transactions with WestRock have been considered cash receipts and payments for the purposes of the Consolidated Statements of Cash Flows and are reflected in financing activities in the accompanying Consolidated Statements of Cash Flows for periods prior to the Separation. Prior to the Separation, the net parent investment was affected by Ingevity’s operating results, expense allocations from WestRock and cash transfers between Ingevity and WestRock, including settlement of intercompany transactions and amounts paid or received related to interest and domestic income taxes, as WestRock managed all treasury and domestic tax activities of Ingevity prior to the Separation. Central treasury activities include the investment of surplus cash and foreign currency risk management. All WestRock funding to Ingevity since inception has been accounted for as capital contributions from WestRock and all cash remittances from Ingevity to WestRock have been accounted for as distributions to WestRock for periods prior to the Separation. In addition, interest expense associated with WestRock’s debt has been allocated to Ingevity based upon average net assets of Ingevity as a percentage of average net assets plus average consolidated debt not attributable to other operations of WestRock for periods prior to the Separation. We believe this method of allocating interest expense produces reasonable results because average net assets is a significant factor in determining the amount of WestRock borrowings. Interest expense allocated to Ingevity’s Consolidated Statements of Operations was $7.2 million , $13.5 million and $9.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. No WestRock corporate-level debt has been allocated to Ingevity’s Consolidated Balance Sheets. Noncontrolling interests: When our ownership in a consolidated legal entity is less than 100 percent, the outside stockholders' interests are shown as noncontrolling interests. Our noncontrolling interests for the periods ended December 31, 2016, 2015 and 2014 represents the 30 percent ownership interest held by a third party U.S.-based company in our consolidated Purification Cellutions LLC ("PurCell") legal entity. PurCell is the legal entity that owns the technology associated with, and manufactures, our structured honeycomb scrubber products within our Performance Materials segment. Net income (loss) attributable to noncontrolling interest as presented on our Consolidated Statement of Operations also represents the 30 percent of the pre-tax earnings from PurCell owned by the third party. PurCell is a limited liability company which is treated as a "pass-through" entity for tax purposes. Although we consolidated 100 percent of PurCell, only 70 percent of PurCell's earnings are included in the calculation of Ingevity's provision for income taxes as presented on the Consolidated Statement of Operations. Estimates and assumptions: In preparing the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results are likely to differ from those estimates, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. Translation of foreign currencies: The local currency is the functional currency for all of Ingevity’s significant operations outside the United States (“U.S.”). The assets and liabilities of Ingevity's foreign subsidiaries are translated into U.S. dollars using period-end exchange rates, and adjustments resulting from these financial statement translations are included in accumulated other comprehensive income in the Consolidated Balance Sheets. Revenues and expenses are translated at average rates prevailing during each period. Cash equivalents: Highly liquid securities with an original maturity of three months or less are considered to be cash equivalents. Accounts receivable and allowance for doubtful accounts: Accounts receivable, net on the Consolidated Balance Sheets are comprised of trade receivable less allowances for doubtful accounts. Trade receivables consist of amounts owed to Ingevity from customer sales and are recorded at the invoiced amounts when revenue is recognized and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable loss in the existing accounts receivable. We determine the allowance based on historical write-off experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Past due balances over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. Allowance for doubtful accounts at December 31, 2016 and 2015, respectively were $0.3 million and $0.1 million . Concentration of credit risk: The financial instruments that potentially subject Ingevity to concentrations of credit risk are accounts receivable. We limit our credit risk by performing ongoing credit evaluations and, when necessary, requiring letters of credit, guarantees or collateral. We had accounts receivable from our largest customer of $15.5 million and $23.6 million as of December 31, 2016 and 2015, respectively. Sales to this customer, which are included in the Performance Chemicals segment, were 9 percent , 11 percent and 11 percent of total net sales for the years ended December 31, 2016, 2015 and 2014, respectively. No other customers individually accounted for greater than 10 percent of the Ingevity's consolidated net sales. Inventories, net: Inventories are valued at net realizable value. Cost is determined using the last-in, first-out method (“LIFO”) for substantially all raw materials, finished goods and production materials of U.S. manufacturing operations. Cost of all other inventories, including stores and supplies inventories and inventories of non-U.S. manufacturing operations, is determined by the first-in, first-out ("FIFO") or average cost methods. As of December 31, 2016, approximately 34 percent , 5 percent and 61 percent of our inventories were accounted for under the FIFO, average cost, and LIFO methods, respectively. Elements of cost in inventories include raw materials, direct labor and manufacturing overhead. Property, plant and equipment: Owned assets are recorded at cost. Also included in the cost of these assets is interest on funds borrowed during the construction period. When assets are sold, retired or disposed of, their cost and related accumulated depreciation are removed from the Consolidated Balance Sheet and any resulting gain or loss is reflected in cost of sales. Repair and maintenance costs that materially add to the value of the asset or prolong its useful life are capitalized and depreciated based on the extension of the useful life; general costs of maintenance and repairs are charged to expense. Depreciation: The cost of plant and equipment is depreciated, utilizing the straight-line method, over the estimated useful lives of the assets, the majority of which range from 20 to 40 years for buildings and leasehold improvements and 5 to 30 years for machinery and equipment. The following table provides the detail behind the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of M&E Cost Depreciable Life in Years Types of Assets 59 20 Production vessels and kilns, storage tanks, piping 12 15 Control systems, instrumentation, metering equipment 8 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 18 5 to 10 Production control system equipment and hardware, laboratory testing equipment 3 40 Machinery & equipment support structures and foundations Impairment of long-lived assets: We periodically evaluate whether current events or circumstances indicate that the carrying value of our long-lived assets, including intangible assets, to be held and used may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. We report an asset to be disposed of at the lower of its carrying value or its estimated net realizable value. Goodwill and other intangible assets: Goodwill represents the excess of cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We review the recorded value of goodwill at least annually at October 1, or sooner if events or changes in circumstances indicate that the fair value of a reporting unit is below its carrying value. If goodwill is required to be tested for impairment, a two-step process is utilized. The first step is to identify a potential impairment and the second step is to measure the amount of the impairment loss, if any. The second step is not necessary unless an impairment indicator is identified in step one. Goodwill is deemed to be impaired after step two if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. The fair value of each reporting unit is estimated primarily using an income approach, specifically the discounted cash flow method. The following assumptions are key to the income approach: 1). business projections; 2). growth rates; 3). discount rates; 4). tax rates. Other intangible assets are comprised of finite-lived intangible assets consisting primarily of brand, representing trademarks, trade names and know-how, customer contracts and relationships. Other intangible assets are amortized over their estimated useful lives which range from 5 to 20 years. See Note 9 for further information. Capitalized software: Capitalized software for internal use is included in other assets on the Consolidated Balance Sheets. Capitalized software is amortized using the straight-line over the estimated useful lives ranging from 1 to 7 years. We record software development costs in accordance with the accounting guidance provided by the Financial Accounting Standards Board. Environmental and legal liabilities: Environmental expenditures that increase useful lives of assets are capitalized, while other environmental expenditures are expensed. Liabilities are recorded when remedial efforts are probable and the costs can be reasonably estimated. We recognize a liability for other legal contingencies when a loss is probable and reasonably estimable. Liabilities recorded for claims are limited to pending cases based on Ingevity’s historical experience, consultation with outside counsel and consultation with an actuarial specialist concerning the feasibility of reasonably estimating liabilities associated with claims that may arise in the future. We recognized insurance recoveries when collection is reasonably assured. Third-party fees for legal services are expensed as incurred. Revenue recognition: We recognize revenues at the point when title and the risk of ownership passes to the customer. Substantially all of Ingevity’s revenues are generated through product sales and shipping terms generally indicate when title and the risk of ownership have passed. Revenue is recognized at shipment for sales where shipping terms are FOB (freight on board) shipping point unless risk of loss is maintained under freight terms. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. We provide allowances for estimated returns and other customer credits such as discounts and volume rebates, when the revenue is recognized, based on historical experience, current trends and any notification of pending returns. Shipping and handling costs : Shipping and handling costs are classified as a component of cost of sales. Amounts billed to a customer in a sales transaction related to shipping and handling are classified as revenue. Research and development: Included in selling, general and administrative expenses are expenditures for research and development of $7.6 million , $6.9 million and $7.8 million for the years ended December 31, 2016, 2015 and 2014, respectively, which were expensed as incurred. Royalty expense: Our Performance Materials and Performance Chemicals segments have licensing agreements with third parties requiring us to pay royalties for certain technologies we use in the manufacturing our of products. Royalty expense is recognized as incurred and recorded to Cost of sales within our Consolidated Statements of Operations. Historically, our Performance Chemicals segment presented the royalty expense as Selling, general and administrative expenses while our Performance Materials segment presented the royalty charges as Cost of sales. These royalties across our two segments are similar in nature and thus to align the presentation of royalty expense among our two segments, we reclassified prior year amounts associated with our Performance Chemicals segment to conform with the current year's presentation. Income taxes: The Company is subject to income taxes in the United States and numerous foreign jurisdictions, including China. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. We follow the liability method of accounting for income taxes in accordance with current accounting standards regarding the accounting for income taxes. Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled. The ability to realize deferred tax assets is evaluated through the forecasting of taxable income, historical and projected future operating results, the reversal of existing temporary differences, and the availability of tax planning strategies. Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We do not provide income taxes on undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. Please see Note 17 for more information. The Company recognizes income tax positions that are more likely than not to be realized and accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the Consolidated Statements of Operations. Ingevity’s pre-Separation activity in the U.S. will be reported in WestRock’s U.S. consolidated income tax return and certain foreign activity will be reported in WestRock tax paying entities in those jurisdictions. Under the Tax Matters Agreement of the Separation, WestRock is responsible for the income tax liabilities associated with all U.S. operations prior to Separation and for the historic operations of certain foreign legal entities retained by WestRock after the Separation. For periods prior to the Separation, the income tax provision included in the Consolidated Financial Statements related to domestic and certain foreign operations was calculated on a separate return basis, as if Ingevity was a separate taxpayer and the resulting current tax receivable or liability, including any liabilities related to uncertain tax positions, was settled with WestRock through equity at Separation. In other foreign taxing jurisdictions, the operations of Ingevity were always conducted in discrete legal entities, each of which files separate tax returns, and all resulting income tax assets and liabilities, including any liabilities related to uncertain tax positions, are reflected in the Consolidated Balance Sheets of Ingevity. Pension and postretirement benefits: Prior to the Separation, the employees of Ingevity were participants in various defined benefit pension and postretirement benefit plans (“the Plans”) sponsored by WestRock and the related assets and liabilities were combined with those related to other WestRock businesses. Expense allocated under the Plans was reported within Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operation. We considered the Plans to be part of a multi-employer plan with the other businesses of WestRock. In conjunction with the Separation, the employees of Ingevity stopped participating in WestRock pension and post-retirement benefit plans. We assumed certain domestic and international pension and other post-retirement benefit obligations from WestRock on the date of Separation. We established new qualified and non-qualified benefit plans to continue the pension and postretirement benefits provided to its employees and retirees based on the obligations assumed from WestRock. The expense related to the current employees of Ingevity as well as the expense related to retirees of Ingevity are included in the Consolidated Financial Statements. The costs (or benefits) and obligations related to these benefits reflect key assumptions related to general economic conditions, including interest (discount) rates, healthcare cost trend rates and expected return on plan assets. The costs (or benefits) and obligations for these benefit programs are also affected by other assumptions, such as average retirement age, mortality, employee turnover, and plan participation. To the extent our plans' actual experience, as influenced by changing economic and financial market conditions or by changes to our own plans' demographics, differs from these assumptions, the costs and obligations for providing these benefits, as well as the plans' funding requirements, could increase or decrease. When actual results differ from our assumptions, the difference is typically recognized over future periods. In addition, the unrealized gains and losses related to our pension and postretirement benefit obligations may also affect periodic benefit costs (or benefits) in future periods. See Note 14 for additional information. Share-based compensation: Prior to the Separation, share-based compensation expense was allocated to Ingevity based on the portion of WestRock's incentive share-based compensation program in which employees of Ingevity participated. Upon Separation, we began granting certain employees, and non-employee directors of Ingevity different forms of benefits, including stock option, restricted stock units ("RSU"s) and performance-based restricted stock units ("PSU"s). Share-based compensation cost is measured at the date of grant, based on the fair value of the award and is recognized over the grantee's requisite service period. Substantially all compensation expense related to share-based awards is recorded as a component of Selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 11 for further information. Operating segments: Ingevity’s operating segments are Performance Materials and Performance Chemicals. Our operating segments were determined based upon the nature of the products produced, the nature of the production process, the type of customer for the products, the similarity of economic characteristics, and the manner in which management reviews results. Ingevity’s chief operating decision maker evaluates the business at the segment level when making decisions about allocating resources and assessing performance of Ingevity as a whole. We evaluate sales in a format consistent with our reportable segments: (1) Performance Materials, which includes wood-based, chemically activated carbon products and (2) Performance Chemicals, which includes specialty pine-based chemical co-products derived from the kraft pulping process. Each segment operates as a portfolio of various end uses for the relevant raw material used in that segment. Business decisions are made and performance is generally measured based upon the total mix of end uses each raw material is being directed at in the segment. As a result of the breadth and diversity of the products within our Performance Materials segment, it is impracticable to provide revenue information by product line. For revenue information by product line in our Performance Chemicals segment and more information on our operating segments, see Note 19. |
New accounting guidance
New accounting guidance | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
New accounting guidance | New accounting guidance In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to an outside party. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. This new guidance will not have a material impact our Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting." The amendments in this new standard simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the new ASU, entities record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement, and entities classify excess tax benefits as an operating activity in the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted, and we early adopted this new standard during our second quarter of 2016. The impact of adoption did not have a material effect on our Consolidated Financial Statements. In February 2016, the FASB issued its new lease accounting guidance in ASU 2016-02 "Leases." Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are in the process of evaluating the impact of this guidance on our Consolidated Financial Statements and related disclosures, including identifying and analyzing all contracts that contain a lease. As a lessee, the majority of our leases under existing guidance are classified as operating leases and therefore not recorded on the balance sheet but are recorded in the statement of earnings as expense as incurred. Upon adoption of the new guidance, we may be required to record the vast majority of these operating leases on the balance sheet as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the statement of earnings could change based on the classification of leases as either operating or financing; however, we have not completed our evaluation to determine to what extent. In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes.” The amendment requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as non-current on the balance sheet. As a result, each tax jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. This standard is applicable for fiscal years beginning after December 15, 2016 and for interim periods within those years and early adoption is permitted. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." The amendments in this new standard require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this standard. In August 2015, the FASB issued ASU 2015-15 "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements." This ASU amends Subtopic 835-30 to include that the SEC staff would not object to the deferral and presentation debt issuance costs as an asset and subsequent amortization of the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are applicable for fiscal years beginning after December 15, 2015. We have adopted this standard in the first quarter of 2016, and the impact of adoption did not have a material effect on our Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02 “Consolidation - Amendments to the Consolidation Analysis,” which amends certain provisions of ASC 810 “Consolidation.” The amendment requires the consideration of additional criteria in (i) the analysis and determination of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and (ii) primary beneficiary determinations. The ASU also eliminates certain fees from the consolidation analysis of reporting entities that are involved with variable interest entities. The ASU is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. We adopted these provisions on January 1, 2016. The impact of adoption did not have a material effect on our Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern.” The update requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. We adopted the guidance effective December 31, 2016. No disclosure was considered necessary as of December 31, 2016 as a result of management’s evaluation. In May 2014, the FASB issued ASU 2014-09 which is codified in ASC 606 “Revenue from Contracts with Customers” and supersedes both the revenue recognition requirement to ASC 605 “Revenue Recognition” and most industry-specific guidance. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps set forth in ASC 606. An entity must also disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The ASU was scheduled to be effective for annual reporting periods, and for interim reporting periods within those annual reporting periods, beginning after December 15, 2016. However, in July 2015 the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date. As a result, we expect to adopt these provisions on January 1, 2018, including interim periods subsequent to the adoption date, which can be applied using a full retrospective or modified retrospective approach. Since the issuance of ASU 2014-09, the FASB has issued several amendments which clarify certain points in the new Topic 606-Revenue from Contracts with Customers, including ASU 2016-08 ("Principal versus Agent Considerations - Reporting Revenue Gross versus Net"), ASU 2016-10 ("Identifying Performance Obligations and Licensing"), ASU 2016-11 ("Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting"), ASU 2016-12 ("Narrow Scope Improvements and Practical Expedients") and ASU 2016-20 ("Technical Corrections and Improvements to Topic 606.") We anticipate adopting all of these standards at the same time effective January 1, 2018. We have begun our initial assessment of the impact that ASU 2014-09 and subsequent amendments will have on our Consolidated Financial Statements and related disclosures. Based upon the results of our initial assessment thus far, we have tentatively decided to adopt this new standard under the modified retrospective approach which results in the recognition of the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. We are still evaluating the impact to our financial statements and disclosures. All other issued but not yet effective accounting pronouncements are not expected to have a material impact on our Consolidated Financial Statements. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements The following information is presented for assets and liabilities that are recorded in the Consolidated Balance Sheets at fair value measured on a recurring basis. There were no assets recorded at fair value measured on a recurring basis as of December 31, 2016, and there were no liabilities recorded at fair value measured on a recurring basis as of December 31, 2015. There were no significant transfers of assets and liabilities that are recorded at fair value between Level 1 and Level 2 during the period reported. There were no non-recurring fair value measurements in the Consolidated Balance Sheets as of December 31, 2016 or 2015. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2016 Liabilities: Deferred compensation arrangement (4) $ 0.7 $ — $ — $ 0.7 Separation-related Reimbursement Awards (5) $ 2.1 $ — $ — $ 2.1 December 31, 2015 Assets: Cash equivalents $ 10.0 $ — $ — $ 10.0 ______________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Included within "Other liabilities" on the Consolidated Balance Sheet. (5) Included within "Accrued expenses" within "Other liabilities" on the Consolidated Balance Sheet. This amount represents an amount due to WestRock associated with WestRock equity awards held by Ingevity employees post Separation. In accordance with the EMA we are required to reimburse WestRock the fair market value of awards on the day Ingevity employees exercise their awards. The expense recognized during the year ended December 31, 2016 was $1.6 million . At December 31, 2016 , the book value of capital lease obligations was $80.0 million and the fair value was $91.6 million . The fair value of our capital lease obligations is based on the period-end quoted market prices for the obligations, using Level 1 inputs. The carrying amount of our long-term debt is $401.3 million as of December 31, 2016. The carrying value is a reasonable estimate of the fair value of the outstanding debt based on the variable interest rate of the debt. At December 31, 2016, the book value of our restricted investment was $69.7 million , and the fair value was $67.1 million , based on Level 1 inputs. The carrying value of our financial instruments: cash and cash equivalents, accounts receivable, other receivables, other payables and accrued liabilities approximate their fair values due to the short-term nature of these financial instruments. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net December 31, In millions 2016 2015 Raw materials $ 50.8 $ 41.0 Production materials, stores and supplies 12.0 11.3 Finished and in-process goods 109.8 116.5 Subtotal 172.6 168.8 Less: excess of cost over LIFO cost (21.4 ) (19.9 ) Inventories, net $ 151.2 $ 148.9 Approximately 72 percent and 76 percent of inventories at December 31, 2016 and 2015, respectively, are valued using the LIFO method. There was no impact on pre-tax income for LIFO layer decrements for the years ended December 31, 2016, 2015 and 2014, respectively. |
Property, plant and equipment,
Property, plant and equipment, net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net December 31, In millions 2016 2015 Machinery and equipment $ 779.0 $ 658.0 Buildings and leasehold equipment 96.2 64.4 Land and land improvements 17.9 17.6 Construction in progress (1) 26.3 142.5 Total cost 919.4 882.5 Less: accumulated depreciation (496.6 ) (445.0 ) Property, plant and equipment, net (2) $ 422.8 $ 437.5 _______________ (1) During the year ended December 31, 2016, we completed the start-up and have commenced commercial manufacturing operations at our activated carbon manufacturing facility in Zhuhai, China. As such, we have placed those assets in-service resulting in the decrease in construction in progress and a corresponding increase in machinery and equipment and buildings from December 31, 2015 to December 31, 2016. (2) Includes capital leases related to our Wickliffe, Kentucky manufacturing facility of (a) machinery and equipment of $9.8 million and $13.1 million , net of accumulated depreciation of $74.2 million and $71.1 million , and (b) buildings of $2.7 million and $2.8 million , net of accumulated depreciation of $3.5 million and $3.4 million at December 31, 2016 and 2015, respectively. Also includes capital leases related to our DeRidder, Louisiana manufacturing facility of machinery and equipment of $17.8 million and $19.5 million , net of accumulated depreciation of $15.5 million and $13.8 million at December 31, 2016 and 2015, respectively. Amortization expense associated with these capital leases is included within depreciation expense. The payments remaining under these capital leases obligations are included within Note 18. Depreciation expense was $33.2 million , $28.0 million and $25.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Goodwill and other intangible a
Goodwill and other intangible assets, net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets, net | Goodwill and other intangible assets, net The changes in the carrying amount of goodwill by operating segment are as follows: Operating Segments In millions Performance Chemicals Performance Materials Total December 31, 2014 $ 8.7 $ 4.3 $ 13.0 Foreign currency translation (1.1 ) — (1.1 ) December 31, 2015 $ 7.6 $ 4.3 $ 11.9 Foreign currency translation 0.5 — 0.5 December 31, 2016 $ 8.1 $ 4.3 $ 12.4 Our fiscal year 2016 annual goodwill impairment test was performed as of October 1, 2016. We determined no goodwill impairment existed. There were no events or circumstances indicating that goodwill might be impaired as of December 31, 2016. All of Ingevity's other intangible assets, net are related to the Performance Chemicals operating segment. The following table summarizes intangible assets: December 31, 2016 December 31, 2015 In millions Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Brands (1) $ 13.9 $ 11.3 $ 2.6 $ 13.7 $ 10.6 $ 3.1 Customer contracts and relationships 28.2 23.5 4.7 28.2 21.4 6.8 Other — — — 0.6 0.5 0.1 Other intangibles, net $ 42.1 $ 34.8 $ 7.3 $ 42.5 $ 32.5 $ 10.0 _______________ (1) Represents trademarks, trade names and know-how. The amortization expense related to our intangible assets in the table above for the years ended December 31, 2016, 2015 and 2014 is shown in the table below. Amortization expense is included within Cost of sales and Selling, general and administrative expenses on the Consolidated Statements of Operations. Year Ended December 31, In millions 2016 2015 2014 Amortization expense $ 3.5 $ 3.2 $ 3.4 Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: 2017 - $2.5 million , 2018 - $1.8 million , 2019 - $1.6 million , 2020 - $0.5 million and 2021 - $0.5 million . The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency. |
Debt including capital lease ob
Debt including capital lease obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt including capital lease obligations | Debt including capital lease obligations Revolving Credit and Term Loan Facility On March 7, 2016 we entered into a credit agreement governing a senior secured multi-currency revolving credit facility (the “Revolving Credit Facility”), which provides for maximum borrowings of $400 million for Ingevity, with a €100 million subfacility for our Belgian subsidiary subject to certain additional conditions on the initial funding date. The Revolving Credit Facility allows for borrowings in U.S. dollars, euros and Japanese yen, with certain sub-limits. The Revolving Credit Facility has a letter of credit sub-limit of $75 million and a swingline facility sub-limit of $40 million . The Revolving Credit Facility can be utilized for working capital and other general corporate purposes. The credit agreement also contains a senior secured term loan facility of $300 million (the “Term Loan Facility” and together with the Revolving Credit Facility, the “Facilities”). The Facilities mature on the five-year anniversary of the initial funding date. The Term Loan Facility amortizes at a rate equal to 0 percent per annum during the first year after the funding date, 5 percent per annum during the second and third years after the funding date and 10 percent per annum during the fourth and fifth years after the funding date, with the balance due at maturity. The Term Loan Facility will require the proceeds of certain asset sales and casualty events to be applied to prepay the loans under the Term Loan Facility, subject to certain thresholds, exceptions and reinvestment rights. The interest rates per annum applicable to the loans under the Facilities are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (1) an adjusted London inter-bank offered rate ("LIBOR") plus a borrowing margin, or (2) an alternate base rate plus a borrowing margin. The borrowing margin for the Facilities is subject to adjustment based on Ingevity’s consolidated total leverage ratio, and is between 1.25% and 2.00% in the case of LIBOR loans and between 0.25% and 1.00% in the case of base rate loans. The Revolving Credit Facility fees include (i) commitment fees, based on a percentage of the daily unused portions of the facility ranging from 0.15% to 0.30% , and (ii) customary letter of credit fees. The Facilities include financial covenants requiring Ingevity to maintain on a consolidated basis a maximum total leverage ratio (as defined in the credit agreement) of 3.75 to 1.00, which may be increased to 4.25 to 1.00 under certain circumstances, and a minimum interest coverage ratio (as defined in the credit agreement) of 3.00 to 1.00. The Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross default to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments and change of control. We were in compliance with all covenants at December 31, 2016. On May 9, 2016, we borrowed $300.0 million under the Term Loan Facility and on May 13, 2016 we borrowed $200.0 million under the Revolving Credit Facility. The proceeds of the combined borrowings, in addition to cash on hand, were used to fund a distribution to WestRock in the amount of $448.5 million and to fund a trust in the amount of $68.9 million both of which were in connection with the Separation. As part of the Separation, WestRock required Ingevity to contribute $68.9 million in a trust managed by Bank of New York in order to secure repayment of the capital lease obligation at maturity. The trust, presented as restricted investment on our Consolidated Balance Sheet, purchased long term bonds that mature in 2025 and 2026. The principal received at maturity of the bonds along with interest income that is reinvested in the trust are expected to be equal to or more than the $80.0 million capital lease obligation that is due in 2027. The investments held by the trust are accounted for as held to maturity and therefore held at their amortized cost as the provisions of the trust provide us the ability, and it is our intent, to hold the investments to maturity. The fair value of the investments within the trust was $67.1 million as of December 31, 2016 (see Note 6 for more information). The investments held by the trust earn interest at the stated coupon rate of the invested bonds. Interest earned on the investments held by the trust is recognized as interest income and presented within Interest income on our Consolidated Statement of Operations. Fees of $3.6 million were incurred and paid at the time of initial funding of the Facilities. These fees have been deferred and will be amortized over the term of the Facilities. These fees are presented as a reduction of the outstanding debt. Debt maturing within one year consisted of the following: December 31, In millions 2016 2015 Notes payable $ — $ 9.4 Current maturities of long-term debt 7.5 — Notes payable and current maturities of long-term debt $ 7.5 $ 9.4 Long-term debt including capital lease obligations consisted of the following: December 31, 2016 December 31, In millions Interest rate Maturity date 2016 2015 Revolving Credit Facility (1) 2.20% 2021 $ 111.9 $ — Term Loan Facility 2.19% 2021 300.0 — Capital lease obligations 7.67% 2027 80.0 80.0 Total debt including capital lease obligations $ 491.9 $ 80.0 Less: debt issuance costs (3.1 ) — Total debt including capital lease obligations, net of debt issuance costs $ 488.8 $ 80.0 Less: debt maturing within one year 7.5 — Long-term debt including capital lease obligations $ 481.3 $ 80.0 _______________ (1) Letters of credit outstanding under the revolving credit facility were $3.7 million and available funds under the facility was $284.4 million at December 31, 2016. |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Share-based compensation Prior to the Separation, share-based compensation expense was allocated to Ingevity based on the portion of WestRock's incentive share-based compensation program in which Ingevity employees participated. Share-based compensation expense allocated by WestRock to Ingevity was $0.5 million , $2.3 million and $1.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. This allocated share-based compensation expense is included in the overall allocations from WestRock discussed further in Note 13. Adopted at Separation, the Ingevity Corporation 2016 Omnibus Incentive Plan grants certain employees, independent contractors, or non-employee directors of Ingevity different forms of benefits, including stock options, restricted stock units ("RSU"s) and performance-based restricted stock units ("PSU"s). Our share-based compensation expense recognized post Separation associated with Ingevity's incentive plan for the year ended December 31, 2016 was $4.7 million . We recognized the following share-based compensation expense: In millions Year Ended December 31, 2016 Share-based option expense, net of taxes of $0.3 million $ 0.4 Restricted stock unit expense, net of taxes of $1.6 million 2.4 Total share-based compensation expense, net of taxes of $1.9 million $ 2.8 Stock Options All stock options vest in accordance with vesting conditions set by the compensation committee of Ingevity's Board of Directors. Stock options granted to date have vesting periods of three years from the date of grant. The expense related to stock options granted in the period from the Separation through December 31, 2016 was based on the assumptions shown in the table below: Weighted-average assumptions used to calculate expense for stock options For the period from Separation through December 31, 2016 Risk-free interest rate 1.6 % Average life of options (years) 6.5 Volatility 35.0 % Dividend yield — Fair value per stock option $ 10.61 The following table summarizes Ingevity's stock option activity for the period from the Separation through December 31, 2016 as there was no Ingevity stock option activity prior to Separation. Number of shares (in thousands) Weighted-average exercise price (per share) Weighted-average remaining contractual term (years) Aggregate intrinsic value (in thousands) Outstanding, May 15, 2016 — N/A Granted 208 $ 28.03 Exercised — N/A Forfeited — N/A Canceled — N/A Outstanding, December 31, 2016 208 $ 28.03 9.4 $ 5,573 Exercisable, December 31, 2016 — N/A N/A N/A The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between Ingevity's closing stock price on the last trading day of December 31, 2016 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their in-the-money options at quarter end. The amount changes based on the fair market value of Ingevity's stock. No options were exercised in the year ended December 31, 2016. As of December 31, 2016, $1.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.2 years. Restricted Stock Units and Performance-based Restricted Stock Units All RSUs and PSUs vest in accordance with vesting conditions set by the compensation committee of Ingevity’s board of directors. RSUs granted to date have vesting periods ranging from less than one year to three years from the date of grant. PSUs granted to date have vesting periods of three years from the date of grant, including grants that have a cumulative three year performance period, subject to satisfaction of the applicable performance goals established for the respective grant. We periodically assess the probability of achievement of the performance criteria and adjust the amount of compensation expense accordingly. Compensation expense is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria. Nonvested awards of RSUs, both with and without performance features, as of December 31, 2016 are shown below. Number of shares (in thousands) Weighted average grant date fair value (per share) Nonvested, May 15, 2016 — N/A Granted 317 $ 28.07 Vested (23 ) $ 27.90 Forfeited — N/A Nonvested, December 31, 2016 294 $ 28.08 As of December 31, 2016, there was $8.2 million of unrecognized share-based compensation expense related to nonvested awards. That cost is expected to be recognized over a weighted-average period of 1.6 years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | Equity Summarized below is the roll forward of accumulated other comprehensive income (loss), net of tax. In millions Foreign currency adjustments Derivative Instruments Pension and other postretirement benefits Total Accumulated other comprehensive income (loss), net of tax at December 31, 2013 $ 0.4 $ 0.2 $ — $ 0.6 2014 Activity Other comprehensive income (loss) before reclassifications (6.7 ) (1.2 ) — (7.9 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — — Accumulated other comprehensive income (loss), net of tax at December 31, 2014 $ (6.3 ) $ (1.0 ) $ — $ (7.3 ) 2015 Activity Other comprehensive income (loss) before reclassifications (9.2 ) (1.9 ) — (11.1 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.9 — 1.9 Accumulated other comprehensive income (loss), net of tax at December 31, 2015 $ (15.5 ) $ (1.0 ) $ — $ (16.5 ) 2016 Activity Other comprehensive income (loss) before reclassifications (2.9 ) — (0.6 ) (3.5 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.0 — 1.0 Accumulated other comprehensive income (loss), net of tax at December 31, 2016 $ (18.4 ) $ — $ (0.6 ) $ (19.0 ) Share Repurchases On February 20, 2017, the Board of Directors authorized the repurchase of up to $100 million of our common stock. The repurchase program does not include a specific timetable or price targets and may be suspended or terminated at any time. Shares may be purchased through open market or privately negotiated transactions at the discretion of management based on its evaluation of market prevailing conditions and other factors. |
Transactions with WestRock and
Transactions with WestRock and related-parties | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Transactions with WestRock and related-parties | Transactions with WestRock and related-parties For periods prior to May 15, 2016, these Consolidated Financial Statements include allocated expenses associated with centralized WestRock support functions including legal, accounting, tax, treasury, internal audit, information technology, human resources and other services. The costs associated with these functions generally include all payroll and benefit costs as well as related overhead costs. For periods prior to May 15, 2016, these Consolidated Financial Statements also include allocated costs associated with WestRock’s office facilities, corporate insurance coverage and medical, pension, post-retirement and other health plan costs attributed to Ingevity’s employees participating in WestRock’s sponsored plans. Allocations are generally based on a number of utilization measures including employee count and proportionate effort. In situations in which determinations based on utilization are impracticable, WestRock and Ingevity used other methods and criteria such as net sales which are believed to result in reasonable estimates of costs attributable to Ingevity. All such amounts have been assumed to have been immediately settled by Ingevity to WestRock in the period in which the costs were recorded in the Consolidated Financial Statements. Such amounts are included in net cash provided by operating activities in the Consolidated Statements of Cash Flows. We believe the related-party allocations for periods included in these Consolidated Financial Statements for periods prior to May 15, 2016 have been made on a reasonable basis. However, these Consolidated Financial Statements may not necessarily be indicative of the results of operations that would have been obtained if Ingevity had operated as a separate entity during the periods presented. Actual costs that may have been incurred if Ingevity had been a stand-alone business would depend on a number of factors, including organizational structure and what functions were outsourced or performed by employees, as well as strategic decisions made in areas such as information technology and infrastructure. Consequently, Ingevity’s future earnings may include items of income and expense that are materially different from what is included in these Consolidated Statements of Operations for periods prior to May 15, 2016. Accordingly, the Consolidated Financial Statements for the periods presented are not necessarily indicative of Ingevity’s future results of operations, financial position and cash flows. The Consolidated Statements of Operations prior to May 15, 2016, include allocations from WestRock as summarized below: Year Ended December 31, In millions 2016 2015 2014 Cost of sales $ 5.7 $ 10.3 $ 9.6 Selling, general and administrative expenses 6.5 17.3 18.5 Interest expense, net 7.2 13.5 9.9 Total allocated cost (1) $ 19.4 $ 41.1 $ 38.0 _______________ (1) Allocated costs represent costs necessary to support Ingevity's operations which include governance and corporate functions such as information technology, accounting, human resources, accounts payable and other direct services including the interest on WestRock debt incurred to provide such services. Prior to the Separation on May 15, 2016, we purchased certain raw materials from WestRock that were included in cost of sales. Total purchases prior to the Separation in 2016 were $20.1 million . Purchases in the years ended December 31, 2015 and 2014 were 35.3 million and $21.6 million , respectively. Purchases prior to the Merger only included purchases from MWV. See Note 2 for more information regarding the Merger. Subsequent to May 15, 2016, Ingevity was no longer a related-party of WestRock. Accordingly, beginning May 16, 2016, sales to WestRock businesses are reflected in net sales in our Consolidated Statement of Operations. Purchases of products from WestRock businesses are reflected as inventory in our Consolidated Balance Sheet and prior to payment reflected as accounts payable in our Consolidated Balance Sheet. Our ongoing relationship with WestRock is governed by the Separation Agreements including the long-term supply agreement for CTO. Under this agreement, based on WestRock’s current output, we will source approximately 45% to 55% of our CTO requirements for the maximum operating rates of our facilities. As further described in Note 1, the Separation Agreements govern the relationship among Ingevity and WestRock following the Separation and provide for the allocation of various assets, liabilities, rights and obligations and include arrangements for transition services to be provided by WestRock to Ingevity. In accordance with the Separation Agreements at the Separation we recorded a payable to WestRock in the amount of $16.5 million primarily representing certain trade liabilities previously classified as related-party and included within Net parent investment in the Consolidated Balance Sheet. This amount has since been paid to WestRock. |
Pension and post-retirement ben
Pension and post-retirement benefits | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Pension and post-retirement benefits | Pension and post-retirement benefits Prior to the Separation, WestRock offered various long-term benefits to its employees, including Ingevity employees. In these cases, the participation of our employees in these plans is reflected in the Consolidated Financial Statements as though Ingevity participated in a multi-employer plan with the other businesses of WestRock. For periods prior to the Separation, assets and liabilities of such plans were retained by WestRock. Net periodic benefit costs allocated to Ingevity associated with these pension plans, prior to the Separation, for the year ended December 31, 2016 , 2015 and 2014 were $3.2 million , $7.8 million and $5.2 million , respectively. This allocated net periodic benefit cost is included in the overall allocations from WestRock discussed further in Note 13. In conjunction with the Separation, Ingevity employees stopped participating in WestRock pension and post-retirement benefit plans. As further defined by the EMA, Ingevity assumed certain domestic and international pension and other post-retirement benefit obligations from WestRock on the date of Separation. The assumed retirement obligations consisted of accrued defined benefit obligations earned by Ingevity domestic hourly union employees as of the day of Separation net of contributed assets; accrued obligations from a frozen non-qualified defined benefit pension plan for certain salaried and former salaried employees of Ingevity; and other post-retirement medical and life insurance benefits. On May 16, 2016, Ingevity established new qualified and non-qualified benefit plans, similar in design to the WestRock plans, to continue the pension and post-retirement benefits provided to our employees and retirees based on the obligations assumed from WestRock. Prior to May 16, 2016, Ingevity adopted the Ingevity Corporation Retirement Savings Plan (401(k) plan) effective January 1, 2016 as Ingevity employees ceased participating in the WestRock 401(k) plan on December 31, 2015. For our domestic salaried employees who will no longer participate in the WestRock pension plan, Ingevity provides an enhanced 401(k) contribution. The enhanced benefits consist of a transition contribution of four or ten percent of the employee’s eligible compensation for employees who were grandfathered in the WestRock cash balance and final average pay pension respectively. The transition contributions will continue to December 31, 2020, unless the grandfathered employee terminates employment sooner. We are required to recognize in our Consolidated Balance Sheets the overfunded and underfunded status of our defined benefit postretirement plans. The overfunded and underfunded status is defined as the difference between the fair value of plan assets and the projected benefit obligation. We are also required to recognize as a component of other comprehensive income the actuarial gains and losses and the prior service costs and credits that arise during the period. Assumptions Used and Components of Defined Benefit Postretirement Plans The following table summarizes the weighted average assumptions used and components of our defined benefit postretirement plans. The following tables also reflect a measurement date of December 31: Year Ended December 31, 2016 In millions, except percentages Pensions Other Benefits Following are the weighted average assumptions used to determine the benefit obligations at December 31: Discount rate - qualified benefit plans 4.10 % — % Discount rate - non-qualified benefit plans 4.15 % 3.95 % Rate of compensation increase N/A N/A Change in projected benefit obligation Project benefit obligation at May 15, 2016 $ 24.2 $ 0.8 Service cost 0.7 — Interest cost 0.6 — Actuarial loss (gain) (1.1 ) (0.1 ) Projected benefit obligation at December 31, 2016 24.4 0.7 Change in plan assets Fair value of plan asset at May 15, 2016 19.8 — Actual return on plan assets (1.6 ) — Company contributions 1.0 — Fair value of plan assets at December 31 19.2 — Funded Status Net Funded Status of the Plan Asset (Liability) (1) $ (5.2 ) $ (0.7 ) _______________ (1) Included in "Other Liabilities" on the Consolidated Balance Sheet. Amount Recognized in the Consolidated Balance Sheet: Year Ended December 31, 2016 In millions Pensions Other Benefits Pension and other postretirement benefit asset $ — $ — Accrued pension and other postretirement benefit liability (5.2 ) (0.7 ) Total (1) $ (5.2 ) $ (0.7 ) _______________ (1) Included in "Other Liabilities" on the Consolidated Balance Sheet. Amounts Recognized in Other Comprehensive (Income) Loss Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss are as follows: Year Ended December 31, 2016 In millions Pensions Other Benefits Current year net actuarial loss (gain) $ 0.9 $ (0.1 ) Current year prior service cost (credit) 0.1 — Total recognized in other comprehensive (income) loss, before taxes 1.0 (0.1 ) Total recognized in other comprehensive (income) loss, after taxes (1) $ 0.5 $ 0.1 _______________ (1) This also represents the accumulated other comprehensive income (loss), net of tax as of December 31, 2016. The estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income (loss) into our net annual benefit cost during 2017 are zero and less than $0.1 million , respectively. The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2016: In millions December 31, 2016 Projected benefit obligations $ 24.4 Accumulated benefit obligations 24.4 Fair value of plan assets $ 19.2 Net Annual Benefit Costs Assumptions The following table summarizes the weighted-average assumptions use for and the components of net annual benefit cost: Year Ended December 31, 2016 In millions, except percentages Pensions Other Benefits Discount rate - qualified benefit plans (1) 4.00 % — % Discount rate - non-qualified benefit plans (1) 3.75 % 3.75 % Expected return on plan assets 4.50 % N/A Components of net annual benefit cost: Service cost $ 0.7 $ — Interest cost 0.6 — Expected return on plan assets (0.6 ) — Net annual benefit cost $ 0.7 $ — _______________ (1) The discount rate used to calculate pension and other post-retirement obligations was based on a review of available yields on high-quality corporate bonds. In selecting a discount rate, we placed particular emphasis on a discount rate yield-curve provided by our third-party actuary which takes into consideration the projected cash flows that represent the expected timing and amount of our plans' benefit payments. Contributions We made a voluntary cash contribution of $1.0 million to our Union Hourly defined benefit pension plan in the year ended December 31, 2016. There are no required cash contributions to our Union Hourly defined benefit pension plan in 2017, and we currently have no plans to make any voluntary cash contributions in 2017. Fair Value Hierarchy The following table presents our fair value hierarchy for our major categories of pension plan assets by asset class. See Note 6 for the definition of fair value and the descriptions of Level 1, 2 and 3 in the fair value hierarchy. In millions December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and short-term investments $ 0.4 $ 0.4 $ — $ — Equity securities Common stock — — — — Preferred stock — — — — Mutual funds and other investments 2.3 2.3 — — Fixed income investments Mutual funds 16.5 1.1 15.4 — Corporate debt instruments — — — — Government debt — — — — Total assets $ 19.2 $ 3.8 $ 15.4 $ — Estimated Future Benefit Payments The following table reflects the estimated future benefit payments for our pension and other postretirement benefit plans. These estimates take into consideration expected future service, as appropriate. In millions Pensions Other Benefits 2017 $ 0.2 $ — 2018 0.3 2019 0.4 2020 0.5 — 2021 0.7 — 2022-2026 $ 5.6 $ 0.2 Sensitivity Analysis A one-half percent increase in the assumed discount rate would have decreased pension benefit obligations by $1.7 million at December 31, 2016 and decreased pension benefit costs by $0.1 million for 2016. A one-half percent decrease in the assumed discount rate would have increased pension obligations by $1.9 million at December 31, 2016 and increased pension benefit cost by $0.1 million for 2016. A one-half percent increase in the assumed expected long-term rate of return on plan assets would have decreased pension costs by $0.1 million for 2016. A one-half percent decrease in the assumed long-term rate of return on plan assets would have increased pension costs by $0.1 million for 2016. |
Business separation
Business separation | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Business separation | Business separation In connection with the Separation as further described in Note 1 and Note 2, we have incurred pre-tax separation costs as shown in the table below. Prior to the Separation, these costs were primarily related to third-party professional fees associated with separation activities and one-time costs of new hires specifically required to separate and stand up Ingevity. Post-Separation, these costs represent legal, information technology and other advisory fees to transition from a division of WestRock to a stand-alone public company. Year Ended December 31, In millions 2016 2015 2014 Separation costs $ 17.5 $ 17.2 $ 0.4 |
Restructuring and other (income
Restructuring and other (income) charges, net | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and other (income) charges, net | Restructuring and other (income) charges, net We continually perform strategic reviews and assess the return on our operations which sometimes results in a plan to restructure the business. The cost and benefit of these strategic restructuring initiatives are recorded as restructuring and other (income) charges, net recorded within Restructuring and other (income) charges, net on our Consolidated Statement of Operations. These costs are excluded from our operating segment results. We record an accrual for severance and other non-recurring costs under the provisions of the relevant accounting guidance. Additionally, in some restructuring plans write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful lives of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. Below provides detail of the restructuring and other (income) charges, net incurred. 2016 activities As a result of continued deteriorating market conditions within the South America region, on October 31, 2016, our Board of Directors approved a plan to exit our Performance Chemicals' manufacturing operations in Palmeira, Santa Catarina, Brazil. As a result, we recorded a non-cash pre-tax impairment charge to property, plant and equipment in the amount of $30.2 million and recorded severance costs of $1.8 million . The severance costs began to be paid in the fourth quarter of 2016. Refinery production ceased before year end with decommissioning of the facility to be completed by mid-2017. We recorded $2.6 million of additional miscellaneous exit costs during the year ended December 31, 2016. We expect additional exit and disposal costs incurred and paid through the first half of 2017 in the range of $3 million to $4 million . During the first quarter of 2016, we announced the closure of the Performance Chemicals' derivatives operation in Duque de Caxias, Rio de Janeiro, Brazil. As a result of this closure, we recorded $0.1 million impairment charge on fixed assets, $1.8 million in severance and other employee-related costs and $1.7 million of additional miscellaneous exit costs during year ended December 31, 2016. During the first quarter of 2016, we also announced a company-wide restructuring to better align our workforce in light of changing macroeconomic and market realities. The restructuring decision resulted in workforce reductions at several of our locations. As a result, during the year ended December 31, 2016, we recorded severance and other employee-related charges of $2.7 million ( $1.9 million related to Performance Chemicals segment and $0.8 million related to Performance Materials segment). We also recorded an impairment charge on fixed assets of $0.3 million in the year ended December 31, 2016 (related to the Performance Chemicals segment). 2015 activities During 2015, we sold our 60 percent interest in a subsidiary in China for cash proceeds of $11.5 million and recorded a gain on the sales of the subsidiary of $10.3 million . Prior to its sale, this subsidiary operated under our Performance Materials operating segment. Additionally during 2015, we recognized income of $1.2 million associated with the sale of our Performance Materials' air purification business in 2014. As part of a plan that was implemented to restructure a portion of our operations during 2015, we recorded an impairment of $4.0 million to write down inventory and property, plant and equipment associated with certain manufacturing operations of our Performance Chemicals segment. 2014 activities We made a strategic decision to sell our Performance Materials' air purification business. During 2014, we sold the net working capital and associated customer list related to the air purification business and recorded a $5.6 million gain on sale. Detail on the restructuring charges and asset disposal activities is provided below. Year Ended December 31, In millions 2016 2015 2014 Restructuring and other (income) charges, net Gain on sale of assets and businesses $ — $ (11.5 ) $ (5.6 ) Severance and other employee-related costs (1) 6.3 — — Asset write-downs (2) 30.6 4.0 — Other (income) charges, net (3) 4.3 — — Total restructuring and other (income) charges, net $ 41.2 $ (7.5 ) $ (5.6 ) _______________ (1) Represents severance and employee benefit charges. (2) Primarily represents accelerated depreciation and impairment charges on long-lived assets, which were or are to be abandoned. To the extent incurred the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns are also included within the asset write-downs. (3) Primarily represents costs associated with rental payments, contract terminations, and other miscellaneous exit costs. Other Income primarily represents favorable developments on previously recorded exit costs as recoveries associated with restructuring activities. Roll forward of Restructuring Reserves The following table shows a roll forward of restructuring reserves that will result in cash spending. Balance at Change in Cash Balance at In millions 12/31/2015 (1) Reserve (2) Payments Other (3) 12/31/2016 (1) Restructuring Reserves $ — 10.6 (8.3 ) (0.1 ) $ 2.2 _______________ (1) Included in "Accrued Expenses" on the Consolidated Balance Sheet. There was no restructuring reserve activity during the year ended December 31, 2014. (2) Includes severance and other employee-related costs, exited leases, contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table. (3) Primarily foreign currency translation adjustments. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Domestic and foreign components of income before income taxes are shown below: Year Ended December 31, In millions 2016 2015 2014 Domestic $ 118.3 $ 144.6 $ 201.4 Foreign (31.3 ) (8.1 ) 0.7 Total $ 87.0 $ 136.5 $ 202.1 The provision (benefit) for income taxes consisted of: Year Ended December 31, In millions 2016 2015 2014 Current Federal $ 37.4 $ 35.3 $ 58.7 State and local 5.0 5.0 7.3 Foreign 2.1 2.7 1.5 Total current $ 44.5 $ 43.0 $ 67.5 Deferred Federal $ (2.4 ) $ 7.4 $ 2.2 State and local (0.5 ) 1.7 — Foreign 1.0 0.1 (0.2 ) Total deferred (1.9 ) 9.2 2.0 Total $ 42.6 $ 52.2 $ 69.5 The Company recorded $0.3 million , zero and $(0.6) million of deferred tax (benefit) expense in components of other comprehensive income during the years ended December 31, 2016, 2015 and 2014, respectively. The following table summarizes the major differences between taxes computed at the U.S. federal statutory rate and the actual income tax provision attributable to operations: Year Ended December 31, In millions 2016 2015 2014 Federal statutory tax rate $ 30.5 $ 47.8 $ 70.7 State and local income taxes, net of federal benefit 2.8 4.9 4.9 Foreign income tax rate differential 0.8 (0.4 ) — Changes in valuation allowance 13.2 1.5 1.0 Domestic manufacturing deduction (4.0 ) (3.0 ) (5.7 ) Noncontrolling interest in consolidated partnership (3.1 ) (1.9 ) (1.4 ) Nondeductible separation costs 1.5 2.4 Nondeductible restructuring costs 2.2 — — Federal and state tax credits (0.6 ) (0.3 ) — Deferred rate change (0.6 ) — — Other (0.1 ) 1.2 — Income tax provision $ 42.6 $ 52.2 $ 69.5 Effective tax rate 49.0 % 38.2 % 34.4 % The 2016 and 2015 effective tax rates were impacted by nondeductible transaction costs associated with the Separation. Additionally, the 2016, 2015 and 2014 effective tax rates were impacted by the unfavorable results of legal entities with full valuation allowances, including the $32.0 million charge in 2016 associated with the exit of our refinery operations in Palmeira, Santa Catarina, Brazil. The significant components of deferred tax assets and liabilities are as follows: Year Ended December 31, In millions 2016 2015 Deferred tax assets: Accrued restructuring 12.6 1.5 Employee benefits 12.3 3.4 Intangibles 5.8 2.9 Investment in partnership 1.4 0.8 Net operating losses 5.4 4.9 Start-up costs 1.0 0.2 Other 2.3 0.6 Deferred tax assets $ 40.8 $ 14.3 Valuation allowance (18.8 ) (6.6 ) Total net deferred tax assets $ 22.0 $ 7.7 Deferred tax liabilities: Fixed assets $ (86.9 ) $ (81.3 ) Inventory (1.0 ) (0.7 ) Other (0.5 ) — Total deferred tax liabilities $ (88.4 ) $ (82.0 ) Net deferred tax liability $ (66.4 ) $ (74.3 ) The Company has deferred tax assets, including net operating loss carryforwards, which are available to offset future taxable income in these jurisdictions. A valuation allowance has been provided where management has determined that it is more likely than not that the deferred tax assets will not be realized. At December 31, 2016, foreign net operating loss carryforwards totaled $17.3 million . Of this total, $5.8 million will expire in 3 to 10 years and $11.5 million has no expiration date. At December 31, 2016 and 2015, no deferred income taxes have been provided for the Company’s share of undistributed net earnings of foreign operations due to management’s intent to reinvest such amounts indefinitely. The determination of the amount of taxes that may be due if earnings are remitted is not practicable because such liability, if any, is dependent on circumstances that exist if and when remittance occurs. The circumstances that would affect the calculations include the source location and amount of the distribution, the underlying tax rate already paid on the earnings, foreign withholding taxes and the opportunity to use foreign tax credits. Positive undistributed earnings considered to be indefinitely reinvested totaled less than $1.0 million at December 31, 2016. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Year Ended December 31, In millions 2016 2015 2014 Balance at beginning of year $ 0.7 $ 0.8 $ 0.9 Additions for tax positions related to current year — 0.1 — Additions for tax positions related to prior years 0.1 0.1 — Reductions for tax positions related to current year — — — Reductions for tax positions related to prior years (0.2 ) (0.2 ) (0.1 ) Reduction related to settlements — — — Reduction from lapse of statute of limitation — (0.1 ) — Balance at end of year $ 0.6 $ 0.7 $ 0.8 As of December 31, 2016, 2015, and 2014, $1.0 million , $1.2 million , and $1.3 million , respectively, of unrecognized tax benefit, including penalties and interest, would, if recognized, impact the Company's effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. As a result of lapse in statute of limitations, management anticipates a decrease in the accrual for unrecognized tax benefit of $0.6 million in the next twelve months. The Company has operations in multiple areas of the world and is subject, at times, to tax audits in these jurisdictions. Under the Tax Matters Agreement with WestRock, Ingevity is not responsible for U.S. federal, state and local income tax examinations prior to the Separation. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Lease commitments We lease a variety of assets for use in its operations. Leases for administrative offices, manufacturing plants and storage facilities generally contain options, which allow us to extend lease terms for periods up to 25 years or to purchase the properties. Certain leases provide for escalation of the lease payments as maintenance costs and taxes increase. Minimum rental payments pursuant to agreements as of December 31, 2016 under operating leases that have non-cancelable lease terms in excess of 12 months and under capital leases are as follows: In millions Operating leases Capital leases 2017 $ 11.5 $ 6.0 2018 9.1 6.0 2019 7.3 6.0 2020 5.5 6.0 2021 3.1 6.0 Later years 4.5 120.0 Minimum lease payments $ 41.0 $ 150.0 Less: amount representing interest (70.0 ) Capital lease obligations 80.0 Rental expense pursuant to operating leases was $17.4 million , $16.5 million and $15.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Capital leases The capital lease obligations consist of $80.0 million at December 31, 2016 and 2015 owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky site, which is due at maturity in 2027. The interest rate on the $80.0 million capital lease obligation is 7.67% . Interest payments are payable semi-annually. We have a $28 million capital lease obligation due in 2017, for certain assets located at Performance Chemicals' DeRidder, Louisiana site. The lease is with the Industrial Development Board of the City of DeRidder Louisiana (“City”). The City financed the acquisition of these assets by issuing a series of industrial development revenue bonds. The bonds were purchased by Ingevity and the obligations under the capital lease remain with Ingevity. Accordingly, we offset the capital lease obligation and bonds on our Consolidated Balance Sheets. The leased assets are presented within property, plant and equipment on the Consolidated Balance Sheets, see Note 8 for more information. Legal Proceedings We are, from time to time, involved in routine litigation incidental to our operations. None of the litigation in which we are currently involved, individually or in the aggregate, is material to our consolidated financial condition, liquidity or results of operations nor are we aware of any material pending or contemplated proceedings. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment information | Segment information Ingevity’s operating segments are (i) Performance Materials and (ii) Performance Chemicals, a description of both operating segments is included below. Performance Materials The Performance Materials segment manufactures and sells activated carbon products in the form of powder, granular, extruded pellets or structured honeycombs and activated carbon sheets which target gasoline vapor emission control within the automotive industry as well as the food, water, beverage and chemical purification industries. In addition, extruded pellets and structured honeycomb products are used for air emissions control, corrosion protection and odor reduction. The business has produced and sold activated carbon for over 100 years. Its branded Nuchar products are designed to meet the most stringent technical requirements of the applications where they are used. The history of expertise, manufacturing knowledge and technical capabilities allows us to design the porous carbon structure to be the optimal size for the molecules that need to be adsorbed in the noted applications. The products are uniquely designed to adsorb (catch and retain) and adsorb/desorb (catch and release) depending on the need of the application requirements. Performance Chemicals The Performance Chemicals segment manufacturers and sells products that are derived from CTO and lignin that are extracted from the kraft papermaking process. These materials are processed to make specialty chemicals that are used in the papermaking, adhesives, publication inks, rubber, asphalt, oilfield, bio-fuels, agriculture, dyestuffs and other industrial applications. The CTO-based products are produced by fractionating the CTO through a bio-refinery into intermediate products. The intermediates are either sold off or further processed into different specialty formulations to create increased value. It is the strategy of the business to further process all refinery intermediate products into innovative, specialty formulations. Year Ended December 31, In millions 2016 2015 2014 Net sales Performance Materials $ 301.0 $ 256.4 $ 249.4 Performance Chemicals 607.3 701.9 786.1 Total net sales (1) 908.3 958.3 1,035.5 Segment operating profit (2) Performance Materials 106.9 79.7 89.5 Performance Chemicals 56.7 86.6 123.8 Total segment operating profit (1) 163.6 166.3 213.3 Separation costs (3) (17.5 ) (17.2 ) (0.4 ) Restructuring and other income (charges) (4) (41.2 ) 7.5 5.6 Interest expense (19.3 ) (20.1 ) (16.4 ) Interest income 1.4 — — Provision for income taxes (42.6 ) (52.2 ) (69.5 ) Net income (loss) attributable to noncontrolling interests (9.2 ) (4.6 ) (3.6 ) Net income (loss) attributable to Ingevity stockholders $ 35.2 $ 79.7 $ 129.0 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. Refer to Note 3 for the impact of the correction to previously issued financial statements. (2) Segment operating profit is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses and other (income) expense, net). We have excluded the following items from segment operating profit: interest expense associated with corporate debt facilities, income taxes, gains (or losses) on divestitures of businesses, restructuring and other (income) charges and separation costs, and net income (loss) attributable to noncontrolling interests. Refer to Note 3 for the impact of the correction to previously issued financial statements. (3) See Note 15 for more information on separation costs. (4) Information about how restructuring and other charges (income) relate to our businesses at the segment level is discussed in Note 16. Net sales to external customers for each of our product line groups is presented below. Our Performance Materials segment has one product line group, and therefore net sales to external customers within that segment is included in the table above. Year Ended December 31, In millions 2016 2015 2014 Performance Chemicals Net sales Pavement Technologies product line $ 148.8 $ 147.5 $ 132.0 Oilfield Technologies product line 58.5 78.0 126.8 Industrial Specialties product line 400.0 476.4 527.3 Total Performance Chemicals Net sales (1) $ 607.3 $ 701.9 $ 786.1 Depreciation and amortization Capital expenditures Year Ended December 31, Year Ended December 31, In millions 2016 2015 2014 2016 2015 2014 Performance Materials $ 16.4 $ 11.1 $ 9.9 $ 39.6 $ 65.3 $ 66.4 Performance Chemicals 22.4 23.5 22.4 17.1 35.6 35.4 Total $ 38.8 $ 34.6 $ 32.3 $ 56.7 $ 100.9 $ 101.8 Net sales (1) Year Ended December 31, In millions 2016 2015 2014 North America $ 597.8 $ 623.0 $ 690.0 Asia Pacific 138.8 149.3 150.6 Europe, Middle East and Africa 151.1 155.9 154.3 South America 20.6 30.1 40.6 Net sales $ 908.3 $ 958.3 $ 1,035.5 Property, plant and equipment, net December 31, In millions 2016 2015 2014 North America $ 349.1 $ 338.7 $ 295.4 Asia Pacific 72.7 76.9 93.8 Europe, Middle East and Africa 0.7 0.8 0.8 South America 0.3 21.1 20.1 Property, plant and equipment, net $ 422.8 $ 437.5 $ 410.1 Total assets December 31, In millions 2016 2015 2014 Performance Materials $ 359.5 $ 355.2 $ 300.7 Performance Chemicals 470.3 420.5 412.4 Total segment assets (2) 829.8 775.7 713.1 Corporate and other 3.0 3.0 4.2 Total assets $ 832.8 $ 778.7 $ 717.3 _______________ (1) Sales are assigned to geographic areas based on location to which product was shipped to a third party. (2) Segment assets exclude assets not specifically managed as part of one specific segment herein referred to as "Corporate and other." |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding for basic and diluted earnings (loss) per share for the year ended December 31, 2016 was based on the weighted average number of common shares outstanding for the period beginning after the Distribution Date. The weighted average number of common shares outstanding for basic and diluted earnings per share for years ended December 31, 2015 and 2014 was based on the number of shares of Ingevity common stock outstanding on the Distribution Date. On May 15, 2016, the Distribution Date, each holder of WestRock's common stock received one share of Ingevity's common stock for every six shares of WestRock's common stock held on the Record Date. Diluted earnings (loss) per share is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding for the period beginning after the Distribution Date. The calculation of diluted net income per share excludes all anti-dilutive common shares. Year Ended December 31, In millions (except share and per share data) 2016 2015 2014 Net income (loss) attributable to Ingevity stockholders $ 35.2 $ 79.7 $ 129.0 Basic and Diluted earnings (loss) per share (1) Basic earnings (loss) per share $ 0.83 $ 1.89 $ 3.06 Diluted earnings (loss) per share 0.83 1.89 3.06 Shares (2) Weighted average number of shares of common stock outstanding - Basic 42,108 42,102 42,102 Weighted average additional shares assuming conversion of potential common shares 163 — — Shares - diluted basis 42,271 42,102 42,102 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the Distribution Date. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 is calculated using the number of common shares distributed on May 15, 2016. (2) Shares are presented in thousands. The following average number of potential common shares were antidilutive and, therefore, were not included in the diluted earnings per share calculation: Year Ended December 31, In thousands 2016 2015 2014 Average number of potential common shares - antidilutive 4 — — |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information The following tables include details of prepaid and other current assets, other assets, accrued expenses and other liabilities as presented on the Consolidated Balance Sheets: Prepaid and other current assets: December 31, In millions 2016 2015 Income and value added tax receivables $ 10.7 $ 9.6 Prepaid freight and supply agreements 0.8 2.7 Non-trade receivables 5.6 2.8 Advances to suppliers 0.8 1.1 Other 5.8 4.0 $ 23.7 $ 20.2 Other assets: December 31, In millions 2016 2015 Deferred compensation arrangements $ — $ 2.6 Capitalized software, net 5.2 5.0 Prepaid supply agreements 2.4 2.7 Land-use rights 5.6 5.7 Other 8.8 7.0 $ 22.0 $ 23.0 Accrued expenses: December 31, In millions 2016 2015 Accrued interest $ 3.2 $ 2.8 Accrued taxes 1.5 1.5 Accrued freight 1.5 2.2 Accrued rebates 2.2 2.5 Restructuring reserves 2.2 — Separation-related Reimbursement Awards 2.1 — Other 6.6 5.8 $ 19.3 $ 14.8 Other liabilities: December 31, In millions 2016 2015 Deferred compensation arrangements $ 0.7 $ 2.5 Pension and other post-retirement benefit obligations 5.9 — Other 3.6 4.7 $ 10.2 $ 7.2 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) 2016 2015 (2) (in Millions, Except Share and Per Share Data) 1Q (2) 2Q (2) 3Q (2) 4Q 1Q 2Q 3Q 4Q Net sales $ 199.6 $ 245.4 $ 252.4 $ 210.9 $ 234.5 $ 259.9 $ 254.8 $ 209.1 Gross profit 63.0 74.7 80.4 56.3 67.1 82.1 76.9 49.3 Income (loss) before income taxes 22.9 38.5 10.5 15.1 34.8 42.2 40.9 18.6 Net income (loss) 11.7 25.9 (4.9 ) 11.7 23.2 26.2 25.0 9.9 Less: Net income (loss) attributable to noncontrolling interests 2.5 1.8 2.3 2.6 1.2 0.9 1.2 1.3 Net income (loss) attributable to Ingevity stockholders $ 9.2 $ 24.1 $ (7.2 ) $ 9.1 $ 22.0 $ 25.3 $ 23.8 $ 8.6 Basic earnings (loss) per common share attributable to Ingevity stockholders $ 0.22 $ 0.57 $ (0.17 ) $ 0.22 $ 0.52 $ 0.60 $ 0.57 $ 0.20 Diluted earnings (loss) per common share attributable to Ingevity stockholders (1) 0.22 0.57 (0.17 ) 0.22 0.52 0.60 0.57 0.20 Weighted average shares outstanding Basic 42.1 42.1 42.1 42.1 42.1 42.1 42.1 42.1 Diluted 42.1 42.1 42.1 42.3 42.1 42.1 42.1 42.1 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. Basic and diluted earnings (loss) per share for periods subsequent to the Separation are calculated using the weighted average number of common shares outstanding for the period beginning after the Distribution Date. Basic and diluted earnings (loss) per share for periods prior to the Separation are calculated using the number of common shares distributed on May 15, 2016. The sum of quarterly earnings per common share may differ from the full-year amount. (2) Certain prior period amounts have been revised to reflect the correction of certain immaterial errors. See below for the impact of these adjustments on quarterly basis and Note 3 for the annual impact of the adjustments. Correction to previously issued quarterly financial statements During the quarters and year ended December 31, 2016, we identified various errors related to our previously issued annual and interim Consolidated Financial Statements. Although Ingevity’s management has determined that the impact of such errors is immaterial to all previously issued financial statements, we revised the previously issued financial statements for the periods ended December 31, 2015 and 2014 in connection with this 2016 Form 10-K and those corrections will also be reflected in the Company’s future Form 10-Q filings for more information see Note 3. Q1 2016 Q2 2016 Q3 2016 (in millions, except Per Share Data) Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Net sales $ 203.9 $ (4.3 ) $ 199.6 $ 248.7 $ (3.3 ) $ 245.4 $ 252.0 $ 0.4 $ 252.4 Gross profit 60.0 3.0 63.0 76.1 (1.4 ) 74.7 81.0 (0.6 ) 80.4 Income (loss) before income taxes 19.8 3.1 22.9 38.4 0.1 38.5 10.5 — 10.5 Net income (loss) 9.8 1.9 11.7 25.8 0.1 25.9 (4.8 ) (0.1 ) (4.9 ) Less: Net income (loss) attributable to noncontrolling interests 1.6 0.9 2.5 2.1 (0.3 ) 1.8 2.3 — 2.3 Net income (loss) attributable to Ingevity stockholders $ 8.2 $ 1.0 $ 9.2 $ 23.7 $ 0.4 $ 24.1 $ (7.1 ) $ (0.1 ) $ (7.2 ) Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (1) $ 0.19 $ 0.03 $ 0.22 $ 0.56 $ 0.01 $ 0.57 $ (0.17 ) $ — $ (0.17 ) _______________ (1) The sum of quarterly earnings per common share may differ from the full-year amount. Q1 2015 Q2 2015 Q3 2015 Q4 2015 (in millions, except Per Share Data) Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Net sales $ 239.2 $ (4.7 ) $ 234.5 $ 262.2 $ (2.3 ) $ 259.9 $ 256.5 $ (1.7 ) $ 254.8 $ 209.8 $ (0.7 ) $ 209.1 Gross profit 69.1 (2.0 ) 67.1 85.1 (3.0 ) 82.1 77.6 (0.7 ) 76.9 48.9 0.4 49.3 Income (loss) before income taxes 36.4 (1.6 ) 34.8 43.6 (1.4 ) 42.2 40.5 0.4 40.9 17.6 1.0 18.6 Net income (loss) 24.2 (1.0 ) 23.2 27.1 (0.9 ) 26.2 24.7 0.3 25.0 9.3 0.6 9.9 Less: Net income (loss) attributable to noncontrolling interests 1.2 — 1.2 1.2 (0.3 ) 0.9 1.3 (0.1 ) 1.2 1.3 — 1.3 Net income (loss) attributable to Ingevity stockholders $ 23.0 $ (1.0 ) $ 22.0 $ 25.9 $ (0.6 ) $ 25.3 $ 23.4 $ 0.4 $ 23.8 $ 8.0 $ 0.6 $ 8.6 Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (1) $ 0.55 $ (0.03 ) $ 0.52 $ 0.62 $ (0.02 ) $ 0.60 $ 0.56 $ 0.01 $ 0.57 $ 0.19 $ 0.01 $ 0.20 _______________ (1) The sum of quarterly earnings per common share may differ from the full-year amount. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR YEARS ENDED DECEMBER 31, 2016, 2015 and 2014 Provision/ (Benefit) (in millions) Balance, Beginning of Year Charged to Costs and Expenses Charged to Other Comprehensive Income Write-offs (1) Balance, End of Year December 31, 2016 Reserve for doubtful accounts (2) $ 0.1 0.2 — — $ 0.3 Deferred tax valuation allowance $ 6.6 13.2 (1.0 ) — $ 18.8 December 31, 2015 Reserve for doubtful accounts (2) $ 0.5 (0.4 ) — — $ 0.1 Deferred tax valuation allowance $ 4.8 1.5 0.3 — $ 6.6 December 31, 2014 Reserve for doubtful accounts (2) $ 0.3 0.2 — — $ 0.5 Deferred tax valuation allowance $ 3.6 1.0 0.2 $ 4.8 _______________ (1) Write-offs are net of recoveries. (2) Reserve for doubtful accounts is included within Accounts receivable, net on the Consolidated Balance Sheet. |
Summary of significant accoun33
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Related-party transactions | Related-party transactions: For periods prior to May 15, 2016, these Consolidated Financial Statements include allocated expenses associated with centralized WestRock support functions including legal, accounting, tax, treasury, internal audit, information technology, human resources and other services. The costs associated with these functions generally include all payroll and benefit costs as well as related overhead costs. For periods prior to May 15, 2016, these Consolidated Financial Statements also include allocated costs associated with WestRock’s office facilities, corporate insurance coverage and medical, pension, post-retirement and other health plan costs attributed to Ingevity’s employees participating in WestRock’s sponsored plans. Allocations are generally based on a number of utilization measures including employee count and proportionate effort. In situations in which determinations based on utilization are impracticable, WestRock and Ingevity used other methods and criteria such as net sales which are believed to result in reasonable estimates of costs attributable to Ingevity. Such allocated expenses are components of net income in the Consolidated Statement of Operations and are therefore included as a component of net cash provided by (or used in) operating activities in the Consolidated Statement of Cash Flows. All such amounts have been assumed to have been immediately settled by Ingevity to WestRock in the period in which the costs were recorded in the Consolidated Financial Statements. We believe the related-party allocations included in these Consolidated Financial Statements for periods prior to the Separation have been made on a reasonable basis. However, these Consolidated Financial Statements may not necessarily be indicative of the results of operations that would have been obtained if Ingevity had operated as a separate entity during the periods presented prior to May 15, 2016. Actual costs that may have been incurred if Ingevity had been a stand-alone business would depend on a number of factors, including organizational structure and what functions were outsourced or performed by employees, as well as strategic decisions made in areas such as information technology and infrastructure. Consequently, Ingevity’s future earnings while operated as an independent business could include items of income and expense that are materially different from what is included in the Consolidated Statements of Operations prior to the Separation. Accordingly, the Consolidated Financial Statements for the periods presented prior to the Separation are not necessarily indicative of Ingevity’s future results of operations, financial position and cash flows. |
Net parent investment | Net parent investment: At December 31, 2015, Ingevity’s net parent investment on the Consolidated Balance Sheets, which includes retained earnings, represents WestRock’s interest in the recorded net assets of Ingevity and is presented as “Equity” in lieu of stockholders’ equity. All significant transactions between Ingevity and WestRock have been included in the accompanying Consolidated Financial Statements. For periods prior to the Separation, transactions with WestRock are reflected in the accompanying Consolidated Statements of Stockholders' Equity as “Transactions with Parent” and in the accompanying Consolidated Balance Sheets within “Equity.” The transactions with WestRock have been considered cash receipts and payments for the purposes of the Consolidated Statements of Cash Flows and are reflected in financing activities in the accompanying Consolidated Statements of Cash Flows for periods prior to the Separation. Prior to the Separation, the net parent investment was affected by Ingevity’s operating results, expense allocations from WestRock and cash transfers between Ingevity and WestRock, including settlement of intercompany transactions and amounts paid or received related to interest and domestic income taxes, as WestRock managed all treasury and domestic tax activities of Ingevity prior to the Separation. Central treasury activities include the investment of surplus cash and foreign currency risk management. All WestRock funding to Ingevity since inception has been accounted for as capital contributions from WestRock and all cash remittances from Ingevity to WestRock have been accounted for as distributions to WestRock for periods prior to the Separation. In addition, interest expense associated with WestRock’s debt has been allocated to Ingevity based upon average net assets of Ingevity as a percentage of average net assets plus average consolidated debt not attributable to other operations of WestRock for periods prior to the Separation. We believe this method of allocating interest expense produces reasonable results because average net assets is a significant factor in determining the amount of WestRock borrowings. Interest expense allocated to Ingevity’s Consolidated Statements of Operations was $7.2 million , $13.5 million and $9.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. No WestRock corporate-level debt has been allocated to Ingevity’s Consolidated Balance Sheets. |
Noncontrolling interests | Noncontrolling interests: When our ownership in a consolidated legal entity is less than 100 percent, the outside stockholders' interests are shown as noncontrolling interests. |
Use of Estimates | Estimates and assumptions: In preparing the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results are likely to differ from those estimates, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. |
Translation of foreign currencies | Translation of foreign currencies: The local currency is the functional currency for all of Ingevity’s significant operations outside the United States (“U.S.”). The assets and liabilities of Ingevity's foreign subsidiaries are translated into U.S. dollars using period-end exchange rates, and adjustments resulting from these financial statement translations are included in accumulated other comprehensive income in the Consolidated Balance Sheets. Revenues and expenses are translated at average rates prevailing during each period. |
Cash equivalents | Cash equivalents: Highly liquid securities with an original maturity of three months or less are considered to be cash equivalents. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts: Accounts receivable, net on the Consolidated Balance Sheets are comprised of trade receivable less allowances for doubtful accounts. Trade receivables consist of amounts owed to Ingevity from customer sales and are recorded at the invoiced amounts when revenue is recognized and generally do not bear interest. The allowance for doubtful accounts is our best estimate of the amount of probable loss in the existing accounts receivable. We determine the allowance based on historical write-off experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Past due balances over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance when it is probable that the receivable will not be recovered. |
Concentration of credit risk | Concentration of credit risk: The financial instruments that potentially subject Ingevity to concentrations of credit risk are accounts receivable. We limit our credit risk by performing ongoing credit evaluations and, when necessary, requiring letters of credit, guarantees or collateral. |
Inventories, net | Inventories, net: Inventories are valued at net realizable value. Cost is determined using the last-in, first-out method (“LIFO”) for substantially all raw materials, finished goods and production materials of U.S. manufacturing operations. Cost of all other inventories, including stores and supplies inventories and inventories of non-U.S. manufacturing operations, is determined by the first-in, first-out ("FIFO") or average cost methods. |
Property, plant and equipment | Property, plant and equipment: Owned assets are recorded at cost. Also included in the cost of these assets is interest on funds borrowed during the construction period. When assets are sold, retired or disposed of, their cost and related accumulated depreciation are removed from the Consolidated Balance Sheet and any resulting gain or loss is reflected in cost of sales. Repair and maintenance costs that materially add to the value of the asset or prolong its useful life are capitalized and depreciated based on the extension of the useful life; general costs of maintenance and repairs are charged to expense. |
Depreciation | Depreciation: The cost of plant and equipment is depreciated, utilizing the straight-line method, over the estimated useful lives of the assets, the majority of which range from 20 to 40 years for buildings and leasehold improvements and 5 to 30 years for machinery and equipment. The following table provides the detail behind the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of M&E Cost Depreciable Life in Years Types of Assets 59 20 Production vessels and kilns, storage tanks, piping 12 15 Control systems, instrumentation, metering equipment 8 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 18 5 to 10 Production control system equipment and hardware, laboratory testing equipment 3 40 Machinery & equipment support structures and foundations |
Impairment of long-lived assets | Impairment of long-lived assets: We periodically evaluate whether current events or circumstances indicate that the carrying value of our long-lived assets, including intangible assets, to be held and used may not be recoverable. If such circumstances are determined to exist, an estimate of undiscounted future cash flows produced by the long-lived asset, or the appropriate grouping of assets, is compared to carrying value to determine whether impairment exists. If an asset is determined to be impaired, the loss is measured based on quoted market prices in active markets, if available. If quoted market prices are not available, the estimate of fair value is based on various valuation techniques, including a discounted value of estimated future cash flows. We report an asset to be disposed of at the lower of its carrying value or its estimated net realizable value. |
Goodwill and other intangible assets | Goodwill and other intangible assets: Goodwill represents the excess of cost of an acquired business over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination. We review the recorded value of goodwill at least annually at October 1, or sooner if events or changes in circumstances indicate that the fair value of a reporting unit is below its carrying value. If goodwill is required to be tested for impairment, a two-step process is utilized. The first step is to identify a potential impairment and the second step is to measure the amount of the impairment loss, if any. The second step is not necessary unless an impairment indicator is identified in step one. Goodwill is deemed to be impaired after step two if the carrying amount of a reporting unit’s goodwill exceeds its estimated fair value. The fair value of each reporting unit is estimated primarily using an income approach, specifically the discounted cash flow method. The following assumptions are key to the income approach: 1). business projections; 2). growth rates; 3). discount rates; 4). tax rates. Other intangible assets are comprised of finite-lived intangible assets consisting primarily of brand, representing trademarks, trade names and know-how, customer contracts and relationships. Other intangible assets are amortized over their estimated useful lives which range from 5 to 20 years. See Note 9 for further information. |
Capitalized software | Capitalized software: Capitalized software for internal use is included in other assets on the Consolidated Balance Sheets. Capitalized software is amortized using the straight-line over the estimated useful lives ranging from 1 to 7 years. We record software development costs in accordance with the accounting guidance provided by the Financial Accounting Standards Board. |
Environmental and legal liabilities | Environmental and legal liabilities: Environmental expenditures that increase useful lives of assets are capitalized, while other environmental expenditures are expensed. Liabilities are recorded when remedial efforts are probable and the costs can be reasonably estimated. We recognize a liability for other legal contingencies when a loss is probable and reasonably estimable. Liabilities recorded for claims are limited to pending cases based on Ingevity’s historical experience, consultation with outside counsel and consultation with an actuarial specialist concerning the feasibility of reasonably estimating liabilities associated with claims that may arise in the future. We recognized insurance recoveries when collection is reasonably assured. Third-party fees for legal services are expensed as incurred. |
Revenue recognition | Revenue recognition: We recognize revenues at the point when title and the risk of ownership passes to the customer. Substantially all of Ingevity’s revenues are generated through product sales and shipping terms generally indicate when title and the risk of ownership have passed. Revenue is recognized at shipment for sales where shipping terms are FOB (freight on board) shipping point unless risk of loss is maintained under freight terms. For sales where shipping terms are FOB destination, revenue is recognized when the goods are received by the customer. We provide allowances for estimated returns and other customer credits such as discounts and volume rebates, when the revenue is recognized, based on historical experience, current trends and any notification of pending returns. |
Shipping and handling costs | Shipping and handling costs : Shipping and handling costs are classified as a component of cost of sales. Amounts billed to a customer in a sales transaction related to shipping and handling are classified as revenue. |
Research and development | Research and development: Included in selling, general and administrative expenses are expenditures for research and development of $7.6 million , $6.9 million and $7.8 million for the years ended December 31, 2016, 2015 and 2014, respectively, which were expensed as incurred. |
Income taxes | Income taxes: The Company is subject to income taxes in the United States and numerous foreign jurisdictions, including China. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. We follow the liability method of accounting for income taxes in accordance with current accounting standards regarding the accounting for income taxes. Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled. The ability to realize deferred tax assets is evaluated through the forecasting of taxable income, historical and projected future operating results, the reversal of existing temporary differences, and the availability of tax planning strategies. Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. We do not provide income taxes on undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. Please see Note 17 for more information. The Company recognizes income tax positions that are more likely than not to be realized and accrues interest related to unrecognized income tax positions, which is included as a component of the income tax provision on the Consolidated Statements of Operations. Ingevity’s pre-Separation activity in the U.S. will be reported in WestRock’s U.S. consolidated income tax return and certain foreign activity will be reported in WestRock tax paying entities in those jurisdictions. Under the Tax Matters Agreement of the Separation, WestRock is responsible for the income tax liabilities associated with all U.S. operations prior to Separation and for the historic operations of certain foreign legal entities retained by WestRock after the Separation. For periods prior to the Separation, the income tax provision included in the Consolidated Financial Statements related to domestic and certain foreign operations was calculated on a separate return basis, as if Ingevity was a separate taxpayer and the resulting current tax receivable or liability, including any liabilities related to uncertain tax positions, was settled with WestRock through equity at Separation. In other foreign taxing jurisdictions, the operations of Ingevity were always conducted in discrete legal entities, each of which files separate tax returns, and all resulting income tax assets and liabilities, including any liabilities related to uncertain tax positions, are reflected in the Consolidated Balance Sheets of Ingevity. |
Pension and postretirement benefits | Pension and postretirement benefits: Prior to the Separation, the employees of Ingevity were participants in various defined benefit pension and postretirement benefit plans (“the Plans”) sponsored by WestRock and the related assets and liabilities were combined with those related to other WestRock businesses. Expense allocated under the Plans was reported within Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operation. We considered the Plans to be part of a multi-employer plan with the other businesses of WestRock. In conjunction with the Separation, the employees of Ingevity stopped participating in WestRock pension and post-retirement benefit plans. We assumed certain domestic and international pension and other post-retirement benefit obligations from WestRock on the date of Separation. We established new qualified and non-qualified benefit plans to continue the pension and postretirement benefits provided to its employees and retirees based on the obligations assumed from WestRock. The expense related to the current employees of Ingevity as well as the expense related to retirees of Ingevity are included in the Consolidated Financial Statements. The costs (or benefits) and obligations related to these benefits reflect key assumptions related to general economic conditions, including interest (discount) rates, healthcare cost trend rates and expected return on plan assets. The costs (or benefits) and obligations for these benefit programs are also affected by other assumptions, such as average retirement age, mortality, employee turnover, and plan participation. To the extent our plans' actual experience, as influenced by changing economic and financial market conditions or by changes to our own plans' demographics, differs from these assumptions, the costs and obligations for providing these benefits, as well as the plans' funding requirements, could increase or decrease. When actual results differ from our assumptions, the difference is typically recognized over future periods. In addition, the unrealized gains and losses related to our pension and postretirement benefit obligations may also affect periodic benefit costs (or benefits) in future periods. See Note 14 for additional information. |
Share-based compensation | Share-based compensation: Prior to the Separation, share-based compensation expense was allocated to Ingevity based on the portion of WestRock's incentive share-based compensation program in which employees of Ingevity participated. Upon Separation, we began granting certain employees, and non-employee directors of Ingevity different forms of benefits, including stock option, restricted stock units ("RSU"s) and performance-based restricted stock units ("PSU"s). Share-based compensation cost is measured at the date of grant, based on the fair value of the award and is recognized over the grantee's requisite service period. Substantially all compensation expense related to share-based awards is recorded as a component of Selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 11 for further information |
Operating segments | Operating segments: Ingevity’s operating segments are Performance Materials and Performance Chemicals. Our operating segments were determined based upon the nature of the products produced, the nature of the production process, the type of customer for the products, the similarity of economic characteristics, and the manner in which management reviews results. Ingevity’s chief operating decision maker evaluates the business at the segment level when making decisions about allocating resources and assessing performance of Ingevity as a whole. We evaluate sales in a format consistent with our reportable segments: (1) Performance Materials, which includes wood-based, chemically activated carbon products and (2) Performance Chemicals, which includes specialty pine-based chemical co-products derived from the kraft pulping process. Each segment operates as a portfolio of various end uses for the relevant raw material used in that segment. Business decisions are made and performance is generally measured based upon the total mix of end uses each raw material is being directed at in the segment. As a result of the breadth and diversity of the products within our Performance Materials segment, it is impracticable to provide revenue information by product line. |
New Accounting Pronouncements | In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. The new guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to an outside party. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. This new guidance will not have a material impact our Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU 2016-09 "Improvements to Employee Share-Based Payment Accounting." The amendments in this new standard simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the new ASU, entities record all excess tax benefits and tax deficiencies as an income tax benefit or expense in the income statement, and entities classify excess tax benefits as an operating activity in the statement of cash flows. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted, and we early adopted this new standard during our second quarter of 2016. The impact of adoption did not have a material effect on our Consolidated Financial Statements. In February 2016, the FASB issued its new lease accounting guidance in ASU 2016-02 "Leases." Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are in the process of evaluating the impact of this guidance on our Consolidated Financial Statements and related disclosures, including identifying and analyzing all contracts that contain a lease. As a lessee, the majority of our leases under existing guidance are classified as operating leases and therefore not recorded on the balance sheet but are recorded in the statement of earnings as expense as incurred. Upon adoption of the new guidance, we may be required to record the vast majority of these operating leases on the balance sheet as a right-of-use asset and a lease liability. The timing of expense recognition and classification in the statement of earnings could change based on the classification of leases as either operating or financing; however, we have not completed our evaluation to determine to what extent. In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes.” The amendment requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as non-current on the balance sheet. As a result, each tax jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. This standard is applicable for fiscal years beginning after December 15, 2016 and for interim periods within those years and early adoption is permitted. We early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted. In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." The amendments in this new standard require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this standard. In August 2015, the FASB issued ASU 2015-15 "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements." This ASU amends Subtopic 835-30 to include that the SEC staff would not object to the deferral and presentation debt issuance costs as an asset and subsequent amortization of the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These standards are applicable for fiscal years beginning after December 15, 2015. We have adopted this standard in the first quarter of 2016, and the impact of adoption did not have a material effect on our Consolidated Financial Statements. In February 2015, the FASB issued ASU 2015-02 “Consolidation - Amendments to the Consolidation Analysis,” which amends certain provisions of ASC 810 “Consolidation.” The amendment requires the consideration of additional criteria in (i) the analysis and determination of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and (ii) primary beneficiary determinations. The ASU also eliminates certain fees from the consolidation analysis of reporting entities that are involved with variable interest entities. The ASU is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. We adopted these provisions on January 1, 2016. The impact of adoption did not have a material effect on our Consolidated Financial Statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern.” The update requires management to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. The update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. We adopted the guidance effective December 31, 2016. No disclosure was considered necessary as of December 31, 2016 as a result of management’s evaluation. In May 2014, the FASB issued ASU 2014-09 which is codified in ASC 606 “Revenue from Contracts with Customers” and supersedes both the revenue recognition requirement to ASC 605 “Revenue Recognition” and most industry-specific guidance. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the five steps set forth in ASC 606. An entity must also disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative information about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The ASU was scheduled to be effective for annual reporting periods, and for interim reporting periods within those annual reporting periods, beginning after December 15, 2016. However, in July 2015 the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date. As a result, we expect to adopt these provisions on January 1, 2018, including interim periods subsequent to the adoption date, which can be applied using a full retrospective or modified retrospective approach. Since the issuance of ASU 2014-09, the FASB has issued several amendments which clarify certain points in the new Topic 606-Revenue from Contracts with Customers, including ASU 2016-08 ("Principal versus Agent Considerations - Reporting Revenue Gross versus Net"), ASU 2016-10 ("Identifying Performance Obligations and Licensing"), ASU 2016-11 ("Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting"), ASU 2016-12 ("Narrow Scope Improvements and Practical Expedients") and ASU 2016-20 ("Technical Corrections and Improvements to Topic 606.") We anticipate adopting all of these standards at the same time effective January 1, 2018. We have begun our initial assessment of the impact that ASU 2014-09 and subsequent amendments will have on our Consolidated Financial Statements and related disclosures. Based upon the results of our initial assessment thus far, we have tentatively decided to adopt this new standard under the modified retrospective approach which results in the recognition of the cumulative effect of initially applying the new standard as an adjustment to the opening balance of equity. We are still evaluating the impact to our financial statements and disclosures. |
Correction to previously issu34
Correction to previously issued financial statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Year ended December 31, In millions 2015 2014 As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Statement of Operations Net sales $ 967.7 (9.4 ) $ 958.3 $ 1,041.0 (5.5 ) $ 1,035.5 Cost of sales 687.0 (4.1 ) 682.9 718.3 (1.3 ) 717.0 Gross profit 280.7 (5.3 ) 275.4 322.7 (4.2 ) 318.5 Selling, general and administrative expenses 113.8 (3.7 ) 110.1 111.0 (3.3 ) 107.7 Income before income taxes 138.1 (1.6 ) 136.5 203.0 (0.9 ) 202.1 Provision for income taxes 52.8 (0.6 ) 52.2 69.8 (0.3 ) 69.5 Net income (loss) 85.3 (1.0 ) 84.3 133.2 (0.6 ) 132.6 Less: Net income (loss) attributable to noncontrolling interests 5.0 (0.4 ) 4.6 3.8 (0.2 ) 3.6 Net income (loss) attributable to Ingevity stockholders $ 80.3 (0.6 ) $ 79.7 $ 129.4 (0.4 ) $ 129.0 Year ended December 31, In millions 2015 2014 Segment Information As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Net sales Performance Materials $ 256.6 (0.2 ) $ 256.4 $ 249.4 — $ 249.4 Performance Chemicals 711.1 (9.2 ) 701.9 791.6 (5.5 ) 786.1 Total net sales $ 967.7 (9.4 ) $ 958.3 $ 1,041.0 (5.5 ) $ 1,035.5 Segment operating profit Performance Materials $ 81.1 (1.4 ) 79.7 $ 90.0 (0.5 ) 89.5 Performance Chemicals 86.8 (0.2 ) 86.6 124.2 (0.4 ) 123.8 Total segment operating profit $ 167.9 (1.6 ) $ 166.3 $ 214.2 (0.9 ) $ 213.3 Year ended December 31, In millions 2015 Balance Sheet As reported Increase/(decrease) Revised Assets Accounts receivable, net $ 96.2 (1.0 ) $ 95.2 Inventories, net 151.0 (2.1 ) 148.9 Current assets $ 299.4 (3.1 ) $ 296.3 Liabilities and Equity Accrued expenses $ 12.2 2.6 $ 14.8 Current liabilities 97.2 2.6 99.8 Deferred income taxes 75.7 (1.4 ) 74.3 Total liabilities 260.1 1.2 261.3 Net parent investment 533.5 (3.4 ) 530.1 Noncontrolling interest 4.7 (0.9 ) 3.8 Total equity 521.7 (4.3 ) 517.4 Total liabilities and equity $ 781.8 (3.1 ) $ 778.7 Year ended December 31, In millions 2015 2014 As reported Increase/(decrease) Revised As reported Increase/(decrease) Revised Statement of Cash Flows Net income (loss) $ 85.3 (1.0 ) $ 84.3 $ 133.2 (0.6 ) $ 132.6 Deferred income taxes 9.3 (1.0 ) 8.3 2.4 (0.2 ) 2.2 Accounts receivable, net 8.9 (0.4 ) 8.5 (4.2 ) (0.6 ) (4.8 ) Inventories (25.4 ) 1.3 (24.1 ) (28.7 ) 1.1 (27.6 ) Prepaid and other current assets (8.1 ) 1.4 (6.7 ) 1.6 (6.9 ) (5.3 ) Accrued expenses 0.3 0.7 1.0 5.9 0.5 6.4 Changes in all other operating assets and liabilities, net 0.5 (1.3 ) (0.8 ) (0.3 ) 0.9 0.6 Net cash provided by (used in) operating activities 72.5 (0.3 ) 72.2 144.3 (5.8 ) 138.5 Proceeds from divestiture 11.0 — 11.0 — 6.0 6.0 Net cash provided by (used in) investing activities (89.3 ) — (89.3 ) (102.8 ) 6.0 (96.8 ) Transactions with WestRock, net 28.8 0.3 29.1 (31.2 ) (0.2 ) (31.4 ) Net cash provided by (used in) financing activities 26.7 0.3 27.0 (31.4 ) (0.2 ) (31.7 ) |
Summary of significant accoun35
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table provides the detail behind the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of M&E Cost Depreciable Life in Years Types of Assets 59 20 Production vessels and kilns, storage tanks, piping 12 15 Control systems, instrumentation, metering equipment 8 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 18 5 to 10 Production control system equipment and hardware, laboratory testing equipment 3 40 Machinery & equipment support structures and foundations December 31, In millions 2016 2015 Machinery and equipment $ 779.0 $ 658.0 Buildings and leasehold equipment 96.2 64.4 Land and land improvements 17.9 17.6 Construction in progress (1) 26.3 142.5 Total cost 919.4 882.5 Less: accumulated depreciation (496.6 ) (445.0 ) Property, plant and equipment, net (2) $ 422.8 $ 437.5 _______________ (1) During the year ended December 31, 2016, we completed the start-up and have commenced commercial manufacturing operations at our activated carbon manufacturing facility in Zhuhai, China. As such, we have placed those assets in-service resulting in the decrease in construction in progress and a corresponding increase in machinery and equipment and buildings from December 31, 2015 to December 31, 2016. (2) Includes capital leases related to our Wickliffe, Kentucky manufacturing facility of (a) machinery and equipment of $9.8 million and $13.1 million , net of accumulated depreciation of $74.2 million and $71.1 million , and (b) buildings of $2.7 million and $2.8 million , net of accumulated depreciation of $3.5 million and $3.4 million at December 31, 2016 and 2015, respectively. Also includes capital leases related to our DeRidder, Louisiana manufacturing facility of machinery and equipment of $17.8 million and $19.5 million , net of accumulated depreciation of $15.5 million and $13.8 million at December 31, 2016 and 2015, respectively. Amortization expense associated with these capital leases is included within depreciation expense. The payments remaining under these capital leases obligations are included within Note 18. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The following information is presented for assets and liabilities that are recorded in the Consolidated Balance Sheets at fair value measured on a recurring basis. There were no assets recorded at fair value measured on a recurring basis as of December 31, 2016, and there were no liabilities recorded at fair value measured on a recurring basis as of December 31, 2015. There were no significant transfers of assets and liabilities that are recorded at fair value between Level 1 and Level 2 during the period reported. There were no non-recurring fair value measurements in the Consolidated Balance Sheets as of December 31, 2016 or 2015. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2016 Liabilities: Deferred compensation arrangement (4) $ 0.7 $ — $ — $ 0.7 Separation-related Reimbursement Awards (5) $ 2.1 $ — $ — $ 2.1 December 31, 2015 Assets: Cash equivalents $ 10.0 $ — $ — $ 10.0 ______________ (1) Quoted prices in active markets for identical assets. (2) Quoted prices for similar assets and liabilities in active markets. (3) Significant unobservable inputs. (4) Included within "Other liabilities" on the Consolidated Balance Sheet. (5) Included within "Accrued expenses" within "Other liabilities" on the Consolidated Balance Sheet. This amount represents an amount due to WestRock associated with WestRock equity awards held by Ingevity employees post Separation. In accordance with the EMA we are required to reimburse WestRock the fair market value of awards on the day Ingevity employees exercise their awards. The expense recognized during the year ended December 31, 2016 was $1.6 million . |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | December 31, In millions 2016 2015 Raw materials $ 50.8 $ 41.0 Production materials, stores and supplies 12.0 11.3 Finished and in-process goods 109.8 116.5 Subtotal 172.6 168.8 Less: excess of cost over LIFO cost (21.4 ) (19.9 ) Inventories, net $ 151.2 $ 148.9 |
Property, plant and equipment38
Property, plant and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table provides the detail behind the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of M&E Cost Depreciable Life in Years Types of Assets 59 20 Production vessels and kilns, storage tanks, piping 12 15 Control systems, instrumentation, metering equipment 8 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 18 5 to 10 Production control system equipment and hardware, laboratory testing equipment 3 40 Machinery & equipment support structures and foundations December 31, In millions 2016 2015 Machinery and equipment $ 779.0 $ 658.0 Buildings and leasehold equipment 96.2 64.4 Land and land improvements 17.9 17.6 Construction in progress (1) 26.3 142.5 Total cost 919.4 882.5 Less: accumulated depreciation (496.6 ) (445.0 ) Property, plant and equipment, net (2) $ 422.8 $ 437.5 _______________ (1) During the year ended December 31, 2016, we completed the start-up and have commenced commercial manufacturing operations at our activated carbon manufacturing facility in Zhuhai, China. As such, we have placed those assets in-service resulting in the decrease in construction in progress and a corresponding increase in machinery and equipment and buildings from December 31, 2015 to December 31, 2016. (2) Includes capital leases related to our Wickliffe, Kentucky manufacturing facility of (a) machinery and equipment of $9.8 million and $13.1 million , net of accumulated depreciation of $74.2 million and $71.1 million , and (b) buildings of $2.7 million and $2.8 million , net of accumulated depreciation of $3.5 million and $3.4 million at December 31, 2016 and 2015, respectively. Also includes capital leases related to our DeRidder, Louisiana manufacturing facility of machinery and equipment of $17.8 million and $19.5 million , net of accumulated depreciation of $15.5 million and $13.8 million at December 31, 2016 and 2015, respectively. Amortization expense associated with these capital leases is included within depreciation expense. The payments remaining under these capital leases obligations are included within Note 18. |
Goodwill and other intangible39
Goodwill and other intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by operating segment are as follows: Operating Segments In millions Performance Chemicals Performance Materials Total December 31, 2014 $ 8.7 $ 4.3 $ 13.0 Foreign currency translation (1.1 ) — (1.1 ) December 31, 2015 $ 7.6 $ 4.3 $ 11.9 Foreign currency translation 0.5 — 0.5 December 31, 2016 $ 8.1 $ 4.3 $ 12.4 |
Schedule of Finite-Lived Intangible Assets | All of Ingevity's other intangible assets, net are related to the Performance Chemicals operating segment. The following table summarizes intangible assets: December 31, 2016 December 31, 2015 In millions Gross carrying amount Accumulated amortization Net Gross carrying amount Accumulated amortization Net Brands (1) $ 13.9 $ 11.3 $ 2.6 $ 13.7 $ 10.6 $ 3.1 Customer contracts and relationships 28.2 23.5 4.7 28.2 21.4 6.8 Other — — — 0.6 0.5 0.1 Other intangibles, net $ 42.1 $ 34.8 $ 7.3 $ 42.5 $ 32.5 $ 10.0 _______________ (1) Represents trademarks, trade names and know-how. |
Finite-lived Intangible Assets Amortization Expense | The amortization expense related to our intangible assets in the table above for the years ended December 31, 2016, 2015 and 2014 is shown in the table below. Amortization expense is included within Cost of sales and Selling, general and administrative expenses on the Consolidated Statements of Operations. Year Ended December 31, In millions 2016 2015 2014 Amortization expense $ 3.5 $ 3.2 $ 3.4 |
Debt including capital lease 40
Debt including capital lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Debt maturing within one year consisted of the following: December 31, In millions 2016 2015 Notes payable $ — $ 9.4 Current maturities of long-term debt 7.5 — Notes payable and current maturities of long-term debt $ 7.5 $ 9.4 |
Schedule of Long-term Debt Instruments | Long-term debt including capital lease obligations consisted of the following: December 31, 2016 December 31, In millions Interest rate Maturity date 2016 2015 Revolving Credit Facility (1) 2.20% 2021 $ 111.9 $ — Term Loan Facility 2.19% 2021 300.0 — Capital lease obligations 7.67% 2027 80.0 80.0 Total debt including capital lease obligations $ 491.9 $ 80.0 Less: debt issuance costs (3.1 ) — Total debt including capital lease obligations, net of debt issuance costs $ 488.8 $ 80.0 Less: debt maturing within one year 7.5 — Long-term debt including capital lease obligations $ 481.3 $ 80.0 _______________ (1) Letters of credit outstanding under the revolving credit facility were $3.7 million and available funds under the facility was $284.4 million at December 31, 2016. |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocation of Stock-based Compensation | We recognized the following share-based compensation expense: In millions Year Ended December 31, 2016 Share-based option expense, net of taxes of $0.3 million $ 0.4 Restricted stock unit expense, net of taxes of $1.6 million 2.4 Total share-based compensation expense, net of taxes of $1.9 million $ 2.8 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The expense related to stock options granted in the period from the Separation through December 31, 2016 was based on the assumptions shown in the table below: Weighted-average assumptions used to calculate expense for stock options For the period from Separation through December 31, 2016 Risk-free interest rate 1.6 % Average life of options (years) 6.5 Volatility 35.0 % Dividend yield — Fair value per stock option $ 10.61 |
Disclosure of Stock-based Compensation Arrangements by Stock-based Payment Award | The following table summarizes Ingevity's stock option activity for the period from the Separation through December 31, 2016 as there was no Ingevity stock option activity prior to Separation. Number of shares (in thousands) Weighted-average exercise price (per share) Weighted-average remaining contractual term (years) Aggregate intrinsic value (in thousands) Outstanding, May 15, 2016 — N/A Granted 208 $ 28.03 Exercised — N/A Forfeited — N/A Canceled — N/A Outstanding, December 31, 2016 208 $ 28.03 9.4 $ 5,573 Exercisable, December 31, 2016 — N/A N/A N/A |
Schedule of Nonvested Share Activity | Nonvested awards of RSUs, both with and without performance features, as of December 31, 2016 are shown below. Number of shares (in thousands) Weighted average grant date fair value (per share) Nonvested, May 15, 2016 — N/A Granted 317 $ 28.07 Vested (23 ) $ 27.90 Forfeited — N/A Nonvested, December 31, 2016 294 $ 28.08 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Summarized below is the roll forward of accumulated other comprehensive income (loss), net of tax. In millions Foreign currency adjustments Derivative Instruments Pension and other postretirement benefits Total Accumulated other comprehensive income (loss), net of tax at December 31, 2013 $ 0.4 $ 0.2 $ — $ 0.6 2014 Activity Other comprehensive income (loss) before reclassifications (6.7 ) (1.2 ) — (7.9 ) Amounts reclassified from accumulated other comprehensive income (loss) — — — — Accumulated other comprehensive income (loss), net of tax at December 31, 2014 $ (6.3 ) $ (1.0 ) $ — $ (7.3 ) 2015 Activity Other comprehensive income (loss) before reclassifications (9.2 ) (1.9 ) — (11.1 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.9 — 1.9 Accumulated other comprehensive income (loss), net of tax at December 31, 2015 $ (15.5 ) $ (1.0 ) $ — $ (16.5 ) 2016 Activity Other comprehensive income (loss) before reclassifications (2.9 ) — (0.6 ) (3.5 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.0 — 1.0 Accumulated other comprehensive income (loss), net of tax at December 31, 2016 $ (18.4 ) $ — $ (0.6 ) $ (19.0 ) |
Transactions with WestRock an43
Transactions with WestRock and related-parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Consolidated Statements of Operations prior to May 15, 2016, include allocations from WestRock as summarized below: Year Ended December 31, In millions 2016 2015 2014 Cost of sales $ 5.7 $ 10.3 $ 9.6 Selling, general and administrative expenses 6.5 17.3 18.5 Interest expense, net 7.2 13.5 9.9 Total allocated cost (1) $ 19.4 $ 41.1 $ 38.0 _______________ (1) Allocated costs represent costs necessary to support Ingevity's operations which include governance and corporate functions such as information technology, accounting, human resources, accounts payable and other direct services including the interest on WestRock debt incurred to provide such services. |
Pension and post-retirement b44
Pension and post-retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the weighted average assumptions used and components of our defined benefit postretirement plans. The following tables also reflect a measurement date of December 31: Year Ended December 31, 2016 In millions, except percentages Pensions Other Benefits Following are the weighted average assumptions used to determine the benefit obligations at December 31: Discount rate - qualified benefit plans 4.10 % — % Discount rate - non-qualified benefit plans 4.15 % 3.95 % Rate of compensation increase N/A N/A Change in projected benefit obligation Project benefit obligation at May 15, 2016 $ 24.2 $ 0.8 Service cost 0.7 — Interest cost 0.6 — Actuarial loss (gain) (1.1 ) (0.1 ) Projected benefit obligation at December 31, 2016 24.4 0.7 Change in plan assets Fair value of plan asset at May 15, 2016 19.8 — Actual return on plan assets (1.6 ) — Company contributions 1.0 — Fair value of plan assets at December 31 19.2 — Funded Status Net Funded Status of the Plan Asset (Liability) (1) $ (5.2 ) $ (0.7 ) _______________ (1) Included in "Other Liabilities" on the Consolidated Balance Sheet. Amount Recognized in the Consolidated Balance Sheet: Year Ended December 31, 2016 In millions Pensions Other Benefits Pension and other postretirement benefit asset $ — $ — Accrued pension and other postretirement benefit liability (5.2 ) (0.7 ) Total (1) $ (5.2 ) $ (0.7 ) _______________ (1) Included in "Other Liabilities" on the Consolidated Balance Sheet. Amounts Recognized in Other Comprehensive (Income) Loss Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss are as follows: Year Ended December 31, 2016 In millions Pensions Other Benefits Current year net actuarial loss (gain) $ 0.9 $ (0.1 ) Current year prior service cost (credit) 0.1 — Total recognized in other comprehensive (income) loss, before taxes 1.0 (0.1 ) Total recognized in other comprehensive (income) loss, after taxes (1) $ 0.5 $ 0.1 _______________ (1) This also represents the accumulated other comprehensive income (loss), net of tax as of December 31, 2016. The following table reflects the estimated future benefit payments for our pension and other postretirement benefit plans. These estimates take into consideration expected future service, as appropriate. In millions Pensions Other Benefits 2017 $ 0.2 $ — 2018 0.3 2019 0.4 2020 0.5 — 2021 0.7 — 2022-2026 $ 5.6 $ 0.2 The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets at December 31, 2016: In millions December 31, 2016 Projected benefit obligations $ 24.4 Accumulated benefit obligations 24.4 Fair value of plan assets $ 19.2 Net Annual Benefit Costs Assumptions The following table summarizes the weighted-average assumptions use for and the components of net annual benefit cost: Year Ended December 31, 2016 In millions, except percentages Pensions Other Benefits Discount rate - qualified benefit plans (1) 4.00 % — % Discount rate - non-qualified benefit plans (1) 3.75 % 3.75 % Expected return on plan assets 4.50 % N/A Components of net annual benefit cost: Service cost $ 0.7 $ — Interest cost 0.6 — Expected return on plan assets (0.6 ) — Net annual benefit cost $ 0.7 $ — _______________ (1) The discount rate used to calculate pension and other post-retirement obligations was based on a review of available yields on high-quality corporate bonds. In selecting a discount rate, we placed particular emphasis on a discount rate yield-curve provided by our third-party actuary which takes into consideration the projected cash flows that represent the expected timing and amount of our plans' benefit payments. |
Fair Value, Assets Measured on Recurring Basis | The following table presents our fair value hierarchy for our major categories of pension plan assets by asset class. See Note 6 for the definition of fair value and the descriptions of Level 1, 2 and 3 in the fair value hierarchy. In millions December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and short-term investments $ 0.4 $ 0.4 $ — $ — Equity securities Common stock — — — — Preferred stock — — — — Mutual funds and other investments 2.3 2.3 — — Fixed income investments Mutual funds 16.5 1.1 15.4 — Corporate debt instruments — — — — Government debt — — — — Total assets $ 19.2 $ 3.8 $ 15.4 $ — |
Business separation (Tables)
Business separation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Business separation | In connection with the Separation as further described in Note 1 and Note 2, we have incurred pre-tax separation costs as shown in the table below. Prior to the Separation, these costs were primarily related to third-party professional fees associated with separation activities and one-time costs of new hires specifically required to separate and stand up Ingevity. Post-Separation, these costs represent legal, information technology and other advisory fees to transition from a division of WestRock to a stand-alone public company. Year Ended December 31, In millions 2016 2015 2014 Separation costs $ 17.5 $ 17.2 $ 0.4 |
Restructuring and other (inco46
Restructuring and other (income) charges, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table shows a roll forward of restructuring reserves that will result in cash spending. Balance at Change in Cash Balance at In millions 12/31/2015 (1) Reserve (2) Payments Other (3) 12/31/2016 (1) Restructuring Reserves $ — 10.6 (8.3 ) (0.1 ) $ 2.2 _______________ (1) Included in "Accrued Expenses" on the Consolidated Balance Sheet. There was no restructuring reserve activity during the year ended December 31, 2014. (2) Includes severance and other employee-related costs, exited leases, contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table. (3) Primarily foreign currency translation adjustments. Detail on the restructuring charges and asset disposal activities is provided below. Year Ended December 31, In millions 2016 2015 2014 Restructuring and other (income) charges, net Gain on sale of assets and businesses $ — $ (11.5 ) $ (5.6 ) Severance and other employee-related costs (1) 6.3 — — Asset write-downs (2) 30.6 4.0 — Other (income) charges, net (3) 4.3 — — Total restructuring and other (income) charges, net $ 41.2 $ (7.5 ) $ (5.6 ) _______________ (1) Represents severance and employee benefit charges. (2) Primarily represents accelerated depreciation and impairment charges on long-lived assets, which were or are to be abandoned. To the extent incurred the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations due to facility shutdowns are also included within the asset write-downs. (3) Primarily represents costs associated with rental payments, contract terminations, and other miscellaneous exit costs. Other Income primarily represents favorable developments on previously recorded exit costs as recoveries associated with restructuring activities. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Domestic and Foreign Components of Income Taxes | Domestic and foreign components of income before income taxes are shown below: Year Ended December 31, In millions 2016 2015 2014 Domestic $ 118.3 $ 144.6 $ 201.4 Foreign (31.3 ) (8.1 ) 0.7 Total $ 87.0 $ 136.5 $ 202.1 | |
Schedule of Effective Income Tax Rate Reconciliation | The provision (benefit) for income taxes consisted of: Year Ended December 31, In millions 2016 2015 2014 Current Federal $ 37.4 $ 35.3 $ 58.7 State and local 5.0 5.0 7.3 Foreign 2.1 2.7 1.5 Total current $ 44.5 $ 43.0 $ 67.5 Deferred Federal $ (2.4 ) $ 7.4 $ 2.2 State and local (0.5 ) 1.7 — Foreign 1.0 0.1 (0.2 ) Total deferred (1.9 ) 9.2 2.0 Total $ 42.6 $ 52.2 $ 69.5 The following table summarizes the major differences between taxes computed at the U.S. federal statutory rate and the actual income tax provision attributable to operations: Year Ended December 31, In millions 2016 2015 2014 Federal statutory tax rate $ 30.5 $ 47.8 $ 70.7 State and local income taxes, net of federal benefit 2.8 4.9 4.9 Foreign income tax rate differential 0.8 (0.4 ) — Changes in valuation allowance 13.2 1.5 1.0 Domestic manufacturing deduction (4.0 ) (3.0 ) (5.7 ) Noncontrolling interest in consolidated partnership (3.1 ) (1.9 ) (1.4 ) Nondeductible separation costs 1.5 2.4 Nondeductible restructuring costs 2.2 — — Federal and state tax credits (0.6 ) (0.3 ) — Deferred rate change (0.6 ) — — Other (0.1 ) 1.2 — Income tax provision $ 42.6 $ 52.2 $ 69.5 Effective tax rate 49.0 % 38.2 % 34.4 % | |
Schedule of Deferred Tax Assets and Liabilities | Year Ended December 31, In millions 2016 2015 Deferred tax assets: Accrued restructuring 12.6 1.5 Employee benefits 12.3 3.4 Intangibles 5.8 2.9 Investment in partnership 1.4 0.8 Net operating losses 5.4 4.9 Start-up costs 1.0 0.2 Other 2.3 0.6 Deferred tax assets $ 40.8 $ 14.3 Valuation allowance (18.8 ) (6.6 ) Total net deferred tax assets $ 22.0 $ 7.7 Deferred tax liabilities: Fixed assets $ (86.9 ) $ (81.3 ) Inventory (1.0 ) (0.7 ) Other (0.5 ) — Total deferred tax liabilities $ (88.4 ) $ (82.0 ) Net deferred tax liability $ (66.4 ) $ (74.3 ) | |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Year Ended December 31, In millions 2016 2015 2014 Balance at beginning of year $ 0.7 $ 0.8 $ 0.9 Additions for tax positions related to current year — 0.1 — Additions for tax positions related to prior years 0.1 0.1 — Reductions for tax positions related to current year — — — Reductions for tax positions related to prior years (0.2 ) (0.2 ) (0.1 ) Reduction related to settlements — — — Reduction from lapse of statute of limitation — (0.1 ) — Balance at end of year $ 0.6 $ 0.7 $ 0.8 |
Commitment and contingencies (T
Commitment and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease | Minimum rental payments pursuant to agreements as of December 31, 2016 under operating leases that have non-cancelable lease terms in excess of 12 months and under capital leases are as follows: In millions Operating leases Capital leases 2017 $ 11.5 $ 6.0 2018 9.1 6.0 2019 7.3 6.0 2020 5.5 6.0 2021 3.1 6.0 Later years 4.5 120.0 Minimum lease payments $ 41.0 $ 150.0 Less: amount representing interest (70.0 ) Capital lease obligations 80.0 |
Schedule of Capital Lease | Minimum rental payments pursuant to agreements as of December 31, 2016 under operating leases that have non-cancelable lease terms in excess of 12 months and under capital leases are as follows: In millions Operating leases Capital leases 2017 $ 11.5 $ 6.0 2018 9.1 6.0 2019 7.3 6.0 2020 5.5 6.0 2021 3.1 6.0 Later years 4.5 120.0 Minimum lease payments $ 41.0 $ 150.0 Less: amount representing interest (70.0 ) Capital lease obligations 80.0 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Total assets December 31, In millions 2016 2015 2014 Performance Materials $ 359.5 $ 355.2 $ 300.7 Performance Chemicals 470.3 420.5 412.4 Total segment assets (2) 829.8 775.7 713.1 Corporate and other 3.0 3.0 4.2 Total assets $ 832.8 $ 778.7 $ 717.3 _______________ (1) Sales are assigned to geographic areas based on location to which product was shipped to a third party. (2) Segment assets exclude assets not specifically managed as part of one specific segment herein referred to as "Corporate and other." Year Ended December 31, In millions 2016 2015 2014 Net sales Performance Materials $ 301.0 $ 256.4 $ 249.4 Performance Chemicals 607.3 701.9 786.1 Total net sales (1) 908.3 958.3 1,035.5 Segment operating profit (2) Performance Materials 106.9 79.7 89.5 Performance Chemicals 56.7 86.6 123.8 Total segment operating profit (1) 163.6 166.3 213.3 Separation costs (3) (17.5 ) (17.2 ) (0.4 ) Restructuring and other income (charges) (4) (41.2 ) 7.5 5.6 Interest expense (19.3 ) (20.1 ) (16.4 ) Interest income 1.4 — — Provision for income taxes (42.6 ) (52.2 ) (69.5 ) Net income (loss) attributable to noncontrolling interests (9.2 ) (4.6 ) (3.6 ) Net income (loss) attributable to Ingevity stockholders $ 35.2 $ 79.7 $ 129.0 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. Refer to Note 3 for the impact of the correction to previously issued financial statements. (2) Segment operating profit is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses and other (income) expense, net). We have excluded the following items from segment operating profit: interest expense associated with corporate debt facilities, income taxes, gains (or losses) on divestitures of businesses, restructuring and other (income) charges and separation costs, and net income (loss) attributable to noncontrolling interests. Refer to Note 3 for the impact of the correction to previously issued financial statements. (3) See Note 15 for more information on separation costs. (4) Information about how restructuring and other charges (income) relate to our businesses at the segment level is discussed in Note 16. Net sales to external customers for each of our product line groups is presented below. Our Performance Materials segment has one product line group, and therefore net sales to external customers within that segment is included in the table above. Year Ended December 31, In millions 2016 2015 2014 Performance Chemicals Net sales Pavement Technologies product line $ 148.8 $ 147.5 $ 132.0 Oilfield Technologies product line 58.5 78.0 126.8 Industrial Specialties product line 400.0 476.4 527.3 Total Performance Chemicals Net sales (1) $ 607.3 $ 701.9 $ 786.1 Depreciation and amortization Capital expenditures Year Ended December 31, Year Ended December 31, In millions 2016 2015 2014 2016 2015 2014 Performance Materials $ 16.4 $ 11.1 $ 9.9 $ 39.6 $ 65.3 $ 66.4 Performance Chemicals 22.4 23.5 22.4 17.1 35.6 35.4 Total $ 38.8 $ 34.6 $ 32.3 $ 56.7 $ 100.9 $ 101.8 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Net sales (1) Year Ended December 31, In millions 2016 2015 2014 North America $ 597.8 $ 623.0 $ 690.0 Asia Pacific 138.8 149.3 150.6 Europe, Middle East and Africa 151.1 155.9 154.3 South America 20.6 30.1 40.6 Net sales $ 908.3 $ 958.3 $ 1,035.5 Property, plant and equipment, net December 31, In millions 2016 2015 2014 North America $ 349.1 $ 338.7 $ 295.4 Asia Pacific 72.7 76.9 93.8 Europe, Middle East and Africa 0.7 0.8 0.8 South America 0.3 21.1 20.1 Property, plant and equipment, net $ 422.8 $ 437.5 $ 410.1 |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended December 31, In millions (except share and per share data) 2016 2015 2014 Net income (loss) attributable to Ingevity stockholders $ 35.2 $ 79.7 $ 129.0 Basic and Diluted earnings (loss) per share (1) Basic earnings (loss) per share $ 0.83 $ 1.89 $ 3.06 Diluted earnings (loss) per share 0.83 1.89 3.06 Shares (2) Weighted average number of shares of common stock outstanding - Basic 42,108 42,102 42,102 Weighted average additional shares assuming conversion of potential common shares 163 — — Shares - diluted basis 42,271 42,102 42,102 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the Distribution Date. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 is calculated using the number of common shares distributed on May 15, 2016. (2) Shares are presented in thousands. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following average number of potential common shares were antidilutive and, therefore, were not included in the diluted earnings per share calculation: Year Ended December 31, In thousands 2016 2015 2014 Average number of potential common shares - antidilutive 4 — — |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid and Other Current Assets | Prepaid and other current assets: December 31, In millions 2016 2015 Income and value added tax receivables $ 10.7 $ 9.6 Prepaid freight and supply agreements 0.8 2.7 Non-trade receivables 5.6 2.8 Advances to suppliers 0.8 1.1 Other 5.8 4.0 $ 23.7 $ 20.2 |
Other Noncurrent Assets | Other assets: December 31, In millions 2016 2015 Deferred compensation arrangements $ — $ 2.6 Capitalized software, net 5.2 5.0 Prepaid supply agreements 2.4 2.7 Land-use rights 5.6 5.7 Other 8.8 7.0 $ 22.0 $ 23.0 |
Accrued Liabilities | Accrued expenses: December 31, In millions 2016 2015 Accrued interest $ 3.2 $ 2.8 Accrued taxes 1.5 1.5 Accrued freight 1.5 2.2 Accrued rebates 2.2 2.5 Restructuring reserves 2.2 — Separation-related Reimbursement Awards 2.1 — Other 6.6 5.8 $ 19.3 $ 14.8 |
Other Noncurrent Liabilities | Other liabilities: December 31, In millions 2016 2015 Deferred compensation arrangements $ 0.7 $ 2.5 Pension and other post-retirement benefit obligations 5.9 — Other 3.6 4.7 $ 10.2 $ 7.2 |
Quarterly Financial Informati52
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 2016 2015 (2) (in Millions, Except Share and Per Share Data) 1Q (2) 2Q (2) 3Q (2) 4Q 1Q 2Q 3Q 4Q Net sales $ 199.6 $ 245.4 $ 252.4 $ 210.9 $ 234.5 $ 259.9 $ 254.8 $ 209.1 Gross profit 63.0 74.7 80.4 56.3 67.1 82.1 76.9 49.3 Income (loss) before income taxes 22.9 38.5 10.5 15.1 34.8 42.2 40.9 18.6 Net income (loss) 11.7 25.9 (4.9 ) 11.7 23.2 26.2 25.0 9.9 Less: Net income (loss) attributable to noncontrolling interests 2.5 1.8 2.3 2.6 1.2 0.9 1.2 1.3 Net income (loss) attributable to Ingevity stockholders $ 9.2 $ 24.1 $ (7.2 ) $ 9.1 $ 22.0 $ 25.3 $ 23.8 $ 8.6 Basic earnings (loss) per common share attributable to Ingevity stockholders $ 0.22 $ 0.57 $ (0.17 ) $ 0.22 $ 0.52 $ 0.60 $ 0.57 $ 0.20 Diluted earnings (loss) per common share attributable to Ingevity stockholders (1) 0.22 0.57 (0.17 ) 0.22 0.52 0.60 0.57 0.20 Weighted average shares outstanding Basic 42.1 42.1 42.1 42.1 42.1 42.1 42.1 42.1 Diluted 42.1 42.1 42.1 42.3 42.1 42.1 42.1 42.1 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common shareholders divided by diluted weighted-average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. Basic and diluted earnings (loss) per share for periods subsequent to the Separation are calculated using the weighted average number of common shares outstanding for the period beginning after the Distribution Date. Basic and diluted earnings (loss) per share for periods prior to the Separation are calculated using the number of common shares distributed on May 15, 2016. The sum of quarterly earnings per common share may differ from the full-year amount. (2) Certain prior period amounts have been revised to reflect the correction of certain immaterial errors. See below for the impact of these adjustments on quarterly basis and Note 3 for the annual impact of the adjustments. Correction to previously issued quarterly financial statements During the quarters and year ended December 31, 2016, we identified various errors related to our previously issued annual and interim Consolidated Financial Statements. Although Ingevity’s management has determined that the impact of such errors is immaterial to all previously issued financial statements, we revised the previously issued financial statements for the periods ended December 31, 2015 and 2014 in connection with this 2016 Form 10-K and those corrections will also be reflected in the Company’s future Form 10-Q filings for more information see Note 3. Q1 2016 Q2 2016 Q3 2016 (in millions, except Per Share Data) Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Net sales $ 203.9 $ (4.3 ) $ 199.6 $ 248.7 $ (3.3 ) $ 245.4 $ 252.0 $ 0.4 $ 252.4 Gross profit 60.0 3.0 63.0 76.1 (1.4 ) 74.7 81.0 (0.6 ) 80.4 Income (loss) before income taxes 19.8 3.1 22.9 38.4 0.1 38.5 10.5 — 10.5 Net income (loss) 9.8 1.9 11.7 25.8 0.1 25.9 (4.8 ) (0.1 ) (4.9 ) Less: Net income (loss) attributable to noncontrolling interests 1.6 0.9 2.5 2.1 (0.3 ) 1.8 2.3 — 2.3 Net income (loss) attributable to Ingevity stockholders $ 8.2 $ 1.0 $ 9.2 $ 23.7 $ 0.4 $ 24.1 $ (7.1 ) $ (0.1 ) $ (7.2 ) Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (1) $ 0.19 $ 0.03 $ 0.22 $ 0.56 $ 0.01 $ 0.57 $ (0.17 ) $ — $ (0.17 ) _______________ (1) The sum of quarterly earnings per common share may differ from the full-year amount. Q1 2015 Q2 2015 Q3 2015 Q4 2015 (in millions, except Per Share Data) Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Reported Adj. Revised Net sales $ 239.2 $ (4.7 ) $ 234.5 $ 262.2 $ (2.3 ) $ 259.9 $ 256.5 $ (1.7 ) $ 254.8 $ 209.8 $ (0.7 ) $ 209.1 Gross profit 69.1 (2.0 ) 67.1 85.1 (3.0 ) 82.1 77.6 (0.7 ) 76.9 48.9 0.4 49.3 Income (loss) before income taxes 36.4 (1.6 ) 34.8 43.6 (1.4 ) 42.2 40.5 0.4 40.9 17.6 1.0 18.6 Net income (loss) 24.2 (1.0 ) 23.2 27.1 (0.9 ) 26.2 24.7 0.3 25.0 9.3 0.6 9.9 Less: Net income (loss) attributable to noncontrolling interests 1.2 — 1.2 1.2 (0.3 ) 0.9 1.3 (0.1 ) 1.2 1.3 — 1.3 Net income (loss) attributable to Ingevity stockholders $ 23.0 $ (1.0 ) $ 22.0 $ 25.9 $ (0.6 ) $ 25.3 $ 23.4 $ 0.4 $ 23.8 $ 8.0 $ 0.6 $ 8.6 Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (1) $ 0.55 $ (0.03 ) $ 0.52 $ 0.62 $ (0.02 ) $ 0.60 $ 0.56 $ 0.01 $ 0.57 $ 0.19 $ 0.01 $ 0.20 _______________ (1) The sum of quarterly earnings per common share may differ from the full-year amount. |
Background (Narratives) (Detail
Background (Narratives) (Details) unit in Millions | 12 Months Ended | ||
Dec. 31, 2016unitsegment$ / shares | May 15, 2016$ / shares | Dec. 31, 2015$ / shares | |
Business Combination, Consideration Transferred | |||
Activated carbon units, count | unit | 750 | ||
Number of reportable segments | segment | 2 | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | $ 0 |
Share conversion rate (per share) | 0.167 | ||
WestRock, Rock-Tenn and MWV | |||
Business Combination, Consideration Transferred | |||
Common stock, par value (usd per share) | $ 0.01 |
Basis of Consolidation and Pr54
Basis of Consolidation and Presentation Basis of Consolidation and Presentation (Narratives) (Details) | Dec. 31, 2016 | May 15, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Purification Cellutions LLC | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest ownership percentage | 30.00% | 30.00% | 30.00% | 30.00% |
Correction to previously issu55
Correction to previously issued financial statements - Adjustments to Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Operations | |||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 |
Cost of sales | 633.9 | 682.9 | 717 | ||||||||
Gross profit | 56.3 | 80.4 | 74.7 | 63 | 49.3 | 76.9 | 82.1 | 67.1 | 274.4 | 275.4 | 318.5 |
Selling, general and administrative expenses | 114 | 110.1 | 107.7 | ||||||||
Income before income taxes | 15.1 | 10.5 | 38.5 | 22.9 | 18.6 | 40.9 | 42.2 | 34.8 | 87 | 136.5 | 202.1 |
Provision for income taxes | 42.6 | 52.2 | 69.5 | ||||||||
Net income (loss) | 11.7 | (4.9) | 25.9 | 11.7 | 9.9 | 25 | 26.2 | 23.2 | 44.4 | 84.3 | 132.6 |
Less: Net income (loss) attributable to noncontrolling interests | 2.6 | 2.3 | 1.8 | 2.5 | 1.3 | 1.2 | 0.9 | 1.2 | 9.2 | 4.6 | 3.6 |
Net income (loss) attributable to Ingevity stockholders | $ 9.1 | (7.2) | 24.1 | 9.2 | 8.6 | 23.8 | 25.3 | 22 | $ 35.2 | 79.7 | 129 |
As reported | |||||||||||
Statement of Operations | |||||||||||
Net sales | 252 | 248.7 | 203.9 | 209.8 | 256.5 | 262.2 | 239.2 | 967.7 | 1,041 | ||
Cost of sales | 687 | 718.3 | |||||||||
Gross profit | 81 | 76.1 | 60 | 48.9 | 77.6 | 85.1 | 69.1 | 280.7 | 322.7 | ||
Selling, general and administrative expenses | 113.8 | 111 | |||||||||
Income before income taxes | 10.5 | 38.4 | 19.8 | 17.6 | 40.5 | 43.6 | 36.4 | 138.1 | 203 | ||
Provision for income taxes | 52.8 | 69.8 | |||||||||
Net income (loss) | (4.8) | 25.8 | 9.8 | 9.3 | 24.7 | 27.1 | 24.2 | 85.3 | 133.2 | ||
Less: Net income (loss) attributable to noncontrolling interests | 2.3 | 2.1 | 1.6 | 1.3 | 1.3 | 1.2 | 1.2 | 5 | 3.8 | ||
Net income (loss) attributable to Ingevity stockholders | (7.1) | 23.7 | 8.2 | 8 | 23.4 | 25.9 | 23 | 80.3 | 129.4 | ||
Increase/(decrease) | |||||||||||
Statement of Operations | |||||||||||
Net sales | 0.4 | (3.3) | (4.3) | (0.7) | (1.7) | (2.3) | (4.7) | (9.4) | (5.5) | ||
Cost of sales | (4.1) | (1.3) | |||||||||
Gross profit | (0.6) | (1.4) | 3 | 0.4 | (0.7) | (3) | (2) | (5.3) | (4.2) | ||
Selling, general and administrative expenses | (3.7) | (3.3) | |||||||||
Income before income taxes | 0 | 0.1 | 3.1 | 1 | 0.4 | (1.4) | (1.6) | (1.6) | (0.9) | ||
Provision for income taxes | (0.6) | (0.3) | |||||||||
Net income (loss) | (0.1) | 0.1 | 1.9 | 0.6 | 0.3 | (0.9) | (1) | (1) | (0.6) | ||
Less: Net income (loss) attributable to noncontrolling interests | 0 | (0.3) | 0.9 | 0 | (0.1) | (0.3) | 0 | (0.4) | (0.2) | ||
Net income (loss) attributable to Ingevity stockholders | $ (0.1) | $ 0.4 | 1 | $ 0.6 | $ 0.4 | $ (0.6) | $ (1) | $ (0.6) | $ (0.4) | ||
Related party revenue | $ (3.3) |
Correction to previously issu56
Correction to previously issued financial statements - Segment Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 |
Segment operating profits | 163.6 | 166.3 | 213.3 | ||||||||
Performance Materials | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | 301 | 256.4 | 249.4 | ||||||||
Segment operating profits | 106.9 | 79.7 | 89.5 | ||||||||
Performance Chemicals | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | 607.3 | 701.9 | 786.1 | ||||||||
Segment operating profits | $ 56.7 | 86.6 | 123.8 | ||||||||
As reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | 252 | 248.7 | 203.9 | 209.8 | 256.5 | 262.2 | 239.2 | 967.7 | 1,041 | ||
Segment operating profits | 167.9 | 214.2 | |||||||||
As reported | Performance Materials | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | 256.6 | 249.4 | |||||||||
Segment operating profits | 81.1 | 90 | |||||||||
As reported | Performance Chemicals | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | 711.1 | 791.6 | |||||||||
Segment operating profits | 86.8 | 124.2 | |||||||||
Increase/(decrease) | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | $ 0.4 | $ (3.3) | $ (4.3) | $ (0.7) | $ (1.7) | $ (2.3) | $ (4.7) | (9.4) | (5.5) | ||
Segment operating profits | (1.6) | (0.9) | |||||||||
Increase/(decrease) | Performance Materials | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | (0.2) | 0 | |||||||||
Segment operating profits | (1.4) | (0.5) | |||||||||
Increase/(decrease) | Performance Chemicals | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | (9.2) | (5.5) | |||||||||
Segment operating profits | $ (0.2) | $ (0.4) |
Correction to previously issu57
Correction to previously issued financial statements Correction to previously issued financial statements - Adjustments to Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Accounts receivable, net | $ 89.8 | $ 95.2 | ||
Inventories, net | 151.2 | 148.9 | ||
Current assets | 295.2 | 296.3 | ||
Liabilities and equity | ||||
Accrued expenses | 19.3 | 14.8 | ||
Current liabilities | 136.9 | 99.8 | ||
Deferred income taxes | 69.8 | 74.3 | ||
Total Liabilities | 698.2 | 261.3 | ||
Net parent investment | 0 | 530.1 | ||
Noncontrolling interests | 7.6 | 3.8 | ||
Total Equity | 134.6 | 517.4 | $ 416.6 | $ 326.3 |
Total Liabilities and Equity | $ 832.8 | 778.7 | ||
As reported | ||||
Assets | ||||
Accounts receivable, net | 96.2 | |||
Inventories, net | 151 | |||
Current assets | 299.4 | |||
Liabilities and equity | ||||
Accrued expenses | 12.2 | |||
Current liabilities | 97.2 | |||
Deferred income taxes | 75.7 | |||
Total Liabilities | 260.1 | |||
Net parent investment | 533.5 | |||
Noncontrolling interests | 4.7 | |||
Total Equity | 521.7 | |||
Total Liabilities and Equity | 781.8 | |||
Increase/(decrease) | ||||
Assets | ||||
Accounts receivable, net | (1) | |||
Inventories, net | (2.1) | |||
Current assets | (3.1) | |||
Liabilities and equity | ||||
Accrued expenses | 2.6 | |||
Current liabilities | 2.6 | |||
Deferred income taxes | (1.4) | |||
Total Liabilities | 1.2 | |||
Net parent investment | (3.4) | $ (2.5) | ||
Noncontrolling interests | (0.9) | |||
Total Equity | (4.3) | |||
Total Liabilities and Equity | $ (3.1) |
Correction to previously issu58
Correction to previously issued financial statements - Adjustments to Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows | |||||||||||
Net income (loss) | $ 11.7 | $ (4.9) | $ 25.9 | $ 11.7 | $ 9.9 | $ 25 | $ 26.2 | $ 23.2 | $ 44.4 | $ 84.3 | $ 132.6 |
Deferred income taxes | (7.9) | 8.3 | 2.2 | ||||||||
Accounts receivable, net | 5.7 | 8.5 | (4.8) | ||||||||
Inventories, net | (2.2) | (24.1) | (27.6) | ||||||||
Prepaid and other current assets | (3.9) | (6.7) | (5.3) | ||||||||
Accrued expenses | (1.9) | 1 | 6.4 | ||||||||
Changes in all other operating assets and liabilities, net | (1.9) | (0.8) | 0.6 | ||||||||
Net cash provided by (used in) operating activities | 127.9 | 72.2 | 138.5 | ||||||||
Proceeds from divestiture | 0 | 11 | 6 | ||||||||
Net cash provided by (used in) investing activities | (126.4) | (89.3) | (96.8) | ||||||||
Transactions with WestRock, net | 51.9 | 29.1 | (31.4) | ||||||||
Net cash provided by (used in) financing activities | $ (3.4) | 27 | (31.7) | ||||||||
As reported | |||||||||||
Statement of Cash Flows | |||||||||||
Net income (loss) | (4.8) | 25.8 | 9.8 | 9.3 | 24.7 | 27.1 | 24.2 | 85.3 | 133.2 | ||
Deferred income taxes | 9.3 | 2.4 | |||||||||
Accounts receivable, net | 8.9 | (4.2) | |||||||||
Inventories, net | (25.4) | (28.7) | |||||||||
Prepaid and other current assets | (8.1) | 1.6 | |||||||||
Accrued expenses | 0.3 | 5.9 | |||||||||
Changes in all other operating assets and liabilities, net | 0.5 | (0.3) | |||||||||
Net cash provided by (used in) operating activities | 72.5 | 144.3 | |||||||||
Proceeds from divestiture | 11 | 0 | |||||||||
Net cash provided by (used in) investing activities | (89.3) | (102.8) | |||||||||
Transactions with WestRock, net | 28.8 | (31.2) | |||||||||
Net cash provided by (used in) financing activities | 26.7 | (31.4) | |||||||||
Increase/(decrease) | |||||||||||
Statement of Cash Flows | |||||||||||
Net income (loss) | $ (0.1) | $ 0.1 | $ 1.9 | $ 0.6 | $ 0.3 | $ (0.9) | $ (1) | (1) | (0.6) | ||
Deferred income taxes | (1) | (0.2) | |||||||||
Accounts receivable, net | (0.4) | (0.6) | |||||||||
Inventories, net | 1.3 | 1.1 | |||||||||
Prepaid and other current assets | 1.4 | (6.9) | |||||||||
Accrued expenses | 0.7 | 0.5 | |||||||||
Changes in all other operating assets and liabilities, net | (1.3) | 0.9 | |||||||||
Net cash provided by (used in) operating activities | (0.3) | (5.8) | |||||||||
Proceeds from divestiture | 0 | 6 | |||||||||
Net cash provided by (used in) investing activities | 0 | 6 | |||||||||
Transactions with WestRock, net | 0.3 | (0.2) | |||||||||
Net cash provided by (used in) financing activities | $ 0.3 | $ (0.2) |
Summary of significant accoun59
Summary of significant accounting policies - Transactions with Affiliate (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 15, 2016 | |
Purification Cellutions LLC | ||||
Related Party Transaction [Line Items] | ||||
Noncontrolling interest ownership percentage | 30.00% | 30.00% | 30.00% | 30.00% |
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Costs and Expenses | $ 19.4 | $ 41.1 | $ 38 | |
Affiliated Entity | Interest expense, net | ||||
Related Party Transaction [Line Items] | ||||
Costs and Expenses | $ 7.2 | $ 13.5 | $ 9.9 |
Summary of significant accoun60
Summary of significant accounting policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts receivable | $ 0.3 | $ 0.1 |
Summary of significant accoun61
Summary of significant accounting policies - Concentration Risk (Details) - Customer Concentration Risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk exposure | $ 15.5 | $ 23.6 | |
Sales | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 11.00% | 11.00% |
Summary of significant accoun62
Summary of significant accounting policies - Inventory (Details) | Dec. 31, 2016 |
Accounting Policies [Abstract] | |
Percentage of FIFO inventory | 34.00% |
Percentage of weighted average cost inventory | 5.00% |
Percentage of LIFO inventory | 61.00% |
Summary of significant accoun63
Summary of significant accounting policies - Useful Life of PPE and Intangible Assets (Narratives) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Property, Plant and Equipment | |
Finite lived intangible assets | 5 years |
Maximum | |
Property, Plant and Equipment | |
Finite lived intangible assets | 20 years |
Buildings and leasehold equipment | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 20 years |
Buildings and leasehold equipment | Maximum | |
Property, Plant and Equipment | |
PPE useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment | |
PPE useful life | 30 years |
Capitalized software | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 1 year |
Capitalized software | Maximum | |
Property, Plant and Equipment | |
PPE useful life | 7 years |
Summary of significant accoun64
Summary of significant accounting policies - Types of Assets (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Production Vessels and Kilns, Storage Tanks, Piping | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 59.00% |
PPE useful life | 20 years |
Control systems, Instrumentation, Metering Equipment | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 12.00% |
PPE useful life | 15 years |
Blending Equipment, Storage Tanks, Piping, Shipping Equipment and Platforms, Safety Equipment | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 8.00% |
Blending Equipment, Storage Tanks, Piping, Shipping Equipment and Platforms, Safety Equipment | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 25 years |
Blending Equipment, Storage Tanks, Piping, Shipping Equipment and Platforms, Safety Equipment | Maximum | |
Property, Plant and Equipment | |
PPE useful life | 30 years |
Production Control System Equipment and Hardware, Laboratory Testing Equipment | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 18.00% |
Production Control System Equipment and Hardware, Laboratory Testing Equipment | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 5 years |
Production Control System Equipment and Hardware, Laboratory Testing Equipment | Maximum | |
Property, Plant and Equipment | |
PPE useful life | 10 years |
Machinery & equipment support structures and foundations | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 3.00% |
PPE useful life | 40 years |
Summary of significant accoun65
Summary of significant accounting policies - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||
Research and development expense | $ 7.6 | $ 6.9 | $ 7.8 |
Fair value measurements (Narrat
Fair value measurements (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | May 13, 2016 | Dec. 31, 2015 | |
Financial Liabilities | |||
Assets fair value | $ 0 | ||
Liabilities fair value | $ 0 | ||
Significant transfers | 0 | ||
Stock award expense | 1,600,000 | ||
Capital lease obligations | $ 80,000,000 | ||
Restricted investment | 69,700,000 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Financial Liabilities | |||
Restricted investment | 69,700,000 | ||
Restricted investments, fair value | 67,100,000 | ||
Reported Value | |||
Financial Liabilities | |||
Capital lease obligations | 80,000,000 | ||
Debt fair value | 401,300,000 | ||
Estimate of Fair Value | |||
Financial Liabilities | |||
Capital lease obligations | $ 91,600,000 |
Fair value measurements (Detail
Fair value measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities: | ||
Deferred compensation arrangement | $ 0.7 | |
Assets: | ||
Cash equivalents | 0.4 | $ 10 |
Separation-related Reimbursement Awards | ||
Liabilities: | ||
Deferred compensation arrangement | 2.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Liabilities: | ||
Deferred compensation arrangement | 0.7 | |
Assets: | ||
Cash equivalents | 0.4 | $ 10 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Separation-related Reimbursement Awards | ||
Liabilities: | ||
Deferred compensation arrangement | $ 2.1 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net | ||
Raw materials | $ 50.8 | $ 41 |
Production materials, stores and supplies | 12 | 11.3 |
Finished and in-process goods | 109.8 | 116.5 |
Subtotal | 172.6 | 168.8 |
Less: excess of cost over LIFO cost | (21.4) | (19.9) |
Inventories, net | $ 151.2 | $ 148.9 |
Percentage of LIFO inventory | 72.00% | 76.00% |
Property, plant and equipment69
Property, plant and equipment, net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment | |||
Total cost | $ 919.4 | $ 882.5 | |
Less: accumulated depreciation | (496.6) | (445) | |
Property, plant and equipment, net | 422.8 | 437.5 | $ 410.1 |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Total cost | 779 | 658 | |
Buildings and leasehold equipment | |||
Property, Plant and Equipment | |||
Total cost | 96.2 | 64.4 | |
Land and land improvements | |||
Property, Plant and Equipment | |||
Total cost | 17.9 | 17.6 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Total cost | $ 26.3 | $ 142.5 |
Property, plant and equipment70
Property, plant and equipment, net (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment | |||
Property, plant and equipment, net | $ 422.8 | $ 437.5 | $ 410.1 |
Accumulated depreciation | 496.6 | 445 | |
Depreciation | 33.2 | 28 | $ 25.8 |
Wickliffe, Kentucky Manufacturing Facility | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, net | 9.8 | 13.1 | |
Accumulated depreciation | 74.2 | 71.1 | |
Wickliffe, Kentucky Manufacturing Facility | Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, net | 2.7 | 2.8 | |
Accumulated depreciation | 3.5 | 3.4 | |
DeRidder, Louisiana Manufacturing Facility | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, net | 17.8 | 19.5 | |
Accumulated depreciation | $ 15.5 | $ 13.8 |
Goodwill and other intangible71
Goodwill and other intangible assets, net (Narratives) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, impairment loss | $ 0 |
Goodwill and other intangible72
Goodwill and other intangible assets, net - Carrying Amount (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | ||
Goodwill, beginning balance | $ 11.9 | $ 13 |
Foreign currency translation | 0.5 | (1.1) |
Goodwill, ending balance | 12.4 | 11.9 |
Performance Chemicals | ||
Goodwill | ||
Goodwill, beginning balance | 7.6 | 8.7 |
Foreign currency translation | 0.5 | (1.1) |
Goodwill, ending balance | 8.1 | 7.6 |
Performance Materials | ||
Goodwill | ||
Goodwill, beginning balance | 4.3 | 4.3 |
Foreign currency translation | 0 | 0 |
Goodwill, ending balance | $ 4.3 | $ 4.3 |
Goodwill and other intangible73
Goodwill and other intangible assets, net - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net | ||
Net | $ 7.3 | $ 10 |
Performance Chemicals | ||
Finite-Lived Intangible Assets, Net | ||
Gross carrying amount | 42.1 | 42.5 |
Accumulated amortization | 34.8 | 32.5 |
Net | 7.3 | 10 |
Brands | Performance Chemicals | ||
Finite-Lived Intangible Assets, Net | ||
Gross carrying amount | 13.9 | 13.7 |
Accumulated amortization | 11.3 | 10.6 |
Net | 2.6 | 3.1 |
Customer contracts and relationships | Performance Chemicals | ||
Finite-Lived Intangible Assets, Net | ||
Gross carrying amount | 28.2 | 28.2 |
Accumulated amortization | 23.5 | 21.4 |
Net | 4.7 | 6.8 |
Other | Performance Chemicals | ||
Finite-Lived Intangible Assets, Net | ||
Gross carrying amount | 0 | 0.6 |
Accumulated amortization | 0 | 0.5 |
Net | $ 0 | $ 0.1 |
Goodwill and other intangible74
Goodwill and other intangible assets, net - Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 3.5 | $ 3.2 | $ 3.4 |
Goodwill and other intangible75
Goodwill and other intangible assets, net - Maturity (Details) $ in Millions | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2,017 | $ 2.5 |
2,018 | 1.8 |
2,019 | 1.6 |
2,020 | 0.5 |
2,021 | $ 0.5 |
Debt including capital lease 76
Debt including capital lease obligations (Narratives) (Details) | May 13, 2016USD ($) | May 09, 2016USD ($) | Mar. 07, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 07, 2016EUR (€) |
Line of Credit Facility | |||||||
Proceeds from lines of credit | $ 111,900,000 | $ 0 | $ 0 | ||||
Restricted cash and cash equivalents | $ 68,900,000 | ||||||
Capital lease obligations | 80,000,000 | ||||||
Deferred finance cost | 3,600,000 | $ 0 | $ 0 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||||||
Line of Credit Facility | |||||||
Restricted investments, fair value | 67,100,000 | ||||||
Affiliated Entity | |||||||
Line of Credit Facility | |||||||
Payments of distributions to affiliates | 448,500,000 | ||||||
Line of Credit | |||||||
Line of Credit Facility | |||||||
Letters of credit outstanding, amount | 3,700,000 | ||||||
Letter of credit remaining amount | $ 284,400,000 | ||||||
Line of Credit | Facilities | |||||||
Line of Credit Facility | |||||||
Deferred finance cost | $ 3,600,000 | ||||||
Line of Credit | Facilities | Minimum | |||||||
Line of Credit Facility | |||||||
Unused capacity fee (percentage) | 0.15% | ||||||
Line of Credit | Facilities | Maximum | |||||||
Line of Credit Facility | |||||||
Unused capacity fee (percentage) | 0.30% | ||||||
Line of Credit | Revolving Credit Facility | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | 400,000,000 | ||||||
Proceeds from lines of credit | $ 200,000,000 | ||||||
Line of Credit | Sub-facility | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | € | € 100,000,000 | ||||||
Line of Credit | Sub limit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | 75,000,000 | ||||||
Line of Credit | Swing line | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | 40,000,000 | ||||||
Senior Notes | Facilities | |||||||
Line of Credit Facility | |||||||
Debt instrument, face amount | $ 300,000,000 | ||||||
Potential leverage ratio | 4.25 | ||||||
Senior Notes | Facilities | Minimum | |||||||
Line of Credit Facility | |||||||
Leverage ratio | 3 | ||||||
Senior Notes | Facilities | Minimum | LIBOR | |||||||
Line of Credit Facility | |||||||
Debt instrument, basis spread on variable rate | 1.25% | ||||||
Senior Notes | Facilities | Minimum | Base Rate | |||||||
Line of Credit Facility | |||||||
Debt instrument, basis spread on variable rate | 0.25% | ||||||
Senior Notes | Facilities | Maximum | |||||||
Line of Credit Facility | |||||||
Leverage ratio | 3.75 | ||||||
Senior Notes | Facilities | Maximum | LIBOR | |||||||
Line of Credit Facility | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Senior Notes | Facilities | Maximum | Base Rate | |||||||
Line of Credit Facility | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
Senior Notes | Facilities | Year 1 | |||||||
Line of Credit Facility | |||||||
Term facility amortization rate | 0.00% | ||||||
Senior Notes | Facilities | Years 2-3 | |||||||
Line of Credit Facility | |||||||
Term facility amortization rate | 5.00% | ||||||
Senior Notes | Facilities | Years 4-5 | |||||||
Line of Credit Facility | |||||||
Term facility amortization rate | 10.00% | ||||||
Senior Notes | Term Loan Facility | |||||||
Line of Credit Facility | |||||||
Proceeds from issuance of senior long-term debt | $ 300,000,000 |
Debt including capital lease 77
Debt including capital lease obligations (Details 1) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Notes payable | $ 0 | $ 9.4 |
Current maturities of long-term debt | 7.5 | 0 |
Notes payable and current maturities of long-term debt | $ 7.5 | $ 9.4 |
Debt including capital lease 78
Debt including capital lease obligations (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Line of Credit Facility | ||
Long-term Debt, Gross | $ 491.9 | $ 80 |
Less: debt issuance costs | (3.1) | 0 |
Total debt including capital lease obligations, net of debt issuance costs | 488.8 | 80 |
Less: debt maturing within one year | 7.5 | 0 |
Long-term debt including capital lease obligations | $ 481.3 | 80 |
Revolving Credit Facility | ||
Line of Credit Facility | ||
Interest Rate | 2.20% | |
Long-term Debt, Gross | $ 111.9 | 0 |
Term Loan | ||
Line of Credit Facility | ||
Interest Rate | 2.19% | |
Long-term Debt, Gross | $ 300 | 0 |
Capital lease obligations | ||
Line of Credit Facility | ||
Interest Rate | 7.67% | |
Long-term Debt, Gross | $ 80 | $ 80 |
Stock-based compensation (Narra
Stock-based compensation (Narratives) (Details) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock based compensation | $ 4.7 | $ 0 | $ 0 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period on stock options | 3 years | |||
Unrecognized stock based compensation | $ 1.4 | $ 1.4 | ||
Unrecognized stock based compensation expense, recognition period (years) | 2 years 2 months 12 days | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Unrecognized stock based compensation | $ 8.2 | $ 8.2 | ||
Unrecognized stock based compensation expense, recognition period (years) | 1 year 7 months 6 days | |||
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period on stock options | 1 year | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period on stock options | 3 years | |||
WestRock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock based compensation | $ 0.5 | $ 2.3 | $ 1.4 | |
2016 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock based compensation | $ 4.7 |
Stock-based compensation - Allo
Stock-based compensation - Allocated Share-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Stock based compensation | $ 2.8 |
Stock bases compensation, tax | 1,900,000 |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Stock based compensation | 0.4 |
Stock bases compensation, tax | 300,000 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |
Stock based compensation | 2.4 |
Stock bases compensation, tax | $ 1,600,000 |
Stock-based compensation - Assu
Stock-based compensation - Assumptions (Details) | 12 Months Ended |
Dec. 31, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |
Risk-free interest rate | 1.60% |
Average life of options (years) | 6 years 6 months |
Volatility | 35.00% |
Dividend yield | 0.00% |
Fair value per stock option (per share) | $ 10.61 |
Stock-based compensation - Opti
Stock-based compensation - Options Activity (Details) $ / shares in Units, $ in Thousands | 8 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of shares (in thousands) | |
Outstanding beginning balance (shares) | 0 |
Granted (shares) | 208,000 |
Exercised (shares) | 0 |
Forfeited (shares) | 0 |
Canceled (shares) | 0 |
Outstanding ending balance (shares) | 208,000 |
Stock options exercisable (shares) | 0 |
Weighted-average exercise price (per share) | |
Weighted average exercise price (per share) granted | $ / shares | $ 28.03 |
Weighted average exercise price (per share) outstanding | $ / shares | $ 28.03 |
Weighted-average remaining contractual term (years) | 9 years 4 months 24 days |
Aggregate intrinsic value | $ | $ 5,573 |
Stock-based compensation - RSU
Stock-based compensation - RSU Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 8 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | |
Nonvested beginning balance (shares) | 0 |
Granted (shares) | 317 |
Vested (shares) | (23) |
Forfeited (shares) | 0 |
Nonvested ending balance (shares) | 294 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value (per share) granted | $ / shares | $ 28.07 |
Weighted average grant date fair value ( per share) vested | $ / shares | 27.90 |
Weighted average grant date fair value (per share), ending balance | $ / shares | $ 28.08 |
Equity - Rollforward of Accumla
Equity - Rollforward of Accumlated Other Comprehensive Income (Loss) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance, value | $ 517,400,000 | $ 416,600,000 | $ 326,300,000 | |
Other comprehensive income (loss) before reclassifications | [1] | (2,500,000) | (9,200,000) | (7,800,000) |
Ending balance, shares, value | 134,600,000 | 517,400,000 | 416,600,000 | |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance, value | (16,500,000) | (7,300,000) | 600,000 | |
Other comprehensive income (loss) before reclassifications | (3,500,000) | (11,100,000) | (7,900,000) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,000,000 | 1,900,000 | ||
Ending balance, shares, value | (19,000,000) | (16,500,000) | (7,300,000) | |
Foreign currency adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance, value | (15,500,000) | (6,300,000) | 400,000 | |
Other comprehensive income (loss) before reclassifications | (2,900,000) | (9,200,000) | (6,700,000) | |
Ending balance, shares, value | (18,400,000) | (15,500,000) | (6,300,000) | |
Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance, value | (1,000,000) | (1,000,000) | 200,000 | |
Other comprehensive income (loss) before reclassifications | (1,900,000) | (1,200,000) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,000,000 | 1,900,000 | ||
Ending balance, shares, value | 0 | (1,000,000) | (1,000,000) | |
Pension and other postretirement benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance, value | 0 | 0 | 0 | |
Other comprehensive income (loss) before reclassifications | (600,000) | |||
Ending balance, shares, value | $ (600,000) | $ 0 | $ 0 | |
[1] | See Consolidated Statements of Comprehensive Income (Loss).The accompanying notes are an integral part of these financial statements. |
Equity - Narratives (Details)
Equity - Narratives (Details) | Feb. 20, 2017shares |
Subsequent Event | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Shares authorized for repurchase | 100,000,000 |
Transactions with WestRock an86
Transactions with WestRock and related-parties (Details) - Affiliated Entity - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Income (Loss) | |||
Costs and Expenses | $ 19.4 | $ 41.1 | $ 38 |
Cost of sales | |||
Operating Income (Loss) | |||
Costs and Expenses | 5.7 | 10.3 | 9.6 |
Selling, general and administrative expenses | |||
Operating Income (Loss) | |||
Costs and Expenses | 6.5 | 17.3 | 18.5 |
Interest expense, net | |||
Operating Income (Loss) | |||
Costs and Expenses | $ 7.2 | $ 13.5 | $ 9.9 |
Transactions with WestRock an87
Transactions with WestRock and related-parties (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 15, 2016 | |
Related Party Transaction | ||||
Accounts payable | $ 79.2 | $ 64.8 | ||
WestRock | ||||
Related Party Transaction | ||||
Accounts payable | $ 16.5 | |||
WestRock | Minimum | ||||
Related Party Transaction | ||||
Percentage of long-term supply of CTO | 45.00% | |||
WestRock | Maximum | ||||
Related Party Transaction | ||||
Percentage of long-term supply of CTO | 55.00% | |||
WestRock | Purchase of Raw Material | ||||
Related Party Transaction | ||||
Purchases from related party | $ 20.1 | $ 35.3 | $ 21.6 |
Pension and post-retirement b88
Pension and post-retirement benefits (Narratives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Pension costs | $ 3,200,000 | $ 7,800,000 | $ 5,200,000 |
Estimated net actuarial gain to be amortized | 0 | ||
Estimated prior service cost to be amortized | 100,000 | ||
Company contributions | 1,000,000 | ||
Impact of .5% increase on post retirement benefit obligation | (1,700,000) | ||
Impact of .5% increase on post retirement cost | (100,000) | ||
Impact of .5% decrease on post retirement benefit obligation | 1,900,000 | ||
Impact of .5% decrease on post retirement cost | 100,000 | ||
Impact of .5% increase on assumed long-term rate of return on plan assets | (100,000) | ||
Impact of .5% decrease on assumed long-term rate of return on plan assets | $ 100,000 | ||
Cash Balance | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer match percentage | 4.00% | ||
Final Average Pay Pension | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer match percentage | 10.00% |
Pension and post-retirement b89
Pension and post-retirement benefits - Components of Defined Benefit Pension and Post-retirement Benefit Plans (Details) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | May 15, 2016 | |
Change in plan assets | ||||
Company contributions | $ 1 | |||
Pensions | ||||
Defined Benefit Plan Disclosure | ||||
Discount rate - qualified benefit plans | 4.00% | 4.10% | ||
Discount rate - non-qualified benefit plans | 3.75% | 4.15% | ||
Change in projected benefit obligation | ||||
Beginning balance, value | $ 24.2 | |||
Service cost | 0.7 | 0.7 | ||
Interest cost | 0.6 | 0.6 | ||
Actuarial loss (gain) | (1.1) | |||
Beginning balance, value | 24.4 | 24.4 | ||
Change in plan assets | ||||
Beginning balance, value | 19.2 | 19.2 | ||
Actual return on plan assets | (1.6) | |||
Company contributions | 1 | |||
Pension and other postretirement benefit asset | 19.2 | 19.2 | $ 19.2 | $ 19.8 |
Net Funded Status of the Plan (Liability) | $ (5.2) | |||
Other Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Discount rate - qualified benefit plans | 0.00% | 0.00% | ||
Discount rate - non-qualified benefit plans | 3.75% | 3.95% | ||
Change in projected benefit obligation | ||||
Beginning balance, value | 0.8 | |||
Service cost | 0 | 0 | ||
Interest cost | 0 | 0 | ||
Actuarial loss (gain) | (0.1) | |||
Beginning balance, value | 0.7 | 0.7 | ||
Change in plan assets | ||||
Beginning balance, value | 0 | 0 | ||
Actual return on plan assets | 0 | |||
Company contributions | 0 | |||
Pension and other postretirement benefit asset | $ 0 | $ 0 | $ 0 | $ 0 |
Net Funded Status of the Plan (Liability) | $ (0.7) |
Pension and post-retirement b90
Pension and post-retirement benefits - Amounts Recognized in the Balance Sheet (Details) $ in Millions | Dec. 31, 2016USD ($) |
Pensions | |
Defined Benefit Plan Disclosure | |
Pension and other postretirement benefit asset | $ 0 |
Accrued pension and other postretirement benefit liability | (5.2) |
Net Funded Status of the Plan (Liability) | (5.2) |
Other Benefits | |
Defined Benefit Plan Disclosure | |
Pension and other postretirement benefit asset | 0 |
Accrued pension and other postretirement benefit liability | (0.7) |
Net Funded Status of the Plan (Liability) | $ (0.7) |
Pension and post-retirement b91
Pension and post-retirement benefits Pension and post-retirement benefits - Amounts Recognized in Other Comprehensive Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pensions | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |
Current year net actuarial loss (gain) | $ 0.9 |
Current year prior service cost (credit) | 0.1 |
Total recognized in other comprehensive (income) loss, before taxes | 1 |
Total recognized in other comprehensive (income) loss, after taxes | 0.5 |
Other Benefits | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | |
Current year net actuarial loss (gain) | (0.1) |
Current year prior service cost (credit) | 0 |
Total recognized in other comprehensive (income) loss, before taxes | (0.1) |
Total recognized in other comprehensive (income) loss, after taxes | $ 0.1 |
Pension and post-retirement b92
Pension and post-retirement benefits - Defined Benefit Obligation (Details) - Pensions - USD ($) $ in Millions | Dec. 31, 2016 | May 15, 2016 |
Defined Benefit Plan Disclosure | ||
Projected benefit obligations | $ 24.4 | $ 24.2 |
Accumulated benefit obligations | 24.4 | |
Pension and other postretirement benefit asset | $ 19.2 | $ 19.8 |
Pension and post-retirement b93
Pension and post-retirement benefits Pension and post-retirement benefits - Net Annual Benefit Costs Assumptions (Details) - USD ($) $ in Millions | 8 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | May 15, 2016 | |
Pensions | |||
Defined Benefit Plan Disclosure | |||
Discount rate - qualified benefit plans | 4.00% | 4.00% | 4.10% |
Discount rate - non-qualified benefit plans | 3.75% | 3.75% | 4.15% |
Expected return on plan assets (percentage) | 4.50% | ||
Components of net annual benefit cost: | |||
Service cost | $ 0.7 | $ 0.7 | |
Interest cost | $ 0.6 | 0.6 | |
Expected return on plan assets | (0.6) | ||
Net annual benefit cost | $ 0.7 | ||
Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Discount rate - qualified benefit plans | 0.00% | 0.00% | 0.00% |
Discount rate - non-qualified benefit plans | 3.75% | 3.75% | 3.95% |
Components of net annual benefit cost: | |||
Service cost | $ 0 | $ 0 | |
Interest cost | $ 0 | 0 | |
Expected return on plan assets | 0 | ||
Net annual benefit cost | $ 0 |
Pension and post-retirement b94
Pension and post-retirement benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2016USD ($) |
Pensions | |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Maturity | |
2,017 | $ 0.2 |
2,018 | 0.3 |
2,019 | 0.4 |
2,020 | 0.5 |
2,021 | 0.7 |
2022-2026 | 5.6 |
Other Benefits | |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Maturity | |
2,017 | 0 |
2,020 | 0 |
2,021 | 0 |
2022-2026 | $ 0.2 |
Pension and post-retirement b95
Pension and post-retirement benefits - Fair value of pension assets (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and short-term investments | $ 0.4 | $ 10 |
Total assets | 19.2 | |
Common stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Preferred stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Mutual funds and other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2.3 | |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 16.5 | |
Corporate debt instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and short-term investments | 0.4 | $ 10 |
Total assets | 3.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds and other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 2.3 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 1.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 15.4 | |
Significant Other Observable Inputs (Level 2) | Mutual funds and other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 15.4 | |
Significant Other Observable Inputs (Level 2) | Corporate debt instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 0 |
Business separation (Details)
Business separation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Separation costs | $ 17.5 | $ 17.2 | $ 0.4 |
Restructuring and other (inco97
Restructuring and other (income) charges, net (Narratives) (Details) - USD ($) | Oct. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Severance costs | $ 6,300,000 | $ 0 | $ 0 | ||
Other restructuring cost | 4,300,000 | 0 | 0 | ||
Gain on sale of assets and businesses | 0 | 11,500,000 | 5,600,000 | ||
Impairment of long-lived assets to be disposed of | 30,600,000 | $ 4,000,000 | 0 | ||
Change in restructuring cost | 0 | ||||
Subsidiaries | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 60.00% | ||||
Gain on sale of assets and businesses | $ 10,300,000 | ||||
Performance Chemicals | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Asset impairment | 300,000 | ||||
Performance Materials | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Gain on sale of assets and businesses | $ 1,200,000 | ||||
Employee related severance cost | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Severance costs | 2,700,000 | ||||
Employee related severance cost | Performance Chemicals | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Severance costs | 1,900,000 | ||||
Employee related severance cost | Performance Materials | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Severance costs | 800,000 | ||||
Palmeira, Santa Catarina, Brazil, Performance Chemicals | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Asset impairment | $ 30,200,000 | ||||
Severance costs | $ 1,800,000 | ||||
Other restructuring cost | 2,600,000 | ||||
Palmeira, Santa Catarina, Brazil, Performance Chemicals | Minimum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Remaining exit and disposal costs | $ 3,000,000 | 3,000,000 | |||
Palmeira, Santa Catarina, Brazil, Performance Chemicals | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Remaining exit and disposal costs | 4,000,000 | 4,000,000 | |||
Duque De Caxias, Rio de Janeiro, Brazil, Performance Chemicals | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Asset impairment | 100,000 | ||||
Severance costs | $ 1,800,000 | ||||
Other restructuring cost | $ 1,700,000 |
Restructuring and other (inco98
Restructuring and other (income) charges, net - Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Charges | |||
Gain on sale of assets and businesses | $ 0 | $ (11.5) | $ (5.6) |
Severance and other employee-related costs | 6.3 | 0 | 0 |
Asset write-down | 30.6 | 4 | 0 |
Other (income) charges, net | 4.3 | 0 | 0 |
Total restructuring and other (income) charges, net | $ 41.2 | $ (7.5) | $ (5.6) |
Restructuring and other (inco99
Restructuring and other (income) charges, net - Restructuring Reserve (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Reserve | |
Restructuring reserve, beginning balance | $ 0 |
Change in reserve | 10.6 |
Cash payments | (8.3) |
Other | (0.1) |
Restructuring reserve, ending balance | $ 2.2 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency | |||
Deferred tax expense recognized in OCI | $ (300,000) | $ 0 | |
Deferred tax benefit recognized in OCI | $ 600,000 | ||
Provision for income taxes | 42,600,000 | 52,200,000 | 69,500,000 |
Net operation loss, foreign | 17,300,000 | ||
Net operation loss foreign expected to expire | 5,800,000 | ||
Net operation loss foreign with no expiration date | $ 11,500,000 | ||
Undistributed earnings from foreign investments | 1 | ||
Unrecognized tax benefits, penalties and interest | $ 1,000,000 | $ 1,200,000 | $ 1,300,000 |
Expected reduction from lapse of statue of limitations in the next 12 months | 600,000 | ||
Palmeira, Santa Catarina, Brazil, Performance Chemicals | |||
Income Tax Contingency | |||
Provision for income taxes | $ 32,000,000 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency | |||||||||||
Income before income taxes | $ 15.1 | $ 10.5 | $ 38.5 | $ 22.9 | $ 18.6 | $ 40.9 | $ 42.2 | $ 34.8 | $ 87 | $ 136.5 | $ 202.1 |
Domestic | |||||||||||
Income Tax Contingency | |||||||||||
Income before income taxes | 118.3 | 144.6 | 201.4 | ||||||||
Foreign | |||||||||||
Income Tax Contingency | |||||||||||
Income before income taxes | $ (31.3) | $ (8.1) | $ 0.7 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 37.4 | $ 35.3 | $ 58.7 |
State and local | 5 | 5 | 7.3 |
Foreign | 2.1 | 2.7 | 1.5 |
Total current | 44.5 | 43 | 67.5 |
Deferred | |||
Federal | (2.4) | 7.4 | 2.2 |
State and local | (0.5) | 1.7 | 0 |
Foreign | 1 | 0.1 | (0.2) |
Total deferred | (1.9) | 9.2 | 2 |
Income tax provision | $ 42.6 | $ 52.2 | $ 69.5 |
Income Taxes - Effective Inccom
Income Taxes - Effective Inccome Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Federal statutory tax rate | $ 30.5 | $ 47.8 | $ 70.7 |
Federal statutory tax rate | 2.8 | 4.9 | 4.9 |
State and local income taxes, net of federal benefit | 0.8 | (0.4) | 0 |
Foreign income tax rate differential | 13.2 | 1.5 | 1 |
Domestic manufacturing deduction | (4) | (3) | (5.7) |
Noncontrolling interest in consolidated partnership | (3.1) | (1.9) | (1.4) |
Nondeductible separation costs | 1.5 | 2.4 | |
Other | 2.2 | 0 | 0 |
Federal and state tax credits | (0.6) | (0.3) | 0 |
Deferred rate change | (0.6) | 0 | 0 |
Other | (0.1) | 1.2 | 0 |
Income tax provision | $ 42.6 | $ 52.2 | $ 69.5 |
Effective tax rate | 49.00% | 38.20% | 34.40% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Accrued restructuring | $ 12.6 | $ 1.5 |
Employee benefits | 12.3 | 3.4 |
Intangibles | 5.8 | 2.9 |
Investment in partnership | 1.4 | 0.8 |
Net operating losses | 5.4 | 4.9 |
Start-up costs | 1 | 0.2 |
Other | 2.3 | 0.6 |
Deferred tax assets | 40.8 | 14.3 |
Valuation allowance | (18.8) | (6.6) |
Total net deferred tax assets | 22 | 7.7 |
Deferred tax liabilities: | ||
Fixed assets | (86.9) | (81.3) |
Other | (1) | (0.7) |
Other | (0.5) | 0 |
Total deferred tax liabilities | (88.4) | (82) |
Net deferred tax liability | $ (66.4) | $ (74.3) |
Income Taxes - Rollfoward of Un
Income Taxes - Rollfoward of Unrecognized Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | ||||
Balance at beginning of year | $ 0.7 | $ 0.8 | $ 0.9 | |
Additions for tax positions related to current year | 0 | 0.1 | 0 | |
Additions for tax positions related to prior years | 0.1 | 0.1 | 0 | |
Reductions for tax positions related to current year | 0 | 0 | 0 | |
Reductions for tax positions related to prior years | (0.2) | (0.2) | (0.1) | |
Reduction related to settlements | 0 | 0 | 0 | |
Reduction from lapse of statute of limitation | 0 | (0.1) | 0 | |
Balance at end of year | $ 0.7 | $ 0.8 | $ 0.9 | $ 0.6 |
Commitment and contingencies (N
Commitment and contingencies (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Capital lease due in 2017 | $ 6 | ||
Operating rental expense | 17.4 | $ 16.5 | $ 15.5 |
Capital lease obligations | 80 | $ 80 | |
DeRidder, Louisiana Manufacturing Facility | |||
Operating Leased Assets [Line Items] | |||
Capital lease due in 2017 | $ 28 | ||
Capital lease obligations | |||
Operating Leased Assets [Line Items] | |||
Capital lease obligation imputed interest rate | 7.67% | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease Term | 25 years |
Commitment and contingencies -
Commitment and contingencies - Future Minimum Payments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operating leases | ||
2,017 | $ 11.5 | |
2,018 | 9.1 | |
2,019 | 7.3 | |
2,020 | 5.5 | |
2,021 | 3.1 | |
Later years | 4.5 | |
Minimum lease payments | 41 | |
Capital leases | ||
2,017 | 6 | |
2,018 | 6 | |
2,019 | 6 | |
2,020 | 6 | |
2,021 | 6 | |
Later years | 120 | |
Minimum lease payments | 150 | |
Less: amount representing interest | (70) | |
Capital lease obligations | $ 80 | $ 80 |
Segment information - Segment S
Segment information - Segment Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information, Profit (Loss) | |||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 |
Segment operating profits | 163.6 | 166.3 | 213.3 | ||||||||
Separation costs | (17.5) | (17.2) | (0.4) | ||||||||
Restructuring and other income (charges) | (41.2) | 7.5 | 5.6 | ||||||||
Interest expense | (19.3) | (20.1) | (16.4) | ||||||||
Interest income | 1.4 | 0 | 0 | ||||||||
Provision for income taxes | (42.6) | (52.2) | (69.5) | ||||||||
Less: Net income (loss) attributable to noncontrolling interests, net of taxes | (2.6) | (2.3) | (1.8) | (2.5) | (1.3) | (1.2) | (0.9) | (1.2) | (9.2) | (4.6) | (3.6) |
Net income (loss) attributable to Ingevity stockholders | $ 9.1 | $ (7.2) | $ 24.1 | $ 9.2 | $ 8.6 | $ 23.8 | $ 25.3 | $ 22 | 35.2 | 79.7 | 129 |
Performance Materials | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Net sales | 301 | 256.4 | 249.4 | ||||||||
Segment operating profits | 106.9 | 79.7 | 89.5 | ||||||||
Performance Chemicals | |||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||
Net sales | 607.3 | 701.9 | 786.1 | ||||||||
Segment operating profits | $ 56.7 | $ 86.6 | $ 123.8 |
Segment information Segment inf
Segment information Segment information - Customer Sales (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 |
Performance Chemicals | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net sales | 607.3 | 701.9 | 786.1 | ||||||||
Performance Chemicals | Pavement Technologies product line | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net sales | 148.8 | 147.5 | 132 | ||||||||
Performance Chemicals | Oilfield Technologies product line | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net sales | 58.5 | 78 | 126.8 | ||||||||
Performance Chemicals | Industrial Specialties product line | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Net sales | $ 400 | $ 476.4 | $ 527.3 |
Segment information - Depreciat
Segment information - Depreciation and amortization, and capital expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||
Depreciation and amortization | $ 38.8 | $ 34.6 | $ 32.3 |
Capital expenditures | 56.7 | 100.9 | 101.8 |
Performance Materials | |||
Segment Reporting Information | |||
Depreciation and amortization | 16.4 | 11.1 | 9.9 |
Capital expenditures | 39.6 | 65.3 | 66.4 |
Performance Chemicals | |||
Segment Reporting Information | |||
Depreciation and amortization | 22.4 | 23.5 | 22.4 |
Capital expenditures | $ 17.1 | $ 35.6 | $ 35.4 |
Segment information - Geographi
Segment information - Geographical Sales and Property, pant and equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 |
Property, plant and equipment, net | 422.8 | 437.5 | 422.8 | 437.5 | 410.1 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net sales | 597.8 | 623 | 690 | ||||||||
Property, plant and equipment, net | 349.1 | 338.7 | 349.1 | 338.7 | 295.4 | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net sales | 138.8 | 149.3 | 150.6 | ||||||||
Property, plant and equipment, net | 72.7 | 76.9 | 72.7 | 76.9 | 93.8 | ||||||
Europe, Middle East and Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net sales | 151.1 | 155.9 | 154.3 | ||||||||
Property, plant and equipment, net | 0.7 | 0.8 | 0.7 | 0.8 | 0.8 | ||||||
South America | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Net sales | 20.6 | 30.1 | 40.6 | ||||||||
Property, plant and equipment, net | $ 0.3 | $ 21.1 | $ 0.3 | $ 21.1 | $ 20.1 |
Segment information - Assets (D
Segment information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information | |||
Assets | $ 832.8 | $ 778.7 | $ 717.3 |
Operating Segments | |||
Segment Reporting Information | |||
Assets | 829.8 | 775.7 | 713.1 |
Operating Segments | Performance Materials | |||
Segment Reporting Information | |||
Assets | 359.5 | 355.2 | 300.7 |
Operating Segments | Performance Chemicals | |||
Segment Reporting Information | |||
Assets | 470.3 | 420.5 | 412.4 |
Corporate and other | |||
Segment Reporting Information | |||
Assets | $ 3 | $ 3 | $ 4.2 |
Earnings (loss) per share - Ear
Earnings (loss) per share - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Earnings Per Share Reconciliation | ||||||||||||||
Net income attributable to the Company | $ 9.1 | $ (7.2) | $ 24.1 | $ 9.2 | $ 8.6 | $ 23.8 | $ 25.3 | $ 22 | $ 35.2 | $ 79.7 | $ 129 | |||
Basic and Diluted earnings (loss) per share | ||||||||||||||
Basic earnings per share (usd per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Diluted earnings per share (usd per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Weighted average shares outstanding | ||||||||||||||
Weighted average number of shares outstanding - Basic (shares) | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,108 | 42,102 | 42,102 | |||
Weighted average additional shares assuming conversion of potential common shares (shares) | 163 | 0 | 0 | |||||||||||
Weighted average number of shares outstanding - Diluted (shares) | 42,300 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,271 | 42,102 | 42,102 | |||
[1] | On May 15, 2016, WestRock distributed 42,102 thousand shares of Ingevity's common stock to holders of its common stock. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 are calculated using the number of common shares distributed on May 15, 2016. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. Refer to Note 20 for information regarding the calculation of basic and diluted earnings per share. |
Earnings (loss) per share - Ant
Earnings (loss) per share - Antidilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Potentially anti dilutive shares (shares) | 4 | 0 | 0 |
Supplemental Information - Prep
Supplemental Information - Prepaid and other current assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income and value added tax receivables | $ 10.7 | $ 9.6 |
Prepaid freight and supply agreements | 0.8 | 2.7 |
Non-trade receivables | 5.6 | 2.8 |
Advances to suppliers | 0.8 | 1.1 |
Other | 5.8 | 4 |
Prepaid and other current assets | $ 23.7 | $ 20.2 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
In millions | $ 0 | $ 2.6 |
Capitalized software, net | 5.2 | 5 |
Prepaid supply agreements | 2.4 | 2.7 |
Land-use rights | 5.6 | 5.7 |
Other | 8.8 | 7 |
Other assets | $ 22 | $ 23 |
Supplemental Information - Accr
Supplemental Information - Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued interest | $ 3.2 | $ 2.8 |
Accrued taxes | 1.5 | 1.5 |
Accrued freight | 1.5 | 2.2 |
Accrued rebates | 2.2 | 2.5 |
Restructuring reserves | 2.2 | 0 |
Separation-related Reimbursement Awards | 2.1 | 0 |
Other | 6.6 | 5.8 |
Accrued Liabilities, Current | $ 19.3 | $ 14.8 |
Supplemental Information - O118
Supplemental Information - Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred compensation arrangements | $ 0.7 | $ 2.5 |
Pension and other post-retirement benefit obligations | 5.9 | 0 |
Other | 3.6 | 4.7 |
Other liabilities | $ 10.2 | $ 7.2 |
Quarterly Financial Informat119
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 | |||
Gross profit | 56.3 | 80.4 | 74.7 | 63 | 49.3 | 76.9 | 82.1 | 67.1 | 274.4 | 275.4 | 318.5 | |||
Income (loss) before income taxes | 15.1 | 10.5 | 38.5 | 22.9 | 18.6 | 40.9 | 42.2 | 34.8 | 87 | 136.5 | 202.1 | |||
Net income (loss) | 11.7 | (4.9) | 25.9 | 11.7 | 9.9 | 25 | 26.2 | 23.2 | 44.4 | 84.3 | 132.6 | |||
Less: Net income (loss) attributable to noncontrolling interests | 2.6 | 2.3 | 1.8 | 2.5 | 1.3 | 1.2 | 0.9 | 1.2 | 9.2 | 4.6 | 3.6 | |||
Net income (loss) attributable to Ingevity stockholders | $ 9.1 | $ (7.2) | $ 24.1 | $ 9.2 | $ 8.6 | $ 23.8 | $ 25.3 | $ 22 | $ 35.2 | $ 79.7 | $ 129 | |||
Basic earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Weighted average shares outstanding | ||||||||||||||
Weighted average number of shares outstanding - Basic (shares) | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,108 | 42,102 | 42,102 | |||
Weighted average number of shares outstanding - diluted (shares) | 42,300 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,100 | 42,271 | 42,102 | 42,102 | |||
[1] | On May 15, 2016, WestRock distributed 42,102 thousand shares of Ingevity's common stock to holders of its common stock. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 are calculated using the number of common shares distributed on May 15, 2016. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. Refer to Note 20 for information regarding the calculation of basic and diluted earnings per share. |
Quarterly Financial Informat120
Quarterly Financial Information (Unaudited) - Revised (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||||
Net sales | $ 210.9 | $ 252.4 | $ 245.4 | $ 199.6 | $ 209.1 | $ 254.8 | $ 259.9 | $ 234.5 | $ 908.3 | $ 958.3 | $ 1,035.5 | |||
Gross profit | 56.3 | 80.4 | 74.7 | 63 | 49.3 | 76.9 | 82.1 | 67.1 | 274.4 | 275.4 | 318.5 | |||
Income before income taxes | 15.1 | 10.5 | 38.5 | 22.9 | 18.6 | 40.9 | 42.2 | 34.8 | 87 | 136.5 | 202.1 | |||
Net income (loss) | 11.7 | (4.9) | 25.9 | 11.7 | 9.9 | 25 | 26.2 | 23.2 | 44.4 | 84.3 | 132.6 | |||
Less: Net income (loss) attributable to noncontrolling interests | 2.6 | 2.3 | 1.8 | 2.5 | 1.3 | 1.2 | 0.9 | 1.2 | 9.2 | 4.6 | 3.6 | |||
Net income (loss) attributable to Ingevity stockholders | $ 9.1 | $ (7.2) | $ 24.1 | $ 9.2 | $ 8.6 | $ 23.8 | $ 25.3 | $ 22 | $ 35.2 | $ 79.7 | $ 129 | |||
Basic earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.22 | $ (0.17) | $ 0.57 | $ 0.22 | 0.20 | 0.57 | 0.60 | 0.52 | $ 0.83 | [1] | $ 1.89 | [1] | $ 3.06 | [1] |
Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.20 | $ 0.57 | $ 0.60 | $ 0.52 | ||||||||||
Reported | ||||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||||
Net sales | $ 252 | $ 248.7 | $ 203.9 | $ 209.8 | $ 256.5 | $ 262.2 | $ 239.2 | $ 967.7 | $ 1,041 | |||||
Gross profit | 81 | 76.1 | 60 | 48.9 | 77.6 | 85.1 | 69.1 | 280.7 | 322.7 | |||||
Income before income taxes | 10.5 | 38.4 | 19.8 | 17.6 | 40.5 | 43.6 | 36.4 | 138.1 | 203 | |||||
Net income (loss) | (4.8) | 25.8 | 9.8 | 9.3 | 24.7 | 27.1 | 24.2 | 85.3 | 133.2 | |||||
Less: Net income (loss) attributable to noncontrolling interests | 2.3 | 2.1 | 1.6 | 1.3 | 1.3 | 1.2 | 1.2 | 5 | 3.8 | |||||
Net income (loss) attributable to Ingevity stockholders | $ (7.1) | $ 23.7 | $ 8.2 | $ 8 | $ 23.4 | $ 25.9 | $ 23 | 80.3 | 129.4 | |||||
Basic earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ (0.17) | $ 0.56 | $ 0.19 | |||||||||||
Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.19 | $ 0.56 | $ 0.62 | $ 0.55 | ||||||||||
Adj. | ||||||||||||||
Interim Period, Costs Not Allocable [Line Items] | ||||||||||||||
Net sales | $ 0.4 | $ (3.3) | $ (4.3) | $ (0.7) | $ (1.7) | $ (2.3) | $ (4.7) | (9.4) | (5.5) | |||||
Gross profit | (0.6) | (1.4) | 3 | 0.4 | (0.7) | (3) | (2) | (5.3) | (4.2) | |||||
Income before income taxes | 0 | 0.1 | 3.1 | 1 | 0.4 | (1.4) | (1.6) | (1.6) | (0.9) | |||||
Net income (loss) | (0.1) | 0.1 | 1.9 | 0.6 | 0.3 | (0.9) | (1) | (1) | (0.6) | |||||
Less: Net income (loss) attributable to noncontrolling interests | 0 | (0.3) | 0.9 | 0 | (0.1) | (0.3) | 0 | (0.4) | (0.2) | |||||
Net income (loss) attributable to Ingevity stockholders | $ (0.1) | $ 0.4 | $ 1 | $ 0.6 | $ 0.4 | $ (0.6) | $ (1) | $ (0.6) | $ (0.4) | |||||
Basic earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0 | $ 0.01 | $ 0.03 | |||||||||||
Basic and diluted earnings (loss) per common share attributable to Ingevity stockholders (in dollars per share) | $ 0.01 | $ 0.01 | $ (0.02) | $ (0.03) | ||||||||||
[1] | On May 15, 2016, WestRock distributed 42,102 thousand shares of Ingevity's common stock to holders of its common stock. Basic and diluted earnings (loss) per share for the years ended December 31, 2015 and 2014 are calculated using the number of common shares distributed on May 15, 2016. Basic and diluted earnings (loss) per share for the year ended December 31, 2016 is calculated using the weighted average number of common shares outstanding for the period beginning after the distribution date. Refer to Note 20 for information regarding the calculation of basic and diluted earnings per share. |
Schedule II - Valuation and 121
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reserve for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | $ 0.1 | $ 0.5 | $ 0.3 |
Charged to Costs and Expenses | 0.2 | (0.4) | 0.2 |
Write-offs | 0 | 0 | 0 |
Balance, End of Year | 0.3 | 0.1 | 0.5 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | 6.6 | 4.8 | 3.6 |
Charged to Costs and Expenses | 13.2 | 1.5 | 1 |
Charged to Other Comprehensive Income | (1) | 0.3 | 0.2 |
Write-offs | 0 | 0 | |
Balance, End of Year | $ 18.8 | $ 6.6 | $ 4.8 |