Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 20, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37586 | ||
Entity Registrant Name | INGEVITY CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-4027764 | ||
Entity Address, Address Line One | 4920 O'Hear Avenue Suite 400 | ||
Entity Address, City or Town | North Charleston | ||
Entity Address, State or Province | SC | ||
Entity Address, Postal Zip Code | 29405 | ||
City Area Code | 843 | ||
Local Phone Number | 740-2300 | ||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | NGVT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,401,433,359 | ||
Entity Common Stock, Shares Outstanding | 37,150,610 | ||
Documents Incorporated by Reference | Portions of the Company's definitive 2023 Annual Meeting Proxy Statement are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001653477 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Charlotte, North Carolina |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 1,668.3 | $ 1,391.5 | $ 1,216.1 |
Cost of sales | 1,098.2 | 878.7 | 750.6 |
Gross profit | 570.1 | 512.8 | 465.5 |
Selling, general, and administrative expenses | 198.8 | 179.3 | 149.4 |
Research and technical expenses | 30.3 | 26.3 | 22.6 |
Restructuring and other (income) charges, net | 13.8 | 16.2 | 18.5 |
Acquisition-related costs | 5 | 0.6 | 1.8 |
Other (income) expense, net | (1.7) | 79.9 | (4.1) |
Interest expense | 61.8 | 51.7 | 47.1 |
Interest income | (7.5) | (4) | (4.9) |
Income (loss) before income taxes | 269.6 | 162.8 | 235.1 |
Provision (benefit) for income taxes | 58 | 44.7 | 53.7 |
Net income (loss) | $ 211.6 | $ 118.1 | $ 181.4 |
Per share data | |||
Basic earnings (loss) per common share attributable to Ingevity stockholders (usd per share) | $ 5.54 | $ 2.97 | $ 4.39 |
Diluted earnings (loss) per common share attributable to Ingevity stockholders (usd per share) | $ 5.50 | $ 2.95 | $ 4.37 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 211.6 | $ 118.1 | $ 181.4 |
Foreign currency adjustments: | |||
Foreign currency translation adjustment | (74.9) | (5.3) | 23.9 |
Unrealized gain (loss) on net investment hedges, net of tax provision (benefit) of $3.2, $2.3, and $(2.7) | 10.7 | 7.3 | (9) |
Total foreign currency adjustments, net of tax provision (benefit) of $3.2, $2.3, and $(2.7) | (64.2) | 2 | 14.9 |
Derivative instruments: | |||
Unrealized gain (loss), net of tax provision (benefit) of $2.6, $1.7, and $(1.3) | 8.5 | 5.5 | (4.3) |
Reclassifications of deferred derivative instruments (gain) loss, included within net income (loss), net of tax (provision) benefit of $(2.4), $(0.3), and $0.3 | (7.8) | (0.7) | 0.9 |
Total derivative instruments, net of tax provision (benefit) of $0.2, $1.4, and $(1.0) | 0.7 | 4.8 | (3.4) |
Pension & other postretirement benefits: | |||
Unrealized actuarial gains (losses) and prior service (costs) credits, net of tax provision (benefit) of $1.0, $0.4, and $(0.6) | 3.4 | 1.5 | (2.1) |
Reclassifications of net actuarial and other (gain) loss, amortization of prior service cost, and settlement and curtailment (income) charges, included within net income, net of tax (provision) benefit of $0.1, $0.1, and zero | 0.2 | 0.1 | 0.3 |
Total pension and other postretirement benefits, net of tax provision (benefit) of $1.1, $0.5, and $(0.6) | 3.6 | 1.6 | (1.8) |
Other comprehensive income (loss), net of tax | (59.9) | 8.4 | 9.7 |
Comprehensive income (loss) | $ 151.7 | $ 126.5 | $ 191.1 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Tax on net investment hedge | $ 3.2 | $ 2.3 | $ (2.7) |
Foreign currency tax | 3.2 | 2.3 | (2.7) |
Unrealized tax (benefit) expense, derivative instruments | 2.6 | 1.7 | (1.3) |
Reclassifications tax expense (benefit), derivative instruments | (2.4) | (0.3) | 0.3 |
Total derivative instruments tax (benefit) expense | 0.2 | 1.4 | (1) |
Unrealized actuarial gains (losses) and prior service (costs) credits, tax | 1 | 0.4 | (0.6) |
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, tax | 0.1 | 0.1 | 0 |
Total pension and other postretirement benefits, tax | 1.1 | 0.5 | (0.6) |
Other comprehensive income, tax | $ 4.5 | $ 4.2 | $ (4.3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 76.7 | $ 275.4 |
Accounts receivable, net of allowance for credit losses of $0.5 million - 2022 and $2.0 million - 2021 | 224.8 | 161.7 |
Inventories, net | 335 | 241.2 |
Prepaid and other current assets | 42.5 | 46.6 |
Current assets | 679 | 724.9 |
Property, plant, and equipment, net | 798.6 | 719.7 |
Operating lease assets, net | 56.6 | 52.4 |
Goodwill | 518.5 | 442 |
Other intangibles, net | 404.8 | 337.6 |
Deferred income taxes | 5.7 | 6.8 |
Restricted investment, net of allowance for credit losses of $0.6 million - 2022 and $0.5 million - 2021 | 78 | 76.1 |
Investments | 109.8 | 35.3 |
Other assets | 85.5 | 74.2 |
Total Assets | 2,736.5 | 2,469 |
Liabilities | ||
Accounts payable | 174.8 | 125.8 |
Accrued expenses | 54.4 | 51.7 |
Accrued payroll and employee benefits | 53.3 | 48.2 |
Current operating lease liabilities | 16.5 | 17.4 |
Notes payable and current maturities of long-term debt | 0.9 | 19.6 |
Income taxes payable | 3.6 | 6.2 |
Current liabilities | 303.5 | 268.9 |
Long-term debt including finance lease obligations | 1,472.5 | 1,250 |
Noncurrent operating lease liabilities | 40.8 | 36.2 |
Deferred income taxes | 106.5 | 114.6 |
Other liabilities | 114.9 | 125.5 |
Total Liabilities | 2,038.2 | 1,795.2 |
Commitments and contingencies (Note 18) | ||
Equity | ||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at 2022 and 2021) | 0 | 0 |
Common stock (par value $0.01 per share; 300,000,000 shares authorized; 43,228,172 and 43,102,011 issued and 37,298,989 and 39,269,399 outstanding at 2022 and 2021, respectively) | 0.4 | 0.4 |
Additional paid-in capital | 153 | 136.3 |
Retained earnings | 1,007.7 | 796.1 |
Accumulated other comprehensive income (loss) | (46.8) | 13.1 |
Treasury stock, common stock, at cost (5,929,183 and 3,832,612 shares at 2022 and 2021, respectively) | (416) | (272.1) |
Total Equity | 698.3 | 673.8 |
Total Liabilities and Equity | $ 2,736.5 | $ 2,469 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 0.5 | $ 2 |
Held-to-maturity, allowance for credit loss | $ 0.6 | $ 0.5 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (shares) | 43,228,172 | 43,102,011 |
Common stock shares outstanding (shares) | 37,298,989 | 39,269,399 |
Treasury stock (shares) | 5,929,183 | 3,832,612 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional paid-in capital | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) | Treasury stock |
Beginning balance (shares) at Dec. 31, 2019 | 42,675,200 | |||||||
Beginning balance at Dec. 31, 2019 | $ 530.8 | $ (0.6) | $ 0.4 | $ 112.8 | $ 497.2 | $ (0.6) | $ (5) | $ (74.6) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 181.4 | 181.4 | ||||||
Other comprehensive income (loss) | 9.7 | 9.7 | ||||||
Common stock issued (shares) | 174,600 | |||||||
Exercise of stock options, net (shares) | 63,000 | |||||||
Exercise of stock options, net | 1.9 | 1.9 | ||||||
Tax payments related to vested restricted stock units | (3.2) | (3.2) | ||||||
Share repurchase program | (88) | (88) | ||||||
Share-based compensation plans | 10.1 | 6.6 | 3.5 | |||||
Ending balance (shares) at Dec. 31, 2020 | 42,912,800 | |||||||
Ending balance at Dec. 31, 2020 | 642.1 | $ 0.4 | 121.3 | 678 | 4.7 | (162.3) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 118.1 | 118.1 | ||||||
Other comprehensive income (loss) | 8.4 | 8.4 | ||||||
Common stock issued (shares) | 121,400 | |||||||
Exercise of stock options, net (shares) | 67,800 | |||||||
Exercise of stock options, net | 3 | 3 | ||||||
Tax payments related to vested restricted stock units | (2.4) | (2.4) | ||||||
Share repurchase program | (109.4) | (109.4) | ||||||
Share-based compensation plans | $ 14 | 12 | 2 | |||||
Ending balance (shares) at Dec. 31, 2021 | 39,269,399 | 43,102,000 | ||||||
Ending balance at Dec. 31, 2021 | $ 673.8 | $ 0.4 | 136.3 | 796.1 | 13.1 | (272.1) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 211.6 | 211.6 | ||||||
Other comprehensive income (loss) | $ (59.9) | (59.9) | ||||||
Common stock issued (shares) | 82,900 | |||||||
Exercise of stock options, net (shares) | 33,000 | 43,200 | ||||||
Exercise of stock options, net | $ 1.6 | 1.6 | ||||||
Tax payments related to vested restricted stock units | (2.2) | (2.2) | ||||||
Share repurchase program | (145.2) | (145.2) | ||||||
Share-based compensation plans | $ 18.6 | 15.1 | 3.5 | |||||
Ending balance (shares) at Dec. 31, 2022 | 37,298,989 | 43,228,100 | ||||||
Ending balance at Dec. 31, 2022 | $ 698.3 | $ 0.4 | $ 153 | $ 1,007.7 | $ (46.8) | $ (416) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash provided by (used in) operating activities: | ||||
Net income (loss) | $ 211.6 | $ 118.1 | $ 181.4 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||
Depreciation and amortization | 108.8 | 109.9 | 100.2 | |
Non cash operating lease costs | 16.1 | 17.3 | 18 | |
Deferred income taxes | (5) | (4.6) | 16.2 | |
Disposal/impairment of assets | 2.5 | 1.2 | 0.6 | |
Restructuring and other (income) charges, net | 0 | 0 | 1.7 | |
LIFO reserve | 10 | 3.5 | 3.9 | |
Share-based compensation | 16.1 | 12.3 | 8.4 | |
Pension and other postretirement benefit costs | 1.4 | 1.6 | 1.9 | |
Other non-cash items | 18.4 | 12.1 | 15.3 | |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||||
Accounts receivable, net | (42.1) | (13.8) | 2.8 | |
Inventories, net | (63.7) | (55.8) | 22.3 | |
Prepaid and other current assets | (0.8) | (5.9) | 2.1 | |
Planned major maintenance outage | (9.1) | (8.6) | (7) | |
Accounts payable | 42.7 | 14.8 | 9.4 | |
Accrued expenses | 0.8 | 4.8 | 13.4 | |
Accrued payroll and employee benefits | 5.4 | 23.1 | (3.3) | |
Income taxes | 4.9 | (6.2) | (9.6) | |
Litigation verdict charge | 0 | 85 | 0 | |
Operating leases | (18.8) | (20.5) | (18.5) | |
Changes in all other operating assets and liabilities, net | 13.9 | 4.7 | (6.8) | |
Net cash provided by (used in) operating activities | 313.1 | 293 | 352.4 | |
Cash provided by (used in) investing activities: | ||||
Capital expenditures | (142.5) | (103.8) | (82.1) | |
Payments for acquired businesses, net of cash acquired | (344.5) | 0 | 0 | |
Finance lease expenditures | 0 | 0 | (23.8) | |
Net investment hedge settlement | 14.7 | 0 | 0 | |
Purchase of strategic investments | (77.4) | (35.3) | 0 | |
Other investing activities, net | (4.2) | (1.5) | (4.7) | |
Net cash provided by (used in) investing activities | (553.9) | (140.6) | (110.6) | |
Cash provided by (used in) financing activities: | ||||
Proceeds from revolving credit facility | 1,164.7 | 0 | 346.1 | |
Proceeds from long-term borrowings | 0 | 0 | 550 | |
Payments on revolving credit facility | (336.7) | 0 | (477.3) | |
Payments on long-term borrowings | (628.1) | (23.4) | (389.1) | |
Debt issuance costs | (3) | 0 | (11) | |
Debt repayment costs | (3.8) | 0 | 0 | |
Financing lease obligations, net | (0.9) | (0.7) | 23.1 | |
Borrowings (repayments) of notes payable and other short-term borrowings, net | 0 | (1.9) | (4.4) | |
Tax payments related to withholdings on vested equity awards | (2.2) | (2.4) | (3.2) | |
Proceeds and withholdings from share-based compensation plans, net | 4.1 | 4.7 | 3.6 | |
Repurchases of common stock under publicly announced plan | (145.2) | (109.4) | (88) | |
Other financing activities, net | (0.8) | 0 | 0 | |
Net cash provided by (used in) financing activities | 48.1 | (133.1) | (50.2) | |
Increase (decrease) in cash, cash equivalents, and restricted cash | (192.7) | 19.3 | 191.6 | |
Effect of exchange rate changes on cash | (6) | (1.7) | 2.2 | |
Change in cash, cash equivalents, and restricted cash | (198.7) | 17.6 | 193.8 | |
Cash, cash equivalents, and restricted cash at beginning of period | [1] | 276 | 258.4 | 64.6 |
Cash, cash equivalents, and restricted cash at end of period | [1] | 77.3 | 276 | 258.4 |
Supplemental cash flow information: | ||||
Cash paid for interest, net of capitalized interest | 54.8 | 47.5 | 39.6 | |
Cash paid for income taxes, net of refunds | 54.8 | 53.7 | 46.6 | |
Purchases of property, plant and equipment in accounts payable | 4.9 | 9.4 | 2.7 | |
Leased assets obtained in exchange for new finance lease liabilities | 0 | 0 | 23.8 | |
Leased assets obtained in exchange for new operating lease liabilities | 23.7 | 20.5 | 27.2 | |
Restricted cash and cash equivalents | 0.6 | 0.6 | 0.7 | |
Cash and cash equivalents | $ 76.7 | $ 275.4 | $ 257.7 | |
[1](1) Includes restricted cash of $0.6 million, $0.6 million, and $0.7 million and cash and cash equivalents of $76.7 million, $275.4 million, and $257.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. Restricted cash is included within "Prepaid and other current assets" within the consolidated balance sheets. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | |||
Restricted cash and cash equivalents | $ 0.6 | $ 0.6 | $ 0.7 |
Cash and cash equivalents | $ 76.7 | $ 275.4 | $ 257.7 |
Background
Background | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background | Background Description of Business Ingevity Corporation ("Ingevity," "the company," "we," "us," or "our") provides products and technologies that purify, protect, and enhance the world around us. Through a team of talented and experienced people, we develop, manufacture, and bring to market solutions that help customers solve complex problems and make the world more sustainable. We report in two business segments: Performance Materials and Performance Chemicals. Our Performance Materials segment manufactures products in the form of powder, granular, extruded pellets, extruded honeycombs, and activated carbon sheets. Automotive technologies products are sold into the gasoline vapor emission control applications within the automotive industry, while process purification products are sold into the food, water, beverage, and chemical purification industries. Our Performance Chemicals segment consists of our pavement technologies, industrial specialties, and engineered polymers product lines. Performance Chemicals manufactures products derived from crude tall oil ("CTO") and lignin extracted from the kraft pulping process as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. Performance Chemicals products serve as critical inputs used in a variety of high performance applications, including warm mix paving, pavement preservation, and pavement reconstruction and recycling (pavement technologies product line), adhesives, agrochemicals, lubricants, printing inks, industrial intermediates, and oilfield (industrial specialties product line), coatings, resins, elastomers, adhesives, bio-plastics, and medical devices (engineered polymers product line). Basis of Consolidation and Presentation The accompanying Consolidated Financial Statements of Ingevity were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The significant accounting policies described in Note 2, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. The Consolidated Financial Statements include the accounts of Ingevity and subsidiaries in which a controlling interest is maintained. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Estimates and assumptions: 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. Cash equivalents: Highly liquid securities with an original maturity of three months or less are considered cash equivalents. Accounts receivable and allowance for credit losses: Accounts receivable, net on the consolidated balance sheets are comprised of trade receivables less allowances for credit losses. 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 credit losses is our best estimate of the amount of probable loss in the existing accounts receivable. We determine the allowance based on our expected future credit losses, which is partly 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 credit losses at December 31, 2022 and 2021, was $0.5 million and $2.0 million, respectively. 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. Our largest customer as of December 31, 2022 had accounts receivable of $9.3 million and $5.7 million as of December 31, 2022 and 2021, respectively. Sales to our largest customer, from our Performance Materials segment, were approximately four percent of total net sales for each of the years ended December 31, 2022, 2021, and 2020, respectively. Sales to the automotive industry, which represents our largest industry concentration, were approximately 30 percent of our consolidated Net sales. No customers individually accounted for greater than 10 percent of Ingevity's consolidated Net sales. Inventories, net: Inventories are valued at lower of cost or net realizable value, except for inventories determined using the last-in, first-out method (“LIFO”), which are valued at the lower of LIFO or market cost. The value of our U.S. inventories is determined using LIFO for the majority of our raw materials, finished goods, and production materials. The value of all other inventories, including stores and supplies inventories and inventories of non-U.S. operations, is determined by the first-in, first-out ("FIFO") or average costs methods. Elements of cost in inventories include raw materials, direct labor, and manufacturing overhead. We routinely assess inventory for both potential obsolescence and potential declines in anticipated selling prices to derive a market value for the inventory on hand. This review also includes an analysis of potentially obsolete, unmarketable, slow-moving, or overvalued inventory. If necessary, we will impair any inventories by an amount equal to the difference between the value of the held inventory (i.e., cost) and its estimated net realizable value for FIFO and average cost inventories and market value for LIFO inventories. 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 within the consolidated statement of operations. 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. Repair and maintenance costs: We expense routine repair and maintenance costs as we incur them. We defer expenses incurred during planned major maintenance activities and record these amounts to Other assets on our consolidated balance sheet. Deferred amounts are recognized as expense ratably over the shorter of the estimated interval until the next major maintenance activity or the life of the deferred item. The cash outflows related to these costs are included in operating activities within the consolidated statement of cash flows. The timing of this maintenance can vary by manufacturing plant and has a significant impact on our results of operations in the period performed primarily due to lost production during the maintenance period. Depreciation: The cost of property, 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 details on the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of Depreciable Life in Years Types of Assets 23 5 to 10 Production control system equipment and hardware, laboratory testing equipment 11 15 Control systems, instrumentation, metering equipment 49 20 Production vessels and kilns, storage tanks, piping 7 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 3 40 Machinery & equipment support structures and foundations 7 Various Various Leases: We lease various assets for use in our operations that are classified as both operating and financing leases. At contract inception, we determine that a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, we recognize a lease liability based on the present value of the future lease payments, with an offsetting entry to recognize a right-of-use asset. As a majority of our leases do not provide an explicit rate within the lease, an incremental borrowing rate is used, which is based on information available at the commencement date. The determination of the incremental borrowing rate for each individual lease was impacted by the following assumptions: lease term, currency, and the economic environment for the physical location of the leased asset. Our operating leases principally relate to the following leased asset classes: Leased Asset Class Remaining Lease Term Administrative offices 1 to 15 years Manufacturing buildings 4 to 28 years Manufacturing and office equipment 1 to 11 years Warehousing and storage facilities 3 to 10 years Vehicles 3 to 6 years Rail cars 0 to 8 years Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the expected lease term. Some of our leases include options to extend the lease term at our sole discretion. We account for lease and non-lease components together as a single component for all lease asset classes. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Certain leases provide for escalation of the lease payments, as well as maintenance costs and taxes increase. 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 conduct a required annual review of goodwill for potential impairment 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. Our reporting units are our operating segments, i.e., Performance Chemicals and Performance Materials. If the carrying value of a reporting unit that includes goodwill exceeds its fair value, which is determined using both the income approach and market approach, goodwill is considered impaired. The income approach determines fair value based on discounted cash flow model derived from a reporting unit’s long-term forecasted cash flows. The market approach determines fair value based on the application of earnings multiples of comparable companies to projected earnings of the reporting unit. The amount of impairment loss is measured as the difference between the carrying value and the fair value of a reporting unit but is limited to the total amount of goodwill allocated to the reporting unit. In performing the fair value analysis, management makes various judgments, estimates and assumptions, the most significant of which is the assumption related to revenue growth rates. The factors we considered in developing our estimates and projections for cash flows include, but are not limited to, the following: (i) macroeconomic conditions; (ii) industry and market considerations; (iii) costs, such as increases in raw materials, labor, or other costs; (iv) our overall financial performance; and (v) other relevant entity-specific events that impact our reporting units. The determination of whether goodwill is impaired involves a significant level of judgment in the assumptions underlying the approach used to determine the estimated fair values of our reporting units. We believe that the estimates and assumptions used in our impairment assessment are reasonable; however, these assumptions are judgmental and variations in any assumptions could result in materially different calculations of fair value. We will continue to evaluate goodwill on an annual basis as of October 1, and whenever events or changes in circumstances, such as significant adverse changes in operating results, market conditions, or changes in management’s business strategy indicate that there may be a probable indicator of impairment. It is possible that the assumptions used by management related to the evaluation may change or that actual results may vary significantly from management’s estimates. Our fiscal year 2022 annual goodwill impairment test was performed as of October 1, 2022. We determined that the fair value of both our reporting units were substantially in excess of their carrying value and therefore concluded that no goodwill impairment existed. There were no events or circumstances indicating that goodwill might be impaired as of December 31, 2022. No impairment charges have been recognized historically. Other intangible assets are comprised of finite-lived intangible assets consisting primarily of brands (representing trademarks, trade names and know-how), customer contracts and relationships, and developed technology. Other intangible assets are amortized over their estimated useful lives which range from 3 to 20 years. Any potential impairment for definite-lived intangible assets will be calculated in the same manner as disclosed under impairment of property, plant and equipment. Customer relationships are amortized in a manner that reflects the pattern in which the economic benefits of the intangible asset are consumed. Capitalized software: Capitalized software for internal use is included within Other assets on the consolidated balance sheets. Amounts capitalized are presented in Capital expenditures on our consolidated statements of cash flow. Capitalized software is amortized using the straight-line over the estimated useful lives ranging from 3 to 15 years. Amortization is recorded to Costs of sales on our consolidated statements of operations for software directly used in the production of inventory and Selling, general, and administrative expenses on our consolidated statements of operations for software used for non-production related activities. Strategic investments: We have a variety of strategic investments that are classified as long-term assets on the consolidated balance sheets. Our strategic investments are accounted for under either the equity method of accounting or the measurement alternative, where fair value is not readily determinable. We use the equity method of accounting for investments that we do not control, but for which we have the ability to exercise significant influence. For strategic investments that are accounted for under the equity method of accounting, our initial investment is recorded at cost. Subsequently, the carrying value for these investments will be impacted by our proportionate share of undistributed earnings or loss, distributions, amortization or accretion of basis differences, and other-than-temporary impairments. Subsequent adjustments to our initial investment are recorded within Other (income) expense, net on the consolidated statement of operations. Strategic investments accounted for under the measurement alternative, where fair value is not readily determinable, are accounted for at cost. Adjustments for observable changes in prices or impairments are recognized in Other (income) expense, net in our consolidated statements of operations. At each reporting period, we evaluate each investment to determine whether events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. Legal liabilities: We recognize a liability for legal contingencies when a loss is probable and reasonably estimable. Third-party fees for legal services are expensed as incurred. If only a range of estimated losses can be determined, we accrue an amount that reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. If an unfavorable outcome is reasonably possible but not probable, we will disclose an estimate of the reasonably possible loss or range of loss. If we cannot estimate the loss or range of losses arising from a legal proceeding, we will disclose that an estimate cannot be made. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require us to change our business practices in a manner that could have a material adverse impact on our business. Revenue recognition: Our revenue is derived from contracts with customers, and substantially all our revenue is recognized when products are either shipped from our manufacturing and warehousing facilities or delivered to the customer. Revenue, net of returns and customer incentives, is based on the sale of manufactured products. Revenues are recognized when performance obligations under the terms of a contract with our customer are satisfied; generally, this occurs with the transfer of control of our products. For certain limited contracts, where we are producing goods with no alternative use and for which we have an enforceable right to payment for performance completed to date, we are recognizing revenue as goods are manufactured, rather than when they are shipped. Revenues are presented as Net sales on the consolidated statements of operations. Since Net sales are derived from product sales only, we have disaggregated our Net sales by our product lines within each reportable segment. Net sales are measured as the amount of consideration we expect to receive in exchange for transferring goods. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Sales returns and allowances are not a normal practice in the industry and are not significant. Certain customers may receive cash-based incentives, including discounts and volume rebates, which are accounted for as variable consideration and included within Net sales. Shipping and handling fees billed to customers are included within Net sales. If we pay for the freight and shipping, we recognize the cost when control of the product has transferred to the customer as an expense within Cost of sales on the consolidated statements of operations. Payment terms with our customers are typically in the range of zero Cost of sales: Costs primarily consist of the cost of inventory sold and other production related costs. These costs include raw materials, direct labor, manufacturing overhead, packaging costs, and maintenance costs. Shipping and handling costs are recorded within Cost of sales on the consolidated statements of operations. Selling, general, and administrative expenses: Costs are expensed as incurred and primarily include employee compensation costs related to sales and office personnel, office expenses, and other expenses not directly related to our manufacturing operations. Costs also include advertising and promotional costs. Research and technical expenses: Costs are expensed as incurred and primarily include employee compensation, technical equipment costs, material testing, and innovation-related expenses. Royalty expense: We have licensing agreements with third parties requiring us to pay royalties for certain technologies we use in the manufacturing of our products. Royalty expense is recognized as incurred and recorded within Cost of sales on the consolidated statements of operations. 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 within Restructuring and other (income) charges, net on the 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. Income taxes: We are subject to income taxes in the U.S. and numerous foreign jurisdictions, including China and the United Kingdom ("UK"). The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. We follow the asset and 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 recognized based on the temporary 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. We recognize income tax positions that are more-likely-than-not to be realized and accrue interest related to unrecognized income tax positions, which is included as a component of the income tax provision, on the consolidated statements of operations. Pension and postretirement benefits: We provide both qualified and non-qualified pension and postretirement benefit plans to our employees. The expense related to the current employees, as well as the expense related to retirees, are included within 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 rates, 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. Share-based compensation: We recognize compensation expense within our Consolidated Financial Statements for all share-based compensation arrangements. Share-based compensation cost is measured at the date of grant, based on the fair value of the award, and expense is recognized over the grantee's requisite service period; forfeitures are recognized as they occur. We calculate the fair value of our stock options using the Black-Scholes option pricing model. The fair value of restricted stock units ("RSU"s), non-employee director deferred stock units ("DSU"s), and performance-based restricted stock units ("PSU"s) is determined using our closing stock price on the date of the grant. Substantially all compensation expense related to share-based awards is recorded as a component of Selling, general and administrative expenses within the consolidated statements of operations. Operating segments: Our 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. Our chief operating decision maker evaluates the business at the segment level when making decisions about allocating resources and assessing the 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 and caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. Each segment operates as a portfolio of various end uses for the relevant raw material used in that segment. Fair value measurements: We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying value of our financial instruments: cash and cash equivalents, other receivables, other payables, and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. Derivative financial instruments: We are exposed to market risks, such as the impact of changes in interest rates on our floating rate debt, foreign currency exchange rates due to transactions denominated in a variety of foreign currencies, and commodity prices due to purchases of certain raw materials and inputs. Changes in these rates and prices may have an impact on our future cash flow and earnings. We formally document all relationships between the derivative financial instrument and the hedged item, as well as the risk management objective and strategy for undertaking various hedge transactions. We do not hold or issue derivative financial instruments for speculative or trading purposes. We enter into derivative financial instruments which are governed by policies, procedures, and internal processes set forth by our Board of Directors. Our risk management program also addresses counterparty credit risk by selecting only major financial institutions with investment grade ratings. Once the derivative financial instrument is entered into, we continuously monitor the financial institutions’ credit ratings and our credit risk exposure held by the financial institution. When appropriate, we reallocate exposures across multiple financial institutions to limit credit risk. If a counterparty fails to fulfill its performance obligations under the derivative financial instrument, then Ingevity is exposed to credit risk equal to the fair value of the financial instrument. Derivative assets and liabilities are recorded on our consolidated balance sheets at fair value and are presented on a gross basis. Due to our proactive mitigation of these potential credit risks, we anticipate performance by our counterparties to these contracts, and therefore, no material loss is expected. In order to mitigate the impact of market risks, we have and may enter into both net investment hedges and cash flow hedges. Cash Flow Hedges: Cash flow hedges are derivative financial instruments designated as and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. The derivative financial instruments that are designated and qualify as a cash flow hedge are recorded on the balance sheet at fair value, and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows of the underlying exposures being hedged. The gains and losses arising from qualifying hedging instruments are reported as a component of Accumulated other comprehensive income (loss) (“AOCI”) located within the consolidated balance sheets and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The reclassification gain or losses of the hedge from AOCI are recorded in the same financial statement caption on the consolidated statements of operations as the hedged item. For example, designated cash flow hedges entered to minimize foreign currency exchange risk of forecasted revenue transactions are recorded to Net sales on the consolidated statements of operations when the forecasted transaction occurs. Designated commodity cash flow hedges gains or losses recorded in AOCI are recognized within Cost of sales on the consolidated statements of operations when the inventory is sold. Net Investment Hedges: Net investment hedges are defined as derivative or non-derivative instruments, which are designated as and used to hedge the foreign currency exposure of the net investment in certain foreign operations. The net of the change in the hedge instrument and the item being hedged against for qualifying net investment hedges is reported as a component of the foreign currency adjustments ("CTA") within AOCI on the consolidated balance sheet. The gains (losses) on net investment hedges are reclassified to earnings only when the related CTA are required to be reclassified, usually upon the sale or liquidation of the investment. Treasury stock: We record shares of common stock repurchased at cost as treasury stock, resulting in a reduction of stockholders’ equity on the consolidated balance sheets. When the treasury shares are contributed under our employee benefit plans or issued for option exercises, we use a first-in, first-out (“FIFO”) method for determining cost. The difference between the cost of the shares and the market price at the time of contribution to an employee benefit plan is added to or deducted from Additional paid-in capital on the consolidated balance sheets. Translation of foreign currencies: The local currency is the functional currency for all of our significant operations outside the U.S., consisting primarily of the euro, the Japanese yen, the pound sterling, and the Chinese renminbi. The assets and liabilities of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates, and adjustments resulting from these financial statement translations are included within AOCI on the consolidated balance sheets. Revenues and expenses are translated at average rates prevailing during each period. Business combinations: Accounting for business combinations which requires, among other things, the acquiring entity in a business combination to recognize the fair value of the assets acquired and liabilities assumed; the recognition of acquisition-related costs within the consolidated results of operations; the recognition of restructuring costs within the consolidated results of operations for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at fair value on the acquisition date with subsequent adjustments recognized on the consolidated statement of operations. We generally use qualified third-party consultants to assist management in determining the fair value of assets acquired and liabilities assumed. This includes, when necessary, assistance with the determination of lives and valuation of tangible property, plant, and equipment and identifiable intangibles, assisting management in determining the fair value of obligations associated with employee-related liabilities, and assisting management in assessing obligations associated with legal and environmental claims. The purchase price allocation process allows us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained surrounding facts and circumstances existing at the acquisition date. The fair value assigned to identifiable intangible assets acquired is determined primarily by using an income approach, which is based on assumptions and estimates made by management. Significant assumptions utilized in the income approach are the attrition rate, revenue growth rates, EBITDA margins, royalty rates, and the discount rate. These assumptions are based on company-specific information and projections, which are not observable in the market and are therefore considered Level 2 and Level 3 measurements. The excess of the purchase price over the fair value of the identified assets and liabili |
New Accounting Guidance
New Accounting Guidance | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Guidance | New Accounting Guidance The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update ("ASU") to communicate changes to the Codification. We consider the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Consolidated Financial Statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The ASU is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank-offered rates to alternative reference rates. This guidance became effective beginning on March 12, 2020, and we may elect to apply the amendments prospectively until December 31, 2024. As of December 31, 2022, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect this new standard to have a material impact on our Consolidated Financial Statements. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Disaggregation of Revenue The following tables present our Net sales disaggregated by product line and geography. Years Ended December 31, In millions 2022 2021 2020 Performance Materials segment $ 548.5 $ 516.8 $ 510.0 Performance Chemicals segment Pavement Technologies product line 241.3 195.4 186.8 Industrial Specialties product line 633.8 493.5 391.6 Engineered Polymers product line 244.7 185.8 127.7 Total $ 1,119.8 $ 874.7 $ 706.1 Net sales $ 1,668.3 $ 1,391.5 $ 1,216.1 The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Years Ended December 31, In millions 2022 2021 2020 North America $ 983.2 $ 763.3 $ 676.9 Asia Pacific 398.7 385.5 345.4 Europe, Middle East, and Africa 242.2 219.6 174.9 South America 44.2 23.1 18.9 Net sales $ 1,668.3 $ 1,391.5 $ 1,216.1 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date from contracts with certain customers. The contract assets are recognized as accounts receivables when we have an enforceable right to payment for performance completed to date and the customer has been billed. Contract liabilities represent obligations to transfer goods to a customer for which we have received consideration from our customer. For all periods presented, we had no contract liabilities. Year Ended December 31, In millions 2022 2021 Contract asset at beginning of period $ 5.3 $ 5.7 Additions 20.7 21.5 Reclassification to accounts receivable, billed to customers (19.6) (21.9) Contract asset at end of period (1) $ 6.4 $ 5.3 _______________ (1) Included within "Prepaid and other current assets" on the consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements The following information is presented for assets and liabilities that are recorded on the consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between the three-level fair value hierarchy during the periods reported. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2022 Assets: Deferred compensation plan investments (4) $ 1.1 $ — $ — $ 1.1 Total assets $ 1.1 $ — $ — $ 1.1 Liabilities: Deferred compensation arrangement (4) $ 12.5 $ — $ — $ 12.5 Total liabilities $ 12.5 $ — $ — $ 12.5 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2021 Assets: Deferred compensation plan investments (4) $ 0.9 $ — $ — $ 0.9 Total assets $ 0.9 $ — $ — $ 0.9 Liabilities: Deferred compensation arrangement (4) $ 13.7 $ — $ — $ 13.7 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 13.7 $ — $ 0.8 $ 14.5 __________ (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) Consists of a deferred compensation arrangement through which we hold various investment securities recognized on our balance sheets. Both the asset and liability related to investment securities are recorded at fair value and are included within "Other assets" and "Other liabilities" on the consolidated balance sheets, respectively. In addition to the investment securities, we also had company-owned life insurance related to the deferred compensation arrangement recorded at cash surrender value in "Other assets" of $13.3 million and $14.0 million at December 31, 2022 and 2021, respectively. (5) Included within "Other liabilities" on the consolidated balance sheet. Nonrecurring Fair Value Measurements There were no nonrecurring fair value measurements on the consolidated balance sheet during the year ended December 31, 2022 and 2021 , respectively. Strategic Investments Equity Method Investments During 2021 and 2022, we acquired two separate strategic investments in privately-held companies for $16.5 million and $14.6 million, respectively, which are both accounted for under the equity method of accounting. The carrying value of our strategic equity investments was $28.2 million at December 31, 2022 and $16.5 million at December 31, 2021. There were no adjustments to the carrying value of equity method investments for impairment for the periods ended, December 31, 2022 and 2021 . During 2022, we entered into an investment with a venture capital fund for $0.8 million, which is accounted for under the equity method of accounting. As of December 31, 2022 and 2021, respectively, we had approximately $6.7 million and zero of unfunded commitments, which we anticipate will be paid over a period of 10 years. The carrying value of our strategic equity investment was $0.7 million and zero at December 31, 2022 and 2021 , respectively . Measurement Alternative Investments During 2022, we invested $62.0 million to acquire equity interests in two separate strategic investments, $60.0 million of which was our investment in lithium-ion anode materials producer, Nexeon Limited. Both of these investments are accounted for under the measurement alternative method. During 2021, we acquired two strategic investments in privately-held companies for $18.8 million. The aggregate carrying value of all measurement alternative investments where fair value is not readily determinable totaled $80.9 million and $18.8 million at December 31, 2022 and 2021, respectively. There were no adjustments to the carrying value of the measurement alternative method investments for impairment or observable price changes for the periods ended December 31, 2022 or 2021. Restricted Investment Our restricted investment is a trust managed in order to secure repayment of the finance lease obligation associated with Performance Materials' Wickliffe, Kentucky, manufacturing site at maturity. The trust, presented as a restricted investment on our consolidated balance sheets, 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 finance lease obligation that is due in 2027. Because the provisions of the trust provide us the ability, and it is our intent, to hold the investments to maturity, the investments held by the trust are accounted for as held to maturity ("HTM"); therefore, they are held at their amortized cost. 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. At December 31, 2022 and 2021, the carrying value of our restricted investment, which is accounted for as HTM and therefore held at amortized costs, was $78.0 million and $76.1 million, net of an allowance for credit losses of $0.6 million and $0.5 million and included cash of $7.0 million and $4.7 million, respectively. The fair value at December 31, 2022 and 2021 was $74.7 million and $80.0 million, respectively, based on Level 1 inputs. The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses. HTM Debt Securities In millions AA+ AA AA- A A- BBB+ Total December 31, 2022 $ 13.4 — 10.5 13.2 14.1 20.4 $ 71.6 December 31, 2021 $ 13.4 — 10.6 13.3 14.1 20.5 $ 71.9 Debt and Finance Lease Obligations At December 31, 2022 and 2021, the carrying value of finance lease obligations was $101.9 million and $102.4 million, respectively, and the fair value was $106.2 million and $118.6 million, respectively. The fair value of our finance lease obligations is based on the period-end quoted market prices for the obligations, using Level 2 inputs. The fair value of all other finance lease obligations approximates their carrying values. The carrying value, excluding debt issuance fees, of our variable rate debt was $828.0 million and $328.1 million as of December 31, 2022 and 2021, respectively. The carrying value is a reasonable estimate of the fair value of our outstanding debt as our outstanding debt is variable interest rate debt. At December 31, 2022 and 2021, the carrying value of our fixed rate debt was $550.0 million and $850.0 million, respectively, and the fair value was $471.8 million and $843.9 million, respectively, based on Level 2 inputs. Contingent Consideration In connection with the acquisition of certain assets in 2020, we are contingently obligated to make an additional payment for such assets of up to an aggregate amount of $7.0 million. The contingent consideration is payable if certain sales volume targets are achieved prior to the expiration on December 31, 2024, therein referred to as "Revenue Earn-out." The fair value of the five-year Revenue Earn-out consideration was zero and $0.8 million at December 31, 2022 and 2021, respectively . Any changes in the fair value of the contingent consideration liability are recorded in current period earnings as a selling, general, and administrative expense. |
Inventories, net
Inventories, net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net December 31, In millions 2022 2021 Raw materials $ 106.7 $ 48.8 Production materials, stores and supplies 27.9 26.8 Finished and in-process goods 228.2 183.4 Subtotal $ 362.8 $ 259.0 Less: LIFO reserve (27.8) (17.8) Inventories, net $ 335.0 $ 241.2 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant, and Equipment, net Property, plant, and equipment, net consist of the following: December 31, In millions 2022 2021 Machinery and equipment $ 1,162.7 $ 1,113.3 Buildings and leasehold improvements 200.9 177.2 Land and land improvements 24.9 20.4 Construction in progress 120.9 64.4 Total cost $ 1,509.4 $ 1,375.3 Less: accumulated depreciation (710.8) (655.6) Property, plant, and equipment, net (1) $ 798.6 $ 719.7 _______________ (1) This includes finance leases related to machinery and equipment of $94.3 million and $94.5 million, and net carrying value of $25.2 million and $27.7 million; buildings and leasehold improvements of $39.6 million and $29.0 million, and net carrying value of $34.9 million and $26.2 million; and construction in progress of zero and zero at December 31, 2022 and 2021, respectively. Amortization expense associated with these finance leases is included within depreciation expense. The payments remaining under these finance lease obligations are included within Note 13. Depreciation expense was $70.9 million, $70.6 million, and $61.2 million for the years ended December 31, 2022, 2021, and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill Reporting Units In millions Performance Chemicals Performance Materials Total December 31, 2020 $ 441.0 $ 4.3 $ 445.3 Foreign currency translation (3.3) — (3.3) December 31, 2021 $ 437.7 $ 4.3 $ 442.0 Foreign currency translation (33.3) — (33.3) Goodwill acquired (1) 109.8 — 109.8 December 31, 2022 $ 514.2 $ 4.3 $ 518.5 _______________ (1) See Note 16 for more information about our acquisitions. Other Intangible Assets In millions Customer contracts and relationships Brands (1) Developed Technology Other Total Gross Asset Value December 31, 2020 $ 319.5 $ 82.4 $ 73.0 $ 2.7 $ 477.6 Retirements — — — (2.2) (2.2) Foreign currency translation (1.7) (0.7) (0.8) — (3.2) December 31, 2021 317.8 81.7 72.2 0.5 472.2 Acquisitions (2) 88.6 15.0 23.5 — 127.1 Retirements — — — (0.5) (0.5) Foreign currency translation (17.9) (7.5) (7.2) — (32.6) December 31, 2022 $ 388.5 $ 89.2 $ 88.5 $ — $ 566.2 Accumulated Amortization December 31, 2020 $ (73.6) $ (15.8) $ (12.5) $ (2.4) $ (104.3) Amortization (21.7) (4.7) (6.6) (0.2) (33.2) Retirements — — — 2.1 2.1 Foreign currency translation 0.3 0.2 0.3 — 0.8 December 31, 2021 (95.0) (20.3) (18.8) (0.5) (134.6) Amortization (22.2) (4.6) (6.8) — (33.6) Retirements — — — 0.5 0.5 Foreign currency translation 3.4 1.0 1.9 — 6.3 December 31, 2022 $ (113.8) $ (23.9) $ (23.7) $ — $ (161.4) Other intangibles, net (3) $ 274.7 $ 65.3 $ 64.8 $ — $ 404.8 _______________ (1) Represents trademarks, trade names, and know-how. (2) See Note 16 for more information about our acquisitions. (3) The weighted average amortization period remaining for all intangibles is 11.3 years, while the weighted average amortization period remaining for customer contracts and relationships, brands, and developed technology and other intangibles is 11.8 years, 12.3 years, 8.4 years, and zero years, respectively. Intangible assets subject to amortization were allocated among our business segments as follows: December 31, In millions 2022 2021 Performance Materials $ 1.7 $ 1.9 Performance Chemicals 403.1 335.7 Other intangibles, net $ 404.8 $ 337.6 The amortization expense related to our intangible assets in the table above is shown in the table below. Years Ended December 31, In millions 2022 2021 2020 Cost of sales $ — $ — $ 0.1 Selling, general, and administrative expenses 33.6 33.2 32.5 Total amortization expense $ 33.6 $ 33.2 $ 32.6 Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: 2023 - $41.8 million, 2024 - $41.5 million, 2025 - $41.2 million, 2026 - $40.5 million and 2027 - $40.5 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency exchange rates. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management Net Investment Hedges During 2022, we terminated our fixed-to-fixed cross-currency interest rate swaps, accounted for as net investment hedges, and received net proceeds of $14.7 million. The proceeds are presented within cash provided by investing activities within the consolidated statement of cash flows. The $14.7 million gain is reported as a component of the CTA within AOCI on the consolidated balance sheet. Gains on net investment hedges are reclassified to earnings only when the related CTA are required to be reclassified, usually upon the sale or liquidation of the investment. The fair value of our net investment hedge was a net asset (liability) of zero and $1.0 million at December 31, 2022 and December 31, 2021, respectively. During the years ended December 31, 2022, 2021, and 2020, we recognized net interest income associated with this financial instrument of $1.1 million, $0.5 million, and $1.6 million, respectively. Cash Flow Hedges Foreign Currency Exchange Risk Management We manufacture and sell our products in several countries throughout the world and thus, we are exposed to changes in foreign currency exchange rates. To manage the volatility relating to these exposures, we net the exposures on a consolidated basis to take advantage of natural offsets. To manage the remaining exposure, from time to time, we utilize forward currency exchange contracts and zero cost collar option contracts to minimize the volatility to earnings and cash flows resulting from the effect of fluctuating foreign currency exchange rates on export sales denominated in foreign currencies (principally the euro). These contracts are generally designated as cash flow hedges. Designated cash flow hedges entered to minimize foreign currency exchange risk of forecasted revenue transactions are recorded to Net sales on the consolidated statement of operations when the forecasted transaction occurs. As of December 31, 2022, there were $16.9 million in open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was an asset (liability) of $(0.5) million and $0.5 million as of December 31, 2022 and 2021, respectively. Commodity Price Risk Management Certain energy sources used in our manufacturing operations are subject to price volatility caused by weather, supply and demand conditions, economic variables, and other unpredictable factors. This volatility is primarily related to the market pricing of natural gas. To mitigate expected fluctuations in market prices and the volatility to earnings and cash flow resulting from changes to the pricing of natural gas purchases, from time to time, we will enter into swap contracts and zero cost collar option contracts and designate these contracts as cash flow hedges. As of December 31, 2022, we had 1.4 million and 0.5 million mmBTUs (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity swap contracts and zero-cost collar option contracts, respectively, designated as cash flow hedges. As of December 31, 2022, open commodity contracts hedge forecasted transactions until December 2023. The fair value of the outstanding designated natural gas commodity hedge contracts was a net asset (liability) of $(1.6) million and $(0.6) million as of December 31, 2022 and 2021, respectively. Interest Rate Risk Management During the year, we had floating-to-fixed interest rate swaps with a combined notional amount of $166.2 million to manage the variability of cash flows in the interest rate payments associated with our existing LIBOR-based interest payments, effectively converting $166.2 million of our floating rate debt to a fixed rate. Per the terms of these instruments, we received floating rate interest payments based upon a three-month U.S. dollar LIBOR and in return, were obligated to pay interest at a fixed rate of 3.79 percent until July 2023. Due to the repayment of our term loan (refer to Note 10 for more information), during the second quarter of 2022, we terminated these interest rate swap instruments. Upon termination of the interest rate swap instruments, we reclassified a $1.7 million gain from AOCI into Interest income on the consolidated statement of operations. The fair value of outstanding interest rate instruments at December 31, 2022 and December 31, 2021 was an asset (liability) of zero and $(4.0) million, respectively. Effect of Cash Flow and Net Investment Hedge Accounting on AOCI In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI into Net income Years Ended December 31, 2022 2021 2020 2022 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.9 $ 0.8 $ (0.1) $ 2.0 $ 0.3 $ (0.1) Net sales Natural gas contracts 4.4 1.6 (0.5) 6.5 0.7 (1.1) Cost of sales Interest rate swap contracts 5.8 4.8 (5.0) 1.7 — — Interest income Total $ 11.1 $ 7.2 $ (5.6) $ 10.2 $ 1.0 $ (1.2) Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Years Ended December 31, 2022 2021 2020 2022 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 13.9 $ 9.6 $ (11.7) $ 1.1 $ 0.5 $ 1.6 Interest income Total $ 13.9 $ 9.6 $ (11.7) $ 1.1 $ 0.5 $ 1.6 __________ (1) Reclassifications from AOCI to Net Income were zero for all periods presented. Gains and losses would be reclassified from AOCI to Other (income) expense, net. Within the next twelve months, we expect to reclassify $1.7 million of losses from AOCI to earnings before taxes. Fair-Value Measurements The following information is presented for derivative assets and liabilities that are recorded on the consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at fair value between Level 1 and Level 2 during the periods reported. There were no non-recurring fair value measurements related to derivative assets and liabilities on our consolidated balance sheet during the fiscal years ending December 31, 2022, 2021, or 2020, respectively. December 31, 2022 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Liabilities: Natural gas contracts (6) $ — $ 1.6 $ — $ 1.6 Currency exchange contracts (6) — 0.5 — 0.5 Total liabilities $ — $ 2.1 $ — $ 2.1 December 31, 2021 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.5 $ — $ 0.5 Net investment hedge (5) — 2.0 — 2.0 Total assets $ — $ 2.5 $ — $ 2.5 Liabilities: Natural gas contracts (6) $ — $ 0.6 $ — $ 0.6 Net investment hedge (7) — 1.0 — 1.0 Interest rate swap contracts (7) — 4.0 — 4.0 Total liabilities $ — $ 5.6 $ — $ 5.6 __________ (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 current assets" on the consolidated balance sheet. (5) Included within "Other assets" on the consolidated balance sheet. (6) Included within "Accrued expenses" on the consolidated balance sheet. (7) Included within "Other liabilities" on the consolidated balance sheet. |
Debt, including Finance Lease O
Debt, including Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt, including Finance Lease Obligations | Debt, including Finance Lease Obligations Current and long-term debt including finance lease obligations consisted of the following: December 31, In millions, except percentages 2022 2021 Revolving Credit Facility and other lines of credit (1) $ 828.0 $ — Term Loan — 328.1 3.88% Senior Notes due 2028 550.0 550.0 4.50% Senior Notes due 2026 — 300.0 Finance lease obligations (2) 101.9 102.4 Total debt including finance lease obligations $ 1,479.9 $ 1,280.5 Less: debt issuance costs 6.5 10.9 Total debt including finance lease obligations, net of debt issuance costs $ 1,473.4 $ 1,269.6 Less: debt maturing within one year (3) 0.9 19.6 Long-term debt including finance lease obligations $ 1,472.5 $ 1,250.0 _______________ (1) Letters of credit outstanding under the revolving credit facility were $2.3 million and $2.5 million and available funds under the facility were $169.7 million and $497.5 million at December 31, 2022 and 2021, respectively. (2) Refer to Note 13 for more information. (3) Debt maturing within one year is included within "Notes payable and current maturities of long-term debt" on the consolidated balance sheet. Revolving Credit Facility On June 23, 2022, we entered into an Amendment and Restatement Agreement (the “Amendment”) together with the other parties named therein, which amends and restates our existing credit agreement, dated as of March 7, 2016, as amended, supplemented or otherwise modified. Among other things, the Amendment (a) extends the maturity date from October 28, 2025 to June 23, 2027 and increases the aggregate principal amount of revolving commitments thereunder from $500 million to $1 billion, (b) adds Ingevity UK as a borrower under the revolving credit facility, and (c) modifies certain leverage ratio tests and thresholds. Borrowings under the revolving credit facility bear interest at a rate per annum equal to either (a) the applicable term benchmark rate, subject to a zero floor, or (b) a base rate, in each case, plus an applicable margin of 1 percent to 1.75 percent for term benchmark loans and 0.00 percent to 0.75 percent for base rate loans. Fees of $3.0 million, zero, and $2.2 million were incurred in 2022, 2021, and 2020, respectively, to secure the various amendments associated with our revolving credit facility. These fees have been deferred and will be amortized over the term of the facility. Term Loan Repayment On the closing date of the Amendment, we repaid our outstanding term loan in an aggregate principal amount of $323.0 million. Upon repayment, we recognized $1.3 million in outstanding interest and $0.4 million in repayment fees and accelerated the remaining deferred finance fees of $0.4 million. The interest, fees, and accelerated deferred finance fees were recorded to Interest expense on the consolidated statements of operations. Legal expenses associated with this repayment have been recorded as incurred. Senior Notes Senior Note due 2026 On April 27, 2022, we redeemed the $300 million outstanding aggregate principal balance of our 4.50% Senior Notes due in 2026 prior to maturity. The redemption was primarily funded utilizing the outstanding capacity under our revolving credit facility. At redemption, we recognized a $3.4 million redemption premium and accelerated the remaining deferred finance fees of $2.7 million. Both the redemption premium and accelerated deferred finance fees were recorded to Interest expense on the consolidated statements of operations. Legal expenses associated with this redemption have been recorded as incurred. Senior Note due 2028 On October 28, 2020, we issued $550 million aggregate principal amount of 3.88% senior unsecured notes due 2028 (the “2028 Notes”). The 2028 Notes were issued pursuant to an indenture dated as of October 28, 2020, by and among Ingevity, the subsidiary guarantors party thereto and U.S. Bank National Association, as trustee. The net proceeds from the sale of the 2028 Notes, after deducting deferred financing fees of $8.8 million, were used to repay the existing term loan and the outstanding balances under our revolving credit facility. Interest payments on the 2028 Notes are due semiannually in arrears on November 1st and May 1st of each year, beginning on May 1, 2021, at a rate of 3.88 percent per year. The 2028 Notes will mature on November 1, 2028. At any time prior to November 1, 2023, the Issuer may, on any one or more occasions, redeem up to 40 percent of the original aggregate principal amount of Notes (calculated after giving effect to any issuance of Additional Notes) issued under the Indenture, upon not less than 10 nor more than 60 days notice to holders of Notes (with a copy to the Trustee), at a redemption price equal to 103.875 percent of the principal amount of the Notes redeemed, plus accrued but unpaid interest. Debt Covenants Our indentures contain certain customary covenants (including covenants limiting Ingevity's and its restricted subsidiaries’ ability to grant or permit liens on certain property securing debt, declare or pay dividends, make distributions on or repurchase or redeem capital stock, make investments in unrestricted subsidiaries, engage in sale and lease-back transactions, and engage in a consolidation or merger, or sell, transfer or otherwise dispose of all or substantially all of the assets of Ingevity and our restricted subsidiaries, taken as a whole) and events of default (subject in certain cases to customary exceptions, as well as grace and cure periods). The occurrence of an event of default under the 2028 Senior Notes could result in the acceleration of the note of such series and could cause a cross-default resulting in the acceleration of other indebtedness of Ingevity and its subsidiaries. We were in compliance with all covenants under the indenture as December 31, 2022. The credit agreements governing our revolving credit facility contain customary default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-compliance with covenants and cross-defaults to other material indebtedness. The occurrence of an uncured event of default under the credit agreement could result in all loans and other obligations becoming immediately due and payable and our revolving credit facility being terminated. The credit agreement also contains certain customary covenants, including financial covenants. The revolving credit facility financial covenants require Ingevity to maintain on a consolidated basis a maximum total net leverage ratio of 4.0 to 1.0 (which may be increased to 4.5 to 1.0 under certain circumstances) and a minimum interest coverage ratio of 3.0 to 1.0. As calculated per the credit agreement, our net leverage for the four consecutive quarters ended December 31, 2022 were 2.5 and our actual interest coverage for the four consecutive quarters ended December 31, 2022 was 9.9. We were in compliance with all covenants at December 31, 2022. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Equity Incentive Plan The Ingevity Corporation 2016 Omnibus Incentive Plan, adopted on May 15, 2016, grants certain corporate officers, key employees, and non-employee directors of Ingevity and subsidiaries different forms of benefits, including stock options, RSU, DSU, and PSU. The Ingevity Corporation 2016 Omnibus Incentive Plan has a maximum shares reserve of 4,000,000 for the grant of equity awards. As of December 31, 2022, 2,930,182 shares under the Ingevity Corporation 2016 Omnibus Incentive Plan are still available for grants, assuming that Ingevity performs at the target performance level in each year of the three-year performance period for PSU awards. The Leadership Development and Compensation Committee of Ingevity's Board of Directors ("Compensation Committee") determines the long-term incentive mix, including stock options, RSUs, and PSUs, and may authorize new grants annually. We typically issue new common shares for the vesting of awards under our equity incentive plan. Employee Stock Purchase Plan On December 9, 2016, our Compensation Committee and Board of Directors approved the 2017 Ingevity Corporation Employee Stock Purchase Plan ("ESPP"), which was approved by Ingevity’s stockholders on April 27, 2017. The ESPP allows eligible employee participants to purchase no more than 5,000 shares of our common stock at a discount through payroll deductions up to 15 percent of their compensation deducted during the purchase period. However, no participant shall be permitted to purchase common stock with a value greater than $25,000 in any calendar year. The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code. The ESPP consists of a one-month enrollment period preceding the three-month purchase period. Employees purchase shares in each purchase period at 85 percent of the market value of our common stock at either the beginning of the offering period or the end of the purchase period, whichever price is lower. Under the ESPP, a total of 250,000 shares of Ingevity's common stock are reserved and authorized for issuance to participating U.S. employees, as defined by the ESPP, which excludes certain officers of Ingevity. We typically issue treasury shares for issuances under the ESPP. As of December 31, 2022, 56,873 shares under the ESPP are still available for issuance. The initial offering period under the ESPP began on July 1, 2017. During fiscal year 2022, there were 48,389 shares issued under the ESPP at an average price of $58.93. Our share-based compensation and ESPP expense is included in the table below. Years Ended December 31, In millions 2022 2021 2020 Stock option expense $ 1.5 $ 1.7 $ 0.6 ESPP expense 0.7 0.6 0.5 RSU, DSU and PSU expense 13.9 10.0 7.3 Total share-based compensation expense (1) $ 16.1 $ 12.3 $ 8.4 Income tax benefit (3.1) (2.3) (1.5) Total share-based compensation expense, net of tax $ 13.0 $ 10.0 $ 6.9 _______________ (1) Amounts reflected in "Selling, general, and administrative expenses" on the consolidated statements of operations. Stock Options All stock options vest in accordance with vesting conditions set by the Compensation Committee. Stock options granted to date have vesting periods of one Years Ended December 31, Weighted-average assumptions used to calculate expense for stock options 2022 2021 2020 Risk-free interest rate 1.8 % 1.0 % 1.0 % Average life of options (years) 6.0 6.5 6.5 Volatility 40.0 % 46.0 % 33.5 % Dividend yield — — — Fair value per stock option $ 28.80 $ 33.07 $ 15.87 The following table summarizes Ingevity's stock option activity. Number of Options (in thousands) Weighted-average exercise price (per share) Weighted-average remaining contractual term (years) Aggregate intrinsic value (in thousands) Outstanding, December 31, 2021 338 $ 61.34 6.7 $ 5,366 Granted 74 68.23 Exercised (33) 46.79 Forfeited (44) 69.94 Cancelled — — Outstanding, December 31, 2022 335 $ 63.18 6.1 $ 4,100 Exercisable, December 31, 2022 224 $ 61.94 4.9 $ 3,568 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 the period 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 each year end. The amount changes based on the fair market value of Ingevity's stock. As of December 31, 2022, $1.1 million of total unrecognized compensation expense related to stock options is expected to be recognized over a weighted-average period of one year. Restricted Stock Units, Deferred Stock Units, and Performance-based Restricted Stock Units All RSUs, DSUs, and PSUs vest in accordance with vesting conditions set by the Compensation Committee. RSUs and DSUs 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 the 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. The following table summarizes Ingevity's RSUs, DSUs, and PSUs activity. RSUs and DSUs PSUs Number of Units (in thousands) (1) Weighted average grant date fair value (per share) Number of Units (in thousands) (1) Weighted average grant date fair value (per share) Nonvested, December 31, 2021 243 $ 67.36 166 $ 65.91 Granted 179 66.42 83 68.23 Vested (95) 71.62 — — Forfeited (26) 63.32 (56) 82.96 Nonvested, December 31, 2022 (2) 301 $ 6.04 193 $ 61.88 _______________ (1) The number granted represents the number of shares issuable upon vesting of RSUs and DSUs. For PSUs, the number granted represents the number of shares issuable upon vesting, assuming that Ingevity performs at the target performance level in each year of the three-year performance period. (2) Excludes 5,715 non-employee director shares that were vested but unissued at December 31, 2022. As of December 31, 2022, $15.6 million of unrecognized share-based compensation expense related to RSUs, DSUs and PSUs is expected to be recognized over a weighted-average period of 1.2 years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity Accumulated other comprehensive income (loss) Summarized below is the roll forward of AOCI, net of tax. Years Ended December 31, In millions 2022 2021 2020 Foreign currency translation Beginning balance $ 18.4 $ 16.4 $ 1.5 Net gains (losses) on foreign currency translation (74.9) (5.3) 23.9 Gains (losses) on net investment hedges 13.9 9.6 (11.7) Less: tax provision (benefit) 3.2 2.3 (2.7) Net gains (losses) on net investment hedges 10.7 7.3 (9.0) Other comprehensive income (loss), net of tax (64.2) 2.0 14.9 Ending balance $ (45.8) $ 18.4 $ 16.4 Derivative instruments Beginning balance $ (2.1) $ (6.9) $ (3.5) Gains (losses) on derivative instruments 11.1 7.2 (5.6) Less: tax provision (benefit) 2.6 1.7 (1.3) Net gains (losses) on derivative instruments 8.5 5.5 (4.3) (Gains) losses reclassified to net income (10.2) (1.0) 1.2 Less: tax (provision) benefit (2.4) (0.3) 0.3 Net (gains) losses reclassified to net income (7.8) (0.7) 0.9 Other comprehensive income (loss), net of tax 0.7 4.8 (3.4) Ending balance $ (1.4) $ (2.1) $ (6.9) Pension and other postretirement benefits Beginning balance $ (3.2) $ (4.8) $ (3.0) Unrealized actuarial gains (losses) and prior service (costs) credits 4.4 1.9 (2.7) Less: tax provision (benefit) 1.0 0.4 (0.6) Net actuarial gains (losses) and prior service (costs) credits 3.4 1.5 (2.1) Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income 0.3 0.2 0.3 Less: tax (provision) benefit 0.1 0.1 — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income 0.2 0.1 0.3 Other comprehensive income (loss), net of tax 3.6 1.6 (1.8) Ending balance $ 0.4 $ (3.2) $ (4.8) Total AOCI ending balance at December 31 $ (46.8) $ 13.1 $ 4.7 Reclassifications of accumulated other comprehensive income (loss) The table below provides details about the reclassifications from AOCI and the affected line items on the consolidated statement of operations for each of the periods presented. Years Ended December 31, In millions 2022 2021 2020 Derivative Instruments Currency exchange contracts (1) $ 2.0 $ 0.3 $ (0.1) Natural gas contracts (2) 6.5 0.7 (1.1) Interest rate swaps (4) 1.7 — — Total before tax 10.2 1.0 (1.2) (Provision) benefit for income taxes (2.4) (0.3) 0.3 Amount included within net income (loss) $ 7.8 $ 0.7 $ (0.9) Pension and other postretirement benefits Amortization of prior service credit (costs) (2) $ (0.1) $ (0.1) $ (0.1) Amortization of unrecognized net actuarial and other gains (losses) (3) — (0.1) (0.1) Recognized gain (loss) due to curtailment and settlement (2) (0.2) — (0.1) Total before tax (0.3) (0.2) (0.3) (Provision) benefit for income taxes 0.1 0.1 — Amount included within net income (loss) $ (0.2) $ (0.1) $ (0.3) _______________ (1) Included within "Net sales" on the consolidated statements of operations. (2) Included within "Cost of sales" on the consolidated statements of operations. (3) Included within "Other (income) expense, net" on the consolidated statements of operations. (4) Included within "Interest income" on the consolidated statements of operations. Share Repurchases On July 25, 2022, our Board of Directors authorized the repurchase of up to $500.0 million of our common stock (the "2022 Authorization"), and rescinded the prior outstanding repurchase authorization with respect to the shares that remained unused under the prior authorization. Shares under the current repurchase authorization 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, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the year ended December 31, 2022, we repurchased $145.2 million in common stock, representing 2,112,463 shares of our common stock at a weighted average cost per share of $68.73. At December 31, 2022, $444.7 million remained unused under our Board-authorized repurchase program. During the year ended December 31, 2021 and 2020, we repurchased $109.4 million and $88.0 million in common stock, representing 1,421,379 and 1,533,442 shares of our common stock at a weighted average cost per share of $76.98 and $57.38, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We have both operating and finance leases, with the majority being operating lease agreements related to rail cars, tanks, equipment, and real estate. Supplemental consolidated balance sheet information related to our leases is as follows: December 31, In millions Financial Statement Caption 2022 2021 Assets Operating lease assets, net (1) Operating lease assets, net $ 56.6 $ 52.4 Finance lease assets, net (2) Property, plant, and equipment, net 60.1 53.9 Finance lease assets, net (2) Other assets, net 0.1 0.3 Total lease assets $ 116.8 $ 106.6 Liabilities Current Operating lease liabilities (3) Current operating lease liabilities $ 16.5 $ 17.4 Finance lease liabilities Notes payable and current maturities of long-term debt 0.9 0.8 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 40.8 36.2 Finance lease liabilities Long-term debt including finance lease obligations 101.0 101.6 Total lease liabilities $ 159.2 $ 156.0 _______________ (1) Operating lease assets, net are recorded net of accumulated amortization of $40.8 million, and $35.5 million as of December 31, 2022, and 2021, respectively. (2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $73.8 million and $1.4 million, as of December 31, 2022, and $69.6 million and $1.3 million, as of December 31, 2021. (3) Operating lease liabilities include $0.2 million, and $0.2 million of accrued interest, as of December 31, 2022 and 2021, respectively. Finance Leases Our finance lease obligations of $101.9 million, and $102.4 million at December 31, 2022 and 2021, respectively, primarily consist of three leases. The first obligation of $80.0 million, at December 31, 2022, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing site, which is due at maturity in 2027. The second obligation of $21.6 million, at December 31, 2022, is owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years. The third obligation of $0.3 million, at December 31, 2022, is owed to the Industrial Development Board of the city of Greenville, Alabama, associated with Performance Chemicals' Greenville, Alabama, manufacturing site, which is due to mature in 2028. We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing facility. The lease is with the Development Authority of Burke County (“Authority”). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets. Components of lease cost are as follows: Years Ended December 31, In millions Financial Statement Caption 2022 2021 2020 Operating lease cost (1) Cost of sales $ 19.9 $ 19.5 $ 19.4 Selling, general, and administrative expenses 1.4 1.4 1.9 Finance lease cost Amortization of leased assets Cost of sales $ 3.0 $ 3.3 $ 2.6 Selling, general, and administrative expenses 1.6 1.6 0.8 Interest on lease liabilities Interest expense, net 7.5 7.5 6.8 Net lease cost (2) $ 33.4 $ 33.3 $ 31.5 _______________ (1) Includes short-term leases and variable lease costs, which are immaterial. (2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial. Maturity of Lease Liabilities December 31, 2022 In millions Operating leases Finance leases Total 2023 $ 18.8 $ 8.3 $ 27.1 2024 15.5 8.4 23.9 2025 11.8 8.4 20.2 2026 8.2 8.5 16.7 2027 5.8 85.5 91.3 2028 and thereafter 3.9 19.6 23.5 Total lease payments $ 64.0 $ 138.7 $ 202.7 Less: Interest 6.7 36.8 43.5 Present value of lease liabilities (1) $ 57.3 $ 101.9 $ 159.2 _______________ (1) As of December 31, 2022, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases. Lease Term and Discount Rate December 31, In millions, except percentages 2022 2021 Weighted-average remaining lease term (years) Operating leases 4.4 4.1 Finance leases 12.4 6.9 Weighted-average discount rate Operating leases 5.16 % 4.97 % Finance leases 7.19 % 7.18 % Other Information Years Ended December 31, In millions 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.8 $ 20.5 $ 18.5 Operating cash flows from finance leases 7.5 7.5 6.8 Financing cash flows from finance leases 0.9 0.7 0.7 |
Leases | Leases We have both operating and finance leases, with the majority being operating lease agreements related to rail cars, tanks, equipment, and real estate. Supplemental consolidated balance sheet information related to our leases is as follows: December 31, In millions Financial Statement Caption 2022 2021 Assets Operating lease assets, net (1) Operating lease assets, net $ 56.6 $ 52.4 Finance lease assets, net (2) Property, plant, and equipment, net 60.1 53.9 Finance lease assets, net (2) Other assets, net 0.1 0.3 Total lease assets $ 116.8 $ 106.6 Liabilities Current Operating lease liabilities (3) Current operating lease liabilities $ 16.5 $ 17.4 Finance lease liabilities Notes payable and current maturities of long-term debt 0.9 0.8 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 40.8 36.2 Finance lease liabilities Long-term debt including finance lease obligations 101.0 101.6 Total lease liabilities $ 159.2 $ 156.0 _______________ (1) Operating lease assets, net are recorded net of accumulated amortization of $40.8 million, and $35.5 million as of December 31, 2022, and 2021, respectively. (2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $73.8 million and $1.4 million, as of December 31, 2022, and $69.6 million and $1.3 million, as of December 31, 2021. (3) Operating lease liabilities include $0.2 million, and $0.2 million of accrued interest, as of December 31, 2022 and 2021, respectively. Finance Leases Our finance lease obligations of $101.9 million, and $102.4 million at December 31, 2022 and 2021, respectively, primarily consist of three leases. The first obligation of $80.0 million, at December 31, 2022, is owed to the city of Wickliffe, Kentucky, associated with Performance Materials' Wickliffe, Kentucky, manufacturing site, which is due at maturity in 2027. The second obligation of $21.6 million, at December 31, 2022, is owed to the lessor of our corporate headquarters in North Charleston, South Carolina. The lease commenced in July 2020, with a term of 15 years. The third obligation of $0.3 million, at December 31, 2022, is owed to the Industrial Development Board of the city of Greenville, Alabama, associated with Performance Chemicals' Greenville, Alabama, manufacturing site, which is due to mature in 2028. We also have a finance lease obligation due in 2031 for certain assets located at our Performance Materials' Waynesboro, Georgia, manufacturing facility. The lease is with the Development Authority of Burke County (“Authority”). The Authority established the sale-leaseback of these assets by issuing an industrial development revenue bond. The bond was purchased by Ingevity and the obligations under the finance lease remain with Ingevity. Accordingly, we offset the finance lease obligation and bond on our consolidated balance sheets. Components of lease cost are as follows: Years Ended December 31, In millions Financial Statement Caption 2022 2021 2020 Operating lease cost (1) Cost of sales $ 19.9 $ 19.5 $ 19.4 Selling, general, and administrative expenses 1.4 1.4 1.9 Finance lease cost Amortization of leased assets Cost of sales $ 3.0 $ 3.3 $ 2.6 Selling, general, and administrative expenses 1.6 1.6 0.8 Interest on lease liabilities Interest expense, net 7.5 7.5 6.8 Net lease cost (2) $ 33.4 $ 33.3 $ 31.5 _______________ (1) Includes short-term leases and variable lease costs, which are immaterial. (2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial. Maturity of Lease Liabilities December 31, 2022 In millions Operating leases Finance leases Total 2023 $ 18.8 $ 8.3 $ 27.1 2024 15.5 8.4 23.9 2025 11.8 8.4 20.2 2026 8.2 8.5 16.7 2027 5.8 85.5 91.3 2028 and thereafter 3.9 19.6 23.5 Total lease payments $ 64.0 $ 138.7 $ 202.7 Less: Interest 6.7 36.8 43.5 Present value of lease liabilities (1) $ 57.3 $ 101.9 $ 159.2 _______________ (1) As of December 31, 2022, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases. Lease Term and Discount Rate December 31, In millions, except percentages 2022 2021 Weighted-average remaining lease term (years) Operating leases 4.4 4.1 Finance leases 12.4 6.9 Weighted-average discount rate Operating leases 5.16 % 4.97 % Finance leases 7.19 % 7.18 % Other Information Years Ended December 31, In millions 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.8 $ 20.5 $ 18.5 Operating cash flows from finance leases 7.5 7.5 6.8 Financing cash flows from finance leases 0.9 0.7 0.7 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Retirement Plans | Retirement Plans Defined Contribution Plans Eligible employees may participate in our retirement savings plan ("Plan"), a qualified salary-reduction plan under Section 401(k) of the U.S. Internal Revenue Code by contributing a portion of their compensation. For non-union eligible employees participating in the Plan, Ingevity makes matching contributions up to six percent of the employee deferral. In addition to the matching contributions, Ingevity also makes a non-elective contribution of three percent of eligible compensation per payroll for non-union employees. For eligible union employees participating in the Plan, Ingevity makes matching contributions up to 100 percent of the first three percent of the employee deferrals and 50 percent on the next two percent of deferrals. Employee contributions, as well as Ingevity’s match contributions, are made to funds designated by the participant, none of which are based on Ingevity’s common stock. Charges associated with employer contributions to the Plan were $11.2 million, $9.5 million, and $10.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. Defined Benefit Pension and Postretirement Plans Ingevity has both established qualified and non-qualified benefit plans to provide pension and post-retirement benefits to certain employees and retirees. Our retirement obligations consist of accrued defined benefit obligations earned by Ingevity domestic hourly union employees; 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. We are required to recognize on 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. The following tables summarize the weighted average assumptions used and components of our defined benefit postretirement plans at December 31, 2022 and 2021. Pensions Other Benefits December 31, In millions, except percentages 2022 2021 2022 2021 Following are the weighted average assumptions used to determine the benefit obligations at December 31: Discount rate - qualified benefit plans 5.00 % 2.75 % — % — % Discount rate - non-qualified benefit plans 5.00 % 2.65 % 4.90 % 2.60 % Rate of compensation increase N/A N/A N/A N/A Change in projected benefit obligation Projected benefit obligation at January 1 $ 45.0 $ 45.0 $ 0.9 $ 1.0 Service cost 1.5 1.7 — — Interest cost 1.2 1.1 — — Actuarial loss (gain) (14.2) (2.1) (0.1) (0.1) Plan amendments 0.5 0.3 (0.1) — Benefit payments (1.2) (1.0) — — Projected benefit obligation at December 31 (1) 32.8 45.0 0.7 0.9 Change in plan assets Fair value of plan asset at January 1 31.8 31.2 — — Actual return on plan assets (7.8) 1.4 — — Company contributions 0.3 0.2 — — Benefit payments (1.2) (1.0) — — Fair value of plan assets at December 31 23.1 31.8 — — Funded Status Net Funded Status of the Plan (Liability) $ (9.7) $ (13.2) $ (0.7) $ (0.9) Pensions Other Benefits December 31, In millions 2022 2021 2022 2021 Amount recognized on the consolidated balance sheets: Pension and other postretirement benefit asset (2) $ — $ — $ — $ — Pension and other postretirement benefit (liability) (2) (9.7) (13.2) (0.7) (0.9) Total Net Funded Status of the Plan (Liability) $ (9.7) $ (13.2) $ (0.7) $ (0.9) _______________ (1) The accumulated benefit obligation for all years presented equals the projected benefit obligation for each plan, respectively. (2) Asset balance is included within "Other assets" and liability balances are included within "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: Years Ended December 31, Pensions Other Benefits Total In millions 2022 2021 2020 2022 2021 2020 2022 2021 2020 Current year net actuarial loss (gain) $ (4.7) $ (2.1) $ 2.3 $ (0.1) $ (0.1) $ 0.1 $ (4.8) $ (2.2) $ 2.4 Current year prior service cost (credit) 0.5 0.3 0.3 (0.1) — — 0.4 0.3 0.3 Amortization of net actuarial (loss) gain and prior service (cost) credit (0.1) (0.2) (0.2) — — — (0.1) (0.2) (0.2) Settlement and curtailment (charges) income, net (0.2) — (0.1) — — — (0.2) — (0.1) Total recognized in other comprehensive (income) loss, before taxes (4.5) (2.0) 2.3 (0.2) (0.1) 0.1 (4.7) (2.1) 2.4 Total recognized in other comprehensive (income) loss, after taxes $ (3.4) $ (1.5) $ 1.7 $ (0.2) $ (0.1) $ 0.1 $ (3.6) $ (1.6) $ 1.8 Amounts Recognized in Accumulated Other Comprehensive Income (Loss) The amounts in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are as follows: December 31, Pensions Other Benefits Total In millions 2022 2021 2022 2021 2022 2021 Net actuarial (gain) loss $ (1.6) $ 3.1 $ (0.1) $ 0.1 $ (1.7) $ 3.2 Prior service cost (credit) 1.3 1.0 (0.1) — 1.2 1.0 Accumulated other comprehensive (income) loss, before taxes (0.3) 4.1 (0.2) 0.1 (0.5) 4.2 Accumulated other comprehensive (income) loss, after taxes $ (0.2) $ 3.1 $ (0.2) $ 0.1 $ (0.4) $ 3.2 Net Annual Benefit Costs Assumptions The following table summarizes the weighted-average assumptions used for the components of net annual benefit cost: Years Ended December 31, Pensions Other Benefits In millions, except percentages 2022 2021 2020 2022 2021 2020 Discount rate - qualified benefit plans (1) 2.75 % 2.45 % 3.15 % — % — % — % Discount rate - non-qualified benefit plans (1) 2.65 % 2.30 % 3.10 % 2.60 % 2.20 % 3.05 % Expected return on plan assets 5.50 % 4.50 % 4.50 % N/A N/A N/A Components of net annual benefit cost: Service cost (2) $ 1.5 $ 1.7 $ 1.6 $ — $ — $ — Interest cost (3) 1.2 1.1 1.2 — — — Expected return on plan assets (3) (1.7) (1.4) (1.2) — — — Amortization of prior service cost (2) 0.2 0.1 0.1 — — — Amortization of net actuarial and other (gain) loss (3) — 0.1 0.1 — — — Recognized (gain) loss due to curtailments (4) 0.2 — 0.1 — — — Net annual benefit cost $ 1.4 $ 1.6 $ 1.9 $ — $ — $ — _______________ (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. (2) Amounts are recorded to "Cost of sales" on our consolidated statements of operations consistent with the employee compensation costs that participate in the plan. (3) Amounts are recorded to "Other (income) expense, net" on our consolidated statements of operations. (4) Our pension and postretirement settlement and curtailment (income) charges are related to the acceleration of prior service costs as a result of a reduction in the number of participants within the Union Hourly defined benefit pension plan during 2022 and 2020. Contributions We made no voluntary cash contributions to our domestic hourly union defined benefit pension plan in the years ended December 31, 2022, 2021, and 2020. There are no required cash contributions to our domestic hourly union defined benefit pension plan in fiscal 2022, and we currently have no plans to make any voluntary cash contributions in fiscal 2022. Fair Value Hierarchy Following is a description of the valuation methodologies used for the investment measure at fair value. See Note 5 for the definition of fair value and the descriptions of Level 1, 2, and 3 in the fair value hierarchy. • Cash and short-term funds — Cash and quoted short-term instruments are valued at the closing price or the amount held on deposit by the custodian bank. • Mutual Funds — Mutual funds are valued at the closing price reported on the major market on which the individual securities are traded. Substantially all mutual funds are classified within Level 1 of the valuation hierarchy. • Pooled Funds — These investment vehicles are valued using the Net Asset Value (NAV) provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. • Other — Other assets are represented by investments in a series limited partnership. These assets are not actively traded and are classified as Level 2. The following table presents our fair value hierarchy for our major categories of pension plan assets by asset class. In millions December 31, 2022 Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Cash and short-term investments $ 0.2 $ 0.2 $ — $ — $ — Mutual funds 6.7 6.7 — — — Pooled funds 14.5 — — — 14.5 Other 1.7 — 1.7 — — Total assets $ 23.1 $ 6.9 $ 1.7 $ — $ 14.5 In millions December 31, 2021 Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Cash and short-term investments $ 0.2 $ 0.2 $ — $ — $ — Mutual funds 9.2 9.2 — — — Pooled funds 20.3 — — — 20.3 Other 2.1 — 2.1 — — Total assets $ 31.8 $ 9.4 $ 2.1 $ — $ 20.3 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 2023 $ 1.1 $ — 2024 1.2 — 2025 1.4 — 2026 1.5 — 2027 1.6 — 2028-2032 10.2 0.2 Sensitivity Analysis A one-half percent increase in the assumed discount rate would have decreased our qualified pension benefit obligations by $2.0 million at December 31, 2022 and decreased our qualified pension benefit costs by $(0.1) million for 2022. A one-half percent decrease in the assumed discount rate would have increased our qualified pension obligations by $2.2 million at December 31, 2022 and increased our qualified pension benefit cost by $0.2 million for 2022. A one-half percent increase in the assumed expected long-term rate of return on plan assets would have decreased our qualified pension costs by $0.2 million for 2022. A one-half percent decrease in the assumed expected long-term rate of return on plan assets would have increased our qualified pension costs by $0.2 million for 2022. |
Restructuring and Other (Income
Restructuring and Other (Income) Charges, net | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other (Income) Charges, net | Restructuring and Other (Income) Charges, net Detail on the restructuring charges and other (income) charges, net is provided below. Years Ended December 31, In millions 2022 2021 2020 Severance and other employee-related costs (1) $ — $ 0.1 $ 6.4 Other (2) — — 2.1 Restructuring charges — 0.1 8.5 Business transformation costs 13.8 16.1 10.0 Other (income) charges, net 13.8 16.1 10.0 Total Restructuring and other (income) charges, net $ 13.8 $ 16.2 $ 18.5 _______________ (1) Represents severance and employee benefit charges. (2) Primarily represents costs associated with an impairment of an operating lease asset that is no longer in use and other miscellaneous exit costs. Other (income) charges, net Business transformation costs In 2020, we embarked upon a business transformation initiative that includes the implementation of an upgraded enterprise resource planning ("ERP") system. This new ERP system will equip our employees with standardized processes and secure integrated technology that enable us to better understand and meet our customers' needs and compete in the marketplace. The implementation of our new ERP is expected to occur in multiple phases over two years, beginning with our pilot deployment which occurred during the first quarter of 2022. This business transformation requires the integration of the new ERP system with multiple new and existing information systems and business processes in order to maintain the accuracy of our books and records and to provide our management team with real-time information important to the operation of our business. Such an implementation initiative is a major financial undertaking and requires substantial time and the attention of management and key employees. Costs incurred, during the years ended December 31, 2022, 2021, and 2020, of $13.8 million, $16.1 million, and $10.0 million, respectively, represent costs directly associated with the business transformation initiative that, in accordance with GAAP, cannot be capitalized. Over the course of this initiative, which we expect to complete in 2023, we anticipate incurring approximately $90-95 million of total costs, which includes $45-50 million of non-capitalizable costs. Restructuring Reserves |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Ozark Materials On October 3, 2022, we completed our acquisition of Ozark Materials, LLC (“OM”), and Ozark Logistics, LLC (“OL” and, together with OM, “Ozark Materials”), pursuant to that certain Equity Purchase Agreement (the “Purchase Agreement”), by and among Ingevity, Ozark Materials and Ozark Holdings, Inc. (“Seller”). In accordance with the Purchase Agreement, we acquired from Seller, all of the issued and outstanding limited liability company membership interests of Ozark Materials for a purchase price of $325.0 million, subject to customary adjustments for working capital, indebtedness and transaction expenses (the "Acquisition"). The Acquisition is being integrated into our Performance Chemicals segment and is included within our Pavement Technologies product line. We funded the Acquisition through a combination of borrowings under our existing credit facilities and cash on hand. The Acquisition is not considered significant to our Consolidated Financial Statements for the year ended December 31, 2022; therefore, proforma results of operations have not been presented. Preliminary Purchase Price Allocation Ozark Materials is considered an acquisition of a business under business combinations accounting guidance, and therefore we applied acquisition accounting. Acquisition accounting requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. The aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair values at the acquisition date using primarily Level 2 and Level 3 inputs. These Level 2 and Level 3 valuation inputs include an estimate of future cash flows and discount rates. Additionally, estimated fair values are based, in part, upon outside appraisals for certain assets, including specifically-identified intangible assets. See Note 5 for an additional explanation of Level 2 and Level 3 inputs. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, is based upon preliminary information and is subject to change within the measurement period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. During the measurement period, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date, we will revise the preliminary purchase price allocation. The effect of measurement period adjustments to the estimated fair values will be reflected as if the adjustments had been completed on the acquisition date. The impact of all changes that do not qualify as measurement period adjustments will be included in current period earnings. Preliminary Purchase Price Allocation In millions Weighted Average Amortization Period Fair Value Cash and cash equivalents $ 8.0 Accounts receivable 28.7 Inventories (1) 48.4 Prepaid and other current assets 2.0 Property, plant and equipment 43.1 Intangible assets (2) Brands 10 years 15.0 Customer relationships 15 years 88.6 Developed technology 7 years 23.5 Goodwill (3) 109.8 Other assets, including operating leases 0.1 Total fair value of assets acquired $ 367.2 Accounts payable 13.9 Other liabilities 2.6 Total fair value of liabilities assumed $ 16.5 Less: Cash acquired (8.0) Plus: Amounts due from Seller 1.8 Total cash paid, less cash and restricted cash acquired $ 344.5 _______________ (1) Fair value of finished goods inventories acquired included a step-up in the value of $1.8 million, of which $0.9 million was expensed in the year ended December 31, 2022. The expense is included within "Cost of sales" on the consolidated statement of operations. Inventories are accounted for on a LIFO basis of accounting. (2) The aggregate amortization expense was $2.7 million for the year ended December 31, 2022. Estimated amortization expense is as follows: 2023 - $10.9 million, 2024 - $10.9 million, 2025 - $10.7 million, 2026 - $10.0 million, and 2027 - $10.0 million. (3) Goodwill largely consists of expected cost synergies and economies of scale resulting from the business combination. We expect the full amount to be deductible for income tax purposes. This acquired goodwill has been included within our Performance Chemicals reporting unit. See Note 8 for further information regarding our allocation of goodwill among our reporting segments. Acquisition and other-related costs Costs incurred to complete and integrate acquisitions and other strategic investments are expensed as incurred on our consolidated statement of operations. The following table summarizes the costs incurred associated with these combined activities. Years Ended December 31, In millions 2022 2021 2020 Legal and professional service fees $ 5.0 $ 0.6 $ 1.8 Acquisition-related costs 5.0 0.6 1.8 Inventory fair value step-up amortization (1) 0.9 — — Acquisition and other-related costs $ 5.9 $ 0.6 $ 1.8 _______________ (1) Included within "Cost of sales" on the consolidated statement of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Domestic and foreign components of Income (loss) before income taxes are shown below: Years Ended December 31, In millions 2022 2021 2020 Domestic $ 200.0 $ 107.4 $ 191.2 Foreign 69.6 55.4 43.9 Income (loss) before income taxes $ 269.6 $ 162.8 $ 235.1 The provision (benefit) for income taxes consisted of: Years Ended December 31, In millions 2022 2021 2020 Current Federal $ 41.7 $ 31.1 $ 22.5 State and local 6.3 2.7 5.1 Foreign 15.0 15.5 9.9 Total current $ 63.0 $ 49.3 $ 37.5 Deferred Federal $ (4.6) $ (15.3) $ 15.3 State and local (1.7) (1.6) (2.7) Foreign 1.3 12.3 3.6 Total deferred $ (5.0) $ (4.6) $ 16.2 Provision (benefit) for income taxes $ 58.0 $ 44.7 $ 53.7 We recorded $4.5 million, $4.2 million, and $(4.3) million of deferred tax provision (benefit) expense within components of other comprehensive income during the years ended December 31, 2022, 2021, and 2020, 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: Years Ended December 31, In millions, except percentage data 2022 2021 2020 Federal statutory tax rate $ 56.6 $ 34.2 $ 49.4 State and local income taxes, net of federal benefit 5.6 2.4 5.1 Foreign income tax rate differential 2.2 2.2 1.5 Changes in valuation allowance 0.1 0.8 (1.9) Deferred adjustments 0.1 0.3 (1.4) Legislative tax rate change 0.8 13.9 5.3 Excess share-based compensation (0.1) (0.3) 0.4 Federal and state tax credits (4.8) (4.9) (4.0) Tax on dividends, deemed dividends, and GILTI 2.7 0.1 0.1 Foreign derived intangible income (6.2) (5.1) (3.1) Officers compensation 0.6 0.3 0.5 Other 0.4 0.8 1.8 Provision (benefit) for income taxes $ 58.0 $ 44.7 $ 53.7 Effective tax rate 21.5 % 27.5 % 22.8 % The decrease in our effective tax rate from 2021 to 2022 was primarily driven by the recognition of the United Kingdom's ("UK") six percent legislative rate increase in 2021. During 2022, our effective tax rate benefited from reduced taxes at our China manufacturing plant associated with the purchases of our sustainably sourced raw material feedstock. This reduction was partially offset by an increase in foreign earnings deemed taxable in the U.S. mainly due to final U.S. foreign tax credit regulations modifying the definition of what foreign taxes qualify as creditable taxes, denying Brazilian taxes paid as qualifying taxes. The increase in our effective tax rate from 2020 to 2021 was driven by a six percent legislative tax rate increase in the UK. The impacts of this increase were partially offset by the benefit in excess share-based compensation driven by the rebound of stock prices in 2021 compared to 2020, as well as the increased benefit associated with our foreign derived intangible income ("FDII"). This increased benefit from FDII was driven by higher taxable income as a result of reduced capital spend and deferral of litigation expenses for tax purposes. Additionally, in depth research and development studies conducted, as well as amended state return filing, further increased the rate benefit associated with our federal and state credits in 2021, which also helped to partially offset the negative impacts of the UK rate change. The significant components of deferred tax assets and liabilities are as follows: December 31, In millions 2022 2021 Deferred tax assets: Employee benefits $ 19.1 $ 19.0 Net operating losses 10.5 11.6 Leases 17.2 16.5 Litigation verdict accrual 19.9 19.9 Research and experimental expenses 8.9 — Other 14.4 12.0 Total deferred tax assets $ 90.0 $ 79.0 Valuation allowance (9.2) (8.8) Total deferred tax assets, net of valuation allowance $ 80.8 $ 70.2 Deferred tax liabilities: Fixed assets $ 116.7 $ 108.6 Intangibles 34.6 43.7 Inventory 7.3 6.5 Leases 16.9 16.3 Other 6.1 2.9 Total deferred tax liabilities $ 181.6 $ 178.0 Net deferred tax asset (liability) (1) $ (100.8) $ (107.8) _______________ (1) Presentation in the table above is on a gross basis, however, due to jurisdictional netting, our net deferred tax asset and liability recorded on the consolidated balance sheets is $5.7 million and $106.5 million, respectively, as of December 31, 2022, and $6.8 million and $114.6 million, respectively, as of December 31, 2021. Our net deferred tax liability decreased $7.0 million at December 31, 2022 as compared to December 31, 2021. As part of Tax Cuts and Jobs Act ("TCJA") enacted in December 2017 under Internal Revenue Code Section 174, beginning in 2022 we are required to capitalize and amortize research and experimental expenditures, thus creating a new deferred tax asset for 2022. The increase in deferred tax assets was slightly offset by an increase in the deferred fixed asset liability as a result of U.S. bonus depreciation, UK super deduction, as well as the 2022 acquisition of Ozark Materials. Impacts of foreign currency fluctuations, most notably in the UK, decreased the overall deferred tax liability by $6.6 million. We have deferred tax assets, including net operating loss and state tax credit carryforwards, which are available to offset future taxable income. 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. In 2022, we recognized tax expense of $0.1 million due to our expected inability to recognize the benefit associated with state tax credits prior to their expiration. At December 31, 2022, foreign net operating loss carryforwards totaled $35.3 million. Of this total, $0.1 million will expire in 2 years and $35.2 million has no expiration date. Due to the global nature of our operations, a portion of our cash is held outside the U.S. The cash and cash equivalent balance at December 31, 2022 included $71.7 million held by our foreign subsidiaries. At December 31, 2022, 2021, and 2020, no deferred income taxes have been provided for our 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, the opportunity to use foreign tax credits, and the potential impact of U.S. Tax Reform. Positive undistributed earnings considered to be indefinitely reinvested totaled $84.5 million at December 31, 2022. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Years ended December 31, In millions 2022 2021 2020 Balance at beginning of year $ 0.3 $ 0.1 $ 0.1 Additions for tax positions related to prior years 0.5 0.3 — Reduction for lapse of statute of limitation — (0.1) — Balance at end of year $ 0.8 $ 0.3 $ 0.1 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings On July 19, 2018, we filed suit against BASF Corporation (“BASF”) in the United States District Court for the District of Delaware (the “Delaware Proceeding”) alleging BASF infringed Ingevity’s patent covering canister systems used in the control of automotive gasoline vapor emissions (U.S. Patent No. RE38,844) (the “844 Patent”). On February 14, 2019, BASF asserted counterclaims against us in the Delaware Proceeding, alleging two claims for violations of U.S. antitrust law (one for exclusive dealing and the other for tying) as well as a claim for tortious interference with an alleged prospective business relationship between BASF and a BASF customer (the “BASF Counterclaims”). The BASF Counterclaims relate to our enforcement of the 844 Patent and our entry into several supply agreements with customers of its fuel vapor canister honeycombs. The U.S. District Court dismissed our patent infringement claims on November 18, 2020, and the case proceeded to trial on the BASF Counterclaims in September 2021. On September 15, 2021, a jury in the Delaware Proceeding issued a verdict in favor of BASF on the BASF Counterclaims and awarded BASF damages of approximately $28.3 million, which will be trebled under U.S. antitrust law to approximately $85.0 million when the court enters judgment. In addition, BASF may seek pre- and post-judgment interest and attorneys’ fees and costs in amounts that they will have to support at a future date. We disagree with the verdict, including the court’s application of the law, and we intend to seek judgment as a matter of law in the Delaware Proceeding post-trial briefing stage and on appeal, if necessary. In addition, we intend to challenge the U.S. District Court’s November 2020 dismissal of our patent infringement claims against BASF. Ingevity believes in the strength of its intellectual property and the merits of its position and intends to pursue all legal relief available to challenge these outcomes in the Delaware Proceeding. Final resolution of these matters could take up to eighteen months. As a result of the jury's $85.0 million verdict, we have accrued the full amount as of December 31, 2022. The amount accrued for this matter is included within Other liabilities on the consolidated balance sheet as of December 31, 2022, and the charge was included within Other (income) expense, net on the consolidated statement of operations for the year ended December 31, 2021. The amount of any liability we may ultimately incur related to the Delaware Proceeding could be more or less than the amount accrued. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
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 in Note 1. Years Ended December 31, In millions 2022 2021 2020 Net sales Performance Materials $ 548.5 $ 516.8 $ 510.0 Performance Chemicals 1,119.8 874.7 706.1 Total net sales (1) $ 1,668.3 $ 1,391.5 $ 1,216.1 Segment EBITDA (2) Performance Materials $ 252.2 $ 249.4 $ 249.2 Performance Chemicals 200.4 172.8 148.7 Total Segment EBITDA (2) $ 452.6 $ 422.2 $ 397.9 Interest expense (61.8) (51.7) (47.1) Interest income 7.5 4.0 4.9 (Provision) benefit for income taxes (58.0) (44.7) (53.7) Depreciation and amortization - Performance Materials (36.1) (36.8) (31.2) Depreciation and amortization - Performance Chemicals (72.7) (73.1) (69.0) Pension and postretirement settlement and curtailment (charges) income, net (3) (0.2) — (0.1) Restructuring and other income (charges), net (4) (13.8) (16.2) (18.5) Acquisition and other-related costs (5) (5.9) (0.6) (1.8) Litigation verdict charge (6) — (85.0) — Net income (loss) $ 211.6 $ 118.1 $ 181.4 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. (2) Segment EBITDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, research and technical expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense, net, associated with corporate debt facilities, income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other-related costs, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges, net. (3) For all years, the charges relate to the Performance Materials segment. Our pension and postretirement settlement and curtailment charges (income) are related to the acceleration of prior service costs, as a result of a reduction in the number of participants within the Union Hourly defined benefit pension plan. These are excluded from our segment results because we consider these costs to be outside our operational performance. We continue to include the service cost, amortization of prior service cost, interest costs, expected return on plan assets, and amortized actual gains and losses in our segment EBITDA. (4) For the year ended December 31, 2022, charges of $4.8 million and $9.0 million relate to the Performance Materials segment and Performance Chemicals segment, respectively. For the year ended December 31, 2021, charges of $6.0 million and $10.2 million related to the Performance Materials segment and Performance Chemicals segment, respectively. For the year ended December, 31, 2020, charges of $7.4 million and $11.1 million relate to the Performance Materials segment and Performance Chemicals segment, respectively. Information about how restructuring and other (income) charges relate to our reporting segments is discussed in Note 15. (5) For the years ended December 31, 2022 and 2021, charges of $0.3 million and $0.2 million relate to the acquisition of a strategic investment in the Performance Materials segment. For the year ended December 31, 2022, charges of $5.6 million relate to the acquisition and integration of Ozark Materials into the Performance Chemicals segment. For more detail on these charges see Note 16. For the years ended December 31, 2021 and 2020, charges of $0.4 million and $1.8 million relate to the integration of the Caprolactone business, now referred to as our engineered polymers product line, into our Performance Chemicals segment. (6) For the year ended December 31, 2021, litigation verdict charge relates to the Performance Materials segment. Refer to Note 18 for additional information. Depreciation and amortization Capital expenditures Years Ended December 31, Years Ended December 31, In millions 2022 2021 2020 2022 2021 2020 Performance Materials $ 36.1 $ 36.8 $ 31.2 $ 59.8 $ 46.2 $ 30.6 Performance Chemicals 72.7 73.1 69.0 82.7 57.6 51.5 Total $ 108.8 $ 109.9 $ 100.2 $ 142.5 $ 103.8 $ 82.1 Property, plant, and equipment, net December 31, In millions 2022 2021 North America $ 636.7 $ 551.1 Asia Pacific 70.4 75.0 Europe, Middle East, and Africa 91.4 93.5 South America 0.1 0.1 Property, plant, and equipment, net $ 798.6 $ 719.7 Total assets December 31, In millions 2022 2021 Performance Materials $ 784.6 $ 716.2 Performance Chemicals 1,877.4 1,675.6 Total segment assets (1) $ 2,662.0 $ 2,391.8 Corporate and other 74.5 77.2 Total assets $ 2,736.5 $ 2,469.0 _______________ (1) 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, 2022 | |
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. 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. The calculation of diluted net income per share excludes all anti-dilutive common shares. Years Ended December 31, In millions (except share and per share data) 2022 2021 2020 Net income (loss) $ 211.6 $ 118.1 $ 181.4 Basic and Diluted earnings (loss) per share (1) Basic earnings (loss) per share $ 5.54 $ 2.97 $ 4.39 Diluted earnings (loss) per share $ 5.50 $ 2.95 $ 4.37 Shares (2) Weighted average number of shares of common stock outstanding - Basic 38,179 39,816 41,330 Weighted average additional shares assuming conversion of potential common shares 292 243 217 Shares - diluted basis 38,471 40,059 41,547 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common stockholders divided by diluted weighted average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. (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: Years Ended December 31, In thousands 2022 2021 2020 Average number of potential common shares - antidilutive 204 98 177 |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2022 | |
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, as well as other (income) expense, net on the consolidated statement of operations: Prepaid and other current assets: December 31, In millions 2022 2021 Income and value added tax receivables $ 12.7 $ 21.8 Prepaid freight and supply agreements 2.7 2.2 Prepaid insurance 3.2 3.5 Non-trade receivables 5.4 2.6 Advances to suppliers 1.0 0.7 Prepaid software as a service 2.9 3.4 Contract asset (Note 4) 6.4 5.3 Restricted cash 0.6 0.6 Other 7.6 6.5 $ 42.5 $ 46.6 Other assets: December 31, In millions 2022 2021 Deferred financing charges $ 5.1 $ 3.0 Capitalized software, net 46.4 36.0 Land-use rights 4.6 5.1 Planned major maintenance activities 4.3 3.2 Deferred software as a service 4.0 3.2 Deferred compensation plan assets (Note 5) 14.4 14.9 Net investment hedge (Note 9) — 2.0 Finance lease assets, net (Note 13) 0.1 0.3 Other 6.6 6.5 $ 85.5 $ 74.2 Accrued expenses: December 31, In millions 2022 2021 Accrued interest $ 9.0 $ 13.3 Accrued taxes 5.3 8.2 Accrued freight 3.9 5.5 Accrued rebates 13.7 7.5 Restructuring reserves (Note 15) 0.5 0.5 Accrued royalties and commissions 2.4 1.5 Currency exchange and natural gas contracts (Note 9) 2.1 0.6 Accrued energy 3.2 2.8 Other 14.3 11.8 $ 54.4 $ 51.7 Other liabilities: December 31, In millions 2022 2021 Deferred compensation arrangements (Note 5) $ 12.5 $ 13.7 Pension & OPEB liabilities (Note 14) 10.4 14.1 Unrecognized tax benefits (Note 17) 0.8 0.3 Net investment hedge (Note 9) — 1.0 Interest rate swaps (Note 9) — 4.0 Contingent consideration (Note 5) — 0.8 Litigation verdict accrual (Note 18) 85.0 85.0 Other 6.2 6.6 $ 114.9 $ 125.5 Other (income) expense, net: Years Ended December 31, In millions 2022 2021 2020 Foreign currency translation (income)/loss $ 2.3 $ 2.5 $ (5.8) Royalty and sundry (income)/loss (0.2) (0.6) (0.4) Litigation verdict charge (Note 18) — 85.0 — Other (income)/expense, net (3.8) (7.0) 2.1 $ (1.7) $ 79.9 $ (4.1) |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventDuring the first quarter of 2023, we realigned our segment reporting structure to increase transparency for our investors and better align with how our chief operating decision maker intends to measure segment operating performance and allocate resources across our operating segments. Effective in the first quarter of 2023, we will separate our engineered polymers product line from the Performance Chemicals reporting segment into its own reporting segment. This reporting segment change will also result in our Performance Chemicals reporting unit for goodwill being split into two separate reporting units for the purposes of goodwill impairment testing. As of and for the year ended December 31, 2022, we continued to review financial information at the Performance Chemicals segment level, and therefore, these changes had no impact on our reporting structure. This segment reporting change will have no impact on our consolidated operating results or the historical operating results for our Performance Materials operating segment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR YEARS ENDED DECEMBER 31, 2022, 2021, and 2020 Provision/ (Benefit) In millions Balance, Beginning of Year Charged to Costs and Expenses Charged to Other Comprehensive Income Charged to Retained Earnings Write-offs (1) Balance, End of Year December 31, 2022 Accounts receivable credit loss allowance (2) $ 2.0 0.3 — — (1.8) $ 0.5 Held-to-maturity debt securities credit loss allowance (3) $ 0.5 0.1 — — — $ 0.6 Deferred tax valuation allowance $ 8.8 0.1 0.3 — — $ 9.2 December 31, 2021 Accounts receivable credit loss allowance (2) $ 1.9 0.1 — — — $ 2.0 Held-to-maturity debt securities credit loss allowance (3) $ 0.9 (0.4) — — — $ 0.5 Deferred tax valuation allowance $ 8.4 0.8 (0.4) — — $ 8.8 December 31, 2020 Accounts receivable credit loss allowance (2) $ 0.5 1.4 — — — $ 1.9 Held-to-maturity debt securities credit loss allowance (3) $ — 0.3 — 0.6 — $ 0.9 Deferred tax valuation allowance $ 13.0 (1.9) (2.7) — — $ 8.4 _______________ (1) Write-offs are net of recoveries. (2) Allowance for credit losses on accounts receivable is included within Accounts receivable, net on the consolidated balance sheet. (3) Allowance for credit losses on held-to-maturity debt securities is included within Restricted investment on the consolidated balance sheet. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying Consolidated Financial Statements of Ingevity were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The significant accounting policies described in Note 2, together with the other notes that follow, are an integral part of the Consolidated Financial Statements. The Consolidated Financial Statements include the accounts of Ingevity and subsidiaries in which a controlling interest is maintained. |
Estimates and assumptions | Estimates and assumptions: 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. |
Cash equivalents | Cash equivalents: Highly liquid securities with an original maturity of three months or less are considered cash equivalents. |
Accounts receivable and allowance for credit losses | Accounts receivable and allowance for credit losses: Accounts receivable, net on the consolidated balance sheets are comprised of trade receivables less allowances for credit losses. 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 credit losses is our best estimate of the amount of probable loss in the existing accounts receivable. We determine the allowance based on our expected future credit losses, which is partly 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 lower of cost or net realizable value, except for inventories determined using the last-in, first-out method (“LIFO”), which are valued at the lower of LIFO or market cost. The value of our U.S. inventories is determined using LIFO for the majority of our raw materials, finished goods, and production materials. The value of all other inventories, including stores and supplies inventories and inventories of non-U.S. operations, is determined by the first-in, first-out ("FIFO") or average costs methods. Elements of cost in inventories include raw materials, direct labor, and manufacturing overhead. We routinely assess inventory for both potential obsolescence and potential declines in anticipated selling prices to derive a market value for the inventory on hand. This review also includes an analysis of potentially obsolete, unmarketable, slow-moving, or overvalued inventory. If necessary, we will impair any inventories by an amount equal to the difference between the value of the held inventory (i.e., cost) and its estimated net realizable value for FIFO and average cost inventories and market value for LIFO inventories. |
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 within the consolidated statement of operations. 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. |
Repair and maintenance costs | Repair and maintenance costs: We expense routine repair and maintenance costs as we incur them. We defer expenses incurred during planned major maintenance activities and record these amounts to Other assets on our consolidated balance sheet. Deferred amounts are recognized as expense ratably over the shorter of the estimated interval until the next major maintenance activity or the life of the deferred item. The cash outflows related to these costs are included in operating activities within the consolidated statement of cash flows. The timing of this maintenance can vary by manufacturing plant and has a significant impact on our results of operations in the period performed primarily due to lost production during the maintenance period. |
Depreciation | Depreciation: The cost of property, 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. |
Leases | Leases: We lease various assets for use in our operations that are classified as both operating and financing leases. At contract inception, we determine that a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, we recognize a lease liability based on the present value of the future lease payments, with an offsetting entry to recognize a right-of-use asset. As a majority of our leases do not provide an explicit rate within the lease, an incremental borrowing rate is used, which is based on information available at the commencement date. The determination of the incremental borrowing rate for each individual lease was impacted by the following assumptions: lease term, currency, and the economic environment for the physical location of the leased asset. |
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 conduct a required annual review of goodwill for potential impairment 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. Our reporting units are our operating segments, i.e., Performance Chemicals and Performance Materials. If the carrying value of a reporting unit that includes goodwill exceeds its fair value, which is determined using both the income approach and market approach, goodwill is considered impaired. The income approach determines fair value based on discounted cash flow model derived from a reporting unit’s long-term forecasted cash flows. The market approach determines fair value based on the application of earnings multiples of comparable companies to projected earnings of the reporting unit. The amount of impairment loss is measured as the difference between the carrying value and the fair value of a reporting unit but is limited to the total amount of goodwill allocated to the reporting unit. In performing the fair value analysis, management makes various judgments, estimates and assumptions, the most significant of which is the assumption related to revenue growth rates. The factors we considered in developing our estimates and projections for cash flows include, but are not limited to, the following: (i) macroeconomic conditions; (ii) industry and market considerations; (iii) costs, such as increases in raw materials, labor, or other costs; (iv) our overall financial performance; and (v) other relevant entity-specific events that impact our reporting units. The determination of whether goodwill is impaired involves a significant level of judgment in the assumptions underlying the approach used to determine the estimated fair values of our reporting units. We believe that the estimates and assumptions used in our impairment assessment are reasonable; however, these assumptions are judgmental and variations in any assumptions could result in materially different calculations of fair value. We will continue to evaluate goodwill on an annual basis as of October 1, and whenever events or changes in circumstances, such as significant adverse changes in operating results, market conditions, or changes in management’s business strategy indicate that there may be a probable indicator of impairment. It is possible that the assumptions used by management related to the evaluation may change or that actual results may vary significantly from management’s estimates. |
Capitalized software | Capitalized software: Capitalized software for internal use is included within Other assets on the consolidated balance sheets. Amounts capitalized are presented in Capital expenditures on our consolidated statements of cash flow. Capitalized software is amortized using the straight-line over the estimated useful lives ranging from 3 to 15 years. Amortization is recorded to Costs of sales on our consolidated statements of operations for software directly used in the production of inventory and Selling, general, and administrative expenses on our consolidated statements of operations for software used for non-production related activities. |
Strategic Investments | Strategic investments: We have a variety of strategic investments that are classified as long-term assets on the consolidated balance sheets. Our strategic investments are accounted for under either the equity method of accounting or the measurement alternative, where fair value is not readily determinable. We use the equity method of accounting for investments that we do not control, but for which we have the ability to exercise significant influence. For strategic investments that are accounted for under the equity method of accounting, our initial investment is recorded at cost. Subsequently, the carrying value for these investments will be impacted by our proportionate share of undistributed earnings or loss, distributions, amortization or accretion of basis differences, and other-than-temporary impairments. Subsequent adjustments to our initial investment are recorded within Other (income) expense, net on the consolidated statement of operations. Strategic investments accounted for under the measurement alternative, where fair value is not readily determinable, are accounted for at cost. Adjustments for observable changes in prices or impairments are recognized in Other (income) expense, net in our consolidated statements of operations. At each reporting period, we evaluate each investment to determine whether events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. |
Legal liabilities | Legal liabilities: We recognize a liability for legal contingencies when a loss is probable and reasonably estimable. Third-party fees for legal services are expensed as incurred. If only a range of estimated losses can be determined, we accrue an amount that reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. If an unfavorable outcome is reasonably possible but not probable, we will disclose an estimate of the reasonably possible loss or range of loss. If we cannot estimate the loss or range of losses arising from a legal proceeding, we will disclose that an estimate cannot be made. In assessing the materiality of a legal proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs that may require us to change our business practices in a manner that could have a material adverse impact on our business. |
Revenue recognition | Revenue recognition: Our revenue is derived from contracts with customers, and substantially all our revenue is recognized when products are either shipped from our manufacturing and warehousing facilities or delivered to the customer. Revenue, net of returns and customer incentives, is based on the sale of manufactured products. Revenues are recognized when performance obligations under the terms of a contract with our customer are satisfied; generally, this occurs with the transfer of control of our products. For certain limited contracts, where we are producing goods with no alternative use and for which we have an enforceable right to payment for performance completed to date, we are recognizing revenue as goods are manufactured, rather than when they are shipped. Revenues are presented as Net sales on the consolidated statements of operations. Since Net sales are derived from product sales only, we have disaggregated our Net sales by our product lines within each reportable segment. Net sales are measured as the amount of consideration we expect to receive in exchange for zero |
Cost of sales | Cost of sales: Costs primarily consist of the cost of inventory sold and other production related costs. These costs include raw materials, direct labor, manufacturing overhead, packaging costs, and maintenance costs. Shipping and handling costs are recorded within Cost of sales on the consolidated statements of operations. |
Selling, general and administrative expenses | Selling, general, and administrative expenses: Costs are expensed as incurred and primarily include employee compensation costs related to sales and office personnel, office expenses, and other expenses not directly related to our manufacturing operations. Costs also include advertising and promotional costs. |
Research and technical expenses | Research and technical expenses: Costs are expensed as incurred and primarily include employee compensation, technical equipment costs, material testing, and innovation-related expenses. |
Royalty expense | Royalty expense: We have licensing agreements with third parties requiring us to pay royalties for certain technologies we use in the manufacturing of our products. Royalty expense is recognized as incurred and recorded within Cost of sales on the consolidated statements of operations. |
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 within Restructuring and other (income) charges, net on the consolidated statement of operations. These costs are excluded from our operating segment results. |
Income taxes | Income taxes: We are subject to income taxes in the U.S. and numerous foreign jurisdictions, including China and the United Kingdom ("UK"). The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. We follow the asset and 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 recognized based on the temporary 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. We recognize income tax positions that are more-likely-than-not to be realized and accrue interest related to unrecognized income tax positions, which is included as a component of the income tax provision, on the consolidated statements of operations. |
Pension and postretirement benefits | Pension and postretirement benefits: We provide both qualified and non-qualified pension and postretirement benefit plans to our employees. The expense related to the current employees, as well as the expense related to retirees, are included within 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, |
Share-based compensation | Share-based compensation: We recognize compensation expense within our Consolidated Financial Statements for all share-based compensation arrangements. Share-based compensation cost is measured at the date of grant, based on the fair value of the award, and expense is recognized over the grantee's requisite service period; forfeitures are recognized as they occur. We calculate the fair value of our stock options using the Black-Scholes option pricing model. The fair value of restricted stock units ("RSU"s), non-employee director deferred stock units ("DSU"s), and performance-based restricted stock units ("PSU"s) is determined using our closing stock price on the date of the grant. Substantially all compensation expense related to share-based awards is recorded as a component of Selling, general and administrative expenses within the consolidated statements of operations. |
Operating segments | Operating segments: Our 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. Our chief operating decision maker evaluates the business at the segment level when making decisions about allocating resources and assessing the 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 and caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide. Each segment operates as a portfolio of various end uses for the relevant raw material used in that segment. |
Fair Value Measurements | Fair value measurements: We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying value of our financial instruments: cash and cash equivalents, other receivables, other payables, and accrued liabilities, approximate their fair values due to the short-term nature of these financial instruments. |
Derivative financial instruments | Derivative financial instruments: We are exposed to market risks, such as the impact of changes in interest rates on our floating rate debt, foreign currency exchange rates due to transactions denominated in a variety of foreign currencies, and commodity prices due to purchases of certain raw materials and inputs. Changes in these rates and prices may have an impact on our future cash flow and earnings. We formally document all relationships between the derivative financial instrument and the hedged item, as well as the risk management objective and strategy for undertaking various hedge transactions. We do not hold or issue derivative financial instruments for speculative or trading purposes. We enter into derivative financial instruments which are governed by policies, procedures, and internal processes set forth by our Board of Directors. Our risk management program also addresses counterparty credit risk by selecting only major financial institutions with investment grade ratings. Once the derivative financial instrument is entered into, we continuously monitor the financial institutions’ credit ratings and our credit risk exposure held by the financial institution. When appropriate, we reallocate exposures across multiple financial institutions to limit credit risk. If a counterparty fails to fulfill its performance obligations under the derivative financial instrument, then Ingevity is exposed to credit risk equal to the fair value of the financial instrument. Derivative assets and liabilities are recorded on our consolidated balance sheets at fair value and are presented on a gross basis. Due to our proactive mitigation of these potential credit risks, we anticipate performance by our counterparties to these contracts, and therefore, no material loss is expected. In order to mitigate the impact of market risks, we have and may enter into both net investment hedges and cash flow hedges. Cash Flow Hedges: Cash flow hedges are derivative financial instruments designated as and used to hedge the exposure to variability in expected future cash flows that are attributable to a particular risk. The derivative financial instruments that are designated and qualify as a cash flow hedge are recorded on the balance sheet at fair value, and the changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the anticipated cash flows |
Treasury stock | Treasury stock: We record shares of common stock repurchased at cost as treasury stock, resulting in a reduction of stockholders’ equity on the consolidated balance sheets. When the treasury shares are contributed under our employee benefit plans or issued for option exercises, we use a first-in, first-out (“FIFO”) method for determining cost. The difference between the cost of the shares and the market price at the time of contribution to an employee benefit plan is added to or deducted from Additional paid-in capital on the consolidated balance sheets. |
Translation of foreign currencies | Translation of foreign currencies: The local currency is the functional currency for all of our significant operations outside the U.S., consisting primarily of the euro, the Japanese yen, the pound sterling, and the Chinese renminbi. The assets and liabilities of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates, and adjustments resulting from these financial statement translations are included within AOCI on the consolidated balance sheets. Revenues and expenses are translated at average rates prevailing during each period. |
Business combinations | Business combinations: Accounting for business combinations which requires, among other things, the acquiring entity in a business combination to recognize the fair value of the assets acquired and liabilities assumed; the recognition of acquisition-related costs within the consolidated results of operations; the recognition of restructuring costs within the consolidated results of operations for which the acquirer becomes obligated after the acquisition date; and contingent purchase consideration to be recognized at fair value on the acquisition date with subsequent adjustments recognized on the consolidated statement of operations. We generally use qualified third-party consultants to assist management in determining the fair value of assets acquired and liabilities assumed. This includes, when necessary, assistance with the determination of lives and valuation of tangible property, plant, and equipment and identifiable intangibles, assisting management in determining the fair value of obligations associated with employee-related liabilities, and assisting management in assessing obligations associated with legal and environmental claims. The purchase price allocation process allows us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained surrounding facts and circumstances existing at the acquisition date. The fair value assigned to identifiable intangible assets acquired is determined primarily by using an income approach, which is based on assumptions and estimates made by management. Significant assumptions utilized in the income approach are the attrition rate, revenue growth rates, EBITDA margins, royalty rates, and the discount rate. These assumptions are based on company-specific information and projections, which are not observable in the market and are therefore considered Level 2 and Level 3 measurements. The excess of the purchase price over the fair value of the identified assets and liabilities is recorded as goodwill. Based on the acquired business’ end markets and products, as well as how the chief operating decision maker will review the business results, determines the most appropriate operating segment for which to integrate the acquired business. Goodwill acquired, if any, is allocated to the reporting unit within or at the operating segment for which the acquired business will be integrated. Selection of the appropriate reporting unit is based on the level at which discrete financial information is available and reviewed by business management post-integration. Operating results of the acquired entity are reflected within the Consolidated Financial Statements from the date of acquisition. |
Reclassifications | Reclassifications: Certain prior year amounts have been reclassified to conform with the current year's presentation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." The ASU is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank-offered rates to alternative reference rates. This guidance became effective beginning on March 12, 2020, and we may elect to apply the amendments prospectively until December 31, 2024. As of December 31, 2022, we have not yet elected any optional expedients provided in the standard. We will apply the accounting relief, if necessary, as relevant contract and hedge accounting relationship modifications are made during the reference rate reform transition period. We do not expect this new standard to have a material impact on our Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table provides details on the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of Depreciable Life in Years Types of Assets 23 5 to 10 Production control system equipment and hardware, laboratory testing equipment 11 15 Control systems, instrumentation, metering equipment 49 20 Production vessels and kilns, storage tanks, piping 7 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 3 40 Machinery & equipment support structures and foundations 7 Various Various Property, plant, and equipment, net consist of the following: December 31, In millions 2022 2021 Machinery and equipment $ 1,162.7 $ 1,113.3 Buildings and leasehold improvements 200.9 177.2 Land and land improvements 24.9 20.4 Construction in progress 120.9 64.4 Total cost $ 1,509.4 $ 1,375.3 Less: accumulated depreciation (710.8) (655.6) Property, plant, and equipment, net (1) $ 798.6 $ 719.7 _______________ |
Lease Maturity Terms | Our operating leases principally relate to the following leased asset classes: Leased Asset Class Remaining Lease Term Administrative offices 1 to 15 years Manufacturing buildings 4 to 28 years Manufacturing and office equipment 1 to 11 years Warehousing and storage facilities 3 to 10 years Vehicles 3 to 6 years Rail cars 0 to 8 years |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our Net sales disaggregated by product line and geography. Years Ended December 31, In millions 2022 2021 2020 Performance Materials segment $ 548.5 $ 516.8 $ 510.0 Performance Chemicals segment Pavement Technologies product line 241.3 195.4 186.8 Industrial Specialties product line 633.8 493.5 391.6 Engineered Polymers product line 244.7 185.8 127.7 Total $ 1,119.8 $ 874.7 $ 706.1 Net sales $ 1,668.3 $ 1,391.5 $ 1,216.1 The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Years Ended December 31, In millions 2022 2021 2020 North America $ 983.2 $ 763.3 $ 676.9 Asia Pacific 398.7 385.5 345.4 Europe, Middle East, and Africa 242.2 219.6 174.9 South America 44.2 23.1 18.9 Net sales $ 1,668.3 $ 1,391.5 $ 1,216.1 |
Contract with Customer, Asset and Liability | The following table provides information about contract assets and contract liabilities from contracts with customers. The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date from contracts with certain customers. The contract assets are recognized as accounts receivables when we have an enforceable right to payment for performance completed to date and the customer has been billed. Contract liabilities represent obligations to transfer goods to a customer for which we have received consideration from our customer. For all periods presented, we had no contract liabilities. Year Ended December 31, In millions 2022 2021 Contract asset at beginning of period $ 5.3 $ 5.7 Additions 20.7 21.5 Reclassification to accounts receivable, billed to customers (19.6) (21.9) Contract asset at end of period (1) $ 6.4 $ 5.3 _______________ (1) Included within "Prepaid and other current assets" on the consolidated balance sheet. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The following information is presented for assets and liabilities that are recorded on the consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between the three-level fair value hierarchy during the periods reported. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2022 Assets: Deferred compensation plan investments (4) $ 1.1 $ — $ — $ 1.1 Total assets $ 1.1 $ — $ — $ 1.1 Liabilities: Deferred compensation arrangement (4) $ 12.5 $ — $ — $ 12.5 Total liabilities $ 12.5 $ — $ — $ 12.5 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2021 Assets: Deferred compensation plan investments (4) $ 0.9 $ — $ — $ 0.9 Total assets $ 0.9 $ — $ — $ 0.9 Liabilities: Deferred compensation arrangement (4) $ 13.7 $ — $ — $ 13.7 Contingent consideration (5) — — 0.8 0.8 Total liabilities $ 13.7 $ — $ 0.8 $ 14.5 __________ (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) Consists of a deferred compensation arrangement through which we hold various investment securities recognized on our balance sheets. Both the asset and liability related to investment securities are recorded at fair value and are included within "Other assets" and "Other liabilities" on the consolidated balance sheets, respectively. In addition to the investment securities, we also had company-owned life insurance related to the deferred compensation arrangement recorded at cash surrender value in "Other assets" of $13.3 million and $14.0 million at December 31, 2022 and 2021, respectively. (5) Included within "Other liabilities" on the consolidated balance sheet. |
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses. HTM Debt Securities In millions AA+ AA AA- A A- BBB+ Total December 31, 2022 $ 13.4 — 10.5 13.2 14.1 20.4 $ 71.6 December 31, 2021 $ 13.4 — 10.6 13.3 14.1 20.5 $ 71.9 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | December 31, In millions 2022 2021 Raw materials $ 106.7 $ 48.8 Production materials, stores and supplies 27.9 26.8 Finished and in-process goods 228.2 183.4 Subtotal $ 362.8 $ 259.0 Less: LIFO reserve (27.8) (17.8) Inventories, net $ 335.0 $ 241.2 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table provides details on the useful lives and proportion of our machinery and equipment (“M&E”) in each useful life category. Percent of Depreciable Life in Years Types of Assets 23 5 to 10 Production control system equipment and hardware, laboratory testing equipment 11 15 Control systems, instrumentation, metering equipment 49 20 Production vessels and kilns, storage tanks, piping 7 25 to 30 Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment 3 40 Machinery & equipment support structures and foundations 7 Various Various Property, plant, and equipment, net consist of the following: December 31, In millions 2022 2021 Machinery and equipment $ 1,162.7 $ 1,113.3 Buildings and leasehold improvements 200.9 177.2 Land and land improvements 24.9 20.4 Construction in progress 120.9 64.4 Total cost $ 1,509.4 $ 1,375.3 Less: accumulated depreciation (710.8) (655.6) Property, plant, and equipment, net (1) $ 798.6 $ 719.7 _______________ |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Reporting Units In millions Performance Chemicals Performance Materials Total December 31, 2020 $ 441.0 $ 4.3 $ 445.3 Foreign currency translation (3.3) — (3.3) December 31, 2021 $ 437.7 $ 4.3 $ 442.0 Foreign currency translation (33.3) — (33.3) Goodwill acquired (1) 109.8 — 109.8 December 31, 2022 $ 514.2 $ 4.3 $ 518.5 _______________ (1) See Note 16 for more information about our acquisitions. |
Schedule of Finite-Lived Intangible Assets | In millions Customer contracts and relationships Brands (1) Developed Technology Other Total Gross Asset Value December 31, 2020 $ 319.5 $ 82.4 $ 73.0 $ 2.7 $ 477.6 Retirements — — — (2.2) (2.2) Foreign currency translation (1.7) (0.7) (0.8) — (3.2) December 31, 2021 317.8 81.7 72.2 0.5 472.2 Acquisitions (2) 88.6 15.0 23.5 — 127.1 Retirements — — — (0.5) (0.5) Foreign currency translation (17.9) (7.5) (7.2) — (32.6) December 31, 2022 $ 388.5 $ 89.2 $ 88.5 $ — $ 566.2 Accumulated Amortization December 31, 2020 $ (73.6) $ (15.8) $ (12.5) $ (2.4) $ (104.3) Amortization (21.7) (4.7) (6.6) (0.2) (33.2) Retirements — — — 2.1 2.1 Foreign currency translation 0.3 0.2 0.3 — 0.8 December 31, 2021 (95.0) (20.3) (18.8) (0.5) (134.6) Amortization (22.2) (4.6) (6.8) — (33.6) Retirements — — — 0.5 0.5 Foreign currency translation 3.4 1.0 1.9 — 6.3 December 31, 2022 $ (113.8) $ (23.9) $ (23.7) $ — $ (161.4) Other intangibles, net (3) $ 274.7 $ 65.3 $ 64.8 $ — $ 404.8 _______________ (1) Represents trademarks, trade names, and know-how. (2) See Note 16 for more information about our acquisitions. (3) The weighted average amortization period remaining for all intangibles is 11.3 years, while the weighted average amortization period remaining for customer contracts and relationships, brands, and developed technology and other intangibles is 11.8 years, 12.3 years, 8.4 years, and zero years, respectively. Intangible assets subject to amortization were allocated among our business segments as follows: December 31, In millions 2022 2021 Performance Materials $ 1.7 $ 1.9 Performance Chemicals 403.1 335.7 Other intangibles, net $ 404.8 $ 337.6 |
Finite-lived Intangible Assets Amortization Expense | The amortization expense related to our intangible assets in the table above is shown in the table below. Years Ended December 31, In millions 2022 2021 2020 Cost of sales $ — $ — $ 0.1 Selling, general, and administrative expenses 33.6 33.2 32.5 Total amortization expense $ 33.6 $ 33.2 $ 32.6 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Cash Flow and Net Investment Hedge Accounting on Accumulated Other Comprehensive Income | Effect of Cash Flow and Net Investment Hedge Accounting on AOCI In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income Location of Gain (Loss) Reclassified from AOCI into Net income Years Ended December 31, 2022 2021 2020 2022 2021 2020 Cash flow hedging derivatives Currency exchange contracts $ 0.9 $ 0.8 $ (0.1) $ 2.0 $ 0.3 $ (0.1) Net sales Natural gas contracts 4.4 1.6 (0.5) 6.5 0.7 (1.1) Cost of sales Interest rate swap contracts 5.8 4.8 (5.0) 1.7 — — Interest income Total $ 11.1 $ 7.2 $ (5.6) $ 10.2 $ 1.0 $ (1.2) Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative Years Ended December 31, 2022 2021 2020 2022 2021 2020 Net investment hedging derivative Currency exchange contracts (1) $ 13.9 $ 9.6 $ (11.7) $ 1.1 $ 0.5 $ 1.6 Interest income Total $ 13.9 $ 9.6 $ (11.7) $ 1.1 $ 0.5 $ 1.6 __________ |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | December 31, 2022 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Liabilities: Natural gas contracts (6) $ — $ 1.6 $ — $ 1.6 Currency exchange contracts (6) — 0.5 — 0.5 Total liabilities $ — $ 2.1 $ — $ 2.1 December 31, 2021 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.5 $ — $ 0.5 Net investment hedge (5) — 2.0 — 2.0 Total assets $ — $ 2.5 $ — $ 2.5 Liabilities: Natural gas contracts (6) $ — $ 0.6 $ — $ 0.6 Net investment hedge (7) — 1.0 — 1.0 Interest rate swap contracts (7) — 4.0 — 4.0 Total liabilities $ — $ 5.6 $ — $ 5.6 __________ (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 current assets" on the consolidated balance sheet. (5) Included within "Other assets" on the consolidated balance sheet. (6) Included within "Accrued expenses" on the consolidated balance sheet. (7) Included within "Other liabilities" on the consolidated balance sheet. |
Debt, including Finance Lease_2
Debt, including Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Current and long-term debt including finance lease obligations consisted of the following: December 31, In millions, except percentages 2022 2021 Revolving Credit Facility and other lines of credit (1) $ 828.0 $ — Term Loan — 328.1 3.88% Senior Notes due 2028 550.0 550.0 4.50% Senior Notes due 2026 — 300.0 Finance lease obligations (2) 101.9 102.4 Total debt including finance lease obligations $ 1,479.9 $ 1,280.5 Less: debt issuance costs 6.5 10.9 Total debt including finance lease obligations, net of debt issuance costs $ 1,473.4 $ 1,269.6 Less: debt maturing within one year (3) 0.9 19.6 Long-term debt including finance lease obligations $ 1,472.5 $ 1,250.0 _______________ (1) Letters of credit outstanding under the revolving credit facility were $2.3 million and $2.5 million and available funds under the facility were $169.7 million and $497.5 million at December 31, 2022 and 2021, respectively. (2) Refer to Note 13 for more information. (3) Debt maturing within one year is included within "Notes payable and current maturities of long-term debt" on the consolidated balance sheet. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Allocation of Stock-based Compensation | Our share-based compensation and ESPP expense is included in the table below. Years Ended December 31, In millions 2022 2021 2020 Stock option expense $ 1.5 $ 1.7 $ 0.6 ESPP expense 0.7 0.6 0.5 RSU, DSU and PSU expense 13.9 10.0 7.3 Total share-based compensation expense (1) $ 16.1 $ 12.3 $ 8.4 Income tax benefit (3.1) (2.3) (1.5) Total share-based compensation expense, net of tax $ 13.0 $ 10.0 $ 6.9 _______________ (1) Amounts reflected in "Selling, general, and administrative expenses" on the consolidated statements of operations. |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | Expense related to stock options granted is based on the assumptions shown in the table below: Years Ended December 31, Weighted-average assumptions used to calculate expense for stock options 2022 2021 2020 Risk-free interest rate 1.8 % 1.0 % 1.0 % Average life of options (years) 6.0 6.5 6.5 Volatility 40.0 % 46.0 % 33.5 % Dividend yield — — — Fair value per stock option $ 28.80 $ 33.07 $ 15.87 |
Disclosure of Stock-based Compensation Arrangements by Stock-based Payment Award | The following table summarizes Ingevity's stock option activity. Number of Options (in thousands) Weighted-average exercise price (per share) Weighted-average remaining contractual term (years) Aggregate intrinsic value (in thousands) Outstanding, December 31, 2021 338 $ 61.34 6.7 $ 5,366 Granted 74 68.23 Exercised (33) 46.79 Forfeited (44) 69.94 Cancelled — — Outstanding, December 31, 2022 335 $ 63.18 6.1 $ 4,100 Exercisable, December 31, 2022 224 $ 61.94 4.9 $ 3,568 |
Schedule of Nonvested Share Activity | The following table summarizes Ingevity's RSUs, DSUs, and PSUs activity. RSUs and DSUs PSUs Number of Units (in thousands) (1) Weighted average grant date fair value (per share) Number of Units (in thousands) (1) Weighted average grant date fair value (per share) Nonvested, December 31, 2021 243 $ 67.36 166 $ 65.91 Granted 179 66.42 83 68.23 Vested (95) 71.62 — — Forfeited (26) 63.32 (56) 82.96 Nonvested, December 31, 2022 (2) 301 $ 6.04 193 $ 61.88 _______________ (1) The number granted represents the number of shares issuable upon vesting of RSUs and DSUs. For PSUs, the number granted represents the number of shares issuable upon vesting, assuming that Ingevity performs at the target performance level in each year of the three-year performance period. (2) Excludes 5,715 non-employee director shares that were vested but unissued at December 31, 2022. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) Summarized below is the roll forward of AOCI, net of tax. Years Ended December 31, In millions 2022 2021 2020 Foreign currency translation Beginning balance $ 18.4 $ 16.4 $ 1.5 Net gains (losses) on foreign currency translation (74.9) (5.3) 23.9 Gains (losses) on net investment hedges 13.9 9.6 (11.7) Less: tax provision (benefit) 3.2 2.3 (2.7) Net gains (losses) on net investment hedges 10.7 7.3 (9.0) Other comprehensive income (loss), net of tax (64.2) 2.0 14.9 Ending balance $ (45.8) $ 18.4 $ 16.4 Derivative instruments Beginning balance $ (2.1) $ (6.9) $ (3.5) Gains (losses) on derivative instruments 11.1 7.2 (5.6) Less: tax provision (benefit) 2.6 1.7 (1.3) Net gains (losses) on derivative instruments 8.5 5.5 (4.3) (Gains) losses reclassified to net income (10.2) (1.0) 1.2 Less: tax (provision) benefit (2.4) (0.3) 0.3 Net (gains) losses reclassified to net income (7.8) (0.7) 0.9 Other comprehensive income (loss), net of tax 0.7 4.8 (3.4) Ending balance $ (1.4) $ (2.1) $ (6.9) Pension and other postretirement benefits Beginning balance $ (3.2) $ (4.8) $ (3.0) Unrealized actuarial gains (losses) and prior service (costs) credits 4.4 1.9 (2.7) Less: tax provision (benefit) 1.0 0.4 (0.6) Net actuarial gains (losses) and prior service (costs) credits 3.4 1.5 (2.1) Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income 0.3 0.2 0.3 Less: tax (provision) benefit 0.1 0.1 — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income 0.2 0.1 0.3 Other comprehensive income (loss), net of tax 3.6 1.6 (1.8) Ending balance $ 0.4 $ (3.2) $ (4.8) Total AOCI ending balance at December 31 $ (46.8) $ 13.1 $ 4.7 Reclassifications of accumulated other comprehensive income (loss) The table below provides details about the reclassifications from AOCI and the affected line items on the consolidated statement of operations for each of the periods presented. Years Ended December 31, In millions 2022 2021 2020 Derivative Instruments Currency exchange contracts (1) $ 2.0 $ 0.3 $ (0.1) Natural gas contracts (2) 6.5 0.7 (1.1) Interest rate swaps (4) 1.7 — — Total before tax 10.2 1.0 (1.2) (Provision) benefit for income taxes (2.4) (0.3) 0.3 Amount included within net income (loss) $ 7.8 $ 0.7 $ (0.9) Pension and other postretirement benefits Amortization of prior service credit (costs) (2) $ (0.1) $ (0.1) $ (0.1) Amortization of unrecognized net actuarial and other gains (losses) (3) — (0.1) (0.1) Recognized gain (loss) due to curtailment and settlement (2) (0.2) — (0.1) Total before tax (0.3) (0.2) (0.3) (Provision) benefit for income taxes 0.1 0.1 — Amount included within net income (loss) $ (0.2) $ (0.1) $ (0.3) _______________ (1) Included within "Net sales" on the consolidated statements of operations. (2) Included within "Cost of sales" on the consolidated statements of operations. (3) Included within "Other (income) expense, net" on the consolidated statements of operations. (4) Included within "Interest income" on the consolidated statements of operations. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental consolidated balance sheet information related to our leases is as follows: December 31, In millions Financial Statement Caption 2022 2021 Assets Operating lease assets, net (1) Operating lease assets, net $ 56.6 $ 52.4 Finance lease assets, net (2) Property, plant, and equipment, net 60.1 53.9 Finance lease assets, net (2) Other assets, net 0.1 0.3 Total lease assets $ 116.8 $ 106.6 Liabilities Current Operating lease liabilities (3) Current operating lease liabilities $ 16.5 $ 17.4 Finance lease liabilities Notes payable and current maturities of long-term debt 0.9 0.8 Noncurrent Operating lease liabilities Noncurrent operating lease liabilities 40.8 36.2 Finance lease liabilities Long-term debt including finance lease obligations 101.0 101.6 Total lease liabilities $ 159.2 $ 156.0 _______________ (1) Operating lease assets, net are recorded net of accumulated amortization of $40.8 million, and $35.5 million as of December 31, 2022, and 2021, respectively. (2) Finance lease assets, net are recorded net of accumulated amortization in Property, plant, and equipment, net and Other assets, net of $73.8 million and $1.4 million, as of December 31, 2022, and $69.6 million and $1.3 million, as of December 31, 2021. (3) Operating lease liabilities include $0.2 million, and $0.2 million of accrued interest, as of December 31, 2022 and 2021, respectively. |
Lease Cost | Components of lease cost are as follows: Years Ended December 31, In millions Financial Statement Caption 2022 2021 2020 Operating lease cost (1) Cost of sales $ 19.9 $ 19.5 $ 19.4 Selling, general, and administrative expenses 1.4 1.4 1.9 Finance lease cost Amortization of leased assets Cost of sales $ 3.0 $ 3.3 $ 2.6 Selling, general, and administrative expenses 1.6 1.6 0.8 Interest on lease liabilities Interest expense, net 7.5 7.5 6.8 Net lease cost (2) $ 33.4 $ 33.3 $ 31.5 _______________ (1) Includes short-term leases and variable lease costs, which are immaterial. (2) Only on the rare occasion do we sublease our leased assets; as a result, this amount excludes sublease income which is immaterial. Years Ended December 31, In millions 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.8 $ 20.5 $ 18.5 Operating cash flows from finance leases 7.5 7.5 6.8 Financing cash flows from finance leases 0.9 0.7 0.7 |
Finance Lease, Liability, Maturity | December 31, 2022 In millions Operating leases Finance leases Total 2023 $ 18.8 $ 8.3 $ 27.1 2024 15.5 8.4 23.9 2025 11.8 8.4 20.2 2026 8.2 8.5 16.7 2027 5.8 85.5 91.3 2028 and thereafter 3.9 19.6 23.5 Total lease payments $ 64.0 $ 138.7 $ 202.7 Less: Interest 6.7 36.8 43.5 Present value of lease liabilities (1) $ 57.3 $ 101.9 $ 159.2 _______________ (1) As of December 31, 2022, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases. |
Lessee, Operating Lease, Liability, Maturity | December 31, 2022 In millions Operating leases Finance leases Total 2023 $ 18.8 $ 8.3 $ 27.1 2024 15.5 8.4 23.9 2025 11.8 8.4 20.2 2026 8.2 8.5 16.7 2027 5.8 85.5 91.3 2028 and thereafter 3.9 19.6 23.5 Total lease payments $ 64.0 $ 138.7 $ 202.7 Less: Interest 6.7 36.8 43.5 Present value of lease liabilities (1) $ 57.3 $ 101.9 $ 159.2 _______________ (1) As of December 31, 2022, we have zero operating lease commitments that have not yet commenced related to manufacturing and office equipment leases. |
Lease Term and Discount Rate | December 31, In millions, except percentages 2022 2021 Weighted-average remaining lease term (years) Operating leases 4.4 4.1 Finance leases 12.4 6.9 Weighted-average discount rate Operating leases 5.16 % 4.97 % Finance leases 7.19 % 7.18 % |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables summarize the weighted average assumptions used and components of our defined benefit postretirement plans at December 31, 2022 and 2021. Pensions Other Benefits December 31, In millions, except percentages 2022 2021 2022 2021 Following are the weighted average assumptions used to determine the benefit obligations at December 31: Discount rate - qualified benefit plans 5.00 % 2.75 % — % — % Discount rate - non-qualified benefit plans 5.00 % 2.65 % 4.90 % 2.60 % Rate of compensation increase N/A N/A N/A N/A Change in projected benefit obligation Projected benefit obligation at January 1 $ 45.0 $ 45.0 $ 0.9 $ 1.0 Service cost 1.5 1.7 — — Interest cost 1.2 1.1 — — Actuarial loss (gain) (14.2) (2.1) (0.1) (0.1) Plan amendments 0.5 0.3 (0.1) — Benefit payments (1.2) (1.0) — — Projected benefit obligation at December 31 (1) 32.8 45.0 0.7 0.9 Change in plan assets Fair value of plan asset at January 1 31.8 31.2 — — Actual return on plan assets (7.8) 1.4 — — Company contributions 0.3 0.2 — — Benefit payments (1.2) (1.0) — — Fair value of plan assets at December 31 23.1 31.8 — — Funded Status Net Funded Status of the Plan (Liability) $ (9.7) $ (13.2) $ (0.7) $ (0.9) Pensions Other Benefits December 31, In millions 2022 2021 2022 2021 Amount recognized on the consolidated balance sheets: Pension and other postretirement benefit asset (2) $ — $ — $ — $ — Pension and other postretirement benefit (liability) (2) (9.7) (13.2) (0.7) (0.9) Total Net Funded Status of the Plan (Liability) $ (9.7) $ (13.2) $ (0.7) $ (0.9) _______________ (1) The accumulated benefit obligation for all years presented equals the projected benefit obligation for each plan, respectively. (2) Asset balance is included within "Other assets" and liability balances are included within "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: Years Ended December 31, Pensions Other Benefits Total In millions 2022 2021 2020 2022 2021 2020 2022 2021 2020 Current year net actuarial loss (gain) $ (4.7) $ (2.1) $ 2.3 $ (0.1) $ (0.1) $ 0.1 $ (4.8) $ (2.2) $ 2.4 Current year prior service cost (credit) 0.5 0.3 0.3 (0.1) — — 0.4 0.3 0.3 Amortization of net actuarial (loss) gain and prior service (cost) credit (0.1) (0.2) (0.2) — — — (0.1) (0.2) (0.2) Settlement and curtailment (charges) income, net (0.2) — (0.1) — — — (0.2) — (0.1) Total recognized in other comprehensive (income) loss, before taxes (4.5) (2.0) 2.3 (0.2) (0.1) 0.1 (4.7) (2.1) 2.4 Total recognized in other comprehensive (income) loss, after taxes $ (3.4) $ (1.5) $ 1.7 $ (0.2) $ (0.1) $ 0.1 $ (3.6) $ (1.6) $ 1.8 Amounts Recognized in Accumulated Other Comprehensive Income (Loss) The amounts in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are as follows: December 31, Pensions Other Benefits Total In millions 2022 2021 2022 2021 2022 2021 Net actuarial (gain) loss $ (1.6) $ 3.1 $ (0.1) $ 0.1 $ (1.7) $ 3.2 Prior service cost (credit) 1.3 1.0 (0.1) — 1.2 1.0 Accumulated other comprehensive (income) loss, before taxes (0.3) 4.1 (0.2) 0.1 (0.5) 4.2 Accumulated other comprehensive (income) loss, after taxes $ (0.2) $ 3.1 $ (0.2) $ 0.1 $ (0.4) $ 3.2 The following table summarizes the weighted-average assumptions used for the components of net annual benefit cost: Years Ended December 31, Pensions Other Benefits In millions, except percentages 2022 2021 2020 2022 2021 2020 Discount rate - qualified benefit plans (1) 2.75 % 2.45 % 3.15 % — % — % — % Discount rate - non-qualified benefit plans (1) 2.65 % 2.30 % 3.10 % 2.60 % 2.20 % 3.05 % Expected return on plan assets 5.50 % 4.50 % 4.50 % N/A N/A N/A Components of net annual benefit cost: Service cost (2) $ 1.5 $ 1.7 $ 1.6 $ — $ — $ — Interest cost (3) 1.2 1.1 1.2 — — — Expected return on plan assets (3) (1.7) (1.4) (1.2) — — — Amortization of prior service cost (2) 0.2 0.1 0.1 — — — Amortization of net actuarial and other (gain) loss (3) — 0.1 0.1 — — — Recognized (gain) loss due to curtailments (4) 0.2 — 0.1 — — — Net annual benefit cost $ 1.4 $ 1.6 $ 1.9 $ — $ — $ — _______________ (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. (2) Amounts are recorded to "Cost of sales" on our consolidated statements of operations consistent with the employee compensation costs that participate in the plan. (3) Amounts are recorded to "Other (income) expense, net" on our consolidated statements of operations. (4) Our pension and postretirement settlement and curtailment (income) charges are related to the acceleration of prior service costs as a result of a reduction in the number of participants within the Union Hourly defined benefit pension plan during 2022 and 2020. 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 2023 $ 1.1 $ — 2024 1.2 — 2025 1.4 — 2026 1.5 — 2027 1.6 — 2028-2032 10.2 0.2 |
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. In millions December 31, 2022 Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Cash and short-term investments $ 0.2 $ 0.2 $ — $ — $ — Mutual funds 6.7 6.7 — — — Pooled funds 14.5 — — — 14.5 Other 1.7 — 1.7 — — Total assets $ 23.1 $ 6.9 $ 1.7 $ — $ 14.5 In millions December 31, 2021 Level 1 Level 2 Level 3 Investments Measured at Net Asset Value Cash and short-term investments $ 0.2 $ 0.2 $ — $ — $ — Mutual funds 9.2 9.2 — — — Pooled funds 20.3 — — — 20.3 Other 2.1 — 2.1 — — Total assets $ 31.8 $ 9.4 $ 2.1 $ — $ 20.3 |
Restructuring and Other (Inco_2
Restructuring and Other (Income) Charges, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Detail on the restructuring charges and other (income) charges, net is provided below. Years Ended December 31, In millions 2022 2021 2020 Severance and other employee-related costs (1) $ — $ 0.1 $ 6.4 Other (2) — — 2.1 Restructuring charges — 0.1 8.5 Business transformation costs 13.8 16.1 10.0 Other (income) charges, net 13.8 16.1 10.0 Total Restructuring and other (income) charges, net $ 13.8 $ 16.2 $ 18.5 _______________ (1) Represents severance and employee benefit charges. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Preliminary Purchase Price Allocation In millions Weighted Average Amortization Period Fair Value Cash and cash equivalents $ 8.0 Accounts receivable 28.7 Inventories (1) 48.4 Prepaid and other current assets 2.0 Property, plant and equipment 43.1 Intangible assets (2) Brands 10 years 15.0 Customer relationships 15 years 88.6 Developed technology 7 years 23.5 Goodwill (3) 109.8 Other assets, including operating leases 0.1 Total fair value of assets acquired $ 367.2 Accounts payable 13.9 Other liabilities 2.6 Total fair value of liabilities assumed $ 16.5 Less: Cash acquired (8.0) Plus: Amounts due from Seller 1.8 Total cash paid, less cash and restricted cash acquired $ 344.5 _______________ (1) Fair value of finished goods inventories acquired included a step-up in the value of $1.8 million, of which $0.9 million was expensed in the year ended December 31, 2022. The expense is included within "Cost of sales" on the consolidated statement of operations. Inventories are accounted for on a LIFO basis of accounting. (2) The aggregate amortization expense was $2.7 million for the year ended December 31, 2022. Estimated amortization expense is as follows: 2023 - $10.9 million, 2024 - $10.9 million, 2025 - $10.7 million, 2026 - $10.0 million, and 2027 - $10.0 million. |
Schedule of Acquisition Costs | The following table summarizes the costs incurred associated with these combined activities. Years Ended December 31, In millions 2022 2021 2020 Legal and professional service fees $ 5.0 $ 0.6 $ 1.8 Acquisition-related costs 5.0 0.6 1.8 Inventory fair value step-up amortization (1) 0.9 — — Acquisition and other-related costs $ 5.9 $ 0.6 $ 1.8 _______________ (1) Included within "Cost of sales" on the consolidated statement of operations. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Components of Income Taxes | Domestic and foreign components of Income (loss) before income taxes are shown below: Years Ended December 31, In millions 2022 2021 2020 Domestic $ 200.0 $ 107.4 $ 191.2 Foreign 69.6 55.4 43.9 Income (loss) before income taxes $ 269.6 $ 162.8 $ 235.1 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consisted of: Years Ended December 31, In millions 2022 2021 2020 Current Federal $ 41.7 $ 31.1 $ 22.5 State and local 6.3 2.7 5.1 Foreign 15.0 15.5 9.9 Total current $ 63.0 $ 49.3 $ 37.5 Deferred Federal $ (4.6) $ (15.3) $ 15.3 State and local (1.7) (1.6) (2.7) Foreign 1.3 12.3 3.6 Total deferred $ (5.0) $ (4.6) $ 16.2 Provision (benefit) for income taxes $ 58.0 $ 44.7 $ 53.7 |
Schedule of Effective Income Tax Rate Reconciliation | 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: Years Ended December 31, In millions, except percentage data 2022 2021 2020 Federal statutory tax rate $ 56.6 $ 34.2 $ 49.4 State and local income taxes, net of federal benefit 5.6 2.4 5.1 Foreign income tax rate differential 2.2 2.2 1.5 Changes in valuation allowance 0.1 0.8 (1.9) Deferred adjustments 0.1 0.3 (1.4) Legislative tax rate change 0.8 13.9 5.3 Excess share-based compensation (0.1) (0.3) 0.4 Federal and state tax credits (4.8) (4.9) (4.0) Tax on dividends, deemed dividends, and GILTI 2.7 0.1 0.1 Foreign derived intangible income (6.2) (5.1) (3.1) Officers compensation 0.6 0.3 0.5 Other 0.4 0.8 1.8 Provision (benefit) for income taxes $ 58.0 $ 44.7 $ 53.7 Effective tax rate 21.5 % 27.5 % 22.8 % |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities are as follows: December 31, In millions 2022 2021 Deferred tax assets: Employee benefits $ 19.1 $ 19.0 Net operating losses 10.5 11.6 Leases 17.2 16.5 Litigation verdict accrual 19.9 19.9 Research and experimental expenses 8.9 — Other 14.4 12.0 Total deferred tax assets $ 90.0 $ 79.0 Valuation allowance (9.2) (8.8) Total deferred tax assets, net of valuation allowance $ 80.8 $ 70.2 Deferred tax liabilities: Fixed assets $ 116.7 $ 108.6 Intangibles 34.6 43.7 Inventory 7.3 6.5 Leases 16.9 16.3 Other 6.1 2.9 Total deferred tax liabilities $ 181.6 $ 178.0 Net deferred tax asset (liability) (1) $ (100.8) $ (107.8) _______________ (1) Presentation in the table above is on a gross basis, however, due to jurisdictional netting, our net deferred tax asset and liability recorded on the consolidated balance sheets is $5.7 million and $106.5 million, respectively, as of December 31, 2022, and $6.8 million and $114.6 million, respectively, as of December 31, 2021. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: Years ended December 31, In millions 2022 2021 2020 Balance at beginning of year $ 0.3 $ 0.1 $ 0.1 Additions for tax positions related to prior years 0.5 0.3 — Reduction for lapse of statute of limitation — (0.1) — Balance at end of year $ 0.8 $ 0.3 $ 0.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Years Ended December 31, In millions 2022 2021 2020 Net sales Performance Materials $ 548.5 $ 516.8 $ 510.0 Performance Chemicals 1,119.8 874.7 706.1 Total net sales (1) $ 1,668.3 $ 1,391.5 $ 1,216.1 Segment EBITDA (2) Performance Materials $ 252.2 $ 249.4 $ 249.2 Performance Chemicals 200.4 172.8 148.7 Total Segment EBITDA (2) $ 452.6 $ 422.2 $ 397.9 Interest expense (61.8) (51.7) (47.1) Interest income 7.5 4.0 4.9 (Provision) benefit for income taxes (58.0) (44.7) (53.7) Depreciation and amortization - Performance Materials (36.1) (36.8) (31.2) Depreciation and amortization - Performance Chemicals (72.7) (73.1) (69.0) Pension and postretirement settlement and curtailment (charges) income, net (3) (0.2) — (0.1) Restructuring and other income (charges), net (4) (13.8) (16.2) (18.5) Acquisition and other-related costs (5) (5.9) (0.6) (1.8) Litigation verdict charge (6) — (85.0) — Net income (loss) $ 211.6 $ 118.1 $ 181.4 _______________ (1) Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation. (2) Segment EBITDA is the primary measure used by our chief operating decision maker to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses, research and technical expenses, other (income) expense, net, excluding depreciation and amortization). We have excluded the following items from segment EBITDA: interest expense, net, associated with corporate debt facilities, income taxes, depreciation, amortization, restructuring and other (income) charges, net, acquisition and other-related costs, litigation verdict charges, pension and postretirement settlement and curtailment (income) charges, net. (3) For all years, the charges relate to the Performance Materials segment. Our pension and postretirement settlement and curtailment charges (income) are related to the acceleration of prior service costs, as a result of a reduction in the number of participants within the Union Hourly defined benefit pension plan. These are excluded from our segment results because we consider these costs to be outside our operational performance. We continue to include the service cost, amortization of prior service cost, interest costs, expected return on plan assets, and amortized actual gains and losses in our segment EBITDA. (4) For the year ended December 31, 2022, charges of $4.8 million and $9.0 million relate to the Performance Materials segment and Performance Chemicals segment, respectively. For the year ended December 31, 2021, charges of $6.0 million and $10.2 million related to the Performance Materials segment and Performance Chemicals segment, respectively. For the year ended December, 31, 2020, charges of $7.4 million and $11.1 million relate to the Performance Materials segment and Performance Chemicals segment, respectively. Information about how restructuring and other (income) charges relate to our reporting segments is discussed in Note 15. (5) For the years ended December 31, 2022 and 2021, charges of $0.3 million and $0.2 million relate to the acquisition of a strategic investment in the Performance Materials segment. For the year ended December 31, 2022, charges of $5.6 million relate to the acquisition and integration of Ozark Materials into the Performance Chemicals segment. For more detail on these charges see Note 16. For the years ended December 31, 2021 and 2020, charges of $0.4 million and $1.8 million relate to the integration of the Caprolactone business, now referred to as our engineered polymers product line, into our Performance Chemicals segment. (6) For the year ended December 31, 2021, litigation verdict charge relates to the Performance Materials segment. Refer to Note 18 for additional information. |
Net Sales to External Customers by Product Line | Depreciation and amortization Capital expenditures Years Ended December 31, Years Ended December 31, In millions 2022 2021 2020 2022 2021 2020 Performance Materials $ 36.1 $ 36.8 $ 31.2 $ 59.8 $ 46.2 $ 30.6 Performance Chemicals 72.7 73.1 69.0 82.7 57.6 51.5 Total $ 108.8 $ 109.9 $ 100.2 $ 142.5 $ 103.8 $ 82.1 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Property, plant, and equipment, net December 31, In millions 2022 2021 North America $ 636.7 $ 551.1 Asia Pacific 70.4 75.0 Europe, Middle East, and Africa 91.4 93.5 South America 0.1 0.1 Property, plant, and equipment, net $ 798.6 $ 719.7 Total assets December 31, In millions 2022 2021 Performance Materials $ 784.6 $ 716.2 Performance Chemicals 1,877.4 1,675.6 Total segment assets (1) $ 2,662.0 $ 2,391.8 Corporate and other 74.5 77.2 Total assets $ 2,736.5 $ 2,469.0 _______________ (1) Segment assets exclude assets not specifically managed as part of one specific segment herein referred to as "Corporate and other." |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Years Ended December 31, In millions (except share and per share data) 2022 2021 2020 Net income (loss) $ 211.6 $ 118.1 $ 181.4 Basic and Diluted earnings (loss) per share (1) Basic earnings (loss) per share $ 5.54 $ 2.97 $ 4.39 Diluted earnings (loss) per share $ 5.50 $ 2.95 $ 4.37 Shares (2) Weighted average number of shares of common stock outstanding - Basic 38,179 39,816 41,330 Weighted average additional shares assuming conversion of potential common shares 292 243 217 Shares - diluted basis 38,471 40,059 41,547 _______________ (1) Diluted earnings (loss) per share is calculated using net income (loss) available to common stockholders divided by diluted weighted average shares of common shares outstanding during each period, which includes the dilutive effect of outstanding equity awards. (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: Years Ended December 31, In thousands 2022 2021 2020 Average number of potential common shares - antidilutive 204 98 177 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid and Other Current Assets | 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, as well as other (income) expense, net on the consolidated statement of operations: Prepaid and other current assets: December 31, In millions 2022 2021 Income and value added tax receivables $ 12.7 $ 21.8 Prepaid freight and supply agreements 2.7 2.2 Prepaid insurance 3.2 3.5 Non-trade receivables 5.4 2.6 Advances to suppliers 1.0 0.7 Prepaid software as a service 2.9 3.4 Contract asset (Note 4) 6.4 5.3 Restricted cash 0.6 0.6 Other 7.6 6.5 $ 42.5 $ 46.6 |
Other Assets | Other assets: December 31, In millions 2022 2021 Deferred financing charges $ 5.1 $ 3.0 Capitalized software, net 46.4 36.0 Land-use rights 4.6 5.1 Planned major maintenance activities 4.3 3.2 Deferred software as a service 4.0 3.2 Deferred compensation plan assets (Note 5) 14.4 14.9 Net investment hedge (Note 9) — 2.0 Finance lease assets, net (Note 13) 0.1 0.3 Other 6.6 6.5 $ 85.5 $ 74.2 |
Accrued Expenses | Accrued expenses: December 31, In millions 2022 2021 Accrued interest $ 9.0 $ 13.3 Accrued taxes 5.3 8.2 Accrued freight 3.9 5.5 Accrued rebates 13.7 7.5 Restructuring reserves (Note 15) 0.5 0.5 Accrued royalties and commissions 2.4 1.5 Currency exchange and natural gas contracts (Note 9) 2.1 0.6 Accrued energy 3.2 2.8 Other 14.3 11.8 $ 54.4 $ 51.7 |
Other Liabilities | Other liabilities: December 31, In millions 2022 2021 Deferred compensation arrangements (Note 5) $ 12.5 $ 13.7 Pension & OPEB liabilities (Note 14) 10.4 14.1 Unrecognized tax benefits (Note 17) 0.8 0.3 Net investment hedge (Note 9) — 1.0 Interest rate swaps (Note 9) — 4.0 Contingent consideration (Note 5) — 0.8 Litigation verdict accrual (Note 18) 85.0 85.0 Other 6.2 6.6 $ 114.9 $ 125.5 |
Other (Income) Expense, Net | Other (income) expense, net: Years Ended December 31, In millions 2022 2021 2020 Foreign currency translation (income)/loss $ 2.3 $ 2.5 $ (5.8) Royalty and sundry (income)/loss (0.2) (0.6) (0.4) Litigation verdict charge (Note 18) — 85.0 — Other (income)/expense, net (3.8) (7.0) 2.1 $ (1.7) $ 79.9 $ (4.1) |
Background - Narrative (Details
Background - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable and Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts receivable | $ 0.5 | $ 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk exposure | $ 9.3 | $ 5.7 | |
Sales | Automotive Industry | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30% | ||
Sales | Performance Materials | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 4% | 4% | 4% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Depreciation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and leasehold improvements | Minimum | |
Property, Plant and Equipment | |
PPE useful life | 20 years |
Buildings and leasehold improvements | 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 |
Production control system equipment and hardware, laboratory testing equipment | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 23% |
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 |
Control systems, instrumentation, metering equipment | |
Property, Plant and Equipment | |
PPE useful life | 15 years |
Percentage of machinery and equipment | 11% |
Production vessels and kilns, storage tanks, piping | |
Property, Plant and Equipment | |
PPE useful life | 20 years |
Percentage of machinery and equipment | 49% |
Blending equipment, storage tanks, piping, shipping equipment and platforms, safety equipment | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 7% |
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 |
Machinery & equipment support structures and foundations | |
Property, Plant and Equipment | |
PPE useful life | 40 years |
Percentage of machinery and equipment | 3% |
Various | |
Property, Plant and Equipment | |
Percentage of machinery and equipment | 7% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Operating Lease Terms (Details) | Dec. 31, 2022 |
Administrative offices | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 1 year |
Administrative offices | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 15 years |
Manufacturing buildings | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 4 years |
Manufacturing buildings | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 28 years |
Manufacturing and office equipment | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 1 year |
Manufacturing and office equipment | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 11 years |
Warehousing and storage facilities | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 3 years |
Warehousing and storage facilities | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 10 years |
Vehicles | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 3 years |
Vehicles | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 6 years |
Rail cars | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 0 years |
Rail cars | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 8 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, impairment loss | $ 0 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible assets useful life | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible assets useful life | 20 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Capitalized Software (Details) - Capitalized software | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Property, Plant and Equipment | |
PPE useful life | 3 years |
Maximum | |
Property, Plant and Equipment | |
PPE useful life | 15 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Payment term (in days) | 0 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Payment term (in days) | 60 days |
Revenues - Revenue by segment (
Revenues - Revenue by segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,668.3 | $ 1,391.5 | $ 1,216.1 |
Performance Materials segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 548.5 | 516.8 | 510 |
Performance Chemicals segment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,119.8 | 874.7 | 706.1 |
Performance Chemicals segment | Pavement Technologies product line | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 241.3 | 195.4 | 186.8 |
Performance Chemicals segment | Industrial Specialties product line | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 633.8 | 493.5 | 391.6 |
Performance Chemicals segment | Engineered Polymers product line | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 244.7 | $ 185.8 | $ 127.7 |
Revenues - Revenue by geographi
Revenues - Revenue by geographic area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,668.3 | $ 1,391.5 | $ 1,216.1 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 983.2 | 763.3 | 676.9 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 398.7 | 385.5 | 345.4 |
Europe, Middle East, and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 242.2 | 219.6 | 174.9 |
South America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 44.2 | $ 23.1 | $ 18.9 |
Revenues - Contract assets (Det
Revenues - Contract assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 0 | |
Change in Contract with Customer, Asset [Roll Forward] | ||
Contract asset at beginning of period | 5,300,000 | $ 5,700,000 |
Additions | 20,700,000 | 21,500,000 |
Reclassification to accounts receivable, billed to customers | (19,600,000) | (21,900,000) |
Contract asset at end of period | $ 6,400,000 | $ 5,300,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Contingent consideration | $ 0 | $ 0.8 |
Life insurance owned by company | 13.3 | 14 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan investments | 1.1 | 0.9 |
Total assets | 1.1 | 0.9 |
Liabilities: | ||
Deferred compensation arrangement | 12.5 | 13.7 |
Contingent consideration | 0.8 | |
Total liabilities | 12.5 | 14.5 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Deferred compensation plan investments | 1.1 | 0.9 |
Total assets | 1.1 | 0.9 |
Liabilities: | ||
Deferred compensation arrangement | 12.5 | 13.7 |
Contingent consideration | 0 | |
Total liabilities | 12.5 | 13.7 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Deferred compensation plan investments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation arrangement | 0 | 0 |
Contingent consideration | 0 | |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Deferred compensation plan investments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation arrangement | 0 | 0 |
Contingent consideration | 0.8 | |
Total liabilities | $ 0 | $ 0.8 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended | 21 Months Ended | ||
Dec. 31, 2021 USD ($) investment | Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of strategic investments acquired | investment | 2 | 2 | |||
Payments to acquire equity method investments | $ 77,400,000 | $ 35,300,000 | $ 0 | ||
Impairment of equity investment | 0 | 0 | |||
Unfunded commitments | $ 0 | $ 6,700,000 | 0 | $ 6,700,000 | |
Unfunded commitment term | 10 years | ||||
Payments to acquire investments | 18,800,000 | ||||
Finance lease obligations | 102,400,000 | $ 101,900,000 | 102,400,000 | 101,900,000 | |
Debt securities, held-to-maturity, restricted | 76,100,000 | 78,000,000 | 76,100,000 | 78,000,000 | |
Held-to-maturity, allowance for credit loss | 500,000 | 600,000 | 500,000 | 600,000 | |
Restricted cash | 4,700,000 | 7,000,000 | 4,700,000 | 7,000,000 | |
Restricted investments, fair value | 80,000,000 | 74,700,000 | 80,000,000 | 74,700,000 | |
Total debt including finance lease obligations | 1,280,500,000 | 1,479,900,000 | 1,280,500,000 | 1,479,900,000 | |
Contingent consideration liability | 800,000 | $ 0 | 800,000 | $ 0 | |
Earn out period | 5 years | ||||
Privately Held Companies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of strategic investments acquired | investment | 2 | ||||
Payments to acquire equity method investments | $ 14,600,000 | 16,500,000 | |||
Equity method investments | 16,500,000 | 28,200,000 | 16,500,000 | $ 28,200,000 | |
Equity securities where fair value is not readily determinable | 18,800,000 | 80,900,000 | 18,800,000 | 80,900,000 | |
Venture Capital Fund | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payments to acquire equity method investments | 800,000 | ||||
Equity method investments | 0 | 700,000 | 0 | 700,000 | |
Strategic Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payments to acquire investments | 62,000,000 | ||||
Nexeon Limited | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payments to acquire investments | 60,000,000 | ||||
Impairment on investments | 0 | 0 | |||
2020 Acquisitions | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration liability | 7,000,000 | 7,000,000 | |||
Liability | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Revenue Earn-out consideration | 800,000 | 0 | 800,000 | 0 | |
Debt Obligations - Long Term Bonds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligations | 102,400,000 | 101,900,000 | 102,400,000 | 101,900,000 | |
Debt Obligations - Long Term Bonds | Estimate of Fair Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligations | 118,600,000 | 106,200,000 | 118,600,000 | 106,200,000 | |
Variable Interest Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total debt including finance lease obligations | 328,100,000 | 828,000,000 | 328,100,000 | 828,000,000 | |
4.50% Senior Notes due 2026 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior notes | 850,000,000 | 550,000,000 | 850,000,000 | 550,000,000 | |
4.50% Senior Notes due 2026 | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, fair value | $ 843,900,000 | 471,800,000 | $ 843,900,000 | 471,800,000 | |
Wickliffe, Kentucky Manufacturing Facility | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligations | $ 80,000,000 | $ 80,000,000 |
Fair Value Measurements - Credi
Fair Value Measurements - Credit Ratings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | $ 71.6 | $ 71.9 |
AA+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | 13.4 | 13.4 |
AA | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | 0 | 0 |
Standard & Poor's, AA- Rating | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | 10.5 | 10.6 |
A | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | 13.2 | 13.3 |
A- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | 14.1 | 14.1 |
BBB+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity, amortized cost, before allowance for credit loss | $ 20.4 | $ 20.5 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net | ||
Raw materials | $ 106.7 | $ 48.8 |
Production materials, stores and supplies | 27.9 | 26.8 |
Finished and in-process goods | 228.2 | 183.4 |
Subtotal | 362.8 | 259 |
Less: LIFO reserve | (27.8) | (17.8) |
Inventories, net | $ 335 | $ 241.2 |
Percentage of FIFO inventory | 47% | 38% |
Percentage of weighted average cost inventory | 8% | 11% |
Percentage of LIFO inventory | 45% | 51% |
Inventories, net - Narrative (D
Inventories, net - Narrative (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Percentage of FIFO inventory | 47% | 38% |
Percentage of weighted average cost inventory | 8% | 11% |
Percentage of LIFO inventory | 45% | 51% |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment | ||
Total cost | $ 1,509,400,000 | $ 1,375,300,000 |
Less: accumulated depreciation | (710,800,000) | (655,600,000) |
Property, plant and equipment, net | 798,600,000 | 719,700,000 |
Finance lease obligations | 101,900,000 | 102,400,000 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Total cost | 1,162,700,000 | 1,113,300,000 |
Property, plant and equipment, net | 25,200,000 | 27,700,000 |
Finance lease obligations | 94,300,000 | 94,500,000 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment | ||
Total cost | 200,900,000 | 177,200,000 |
Property, plant and equipment, net | 34,900,000 | 26,200,000 |
Finance lease obligations | 39,600,000 | 29,000,000 |
Land and land improvements | ||
Property, Plant and Equipment | ||
Total cost | 24,900,000 | 20,400,000 |
Construction in progress | ||
Property, Plant and Equipment | ||
Total cost | 120,900,000 | 64,400,000 |
Property, plant and equipment, net | $ 0 | $ 0 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 70.9 | $ 70.6 | $ 61.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Carrying Amount (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 442 | $ 445.3 |
Foreign currency translation | (33.3) | (3.3) |
Goodwill acquired | 109.8 | |
Goodwill, ending balance | 518.5 | 442 |
Performance Chemicals | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 437.7 | 441 |
Foreign currency translation | (33.3) | (3.3) |
Goodwill acquired | 109.8 | |
Goodwill, ending balance | 514.2 | 437.7 |
Performance Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 4.3 | 4.3 |
Foreign currency translation | 0 | 0 |
Goodwill acquired | 0 | |
Goodwill, ending balance | $ 4.3 | $ 4.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance, Gross Asset Value | $ 472.2 | $ 477.6 | |
Retirements | (0.5) | (2.2) | |
Acquisitions | 127.1 | ||
Foreign currency translation | (32.6) | (3.2) | |
Ending balance, Gross Asset Value | 566.2 | 472.2 | $ 477.6 |
Beginning balance, Accumulated Amortization | (134.6) | (104.3) | |
Amortization | (33.6) | (33.2) | (32.6) |
Retirements | 0.5 | 2.1 | |
Foreign currency translation | 6.3 | 0.8 | |
Ending balance, Accumulated Amortization | (161.4) | (134.6) | (104.3) |
Finite-Lived Intangible Assets, Net, Total | $ 404.8 | 337.6 | |
Remaining amortization period | 11 years 3 months 18 days | ||
Customer contracts and relationships | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance, Gross Asset Value | $ 317.8 | 319.5 | |
Retirements | 0 | 0 | |
Acquisitions | 88.6 | ||
Foreign currency translation | (17.9) | (1.7) | |
Ending balance, Gross Asset Value | 388.5 | 317.8 | 319.5 |
Beginning balance, Accumulated Amortization | (95) | (73.6) | |
Amortization | (22.2) | (21.7) | |
Retirements | 0 | 0 | |
Foreign currency translation | 3.4 | 0.3 | |
Ending balance, Accumulated Amortization | (113.8) | (95) | (73.6) |
Finite-Lived Intangible Assets, Net, Total | $ 274.7 | ||
Remaining amortization period | 11 years 9 months 18 days | ||
Brands | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance, Gross Asset Value | $ 81.7 | 82.4 | |
Retirements | 0 | 0 | |
Acquisitions | 15 | ||
Foreign currency translation | (7.5) | (0.7) | |
Ending balance, Gross Asset Value | 89.2 | 81.7 | 82.4 |
Beginning balance, Accumulated Amortization | (20.3) | (15.8) | |
Amortization | (4.6) | (4.7) | |
Retirements | 0 | 0 | |
Foreign currency translation | 1 | 0.2 | |
Ending balance, Accumulated Amortization | (23.9) | (20.3) | (15.8) |
Finite-Lived Intangible Assets, Net, Total | $ 65.3 | ||
Remaining amortization period | 12 years 3 months 18 days | ||
Developed Technology | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance, Gross Asset Value | $ 72.2 | 73 | |
Retirements | 0 | 0 | |
Acquisitions | 23.5 | ||
Foreign currency translation | (7.2) | (0.8) | |
Ending balance, Gross Asset Value | 88.5 | 72.2 | 73 |
Beginning balance, Accumulated Amortization | (18.8) | (12.5) | |
Amortization | (6.8) | (6.6) | |
Retirements | 0 | 0 | |
Foreign currency translation | 1.9 | 0.3 | |
Ending balance, Accumulated Amortization | (23.7) | (18.8) | (12.5) |
Finite-Lived Intangible Assets, Net, Total | $ 64.8 | ||
Remaining amortization period | 8 years 4 months 24 days | ||
Other | |||
Finite-Lived Intangible Assets [Roll Forward] | |||
Beginning balance, Gross Asset Value | $ 0.5 | 2.7 | |
Retirements | (0.5) | (2.2) | |
Acquisitions | 0 | ||
Foreign currency translation | 0 | 0 | |
Ending balance, Gross Asset Value | 0 | 0.5 | 2.7 |
Beginning balance, Accumulated Amortization | (0.5) | (2.4) | |
Amortization | 0 | (0.2) | |
Retirements | 0.5 | 2.1 | |
Foreign currency translation | 0 | 0 | |
Ending balance, Accumulated Amortization | 0 | $ (0.5) | $ (2.4) |
Finite-Lived Intangible Assets, Net, Total | $ 0 | ||
Remaining amortization period | 0 days |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Intangible Assets by Segments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 404.8 | $ 337.6 |
Performance Materials | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | 1.7 | 1.9 |
Performance Chemicals | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 403.1 | $ 335.7 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, net - Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 33.6 | $ 33.2 | $ 32.6 |
Cost of sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | 0 | 0 | 0.1 |
Selling, general, and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 33.6 | $ 33.2 | $ 32.5 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, net - Maturity (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2023 amortization expense | $ 41.8 |
2024 amortization expense | 41.5 |
2025 amortization expense | 41.2 |
2026 amortization expense | 40.5 |
2027 amortization expense | $ 40.5 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) mmbtus in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) mmbtus | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Derivative [Line Items] | |||
Interest income | $ 1,700,000 | $ (79,900,000) | $ 4,100,000 |
Cash flow hedged loss to be reclassified within 12 months | 1,700,000 | ||
Currency exchange contracts | |||
Derivative [Line Items] | |||
Derivative, fair value, net asset (liability) | 0 | 1,000,000 | |
Interest and dividend | 1,100,000 | 500,000 | $ 1,600,000 |
Foreign currency hedging | |||
Derivative [Line Items] | |||
Derivative, notional amount | 16,900,000 | ||
Derivative, fair value, net asset (liability) | (500,000) | 500,000 | |
Commodity hedging | |||
Derivative [Line Items] | |||
Derivative, fair value, net asset (liability) | $ (1,600,000) | (600,000) | |
Commodity hedging | Swap | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount | mmbtus | 1.4 | ||
Commodity hedging | Zero Cost Collar | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount | mmbtus | 0.5 | ||
Interest rate swap contracts | |||
Derivative [Line Items] | |||
Proceeds from derivative instruments | $ 14,700,000 | ||
Gain on derivative | 14,700,000 | ||
Derivative, notional amount | 166,200,000 | ||
Derivative, fair value, net asset (liability) | 0 | $ (4,000,000) | |
Interest rate swap contracts | Reclassification out of Accumulated Other Comprehensive Income | Derivative instruments | |||
Derivative [Line Items] | |||
Interest income | $ 1,700,000 | ||
Interest rate swap contracts | US Dollar Denominated | |||
Derivative [Line Items] | |||
Derivative, fixed interest rate | 3.79% |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Effect of Cash Flow and Net Investment Hedge Accounting on AOCI (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net sales | $ 1,668,300,000 | $ 1,391,500,000 | $ 1,216,100,000 |
Cost of sales | 1,098,200,000 | 878,700,000 | 750,600,000 |
Interest income | $ 1,700,000 | (79,900,000) | 4,100,000 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest income | ||
Derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total | $ 11,100,000 | 7,200,000 | (5,600,000) |
Reclassifications from AOCI to net income | 10,200,000 | 1,000,000 | (1,200,000) |
Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total | 10,200,000 | 1,000,000 | (1,200,000) |
Accumulated Gain (Loss) Net Investment Hedging | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total | 13,900,000 | 9,600,000 | (11,700,000) |
Accumulated Gain (Loss) Net Investment Hedging | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Total | 1,100,000 | 500,000 | 1,600,000 |
Currency exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Reclassifications from AOCI to net income | 0 | 0 | 0 |
Currency exchange contracts | Derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net sales | 900,000 | 800,000 | (100,000) |
Currency exchange contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net sales | 2,000,000 | 300,000 | (100,000) |
Currency exchange contracts | Accumulated Gain (Loss) Net Investment Hedging | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest income | 13,900,000 | 9,600,000 | (11,700,000) |
Currency exchange contracts | Accumulated Gain (Loss) Net Investment Hedging | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest income | 1,100,000 | 500,000 | 1,600,000 |
Natural gas contracts | Derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of sales | 4,400,000 | 1,600,000 | (500,000) |
Natural gas contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cost of sales | 6,500,000 | 700,000 | (1,100,000) |
Interest rate swap contracts | Derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest income | 5,800,000 | 4,800,000 | (5,000,000) |
Interest rate swap contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest income | 1,700,000 | $ 0 | $ 0 |
Interest income | $ 1,700,000 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Fair Value of Hedging Contracts (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Total assets | $ 2.5 | |
Liabilities: | ||
Total liabilities | $ 2.1 | 5.6 |
Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 2.5 | |
Liabilities: | ||
Total liabilities | 2.1 | 5.6 |
Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | 0 |
Natural gas contracts | ||
Liabilities: | ||
Total liabilities | 1.6 | 0.6 |
Natural gas contracts | Level 1 | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Natural gas contracts | Level 2 | ||
Liabilities: | ||
Total liabilities | 1.6 | 0.6 |
Natural gas contracts | Level 3 | ||
Liabilities: | ||
Total liabilities | 0 | 0 |
Currenct exchange contracts | ||
Assets: | ||
Total assets | 0.5 | |
Liabilities: | ||
Total liabilities | 0.5 | |
Currenct exchange contracts | Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | |
Currenct exchange contracts | Level 2 | ||
Assets: | ||
Total assets | 0.5 | |
Liabilities: | ||
Total liabilities | 0.5 | |
Currenct exchange contracts | Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | $ 0 | |
Net investment hedge | ||
Assets: | ||
Total assets | 2 | |
Liabilities: | ||
Total liabilities | 1 | |
Net investment hedge | Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | |
Net investment hedge | Level 2 | ||
Assets: | ||
Total assets | 2 | |
Liabilities: | ||
Total liabilities | 1 | |
Net investment hedge | Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | |
Interest rate swap contracts | ||
Liabilities: | ||
Total liabilities | 4 | |
Interest rate swap contracts | Level 1 | ||
Liabilities: | ||
Total liabilities | 0 | |
Interest rate swap contracts | Level 2 | ||
Liabilities: | ||
Total liabilities | 4 | |
Interest rate swap contracts | Level 3 | ||
Liabilities: | ||
Total liabilities | $ 0 |
Debt, including Finance Lease_3
Debt, including Finance Lease Obligations - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 1,479.9 | $ 1,280.5 |
Less: debt issuance costs | 6.5 | 10.9 |
Total debt including finance lease obligations, net of debt issuance costs | 1,473.4 | 1,269.6 |
Less: debt maturing within one year | 0.9 | 19.6 |
Long-term debt including finance lease obligations | 1,472.5 | 1,250 |
Revolving Credit Facility and other lines of credit | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | 828 | 0 |
Letters of credit outstanding | 2.3 | 2.5 |
Available under the facility | 169.7 | 497.5 |
Term Loan | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 0 | 328.1 |
Senior Notes | 3.88% Senior Notes due 2028 | ||
Line of Credit Facility | ||
Stated rate | 3.88% | |
Total debt including finance lease obligations | $ 550 | 550 |
Senior Notes | 4.50% Senior Notes due 2026 | ||
Line of Credit Facility | ||
Stated rate | 4.50% | |
Total debt including finance lease obligations | $ 0 | 300 |
Finance Lease Obligations | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 101.9 | $ 102.4 |
Debt, including Finance Lease_4
Debt, including Finance Lease Obligations - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | Jun. 23, 2022 | Dec. 31, 2022 | Jun. 22, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility | |||||
Debt instrument, face amount | $ 1,000,000,000 | $ 500,000,000 | |||
Debt instrument, basis spread on variable rate | 0% | ||||
Debt issuance costs | $ 3,000,000 | $ 0 | $ 2,200,000 | ||
Minimum | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate | 1% | ||||
Minimum | Base Rate | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate | 0% | ||||
Maximum | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate | 1.75% | ||||
Maximum | Base Rate | |||||
Line of Credit Facility | |||||
Debt instrument, basis spread on variable rate | 0.75% |
Debt, including Finance Lease_5
Debt, including Finance Lease Obligations - Term Loan Repayment (Details) - Term Loan - USD ($) $ in Millions | 12 Months Ended | |
Jun. 23, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Repayments of debt | $ 323 | |
Interest expense | $ 1.3 | |
Debt fee | 0.4 | |
Debt issuance costs | $ 0.4 |
Debt, including Finance Lease_6
Debt, including Finance Lease Obligations - Senior Notes (Details) - USD ($) $ in Millions | Apr. 27, 2022 | Oct. 28, 2020 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||
Debt issued | $ 1,479.9 | $ 1,280.5 | ||
4.50% Senior Notes due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Repurchased face amount | $ 300 | |||
Stated rate | 4.50% | |||
Redemption premium | 3.4 | |||
Debt issuance costs | $ 2.7 | |||
Debt issued | $ 0 | 300 | ||
3.88% Senior Notes due 2028 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated rate | 3.88% | |||
Debt issued | $ 550 | $ 550 | ||
Proceeds from issuance of debt | $ 8.8 | |||
Percentage of principal amount redeemable | 40% | |||
Redemption price | 103.875% | |||
3.88% Senior Notes due 2028 | Senior Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Redemption notification period | 10 days | |||
3.88% Senior Notes due 2028 | Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Redemption notification period | 60 days |
Debt, including Finance Lease_7
Debt, including Finance Lease Obligations - Debt Covenants (Details) - Revolving Credit Facility | Dec. 31, 2022 |
Debt Instrument [Line Items] | |
Leverage ratio potential increase | 4.5 |
Leverage ratio, interest | 9.9 |
Actual leverage ratio | 2.5 |
Maximum | |
Debt Instrument [Line Items] | |
Leverage ratio | 4 |
Minimum | |
Debt Instrument [Line Items] | |
Leverage ratio, interest | 3 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 09, 2016 | Dec. 31, 2022 | May 15, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum number of shares per employees (in shares) | 5,000 | ||
Average price of shares purchased (dollars per share) | $ 46.79 | ||
Performance Shares (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Performance period | 3 years | ||
Vesting period on stock options | 3 years | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum shares reserve for equity awards (in shares) | 250,000 | ||
Shares available for grant (in shares) | 56,873 | ||
Discount on common stock (as a percentage) | 15% | ||
Maximum contribution amount | $ 25,000 | ||
Purchase price of common stock (as a percentage) | 85% | ||
Shares purchased under the ESPP (in shares) | 48,389 | ||
Average price of shares purchased (dollars per share) | $ 58.93 | ||
Stock option expense | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expiration period (in years) | 10 years | ||
Unrecognized stock based compensation | $ 1,100,000 | ||
Unrecognized stock based compensation expense, recognition period (years) | 1 year | ||
Stock option expense | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period on stock options | 1 year | ||
Stock option expense | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period on stock options | 3 years | ||
RSUs and DSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period on stock options | 1 year | ||
RSUs and DSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period on stock options | 3 years | ||
RSU, DSU and PSU expense | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized stock based compensation | $ 15,600,000 | ||
Unrecognized stock based compensation expense, recognition period (years) | 1 year 2 months 12 days | ||
2016 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum shares reserve for equity awards (in shares) | 4,000,000 | ||
Shares available for grant (in shares) | 2,930,182 |
Share-based Compensation - Allo
Share-based Compensation - Allocated Share-based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 16.1 | $ 12.3 | $ 8.4 |
Income tax benefit | (3.1) | (2.3) | (1.5) |
Total share-based compensation expense, net of tax | 13 | 10 | 6.9 |
Stock option expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 1.5 | 1.7 | 0.6 |
ESPP expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | 0.7 | 0.6 | 0.5 |
RSU, DSU and PSU expense | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation | $ 13.9 | $ 10 | $ 7.3 |
Share-based Compensation - Assu
Share-based Compensation - Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Risk-free interest rate | 1.80% | 1% | 1% |
Average life of options (years) | 6 years | 6 years 6 months | 6 years 6 months |
Volatility | 40% | 46% | 33.50% |
Dividend yield | 0% | 0% | 0% |
Fair value per stock option (per share) | $ 28.80 | $ 33.07 | $ 15.87 |
Share-based Compensation - Opti
Share-based Compensation - Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options (in thousands) | ||
Outstanding beginning balance (shares) | 338 | |
Granted (shares) | 74 | |
Exercised (shares) | (33) | |
Forfeited (shares) | (44) | |
Cancelled (shares) | 0 | |
Outstanding ending balance (shares) | 335 | 338 |
Stock options exercisable (shares) | 224 | |
Weighted-average exercise price (per share) | ||
Weighted average exercise price (per share) outstanding | $ 63.18 | $ 61.34 |
Weighted average exercise price (per share) granted | 68.23 | |
Exercised (dollars per share) | 46.79 | |
Forfeited (dollars per share) | 69.94 | |
Cancelled (dollars per share) | 0 | |
Weighted average exercise price (per share) outstanding | 61.34 | |
Weighted average exercise price (per share) exercisable | $ 61.94 | |
Weighted-average remaining contractual term (years) | 6 years 1 month 6 days | 6 years 8 months 12 days |
Exercisable, weighted-average remaining contractual term (years) | 4 years 10 months 24 days | |
Aggregate intrinsic value | $ 4,100 | $ 5,366 |
Stock options exercisable, aggregate intrinsic value | $ 3,568 |
Share-based Compensation - RSU,
Share-based Compensation - RSU, DSU, and PSU Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs and DSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ||
Nonvested beginning balance (shares) | 301,000 | 243,000 |
Granted (shares) | 179,000 | |
Vested (shares) | (95,000) | |
Forfeited (shares) | (26,000) | |
Nonvested ending balance (shares) | 301,000 | |
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), beginning balance | $ 67.36 | |
Weighted average grant date fair value (per share) granted | 66.42 | |
Weighted average grant date fair value (per share) vested | 71.62 | |
Weighted average grant date fair value (per share) forfeited | 63.32 | |
Weighted average grant date fair value (per share), ending balance | $ 6.04 | $ 67.36 |
RSUs and DSUs | Non-Employee Director | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ||
Nonvested beginning balance (shares) | 5,715 | |
Nonvested ending balance (shares) | 5,715 | |
Performance Shares (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ||
Nonvested beginning balance (shares) | 193,000 | 166,000 |
Granted (shares) | 83,000 | |
Vested (shares) | 0 | |
Forfeited (shares) | (56,000) | |
Nonvested ending balance (shares) | 193,000 | |
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), beginning balance | $ 65.91 | |
Weighted average grant date fair value (per share) granted | 68.23 | |
Weighted average grant date fair value (per share) vested | 0 | |
Weighted average grant date fair value (per share) forfeited | 82.96 | |
Weighted average grant date fair value (per share), ending balance | $ 61.88 | $ 65.91 |
Vesting period | 3 years |
Equity - Rollforward of Accumul
Equity - Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 673.8 | $ 642.1 | $ 530.8 |
Unrealized actuarial gains (losses) and prior service (costs) credits | 0.1 | 0.2 | 0.2 |
Less: tax provision (benefit) | (1) | (0.4) | 0.6 |
Net actuarial gains (losses) and prior service (costs) credits | 0.2 | 0.1 | 0.3 |
Other comprehensive income (loss), net of tax | (59.9) | 8.4 | 9.7 |
Ending balance | 698.3 | 673.8 | 642.1 |
Total AOCI ending balance at December 31 | 698.3 | 673.8 | 642.1 |
Accumulated other comprehensive income (loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 13.1 | 4.7 | (5) |
Ending balance | (46.8) | 13.1 | 4.7 |
Total AOCI ending balance at December 31 | (46.8) | 13.1 | 4.7 |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 18.4 | 16.4 | 1.5 |
Net gains (losses) on foreign currency translation | (74.9) | (5.3) | 23.9 |
Gains (losses) before reclassification, before tax | 13.9 | 9.6 | (11.7) |
Less: tax provision (benefit) | 3.2 | 2.3 | (2.7) |
Net gains (losses) on net investment hedges | 10.7 | 7.3 | (9) |
Other comprehensive income (loss), net of tax | (64.2) | 2 | 14.9 |
Ending balance | (45.8) | 18.4 | 16.4 |
Total AOCI ending balance at December 31 | (45.8) | 18.4 | 16.4 |
Derivative instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2.1) | (6.9) | (3.5) |
Gains (losses) before reclassification, before tax | 11.1 | 7.2 | (5.6) |
Less: tax provision (benefit) | 2.6 | 1.7 | (1.3) |
Net gains (losses) on derivative instruments | 8.5 | 5.5 | (4.3) |
(Gains) losses reclassified to net income | (10.2) | (1) | 1.2 |
Less: tax (provision) benefit | (2.4) | (0.3) | 0.3 |
Net (gains) losses reclassified to net income | (7.8) | (0.7) | 0.9 |
Other comprehensive income (loss), net of tax | 0.7 | 4.8 | (3.4) |
Ending balance | (1.4) | (2.1) | (6.9) |
Total AOCI ending balance at December 31 | (1.4) | (2.1) | (6.9) |
Pension and other postretirement benefits | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3.2) | (4.8) | (3) |
Unrealized actuarial gains (losses) and prior service (costs) credits | 4.4 | 1.9 | (2.7) |
Less: tax provision (benefit) | 1 | 0.4 | (0.6) |
Net actuarial gains (losses) and prior service (costs) credits | 3.4 | 1.5 | (2.1) |
Gains (losses) before reclassification, before tax | 0.3 | 0.2 | 0.3 |
Less: tax (provision) benefit | 0.1 | 0.1 | 0 |
Net (gains) losses reclassified to net income | 0.2 | 0.1 | 0.3 |
Other comprehensive income (loss), net of tax | 3.6 | 1.6 | (1.8) |
Ending balance | 0.4 | (3.2) | (4.8) |
Total AOCI ending balance at December 31 | $ 0.4 | $ (3.2) | $ (4.8) |
Equity - Reclassification of AO
Equity - Reclassification of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | $ 1,668.3 | $ 1,391.5 | $ 1,216.1 |
Cost of sales | 1,098.2 | 878.7 | 750.6 |
Interest income | 7.5 | 4 | 4.9 |
Other (income) expense, net | (1.7) | 79.9 | (4.1) |
Income (loss) before income taxes | 269.6 | 162.8 | 235.1 |
(Provision) benefit for income taxes | (58) | (44.7) | (53.7) |
Net income (loss) | 211.6 | 118.1 | 181.4 |
Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) before income taxes | 10.2 | 1 | (1.2) |
(Provision) benefit for income taxes | (2.4) | (0.3) | 0.3 |
Net income (loss) | 7.8 | 0.7 | (0.9) |
Amortization of prior service credit (costs) | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | (0.1) | (0.1) | (0.1) |
Amortization of unrecognized net actuarial and other gains (losses) | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other (income) expense, net | 0 | (0.1) | (0.1) |
Pension and other postretirement benefits | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | (0.2) | 0 | (0.1) |
Income (loss) before income taxes | (0.3) | (0.2) | (0.3) |
(Provision) benefit for income taxes | 0.1 | 0.1 | 0 |
Net income (loss) | (0.2) | (0.1) | (0.3) |
Currenct exchange contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net sales | 2 | 0.3 | (0.1) |
Natural gas contracts | Derivative instruments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | 4.4 | 1.6 | (0.5) |
Natural gas contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | 6.5 | 0.7 | (1.1) |
Interest rate swap contracts | Derivative instruments | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest income | 1.7 | $ 0 | $ 0 |
Other (income) expense, net | $ (1.7) |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 28, 2020 | |
Equity [Abstract] | ||||
Amount remained unused under repurchase program | $ 444,700,000 | $ 500,000,000 | ||
Shares repurchased | $ 145,200,000 | $ 109,400,000 | $ 88,000,000 | |
Shares repurchased (shares) | 2,112,463 | 1,421,379 | 1,533,442 | |
Shares acquired average cost per share (usd per share) | $ 68.73 | $ 76.98 | $ 57.38 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets, net | $ 56.6 | $ 52.4 | |
Total lease assets | 116.8 | 106.6 | |
Current lease liabilities | 16.5 | 17.4 | |
Finance lease liabilities | 0.9 | 0.8 | |
Noncurrent operating lease liabilities | 40.8 | 36.2 | |
Finance lease liabilities | 101 | 101.6 | |
Total lease liabilities | 159.2 | 156 | |
Operating lease amortization | 40.8 | 35.5 | |
Accrued interest | $ 0.2 | $ 0.2 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant, and equipment, net | Property, plant, and equipment, net | Property, plant, and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Notes payable and current maturities of long-term debt | Notes payable and current maturities of long-term debt | Notes payable and current maturities of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt including finance lease obligations | Long-term debt including finance lease obligations | Long-term debt including finance lease obligations |
Property, plant, and equipment, net | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease assets, net | $ 60.1 | $ 53.9 | |
Finance lease assets | 73.8 | 69.6 | |
Other assets, net | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease assets, net | 0.1 | 0.3 | |
Finance lease assets | $ 1.4 | $ 1.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) lease | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Finance lease liability | $ 101.9 | $ 102.4 |
Number of leases | lease | 3 | |
Term of contract | 15 years | |
Wickliffe, Kentucky Manufacturing Facility | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease liability | $ 80 | |
Corporate Headquarters | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease liability | 21.6 | |
Greenville, Alabama Manufacturing Site | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease liability | $ 0.3 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost | |||
Interest on lease liabilities | $ 7.5 | $ 7.5 | $ 6.8 |
Net lease cost | 33.4 | 33.3 | 31.5 |
Cost of sales | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 19.9 | 19.5 | 19.4 |
Finance lease cost | |||
Amortization of leased assets | 3 | 3.3 | 2.6 |
Selling, general, and administrative expenses | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | 1.4 | 1.4 | 1.9 |
Finance lease cost | |||
Amortization of leased assets | $ 1.6 | $ 1.6 | $ 0.8 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases | ||
2023 | $ 18,800,000 | |
2024 | 15,500,000 | |
2025 | 11,800,000 | |
2026 | 8,200,000 | |
2027 | 5,800,000 | |
2028 and thereafter | 3,900,000 | |
Lessee, Operating Lease, Liability, to be Paid, Total | 64,000,000 | |
Less: Interest | 6,700,000 | |
Present value of lease liabilities | 57,300,000 | |
Finance leases | ||
2023 | 8,300,000 | |
2024 | 8,400,000 | |
2025 | 8,400,000 | |
2026 | 8,500,000 | |
2027 | 85,500,000 | |
2028 and thereafter | 19,600,000 | |
Finance Lease, Liability, to be Paid, Total | 138,700,000 | |
Less: Interest | 36,800,000 | |
Present value of lease liabilities | 101,900,000 | $ 102,400,000 |
2023 | 27,100,000 | |
2024 | 23,900,000 | |
2025 | 20,200,000 | |
2026 | 16,700,000 | |
2027 | 91,300,000 | |
2028 and thereafter | 23,500,000 | |
Operating and Finance Lease, Liability, Payments, Due | 202,700,000 | |
Less: Interest | 43,500,000 | |
Present value of lease liabilities | 159,200,000 | |
Operating lease commitments that have not yet commenced | $ 0 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease, weighted-average remaining lease term (years) | 4 years 4 months 24 days | 4 years 1 month 6 days |
Finance lease, weighted-average remaining lease term (years) | 12 years 4 months 24 days | 6 years 10 months 24 days |
Operating lease, weighted-average discount rate | 5.16% | 4.97% |
Finance lease, weighted-average discount rate | 7.19% | 7.18% |
Leases - Schedule Of Supplement
Leases - Schedule Of Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 18.8 | $ 20.5 | $ 18.5 |
Operating cash flows from finance leases | 7.5 | 7.5 | 6.8 |
Financing cash flows from finance leases | $ 0.9 | $ 0.7 | $ 0.7 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contributions | $ 11,200,000 | $ 9,500,000 | $ 10,600,000 |
Company contributions | 0 | $ 0 | $ 0 |
Impact of .5% increase on post retirement benefit obligation | (2,000,000) | ||
Impact of .5% increase on post retirement cost | (100,000) | ||
Impact of .5% decrease on post retirement benefit obligation | 2,200,000 | ||
Impact of .5% decrease on post retirement cost | 200,000 | ||
Impact of .5% increase on assumed long-term rate of return on plan assets | (200,000) | ||
Impact of .5% decrease on assumed long-term rate of return on plan assets | $ 200,000 | ||
Nonqualified Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee matching contribution, percent of employee deferral | 6% | ||
Employer matching contribution, percent of match | 3% | ||
Scenario One | Qualified Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 100% | ||
Employer matching contribution, percent of employees' gross pay | 3% | ||
Scenario Two | Qualified Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50% | ||
Employer matching contribution, percent of employees' gross pay | 2% |
Retirement Plans - Components o
Retirement Plans - Components of Defined Benefit Pension and Post-retirement Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in plan assets | |||
Company contributions | $ 0 | $ 0 | $ 0 |
Pensions | |||
Change in projected benefit obligation | |||
Beginning balance | 45,000,000 | 45,000,000 | |
Service cost | 1,500,000 | 1,700,000 | 1,600,000 |
Interest cost | 1,200,000 | 1,100,000 | 1,200,000 |
Actuarial loss (gain) | (14,200,000) | (2,100,000) | |
Plan amendments | 500,000 | 300,000 | |
Benefit payments | (1,200,000) | (1,000,000) | |
Ending balance | 32,800,000 | 45,000,000 | 45,000,000 |
Change in plan assets | |||
Beginning balance, fair value of plan asset | 31,800,000 | 31,200,000 | |
Actual return on plan assets | (7,800,000) | 1,400,000 | |
Company contributions | 300,000 | 200,000 | |
Benefit payments | (1,200,000) | (1,000,000) | |
Ending balance, fair value of plan asset | 23,100,000 | 31,800,000 | 31,200,000 |
Net Funded Status of the Plan (Liability) | (9,700,000) | (13,200,000) | |
Pension and other postretirement benefit asset | 0 | 0 | |
Pension and other postretirement benefit (liability) | (9,700,000) | (13,200,000) | |
Other Benefits | |||
Change in projected benefit obligation | |||
Beginning balance | 900,000 | 1,000,000 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Actuarial loss (gain) | (100,000) | (100,000) | |
Plan amendments | (100,000) | 0 | |
Benefit payments | 0 | 0 | |
Ending balance | 700,000 | 900,000 | 1,000,000 |
Change in plan assets | |||
Beginning balance, fair value of plan asset | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 0 | 0 | |
Benefit payments | 0 | 0 | |
Ending balance, fair value of plan asset | 0 | 0 | $ 0 |
Net Funded Status of the Plan (Liability) | (700,000) | (900,000) | |
Pension and other postretirement benefit asset | 0 | 0 | |
Pension and other postretirement benefit (liability) | $ (700,000) | $ (900,000) | |
Qualified Plan | Pensions | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 5% | 2.75% | |
Qualified Plan | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 0% | 0% | |
Nonqualified Plan | Pensions | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 5% | 2.65% | |
Nonqualified Plan | Other Benefits | |||
Defined Benefit Plan Disclosure | |||
Discount rate | 4.90% | 2.60% |
Retirement Plans - Amounts Reco
Retirement Plans - Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year net actuarial loss (gain) | $ (4.8) | $ (2.2) | $ 2.4 |
Current year prior service cost (credit) | 0.4 | 0.3 | 0.3 |
Amortization of net actuarial (loss) gain and prior service (cost) credit | (0.1) | (0.2) | (0.2) |
Settlement and curtailment (charges) income, net | (0.2) | 0 | (0.1) |
Total recognized in other comprehensive (income) loss, before taxes | (4.7) | (2.1) | 2.4 |
Total recognized in other comprehensive (income) loss, after taxes | (3.6) | (1.6) | 1.8 |
Pensions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year net actuarial loss (gain) | (4.7) | (2.1) | 2.3 |
Current year prior service cost (credit) | 0.5 | 0.3 | 0.3 |
Amortization of net actuarial (loss) gain and prior service (cost) credit | (0.1) | (0.2) | (0.2) |
Settlement and curtailment (charges) income, net | (0.2) | 0 | (0.1) |
Total recognized in other comprehensive (income) loss, before taxes | (4.5) | (2) | 2.3 |
Total recognized in other comprehensive (income) loss, after taxes | (3.4) | (1.5) | 1.7 |
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year net actuarial loss (gain) | (0.1) | (0.1) | 0.1 |
Current year prior service cost (credit) | (0.1) | 0 | 0 |
Amortization of net actuarial (loss) gain and prior service (cost) credit | 0 | 0 | 0 |
Settlement and curtailment (charges) income, net | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss, before taxes | (0.2) | (0.1) | 0.1 |
Total recognized in other comprehensive (income) loss, after taxes | $ (0.2) | $ (0.1) | $ 0.1 |
Retirement Plans - Amounts Re_2
Retirement Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Net actuarial (gain) loss | $ (1.7) | $ 3.2 |
Prior service cost (credit) | 1.2 | 1 |
Accumulated other comprehensive (income) loss, before taxes | (0.5) | 4.2 |
Accumulated other comprehensive (income) loss, after taxes | (0.4) | 3.2 |
Pensions | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Net actuarial (gain) loss | (1.6) | 3.1 |
Prior service cost (credit) | 1.3 | 1 |
Accumulated other comprehensive (income) loss, before taxes | (0.3) | 4.1 |
Accumulated other comprehensive (income) loss, after taxes | (0.2) | 3.1 |
Other Benefits | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) | ||
Net actuarial (gain) loss | (0.1) | 0.1 |
Prior service cost (credit) | (0.1) | 0 |
Accumulated other comprehensive (income) loss, before taxes | (0.2) | 0.1 |
Accumulated other comprehensive (income) loss, after taxes | $ (0.2) | $ 0.1 |
Retirement Plans - Net Annual B
Retirement Plans - Net Annual Benefit Costs Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pensions | |||
Components of net annual benefit cost: | |||
Expected return on plan assets (percentage) | 5.50% | 4.50% | 4.50% |
Service cost | $ 1.5 | $ 1.7 | $ 1.6 |
Interest cost | 1.2 | 1.1 | 1.2 |
Expected return on plan assets | (1.7) | (1.4) | (1.2) |
Amortization of prior service cost | 0.2 | 0.1 | 0.1 |
Amortization of net actuarial and other (gain) loss | 0 | 0.1 | 0.1 |
Recognized (gain) loss due to curtailments | 0.2 | 0 | 0.1 |
Net annual benefit cost | 1.4 | 1.6 | 1.9 |
Other Benefits | |||
Components of net annual benefit cost: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0 | 0 | 0 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net actuarial and other (gain) loss | 0 | 0 | 0 |
Recognized (gain) loss due to curtailments | 0 | 0 | 0 |
Net annual benefit cost | $ 0 | $ 0 | $ 0 |
Qualified Plan | Pensions | |||
Components of net annual benefit cost: | |||
Discount rate - qualified benefit plans | 2.75% | 2.45% | 3.15% |
Qualified Plan | Other Benefits | |||
Components of net annual benefit cost: | |||
Discount rate - qualified benefit plans | 0% | 0% | 0% |
Nonqualified Plan | Pensions | |||
Components of net annual benefit cost: | |||
Discount rate - qualified benefit plans | 2.65% | 2.30% | 3.10% |
Nonqualified Plan | Other Benefits | |||
Components of net annual benefit cost: | |||
Discount rate - qualified benefit plans | 2.60% | 2.20% | 3.05% |
Retirement Plans - Fair Value o
Retirement Plans - Fair Value of Pension Assets (Details) - Pensions - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | $ 23.1 | $ 31.8 | $ 31.2 |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 23.1 | 31.8 | |
Fair Value, Measurements, Recurring | Cash and short-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 0.2 | 0.2 | |
Fair Value, Measurements, Recurring | Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 6.7 | 9.2 | |
Fair Value, Measurements, Recurring | Pooled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 14.5 | 20.3 | |
Fair Value, Measurements, Recurring | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 1.7 | 2.1 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 6.9 | 9.4 | |
Fair Value, Measurements, Recurring | Level 1 | Cash and short-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 0.2 | 0.2 | |
Fair Value, Measurements, Recurring | Level 1 | Mutual funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 6.7 | 9.2 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 1.7 | 2.1 | |
Fair Value, Measurements, Recurring | Level 2 | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 1.7 | 2.1 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 0 | 0 | |
Fair Value, Measurements, Recurring | Investments Measured at Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | 14.5 | 20.3 | |
Fair Value, Measurements, Recurring | Investments Measured at Net Asset Value | Pooled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pension and other postretirement benefit asset | $ 14.5 | $ 20.3 |
Retirement Plans - Estimated Fu
Retirement Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pensions | |
Defined Benefit Plan Disclosure | |
2023 | $ 1.1 |
2024 | 1.2 |
2025 | 1.4 |
2026 | 1.5 |
2027 | 1.6 |
2028-2032 | 10.2 |
Other Benefits | |
Defined Benefit Plan Disclosure | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028-2032 | $ 0.2 |
Restructuring and Other (Inco_3
Restructuring and Other (Income) Charges, net - Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |||
Severance and other employee-related costs | $ 0 | $ 0.1 | $ 6.4 |
Other | 0 | 0 | 2.1 |
Restructuring charges | 0 | 0.1 | 8.5 |
Business transformation costs | 13.8 | 16.1 | 10 |
Other (income) charges, net | 13.8 | 16.1 | 10 |
Total Restructuring and other (income) charges, net | $ 13.8 | $ 16.2 | $ 18.5 |
Restructuring and Other (Inco_4
Restructuring and Other (Income) Charges, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
New software implementation period | 2 years | |||
Other expenses | $ 13.8 | $ 16.1 | $ 10 | |
Restructuring reserve | 0.5 | $ 0.5 | ||
Minimum | Other Restructuring | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Restructuring expected cost | 90 | |||
Minimum | Non-Capitalizable | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Restructuring expected cost | 45 | |||
Maximum | Other Restructuring | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Restructuring expected cost | 95 | |||
Maximum | Non-Capitalizable | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Restructuring expected cost | $ 50 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | Oct. 03, 2022 USD ($) |
Ozark Materials | |
Business Acquisition [Line Items] | |
Payment for acquisition | $ 325 |
Acquisition - Purchase Price Al
Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 03, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net assets acquired based on fair values: | ||||
Goodwill | $ 518.5 | $ 442 | $ 445.3 | |
Total cash paid, less cash and restricted cash acquired | 344.5 | 0 | 0 | |
Total amortization expense | 33.6 | 33.2 | $ 32.6 | |
2023 amortization expense | 41.8 | |||
2024 amortization expense | 41.5 | |||
2025 amortization expense | 41.2 | |||
2026 amortization expense | 40.5 | |||
2027 amortization expense | 40.5 | |||
Brands | ||||
Net assets acquired based on fair values: | ||||
Total amortization expense | 4.6 | $ 4.7 | ||
Ozark Materials | ||||
Net assets acquired based on fair values: | ||||
Cash and cash equivalents | $ 8 | |||
Accounts receivable | 28.7 | |||
Inventories | 48.4 | |||
Prepaid and other current assets | 2 | |||
Property, plant and equipment | 43.1 | |||
Goodwill | 109.8 | |||
Other assets, including operating leases | 0.1 | |||
Total fair value of assets acquired | 367.2 | |||
Accounts payable | (13.9) | |||
Other liabilities | (2.6) | |||
Total fair value of liabilities assumed | (16.5) | |||
Less: Cash acquired | (8) | |||
Plus: Amounts due from Seller | 1.8 | |||
Total cash paid, less cash and restricted cash acquired | $ 344.5 | |||
Inventory step up | 1.8 | |||
Inventory fair value step-up amortization | 0.9 | |||
Total amortization expense | 2.7 | |||
2023 amortization expense | 10.9 | |||
2024 amortization expense | 10.9 | |||
2025 amortization expense | 10.7 | |||
2026 amortization expense | 10 | |||
2027 amortization expense | $ 10 | |||
Ozark Materials | Brands | ||||
Business Acquisition [Line Items] | ||||
Weighted Average Amortization Period | 10 years | |||
Net assets acquired based on fair values: | ||||
Intangible assets | $ 15 | |||
Ozark Materials | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Weighted Average Amortization Period | 15 years | |||
Net assets acquired based on fair values: | ||||
Intangible assets | $ 88.6 | |||
Ozark Materials | Developed Technology Rights | ||||
Business Acquisition [Line Items] | ||||
Weighted Average Amortization Period | 7 years | |||
Net assets acquired based on fair values: | ||||
Intangible assets | $ 23.5 |
Acquisitions - Acquisition and
Acquisitions - Acquisition and Other Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Acquisition-related costs | $ 5 | $ 0.6 | $ 1.8 |
Acquisition and other-related costs | 5.9 | 0.6 | 1.8 |
Acquisitions and Other Strategic Investments | |||
Business Acquisition [Line Items] | |||
Legal and professional service fees | 5 | 0.6 | 1.8 |
Acquisition-related costs | 5 | 0.6 | 1.8 |
Inventory fair value step-up amortization | 0.9 | 0 | 0 |
Acquisition and other-related costs | $ 5.9 | $ 0.6 | $ 1.8 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 200 | $ 107.4 | $ 191.2 |
Foreign | 69.6 | 55.4 | 43.9 |
Income (loss) before income taxes | $ 269.6 | $ 162.8 | $ 235.1 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 41.7 | $ 31.1 | $ 22.5 |
State and local | 6.3 | 2.7 | 5.1 |
Foreign | 15 | 15.5 | 9.9 |
Total current | 63 | 49.3 | 37.5 |
Deferred | |||
Federal | (4.6) | (15.3) | 15.3 |
State and local | (1.7) | (1.6) | (2.7) |
Foreign | 1.3 | 12.3 | 3.6 |
Total deferred | (5) | (4.6) | 16.2 |
Provision (benefit) for income taxes | $ 58 | $ 44.7 | $ 53.7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax liabilities, tax benefit recognized in OCI | $ 4.5 | $ 4.2 | |
Deferred tax provision recognized in OCI | $ (4.3) | ||
Effective tax rate | 21.50% | 27.50% | 22.80% |
Reduction of deferred income taxes | $ 7 | ||
Deferred tax liabilities decrease related to foreign currency | 6.6 | ||
Reduction from lapse of statute of limitation | 0 | $ 0.1 | $ 0 |
Net operation loss, foreign | 35.3 | ||
Net operation loss foreign expected to expire | 0.1 | ||
Net operation loss foreign with no expiration date | 35.2 | ||
Cash and cash equivalents held by foreign subsidiaries | 71.7 | ||
Positive undistributed earnings to be reinvested (less than) | 84.5 | ||
Unrecognized tax benefits, penalties and interest | $ 0.9 | $ 0.4 | $ 0.1 |
Foreign | Her Majesty's Revenue and Customs (HMRC) | |||
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate | 6% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Amount | |||
Federal statutory tax rate | $ 56.6 | $ 34.2 | $ 49.4 |
State and local income taxes, net of federal benefit | 5.6 | 2.4 | 5.1 |
Foreign income tax rate differential | 2.2 | 2.2 | 1.5 |
Changes in valuation allowance | 0.1 | 0.8 | (1.9) |
Deferred adjustments | 0.1 | 0.3 | (1.4) |
Legislative tax rate change | 0.8 | 13.9 | 5.3 |
Excess share-based compensation | (0.1) | (0.3) | 0.4 |
Federal and state tax credits | (4.8) | (4.9) | (4) |
Effective Income Tax Rate Reconciliation, Tax On Dividends, Deemed Dividends And GILTI | 2.7 | 0.1 | 0.1 |
Foreign derived intangible income | (6.2) | (5.1) | (3.1) |
Officers compensation | 0.6 | 0.3 | 0.5 |
Other | 0.4 | 0.8 | 1.8 |
Provision (benefit) for income taxes | $ 58 | $ 44.7 | $ 53.7 |
Effective tax rate | 21.50% | 27.50% | 22.80% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Employee benefits | $ 19.1 | $ 19 |
Net operating losses | 10.5 | 11.6 |
Leases | 17.2 | 16.5 |
Litigation verdict accrual | 19.9 | 19.9 |
Research and experimental expenses | 8.9 | 0 |
Other | 14.4 | 12 |
Total deferred tax assets | 90 | 79 |
Valuation allowance | (9.2) | (8.8) |
Total deferred tax assets, net of valuation allowance | 80.8 | 70.2 |
Deferred tax liabilities: | ||
Fixed assets | 116.7 | 108.6 |
Intangibles | 34.6 | 43.7 |
Inventory | 7.3 | 6.5 |
Leases | 16.9 | 16.3 |
Other | 6.1 | 2.9 |
Total deferred tax liabilities | 181.6 | 178 |
Net deferred tax asset (liability) | (100.8) | (107.8) |
Deferred tax asset | 5.7 | 6.8 |
Deferred tax liability | $ 106.5 | $ 114.6 |
Income Taxes - Unrecognized Inc
Income Taxes - Unrecognized Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Balance at beginning of year | $ 0.3 | $ 0.1 | $ 0.1 |
Additions for tax positions related to prior years | 0.5 | 0.3 | 0 |
Reduction for lapse of statute of limitation | 0 | (0.1) | 0 |
Balance at end of year | $ 0.8 | $ 0.3 | $ 0.1 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | 1 Months Ended | ||||
Sep. 15, 2021 USD ($) | Nov. 30, 2020 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 14, 2019 claim | |
Loss Contingencies [Line Items] | |||||
Litigation settlement | $ 85 | ||||
Final resolution, term | 18 months | ||||
Loss contingency accrual | $ 85 | $ 85 | |||
BASF Lawsuit | |||||
Loss Contingencies [Line Items] | |||||
Claims for violations | claim | 2 | ||||
BASF Lawsuit | Settled Litigation | |||||
Loss Contingencies [Line Items] | |||||
Awarded damages | $ 28.3 |
Segment Information - Segment S
Segment Information - Segment Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Net sales | $ 1,668.3 | $ 1,391.5 | $ 1,216.1 |
Segment Reporting Information, Profit (Loss) | |||
Segment operating profits | 452.6 | 422.2 | 397.9 |
Interest expense | (61.8) | (51.7) | (47.1) |
Interest income | 7.5 | 4 | 4.9 |
(Provision) benefit for income taxes | (58) | (44.7) | (53.7) |
Depreciation and amortization | (108.8) | (109.9) | (100.2) |
Pension and postretirement settlement and curtailment (charges) income, net | (0.2) | 0 | (0.1) |
Restructuring and other income (charges), net | (13.8) | (16.2) | (18.5) |
Acquisition and other related costs | (5.9) | (0.6) | (1.8) |
Litigation verdict charge | 0 | (85) | 0 |
Net income (loss) | 211.6 | 118.1 | 181.4 |
Payments to acquire equity method investments | 77.4 | 35.3 | 0 |
Ozark Materials | |||
Segment Reporting Information, Profit (Loss) | |||
Acquisition and other related costs | (5.6) | ||
Performance Materials | |||
Segment Reporting Information | |||
Net sales | 548.5 | 516.8 | 510 |
Segment Reporting Information, Profit (Loss) | |||
Segment operating profits | 252.2 | 249.4 | 249.2 |
Depreciation and amortization | (36.1) | (36.8) | (31.2) |
Restructuring and other income (charges), net | (4.8) | (6) | (7.4) |
Payments to acquire equity method investments | 0.3 | 0.2 | |
Performance Chemicals | |||
Segment Reporting Information | |||
Net sales | 1,119.8 | 874.7 | 706.1 |
Segment Reporting Information, Profit (Loss) | |||
Segment operating profits | 200.4 | 172.8 | 148.7 |
Depreciation and amortization | (72.7) | (73.1) | (69) |
Restructuring and other income (charges), net | $ (9) | (10.2) | (11.1) |
Payments to acquire equity method investments | $ 0.4 | $ 1.8 |
Segment Information - Depreciat
Segment Information - Depreciation and amortization, and capital expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Depreciation and amortization | $ 108.8 | $ 109.9 | $ 100.2 |
Capital expenditures | 142.5 | 103.8 | 82.1 |
Performance Materials | |||
Segment Reporting Information | |||
Depreciation and amortization | 36.1 | 36.8 | 31.2 |
Capital expenditures | 59.8 | 46.2 | 30.6 |
Performance Chemicals | |||
Segment Reporting Information | |||
Depreciation and amortization | 72.7 | 73.1 | 69 |
Capital expenditures | $ 82.7 | $ 57.6 | $ 51.5 |
Segment Information - Geographi
Segment Information - Geographical Property, pant and equipment, net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets | ||
Property, plant, and equipment, net | $ 798.6 | $ 719.7 |
North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Property, plant, and equipment, net | 636.7 | 551.1 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets | ||
Property, plant, and equipment, net | 70.4 | 75 |
Europe, Middle East, and Africa | ||
Revenues from External Customers and Long-Lived Assets | ||
Property, plant, and equipment, net | 91.4 | 93.5 |
South America | ||
Revenues from External Customers and Long-Lived Assets | ||
Property, plant, and equipment, net | $ 0.1 | $ 0.1 |
Segment information - Assets (D
Segment information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information | ||
Assets | $ 2,736.5 | $ 2,469 |
Operating Segments | ||
Segment Reporting Information | ||
Assets | 2,662 | 2,391.8 |
Operating Segments | Performance Materials | ||
Segment Reporting Information | ||
Assets | 784.6 | 716.2 |
Operating Segments | Performance Chemicals | ||
Segment Reporting Information | ||
Assets | 1,877.4 | 1,675.6 |
Corporate and other | ||
Segment Reporting Information | ||
Assets | $ 74.5 | $ 77.2 |
Earnings (Loss) per Share - Sch
Earnings (Loss) per Share - Schedule of Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Reconciliation | |||
Net income (loss) | $ 211.6 | $ 118.1 | $ 181.4 |
Basic and Diluted earnings (loss) per share | |||
Basic earnings (loss) per share (usd per share) | $ 5.54 | $ 2.97 | $ 4.39 |
Diluted earnings (loss) per share (usd per share) | $ 5.50 | $ 2.95 | $ 4.37 |
Shares | |||
Weighted average number of common shares outstanding - Basic (shares) | 38,179 | 39,816 | 41,330 |
Weighted average additional shares assuming conversion of potential common shares (shares) | 292 | 243 | 217 |
Shares - diluted basis (shares) | 38,471 | 40,059 | 41,547 |
Earnings (Loss) per Share - Ant
Earnings (Loss) per Share - Antidilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Average number of potential common shares - antidilutive (shares) | 204 | 98 | 177 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income and value added tax receivables | $ 12.7 | $ 21.8 |
Prepaid freight and supply agreements | 2.7 | 2.2 |
Prepaid insurance | 3.2 | 3.5 |
Non-trade receivables | 5.4 | 2.6 |
Advances to suppliers | 1 | 0.7 |
Prepaid software as a service | 2.9 | 3.4 |
Contract asset | 6.4 | 5.3 |
Restricted cash | 0.6 | 0.6 |
Other | 7.6 | 6.5 |
Prepaid and other current assets | $ 42.5 | $ 46.6 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred financing charges | $ 5.1 | $ 3 |
Capitalized software, net | 46.4 | 36 |
Land-use rights | 4.6 | 5.1 |
Planned major maintenance activities | 4.3 | 3.2 |
Deferred software as a service | 4 | 3.2 |
Deferred compensation plan assets (Note 5) | 14.4 | 14.9 |
Net investment hedge (Note 9) | 0 | 2 |
Finance lease assets, net (Note 13) | 0.1 | 0.3 |
Other | 6.6 | 6.5 |
Other assets | $ 85.5 | $ 74.2 |
Supplemental Information - Accr
Supplemental Information - Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued interest | $ 9 | $ 13.3 |
Accrued taxes | 5.3 | 8.2 |
Accrued freight | 3.9 | 5.5 |
Accrued rebates | 13.7 | 7.5 |
Restructuring reserves (Note 15) | 0.5 | 0.5 |
Accrued royalties and commissions | 2.4 | 1.5 |
Currency exchange and natural gas contracts (Note 9) | 2.1 | 0.6 |
Accrued energy | 3.2 | 2.8 |
Other | 14.3 | 11.8 |
Accrued expenses | $ 54.4 | $ 51.7 |
Supplemental Information - Ot_2
Supplemental Information - Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred compensation arrangements (Note 5) | $ 12.5 | $ 13.7 |
Pension & OPEB liabilities (Note 14) | 10.4 | 14.1 |
Unrecognized tax benefits (Note 17) | 0.8 | 0.3 |
Net investment hedge (Note 9) | 0 | 1 |
Interest rate swaps (Note 9) | 0 | 4 |
Contingent consideration (Note 5) | 0 | 0.8 |
Litigation verdict accrual (Note 18) | 85 | 85 |
Other | 6.2 | 6.6 |
Other liabilities | $ 114.9 | $ 125.5 |
Supplemental Information - Ot_3
Supplemental Information - Other (Income) Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Foreign currency translation (income)/loss | $ 2.3 | $ 2.5 | $ (5.8) |
Royalty and sundry (income)/loss | (0.2) | (0.6) | (0.4) |
Litigation verdict charge (Note 18) | 0 | 85 | 0 |
Other (income)/expense, net | (3.8) | (7) | 2.1 |
Other (income) expense, net | $ (1.7) | $ 79.9 | $ (4.1) |
Subsequent Event (Details)
Subsequent Event (Details) | 3 Months Ended |
Mar. 31, 2023 reporting_unit | |
Performance Chemicals PC and EP | Scenario, Forecast | |
Subsequent Event [Line Items] | |
Number of reporting units | 2 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable credit loss allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | $ 2 | $ 1.9 | $ 0.5 |
Charged to Costs and Expenses | 0.3 | 0.1 | 1.4 |
Write-offs | (1.8) | ||
Balance, End of Year | 0.5 | 2 | 1.9 |
Held-to-maturity debt securities credit loss allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | 0.5 | 0.9 | 0 |
Charged to Costs and Expenses | 0.1 | (0.4) | 0.3 |
Charged to Retained Earnings | 0.6 | ||
Balance, End of Year | 0.6 | 0.5 | 0.9 |
Deferred tax valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance, Beginning of Year | 8.8 | 8.4 | 13 |
Charged to Costs and Expenses | 0.1 | 0.8 | (1.9) |
Charged to Other Comprehensive Income | 0.3 | (0.4) | (2.7) |
Balance, End of Year | $ 9.2 | $ 8.8 | $ 8.4 |