Cover page
Cover page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 ($0.01 par value) | |
Trading Symbol | NGVT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,345,110 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001653477 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 390,600,000 | $ 481,800,000 | $ 730,700,000 | $ 874,400,000 |
Cost of sales | 267,400,000 | 328,800,000 | 507,800,000 | 591,000,000 |
Gross profit | 123,200,000 | 153,000,000 | 222,900,000 | 283,400,000 |
Selling, general, and administrative expenses | 41,400,000 | 51,700,000 | 88,600,000 | 100,300,000 |
Research and technical expenses | 7,300,000 | 8,000,000 | 14,100,000 | 16,800,000 |
Restructuring and other (income) charges, net | 13,100,000 | 19,200,000 | 75,900,000 | 24,800,000 |
Goodwill impairment charge | 349,100,000 | 0 | 349,100,000 | 0 |
Acquisition-related costs | (200,000) | 1,800,000 | 100,000 | 3,700,000 |
Other (income) expense, net | 23,900,000 | 3,000,000 | 56,100,000 | (15,200,000) |
Interest expense, net | 23,200,000 | 21,600,000 | 45,500,000 | 41,200,000 |
Income (loss) before income taxes | (334,600,000) | 47,700,000 | (406,500,000) | 111,800,000 |
Provision (benefit) for income taxes | (50,900,000) | 12,200,000 | (66,800,000) | 25,600,000 |
Net income (loss) | $ (283,700,000) | $ 35,500,000 | $ (339,700,000) | $ 86,200,000 |
Per share data | ||||
Basic earnings (loss) per share (usd per share) | $ (7.81) | $ 0.98 | $ (9.36) | $ 2.34 |
Diluted earnings (loss) per share (usd per share) | $ (7.81) | $ 0.97 | $ (9.36) | $ 2.33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (283.7) | $ 35.5 | $ (339.7) | $ 86.2 |
Foreign currency adjustments: | ||||
Foreign currency translation adjustment | (2.6) | 4 | (11.7) | 14.5 |
Total foreign currency adjustments, net of tax provision (benefit) of zero for all periods | (2.6) | 4 | (11.7) | 14.5 |
Derivative instruments: | ||||
Unrealized gain (loss), net of tax provision (benefit) of zero, zero, $(0.1), and $(0.7) | 0.1 | (0.1) | (0.2) | (2.4) |
Reclassifications of deferred derivative instruments (gain) loss, included in net income (loss), net of tax (provision) benefit of $0.2, $0.5, $0.4, and $0.4 | 0.6 | 1.3 | 1.1 | 1.1 |
Total derivative instruments, net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | 0.7 | 1.2 | 0.9 | (1.3) |
Pension & other postretirement benefits: | ||||
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, included in net income, net of tax of zero for all periods | 0 | 0.1 | 0 | 0.1 |
Total pension and other postretirement benefits, net of tax of zero for all periods | 0 | 0.1 | 0 | 0.1 |
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | (1.9) | 5.3 | (10.8) | 13.3 |
Comprehensive income (loss) | $ (285.6) | $ 40.8 | $ (350.5) | $ 99.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized tax (benefit) expense, derivative instruments | 0 | 0 | (100,000) | (700,000) |
Reclassifications tax (expense) benefit, derivative instruments | 200,000 | 500,000 | 400,000 | 400,000 |
Total derivative instruments tax (benefit) expense | 200,000 | 500,000 | 300,000 | (300,000) |
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, tax | 0 | 0 | 0 | 0 |
Total pension and other postretirement benefits, tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), tax | $ 200,000 | $ 500,000 | $ 300,000 | $ (300,000) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 107.4 | $ 95.9 |
Accounts receivable, net of allowance of $0.9 - 2024 and $1.1 - 2023 | 213.4 | 182 |
Inventories, net | 302 | 308.8 |
Prepaid and other current assets | 63 | 71.9 |
Current assets | 685.8 | 658.6 |
Property, plant, and equipment, net | 722.2 | 762.2 |
Operating lease assets, net | 60.3 | 67.1 |
Goodwill | 177 | 527.5 |
Other intangibles, net | 295.7 | 336.1 |
Deferred income taxes | 80.7 | 11.6 |
Restricted investment, net of allowance of $0.1 - 2024 and $0.2 - 2023 | 80.5 | 79.1 |
Strategic investments | 93.9 | 99.2 |
Other assets | 80.1 | 81.9 |
Total Assets | 2,276.2 | 2,623.3 |
Liabilities | ||
Accounts payable | 142.4 | 158.4 |
Accrued expenses | 70 | 72.3 |
Accrued payroll and employee benefits | 21.2 | 19.9 |
Current operating lease liabilities | 18.5 | 18.7 |
Notes payable and current maturities of long-term debt | 103 | 84.4 |
Income taxes payable | 2.7 | 9.2 |
Current liabilities | 357.8 | 362.9 |
Long-term debt including finance lease obligations | 1,401 | 1,382.8 |
Noncurrent operating lease liabilities | 41.9 | 48.6 |
Deferred income taxes | 61.6 | 70.9 |
Other liabilities | 129.1 | 126.7 |
Total Liabilities | 1,991.4 | 1,991.9 |
Commitments and contingencies (Note 13) | ||
Equity | ||
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at 2024 and 2023, respectively) | 0 | 0 |
Common stock (par value $0.01 per share; 300,000,000 shares authorized; 43,605,487 and 43,446,513 issued and 36,340,277 and 36,233,092 outstanding at 2024 and 2023, respectively) | 0.4 | 0.4 |
Additional paid-in capital | 171.6 | 164.9 |
Retained earnings | 662.6 | 1,002.3 |
Accumulated other comprehensive income (loss) | (37.5) | (26.7) |
Treasury stock, common stock, at cost (7,265,210 shares - 2024 and 7,213,421 shares - 2023) | (512.3) | (509.5) |
Total Equity | 284.8 | 631.4 |
Total Liabilities and Equity | $ 2,276.2 | $ 2,623.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 0.9 | $ 1.1 |
Held-to-maturity, allowance for credit loss | $ 0.1 | $ 0.2 |
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) | 43,605,487 | 43,446,513 |
Common stock shares outstanding (shares) | 36,340,277 | 36,233,092 |
Treasury stock (shares) | 7,265,210 | 7,213,421 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |||||
Cash provided by (used in) operating activities: | |||||||||||
Net income (loss) | $ (283,700,000) | $ (56,000,000) | $ 35,500,000 | $ 50,700,000 | $ (339,700,000) | $ 86,200,000 | |||||
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 56,900,000 | 61,500,000 | |||||||||
Non cash operating lease costs | 9,700,000 | 8,900,000 | |||||||||
Deferred income taxes | (78,600,000) | (1,000,000) | |||||||||
Disposal/impairment of assets | 900,000 | 5,800,000 | |||||||||
Restructuring and other (income) charges, net | 75,900,000 | 24,800,000 | |||||||||
Loss on CTO resales | 50,000,000 | 0 | |||||||||
LIFO reserve | (9,100,000) | 40,700,000 | |||||||||
Share-based compensation | 6,700,000 | 8,900,000 | |||||||||
(Gain) loss on strategic investment | (100,000) | 0 | 4,700,000 | (19,200,000) | |||||||
Goodwill impairment charge | 349,100,000 | 0 | 349,100,000 | 0 | $ 0 | ||||||
Other non-cash items | 6,600,000 | 13,300,000 | |||||||||
Changes in operating assets and liabilities, net of effect of acquisitions: | |||||||||||
Accounts receivable, net | (33,100,000) | (36,300,000) | |||||||||
Inventories, net | 12,700,000 | (94,700,000) | |||||||||
Prepaid and other current assets | 6,700,000 | (6,500,000) | |||||||||
Planned major maintenance outage | (2,800,000) | (9,900,000) | |||||||||
Accounts payable | (13,400,000) | 27,700,000 | |||||||||
Accrued expenses | (1,700,000) | 7,200,000 | |||||||||
Accrued payroll and employee benefits | 1,400,000 | (33,200,000) | |||||||||
Income taxes | (10,800,000) | 1,400,000 | |||||||||
Restructuring and other cash outflow, net | (22,900,000) | (24,800,000) | |||||||||
Operating leases | (10,700,000) | (10,700,000) | |||||||||
CTO resales cash outflow, net | (45,300,000) | 0 | |||||||||
Changes in other operating assets and liabilities, net | 4,400,000 | 3,600,000 | |||||||||
Net cash provided by (used in) operating activities | 17,600,000 | 53,700,000 | |||||||||
Cash provided by (used in) investing activities: | |||||||||||
Capital expenditures | (34,700,000) | (47,100,000) | |||||||||
Proceeds from sale of strategic investment | 31,400,000 | 0 | 31,400,000 | ||||||||
Other investing activities, net | 600,000 | (4,600,000) | |||||||||
Net cash provided by (used in) investing activities | (34,100,000) | (20,300,000) | |||||||||
Cash provided by (used in) financing activities: | |||||||||||
Proceeds from revolving credit facility and other borrowings | 112,300,000 | 197,800,000 | |||||||||
Payments on revolving credit facility and other borrowings | (75,200,000) | (144,800,000) | |||||||||
Finance lease obligations, net | (600,000) | (500,000) | |||||||||
Tax payments related to withholdings on vested equity awards | (2,800,000) | (4,500,000) | |||||||||
Proceeds and withholdings from share-based compensation plans, net | 0 | 4,000,000 | |||||||||
Repurchases of common stock under publicly announced plan | 0 | (92,100,000) | |||||||||
Net cash provided by (used in) financing activities | 33,700,000 | (40,100,000) | |||||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | 17,200,000 | (6,700,000) | |||||||||
Effect of exchange rate changes on cash | (3,800,000) | (700,000) | |||||||||
Change in cash, cash equivalents, and restricted cash | 13,400,000 | (7,400,000) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ 111,900,000 | $ 84,300,000 | 111,900,000 | 84,300,000 | 84,300,000 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ 125,300,000 | [1] | $ 76,900,000 | [1] | 125,300,000 | [1] | 76,900,000 | [1] | $ 111,900,000 | ||
Supplemental cash flow information: | |||||||||||
Cash paid for interest, net of capitalized interest | 42,300,000 | 40,000,000 | |||||||||
Cash paid for income taxes, net of refunds | 22,200,000 | 23,600,000 | |||||||||
Purchases of property, plant, and equipment in accounts payable | 1,800,000 | 5,300,000 | |||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ 1,900,000 | $ 18,800,000 | |||||||||
[1] Includes restricted cash of $17.9 million and $8.9 million and cash and cash equivalents of $107.4 million and $68.0 million at June 30, 2024 and 2023, respectively. Restricted cash is included within "Prepaid and other current assets" and "Restricted investment" within the condensed consolidated balance sheets. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 17.9 | $ 8.9 |
Cash and cash equivalents | $ 107.4 | $ 68 |
Background
Background | 6 Months Ended |
Jun. 30, 2024 | |
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 diverse team of talented and experienced people, we develop, manufacture, and bring to market solutions that are largely renewably sourced and help customers solve complex problems while making the world more sustainable. Our products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, pavement markings, oil exploration and production, and automotive components. We operate in three reportable segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. Basis of Consolidation and Presentation These unaudited Condensed Consolidated Financial Statements reflect the consolidated operations of the company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2023, 2022 and 2021, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report"). In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, and cash flows for the interim periods presented and contain adequate disclosures to make the information presented not misleading. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with the current year's presentation. |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Jun. 30, 2024 | |
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. Recently issued ASUs that are not listed within this Form 10-Q have been assessed and determined to be either not applicable or are not expected to have a material impact on the Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to provide readers of the financial statements with information to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective beginning with our 2024 fiscal year Form 10-K and will be applied to all prior periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our Condensed Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which is intended to enhance income tax disclosures around the rate reconciliation and income taxes paid. The purpose of the amendment is to provide readers of the financial statements with information to better assess the differences between the effective tax rate and the statutory tax rate across multiple jurisdictions, enabling them to understand tax implications around operational opportunities and potential future cash flows. The guidance is effective beginning with our 2025 fiscal year. Early adoption is permitted and we are currently evaluating the potential impact of adopting this new guidance on our Condensed Consolidated Financial Statements and related disclosures. |
Net Sales
Net Sales | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales Disaggregation of Net Sales The following table presents our Net sales disaggregated by reportable segment and product line. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials segment $ 157.2 $ 144.6 $ 302.3 $ 286.0 Road Technologies product line 129.1 140.9 174.8 186.7 Industrial Specialties product line 56.4 143.1 157.7 282.9 Performance Chemicals segment $ 185.5 $ 284.0 $ 332.5 $ 469.6 Advanced Polymer Technologies segment $ 47.9 $ 53.2 $ 95.9 $ 118.8 Net sales $ 390.6 $ 481.8 $ 730.7 $ 874.4 The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 North America $ 235.6 $ 327.2 $ 438.3 $ 561.9 Asia Pacific 86.7 86.2 165.1 171.9 Europe, Middle East, and Africa 55.3 56.3 103.6 119.0 South America 13.0 12.1 23.7 21.6 Net sales $ 390.6 $ 481.8 $ 730.7 $ 874.4 Contract Balances The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date. 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. The following table provides information about contract assets from contracts with certain customers. Contract Asset June 30, In millions 2024 2023 Beginning balance $ 11.2 $ 6.4 Contract asset additions 4.8 8.1 Reclassification to accounts receivable, billed to customers (8.3) (7.2) Ending balance (1) $ 7.7 $ 7.3 ______________ (1) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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 condensed 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 the three-level fair value hierarchy during the periods reported. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total June 30, 2024 Assets: Deferred compensation plan investments (4) $ 3.6 $ — $ — $ 3.6 Total assets $ 3.6 $ — $ — $ 3.6 Liabilities: Deferred compensation arrangement (4) $ 16.1 $ — $ — $ 16.1 Total liabilities $ 16.1 $ — $ — $ 16.1 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2023 Assets: Deferred compensation plan investments (4) $ 3.0 $ — $ — $ 3.0 Total assets $ 3.0 $ — $ — $ 3.0 Liabilities: Deferred compensation arrangement (4) $ 15.5 $ — $ — $ 15.5 Total liabilities $ 15.5 $ — $ — $ 15.5 ______________ (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 condensed consolidated 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 condensed 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 $16.0 million and $14.9 million at June 30, 2024 and December 31, 2023, respectively. Nonrecurring Fair Value Measurements There were no nonrecurring fair value measurements on the condensed consolidated balance sheets during the periods ended June 30, 2024, and December 31, 2023. Strategic Investments Equity Method Investments The aggregate carrying value of all strategic equity method investments totaled $15.5 million and $16.0 million at June 30, 2024 and December 31, 2023, respectively. There were no adjustments to the carrying value of equity method investments for impairment for the periods ended June 30, 2024 and December 31, 2023. As of June 30, 2024 we had approximately $5.6 million of unfunded commitments, associated with a venture capital fund investment accounted for under the equity method of accounting, which we anticipate will be paid over a period of 10 years from the date of the investment. During the first quarter of 2023, we sold a strategic equity method investment for $31.4 million, resulting in a $19.2 million gain, recorded within "Other (income) expense, net" on the condensed consolidated statements of operations. We recognized an additional $0.1 million gain associated with the equity method investment sale during the three months ended June 30, 2024. Measurement Alternative Investments The aggregate carrying value of all measurement alternative investments where fair value is not readily determinable totaled $78.4 million and $83.2 million at June 30, 2024 and December 31, 2023, respectively. During the first quarter of 2024, the company identified a triggering event indicating that an investment being accounted for under the measurement alternative may be impaired. For the three and six months ended June 30, 2024, the company recognized an impairment of zero and $4.8 million, respectively, recorded in Other (income) expense, net on the condensed consolidated statements of operations. Restricted Investment Our restricted investment is a trust managed in order to secure repayment of the finance lease obligation associated with our Performance Materials' Wickliffe, Kentucky manufacturing site at maturity. The trust, presented as Restricted investment on our condensed consolidated balance sheets, originally purchased long-term bonds that mature through 2026. The principal received at maturity of the bonds, along with interest income that is reinvested in the trust, is 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 and presented as interest income on our condensed consolidated statements of operations. As interest from the bonds is received and as bonds mature, any proceeds not reinvested are held in highly liquid securities and treated as restricted cash. At June 30, 2024 and December 31, 2023, the carrying value of our restricted investment was $80.5 million and $79.1 million, net of an allowance for credit losses of $0.1 million and $0.2 million, and included restricted cash of $16.8 million and $15.4 million, respectively. The fair value at June 30, 2024 and December 31, 2023 was $77.9 million and $76.7 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- A A- BBB+ Total June 30, 2024 $ 13.3 10.3 13.2 17.0 10.0 $ 63.8 December 31, 2023 $ 13.3 10.4 13.2 17.0 10.0 $ 63.9 Debt and Finance Lease Obligations At June 30, 2024 and December 31, 2023, the carrying value of finance lease obligations was $100.6 million and $101.1 million, respectively, and the fair value was $103.5 million and $105.7 million, respectively. The fair value of our finance lease obligation associated with our Performance Materials' Wickliffe, Kentucky manufacturing site, is based on the period-end quoted market prices for the obligation, 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 interest rate debt was $852.9 million and $821.4 million as of June 30, 2024 and December 31, 2023, respectively. The carrying value of our variable rate debt is a reasonable estimate of the fair value. |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net In millions June 30, 2024 December 31, 2023 Raw materials $ 107.8 $ 128.3 Production materials, stores, and supplies 26.9 26.0 Finished and in-process goods 259.0 255.2 Subtotal $ 393.7 $ 409.5 Less: LIFO reserve (91.7) (100.7) Inventories, net $ 302.0 $ 308.8 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant, and Equipment, net In millions June 30, 2024 December 31, 2023 Machinery and equipment $ 1,277.0 $ 1,244.6 Buildings and leasehold improvements 220.7 217.4 Land and land improvements 26.3 26.3 Construction in progress 81.8 92.8 Total cost $ 1,605.8 $ 1,581.1 Less: accumulated depreciation (1) (883.6) (818.9) Property, plant, and equipment, net $ 722.2 $ 762.2 _______________ (1) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we accelerated the depreciation of certain property, plant and equipment assets. This resulted in $1.8 million and $33.4 million of additional expense for the three and six months ended June 30, 2024, respectively, which is included in Restructuring and other (income) charges, net within the condensed consolidated statements of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill Reporting Units In millions Performance Materials Performance Chemicals Advanced Polymer Technologies Total December 31, 2023 $ 4.3 $ 349.4 $ 173.8 $ 527.5 Goodwill impairment charge — (349.1) — (349.1) Foreign currency translation — (0.3) (1.1) (1.4) June 30, 2024 $ 4.3 $ — $ 172.7 $ 177.0 Beginning in fiscal year 2023, we began to see depressed volumes in our industrial end markets, constraining our ability to offset the continued crude tall oil (“CTO”) price inflation we were experiencing, and negatively impacting earnings and cash flow within our Performance Chemicals’ reporting unit, particularly in our industrial specialties product line. As a result, we concluded that a triggering event occurred in the third quarter of 2023. Our third quarter 2023 impairment analysis included significant assumptions, such as the execution of several measures in 2023 to pursue greater cost efficiency, including a reorganization to streamline certain functions and reduce ongoing costs, and expectations of decreased CTO costs beginning in the second half of 2024. We concluded that no impairment was necessary as a result of that third quarter 2023 interim analysis or at our annual impairment test, dated October 1, 2023. During the second quarter of 2024, our supplier provided new information regarding the cost of CTO for the second half of 2024, which significantly exceeded our forecasted costs, resulting in a triggering event for our Performance Chemicals’ reporting unit. We performed an analysis of the reporting unit’s goodwill, intangibles, and long-lived assets. Our analysis included significant assumptions such as: revenue growth rate, earnings before interest, taxes, depreciation and amortization ("EBITDA") margin, and discount rate, which are judgmental, and variations in any assumptions could result in materially different calculations of fair value. Our analysis reassessed the expected cash flows in light of current performance and expected lack of near term recovery in our industrial specialties product line, resulting in lower volume and profitability expectations. As a result, the company concluded that the carrying amount of the Performance Chemicals’ reporting unit exceeded its fair value, resulting in a non-cash goodwill impairment charge of $349.1 million, which represents all of the goodwill within the Performance Chemicals' reportable segment. The charge was recorded within “Goodwill impairment charge” on the condensed consolidated statements of operations for the quarter ended June 30, 2024. Other Intangible Assets In millions Customer contracts and relationships Brands (1) Developed Technology Total Gross Asset Value December 31, 2023 $ 396.5 $ 92.6 $ 91.7 $ 580.8 Retirements (2) (129.0) — (1.9) (130.9) Foreign currency translation (1.1) (0.4) (0.4) (1.9) June 30, 2024 $ 266.4 $ 92.2 $ 89.4 $ 448.0 Accumulated Amortization December 31, 2023 $ (179.4) $ (30.3) $ (35.0) $ (244.7) Amortization (3) (31.3) (2.7) (5.1) (39.1) Retirements (2) 129.0 — 1.9 130.9 Foreign currency translation 0.3 0.1 0.2 0.6 June 30, 2024 $ (81.4) $ (32.9) $ (38.0) $ (152.3) Other intangibles, net $ 185.0 $ 59.3 $ 51.4 $ 295.7 _______________ (1) Represents trademarks, trade names, and know-how. (2) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we retired certain customer contracts and relationships, and developed technology finite-lived intangible assets. (3) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we accelerated the amortization of certain customer contract and relationship finite-lived intangible assets. This resulted in zero and $22.1 million of additional expense for the three and six months ended June 30, 2024, respectively, and $37.4 million of additional expenses for the twelve months ended December 31, 2023, which is included in Restructuring and other (income) charges, net within the condensed consolidated statements of operations. Intangible assets subject to amortization were attributed to our business segments as follows: In millions June 30, 2024 December 31, 2023 Performance Materials $ 1.3 $ 1.5 Performance Chemicals 108.0 137.5 Advanced Polymer Technologies 186.4 197.1 Other intangibles, net $ 295.7 $ 336.1 The amortization expense related to our intangible assets in the table above is shown in the table below. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Selling, general, and administrative expenses $ 7.5 $ 10.5 $ 17.0 $ 20.9 Restructuring and other (income) charges, net (1) — — 22.1 — Total amortization expense $ 7.5 $ 10.5 $ 39.1 $ 20.9 _______________ (1) Amounts recorded to Restructuring and other (income) charges, net are not included within segment depreciation and amortization. Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: $15.0 million for the remainder of 2024, 2025 - $29.8 million, 2026 - $29.1 million, 2027 - $29.1 million, and 2028 - $29.1 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 | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management Cash Flow Hedges Foreign Currency Exchange Risk Management As of June 30, 2024, there were $2.2 million open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was a net asset (liability) of zero at June 30, 2024 and December 31, 2023. Commodity Price Risk Management As of June 30, 2024, we had 1.5 million and 0.9 million mm BTUS (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 June 30, 2024, open commodity contracts hedge forecasted transactions until December 2025. The fair value of the outstanding designated natural gas commodity hedge contracts as of June 30, 2024 and December 31, 2023, was a net asset (liability) of zero and $(0.9) 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 (loss) Location of Gain (Loss) Reclassified from AOCI in Net income (loss) Three Months Ended June 30, 2024 2023 2024 2023 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ — $ — $ (0.3) Net sales Natural gas contracts — (0.1) (0.8) (1.5) Cost of sales Total $ 0.1 $ (0.1) $ (0.8) $ (1.8) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) Location of Gain (Loss) Reclassified from AOCI in Net income (loss) Six Months Ended June 30, 2024 2023 2024 2023 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ (0.1) $ — $ (0.5) Net sales Natural gas contracts (0.4) (3.0) (1.5) (1.0) Cost of sales Total $ (0.3) $ (3.1) $ (1.5) $ (1.5) Within the next twelve months, we expect to reclassify $0.8 million of net gains from AOCI to income, before taxes. Fair Value Measurements The following information is presented for derivative assets and liabilities that are recorded in the condensed 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 Level 1 and Level 2 during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of June 30, 2024, or December 31, 2023. June 30, 2024 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Currency exchange contracts (5) $ — $ 0.1 $ — $ 0.1 Total liabilities $ — $ 0.1 $ — $ 0.1 December 31, 2023 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.5 $ — $ 0.5 Total assets $ — $ 0.5 $ — $ 0.5 Liabilities: Natural gas contracts (5) $ — $ 0.9 $ — $ 0.9 Currency exchange contracts (5) — 0.5 — 0.5 Total liabilities $ — $ 1.4 $ — $ 1.4 __________ (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 "Prepaid and other current assets" on the condensed consolidated balance sheets. (5) Included within "Accrued expenses" on the condensed consolidated balance sheets. |
Debt including Finance Lease Ob
Debt including Finance Lease Obligations | 6 Months Ended |
Jun. 30, 2024 | |
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: In millions, except percentages June 30, 2024 December 31, 2023 Revolving Credit Facility and other lines of credit (1)(2) $ 756.3 $ 738.0 3.88% Senior Notes due 2028 550.0 550.0 Finance lease obligations (3) 100.6 101.1 Accounts receivable securitization (4) 100.0 81.3 Other notes payable 1.9 2.1 Total debt including finance lease obligations $ 1,508.8 $ 1,472.5 Less: debt issuance costs 4.8 5.3 Total debt, including finance lease obligations, net of debt issuance costs $ 1,504.0 $ 1,467.2 Less: debt maturing within one year (5) 103.0 84.4 Long-term debt including finance lease obligations $ 1,401.0 $ 1,382.8 ______________ (1) Letters of credit outstanding under the revolving credit facility were $2.0 million and $2.5 million and available funds under the facility were $241.7 million and $259.5 million at June 30, 2024 and December 31, 2023, respectively. (2) The weighted average interest rate associated with our revolving credit facility was 6.76 percent and 6.36 percent for the period ended June 30, 2024 and December 31, 2023, respectively. (3) At June 30, 2024 and December 31, 2023, $80.0 million of the finance lease obligation upon maturity will be settled utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted investments on the condensed consolidated balance sheets in the amount of $80.5 million and $79.1 million as of June 30, 2024 and December 31, 2023, respectively. Refer to Note 4, under the section: Restricted Investment , for more information. (4) The interest rate associated with our accounts receivable securitization program was 5.50 percent and 5.61 percent for the period ended June 30, 2024 and December 31, 2023, respectively. (5) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets. Debt Covenants Our indenture contains 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 notes 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 of June 30, 2024. The credit agreement governing our revolving credit facility contains 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 June 30, 2024 was 3.3, and our actual interest coverage for the four consecutive quarters ended June 30, 2024 was 4.8. We were in compliance with all covenants under the credit agreement at June 30, 2024. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity Common Stock In millions, shares in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2023 43,447 $ 0.4 $ 164.9 $ 1,002.3 $ (26.7) $ (509.5) $ 631.4 Net income (loss) — — — (56.0) — — (56.0) Other comprehensive income (loss) — — — — (8.9) — (8.9) Common stock issued 139 — — — — — — Tax payments related to vested restricted stock units — — — — — (2.6) (2.6) Share-based compensation plans — — 4.3 — — — 4.3 Balance at March 31, 2024 43,585 $ 0.4 $ 169.2 $ 946.3 $ (35.6) $ (512.1) $ 568.2 Net income (loss) — — — (283.7) — — (283.7) Other comprehensive income (loss) — — — — (1.9) — (1.9) Common stock issued 20 — — — — — — Tax payments related to vested restricted stock units — — — — — (0.2) (0.2) Share-based compensation plans — — 2.4 — — 2.4 Balance at June 30, 2024 43,606 $ 0.4 $ 171.6 $ 662.6 $ (37.5) $ (512.3) $ 284.8 Common Stock In millions, shares in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2022 43,228 $ 0.4 $ 153.0 $ 1,007.7 $ (46.8) $ (416.0) $ 698.3 Net income (loss) — — — 50.7 — — 50.7 Other comprehensive income (loss) — — — — 8.0 — 8.0 Common stock issued 139 — — — — — — Exercise of stock options, net 41 — 2.2 — — — 2.2 Tax payments related to vested restricted stock units — — — — — (4.5) (4.5) Share repurchase program — — — — — (33.4) (33.4) Share-based compensation plans — — 3.7 — — 0.7 4.4 Balance at March 31, 2023 43,408 $ 0.4 $ 158.9 $ 1,058.4 $ (38.8) $ (453.2) $ 725.7 Net income (loss) — — — 35.5 — — 35.5 Other comprehensive income (loss) — — — — 5.3 — 5.3 Common stock issued 22 — — — — — — Share repurchase program — — — — — (58.7) (58.7) Share-based compensation plans — — 4.7 — — 1.6 6.3 Balance at June 30, 2023 43,430 $ 0.4 $ 163.6 $ 1,093.9 $ (33.5) $ (510.3) $ 714.1 Accumulated other comprehensive income (loss) Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Foreign currency translation Beginning balance $ (34.7) $ (35.3) $ (25.6) $ (45.8) Net gains (losses) on foreign currency translation (2.6) 4.0 (11.7) 14.5 Other comprehensive income (loss), net of tax (2.6) 4.0 (11.7) 14.5 Ending balance $ (37.3) $ (31.3) $ (37.3) $ (31.3) Derivative instruments Beginning balance $ (1.4) $ (3.9) $ (1.6) $ (1.4) Gains (losses) on derivative instruments 0.1 (0.1) (0.3) (3.1) Less: tax provision (benefit) — — (0.1) (0.7) Net gains (losses) on derivative instruments 0.1 (0.1) (0.2) (2.4) (Gains) losses reclassified to net income 0.8 1.8 1.5 1.5 Less: tax (provision) benefit 0.2 0.5 0.4 0.4 Net (gains) losses reclassified to net income 0.6 1.3 1.1 1.1 Other comprehensive income (loss), net of tax 0.7 1.2 0.9 (1.3) Ending balance $ (0.7) $ (2.7) $ (0.7) $ (2.7) Pension and other postretirement benefits Beginning balance $ 0.5 $ 0.4 $ 0.5 $ 0.4 Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 — 0.1 Less: tax (provision) benefit — — — — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 — 0.1 Other comprehensive income (loss), net of tax — 0.1 — 0.1 Ending balance $ 0.5 $ 0.5 $ 0.5 $ 0.5 Total AOCI ending balance at June 30 $ (37.5) $ (33.5) $ (37.5) $ (33.5) Reclassifications of accumulated other comprehensive income (loss) Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Derivative instruments Currency exchange contracts (1) $ — $ (0.3) $ — $ (0.5) Natural gas contracts (2) (0.8) (1.5) (1.5) (1.0) Total before tax (0.8) (1.8) (1.5) (1.5) (Provision) benefit for income taxes 0.2 0.5 0.4 0.4 Amount included in net income (loss) $ (0.6) $ (1.3) $ (1.1) $ (1.1) Pension and other post retirement benefits Amortization of prior service costs (2) $ — $ 0.1 $ — $ 0.1 Total before tax — 0.1 — 0.1 (Provision) benefit for income taxes — — — — Amount included in net income (loss) $ — $ 0.1 $ — $ 0.1 ______________ (1) Included within "Net sales" on the condensed consolidated statements of operations. (2) Included within "Cost of sales" on the condensed 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 2022 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 three and six months ended June 30, 2024, we repurchased no common stock. At June 30, 2024, $353.4 million remained unused under the 2022 Authorization. |
Restructuring and Other (Income
Restructuring and Other (Income) Charges, net | 6 Months Ended |
Jun. 30, 2024 | |
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. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Restructuring charges $ 10.0 $ 7.0 $ 72.3 $ 10.1 Other (income) charges, net 3.1 12.2 3.6 14.7 Total Restructuring and other (income) charges, net $ 13.1 $ 19.2 $ 75.9 $ 24.8 Restructuring Charges In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges (2) Total Performance Chemicals' repositioning $ 1.0 $ 7.2 $ 1.8 $ 10.0 Three Months Ended June 30, 2024 $ 1.0 $ 7.2 $ 1.8 $ 10.0 Other $ 4.4 $ — $ 2.6 $ 7.0 Three Months Ended June 30, 2023 $ 4.4 $ — $ 2.6 $ 7.0 In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges (2) Total Performance Chemicals' repositioning $ 3.1 $ 12.4 $ 56.8 $ 72.3 Six Months Ended June 30, 2024 $ 3.1 $ 12.4 $ 56.8 $ 72.3 Other $ 7.4 $ 0.1 $ 2.6 $ 10.1 Six Months Ended June 30, 2023 $ 7.4 $ 0.1 $ 2.6 $ 10.1 _______________ (1) Primarily represents costs associated with contract terminations, plant and equipment decommissioning charges and other miscellaneous exit costs. (2) Primarily represents property, plant and equipment and finite-lived intangible asset write-downs, accelerated depreciation and amortization, and impairment charges on certain assets, which were or are to be disposed of or abandoned. Also included, to the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations related to asset disposal charges that are included within restructuring charges. Performance Chemicals' Repositioning On November 1, 2023, we announced a number of strategic actions designed to reposition our Performance Chemicals reportable segment to improve profitability and reduce the cyclicality of the company as a whole. These actions increase our focus on growing our most profitable Performance Chemicals' product lines, such as road technologies, and accelerate our transition to non-CTO based fatty acids. This initiative will focus on reducing exposure to lower margin end-use markets of our industrial specialties product line, such as adhesives, publication inks, and oilfield, representing approximately 45 percent of our industrial specialties product line historical annualized net sales. This initiative included the permanent closure of our Performance Chemicals' CTO refinery and the closure of our manufacturing plant located in DeRidder, Louisiana (the “DeRidder Plant”), including the polyol production assets associated with the Advanced Polymer Technologies (“APT”) reportable segment. All production at the DeRidder Plant ceased in the first quarter of 2024. The Performance Chemicals’ repositioning initiative included additional corporate and business cost reduction actions executed in November 2023. The actions referenced above, when combined with other targeted workforce reduction initiatives during 2023, resulted in the reduction of Ingevity's global workforce by almost 20 percent. Specific to Performance Chemicals, the reduction represented approximately 30 percent of the reportable segment's workforce. Expected Charges We expect to incur aggregate charges of approximately $250 million associated with the Performance Chemicals' repositioning. This is a reduction of approximately $30 million from prior expectations due to lower than estimated plant cleaning costs. Total expected charges now consist of approximately $185 million in asset-related charges, approximately $15 million in severance and other employee-related costs, and approximately $50 million in other restructuring costs, including decommissioning, dismantling and removal charges, and contract termination costs. Through June 30, 2024, we have incurred $207.6 million associated with these actions, including $182.0 million of non-cash asset-related charges and $25.6 million of charges to be settled in cash. As of June 30, 2024, $21.3 million of the charges to be settled in cash have been paid. We expect approximately $185 million of the total charges to be non-cash and $65 million to be settled in cash. The remainder of the non-cash and 50-60 percent of cash charges are expected to be recognized in 2024. Inventory Charges The Company believes the collective actions of workforce, operational, and regional business exits will hinder our ability to dispose of the associated inventory on hand. As a result, we recorded zero and $2.5 million of non-cash, lower of cost or market, inventory charges during the three and six months ended June 30, 2024, respectively, to adjust the carrying value of the impacted inventory to what we expect to realize upon disposal, less disposal costs. These inventory charges are recorded to Cost of sales on the condensed consolidated statement of operations. CTO Resale Activity The DeRidder Plant closure, and the corresponding reduced CTO refining capacity, significantly reduced our CTO volume requirements. However, we were obligated, under an existing CTO supply contract, to purchase CTO volumes through 2025 at amounts in excess of our required CTO volumes needed to support our business operations. To manage this excess inventory, we sold CTO volumes (herein referred to as "CTO resales") in the open market. For the three and six months ended June 30, 2024, we have incurred $23.5 million and $50.0 million of CTO resale losses, which are recorded as Other (income) expense, net on the condensed consolidated statements of operations. As of July 1, 2024, as further described in Note 16, we have terminated the CTO supply contract that resulted in these excess CTO volumes. As a result of the termination of this supply contract, the purchases under the CTO supply contract ended, effective June 30, 2024. Therefore, we are no longer required to purchase this excess CTO volume through 2025, and as such, we expect to end our CTO resale activity by the end of 2024 and to incur no more than $5 million in additional costs as we liquidate the excess CTO resale volumes on hand as of June 30, 2024. The charges we currently expect to incur in connection with these actions are subject to a number of assumptions and risks, and actual results may differ materially. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or in connection with, these actions. Restructuring and Other (Income) Charges, net Reserves The following table ( in millions ) shows a roll forward of restructuring reserves that will result in cash spending, the majority of which relate to the Performance Chemicals' repositioning. Balance at Change in Cash Balance at 12/31/2023 (1) Reserve (2) Payments Other (3) 6/30/2024 (1) $ 8.2 19.1 (22.9) (0.1) $ 4.3 _______________ (1) Included in "Accrued expenses" on the condensed consolidated balance sheets. (2) Includes severance and other employee-related costs, exited leases, contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table. (3) Primarily foreign currency translation adjustments. Other (income) charges, net Alternative feedstock transition In April 2023, we implemented the feedstock transition of our Crossett, Arkansas manufacturing plant (“Crossett”). This transition converted Crossett from a CTO-based feedstock production facility to produce fatty acids from alternative plant-based feedstocks. During the three and six months ended June 30, 2024, we incurred charges of zero. During the three and six months ended June 30, 2023, we incurred charges of $6.6 million. North Charleston plant transition Our North Charleston, South Carolina Performance Chemicals manufacturing plant has historically been co-located with a WestRock Company (“WestRock”) paper mill. In May 2023, WestRock announced that it would permanently cease operating its North Charleston paper mill by August 31, 2023 and notified us that it was terminating the shared services in accordance with our operating agreement. WestRock ceased production at their North Charleston paper mill in June 2023. During 2023, we executed a transition plan to separate certain critical operating services WestRock had historically provided to us such as steam, water and wastewater treatment. During the three and six months ended June 30, 2024, we incurred charges of $3.1 million and $3.6 million, respectively. During the three and six months ended June 30, 2023, we incurred charges of $2.9 million. Business transformation costs Our enterprise resource planning tool implementation and associated business transformation initiative concluded in the fourth quarter of 2023. Costs incurred, during the three and six months ended June 30, 2024 totaled zero, and during the three and six months ended June 30, 2023, of $2.7 million and $5.2 million, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates, including discrete items, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Effective tax rate 15.2 % 25.6 % 16.4 % 22.9 % We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As such, there may be significant volatility in interim tax provisions. The below table provides a reconciliation between our reported effective tax rates and the EAETR. Three Months Ended June 30, 2024 2023 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (334.6) $ (50.9) 15.2 % $ 47.7 $ 12.2 25.6 % Discrete items: Restructuring and other (income) charges, net (1) 10.0 2.4 4.4 1.0 (Gain) loss on strategic investments (2) (0.1) — — — Goodwill impairment (3) 349.1 57.0 — — Other tax only discrete items — (0.5) — (0.8) Total discrete items 359.0 58.9 4.4 0.2 Consolidated operations, before discrete items $ 24.4 $ 8.0 $ 52.1 $ 12.4 EAETR (4) 33.5 % 23.8 % Six Months Ended June 30, 2024 2023 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (406.5) $ (66.8) 16.4 % $ 111.8 $ 25.6 22.9 % Discrete items: Restructuring and other (income) charges, net (1) 74.8 17.5 7.4 1.7 (Gain) loss on strategic investments (2) 4.7 1.1 (19.2) (4.5) Goodwill impairment (3) 349.1 57.0 — — Other tax only discrete items — (1.4) — 0.5 Total discrete items 428.6 74.2 (11.8) (2.3) Consolidated operations, before discrete items $ 22.1 $ 7.4 $ 100.0 $ 23.3 EAETR (4) 34.5 % 23.3 % _______________ (1) See Note 14 for further information. (2) See Note 4 for further information. (3) See Note 7 for further information. (4) Increase in EAETR for three and six months ended June 30, 2024, as compared to June 30, 2023, is due to an overall change in the mix of forecasted earnings in various tax jurisdictions with varying rates, most notably in the U.S. Additionally, there was an elimination of the foreign-derived intangible income deduction and the addition of a minimum tax associated with the Base Erosion and Anti-Abuse Tax due to significant reductions in taxable income in the U.S., which further increased the EAETR. The EAETR tax percentage shown may not precisely recalculate due to rounding. At June 30, 2024 and December 31, 2023, we had deferred tax assets of $10.5 million and $11.1 million, respectively, resulting from certain historical net operating losses from our Brazil and China operations and U.S. state tax credits for which a valuation allowance has been established. The ultimate realization of these deferred tax assets depends on the generation of future taxable income during the periods in which these net operating losses and tax credits are available to be used. In evaluating the realizability of these deferred tax assets, we consider projected future taxable income and tax planning strategies in making our assessment. As of June 30, 2024, we cannot objectively assert that these deferred tax assets are more likely than not to be realized and therefore we have maintained a valuation allowance. We intend to continue maintaining a valuation allowance on these deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. A release of all or a portion of the valuation allowance could be possible if we determine that sufficient positive evidence becomes available to allow us to reach a conclusion that the valuation allowance will no longer be needed. A release of the valuation allowance would result in the recognition of certain deferred tax assets and a reduction to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change based on the level of profitability that we are able to actually achieve. Pillar Two, released by the Organisation for Economic Cooperation and Development (OECD), went into effect on January 1, 2024. Pillar Two’s intent is to create a 15% global minimum tax for all jurisdictions in which multinational enterprises operate. To date, ten of our reporting jurisdictions have enacted final legislation adopting Pillar Two. While we do not anticipate that this legislation will have a material impact on our tax provision or effective tax rate, we continue to monitor evolving tax legislation in the jurisdictions in which we operate. No tax impacts of Pillar Two were recorded for the six months ended June 30, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 our 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 trebled under U.S. antitrust law to approximately $85.0 million. On May 18, 2023, the court in the Delaware Proceeding entered judgment on the jury’s verdict, which commenced the post-trial briefing stage. On February 13, 2024, the court in the Delaware Proceeding denied BASF’s motion for pre-judgment interest on its tortious interference claim as well as our motion seeking judgment as a matter of law, or a new trial in the alternative. In addition, BASF has indicated it will seek attorneys’ fees and costs in amounts that they will allege and have to demonstrate at a future date. Unless the judgment is set aside, BASF will be entitled to post-judgment interest pursuant to the rate provided under federal law. We disagree with the verdict, including the court’s application of the law and entry of judgment. Therefore, on March 13, 2024, we appealed the verdict as well as 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 18 months. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Net sales Performance Materials $ 157.2 $ 144.6 $ 302.3 $ 286.0 Performance Chemicals 185.5 284.0 332.5 469.6 Advanced Polymer Technologies 47.9 53.2 95.9 118.8 Total net sales (1) $ 390.6 $ 481.8 $ 730.7 $ 874.4 Segment EBITDA (2) Performance Materials $ 82.2 $ 64.2 $ 160.2 $ 134.0 Performance Chemicals 9.3 44.9 (1.3) 65.2 Advanced Polymer Technologies 9.8 11.6 19.3 25.4 Total Segment EBITDA (2) $ 101.3 $ 120.7 $ 178.2 $ 224.6 Interest expense, net (23.2) (21.6) (45.5) (41.2) (Provision) benefit for income taxes 50.9 (12.2) 66.8 (25.6) Depreciation and amortization - Performance Materials (9.7) (9.2) (19.3) (19.2) Depreciation and amortization - Performance Chemicals (10.1) (13.0) (22.5) (26.8) Depreciation and amortization - Advanced Polymer Technologies (7.5) (8.2) (15.1) (15.5) Restructuring and other income (charges), net (3) (13.1) (19.2) (75.9) (24.8) Goodwill impairment charge (4) (349.1) — (349.1) — Acquisition and other-related income (costs), net (5) 0.2 (1.8) (0.1) (4.5) Inventory charges (6) — — (2.5) — Loss on CTO resales (7) (23.5) — (50.0) — Gain (loss) on strategic investments (8) 0.1 — (4.7) 19.2 Net income (loss) $ (283.7) $ 35.5 $ (339.7) $ 86.2 _______________ (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 ("CODM") to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment net sales 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 associated with corporate debt facilities, interest income, income taxes, depreciation, amortization, restructuring and other income (charges), net, inventory lower of cost or market charges associated with restructuring actions, goodwill impairment charge, acquisition and other-related income (costs), gain (loss) on strategic investments, loss on CTO resales, pension and postretirement settlement and curtailment income (charges), net. (3) The table below provides an allocation of these charges between our three reportable segments to provide investors, potential investors, securities analysts and others with the information, should they choose, to apply such (income) charges to each respective reportable segment for which the charges relate. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials $ — $ 4.5 $ 0.1 $ 6.2 Performance Chemicals 13.1 13.6 75.9 16.7 Advanced Polymer Technologies — 1.1 (0.1) 1.9 Restructuring and other (income) charges, net $ 13.1 $ 19.2 $ 75.9 $ 24.8 (4) For the three and six months ended June 30, 2024, charges relate to the Performance Chemicals reportable segment. Refer to Note 7 for more information. (5) Charges represent (gains) losses incurred to complete and integrate acquisitions and other strategic investments. Charges may include the expensing of the inventory fair value step-up resulting from the application of purchase accounting for acquisitions and certain legal and professional fees associated with the completion of acquisitions and strategic investments. For the three and six months ended June 30, 2024 and 2023, charges relate to the Performance Chemicals reportable segment. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Legal and professional service fees $ (0.2) $ 1.8 $ 0.1 $ 3.7 Acquisition-related (income) costs $ (0.2) $ 1.8 $ 0.1 $ 3.7 Inventory fair value step-up amortization (1) — — — 0.8 Acquisition and other-related (income) charges $ (0.2) $ 1.8 $ 0.1 $ 4.5 _________________ (1) Included in Cost of sales on the condensed consolidated statements of operations. (6) For the three and six months ended June 30, 2024, inventory charges represent lower of cost or market charges associated with the Performance Chemicals’ repositioning. These charges were not allocated in the measurement of Performance Chemicals reportable segment profitability used by our CODM. Amounts are included in Cost of sales on the condensed consolidated statements of operations. (7) For the three and six months ended June 30, 2024, charges relate to the Performance Chemicals reportable segment. Refer to Note 11 for more information. (8) We exclude gains and losses from strategic investments from our segment results, as well as our non-GAAP financial measures, because we do not consider such gains or losses to be directly associated with the operational performance of the segment. We believe that the inclusion of such gains or losses would impair the factors and trends affecting the historical financial performance of our reportable segments. We continue to include undistributed earnings or loss, distributions, amortization or accretion of basis differences, and other-than-temporary impairments for equity method investments that we believe are directly attributable to the operational performance of such investments, in our reportable segment results. Refer to Note 4, under the section: Strategic Investments , for more information. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials $ (0.1) $ — $ (0.1) $ (19.2) Performance Chemicals — — 4.8 — Advanced Polymer Technologies — — — — (Gain) loss on strategic investments $ (0.1) $ — $ 4.7 $ (19.2) |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Earnings (Loss) per Share Three Months Ended June 30, Six Months Ended June 30, In millions (except share and per share data) 2024 2023 2024 2023 Net income (loss) $ (283.7) $ 35.5 $ (339.7) $ 86.2 Basic and Diluted earnings (loss) per share Basic earnings (loss) per share $ (7.81) $ 0.98 $ (9.36) $ 2.34 Diluted earnings (loss) per share (7.81) 0.97 (9.36) 2.33 Shares (in thousands) Weighted average number of common shares outstanding - Basic 36,335 36,373 36,299 36,768 Weighted average additional shares assuming conversion of potential common shares — 225 — 303 Shares - diluted basis (1) 36,335 36,598 36,299 37,071 _______________ (1) For the three and six months ended June 30, 2024, all potentially dilutive common shares were excluded from the calculation of diluted earnings (loss) per share as we had a net loss for the period. The following average number of potential common shares were antidilutive, and therefore, were not included in the diluted earnings per share calculation: Three Months Ended June 30, Six Months Ended June 30, In thousands 2024 2023 2024 2023 Average number of potential common shares - antidilutive 198 473 229 346 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event CTO Supply Contract Termination Agreement On July 1, 2024, we entered into a termination agreement and release (the “Termination Agreement”), to terminate our long-term crude tall oil supply agreement with GP Pine Chemicals, LLC, (“Georgia-Pacific”), as amended (the "CTO Supply Agreement"), pursuant to which we were obligated to purchase and receive CTO produced by certain Georgia-Pacific facilities. Pursuant to the Termination Agreement, as consideration for the termination of the CTO Supply Agreement, we made a cash payment to Georgia-Pacific in the amount of $50.0 million on July 1, 2024 and agreed to make an additional cash payment to Georgia-Pacific in the amount of $50.0 million by October 15, 2024. Crossett, Arkansas Plant Closure On July 31, 2024, we announced plans to transition the refining of oleo-based products manufactured for our Performance Chemicals reportable segment from our Crossett, Arkansas manufacturing plant (the “Crossett Facility”) to our North Charleston, South Carolina manufacturing plant. In connection with this action, on July 29, 2024, the Board of Directors approved the closure of the Crossett Facility, as well as additional corporate and business cost reduction actions. We plan to close the Crossett Facility in August 2024 and will continue to evaluate options for the site. We expect to realize net operational savings of approximately $20-$25 million per year from the closure of the Crossett Facility, as well as annual savings of approximately $10 million from the corporate and business-related cost reduction actions. We expect to realize the full benefit of these savings beginning in 2025. As a result of these actions, Ingevity expects to incur aggregate charges of approximately $100 million, consisting of approximately $65 million in asset-related charges, approximately $10 million in severance and other employee-related costs, and approximately $25 million in other restructuring costs, which include decommissioning, dismantling and removal charges, and contract termination costs. We expect approximately $65 million of the total charges to be non-cash. The majority of non-cash charges and 50-60 percent of cash charges are expected to be recognized by the first half of 2025. The charges we currently expect to incur in connection with these actions, and the timing thereof, are subject to a number of assumptions and risks, and actual results may differ materially. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or in connection with, these actions. |
New Accounting Guidance (Polici
New Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation and Presentation These unaudited Condensed Consolidated Financial Statements reflect the consolidated operations of the company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2023, 2022 and 2021, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report"). In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, and cash flows for the interim periods presented and contain adequate disclosures to make the information presented not misleading. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with the current year's presentation. |
Basis of Presentation | Basis of Consolidation and Presentation These unaudited Condensed Consolidated Financial Statements reflect the consolidated operations of the company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2023, 2022 and 2021, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report"). In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, and cash flows for the interim periods presented and contain adequate disclosures to make the information presented not misleading. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform with the current year's presentation. |
Recently Issued Accounting Pronouncements | 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. Recently issued ASUs that are not listed within this Form 10-Q have been assessed and determined to be either not applicable or are not expected to have a material impact on the Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures”, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The purpose of the amendment is to provide readers of the financial statements with information to better understand an entity’s overall performance and assess potential future cash flows. The guidance is effective beginning with our 2024 fiscal year Form 10-K and will be applied to all prior periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our Condensed Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures”, which is intended to enhance income tax disclosures around the rate reconciliation and income taxes paid. The purpose of the amendment is to provide readers of the financial statements with information to better assess the differences between the effective tax rate and the statutory tax rate across multiple jurisdictions, enabling them to understand tax implications around operational opportunities and potential future cash flows. The guidance is effective beginning with our 2025 fiscal year. Early adoption is permitted and we are currently evaluating the potential impact of adopting this new guidance on our Condensed Consolidated Financial Statements and related disclosures. |
Income tax | We determine our interim tax provision using an Estimated Annual Effective Tax Rate methodology (“EAETR”). The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pre-tax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter may materially impact the reported effective tax rate. As a global enterprise, our tax expense may be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As such, there may be significant volatility in interim tax provisions. |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents our Net sales disaggregated by reportable segment and product line. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials segment $ 157.2 $ 144.6 $ 302.3 $ 286.0 Road Technologies product line 129.1 140.9 174.8 186.7 Industrial Specialties product line 56.4 143.1 157.7 282.9 Performance Chemicals segment $ 185.5 $ 284.0 $ 332.5 $ 469.6 Advanced Polymer Technologies segment $ 47.9 $ 53.2 $ 95.9 $ 118.8 Net sales $ 390.6 $ 481.8 $ 730.7 $ 874.4 The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 North America $ 235.6 $ 327.2 $ 438.3 $ 561.9 Asia Pacific 86.7 86.2 165.1 171.9 Europe, Middle East, and Africa 55.3 56.3 103.6 119.0 South America 13.0 12.1 23.7 21.6 Net sales $ 390.6 $ 481.8 $ 730.7 $ 874.4 |
Schedule of Contract with Customer, Asset and Liability | The following table provides information about contract assets from contracts with certain customers. Contract Asset June 30, In millions 2024 2023 Beginning balance $ 11.2 $ 6.4 Contract asset additions 4.8 8.1 Reclassification to accounts receivable, billed to customers (8.3) (7.2) Ending balance (1) $ 7.7 $ 7.3 ______________ (1) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements, Recurring | The following information is presented for assets and liabilities that are recorded on the condensed 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 the three-level fair value hierarchy during the periods reported. In millions Level 1 (1) Level 2 (2) Level 3 (3) Total June 30, 2024 Assets: Deferred compensation plan investments (4) $ 3.6 $ — $ — $ 3.6 Total assets $ 3.6 $ — $ — $ 3.6 Liabilities: Deferred compensation arrangement (4) $ 16.1 $ — $ — $ 16.1 Total liabilities $ 16.1 $ — $ — $ 16.1 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total December 31, 2023 Assets: Deferred compensation plan investments (4) $ 3.0 $ — $ — $ 3.0 Total assets $ 3.0 $ — $ — $ 3.0 Liabilities: Deferred compensation arrangement (4) $ 15.5 $ — $ — $ 15.5 Total liabilities $ 15.5 $ — $ — $ 15.5 ______________ (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 condensed consolidated 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 condensed 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 $16.0 million and $14.9 million at June 30, 2024 and December 31, 2023, respectively. |
Schedule of 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- A A- BBB+ Total June 30, 2024 $ 13.3 10.3 13.2 17.0 10.0 $ 63.8 December 31, 2023 $ 13.3 10.4 13.2 17.0 10.0 $ 63.9 |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | In millions June 30, 2024 December 31, 2023 Raw materials $ 107.8 $ 128.3 Production materials, stores, and supplies 26.9 26.0 Finished and in-process goods 259.0 255.2 Subtotal $ 393.7 $ 409.5 Less: LIFO reserve (91.7) (100.7) Inventories, net $ 302.0 $ 308.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | In millions June 30, 2024 December 31, 2023 Machinery and equipment $ 1,277.0 $ 1,244.6 Buildings and leasehold improvements 220.7 217.4 Land and land improvements 26.3 26.3 Construction in progress 81.8 92.8 Total cost $ 1,605.8 $ 1,581.1 Less: accumulated depreciation (1) (883.6) (818.9) Property, plant, and equipment, net $ 722.2 $ 762.2 _______________ (1) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we accelerated the depreciation of certain property, plant and equipment assets. This resulted in $1.8 million and $33.4 million of additional expense for the three and six months ended June 30, 2024, respectively, which is included in Restructuring and other (income) charges, net within the condensed consolidated statements of operations. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Reporting Units In millions Performance Materials Performance Chemicals Advanced Polymer Technologies Total December 31, 2023 $ 4.3 $ 349.4 $ 173.8 $ 527.5 Goodwill impairment charge — (349.1) — (349.1) Foreign currency translation — (0.3) (1.1) (1.4) June 30, 2024 $ 4.3 $ — $ 172.7 $ 177.0 |
Schedule of Finite-Lived Intangible Assets | In millions Customer contracts and relationships Brands (1) Developed Technology Total Gross Asset Value December 31, 2023 $ 396.5 $ 92.6 $ 91.7 $ 580.8 Retirements (2) (129.0) — (1.9) (130.9) Foreign currency translation (1.1) (0.4) (0.4) (1.9) June 30, 2024 $ 266.4 $ 92.2 $ 89.4 $ 448.0 Accumulated Amortization December 31, 2023 $ (179.4) $ (30.3) $ (35.0) $ (244.7) Amortization (3) (31.3) (2.7) (5.1) (39.1) Retirements (2) 129.0 — 1.9 130.9 Foreign currency translation 0.3 0.1 0.2 0.6 June 30, 2024 $ (81.4) $ (32.9) $ (38.0) $ (152.3) Other intangibles, net $ 185.0 $ 59.3 $ 51.4 $ 295.7 _______________ (1) Represents trademarks, trade names, and know-how. (2) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we retired certain customer contracts and relationships, and developed technology finite-lived intangible assets. (3) As a result of the Performance Chemicals' repositioning, as further described in Note 11, we accelerated the amortization of certain customer contract and relationship finite-lived intangible assets. This resulted in zero and $22.1 million of additional expense for the three and six months ended June 30, 2024, respectively, and $37.4 million of additional expenses for the twelve months ended December 31, 2023, which is included in Restructuring and other (income) charges, net within the condensed consolidated statements of operations. Intangible assets subject to amortization were attributed to our business segments as follows: In millions June 30, 2024 December 31, 2023 Performance Materials $ 1.3 $ 1.5 Performance Chemicals 108.0 137.5 Advanced Polymer Technologies 186.4 197.1 Other intangibles, net $ 295.7 $ 336.1 |
Schedule of Finite-lived Intangible Assets Amortization Expense | The amortization expense related to our intangible assets in the table above is shown in the table below. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Selling, general, and administrative expenses $ 7.5 $ 10.5 $ 17.0 $ 20.9 Restructuring and other (income) charges, net (1) — — 22.1 — Total amortization expense $ 7.5 $ 10.5 $ 39.1 $ 20.9 _______________ (1) Amounts recorded to Restructuring and other (income) charges, net are not included within segment depreciation and amortization. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effect of Cash Flow and Net Investment Hedge Accounting on Accumulated Other Comprehensive Income | In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) Location of Gain (Loss) Reclassified from AOCI in Net income (loss) Three Months Ended June 30, 2024 2023 2024 2023 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ — $ — $ (0.3) Net sales Natural gas contracts — (0.1) (0.8) (1.5) Cost of sales Total $ 0.1 $ (0.1) $ (0.8) $ (1.8) In millions Amount of Gain (Loss) Recognized in AOCI Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) Location of Gain (Loss) Reclassified from AOCI in Net income (loss) Six Months Ended June 30, 2024 2023 2024 2023 Cash flow hedging derivatives Currency exchange contracts $ 0.1 $ (0.1) $ — $ (0.5) Net sales Natural gas contracts (0.4) (3.0) (1.5) (1.0) Cost of sales Total $ (0.3) $ (3.1) $ (1.5) $ (1.5) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following information is presented for derivative assets and liabilities that are recorded in the condensed 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 Level 1 and Level 2 during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of June 30, 2024, or December 31, 2023. June 30, 2024 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Currency exchange contracts (5) $ — $ 0.1 $ — $ 0.1 Total liabilities $ — $ 0.1 $ — $ 0.1 December 31, 2023 In millions Level 1 (1) Level 2 (2) Level 3 (3) Total Assets: Currency exchange contracts (4) $ — $ 0.5 $ — $ 0.5 Total assets $ — $ 0.5 $ — $ 0.5 Liabilities: Natural gas contracts (5) $ — $ 0.9 $ — $ 0.9 Currency exchange contracts (5) — 0.5 — 0.5 Total liabilities $ — $ 1.4 $ — $ 1.4 __________ (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 "Prepaid and other current assets" on the condensed consolidated balance sheets. (5) Included within "Accrued expenses" on the condensed consolidated balance sheets. |
Debt including Finance Lease _2
Debt including Finance Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Current and long-term debt including finance lease obligations consisted of the following: In millions, except percentages June 30, 2024 December 31, 2023 Revolving Credit Facility and other lines of credit (1)(2) $ 756.3 $ 738.0 3.88% Senior Notes due 2028 550.0 550.0 Finance lease obligations (3) 100.6 101.1 Accounts receivable securitization (4) 100.0 81.3 Other notes payable 1.9 2.1 Total debt including finance lease obligations $ 1,508.8 $ 1,472.5 Less: debt issuance costs 4.8 5.3 Total debt, including finance lease obligations, net of debt issuance costs $ 1,504.0 $ 1,467.2 Less: debt maturing within one year (5) 103.0 84.4 Long-term debt including finance lease obligations $ 1,401.0 $ 1,382.8 ______________ (1) Letters of credit outstanding under the revolving credit facility were $2.0 million and $2.5 million and available funds under the facility were $241.7 million and $259.5 million at June 30, 2024 and December 31, 2023, respectively. (2) The weighted average interest rate associated with our revolving credit facility was 6.76 percent and 6.36 percent for the period ended June 30, 2024 and December 31, 2023, respectively. (3) At June 30, 2024 and December 31, 2023, $80.0 million of the finance lease obligation upon maturity will be settled utilizing liquid assets that have been placed into a trust established strictly for this purpose. The trust is presented as Restricted investments on the condensed consolidated balance sheets in the amount of $80.5 million and $79.1 million as of June 30, 2024 and December 31, 2023, respectively. Refer to Note 4, under the section: Restricted Investment , for more information. (4) The interest rate associated with our accounts receivable securitization program was 5.50 percent and 5.61 percent for the period ended June 30, 2024 and December 31, 2023, respectively. (5) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders' Equity | Common Stock In millions, shares in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2023 43,447 $ 0.4 $ 164.9 $ 1,002.3 $ (26.7) $ (509.5) $ 631.4 Net income (loss) — — — (56.0) — — (56.0) Other comprehensive income (loss) — — — — (8.9) — (8.9) Common stock issued 139 — — — — — — Tax payments related to vested restricted stock units — — — — — (2.6) (2.6) Share-based compensation plans — — 4.3 — — — 4.3 Balance at March 31, 2024 43,585 $ 0.4 $ 169.2 $ 946.3 $ (35.6) $ (512.1) $ 568.2 Net income (loss) — — — (283.7) — — (283.7) Other comprehensive income (loss) — — — — (1.9) — (1.9) Common stock issued 20 — — — — — — Tax payments related to vested restricted stock units — — — — — (0.2) (0.2) Share-based compensation plans — — 2.4 — — 2.4 Balance at June 30, 2024 43,606 $ 0.4 $ 171.6 $ 662.6 $ (37.5) $ (512.3) $ 284.8 Common Stock In millions, shares in thousands Shares Amount Additional paid in capital Retained earnings Accumulated Treasury stock Total Equity Balance at December 31, 2022 43,228 $ 0.4 $ 153.0 $ 1,007.7 $ (46.8) $ (416.0) $ 698.3 Net income (loss) — — — 50.7 — — 50.7 Other comprehensive income (loss) — — — — 8.0 — 8.0 Common stock issued 139 — — — — — — Exercise of stock options, net 41 — 2.2 — — — 2.2 Tax payments related to vested restricted stock units — — — — — (4.5) (4.5) Share repurchase program — — — — — (33.4) (33.4) Share-based compensation plans — — 3.7 — — 0.7 4.4 Balance at March 31, 2023 43,408 $ 0.4 $ 158.9 $ 1,058.4 $ (38.8) $ (453.2) $ 725.7 Net income (loss) — — — 35.5 — — 35.5 Other comprehensive income (loss) — — — — 5.3 — 5.3 Common stock issued 22 — — — — — — Share repurchase program — — — — — (58.7) (58.7) Share-based compensation plans — — 4.7 — — 1.6 6.3 Balance at June 30, 2023 43,430 $ 0.4 $ 163.6 $ 1,093.9 $ (33.5) $ (510.3) $ 714.1 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Foreign currency translation Beginning balance $ (34.7) $ (35.3) $ (25.6) $ (45.8) Net gains (losses) on foreign currency translation (2.6) 4.0 (11.7) 14.5 Other comprehensive income (loss), net of tax (2.6) 4.0 (11.7) 14.5 Ending balance $ (37.3) $ (31.3) $ (37.3) $ (31.3) Derivative instruments Beginning balance $ (1.4) $ (3.9) $ (1.6) $ (1.4) Gains (losses) on derivative instruments 0.1 (0.1) (0.3) (3.1) Less: tax provision (benefit) — — (0.1) (0.7) Net gains (losses) on derivative instruments 0.1 (0.1) (0.2) (2.4) (Gains) losses reclassified to net income 0.8 1.8 1.5 1.5 Less: tax (provision) benefit 0.2 0.5 0.4 0.4 Net (gains) losses reclassified to net income 0.6 1.3 1.1 1.1 Other comprehensive income (loss), net of tax 0.7 1.2 0.9 (1.3) Ending balance $ (0.7) $ (2.7) $ (0.7) $ (2.7) Pension and other postretirement benefits Beginning balance $ 0.5 $ 0.4 $ 0.5 $ 0.4 Amortization of actuarial and other (gains) losses, prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 — 0.1 Less: tax (provision) benefit — — — — Net actuarial and other (gains) losses, amortization of prior service cost (credits), and settlement and curtailment (income) charge reclassified to net income — 0.1 — 0.1 Other comprehensive income (loss), net of tax — 0.1 — 0.1 Ending balance $ 0.5 $ 0.5 $ 0.5 $ 0.5 Total AOCI ending balance at June 30 $ (37.5) $ (33.5) $ (37.5) $ (33.5) Reclassifications of accumulated other comprehensive income (loss) Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Derivative instruments Currency exchange contracts (1) $ — $ (0.3) $ — $ (0.5) Natural gas contracts (2) (0.8) (1.5) (1.5) (1.0) Total before tax (0.8) (1.8) (1.5) (1.5) (Provision) benefit for income taxes 0.2 0.5 0.4 0.4 Amount included in net income (loss) $ (0.6) $ (1.3) $ (1.1) $ (1.1) Pension and other post retirement benefits Amortization of prior service costs (2) $ — $ 0.1 $ — $ 0.1 Total before tax — 0.1 — 0.1 (Provision) benefit for income taxes — — — — Amount included in net income (loss) $ — $ 0.1 $ — $ 0.1 ______________ (1) Included within "Net sales" on the condensed consolidated statements of operations. (2) Included within "Cost of sales" on the condensed consolidated statements of operations. |
Restructuring and Other (Inco_2
Restructuring and Other (Income) Charges, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Detail on the restructuring charges and other (income) charges, net, is provided below. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Restructuring charges $ 10.0 $ 7.0 $ 72.3 $ 10.1 Other (income) charges, net 3.1 12.2 3.6 14.7 Total Restructuring and other (income) charges, net $ 13.1 $ 19.2 $ 75.9 $ 24.8 Restructuring Charges In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges (2) Total Performance Chemicals' repositioning $ 1.0 $ 7.2 $ 1.8 $ 10.0 Three Months Ended June 30, 2024 $ 1.0 $ 7.2 $ 1.8 $ 10.0 Other $ 4.4 $ — $ 2.6 $ 7.0 Three Months Ended June 30, 2023 $ 4.4 $ — $ 2.6 $ 7.0 In millions Severance and other employee-related costs Other charges (income) (1) Asset disposal charges (2) Total Performance Chemicals' repositioning $ 3.1 $ 12.4 $ 56.8 $ 72.3 Six Months Ended June 30, 2024 $ 3.1 $ 12.4 $ 56.8 $ 72.3 Other $ 7.4 $ 0.1 $ 2.6 $ 10.1 Six Months Ended June 30, 2023 $ 7.4 $ 0.1 $ 2.6 $ 10.1 _______________ (1) Primarily represents costs associated with contract terminations, plant and equipment decommissioning charges and other miscellaneous exit costs. (2) Primarily represents property, plant and equipment and finite-lived intangible asset write-downs, accelerated depreciation and amortization, and impairment charges on certain assets, which were or are to be disposed of or abandoned. Also included, to the extent incurred, the acceleration effect of re-estimating settlement dates and revised cost estimates associated with asset retirement obligations related to asset disposal charges that are included within restructuring charges. |
Schedule of Restructuring Reserve by Type of Cost | The following table ( in millions ) shows a roll forward of restructuring reserves that will result in cash spending, the majority of which relate to the Performance Chemicals' repositioning. Balance at Change in Cash Balance at 12/31/2023 (1) Reserve (2) Payments Other (3) 6/30/2024 (1) $ 8.2 19.1 (22.9) (0.1) $ 4.3 _______________ (1) Included in "Accrued expenses" on the condensed consolidated balance sheets. (2) Includes severance and other employee-related costs, exited leases, contract terminations and other miscellaneous exit costs. Any asset write-downs including accelerated depreciation and impairment charges are not included in the above table. (3) Primarily foreign currency translation adjustments. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rates, including discrete items, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Effective tax rate 15.2 % 25.6 % 16.4 % 22.9 % The below table provides a reconciliation between our reported effective tax rates and the EAETR. Three Months Ended June 30, 2024 2023 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (334.6) $ (50.9) 15.2 % $ 47.7 $ 12.2 25.6 % Discrete items: Restructuring and other (income) charges, net (1) 10.0 2.4 4.4 1.0 (Gain) loss on strategic investments (2) (0.1) — — — Goodwill impairment (3) 349.1 57.0 — — Other tax only discrete items — (0.5) — (0.8) Total discrete items 359.0 58.9 4.4 0.2 Consolidated operations, before discrete items $ 24.4 $ 8.0 $ 52.1 $ 12.4 EAETR (4) 33.5 % 23.8 % Six Months Ended June 30, 2024 2023 In millions, except percentages Before tax Tax Effective tax rate % impact Before tax Tax Effective tax rate % impact Consolidated operations $ (406.5) $ (66.8) 16.4 % $ 111.8 $ 25.6 22.9 % Discrete items: Restructuring and other (income) charges, net (1) 74.8 17.5 7.4 1.7 (Gain) loss on strategic investments (2) 4.7 1.1 (19.2) (4.5) Goodwill impairment (3) 349.1 57.0 — — Other tax only discrete items — (1.4) — 0.5 Total discrete items 428.6 74.2 (11.8) (2.3) Consolidated operations, before discrete items $ 22.1 $ 7.4 $ 100.0 $ 23.3 EAETR (4) 34.5 % 23.3 % _______________ (1) See Note 14 for further information. (2) See Note 4 for further information. (3) See Note 7 for further information. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Net sales Performance Materials $ 157.2 $ 144.6 $ 302.3 $ 286.0 Performance Chemicals 185.5 284.0 332.5 469.6 Advanced Polymer Technologies 47.9 53.2 95.9 118.8 Total net sales (1) $ 390.6 $ 481.8 $ 730.7 $ 874.4 Segment EBITDA (2) Performance Materials $ 82.2 $ 64.2 $ 160.2 $ 134.0 Performance Chemicals 9.3 44.9 (1.3) 65.2 Advanced Polymer Technologies 9.8 11.6 19.3 25.4 Total Segment EBITDA (2) $ 101.3 $ 120.7 $ 178.2 $ 224.6 Interest expense, net (23.2) (21.6) (45.5) (41.2) (Provision) benefit for income taxes 50.9 (12.2) 66.8 (25.6) Depreciation and amortization - Performance Materials (9.7) (9.2) (19.3) (19.2) Depreciation and amortization - Performance Chemicals (10.1) (13.0) (22.5) (26.8) Depreciation and amortization - Advanced Polymer Technologies (7.5) (8.2) (15.1) (15.5) Restructuring and other income (charges), net (3) (13.1) (19.2) (75.9) (24.8) Goodwill impairment charge (4) (349.1) — (349.1) — Acquisition and other-related income (costs), net (5) 0.2 (1.8) (0.1) (4.5) Inventory charges (6) — — (2.5) — Loss on CTO resales (7) (23.5) — (50.0) — Gain (loss) on strategic investments (8) 0.1 — (4.7) 19.2 Net income (loss) $ (283.7) $ 35.5 $ (339.7) $ 86.2 _______________ (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 ("CODM") to evaluate the performance of and allocate resources among our operating segments. Segment EBITDA is defined as segment net sales 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 associated with corporate debt facilities, interest income, income taxes, depreciation, amortization, restructuring and other income (charges), net, inventory lower of cost or market charges associated with restructuring actions, goodwill impairment charge, acquisition and other-related income (costs), gain (loss) on strategic investments, loss on CTO resales, pension and postretirement settlement and curtailment income (charges), net. (3) The table below provides an allocation of these charges between our three reportable segments to provide investors, potential investors, securities analysts and others with the information, should they choose, to apply such (income) charges to each respective reportable segment for which the charges relate. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials $ — $ 4.5 $ 0.1 $ 6.2 Performance Chemicals 13.1 13.6 75.9 16.7 Advanced Polymer Technologies — 1.1 (0.1) 1.9 Restructuring and other (income) charges, net $ 13.1 $ 19.2 $ 75.9 $ 24.8 (4) For the three and six months ended June 30, 2024, charges relate to the Performance Chemicals reportable segment. Refer to Note 7 for more information. (5) Charges represent (gains) losses incurred to complete and integrate acquisitions and other strategic investments. Charges may include the expensing of the inventory fair value step-up resulting from the application of purchase accounting for acquisitions and certain legal and professional fees associated with the completion of acquisitions and strategic investments. For the three and six months ended June 30, 2024 and 2023, charges relate to the Performance Chemicals reportable segment. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Legal and professional service fees $ (0.2) $ 1.8 $ 0.1 $ 3.7 Acquisition-related (income) costs $ (0.2) $ 1.8 $ 0.1 $ 3.7 Inventory fair value step-up amortization (1) — — — 0.8 Acquisition and other-related (income) charges $ (0.2) $ 1.8 $ 0.1 $ 4.5 _________________ (1) Included in Cost of sales on the condensed consolidated statements of operations. (6) For the three and six months ended June 30, 2024, inventory charges represent lower of cost or market charges associated with the Performance Chemicals’ repositioning. These charges were not allocated in the measurement of Performance Chemicals reportable segment profitability used by our CODM. Amounts are included in Cost of sales on the condensed consolidated statements of operations. (7) For the three and six months ended June 30, 2024, charges relate to the Performance Chemicals reportable segment. Refer to Note 11 for more information. (8) We exclude gains and losses from strategic investments from our segment results, as well as our non-GAAP financial measures, because we do not consider such gains or losses to be directly associated with the operational performance of the segment. We believe that the inclusion of such gains or losses would impair the factors and trends affecting the historical financial performance of our reportable segments. We continue to include undistributed earnings or loss, distributions, amortization or accretion of basis differences, and other-than-temporary impairments for equity method investments that we believe are directly attributable to the operational performance of such investments, in our reportable segment results. Refer to Note 4, under the section: Strategic Investments , for more information. Three Months Ended June 30, Six Months Ended June 30, In millions 2024 2023 2024 2023 Performance Materials $ (0.1) $ — $ (0.1) $ (19.2) Performance Chemicals — — 4.8 — Advanced Polymer Technologies — — — — (Gain) loss on strategic investments $ (0.1) $ — $ 4.7 $ (19.2) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, Six Months Ended June 30, In millions (except share and per share data) 2024 2023 2024 2023 Net income (loss) $ (283.7) $ 35.5 $ (339.7) $ 86.2 Basic and Diluted earnings (loss) per share Basic earnings (loss) per share $ (7.81) $ 0.98 $ (9.36) $ 2.34 Diluted earnings (loss) per share (7.81) 0.97 (9.36) 2.33 Shares (in thousands) Weighted average number of common shares outstanding - Basic 36,335 36,373 36,299 36,768 Weighted average additional shares assuming conversion of potential common shares — 225 — 303 Shares - diluted basis (1) 36,335 36,598 36,299 37,071 _______________ (1) For the three and six months ended June 30, 2024, all potentially dilutive common shares were excluded from the calculation of diluted earnings (loss) per share as we had a net loss for the period. |
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: Three Months Ended June 30, Six Months Ended June 30, In thousands 2024 2023 2024 2023 Average number of potential common shares - antidilutive 198 473 229 346 |
Background (Details)
Background (Details) | 6 Months Ended |
Jun. 30, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 3 |
Net Sales - Disaggregation of R
Net Sales - Disaggregation of Revenue by Product Line (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 390.6 | $ 481.8 | $ 730.7 | $ 874.4 |
Performance Materials segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 157.2 | 144.6 | 302.3 | 286 |
Performance Materials segment | Road Technologies product line | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 129.1 | 140.9 | 174.8 | 186.7 |
Performance Materials segment | Industrial Specialties product line | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 56.4 | 143.1 | 157.7 | 282.9 |
Performance Chemicals segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 185.5 | 284 | 332.5 | 469.6 |
Advanced Polymer Technologies segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 47.9 | $ 53.2 | $ 95.9 | $ 118.8 |
Net Sales - Disaggregation of_2
Net Sales - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 390.6 | $ 481.8 | $ 730.7 | $ 874.4 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 235.6 | 327.2 | 438.3 | 561.9 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 86.7 | 86.2 | 165.1 | 171.9 |
Europe, Middle East, and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 55.3 | 56.3 | 103.6 | 119 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 13 | $ 12.1 | $ 23.7 | $ 21.6 |
Net Sales - Contract assets (De
Net Sales - Contract assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability | $ 0 | $ 0 |
Change in Contract with Customer, Asset [Roll Forward] | ||
Beginning balance | 11,200,000 | 6,400,000 |
Contract asset additions | 4,800,000 | 8,100,000 |
Reclassification to accounts receivable, billed to customers | (8,300,000) | (7,200,000) |
Ending balance | $ 7,700,000 | $ 7,300,000 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Life insurance owned by company | $ 16 | $ 14.9 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Deferred compensation plan investments | 3.6 | 3 |
Total assets | 3.6 | 3 |
Liabilities: | ||
Deferred compensation arrangement | 16.1 | 15.5 |
Total liabilities | 16.1 | 15.5 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Deferred compensation plan investments | 3.6 | 3 |
Total assets | 3.6 | 3 |
Liabilities: | ||
Deferred compensation arrangement | 16.1 | 15.5 |
Total liabilities | 16.1 | 15.5 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Deferred compensation plan investments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities: | ||
Deferred compensation arrangement | 0 | 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 |
Total liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unfunded commitments | $ 5,600,000 | $ 5,600,000 | |||
Unfunded commitments term | 10 years | ||||
Proceeds from sale of strategic investment | $ 31,400,000 | $ 0 | $ 31,400,000 | ||
Gain on sale of strategic investment | 100,000 | $ 19,200,000 | |||
Equity securities where fair value is not readily determinable | 78,400,000 | 78,400,000 | $ 83,200,000 | ||
Impairment | 0 | 4,800,000 | |||
Finance lease obligation | 1,508,800,000 | 1,508,800,000 | 1,472,500,000 | ||
Debt securities, held-to-maturity, restricted | 80,500,000 | 80,500,000 | 79,100,000 | ||
Held-to-maturity, allowance for credit loss | 100,000 | 100,000 | 200,000 | ||
Restricted investment, restricted cash | 16,800,000 | 16,800,000 | 15,400,000 | ||
Restricted investments, at fair value | 77,900,000 | 77,900,000 | 76,700,000 | ||
Finance lease obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligation | 100,600,000 | 100,600,000 | 101,100,000 | ||
Finance lease obligations | Performance Materials | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligation | 80,000,000 | 80,000,000 | |||
Fair Value, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, fair value | 0 | 0 | 0 | ||
Liabilities, fair value | 0 | 0 | 0 | ||
Privately Held Companies | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investments | 15,500,000 | 15,500,000 | 16,000,000 | ||
Impairment of equity investment | 0 | 0 | |||
Debt Obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Present value of lease liabilities | 100,600,000 | 100,600,000 | 101,100,000 | ||
Variable Interest Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Finance lease obligation | 852,900,000 | 852,900,000 | 821,400,000 | ||
Senior Notes Issued 2018 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior notes | 550,000,000 | 550,000,000 | 550,000,000 | ||
Senior Notes Issued 2018 | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, fair value | 499,000,000 | 499,000,000 | 494,600,000 | ||
Estimate of Fair Value Measurement | Debt Obligations | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Present value of lease liabilities | $ 103,500,000 | $ 103,500,000 | $ 105,700,000 |
Fair Value Measurements - Credi
Fair Value Measurements - Credit Ratings (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 63.8 | $ 63.9 |
AA+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 13.3 | 13.3 |
AA- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 10.3 | 10.4 |
A | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 13.2 | 13.2 |
A- | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 17 | 17 |
BBB+ | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 10 | $ 10 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory, Net | ||
Raw materials | $ 107.8 | $ 128.3 |
Production materials, stores, and supplies | 26.9 | 26 |
Finished and in-process goods | 259 | 255.2 |
Subtotal | 393.7 | 409.5 |
Less: LIFO reserve | (91.7) | (100.7) |
Inventories, net | $ 302 | $ 308.8 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Property, Plant and Equipment | |||
Total cost | $ 1,605.8 | $ 1,605.8 | $ 1,581.1 |
Less: accumulated depreciation | (883.6) | (883.6) | (818.9) |
Property, plant, and equipment, net | 722.2 | 722.2 | 762.2 |
Performance Chemicals | |||
Property, Plant and Equipment | |||
Depreciation | 1.8 | 33.4 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Total cost | 1,277 | 1,277 | 1,244.6 |
Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Total cost | 220.7 | 220.7 | 217.4 |
Land and land improvements | |||
Property, Plant and Equipment | |||
Total cost | 26.3 | 26.3 | 26.3 |
Construction in progress | |||
Property, Plant and Equipment | |||
Total cost | $ 81.8 | $ 81.8 | $ 92.8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Carrying Amount (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Goodwill | |||||
Goodwill, beginning balance | $ 527,500,000 | ||||
Goodwill impairment charge | $ (349,100,000) | $ 0 | (349,100,000) | $ 0 | $ 0 |
Foreign currency translation | (1,400,000) | ||||
Goodwill, ending balance | 177,000,000 | 177,000,000 | 527,500,000 | ||
Performance Materials | |||||
Goodwill | |||||
Goodwill, beginning balance | 4,300,000 | ||||
Goodwill impairment charge | 0 | ||||
Foreign currency translation | 0 | ||||
Goodwill, ending balance | 4,300,000 | 4,300,000 | 4,300,000 | ||
Performance Chemicals | |||||
Goodwill | |||||
Goodwill, beginning balance | 349,400,000 | ||||
Goodwill impairment charge | (349,100,000) | ||||
Foreign currency translation | (300,000) | ||||
Goodwill, ending balance | 0 | 0 | 349,400,000 | ||
Advanced Polymer Technologies segment | |||||
Goodwill | |||||
Goodwill, beginning balance | 173,800,000 | ||||
Goodwill impairment charge | 0 | ||||
Foreign currency translation | (1,100,000) | ||||
Goodwill, ending balance | $ 172,700,000 | $ 172,700,000 | $ 173,800,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill impairment charge | $ 349,100,000 | $ 0 | $ 349,100,000 | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Roll Forward] | |||||
Beginning balance, Gross Asset Value | $ 580.8 | ||||
Retirements | (130.9) | ||||
Foreign currency translation | (1.9) | ||||
Ending balance, Gross Asset Value | $ 448 | 448 | $ 580.8 | ||
Beginning balance, Accumulated Amortization | (244.7) | ||||
Amortization | (7.5) | $ (10.5) | (39.1) | $ (20.9) | |
Retirements | 130.9 | ||||
Foreign currency translation | 0.6 | ||||
Ending balance, Accumulated Amortization | (152.3) | (152.3) | (244.7) | ||
Other intangibles, net | 295.7 | 295.7 | 336.1 | ||
Restructuring and other (income) charges, net | |||||
Finite-Lived Intangible Assets [Roll Forward] | |||||
Amortization | 0 | $ 0 | (22.1) | $ 0 | |
Customer contracts and relationships | |||||
Finite-Lived Intangible Assets [Roll Forward] | |||||
Beginning balance, Gross Asset Value | 396.5 | ||||
Retirements | (129) | ||||
Foreign currency translation | (1.1) | ||||
Ending balance, Gross Asset Value | 266.4 | 266.4 | 396.5 | ||
Beginning balance, Accumulated Amortization | (179.4) | ||||
Amortization | (31.3) | ||||
Retirements | 129 | ||||
Foreign currency translation | 0.3 | ||||
Ending balance, Accumulated Amortization | (81.4) | (81.4) | (179.4) | ||
Other intangibles, net | 185 | 185 | |||
Customer contracts and relationships | Restructuring and other (income) charges, net | |||||
Finite-Lived Intangible Assets [Roll Forward] | |||||
Amortization | (37.4) | ||||
Brands | |||||
Finite-Lived Intangible Assets [Roll Forward] | |||||
Beginning balance, Gross Asset Value | 92.6 | ||||
Retirements | 0 | ||||
Foreign currency translation | (0.4) | ||||
Ending balance, Gross Asset Value | 92.2 | 92.2 | 92.6 | ||
Beginning balance, Accumulated Amortization | (30.3) | ||||
Amortization | (2.7) | ||||
Retirements | 0 | ||||
Foreign currency translation | 0.1 | ||||
Ending balance, Accumulated Amortization | (32.9) | (32.9) | (30.3) | ||
Other intangibles, net | 59.3 | 59.3 | |||
Developed Technology | |||||
Finite-Lived Intangible Assets [Roll Forward] | |||||
Beginning balance, Gross Asset Value | 91.7 | ||||
Retirements | (1.9) | ||||
Foreign currency translation | (0.4) | ||||
Ending balance, Gross Asset Value | 89.4 | 89.4 | 91.7 | ||
Beginning balance, Accumulated Amortization | (35) | ||||
Amortization | (5.1) | ||||
Retirements | 1.9 | ||||
Foreign currency translation | 0.2 | ||||
Ending balance, Accumulated Amortization | (38) | (38) | $ (35) | ||
Other intangibles, net | $ 51.4 | $ 51.4 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, net - Intangible Assets by Segments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 295.7 | $ 336.1 |
Performance Materials | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | 1.3 | 1.5 |
Performance Chemicals | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | 108 | 137.5 |
Advanced Polymer Technologies segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, net | $ 186.4 | $ 197.1 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets, net - Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 7.5 | $ 10.5 | $ 39.1 | $ 20.9 |
Selling, general, and administrative expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 7.5 | 10.5 | 17 | 20.9 |
Restructuring and other (income) charges, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 0 | $ 0 | $ 22.1 | $ 0 |
Goodwill and Other Intangible_8
Goodwill and Other Intangible Assets, net - Maturity (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
Remainder of 2024 amortization expense | $ 15 |
2025 amortization expense | 29.8 |
2026 amortization expense | 29.1 |
2027 amortization expense | 29.1 |
2028 amortization expense | $ 29.1 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Narrative (Details) mmbtus in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) mmbtus | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | ||
Cash flow hedged gains to be reclassified within 12 months | $ 800,000 | |
Foreign currency hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,200,000 | |
Derivative, fair value, net asset (liability) | 0 | $ 0 |
Natural gas contracts | ||
Derivative [Line Items] | ||
Derivative, fair value, net asset (liability) | $ 0 | $ (900,000) |
Natural gas contracts | Swap | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | mmbtus | 1.5 | |
Natural gas contracts | Zero Cost Collar | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | mmbtus | 0.9 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Effect of Cash Flow and Net Investment Hedge Accounting on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | $ 390.6 | $ 481.8 | $ 730.7 | $ 874.4 |
Cost of sales | (267.4) | (328.8) | (507.8) | (591) |
Derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total | 0.1 | (0.1) | (0.3) | (3.1) |
Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total | (0.8) | (1.8) | (1.5) | (1.5) |
Currency exchange contracts | Derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | 0.1 | 0 | 0.1 | (0.1) |
Currency exchange contracts | Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net sales | 0 | (0.3) | 0 | (0.5) |
Natural gas contracts | Derivative instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of sales | 0 | (0.1) | (0.4) | (3) |
Natural gas contracts | Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cost of sales | $ (0.8) | $ (1.5) | $ (1.5) | $ (1) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Fair Value of Hedging Contracts (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Total assets | $ 0.1 | $ 0.5 |
Liabilities: | ||
Total liabilities | 0.1 | 1.4 |
Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets | 0.1 | 0.5 |
Liabilities: | ||
Total liabilities | 0.1 | 1.4 |
Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Currency exchange contracts | ||
Assets: | ||
Total assets | 0.1 | 0.5 |
Liabilities: | ||
Total liabilities | 0.1 | 0.5 |
Currency exchange contracts | Level 1 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Currency exchange contracts | Level 2 | ||
Assets: | ||
Total assets | 0.1 | 0.5 |
Liabilities: | ||
Total liabilities | 0.1 | 0.5 |
Currency exchange contracts | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Total liabilities | $ 0 | 0 |
Natural gas contracts | ||
Liabilities: | ||
Total liabilities | 0.9 | |
Natural gas contracts | Level 1 | ||
Liabilities: | ||
Total liabilities | 0 | |
Natural gas contracts | Level 2 | ||
Liabilities: | ||
Total liabilities | 0.9 | |
Natural gas contracts | Level 3 | ||
Liabilities: | ||
Total liabilities | $ 0 |
Debt including Finance Lease _3
Debt including Finance Lease Obligations - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 1,508.8 | $ 1,472.5 |
Less: debt issuance costs | 4.8 | 5.3 |
Total debt, including finance lease obligations, net of debt issuance costs | 1,504 | 1,467.2 |
Less: debt maturing within one year | 103 | 84.4 |
Long-term debt including finance lease obligations | 1,401 | 1,382.8 |
Restricted investments | 80.5 | 79.1 |
Revolving Credit Facility and other lines of credit | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | 756.3 | 738 |
Letters of credit outstanding | 2 | 2.5 |
Available under the facility | $ 241.7 | $ 259.5 |
Weighted average interest rate | 6.76% | 6.36% |
Senior Notes | 3.88% Senior Notes due 2028 | ||
Line of Credit Facility | ||
Stated rate | 3.88% | |
Total debt including finance lease obligations | $ 550 | $ 550 |
Finance lease obligations | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | 100.6 | 101.1 |
Finance lease obligations | Performance Materials | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | 80 | |
Accounts receivable securitization | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 100 | $ 81.3 |
Weighted average interest rate | 5.50% | 5.61% |
Other notes payable | ||
Line of Credit Facility | ||
Total debt including finance lease obligations | $ 1.9 | $ 2.1 |
Debt including Finance Lease _4
Debt including Finance Lease Obligations - Narrative (Details) | Jun. 30, 2024 |
Line of Credit Facility | |
Leverage ratio, interest | 4.8 |
Term Loan | |
Line of Credit Facility | |
Actual leverage ratio | 3.3 |
Revolving Credit Facility | |
Line of Credit Facility | |
Leverage ratio potential increase | 4.5 |
Revolving Credit Facility | Maximum | |
Line of Credit Facility | |
Leverage ratio | 4 |
Revolving Credit Facility | Minimum | |
Line of Credit Facility | |
Leverage ratio, interest | 3 |
Equity - Rollforward of Equity
Equity - Rollforward of Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance (shares) | 36,233,092 | 36,233,092 | ||||
Beginning balance | $ 568,200,000 | $ 631,400,000 | $ 725,700,000 | $ 698,300,000 | $ 631,400,000 | $ 698,300,000 |
Net income (loss) | (283,700,000) | (56,000,000) | 35,500,000 | 50,700,000 | (339,700,000) | 86,200,000 |
Other comprehensive income (loss) | (1,900,000) | (8,900,000) | 5,300,000 | 8,000,000 | ||
Exercise of stock options, net | 2,200,000 | |||||
Tax payments related to vested restricted stock units | (200,000) | (2,600,000) | (4,500,000) | |||
Share repurchase program | 0 | (58,700,000) | (33,400,000) | $ 0 | (92,100,000) | |
Share-based compensation plans | $ 2,400,000 | 4,300,000 | 6,300,000 | 4,400,000 | ||
Ending balance (shares) | 36,340,277 | 36,340,277 | ||||
Ending balance | $ 284,800,000 | $ 568,200,000 | $ 714,100,000 | $ 725,700,000 | $ 284,800,000 | $ 714,100,000 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance (shares) | 43,585,000 | 43,447,000 | 43,408,000 | 43,228,000 | 43,447,000 | 43,228,000 |
Beginning balance | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 |
Common stock issued (shares) | 20,000 | 139,000 | 22,000 | 139,000 | ||
Exercise of stock options, net (shares) | 41,000 | |||||
Ending balance (shares) | 43,606,000 | 43,585,000 | 43,430,000 | 43,408,000 | 43,606,000 | 43,430,000 |
Ending balance | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 |
Additional paid in capital | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 169,200,000 | 164,900,000 | 158,900,000 | 153,000,000 | 164,900,000 | 153,000,000 |
Exercise of stock options, net | 2,200,000 | |||||
Share-based compensation plans | 2,400,000 | 4,300,000 | 4,700,000 | 3,700,000 | ||
Ending balance | 171,600,000 | 169,200,000 | 163,600,000 | 158,900,000 | 171,600,000 | 163,600,000 |
Retained earnings | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | 946,300,000 | 1,002,300,000 | 1,058,400,000 | 1,007,700,000 | 1,002,300,000 | 1,007,700,000 |
Net income (loss) | (283,700,000) | (56,000,000) | 35,500,000 | 50,700,000 | ||
Ending balance | 662,600,000 | 946,300,000 | 1,093,900,000 | 1,058,400,000 | 662,600,000 | 1,093,900,000 |
Accumulated other comprehensive income (loss) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (35,600,000) | (26,700,000) | (38,800,000) | (46,800,000) | (26,700,000) | (46,800,000) |
Other comprehensive income (loss) | (1,900,000) | (8,900,000) | 5,300,000 | 8,000,000 | ||
Ending balance | (37,500,000) | (35,600,000) | (33,500,000) | (38,800,000) | (37,500,000) | (33,500,000) |
Treasury stock | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||
Beginning balance | (512,100,000) | (509,500,000) | (453,200,000) | (416,000,000) | (509,500,000) | (416,000,000) |
Tax payments related to vested restricted stock units | (200,000) | (2,600,000) | (4,500,000) | |||
Share repurchase program | (58,700,000) | (33,400,000) | ||||
Share-based compensation plans | 1,600,000 | 700,000 | ||||
Ending balance | $ (512,300,000) | $ (512,100,000) | $ (510,300,000) | $ (453,200,000) | $ (512,300,000) | $ (510,300,000) |
Equity - Rollforward of Accumul
Equity - Rollforward of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 568.2 | $ 725.7 | $ 631.4 | $ 698.3 |
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | (1.9) | 5.3 | (10.8) | 13.3 |
Ending balance | 284.8 | 714.1 | 284.8 | 714.1 |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (35.6) | (38.8) | (26.7) | (46.8) |
Ending balance | (37.5) | (33.5) | (37.5) | (33.5) |
Foreign currency translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (34.7) | (35.3) | (25.6) | (45.8) |
Net gains (losses) on foreign currency translation | (2.6) | 4 | (11.7) | 14.5 |
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | (2.6) | 4 | (11.7) | 14.5 |
Ending balance | (37.3) | (31.3) | (37.3) | (31.3) |
Derivative instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1.4) | (3.9) | (1.6) | (1.4) |
Gains (losses) on net investment hedges | 0.1 | (0.1) | (0.3) | (3.1) |
Less: tax provision (benefit) | 0 | 0 | (0.1) | (0.7) |
Net gains (losses) on derivative instruments | 0.1 | (0.1) | (0.2) | (2.4) |
(Gains) losses reclassified to net income | 0.8 | 1.8 | 1.5 | 1.5 |
Less: tax (provision) benefit | 0.2 | 0.5 | 0.4 | 0.4 |
Net (gains) losses reclassified to net income | 0.6 | 1.3 | 1.1 | 1.1 |
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | 0.7 | 1.2 | 0.9 | (1.3) |
Ending balance | (0.7) | (2.7) | (0.7) | (2.7) |
Pension and other postretirement benefits | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 0.5 | 0.4 | 0.5 | 0.4 |
Gains (losses) on net investment hedges | 0 | 0.1 | 0 | 0.1 |
Less: tax provision (benefit) | 0 | 0 | 0 | 0 |
Net (gains) losses reclassified to net income | 0 | 0.1 | 0 | 0.1 |
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $0.5, $0.3, and $(0.3) | 0 | 0.1 | 0 | 0.1 |
Ending balance | $ 0.5 | $ 0.5 | $ 0.5 | $ 0.5 |
Equity - Reclassification of AO
Equity - Reclassification of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net sales | $ 390.6 | $ 481.8 | $ 730.7 | $ 874.4 | ||
Cost of sales | (267.4) | (328.8) | (507.8) | (591) | ||
Total before tax | (334.6) | 47.7 | (406.5) | 111.8 | ||
(Provision) benefit for income taxes | 50.9 | (12.2) | 66.8 | (25.6) | ||
Amount included in net income (loss) | (283.7) | $ (56) | 35.5 | $ 50.7 | (339.7) | 86.2 |
Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | (0.8) | (1.8) | (1.5) | (1.5) | ||
(Provision) benefit for income taxes | 0.2 | 0.5 | 0.4 | 0.4 | ||
Amount included in net income (loss) | (0.6) | (1.3) | (1.1) | (1.1) | ||
Amortization of prior service costs | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales | 0 | (0.1) | 0 | (0.1) | ||
Pension and other postretirement benefits | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | 0 | 0.1 | 0 | 0.1 | ||
(Provision) benefit for income taxes | 0 | 0 | 0 | 0 | ||
Amount included in net income (loss) | 0 | 0.1 | 0 | 0.1 | ||
Currency exchange contracts | Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net sales | 0 | (0.3) | 0 | (0.5) | ||
Natural gas contracts | Derivative instruments | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales | 0 | (0.1) | (0.4) | (3) | ||
Natural gas contracts | Derivative instruments | Amount of Gain (Loss) Reclassified from AOCI into Net income (loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales | $ (0.8) | $ (1.5) | $ (1.5) | $ (1) |
Equity - Share Repurchases (Det
Equity - Share Repurchases (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 25, 2022 | |
Equity [Abstract] | ||||||
Amount remained unused under repurchase program | $ 353,400,000 | $ 353,400,000 | $ 500,000,000 | |||
Shares repurchased | $ 0 | $ 58,700,000 | $ 33,400,000 | $ 0 | $ 92,100,000 | |
Shares repurchased, excise tax | $ 600,000 | $ 800,000 | ||||
Shares repurchased (shares) | 819,898 | 1,269,373 | ||||
Shares acquired average cost per share (usd per share) | $ 70.87 | $ 71.93 |
Restructuring and Other (Inco_3
Restructuring and Other (Income) Charges, net - Components (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 10 | $ 7 | $ 72.3 | $ 10.1 |
Other (income) charges, net | 3.1 | 12.2 | 3.6 | 14.7 |
Total Restructuring and other (income) charges, net | $ 13.1 | $ 19.2 | $ 75.9 | $ 24.8 |
Restructuring and Other (Inco_4
Restructuring and Other (Income) Charges, net - Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Performance Chemicals' repositioning | $ 10 | $ 72.3 | ||
Other | $ 7 | $ 10.1 | ||
Restructuring charges | 10 | 7 | 72.3 | 10.1 |
Severance and other employee-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Performance Chemicals' repositioning | 1 | 3.1 | ||
Other | 4.4 | 7.4 | ||
Restructuring charges | 1 | 4.4 | 3.1 | 7.4 |
Other charges (income) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Performance Chemicals' repositioning | 7.2 | 12.4 | ||
Other | 0 | 0.1 | ||
Restructuring charges | 7.2 | 0 | 12.4 | 0.1 |
Asset disposal charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Performance Chemicals' repositioning | 1.8 | 56.8 | ||
Other | 2.6 | 2.6 | ||
Restructuring charges | $ 1.8 | $ 2.6 | $ 56.8 | $ 2.6 |
Restructuring and Other (Inco_5
Restructuring and Other (Income) Charges, net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2024 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Expected revenue impact of strategic segment changes | 45% | 45% | ||||
Workforce reduction | 20% | |||||
Restructuring costs | $ 207,600,000 | |||||
Restructuring charges, non-cash | 182,000,000 | |||||
Restructuring charges, cash | 25,600,000 | |||||
Payments for restructuring | 22,900,000 | |||||
Non-cash charges, expected | $ 185,000,000 | 185,000,000 | ||||
Restructuring charges, cash, expected | 65,000,000 | 65,000,000 | ||||
Inventory write-down | $ 0 | 2,500,000 | ||||
CTO resale losses | 23,500,000 | $ 0 | 50,000,000 | $ 0 | ||
Restructuring expected cost remaining | 5,000,000 | 5,000,000 | ||||
Other charges | 3,100,000 | 12,200,000 | 3,600,000 | 14,700,000 | ||
Business transformation costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other charges | 0 | 2,700,000 | $ 0 | 5,200,000 | ||
Minimum | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Non-cash charges, expected recognition | 50% | |||||
Maximum | Forecast | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Non-cash charges, expected recognition | 60% | |||||
Performance Chemicals | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Workforce reduction | 30% | |||||
Payments for restructuring | $ 21,300,000 | |||||
Multiple Restructuring Changes | Performance Chemicals | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 250,000,000 | 250,000,000 | ||||
Workforce reduction cost | 30,000,000 | 30,000,000 | ||||
Restructuring, Asset Related | Performance Chemicals | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 185,000,000 | 185,000,000 | ||||
Restructuring, Severance and Other Employee Related Costs | Performance Chemicals | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | 15,000,000 | 15,000,000 | ||||
Other Restructuring | Alternative Feedstock Transition | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Incurred cost | 0 | 6,600,000 | 0 | 6,600,000 | ||
Other Restructuring | North Charleston plant transition | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs | 3,100,000 | $ 2,900,000 | 3,600,000 | $ 2,900,000 | ||
Other Restructuring | Performance Chemicals | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expected cost | $ 50,000,000 | $ 50,000,000 |
Restructuring and Other (Inco_6
Restructuring and Other (Income) Charges, net - Restructuring Reserve (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Restructuring Reserve | |
Restructuring reserve, beginning balance | $ 8.2 |
Change in Reserve | 19.1 |
Cash payments | (22.9) |
Other | (0.1) |
Restructuring reserve, ending balance | $ 4.3 |
Income Taxes - Effective tax ra
Income Taxes - Effective tax rate (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation, Percent | ||||
Effective tax rate | 15.20% | 25.60% | 16.40% | 22.90% |
Income Taxes - Tax Reconciliati
Income Taxes - Tax Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Before tax | ||||
Income (loss) before income taxes | $ (334.6) | $ 47.7 | $ (406.5) | $ 111.8 |
Restructuring and other (income) charges, net | 10 | 4.4 | 74.8 | 7.4 |
(Gain) loss on strategic investments | (0.1) | 0 | 4.7 | (19.2) |
Goodwill impairment | 349.1 | 0 | 349.1 | 0 |
Other tax only discrete items | 0 | 0 | 0 | 0 |
Total discrete items | 359 | 4.4 | 428.6 | (11.8) |
Consolidated operations, before discrete items | 24.4 | 52.1 | 22.1 | 100 |
Tax | ||||
Provision (benefit) for income taxes | (50.9) | 12.2 | (66.8) | 25.6 |
Restructuring and other (income) charges, net | 2.4 | 1 | 17.5 | 1.7 |
(Gain) loss on strategic investments, tax | 0 | 0 | 1.1 | (4.5) |
Goodwill impairment | 57 | 0 | 57 | 0 |
Other tax only discrete items | (0.5) | (0.8) | (1.4) | 0.5 |
Total discrete items | 58.9 | 0.2 | 74.2 | (2.3) |
Consolidated operations, before discrete items | $ 8 | $ 12.4 | $ 7.4 | $ 23.3 |
Effective tax rate | 15.20% | 25.60% | 16.40% | 22.90% |
EAETR | 33.50% | 23.80% | 34.50% | 23.30% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Deferred tax asset | $ 10.5 | $ 11.1 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Millions | 1 Months Ended | |||
Sep. 15, 2021 USD ($) | Nov. 30, 2020 | Jun. 30, 2024 USD ($) | Feb. 14, 2019 claim | |
Loss Contingencies [Line Items] | ||||
Litigation settlement | $ 85 | |||
Final resolution, term | 18 months | |||
Loss contingency accrual | $ 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 - Net Sales
Segment Information - Net Sales and Segment Operating Profit (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 390,600,000 | $ 481,800,000 | $ 730,700,000 | $ 874,400,000 | |||
Segment Reporting Information, Profit (Loss) | |||||||
Segment operating profits | 101,300,000 | 120,700,000 | 178,200,000 | 224,600,000 | |||
Interest expense, net | (23,200,000) | (21,600,000) | (45,500,000) | (41,200,000) | |||
(Provision) benefit for income taxes | 50,900,000 | (12,200,000) | 66,800,000 | (25,600,000) | |||
Depreciation and amortization | (56,900,000) | (61,500,000) | |||||
Restructuring and other income (charges), net | (13,100,000) | (19,200,000) | (75,900,000) | (24,800,000) | |||
Goodwill impairment charge | (349,100,000) | 0 | (349,100,000) | 0 | $ 0 | ||
Acquisition and other-related income (costs), net | 200,000 | (1,800,000) | (100,000) | (4,500,000) | |||
Inventory charges | 0 | 0 | (2,500,000) | 0 | |||
CTO resale losses | (23,500,000) | 0 | (50,000,000) | 0 | |||
Gain (loss) on strategic investments | 100,000 | 0 | (4,700,000) | 19,200,000 | |||
Net income (loss) | (283,700,000) | $ (56,000,000) | 35,500,000 | $ 50,700,000 | $ (339,700,000) | 86,200,000 | |
Number of reporting segments | segment | 3 | ||||||
Performance Materials | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 157,200,000 | 144,600,000 | $ 302,300,000 | 286,000,000 | |||
Segment Reporting Information, Profit (Loss) | |||||||
Segment operating profits | 82,200,000 | 64,200,000 | 160,200,000 | 134,000,000 | |||
Depreciation and amortization | (9,700,000) | (9,200,000) | (19,300,000) | (19,200,000) | |||
Restructuring and other income (charges), net | 0 | (4,500,000) | (100,000) | (6,200,000) | |||
Goodwill impairment charge | 0 | ||||||
Gain (loss) on strategic investments | 100,000 | 0 | 100,000 | 19,200,000 | |||
Performance Chemicals | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 185,500,000 | 284,000,000 | 332,500,000 | 469,600,000 | |||
Segment Reporting Information, Profit (Loss) | |||||||
Segment operating profits | 9,300,000 | 44,900,000 | (1,300,000) | 65,200,000 | |||
Depreciation and amortization | (10,100,000) | (13,000,000) | (22,500,000) | (26,800,000) | |||
Restructuring and other income (charges), net | (13,100,000) | (13,600,000) | (75,900,000) | (16,700,000) | |||
Goodwill impairment charge | (349,100,000) | ||||||
Gain (loss) on strategic investments | 0 | 0 | (4,800,000) | 0 | |||
Advanced Polymer Technologies | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 47,900,000 | 53,200,000 | 95,900,000 | 118,800,000 | |||
Segment Reporting Information, Profit (Loss) | |||||||
Segment operating profits | 9,800,000 | 11,600,000 | 19,300,000 | 25,400,000 | |||
Depreciation and amortization | (7,500,000) | (8,200,000) | (15,100,000) | (15,500,000) | |||
Restructuring and other income (charges), net | 0 | (1,100,000) | 100,000 | (1,900,000) | |||
Goodwill impairment charge | 0 | ||||||
Gain (loss) on strategic investments | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Acquisiti
Segment Information - Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other (income) charges, net | $ 13.1 | $ 19.2 | $ 75.9 | $ 24.8 |
Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other (income) charges, net | 0 | 4.5 | 0.1 | 6.2 |
Performance Chemicals | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other (income) charges, net | 13.1 | 13.6 | 75.9 | 16.7 |
Advanced Polymer Technologies segment | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other (income) charges, net | $ 0 | $ 1.1 | $ (0.1) | $ 1.9 |
Segment Information - Acquisi_2
Segment Information - Acquisition Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Acquisition-related (income) costs | $ (0.2) | $ 1.8 | $ 0.1 | $ 3.7 |
Acquisition and other-related (income) charges | (0.2) | 1.8 | 0.1 | 4.5 |
Acquisitions and Other Strategic Investments | ||||
Segment Reporting Information [Line Items] | ||||
Legal and professional service fees | (0.2) | 1.8 | 0.1 | 3.7 |
Acquisition-related (income) costs | (0.2) | 1.8 | 0.1 | 3.7 |
Inventory fair value step-up amortization | 0 | 0 | 0 | 0.8 |
Acquisition and other-related (income) charges | $ (0.2) | $ 1.8 | $ 0.1 | $ 4.5 |
Segment Information - Restructu
Segment Information - Restructuring Charges by Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
(Gain) loss on strategic investment | $ (0.1) | $ 0 | $ 4.7 | $ (19.2) |
Performance Materials | ||||
Segment Reporting Information [Line Items] | ||||
(Gain) loss on strategic investment | (0.1) | 0 | (0.1) | (19.2) |
Performance Chemicals | ||||
Segment Reporting Information [Line Items] | ||||
(Gain) loss on strategic investment | 0 | 0 | 4.8 | 0 |
Advanced Polymer Technologies segment | ||||
Segment Reporting Information [Line Items] | ||||
(Gain) loss on strategic investment | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings (Loss) per Share - Ear
Earnings (Loss) per Share - Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share Reconciliation | ||||||
Net income (loss) | $ (283.7) | $ (56) | $ 35.5 | $ 50.7 | $ (339.7) | $ 86.2 |
Basic and Diluted earnings (loss) per share | ||||||
Basic earnings (loss) per share (usd per share) | $ (7.81) | $ 0.98 | $ (9.36) | $ 2.34 | ||
Diluted earnings (loss) per share (usd per share) | $ (7.81) | $ 0.97 | $ (9.36) | $ 2.33 | ||
Shares (in thousands) | ||||||
Weighted average number of common shares outstanding - Basic (shares) | 36,335 | 36,373 | 36,299 | 36,768 | ||
Weighted average additional shares assuming conversion of potential common shares (shares) | 0 | 225 | 0 | 303 | ||
Shares - diluted basis (shares) | 36,335 | 36,598 | 36,299 | 37,071 |
Earnings (Loss) per Share - Ant
Earnings (Loss) per Share - Antidilutive (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Average number of potential common shares - antidilutive (shares) | 198 | 473 | 229 | 346 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2025 | Dec. 31, 2024 | Oct. 15, 2024 | Jul. 31, 2024 | Jul. 01, 2024 | Jun. 30, 2024 | |
Subsequent Event [Line Items] | ||||||
Non-cash charges, expected | $ 185 | |||||
Forecast | Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Non-cash charges, expected recognition | 50% | |||||
Forecast | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Non-cash charges, expected recognition | 60% | |||||
Forecast | Crossett, Arkansas Plant Closure | Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Non-cash charges, expected recognition | 50% | |||||
Forecast | Crossett, Arkansas Plant Closure | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Non-cash charges, expected recognition | 60% | |||||
Forecast | CTO Supply Contract Termination Agreement | ||||||
Subsequent Event [Line Items] | ||||||
Purchase commitment, remaining amount committed | $ 50 | |||||
Subsequent Event | Crossett, Arkansas Plant Closure | ||||||
Subsequent Event [Line Items] | ||||||
Expected net operational savings | $ 20 | |||||
Expected annual savings | 10 | |||||
Non-cash charges, expected | 65 | |||||
Subsequent Event | Crossett, Arkansas Plant Closure | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Expected net operational savings | 25 | |||||
Subsequent Event | Multiple Restructuring Changes | Crossett, Arkansas Plant Closure | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring expected cost | 100 | |||||
Subsequent Event | Restructuring, Asset Related | Crossett, Arkansas Plant Closure | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring expected cost | 65 | |||||
Subsequent Event | Restructuring, Severance and Other Employee Related Costs | Crossett, Arkansas Plant Closure | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring expected cost | 10 | |||||
Subsequent Event | Other Restructuring | Crossett, Arkansas Plant Closure | ||||||
Subsequent Event [Line Items] | ||||||
Restructuring expected cost | $ 25 | |||||
Subsequent Event | CTO Supply Contract Termination Agreement | ||||||
Subsequent Event [Line Items] | ||||||
Purchase commitment, remaining amount committed | $ 50 |