Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-37774 | ||
Entity Registrant Name | AdvanSix Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-2525089 | ||
Entity Address, Address Line One | 300 Kimball Drive | ||
Entity Address, Address Line Two | Suite 101 | ||
Entity Address, City or Town | Parsippany | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 7054 | ||
City Area Code | 973 | ||
Local Phone Number | 526-1800 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ASIX | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 821 | ||
Entity Common Stock, Shares Outstanding | 28,141,203 | ||
Documents Incorporated by Reference | Part III: Proxy Statement for Annual Meeting of Stockholders to be held June 15, 2022. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001673985 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Florham Park, New Jersey |
Auditor Firm ID | 238 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 1,684,625,000 | $ 1,157,917,000 | $ 1,297,393,000 |
Costs, expenses and other: | |||
Costs of goods sold | 1,410,503,000 | 1,024,169,000 | 1,161,921,000 |
Selling, general and administrative expenses | 82,985,000 | 70,870,000 | 75,375,000 |
Interest expense, net | 5,023,000 | 7,792,000 | 5,454,000 |
Other non-operating expense, net | 998,000 | 53,000 | 1,295,000 |
Total costs, expenses and other | 1,499,509,000 | 1,102,884,000 | 1,244,045,000 |
Income before taxes | 185,116,000 | 55,033,000 | 53,348,000 |
Income tax expense | 45,325,000 | 8,956,000 | 12,001,000 |
Net income | $ 139,791,000 | $ 46,077,000 | $ 41,347,000 |
Earnings per common share | |||
Basic (in dollars per share) | $ 4.97 | $ 1.64 | $ 1.47 |
Diluted (in dollars per share) | $ 4.81 | $ 1.64 | $ 1.43 |
Weighted average common shares outstanding | |||
Basic (in shares) | 28,152,876 | 28,048,726 | 28,122,288 |
Diluted (in shares) | 29,045,186 | 28,157,062 | 28,898,836 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 139,791 | $ 46,077 | $ 41,347 |
Foreign exchange translation adjustments | (43) | (49) | (9) |
Cash-flow hedges | 1,789 | (1,028) | (673) |
Pension obligation adjustments | 7,847 | (5,604) | (6,295) |
Other comprehensive income (loss), net of tax | 9,593 | (6,681) | (6,977) |
Comprehensive income | $ 149,384 | $ 39,396 | $ 34,370 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 15,100 | $ 10,606 |
Accounts and other receivables – net | 178,140 | 123,554 |
Inventories – net | 149,570 | 180,085 |
Taxes receivable | 947 | 12,289 |
Other current assets | 6,097 | 6,969 |
Total current assets | 349,854 | 333,503 |
Property, plant and equipment – net | 767,964 | 765,469 |
Operating lease right-of-use assets | 136,207 | 114,484 |
Goodwill | 17,592 | 15,005 |
Other assets | 40,382 | 34,946 |
Total assets | 1,311,999 | 1,263,407 |
Current liabilities: | ||
Accounts payable | 221,234 | 190,227 |
Accrued liabilities | 49,712 | 41,152 |
Operating lease liabilities – short term | 36,127 | 29,279 |
Deferred income and customer advances | 2,749 | 26,379 |
Total current liabilities | 309,822 | 287,037 |
Deferred income taxes | 133,330 | 125,575 |
Operating lease liabilities – long term | 100,580 | 85,605 |
Line of credit – long-term | 135,000 | 275,000 |
Postretirement benefit obligations | 18,243 | 39,168 |
Other liabilities | 13,834 | 6,899 |
Total liabilities | 710,809 | 819,284 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $0.01; 200,000,000 shares authorized; 31,755,430 shares issued and 28,139,954 outstanding at December 31, 2021; 31,627,139 shares issued and 28,033,227 outstanding at December 31, 2020 | 318 | 316 |
Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2021 and 2020 | 0 | 0 |
Treasury stock at par (3,615,476 shares at December 31, 2021; 3,593,912 shares at December 31, 2020) | (36) | (36) |
Additional paid-in capital | 195,931 | 184,732 |
Retained earnings | 411,516 | 275,243 |
Accumulated other comprehensive loss | (6,539) | (16,132) |
Total stockholders' equity | 601,190 | 444,123 |
Total liabilities and stockholders' equity | $ 1,311,999 | $ 1,263,407 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 31,755,430 | 31,627,139 |
Common stock, shares outstanding (in shares) | 28,139,954 | 28,033,227 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 3,615,476 | 3,593,912 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 139,791 | $ 46,077 | $ 41,347 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 65,340 | 60,832 | 56,826 |
Loss on disposal of assets | 1,711 | 696 | 5,190 |
Deferred income taxes | 4,702 | 17,611 | 8,442 |
Stock-based compensation | 11,299 | 4,902 | 8,349 |
Accretion of deferred financing fees | 677 | 553 | 427 |
Restructuring charges | 0 | 0 | 11,020 |
Changes in assets and liabilities, net of business acquisitions: | |||
Accounts and other receivables | (53,772) | (18,990) | 54,383 |
Inventories | 31,227 | (8,375) | (35,567) |
Taxes receivable | 11,342 | (10,242) | (707) |
Accounts payable | 25,393 | (1,337) | (20,333) |
Accrued liabilities | 14,654 | 13,892 | (4,561) |
Deferred income and customer advances | (23,630) | 8,456 | (2,860) |
Other assets and liabilities | (9,885) | (2,228) | (1,571) |
Net cash provided by operating activities | 218,849 | 111,847 | 120,385 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | (56,811) | (82,918) | (150,322) |
Acquisition of business | (9,523) | 0 | 0 |
Other investing activities | (1,228) | (1,185) | (2,803) |
Net cash used for investing activities | (67,562) | (84,103) | (153,125) |
Cash flows from financing activities: | |||
Borrowings from line of credit | 176,000 | 364,000 | 419,250 |
Payments of line of credit | (316,000) | (386,000) | (322,250) |
Payment of line of credit facility fees | (2,442) | (425) | 0 |
Principal payments of finance leases | (735) | (710) | (4,839) |
Dividend payments | (3,518) | 0 | 0 |
Purchase of treasury stock | (652) | (1,055) | (62,196) |
Issuance of common stock | 554 | 2 | 17 |
Net cash provided by (used for) financing activities | (146,793) | (24,188) | 29,982 |
Net change in cash and cash equivalents | 4,494 | 3,556 | (2,758) |
Cash and cash equivalents at beginning of year | 10,606 | 7,050 | 9,808 |
Cash and cash equivalents at the end of year | 15,100 | 10,606 | 7,050 |
Supplemental non-cash investing activities: | |||
Capital expenditures included in accounts payable | 11,720 | 6,178 | 21,594 |
Supplemental cash activities: | |||
Cash paid for interest | 4,459 | 7,290 | 5,201 |
Cash paid for income taxes | $ 31,000 | $ 2,005 | $ 6,993 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2018 | 30,555,715 | |||||
Balance at Dec. 31, 2018 | $ 420,338 | $ 306 | $ 234,699 | $ 187,819 | $ (12) | $ (2,474) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 41,347 | 41,347 | ||||
Foreign exchange translation adjustments | (9) | (9) | ||||
Commodity hedges | (673) | (673) | ||||
Pension obligation adjustments | (6,295) | (6,295) | ||||
Other comprehensive income (loss), net of tax | (6,977) | (6,977) | ||||
Issuance of common stock and reclassification of invested equity (in shares) | 868,183 | |||||
Issuance of common stock and reclassification of invested equity | 17 | $ 8 | 9 | |||
Acquisition of treasury stock (1,210,714 shares) | (62,196) | (62,173) | (23) | |||
Stock-based compensation | 8,349 | 8,349 | ||||
Balance (in shares) at Dec. 31, 2019 | 31,423,898 | |||||
Balance at Dec. 31, 2019 | 400,878 | $ 314 | 180,884 | 229,166 | (35) | (9,451) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 46,077 | 46,077 | ||||
Foreign exchange translation adjustments | (49) | |||||
Commodity hedges | (1,028) | |||||
Pension obligation adjustments | (5,604) | |||||
Other comprehensive income (loss), net of tax | (6,681) | (6,681) | ||||
Issuance of common stock and reclassification of invested equity (in shares) | 203,241 | |||||
Issuance of common stock and reclassification of invested equity | 2 | $ 2 | ||||
Acquisition of treasury stock (1,210,714 shares) | (1,055) | (1,054) | (1) | |||
Stock-based compensation | $ 4,902 | 4,902 | ||||
Balance (in shares) at Dec. 31, 2020 | 28,033,227 | 31,627,139 | ||||
Balance at Dec. 31, 2020 | $ 444,123 | $ 316 | 184,732 | 275,243 | (36) | (16,132) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 139,791 | 139,791 | ||||
Foreign exchange translation adjustments | (43) | |||||
Commodity hedges | 1,789 | 1,789 | ||||
Pension obligation adjustments | 7,847 | 7,847 | ||||
Other comprehensive income (loss), net of tax | 9,593 | 9,593 | ||||
Issuance of common stock and reclassification of invested equity (in shares) | 128,291 | |||||
Issuance of common stock and reclassification of invested equity | 554 | $ 2 | 552 | |||
Acquisition of treasury stock (1,210,714 shares) | (652) | (652) | ||||
Stock-based compensation | 11,299 | 11,299 | ||||
Dividends | $ (3,518) | (3,518) | ||||
Balance (in shares) at Dec. 31, 2021 | 28,139,954 | 31,755,430 | ||||
Balance at Dec. 31, 2021 | $ 601,190 | $ 318 | $ 195,931 | $ 411,516 | $ (36) | $ (6,539) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares repurchased (in shares) | 21,564 | ||
Treasury Stock | |||
Number of shares repurchased (in shares) | 21,564 | 84,791 | 2,298,407 |
Organization, Operations and Ba
Organization, Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Operations and Basis of Presentation | Organization, Operations and Basis of Presentation Description of Business AdvanSix Inc. (“AdvanSix”, the “Company”, “we” or “our”) plays a critical role in global supply chains, innovating and delivering essential products for our customers in a wide variety of end markets and applications that touch people’s lives, such as building and construction, fertilizers, plastics, solvents, packaging, paints, coatings, adhesives and electronics. Our reliable and sustainable supply of quality products emerges from the vertically integrated value chain of our three U.S.-based manufacturing facilities. AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, chemical intermediates and plant nutrients, guided by our core values of Safety, Integrity, Accountability and Respect. We evaluated segment reporting in accordance with Accounting Standards Codification Topic (“ASC”) 280. We concluded that AdvanSix is a single operating segment and a single reportable segment based on the operating results available which are evaluated regularly by the chief operating decision maker (“CODM”) to make decisions about resource allocation and performance assessment. AdvanSix operations are managed as one integrated process spread across three manufacturing sites, including centralized supply chain and procurement functions. The production process is dependent upon one key raw material, cumene, as the input to the manufacturing of all finished goods produced for sale through the sales channels and end-markets the Company serves. Production rates and output volumes are managed across all three plants jointly to align with the overall Company operating plan. The CODM makes operational performance assessments and resource allocation decisions on a consolidated basis, inclusive of all of the Company’s products. AdvanSix operates through three integrated U.S.-based manufacturing sites located in Frankford, Pennsylvania, and Hopewell and Chesterfield, Virginia. The Company's headquarters is located in Parsippany, New Jersey. Corporate History On October 1, 2016, Honeywell International Inc. (“Honeywell”) completed the separation of AdvanSix. The separation was completed by Honeywell distributing (the "Distribution") all of the then outstanding shares of common stock of AdvanSix on October 1, 2016 (the “Distribution Date”) through a dividend in kind of AdvanSix common stock, par value $0.01 per share, to holders of Honeywell common stock as of the close of business on the record date of September 16, 2016 who held their shares through the Distribution Date (the “Spin-Off”). COVID-19 In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a global pandemic with numerous countries around the world declaring national emergencies, including the United States. Since early 2020, COVID-19 has continued to spread, with confirmed cases worldwide, and with certain jurisdictions experiencing resurgences, including as a result of variant strains. The spread resulted in authorities implementing numerous measures to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders and business shutdowns. The pandemic and these containment measures have had a substantial impact on businesses around the world and on global, regional and national economies, including disruptions to supply chains, volatility in demand, production and sales across most industries, volatility within global financial markets, inflationary pressures in commodity pricing and an increasingly dynamic workforce environment. The continuously evolving nature of this pandemic and the pace and shape of a full recovery may continue to have an impact on the United States and global economies. The Company’s Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting periods presented. The Company continues to consider the impact of COVID-19 on the estimates and assumptions used for the financial statements. As previously disclosed, the Company experienced a material impact on its second quarter 2020 results of operations associated with lower demand, particularly in nylon, caprolactam and phenol, and a decrease in overall sales volume related to global markets and the economic impact of COVID-19. Starting in the second half of 2020, and through the end of 2021, demand improved to pre-COVID-19 levels with states, regions and countries in various phases of re-opening and continued administration of vaccines for COVID-19. The Company will continue to monitor developments and execute our operational and safety mitigation plans as previously disclosed. As the situation surrounding COVID-19 remains fluid and unpredictable, the Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity. Basis of Presentation Unless the context otherwise requires, references in these Notes to the Consolidated Financial Statements to “we,” “us,” “our,” “AdvanSix” and the “Company” refer to AdvanSix Inc. and its consolidated subsidiaries after giving effect to the Spin-Off. All intercompany transactions have been eliminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Principles – The financial statements and accompanying Notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of AdvanSix’s significant accounting policies. Principles of Consolidation – The Consolidated Financial Statements include the accounts of AdvanSix and all of its subsidiaries in which a controlling financial interest is maintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. Cash and Cash Equivalents – Cash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity to the Company of three months or less. We reduce cash and extinguish liabilities when the creditor receives our payment and we are relieved of our obligation for the liability when checks clear the Company’s bank account. Liabilities to creditors to whom we have issued checks that remain outstanding aggregated $4.5 million at December 31, 2021 and are included in Cash and cash equivalents and Accounts payable in the Consolidated Balance Sheets. Fair Value Measurement – ASC 820, Fair Value Measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Financial Accounting Standards Board's ("FASB") guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability Derivative Financial Instruments – We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. For derivative instruments that are designated and qualify as a net investment hedge, the derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in our cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices, and generally they do not include take-or-pay terms. Instead, each customer agreement, the majority of which have a term of at least one year, is typically determined by monthly or quarterly volume estimates. We may also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized. At December 31, 2021 and 2020, we had no contracts with notional amounts related to forward commodity agreements. Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost. Inventories valued at LIFO amounted to $149.6 million and $180.1 million at December 31, 2021 and 2020. Had such LIFO inventories been valued at current costs, their carrying values would have been approximately $6.0 million and $35.4 million higher at December 31, 2021 and 2020. Property, Plant, Equipment – Property, plant, equipment asset values are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 30 to 50 years for buildings and improvements and 5 to 40 years for machinery and equipment. Our machinery and equipment includes (1) assets used in short production cycles or subject to high corrosion, such as instrumentation, controls and insulation systems with useful lives up to 15 years, (2) standard plant assets, such as boilers and railcars, with useful lives ranging from 15 to 30 years and (3) major process equipment that can be used for long durations with effective preventative maintenance and repair, such as cooling towers, compressors, tanks and turbines with useful lives ranging from 5 to 40 years. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. Repairs and maintenance, including planned major maintenance, are expensed as incurred. Costs which materially add to the value of the asset or prolong its useful life are capitalized and the replaced assets are retired. Long-Lived Assets – The Company evaluates the recoverability of the carrying amount of long-lived assets (including property, plant and equipment and intangible assets with determinable lives) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates events or changes in circumstances based on several factors including operating results, business plans and forecasts, general and industry trends, and economic projections and anticipated cash flows. An impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in the Consolidated Statements of Operations. The Company also evaluates the estimated useful lives of long-lived assets if circumstances warrant and revises such estimates based on current events. Goodwill – The Company had goodwill of $17.6 million and $15.0 million as of December 31, 2021 and 2020, respectively. Goodwill is subject to impairment testing annually as of March 31, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Management first assesses qualitative factors as described in ASC 350 to determine whether it is necessary to perform the quantitative goodwill impairment test. The Company completed its annual goodwill impairment test as of March 31, 2021 and, based on the results of the Company's assessment of qualitative factors, it was determined that it was not necessary to perform the quantitative goodwill impairment test. Revenue Recognition – The Company recognizes revenue upon the transfer of control of goods or services to customers at amounts that reflect the consideration expected to be received. AdvanSix primarily recognizes revenues when title and control of the product transfers from the Company to the customer. Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations. Sales of our products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement. These agreements typically contain formula-based pass-through pricing tied to key feedstock materials and volume ranges, but often do not specify the goods, including the quantities thereof, to be transferred. Certain master services agreements (including with respect to our largest customer) may contain minimum purchase volumes which can be satisfied by the customer on a periodic basis by choosing from various products offered by the Company. In these cases, a performance obligation is created when a customer submits a purchase order for a specific product at a specified price, typically providing for delivery within the next 60 days. Management considers the performance obligation with respect to such purchase order satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer. Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer. Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product returns. The Company records variable consideration as an adjustment to the sale transaction price. Since variable consideration is generally settled within one year, the time value of money is not significant. The Company applies the practical expedient in Topic 606 and does not include disclosures regarding remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. Deferred Income and Customer Advances – AdvanSix typically has an annual pre-buy program for ammonium sulfate that is classified as deferred income and customer advances in the Consolidated Balance Sheets. Customers pay cash in advance to reserve capacity for ammonium sulfate to guarantee product availability during peak planting season. The Company recognizes a customer advance when cash is received for the advanced buy. Revenue is then recognized and the customer advance is relieved upon title transfer of ammonium sulfate. Trade Receivables and Allowance for Doubtful Accounts – Trade accounts receivables are recorded at the invoiced amount as a result of transactions with customers. AdvanSix maintains allowances for doubtful accounts for estimated losses based on a customer’s inability to make required payments. AdvanSix estimates anticipated losses from doubtful accounts based on days past due, as measured from the contractual due date and historical collection history and incorporates changes in economic conditions that may not be reflected in historical trends such as customers in bankruptcy, liquidation or reorganization. Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, success of outside collection agencies activity, solvency of customer and any bankruptcy proceedings. The Company adopted ASU 2016-13 effective January 1, 2020, using a modified retrospective approach, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. Research and Development – AdvanSix conducts research and development (“R&D”) activities, which consist primarily of the development of new products and product applications consisting primarily of labor costs and depreciation and maintenance costs. R&D costs are charged to expense as incurred. Such costs are included in costs of goods sold and were $14.0 million, $11.8 million, and $13.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Debt Issuance Costs – Debt issuance costs are capitalized as a component of Other assets and are amortized through interest expense over the related term. Stock-Based Compensation Plans – The principal awards issued under our stock-based compensation plans, which are described in "Note 16. Stock-Based Compensation Plans" to the Consolidated Financial Statements included in Item 8 of this Form 10-K, are non-qualified stock options, performance stock units and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest, including the impact of the Company's anticipated performance against certain metrics for performance stock units, is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses. Estimates of future performance are utilized to determine the underlying expense for shares expected to vest. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. Dividend Equivalents – If a dividend is authorized by the Board for stockholders of common stock, holders of unvested RSUs and unvested PSUs will have their accounts credited with dividend equivalents in the form and in an amount equal to the dividend that the holder would have received had the shares underlying the RSUs and PSUs been distributed at the time that such dividend was paid. Dividend equivalents are subject to the same vesting, forfeiture, performance and payment restrictions as the respective equity award for which it is attributable. Since the dividend equivalents are forfeitable, there is no impact on the basic earnings per share calculation. Pension Benefits – We have a defined benefit plan covering certain employees primarily in the U.S. The benefits are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation. Foreign Currency Translation – Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. Income Taxes – We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in our income tax returns are recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021 and 2020, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. Leases – The Company enters into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. Operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases, which are reported as Operating lease right-of-use assets, and Operating lease liabilities – short-term and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included as a component of Property, plant and equipment – net, Accounts payable and Other liabilities in our Consolidated Balance Sheets. The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019 and has elected the following practical expedients available in Topic 842: • the package of three expedients which allows the Company to not re-assess (i) whether any expired or existing contracts are, or contain, leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases; • the short-term lease practical expedient, which allows the Company to exclude leases with an initial term of 12 months or less ("short-term leases") from recognition in the unaudited Consolidated Balance Sheets; • the bifurcation of lease and non-lease components practical expedients, which did not require the Company to bifurcate lease and non-lease components for real estate leases; and • the land easements practical expedient, which allows the Company to carry forward the accounting treatment for land easements on existing agreements. Earnings Per Share – Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Treasury Stock – The Company has elected to account for treasury stock purchased under the constructive retirement method. For shares repurchased in excess of par, the company will allocate the excess value to additional paid-in capital. Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Reclassifications – Certain prior period amounts have been reclassified for consistency with the current period presentation. All reclassified amounts have been immaterial. Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. On August 5, 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. Therefore, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. This will result in more convertible debt instruments being accounted for as a single liability measured at its amortized cost and more convertible preferred stock being accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The ASU also amends the derivative scope exception guidance for contracts in an entity’s own equity. The amendments remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception. The guidance is effective for public business entities for fiscal years, and interim terms within those fiscal years, beginning after December 15, 2021. Early adoption of the amendments in this update is permitted, but no earlier than fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-06 effective January 1, 2022, which did not have any impact on the Company's consolidated financial position or results of operations upon adoption. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments of ASU No. 2020-04 are effective for companies as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The Company adopted ASU 2020-04 effective September 30, 2021, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. On December 18, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes the exception to the general principles in FASB Accounting Standards Codification ("ASC") 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period. The Company adopted ASU 2019-12 effective January 1, 2021, which did not have a material impact on the Company’s consolidated financial position or results of operations upon adoption. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We serve approximately 400 customers annually in approximately 50 countries and across a wide variety of industries. For 2021, 2020 and 2019, the Company's ten largest customers accounted for approximately 40%, 43% and 47% of total sales, respectively. We typically sell to customers under master services agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have an average customer relationship of approximately 20 years. Our largest customer is Shaw Industries Group Inc. ("Shaw"), a significant consumer of caprolactam and Nylon 6 resin. We sell caprolactam and Nylon 6 resin to Shaw under a long-term agreement. Sales to Shaw were 12% of our total sales for the year ended December 31, 2021, 14% for the year ended December 31, 2020 and 22% for the year ended December 31, 2019. The Company’s revenue by product line, and related approximate percentage of total sales for 2021, 2020 and 2019 were as follows: Years Ended December 31, 2021 2020 2019 Nylon $ 422,897 25% $ 284,701 24% $ 351,169 27% Caprolactam 316,132 19% 216,268 19% 278,634 22% Chemical Intermediates 544,504 32% 369,130 32% 368,361 28% Ammonium Sulfate 401,092 24% 287,818 25% 299,229 23% $ 1,684,625 100% $ 1,157,917 100% $ 1,297,393 100% The Company’s revenues by geographic area, and related approximate percentage of total sales for 2021, 2020 and 2019 were as follows: Years Ended December 31, 2021 2020 2019 United States $ 1,382,501 82 % $ 890,776 77 % $ 1,057,498 82 % International 302,124 18 % 267,141 23 % 239,895 18 % Total $ 1,684,625 100 % $ 1,157,917 100 % $ 1,297,393 100 % Deferred Income and Customer Advances The Company defers revenues when cash payments are received in advance of our performance. Customer advances relate primarily to sales from the ammonium sulfate business. Below is a roll-forward of Deferred income and customer advances for the twelve months ended December 31, 2021: Deferred Income and Customer Advances 2021 Opening balance January 1, 2021 $ 26,379 Additional cash advances 4,328 Less amounts recognized in revenues (27,958) Ending balance December 31, 2021 $ 2,749 The Company expects to recognize as revenue the December 31, 2021 ending balance of Deferred income and customer advances within one year or less. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Years Ended December 31, 2021 2020 2019 Income before taxes U.S. $ 184,963 $ 54,902 $ 53,231 Non-U.S. 153 131 117 $ 185,116 $ 55,033 $ 53,348 Income taxes Income tax expense (benefit) consists of: Years Ended December 31, 2021 2020 2019 Current Provision: Federal $ 34,079 $ (10,289) $ 2,519 State 6,504 1,605 1,007 Non-U.S. 35 20 24 Total current provision $ 40,618 $ (8,664) $ 3,550 Deferred Provision: Federal $ 2,256 $ 17,853 $ 7,536 State 2,445 (240) 907 Non-U.S. 6 7 8 Total deferred provision 4,707 17,620 8,451 Total income tax expense (benefit) $ 45,325 $ 8,956 $ 12,001 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 3.0 % 2.0 % 2.8 % U.S. state income tax rate change 0.8 % — % — % Energy credit — % (6.2) % — % Forfeitures, cancellations and shortfalls of equity compensation — % 0.3 % — % Executive compensation limitations 1.0 % 0.9 % 1.5 % Research and other tax credits (0.3) % (2.6) % (3.0) % Foreign derived intangible income deduction (0.9) % — % — % Other, net (0.1) % 0.9 % 0.2 % 24.5 % 16.3 % 22.5 % The Company's effective income tax rate for 2021 was higher compared to the U.S. Federal statutory rate of 21% due primarily to state taxes and executive compensation deduction limitations partially offset by research tax credits and the foreign-derived intangible income deduction. Under a provision included in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, the Company filed a Federal net operating loss (NOL) carryback claim in July 2020 which generated a refund of previously paid taxes in the amount of $12.3 million. The refund was received in the first quarter of 2021. Although the carryback claim generated a $12.3 million refund, it also resulted in the loss of prior year permanent tax benefits, the impact of which, is reflected in the above table under "Other, net" above. On March 11, 2021, the American Rescue Plan Act ("ARPA") was signed into law. The ARPA is aimed at addressing the continuing economic and health impacts of the COVID-19 pandemic. This legislative relief, along with the previous governmental relief packages, provide for numerous changes to current tax law. The ARPA did not have a material impact on our financial statements for the year ended December 31, 2021. The Company's effective income tax rate for 2020 was lower compared to the U.S. Federal statutory rate of 21% due primarily to the impact of research tax credits as well as an energy tax credit described in more detail below. This was partially offset by state taxes, executive compensation deduction limitations and a shortfall on the vesting of equity compensation. The Company's effective income tax rate for 2019 was slightly higher compared to the U.S. Federal statutory rate of 21% due primarily to state taxes and executive compensation deduction limitations, partially offset by the vesting of restricted stock units and research tax credits. As of December 31, 2021, 2020 and 2019, there were no unrecognized tax benefits recorded by the Company (see below for further information on unrecognized tax benefits). Although there are no unrecognized income tax benefits, when applicable, the Company’s policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision. The Company uses the flow-through method to account for investment tax credits, including certain energy credits. Under this method, investment tax credits are recognized as a reduction to income tax expense in the year they are earned. The Company is subject to taxation in the United States and various states and foreign jurisdictions. The Company is currently under a federal tax examination for the tax years ended December 31, 2017 through December 31, 2019. There are no material examinations by state tax authorities; however, tax years 2017 through 2021 generally remain open under the statute of limitations and are subject to examination by the tax authorities. We are subject to income taxes in the United States and to a lesser extent several foreign jurisdictions. Changes to income tax laws and regulations, or the interpretation of such laws, in any of the jurisdictions in which we operate could impact our effective tax rate and cash flows from operating activities. The current US administration has released various draft tax reform proposals, as such, we continue to monitor these legislative proposals to evaluate the impact on our business. Deferred tax assets (liabilities) The tax effects of temporary differences which give rise to future income tax benefits and expenses are as follows: December 31, 2021 2020 Deferred tax assets: Net Operating Loss $ 51 $ 107 Accruals and Reserves 7,040 4,966 Inventory 5,934 4,439 Pension Obligation 2,500 8,028 Operating lease liability 32,902 27,358 Equity Compensation 2,584 1,793 Other 421 900 Total gross deferred tax assets 51,432 47,591 Less: Valuation Allowance — — Total deferred tax assets $ 51,432 $ 47,591 Deferred tax liabilities: Property, plant & equipment $ (146,717) $ (140,735) Intangibles (3,721) (3,744) Operating lease asset (32,782) (27,262) Other (1,542) (1,417) Total deferred tax liabilities (184,762) (173,158) Net deferred taxes $ (133,330) $ (125,567) The net deferred taxes are primarily related to U.S. operations. The federal net operating loss ("NOL") generated as of December 31, 2019 was carried back to previous tax periods under the CARES Act and the amount was fully utilized in the carryback claim. As of 2021, we recognized a state NOL carryforward in Illinois for $0.7 million which begins to expire in 2028. The Company fully utilized its foreign NOL as of December 31, 2021. The Company has no material federal or state tax credit carryforwards remaining as of December 31, 2021. We believe that the state NOL carryforward, tax credit carryforwards and other deferred tax assets are more likely than not to be realized and we have not recorded a valuation allowance against the deferred tax assets. The Company's accounting policy is to record the tax impacts of Global intangible low-taxed income as a period cost. As of December 31, 2021 and 2020, there were no material undistributed earnings of the Company's non-U.S. subsidiaries and, as such, we have not provided a deferred tax liability for undistributed earnings. Unrecognized tax benefits The following table sets forth the change in the Company's unrecognized tax benefits (UTBs) for year ended December 31, 2021 and 2020. There are no unrecognized tax benefits in 2019. December 31, 2021 2020 Unrecognized tax benefits - January 1 $ — $ — Gross amounts of decreases in UTBs for tax positions related to the prior year — (3,804) Gross amounts of increases in UTBs for tax positions related to the prior year — 3,804 Gross amounts of increases and decreases in UTBs for tax positions taken during the current period — — Unrecognized tax benefits - December 31 $ — $ — At the end of fiscal 2019, it was unclear whether we qualified for a certain energy tax credit. After performing a detailed review during the second quarter of 2020, we concluded it was appropriate to recognize a tax benefit (credit) of $3.8 million. However, based on information available at the time, we also recorded a corresponding unrecognized tax benefit reserve for the same amount. A portion of this credit which was claimed on the 2019 U.S. federal income tax return of approximately $2.2 million was utilized in the carryback claim under the CARES Act and the remaining was utilized in 2020. In the fourth quarter of 2020, based on a thorough evaluation of new information and applicable technical guidance, the Company reassessed its position which resulted in the reversal of the unrecognized tax benefit as reflected in the above table. As such, the full amount of the energy credit is reflected in the effective income tax rate reconciliation table above for the year ended December 31, 2020. |
Accounts and Other Receivables
Accounts and Other Receivables – Net | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts and Other Receivables – Net | Accounts and Other Receivables – Net December 31, 2021 2020 Accounts receivables $ 175,584 $ 122,357 Other 4,051 2,668 Total accounts and other receivables 179,635 125,025 Less – allowance for doubtful accounts (1,495) (1,471) Total accounts and other receivables – net $ 178,140 $ 123,554 The roll-forward of allowance for doubtful accounts are summarized in the table below: Balance at Beginning of Year Charged to Costs Charged to Other Accounts (1) Bad Debt Write-Offs (1) Balance at End of Year Year ended December 31, 2021 $ 1,471 $ — $ — $ 24 $ 1,495 Year ended December 31, 2020 2,323 33 (559) (326) 1,471 Year ended December 31, 2019 7,467 274 (396) (5,022) 2,323 (1) No Impact to Statement of Operations |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories December 31, 2021 2020 Raw materials $ 56,961 $ 88,612 Work in progress 43,526 54,291 Finished goods 27,961 45,345 Spares and other 27,150 27,198 155,598 215,446 Reduction to LIFO cost basis (6,028) (35,361) Total inventories $ 149,570 $ 180,085 |
Property, Plant, Equipment _ Ne
Property, Plant, Equipment – Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, Equipment – Net | Property, Plant, Equipment – Net December 31, 2021 2020 Land and improvements $ 6,566 $ 6,396 Machinery and equipment 1,476,896 1,430,192 Buildings and improvements 209,604 201,728 Construction in progress 44,414 47,000 1,737,480 1,685,316 Less – accumulated depreciation (969,516) (919,847) Total property, plant, equipment – net $ 767,964 $ 765,469 Capitalized interest was $2,565, $5,580 and $6,359 for the years ended December 31, 2021, 2020 and 2019, respectively. Depreciation expense was $61,405, $57,240 and $53,424 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases, Operating [Abstract] | |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability. The components of lease expense were as follows: Years Ended December 31, 2021 2020 Finance lease cost: Amortization of right-of-use asset $ 706 $ 697 Interest on lease liabilities 33 48 Total finance lease cost 739 745 Operating lease cost 40,994 44,513 Short-term lease cost 10,632 7,832 Total lease cost $ 52,365 $ 53,090 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40,888 $ 44,445 Operating cash flows from finance leases 31 51 Financing cash flows from finance leases 735 710 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,132 16,082 Finance leases 1,352 16 Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2021 2020 Operating Leases Operating lease right-of-use assets $ 136,207 $ 114,484 Operating lease liabilities – short term 36,127 29,279 Operating lease liabilities – long term 100,580 85,605 Total operating lease liabilities $ 136,707 $ 114,884 Finance Leases Property, plant and equipment – gross $ 2,663 $ 1,978 Accumulated depreciation (1,274) (1,257) Property, plant and equipment – net $ 1,389 $ 721 Accounts payable 600 509 Other liabilities 741 215 Total finance lease liabilities $ 1,341 $ 724 Weighted Average Remaining Lease Term Operating leases 8.2 years 9.8 years Finance leases 2.8 years 1.5 years Weighted Average Discount Rate Operating leases 5.32 % 6.07 % Finance leases 2.75 % 4.65 % Maturities of lease liabilities Year Ending December 31, Operating Finance 2022 $ 42,414 $ 628 2023 37,776 435 2024 27,043 205 2025 18,397 76 2026 8,974 47 Thereafter 44,181 — Total lease payments 178,785 1,391 Less imputed interest (42,078) (50) Total $ 136,707 $ 1,341 |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability. The components of lease expense were as follows: Years Ended December 31, 2021 2020 Finance lease cost: Amortization of right-of-use asset $ 706 $ 697 Interest on lease liabilities 33 48 Total finance lease cost 739 745 Operating lease cost 40,994 44,513 Short-term lease cost 10,632 7,832 Total lease cost $ 52,365 $ 53,090 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40,888 $ 44,445 Operating cash flows from finance leases 31 51 Financing cash flows from finance leases 735 710 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,132 16,082 Finance leases 1,352 16 Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2021 2020 Operating Leases Operating lease right-of-use assets $ 136,207 $ 114,484 Operating lease liabilities – short term 36,127 29,279 Operating lease liabilities – long term 100,580 85,605 Total operating lease liabilities $ 136,707 $ 114,884 Finance Leases Property, plant and equipment – gross $ 2,663 $ 1,978 Accumulated depreciation (1,274) (1,257) Property, plant and equipment – net $ 1,389 $ 721 Accounts payable 600 509 Other liabilities 741 215 Total finance lease liabilities $ 1,341 $ 724 Weighted Average Remaining Lease Term Operating leases 8.2 years 9.8 years Finance leases 2.8 years 1.5 years Weighted Average Discount Rate Operating leases 5.32 % 6.07 % Finance leases 2.75 % 4.65 % Maturities of lease liabilities Year Ending December 31, Operating Finance 2022 $ 42,414 $ 628 2023 37,776 435 2024 27,043 205 2025 18,397 76 2026 8,974 47 Thereafter 44,181 — Total lease payments 178,785 1,391 Less imputed interest (42,078) (50) Total $ 136,707 $ 1,341 |
Long-term Debt and Credit Agree
Long-term Debt and Credit Agreement | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Credit Agreement | Long-term Debt and Credit Agreement The Company’s debt at December 31, 2021 consisted of the following: Total term loan outstanding $ — Amounts outstanding under the Revolving Credit Facility 135,000 Total outstanding indebtedness 135,000 Less: amounts expected to be repaid within one year — Total long-term debt due after one year $ 135,000 At December 31, 2021, the Company assessed the Revolving Credit Facility (defined below) and determined that such amounts approximated fair value. The fair values of the debt are based on quoted inactive market prices and are therefore classified as Level 2 within the valuation hierarchy. Scheduled principal repayments under the Long-term Debt and Credit Agreement subsequent to December 31, 2021 are as follows: 2022 $ — 2023 — 2024 — 2025 — 2026 135,000 Thereafter — Total $ 135,000 Credit Agreement On September 30, 2016, the Company as the borrower, entered into a Credit Agreement with Bank of America, as administrative agent (the "Original Credit Agreement"), which was amended on February 21, 2018 pursuant to Amendment No. 1 to the Original Credit Agreement (the "First Amended and Restated Credit Agreement"), and further amended on February 19, 2020 pursuant to, Amendment No. 2 to the First Amended and Restated Credit Agreement (after giving effect to the Second Amendment, the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement had a five-year term with a scheduled maturity date of February 21, 2023. The Second Amended and Restated Credit Agreement required the Company to maintain a Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement) of (i) 3.50 to 1.00 or less for the fiscal quarter ending March 31, 2020, (ii) 4.50 to 1.00 or less for the fiscal quarter ending June 30, 2020, (iii) 4.25 to 1.00 or less for the fiscal quarter ending September 30, 2020, (iv) 3.50 to 1.00 or less for the fiscal quarter ending December 31, 2020, (v) 3.25 to 1.00 or less for the fiscal quarter ending March 31, 2021 through and including the fiscal quarter ending December 31, 2021, and (vi) 3.00 to 1.00 or less for the fiscal quarter ending March 31, 2022 and each fiscal quarter thereafter (subject to the Company’s option to elect a Consolidated Leverage Ratio increase in connection with certain acquisitions). The Consolidated Interest Coverage Ratio financial covenant required the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement) of not less than 3.00 to 1.00. If the Company did not comply with the covenants in the Second Amended and Restated Credit Agreement, the lenders could, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility. Borrowings under the Second Amended and Restated Credit Agreement bore interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.50% to 2.00% or the sum of a Eurodollar rate plus a margin ranging from 1.50% to 3.00%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement). The Company was also required to pay a commitment fee in respect of unused commitments under the credit facility, if any, at a rate ranging from 0.20% to 0.50% per annum depending on the Company’s Consolidated Leverage Ratio. In addition, the Second Amendment also amended certain administrative provisions associated with the LIBOR Successor Rate (as defined in the Second Amended and Restated Credit Agreement). The obligations under the Second Amended and Restated Credit Agreement were secured by a pledge of assets and liens on substantially all of the assets of AdvanSix. The Second Amended and Restated Credit Agreement contained customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets, as well as financial covenants that require the Company to maintain interest coverage and leverage ratios at levels specified in the Second Amended and Restated Credit Agreement. These covenants placed limits on how we conduct our business, and in the event of certain defaults, our repayment obligations could be accelerated. On October 27, 2021, the Company completed a refinancing of its existing senior secured revolving credit facility under the Second Amended and Restated Credit Agreement by entering into a new Credit Agreement (the “Credit Agreement”), among the Company, the lenders party thereto, the swing line lenders party thereto, the letter of credit issuers party thereto and Truist Bank, as administrative agent, which provides for a new senior secured revolving credit facility in an aggregate principal amount of $500 million (the “Revolving Credit Facility”). The Revolving Credit Facility has a scheduled maturity date of October 27, 2026. The Credit Agreement permits the Company to utilize up to $40 million of the Revolving Credit Facility for the issuance of letters of credit and up to $40 million for swing line loans. The Company has the option to establish a new class of term loans and/or increase the amount of the Revolving Credit Facility in an aggregate principal amount for all such incremental term loans and increases of the Revolving Credit Facility of up to the sum of (x) $175 million plus (y) an amount such that the Company’s Consolidated First Lien Secured Leverage Ratio (as defined in the Credit Agreement) would not be greater than 2.75 to 1.00, in each case, to the extent that any one or more lenders, whether or not currently party to the Credit Agreement, commits to be a lender for such amount or any portion thereof. Borrowings under the Credit Agreement bear interest at a rate equal to either the sum of a base rate plus a margin ranging from 0.25% to 1.25% or the sum of a Eurodollar rate plus a margin ranging from 1.25% to 2.25%, with either such margin varying according to the Company’s Consolidated Leverage Ratio (as defined in the Credit Agreement). The Company is also required to pay a commitment fee in respect of unused commitments under the Revolving Credit Facility, if any, at a rate ranging from 0.15% to 0.35% per annum depending on the Company’s Consolidated Leverage Ratio. As of October 27, 2021, the applicable margin under the Credit Agreement was 0.375% for base rate loans and 1.375% for Eurodollar loans and the applicable commitment fee rate was 0.175% per annum. Substantially all tangible and intangible assets of the Company and its domestic subsidiaries are pledged as collateral to secure the obligations under the Credit Agreement. As of October 27, 2021, the Company borrowed $150 million under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility will be subject to customary borrowing conditions. The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, pay cash dividends, incur debt or liens, redeem or repurchase stock of the Company, enter into transactions with affiliates, make investments, make capital expenditures, merge or consolidate with others or dispose of assets. The Credit Agreement also contains financial covenants that require the Company to maintain a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of not less than 3.00 to 1.00 and to maintain a Consolidated Leverage Ratio of (i) 4.00 to 1.00 or less for the fiscal quarter ending December 31, 2021, through and including the fiscal quarter ending September 30, 2023 and (ii) 3.75 to 1.00 or less for each fiscal quarter thereafter (subject to the Company’s option to elect a consolidated leverage ratio increase in connection with certain acquisitions). If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility. We were in compliance with all of our covenants at December 31, 2021 and through the date of the filing of this Annual Report on Form 10-K. |
Postretirement Benefit Obligati
Postretirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits Obligations | Postretirement Benefit Obligations Defined Contribution Benefit Plan On January 1, 2017, the Company established a defined contribution plan which covers all eligible U.S. employees. Our plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis to save for their future retirement needs. The Company matches 50% of the first 8% of contributions for employees covered by a collective bargaining agreement and matches 75% of the first 8% of the employee’s contribution election for all other employees. The plan’s matching contributions vest after three years of service with the Company. The Company may also provide an additional discretionary retirement savings contribution which is at the sole discretion of the Company. The Company made contributions to the defined contribution plan of $5,874, $6,142 and $5,944 for the years ended December 31, 2021, 2020 and 2019, respectively. Defined Benefit Pension Plan Prior to the Spin-Off certain of our employees participated in a defined benefit pension plan (the “Shared Plan”) sponsored by Honeywell which includes participants of other Honeywell subsidiaries and operations. We accounted for our participation in the Shared Plan as a multi-employer benefit plan. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plan. The related pension expense was allocated based on annual service cost of active participants and reported within Costs of goods sold and Selling, general and administrative expenses in the Statements of Operations. As of the date of separation from Honeywell, these employees’ entitlement to benefits in Honeywell’s plans was frozen and they will accrue no further benefits in Honeywell’s plans. Honeywell retained the liability for benefits payable to eligible employees, which are based on age, years of service and average pay upon retirement. Upon consummation of the Spin-Off, AdvanSix employees who were participants in a Honeywell defined benefit pension plan became participants in the AdvanSix defined benefit pension plan (“AdvanSix Retirement Earnings Plan”). The AdvanSix Retirement Earnings Plan has the same benefit formula as the Honeywell defined benefit pension plan. Moreover, vesting service, benefit accrual service and compensation credited under the Honeywell defined benefit pension plan apply to the determination of pension benefits under the AdvanSix Retirement Earnings Plan. Benefits earned under the AdvanSix Retirement Earnings Plan shall be reduced by the value of benefits accrued under the Honeywell plans. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the AdvanSix Retirement Earnings Plan. Change in benefit obligation: 2021 2020 2019 Benefit obligation at January 1, $ 89,137 $ 69,281 $ 48,450 Service Cost 7,817 8,021 6,855 Interest Cost 2,071 2,175 2,084 Actuarial losses (gains) (6,342) 10,507 12,364 Benefits Paid (1,294) (847) (472) Benefit obligation at December 31, $ 91,389 $ 89,137 $ 69,281 Change in plan assets: Fair value of plan assets at January 1, $ 48,444 $ 35,979 $ 26,789 Actual return on plan assets 6,572 5,212 $ 5,462 Benefits paid (1,294) (847) (472) Company Contributions 17,530 8,100 4,200 Fair value of plan assets at December 31, 71,252 48,444 35,979 Under-Funded status of plan $ 20,137 $ 40,693 $ 33,302 Amounts recognized in Balance Sheet consists of: Accrued pension liabilities-current (1) $ 1,894 $ 1,525 $ 892 Accrued pension liabilities-noncurrent (2) 18,243 39,168 32,410 Total pension liabilities recognized $ 20,137 $ 40,693 $ 33,302 (1) Included in accrued liabilities on Balance Sheet (2) Included in postretirement benefit obligations on Balance Sheet Pension amount recognized in accumulated other comprehensive loss (income) associated with the Company's pension plan are as follows for: Years Ended December 31, 2021 2020 2019 Transition obligation $ — $ — $ — Prior service cost — — — Net actuarial (gain) loss 1,071 11,405 4,012 Pension amounts recognized in other comprehensive loss (income) $ 1,071 $ 11,405 $ 4,012 The components of net periodic benefit cost and other amounts recognized in other comprehensive income for our pension plan include the following components: Years Ended December 31, 2021 2020 2019 Net periodic pension cost (benefit) Service cost $ 7,817 $ 8,021 $ 6,855 Interest cost 2,071 2,175 2,084 Expected return on plan assets (2,924) (2,098) (1,336) Recognition of actuarial losses 345 — — Net periodic Pension Cost 7,309 8,098 7,603 Other changes in benefits obligations recognized in other comprehensive loss (income) Actuarial losses (gains) (10,335) 7,393 8,238 Total recognized in other comprehensive income (10,335) 7,393 8,238 Total net periodic pension cost (benefit) recognized in Other comprehensive income $ (3,026) $ 15,491 $ 15,841 The estimated actuarial loss (gain) that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2021 and 2020 was nil. Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows: Key actuarial assumptions used to determine benefit obligations at December 31, 2021 2020 2019 Effective discount rate for benefit obligation 3.1% 2.9% 3.5% Expected annual rate of compensation increase 2.4% 2.4% 2.4% Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, 2021 2020 2019 Effective discount rate for service cost 2.9% 3.5% 4.6% Effective discount rate for interest cost 2.3% 3.2% 4.3% Expected long-term rate of return 6.8% 6.8% 7.0% Expected annual rate of compensation increase 2.4% 2.4% 2.8% The discount rate for our pension plan reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31 of a given year. To determine discount rates for our pension plan, we use a modeling process that involves matching the expected cash outflows of our benefit plan to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The long-term expected rate of return on funded assets is developed by using forward-looking long-term return assumptions for each asset class. Management incorporates the expected future investment returns on current and planned asset allocations using information from external investment consultants as well as management judgment. A single rate is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The accumulated benefit obligation for our pension plan was $79.6 million, $73.2 million and $54.4 million as of December 31, 2021, 2020 and 2019, respectively. Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid during the following years: 2022 $ 1,894 2023 2,376 2024 2,874 2025 3,386 2026 3,914 Thereafter 25,916 Our general funding policy for our pension plan is to contribute amounts at least sufficient to satisfy regulatory funding standards. The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows: Years Ended December 31, 2021 2020 2019 1st Quarter $ 1,200 $ 1,700 $ — 2nd Quarter 3,620 — 500 3rd Quarter 12,710 — 3,700 4th Quarter — 6,400 — Total $ 17,530 $ 8,100 $ 4,200 The Company plans to make pension plan contributions during 2022 sufficient to satisfy pension funding requirements of $10.0 million to $15.0 million as well as additional contributions in future years sufficient to satisfy pension funding requirements in those periods. The pension plan assets are invested through a master trust fund. The strategic asset allocation for the trust fund is selected by the Company's Investment Committee reflecting the results of comprehensive asset and liability modeling. The Investment Committee establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. The target asset allocation percent for the Company's pension plan assets is summarized as follows: Years Ended December 31, 2021 2020 Cash and cash equivalents 2% 2% US and non-US equity securities 65% 65% Fixed income / real estate / other securities 33% 33% Total Pension Assets 100% 100% Fixed income and other securities include investment grade securities covering the Treasury, agency, asset-backed, mortgage-backed and credit sectors of the U.S. Bond Market, as well as listed real estate companies and real estate investment trusts located in both developed and emerging markets. Fair Value at December 31, Fair Value Measurements 2021 2020 2019 Investments valued using NAV per share Emerging Markets Region Equities $ 4,249 $ 3,199 $ 2,264 International Region Equities 13,303 9,274 6,755 United States Equities 34,273 20,528 15,377 United States Bonds 17,357 12,506 9,477 Real Estate 599 2,312 1,767 Cash Fund 1,471 625 339 Total Pension Plan Assets at Fair Value $ 71,252 $ 48,444 $ 35,979 The pension plan assets are invested in collective investment trust funds as shown above. These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsFinancial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. In July 2019, the Company entered into an interest rate swap transaction related to its credit agreement. The fair value of the interest rate swaps at December 31, 2021, 2020 and 2019 was a loss of approximately $0.7 million, $3.1 million and $1.7 million, respectively, and is considered a Level 2 liability. The pension plan assets are invested in collective investment trust funds. These investments are measured at fair value using the net asset value per share practical expedient. Investments valued using the net asset value method (NAV) (or its equivalent) practical expedient are excluded from the fair value hierarchy disclosure. The Company’s Consolidated Balance Sheets also include Cash and cash equivalents, Accounts receivable and Accounts payable all of which are recorded at amounts which approximate fair value. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Instruments | Derivative and Hedging Instruments The specific credit and market, commodity price and interest rate risks to which the Company is exposed in connection with its ongoing business operations are described below. This discussion includes an explanation of the hedging instrument and interest rate swap agreements, used to manage the Company’s interest rate risk associated with a fixed and floating-rate borrowing. For cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in Other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. Credit and Market Risk – Financial instruments, including derivatives, expose the Company to counterparty credit risk for non-performance and to market risk related to changes in commodity prices, interest rates and foreign currency exchange rates. The Company manages its exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. The Company’s counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. The Company monitors the impact of market risk on the fair value and cash flows of its derivative and other financial instruments considering reasonably possible changes in commodity prices, interest rates and foreign currency exchange rates and restricts the use of derivative financial instruments to hedging activities. The Company continually monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. The Company did not have any customers with significant concentrations of trade accounts receivable – net at December 31, 2021 and December 31, 2020, respectively. Allowance for doubtful accounts is calculated based upon the Company's estimate of expected credit losses over the life of exposure based upon both historical information as well as future expected losses. Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in the cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices and generally do not include take-or-pay terms. We may also enter into forward commodity contracts with third-parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings, in the same category as the items being hedged, when the hedged transaction is recognized. At December 31, 2021 and 2020, we had zero contracts with notional amounts related to forward commodity agreements. Interest Rate Risk Management – As of December 31, 2021, the company had one interest rate swap agreement outstanding for a total notional amount of $50 million to exchange floating for fixed rate interest payments for our LIBOR-based borrowings. The interest rate swap had a fair value of zero at inception and was effective July 31, 2019 with a maturity date of February 21, 2023. The interest rate swap has been designated as a cash flow hedge and converts the Company's interest rate payments on the first $50 million of variable-rate, 1-month LIBOR-based debt to a fixed interest rate. As a result of this interest rate swap, interest payments on approximately 37% of our borrowings, as of December 31, 2021, have been swapped from floating rate to fixed rate for the life of the swap, without an exchange of the underlying principal amount. Liability Derivatives 2021 2020 2019 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accrued liabilities and Other liabilities $ (708) Accrued liabilities and Other liabilities $ (3,063) Accrued liabilities and Other liabilities $ (1,718) Total Derivatives $ (708) $ (3,063) $ (1,718) The following table summarizes adjustments related to cash flow hedge included in “Cash flow hedges”, in the Consolidated Statements of Comprehensive Income: December 31, 2021 Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2020 $ (3,063) Fair value adjustment 2,355 Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2021 $ (708) At December 31, 2021, the Company expects to reclassify approximately $0.6 million of net losses on derivative instruments from Accumulated other comprehensive income ("AOCI") to earnings during the next 12 months due to the payment of variable interest associated with the floating rate debt with the remainder recognized in future periods through the expiration date. The following table summarizes the reclassification of net losses on derivative instruments from AOCI into earnings: Amount of Loss Recognized in Earnings Twelve Months Ended December 31, 2021 2020 Derivatives: Interest Rate Contracts $ 1,836 $ 2,240 Total Derivatives 1,836 2,240 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is subject to a number of lawsuits, investigations and disputes, some of which involve substantial amounts claimed, arising out of the conduct of the Company or other third-parties in the normal and ordinary course of business. A liability is recognized for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on an analysis of each matter with the assistance of legal counsel and, if applicable, other experts. Given the uncertainty inherent in such lawsuits, investigations and disputes, the Company does not believe it is possible to develop estimates of reasonably possible loss in excess of current accruals for these matters. Considering the Company’s past experience and existing accruals, the Company does not expect the outcome of these matters, either individually or in the aggregate, to have a material adverse effect on the Company’s Consolidated Balance Sheets, results of operations or cash flows. Potential liabilities are subject to change due to new developments, changes in settlement strategy or the impact of evidentiary requirements, which could cause the Company to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on the Company’s consolidated results of operations, balance sheet and/or operating cash flows in the periods recognized or paid. We assumed from Honeywell all health, safety and environmental (“HSE”) liabilities and compliance obligations related to the past and future operations of our current business, as well as all HSE liabilities associated with our three current manufacturing locations and the other locations used in our current operations, including any cleanup or other liabilities related to any contamination that may have occurred at such locations in the past. Honeywell retained all HSE liabilities related to former business locations or the operation of our former businesses. Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to be material for 2022. Unconditional Purchase Obligations In the normal course of business, the Company makes commitments to purchase goods with various vendors in the normal course of business which are consistent with our expected requirements and primarily relate to cumene, oleum, sulfur and natural gas as well as a long-term agreement for loading, unloading and the handling of a portion of our ammonium sulfate export volumes. Future minimum payments for these unconditional purchase obligations as of December 31, 2021 are as follows (dollars in thousands): Year Amount 2022 $ 216,886 2023 11,207 2024 11,628 2025 5,968 2026 5,969 Thereafter 83,190 $ 334,848 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustment Postretirement Benefit Obligations Adjustment Changes in Fair Value of Effective Cash Flow Hedges Accumulated Other Comprehensive Income (loss) Balance at December 31, 2018 (5,011) 3,170 (633) (2,474) Other comprehensive income (loss) (9) (8,238) (1,589) (9,836) Amounts reclassified from accumulated other comprehensive income (loss) — — 705 705 Income tax expense (benefit) — 1,943 211 2,154 Current period change (9) (6,295) (673) (6,977) Balance at December 31, 2019 (5,020) (3,125) (1,306) (9,451) Other comprehensive income (loss) (49) (7,393) (3,586) (11,028) Amounts reclassified from accumulated other comprehensive income (loss) — — 2,240 2,240 Income tax expense (benefit) — 1,789 318 2,107 Current period change (49) (5,604) (1,028) (6,681) Balance at December 31, 2020 (5,069) (8,729) (2,334) (16,132) Other comprehensive income (loss) (43) 10,334 519 10,810 Amounts reclassified from accumulated other comprehensive income (loss) — — 1,836 1,836 Income tax expense (benefit) — (2,487) (566) (3,053) Current period change (43) 7,847 1,789 9,593 Balance at December 31, 2021 $ (5,112) $ (882) $ (545) $ (6,539) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareThe details of the earnings per share calculations for the years ended December 31, 2021, 2020 and 2019 are as follows: Years Ended December 31, 2021 2020 2019 Basic Net Income $ 139,791 $ 46,077 $ 41,347 Weighted average common shares outstanding 28,152,876 28,048,726 28,122,288 EPS – Basic $ 4.97 $ 1.64 $ 1.47 Years Ended December 31, 2021 2020 2019 Diluted Net Income $ 139,791 $ 46,077 $ 41,347 Weighted average common shares outstanding – Basic 28,152,876 28,048,726 28,122,288 Dilutive effect of unvested equity awards 892,310 108,336 776,548 Weighted average common shares outstanding – Diluted 29,045,186 28,157,062 28,898,836 EPS – Diluted $ 4.81 $ 1.64 $ 1.43 Diluted EPS is computed based upon the weighted average number of common shares outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the year. The diluted EPS calculations exclude the effect of stock options when the options’ assumed proceeds exceed the average market price of the common shares during the period. For the years ended December 31, 2021, 2020 and 2019, stock options of 400,205, 951,607 and 544,635, respectively, were anti-dilutive and excluded from the computations of dilutive EPS. In September 2017, the Board of Directors (the "Board") adopted the AdvanSix Inc. Deferred Compensation Plan (the “DCP”), effective January 1, 2018. Pursuant to the DCP, our directors may elect to defer their cash retainer fees and allocate their deferrals to the AdvanSix stock unit fund. Each unit allocated under the stock unit fund represents the economic equivalent of one share of common stock. Units are paid out in shares of AdvanSix common stock upon distribution. As of December 31, 2021, a total of 66,544 units were allocated to the AdvanSix stock unit fund under the DCP. On May 4, 2018, the Company announced that the Board authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity available under the May 2018 share repurchase program. Repurchases may be made, from time to time, on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act of 1934, as amended (the "Exchange Act"). The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid in capital. During 2021, the Company had repurchased 21,564 shares of common stock to cover the tax withholding obligations in connection with the vesting awards, for an aggregate of $651,875 at a weighted average market price of $30.23 per share. The purchase of shares reduces the weighted average number of shares outstanding in the basic and diluted earnings per share calculations. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation PlansOn September 8, 2016, prior to the Spin-Off, our Board adopted, and Honeywell, as our sole stockholder, approved, the 2016 Stock Incentive Plan of AdvanSix Inc. and its Affiliates, and the material terms of performance-based compensation were approved by the Company's stockholders for tax purposes at our 2017 annual meeting of stockholders (the "Original Plan"). The Original Plan was amended and restated as the 2016 Stock Incentive Plan of AdvanSix Inc. and its Affiliates, as Amended and Restated, which was approved by stockholders of the Company at the Annual Meeting of Stockholders held on June 23, 2020 (the “Equity Plan”). As a result, no further grants will be made under the Original Plan. The Equity Plan provides for the grant of stock options, stock appreciation rights, performance awards, restricted stock units, restricted stock, other stock-based awards and non-share-based awards. The maximum aggregate number of shares of our common stock that may be issued under all stock-based awards granted under the Equity Plan is 2,937,209, subject to adjustment in accordance with the terms of the Equity Plan. Under the Equity Plan, the shares underlying all full-value awards, including those granted to non-employee directors, will be counted against the share reserve on a 1.85-for-one basis. Shares underlying stock option awards and SARs will be counted against the share reserve on a one-for-one basis. Under the terms of the Equity Plan, there were approximately 1,400,000 shares of AdvanSix common stock available for future grants of full-value awards at December 31, 2021. Restricted Stock Units – The Company may grant RSUs to key management employees and directors that generally vest over periods ranging from 1 to 3 years. In the event cash dividends are paid to shareholders of common stock, dividend equivalents accrue on all unvested RSUs. Dividend equivalents are subject to the same termination and vesting terms as the underlying RSU. Upon vesting, the RSUs and related dividend equivalents entitle the holder to receive one share of AdvanSix common stock for each RSU and dividend equivalent at time of vesting and are payable in AdvanSix common stock upon vesting. The fair value of all stock-settled RSUs is based upon the market price of the underlying common stock as of the grant date. The following table summarizes information about RSU activity related to the Equity Plan: Number of Restricted Stock Units (In Thousands) Weighted Average Grant Date Fair Value (Per Share) Non-vested at December 31, 2018 994 $ 18.90 Granted 131 29.42 Vested (864) 16.78 Forfeited (7) 32.93 Non-vested at December 31, 2019 254 30.97 Granted 331 13.11 Vested (120) 24.28 Forfeited (33) 32.11 Non-vested at December 31, 2020 432 18.94 Granted 153 29.64 Vested (115) 23.51 Forfeited (28) 11.07 Non-vested at December 31, 2021 442 $ 22.11 As of December 31, 2021, there was approximately $4.4 million of total unrecognized compensation cost related to non-vested RSUs granted under the Equity Plan which is expected to be recognized over a weighted-average period of 1.5 years. The following table summarizes information about the income statement impact from RSUs for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 Compensation expense $ 3,544 $ 3,018 $ 6,125 Future income tax benefit recognized $ 887 $ 1,025 $ 678 Stock Options – The exercise price, term and other conditions applicable to each option granted under the Equity Plan are generally determined by the Compensation Committee of the Board. The exercise price of stock options is set on the grant date and may not be less than the fair market value per share of our stock on that date. The fair value is recognized as an expense over the employee’s requisite service period (generally the vesting period of the award). Options generally vest over periods ranging from 1 to 3 years. The following table summarizes information about the income statement impact from stock options for the years ended December 31, 2021, 2020 and 2019. Years Ended December 31, 2021 2020 2019 Compensation expense $ 1,410 $ 1,520 $ 1,989 Future income tax benefit recognized $ 1,030 $ 441 $ 745 The fair value related to stock options granted was determined using Black-Scholes option pricing model and the weighted average assumptions are shown in the table below: Years Ended December 31, Key Black-Scholes Assumptions 2021 2020 2019 Risk-free interest rate 0.8% 1.2% 2.5% Expected term (years) 6 6 6 Volatility 35.6% 32.2% 30.9% Dividend yield — — — Fair value per stock option $10.34 $4.74 $11.67 The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. Volatility is determined based on the average volatility of peer companies with similar option terms. The expected term is determined using a simplified approach, calculated as the mid-point between the vesting period and the contractual term of the award. The risk-free interest rate is determined based upon the yield of an outstanding U.S. Treasury note with a term equal to the expected term of the option granted. The following table summarizes information about stock option activity related to the Equity Plan: Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 298 33.24 8.80 $ — Exercisable at December 31, 2018 57 $ 33.23 8.30 $ — Granted 196 33.34 Exercised 1 26.66 Forfeited (4) 31.75 Expired — — Outstanding at December 31, 2019 491 33.28 8.22 $ — Exercisable at December 31, 2019 156 $ 30.83 7.45 $ — Granted 306 14.29 Exercised — — Forfeited (38) 35.53 Expired — — Outstanding at December 31, 2020 759 25.44 7.42 $ — Exercisable at December 31, 2020 326 $ 32.16 6.84 $ — Granted 160 29.21 Exercised 20 27.55 Forfeited (33) 21.29 Expired — — Outstanding at December 31, 2021 906 26.13 7.42 $ 19,123 Exercisable at December 31, 2021 443 $ 29.42 6.54 $ 7,895 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the year and the exercise price, multiplied by the number of in-the-money options) that would have been received had all option holders exercised their in-the-money options at year-end. The amount changes based on the fair market value of the Company’s stock. As of December 31, 2021, there was $1.0 million of unrecognized stock-based compensation expense related to stock options that is expected to be recognized over a weighted average period of approximately 0.9 years. Performance Stock Units – The Company may issue PSUs to key senior management employees which, upon vesting, convert one-for-one to AdvanSix common stock. In the event cash dividends are paid to shareholders of common stock, dividend equivalents will accrue on all unvested PSUs. Dividend equivalents are subject to the same termination, vesting and performance terms as the underlying PSU award. The actual number of shares an employee receives for each PSU and related dividend equivalent depends on the Company’s performance against certain metrics, including cumulative Earnings Per Share and average annual Return on Investment goals over three The following table summarizes information about PSU activity related to the Equity Plan: Number of Performance Stock Units (In Thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 145 $ 32.73 Granted 88 33.34 Vested — — Forfeited (3) 35.04 Non-vested at December 31, 2019 230 30.03 Granted 248 13.99 Vested (91) 26.66 Forfeited (40) 35.72 Non-vested at December 31, 2020 347 20.77 Granted 128 29.21 Vested (6) 9.47 Forfeited (65) 32.25 Non-vested at December 31, 2021 404 $ 20.04 The fair value of the PSUs is principally based on the fair market value of the Company’s stock at the grant date. The number of underlying shares to be issued will be based on actual performance achievement over the performance period. The accrual of compensation costs is based on our estimate of the probable expected value of the award. The fair value of each PSU grant is amortized monthly into compensation expense on a straight-line basis over a vesting period of 36 months. Changes in expected probable value are recorded as compensation expense on a catch-up basis in the month in which the change is identified. Any remaining balance is amortized monthly into compensation expense on a straight-line basis over the remaining vesting period. The Company assumes that forfeitures will be minimal, and estimates forfeitures at time of issuance, which results in a reduction in compensation expense. As the payout of PSUs includes dividend equivalents, no separate dividend yield assumption is required in calculating the fair value of the PSUs. The Company initiated a dividend during the fourth quarter of 2021. As of December 31, 2021, there was approximately $6.2 million of total unrecognized compensation cost related to non-vested PSUs granted under the Equity Plan which is expected to be recognized over a weighted-average period of 1.5 years. The following table summarizes information about the income statement impact from PSUs for the year ended December 31, 2021, 2020 and 2019. Years Ended December 31, 2021 2020 2019 Compensation expense $ 6,345 $ 366 $ 236 Future income tax benefit recognized $ 667 $ 327 $ 271 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions We actively target potential acquisitions that build on our competitive advantage and core capabilities and create opportunities for broader expansion, value chain integration, portfolio diversification, increased exposure to attractive end markets and the potential for long-term value creation. In January 2021, the Company acquired certain assets associated with ammonium sulfate packaging, warehousing and logistics services in Virginia from Commonwealth Industrial Services, Inc. for approximately $9.5 million. This acquisition enables the Company to expand its product offerings by directly supplying packaged ammonium sulfate to customers, primarily in North and South America. It diversifies and optimizes our product offerings to include spray-grade adjuvant to support crop protection and products for industrial use. The Company also expects the addition of packaging and warehousing capabilities to bolster logistics and operational efficiency across its Richmond, Virginia area plants. The Company did not make any acquisitions during the three or twelve months ended December 31, 2020 or 2019. In accordance with ASC 805, this transaction has been accounted for as a business combination. The Company used its best estimates and assumptions to assign fair value to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date based on the information that was available as of the acquisition date. The transaction resulted in the Company acquiring tangible assets and a finite-lived intangible asset, comprised of customer relationships which reflects the value of the benefit derived from incremental revenue and related cash flows as a direct result of the customer relationships. This intangible asset is being amortized on a straight-line basis over its estimated useful life of 15 years. The residual amount of the purchase price in excess of the value of the tangible and definite-lived intangible assets was allocated to goodwill. Pro forma financial information related to the acquisition has not been included as the impact on the Company's consolidated results of operations was below the reporting thresholds of the significance test. The following table summarizes the allocation of the purchase price consideration as of the acquisition date: Twelve months ended December 31, 2021 Accounts receivable $ 858 Inventories 712 Property, plant and equipment 1,875 Intangible assets 3,920 Accounts payable and accrued liabilities (429) Net tangible and intangible assets 6,936 Goodwill 2,587 Total purchase price $ 9,523 Cash paid to date $ 9,523 Due to seller — Total purchase price $ 9,523 Goodwill deductible for tax purposes $ 2,587 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As announced on February 18, 2022, the Board declared a quarterly cash dividend of $0.125 per share on the Company's common stock, payable on March 15, 2022 to stockholders of record as of the close of business on March 1, 2022. On February 18, 2022, the Company announced the signing of a definitive agreement to acquire U.S. Amines, Ltd., a leading North American producer of alkyl and specialty amines serving high-value end markets such as agrochemicals and pharmaceuticals, for an estimated net purchase price of approximately $100 million. The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Accounting Principles | Accounting Principles – The financial statements and accompanying Notes are prepared in accordance with accounting principles generally accepted in the United States of America. The following is a description of AdvanSix’s significant accounting policies. |
Principles of Consolidation | Principles of Consolidation – The Consolidated Financial Statements include the accounts of AdvanSix and all of its subsidiaries in which a controlling financial interest is maintained. Our consolidation policy requires equity investments that we exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee’s activities to be accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which we do not have readily determinable fair values are accounted for under the cost method. All intercompany transactions and balances are eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash on hand and on deposit and highly liquid, temporary cash investments with an original maturity to the Company of three months or less. We reduce cash and extinguish liabilities when the creditor receives our payment and we are relieved of our obligation for the liability when checks clear the Company’s bank account. |
Fair Value Measurement | Fair Value Measurement – ASC 820, Fair Value Measurement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Financial Accounting Standards Board's ("FASB") guidance classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or Inputs other than quoted prices that are observable for the asset or liability Level 3 Unobservable inputs for the asset or liability |
Derivative Financial Instruments | Derivative Financial Instruments – We minimize our risks from interest and foreign currency exchange rate fluctuations through our normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. Derivative financial instruments that qualify for hedge accounting must be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accordingly, changes in fair value of the derivative contract must be highly correlated with changes in fair value of the underlying hedged item at inception of the hedge and over the life of the hedge contract. All derivatives are recorded on the balance sheet as assets or liabilities and measured at fair value. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair values of both the derivatives and the hedged items are recorded in current earnings. For derivatives designated as cash flow hedges, the changes in fair value of the derivatives are recorded in Accumulated other comprehensive income (loss) and subsequently recognized in earnings when the hedged items impact earnings. Cash flows of such derivative financial instruments are classified consistent with the underlying hedged item. For derivative instruments that are designated and qualify as a net investment hedge, the derivative’s gain or loss is reported as a component of Other comprehensive income (loss) and recorded in Accumulated other comprehensive income (loss). The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. |
Commodity Price Risk Management | Commodity Price Risk Management – The Company's exposure to market risk for commodity prices can result in changes in our cost of production. We primarily mitigate our exposure to commodity price risk by using long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers. Our customer agreements provide for price adjustments based on relevant market indices and raw material prices, and generally they do not include take-or-pay terms. Instead, each customer agreement, the majority of which have a term of at least one year, is typically determined by monthly or quarterly volume estimates. We may also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several |
Inventories | Inventories – Substantially all of the Company's inventories are valued at the lower of cost or market using the last-in, first-out (“LIFO”) method. The Company includes spare and other parts in inventory which are used in support of production or production facilities operations and are valued based on weighted average cost. |
Property, Plant, Equipment | Property, Plant, Equipment – Property, plant, equipment asset values are recorded at cost, including any asset retirement obligations, less accumulated depreciation. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 30 to 50 years for buildings and improvements and 5 to 40 years for machinery and equipment. Our machinery and equipment includes (1) assets used in short production cycles or subject to high corrosion, such as instrumentation, controls and insulation systems with useful lives up to 15 years, (2) standard plant assets, such as boilers and railcars, with useful lives ranging from 15 to 30 years and (3) major process equipment that can be used for long durations with effective preventative maintenance and repair, such as cooling towers, compressors, tanks and turbines with useful lives ranging from 5 to 40 years. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset’s useful life. |
Long-Lived Assets | Long-Lived Assets – The Company evaluates the recoverability of the carrying amount of long-lived assets (including property, plant and equipment and intangible assets with determinable lives) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. The Company evaluates events or changes in circumstances based on several factors including operating results, business plans and forecasts, general and industry trends, and economic projections and anticipated cash flows. An impairment is assessed when the undiscounted expected future cash flows derived from an asset are less than its carrying amount. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its fair value and are recognized in the Consolidated Statements of Operations. The Company also evaluates the estimated useful lives of long-lived assets if circumstances warrant and revises such estimates based on current events. |
Goodwill | Goodwill – The Company had goodwill of $17.6 million and $15.0 million as of December 31, 2021 and 2020, respectively. Goodwill is subject to impairment testing annually as of March 31, or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. Management first assesses qualitative factors as described in ASC 350 to determine whether it is necessary to perform the quantitative goodwill impairment test. The Company completed its annual goodwill impairment test as of March 31, 2021 and, based on the results of the Company's assessment of qualitative factors, it was determined that it was not necessary to perform the quantitative goodwill impairment test. |
Revenue Recognition | Revenue Recognition – The Company recognizes revenue upon the transfer of control of goods or services to customers at amounts that reflect the consideration expected to be received. AdvanSix primarily recognizes revenues when title and control of the product transfers from the Company to the customer. Outbound shipping costs incurred by the Company are not included in revenues but are reflected as freight expense in Costs of goods sold in the Consolidated Statements of Operations. Sales of our products to customers are made under a purchase order, and in certain cases in accordance with the terms of a master services agreement. These agreements typically contain formula-based pass-through pricing tied to key feedstock materials and volume ranges, but often do not specify the goods, including the quantities thereof, to be transferred. Certain master services agreements (including with respect to our largest customer) may contain minimum purchase volumes which can be satisfied by the customer on a periodic basis by choosing from various products offered by the Company. In these cases, a performance obligation is created when a customer submits a purchase order for a specific product at a specified price, typically providing for delivery within the next 60 days. Management considers the performance obligation with respect to such purchase order satisfied at the point in time when control of the product is transferred to the customer, which is indicated by shipment of the product and transfer of title and risk of loss to the customer. Transfer of control to the customer occurs through various modes of shipment, including trucks, railcars, and vessels, and follows a variety of commercially acceptable shipping or destination point terms pursuant to the arrangement with the customer. Variable consideration is estimated for future volume rebates and early pay discounts on certain products and product returns. The Company records variable consideration as an adjustment to the sale transaction price. Since variable consideration is generally settled within one year, the time value of money is not significant. The Company applies the practical expedient in Topic 606 and does not include disclosures regarding remaining performance obligations that have original expected durations of one year or less, or amounts for variable consideration allocated to wholly-unsatisfied performance obligations or wholly-unsatisfied distinct goods that form part of a single performance obligation, if any. The Company also utilizes the practical expedient in Topic 606 and does not include an adjustment for the effects of a significant financing component given the expected period duration of one year or less. |
Environmental | Environmental – The Company accrues costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. |
Deferred Income and Customer Advances | Deferred Income and Customer Advances – AdvanSix typically has an annual pre-buy program for ammonium sulfate that is classified as deferred income and customer advances in the Consolidated Balance Sheets. Customers pay cash in advance to reserve capacity for ammonium sulfate to guarantee product availability during peak planting season. The Company recognizes a customer advance when cash is received for the advanced buy. Revenue is then recognized and the customer advance is relieved upon title transfer of ammonium sulfate. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts – Trade accounts receivables are recorded at the invoiced amount as a result of transactions with customers. AdvanSix maintains allowances for doubtful accounts for estimated losses based on a customer’s inability to make required payments. AdvanSix estimates anticipated losses from doubtful accounts based on days past due, as measured from the contractual due date and historical collection history and incorporates changes in economic conditions that may not be reflected in historical trends such as customers in bankruptcy, liquidation or reorganization. Receivables are written-off against the allowance for doubtful accounts when they are determined uncollectible. Such determination includes analysis and consideration of the particular conditions of the account, including time intervals since last collection, customer performance against agreed upon payment plans, success of outside collection agencies activity, solvency of customer and any bankruptcy proceedings. The Company adopted ASU 2016-13 effective January 1, 2020, using a modified retrospective approach, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. |
Research and Development | Research and Development – AdvanSix conducts research and development (“R&D”) activities, which consist primarily of the development of new products and product applications consisting primarily of labor costs and depreciation and maintenance costs. R&D costs are charged to expense as incurred. |
Debt Issuance Costs | Debt Issuance Costs – Debt issuance costs are capitalized as a component of Other assets and are amortized through interest expense over the related term. |
Stock-Based Compensation Plans | Stock-Based Compensation Plans – The principal awards issued under our stock-based compensation plans, which are described in "Note 16. Stock-Based Compensation Plans" to the Consolidated Financial Statements included in Item 8 of this Form 10-K, are non-qualified stock options, performance stock units and restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. The value of the portion of the award that is ultimately expected to vest, including the impact of the Company's anticipated performance against certain metrics for performance stock units, is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses. Estimates of future performance are utilized to determine the underlying expense for shares expected to vest. Forfeitures are estimated at the time of grant to recognize expense for those awards that are expected to vest and are based on our historical forfeiture rates. |
Dividend Equivalents | Dividend Equivalents – If a dividend is authorized by the Board for stockholders of common stock, holders of unvested RSUs and unvested PSUs will have their accounts credited with dividend equivalents in the form and in an amount equal to the dividend that the holder would have received had the shares underlying the RSUs and PSUs been distributed at the time that such dividend was paid. Dividend equivalents are subject to the same vesting, forfeiture, performance and payment restrictions as the respective equity award for which it is attributable. Since the dividend equivalents are forfeitable, there is no impact on the basic earnings per share calculation. |
Pension Benefits | Pension Benefits – We have a defined benefit plan covering certain employees primarily in the U.S. The benefits are accrued over the employees’ service periods. We use actuarial methods and assumptions in the valuation of defined benefit obligations and the determination of net periodic pension income or expense. Differences between actual and expected results or changes in the value of defined benefit obligations and fair value of plan assets, if any, are not recognized in earnings as they occur but rather systematically over subsequent periods when net actuarial gains or losses are in excess of 10% of the greater of the fair value of plan assets or the plan’s projected benefit obligation. |
Foreign Currency Translation | Foreign Currency Translation – Assets and liabilities of subsidiaries operating outside the United States with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Sales, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive income (loss) in our Consolidated Balance Sheets. |
Income Taxes | Income Taxes – We account for income taxes pursuant to the asset and liability method which requires us to recognize current tax liabilities or receivables for the amount of taxes we estimate are payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts and their respective tax bases of assets and liabilities and the expected benefits of net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period enacted. A valuation allowance is provided when it is more likely than not that a portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the reversal of deferred tax liabilities during the period in which related temporary differences become deductible. We adopted the provisions of ASC 740 related to the accounting for uncertainty in income taxes recognized in an enterprise’s consolidated financial statements. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The benefit of tax positions taken or expected to be taken in our income tax returns are recognized in the financial statements if such positions are more likely than not of being sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as “unrecognized benefits”. A liability is recognized (or amount of net operating loss carryover or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprise’s potential future obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of ASC 740. Interest costs and related penalties related to unrecognized tax benefits are required to be calculated, if applicable. Our policy is to classify tax related interest and penalties, if any, as a component of income tax expense. No interest or penalties related to unrecognized income tax benefits were recorded during the years ended December 31, 2021, 2020 and 2019. As of December 31, 2021 and 2020, no liability for unrecognized tax benefits was required to be reported. We do not expect any significant changes in our unrecognized tax benefits in the next year. |
Leases | Leases – The Company enters into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. Operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. An arrangement is considered to be a lease if the agreement conveys the right to control the use of the identified asset in exchange for consideration. Operating leases, which are reported as Operating lease right-of-use assets, and Operating lease liabilities – short-term and Operating lease liabilities – long-term are included in our Consolidated Balance Sheets. Finance leases are included as a component of Property, plant and equipment – net, Accounts payable and Other liabilities in our Consolidated Balance Sheets. The Company adopted ASU 2016-02, Leases (Topic 842) effective January 1, 2019 and has elected the following practical expedients available in Topic 842: • the package of three expedients which allows the Company to not re-assess (i) whether any expired or existing contracts are, or contain, leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any expired or existing leases; • the short-term lease practical expedient, which allows the Company to exclude leases with an initial term of 12 months or less ("short-term leases") from recognition in the unaudited Consolidated Balance Sheets; • the bifurcation of lease and non-lease components practical expedients, which did not require the Company to bifurcate lease and non-lease components for real estate leases; and • the land easements practical expedient, which allows the Company to carry forward the accounting treatment for land easements on existing agreements. |
Earnings Per Share | Earnings Per Share – Basic earnings per share is based on the weighted average number of common shares outstanding. Diluted earnings per share is based on the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. |
Treasury Stock | Treasury Stock – The Company has elected to account for treasury stock purchased under the constructive retirement method. For shares repurchased in excess of par, the company will allocate the excess value to additional paid-in capital. |
Use of Estimates | Use of Estimates – The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. |
Reclassifications | Reclassifications – Certain prior period amounts have been reclassified for consistency with the current period presentation. All reclassified amounts have been immaterial. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. On August 5, 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. Therefore, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. This will result in more convertible debt instruments being accounted for as a single liability measured at its amortized cost and more convertible preferred stock being accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The ASU also amends the derivative scope exception guidance for contracts in an entity’s own equity. The amendments remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception. The guidance is effective for public business entities for fiscal years, and interim terms within those fiscal years, beginning after December 15, 2021. Early adoption of the amendments in this update is permitted, but no earlier than fiscal years, including interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2020-06 effective January 1, 2022, which did not have any impact on the Company's consolidated financial position or results of operations upon adoption. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments of ASU No. 2020-04 are effective for companies as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The Company adopted ASU 2020-04 effective September 30, 2021, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption. On December 18, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes the exception to the general principles in FASB Accounting Standards Codification ("ASC") 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period. The Company adopted ASU 2019-12 effective January 1, 2021, which did not have a material impact on the Company’s consolidated financial position or results of operations upon adoption. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Company’s revenue by product line, and related approximate percentage of total sales for 2021, 2020 and 2019 were as follows: Years Ended December 31, 2021 2020 2019 Nylon $ 422,897 25% $ 284,701 24% $ 351,169 27% Caprolactam 316,132 19% 216,268 19% 278,634 22% Chemical Intermediates 544,504 32% 369,130 32% 368,361 28% Ammonium Sulfate 401,092 24% 287,818 25% 299,229 23% $ 1,684,625 100% $ 1,157,917 100% $ 1,297,393 100% The Company’s revenues by geographic area, and related approximate percentage of total sales for 2021, 2020 and 2019 were as follows: Years Ended December 31, 2021 2020 2019 United States $ 1,382,501 82 % $ 890,776 77 % $ 1,057,498 82 % International 302,124 18 % 267,141 23 % 239,895 18 % Total $ 1,684,625 100 % $ 1,157,917 100 % $ 1,297,393 100 % |
Contract with Customer, Asset and Liability | Below is a roll-forward of Deferred income and customer advances for the twelve months ended December 31, 2021: Deferred Income and Customer Advances 2021 Opening balance January 1, 2021 $ 26,379 Additional cash advances 4,328 Less amounts recognized in revenues (27,958) Ending balance December 31, 2021 $ 2,749 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Years Ended December 31, 2021 2020 2019 Income before taxes U.S. $ 184,963 $ 54,902 $ 53,231 Non-U.S. 153 131 117 $ 185,116 $ 55,033 $ 53,348 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of: Years Ended December 31, 2021 2020 2019 Current Provision: Federal $ 34,079 $ (10,289) $ 2,519 State 6,504 1,605 1,007 Non-U.S. 35 20 24 Total current provision $ 40,618 $ (8,664) $ 3,550 Deferred Provision: Federal $ 2,256 $ 17,853 $ 7,536 State 2,445 (240) 907 Non-U.S. 6 7 8 Total deferred provision 4,707 17,620 8,451 Total income tax expense (benefit) $ 45,325 $ 8,956 $ 12,001 |
Schedule of Effective Income Tax Rate Reconciliation | The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31, 2021 2020 2019 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 3.0 % 2.0 % 2.8 % U.S. state income tax rate change 0.8 % — % — % Energy credit — % (6.2) % — % Forfeitures, cancellations and shortfalls of equity compensation — % 0.3 % — % Executive compensation limitations 1.0 % 0.9 % 1.5 % Research and other tax credits (0.3) % (2.6) % (3.0) % Foreign derived intangible income deduction (0.9) % — % — % Other, net (0.1) % 0.9 % 0.2 % 24.5 % 16.3 % 22.5 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences which give rise to future income tax benefits and expenses are as follows: December 31, 2021 2020 Deferred tax assets: Net Operating Loss $ 51 $ 107 Accruals and Reserves 7,040 4,966 Inventory 5,934 4,439 Pension Obligation 2,500 8,028 Operating lease liability 32,902 27,358 Equity Compensation 2,584 1,793 Other 421 900 Total gross deferred tax assets 51,432 47,591 Less: Valuation Allowance — — Total deferred tax assets $ 51,432 $ 47,591 Deferred tax liabilities: Property, plant & equipment $ (146,717) $ (140,735) Intangibles (3,721) (3,744) Operating lease asset (32,782) (27,262) Other (1,542) (1,417) Total deferred tax liabilities (184,762) (173,158) Net deferred taxes $ (133,330) $ (125,567) |
Schedule of Unrecognized Tax Benefits | The following table sets forth the change in the Company's unrecognized tax benefits (UTBs) for year ended December 31, 2021 and 2020. There are no unrecognized tax benefits in 2019. December 31, 2021 2020 Unrecognized tax benefits - January 1 $ — $ — Gross amounts of decreases in UTBs for tax positions related to the prior year — (3,804) Gross amounts of increases in UTBs for tax positions related to the prior year — 3,804 Gross amounts of increases and decreases in UTBs for tax positions taken during the current period — — Unrecognized tax benefits - December 31 $ — $ — |
Accounts and Other Receivable_2
Accounts and Other Receivables – Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | December 31, 2021 2020 Accounts receivables $ 175,584 $ 122,357 Other 4,051 2,668 Total accounts and other receivables 179,635 125,025 Less – allowance for doubtful accounts (1,495) (1,471) Total accounts and other receivables – net $ 178,140 $ 123,554 |
Schedule of Allowance for Doubtful Accounts | The roll-forward of allowance for doubtful accounts are summarized in the table below: Balance at Beginning of Year Charged to Costs Charged to Other Accounts (1) Bad Debt Write-Offs (1) Balance at End of Year Year ended December 31, 2021 $ 1,471 $ — $ — $ 24 $ 1,495 Year ended December 31, 2020 2,323 33 (559) (326) 1,471 Year ended December 31, 2019 7,467 274 (396) (5,022) 2,323 (1) No Impact to Statement of Operations |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | December 31, 2021 2020 Raw materials $ 56,961 $ 88,612 Work in progress 43,526 54,291 Finished goods 27,961 45,345 Spares and other 27,150 27,198 155,598 215,446 Reduction to LIFO cost basis (6,028) (35,361) Total inventories $ 149,570 $ 180,085 |
Property, Plant, Equipment _ _2
Property, Plant, Equipment – Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2021 2020 Land and improvements $ 6,566 $ 6,396 Machinery and equipment 1,476,896 1,430,192 Buildings and improvements 209,604 201,728 Construction in progress 44,414 47,000 1,737,480 1,685,316 Less – accumulated depreciation (969,516) (919,847) Total property, plant, equipment – net $ 767,964 $ 765,469 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases, Operating [Abstract] | |
Lease, Cost | The components of lease expense were as follows: Years Ended December 31, 2021 2020 Finance lease cost: Amortization of right-of-use asset $ 706 $ 697 Interest on lease liabilities 33 48 Total finance lease cost 739 745 Operating lease cost 40,994 44,513 Short-term lease cost 10,632 7,832 Total lease cost $ 52,365 $ 53,090 Supplemental cash flow information related to leases was as follows: Years Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 40,888 $ 44,445 Operating cash flows from finance leases 31 51 Financing cash flows from finance leases 735 710 Non-cash information: Right-of-use assets obtained in exchange for lease obligations: Operating leases 41,132 16,082 Finance leases 1,352 16 |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows: Years Ended December 31, 2021 2020 Operating Leases Operating lease right-of-use assets $ 136,207 $ 114,484 Operating lease liabilities – short term 36,127 29,279 Operating lease liabilities – long term 100,580 85,605 Total operating lease liabilities $ 136,707 $ 114,884 Finance Leases Property, plant and equipment – gross $ 2,663 $ 1,978 Accumulated depreciation (1,274) (1,257) Property, plant and equipment – net $ 1,389 $ 721 Accounts payable 600 509 Other liabilities 741 215 Total finance lease liabilities $ 1,341 $ 724 Weighted Average Remaining Lease Term Operating leases 8.2 years 9.8 years Finance leases 2.8 years 1.5 years Weighted Average Discount Rate Operating leases 5.32 % 6.07 % Finance leases 2.75 % 4.65 % |
Operating Lease, Liability, Maturity | Maturities of lease liabilities Year Ending December 31, Operating Finance 2022 $ 42,414 $ 628 2023 37,776 435 2024 27,043 205 2025 18,397 76 2026 8,974 47 Thereafter 44,181 — Total lease payments 178,785 1,391 Less imputed interest (42,078) (50) Total $ 136,707 $ 1,341 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities Year Ending December 31, Operating Finance 2022 $ 42,414 $ 628 2023 37,776 435 2024 27,043 205 2025 18,397 76 2026 8,974 47 Thereafter 44,181 — Total lease payments 178,785 1,391 Less imputed interest (42,078) (50) Total $ 136,707 $ 1,341 |
Long-term Debt and Credit Agr_2
Long-term Debt and Credit Agreement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s debt at December 31, 2021 consisted of the following: Total term loan outstanding $ — Amounts outstanding under the Revolving Credit Facility 135,000 Total outstanding indebtedness 135,000 Less: amounts expected to be repaid within one year — Total long-term debt due after one year $ 135,000 |
Schedule of Maturities of Long-term Debt | Scheduled principal repayments under the Long-term Debt and Credit Agreement subsequent to December 31, 2021 are as follows: 2022 $ — 2023 — 2024 — 2025 — 2026 135,000 Thereafter — Total $ 135,000 |
Postretirement Benefit Obliga_2
Postretirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the AdvanSix Retirement Earnings Plan. Change in benefit obligation: 2021 2020 2019 Benefit obligation at January 1, $ 89,137 $ 69,281 $ 48,450 Service Cost 7,817 8,021 6,855 Interest Cost 2,071 2,175 2,084 Actuarial losses (gains) (6,342) 10,507 12,364 Benefits Paid (1,294) (847) (472) Benefit obligation at December 31, $ 91,389 $ 89,137 $ 69,281 Change in plan assets: Fair value of plan assets at January 1, $ 48,444 $ 35,979 $ 26,789 Actual return on plan assets 6,572 5,212 $ 5,462 Benefits paid (1,294) (847) (472) Company Contributions 17,530 8,100 4,200 Fair value of plan assets at December 31, 71,252 48,444 35,979 Under-Funded status of plan $ 20,137 $ 40,693 $ 33,302 Amounts recognized in Balance Sheet consists of: Accrued pension liabilities-current (1) $ 1,894 $ 1,525 $ 892 Accrued pension liabilities-noncurrent (2) 18,243 39,168 32,410 Total pension liabilities recognized $ 20,137 $ 40,693 $ 33,302 (1) Included in accrued liabilities on Balance Sheet (2) Included in postretirement benefit obligations on Balance Sheet |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Pension amount recognized in accumulated other comprehensive loss (income) associated with the Company's pension plan are as follows for: Years Ended December 31, 2021 2020 2019 Transition obligation $ — $ — $ — Prior service cost — — — Net actuarial (gain) loss 1,071 11,405 4,012 Pension amounts recognized in other comprehensive loss (income) $ 1,071 $ 11,405 $ 4,012 |
Schedule of Net Benefit Costs | The components of net periodic benefit cost and other amounts recognized in other comprehensive income for our pension plan include the following components: Years Ended December 31, 2021 2020 2019 Net periodic pension cost (benefit) Service cost $ 7,817 $ 8,021 $ 6,855 Interest cost 2,071 2,175 2,084 Expected return on plan assets (2,924) (2,098) (1,336) Recognition of actuarial losses 345 — — Net periodic Pension Cost 7,309 8,098 7,603 Other changes in benefits obligations recognized in other comprehensive loss (income) Actuarial losses (gains) (10,335) 7,393 8,238 Total recognized in other comprehensive income (10,335) 7,393 8,238 Total net periodic pension cost (benefit) recognized in Other comprehensive income $ (3,026) $ 15,491 $ 15,841 |
Schedule of Assumptions Used | Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows: Key actuarial assumptions used to determine benefit obligations at December 31, 2021 2020 2019 Effective discount rate for benefit obligation 3.1% 2.9% 3.5% Expected annual rate of compensation increase 2.4% 2.4% 2.4% Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, 2021 2020 2019 Effective discount rate for service cost 2.9% 3.5% 4.6% Effective discount rate for interest cost 2.3% 3.2% 4.3% Expected long-term rate of return 6.8% 6.8% 7.0% Expected annual rate of compensation increase 2.4% 2.4% 2.8% |
Schedule of Expected Benefit Payments | Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid during the following years: 2022 $ 1,894 2023 2,376 2024 2,874 2025 3,386 2026 3,914 Thereafter 25,916 |
Summary of Pension Plan Contributions | The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows: Years Ended December 31, 2021 2020 2019 1st Quarter $ 1,200 $ 1,700 $ — 2nd Quarter 3,620 — 500 3rd Quarter 12,710 — 3,700 4th Quarter — 6,400 — Total $ 17,530 $ 8,100 $ 4,200 |
Schedule of Target Asset Allocation of Pension Plan Assets | The target asset allocation percent for the Company's pension plan assets is summarized as follows: Years Ended December 31, 2021 2020 Cash and cash equivalents 2% 2% US and non-US equity securities 65% 65% Fixed income / real estate / other securities 33% 33% Total Pension Assets 100% 100% |
Summary of Fair Value of Plan Assets | Fair Value at December 31, Fair Value Measurements 2021 2020 2019 Investments valued using NAV per share Emerging Markets Region Equities $ 4,249 $ 3,199 $ 2,264 International Region Equities 13,303 9,274 6,755 United States Equities 34,273 20,528 15,377 United States Bonds 17,357 12,506 9,477 Real Estate 599 2,312 1,767 Cash Fund 1,471 625 339 Total Pension Plan Assets at Fair Value $ 71,252 $ 48,444 $ 35,979 |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Liability Derivatives 2021 2020 2019 Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value Derivatives designated as hedging instruments under ASC 815: Interest Rate Contracts Accrued liabilities and Other liabilities $ (708) Accrued liabilities and Other liabilities $ (3,063) Accrued liabilities and Other liabilities $ (1,718) Total Derivatives $ (708) $ (3,063) $ (1,718) |
Derivative Instruments, Gain (Loss) | The following table summarizes adjustments related to cash flow hedge included in “Cash flow hedges”, in the Consolidated Statements of Comprehensive Income: December 31, 2021 Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2020 $ (3,063) Fair value adjustment 2,355 Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2021 $ (708) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the reclassification of net losses on derivative instruments from AOCI into earnings: Amount of Loss Recognized in Earnings Twelve Months Ended December 31, 2021 2020 Derivatives: Interest Rate Contracts $ 1,836 $ 2,240 Total Derivatives 1,836 2,240 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded Unconditional Purchase Obligations | Future minimum payments for these unconditional purchase obligations as of December 31, 2021 are as follows (dollars in thousands): Year Amount 2022 $ 216,886 2023 11,207 2024 11,628 2025 5,968 2026 5,969 Thereafter 83,190 $ 334,848 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows: Currency Translation Adjustment Postretirement Benefit Obligations Adjustment Changes in Fair Value of Effective Cash Flow Hedges Accumulated Other Comprehensive Income (loss) Balance at December 31, 2018 (5,011) 3,170 (633) (2,474) Other comprehensive income (loss) (9) (8,238) (1,589) (9,836) Amounts reclassified from accumulated other comprehensive income (loss) — — 705 705 Income tax expense (benefit) — 1,943 211 2,154 Current period change (9) (6,295) (673) (6,977) Balance at December 31, 2019 (5,020) (3,125) (1,306) (9,451) Other comprehensive income (loss) (49) (7,393) (3,586) (11,028) Amounts reclassified from accumulated other comprehensive income (loss) — — 2,240 2,240 Income tax expense (benefit) — 1,789 318 2,107 Current period change (49) (5,604) (1,028) (6,681) Balance at December 31, 2020 (5,069) (8,729) (2,334) (16,132) Other comprehensive income (loss) (43) 10,334 519 10,810 Amounts reclassified from accumulated other comprehensive income (loss) — — 1,836 1,836 Income tax expense (benefit) — (2,487) (566) (3,053) Current period change (43) 7,847 1,789 9,593 Balance at December 31, 2021 $ (5,112) $ (882) $ (545) $ (6,539) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The details of the earnings per share calculations for the years ended December 31, 2021, 2020 and 2019 are as follows: Years Ended December 31, 2021 2020 2019 Basic Net Income $ 139,791 $ 46,077 $ 41,347 Weighted average common shares outstanding 28,152,876 28,048,726 28,122,288 EPS – Basic $ 4.97 $ 1.64 $ 1.47 Years Ended December 31, 2021 2020 2019 Diluted Net Income $ 139,791 $ 46,077 $ 41,347 Weighted average common shares outstanding – Basic 28,152,876 28,048,726 28,122,288 Dilutive effect of unvested equity awards 892,310 108,336 776,548 Weighted average common shares outstanding – Diluted 29,045,186 28,157,062 28,898,836 EPS – Diluted $ 4.81 $ 1.64 $ 1.43 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes information about RSU activity related to the Equity Plan: Number of Restricted Stock Units (In Thousands) Weighted Average Grant Date Fair Value (Per Share) Non-vested at December 31, 2018 994 $ 18.90 Granted 131 29.42 Vested (864) 16.78 Forfeited (7) 32.93 Non-vested at December 31, 2019 254 30.97 Granted 331 13.11 Vested (120) 24.28 Forfeited (33) 32.11 Non-vested at December 31, 2020 432 18.94 Granted 153 29.64 Vested (115) 23.51 Forfeited (28) 11.07 Non-vested at December 31, 2021 442 $ 22.11 |
Schedule of Share Based Compensation Income Statement Impact From RSUs | The following table summarizes information about the income statement impact from RSUs for the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 Compensation expense $ 3,544 $ 3,018 $ 6,125 Future income tax benefit recognized $ 887 $ 1,025 $ 678 |
Schedule of Share Based Compensation Income Statement Impact From Stock Options | The following table summarizes information about the income statement impact from stock options for the years ended December 31, 2021, 2020 and 2019. Years Ended December 31, 2021 2020 2019 Compensation expense $ 1,410 $ 1,520 $ 1,989 Future income tax benefit recognized $ 1,030 $ 441 $ 745 |
Schedule of Key Black-Scholes Assumptions | The fair value related to stock options granted was determined using Black-Scholes option pricing model and the weighted average assumptions are shown in the table below: Years Ended December 31, Key Black-Scholes Assumptions 2021 2020 2019 Risk-free interest rate 0.8% 1.2% 2.5% Expected term (years) 6 6 6 Volatility 35.6% 32.2% 30.9% Dividend yield — — — Fair value per stock option $10.34 $4.74 $11.67 |
Summary of Stock Option Activity | The following table summarizes information about stock option activity related to the Equity Plan: Number of Shares Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2018 298 33.24 8.80 $ — Exercisable at December 31, 2018 57 $ 33.23 8.30 $ — Granted 196 33.34 Exercised 1 26.66 Forfeited (4) 31.75 Expired — — Outstanding at December 31, 2019 491 33.28 8.22 $ — Exercisable at December 31, 2019 156 $ 30.83 7.45 $ — Granted 306 14.29 Exercised — — Forfeited (38) 35.53 Expired — — Outstanding at December 31, 2020 759 25.44 7.42 $ — Exercisable at December 31, 2020 326 $ 32.16 6.84 $ — Granted 160 29.21 Exercised 20 27.55 Forfeited (33) 21.29 Expired — — Outstanding at December 31, 2021 906 26.13 7.42 $ 19,123 Exercisable at December 31, 2021 443 $ 29.42 6.54 $ 7,895 |
Summary of Performance Stock Unit Activity | The following table summarizes information about PSU activity related to the Equity Plan: Number of Performance Stock Units (In Thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 145 $ 32.73 Granted 88 33.34 Vested — — Forfeited (3) 35.04 Non-vested at December 31, 2019 230 30.03 Granted 248 13.99 Vested (91) 26.66 Forfeited (40) 35.72 Non-vested at December 31, 2020 347 20.77 Granted 128 29.21 Vested (6) 9.47 Forfeited (65) 32.25 Non-vested at December 31, 2021 404 $ 20.04 |
Schedule of Share Based Compensation Income Statement Impact From PSUs | The following table summarizes information about the income statement impact from PSUs for the year ended December 31, 2021, 2020 and 2019. Years Ended December 31, 2021 2020 2019 Compensation expense $ 6,345 $ 366 $ 236 Future income tax benefit recognized $ 667 $ 327 $ 271 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions | The following table summarizes the allocation of the purchase price consideration as of the acquisition date: Twelve months ended December 31, 2021 Accounts receivable $ 858 Inventories 712 Property, plant and equipment 1,875 Intangible assets 3,920 Accounts payable and accrued liabilities (429) Net tangible and intangible assets 6,936 Goodwill 2,587 Total purchase price $ 9,523 Cash paid to date $ 9,523 Due to seller — Total purchase price $ 9,523 Goodwill deductible for tax purposes $ 2,587 |
Organization, Operations and _2
Organization, Operations and Basis of Presentation (Details) | Dec. 31, 2021manufacuringSite$ / shares | Dec. 31, 2020$ / shares | Oct. 01, 2016$ / shares |
Accounting Policies [Abstract] | |||
Number of manufacturing sites | manufacuringSite | 3 | ||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies | |||
Checks outstanding | $ 4,500,000 | ||
Inventories – net | 149,570,000 | $ 180,085,000 | |
Inventory, LIFO reserve | 6,028,000 | 35,361,000 | |
Goodwill | 17,592,000 | 15,005,000 | |
Research and development expense | 14,000,000 | 11,800,000 | $ 13,900,000 |
Interest and penalties | 0 | 0 | 0 |
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Operating lease term (in years) | 20 years | ||
Common stock, shares issued (in shares) | 31,755,430 | 31,627,139 | |
Minimum | Buildings and improvements | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 30 years | ||
Minimum | Machinery and equipment | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 5 years | ||
Minimum | Standard plant assets | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 15 years | ||
Minimum | Major process equipment | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 5 years | ||
Maximum | Buildings and improvements | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 50 years | ||
Maximum | Machinery and equipment | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 40 years | ||
Maximum | Assets used in short production cycles or subject to high corrosion | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 15 years | ||
Maximum | Standard plant assets | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 30 years | ||
Maximum | Major process equipment | |||
Accounting Policies | |||
Property, plant, equipment useful life (in years) | 40 years | ||
Forward Commodity Agreement | |||
Accounting Policies | |||
Notional amount | $ 0 | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021customercountry | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Number of customers | customer | 400 | ||
Number of countries in which customers are located (more than) | country | 50 | ||
Contract with customer, timing of performance obligation | We typically sell to customers under master services agreements, with primarily one-year terms, or by purchase orders | ||
Duration of customer relationship | 20 years | ||
Percentage of sales | 100.00% | 100.00% | 100.00% |
Total sales | 10 Largest Customers | Customer concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk (as a percentage) | 40.00% | 43.00% | 47.00% |
Total sales | Shaw Industries Group Inc | Customer concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of sales | 12.00% | 14.00% | 22.00% |
Revenue - Percentage of Total S
Revenue - Percentage of Total Sales by Product Line (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,684,625,000 | $ 1,157,917,000 | $ 1,297,393,000 |
Percentage of sales | 100.00% | 100.00% | 100.00% |
Nylon | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 422,897,000 | $ 284,701,000 | $ 351,169,000 |
Percentage of sales | 25.00% | 24.00% | 27.00% |
Caprolactam | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 316,132,000 | $ 216,268,000 | $ 278,634,000 |
Percentage of sales | 19.00% | 19.00% | 22.00% |
Chemical Intermediates | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 544,504,000 | $ 369,130,000 | $ 368,361,000 |
Percentage of sales | 32.00% | 32.00% | 28.00% |
Ammonium Sulfate | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 401,092,000 | $ 287,818,000 | $ 299,229,000 |
Percentage of sales | 24.00% | 25.00% | 23.00% |
Revenue - Revenue by Geographic
Revenue - Revenue by Geographic Area (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,684,625,000 | $ 1,157,917,000 | $ 1,297,393,000 |
Percentage of sales | 100.00% | 100.00% | 100.00% |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 1,382,501,000 | $ 890,776,000 | $ 1,057,498,000 |
Percentage of sales | 82.00% | 77.00% | 82.00% |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net Sales | $ 302,124,000 | $ 267,141,000 | $ 239,895,000 |
Percentage of sales | 18.00% | 23.00% | 18.00% |
Revenue - Deferred Income and C
Revenue - Deferred Income and Customer Advances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Opening balance January 1, 2021 | $ 26,379 |
Additional cash advances | 4,328 |
Less amounts recognized in revenues | (27,958) |
Ending balance December 31, 2021 | $ 2,749 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 184,963 | $ 54,902 | $ 53,231 |
Non-U.S. | 153 | 131 | 117 |
Income before taxes | $ 185,116 | $ 55,033 | $ 53,348 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current Provision: | |||
Federal | $ 34,079 | $ (10,289) | $ 2,519 |
State | 6,504 | 1,605 | 1,007 |
Non-U.S. | 35 | 20 | 24 |
Total current provision | 40,618 | (8,664) | 3,550 |
Deferred Provision: | |||
Federal | 2,256 | 17,853 | 7,536 |
State | 2,445 | (240) | 907 |
Non-U.S. | 6 | 7 | 8 |
Deferred Income Tax Expense (Benefit), Total | 4,707 | 17,620 | 8,451 |
Income taxes | $ 45,325 | $ 8,956 | $ 12,001 |
Income Taxes - Schedule of In_3
Income Taxes - Schedule of Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
U.S. state income taxes | 3.00% | 2.00% | 2.80% |
U.S. state income tax rate change | 0.80% | 0.00% | 0.00% |
Energy credit | 0.00% | (6.20%) | 0.00% |
Forfeitures, cancellations and shortfalls of equity compensation | 0.00% | 0.30% | 0.00% |
Executive compensation limitations | 1.00% | 0.90% | 1.50% |
Research and other tax credits | (0.30%) | (2.60%) | (3.00%) |
Foreign derived intangible income deduction | (0.90%) | 0.00% | 0.00% |
Other, net | (0.10%) | 0.90% | 0.20% |
Effective income tax rate | 24.50% | 16.30% | 22.50% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Refund Of Previously Paid Taxes, COVID-19 | $ 12,300,000 | ||||
Expected refund of previously paid taxes | $ 12,300,000 | ||||
Unrecognized tax benefits | 0 | $ 0 | $ 0 | ||
Valuation allowance | 0 | 0 | |||
Undistributed earnings | 0 | 0 | |||
Income tax credits | $ 3,800,000 | $ 2,200,000 | |||
State | Illinois | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 700,000 | ||||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforwards | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net Operating Loss | $ 51,000 | $ 107,000 |
Accruals and Reserves | 7,040,000 | 4,966,000 |
Inventory | 5,934,000 | 4,439,000 |
Pension Obligation | 2,500,000 | 8,028,000 |
Operating lease liability | 32,902,000 | 27,358,000 |
Equity Compensation | 2,584,000 | 1,793,000 |
Other | 421,000 | 900,000 |
Total gross deferred tax assets | 51,432,000 | 47,591,000 |
Less: Valuation Allowance | 0 | 0 |
Total deferred tax assets | 51,432,000 | 47,591,000 |
Deferred tax liabilities: | ||
Property, plant & equipment | (146,717,000) | (140,735,000) |
Intangibles | (3,721,000) | (3,744,000) |
Operating lease asset | (32,782,000) | (27,262,000) |
Other | (1,542,000) | (1,417,000) |
Total deferred tax liabilities | (184,762,000) | (173,158,000) |
Net deferred taxes | $ (133,330,000) | $ (125,567,000) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits - January 1 | $ 0 | $ 0 |
Gross amounts of decreases in UTBs for tax positions related to the prior year | 0 | (3,804,000) |
Gross amounts of increases in UTBs for tax positions related to the prior year | 0 | 3,804,000 |
Gross amounts of increases and decreases in UTBs for tax positions taken during the current period | 0 | 0 |
Unrecognized tax benefits - December 31 | $ 0 | $ 0 |
Accounts and Other Receivable_3
Accounts and Other Receivables – Net - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivables | $ 175,584 | $ 122,357 |
Other | 4,051 | 2,668 |
Total accounts and other receivables | 179,635 | 125,025 |
Less – allowance for doubtful accounts | (1,495) | (1,471) |
Total accounts and other receivables – net | $ 178,140 | $ 123,554 |
Accounts and Other Receivable_4
Accounts and Other Receivables – Net - Schedule of Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,471 | $ 2,323 | $ 7,467 |
Charged to Costs and Expenses | 0 | 33 | 274 |
Charged to Other Accounts | 0 | (559) | (396) |
Bad Debt Write-Offs | 24 | (326) | (5,022) |
Balance at End of Year | $ 1,495 | $ 1,471 | $ 2,323 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 56,961 | $ 88,612 |
Work in progress | 43,526 | 54,291 |
Finished goods | 27,961 | 45,345 |
Spares and other | 27,150 | 27,198 |
Inventory, gross | 155,598 | 215,446 |
Reduction to LIFO cost basis | (6,028) | (35,361) |
Total inventories | $ 149,570 | $ 180,085 |
Property, Plant, Equipment _ _3
Property, Plant, Equipment – Net - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment, gross | $ 1,737,480 | $ 1,685,316 |
Less – accumulated depreciation | (969,516) | (919,847) |
Total property, plant, equipment – net | 767,964 | 765,469 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment, gross | 6,566 | 6,396 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment, gross | 1,476,896 | 1,430,192 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment, gross | 209,604 | 201,728 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, equipment, gross | $ 44,414 | $ 47,000 |
Property, Plant, Equipment _ _4
Property, Plant, Equipment – Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Capitalized interest | $ 2,565 | $ 5,580 | $ 6,359 |
Depreciation expense | $ 61,405 | $ 57,240 | $ 53,424 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases, Operating [Abstract] | |
Operating lease term (in years) | 20 years |
Operating lease not yet commenced | $ 3.4 |
Operating lease, commence lease period | 7 years |
Leases - Components of Cost (De
Leases - Components of Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost: | ||
Amortization of right-of-use asset | $ 706 | $ 697 |
Interest on lease liabilities | 33 | 48 |
Total finance lease cost | 739 | 745 |
Operating lease cost | 40,994 | 44,513 |
Short-term lease cost | 10,632 | 7,832 |
Total lease cost | $ 52,365 | $ 53,090 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 40,888 | $ 44,445 | |
Operating cash flows from finance leases | 31 | 51 | |
Financing cash flows from finance leases | 735 | 710 | $ 4,839 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 41,132 | 16,082 | |
Finance leases | $ 1,352 | $ 16 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating lease right-of-use assets | $ 136,207 | $ 114,484 |
Operating lease liabilities – short term | 36,127 | 29,279 |
Operating lease liabilities – long term | 100,580 | 85,605 |
Total operating lease liabilities | 136,707 | 114,884 |
Finance Leases | ||
Property, plant and equipment – gross | 2,663 | 1,978 |
Accumulated depreciation | $ (1,274) | $ (1,257) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment – net | Property, plant and equipment – net |
Property, plant and equipment – net | $ 1,389 | $ 721 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Accounts payable | $ 600 | $ 509 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Other liabilities | $ 741 | $ 215 |
Total finance lease liabilities | $ 1,341 | $ 724 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Weighted Average Remaining Lease Term | ||
Operating leases | 8 years 2 months 12 days | 9 years 9 months 18 days |
Finance leases | 2 years 9 months 18 days | 1 year 6 months |
Weighted Average Discount Rate | ||
Operating leases | 5.32% | 6.07% |
Finance leases | 2.75% | 4.65% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities After Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 42,414 | |
2023 | 37,776 | |
2024 | 27,043 | |
2025 | 18,397 | |
2026 | 8,974 | |
Thereafter | 44,181 | |
Total lease payments | 178,785 | |
Less imputed interest | (42,078) | |
Total | 136,707 | $ 114,884 |
Finance Leases | ||
2022 | 628 | |
2023 | 435 | |
2024 | 205 | |
2025 | 76 | |
2026 | 47 | |
Thereafter | 0 | |
Total lease payments | 1,391 | |
Less imputed interest | (50) | |
Total | $ 1,341 | $ 724 |
Long-term Debt and Credit Agr_3
Long-term Debt and Credit Agreement - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | $ 135,000 | |
Less: amounts due within one year | 0 | |
Total long-term debt due after one year | 135,000 | $ 275,000 |
Long-term debt | ||
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | 0 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Total outstanding indebtedness | $ 135,000 |
Long-term Debt and Credit Agr_4
Long-term Debt and Credit Agreement - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 135,000 |
Thereafter | 0 |
Total | $ 135,000 |
Long-term Debt and Credit Agr_5
Long-term Debt and Credit Agreement - Narrative (Details) | Oct. 27, 2021USD ($) | Feb. 19, 2020 | Oct. 22, 2021 |
Second Amended and Restated Credit Agreement | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Consolidated leverage ratio, period one (less than) | 3.50 | ||
Consolidated leverage ratio, period two (less than) | 4.50 | ||
Consolidated leverage ratio, period three (less than) | 4.25 | ||
Consolidated leverage ratio, period four (less than) | 3.50 | ||
Consolidated leverage ratio, period five, maximum | 3.25 | ||
Consolidated leverage ratio, period six, maximum | 3 | ||
Second Amended and Restated Credit Agreement | Minimum | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Annual commitment fee percentage | 0.20% | ||
Second Amended and Restated Credit Agreement | Minimum | Base Rate | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Second Amended and Restated Credit Agreement | Minimum | Eurodollar | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Second Amended and Restated Credit Agreement | Maximum | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Annual commitment fee percentage | 0.50% | ||
Second Amended and Restated Credit Agreement | Maximum | Base Rate | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Second Amended and Restated Credit Agreement | Maximum | Eurodollar | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
First Amended and Restated Credit Agreement | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Consolidated interest coverage ratio (not less than) | 3 | ||
Senior Secured Revolving Credit Facility | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Consolidated leverage ratio, period one (less than) | 4 | ||
Consolidated leverage ratio, period two (less than) | 3.75 | ||
Consolidated interest coverage ratio (not less than) | 3 | ||
Maximum aggregate principal amount | $ 500,000,000 | ||
Option for higher borrowing capacity | $ 175,000,000 | ||
Consolidated senior secured leverage ratio (less than) | 2.75 | ||
Debt outstanding | $ 150,000,000 | ||
Senior Secured Revolving Credit Facility | Letter of credit | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Maximum aggregate principal amount | 40,000,000 | ||
Senior Secured Revolving Credit Facility | Bridge loan | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Maximum aggregate principal amount | $ 40,000,000 | ||
Senior Secured Revolving Credit Facility | Base Rate | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 0.375% | ||
Senior Secured Revolving Credit Facility | LIBOR | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 1.375% | ||
Annual commitment fee percentage | 0.175% | ||
Senior Secured Revolving Credit Facility | Minimum | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Annual commitment fee percentage | 0.15% | ||
Senior Secured Revolving Credit Facility | Minimum | Base Rate | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Senior Secured Revolving Credit Facility | Minimum | LIBOR | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Senior Secured Revolving Credit Facility | Maximum | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Annual commitment fee percentage | 0.35% | ||
Senior Secured Revolving Credit Facility | Maximum | Base Rate | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Senior Secured Revolving Credit Facility | Maximum | LIBOR | Revolving credit facility | |||
Long-term Debt and Credit Arrangements (Details) [Line Items] | |||
Basis spread on variable rate | 2.25% |
Postretirement Benefit Obliga_3
Postretirement Benefit Obligations - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of match | 75.00% | ||
Company matching contribution, percent of employees' gross pay | 8.00% | ||
Contributions to defined contribution plan | $ 5,874,000 | $ 6,142,000 | $ 5,944,000 |
Actuarial loss (gain) amortized from AOCI into net periodic benefit cost | 0 | 0 | |
Accumulated benefit obligation | $ 79,600,000 | $ 73,200,000 | $ 54,400,000 |
Collective Bargaining Agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching contribution, percent of match | 50.00% | ||
Company matching contribution, percent of employees' gross pay | 8.00% | ||
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | $ 10,000,000 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected future employer contributions | $ 15,000,000 |
Postretirement Benefit Obliga_4
Postretirement Benefit Obligations - Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Change in benefit obligation: | |||||||||||||||
Benefit obligation at January 1, | $ 89,137 | $ 69,281 | $ 48,450 | $ 89,137 | $ 69,281 | $ 48,450 | |||||||||
Service Cost | 7,817 | 8,021 | 6,855 | ||||||||||||
Interest Cost | 2,071 | 2,175 | 2,084 | ||||||||||||
Actuarial losses (gains) | (6,342) | 10,507 | 12,364 | ||||||||||||
Benefits Paid | (1,294) | (847) | (472) | ||||||||||||
Benefit obligation at December 31, | $ 91,389 | $ 89,137 | $ 69,281 | 91,389 | 89,137 | 69,281 | |||||||||
Change in plan assets: | |||||||||||||||
Fair value of plan assets at January 1, | 48,444 | 35,979 | 26,789 | 48,444 | 35,979 | 26,789 | |||||||||
Actual return on plan assets | 6,572 | 5,212 | 5,462 | ||||||||||||
Benefits paid | (1,294) | (847) | (472) | ||||||||||||
Company Contributions | 0 | $ 12,710 | $ 3,620 | $ 1,200 | 6,400 | $ 0 | $ 0 | $ 1,700 | 0 | $ 3,700 | $ 500 | $ 0 | 17,530 | 8,100 | 4,200 |
Fair value of plan assets at December 31, | 71,252 | 48,444 | 35,979 | 71,252 | 48,444 | 35,979 | |||||||||
Under-Funded status of plan | 20,137 | 40,693 | 33,302 | 20,137 | 40,693 | 33,302 | |||||||||
Accrued pension liabilities-current | 1,894 | 1,525 | 892 | 1,894 | 1,525 | 892 | |||||||||
Accrued pension liabilities-noncurrent | 18,243 | 32,410 | 18,243 | 32,410 | |||||||||||
Total pension liabilities recognized | $ 20,137 | $ 40,693 | $ 33,302 | $ 20,137 | $ 40,693 | $ 33,302 |
Postretirement Benefit Obliga_5
Postretirement Benefit Obligations - Other Changes in Plan Assets Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | |||
Transition obligation | $ 0 | $ 0 | $ 0 |
Prior service cost | 0 | 0 | 0 |
Net actuarial (gain) loss | 1,071 | 11,405 | 4,012 |
Pension amounts recognized in other comprehensive loss (income) | $ 1,071 | $ 11,405 | $ 4,012 |
Postretirement Benefit Obliga_6
Postretirement Benefit Obligations - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Service Cost | $ 7,817 | $ 8,021 | $ 6,855 |
Interest Cost | 2,071 | 2,175 | 2,084 |
Expected return on plan assets | (2,924) | (2,098) | (1,336) |
Recognition of actuarial losses | 345 | 0 | 0 |
Net periodic Pension Cost | 7,309 | 8,098 | 7,603 |
Other changes in benefits obligations recognized in other comprehensive loss (income) | |||
Actuarial losses (gains) | (10,335) | 7,393 | 8,238 |
Total recognized in other comprehensive income | (10,335) | 7,393 | 8,238 |
Total net periodic pension cost (benefit) recognized in Other comprehensive income | $ (3,026) | $ 15,491 | $ 15,841 |
Postretirement Benefit Obliga_7
Postretirement Benefit Obligations - Assumptions Used in Calculations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Key actuarial assumptions used to determine benefit obligations at December 31, | |||
Effective discount rate for benefit obligation | 3.10% | 2.90% | 3.50% |
Expected annual rate of compensation increase | 2.40% | 2.40% | 2.40% |
Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, | |||
Effective discount rate for service cost | 2.90% | 3.50% | 4.60% |
Effective discount rate for interest cost | 2.30% | 3.20% | 4.30% |
Expected long-term rate of return | 6.80% | 6.80% | 7.00% |
Expected annual rate of compensation increase | 2.40% | 2.40% | 2.80% |
Postretirement Benefit Obliga_8
Postretirement Benefit Obligations - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Retirement Benefits [Abstract] | |
2022 | $ 1,894 |
2023 | 2,376 |
2024 | 2,874 |
2025 | 3,386 |
2026 | 3,914 |
Thereafter | $ 25,916 |
Postretirement Benefit Obliga_9
Postretirement Benefit Obligations - Pension Plan Contributions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||||||||||||||
Pension plan contributions | $ 0 | $ 12,710 | $ 3,620 | $ 1,200 | $ 6,400 | $ 0 | $ 0 | $ 1,700 | $ 0 | $ 3,700 | $ 500 | $ 0 | $ 17,530 | $ 8,100 | $ 4,200 |
Postretirement Benefit Oblig_10
Postretirement Benefit Obligations - Schedule of Target Asset Allocation of Pension Plan Assets (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 2.00% | 2.00% |
US and non-US equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 65.00% | 65.00% |
Fixed income / real estate / other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocation percentage | 33.00% | 33.00% |
Postretirement Benefit Oblig_11
Postretirement Benefit Obligations - Fair Value Measurement of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | $ 71,252 | $ 48,444 | $ 35,979 | $ 26,789 |
Emerging Markets Region Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 4,249 | 3,199 | 2,264 | |
International Region Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 13,303 | 9,274 | 6,755 | |
United States Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 34,273 | 20,528 | 15,377 | |
United States Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 17,357 | 12,506 | 9,477 | |
Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | 599 | 2,312 | 1,767 | |
Cash Fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total Pension Plan Assets at Fair Value | $ 1,471 | $ 625 | $ 339 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Interest Rate Swap - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | $ 0 | |||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | $ (700,000) | $ (3,100,000) | $ (1,700,000) |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)derivative_instrument | Dec. 31, 2020derivative_instrument | Jul. 31, 2019USD ($) | |
Concentration Risk [Line Items] | |||
Gain (loss) expected to be reclassified from AOCI to income | $ (600,000) | ||
Forward Contracts | |||
Concentration Risk [Line Items] | |||
Number of instruments held | derivative_instrument | 0 | 0 | |
Interest Rate Swap | |||
Concentration Risk [Line Items] | |||
Number of instruments held | derivative_instrument | 1 | ||
Notional amount | $ 50,000,000 | ||
Derivative liability | $ 0 | ||
Percent of borrowings swapped from floating rate to fixed rate | 37.00% |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Balance Sheet Classification (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | |||
Derivative liability | $ (708) | $ (3,063) | $ (1,718) |
Accrued Liabilities and Other Liabilities | Interest Rate Contract | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability | $ (708) | $ (3,063) | $ (1,718) |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Adjustments Related to Cash Flow Hedges on the Comprehensive Income Statement (Details) - Changes in Fair Value of Effective Cash Flow Hedges $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Derivative [Line Items] | |
Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2020 | $ (3,063) |
Fair value adjustment | 2,355 |
Loss on derivative instruments included in Accumulated other comprehensive loss at December 31, 2021 | $ (708) |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Amount of Loss Recognized in Earning (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivatives | $ 139,791 | $ 46,077 | $ 41,347 |
Amount of Loss Recognized in Earnings | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivatives | 1,836 | 2,240 | |
Amount of Loss Recognized in Earnings | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivatives | $ 1,836 | $ 2,240 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Recorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract] | |
2022 | $ 216,886 |
2023 | 11,207 |
2024 | 11,628 |
2025 | 5,968 |
2026 | 5,969 |
Thereafter | 83,190 |
Future minimum payments for unconditional purchase obligations | $ 334,848 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | $ 10,810 | $ (11,028) | $ (9,836) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,836 | 2,240 | 705 |
Income tax expense (benefit) | (3,053) | 2,107 | 2,154 |
Other comprehensive income (loss), net of tax | 9,593 | (6,681) | (6,977) |
Currency Translation Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (5,069) | (5,020) | (5,011) |
Other comprehensive income (loss) | (43) | (49) | (9) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax expense (benefit) | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (43) | (49) | (9) |
Ending balance | (5,112) | (5,069) | (5,020) |
Postretirement Benefit Obligations Adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (8,729) | (3,125) | 3,170 |
Other comprehensive income (loss) | 10,334 | (7,393) | (8,238) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax expense (benefit) | (2,487) | 1,789 | 1,943 |
Other comprehensive income (loss), net of tax | 7,847 | (5,604) | (6,295) |
Ending balance | (882) | (8,729) | (3,125) |
Changes in Fair Value of Effective Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (2,334) | (1,306) | (633) |
Other comprehensive income (loss) | 519 | (3,586) | (1,589) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,836 | 2,240 | 705 |
Income tax expense (benefit) | (566) | 318 | 211 |
Other comprehensive income (loss), net of tax | 1,789 | (1,028) | (673) |
Ending balance | (545) | (2,334) | (1,306) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (16,132) | (9,451) | (2,474) |
Ending balance | $ (6,539) | $ (16,132) | $ (9,451) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 04, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Economic equivalent of unit allocated (in shares) | 1 | |||
Number of shares repurchased (in shares) | 21,564 | |||
Value of stock repurchased | $ 651,875 | |||
Average market price of common stock repurchased (in dollars per share) | $ 30.23 | |||
May 2018 Repurchase Program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares authorized for repurchase (in shares) | 75,000,000 | |||
February 2019 Repurchase Program | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares authorized for repurchase (in shares) | 75,000,000 | |||
Deferred Compensation, Share-based Payments | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of units allocated to stock unit fund (in shares) | 66,544 | |||
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 400,205 | 951,607 | 544,635 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic | |||
Net Income | $ 139,791 | $ 46,077 | $ 41,347 |
Weighted average common shares outstanding (in shares) | 28,152,876 | 28,048,726 | 28,122,288 |
EPS – Basic (in dollars per share) | $ 4.97 | $ 1.64 | $ 1.47 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Earnings Per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Diluted | |||
Net Income | $ 139,791 | $ 46,077 | $ 41,347 |
Weighted average common shares outstanding – Basic (in shares) | 28,152,876 | 28,048,726 | 28,122,288 |
Dilutive effect of unvested equity awards (in shares) | 892,310 | 108,336 | 776,548 |
Weighted average common shares outstanding – Diluted (in shares) | 29,045,186 | 28,157,062 | 28,898,836 |
EPS – Diluted (in dollars per share) | $ 4.81 | $ 1.64 | $ 1.43 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | shares | 2,937,209 |
Number of shares available for grant (in shares) | shares | 1,400,000 |
Full-Value Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares underlying, counted against share reserve, basis | 1.85 |
Stock Option awards and SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares underlying, counted against share reserve, basis | 1 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 4.4 |
Period for recognition (in years) | 1 year 6 months |
RSUs | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 1 year |
RSUs | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 1 |
Period for recognition (in years) | 10 months 24 days |
Stock Options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 1 year |
Stock Options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 36 months |
Unrecognized compensation cost | $ 6.2 |
Period for recognition (in years) | 1 year 6 months |
Award performance period (in years) | 3 years |
Percent of potential to increase or decrease award type | 10.00% |
Performance Stock Units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target return percentage | 0.00% |
Performance Stock Units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Target return percentage | 200.00% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Schedule of RSU Activity Related to Equity Plan (Details) - RSUs - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Restricted Stock Units (In Thousands) | |||
Number of units, beginning balance (in shares) | 432 | 254 | 994 |
Number of units, Granted (in shares) | 153 | 331 | 131 |
Number of units, Vested (in shares) | (115) | (120) | (864) |
Number of units, Forfeited (in shares) | (28) | (33) | (7) |
Number of units, ending balance (in shares) | 442 | 432 | 254 |
Weighted Average Grant Date Fair Value (Per Share) | |||
Weighted Average Grant Date Fair Value Per Share, beginning balance (in dollars per share) | $ 18.94 | $ 30.97 | $ 18.90 |
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | 29.64 | 13.11 | 29.42 |
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 23.51 | 24.28 | 16.78 |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in dollars per share) | 11.07 | 32.11 | 32.93 |
Weighted Average Grant Date Fair Value Per Share, ending balance (in dollars per share) | $ 22.11 | $ 18.94 | $ 30.97 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Schedule of Income Statement Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Future income tax benefit recognized | $ 2,584 | $ 1,793 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 3,544 | 3,018 | $ 6,125 |
Future income tax benefit recognized | 887 | 1,025 | 678 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 1,410 | 1,520 | 1,989 |
Future income tax benefit recognized | 1,030 | 441 | 745 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 6,345 | 366 | 236 |
Future income tax benefit recognized | $ 667 | $ 327 | $ 271 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Schedule of Key Black-Scholes Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate percentage | 0.80% | 1.20% | 2.50% |
Expected term (years) | 6 years | 6 years | 6 years |
Volatility percentage | 35.60% | 32.20% | 30.90% |
Dividend yield percentage | 0.00% | 0.00% | 0.00% |
Fair value per stock option (in dollars per share) | $ 10.34 | $ 4.74 | $ 11.67 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares (in thousands) | ||||
Number of Shares, beginning balance (in shares) | 759 | 491 | 298 | |
Number of Shares, Granted (in shares) | 160 | 306 | 196 | |
Number of Shares, Exercised (in shares) | 20 | 0 | 1 | |
Number of Shares, Forfeited (in shares) | (33) | (38) | (4) | |
Number of Shares, Expired (in shares) | 0 | 0 | 0 | |
Number of Shares, ending balance (in shares) | 906 | 759 | 491 | 298 |
Exercisable shares (in shares) | 443 | 326 | 156 | 57 |
Weighted Average Exercise Price (per share) | ||||
Weighted Average Exercise Price, beginning balance (in dollars per share) | $ 25.44 | $ 33.28 | $ 33.24 | |
Weighted Average Exercise Price, Granted (in dollars per share) | 29.21 | 14.29 | 33.34 | |
Weighted Average Exercise Price, Exercised (in dollars per share) | 27.55 | 0 | 26.66 | |
Weighted Average Exercise Price, Forfeited (in dollars per share) | 21.29 | 35.53 | 31.75 | |
Weighted Average Exercise Price, Expired (in dollars per share) | 0 | 0 | 0 | |
Weighted Average Exercise Price, ending balance (in dollars per share) | 26.13 | 25.44 | 33.28 | $ 33.24 |
Weighted Average Exercise Price, Exercisable (in dollars per dollars per share) | $ 29.42 | $ 32.16 | $ 30.83 | $ 33.23 |
Options outstanding, Weighted Average Remaining Contractual Term (years) | 7 years 5 months 1 day | 7 years 5 months 1 day | 8 years 2 months 19 days | 8 years 9 months 18 days |
Options exercisable, Weighted Average Remaining Contractual Term (years) | 6 years 6 months 14 days | 6 years 10 months 2 days | 7 years 5 months 12 days | 8 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding (in thousands) | $ 19,123 | $ 0 | $ 0 | $ 0 |
Aggregate Intrinsic Value, Exercisable (in thousands) | $ 7,895 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Schedule of Nonvested PSUs (Details) - Performance Stock Units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Performance Stock Units (In Thousands) | |||
Number of units, beginning balance (in shares) | 347 | 230 | 145 |
Number of units, Granted (in shares) | 128 | 248 | 88 |
Number of units, Vested (in shares) | (6) | (91) | 0 |
Number of units, Forfeited (in shares) | (65) | (40) | (3) |
Number of units, ending balance (in shares) | 404 | 347 | 230 |
Weighted Average Grant Date Fair Value (per share) | |||
Weighted Average Grant Date Fair Value Per Share, beginning balance (in dollars per share) | $ 20.77 | $ 30.03 | $ 32.73 |
Weighted Average Grant Date Fair Value Per Share, Granted (in dollars per share) | 29.21 | 13.99 | 33.34 |
Weighted Average Grant Date Fair Value Per Share, Vested (in dollars per share) | 9.47 | 26.66 | 0 |
Weighted Average Grant Date Fair Value Per Share, Forfeited (in dollars per share) | 32.25 | 35.72 | 35.04 |
Weighted Average Grant Date Fair Value Per Share, ending balance (in dollars per share) | $ 20.04 | $ 20.77 | $ 30.03 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Purchase Price | |||
Goodwill | $ 17,592 | $ 15,005 | |
Commonwealth Industrial Services (CIS) | |||
Purchase Price | |||
Accounts receivable | 858 | ||
Inventories | 712 | ||
Property, plant and equipment | 1,875 | ||
Intangible assets | 3,920 | ||
Accounts payable and accrued liabilities | (429) | ||
Net tangible and intangible assets | 6,936 | ||
Goodwill | 2,587 | ||
Total purchase price | 9,523 | ||
Cash paid to date | 9,523 | ||
Due to seller | 0 | ||
Total purchase price | $ 9,500 | 9,523 | |
Goodwill deductible for tax purposes | $ 2,587 | ||
Commonwealth Industrial Services (CIS) | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Useful life | 15 years |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 18, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Payments to acquire business | $ 9,523 | $ 0 | $ 0 | |
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Common stock, dividends declared (in dollars per share) | $ 0.125 | |||
Subsequent event | U.S Amines, Ltd. | ||||
Subsequent Event [Line Items] | ||||
Payments to acquire business | $ 100,000 |