Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-38221 | ||
Entity Registrant Name | Ecovyst Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-3406833 | ||
Entity Address, Address Line One | 300 Lindenwood Drive | ||
Entity Address, City or Town | Malvern | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19355 | ||
City Area Code | (484) | ||
Local Phone Number | 617-1200 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Trading Symbol | ECVT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Document Financial Statement Error Correction | true | ||
Document Financial Statement Restatement Recovery Analysis | false | ||
Entity Public Float | $ 1,224,419,405 | ||
Entity Common Stock, Shares Outstanding | 116,983,842 | ||
Documents Incorporated by Reference | Portions of the Ecovyst Inc. Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001708035 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 691,118 | $ 820,159 | $ 611,201 |
Cost of goods sold | 493,153 | 595,529 | 434,540 |
Gross profit | 197,965 | 224,630 | 176,661 |
Selling, general and administrative expenses | 79,215 | 85,334 | 97,781 |
Other operating expense, net | 22,100 | 34,911 | 24,273 |
Operating income | 96,650 | 104,385 | 54,607 |
Equity in net (income) from affiliated companies | (30,624) | (27,725) | (27,737) |
Interest expense, net | 44,730 | 37,217 | 36,990 |
Debt extinguishment costs | 0 | 0 | 26,902 |
Other expense, net | 605 | 158 | 4,511 |
Income before income taxes | 81,939 | 94,735 | 13,941 |
Provision for income taxes | 10,785 | 24,940 | 12,147 |
Net income from continuing operations | 71,154 | 69,795 | 1,794 |
Net income (loss) from discontinued operations, net of tax | 0 | 3,902 | (141,410) |
Net income (loss) | 71,154 | 73,697 | (139,616) |
Less: Net income attributable to the noncontrolling interest - discontinued operations | 0 | 0 | 333 |
Net income (loss) attributable to Ecovyst Inc. | 71,154 | 73,697 | (139,949) |
Income from continuing operations attributable to Ecovyst Inc. | 71,154 | 69,795 | 1,794 |
Income (loss) from discontinued operations attributable to Ecovyst Inc. | $ 0 | $ 3,902 | $ (141,743) |
Net income (loss) per share: | |||
Basic income per share—continuing operations | $ 0.60 | $ 0.52 | $ 0.01 |
Diluted income per share—continuing operations | 0.60 | 0.52 | 0.01 |
Basic income (loss) per share—discontinued operations | 0 | 0.03 | (1.04) |
Diluted income (loss) per share—discontinued operations | 0 | 0.03 | (1.03) |
Basic income (loss) per share | 0.60 | 0.55 | (1.03) |
Diluted income (loss) per share | $ 0.60 | $ 0.55 | $ (1.02) |
Weighted average shares outstanding: | |||
Basic (shares) | 118,367,214 | 133,601,322 | 136,167,384 |
Diluted (shares) | 119,487,709 | 135,088,172 | 137,708,931 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other comprehensive income (loss), net of tax: | |||
Net (income) loss | $ 71,154 | $ 73,697 | $ (139,616) |
Pension and postretirement benefits | 1,120 | (2,676) | 9,530 |
Net gain (loss) from hedging activities | (12,126) | 24,382 | 2,914 |
Foreign currency translation | 4,056 | (9,922) | (2,248) |
Total other comprehensive income (loss) | (6,950) | 11,784 | 10,196 |
Comprehensive income (loss) | 64,204 | 85,481 | (129,420) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 333 |
Comprehensive income (loss) attributable to Ecovyst Inc. | $ 64,204 | $ 85,481 | $ (129,753) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 88,365 | $ 110,920 |
Accounts receivable, net | 81,314 | 74,758 |
Inventories, net | 45,115 | 44,362 |
Derivative assets | 13,419 | 18,510 |
Prepaid and other current assets | 17,774 | 19,154 |
Total current assets | 245,987 | 267,704 |
Investments in affiliated companies | 440,198 | 436,013 |
Property, plant and equipment, net | 576,904 | 584,889 |
Goodwill | 404,470 | 403,163 |
Other intangible assets, net | 116,550 | 129,932 |
Right-of-use lease assets | 24,281 | 28,265 |
Other long-term assets | 29,361 | 34,587 |
Total assets | 1,837,751 | 1,884,553 |
LIABILITIES | ||
Current maturities of long-term debt | 9,000 | 9,000 |
Accounts payable | 40,195 | 40,019 |
Operating lease liabilities—current | 8,193 | 8,155 |
Accrued liabilities | 61,693 | 72,229 |
Total current liabilities | 119,081 | 129,403 |
Long-term debt, excluding current portion | 858,946 | 865,870 |
Deferred income taxes | 115,791 | 136,184 |
Operating lease liabilities—noncurrent | 16,030 | 20,021 |
Other long-term liabilities | 22,439 | 25,846 |
Total liabilities | 1,132,287 | 1,177,324 |
Commitments and contingencies (Note 23) | ||
EQUITY | ||
Common stock, value, issued | 1,407 | 1,396 |
Preferred stock, value, issued | 0 | 0 |
Additional paid-in capital | 1,102,581 | 1,091,475 |
Accumulated deficit | (170,856) | (242,010) |
Treasury stock, value | (226,710) | (149,624) |
Accumulated other comprehensive (loss) income | (958) | 5,992 |
Total equity | 705,464 | 707,229 |
Total liabilities and equity | $ 1,837,751 | $ 1,884,553 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (shares) | 140,744,045 | 139,571,272 |
Common stock, shares outstanding (shares) | 116,116,895 | 122,186,238 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Treasury stock (shares) | 24,627,150 | 17,385,034 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accum. deficit | Treasury stock, at cost | Accum. other comp. income (loss) | Non-control ling interest |
Beginning balance (shares) at Dec. 31, 2020 | 137,102,143 | ||||||
Beginning balance at Dec. 31, 2020 | $ 1,277,179 | $ 1,371 | $ 1,477,859 | $ (175,758) | $ (11,081) | $ (15,265) | $ 53 |
Beginning balance (shares) at Dec. 31, 2020 | (783,586) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net (income) loss | (139,616) | (139,949) | 333 | ||||
Other comprehensive income | 10,196 | 9,473 | 723 | ||||
Tax withholdings on equity award vesting (in shares) | (98,627) | ||||||
Tax withholdings on equity award vesting | (1,470) | $ (1,470) | |||||
Distributions to noncontrolling interests | (1,109) | (1,109) | |||||
Dividends paid on common stock | (435,593) | (435,593) | |||||
Stock compensation expense | 30,404 | 30,404 | |||||
Shares issued under equity incentive plan, net of forfeitures (shares) | 718,828 | ||||||
Shares issued under equity incentive plan, net of forfeitures | 746 | $ 7 | 739 | ||||
Ending balance (shares) at Dec. 31, 2021 | 137,820,971 | ||||||
Ending balance at Dec. 31, 2021 | 740,737 | $ 1,378 | 1,073,409 | (315,707) | $ (12,551) | (5,792) | 0 |
Ending balance (shares) at Dec. 31, 2021 | (882,213) | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net (income) loss | 73,697 | 73,697 | 0 | ||||
Other comprehensive income | 11,784 | 11,784 | 0 | ||||
Repurchases of common shares (in shares) | (16,470,763) | ||||||
Repurchases of common shares | $ (136,741) | $ (136,741) | |||||
Tax withholdings on equity award vesting (in shares) | (32,058) | (32,058) | |||||
Tax withholdings on equity award vesting | $ (332) | $ (332) | |||||
Stock compensation expense | 17,469 | 17,469 | |||||
Shares issued under equity incentive plan, net of forfeitures (shares) | 1,750,301 | ||||||
Shares issued under equity incentive plan, net of forfeitures | $ 615 | $ 18 | 597 | ||||
Ending balance (shares) at Dec. 31, 2022 | 122,186,238 | 139,571,272 | |||||
Ending balance at Dec. 31, 2022 | $ 707,229 | $ 1,396 | 1,091,475 | (242,010) | $ (149,624) | 5,992 | 0 |
Ending balance (shares) at Dec. 31, 2022 | (17,385,034) | (17,385,034) | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net (income) loss | $ 71,154 | 71,154 | 0 | ||||
Other comprehensive income | (6,950) | (6,950) | 0 | ||||
Repurchases of common shares (in shares) | (7,541,494) | ||||||
Repurchases of common shares | $ (78,718) | $ (78,718) | |||||
Tax withholdings on equity award vesting (in shares) | (315,635) | (315,635) | |||||
Tax withholdings on equity award vesting | $ (3,372) | $ (3,372) | |||||
Excise tax on repurchases of common shares | (638) | $ (638) | |||||
Stock compensation expense | 16,252 | 16,252 | |||||
Shares issued under equity incentive plan, net of forfeitures (shares) | 1,172,773 | 615,013 | |||||
Shares issued under equity incentive plan, net of forfeitures | $ 507 | $ 11 | (5,146) | $ 5,642 | |||
Ending balance (shares) at Dec. 31, 2023 | 116,116,895 | 140,744,045 | |||||
Ending balance at Dec. 31, 2023 | $ 705,464 | $ 1,407 | $ 1,102,581 | $ (170,856) | $ (226,710) | $ (958) | $ 0 |
Ending balance (shares) at Dec. 31, 2023 | (24,627,150) | (24,627,150) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net (income) loss | $ 71,154 | $ 73,697 | $ (139,616) |
Net (income) loss from discontinued operations | 0 | (3,902) | 141,410 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 70,551 | 65,121 | 65,955 |
Amortization | 14,047 | 14,042 | 13,786 |
Amortization of deferred financing costs and original issue discount | 2,076 | 2,031 | 1,907 |
Debt extinguishment costs | 0 | 0 | 21,166 |
Foreign currency exchange (gain) loss | (589) | 978 | 4,716 |
Deferred income tax (benefit) provision | (17,072) | 1,652 | 4,548 |
Net loss on asset disposals | 4,137 | 3,594 | 5,666 |
Stock compensation | 16,031 | 20,632 | 31,838 |
Equity in net (income) from affiliated companies | (30,624) | (27,725) | (27,737) |
Dividends received from affiliated companies | 28,000 | 35,000 | 35,000 |
Other, net | 647 | (2,660) | (3,232) |
Working capital changes that provided (used) cash, excluding the effect of acquisitions and dispositions: | |||
Receivables | (6,093) | 5,503 | (33,476) |
Inventories | (1,399) | 9,902 | 631 |
Prepaids and other current assets | (985) | 5 | (7,827) |
Accounts payable | 2,351 | (10,127) | 10,006 |
Accrued liabilities | (14,635) | (7,448) | 12,597 |
Net cash provided by operating activities, continuing operations | 137,597 | 180,295 | 137,338 |
Net cash provided by (used in) operating activities, discontinued operations | 0 | 6,311 | (7,420) |
Net cash provided by operating activities | 137,597 | 186,606 | 129,918 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (65,335) | (58,870) | (60,045) |
Proceeds from business divestitures, net of cash | 0 | 0 | 978,449 |
Payments for business divestiture, net of cash | 0 | (3,744) | 0 |
Business combinations, net of cash acquired | 0 | (488) | (42,639) |
Other, net | 0 | 81 | (12) |
Net cash (used in) provided by investing activities, continuing operations | (65,335) | (63,021) | 875,753 |
Net cash used in investing activities, discontinued operations | 0 | 0 | (40,021) |
Net cash (used in) provided by investing activities | (65,335) | (63,021) | 835,732 |
Cash flows from financing activities: | |||
Draw down of revolving credit facilities | 14,500 | 0 | 0 |
Repayments of revolving credit facilities | (14,500) | 0 | 0 |
Issuance of long-term debt, net of original issue discount and financing fees | 0 | 0 | 897,750 |
Debt issuance costs | 0 | 0 | (1,293) |
Repayments of long-term debt | (9,000) | (9,000) | (1,430,863) |
Debt prepayment fees | 0 | 0 | (8,481) |
Proceeds from financing obligation | 0 | 0 | 16,005 |
Dividends paid to stockholders | 0 | 0 | (435,593) |
Repurchases of common shares | (78,717) | (136,741) | 0 |
Tax withholdings on equity award vesting | (3,372) | (332) | (1,470) |
Repayments of financing obligation | (2,847) | (2,692) | (1,435) |
Other, net | 438 | 579 | 2,291 |
Net cash used in financing activities, continuing operations | (93,498) | (148,186) | (963,089) |
Net cash used in financing activities, discontinued operations | 0 | 0 | (1,144) |
Net cash used in financing activities | (93,498) | (148,186) | (964,233) |
Effect of exchange rate changes on cash and cash equivalents | (1,319) | (5,368) | 2,253 |
Net change in cash and cash equivalents | (22,555) | (29,969) | 3,670 |
Cash and cash equivalents at beginning of period | 110,920 | 140,889 | 137,219 |
Cash and cash equivalents at end of period | $ 88,365 | $ 110,920 | $ 140,889 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |||
Aug. 23, 2021 | Aug. 04, 2021 | Dec. 14, 2020 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid on common stock (in dollars per share) | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 |
Background and Basis of Present
Background and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | 1. Background and Basis of Presentation: Description of Business Ecovyst Inc. and subsidiaries (the “Company” or “Ecovyst”) is a leading integrated and innovative global provider of advanced materials, specialty catalysts and services. The Company supports customers globally through its strategically located network of manufacturing facilities. The Company believes that its products and services contribute to improving the sustainability of the environment. Basis of Presentation On December 14, 2020, the Company completed the sale of its Performance Materials business for $650,000. The financial results of this business are presented as discontinued operations in the consolidated financial statements for the 2021 period presented. On August 1, 2021, the Company completed the sale of its Performance Chemicals business for $1,100,000. The financial results of this business are presented as discontinued operations in the consolidated financial statements for the 2022 and 2021 periods presented. See Note 4 to these consolidated financial statements for further information on these transactions. The Company has two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications; and Advanced Materials & Catalysts provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through the Zeolyst Joint Venture, innovates and supplies zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical processes. Effective November 28, 2023, the Company renamed the Catalyst Technologies segment to Advanced Materials & Catalysts. Beginning with the year ended December 31, 2023, the segment results and disclosures included in the Company’s consolidated financial statements reflect the new segment name for all periods presented. This change to the Company’s segment name does not change the Company’s consolidated balance sheets, statements of income or cash flows for the prior periods or the way the Company’s CODM evaluated the business. The Company’s regeneration services product group, which is a part of the Company’s Ecoservices segment, typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months. These demand fluctuations result in higher sales and working capital requirements in the second and third quarters. The notes to the consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies: Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its controlled subsidiaries. Investments in affiliated companies are recorded at cost plus the Company’s equity in their undistributed earnings. All intercompany transactions have been eliminated. Foreign Currency Translation. All assets and liabilities of foreign subsidiaries and affiliated companies are translated to U.S. dollars using exchange rates in effect at the balance sheet date. Income and expense items are translated at average exchange rates during the year. Adjustments resulting from translation of the balance sheets and statements of income are included in stockholders’ equity as part of accumulated other comprehensive income (loss), and are included in earnings only upon the sale or liquidation of the underlying foreign subsidiary or affiliated company. Foreign currency transaction gains and losses are recognized in earnings based on differences between foreign currency exchange rates on the transaction date and on the settlement date. Adjustments resulting from translation of certain intercompany loans, which are not considered permanent and are denominated in foreign currencies, are included in other expense (income), net in the consolidated statements of income. The Company considers intercompany loans to be of a permanent or long-term nature if management expects and intends that the loans will not be repaid. For the years ended December 31, 2023, 2022 and 2021, all intercompany loan arrangements were determined to be non-permanent based on management’s intention as well as actual lending and repayment activity. Therefore, the foreign currency transaction gains or losses associated with the int ercompany loans were recorded in the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021. Net foreign currency exchange (gains) and losses included in other expense (income), net were $(589), $978 and $4,716 for the years ended December 31, 2023, 2022 and 2021 , respectively. The n et foreign currency (gains) and losses realized during these years were primarily driven by the non-permanent intercompany debt denominated in local currency and translated to U.S. dollars. Cash and Cash Equivalents. Cash and cash equivalents include highly liquid investments with original terms to maturity of 90 days or less from the time of purchase. Restricted Cash. Restricted cash, which is restricted as to withdrawal or usage, is classified separately from cash and cash equivalents on the Company’s consolidated balance sheets. The Company had no restricted cash balances as of December 31, 2023 and 2022. Accounts Receivable and Allowance for Credit Losses. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable and is reviewed during each reporting period over their contractual life. The Company recognizes an allowance for credit losses based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable and assessments of current creditworthiness of customers. Account balances are charged against the allowance when the Company believes it is probable that the associated receivables will not be recovered. If the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments, additional allowances may be required. The Company does not have any off-balance sheet credit exposure related to its customers. The Company’s allowance for credit losses was not material as of December 31, 2023 and 2022. Inventories. Certain domestic inventories are stated at the lower of cost or market and valued using the last-in, first-out (“LIFO”) method. All other inventories are stated at the lower of cost or net realizable value and valued using the weighted average cost or first-in, first-out (“FIFO”) methods. Property, Plant and Equipment. Property, plant and equipment are carried at cost and include expenditures for new facilities, major renewals and betterments. The Company capitalizes the cost of furnace rebuilds as part of property, plant and equipment. Maintenance, repairs and minor renewals are charged to expense as incurred. The Company capitalizes certain internal costs associated with the implementation of purchased software. When property, plant and equipment is retired or otherwise disposed of, the net carrying amount is eliminated with any gain or loss on disposition recognized in earnings at that time. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets, which generally range from 15 to 33 years for buildings and improvements and 3 to 10 years for machinery and equipment. Leasehold improvements are depreciated using the straight-line method based on the shorter of the useful life of the improvement or remaining lease term. The Company capitalizes the interest cost associated with the development and construction of significant new plant and equipment and depreciates that amount over the lives of the related assets. Capitalized interest recorded during the years ended December 31, 2023, 2022 and 2021 was $1,964, $1,442 and $1,235, respectively. Lea ses . The Company has operating and finance lease agreements with remaining lease terms as of December 31, 2023 of up to 18 years, including leases of land, buildings, railcars, vehicles, manufacturing equipment and general office equipment. Some leases include options to terminate or extend for one or more years. These options are incorporated in the Compan y’s lease term when it is reasonably certain that the option will be exercised. Some leases include options to purchase, which the Company assesses under the guidance to determine if these leases should be classified as finance lease agreements. When the Company enters into an arrangement, at inception, the Company determines if the arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of the Company’s lease arrangements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance). The Company accounts for the lease and non-lease components separately based on the estimated standalone price of each component. Certain of the Company’s lease agreements include rental payments that are adjusted periodically for an index or rate and these are initially measured using the index or rate in effect at the commencement date. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes a right-of-use lease asset and lease liability at the lease commencement date based on the present value of the remaining lease payments over the lease term. The Company assesses its leasing arrangements to determine the rate implicit in the lease arrangement. Historically, the Company’s leasing arrangements do not contain the information necessary to determine the rate implicit in the lease. As such, the Company utilizes its incremental borrowing rate over the relevant lease term, which is the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The incremental borrowing rate is determined at the lease commencement date and is developed utilizing a readily available market interest rate curve adjusted for the Company’s credit quality. The Company has elected to use a portfolio approach to apply its incremental borrowing rate to individual leases based on lease term and geographic jurisdiction. Short-term leases, which have an initial term of twelve months or less, are not recorded on the Company’s balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for financing leases is bifurcated into two components, with the amortization expense component of the right-of-use asset recognized on a straight-line basis and the interest expense component recognized using the effective interest method over the lease term. The amortization expense component of the right-of-use lease asset is included in cost of goods sold and in selling, general and administrative expenses and the interest expense component is included in interest expense, net on the consolidated statements of income. Spare Parts. Spare parts are maintained by the Company’s facilities to keep machinery and equipment in working order. Spare parts are capitalized and included in other long-term assets. Spare parts are measured at cost and are not depreciated or expensed until utilized; however, reserves may be provided on aged spare parts. When a spare part is utilized as part of an improvement to property, plant and equipment, the carrying value is depreciated over the applicable life once placed in service. Otherwise, the spare part is expensed and charged as a cost of production when utilized. Investments in Affiliated Companies. Investments in affiliated companies are accounted for using the equity method of accounting if the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investments in equity-method investees are recorded in the consolidated balance sheets as investments in affiliated companies, and the Company’s share of the investees’ earnings or losses, together with other than temporary impairments in value, is recorded as equity in net income from affiliated companies in the consolidated statements of income. Any differences between the Company’s cost of an equity method investment and the underlying equity in the net assets of the investment, such as fair value step-ups resulting from acquisitions, are accounted for according to their nature and impact the amounts recognized as equity in net income from affiliated companies in the consolidated statements of income. The Company evaluates all distributions received from its equity method investments using the nature of distribution approach. Under this approach, the Company evaluates the nature of activities of the investee that generated the distribution. The distributions received are either classified as a return on investment, which is presented as a component of operating activities on the Company’s consolidated statements of cash flows, or as a return of investment, which is presented as a component of investing activities on the Company’s consolidated statements of cash flows. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Goodwill and Intangible Assets. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company is required to test goodwill associated with each of its reporting units for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that goodwill may be impaired. The Company performs its annual goodwill impairment test as of October 1. Goodwill is tested for impairment at the reporting unit level. In performing tests for goodwill impairment, the Company is able to use its discretion to first perform an optional qualitative assessment about the likelihood of the carrying value of a reporting unit exceeding its fair value. The qualitative assessment need not be applied to all reporting units. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount based on the qualitative assessment, the Company will perform a quantitative goodwill impairment test to identify the potential goodwill impairment and measure the amount of the goodwill impairment loss, if any, to be recognized for that reporting unit. For the annual assessments in 2023 and 2022, the Company bypassed the option to perform the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test for each of its reporting units. The quantitative test identifies both the potential existence of impairment and the amount of impairment loss. In applying the quantitative test, the Company calculates and compares the reporting unit’s estimated fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit and the loss establishes a new basis in the goodwill. Subsequent reversal of an impairment loss is not permitted. For intangible assets other than goodwill, definite-lived intangible assets are amortized over their respective estimated useful lives. Intangible assets with indefinite lives are not amortized, but rather are tested for impairment at least annually or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of the intangible asset below its carrying amount. The Company tests its indefinite-lived intangible assets as of October 1 of each year in conjunction with its annual goodwill impairment test. Impairment Assessment of Long-Lived Assets. The Company performs an impairment review of property, plant and equipment and definite-lived intangible assets when facts and circumstances indicate that the carrying value of an asset or asset group may not be recoverable from its undiscounted future cash flows. When evaluating long-lived assets for impairment, if the carrying amount of an asset or asset group is found not to be recoverable, a potential impairment loss may be recognized. An impairment loss is measured by comparing the carrying amount of the asset or asset group to its fair value. Fair value is determined using quoted market prices when available, or other techniques including discounted cash flows. The Company’s estimates of future cash flows involve assumptions concerning future operating performance, economic conditions and technological changes that may affect the future useful lives of the assets. Derivative Financial Instruments. The Company utilizes certain derivative financial instruments to enhance its ability to manage risk, including exposure to interest rate fluctuations that exist as part of ongoing business operations. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. All derivatives designated as hedges are recognized on the consolidated balance sheets at fair value. The Company may designate a derivative as a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge), a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge), a foreign currency fair-value or cash-flow hedge (foreign currency hedge), or a hedge of a net investment in a foreign operation (net investment hedge). The Company’s hedging strategies include derivatives designated as cash flow hedges and net investment hedges. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income and subsequently reclassified into earnings in the same period(s) in which the hedged transaction affects earnings. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a hedge of a net investment in a foreign operation are recorded in the foreign currency translation adjustment account within accumulated other comprehensive income, where the associated gains and losses will remain until such time that the hedged net investment (foreign subsidiary) is sold or liquidated. Changes in the fair value of a derivative that is not designated or does not qualify as a hedge are recorded in the consolidated statements of income. Cash flows from derivative instruments are reported in the same cash flow category as the cash flows from the items being hedged. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. The Company also formally assesses whether each hedging relationship is highly effective in achieving offsetting changes in fair values or cash flows of the hedged item during the period, both at the inception of the hedge and on an ongoing basis. If it is determined that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly-effective hedge, hedge accounting is discontinued with respect to that derivative prospectively. Fair Value Measurements. The Company measures fair value using the guidelines under U.S. generally accepted accounting principles (“GAAP”). An asset’s fair value is defined as the price at which the asset could be exchanged in a current transaction between market participants. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor. The carrying values of cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. See Note 6 to these consolidated financial statements for further information regarding the application of fair value measurements and Note 16 regarding the fair value of debt. Treasury Stock. The Company records repurchases of its common stock for treasury at cost. Upon the reissuance of the Company’s common stock from treasury, differences between the proceeds from reissuance and the average cost of the treasury stock are credited or charged to capital in excess of par value to the extent of prior credits related to the reissuance of treasury stock. If no such credits exist, the differences are charged to retained earnings. See Note 7 of these consolidated financial statements for further information regarding the Company’s treasury stock repurchases. Revenue Recognition. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the contract with the customer; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company identifies a contract when an agreement with a customer creates legally enforceable rights and obligations, which occurs when a contract has been approved by both parties, the parties are committed to perform their respective obligations, each party’s rights and payment terms are clearly identified, commercial substance exists and it is probable that the Company will collect the consideration to which it is entitled. The Company may offer rebates to customers who have reached a specified volume of optional purchases. The Company recognizes rebates given to customers as a reduction of revenue based on an allocation of the cost of honoring rebates earned and claimed to each of the underlying revenue transactions that result in progress by the customer toward earning the rebate. Rebates are recognized at the time revenue is recorded. The Company measures the rebate obligation based on the estimated amount of sales that will result in a rebate at the adjusted sales price per the respective sales agreement. Shipping and Handling. Amounts billed to a customer in a sale transaction related to shipping and handling, if any, represent revenues earned for the goods provided and are classified as revenue. Costs related to shipping and handling of products shipped to customers are classified as cost of goods sold. See Note 5 of these consolidated financial statements for disclosures regarding the recognition of revenue for shipping and handling costs that are billed to customers. Research and Development. Research and development costs of $7,797, $7,232 and $7,499 for the years ended December 31, 2023, 2022 and 2021, respectively, were expensed as incurred and reported in selling, general and administrative expenses in the consolidated statements of income. Income Taxes. The Company operates within multiple taxing jurisdictions and is subject to tax filing requirements and potential audits within these jurisdictions. The Company uses the asset and liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. The Company evaluates its deferred tax assets each period to ensure that estimated future taxable income will be sufficient in character (e.g., capital gain versus ordinary income treatment), amount and timing, to result in their realizability. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets, unless it is more likely than not that those assets will be realized. Generally, APB 23 of ASC Topic 740, Income Taxes (“ASC 740”), provides guidance with respect to establishing deferred income taxes on earnings from foreign subsidiaries, to the extent that these earnings are considered to be available for repatriation. Further, ASC 740-30 requires that deferred taxes be established with respect to the earnings of a foreign subsidiary, unless existing tax law provides a means by which the investment in a subsidiary can be recovered tax-free. The Company has determined that it is able to repatriate the non-permanently reinvested earnings of its foreign subsidiaries in a tax-free manner. As such, the Company is able to assert, for purposes of ASC 740-30, that no deferred income taxes are needed with respect to earnings from foreign subsidiaries. The Company recognizes a financial statement benefit for positions taken for tax return purposes when it will be more likely than not (i.e. greater than 50%) that the positions will be sustained upon tax examination, based solely on the technical merits of the tax positions. Otherwise, no tax benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Tax examinations are often complex as tax authorities may disagree with the treatment of items reported by the Company and may require several years to resolve. These accrued liabilities represent a provision for taxes that are reasonably expected to be incurred on the basis of available information but which are not certain. Environmental Expenditures. Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with the Company’s capitalization policy for property, plant and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. Liabilities are recognized for remedial activities when the remediation is probable and the cost can be reasonably estimated. Recoveries of expenditures for environmental remediation are recognized as assets only when recovery is deemed probable. See Note 23 to these consolidated financial statements for further information regarding commitments and contingencies. Deferred Financing Costs. Financing costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the related debt instruments on the Company’s consolidated balance sheets. Deferred financing costs are amortized as interest expense using the effective interest method over the respective terms of the associated debt instruments. Stock-Based Compensation. The Company applies the fair value based method to account for stock options, restricted stock awards, restricted stock units and performance stock units issued in connection with its equity incentive plans. Stock-based compensation expense is recognized on a straight-line basis over the vesting periods of the respective awards, and the Company accounts for forfeitures of equity incentive awards as they occur. In connection with the vesting of restricted stock awards, restricted stock units and performance stock units, shares of common stock may be delivered to the Company by employees to satisfy withholding tax obligations at the instruction of the employee award holders. These transactions when they occur are accounted for as stock repurchases by the Company, with the shares returned to treasury stock at a cost representing the payment by the Company of the tax obligations on behalf of the employees in lieu of shares for the vesting event. See Note 21 to these consolidated financial statements regarding compensation expense associated with the Company’s equity incentive awards. Pensions and Postretirement Benefits. The Company sponsors two funded defined benefit pension plans that cover certain employees. Benefits for the plans are generally based on average final pay and years of service. The Company’s funding policy is to fund the minimum required contributions consistent with statutory requirements based on actuarial computations utilizing the projected unit credit method of calculation. The pension plans’ assets include equity and fixed income securities. Certain assumptions are made regarding the occurrence of future events affecting pension costs, such as mortality, withdrawal, disa blement and retirement, changes in compensation and benefits, and discount rates to reflect the time value of money. The major elements in determining pension income and expense are pension liability discount rates and the expected return on plan assets. The Company references rates of return on high quality, fixed income investments when estimating the discount rate, and the expected period over which payments will be made based upon historical experience. The long-term rate of return used to calculate the expected return on plan assets is the average rate of return estimated to be earned on invested funds for providing pension benefits. In addition to pension benefits, the Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The Company uses explicit assumptions using the best estimates available of the plan’s future experience. Principal actuarial assumptions include: discount rates, present value factors, retirement age, participation rates, mortality rates, cost trend rates, Medicare reimbursement rates and per capita claims cost by age. Current interest rates as of the measurement date are used for discount rates in present value calculations. The Company also has defined contribution plans covering domestic employees of the Company and certain subsidiaries. Contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company and legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a loss has been incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed, including the approximate term, how the guarantee arose, and the events or circumstances that would require the guarantor to perform under the guarantee. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Correction of Errors. Correction of errors have been made to the historical presentation of the consolidated financial statements and the notes accompanying the consolidated financial statements. During the preparation of the condensed consolidated financial statements for the period ended June 30, 2023, the Company identified a presentation error in the components of accumulated other comprehensive income (loss) that originated in the year ended December 31, 2021 and remained uncorrected through the quarter ended March 31, 2023. As a result, the presentation of accumulated other comprehensive income (loss) in Note 7 was corrected by revising the opening balances as follows: Defined benefit and other postretirement plans Net gain (loss) from hedging activities Foreign currency translation As reported, December 31, 2021 $ 14,808 $ 2,254 $ (22,854) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2021 $ 2,168 $ 290 $ (8,250) As reported, December 31, 2022 $ 12,132 $ 26,636 $ (32,776) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2022 $ (508) $ 24,672 $ (18,172) This classification error within accumulated other comprehensive income (loss) did not impact total accumulated other comprehensive income (loss) for the periods included in these consolidated financial statements. Additionally, there was no impact on the consolidated statements of income and other comprehensive income (loss), consolidated balance sheets and consolidated statements of cash flows for the periods included in these consolidated financial statements. The Company assessed the materiality of this presentation error and concluded it was not material to the Company’s previously issued financial statements. Net income for |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | 3. New Accounting Standards: Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance to improve disclosures related to incomes taxes. This new guidance requires public business entities to disaggregate information on the effective tax rate reconciliation and income taxes paid to provide greater transparency. Public business entities will be required to provide additional information in specified categories related to effective tax rate reconciliation in tabular form and provide income taxes paid by jurisdictions, with further disaggregation needed if amounts exceed 5% of the total. The new guidance is effective for fiscal years beginning after December 15, 2024. The Company will adopt the new guidance effective January 1, 2025 as required. In November 2023, the FASB issued guidance to improve the disclosures related to public business entities reportable segments. This new guidance requires entities to provide information regarding significant segment expenses, especially those segment expenses that are regularly reported to the Company’s chief operating decision maker (the Company’s Chief Executive Officer), or CODM. The guidance also require public entities to disclose the nature, type and amounts of other segment items by reportable segment. Public business entities will also have to report all annual disclosures about segments profits or losses that are required by ASC 280 on an interim basis, including the significant segment expenses and other segment items. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will adopt the new guidance effective January 1, 2024 as required. In October 2023, the FASB issued guidance to amend either presentation or disclosure requirements related to fourteen subtopics in the FASB Accounting Standards Codification, that are currently in the SEC Regulation S-X or Regulation S-K. The new guidance was issued in response to the SEC’s ruling on disclosure simplification. For entities subject to existing SEC disclosure requirements, the effective date of each amendment of the topics will be the date that the SEC removes the related disclosure from Regulation S-X or Regulation S-K. The guidance must be applied prospectively, with no early adoption permitted for entities subject to those existing SEC disclosures. The Company is currently evaluating the impact of the new guidance as it pertains to the fourteen subtopics that would impact the business and will apply prospectively once in effect. In August 2023, the FASB issued guidance for entities that meet the definition of a joint venture or a corporate joint venture, to adopt a new basis of accounting upon the formation of the joint venture. The new guidance requires the initial measurement of contributed net assets and liabilities at fair value on the formation date, recognition of goodwill for the difference between the fair value of the joint venture’s equity and net assets, and disclosures about the nature and financial impact of the transaction. The new guidance requires prospective application and is effective for all joint ventures that are formed on or after January 1, 2025, with early adoption permitted. Joint ventures that formed before January 1, 2025 may elect to retrospectively apply the new guidance. The Company will apply the guidance to any new joint ventures formed after the effective date. Accounting Standards Recently Adopted In October 2021, the FASB issued guidance that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with revenue recognition guidance. Under current GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. The new guidance creates an exception to the general recognition and measurement principles related to business combinations, and is expected to result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree. The new guidance is effective for business combinations occurring during fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted the new guidance effective January 1, 2023 as required, and will apply the guidance prospectively to business combinations that occur after the adoption date. In March 2020 and January 2021, the FASB issued guidance to address certain accounting consequences from the anticipated transition from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. The time period through which the practical expedients provided in the guidance is available was set to expire on December 31, 2022, but was extended through December 31, 2024 by the FASB in December 2022. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index of the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In February 2023, the Company amended the 2021 Term Loan Facility (as defined below), the ABL Facility (as defined below) and all existing interest rate caps agreements to replace LIBOR with a secured overnight financing rate (“SOFR”) as the benchmark interest rate. See Note 16 and Note 18 to these consolidated financial statements for further information. The Company utilized the practical expedients under the guidance with respect to the transition of its debt facilities and interest rate hedging arrangements to SOFR, with no impact to its consolidated financial statements. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | 4. Divestitures: Performance Materials On December 14, 2020, the Company completed the sale of its Performance Materials business to Potters Buyer, LLC (the “Purchaser”), an affiliate of The Jordan Company, L.P., for a purchase price of $650,000. The net cash proceeds to the Company from the sale were $624,256 after certain customary adjustments for indebtedness, working capital and cash at the closing of the transaction. The Company classified the proceeds within net cash provided by (used in) investing activities – continuing operations in the consolidated statements of cash flows and used the net proceeds from the sale as well as cash on hand to pay down debt and issue a special cash dividend of $1.80 per share to stockholders. During the year ended December 31, 2021 , the Company incurred transaction costs of $2,054 and stock-based compensation expense of $1,970, and an associated tax benefit of $988 related to the Performance Materials divestiture, as well as a provision to return benefit of $5,429 related to the filing of the 2020 tax returns filed in the fourth quarter of 2021, which is included in loss from discontinued operations, net of tax. Upon the close of the transaction, the Company entered into a Transition Services Agreement with the Purchaser pursuant to which the Purchaser was receiving certain services to provide for the orderly transition of various functions and processes after the closing of the transaction. The services under the Transition Services Agreement include information technology, accounting, tax, financial services, human resources, facilities, and other administrative support services. These services were provided at cost for a period of nine The Company billed $3,314 under the Transition Services Agreement to the Purchaser during the year ended December 31, 2021. Those billings are included in selling, general and administrative expenses on the consolidated financial statements. Additionally, in connection with the transaction, the Company entered into various supply agreements with the Purchaser. Cash flows associated with these transition services and supply agreements were not material to the Company’s results of operations. Performance Chemicals On February 28, 2021, the Company entered into a definitive agreement to sell its Performance Chemicals business to Sparta Aggregator L.P. (the “Buyer”), a partnership established by Koch Minerals & Trading, LLC and Cerberus Capital Management, L.P. for a purchase price of $1,100,000 subject to certain adjustments including indebtedness, cash, working capital and transaction expenses. The Company completed the sale of its Performance Chemicals business effective on August 1, 2021. The net cash proceeds to the Company from the sale were $978,449 after certain customary adjustments for indebtedness, working capital and cash at the closing of the transaction. The Company classified the proceeds within net cash provided by (used in) investing activities – continuing operations in the consolidated statements of cash flows and used the net proceeds from the sale as well as cash on hand to pay down debt and issue a special cash dividend of $3.20 per share to stockholders. Prior to the closing of the transaction, the di sposal group was tested for recoverability as of each of the balance sheet dates since meeting the discontinued operations criteria, and the Company recognized an estimated disposal loss of $109,584 during the year ended December 31, 2021, which was included in net loss from discontinued operati ons, net of tax on the consolidated statements of income for the respective periods. During the year ended December 31, 2021, the Company incurred transaction costs of $35,402 and stock-based compensation expense of $5,691 in connection with the sale, which is included in loss from discontinued operations, net of tax. The final pre-tax loss on the sale of the Performance Chemicals business was $150,230, which is included in net (loss) income from discontinued operations, net of tax in the Company’s consolidated statements of income for the year ended December 31, 2021 . The following is a reconciliation of the loss recorded on the sale: Net proceeds received from the sale of the Performance Chemicals business $ 978,449 Transaction costs (35,402) Net assets derecognized (1,093,277) Loss on sale of the Performance Chemicals business $ (150,230) In connection with the sale of the Performance Chemicals business and the related loss, as noted above, the Company has recognized a tax benefit of $37,255 within net loss from discontinued operations, net of tax on the consolidated statement of income for the year ended December 31, 2021. In March 2022, the Company made a payment to the buyer for $3,744, representing the final adjustments to the sale price. The Company classified the payment within net cash used in investing activities – continuing operations in the consolidated statements of cash flows. During the year ended December 31, 2022, the Company recognized $3,902 of net income from discontinued operations, net of tax, related to the sale of the Performance Chemicals business for an income tax benefit upon the finalization of the Company’s U.S. income tax returns, partially offset by a tax indemnity claim resulting from the transaction. The following table summarizes the results of discontinued operations related to Performance Chemicals for the periods presented: Years ended 2022 2021 Sales $ — $ 389,870 Cost of goods sold — 284,220 Selling, general and administrative expenses — 29,856 Goodwill impairment charge — 75,080 Other operating expense, net (1) 2,409 14,765 Loss on sale of the Performance Chemicals business — 150,230 Operating loss (2,409) (164,281) Equity in net income from affiliated companies — (111) Interest expense, net (2) — 10,730 Other income, net — (6,210) Loss from discontinued operations before income tax (2,409) (168,690) Benefit for income taxes (6,311) (24,886) Loss from discontinued operations, net of tax $ 3,902 $ (143,804) (1) The Company reclassified transaction costs that were previously recorded to this line item and included those charges in the line item Loss on sale of the Performance Chemicals business during the year ended December 31, 2021 . (2) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Refer to Note 16 for additional details on the repayment of outstanding debt. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had required refinancing of debt with repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363. Net income attributable to the noncontrolling interest related to the Performance Chemicals business, net of tax was $333 for the year ended December 31, 2021. Net loss attributable to Ecovyst Inc., related to the Performance Chemicals business, net of tax was $(144,137) for the year ended December 31, 2021. Financing Obligation In connection with the divestiture of the Performance Chemicals business, the Company entered into a five-year contract manufacturing agreement effective on August 2, 2021 with PQ Silicas UK Ltd., a subsidiary of the Buyer, related to a facility in Warrington, United Kingdom. Pursuant to this agreement, the Buyer will manufacture and sell advanced silica finished good products to the Company, which are finished good products sold within the Company’s Advanced Materials & Catalysts segment. Additionally, certain machinery, equipment, and other tangible personal property assets identified in the Agreement (“Catalyst Production Assets”) owned by the Buyer will be used exclusively in the manufacture of advanced silica products for the Company. The Company did not meet the requirements for a sale-leaseback transaction as described in Accounting Standards Codification 842-40, Leases - Sale-Leaseback Transactions. Under the failed sale-leaseback accounting model, the Company is deemed under GAAP to still own the Catalyst Production Assets, which the Company must continue to reflect in its consolidated balance sheet and depreciate over the assets’ remaining useful lives. For the year ended December 31, 2021 , the Company recorded a financing obligation of £11,648 (equivalent $16,005). The table below presents the financing obligation assets and liabilities recognized on the consolidated balance sheet as of December 31, 2023 and 2022: Classification December 31, December 31, Assets Financing obligation Property, plant and equipment, net $ 19,878 $ 20,084 Total $ 19,878 $ 20,084 Liabilities Current: Financing obligation Accrued liabilities $ 2,999 $ 2,770 Noncurrent: Financing obligation Other long-term liabilities 4,927 7,532 Total $ 7,926 $ 10,302 Based on the estimated fair market value of the Catalyst Production Assets, the failed sale-leaseback accounting treatment resulted in an allocation of $16,005 of the cash proceeds from the sale to cash flows from financing activities in the consolidated statement of cash flows for the year ended December 31, 2021, due to the requirement to treat this portion of the proceeds as though it were the result of a financing obligation. The agreement has an initial term of five years, with an option to renew, as well as an “Option Bill of Sale” which provides for the transfer from the Buyer to the Company of the Catalyst Production Assets upon the Company’s exercise of a one-dollar purchase option. Payments made to the Buyer under the contact manufacturing agreement were $8,416, $7,872 and $3,395 for the years ended December 31, 2023, 2022 and 2021, respectively . Included in these payments were $2,847, $2,692 and $1,435 of principal on the financing obligation for the years ended December 31, 2023, 2022 and 2021, respectively, and $266, $336 and $185 of interest on the financing obligation for the years ended December 31, 2023 , 2022 and 2021 , respectively. Principal payments are included in financing activities and interest payments are included in operating activities on the Company’s consolidated statement of cash flows. The remaining lease term is 2.6 years with a weighted average discount rate of 2.86% as of December 31, 2023. Maturities of the financing obligation as of December 31, 2023 are as follows: Year Finance 2024 $ 3,186 2025 3,186 2026 1,860 2027 — 2028 — Thereafter — Total lease payments 8,232 Less: Interest 306 Total lease liabilities (1) $ 7,926 (1) Refer to the table above regarding the Company’s classification of financing obligation in the Company’s consolidated balance sheet as of December 31, 2023. In addition to the contract manufacturing agreement noted above, the Company also entered into certain supply agreements with the Buyer, as well as a Transition Services Agreement, pursuant to which the Buyer was receiving and performing certain services to provide for the orderly transition of various functions and processes after the closing of the transaction. The services under the Transition Services Agreement include information technology, accounting, tax, financial services, human resources, facilities, and other administrative support services. These services were provided for a period of six months, which ended in January 2022. Billings under the Transition Services Agreement to the Buyer during the years ended December 31, 2022 and 2021 were immaterial. T hose billings are included in selling, general and administrative expenses on the consolidated financial statements for the years ended December 31, 2022 and 2021 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 5. Revenue from Contracts with Customers: Revenue Recognition Model As described in Note 2, the Company applies the five-step revenue recognition model to each contract with its customers. Evidence of a contract between the Company and its customers may take the form of a master service agreement (“MSA”), a MSA in combination with an underlying purchase order, a combination of a pricing quote with an underlying purchase order or an individual purchase order received from a customer. The Company and certain of its customers enter into MSAs that establish the terms, including prices, under which orders to purchase goods may be placed. In cases where the MSA contains a distinct order for goods or contains an enforceable minimum quantity to be purchased by the customer, the Company considers the MSA to be evidence of a contract between the Company and its customer as the MSA creates enforceable rights and obligations. In cases where the MSA does not contain a distinct order for goods, the Company’s contract with a customer is the purchase order issued under the MSA. Customers of the Company may also negotiate orders via pricing quotes, which typically detail product pricing, delivery terms and payment information. When a customer procures goods under this method, the Company considers the combination of the pricing quote and the purchase order to create enforceable rights and obligations. Absent either a MSA or pricing quote, the Company considers an individual purchase order remitted by a customer to create enforceable rights and obligations. The Company identifies a performance obligation in a contract for each promised good that is separately identifiable from other promises in the contract and for which the customer can benefit from the good. The majority of the Company’s contracts have a single performance obligation, which is the promise to transfer individual goods to the customer. Single performance obligations are satisfied according to the shipping terms noted within the MSA or purchase order. The Company has certain contracts that include multiple performance obligations under which the purchase price for each distinct performance obligation is defined in the contract. These distinct performance obligations may include stand-ready provisions, which are arrangements to provide a customer assurance that they will have access to output from the Company’s manufacturing facilities, or monthly reservations of capacity fees. The Company considers stand-ready provisions and reservation of capacity fees to be performance obligations satisfied over time. Revenues related to stand-ready provisions and reservation of capacity fees are recognized on a ratable basis throughout the contract term and billed to the customer on a monthly basis. Revenue from product sales are recorded at the sales price, which includes estimates of variable consideration for which reserves are established and which result from discounts, returns or other allowances that are offered within contracts between the Company and its customers. The Company recognizes revenues when performance obligations under the terms of a contract with its customer are satisfied, which generally occurs at a point in time by transferring control of a product to the customer. The Company determines the point in time when a customer obtains control of a product and the Company satisfies the performance obligation by considering factors including when the Company has a right to payment for the product, the customer has legal title to the product, the Company has transferred possession of the product, the customer has assumed the risks and rewards of ownership of the product and the customer has accepted the product. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods. The Company does not have any significant payment terms as payment is received at, or shortly after, the point of sale. Ecoservices Contracts between the Company’s Ecoservices segment and its customers are typically evidenced by entering into a MSA which generally has a term in excess of one year. Though each MSA is unique, the terms may include performance obligations such as stand-ready provisions and minimum purchase requirements. MSAs within the Ecoservices segment may contain raw material pricing adjustments which are typically based on a commodity index or Ecoservices’ cost to acquire the commodity. The Company’s exposure to fluctuations in raw material prices is limited, as the majority of pass-through contract provisions reset based on fluctuations in the underlying raw material price. These raw material pass-through provisions reset on a periodic basis and prospectively adjust the raw material cost component of the goods sold to the customer. The Company accounts for the raw material costs on a prospective basis, as the price changes affect the future consideration of the sale of goods. Stand-ready provisions within these contracts are billed on a monthly basis, as the performance obligation resets on a monthly basis and does not carry-over to the following month. Certain of the Company’s Ecoservices MSAs contain minimum purchase requirements that expire within the calendar year. The Company reviews each contract with minimum purchase requirements to determine if the customer will meet the provisions within the current calendar year. During the years ended December 31, 2023, 2022 and 2021, there have been no material issues in which Ecoservices customers failed to meet their contractual obligations. Advanced Materials & Catalysts The Company’s Advanced Materials & Catalysts segment sells customized products to its customers through its Advanced Silicas product group. These customized products are reformulations of existing Advanced Materials & Catalysts products, tailored to meet individual customer specifications. Prior to entering into an arrangement, the Company will allow a customer to obtain a sample of goods to ensure that it meets their needs. The customer will enter into a long-term supply arrangement that outlines the specification of the products to be sold and contains terms and conditions under which purchase orders are issued. These supply arrangements typically have a duration from one Contract Assets and Liabilities A contract asset is a right to consideration in exchange for goods that the Company has transferred to a customer when that right is conditional on something other than the passage of time. A contract liability exists when the Company receives consideration in advance of the fulfillment of its performance obligations. The Company has no contract assets or material contract liabilities recorded on its consolidated balance sheets as of December 31, 2023 and 2022, respectively. Practical Expedients and Accounting Policy Elections The Company has elected to use certain practical expedients and has made certain accounting policy elections as permitted under the revenue recognition guidance. The majority of the Company’s contracts with customers are based on an individual purchase order or a MSA in combination with an individual purchase order; thus, the duration of these contracts are for one year or less. As described above, the Company’s performance obligations reset either monthly or at the end of the calendar year. The Company has made an accounting policy election to omit certain disclosures related to these performance obligations, as the initial term of the Company’s performance obligations are for a term of one year or less. The Company uses an output method to recognize revenues related to performance obligations satisfied over time. These performance obligations, as described above, are satisfied within a calendar year. As such, the Company has elected to utilize the “as-invoiced” practical expedient, which permits the Company to recognize revenue in the amount to which it has a right to invoice the customer, provided that the amount corresponds directly with the value provided by the performance obligation as completed to date. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g. when control transfers prior to delivery), they are considered fulfillment activities as opposed to separate performance obligations, and the Company recognizes revenue upon the transfer of control to the customer. Accordingly, the costs associated with these shipping and handling activities are accrued when the related revenue is recognized under the Company’s policy election. The Company does not utilize sales-based commissions plans, and as a result, the Company does not capitalize any costs which could be considered incremental costs of obtaining a contract. Sales, value added and other taxes the Company collects concurrent with revenue producing activities are excluded from revenues. Disaggregated Revenue The Company’s primary means of disaggregating revenues is by reportable segments, which can be found in Note 13 to these consolidated financial statements. The Company’s portfolio of products is integrated into a variety of end uses, which are described in the table below. Key End Uses Key Products Clean fuels, emission control & other • Refining hydrocracking catalysts • Emission control catalyst supports • Catalyst supports used in production of sustainable fuels such as renewable diesel • Catalyst used in the production of sustainable aviation fuels • Catalyst activation • Aluminum sulfate solution • Ammonium bisulfite solution Polyethylene, polymers & engineered plastics • Catalysts for high-density polyethylene and chemicals syntheses • Antiblock for film packaging • Catalyst for advanced recycling Regeneration and treatment services • Sulfuric acid regeneration services • Treatment services Industrial, mining & automotive • Sulfuric acid for mining • Sulfur derivatives for industrial production • Sulfuric derivatives for nylon production The following tables disaggregate the Company’s sales, by segment and end uses, for the years ended December 31, 2023, 2022 and 2021, respectively: Year ended December 31, 2023 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 29,850 $ — $ 29,850 Polyethylene, polymers & engineered plastics — 106,273 106,273 Regeneration and treatment services (1) 354,606 — 354,606 Industrial, mining & automotive 200,388 — 200,388 Total segment sales $ 584,844 $ 106,273 $ 691,117 Year ended December 31, 2022 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 28,966 $ — $ 28,966 Polyethylene, polymers & engineered plastics — 117,687 117,687 Regeneration and treatment services (1) 342,645 — 342,645 Industrial, mining & automotive 330,861 — 330,861 Total segment sales $ 702,472 $ 117,687 $ 820,159 Year ended December 31, 2021 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 25,673 $ — $ 25,673 Polyethylene, polymers & engineered plastics — 110,688 110,688 Regeneration and treatment services (1) 262,026 — 262,026 Industrial, mining & automotive 212,814 — 212,814 Total segment sales $ 500,513 $ 110,688 $ 611,201 (1) As described in Note 1 to these consolidated financial statements, the Company experiences seasonal sales fluctuations to customers in the regeneration services product group. (2) Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 10 to these consolidated financial statements for further information). |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements: Fair values are based on quoted market prices when available. When market prices are not available, fair values are generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality. In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair values using methods, models and assumptions that management believes a hypothetical market participant would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment that becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used. The Company’s financial assets and liabilities carried at fair value have been classified based upon a fair value hierarchy. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). The classification of an asset or a liability is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows: • Level 1—Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. • Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves. • Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023 and 2022, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative assets: Interest rate caps (Note 18) $ 19,021 $ — $ 19,021 $ — Derivative liabilities: Interest rate caps (Note 18) $ 2,496 $ — $ 2,496 $ — December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative assets: Interest rate caps (Note 18) $ 34,374 $ — $ 34,374 $ — Derivative liabilities: Interest rate caps (Note 18) $ 2,071 $ — $ 2,071 $ — Derivative contracts Derivative assets and liabilities can be exchange-traded or traded over-the-counter (“OTC”). The Company generally values exchange-traded derivatives using models that calibrate to market transactions and eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, forward curves, measures of volatility, and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as forward contracts, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. As of December 31, 2023, the Company had interest rate caps that were fair valued using Level 2 inputs. In addition, the Company applies a credit valuation adjustment to reflect credit risk which is calculated based on credit default swaps. To the extent that the Company’s net exposure under a specific master agreement is an asset, the Company utilizes the counterparty’s default swap rate. If the net exposure under a specific master agreement is a liability, the Company utilizes a default swap rate comparable to Ecovyst. The credit valuation adjustment is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the Company’s liabilities or that a market participant would be willing to pay for the Company’s assets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders' Equity: Accumulated Other Comprehensive Income (Loss) The stockholders’ equity footnote disclosures have been revised to correct a presentation error in the components of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021. See Note 2 to these consolidated financial statements for further information on the reclassification and correction of errors in historical presentation. The following table presents the components of accumulated other comprehensive income (loss), net of tax, as of December 31, 2023 and 2022: December 31, 2023 2022 Amortization and unrealized gains on pension and postretirement plans, net of tax of $(4,344) and $(4,078) $ 612 $ (508) Net changes in fair values of derivatives, net of tax of $(4,385) and $(9,057) 12,546 24,672 Foreign currency translation adjustments, net of tax of $8,177 and $8,177 (14,116) (18,172) Accumulated other comprehensive (loss) income $ (958) $ 5,992 The following table presents the tax effects of each component of other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021: Years ended 2023 2022 2021 Pre-tax amount Tax benefit/ After-tax amount Pre-tax amount Tax benefit/ After-tax amount Pre-tax amount Tax benefit/ After-tax amount Defined benefit and other postretirement plans: Net gain (loss) $ 1,511 $ (297) $ 1,214 $ (3,344) $ 826 $ (2,518) $ 12,976 $ (3,272) $ 9,704 Net prior service cost (125) 31 (94) (210) 52 (158) (232) 58 (174) Benefit plans, net 1,386 (266) 1,120 (3,554) 878 (2,676) 12,744 (3,214) 9,530 Net (loss) gain from hedging activities (17,312) 5,186 (12,126) 33,194 (8,812) 24,382 3,885 (971) 2,914 Foreign currency translation (1) 4,056 — 4,056 (9,922) — (9,922) (9,202) 6,954 (2,248) Other comprehensive (loss) income $ (11,870) $ 4,920 $ (6,950) $ 19,718 $ (7,934) $ 11,784 $ 7,427 $ 2,769 $ 10,196 (1) The income tax benefit included in other comprehensive income for the year ended December 31, 2021 is attributed to the portion of foreign currency translation associated with the Company’s cross-currency interest rate swaps, for which the tax effect was based on the applicable U.S. deferred income tax rate. In March 2021, as a result of the Performance Materials and Performance Chemicals divestitures, the Company settled its cross-currency swaps. The following table presents the changes in accumulated other comprehensive income (loss), net of tax, by component for the years ended December 31, 2023 and 2022: Defined benefit Net gain (loss) from hedging activities Foreign Total December 31, 2021 $ 2,168 $ 290 $ (8,250) $ (5,792) Other comprehensive income (loss) before reclassifications (2,832) 23,868 (9,922) 11,114 Amounts reclassified from accumulated other comprehensive income (1) 156 514 — 670 Net current period other comprehensive income (loss) (2,676) 24,382 (9,922) 11,784 December 31, 2022 (508) 24,672 (18,172) 5,992 Other comprehensive income (loss) before reclassifications 1,085 5,031 4,056 10,172 Amounts reclassified from accumulated other comprehensive income (1) 35 (17,157) — (17,122) Net current period other comprehensive income (loss) 1,120 (12,126) 4,056 (6,950) December 31, 2023 $ 612 $ 12,546 $ (14,116) $ (958) (1) See the following table for details about these reclassifications. Amounts in parentheses indicate debits. The following table presents the reclassifications out of accumulated other comprehensive income for the years ended December 31, 2023 and 2022. Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item in the Years ended 2023 2022 Amortization of defined benefit and other postretirement plans: Net prior service credit $ (125) $ (210) Other (expense) income (2) Net loss 59 3 Other (expense) income (2) (66) (207) Total before tax 31 51 Tax benefit $ (35) $ (156) Net of tax Gains and losses on cash flow hedges: Interest rate caps $ 22,731 $ (683) Interest expense (5,574) 169 Tax benefit (expense) 17,157 (514) Net of tax Total reclassifications for the period $ 17,122 $ (670) Net of tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income (loss) components are components of net periodic pension and other postretirement cost (see Note 20 to these consolidated financial statements for further information). Treasury Stock Repurchases 2020 Stock Repurchase Program On March 12, 2020, the Company’s Board of Directors (the “Board”) approved a plan to purchase up to $50,000 of the Company’s common stock under a stock repurchase program approved by the Board. Under the plan, the Company could repurchase shares from time to time for cash in open market transactions or in privately negotiated transactions in accordance with applicable federal securities laws. The Company determined the timing and the amount of any repurchases based on its evaluation of market conditions, share price and other factors. The stock repurchase program expired in March 2022, with no repurchases made in 2022 through the expiration of the program, nor during the year ended December 31, 2021. 2022 Stock Repurchase Program On April 27, 2022, the Board approved a stock repurchase program that authorized the Company to purchase up to $450,000 of the Company’s common stock over the four other factors. During the year ended December 31, 2023, the Company repurchased 541,494 shares on the open market at an average price of $9.85 per share, for a total of $5,333, excluding brokerage commissions and accrued excise tax. Additionally, in connection with secondary offerings of the Company’s common stock in March and May 2023, the Company repurchased 7,000,000 shares of its common stock sold in the offerings from the underwriters at a weighted average price of $10.48 per share concurrently with the closing of the offerings, for a total of $73,373, excluding accrued excise tax. As of December 31, 2023, $234,592 was available for additional share repurchases under the program. The Company accrued excise tax of $638 related to these repurchases, net of shares issued under the Company’s equity incentive program during the year ended December 31, 2023 (see Note 19 to these consolidated financial statements for further information). This amount is included in accrued liabilities in the consolidated balance sheet and is treated by the Company as a cost of the treasury stock transactions in equity. During the year ended December 31, 2022, the Company repurchased 1,970,763 shares on the open market at an average price of $9.82 per share, for a total of $19,356, excluding brokerage commissions. Additionally, in connection with secondary offerings of the Company’s common stock in August and November 2022, the Company repurchased 14,500,000 shares of its common stock sold in the offerings from underwriters at a weighted average price of $8.09 per share concurrently with the closing of the offerings, for a total of $117,346. Tax Withholdings on Equity Award Vesting In connection with the vesting of restricted stock awards, restricted stock units and performance stock units, shares of common stock may be delivered to the Company by employees to satisfy withholding tax obligations at the instruction of the employee award holders. These transactions, when they occur, are accounted for as stock repurchases by the Company, with the shares returned to treasury stock at a cost representing the payment by the Company of the tax obligations on behalf of the employees in lieu of shares for the vesting unit. There were 315,635 and 32,058 shares delivered to the Company to cover tax payments for the year ended December 31, 2023 and2022 , respectively and the fair value of those shares withheld to cover tax payments were $3,372 and $332 for the years ended December 31, 2023 and 2022 , respectively. Dividends Paid |
Other Operating Expense, Net
Other Operating Expense, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | 8. Other Operating Expense, Net: A summary of other operating expense, net is as follows: Years ended 2023 2022 2021 Amortization expense $ 10,565 $ 10,562 $ 10,321 Transaction and other related costs 2,954 6,988 2,268 Restructuring, integration and business optimization costs (1) 2,655 11,566 3,866 Net loss on asset disposals 4,137 3,594 5,666 Other, net 1,789 2,201 2,152 $ 22,100 $ 34,911 $ 24,273 (1) During the year ended December 31, 2022, the Company’s results were impacted by costs associated with severance charges for certain former executives and employees. The severance charges were not related to a specific restructuring plan of the Company, but rather were incurred primarily in connection with the leadership transition in April 2022 and the retirement of several executives. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 9. Inventories, Net: Inventories, net are classified and valued as follows: December 31, 2023 2022 Finished products and work in process $ 41,658 $ 39,909 Raw materials 3,457 4,453 $ 45,115 $ 44,362 Valued at lower of cost or market: LIFO basis $ 24,815 $ 25,258 Valued at lower of cost and net realizable value: FIFO or average cost basis 20,300 19,104 $ 45,115 $ 44,362 The domestic inventory acquired as part of a previous business combination is valued based on the LIFO method. Therefore, the fair value allocated to the acquired LIFO inventory was treated as the new base inventory value. If inventories valued under the LIFO basis had been valued using the FIFO method, inventories would have been $3,529 and $7,002 lower than reported as of December 31, 2023 and 2022, respectively, driven primarily by the purchase accounting fair value step-up of the LIFO inventory base value associated with the business combination. |
Investments in Affiliated Compa
Investments in Affiliated Companies | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | 10. Investments in Affiliated Companies: The Company accounts for investments in affiliated companies under the equity method. Affiliated companies accounted for on the equity basis as of December 31, 2023 are as follows: Company Country Percent Zeolyst International USA 50% Zeolyst C.V. Netherlands 50% Following is summarized information of the combined investments (1) : December 31, 2023 2022 Current assets $ 291,825 $ 278,330 Noncurrent assets 183,717 196,775 Current liabilities 36,799 47,407 Noncurrent liabilities 5,797 16,000 December 31, 2023 2022 2021 Sales $ 345,002 $ 306,511 $ 296,416 Gross profit 107,865 105,693 101,069 Operating income 70,783 67,169 66,978 Net income 74,053 68,255 68,433 (1) Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above. The Company’s investments in affiliated companies balance as of December 31, 2023 and 2022 includes net purchase accounting fair value adjustments of $224,614 and $231,017, respectively, related to a prior business combination, consisting primarily of goodwill and intangible assets such as customer relationships, technical know-how and trade names. Consolidated equity in net income from affiliates is net of $6,403, $6,402 and $6,480 of amortization expense related to purchase accounting fair value adjustments for the years ended December 31, 2023, 2022 and 2021, respectively. The following table summarizes the activity related to the Company’s investments in affiliated companies balance on the consolidated balance sheets: December 31, 2023 2022 Balance at beginning of period $ 436,013 $ 446,074 Equity in net income of affiliated companies 37,027 34,128 Charges related to purchase accounting fair value adjustments (6,403) (6,402) Dividends received (28,000) (35,000) Foreign currency translation adjustments 1,561 (2,787) Balance at end of period $ 440,198 $ 436,013 The Company had receivables due from affiliates of $3,231 and $3,861 as of December 31, 2023 and 2022, respectively, which are included in prepaid and other current assets. The Company had payables from affiliates of $1,351 and $322 as of December 31, 2023 and 2022, respectively, which is included in accrued liabilities. Receivables and payables due from affiliates are generally non-trade. Sales to affiliates were $2,457, $5,915 and $3,643 for the years ended December 31, 2023, 2022 and 2021, respectively. Purchases from affiliates were immaterial during the years ended December 31, 2023, 2022 and 2021. On December 18, 2013, the Company and its joint venture, Zeolyst International, entered into a ten During the year ended December 31, 2019, the original IRB financing structure from December 2013 was exhausted. In order to fund future plant expansions, the Company entered into an additional IRB financing structure on December 19, 2019 with similar terms and conditions, which also provides for 75% real estate tax abatement on the value of future improvements. The financing obligations and the industrial bonds receivable have been presented net, as the financing obligations and the industrial bonds meet the criteria for right of set off conditions under GAAP. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 11. Property, Plant and Equipment: A summary of property, plant and equipment, at cost, and related accumulated depreciation is as follows: December 31, 2023 2022 Land $ 96,833 $ 96,659 Buildings and improvements 84,860 82,061 Machinery and equipment 820,509 751,145 Construction in progress 42,000 56,448 1,044,202 986,313 Less: accumulated depreciation (467,298) (401,424) $ 576,904 $ 584,889 Depreciation expense was $70,551, $65,121 and $65,955 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 12. Leases: Operating lease costs of $10,828, $10,318 and $9,825 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively. Finance lease costs of $77, $36 and $37 are included in cost of goods sold and in selling, general, and administrative expenses on the consolidated statement of income for the years ended December 31, 2023 2022 and 2021, respectively. Lease income is not material to the results of operations for the years ended December 31, 2023, 2022 and 2021, respectively. The table below presents the operating and finance leases right-of-use assets and liabilities recognized on the consolidated balance sheet as of December 31, 2023 and 2022: Classification December 31, December 31, Assets Operating lease Right-of-use lease assets $ 24,281 $ 28,265 Finance lease Property, plant and equipment, net 1,269 1,422 Total leased assets $ 25,550 $ 29,687 Liabilities Current: Operating lease Operating lease liabilities—current $ 8,193 $ 8,155 Finance lease Accrued liabilities 70 86 Noncurrent: Operating lease Operating lease liabilities—noncurrent 16,030 20,021 Finance lease Other long-term liabilities 28 101 Total leased liabilities $ 24,321 $ 28,363 The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2023 and 2022 are as follows: December 31, December 31, Weighted average remaining lease term (in years): Operating leases 3.96 4.45 Finance leases 1.33 2.29 Weighted average discount rate: Operating leases 5.95 % 5.24 % Finance leases 3.91 % 3.10 % Maturities of lease liabilities as of December 31, 2023 are as follows: Year Operating Finance 2024 $ 9,539 $ 78 2025 6,916 23 2026 5,068 — 2027 3,672 — 2028 1,154 — Thereafter 1,014 — Total lease payments 27,363 101 Less: Interest (3,140) (3) Total lease liabilities (1) $ 24,223 $ 98 (1) Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the classification of lease liabilities in the Company’s consolidated balance sheet as of December 31, 2023. The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statement of cash flows: Years ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating leases included in operating cash flows $ 10,813 $ 10,327 Interest payments under finance leases included in operating cash flows 5 3 Principal payments under finance leases included in financing cash flows 72 33 Right-of-use assets obtained in exchange for new lease liabilities (non-cash): Operating leases 8,105 7,462 |
Leases | 12. Leases: Operating lease costs of $10,828, $10,318 and $9,825 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively. Finance lease costs of $77, $36 and $37 are included in cost of goods sold and in selling, general, and administrative expenses on the consolidated statement of income for the years ended December 31, 2023 2022 and 2021, respectively. Lease income is not material to the results of operations for the years ended December 31, 2023, 2022 and 2021, respectively. The table below presents the operating and finance leases right-of-use assets and liabilities recognized on the consolidated balance sheet as of December 31, 2023 and 2022: Classification December 31, December 31, Assets Operating lease Right-of-use lease assets $ 24,281 $ 28,265 Finance lease Property, plant and equipment, net 1,269 1,422 Total leased assets $ 25,550 $ 29,687 Liabilities Current: Operating lease Operating lease liabilities—current $ 8,193 $ 8,155 Finance lease Accrued liabilities 70 86 Noncurrent: Operating lease Operating lease liabilities—noncurrent 16,030 20,021 Finance lease Other long-term liabilities 28 101 Total leased liabilities $ 24,321 $ 28,363 The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2023 and 2022 are as follows: December 31, December 31, Weighted average remaining lease term (in years): Operating leases 3.96 4.45 Finance leases 1.33 2.29 Weighted average discount rate: Operating leases 5.95 % 5.24 % Finance leases 3.91 % 3.10 % Maturities of lease liabilities as of December 31, 2023 are as follows: Year Operating Finance 2024 $ 9,539 $ 78 2025 6,916 23 2026 5,068 — 2027 3,672 — 2028 1,154 — Thereafter 1,014 — Total lease payments 27,363 101 Less: Interest (3,140) (3) Total lease liabilities (1) $ 24,223 $ 98 (1) Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the classification of lease liabilities in the Company’s consolidated balance sheet as of December 31, 2023. The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statement of cash flows: Years ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating leases included in operating cash flows $ 10,813 $ 10,327 Interest payments under finance leases included in operating cash flows 5 3 Principal payments under finance leases included in financing cash flows 72 33 Right-of-use assets obtained in exchange for new lease liabilities (non-cash): Operating leases 8,105 7,462 |
Reportable Segments
Reportable Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segments | 13. Reportable Segments: The Company has organized its business around two operating segments based on the review of discrete financial results for each of the operating segments by the CODM, for performance assessment and resource allocation purposes. Each of the Company’s operating segments represents a reportable segment under GAAP. The Company’s reportable segments are organized based on the nature and economic characteristics of the Company’s products. The Company’s two reportable segments are as follows: (1) Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and (2) Advanced Materials & Catalysts serves the polymers and engineered plastics and the global refining, petrochemical and emissions control industries. The Advanced Materials & Catalysts segment includes equity in net income from Zeolyst International and Zeolyst C.V. (collectively, the “Zeolyst Joint Venture”), each of which are 50/50 joint ventures with CRI Zeolites Inc. (a wholly-owned subsidiary of Royal Dutch Shell). The Zeolyst Joint Venture is accounted for using the equity method in the Company’s consolidated financial statements (see Note 10 to these consolidated financial statements for further information). Company management evaluates the Advanced Materials & Catalysts segment’s performance, including the Zeolyst Joint Venture, on a proportionate consolidation basis. Accordingly, the revenues and expenses used to compute the Advanced Materials & Catalysts segment’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) include the Zeolyst Joint Venture’s results of operations on a proportionate basis based on the Company’s 50% ownership level. Since the Company uses the equity method of accounting for the Zeolyst Joint Venture, these items are eliminated when reconciling to the Company’s consolidated results of operations. The Company’s management evaluates the operating results of each reportable segment based upon Adjusted EBITDA. Adjusted EBITDA consists of EBITDA, which is a measure defined as net income before interest, income taxes, depreciation and amortization (each of which is included in the Company’s consolidated statements of income), and adjusted for certain items as discussed below. Corporate overhead costs are not included in segment results as they relate to corporate-based responsibilities and decisions and are not included in the internal measures of segment operating performance used by the Company to measure the underlying performance of the operating segments. Summarized financial information for the Company’s reportable segments is shown in the following table: Years ended 2023 2022 2021 Sales: Ecoservices $ 584,845 $ 702,472 $ 500,513 Advanced Materials & Catalysts (1) 106,273 117,687 110,688 Total $ 691,118 $ 820,159 $ 611,201 Adjusted EBITDA: (2) Ecoservices $ 199,966 $ 227,760 $ 177,672 Advanced Materials & Catalysts (3) 81,892 77,978 88,028 Adjusted EBITDA from reportable segments $ 281,858 $ 305,738 $ 265,700 (1) Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method. The proportionate share of sales excluded is $156,481, $132,588 and $131,332 for the years ended December 31, 2023, 2022 and 2021, respectively. (2) The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies. (3) The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $50,490 for the year ended December 31, 2023, which includes $30,695 of equity in net income plus $6,403 of amortization of investment in affiliate step-up plus $13,392 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $50,331 for the year ended December 31, 2022, which includes $27,931 of equity in net income plus $6,403 of amortization of investment in affiliate step-up plus $15,997 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $49,872 for the year ended December 31, 2021, which includes $27,827 of equity in net income plus $6,480 of amortization of investment in affiliate step-up plus $15,565 of joint venture depreciation, amortization and interest. A reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments is as follows: Years ended 2023 2022 2021 Reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments Income from continuing operations before income taxes $ 81,939 $ 94,735 $ 13,941 Interest expense, net 44,730 37,217 36,990 Depreciation and amortization 84,598 79,163 79,741 Unallocated corporate expenses 21,990 29,042 38,089 Joint venture depreciation, amortization and interest 13,392 15,997 15,565 Amortization of investment in affiliate step-up 6,403 6,402 6,480 Debt extinguishment costs — — 26,902 Net loss on asset disposals 4,137 3,594 5,666 Foreign currency exchange loss (gain) (1,340) 1,388 4,716 LIFO benefit 3,473 (165) (1,931) Transaction and other related costs 2,954 6,988 2,009 Equity-based compensation 16,031 20,632 31,838 Restructuring, integration and business optimization expenses 2,655 11,566 3,866 Other 896 (821) 1,828 Adjusted EBITDA from reportable segments $ 281,858 $ 305,738 $ 265,700 The Company’s consolidated results include equity in net income from affiliated companies of $30,624, $27,725 and $27,737 for the years ended December 31, 2023, 2022, and 2021, respectively. This is primarily comprised of equity in net income of $30,695, $27,931 and $27,827 in the Advanced Materials & Catalysts segment from the Zeolyst Joint Venture for the years ended December 31, 2023, 2022 and 2021, respectively. The Company’s equity in net income from affiliated companies in the consolidated results includes amortization expense related to purchase accounting fair value adjustments associated with the Zeolyst Joint Venture as a result of a prior business combination. Capital expenditures for the Company’s reportable segments are shown in the following table: Years ended 2023 2022 2021 Capital expenditures: Ecoservices $ 53,705 $ 47,770 $ 43,561 Advanced Materials & Catalysts (1) 8,441 8,194 15,997 Corporate (2) 3,189 2,906 487 Capital expenditures per the consolidated statements of cash flows $ 65,335 $ 58,870 $ 60,045 (1) Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture. (2) Includes corporate capital expenditures, the cash impact from changes in capital expenditures in accounts payable and capitalized interest. Total assets by segment are not disclosed by the Company because the information is not prepared or used by the CODM to assess performance and to allocate resources. Sales by geographic area are presented in the following table. Sales are attributed to countries based upon location of products shipped. Years ended 2023 2022 2021 Sales (1) : United States $ 649,652 $ 774,119 $ 571,587 Foreign countries 41,466 46,040 39,614 Total $ 691,118 $ 820,159 $ 611,201 (1) Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales. The Company sold products through its Ecoservices and Advanced Materials & Catalysts segments to single customer, which accounted for 13.2%, 12.3% and 12.6% of the Company’s total sales as of December 31, 2023, 2022, and 2021 respectively. Long-lived assets by geographic area is presented in the following table. Long-lived assets includes property, plant and equipment, net and right-of-use lease assets. December 31, 2023 2022 Long-lived assets: United States $ 575,536 $ 587,726 Foreign countries 25,649 25,428 Total $ 601,185 $ 613,154 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 14. Goodwill and Other Intangible Assets: The changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 is summarized as follows: Ecoservices Advanced Materials & Catalysts Total Balance as of December 31, 2021 $ 326,670 $ 79,469 $ 406,139 Goodwill adjustments (1) (81) — (81) Foreign exchange impact — (2,895) (2,895) Balance as of December 31, 2022 326,589 76,574 403,163 Foreign exchange impact — 1,307 1,307 Balance as of December 31, 2023 $ 326,589 $ 77,881 $ 404,470 (1) During the year ended December 31, 2022, the Company recorded an adjustment of $81 between goodwill and deferred tax liabilities related to the final tax purchase price allocation for the Chem32 LLC acquisition. The Company completed its annual goodwill impairment assessments as of October 1, 2023 and 2022. For the annual assessments, the Company bypassed the option to perform the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test for each of its reporting units. The quantitative test identifies both the potential existence of impairment and the amount of impairment loss. For each of the October 1, 2023 and 2022 assessments, the Company identified two reporting units, which align with the Company’s operating segments. The Company determined the fair value of its reporting units using a split between a market approach and an income, or discounted cash flow, approach. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company estimates reporting unit market approach fair value using publicly traded comparable company values and applies the selected market multiples to each reporting unit’s trailing twelve months adjusted EBITDA. The Company estimates reporting unit income-based fair value using the discounted cash flow approach. This approach requires use of significant assumptions about future cash flows and based on management’s assessment of a number of factors. Such factors include reporting unit revenue growth rates from implementation of strategic plans, operating margin growth rates, the perpetual growth rate, and the weighted average cost of capital, as well as the reporting unit’s recent performance and management’s ability to execute on planned future strategic initiatives. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. As of October 1, 2023, the fair values of each of the Company’s reporting units exceeded their respective carrying values and therefore, no goodwill impairment exists for the year ended December 31, 2023. In addition to the annual goodwill impairment assessment, the Company also performed the annual impairment test over its other indefinite-lived intangible assets as of October 1, 2023 and 2022. The fair values of the Company’s indefinite-lived trade names and trademarks were in excess of their carrying amounts as of the respective testing dates, and as such, there was no further impairment of the Company’s indefinite-lived intangible assets for the years ended December 31, 2023 and 2022. Gross carrying amounts and accumulated amortization for intangible assets other than goodwill are as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Technical know-how $ 55,350 $ (27,472) $ 27,878 $ 54,880 $ (23,822) $ 31,058 Customer relationships 130,912 (76,634) 54,278 130,636 (66,669) 63,967 Non-compete agreements 700 (397) 303 700 (257) 443 Trademarks 7,521 (3,844) 3,677 7,387 (3,283) 4,104 Trade names 1,600 (453) 1,147 1,600 (293) 1,307 Total definite-lived intangible assets 196,083 (108,800) 87,283 195,203 (94,324) 100,879 Indefinite-lived trade names 25,367 — 25,367 25,153 — 25,153 In-process research and development 3,900 — 3,900 3,900 — 3,900 Total intangible assets $ 225,350 $ (108,800) $ 116,550 $ 224,256 $ (94,324) $ 129,932 The Company amortizes technical know-how over periods that range from ten years to twenty years, customer relationships over periods that range from ten years to fifteen years, non-compete agreements over five years, trademarks over fifteen years, and trade names over ten years. In-process research and development intangible assets are considered indefinite-lived until such time as the associated projects are completed, at which time amortization commences on the assets, or abandoned, which results in the impairment of the assets. Amortization expense related to technical know-how is included in cost of goods sold in the consolidated statements of income and was $3,482, $3,480 and $3,465 for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense related to customer relationships, non-compete agreements, trademarks, and trade names is included in other operating expense, net in the consolidated statements of income and was $10,565, $10,562 and $10,321 for the years ended December 31, 2023, 2022 and 2021, respectively. Estimated future aggregate amortization expense of intangible assets is as follows: Year Amount 2024 $ 14,068 2025 14,068 2026 12,912 2027 12,370 2028 12,222 Thereafter 21,643 Total estimated future aggregate amortization expense $ 87,283 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 15. Accrued Liabilities: The following table summarizes the components of accrued liabilities as follows: December 31, 2023 2022 Compensation and bonus $ 16,594 $ 30,890 Interest 11,976 10,493 Property tax 3,657 2,123 Income taxes 7,708 4,412 Finance lease and financing obligation liabilities 3,069 2,855 Dividends payable 641 4,062 Other 18,048 17,394 $ 61,693 $ 72,229 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 16. Long-term Debt: The summary of long-term debt is as follows: December 31, 2023 2022 Senior Secured Term Loan Facility due June 2028 (the "2021 Term Loan Facility") $ 877,500 $ 886,500 ABL Facility — — Total debt 877,500 886,500 Original issue discount (6,162) (7,472) Deferred financing costs (3,392) (4,158) Total debt, net of original issue discount and deferred financing costs 867,946 874,870 Less: current portion (9,000) (9,000) Total long-term debt, excluding current portion $ 858,946 $ 865,870 ABL Facility On May 4, 2016, PQ Corporation (“PQ Corp”), an indirect, wholly owned subsidiary of the Company prior to the closing of the sale of the Performance Chemical business entered into a $200,000 senior secured asset-based revolving credit facility (the “ABL Facility”), which provided for $200,000 revolving credit commitments. On March 20, 2020, PQ Corp amended its existing ABL Facility to increase the aggregate amount of the revolving loan commitments available by $50,000 to $250,000, consisting of up to $195,000 in U.S. commitments, up to $15,000 in Canadian commitments and up to $40,000 in European commitments. The maturity of the facility was extended to March 20, 2025. In addition, there was an annual commitment fee equal to 0.375%, with a step-down to 0.25% based on average usage of the revolving credit borrowings available Following the amendment, the borrowings under the amended ABL Facility bore interest at a rate equal to the LIBOR rate or the base rate plus a margin of between 1.25% to 1.75% or 0.25% to 0.75%, respectively. On June 9, 2021, PQ Corp and Ecovyst LLC (as defined below) entered into a third amendment agreement (the “ABL Amendment”), which amended its ABL Credit Agreement, dated as of May 4, 2016 (the “ABL Credit Agreement” and, as amended by the ABL Amendment, the “Amended ABL Credit Agreement”). The ABL Amendment, among other things, following the sale of Performance Chemicals, decreased the aggregate amount of revolving loan commitments available to the borrowers thereunder by an aggregate amount of $150,000 to $100,000, consisting of $90,000 in U.S. commitments and $10,000 in European commitments and extended the maturity date with respect to borrowings under the Amended ABL Credit Agreement to August 2, 2026. On February 17, 2023, the Company amended the ABL Facility to replace LIBOR with SOFR as the benchmark interest rate. Following this amendment, the borrowings under the ABL Facility bear interest at a rate equal to an adjusted term SOFR rate or the base rate, which includes a credit spread adjustment of 10 basis points, plus a margin of between 1.25% to 1.75% or 0.25% to 0.75%, respectively. The interest rate on the ABL Facility was 8.75% as of December 31, 2023. As of December 31, 2023, there were no revolving credit borrowings outstanding under the ABL Facility. Revolving credit borrowings are payable at the option of the Borrower throughout the term of the ABL Facility with the balance due August 2, 2026. The Company has the ability to request letters of credit under the ABL Facility. The Company had $4,043 of letters of credit outstanding as of December 31, 2023, which reduce available borrowings under the ABL Facility by such amounts. The obligations of the Borrower under the ABL Facility are guaranteed by the same U.S. subsidiary guarantors that guarantee the 2021 Term Loan Facility (as described below) and the obligations of the European Borrowers under the ABL Facility are guaranteed by a certain European subsidiary of the Borrower. The obligations of the borrowers and guarantors under the ABL Facility are secured (i) by a first-priority security interest in, among other things, substantially all of their receivables, inventory, deposit accounts and other collateral securing the ABL Facility on a first-priority basis and (ii) by a second-priority security interest in the property and assets of the Borrower and the U.S. subsidiary guarantors that secure the 2021 Term Loan Facility. In addition, the ABL Facility is secured by the equity interests in, and substantially all of the assets of, certain foreign guarantors in connection with the Euro-denominated availability. The ABL Facility and the 2021 Term Loan Facility contain various restrictive covenants. Each limits the ability of the Borrower and its restricted subsidiaries to incur certain indebtedness or liens, merge, consolidate or liquidate, dispose of certain property, make investments or declare or pay dividends, make optional payments, modify certain debt instruments, enter into certain transactions with affiliates, enter into certain sales and leasebacks, and certain other non-financial restrictive covenants. The ABL Facility also contains one financial covenant which applies when minimum availability under the ABL Facility exceeds a certain threshold. During such time, the Company is required to maintain a fixed-charge coverage ratio of at least 1.0 to 1.0. The Company was in compliance with all debt covenants as of December 31, 2023 and 2022, respectively. 2021 Term Loan Facility On June 9, 2021, PQ Corp and Ecovyst Catalyst Technologies LLC (“Ecovyst LLC” and, following the closing of the sale of the Performance Chemicals business, the “Borrower”), an indirect, wholly owned subsidiary of the Company, entered into an agreement (the “2021 Credit Agreement”) for the 2021 Term Loan Facility in an aggregate principal amount of $900,000 with an original issue discount of 0.25% and interest at a floating rate of LIBOR (with a 0.50% minimum LIBOR floor) plus 2.75% per annum (or, depending on the Borrower’s first lien net leverage ratio, 2.50%). The 2021 Term Loan Facility requires scheduled quarterly amortization payments, each equal to 0.25% of the original principal amount of the loans under the 2021 Term Loan Facility. The proceeds of the 2021 Term Loan Facility were used to pay in full the 2020 Term Loan Facility, partially pay the 2018 Term Loan Facility and pay the associated fees and expenses. On February 9, 2023, the Company amended the 2021 Term Loan Facility to replace LIBOR with SOFR as the benchmark interest rate. Following this amendments, the 2021 Term Loan Facility bears interest at an adjusted SOFR rate (with a 0.50% minimum floor) plus 2.75% per annum (or, depending on the Borrower’s first lien net leverage ratio, 2.50%). The interest rate on the 2021 Term Loan Facility was 7.98% as of December 31, 2023. As of December 31, 2023, the 2021 Term Loan Facility accrued interest at a floating rate of SOFR plus 2.50% per annum and is scheduled to mature in June 2028. The Company may at any time or from time to time voluntarily prepay loans under the 2021 Term Loan Facility in whole or in part without premium or penalty. The 2021 Term Loan Facility requires mandatory prepayments from (i) 50% of “Excess Cash Flow” (as defined in the 2021 Credit Agreement) on an annual basis with step downs to lower percentages based on the Borrower’s leverage ratio, if applicable, (ii) net cash proceeds from the issuance or incurrence of certain indebtedness and (iii) net cash proceeds received from certain non-ordinary course disposition of assets and casualty events to the extent such net cash proceeds were not reinvested in the Company’s business within a certain specified time period. Prepayments are applied to remaining amortization installments in direct order of maturity. The remaining principal balance of the term loans are due upon maturity. The 2021 Term Loan Facility is guaranteed by Ecovyst Catalyst Technologies LLC and Ecoservices Operations Corp, subsidiaries of the Company. The obligations under the Term Facility are secured (i) by a first-priority security interest in, among other things, a pledge of substantially all of the Borrower’s and the guarantors’ assets (other than collateral securing the ABL Facility on a first-priority basis) and (ii) by a second-priority security interest in receivables, inventory, deposit accounts and other collateral of the Borrower and the U.S. subsidiary guarantors securing the ABL Facility. Fair Value of Debt The fair value of a financial instrument is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. As of December 31, 2023 and 2022, the fair value of the senior secured term loan was $876,403 and $870,986, respectively. The fair value is classified as Level 2 based upon the fair value hierarchy (see Note 6 to these consolidated financial statements for further information on fair value measurements). Aggregate Long-term Debt Maturities The aggregate long-term debt maturities are: Year Amount 2024 $ 9,000 2025 9,000 2026 9,000 2027 9,000 2028 841,500 $ 877,500 |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-term Liabilities | 17. Other Long-term Liabilities: The following table summarizes the components of other long-term liabilities as follows: December 31, 2023 2022 Pension plan liabilities $ 4,937 $ 6,250 Other postretirement benefit plan liabilities 457 428 Derivative liabilities 2,496 2,071 Finance lease and financing obligation liabilities 4,955 7,633 Reserve for uncertain tax positions 9,523 8,215 Other 71 1,249 $ 22,439 $ 25,846 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 18. Financial Instruments: The Company uses interest rate related derivative instruments to manage its exposure to changes in interest rates on its variable-rate debt instruments. The Company does not speculate using derivative instruments. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is an asset, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is a liability, the Company owes the counterparty and therefore, the Company is not exposed to the counterparty’s credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high quality counterparties. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates. The market risk associated with the Company’s derivative instruments is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. Use of Derivative Financial Instruments to Manage Interest Rate Risk. The Company is exposed to fluctuations in interest rates on its senior secured credit facilities. Changes in interest rates will not affect the market value of such debt but will affect the Company’s interest payments over the term of the loans. Likewise, an increase in interest rates could have a material impact on the Company’s consolidated statements of cash flows. The Company hedges the interest rate fluctuations on debt obligations through interest rate cap agreements. The Company records these agreements at fair value as assets or liabilities in its consolidated balance sheets. As the derivatives are designated and qualify as cash flow hedges, the gains or losses on the interest rate cap agreements are recorded in stockholders’ equity as a component of other comprehensive income, net of tax. Reclassifications of the gains and losses on the interest rate cap agreements into earnings are recorded as part of interest expense in the consolidated statements of income as the Company makes its interest payments on the hedged portion of its senior secured credit facilities. Fair value is determined based on estimated amounts that would be received or paid to terminate the contracts at the reporting date based on quoted market prices. The following table provides a summary of the Company’s interest rate cap agreements: Financial instrument Number of instruments In effect as of December 31, 2023 Current notional amount of instruments in effect Annuitized premium of instruments in effect Interest rate cap 4 3 $ 650,000 $ 24,817 The current notional amounts of the three interest rate cap agreements in effect at December 31, 2023 are $250,000, $150,000 and $250,000. The Company entered into a $250,000 interest rate cap to mitigate interest rate volatility from August 2022 to October 2024, a $150,000 interest rate cap agreement to mitigate interest rate volatility from August 2023 to July 2026, and a $250,000 interest rate cap agreement to mitigate interest rate volatility from September 2023 to October 2025. The $150,000 interest rate cap agreement will increase to $175,000 to mitigate interest rate volatility from August 2024 to July 2026. The cap rates in effect at December 31, 2023 was 1.00%. The Company has also entered into a forward starting interest rate cap agreements to mitigate interest volatility from November 2024 to October 2026. In February 2023, the Company amended all existing interest rate cap agreements to replace LIBOR with SOFR as the benchmark interest rate, with all other terms of the agreements remaining the same. This amendment changed the previously annuitized premiums on the existing interest rate cap agreements. The fair values of derivative instruments held as of December 31, 2023 and 2022, respectively are shown below: December 31, Balance sheet location 2023 2022 Derivative assets Derivatives designated as cash flow hedges: Interest rate caps Prepaid and other current assets $ 13,419 $ 18,510 Interest rate caps Other long-term assets 5,602 15,864 Total derivative assets $ 19,021 $ 34,374 Derivative liabilities Derivatives designated as cash flow hedges: Interest rate caps Other long-term liabilities $ 2,496 $ 2,071 Total derivative liabilities $ 2,496 $ 2,071 The following table shows the effect of the Company’s derivative instruments designated as cash flow hedges on accumulated other comprehensive income (loss) and the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively: Years ended December 31, 2023 2022 2021 Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Interest rate caps Interest (expense) income $ 5,419 $ 22,731 $ 32,510 $ (683) $ 3,441 $ (444) The following table shows the effect of the Company’s cash flow hedge accounting on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively: Location and amount of gain (loss) recognized in income on cash flow hedging relationships Years ended December 31, 2023 2022 2021 Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded in interest (expense) income $ (44,730) $ (37,217) $ (36,990) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income 22,731 (683) (444) The amount of unrealized losses in AOCI related to the Company’s cash flow hedges that is expected to be reclassified to the consolidated statement of income over the next twelve months is $9,712 as of December 31, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 19. Income Taxes: Income before income taxes within or outside the United States are shown below: Years ended 2023 2022 2021 Domestic $ 73,774 $ 86,695 $ 6,185 Foreign 8,165 8,040 7,756 Total $ 81,939 $ 94,735 $ 13,941 The provision for income taxes as shown in the accompanying consolidated statements of income consists of the following: Years ended 2023 2022 2021 Current: Federal $ 21,647 $ 18,210 $ 2,469 State 3,695 3,100 1,813 Foreign 2,515 1,978 3,317 27,857 23,288 7,599 Deferred: Federal (3,644) 4,544 (1,813) State (11,993) (2,288) 2,551 Foreign (1,435) (604) 3,810 (17,072) 1,652 4,548 Provision for income taxes $ 10,785 $ 24,940 $ 12,147 A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax expense is as follows: Years ended 2023 2022 2021 Tax at statutory rate $ 17,207 $ 19,894 $ 2,928 State income taxes, net of federal income tax benefit 748 248 3,942 Changes in uncertain tax positions 985 558 877 State credit - valuation allowance release (10,203) — — Rate changes (101) — 5,209 Stock compensation 1,803 1,876 197 Compensation disallowance under 162(m) 2,344 3,146 466 Foreign tax credits (848) — (759) Research and development tax credits (400) (366) (620) Other, net (750) (416) (93) Provision for income taxes $ 10,785 $ 24,940 $ 12,147 Deferred tax assets (liabilities) are comprised of the following: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 14,680 $ 13,705 Interest disallowance carryforward 1,169 228 Pension 569 879 Operating lease liability 5,940 6,873 Other 10,806 10,653 State credits 14,659 13,773 Foreign withholding tax credits 9,083 9,083 Valuation allowance (18,325) (30,615) 38,581 24,579 Deferred tax liabilities: Depreciation $ (66,816) $ (70,400) Inventory (3,427) (3,039) Intangibles (67,250) (63,873) Operating lease right-of-use assets (5,954) (6,763) Other (8,675) (15,910) (152,122) (159,985) Net deferred tax liabilities $ (113,541) $ (135,406) Under the tax laws of various jurisdictions in which we operate, deductions or credits that cannot be fully utilized for tax purposes during the year may be carried forward, subject to statutory limitations, to reduce taxable income or taxes payable in a future year. As of December 31, 2023, the Company has indefinite carryforwards of $9,083 foreign withholding tax credits. The Company has recorded a full valuation allowance against the foreign withholding tax credits as it is more likely than not that the benefit from these foreign tax credits will never be realized. The Company has $14,659 of deferred tax assets related to state tax credits, which are subject to a 16-year carryforward period. The Company expects to fully utilize its state tax credits before each expiration, as a result the Company has released the valuation allowance associated with its state tax credits. As of December 31, 2023, the valuation allowance associated with its state tax credits is $0. The Company has $14,680 of deferred tax assets related to state net operating losses and foreign losses, which are subject to various carryforward periods of 5 to 20 years or an indefinite carryforward period. A partial valuation allowance of $9,242 has been recorded due to the expected expiration of these state net operating losses before they are able to be utilized. The change in net deferred tax liabilities for the years ended December 31, 2023 and 2022 was primarily related to the release of a state tax credit valuation allowance, differences between book and tax basis depreciation, activity connected to book amortization of intangible assets with no corresponding tax basis reducing those deferred tax liabilities, activity with respect to tax deductible goodwill, activity with respect to interest rate caps recorded against other comprehensive income, and activity with respect to stock compensation. The net change in the total valuation allowance was a decrease of $12,290 in 2023. The valuation allowance at December 31, 2023 was related to state and foreign net operating loss carryforwards and foreign withholding tax credits that, in the judgment of management, are not more likely than not to be realized. In assessing the ability to realize deferred tax assets, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considered the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies that are prudent in making this assessment. In order to fully realize deferred tax assets, the Company will need to generate future taxable income prior to the expiration of the net operating loss and credit carryforwards. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. The cumulative unremitted earnings of foreign subsidiaries outside the United States are considered permanently reinvested, for which no withholding taxes have been provided. Such earnings are expected to be reinvested indefinitely and, as a result, no deferred tax liability has been recognized with regard to such earnings. Determination of the deferred withholding tax liability on these unremitted earnings is not practicable. Undistributed earnings of foreign subsidiaries and related companies that are deemed to be indefinitely reinvested amounted to $198,580 at December 31, 2023. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits. The amounts listed in the below table also represents the total unrecognized tax benefits that, if recognized, would impact the effective tax rate as of December 31, 2023 and 2022, respectively: Years ended 2023 2022 Balance at beginning of period $ 7,787 $ 7,787 Increases related to prior year tax positions 323 — Balance at end of period $ 8,110 $ 7,787 To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision in the period for which the event occurs requiring the adjustment. The total amount of interest and penalties recognized in provision for income taxes on continuing operations was $855 and $558 for the years ended December 31, 2023 and 2022, respectively. The Company recorded cumulative accrued interest and penalties amounting to $1,413 as of December 31, 2023 in other long-term liabilities on its consolidated balance sheets. The Company files numerous consolidated and separate income tax returns in the U.S. federal jurisdiction and in many state and foreign jurisdictions. The following describes the open tax years, by significant tax jurisdiction, as of December 31, 2023: Jurisdiction Period United States-Federal 2007-2023 United States-State 2007-2023 Given that the Company has utilized state net operating loss in the current and prior years, the statute for examination by the state taxing authorities will typically remain open for a period following the use of such net operating loss carryforwards, extending the period for examination beyond the years indicated above. As of December 31, 2023, it is reasonably possible that the Company may recognize approximately $8,023 of previously net unrecognized tax benefits, excluding interest and penalties, related to various U.S. federal tax positions, primarily due to the expiration of statutes of limitations within the next twelve months. As of December 31, 2023 and 2022, the Company no longer has a federal net operating loss or foreign tax credit carryforward. Cash payments for income taxes, net of refunds, are as follows: Years ended 2023 2022 2021 Domestic $ 21,973 $ 13,277 $ 549 Foreign 464 359 69 $ 22,437 $ 13,636 $ 618 On August 16, 2022, the Inflation Reduction Act of 2022, or IRA, was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax for certain large corporations with average annual adjusted financial statement income in excess of $1 billion for tax years beginning after December 31, 2022, levies a 1% excise tax on net stock repurchases after December 31, 2022, and provides tax incentives to promote clean energy. Historically the Company has made discretionary share repurchases under its share repurchase programs. Beginning in 2023, these transactions will be subject to the excise tax of the IRA. See Note 7 for information on the accrued excise tax related to these stock repurchases. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 20. Benefit Plans: The Company sponsors two funded defined benefit pension plans that cover certain employees. Benefits for the plans are generally based on average final pay and years of service. The Company’s funding policy is to fund the minimum required contributions consistent with statutory requirements based on actuarial computations utilizing the projected unit credit method of calculation. The Company sponsors an unfunded plan to provide health care benefits to certain retired employees. The plan pays a stated percentage of medical expenses reduced by deductibles and other coverage and obligations are paid out of the Company’s operations. The Company uses a December 31 measurement date for all of its defined benefit pension and postretirement medical plans. Of the Company’s two defined benefit pension plans, the Eco Services Hourly Pension Plan was frozen to future accruals as of December 31, 2020, and the Eco Services Pension Equity Plan was frozen to future accruals as of December 31, 2016. The retiree healthcare plan was closed to new retirees effective July 1, 2017. The Company no longer has a defined benefit pension plan covering its employees at a foreign subsidiary, as the plan was converted to a defined contribution plan during the year ended December 31, 2021. Defined Benefit Pension Plans The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s defined benefit pension plans as well as the components of net periodic benefit cost, including key assumptions: December 31, 2023 2022 Change in benefit obligation: Benefit obligation at beginning of period $ 66,879 $ 86,465 Interest cost 3,453 2,569 Plan settlements (2,543) (862) Benefits paid (2,798) (2,552) Actuarial losses/(gains) 1,565 (18,741) Benefit obligation at end of the period 66,556 66,879 Change in plan assets: Fair value of plan assets at beginning of period $ 60,629 $ 82,914 Actual return on plan assets 6,330 (18,871) Plan settlements (2,543) (862) Benefits paid (2,798) (2,552) Fair value of plan assets at end of the period 61,618 60,629 Funded status of the plans (underfunded) $ (4,938) $ (6,250) The total actuarial losses for the year ended December 31, 2023 was $1,565, which was driven by decreases in the discount rates of $1,365 and declines in general demographic experience of $200. The total actuarial gains for the year ended December 31, 2022 was $18,741, which was driven by increases in the discount rates of $18,641 and increase in general demographic experience of $100. Amounts recognized in the consolidated balance sheets consist of: December 31, 2023 2022 Noncurrent liability $ (4,937) $ (6,250) Accumulated other comprehensive income (loss), net of tax 567 (509) Net amount recognized $ (4,370) $ (6,759) Amounts recognized in accumulated other comprehensive income (loss) consist of: December 31, 2023 2022 Net (loss) gain $ 751 $ (1,039) Gross amount recognized 751 (1,039) Deferred income taxes (184) 530 Net amount recognized $ 567 $ (509) Components of net periodic benefit cost consist of: U.S. Foreign Years ended Year ended 2023 2022 2021 2021 Interest cost $ 3,453 $ 2,569 $ 2,210 $ 255 Expected return on plan assets (3,305) (3,433) (4,360) (255) Settlement loss (gain) recognized 61 38 (26) 2,084 Net periodic expense (benefit) $ 209 $ (826) $ (2,176) $ 2,084 All components of net periodic benefit cost other than service cost are presented within other expense (income), net in the Company’s consolidated statements of income. Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of: December 31, 2023 2022 Net (gain) loss $ (1,461) $ 3,563 Amortization or settlement recognition of net loss (61) (38) Total recognized in other comprehensive (income) loss (1,522) 3,525 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (1,313) $ 2,699 The net amount of projected benefit obligation and plan assets for all underfunded plans was $4,938 and $6,250 as of December 31, 2023 and 2022, respectively, and was classified as noncurrent liabilities. The following table presents selected information about the Company’s pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: December 31, 2023 2022 Projected benefit obligation $ 66,555 $ 66,879 Accumulated benefit obligation 66,555 66,879 Fair value of plan assets 61,618 60,629 Significant weighted average assumptions used in determining the pension obligations include the following: December 31, 2023 2022 Discount rate 5.17 % 5.40 % Rate of compensation increase (1) N/A N/A Significant weighted average assumptions used in determining net periodic benefit cost include the following: U.S. Foreign Years ended Year ended 2023 2022 2021 2021 Discount rate 5.39 % 2.90 % 2.50 % 1.20 % Expected return on assets 5.74 % 4.90 % 5.60 % 1.20 % Rate of compensation increase (1) N/A N/A N/A 1.75 % (1) Includes only plans not frozen to benefit accruals for the respective periods. The discount rate was determined by utilizing a yield curve model. The model develops a spot rate curve based on the yields available from a broad-based universe of high quality corporate bonds. The discount rate is then set as the weighted average spot rate, using the respective plan’s expected benefit cash flows as the weights. The investment objective for the plans is to generate returns sufficient to meet future obligations. The strategy to meet the objective includes generating attractive returns using higher returning assets such as equity securities and balancing risk using less volatile assets such as fixed income securities. The plans invest in an allocation of assets across the two broadly-defined financial asset categories of equity and fixed income securities. The target allocations for the plan assets across the two U.S. plans are as follows: 35% equity securities and 65% fixed income investments for the Eco Services Pension Equity Plan; and 30% equity securities and 70% fixed income investments for the Eco Services Hourly Pension Plan. The Company classifies plan assets based upon a fair value hierarchy where each asset within the hierarchy is based on the lowest level input that is significant to its measurement. The fair value hierarchy consists of three levels as follows: • Level 1—Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. Level 1 assets primarily include investments in publicly traded equity securities and mutual funds. These securities (or the underlying investments of the funds) are actively traded and valued using quoted prices for identical securities from the market exchanges. • Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves. Level 2 assets primarily consist of fixed-income securities and commingled funds that are not actively traded or whose underlying investments are valued using observable marketplace inputs. The fair value of plan assets invested in fixed-income securities is generally determined using valuation models that use observable inputs such as interest rates, bond yields, low-volume market quotes and quoted prices for similar assets. Plan assets that are invested in commingled funds are valued using a unit price or net asset value (“NAV”) that is based on the underlying investments of the fund. • Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Level 3 assets include investments covered by insurance contracts and real estate funds valued using significant unobservable inputs. The following tables set forth by level, within the fair value hierarchy, plan assets at fair value: December 31, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 264 $ 264 $ — $ — Equity securities: U.S. investment funds 11,539 11,539 — — International investment funds 7,546 7,546 — — Fixed income securities: Government securities 11,691 11,691 — — Corporate bonds 30,578 30,578 — — Total $ 61,618 $ 61,618 $ — $ — December 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 244 $ 244 $ — $ — Equity securities: U.S. investment funds 11,435 11,435 — — International investment funds 7,803 7,803 — — Fixed income securities: Government securities 16,209 16,209 — — Corporate bonds 24,938 24,938 — — Total $ 60,629 $ 60,629 $ — $ — The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year Amount 2024 $ 8,156 2025 4,434 2026 4,505 2027 4,523 2028 4,714 Years 2029-2033 22,815 The Company expects to contribute $1,680 to its pension plans in 2024. Other Postretirement Benefit Plan The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s other postretirement benefit plan as well as the components of net periodic benefit cost, including key assumptions: December 31, 2023 2022 Change in benefit obligation: Benefit obligation at beginning of period $ 446 $ 624 Interest cost 24 18 Benefits paid (1) (1) Premiums paid (3) (3) Actuarial loss/(gain) 9 (192) Benefit obligation at end of period 475 446 Change in plan assets: Employer contributions $ 4 $ 4 Benefits paid (1) (1) Premiums paid (3) (3) Fair value of plan assets at end of period — — Funded status of the plan (underfunded) $ (475) $ (446) The actuarial loss for the year ended December 31, 2023 was $9, which was driven by decreases in the discount rates. The actuarial gain for the year ended December 31, 2022 was $192, which was driven by increases in the discount rates. Amounts recognized in the consolidated balance sheets consist of: December 31, 2023 2022 Current liability $ (18) $ (18) Noncurrent liability (457) (428) Accumulated other comprehensive income (loss), net of tax 79 (299) Net amount recognized $ (396) $ (745) Amounts recognized in accumulated other comprehensive income consist of: December 31, 2023 2022 Prior service credit $ 30 $ 154 Net gain (loss) 75 80 Gross amount recognized 105 234 Deferred income taxes (26) (533) Net amount recognized $ 79 $ (299) Components of net periodic benefit cost consist of: Years ended 2023 2022 2021 Interest cost $ 24 $ 18 $ 17 Amortization of prior service credit (125) (210) (232) Amortization of net (gain) loss (2) 3 5 Net periodic benefit $ (103) $ (189) $ (210) All components of net periodic benefit cost other than service cost are presented within other expense (income), net in the Company’s consolidated statements of income. Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of: December 31, 2023 2022 Net loss (gain) $ 9 $ (192) Amortization of prior service credit 125 210 Amortization or settlement recognition of net gain (loss) 2 (3) Total recognized in other comprehensive income 136 15 Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 33 $ (174) The discount rate used in determining the other postretirement benefit plan obligation was 5.20% and 5.50% as of December 31, 2023 and 2022, respectively. The discount rate used in determining net periodic benefit cost was 5.50%, 2.90% and 2.60% for the years ended December 31, 2023, 2022 and 2021, respectively. There was no rate of interest crediting rate, as there are no cash balance accounts associated with this plan. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year Amount 2024 $ 19 2025 20 2026 21 2027 23 2028 24 Years 2028-2032 150 The Company expects to contribute $18 to the retiree health plan in 2024. There are no expected Medicare subsidy receipts expected in future periods. Defined Contribution Plans The Company also has defined contribution plans covering domestic employees of the Company and a foreign subsidiary. The Company recorded expenses of $7,015, $7,113 and $7,097 related to these plans for the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 21. Stock-Based Compensation: The Company has an equity incentive plan under which it grants common stock awards to employees, directors and affiliates of the Company. As of December 31, 2023, 9,498,538 shares of common stock were available for issuance under the plan. The Company historically has settled these awards through the issuance of new shares. Beginning on July 1, 2023, the Company commenced reissuing shares from treasury in connection with the settlement of awards under its equity incentive plan. Modifications Sale of Performance Chemicals As described in Note 7 to these consolidated financial statements, the Company’s Board of Directors declared a special cash dividend of $3.20 per share to stockholders of record as of the close of business on August 12, 2021. The dividend declaration also included a dividend equivalent for all unvested restricted stock units, performance stock units and restricted stock awards (collectively, the “awards”) as of August 23, 2021 equal to $3.20 per award. Additionally, the Company’s Board of Directors approved a reduction in the strike price on all outstanding vested and unvested stock options by the amount of the dividend payment. Further, with respect to stock options and awards held by employees of Performance Chemicals at the time of the sale (see Note 4 to these consolidated financial statements for further information), the Company’s Board of Directors approved modifications to the post-termination stock option exercise, and stock option and award vesting periods. The modifications provided that all stock options held by Performance Chemicals employees that were vested as of the date of the sale are eligible to be exercised for a period of one year from the date of the sale. Additionally, modifications to unvested stock options and awards allowed holders to continue to vest in those instruments under the original terms of the instruments for a period of up to one year from the date of sale, depending on the award. The terms of the modifications to the Performance Chemicals awards are contingent upon the employee providing continued service to the Buyer. The modifications impacted all holders of the Company’s stock options and awards, and along with modifications for a retired executive during the same period, resulted in incremental stock-based compensation expense recognized at the time of the modifications of $6,667 during the year ended December 31, 2021. Of this amount, $2,635 was included in loss from discontinued operations, net of tax on the Company’s consolidated statements of income. Stock Options The Company has issued stock options to purchase Ecovyst Inc. common stock as part of its equity incentive compensation program. There are various vesting conditions associated with stock options issued prior to the launch of the Company’s initial public offering (“IPO”) in September 2017, including satisfaction of certain service and/or performance based conditions. Subsequent to the IPO, the Company’s stock option grants have been subject to graded vesting conditions based on service. The maximum contractual term of the Company’s stock options is ten years. The following table summarizes the activity of common stock options for the period from December 31, 2020 through the year ended December 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 2,173,331 $ 9.84 (1) Exercised (208,500) $ 3.56 Forfeited (39,996) $ 3.53 Expired (40,484) $ 14.52 Outstanding at December 31, 2021 1,884,351 $ 6.99 (2) Exercised (199,970) $ 3.06 Forfeited (51,860) $ 3.98 Expired (111,524) $ 11.97 Outstanding at December 31, 2022 1,520,997 $ 7.24 Exercised (197,941) $ 2.58 Forfeited (284,956) $ 3.39 Expired (328,677) $ 12.36 Outstanding at December 31, 2023 709,423 $ 7.73 3.14 $ 2,322 Exercisable at December 31, 2023 709,423 $ 7.73 3.14 $ 2,322 (1) On December 14, 2020, the Company’s Board of Directors declared a special cash dividend of $1.80 per share to the stockholders of record at the close of business on December 31, 2020, using after tax cash proceeds and cash on hand from the sale of the Performance Materials business. This reflects the impact of the reduction in the strike price on all outstanding vested and unvested stock options by $1.80 per share. (2) Reflects the impact of the reduction in the strike price on all outstanding vested and unvested stock options by $3.20 per share as described above. The aggregate intrinsic value per the above table represents the difference between the fair value the Company’s common stock on the last trading day of the reporting period (determined in accordance with the plan terms) and the exercise price of in-the-money stock options multiplied by the respective number of stock options as of that date. The total intrinsic value of stock options exercised were $1,693, $1,306, and $1,767 during the years ended December 31, 2023, 2022 and 2021 respectively. Additionally, cash proceeds received by the Company from the exercise of stock options were not material for the years ended December 31, 2023, 2022 and 2021 respectively. There were no stock option awards granted during the years ended December 31, 2023, 2022 and 2021. The Company uses the Black-Scholes option pricing model to determine the fair value of its stock option grants. Restricted Stock Awards, Restricted Stock Units and Performance Stock Units Restricted Stock Awards The Company has granted restricted stock awards subject to vesting conditions based on (1) service only, (2) performance only, or (3) a combination of service and performance conditions, dependent on which event occurs first. The vesting requirements for the majority of these awards were based upon the achievement of a performance condition. As defined in the award agreements, each award subject to the performance condition fully vests upon the occurrence of a defined liquidity event upon which certain investment funds affiliated with CCMP receive proceeds exceeding certain thresholds. Although achievement of the performance condition is subject to continued service with the Company, the terms of awards issued with performance conditions stipulate that the performance vesting condition can be attained for a period of six months following separation from service under certain circumstances, depending on the means of separation from the Company and subject to other factors such as individual separation agreements. The same performance vesting condition for the Company’s restricted stock awards also governs the achievement of the performance vesting condition for the Company’s stock options. As of December 31, 2023, all of the Company’s outstanding unvested restricted stock awards were subject to the performance vesting condition. In addition to restricted stock awards, the Company has granted restricted stock units and performance stock units as part of its equity incentive compensation program. Restricted Stock Units Each restricted stock unit provides the recipient with the right to receive a share of common stock subject to graded vesting terms based on service, which generally requires one year of service for members of the Company’s board of directors and three years of service for employees. The value of the restricted stock units granted by the Company is based on the average of the high and low trading prices of the Company’s common stock on the NYSE on the preceding trading day, in accordance with the Company’s policy for valuing such awards. Compensation expense related to the restricted stock units is recognized on a straight-line basis over the respective vesting period. Performance Stock Units 2023 Grants During the year ended December 31, 2023, the Company granted 721,537 performance stock units (at target) under its equity incentive plan. The performance stock units granted during the year ended December 31, 2023 provide the recipients with the right to receive shares of common stock dependent on the achievement of a TSR goal, and are generally subject to the provision of service through the vesting date of the award. The performance period for the TSR goal is measured based on a three-year performance period from January 1, 2023 through December 31, 2025. The TSR goal is based on the Company’s actual TSR percentage increase over the performance period. Depending on the Company’s performance relative to the TSR goal, each performance stock unit award recipient is eligible to receive a percentage of the target number of shares granted to the recipient, ranging from zero to 200%. The performance stock units, to the extent earned, will vest on the date the Compensation Committee certifies the achievement of the performance metric for the three-year period ending December 31, 2025 which will occur subsequent to the end of the performance period and after the Company files its annual consolidated financial statements for the year ending December 31, 2025. The Company used a Monte Carlo simulation to estimate the $12.27 weighted average fair value of the awards for the year ended December 31, 2023. 2022 Grants During the year ended December 31, 2022, the Company granted 295,132 performance stock units (at target) under its equity incentive plan. The performance stock units granted during the year ended December 31, 2022 provide the recipients with the right to receive shares of common stock dependent on the achievement of a TSR goal, and are generally subject to the provision of service through the vesting date of the award. The performance period for the TSR goal is measured based on a three-year performance period from January 1, 2022 through December 31, 2024. The TSR goal is based on the Company’s actual TSR percentage increase over the performance period. Depending on the Company’s performance relative to the TSR goal, each performance stock unit award recipient is eligible to receive a percentage of the target number of shares granted to the recipient, ranging from zero to 200%. The performance stock units, to the extent earned, will vest on the date the Compensation Committee certifies the achievement of the performance metric for the three-year period ending December 31, 2024, which will occur subsequent to the end of the performance period and after the Company files its annual consolidated financial statements for the year ending December 31, 2024. The Company used a Monte Carlo simulation to estimate the $8.82 weighted average fair value of the awards. 2021 Grants The Company granted 211,985 performance stock units (at target) during the year ended December 31, 2021 that provide the recipients with the right to receive shares of common stock dependent on the achievement of a TSR goal, and are generally subject to the provision of service through the vesting date of the award. The performance period for the TSR goal is measured based on a three-year performance period from January 1, 2021 through December 31, 2023. The TSR goal is based on the Company’s actual TSR percentage increase over the performance period. Depending on the Company’s performance relative to the TSR goal, each performance stock unit award recipient is eligible to earn a percentage of the target number of shares granted to the recipient, ranging from zero to 200%. The performance stock units, to the extent earned, will vest on the date the Compensation Committee certifies the achievement of the performance metric for the three-year period ending December 31, 2023, which will occur subsequent to the end of the performance period and after the Company files its annual consolidated financial statements for the year ending December 31, 2023. The Company used a Monte Carlo simulation to estimate the $13.21 weighted average fair value of the awards. 2020 Grants In March 2023, the Compensation Committee certified the achievement of the performance metrics for the three-year period ending December 31, 2022, related to the performance stock units (“PSUs”) granted during the year ended December 31, 2020. Fifty percent of the target number of such PSUs could be earned depending on performance against a Company-specific financial performance target, and 50% of the target number of such PSUs could be earned depending on performance against a TSR goal, subject to the provision of service through the vesting date of the awards. The Company-specific financial performance target and the TSR goal were measured independently of each other, and each PSU award recipient was eligible to earn a percentage of the target number of shares granted to the recipient, ranging from zero to 200%. The awards vested during the year ended December 31, 2023 as follows: 53.3% of target with respect to the portion of the PSU award subject to the Company-specific financial measure, and 56.0% of target with respect to the portion of the PSU award subject to the TSR goal. Weighted Average Assumptions The following table shows the weighted average assumptions for each of the unvested grants: 2023 Grants 2022 Grants 2021 Grants Expected dividend yield — % — % — % Risk-free interest rate 3.80 % 1.51 % 0.20 % Expected volatility 48.82 % 44.51 % 41.70 % Expected term (in years) 2.96 2.91 2.95 Award Activity The following table summarizes the activity of restricted stock awards, restricted stock units and performance stock units for the period from December 31, 2020 through the year ended December 31, 2023: Restricted Stock Awards Restricted Stock Units Performance Stock Units Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Nonvested as of December 31, 2020 897,015 $ 13.80 (1) 1,841,139 $ 16.14 965,736 (2) $ 17.69 Granted — $ — 1,697,623 $ 15.39 211,985 $ 13.21 Vested — $ — (773,619) $ 16.00 — $ — Forfeited (263,291) $ 15.31 (1) (257,722) $ 16.03 (60,166) $ 17.11 Nonvested as of December 31, 2021 633,724 $ 15.84 (1) 2,507,421 $ 15.68 1,117,555 (2) $ 16.91 Granted — $ — 2,779,690 $ 10.28 295,132 $ 8.82 Vested (84,903) $ 8.83 (1,550,969) $ 15.08 (496,442) $ 15.41 Forfeited (271,765) $ 15.84 (1,271,424) $ 12.27 (276,713) $ 12.33 Nonvested as of December 31, 2022 277,056 $ 15.66 2,464,718 $ 11.73 639,532 (2) $ 16.32 Granted 5,081 $ 9.84 1,195,835 $ 9.84 721,537 $ 12.28 Vested (5,081) $ 9.84 (1,436,301) $ 11.84 (200,204) $ 20.16 Forfeited (277,056) $ 15.66 (261,424) $ 11.27 (201,648) $ 18.57 Nonvested as of December 31, 2023 — $ — 1,962,828 $ 10.55 959,217 (2) $ 11.84 (1) Reflects the impact of the modification on all unvested restricted stock awards as described above. (2) Based on target. The total fair value of restricted stock awards that vested during the years ended December 31, 2023, 2022 and 2021 was $50, $749 and zero, respectively. The total fair value of restricted stock units that vested during the years ended December 31, 2023, 2022 and 2021 was $17,008, $15,579 and $11,507, respectively. The total fair value of performance stock units that vested during the years ended December 31, 2023, 2022 and 2021 was $4,035, $5,277 and zero, respectively. Stock-Based Compensation Expense For the years ended December 31, 2023, 2022 and 2021, total stock-based compensation expense for the Company on a continuing operations basis was $16,031, $20,632 and $31,838, respectively. The associated income tax benefit recognized in the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021 was $1,826, $2,799 and $7,735, respectively. As of December 31, 2023, there was no unrecognized compensation cost related to nonvested restricted stock awards subject to service vesting conditions. As of December 31, 2023, unrecognized compensation cost was $9,760 for restricted stock units and $6,360 for performance stock units. The weighted-average period over which these costs are expected to be recognized at December 31, 2023 is 1.69 years for the restricted stock units and 2.08 years for the performance stock units. No expense has been recognized for any stock options subject to the performance condition for the years ended December 31, 2023, 2022 and 2021, and no expense has been recognized for any restricted stock awards subject to the performance condition for the years ended December 31, 2023 and 2022, as the performance-based criteria was not achieved nor considered probable of achievement. Prior to the Company’s IPO, the Company issued restricted stock awards and stock options with performance conditions that were based on the occurrence of a defined liquidity event upon which certain investment funds affiliated with CCMP receive proceeds exceeding defined thresholds. If an exit event occurs that exceeded the defined threshold, then all of these restricted stock awards and stock options of the Company vest 100%, with no potential for partial vesting or excess achievement. If an exit event or events occurs with no further possibility of meeting the defined threshold, then all of the Company’s restricted stock awards and stock options subject to the performance vesting condition will be forfeited. In addition to the defined liquidity event, subsequent to the Company’s IPO, the performance vesting condition can also be achieved if the average closing trading price of the Company’s common stock on the NYSE over any consecutive ten-day trading period equals or exceeds a price that would be equivalent to the achievement of the threshold proceeds to CCMP, a former stockholder. When a liquidity event occurred on March 7, 2023, the investment funds affiliated with CCMP received proceeds that did not exceed the defined thresholds. As a result, all of the Company’s restricted stock awards and stock options subject to the performance condition were forfeited and cancelled. See Note 22 to these consolidated financial statements for further information on the number of restricted stock awards and stock options outstanding subject to performance-based vesting. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 22. Earnings per Share: Basic earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding during the period for the computation of basic earnings per share excludes restricted stock awards that have legally been issued but are nonvested during the period, as the sale of these shares is prohibited pending satisfaction of certain vesting conditions by the award recipients in order to earn the rights to the shares (see Note 21 to these consolidated financial statements for further information regarding outstanding nonvested restricted stock awards). Diluted earnings per share is calculated as income (loss) available to common stockholders, divided by the weighted average number of common and potential common shares outstanding during the period, if dilutive. Potential common shares reflect (1) unvested restricted stock awards and restricted stock units with service vesting conditions, (2) performance stock units with vesting conditions considered probable of achievement and (3) options to purchase common stock, all of which have been included in the diluted earnings per share calculation using the treasury stock method. The reconciliation from basic to diluted weighted average shares outstanding is as follows: Years ended 2023 2022 2021 Weighted average shares outstanding – Basic 118,367,214 133,601,322 136,167,384 Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions 1,120,495 1,486,850 1,541,547 Weighted average shares outstanding – Diluted 119,487,709 135,088,172 137,708,931 Basic and diluted income (loss) per share are calculated as follows: Years ended 2023 2022 2021 Numerator: Income from continuing operations attributable to Ecovyst Inc. $ 71,154 $ 69,795 $ 1,794 Income (loss) from discontinued operations attributable to Ecovyst Inc. — 3,902 (141,743) Net income (loss) attributable to Ecovyst Inc. $ 71,154 $ 73,697 $ (139,949) Denominator: Weighted average shares outstanding – Basic 118,367,214 133,601,322 136,167,384 Weighted average shares outstanding – Diluted 119,487,709 135,088,172 137,708,931 Net income (loss) per share: Basic income per share - continuing operations $ 0.60 $ 0.52 $ 0.01 Diluted income per share - continuing operations $ 0.60 $ 0.52 $ 0.01 Basic income (loss) per share - discontinued operations $ — $ 0.03 $ (1.04) Diluted income (loss) per share - discontinued operations $ — $ 0.03 $ (1.03) Basic income (loss) per share $ 0.60 $ 0.55 $ (1.03) Diluted income (loss) per share $ 0.60 $ 0.55 $ (1.02) The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective year that were excluded from the calculation of diluted earnings per share: Years ended 2023 2022 2021 Restricted stock awards with performance only targets not yet achieved — 539,688 839,432 Stock options with performance only targets not yet achieved 51,526 309,984 373,105 Anti-dilutive restricted stock units and performance stock units 286,729 20,497 6,214 Anti-dilutive stock options 508,623 776,594 244,473 Restricted stock awards and stock options with performance only vesting conditions were not included in the dilution calculation, as the performance targets have not been achieved nor were probable of achievement as of the end of the respective periods. These awards and stock options were canceled on March 7, 2023 (see Note 21 of these consolidated financial statements for further information). Certain stock options to purchase shares of common stock were excluded from the computation of diluted earnings per share for the respective periods because the options’ exercise price was greater than the average market price of the common shares. These stock options and anti-dilutive awards are not included in the dilution calculation, as their inclusion would have the effect of increasing diluted income per share or reducing diluted loss per share. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 23. Commitments and Contingent Liabilities: Environmental Contingencies There is a risk of environmental impact in the Company’s manufacturing operations. The Company’s environmental policies and practices are designed to comply with existing laws and regulations and to minimize the possibility of significant environmental impact. The Company is also subject to various other lawsuits and claims with respect to matters such as governmental regulations, labor and other actions arising out of the normal course of business. All claims that are probable and reasonably estimable have been accrued for in the Company’s consolidated financial statements. When these matters are ultimately concluded and determined, the Company believes that there will be no material adverse effect on its consolidated financial position, results of operations or liquidity. The Company has recorded a reserve of $313 and $306 as of December 31, 2023 and 2022, respectively, to address remaining subsurface remedial and wetlands/marsh management activities at the Company’s Martinez, CA site. Although currently a sulfuric acid regeneration plant, the site originally was operated by Mountain Copper Company (“Mococo”) as a copper smelter. Also, the site sold iron pyrite to various customers and allowed their customers to deposit waste iron pyrite cinder and slag on the site. The property is adjacent to Peyton Slough, where Mococo had a permitted discharge point from its process. In 1997, the San Francisco Bay Regional Water Quality Control Board (“RWQCB”) required characterization and remediation of Peyton Slough for Copper, Zinc and Acidic Soils. Various remediation activities were undertaken and completed, and the site has received final concurrence from the Army Corps with respect to the completed work. The RWQCB has agreed that Ecoservices, has achieved the goals for vegetative cover. The current marsh condition is being sustained by the opening and subsequent closing of the tide gates on a periodic basis. The Company is continuing to indicate to the RWQCB that a plan to involve impacted stakeholders and to work towards development of an alliance for operating, maintaining and funding the tide gates is appropriate. The Company is currently in the process of applying for modified permits for the long-term maintenance of Peyton Slough. As of December 31, 2023 and 2022, the Company has recorded a reserve of $121 and $102, respectively, for subsurface remediation, including the Soil Vapor Extraction Project, at the Company’s Dominguez, CA site. In the 1980s and 1990s, the EPA and the Los Angeles Regional Water Quality Control Board conducted investigations of the site due to historic chlorinated pesticide and chlorinated solvent use. Soil and groundwater beneath the site were impacted by chlorinated solvents and associated breakdown products, petroleum hydrocarbons, chlorinated pesticides and metals. A Corrective Measures Plan approved in October 2011 requires (1) soil vapor extraction (“SVE”) in affected areas, (2) covering of unpaved areas containing pesticide impacted soil, and (3) annual groundwater monitoring of the perched water-bearing zone. Annual groundwater sampling and soil vapor monitoring indicates that the SVE system has been effective in reducing subsurface contaminant levels. The Company is moving in the direction of rendering the SVE system dormant and potentially closing this matter within the next few years following rebound testing, including the preparation of cleanup goals as requested by the California Department of Toxic Substances Control. Letters of Credit At December 31, 2023, the Company had outstanding letters of credit of $4,043. Letters of credit are guarantees of payment to third parties. The Company’s letters of credit are used primarily as collateral for various items, including environmental, energy and insurance payments. The letters of credit are supported by the Company’s ABL facility. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 24. Related Party Transactions: The Company maintains certain policies and procedures for the review, approval and ratification of related party transactions to ensure that all transactions with selected parties are fair, reasonable and in the Company’s best interests. All significant relationships and transactions are separately identified by management if they meet the definition of a related party or a related party transaction. Related party transactions include transactions that occurred during the year, or are currently proposed, in which the Company was or will be a participant, and for which any related person had or will have a direct or indirect material interest. All related party transactions are reviewed, approved and documented by the appropriate level of the Company’s management in accordance with these policies and procedures. Joint Venture Agreement The Company entered into a joint venture agreement (the “ZI Partnership Agreement”) in 1988 with Shell Catalysts & Technologies, an affiliate of Royal Dutch Shell plc, to form Zeolyst International, a 50/50 joint venture partnership (the “Partnership”). Under the terms of the ZI Partnership Agreement, the Partnership leases certain land used in its Kansas City production facilities from Ecovyst. This lease, which has been recorded as an operating lease, provided for rental payments to the Company of $310, $310 and $310 during the years ended December 31, 2023, 2022 and 2021, respectively. The terms of this lease are evergreen as long as the ZI Partnership Agreement is in place. The Partnership had $236 sales to the Company during the year ended December 31, 2023, while no sales were made to the Company during the years December 31, 2022 and 2021, respectively. The Partnership purchases certain of its raw materials from the Company and is charged for various manufacturing costs incurred at the Company’s Kansas City production facility. The amount of these costs charged to the Partnership were $20,594, $23,699 and $21,778 for the years ended December 31, 2023, 2022 and 2021, respectively. Certain administrative, marketing, engineering, management-related, and research and development services are provided to the Partnership by the Company. During the years ended December 31, 2023, 2022 and 2021, the Partnership was charged $14,758, $13,908 and $11,406, respectively, for these services. In addition, the Partnership was charged certain product demonstration costs of $1,819, $1,621 and $924 during the years ended December 31, 2023, 2022 and 2021, respectively. These charges to the Partnership are recorded as reductions in either cost of goods sold or selling, general and administrative expenses in the consolidated statements of income, depending on the nature of the expenditures. As of December 31, 2023 and 2022, the Company had an accounts receivable from the Partnership of $3,164 and $2,636. As of December 31, 2023 and 2022, there were no accounts payable with the Partnership. Other From time to time, the Company makes sales to and purchases raw materials from portfolio companies of funds that are affiliated with INEOS Capital Partners. The Company had sales of $3,395, $10,880 and $3,923 to companies affiliated with INEOS Capital Partners during the years ended December 31, 2023, 2022, and December 31, 2021, respectively. Purchases of raw materials from companies affiliated with INEOS Capital Partners were immaterial for the years ended December 31, 2023, 2022 and 2021. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 25. Supplemental Cash Flow Information: The following table presents supplemental cash flow information for the Company, which includes activity from both continuing and discontinued operations: Years ended 2023 2022 2021 Cash paid during the year for: Income taxes, net of refunds $ 22,437 $ 25,556 $ 11,843 Interest (1) 42,081 35,370 59,040 Non-cash investing activity: Capital expenditures acquired on account but unpaid as of the year end 3,427 4,653 6,116 Non-cash financing activities (2) : Accrued excise tax on share repurchases (Note 7) 638 — — (1) Cash paid for interest is shown net of capitalized interest and includes the cash received or paid on the Company’s interest rate cap agreements designated as cash flow hedges for the periods presented. Cash paid for interest also excludes $2,307 of net interest proceeds on swaps designated as net investment hedges for the year ended December 31, 2021, which was included within cash flows from investing activities, discontinued operations in the Company’s consolidated statements of cash flows. (2) For the supplemental non-cash information on lease liabilities arising from obtaining right-of-use lease assets, see Note 12 to these consolidated financial statements for further information. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 26. Subsequent Events: The Company has evaluated subsequent events since the balance sheet date and determined that there are no additional matters to disclose. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information | SCHEDULE I ECOVYST INC. AND SUBSIDIARIES (PARENT) CONDENSED FINANCIAL INFORMATION CONDENSED STATEMENTS OF INCOME (in thousands) Years ended 2023 2022 2021 Stock compensation expense $ 16,031 $ 20,632 $ 39,523 Equity in net (income) loss from subsidiaries (87,185) (94,329) 100,426 Net income (loss) 71,154 73,697 (139,949) Other comprehensive income (loss), net of tax: Pension and postretirement benefits 1,120 (2,676) 9,530 Net gain (loss) from hedging activities (12,126) 24,382 2,914 Foreign currency translation 4,056 (9,922) (2,248) Total other comprehensive income (6,950) 11,784 10,196 Comprehensive income (loss) $ 64,204 $ 85,481 $ (129,753) SCHEDULE I ECOVYST INC. AND SUBSIDIARIES (PARENT) CONDENSED FINANCIAL INFORMATION CONDENSED BALANCE SHEETS (in thousands, except share and per share amounts) December 31, December 31, ASSETS Investment in subsidiaries $ 705,464 $ 707,229 Total assets $ 705,464 $ 707,229 LIABILITIES Total liabilities $ — $ — STOCKHOLDERS' EQUITY Common stock (0.01 par); authorized shares 450,000,000; issued shares 140,744,045 and 139,571,272 on December 31, 2023 and 2022, respectively; outstanding shares 116,116,895 and 122,186,238 on December 31, 2023 and 2022, respectively 1,407 1,396 Preferred stock (0.01 par); authorized shares 50,000,000; no shares issued or outstanding on December 31, 2023 and 2022, respectively — — Additional paid-in capital 1,102,581 1,091,475 Accumulated deficit (170,856) (242,010) Treasury stock, at cost; shares 24,627,150 and 17,385,034 on December 31, 2023 and 2022, respectively (226,710) (149,624) Accumulated other comprehensive (loss) income (958) 5,992 Total equity 705,464 707,229 Total liabilities and equity $ 705,464 $ 707,229 SCHEDULE I ECOVYST INC. AND SUBSIDIARIES (PARENT) CONDENSED FINANCIAL INFORMATION CONDENSED STATEMENTS OF CASH FLOWS (in thousands) Years ended 2023 2022 2021 Cash flows from operating activities: Net income (loss) $ 71,154 $ 73,697 $ (139,949) Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income from subsidiaries (87,185) (94,329) 100,426 Stock compensation expense 16,031 20,632 39,523 Net cash provided by operating activities — — — Cash flows from investing activities: Distribution from subsidiaries — — 435,593 Net cash provided by investing activities — — 435,593 Cash flows from financing activities: Dividends paid to stockholders — — (435,593) Net cash used in financing activities — — (435,593) Effect of exchange rate changes on cash and cash equivalents — — — Net change in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — Cash and cash equivalents at end of period of continuing operations $ — $ — $ — SCHEDULE I ECOVYST INC. AND SUBSIDIARIES (PARENT) CONDENSED FINANCIAL INFORMATION NOTES TO CONDENSED SCHEDULE I 1. Description of Ecovyst Inc. and Subsidiaries Ecovyst Inc. (“Ecovyst” or the “Parent Company”) is a holding company that conducts substantially all of its business operations through its wholly owned subsidiary, Ecovyst Catalyst Technologies LLC. As specified in certain of Ecovyst Catalyst Technologies LLC’s debt agreements, there are restrictions on the ability of Ecovyst Catalyst Technologies LLC to make payments to its stockholder, Ecovyst, on behalf of its equity interests (refer to Note 16 to the Ecovyst consolidated financial statements for further information regarding Ecovyst debt). 2. Basis of Presentation The accompanying condensed Parent Company financial statements are required in accordance with Rule 4-08(e)(3) of Regulation S-X. These condensed financial statements have been presented on a “parent-only” basis and are not the general-purpose financial statements of Ecovyst. Under a parent-only presentation, the Parent Company’s investment in its consolidated subsidiary is recorded based upon its proportionate share of the subsidiary’s net assets, similar to presenting it under the equity method of accounting. Under the equity method, the investment in subsidiary is stated at cost plus contributions and equity in undistributed income (loss) of the subsidiary, less distributions received since the date of acquisition. These parent-only financial statements should be read in conjunction with Ecovyst’s audited consolidated financial statements and the accompanying notes thereto. 3. Stock-Based Compensation Refer to Note 21 of the notes to the Ecovyst consolidated financial statements for a description of stock-based compensation. 4. Dividends Paid On August 4, 2021, Ecovyst’s Board of Directors declared a special cash dividend of $3.20 per share, using the after tax cash proceeds from the sale of the Performance Chemicals business. The dividend was paid on August 23, 2021 to the Company’s stockholders of record at the close of business on August 12, 2021. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ 71,154 | $ 73,697 | $ (139,949) |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On December 14, 2020, the Company completed the sale of its Performance Materials business for $650,000. The financial results of this business are presented as discontinued operations in the consolidated financial statements for the 2021 period presented. On August 1, 2021, the Company completed the sale of its Performance Chemicals business for $1,100,000. The financial results of this business are presented as discontinued operations in the consolidated financial statements for the 2022 and 2021 periods presented. See Note 4 to these consolidated financial statements for further information on these transactions. The Company has two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications; and Advanced Materials & Catalysts provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through the Zeolyst Joint Venture, innovates and supplies zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical processes. Effective November 28, 2023, the Company renamed the Catalyst Technologies segment to Advanced Materials & Catalysts. Beginning with the year ended December 31, 2023, the segment results and disclosures included in the Company’s consolidated financial statements reflect the new segment name for all periods presented. This change to the Company’s segment name does not change the Company’s consolidated balance sheets, statements of income or cash flows for the prior periods or the way the Company’s CODM evaluated the business. The Company’s regeneration services product group, which is a part of the Company’s Ecoservices segment, typically experiences seasonal fluctuations as a result of higher demand for gasoline products in the summer months and lower demand in the winter months. These demand fluctuations result in higher sales and working capital requirements in the second and third quarters. The notes to the consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its controlled subsidiaries. Investments in affiliated companies are recorded at cost plus the Company’s equity in their undistributed earnings. All intercompany transactions have been eliminated. |
Foreign Currency Transactions and Translations Policy | Foreign Currency Translation. All assets and liabilities of foreign subsidiaries and affiliated companies are translated to U.S. dollars using exchange rates in effect at the balance sheet date. Income and expense items are translated at average exchange rates during the year. Adjustments resulting from translation of the balance sheets and statements of income are included in stockholders’ equity as part of accumulated other comprehensive income (loss), and are included in earnings only upon the sale or liquidation of the underlying foreign subsidiary or affiliated company. Foreign currency transaction gains and losses are recognized in earnings based on differences between foreign currency exchange rates on the transaction date and on the settlement date. Adjustments resulting from translation of certain intercompany loans, which are not considered permanent and are denominated in foreign currencies, are included in other expense (income), net in the consolidated statements of income. The Company considers intercompany loans to be of a permanent or long-term nature if management expects and intends that the loans will not be repaid. For the years ended December 31, 2023, 2022 and 2021, all intercompany loan arrangements were determined to be non-permanent based on management’s intention as well as actual lending and repayment activity. Therefore, the foreign currency transaction gains or losses associated with the int ercompany loans were recorded in the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021. Net foreign currency exchange (gains) and losses included in other expense (income), net were $(589), $978 and $4,716 for the years ended December 31, 2023, 2022 and 2021 , respectively. The n et foreign currency (gains) and losses realized during these years were primarily driven by the non-permanent intercompany debt denominated in local currency and translated to U.S. dollars. |
Cash and Cash Equivalents | Cash and Cash Equivalents. |
Restricted Cash | Restricted Cash. Restricted cash, which is restricted as to withdrawal or usage, is classified separately from cash and cash equivalents on the Company’s consolidated balance sheets. The Company had no restricted cash balances as of December 31, 2023 and 2022. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Credit Losses. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses is the Company’s best estimate of the amount of probable credit losses in its existing accounts receivable and is reviewed during each reporting period over their contractual life. The Company recognizes an allowance for credit losses based on historical collection experience, current regional economic and market conditions, the aging of accounts receivable and assessments of current creditworthiness of customers. Account balances are charged against the allowance when the Company believes it is probable that the associated receivables will not be recovered. If the financial condition of the Company’s customers were to deteriorate resulting in an impairment of their ability to make payments, additional allowances may be required. The Company does not have any off-balance sheet credit exposure related to its customers. The Company’s allowance for credit losses was not material as of December 31, 2023 and 2022. |
Inventories | Inventories. Certain domestic inventories are stated at the lower of cost or market and valued using the last-in, first-out (“LIFO”) method. All other inventories are stated at the lower of cost or net realizable value and valued using the weighted average cost or first-in, first-out (“FIFO”) methods. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment are carried at cost and include expenditures for new facilities, major renewals and betterments. The Company capitalizes the cost of furnace rebuilds as part of property, plant and equipment. Maintenance, repairs and minor renewals are charged to expense as incurred. The Company capitalizes certain internal costs associated with the implementation of purchased software. When property, plant and equipment is retired or otherwise disposed of, the net carrying amount is eliminated with any gain or loss on disposition recognized in earnings at that time. Depreciation is provided on the straight-line method based on the estimated useful lives of the assets, which generally range from 15 to 33 years for buildings and improvements and 3 to 10 years for machinery and equipment. Leasehold improvements are depreciated using the straight-line method based on the shorter of the useful life of the improvement or remaining lease term. The Company capitalizes the interest cost associated with the development and construction of significant new plant and equipment and depreciates that amount over the lives of the related assets. Capitalized interest recorded during the years ended December 31, 2023, 2022 and 2021 was $1,964, $1,442 and $1,235, respectively. |
Leases | Lea ses . The Company has operating and finance lease agreements with remaining lease terms as of December 31, 2023 of up to 18 years, including leases of land, buildings, railcars, vehicles, manufacturing equipment and general office equipment. Some leases include options to terminate or extend for one or more years. These options are incorporated in the Compan y’s lease term when it is reasonably certain that the option will be exercised. Some leases include options to purchase, which the Company assesses under the guidance to determine if these leases should be classified as finance lease agreements. When the Company enters into an arrangement, at inception, the Company determines if the arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. Some of the Company’s lease arrangements contain lease components (e.g. minimum rent payments) and non-lease components (e.g. maintenance). The Company accounts for the lease and non-lease components separately based on the estimated standalone price of each component. Certain of the Company’s lease agreements include rental payments that are adjusted periodically for an index or rate and these are initially measured using the index or rate in effect at the commencement date. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes a right-of-use lease asset and lease liability at the lease commencement date based on the present value of the remaining lease payments over the lease term. The Company assesses its leasing arrangements to determine the rate implicit in the lease arrangement. Historically, the Company’s leasing arrangements do not contain the information necessary to determine the rate implicit in the lease. As such, the Company utilizes its incremental borrowing rate over the relevant lease term, which is the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The incremental borrowing rate is determined at the lease commencement date and is developed utilizing a readily available market interest rate curve adjusted for the Company’s credit quality. The Company has elected to use a portfolio approach to apply its incremental borrowing rate to individual leases based on lease term and geographic jurisdiction. Short-term leases, which have an initial term of twelve months or less, are not recorded on the Company’s balance sheet. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for financing leases is bifurcated into two components, with the amortization expense component of the right-of-use asset recognized on a straight-line basis and the interest expense component recognized using the effective interest method over the lease term. The amortization expense component of the right-of-use lease asset is included in cost of goods sold and in selling, general and administrative expenses and the interest expense component is included in interest expense, net on the consolidated statements of income. |
Spare Parts | Spare Parts. Spare parts are maintained by the Company’s facilities to keep machinery and equipment in working order. Spare parts are capitalized and included in other long-term assets. Spare parts are measured at cost and are not depreciated or expensed until utilized; however, reserves may be provided on aged spare parts. When a spare part is utilized as part of an improvement to property, plant and equipment, the carrying value is depreciated over the applicable life once placed in service. Otherwise, the spare part is expensed and charged as a cost of production when utilized. |
Investments in Affiliated Companies | Investments in Affiliated Companies. Investments in affiliated companies are accounted for using the equity method of accounting if the investment provides the Company with the ability to exercise significant influence, but not control, over the investee. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between 20% and 50%, although other factors, such as representation on the investee’s board of directors and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investments in equity-method investees are recorded in the consolidated balance sheets as investments in affiliated companies, and the Company’s share of the investees’ earnings or losses, together with other than temporary impairments in value, is recorded as equity in net income from affiliated companies in the consolidated statements of income. Any differences between the Company’s cost of an equity method investment and the underlying equity in the net assets of the investment, such as fair value step-ups resulting from acquisitions, are accounted for according to their nature and impact the amounts recognized as equity in net income from affiliated companies in the consolidated statements of income. The Company evaluates all distributions received from its equity method investments using the nature of distribution approach. Under this approach, the Company evaluates the nature of activities of the investee that generated the distribution. The distributions received are either classified as a return on investment, which is presented as a component of operating activities on the Company’s consolidated statements of cash flows, or as a return of investment, which is presented as a component of investing activities on the Company’s consolidated statements of cash flows. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company is required to test goodwill associated with each of its reporting units for impairment at least annually and whenever events or circumstances indicate that it is more likely than not that goodwill may be impaired. The Company performs its annual goodwill impairment test as of October 1. Goodwill is tested for impairment at the reporting unit level. In performing tests for goodwill impairment, the Company is able to use its discretion to first perform an optional qualitative assessment about the likelihood of the carrying value of a reporting unit exceeding its fair value. The qualitative assessment need not be applied to all reporting units. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount based on the qualitative assessment, the Company will perform a quantitative goodwill impairment test to identify the potential goodwill impairment and measure the amount of the goodwill impairment loss, if any, to be recognized for that reporting unit. For the annual assessments in 2023 and 2022, the Company bypassed the option to perform the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test for each of its reporting units. The quantitative test identifies both the potential existence of impairment and the amount of impairment loss. In applying the quantitative test, the Company calculates and compares the reporting unit’s estimated fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment loss is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit and the loss establishes a new basis in the goodwill. Subsequent reversal of an impairment loss is not permitted. For intangible assets other than goodwill, definite-lived intangible assets are amortized over their respective estimated useful lives. Intangible assets with indefinite lives are not amortized, but rather are tested for impairment at least annually or more frequently if events occur or circumstances change that would more likely than not reduce the fair value of the intangible asset below its carrying amount. The Company tests its indefinite-lived intangible assets as of October 1 of each year in conjunction with its annual goodwill impairment test. |
Impairment Assessment of Long-Lived Assets | Impairment Assessment of Long-Lived Assets. The Company performs an impairment review of property, plant and equipment and definite-lived intangible assets when facts and circumstances indicate that the carrying value of an asset or asset group may not be recoverable from its undiscounted future cash flows. When evaluating long-lived assets for impairment, if the carrying amount of an asset or asset group is found not to be recoverable, a potential impairment loss may be recognized. An impairment loss is measured by comparing the carrying amount of the asset or asset group to its fair value. Fair value is determined using quoted market prices when available, or other techniques including discounted cash flows. The Company’s estimates of future cash flows involve assumptions concerning future operating performance, economic conditions and technological changes that may affect the future useful lives of the assets. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company utilizes certain derivative financial instruments to enhance its ability to manage risk, including exposure to interest rate fluctuations that exist as part of ongoing business operations. Derivative instruments are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures. All derivatives designated as hedges are recognized on the consolidated balance sheets at fair value. The Company may designate a derivative as a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge), a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge), a foreign currency fair-value or cash-flow hedge (foreign currency hedge), or a hedge of a net investment in a foreign operation (net investment hedge). The Company’s hedging strategies include derivatives designated as cash flow hedges and net investment hedges. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are recorded in other comprehensive income and subsequently reclassified into earnings in the same period(s) in which the hedged transaction affects earnings. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a hedge of a net investment in a foreign operation are recorded in the foreign currency translation adjustment account within accumulated other comprehensive income, where the associated gains and losses will remain until such time that the hedged net investment (foreign subsidiary) is sold or liquidated. Changes in the fair value of a derivative that is not designated or does not qualify as a hedge are recorded in the consolidated statements of income. Cash flows from derivative instruments are reported in the same cash flow category as the cash flows from the items being hedged. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. The Company also formally assesses whether each hedging relationship is highly effective in achieving offsetting changes in fair values or cash flows of the hedged item during the period, both at the inception of the hedge and on an ongoing basis. If it is determined that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly-effective hedge, hedge accounting is discontinued with respect to that derivative prospectively. |
Fair Value Measurement | Fair Value Measurements. Derivative contracts Derivative assets and liabilities can be exchange-traded or traded over-the-counter (“OTC”). The Company generally values exchange-traded derivatives using models that calibrate to market transactions and eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, forward curves, measures of volatility, and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as forward contracts, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. As of December 31, 2023, the Company had interest rate caps that were fair valued using Level 2 inputs. In addition, the Company applies a credit valuation adjustment to reflect credit risk which is calculated based on credit default swaps. To the extent that the Company’s net exposure under a specific master agreement is an asset, the Company utilizes the counterparty’s default swap rate. If the net exposure under a specific master agreement is a liability, the Company utilizes a default swap rate comparable to Ecovyst. The credit valuation adjustment is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the Company’s liabilities or that a market participant would be willing to pay for the Company’s assets. |
Treasury stock | Treasury Stock. |
Revenue Recognition | Revenue Recognition. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under its agreements, the Company performs the following steps: (i) identification of the contract with the customer; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price; (iv) allocation of the transaction price to the performance obligations based on estimated selling prices; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company identifies a contract when an agreement with a customer creates legally enforceable rights and obligations, which occurs when a contract has been approved by both parties, the parties are committed to perform their respective obligations, each party’s rights and payment terms are clearly identified, commercial substance exists and it is probable that the Company will collect the consideration to which it is entitled. The Company may offer rebates to customers who have reached a specified volume of optional purchases. The Company recognizes rebates given to customers as a reduction of revenue based on an allocation of the cost of honoring rebates earned and claimed to each of the underlying revenue transactions that result in progress by the customer toward earning the rebate. Rebates are recognized at the time revenue is recorded. The Company measures the rebate obligation based on the estimated amount of sales that will result in a rebate at the adjusted sales price per the respective sales agreement. |
Shipping and Handling | Shipping and Handling. |
Research and Development | Research and Development. Research and development costs of $7,797, $7,232 and $7,499 for the years ended December 31, 2023, 2022 and 2021, respectively, were expensed as incurred and reported in selling, general and administrative expenses in the consolidated statements of income. |
Income Taxes | Income Taxes. The Company operates within multiple taxing jurisdictions and is subject to tax filing requirements and potential audits within these jurisdictions. The Company uses the asset and liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. The Company evaluates its deferred tax assets each period to ensure that estimated future taxable income will be sufficient in character (e.g., capital gain versus ordinary income treatment), amount and timing, to result in their realizability. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets, unless it is more likely than not that those assets will be realized. Generally, APB 23 of ASC Topic 740, Income Taxes (“ASC 740”), provides guidance with respect to establishing deferred income taxes on earnings from foreign subsidiaries, to the extent that these earnings are considered to be available for repatriation. Further, ASC 740-30 requires that deferred taxes be established with respect to the earnings of a foreign subsidiary, unless existing tax law provides a means by which the investment in a subsidiary can be recovered tax-free. The Company has determined that it is able to repatriate the non-permanently reinvested earnings of its foreign subsidiaries in a tax-free manner. As such, the Company is able to assert, for purposes of ASC 740-30, that no deferred income taxes are needed with respect to earnings from foreign subsidiaries. The Company recognizes a financial statement benefit for positions taken for tax return purposes when it will be more likely than not (i.e. greater than 50%) that the positions will be sustained upon tax examination, based solely on the technical merits of the tax positions. Otherwise, no tax benefit is recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Tax examinations are often complex as tax authorities may disagree with the treatment of items reported by the Company and may require several years to resolve. These accrued liabilities represent a provision for taxes that are reasonably expected to be incurred on the basis of available information but which are not certain. |
Environmental Expenditures | Environmental Expenditures. |
Deferred Finance Costs | Deferred Financing Costs. Financing costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the related debt instruments on the Company’s consolidated balance sheets. Deferred financing costs are amortized as interest expense using the effective interest method over the respective terms of the associated debt instruments. |
Stock-Based Compensation | Stock-Based Compensation. |
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits. The Company sponsors two funded defined benefit pension plans that cover certain employees. Benefits for the plans are generally based on average final pay and years of service. The Company’s funding policy is to fund the minimum required contributions consistent with statutory requirements based on actuarial computations utilizing the projected unit credit method of calculation. The pension plans’ assets include equity and fixed income securities. Certain assumptions are made regarding the occurrence of future events affecting pension costs, such as mortality, withdrawal, disa blement and retirement, changes in compensation and benefits, and discount rates to reflect the time value of money. The major elements in determining pension income and expense are pension liability discount rates and the expected return on plan assets. The Company references rates of return on high quality, fixed income investments when estimating the discount rate, and the expected period over which payments will be made based upon historical experience. The long-term rate of return used to calculate the expected return on plan assets is the average rate of return estimated to be earned on invested funds for providing pension benefits. In addition to pension benefits, the Company provides certain health care benefits for employees who meet age, participation and length of service requirements at retirement. The Company uses explicit assumptions using the best estimates available of the plan’s future experience. Principal actuarial assumptions include: discount rates, present value factors, retirement age, participation rates, mortality rates, cost trend rates, Medicare reimbursement rates and per capita claims cost by age. Current interest rates as of the measurement date are used for discount rates in present value calculations. The Company also has defined contribution plans covering domestic employees of the Company and certain subsidiaries. |
Contingencies | Contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company and legal counsel evaluate the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a loss has been incurred and the amount of the liability can be estimated, then the estimated liability is accrued in the Company’s financial statements. If the assessment indicates that a loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed, including the approximate term, how the guarantee arose, and the events or circumstances that would require the guarantor to perform under the guarantee. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Correction of Errors | Correction of Errors. Correction of errors have been made to the historical presentation of the consolidated financial statements and the notes accompanying the consolidated financial statements. During the preparation of the condensed consolidated financial statements for the period ended June 30, 2023, the Company identified a presentation error in the components of accumulated other comprehensive income (loss) that originated in the year ended December 31, 2021 and remained uncorrected through the quarter ended March 31, 2023. As a result, the presentation of accumulated other comprehensive income (loss) in Note 7 was corrected by revising the opening balances as follows: Defined benefit and other postretirement plans Net gain (loss) from hedging activities Foreign currency translation As reported, December 31, 2021 $ 14,808 $ 2,254 $ (22,854) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2021 $ 2,168 $ 290 $ (8,250) As reported, December 31, 2022 $ 12,132 $ 26,636 $ (32,776) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2022 $ (508) $ 24,672 $ (18,172) This classification error within accumulated other comprehensive income (loss) did not impact total accumulated other comprehensive income (loss) for the periods included in these consolidated financial statements. Additionally, there was no impact on the consolidated statements of income and other comprehensive income (loss), consolidated balance sheets and consolidated statements of cash flows for the periods included in these consolidated financial statements. The Company assessed the materiality of this presentation error and concluded it was not material to the Company’s previously issued financial statements. Net income for the year ended December 31, 2023 increased by $1,390 from adjustments for the Company’s interest rate cap agreements related to prior year interest expense amortization, $840 from adjustments related to prior year sales rebate reserves and $2,776 from adjustments for the Company’s equity in net income of affiliated companies related to revised Zeolyst International historical results offset by $1,301 from other adjustments. The $3,705 total net impact of these adjustment was not material to the consolidated financial statements for any prior quarterly or annual periods or the current annual period. |
Accounting Standards Not Yet Adopted and Recently Adopted | Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance to improve disclosures related to incomes taxes. This new guidance requires public business entities to disaggregate information on the effective tax rate reconciliation and income taxes paid to provide greater transparency. Public business entities will be required to provide additional information in specified categories related to effective tax rate reconciliation in tabular form and provide income taxes paid by jurisdictions, with further disaggregation needed if amounts exceed 5% of the total. The new guidance is effective for fiscal years beginning after December 15, 2024. The Company will adopt the new guidance effective January 1, 2025 as required. In November 2023, the FASB issued guidance to improve the disclosures related to public business entities reportable segments. This new guidance requires entities to provide information regarding significant segment expenses, especially those segment expenses that are regularly reported to the Company’s chief operating decision maker (the Company’s Chief Executive Officer), or CODM. The guidance also require public entities to disclose the nature, type and amounts of other segment items by reportable segment. Public business entities will also have to report all annual disclosures about segments profits or losses that are required by ASC 280 on an interim basis, including the significant segment expenses and other segment items. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will adopt the new guidance effective January 1, 2024 as required. In October 2023, the FASB issued guidance to amend either presentation or disclosure requirements related to fourteen subtopics in the FASB Accounting Standards Codification, that are currently in the SEC Regulation S-X or Regulation S-K. The new guidance was issued in response to the SEC’s ruling on disclosure simplification. For entities subject to existing SEC disclosure requirements, the effective date of each amendment of the topics will be the date that the SEC removes the related disclosure from Regulation S-X or Regulation S-K. The guidance must be applied prospectively, with no early adoption permitted for entities subject to those existing SEC disclosures. The Company is currently evaluating the impact of the new guidance as it pertains to the fourteen subtopics that would impact the business and will apply prospectively once in effect. In August 2023, the FASB issued guidance for entities that meet the definition of a joint venture or a corporate joint venture, to adopt a new basis of accounting upon the formation of the joint venture. The new guidance requires the initial measurement of contributed net assets and liabilities at fair value on the formation date, recognition of goodwill for the difference between the fair value of the joint venture’s equity and net assets, and disclosures about the nature and financial impact of the transaction. The new guidance requires prospective application and is effective for all joint ventures that are formed on or after January 1, 2025, with early adoption permitted. Joint ventures that formed before January 1, 2025 may elect to retrospectively apply the new guidance. The Company will apply the guidance to any new joint ventures formed after the effective date. Accounting Standards Recently Adopted In October 2021, the FASB issued guidance that requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with revenue recognition guidance. Under current GAAP, contract assets and contract liabilities acquired in a business combination are recorded by the acquirer at fair value. The new guidance creates an exception to the general recognition and measurement principles related to business combinations, and is expected to result in the acquirer recognizing contract assets and liabilities at the same amounts recorded by the acquiree. The new guidance is effective for business combinations occurring during fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted the new guidance effective January 1, 2023 as required, and will apply the guidance prospectively to business combinations that occur after the adoption date. In March 2020 and January 2021, the FASB issued guidance to address certain accounting consequences from the anticipated transition from the use of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The new guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and may be elected over time as reference rate reform activities occur. The time period through which the practical expedients provided in the guidance is available was set to expire on December 31, 2022, but was extended through December 31, 2024 by the FASB in December 2022. During the year ended December 31, 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index of the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. In February 2023, the Company amended the 2021 Term Loan Facility (as defined below), the ABL Facility (as defined below) and all existing interest rate caps agreements to replace LIBOR with a secured overnight financing rate (“SOFR”) as the benchmark interest rate. See Note 16 and Note 18 to these consolidated financial statements for further information. The Company utilized the practical expedients under the guidance with respect to the transition of its debt facilities and interest rate hedging arrangements to SOFR, with no impact to its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As a result, the presentation of accumulated other comprehensive income (loss) in Note 7 was corrected by revising the opening balances as follows: Defined benefit and other postretirement plans Net gain (loss) from hedging activities Foreign currency translation As reported, December 31, 2021 $ 14,808 $ 2,254 $ (22,854) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2021 $ 2,168 $ 290 $ (8,250) As reported, December 31, 2022 $ 12,132 $ 26,636 $ (32,776) Correction to opening balances (12,640) (1,964) 14,604 Revised, December 31, 2022 $ (508) $ 24,672 $ (18,172) |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | The following is a reconciliation of the loss recorded on the sale: Net proceeds received from the sale of the Performance Chemicals business $ 978,449 Transaction costs (35,402) Net assets derecognized (1,093,277) Loss on sale of the Performance Chemicals business $ (150,230) The following table summarizes the results of discontinued operations related to Performance Chemicals for the periods presented: Years ended 2022 2021 Sales $ — $ 389,870 Cost of goods sold — 284,220 Selling, general and administrative expenses — 29,856 Goodwill impairment charge — 75,080 Other operating expense, net (1) 2,409 14,765 Loss on sale of the Performance Chemicals business — 150,230 Operating loss (2,409) (164,281) Equity in net income from affiliated companies — (111) Interest expense, net (2) — 10,730 Other income, net — (6,210) Loss from discontinued operations before income tax (2,409) (168,690) Benefit for income taxes (6,311) (24,886) Loss from discontinued operations, net of tax $ 3,902 $ (143,804) (1) The Company reclassified transaction costs that were previously recorded to this line item and included those charges in the line item Loss on sale of the Performance Chemicals business during the year ended December 31, 2021 . (2) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Refer to Note 16 for additional details on the repayment of outstanding debt. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had required refinancing of debt with repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363. |
Schedule Of Financing Obligation Assets And Liabilities | The table below presents the financing obligation assets and liabilities recognized on the consolidated balance sheet as of December 31, 2023 and 2022: Classification December 31, December 31, Assets Financing obligation Property, plant and equipment, net $ 19,878 $ 20,084 Total $ 19,878 $ 20,084 Liabilities Current: Financing obligation Accrued liabilities $ 2,999 $ 2,770 Noncurrent: Financing obligation Other long-term liabilities 4,927 7,532 Total $ 7,926 $ 10,302 |
Finance Lease, Liability, to be Paid, Maturity | Maturities of the financing obligation as of December 31, 2023 are as follows: Year Finance 2024 $ 3,186 2025 3,186 2026 1,860 2027 — 2028 — Thereafter — Total lease payments 8,232 Less: Interest 306 Total lease liabilities (1) $ 7,926 (1) Refer to the table above regarding the Company’s classification of financing obligation in the Company’s consolidated balance sheet as of December 31, 2023. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company’s portfolio of products is integrated into a variety of end uses, which are described in the table below. Key End Uses Key Products Clean fuels, emission control & other • Refining hydrocracking catalysts • Emission control catalyst supports • Catalyst supports used in production of sustainable fuels such as renewable diesel • Catalyst used in the production of sustainable aviation fuels • Catalyst activation • Aluminum sulfate solution • Ammonium bisulfite solution Polyethylene, polymers & engineered plastics • Catalysts for high-density polyethylene and chemicals syntheses • Antiblock for film packaging • Catalyst for advanced recycling Regeneration and treatment services • Sulfuric acid regeneration services • Treatment services Industrial, mining & automotive • Sulfuric acid for mining • Sulfur derivatives for industrial production • Sulfuric derivatives for nylon production The following tables disaggregate the Company’s sales, by segment and end uses, for the years ended December 31, 2023, 2022 and 2021, respectively: Year ended December 31, 2023 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 29,850 $ — $ 29,850 Polyethylene, polymers & engineered plastics — 106,273 106,273 Regeneration and treatment services (1) 354,606 — 354,606 Industrial, mining & automotive 200,388 — 200,388 Total segment sales $ 584,844 $ 106,273 $ 691,117 Year ended December 31, 2022 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 28,966 $ — $ 28,966 Polyethylene, polymers & engineered plastics — 117,687 117,687 Regeneration and treatment services (1) 342,645 — 342,645 Industrial, mining & automotive 330,861 — 330,861 Total segment sales $ 702,472 $ 117,687 $ 820,159 Year ended December 31, 2021 Ecoservices Advanced Materials & Catalysts (2) Total Clean fuels, emission control & other $ 25,673 $ — $ 25,673 Polyethylene, polymers & engineered plastics — 110,688 110,688 Regeneration and treatment services (1) 262,026 — 262,026 Industrial, mining & automotive 212,814 — 212,814 Total segment sales $ 500,513 $ 110,688 $ 611,201 (1) As described in Note 1 to these consolidated financial statements, the Company experiences seasonal sales fluctuations to customers in the regeneration services product group. (2) Excludes the Company’s proportionate share of sales from the Zeolyst International and Zeolyst C.V. joint ventures (collectively, the “Zeolyst Joint Venture”) accounted for using the equity method (see Note 10 to these consolidated financial statements for further information). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring | The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023 and 2022, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative assets: Interest rate caps (Note 18) $ 19,021 $ — $ 19,021 $ — Derivative liabilities: Interest rate caps (Note 18) $ 2,496 $ — $ 2,496 $ — December 31, Quoted Prices in Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivative assets: Interest rate caps (Note 18) $ 34,374 $ — $ 34,374 $ — Derivative liabilities: Interest rate caps (Note 18) $ 2,071 $ — $ 2,071 $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the components of accumulated other comprehensive income (loss), net of tax, as of December 31, 2023 and 2022: December 31, 2023 2022 Amortization and unrealized gains on pension and postretirement plans, net of tax of $(4,344) and $(4,078) $ 612 $ (508) Net changes in fair values of derivatives, net of tax of $(4,385) and $(9,057) 12,546 24,672 Foreign currency translation adjustments, net of tax of $8,177 and $8,177 (14,116) (18,172) Accumulated other comprehensive (loss) income $ (958) $ 5,992 The following table presents the tax effects of each component of other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021: Years ended 2023 2022 2021 Pre-tax amount Tax benefit/ After-tax amount Pre-tax amount Tax benefit/ After-tax amount Pre-tax amount Tax benefit/ After-tax amount Defined benefit and other postretirement plans: Net gain (loss) $ 1,511 $ (297) $ 1,214 $ (3,344) $ 826 $ (2,518) $ 12,976 $ (3,272) $ 9,704 Net prior service cost (125) 31 (94) (210) 52 (158) (232) 58 (174) Benefit plans, net 1,386 (266) 1,120 (3,554) 878 (2,676) 12,744 (3,214) 9,530 Net (loss) gain from hedging activities (17,312) 5,186 (12,126) 33,194 (8,812) 24,382 3,885 (971) 2,914 Foreign currency translation (1) 4,056 — 4,056 (9,922) — (9,922) (9,202) 6,954 (2,248) Other comprehensive (loss) income $ (11,870) $ 4,920 $ (6,950) $ 19,718 $ (7,934) $ 11,784 $ 7,427 $ 2,769 $ 10,196 (1) The income tax benefit included in other comprehensive income for the year ended December 31, 2021 is attributed to the portion of foreign currency translation associated with the Company’s cross-currency interest rate swaps, for which the tax effect was based on the applicable U.S. deferred income tax rate. In March 2021, as a result of the Performance Materials and Performance Chemicals divestitures, the Company settled its cross-currency swaps. The following table presents the changes in accumulated other comprehensive income (loss), net of tax, by component for the years ended December 31, 2023 and 2022: Defined benefit Net gain (loss) from hedging activities Foreign Total December 31, 2021 $ 2,168 $ 290 $ (8,250) $ (5,792) Other comprehensive income (loss) before reclassifications (2,832) 23,868 (9,922) 11,114 Amounts reclassified from accumulated other comprehensive income (1) 156 514 — 670 Net current period other comprehensive income (loss) (2,676) 24,382 (9,922) 11,784 December 31, 2022 (508) 24,672 (18,172) 5,992 Other comprehensive income (loss) before reclassifications 1,085 5,031 4,056 10,172 Amounts reclassified from accumulated other comprehensive income (1) 35 (17,157) — (17,122) Net current period other comprehensive income (loss) 1,120 (12,126) 4,056 (6,950) December 31, 2023 $ 612 $ 12,546 $ (14,116) $ (958) (1) See the following table for details about these reclassifications. Amounts in parentheses indicate debits. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the reclassifications out of accumulated other comprehensive income for the years ended December 31, 2023 and 2022. Details about Accumulated Other Amount Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item in the Years ended 2023 2022 Amortization of defined benefit and other postretirement plans: Net prior service credit $ (125) $ (210) Other (expense) income (2) Net loss 59 3 Other (expense) income (2) (66) (207) Total before tax 31 51 Tax benefit $ (35) $ (156) Net of tax Gains and losses on cash flow hedges: Interest rate caps $ 22,731 $ (683) Interest expense (5,574) 169 Tax benefit (expense) 17,157 (514) Net of tax Total reclassifications for the period $ 17,122 $ (670) Net of tax (1) Amounts in parentheses indicate debits to profit/loss. (2) These accumulated other comprehensive income (loss) components are components of net periodic pension and other postretirement cost (see Note 20 to these consolidated financial statements for further information). |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense, net | A summary of other operating expense, net is as follows: Years ended 2023 2022 2021 Amortization expense $ 10,565 $ 10,562 $ 10,321 Transaction and other related costs 2,954 6,988 2,268 Restructuring, integration and business optimization costs (1) 2,655 11,566 3,866 Net loss on asset disposals 4,137 3,594 5,666 Other, net 1,789 2,201 2,152 $ 22,100 $ 34,911 $ 24,273 (1) During the year ended December 31, 2022, the Company’s results were impacted by costs associated with severance charges for certain former executives and employees. The severance charges were not related to a specific restructuring plan of the Company, but rather were incurred primarily in connection with the leadership transition in April 2022 and the retirement of several executives. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net are classified and valued as follows: December 31, 2023 2022 Finished products and work in process $ 41,658 $ 39,909 Raw materials 3,457 4,453 $ 45,115 $ 44,362 Valued at lower of cost or market: LIFO basis $ 24,815 $ 25,258 Valued at lower of cost and net realizable value: FIFO or average cost basis 20,300 19,104 $ 45,115 $ 44,362 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Affiliated companies accounted for on the equity basis as of December 31, 2023 are as follows: Company Country Percent Zeolyst International USA 50% Zeolyst C.V. Netherlands 50% Following is summarized information of the combined investments (1) : December 31, 2023 2022 Current assets $ 291,825 $ 278,330 Noncurrent assets 183,717 196,775 Current liabilities 36,799 47,407 Noncurrent liabilities 5,797 16,000 December 31, 2023 2022 2021 Sales $ 345,002 $ 306,511 $ 296,416 Gross profit 107,865 105,693 101,069 Operating income 70,783 67,169 66,978 Net income 74,053 68,255 68,433 (1) Summarized information of the combined investments is presented at 100%; the Company’s share of the net assets and net income of affiliates is calculated based on the percent ownership specified in the table above. The following table summarizes the activity related to the Company’s investments in affiliated companies balance on the consolidated balance sheets: December 31, 2023 2022 Balance at beginning of period $ 436,013 $ 446,074 Equity in net income of affiliated companies 37,027 34,128 Charges related to purchase accounting fair value adjustments (6,403) (6,402) Dividends received (28,000) (35,000) Foreign currency translation adjustments 1,561 (2,787) Balance at end of period $ 440,198 $ 436,013 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of property, plant and equipment, at cost, and related accumulated depreciation is as follows: December 31, 2023 2022 Land $ 96,833 $ 96,659 Buildings and improvements 84,860 82,061 Machinery and equipment 820,509 751,145 Construction in progress 42,000 56,448 1,044,202 986,313 Less: accumulated depreciation (467,298) (401,424) $ 576,904 $ 584,889 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Right-of-Use Lease Assets and Lease Liabilities | The table below presents the operating and finance leases right-of-use assets and liabilities recognized on the consolidated balance sheet as of December 31, 2023 and 2022: Classification December 31, December 31, Assets Operating lease Right-of-use lease assets $ 24,281 $ 28,265 Finance lease Property, plant and equipment, net 1,269 1,422 Total leased assets $ 25,550 $ 29,687 Liabilities Current: Operating lease Operating lease liabilities—current $ 8,193 $ 8,155 Finance lease Accrued liabilities 70 86 Noncurrent: Operating lease Operating lease liabilities—noncurrent 16,030 20,021 Finance lease Other long-term liabilities 28 101 Total leased liabilities $ 24,321 $ 28,363 |
Weighted Average Remaining Lease Term and Discount Rate | The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2023 and 2022 are as follows: December 31, December 31, Weighted average remaining lease term (in years): Operating leases 3.96 4.45 Finance leases 1.33 2.29 Weighted average discount rate: Operating leases 5.95 % 5.24 % Finance leases 3.91 % 3.10 % |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023 are as follows: Year Operating Finance 2024 $ 9,539 $ 78 2025 6,916 23 2026 5,068 — 2027 3,672 — 2028 1,154 — Thereafter 1,014 — Total lease payments 27,363 101 Less: Interest (3,140) (3) Total lease liabilities (1) $ 24,223 $ 98 (1) Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the classification of lease liabilities in the Company’s consolidated balance sheet as of December 31, 2023. |
Cash Flow Information Related to Leases | The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statement of cash flows: Years ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Payments on operating leases included in operating cash flows $ 10,813 $ 10,327 Interest payments under finance leases included in operating cash flows 5 3 Principal payments under finance leases included in financing cash flows 72 33 Right-of-use assets obtained in exchange for new lease liabilities (non-cash): Operating leases 8,105 7,462 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Reportable Segments to Consolidated | Summarized financial information for the Company’s reportable segments is shown in the following table: Years ended 2023 2022 2021 Sales: Ecoservices $ 584,845 $ 702,472 $ 500,513 Advanced Materials & Catalysts (1) 106,273 117,687 110,688 Total $ 691,118 $ 820,159 $ 611,201 Adjusted EBITDA: (2) Ecoservices $ 199,966 $ 227,760 $ 177,672 Advanced Materials & Catalysts (3) 81,892 77,978 88,028 Adjusted EBITDA from reportable segments $ 281,858 $ 305,738 $ 265,700 (1) Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method. The proportionate share of sales excluded is $156,481, $132,588 and $131,332 for the years ended December 31, 2023, 2022 and 2021, respectively. (2) The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies. (3) The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $50,490 for the year ended December 31, 2023, which includes $30,695 of equity in net income plus $6,403 of amortization of investment in affiliate step-up plus $13,392 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $50,331 for the year ended December 31, 2022, which includes $27,931 of equity in net income plus $6,403 of amortization of investment in affiliate step-up plus $15,997 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Advanced Materials & Catalysts segment is $49,872 for the year ended December 31, 2021, which includes $27,827 of equity in net income plus $6,480 of amortization of investment in affiliate step-up plus $15,565 of joint venture depreciation, amortization and interest. |
Reconciliation of Net Income to Segment Adjusted EBITDA | A reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments is as follows: Years ended 2023 2022 2021 Reconciliation of income from continuing operations before income taxes to Adjusted EBITDA from reportable segments Income from continuing operations before income taxes $ 81,939 $ 94,735 $ 13,941 Interest expense, net 44,730 37,217 36,990 Depreciation and amortization 84,598 79,163 79,741 Unallocated corporate expenses 21,990 29,042 38,089 Joint venture depreciation, amortization and interest 13,392 15,997 15,565 Amortization of investment in affiliate step-up 6,403 6,402 6,480 Debt extinguishment costs — — 26,902 Net loss on asset disposals 4,137 3,594 5,666 Foreign currency exchange loss (gain) (1,340) 1,388 4,716 LIFO benefit 3,473 (165) (1,931) Transaction and other related costs 2,954 6,988 2,009 Equity-based compensation 16,031 20,632 31,838 Restructuring, integration and business optimization expenses 2,655 11,566 3,866 Other 896 (821) 1,828 Adjusted EBITDA from reportable segments $ 281,858 $ 305,738 $ 265,700 |
Capital Expenditures from Segment to Consolidated | Capital expenditures for the Company’s reportable segments are shown in the following table: Years ended 2023 2022 2021 Capital expenditures: Ecoservices $ 53,705 $ 47,770 $ 43,561 Advanced Materials & Catalysts (1) 8,441 8,194 15,997 Corporate (2) 3,189 2,906 487 Capital expenditures per the consolidated statements of cash flows $ 65,335 $ 58,870 $ 60,045 (1) Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture. (2) Includes corporate capital expenditures, the cash impact from changes in capital expenditures in accounts payable and capitalized interest. |
Revenue from External Customers by Geographic Areas | Sales by geographic area are presented in the following table. Sales are attributed to countries based upon location of products shipped. Years ended 2023 2022 2021 Sales (1) : United States $ 649,652 $ 774,119 $ 571,587 Foreign countries 41,466 46,040 39,614 Total $ 691,118 $ 820,159 $ 611,201 (1) Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales. The Company sold products through its Ecoservices and Advanced Materials & Catalysts segments to single customer, which accounted for 13.2%, 12.3% and 12.6% of the Company’s total sales as of December 31, 2023, 2022, and 2021 respectively. |
Long-lived Assets by Geographic Areas | Long-lived assets by geographic area is presented in the following table. Long-lived assets includes property, plant and equipment, net and right-of-use lease assets. December 31, 2023 2022 Long-lived assets: United States $ 575,536 $ 587,726 Foreign countries 25,649 25,428 Total $ 601,185 $ 613,154 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022 is summarized as follows: Ecoservices Advanced Materials & Catalysts Total Balance as of December 31, 2021 $ 326,670 $ 79,469 $ 406,139 Goodwill adjustments (1) (81) — (81) Foreign exchange impact — (2,895) (2,895) Balance as of December 31, 2022 326,589 76,574 403,163 Foreign exchange impact — 1,307 1,307 Balance as of December 31, 2023 $ 326,589 $ 77,881 $ 404,470 (1) During the year ended December 31, 2022, the Company recorded an adjustment of $81 between goodwill and deferred tax liabilities related to the final tax purchase price allocation for the Chem32 LLC acquisition. |
Schedule of Finite-Lived Intangible Assets | Gross carrying amounts and accumulated amortization for intangible assets other than goodwill are as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Technical know-how $ 55,350 $ (27,472) $ 27,878 $ 54,880 $ (23,822) $ 31,058 Customer relationships 130,912 (76,634) 54,278 130,636 (66,669) 63,967 Non-compete agreements 700 (397) 303 700 (257) 443 Trademarks 7,521 (3,844) 3,677 7,387 (3,283) 4,104 Trade names 1,600 (453) 1,147 1,600 (293) 1,307 Total definite-lived intangible assets 196,083 (108,800) 87,283 195,203 (94,324) 100,879 Indefinite-lived trade names 25,367 — 25,367 25,153 — 25,153 In-process research and development 3,900 — 3,900 3,900 — 3,900 Total intangible assets $ 225,350 $ (108,800) $ 116,550 $ 224,256 $ (94,324) $ 129,932 |
Schedule of Indefinite-Lived Intangible Assets | Gross carrying amounts and accumulated amortization for intangible assets other than goodwill are as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net Gross Accumulated Net Technical know-how $ 55,350 $ (27,472) $ 27,878 $ 54,880 $ (23,822) $ 31,058 Customer relationships 130,912 (76,634) 54,278 130,636 (66,669) 63,967 Non-compete agreements 700 (397) 303 700 (257) 443 Trademarks 7,521 (3,844) 3,677 7,387 (3,283) 4,104 Trade names 1,600 (453) 1,147 1,600 (293) 1,307 Total definite-lived intangible assets 196,083 (108,800) 87,283 195,203 (94,324) 100,879 Indefinite-lived trade names 25,367 — 25,367 25,153 — 25,153 In-process research and development 3,900 — 3,900 3,900 — 3,900 Total intangible assets $ 225,350 $ (108,800) $ 116,550 $ 224,256 $ (94,324) $ 129,932 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future aggregate amortization expense of intangible assets is as follows: Year Amount 2024 $ 14,068 2025 14,068 2026 12,912 2027 12,370 2028 12,222 Thereafter 21,643 Total estimated future aggregate amortization expense $ 87,283 |
Accrued Liabilities Accrued Lia
Accrued Liabilities Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table summarizes the components of accrued liabilities as follows: December 31, 2023 2022 Compensation and bonus $ 16,594 $ 30,890 Interest 11,976 10,493 Property tax 3,657 2,123 Income taxes 7,708 4,412 Finance lease and financing obligation liabilities 3,069 2,855 Dividends payable 641 4,062 Other 18,048 17,394 $ 61,693 $ 72,229 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The summary of long-term debt is as follows: December 31, 2023 2022 Senior Secured Term Loan Facility due June 2028 (the "2021 Term Loan Facility") $ 877,500 $ 886,500 ABL Facility — — Total debt 877,500 886,500 Original issue discount (6,162) (7,472) Deferred financing costs (3,392) (4,158) Total debt, net of original issue discount and deferred financing costs 867,946 874,870 Less: current portion (9,000) (9,000) Total long-term debt, excluding current portion $ 858,946 $ 865,870 |
Fiscal Year Maturity Schedule | The aggregate long-term debt maturities are: Year Amount 2024 $ 9,000 2025 9,000 2026 9,000 2027 9,000 2028 841,500 $ 877,500 |
Other Long-term Liabilities Oth
Other Long-term Liabilities Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Long-term Liabilities | The following table summarizes the components of other long-term liabilities as follows: December 31, 2023 2022 Pension plan liabilities $ 4,937 $ 6,250 Other postretirement benefit plan liabilities 457 428 Derivative liabilities 2,496 2,071 Finance lease and financing obligation liabilities 4,955 7,633 Reserve for uncertain tax positions 9,523 8,215 Other 71 1,249 $ 22,439 $ 25,846 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table provides a summary of the Company’s interest rate cap agreements: Financial instrument Number of instruments In effect as of December 31, 2023 Current notional amount of instruments in effect Annuitized premium of instruments in effect Interest rate cap 4 3 $ 650,000 $ 24,817 |
Fair Value of Derivatives Held | The fair values of derivative instruments held as of December 31, 2023 and 2022, respectively are shown below: December 31, Balance sheet location 2023 2022 Derivative assets Derivatives designated as cash flow hedges: Interest rate caps Prepaid and other current assets $ 13,419 $ 18,510 Interest rate caps Other long-term assets 5,602 15,864 Total derivative assets $ 19,021 $ 34,374 Derivative liabilities Derivatives designated as cash flow hedges: Interest rate caps Other long-term liabilities $ 2,496 $ 2,071 Total derivative liabilities $ 2,496 $ 2,071 |
Effect of Derivative Instruments Designated as Hedges on Accumulated Other Comprehensive Income | The following table shows the effect of the Company’s derivative instruments designated as cash flow hedges on accumulated other comprehensive income (loss) and the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively: Years ended December 31, 2023 2022 2021 Location of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Amount of gain (loss) recognized in OCI on derivatives Amount of gain (loss) reclassified from AOCI into income Interest rate caps Interest (expense) income $ 5,419 $ 22,731 $ 32,510 $ (683) $ 3,441 $ (444) |
Schedule of Effect of Cash Flow Hedging Instruments on the Statements of Income | The following table shows the effect of the Company’s cash flow hedge accounting on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, respectively: Location and amount of gain (loss) recognized in income on cash flow hedging relationships Years ended December 31, 2023 2022 2021 Total amounts of income and expense line items presented in the statement of income in which the effects of cash flow hedges are recorded in interest (expense) income $ (44,730) $ (37,217) $ (36,990) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships: Interest contracts: Amount of gain (loss) reclassified from AOCI into income 22,731 (683) (444) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income before income taxes within or outside the United States are shown below: Years ended 2023 2022 2021 Domestic $ 73,774 $ 86,695 $ 6,185 Foreign 8,165 8,040 7,756 Total $ 81,939 $ 94,735 $ 13,941 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes as shown in the accompanying consolidated statements of income consists of the following: Years ended 2023 2022 2021 Current: Federal $ 21,647 $ 18,210 $ 2,469 State 3,695 3,100 1,813 Foreign 2,515 1,978 3,317 27,857 23,288 7,599 Deferred: Federal (3,644) 4,544 (1,813) State (11,993) (2,288) 2,551 Foreign (1,435) (604) 3,810 (17,072) 1,652 4,548 Provision for income taxes $ 10,785 $ 24,940 $ 12,147 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense at the U.S. federal statutory income tax rate to actual income tax expense is as follows: Years ended 2023 2022 2021 Tax at statutory rate $ 17,207 $ 19,894 $ 2,928 State income taxes, net of federal income tax benefit 748 248 3,942 Changes in uncertain tax positions 985 558 877 State credit - valuation allowance release (10,203) — — Rate changes (101) — 5,209 Stock compensation 1,803 1,876 197 Compensation disallowance under 162(m) 2,344 3,146 466 Foreign tax credits (848) — (759) Research and development tax credits (400) (366) (620) Other, net (750) (416) (93) Provision for income taxes $ 10,785 $ 24,940 $ 12,147 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) are comprised of the following: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 14,680 $ 13,705 Interest disallowance carryforward 1,169 228 Pension 569 879 Operating lease liability 5,940 6,873 Other 10,806 10,653 State credits 14,659 13,773 Foreign withholding tax credits 9,083 9,083 Valuation allowance (18,325) (30,615) 38,581 24,579 Deferred tax liabilities: Depreciation $ (66,816) $ (70,400) Inventory (3,427) (3,039) Intangibles (67,250) (63,873) Operating lease right-of-use assets (5,954) (6,763) Other (8,675) (15,910) (152,122) (159,985) Net deferred tax liabilities $ (113,541) $ (135,406) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits. The amounts listed in the below table also represents the total unrecognized tax benefits that, if recognized, would impact the effective tax rate as of December 31, 2023 and 2022, respectively: Years ended 2023 2022 Balance at beginning of period $ 7,787 $ 7,787 Increases related to prior year tax positions 323 — Balance at end of period $ 8,110 $ 7,787 |
Open Tax Years | The following describes the open tax years, by significant tax jurisdiction, as of December 31, 2023: Jurisdiction Period United States-Federal 2007-2023 United States-State 2007-2023 |
Schedule of Tax Payments | Cash payments for income taxes, net of refunds, are as follows: Years ended 2023 2022 2021 Domestic $ 21,973 $ 13,277 $ 549 Foreign 464 359 69 $ 22,437 $ 13,636 $ 618 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Benefit Plans Disclosures | The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s defined benefit pension plans as well as the components of net periodic benefit cost, including key assumptions: December 31, 2023 2022 Change in benefit obligation: Benefit obligation at beginning of period $ 66,879 $ 86,465 Interest cost 3,453 2,569 Plan settlements (2,543) (862) Benefits paid (2,798) (2,552) Actuarial losses/(gains) 1,565 (18,741) Benefit obligation at end of the period 66,556 66,879 Change in plan assets: Fair value of plan assets at beginning of period $ 60,629 $ 82,914 Actual return on plan assets 6,330 (18,871) Plan settlements (2,543) (862) Benefits paid (2,798) (2,552) Fair value of plan assets at end of the period 61,618 60,629 Funded status of the plans (underfunded) $ (4,938) $ (6,250) The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s other postretirement benefit plan as well as the components of net periodic benefit cost, including key assumptions: December 31, 2023 2022 Change in benefit obligation: Benefit obligation at beginning of period $ 446 $ 624 Interest cost 24 18 Benefits paid (1) (1) Premiums paid (3) (3) Actuarial loss/(gain) 9 (192) Benefit obligation at end of period 475 446 Change in plan assets: Employer contributions $ 4 $ 4 Benefits paid (1) (1) Premiums paid (3) (3) Fair value of plan assets at end of period — — Funded status of the plan (underfunded) $ (475) $ (446) |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the consolidated balance sheets consist of: December 31, 2023 2022 Noncurrent liability $ (4,937) $ (6,250) Accumulated other comprehensive income (loss), net of tax 567 (509) Net amount recognized $ (4,370) $ (6,759) Amounts recognized in the consolidated balance sheets consist of: December 31, 2023 2022 Current liability $ (18) $ (18) Noncurrent liability (457) (428) Accumulated other comprehensive income (loss), net of tax 79 (299) Net amount recognized $ (396) $ (745) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) consist of: December 31, 2023 2022 Net (loss) gain $ 751 $ (1,039) Gross amount recognized 751 (1,039) Deferred income taxes (184) 530 Net amount recognized $ 567 $ (509) Amounts recognized in accumulated other comprehensive income consist of: December 31, 2023 2022 Prior service credit $ 30 $ 154 Net gain (loss) 75 80 Gross amount recognized 105 234 Deferred income taxes (26) (533) Net amount recognized $ 79 $ (299) |
Components of Net Periodic Expense | Components of net periodic benefit cost consist of: U.S. Foreign Years ended Year ended 2023 2022 2021 2021 Interest cost $ 3,453 $ 2,569 $ 2,210 $ 255 Expected return on plan assets (3,305) (3,433) (4,360) (255) Settlement loss (gain) recognized 61 38 (26) 2,084 Net periodic expense (benefit) $ 209 $ (826) $ (2,176) $ 2,084 Components of net periodic benefit cost consist of: Years ended 2023 2022 2021 Interest cost $ 24 $ 18 $ 17 Amortization of prior service credit (125) (210) (232) Amortization of net (gain) loss (2) 3 5 Net periodic benefit $ (103) $ (189) $ (210) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of: December 31, 2023 2022 Net (gain) loss $ (1,461) $ 3,563 Amortization or settlement recognition of net loss (61) (38) Total recognized in other comprehensive (income) loss (1,522) 3,525 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (1,313) $ 2,699 Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of: December 31, 2023 2022 Net loss (gain) $ 9 $ (192) Amortization of prior service credit 125 210 Amortization or settlement recognition of net gain (loss) 2 (3) Total recognized in other comprehensive income 136 15 Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 33 $ (174) |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents selected information about the Company’s pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: December 31, 2023 2022 Projected benefit obligation $ 66,555 $ 66,879 Accumulated benefit obligation 66,555 66,879 Fair value of plan assets 61,618 60,629 |
Schedule of Assumptions Used | Significant weighted average assumptions used in determining the pension obligations include the following: December 31, 2023 2022 Discount rate 5.17 % 5.40 % Rate of compensation increase (1) N/A N/A Significant weighted average assumptions used in determining net periodic benefit cost include the following: U.S. Foreign Years ended Year ended 2023 2022 2021 2021 Discount rate 5.39 % 2.90 % 2.50 % 1.20 % Expected return on assets 5.74 % 4.90 % 5.60 % 1.20 % Rate of compensation increase (1) N/A N/A N/A 1.75 % (1) Includes only plans not frozen to benefit accruals for the respective periods. |
Schedule of Allocation of Plan Assets | The following tables set forth by level, within the fair value hierarchy, plan assets at fair value: December 31, 2023 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 264 $ 264 $ — $ — Equity securities: U.S. investment funds 11,539 11,539 — — International investment funds 7,546 7,546 — — Fixed income securities: Government securities 11,691 11,691 — — Corporate bonds 30,578 30,578 — — Total $ 61,618 $ 61,618 $ — $ — December 31, 2022 Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 244 $ 244 $ — $ — Equity securities: U.S. investment funds 11,435 11,435 — — International investment funds 7,803 7,803 — — Fixed income securities: Government securities 16,209 16,209 — — Corporate bonds 24,938 24,938 — — Total $ 60,629 $ 60,629 $ — $ — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year Amount 2024 $ 8,156 2025 4,434 2026 4,505 2027 4,523 2028 4,714 Years 2029-2033 22,815 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Year Amount 2024 $ 19 2025 20 2026 21 2027 23 2028 24 Years 2028-2032 150 |
Stock-Based Compensation - (Tab
Stock-Based Compensation - (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Options Activity | The following table summarizes the activity of common stock options for the period from December 31, 2020 through the year ended December 31, 2023: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2020 2,173,331 $ 9.84 (1) Exercised (208,500) $ 3.56 Forfeited (39,996) $ 3.53 Expired (40,484) $ 14.52 Outstanding at December 31, 2021 1,884,351 $ 6.99 (2) Exercised (199,970) $ 3.06 Forfeited (51,860) $ 3.98 Expired (111,524) $ 11.97 Outstanding at December 31, 2022 1,520,997 $ 7.24 Exercised (197,941) $ 2.58 Forfeited (284,956) $ 3.39 Expired (328,677) $ 12.36 Outstanding at December 31, 2023 709,423 $ 7.73 3.14 $ 2,322 Exercisable at December 31, 2023 709,423 $ 7.73 3.14 $ 2,322 (1) On December 14, 2020, the Company’s Board of Directors declared a special cash dividend of $1.80 per share to the stockholders of record at the close of business on December 31, 2020, using after tax cash proceeds and cash on hand from the sale of the Performance Materials business. This reflects the impact of the reduction in the strike price on all outstanding vested and unvested stock options by $1.80 per share. (2) Reflects the impact of the reduction in the strike price on all outstanding vested and unvested stock options by $3.20 per share as described above. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table shows the weighted average assumptions for each of the unvested grants: 2023 Grants 2022 Grants 2021 Grants Expected dividend yield — % — % — % Risk-free interest rate 3.80 % 1.51 % 0.20 % Expected volatility 48.82 % 44.51 % 41.70 % Expected term (in years) 2.96 2.91 2.95 |
Schedule of Nonvested Restricted Stock Awards, Restricted Stock Units and Performance Stock Unit Activity | The following table summarizes the activity of restricted stock awards, restricted stock units and performance stock units for the period from December 31, 2020 through the year ended December 31, 2023: Restricted Stock Awards Restricted Stock Units Performance Stock Units Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Number of Weighted Average Grant Date Fair Value (per share) Nonvested as of December 31, 2020 897,015 $ 13.80 (1) 1,841,139 $ 16.14 965,736 (2) $ 17.69 Granted — $ — 1,697,623 $ 15.39 211,985 $ 13.21 Vested — $ — (773,619) $ 16.00 — $ — Forfeited (263,291) $ 15.31 (1) (257,722) $ 16.03 (60,166) $ 17.11 Nonvested as of December 31, 2021 633,724 $ 15.84 (1) 2,507,421 $ 15.68 1,117,555 (2) $ 16.91 Granted — $ — 2,779,690 $ 10.28 295,132 $ 8.82 Vested (84,903) $ 8.83 (1,550,969) $ 15.08 (496,442) $ 15.41 Forfeited (271,765) $ 15.84 (1,271,424) $ 12.27 (276,713) $ 12.33 Nonvested as of December 31, 2022 277,056 $ 15.66 2,464,718 $ 11.73 639,532 (2) $ 16.32 Granted 5,081 $ 9.84 1,195,835 $ 9.84 721,537 $ 12.28 Vested (5,081) $ 9.84 (1,436,301) $ 11.84 (200,204) $ 20.16 Forfeited (277,056) $ 15.66 (261,424) $ 11.27 (201,648) $ 18.57 Nonvested as of December 31, 2023 — $ — 1,962,828 $ 10.55 959,217 (2) $ 11.84 (1) Reflects the impact of the modification on all unvested restricted stock awards as described above. (2) Based on target. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation from Basic to Diluted Weighted Average Number of Shares Outstanding | The reconciliation from basic to diluted weighted average shares outstanding is as follows: Years ended 2023 2022 2021 Weighted average shares outstanding – Basic 118,367,214 133,601,322 136,167,384 Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions 1,120,495 1,486,850 1,541,547 Weighted average shares outstanding – Diluted 119,487,709 135,088,172 137,708,931 |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted income (loss) per share are calculated as follows: Years ended 2023 2022 2021 Numerator: Income from continuing operations attributable to Ecovyst Inc. $ 71,154 $ 69,795 $ 1,794 Income (loss) from discontinued operations attributable to Ecovyst Inc. — 3,902 (141,743) Net income (loss) attributable to Ecovyst Inc. $ 71,154 $ 73,697 $ (139,949) Denominator: Weighted average shares outstanding – Basic 118,367,214 133,601,322 136,167,384 Weighted average shares outstanding – Diluted 119,487,709 135,088,172 137,708,931 Net income (loss) per share: Basic income per share - continuing operations $ 0.60 $ 0.52 $ 0.01 Diluted income per share - continuing operations $ 0.60 $ 0.52 $ 0.01 Basic income (loss) per share - discontinued operations $ — $ 0.03 $ (1.04) Diluted income (loss) per share - discontinued operations $ — $ 0.03 $ (1.03) Basic income (loss) per share $ 0.60 $ 0.55 $ (1.03) Diluted income (loss) per share $ 0.60 $ 0.55 $ (1.02) |
Schedule of Securities Excluded from Computation of Earnings Per Share | The table below presents the details of the Company’s weighted average equity-based awards outstanding during each respective year that were excluded from the calculation of diluted earnings per share: Years ended 2023 2022 2021 Restricted stock awards with performance only targets not yet achieved — 539,688 839,432 Stock options with performance only targets not yet achieved 51,526 309,984 373,105 Anti-dilutive restricted stock units and performance stock units 286,729 20,497 6,214 Anti-dilutive stock options 508,623 776,594 244,473 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table presents supplemental cash flow information for the Company, which includes activity from both continuing and discontinued operations: Years ended 2023 2022 2021 Cash paid during the year for: Income taxes, net of refunds $ 22,437 $ 25,556 $ 11,843 Interest (1) 42,081 35,370 59,040 Non-cash investing activity: Capital expenditures acquired on account but unpaid as of the year end 3,427 4,653 6,116 Non-cash financing activities (2) : Accrued excise tax on share repurchases (Note 7) 638 — — (1) Cash paid for interest is shown net of capitalized interest and includes the cash received or paid on the Company’s interest rate cap agreements designated as cash flow hedges for the periods presented. Cash paid for interest also excludes $2,307 of net interest proceeds on swaps designated as net investment hedges for the year ended December 31, 2021, which was included within cash flows from investing activities, discontinued operations in the Company’s consolidated statements of cash flows. (2) For the supplemental non-cash information on lease liabilities arising from obtaining right-of-use lease assets, see Note 12 to these consolidated financial statements for further information. |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Statements of Income | Years ended 2023 2022 2021 Stock compensation expense $ 16,031 $ 20,632 $ 39,523 Equity in net (income) loss from subsidiaries (87,185) (94,329) 100,426 Net income (loss) 71,154 73,697 (139,949) Other comprehensive income (loss), net of tax: Pension and postretirement benefits 1,120 (2,676) 9,530 Net gain (loss) from hedging activities (12,126) 24,382 2,914 Foreign currency translation 4,056 (9,922) (2,248) Total other comprehensive income (6,950) 11,784 10,196 Comprehensive income (loss) $ 64,204 $ 85,481 $ (129,753) |
Schedule of Condensed Balance Sheets | December 31, December 31, ASSETS Investment in subsidiaries $ 705,464 $ 707,229 Total assets $ 705,464 $ 707,229 LIABILITIES Total liabilities $ — $ — STOCKHOLDERS' EQUITY Common stock (0.01 par); authorized shares 450,000,000; issued shares 140,744,045 and 139,571,272 on December 31, 2023 and 2022, respectively; outstanding shares 116,116,895 and 122,186,238 on December 31, 2023 and 2022, respectively 1,407 1,396 Preferred stock (0.01 par); authorized shares 50,000,000; no shares issued or outstanding on December 31, 2023 and 2022, respectively — — Additional paid-in capital 1,102,581 1,091,475 Accumulated deficit (170,856) (242,010) Treasury stock, at cost; shares 24,627,150 and 17,385,034 on December 31, 2023 and 2022, respectively (226,710) (149,624) Accumulated other comprehensive (loss) income (958) 5,992 Total equity 705,464 707,229 Total liabilities and equity $ 705,464 $ 707,229 |
Schedule of Condensed Statements of Cash Flow | Years ended 2023 2022 2021 Cash flows from operating activities: Net income (loss) $ 71,154 $ 73,697 $ (139,949) Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income from subsidiaries (87,185) (94,329) 100,426 Stock compensation expense 16,031 20,632 39,523 Net cash provided by operating activities — — — Cash flows from investing activities: Distribution from subsidiaries — — 435,593 Net cash provided by investing activities — — 435,593 Cash flows from financing activities: Dividends paid to stockholders — — (435,593) Net cash used in financing activities — — (435,593) Effect of exchange rate changes on cash and cash equivalents — — — Net change in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — Cash and cash equivalents at end of period of continuing operations $ — $ — $ — |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) $ in Thousands | 12 Months Ended | ||
Aug. 01, 2021 USD ($) | Dec. 31, 2023 segment | Dec. 14, 2020 USD ($) | |
Dispositions [Line Items] | |||
Reportable segments | segment | 2 | ||
Performance Materials | |||
Dispositions [Line Items] | |||
Purchase price | $ 650,000 | ||
Performance Chemicals | |||
Dispositions [Line Items] | |||
Proceeds from divestiture of businesses | $ 1,100,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narratives (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies Table | |||
Foreign currency exchange (gain) loss | $ (589) | $ 978 | $ 4,716 |
Restricted cash included in prepaid and other current assets | 0 | ||
Interest costs capitalized | 1,964 | 1,442 | 1,235 |
Research and development cost | 7,797 | 7,232 | 7,499 |
Interest expense, net | (44,730) | (37,217) | (36,990) |
Equity in net income from affiliated companies | 30,624 | 27,725 | 27,737 |
Net income (loss) | $ 71,154 | $ 73,697 | $ (139,949) |
Number of defined benefit pension plans | plan | 2 | ||
Revision of Prior Period, Error Correction, Adjustment | |||
Summary of Significant Accounting Policies Table | |||
Interest expense, net | $ 1,390 | ||
Sales rebate reserve | 840 | ||
Equity in net income from affiliated companies | 2,776 | ||
Other expenses | 1,301 | ||
Net income (loss) | $ 3,705 | ||
Maximum | |||
Summary of Significant Accounting Policies Table | |||
Remaining lease term | 18 years | ||
Buildings and improvements | Minimum | |||
Summary of Significant Accounting Policies Table | |||
Fixed asset useful life | 15 years | ||
Buildings and improvements | Maximum | |||
Summary of Significant Accounting Policies Table | |||
Fixed asset useful life | 33 years | ||
Machinery and equipment | Minimum | |||
Summary of Significant Accounting Policies Table | |||
Fixed asset useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Summary of Significant Accounting Policies Table | |||
Fixed asset useful life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Correction of an Error (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | $ 705,464 | $ 707,229 | |
Benefit plans, net | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | (508) | $ 2,168 | |
Net (loss) gain from hedging activities | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | 24,672 | 290 | |
Foreign currency translation | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | (18,172) | (8,250) | |
Previously Reported | Benefit plans, net | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | 12,132 | 14,808 | |
Previously Reported | Net (loss) gain from hedging activities | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | 26,636 | 2,254 | |
Previously Reported | Foreign currency translation | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | (32,776) | (22,854) | |
Revision of Prior Period, Error Correction, Adjustment | Benefit plans, net | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | (12,640) | (12,640) | |
Revision of Prior Period, Error Correction, Adjustment | Net (loss) gain from hedging activities | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | (1,964) | (1,964) | |
Revision of Prior Period, Error Correction, Adjustment | Foreign currency translation | |||
Summary of Significant Accounting Policies [Line Items] | |||
Stockholders' Equity Attributable to Parent | $ 14,604 | $ 14,604 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) $ / shares in Units, £ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Aug. 23, 2021 $ / shares | Aug. 04, 2021 $ / shares | Feb. 28, 2021 USD ($) | Dec. 14, 2020 USD ($) $ / shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2021 GBP (£) | |
Dispositions [Line Items] | ||||||||
Net proceeds received | $ 0 | $ 0 | $ 978,449 | |||||
Dividends paid on common stock (in dollars per share) | $ / shares | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 | ||||
Stock compensation expense | 16,031 | 20,632 | $ 31,838 | |||||
Change in tax return recognized | $ 5,429 | |||||||
Transition services agreement, term | 9 months | |||||||
Estimate disposal loss | $ 109,584 | |||||||
Financing obligation, liability | 16,005 | £ 11,648 | ||||||
Proceeds from financing obligation | 0 | 0 | 16,005 | |||||
Payments under financing arrangement | 8,416 | 7,872 | 3,395 | |||||
Repayments of financing obligation | $ (2,847) | (2,692) | (1,435) | |||||
Finance obligation, weighted average remaining lease term | 2 years 7 months 6 days | |||||||
Finance obligation, weighted average discount rate, percent | 2.86% | |||||||
Less: Net income attributable to the noncontrolling interest - discontinued operations | $ 0 | 0 | 333 | |||||
Net income (loss) | 71,154 | 73,697 | (139,949) | |||||
Performance Chemicals | ||||||||
Dispositions [Line Items] | ||||||||
Price per definitive agreement | $ 1,100,000 | |||||||
Net proceeds received | 978,449 | |||||||
Transaction costs | 35,402 | |||||||
Stock compensation expense | 5,691 | |||||||
Repayment of interest on financing obligation | $ 266 | $ 336 | 185 | |||||
Less: Net income attributable to the noncontrolling interest - discontinued operations | 333 | |||||||
Net income (loss) | (144,137) | |||||||
Performance Materials | ||||||||
Dispositions [Line Items] | ||||||||
Net proceeds received | $ 624,256 | |||||||
Dividends paid on common stock (in dollars per share) | $ / shares | $ 1.80 | |||||||
Purchase price | $ 650,000 | |||||||
Transaction costs | 2,054 | |||||||
Stock compensation expense | 1,970 | |||||||
Income tax benefit on transaction costs and stock-based compensation expense only | 988 | |||||||
Transition service agreement income | $ 3,314 |
Divestitures - Reconciliation o
Divestitures - Reconciliation of Loss (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dispositions [Line Items] | ||||
Estimate disposal loss | $ 109,584 | |||
Net proceeds received | $ 0 | $ 0 | 978,449 | |
Loss on sale of Performance Chemicals | (150,230) | |||
Stock compensation expense | 16,031 | 20,632 | 31,838 | |
Provision for income taxes | 37,255 | |||
Payments for Business Divestiture | $ 0 | 3,744 | 0 | |
Discontinued operations | The following is a reconciliation of the loss recorded on the sale: Net proceeds received from the sale of the Performance Chemicals business $ 978,449 Transaction costs (35,402) Net assets derecognized (1,093,277) Loss on sale of the Performance Chemicals business $ (150,230) The following table summarizes the results of discontinued operations related to Performance Chemicals for the periods presented: Years ended 2022 2021 Sales $ — $ 389,870 Cost of goods sold — 284,220 Selling, general and administrative expenses — 29,856 Goodwill impairment charge — 75,080 Other operating expense, net (1) 2,409 14,765 Loss on sale of the Performance Chemicals business — 150,230 Operating loss (2,409) (164,281) Equity in net income from affiliated companies — (111) Interest expense, net (2) — 10,730 Other income, net — (6,210) Loss from discontinued operations before income tax (2,409) (168,690) Benefit for income taxes (6,311) (24,886) Loss from discontinued operations, net of tax $ 3,902 $ (143,804) (1) The Company reclassified transaction costs that were previously recorded to this line item and included those charges in the line item Loss on sale of the Performance Chemicals business during the year ended December 31, 2021 . (2) Upon the close of the transaction, the Company used a portion of the net proceeds to repay a portion of its outstanding debt amounting to $526,363. Refer to Note 16 for additional details on the repayment of outstanding debt. Prior to the Company’s debt refinancing in June 2021, the Company’s outstanding term loan facilities had required refinancing of debt with repayment provisions. As a result, interest expense has been allocated to discontinued operations on the basis of the Company’s total repayment of $526,363. | |||
Performance Chemicals | ||||
Dispositions [Line Items] | ||||
Net proceeds received | 978,449 | |||
Transaction costs | (35,402) | |||
Net assets derecognized | (1,093,277) | |||
Loss on sale of Performance Chemicals | 0 | (150,230) | ||
Stock compensation expense | 5,691 | |||
Provision for income taxes | $ (6,311) | $ (24,886) | ||
Payments for Business Divestiture | $ 3,744 |
Divestitures - Income Informati
Divestitures - Income Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Dispositions [Line Items] | |||
Loss on sale of Performance Materials | $ 150,230 | ||
Equity in net (income) from affiliated companies | $ (30,624) | $ (27,725) | (27,737) |
Benefit for income taxes | 37,255 | ||
Net income (loss) from discontinued operations, net of tax | 0 | 3,902 | (141,410) |
Mandatory payments | $ 9,000 | 9,000 | 1,430,863 |
Performance Chemicals | |||
Dispositions [Line Items] | |||
Sales | 0 | 389,870 | |
Cost of goods sold | 0 | 284,220 | |
Selling, general and administrative expenses | 0 | 29,856 | |
Goodwill impairment charge | 0 | 75,080 | |
Other operating expense, net | 2,409 | 14,765 | |
Loss on sale of Performance Materials | 0 | 150,230 | |
Operating loss | (2,409) | (164,281) | |
Equity in net (income) from affiliated companies | 0 | (111) | |
Interest expense, net | 0 | 10,730 | |
Other income, net | 0 | (6,210) | |
Loss from discontinued operations before income tax | (2,409) | (168,690) | |
Benefit for income taxes | (6,311) | (24,886) | |
Net income (loss) from discontinued operations, net of tax | 3,902 | $ (143,804) | |
Mandatory payments | $ 526,363 |
Divestitures - Schedule Of Fina
Divestitures - Schedule Of Financing Obligation Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Obligations, Assets And Liabilities [Line Items] | ||
Financing obligation, asset | $ 19,878 | $ 20,084 |
Total lease liabilities | 7,926 | 10,302 |
Property, plant and equipment, net | ||
Financing Obligations, Assets And Liabilities [Line Items] | ||
Financing obligation, asset | 19,878 | 20,084 |
Accrued liabilities | ||
Financing Obligations, Assets And Liabilities [Line Items] | ||
Total lease liabilities | 2,999 | 2,770 |
Other long-term liabilities | ||
Financing Obligations, Assets And Liabilities [Line Items] | ||
Total lease liabilities | $ 4,927 | $ 7,532 |
Divestitures - Financing Lease
Divestitures - Financing Lease Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Discontinued Operations and Disposal Groups [Abstract] | ||
2024 | $ 3,186 | |
2025 | 3,186 | |
2026 | 1,860 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total lease payments | 8,232 | |
Less: Interest | 306 | |
Total lease liabilities | $ 7,926 | $ 10,302 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract asset | $ 0 | $ 0 |
Contract liabilities | $ 0 | $ 0 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Supplier payment timing, period | 1 year | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Supplier payment timing, period | 10 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 691,118 | $ 820,159 | $ 611,201 |
Ecoservices | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 584,845 | 702,472 | 500,513 |
Advanced Silicas | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 106,273 | 117,687 | 110,688 |
Operating segments | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 691,117 | 820,159 | 611,201 |
Operating segments | Clean fuels, emission control & other | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 29,850 | 28,966 | 25,673 |
Operating segments | Polyethylene, polymers & engineered plastics | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 106,273 | 117,687 | 110,688 |
Operating segments | Regeneration and treatment services | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 354,606 | 342,645 | 262,026 |
Operating segments | Industrial, mining & automotive | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 200,388 | 330,861 | 212,814 |
Operating segments | Ecoservices | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 584,844 | 702,472 | 500,513 |
Operating segments | Ecoservices | Clean fuels, emission control & other | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 29,850 | 28,966 | 25,673 |
Operating segments | Ecoservices | Polyethylene, polymers & engineered plastics | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Operating segments | Ecoservices | Regeneration and treatment services | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 354,606 | 342,645 | 262,026 |
Operating segments | Ecoservices | Industrial, mining & automotive | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 200,388 | 330,861 | 212,814 |
Operating segments | Advanced Silicas | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 106,273 | 117,687 | 110,688 |
Operating segments | Advanced Silicas | Clean fuels, emission control & other | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Operating segments | Advanced Silicas | Polyethylene, polymers & engineered plastics | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 106,273 | 117,687 | 110,688 |
Operating segments | Advanced Silicas | Regeneration and treatment services | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | 0 |
Operating segments | Advanced Silicas | Industrial, mining & automotive | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative asset | $ 19,021 | $ 34,374 |
Liabilities: | ||
Derivative liability | 2,496 | 2,071 |
Quoted Prices in Active Markets (Level 1) | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative asset | 19,021 | 34,374 |
Liabilities: | ||
Derivative liability | 2,496 | 2,071 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative liability | $ 0 | $ 0 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of AOCI (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Stockholders equity | $ 705,464 | $ 707,229 | $ 740,737 | $ 1,277,179 |
Accum. other comp. income (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Stockholders equity | (958) | 5,992 | $ (5,792) | $ (15,265) |
Defined benefit and other postretirement plans | ||||
Tax | ||||
Tax related to AOCI | (4,344) | (4,078) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Stockholders equity | 612 | (508) | ||
Net gain (loss) from hedging activities | ||||
Tax | ||||
Tax related to AOCI | (4,385) | (9,057) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Stockholders equity | 12,546 | 24,672 | ||
Foreign currency translation | ||||
Tax | ||||
Tax related to AOCI | 8,177 | 8,177 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||
Stockholders equity | $ (14,116) | $ (18,172) |
Stockholders' Equity - Pre-tax
Stockholders' Equity - Pre-tax and After-tax Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
After-tax amount | |||
Pre-tax amount | $ (11,870) | $ 19,718 | $ 7,427 |
Tax benefit/ (expense) | 4,920 | (7,934) | 2,769 |
Total other comprehensive income (loss) | (6,950) | 11,784 | 10,196 |
Net gain (loss) | |||
After-tax amount | |||
Pre-tax amount | 1,511 | (3,344) | 12,976 |
Tax benefit/ (expense) | (297) | 826 | (3,272) |
Total other comprehensive income (loss) | 1,214 | (2,518) | 9,704 |
Net prior service cost | |||
After-tax amount | |||
Pre-tax amount | (125) | (210) | (232) |
Tax benefit/ (expense) | 31 | 52 | 58 |
Total other comprehensive income (loss) | (94) | (158) | (174) |
Benefit plans, net | |||
After-tax amount | |||
Pre-tax amount | 1,386 | (3,554) | 12,744 |
Tax benefit/ (expense) | (266) | 878 | (3,214) |
Total other comprehensive income (loss) | 1,120 | (2,676) | 9,530 |
Net (loss) gain from hedging activities | |||
After-tax amount | |||
Pre-tax amount | (17,312) | 33,194 | 3,885 |
Tax benefit/ (expense) | 5,186 | (8,812) | (971) |
Total other comprehensive income (loss) | (12,126) | 24,382 | 2,914 |
Foreign currency translation | |||
After-tax amount | |||
Pre-tax amount | 4,056 | (9,922) | (9,202) |
Tax benefit/ (expense) | 0 | 0 | 6,954 |
Total other comprehensive income (loss) | $ 4,056 | $ (9,922) | $ (2,248) |
Stockholders' Equity - Change b
Stockholders' Equity - Change by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | $ 707,229 | $ 740,737 | $ 1,277,179 |
Total other comprehensive income (loss) | (6,950) | 11,784 | 10,196 |
Ending balance | 705,464 | 707,229 | 740,737 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | 5,992 | (5,792) | |
Other comprehensive income (loss) before reclassifications | 10,172 | 11,114 | |
Amounts reclassified from accumulated other comprehensive income | (17,122) | 670 | |
Total other comprehensive income (loss) | (6,950) | 11,784 | |
Ending balance | (958) | 5,992 | (5,792) |
Benefit plans, net | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (508) | 2,168 | |
Other comprehensive income (loss) before reclassifications | 1,085 | (2,832) | |
Amounts reclassified from accumulated other comprehensive income | 35 | 156 | |
Total other comprehensive income (loss) | 1,120 | (2,676) | 9,530 |
Ending balance | 612 | (508) | 2,168 |
Net (loss) gain from hedging activities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | 24,672 | 290 | |
Other comprehensive income (loss) before reclassifications | 5,031 | 23,868 | |
Amounts reclassified from accumulated other comprehensive income | (17,157) | 514 | |
Total other comprehensive income (loss) | (12,126) | 24,382 | 2,914 |
Ending balance | 12,546 | 24,672 | 290 |
Foreign currency translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (18,172) | (8,250) | |
Other comprehensive income (loss) before reclassifications | 4,056 | (9,922) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Total other comprehensive income (loss) | 4,056 | (9,922) | (2,248) |
Ending balance | $ (14,116) | $ (18,172) | $ (8,250) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | $ (605) | $ (158) | $ (4,511) |
Interest expense, net | 44,730 | 37,217 | 36,990 |
Total before tax | 81,939 | 94,735 | 13,941 |
Tax benefit | 10,785 | 24,940 | 12,147 |
Net of tax | (71,154) | (73,697) | $ 139,616 |
Amount of gain (loss) reclassified from AOCI into income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax | (17,122) | 670 | |
Defined benefit and other postretirement plans | Amount of gain (loss) reclassified from AOCI into income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before tax | (66) | (207) | |
Tax benefit | (31) | (51) | |
Net of tax | 35 | 156 | |
Net prior service credit | Amount of gain (loss) reclassified from AOCI into income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | (125) | (210) | |
Net loss | Amount of gain (loss) reclassified from AOCI into income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other expense, net | 59 | 3 | |
Net (loss) gain from hedging activities | Amount of gain (loss) reclassified from AOCI into income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Tax benefit | 5,574 | (169) | |
Net of tax | (17,157) | 514 | |
Net (loss) gain from hedging activities | Amount of gain (loss) reclassified from AOCI into income | Interest rate caps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net | $ (22,731) | $ 683 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Apr. 27, 2022 | May 31, 2023 | Nov. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 12, 2020 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Remaining authorized repurchase amount | $ 234,592 | ||||||
Excise taxes payable | 638 | $ 0 | $ 0 | ||||
Fair value of shares withheld for tax payments | $ 3,372 | $ 332 | $ 1,470 | ||||
Tax withholdings on equity award vesting (in shares) | 315,635 | 32,058 | |||||
March 2020 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 50,000 | ||||||
Repurchases of common shares (in shares) | 0 | 0 | |||||
April 2022 Stock Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 450,000 | ||||||
Stock repurchase program, period | 4 years | ||||||
Excise taxes payable | $ 638 | ||||||
April 2022 Stock Repurchase Program | Open Market | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchases of common shares (in shares) | 541,494 | 1,970,763 | |||||
Average cost per share | $ 9.85 | $ 9.82 | |||||
Repurchases of common shares value | $ 5,333 | $ 19,356 | |||||
April 2022 Stock Repurchase Program | Secondary Offering | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchases of common shares (in shares) | 7,000,000 | 14,500,000 | |||||
Average cost per share | $ 10.48 | $ 8.09 | |||||
Repurchases of common shares value | $ 73,373 | $ 117,346 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Paid (Details) - $ / shares | 12 Months Ended | |||
Aug. 23, 2021 | Aug. 04, 2021 | Dec. 14, 2020 | Dec. 31, 2021 | |
Equity [Abstract] | ||||
Cash dividend per share (in dollars per share) | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 |
Other Operating Expense, Net (D
Other Operating Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Amortization expense | $ 10,565 | $ 10,562 | $ 10,321 |
Transaction and other related costs | 2,954 | 6,988 | 2,268 |
Restructuring, integration and business optimization costs | 2,655 | 11,566 | 3,866 |
Net loss on asset disposals | (4,137) | (3,594) | (5,666) |
Other, net | 1,789 | 2,201 | 2,152 |
Other operating expense, net | $ 22,100 | $ 34,911 | $ 24,273 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net | ||
Finished products and work in process | $ 41,658 | $ 39,909 |
Raw materials | 3,457 | 4,453 |
Inventory, net | 45,115 | 44,362 |
Valued at lower of cost or market: | ||
LIFO basis | 24,815 | 25,258 |
Valued at lower of cost and net realizable value: | ||
FIFO or average cost basis | 20,300 | 19,104 |
Inventory, net | $ 45,115 | $ 44,362 |
Inventories, Net - Narratives (
Inventories, Net - Narratives (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Business Combinations | ||
Inventory | ||
Lower inventory valuation if FIFO rather than LIFO | $ 3,529 | $ 7,002 |
Investments in Affiliated Com_3
Investments in Affiliated Companies - Narratives (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 19, 2019 | Dec. 18, 2013 | |
Business Acquisition | |||||
Amortization of investment in affiliate step-up | $ (6,403,000) | $ (6,402,000) | |||
Accounts payable | 40,195,000 | 40,019,000 | |||
Related Party | |||||
Business Acquisition | |||||
Accounts receivable, related parties | 3,231,000 | 3,861,000 | |||
Accounts payable | 1,351,000 | 322,000 | |||
Sales | 2,457,000 | 5,915,000 | $ 3,643,000 | ||
Purchases from related party | 0 | 0 | 0 | ||
Real estate tax abatement term (in years) | 10 years | ||||
Real estate tax abatement | 75% | 75% | |||
Business Combination | |||||
Business Acquisition | |||||
Net purchase accounting fair value adjustments | 224,614,000 | 231,017,000 | |||
Amortization of investment in affiliate step-up | $ 6,403,000 | $ 6,402,000 | $ 6,480,000 |
Investments in Affiliated Com_4
Investments in Affiliated Companies - Ownership Percentage (Details) | Dec. 31, 2023 |
Zeolyst International | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50% |
Zeolyst C.V. | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 50% |
Investments in Affiliated Com_5
Investments in Affiliated Companies - Summarized Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 245,987 | $ 267,704 |
Current liabilities | 119,081 | 129,403 |
Equity method investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Current assets | 291,825 | 278,330 |
Noncurrent assets | 183,717 | 196,775 |
Current liabilities | 36,799 | 47,407 |
Noncurrent liabilities | $ 5,797 | $ 16,000 |
Investments in Affiliated Com_6
Investments in Affiliated Companies - Summarized Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Gross profit | $ 197,965 | $ 224,630 | $ 176,661 |
Operating income | 96,650 | 104,385 | 54,607 |
Net income (loss) | 71,154 | 73,697 | (139,949) |
Equity method investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Sales | 345,002 | 306,511 | 296,416 |
Gross profit | 107,865 | 105,693 | 101,069 |
Operating income | 70,783 | 67,169 | 66,978 |
Net income (loss) | $ 74,053 | $ 68,255 | $ 68,433 |
Investments in Affiliated Com_7
Investments in Affiliated Companies - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investments | |||
Balance at beginning of period | $ 436,013 | $ 446,074 | |
Equity in net income of affiliated companies | 37,027 | 34,128 | |
Amortization of investment in affiliate step-up | (6,403) | (6,402) | |
Dividends received | (28,000) | (35,000) | $ (35,000) |
Foreign currency translation adjustments | 1,561 | (2,787) | |
Balance at end of period | $ 440,198 | $ 436,013 | $ 446,074 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,044,202 | $ 986,313 |
Less: accumulated depreciation | (467,298) | (401,424) |
Property, plant and equipment, net | 576,904 | 584,889 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 96,833 | 96,659 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 84,860 | 82,061 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 820,509 | 751,145 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 42,000 | $ 56,448 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 70,551 | $ 65,121 | $ 65,955 |
Leases - Narratives (Details)
Leases - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 10,828 | $ 10,318 | $ 9,825 |
Finance Lease and Obligation, Cost | $ 77 | $ 36 | $ 37 |
Leases - Right-of-Use Lease Ass
Leases - Right-of-Use Lease Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating lease | $ 24,281 | $ 28,265 |
Finance lease | $ 1,269 | $ 1,422 |
Finance lease asset, balance sheet line item | Property, plant and equipment, net | Property, plant and equipment, net |
Total leased assets | $ 25,550 | $ 29,687 |
Current: | ||
Operating lease | 8,193 | 8,155 |
Finance lease | $ 70 | $ 86 |
Finance lease liabilities, current, balance sheet line item | Accrued liabilities | Accrued liabilities |
Noncurrent: | ||
Operating lease | $ 16,030 | $ 20,021 |
Finance lease | $ 28 | $ 101 |
Finance lease liabilities, noncurrent, balance sheet line item | Other long-term liabilities | Other long-term liabilities |
Total leased liabilities | $ 24,321 | $ 28,363 |
Leases - Remaining Average Weig
Leases - Remaining Average Weighted Average Lease Term and Discount Rates (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted average remaining lease term (in years): | ||
Operating leases | 3 years 11 months 15 days | 4 years 5 months 12 days |
Finance leases | 1 year 3 months 29 days | 2 years 3 months 14 days |
Weighted average discount rate: | ||
Operating leases | 5.95% | 5.24% |
Finance leases | 0.0391 | 0.0310 |
Leases - Lease Maturity Schedul
Leases - Lease Maturity Schedule - ASC 842 (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases | |
2024 | $ 9,539 |
2025 | 6,916 |
2026 | 5,068 |
2027 | 3,672 |
2028 | 1,154 |
Thereafter | 1,014 |
Total lease payments | 27,363 |
Less: Interest | (3,140) |
Total lease liabilities | 24,223 |
Finance Leases | |
2024 | 78 |
2025 | 23 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | 101 |
Less: Interest | (3) |
Total lease liabilities | $ 98 |
Leases - Other Lease Informatio
Leases - Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: [Abstract] | ||
Payments on operating leases included in operating cash flows | $ 10,813 | $ 10,327 |
Interest payments under finance leases included in operating cash flows | 5 | 3 |
Principal payments under finance leases included in financing cash flows | 72 | 33 |
Right-of-use assets obtained in exchange for new lease liabilities (non-cash): | ||
Operating leases | $ 8,105 | $ 7,462 |
Reportable Segments - Narrative
Reportable Segments - Narratives (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of reporting units | 2 |
Reportable Segments - Summary F
Reportable Segments - Summary Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales | $ 691,118 | $ 820,159 | $ 611,201 |
Adjusted EBITDA from reportable segments | 281,858 | 305,738 | 265,700 |
Equity in net income from affiliated companies | 30,624 | 27,725 | 27,737 |
Amortization of investment in affiliate step-up | (6,403) | (6,402) | |
Ecoservices | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales | 584,845 | 702,472 | 500,513 |
Adjusted EBITDA from reportable segments | 199,966 | 227,760 | 177,672 |
Advanced Materials & Catalysts | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales | 106,273 | 117,687 | 110,688 |
Adjusted EBITDA from reportable segments | 81,892 | 77,978 | 88,028 |
Advanced Materials & Catalysts | Zeolyst Joint Venture | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Sales | 156,481 | 132,588 | 131,332 |
Adjusted EBITDA from reportable segments | 50,490 | 50,331 | 49,872 |
Equity in net income from affiliated companies | 30,695 | 27,931 | 27,827 |
Amortization of investment in affiliate step-up | 6,403 | 6,403 | 6,480 |
Joint venture depreciation, amortization and interest | $ 13,392 | $ 15,997 | $ 15,565 |
Reportable Segments - Reconcili
Reportable Segments - Reconciliation of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Income from continuing operations before income taxes | $ 81,939 | $ 94,735 | $ 13,941 |
Interest expense, net | 44,730 | 37,217 | 36,990 |
Depreciation and amortization | 84,598 | 79,163 | 79,741 |
Adjusted EBITDA from reportable segments | 281,858 | 305,738 | 265,700 |
Amortization of investment in affiliate step-up | (6,403) | (6,402) | |
Debt extinguishment costs | 0 | 0 | 26,902 |
Net loss on asset disposals | 4,137 | 3,594 | 5,666 |
Transaction and other related costs | 2,954 | 6,988 | 2,268 |
Equity-based compensation | 16,031 | 20,632 | 31,838 |
Restructuring, integration and business optimization costs | 2,655 | 11,566 | 3,866 |
Segment reconciling items | |||
Segment Reporting Information | |||
Joint venture depreciation, amortization and interest | 13,392 | 15,997 | 15,565 |
Amortization of investment in affiliate step-up | 6,403 | 6,402 | 6,480 |
Debt extinguishment costs | 0 | 0 | 26,902 |
Net loss on asset disposals | 4,137 | 3,594 | 5,666 |
Foreign currency exchange (gain) loss | (1,340) | 1,388 | 4,716 |
LIFO benefit | 3,473 | (165) | (1,931) |
Transaction and other related costs | 2,954 | 6,988 | 2,009 |
Equity-based compensation | 16,031 | 20,632 | 31,838 |
Restructuring, integration and business optimization costs | 2,655 | 11,566 | 3,866 |
Other | 896 | (821) | 1,828 |
Operating segments | |||
Segment Reporting Information | |||
Adjusted EBITDA from reportable segments | 281,858 | 305,738 | 265,700 |
Corporate | |||
Segment Reporting Information | |||
Unallocated Corporate Expenses | $ 21,990 | $ 29,042 | $ 38,089 |
Reportable Segments - Capital E
Reportable Segments - Capital Expenditures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets | |||
Capital expenditures | $ 65,335 | $ 58,870 | $ 60,045 |
Operating segments | Ecoservices | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital expenditures | 53,705 | 47,770 | 43,561 |
Operating segments | Advanced Materials & Catalysts | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital expenditures | 8,441 | 8,194 | 15,997 |
Operating segments | Corporate | |||
Revenues from External Customers and Long-Lived Assets | |||
Capital expenditures | $ 3,189 | $ 2,906 | $ 487 |
Reportable Segments - Sales by
Reportable Segments - Sales by Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets | |||
Sales | $ 691,118 | $ 820,159 | $ 611,201 |
Products | Sales | Customer Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets | |||
Concentration Risk, Percentage | 13.20% | 12.30% | 12.60% |
United States | |||
Revenues from External Customers and Long-Lived Assets | |||
Sales | $ 649,652 | $ 774,119 | $ 571,587 |
Foreign countries | |||
Revenues from External Customers and Long-Lived Assets | |||
Sales | $ 41,466 | $ 46,040 | $ 39,614 |
Reportable Segments - Assets by
Reportable Segments - Assets by Geography (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 601,185 | $ 613,154 |
United States | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | 575,536 | 587,726 |
Foreign countries | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 25,649 | $ 25,428 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Beginning balance | $ 403,163 | $ 406,139 |
Goodwill adjustments | (81) | |
Foreign exchange impact | 1,307 | (2,895) |
Ending balance | 404,470 | 403,163 |
Ecoservices | ||
Goodwill | ||
Beginning balance | 326,589 | 326,670 |
Goodwill adjustments | (81) | |
Foreign exchange impact | 0 | 0 |
Ending balance | 326,589 | 326,589 |
Advanced Materials & Catalysts | ||
Goodwill | ||
Beginning balance | 76,574 | 79,469 |
Goodwill adjustments | 0 | |
Foreign exchange impact | 1,307 | (2,895) |
Ending balance | $ 77,881 | $ 76,574 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narratives (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Goodwill | |||
Number of reporting units | segment | 2 | ||
Number of operating segments | segment | 2 | ||
Amortization | $ 10,565 | $ 10,562 | $ 10,321 |
Non-compete agreements | |||
Goodwill | |||
Finite lived intangible assets useful life | 5 years | ||
Trademarks | |||
Goodwill | |||
Finite lived intangible assets useful life | 15 years | ||
Trade names | |||
Goodwill | |||
Finite lived intangible assets useful life | 10 years | ||
Minimum | Technical know-how | |||
Goodwill | |||
Finite lived intangible assets useful life | 10 years | ||
Minimum | Customer relationships | |||
Goodwill | |||
Finite lived intangible assets useful life | 10 years | ||
Maximum | Technical know-how | |||
Goodwill | |||
Finite lived intangible assets useful life | 20 years | ||
Maximum | Customer relationships | |||
Goodwill | |||
Finite lived intangible assets useful life | 15 years | ||
Cost of goods sold | |||
Goodwill | |||
Amortization | $ 3,482 | 3,480 | 3,465 |
Other operating expenses | |||
Goodwill | |||
Amortization | $ 10,565 | $ 10,562 | $ 10,321 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets | |||
Gross Carrying Amount | $ 225,350 | $ 224,256 | |
Net Balance | 116,550 | 129,932 | |
Definite-lived Intangible assets, net | |||
Accumulated Amortization | (108,800) | (94,324) | |
Total estimated future aggregate amortization expense | 87,283 | ||
Amortization expense | 10,565 | 10,562 | $ 10,321 |
Indefinite-lived trade names | |||
Indefinite-lived intangible assets, net | |||
Gross Carrying Amount | 25,367 | 25,153 | |
Net Balance | 25,367 | 25,153 | |
In-process research and development | |||
Indefinite-lived intangible assets, net | |||
Gross Carrying Amount | 3,900 | 3,900 | |
Net Balance | 3,900 | 3,900 | |
Finite-Lived Intangible Assets | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | 196,083 | 195,203 | |
Accumulated Amortization | (108,800) | (94,324) | |
Total estimated future aggregate amortization expense | 87,283 | 100,879 | |
Technical know-how | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | 55,350 | 54,880 | |
Accumulated Amortization | (27,472) | (23,822) | |
Total estimated future aggregate amortization expense | $ 27,878 | 31,058 | |
Technical know-how | Minimum | |||
Definite-lived Intangible assets, net | |||
Finite lived intangible assets useful life | 10 years | ||
Technical know-how | Maximum | |||
Definite-lived Intangible assets, net | |||
Finite lived intangible assets useful life | 20 years | ||
Customer relationships | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | $ 130,912 | 130,636 | |
Accumulated Amortization | (76,634) | (66,669) | |
Total estimated future aggregate amortization expense | $ 54,278 | 63,967 | |
Customer relationships | Minimum | |||
Definite-lived Intangible assets, net | |||
Finite lived intangible assets useful life | 10 years | ||
Customer relationships | Maximum | |||
Definite-lived Intangible assets, net | |||
Finite lived intangible assets useful life | 15 years | ||
Non-compete agreements | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | $ 700 | 700 | |
Accumulated Amortization | (397) | (257) | |
Total estimated future aggregate amortization expense | $ 303 | 443 | |
Finite lived intangible assets useful life | 5 years | ||
Trademarks | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | $ 7,521 | 7,387 | |
Accumulated Amortization | (3,844) | (3,283) | |
Total estimated future aggregate amortization expense | $ 3,677 | 4,104 | |
Finite lived intangible assets useful life | 15 years | ||
Indefinite-lived trade names | |||
Definite-lived Intangible assets, net | |||
Gross Carrying Amount | $ 1,600 | 1,600 | |
Accumulated Amortization | (453) | (293) | |
Total estimated future aggregate amortization expense | $ 1,147 | $ 1,307 | |
Finite lived intangible assets useful life | 10 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2024 | $ 14,068 |
2025 | 14,068 |
2026 | 12,912 |
2027 | 12,370 |
2028 | 12,222 |
Thereafter | 21,643 |
Total estimated future aggregate amortization expense | $ 87,283 |
Accrued Liabilities Accrued L_2
Accrued Liabilities Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Compensation and bonus | $ 16,594 | $ 30,890 |
Interest | 11,976 | 10,493 |
Property taxes | 3,657 | 2,123 |
Income taxes | 7,708 | 4,412 |
Finance lease and financing obligation liabilities | 3,069 | 2,855 |
Dividends payable | 641 | 4,062 |
Other | 18,048 | 17,394 |
Accrued Liabilities, Current, Total | $ 61,693 | $ 72,229 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 09, 2021 |
Debt Instrument [Line Items] | |||
Total debt | $ 877,500 | $ 886,500 | |
Original issue discount | (6,162) | (7,472) | |
Deferred financing costs | (3,392) | (4,158) | |
Total debt, net of original issue discount and deferred financing costs | 867,946 | 874,870 | |
Less: current portion | (9,000) | (9,000) | |
Total long-term debt, excluding current portion | 858,946 | 865,870 | |
Term Loan Facility | 2021 Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 877,500 | 886,500 | $ 900,000 |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Total debt | $ 0 | $ 0 |
Long-term Debt - ABL Facility (
Long-term Debt - ABL Facility (Details) $ in Thousands | Feb. 17, 2023 | Jun. 09, 2021 USD ($) | Mar. 20, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | May 04, 2016 USD ($) |
Debt Instrument [Line Items] | ||||||
ABL maximum borrowing capacity | $ 100,000 | $ 250,000 | ||||
Increase amount of ABL commitments | 150,000 | $ 50,000 | ||||
Commitment fee percentage | 0.375% | |||||
ABL Facility | ||||||
Debt Instrument [Line Items] | ||||||
ABL maximum borrowing capacity | $ 200,000 | |||||
Potential commitment fee percentage | 0.25% | |||||
ABL Facility | Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate, spread adjustment | 0.10% | |||||
Interest rate, effective percentage | 8.75% | |||||
Minimum | ABL Facility | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 1.25% | |||||
Minimum | ABL Facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 0.25% | 0.25% | ||||
Minimum | ABL Facility | Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 1.25% | |||||
Maximum | ABL Facility | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 1.75% | |||||
Maximum | ABL Facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 0.75% | 0.75% | ||||
Maximum | ABL Facility | Secured Overnight Financing Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable basis spread | 1.75% | |||||
ABL Facility | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 4,043 | |||||
Debt instrument, covenant, fixed charge coverage ratio | 1 | |||||
USD | ||||||
Debt Instrument [Line Items] | ||||||
ABL maximum borrowing capacity | 90,000 | $ 195,000 | ||||
Euro | ||||||
Debt Instrument [Line Items] | ||||||
ABL maximum borrowing capacity | $ 10,000 | 40,000 | ||||
Canada, Dollars | ||||||
Debt Instrument [Line Items] | ||||||
ABL maximum borrowing capacity | $ 15,000 |
Long-term Debt - 2021 Term Loan
Long-term Debt - 2021 Term Loan Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Feb. 09, 2023 | Jun. 09, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 877,500 | $ 886,500 | ||
2021 Term Loan Facility | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate, effective percentage | 7.98% | |||
2021 Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Original issue discount | 0.25% | |||
Variable rate floor | 0.50% | |||
Variable basis spread | 2.75% | |||
Debt instrument, first lien leverage ratio | 2.50% | 2.50% | ||
Scheduled quarterly principal payments | 0.25% | |||
2021 Term Loan Facility | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Variable rate floor | 0.50% | |||
2021 Term Loan Facility | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 900,000 | $ 877,500 | $ 886,500 | |
Variable basis spread | 2.50% | |||
Mandatory payments, excess cash flow | 50% | |||
2021 Term Loan Facility | Term Loan Facility | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Variable basis spread | 2.75% |
Long-term Debt - Fair Value (De
Long-term Debt - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
2021 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Fair value of debt | $ 876,403 | $ 870,986 |
Long-term Debt - Aggregate Long
Long-term Debt - Aggregate Long-term Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Fiscal Year Maturity | ||
2024 | $ 9,000 | |
2025 | 9,000 | |
2026 | 9,000 | |
2027 | 9,000 | |
2028 | 841,500 | |
Total debt | $ 877,500 | $ 886,500 |
Other Long-term Liabilities O_2
Other Long-term Liabilities Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Pension plan liabilities | $ 4,937 | $ 6,250 |
Other postretirement benefit plan liabilities | 457 | 428 |
Derivative liabilities | 2,496 | 2,071 |
Finance lease and financing obligation liabilities | 4,955 | 7,633 |
Reserve for uncertain tax positions | 9,523 | 8,215 |
Other | 71 | 1,249 |
Other Liabilities, Noncurrent, Total | $ 22,439 | $ 25,846 |
Financial Instruments - Interes
Financial Instruments - Interest Rate Cap Agreements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) derivativeInstrument | |
Derivative [Line Items] | |
Derivative, number of instruments | derivativeInstrument | 4 |
Derivative, number of instruments in effect | derivativeInstrument | 3 |
Premium paid to acquire derivative instrument | $ 24,817 |
Gain (loss) to be reclassified within twelve months | (9,712) |
Cash flow hedging | |
Derivative [Line Items] | |
Derivative, notional amount | $ 650,000 |
Derivative, cap interest rate | 1% |
Cash flow hedging | January 2022 interest rate cap expiring October 2024 | |
Derivative [Line Items] | |
Derivative, notional amount | $ 250,000 |
Cash flow hedging | January 2022 interest rate cap expiring October 2025 | |
Derivative [Line Items] | |
Derivative, notional amount | 250,000 |
Cash flow hedging | November 2022 interest rate cap - year 1 | |
Derivative [Line Items] | |
Derivative, notional amount | 150,000 |
Cash flow hedging | November 2022 Interest Rate Cap - August 2024 to July 2026 | |
Derivative [Line Items] | |
Derivative, notional amount | $ 175,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives designated as cash flow hedges: | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid and other current assets | Prepaid and other current assets |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Derivative asset, current | $ 13,419 | $ 18,510 |
Derivatives designated as cash flow hedges: | ||
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Derivative liabilities | $ 2,496 | $ 2,071 |
Derivatives designated as cash flow hedges: | ||
Derivatives designated as cash flow hedges: | ||
Derivative asset | 19,021 | 34,374 |
Derivatives designated as cash flow hedges: | ||
Derivative liability | 2,496 | 2,071 |
Derivatives designated as cash flow hedges: | Cash flow hedging | Interest rate caps | ||
Derivatives designated as cash flow hedges: | ||
Derivative asset, current | 13,419 | 18,510 |
Derivative asset, noncurrent | 5,602 | 15,864 |
Derivatives designated as cash flow hedges: | ||
Derivative liabilities | $ 2,496 | $ 2,071 |
Financial Instruments - Effect
Financial Instruments - Effect on Other Comprehensive Income (Details) - Interest rate caps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amount of gain (loss) recognized in OCI on derivatives | |||
Amount of gain (loss) recognized in OCI on derivatives | $ 5,419 | $ 32,510 | $ 3,441 |
Interest expense | |||
Amount of gain (loss) reclassified from AOCI into income | |||
Amount of gain (loss) reclassified from AOCI into income | $ 22,731 | $ (683) | $ (444) |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedge Impact on Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Interest expense | $ (44,730) | $ (37,217) | $ (36,990) |
Gain (loss) on cash flow hedging relationships | Amount of gain (loss) reclassified from AOCI into income | |||
Derivative [Line Items] | |||
Interest expense | $ 22,731 | $ (683) | $ (444) |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before Income Taxes and Noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 73,774 | $ 86,695 | $ 6,185 |
Foreign | 8,165 | 8,040 | 7,756 |
Income before income taxes | $ 81,939 | $ 94,735 | $ 13,941 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 21,647 | $ 18,210 | $ 2,469 |
State | 3,695 | 3,100 | 1,813 |
Foreign | 2,515 | 1,978 | 3,317 |
Current income tax | 27,857 | 23,288 | 7,599 |
Deferred: | |||
Federal | (3,644) | 4,544 | (1,813) |
State | (11,993) | (2,288) | 2,551 |
Foreign | (1,435) | (604) | 3,810 |
Deferred income tax | (17,072) | 1,652 | 4,548 |
Total | $ 10,785 | $ 24,940 | $ 12,147 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 17,207 | $ 19,894 | $ 2,928 |
State income taxes, net of federal income tax benefit | 748 | 248 | 3,942 |
Changes in uncertain tax positions | 985 | 558 | 877 |
State credit - valuation allowance release | (10,203) | 0 | 0 |
Rate changes | (101) | 0 | 5,209 |
Stock compensation | 1,803 | 1,876 | 197 |
Compensation disallowance under 162(m) | 2,344 | 3,146 | 466 |
Foreign tax credits | (848) | 0 | (759) |
Research and development tax credits | (400) | (366) | (620) |
Other, net | (750) | (416) | (93) |
Total | $ 10,785 | $ 24,940 | $ 12,147 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 14,680 | $ 13,705 |
Interest disallowance carryforward | 1,169 | 228 |
Pension | 569 | 879 |
Operating lease liability | 5,940 | 6,873 |
Other | 10,806 | 10,653 |
State credits | 14,659 | 13,773 |
Foreign withholding taxes | 9,083 | 9,083 |
Valuation allowance | (18,325) | (30,615) |
Deferred tax asset net of valuation | 38,581 | 24,579 |
Deferred tax liabilities: | ||
Depreciation | (66,816) | (70,400) |
Inventory | (3,427) | (3,039) |
Intangibles | (67,250) | (63,873) |
Operating lease right-of-use assets | (5,954) | (6,763) |
Other | (8,675) | (15,910) |
Deferred tax liability | (152,122) | (159,985) |
Deferred Tax Liabilities, Net | (113,541) | $ (135,406) |
Tax Credit Carryforward, Valuation Allowance | 0 | |
Operating loss carryforward, valuation allowance | $ 9,242 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards | ||
Foreign withholding taxes | $ 9,083 | $ 9,083 |
State credits | 14,659 | 13,773 |
Tax Credit Carryforward, Valuation Allowance | 0 | |
Net operating loss carryforwards | 14,680 | 13,705 |
Operating loss carryforward, valuation allowance | 9,242 | |
Undistributed earnings of foreign subsidiaries | 198,580 | |
Interest and penalties from unrecognized tax positions | 855 | $ 558 |
Unrecognized tax benefit that would impact effective tax rate | $ 8,023 | |
Inflation Reduction Act, Corporate Alternative Minimum Tax | 15% | |
Inflation Reduction Act, Average Annual Adjusted Income Excess | $ 1,000,000 | |
Inflation Reduction Act, Excise Tax on Net Stock Repurchases | 1% | |
Other long-term liabilities | ||
Operating Loss Carryforwards | ||
Accrued penalties and interest | $ 1,413 | |
Valuation Allowance of Deferred Tax Assets | ||
Operating Loss Carryforwards | ||
Net change in period | $ (12,290) |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 7,787 | $ 7,787 |
Increases related to prior year tax positions | 323 | 0 |
Balance at end of period | $ 8,110 | $ 7,787 |
Income Taxes - Payment for Taxe
Income Taxes - Payment for Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards | |||
Income taxes, net of refunds | $ 22,437 | $ 25,556 | $ 11,843 |
Continuing Operations | |||
Operating Loss Carryforwards | |||
Income taxes, net of refunds | 22,437 | 13,636 | 618 |
Domestic | Continuing Operations | |||
Operating Loss Carryforwards | |||
Income taxes, net of refunds | 21,973 | 13,277 | 549 |
Foreign | Continuing Operations | |||
Operating Loss Carryforwards | |||
Income taxes, net of refunds | $ 464 | $ 359 | $ 69 |
Income Taxes - Inflation Reduct
Income Taxes - Inflation Reduction Act (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Tax Disclosure [Abstract] | |
Inflation Reduction Act, Corporate Alternative Minimum Tax | 15% |
Inflation Reduction Act, Average Annual Adjusted Income Excess | $ 1,000,000 |
Inflation Reduction Act, Excise Tax on Net Stock Repurchases | 1% |
Benefit Plans - Change in Benef
Benefit Plans - Change in Benefit Obligation and Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | $ 66,879 | $ 86,465 | |
Interest cost | 3,453 | 2,569 | |
Plan settlements | (2,543) | (862) | |
Benefits paid | (2,798) | (2,552) | |
Actuarial losses/(gains) | 1,565 | (18,741) | |
Benefit obligation at end of the period | 66,556 | 66,879 | $ 86,465 |
Changes in actuarial (gains) losses due to discount rates | 1,365 | (18,641) | |
Actuarial gain (loss), general experience | 200 | (100) | |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 60,629 | 82,914 | |
Actual return on plan assets | 6,330 | (18,871) | |
Plan settlements | (2,543) | (862) | |
Benefits paid | (2,798) | (2,552) | |
Fair value of plan assets at end of the period | 61,618 | 60,629 | 82,914 |
Funded status of the plans (underfunded) | (4,938) | (6,250) | |
Underfunded and Unfunded Plans | |||
Change in plan assets: | |||
Funded status of the plans (underfunded) | 4,938 | 6,250 | |
Other Postretirement Benefits Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 446 | 624 | |
Interest cost | 24 | 18 | 17 |
Benefits paid | (1) | (1) | |
Premiums paid | (3) | (3) | |
Actuarial losses/(gains) | 9 | (192) | |
Benefit obligation at end of the period | 475 | 446 | $ 624 |
Changes in actuarial (gains) losses due to discount rates | 9 | ||
Change in plan assets: | |||
Employer contributions | 4 | 4 | |
Fair value of plan assets at beginning of period | 0 | ||
Benefits paid | (1) | (1) | |
Premiums paid | (3) | (3) | |
Fair value of plan assets at end of the period | 0 | 0 | |
Funded status of the plans (underfunded) | $ (475) | $ (446) |
Benefit Plans - Recognized on t
Benefit Plans - Recognized on the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plans | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | ||
Noncurrent liability | $ (4,937) | $ (6,250) |
Accumulated other comprehensive income (loss), net of tax | 567 | (509) |
Net amount recognized | (4,370) | (6,759) |
Other Postretirement Benefits Plans | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | ||
Current liability | (18) | (18) |
Noncurrent liability | (457) | (428) |
Accumulated other comprehensive income (loss), net of tax | 79 | (299) |
Net amount recognized | $ (396) | $ (745) |
Benefit Plans - Accumulated Oth
Benefit Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plans | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | ||
Net (loss) gain | $ 751 | $ (1,039) |
Gross amount recognized | 751 | (1,039) |
Deferred income taxes | (184) | 530 |
Net amount recognized | 567 | (509) |
Other Postretirement Benefits Plans | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | ||
Prior service credit | 30 | 154 |
Net (loss) gain | 75 | 80 |
Gross amount recognized | 105 | 234 |
Deferred income taxes | (26) | (533) |
Net amount recognized | $ 79 | $ (299) |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | |||
Interest cost | $ 3,453 | $ 2,569 | |
Defined Benefit Pension Plans | U.S. | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | |||
Interest cost | 3,453 | 2,569 | $ 2,210 |
Expected return on plan assets | (3,305) | (3,433) | (4,360) |
Settlement loss (gain) recognized | 61 | 38 | (26) |
Net periodic expense (benefit) | 209 | (826) | (2,176) |
Defined Benefit Pension Plans | Foreign | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | |||
Interest cost | 255 | ||
Expected return on plan assets | (255) | ||
Settlement loss (gain) recognized | 2,084 | ||
Net periodic expense (benefit) | 2,084 | ||
Other Postretirement Benefits Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | |||
Interest cost | 24 | 18 | 17 |
Amortization of prior service credit | (125) | (210) | (232) |
Amortization of net loss | (2) | 3 | 5 |
Net periodic expense (benefit) | $ (103) | $ (189) | $ (210) |
Benefit Plans - Amounts recogni
Benefit Plans - Amounts recognized in NPBC and OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure | ||
Net (gain) loss | $ (1,461) | $ 3,563 |
Amortization or settlement recognition of net loss | (61) | (38) |
Total recognized in other comprehensive (income) loss | (1,522) | 3,525 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | (1,313) | 2,699 |
Other Postretirement Benefits Plans | ||
Defined Benefit Plan Disclosure | ||
Net (gain) loss | 9 | (192) |
Amortization of prior service credit | 125 | 210 |
Amortization or settlement recognition of net loss | 2 | (3) |
Total recognized in other comprehensive (income) loss | 136 | 15 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ 33 | $ (174) |
Benefit Plans - Projected and A
Benefit Plans - Projected and Accumulated Benefit Obligation (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure | |||
Projected benefit obligation | $ 66,555 | $ 66,879 | |
Accumulated benefit obligation | 66,555 | 66,879 | |
Fair value of plan assets | $ 61,618 | $ 60,629 | $ 82,914 |
Benefit Plans - Weighted Averag
Benefit Plans - Weighted Average Assumptions for Pension Obligation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Pension Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 5.17% | 5.40% |
Other Postretirement Benefits Plans | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation | ||
Discount rate | 5.20% | 5.50% |
Benefit Plans - Weighted Aver_2
Benefit Plans - Weighted Average Assumptions for Net Periodic Cost (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Pension Plans | U.S. | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 5.39% | 2.90% | 2.50% |
Expected return on assets | 5.74% | 4.90% | 5.60% |
Defined Benefit Pension Plans | Foreign | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 1.20% | ||
Expected return on assets | 1.20% | ||
Rate of compensation increase | 1.75% | ||
Other Postretirement Benefits Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | |||
Discount rate | 5.50% | 2.90% | 2.60% |
Benefit Plans - Plan Assets (De
Benefit Plans - Plan Assets (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 61,618 | $ 60,629 | $ 82,914 |
Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 61,618 | 60,629 | |
Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 264 | 244 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 264 | 244 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | 0 | |
Equity securities: | Ecoservices Pension Equity Plan | |||
Defined Benefit Plan Disclosure | |||
Target asset plan allocation percentage | 35% | ||
Equity securities: | Ecoservices Hourly Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Target asset plan allocation percentage | 30% | ||
U.S. investment funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 11,539 | 11,435 | |
U.S. investment funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 11,539 | 11,435 | |
U.S. investment funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
U.S. investment funds | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
International investment funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 7,546 | 7,803 | |
International investment funds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 7,546 | 7,803 | |
International investment funds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
International investment funds | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | 0 | |
Fixed income securities: | Ecoservices Pension Equity Plan | |||
Defined Benefit Plan Disclosure | |||
Target asset plan allocation percentage | 65% | ||
Fixed income securities: | Ecoservices Hourly Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Target asset plan allocation percentage | 70% | ||
Government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 11,691 | 16,209 | |
Government securities | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 11,691 | 16,209 | |
Government securities | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Government securities | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 30,578 | 24,938 | |
Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 30,578 | 24,938 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans - Benefit Plan, F
Benefit Plans - Benefit Plan, Future Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | $ 8,156 |
2025 | 4,434 |
2026 | 4,505 |
2027 | 4,523 |
2028 | 4,714 |
Years 2029-2033 | 22,815 |
Expected future payments | 1,680 |
Other Postretirement Benefits Plans | |
Defined Benefit Plan, Expected Future Benefit Payment | |
2024 | 19 |
2025 | 20 |
2026 | 21 |
2027 | 23 |
2028 | 24 |
Years 2029-2033 | 150 |
Expected future payments | $ 18 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Retirement Benefits [Abstract] | |||
Number of defined benefit pension plans | plan | 2 | ||
Defined Contribution expense | $ | $ 7,015 | $ 7,113 | $ 7,097 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Aug. 23, 2021 | Aug. 04, 2021 | Dec. 14, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Dividends paid on common stock (in dollars per share) | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 | ||
Additional stock compensation expense | $ 6,667 | |||||
Granted (shares) | 0 | |||||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Expiration period | 10 years | |||||
Intrinsic value of stock options exercised | $ 1,693 | $ 1,306 | 1,767 | |||
Proceeds from stock options exercised | $ 0 | $ 0 | $ 0 | |||
Performance Stock Units | 2023 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award requisite service period | 3 years | |||||
Granted (shares) | 721,537 | |||||
Estimated weighted average fair value of awards (in usd per share) | $ 12.27 | |||||
Performance Stock Units | 2023 Grants | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 0% | |||||
Performance Stock Units | 2023 Grants | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 200% | |||||
Performance Stock Units | 2022 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award requisite service period | 3 years | |||||
Granted (shares) | 295,132 | |||||
Estimated weighted average fair value of awards (in usd per share) | $ 8.82 | |||||
Performance Stock Units | 2022 Grants | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 0% | |||||
Performance Stock Units | 2022 Grants | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 200% | |||||
Performance Stock Units | 2021 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award requisite service period | 3 years | |||||
Granted (shares) | 211,985 | |||||
Estimated weighted average fair value of awards (in usd per share) | $ 13.21 | |||||
Performance Stock Units | 2021 Grants | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 0% | |||||
Performance Stock Units | 2021 Grants | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 200% | |||||
Performance Stock Units | 2020 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award requisite service period | 3 years | |||||
Performance Stock Units | 2020 Grants | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 0% | |||||
Performance Stock Units | 2020 Grants | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 200% | |||||
Performance Stock Units | Company Performance Measure | 2020 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 53.30% | |||||
Granted, percentage of target | 0.50 | |||||
Performance Stock Units | Total Shareholder Return (TSR) | 2020 Grants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Award vesting percentage | 56% | |||||
Granted, percentage of target | 0.50 | |||||
Discontinued Operations | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Additional stock compensation expense | $ 2,635 | |||||
2017 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Number of shares available for grant (shares) | 9,498,538 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Aug. 23, 2021 | Aug. 04, 2021 | Dec. 14, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||||||
Dividends paid on common stock (in dollars per share) | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 | ||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||||
Beginning balance (shares) | 1,520,997 | 1,884,351 | 2,173,331 | |||
Exercised (shares) | (197,941) | (199,970) | (208,500) | |||
Forfeited (shares) | (284,956) | (51,860) | (39,996) | |||
Expired (shares) | (328,677) | (111,524) | (40,484) | |||
Ending balance (shares) | 709,423 | 1,520,997 | 1,884,351 | |||
Exercisable (shares) | 709,423 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ||||||
Beginning balance (usd per share) | $ 7.24 | $ 6.99 | $ 9.84 | |||
Exercised (usd per share) | 2.58 | 3.06 | 3.56 | |||
Forfeited (usd per share) | 3.39 | 3.98 | 3.53 | |||
Expired (usd per share) | 12.36 | 11.97 | 14.52 | |||
Ending balance (usd per share) | 7.73 | $ 7.24 | $ 6.99 | |||
Exercisable (usd per share) | $ 7.73 | |||||
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||||||
Outstanding, weighted average contractual term | 3 years 1 month 20 days | |||||
Exercisable, weighted average contractual term | 3 years 1 month 20 days | |||||
Outstanding, agregate intrinsic value | $ 2,322 | |||||
Exercisable, aggregate intrinsic value | $ 2,322 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards, Restricted Stock Units and Performance Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning balance nonvested (shares) | 277,056 | 633,724 | 897,015 |
Granted (shares) | 5,081 | 0 | 0 |
Vested (shares) | (5,081) | (84,903) | 0 |
Forfeited (shares) | (277,056) | (271,765) | (263,291) |
Ending balance nonvested (shares) | 0 | 277,056 | 633,724 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Beginning balance nonvested (weighted average grant date fair value, usd per share) | $ 15.66 | $ 15.84 | $ 13.80 |
Granted (weighted average grant date fair value, usd per share) | 9.84 | 0 | 0 |
Vested (weighted average grant date fair value, usd per share) | 9.84 | 8.83 | 0 |
Forfeited (weighted average grant date fair value, usd per share) | 15.66 | 15.84 | 15.31 |
Ending balance nonvested (weighted average grant date fair value, usd per share) | $ 0 | $ 15.66 | $ 15.84 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 50 | $ 749 | $ 0 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning balance nonvested (shares) | 2,464,718 | 2,507,421 | 1,841,139 |
Granted (shares) | 1,195,835 | 2,779,690 | 1,697,623 |
Vested (shares) | (1,436,301) | (1,550,969) | (773,619) |
Forfeited (shares) | (261,424) | (1,271,424) | (257,722) |
Ending balance nonvested (shares) | 1,962,828 | 2,464,718 | 2,507,421 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Beginning balance nonvested (weighted average grant date fair value, usd per share) | $ 11.73 | $ 15.68 | $ 16.14 |
Granted (weighted average grant date fair value, usd per share) | 9.84 | 10.28 | 15.39 |
Vested (weighted average grant date fair value, usd per share) | 11.84 | 15.08 | 16 |
Forfeited (weighted average grant date fair value, usd per share) | 11.27 | 12.27 | 16.03 |
Ending balance nonvested (weighted average grant date fair value, usd per share) | $ 10.55 | $ 11.73 | $ 15.68 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 17,008 | $ 15,579 | $ 11,507 |
Restricted Stock Units | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 1 year | ||
Restricted Stock Units | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 3 years | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Beginning balance nonvested (shares) | 639,532 | 1,117,555 | 965,736 |
Vested (shares) | (200,204) | (496,442) | 0 |
Forfeited (shares) | (201,648) | (276,713) | (60,166) |
Ending balance nonvested (shares) | 959,217 | 639,532 | 1,117,555 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Beginning balance nonvested (weighted average grant date fair value, usd per share) | $ 16.32 | $ 16.91 | $ 17.69 |
Granted (weighted average grant date fair value, usd per share) | 12.28 | 8.82 | 13.21 |
Vested (weighted average grant date fair value, usd per share) | 20.16 | 15.41 | 0 |
Forfeited (weighted average grant date fair value, usd per share) | 18.57 | 12.33 | 17.11 |
Ending balance nonvested (weighted average grant date fair value, usd per share) | $ 11.84 | $ 16.32 | $ 16.91 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,035 | $ 5,277 | $ 0 |
Performance Stock Units | 2020 Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 3 years | ||
Performance Stock Units | 2020 Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 0% | ||
Performance Stock Units | 2020 Grants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 200% | ||
Performance Stock Units | 2021 Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Estimated weighted average fair value of awards (in usd per share) | $ 13.21 | ||
Expected dividend yield, Monte Carlo simulation | 0% | ||
Risk-free interest rate, Monte Carlo simulation | 0.20% | ||
Expected volatility rate, Monte Carlo simulation | 41.70% | ||
Expected term, Monte Carlo simulation | 2 years 11 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Granted (shares) | 211,985 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 3 years | ||
Performance Stock Units | 2021 Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 0% | ||
Performance Stock Units | 2021 Grants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 200% | ||
Performance Stock Units | 2022 Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Estimated weighted average fair value of awards (in usd per share) | $ 8.82 | ||
Expected dividend yield, Monte Carlo simulation | 0% | ||
Risk-free interest rate, Monte Carlo simulation | 1.51% | ||
Expected volatility rate, Monte Carlo simulation | 44.51% | ||
Expected term, Monte Carlo simulation | 2 years 10 months 28 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Granted (shares) | 295,132 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 3 years | ||
Performance Stock Units | 2022 Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 0% | ||
Performance Stock Units | 2022 Grants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 200% | ||
Performance Stock Units | 2023 Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Estimated weighted average fair value of awards (in usd per share) | $ 12.27 | ||
Expected dividend yield, Monte Carlo simulation | 0% | ||
Risk-free interest rate, Monte Carlo simulation | 3.80% | ||
Expected volatility rate, Monte Carlo simulation | 48.82% | ||
Expected term, Monte Carlo simulation | 2 years 11 months 15 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Granted (shares) | 721,537 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award requisite service period | 3 years | ||
Performance Stock Units | 2023 Grants | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 0% | ||
Performance Stock Units | 2023 Grants | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Award vesting percentage | 200% |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock compensation expense | $ 16,031,000 | $ 20,632,000 | $ 31,838,000 |
Stock compensation expense, tax benefit | 1,826,000 | 2,799,000 | 7,735,000 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized stock-based compensation expense, other than options | 0 | ||
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized stock-based compensation expense, other than options | 0 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized stock-based compensation expense, other than options | $ 9,760,000 | ||
Unrecognized stock-based compensation expense, period for recognition | 1 year 8 months 8 days | ||
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized stock-based compensation expense, other than options | $ 6,360,000 | ||
Unrecognized stock-based compensation expense, period for recognition | 2 years 29 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock compensation expense | $ 0 | $ 0 | $ 0 |
Performance Shares | Exit event exceeding threshold | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting percentage | 100% |
Reconciliation from Basic to Di
Reconciliation from Basic to Diluted Weighted Average Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding – Basic (shares) | 118,367,214 | 133,601,322 | 136,167,384 |
Dilutive effect of unvested common shares and restricted stock units with service conditions, performance stock units considered probable of vesting and assumed stock option exercises and conversions (shares) | 1,120,495 | 1,486,850 | 1,541,547 |
Weighted average shares outstanding – Diluted (shares) | 119,487,709 | 135,088,172 | 137,708,931 |
Calculation of Basic and Dilute
Calculation of Basic and Diluted Earnings per Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Income from continuing operations attributable to Ecovyst Inc. | $ 71,154 | $ 69,795 | $ 1,794 |
Income (loss) from discontinued operations attributable to Ecovyst Inc. | 0 | 3,902 | (141,743) |
Net income (loss) attributable to Ecovyst Inc. | $ 71,154 | $ 73,697 | $ (139,949) |
Denominator: | |||
Weighted average shares outstanding – Basic (shares) | 118,367,214 | 133,601,322 | 136,167,384 |
Weighted average shares outstanding – Diluted (shares) | 119,487,709 | 135,088,172 | 137,708,931 |
Net income (loss) per share: | |||
Basic income per share—continuing operations | $ 0.60 | $ 0.52 | $ 0.01 |
Diluted income per share—continuing operations | 0.60 | 0.52 | 0.01 |
Basic income (loss) per share—discontinued operations | 0 | 0.03 | (1.04) |
Diluted income (loss) per share—discontinued operations | 0 | 0.03 | (1.03) |
Basic income (loss) per share (usd per share) | 0.60 | 0.55 | (1.03) |
Diluted income (loss) per share (usd per share) | $ 0.60 | $ 0.55 | $ (1.02) |
Anti-dilutive Shares (Details)
Anti-dilutive Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock awards with performance only targets not yet achieved | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares | 0 | 539,688 | 839,432 |
Stock options with performance only targets not yet achieved | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares | 51,526 | 309,984 | 373,105 |
Anti-dilutive restricted stock units and performance stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares | 286,729 | 20,497 | 6,214 |
Anti-dilutive stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive shares | 508,623 | 776,594 | 244,473 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies | ||
Environmental loss contingency statement of financial position extensible enumeration not disclosed flag | Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag |
Subsurface Remedial and Wetlands/Marsh Management | ||
Loss Contingencies | ||
Accrual for environmental loss contingencies | $ 313 | $ 306 |
Subsurface Remediation and Soil Vapor Extraction | ||
Loss Contingencies | ||
Accrual for environmental loss contingencies | 121 | $ 102 |
ABL Facility | ||
Loss Contingencies | ||
Letters of credit outstanding | $ 4,043 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction | |||
Accounts payable, related parties | $ 40,195,000 | $ 40,019,000 | |
Related Party | |||
Related Party Transaction | |||
Sales | 2,457,000 | 5,915,000 | $ 3,643,000 |
Purchases from related party | 0 | 0 | 0 |
Accounts receivable, related parties | 3,231,000 | 3,861,000 | |
Accounts payable, related parties | 1,351,000 | 322,000 | |
Related Party | Corporate Joint Venture | |||
Related Party Transaction | |||
Accounts receivable, related parties | 3,164,000 | 2,636,000 | |
Accounts payable, related parties | 0 | 0 | |
Related Party | INEOS Capital Partners | |||
Related Party Transaction | |||
Sales | 3,395,000 | 10,880,000 | 3,923,000 |
Related Party | Operating Lease Rental Payments | Corporate Joint Venture | |||
Related Party Transaction | |||
Sales | 310,000 | 310,000 | 310,000 |
Related Party | Sales from Partnership to Company | |||
Related Party Transaction | |||
Purchases from related party | 236,000 | 0 | 0 |
Related Party | Manufacturing Costs | Corporate Joint Venture | |||
Related Party Transaction | |||
Sales | 20,594,000 | 23,699,000 | 21,778,000 |
Related Party | Services | Corporate Joint Venture | |||
Related Party Transaction | |||
Sales | 14,758,000 | 13,908,000 | 11,406,000 |
Related Party | Product Demonstration Costs | Corporate Joint Venture | |||
Related Party Transaction | |||
Sales | $ 1,819,000 | $ 1,621,000 | $ 924,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid during the year for: | |||
Income taxes, net of refunds | $ 22,437 | $ 25,556 | $ 11,843 |
Interest | 42,081 | 35,370 | 59,040 |
Non-cash investing activity: | |||
Capital expenditures acquired on account but unpaid as of the year end | 3,427 | 4,653 | 6,116 |
Non-cash investing activity: | |||
Excise taxes payable | $ 638 | $ 0 | 0 |
Proceeds from hedge, investing activities | $ 2,307 |
Schedule I - Condensed Statemen
Schedule I - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions | |||
Stock compensation | $ 16,031 | $ 20,632 | $ 31,838 |
Net income (loss) attributable to Ecovyst Inc. | 71,154 | 73,697 | (139,949) |
Other comprehensive income (loss), net of tax: | |||
Comprehensive income attributable to PQ Group Holdings Inc. | 64,204 | 85,481 | (129,753) |
Parent Company | |||
Condensed Financial Statements, Captions | |||
Stock compensation | 16,031 | 20,632 | 39,523 |
Equity in net (income) loss from subsidiaries | (87,185) | (94,329) | 100,426 |
Net income (loss) attributable to Ecovyst Inc. | 71,154 | 73,697 | (139,949) |
Other comprehensive income (loss), net of tax: | |||
Pension and postretirement benefits | 1,120 | (2,676) | 9,530 |
Net gain (loss) from hedging activities | (12,126) | 24,382 | 2,914 |
Foreign currency translation | 4,056 | (9,922) | (2,248) |
Total other comprehensive income (loss) | (6,950) | 11,784 | 10,196 |
Comprehensive income attributable to PQ Group Holdings Inc. | $ 64,204 | $ 85,481 | $ (129,753) |
Schedule I - Condensed Balance
Schedule I - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Total assets | $ 1,837,751 | $ 1,884,553 |
LIABILITIES | ||
Total liabilities | 1,132,287 | 1,177,324 |
STOCKHOLDERS' EQUITY | ||
Common stock | 1,407 | 1,396 |
Preferred stock | 0 | 0 |
Additional paid-in capital | 1,102,581 | 1,091,475 |
Accumulated deficit | (170,856) | (242,010) |
Treasury stock, value | (226,710) | (149,624) |
Accumulated other comprehensive (loss) income | (958) | 5,992 |
Total PQ Group Holdings Inc. equity | 705,464 | 707,229 |
Total liabilities and equity | 1,837,751 | 1,884,553 |
Parent Company | ||
ASSETS | ||
Investment in subsidiaries | 705,464 | 707,229 |
Total assets | 705,464 | 707,229 |
LIABILITIES | ||
Total liabilities | 0 | 0 |
STOCKHOLDERS' EQUITY | ||
Common stock | 1,407 | 1,396 |
Preferred stock | 0 | 0 |
Additional paid-in capital | 1,102,581 | 1,091,475 |
Accumulated deficit | (170,856) | (242,010) |
Treasury stock, value | (226,710) | (149,624) |
Accumulated other comprehensive (loss) income | (958) | 5,992 |
Total PQ Group Holdings Inc. equity | 705,464 | 707,229 |
Total liabilities and equity | $ 705,464 | $ 707,229 |
Schedule I - Condensed Balanc_2
Schedule I - Condensed Balance Sheet Shares Data (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Stockholders' Equity Attributable to Parent | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (shares) | 140,744,045 | 139,571,272 |
Common stock, shares outstanding (shares) | 116,116,895 | 122,186,238 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Treasury stock (shares) | 24,627,150 | 17,385,034 |
Parent Company | ||
Stockholders' Equity Attributable to Parent | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (shares) | 140,744,045 | 139,571,272 |
Common stock, shares outstanding (shares) | 116,116,895 | 122,186,238 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Treasury stock (shares) | 24,627,150 | 17,385,034 |
Schedule I - Condensed Statem_2
Schedule I - Condensed Statement of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 71,154 | $ 73,697 | $ (139,949) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock compensation | 16,031 | 20,632 | 31,838 |
Net cash provided by operating activities | 137,597 | 186,606 | 129,918 |
Dividends received from affiliated companies | 28,000 | 35,000 | 35,000 |
Cash flows from investing activities: | |||
Net cash (used in) provided by investing activities | (65,335) | (63,021) | 835,732 |
Cash flows from financing activities: | |||
Net cash used in financing activities | (93,498) | (148,186) | (964,233) |
Net change in cash and cash equivalents | (22,555) | (29,969) | 3,670 |
Cash and cash equivalents at beginning of period | 110,920 | ||
Cash and cash equivalents at end of period of continuing operations | 88,365 | 110,920 | |
Parent Company | |||
Cash flows from operating activities: | |||
Net income (loss) | 71,154 | 73,697 | (139,949) |
Equity in net income from subsidiaries | (87,185) | (94,329) | 100,426 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock compensation | 16,031 | 20,632 | 39,523 |
Net cash provided by operating activities | 0 | 0 | 0 |
Dividends received from affiliated companies | 0 | 0 | 435,593 |
Cash flows from investing activities: | |||
Net cash (used in) provided by investing activities | 0 | 0 | 435,593 |
Cash flows from financing activities: | |||
Dividends paid to stockholders | 0 | 0 | (435,593) |
Net cash used in financing activities | 0 | 0 | (435,593) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | |
Cash and cash equivalents at end of period of continuing operations | $ 0 | $ 0 | $ 0 |
Schedule I - Narrative (Details
Schedule I - Narrative (Details) - $ / shares | 12 Months Ended | |||
Aug. 23, 2021 | Aug. 04, 2021 | Dec. 14, 2020 | Dec. 31, 2021 | |
Condensed Financial Statements, Captions | ||||
Dividends paid on common stock (in dollars per share) | $ 3.20 | $ 3.20 | $ 1.80 | $ 3.20 |
Parent Company | ||||
Condensed Financial Statements, Captions | ||||
Dividends paid on common stock (in dollars per share) | $ 3.20 |