Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 13, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-38348 | ||
Entity Registrant Name | RANPAK HOLDINGS CORP. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-1377160 | ||
Entity Address, Address Line One | 7990 Auburn Road | ||
Entity Address, City or Town | Concord Township | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44077 | ||
City Area Code | 440 | ||
Local Phone Number | 354-4445 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | ||
Trading Symbol | PACK | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001712463 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 322,517,100 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders, to be held on May 25, 2023, are incorporated by reference into Part II and Part III of this Form 10-K. | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Cleveland, Ohio | ||
Auditor Firm ID | 185 | ||
Class A Ordinary Shares, par value $0.0001 per share | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 79,468,609 | ||
Class C | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,921,099 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net revenue | $ 326.5 | $ 383.9 | $ 298.2 |
Cost of goods sold | 226.9 | 235 | 175.6 |
Gross profit | 99.6 | 148.9 | 122.6 |
Selling, general and administrative expenses | 105.5 | 98.3 | 72.5 |
Transaction costs | 0 | 0 | 2.2 |
Depreciation and amortization expense | 32.1 | 35 | 31.5 |
Other operating expense, net | 4.5 | 3.4 | 4.7 |
Income (loss) from operations | (42.5) | 12.2 | 11.7 |
Interest expense | 20.7 | 22.4 | 30.2 |
Foreign currency gain | (2.2) | (5.3) | 6.1 |
Other non-operating income, net | (4.3) | 0 | 0 |
Loss before income tax benefit | (56.7) | (4.9) | (24.6) |
Income tax benefit | (15.3) | (2.1) | (1.2) |
Net loss | $ (41.4) | $ (2.8) | $ (23.4) |
Earnings Per Share [Abstract] | |||
Basic | $ (0.51) | $ (0.04) | $ (0.32) |
Diluted | $ (0.51) | $ (0.04) | $ (0.32) |
Weighted average number of shares outstanding - Class A and C | |||
Basic | 81,877,334 | 78,542,734 | 72,434,802 |
Diluted | 81,877,334 | 78,542,734 | 72,434,802 |
Other comprehensive income (loss), before tax | |||
Foreign currency translation adjustments | $ (10.5) | $ (15.4) | $ 16.2 |
Interest rate swap adjustments | 14.1 | 7.3 | (11.3) |
Cross-currency swap adjustments | 3.3 | 2.3 | |
Total other comprehensive income (loss), before tax | 6.9 | (5.8) | 4.9 |
Provision (benefit) for income taxes related to other comprehensive income (loss) | 4.3 | 2.3 | (2.4) |
Total other comprehensive income (loss), net of tax | 2.6 | (8.1) | 7.3 |
Comprehensive loss, net of tax | (38.8) | (10.9) | (16.1) |
Class A | |||
Net loss | $ (39.9) | $ (2.7) | $ (21.3) |
Earnings Per Share [Abstract] | |||
Basic | $ (0.51) | $ (0.04) | $ (0.32) |
Diluted | $ (0.51) | $ (0.04) | $ (0.32) |
Weighted average number of shares outstanding - Class A and C | |||
Basic | 78,956,235 | 74,764,709 | 65,923,509 |
Diluted | 78,956,235 | 74,764,709 | 65,923,509 |
Class C | |||
Net loss | $ (1.5) | $ (0.1) | $ (2.1) |
Earnings Per Share [Abstract] | |||
Basic | $ (0.51) | $ (0.03) | $ (0.32) |
Diluted | $ (0.51) | $ (0.03) | $ (0.32) |
Weighted average number of shares outstanding - Class A and C | |||
Basic | 2,921,099 | 3,778,025 | 6,511,293 |
Diluted | 2,921,099 | 3,778,025 | 6,511,293 |
Paper revenue | |||
Revenue | $ 261.3 | $ 321.4 | $ 250.7 |
Other revenue | |||
Revenue | 15.1 | 14.8 | 7.9 |
Machine Lease | |||
Revenue | $ 50.1 | $ 47.7 | $ 39.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 62.8 | $ 103.9 |
Accounts receivable, net | 33 | 43.7 |
Inventories, net | 25 | 32.9 |
Income tax receivable | 2.1 | 2.7 |
Prepaid expenses and other current assets | 16.7 | 8.3 |
Total current assets | 139.6 | 191.5 |
Property, plant and equipment, net | 124 | 126.3 |
Operating lease right-of-use assets, net | 6 | 6.6 |
Goodwill | 446.7 | 453 |
Intangible assets, net | 372.1 | 406.5 |
Deferred tax assets | 0.6 | 0.1 |
Other assets | 44.5 | 29.4 |
Total assets | 1,133.5 | 1,213.4 |
Current liabilities | ||
Accounts payable | 24.3 | 33.5 |
Accrued liabilities and other | 10.6 | 31.5 |
Current portion of long-term debt | 1.3 | 1 |
Operating lease liabilities, current | 2 | 2.4 |
Deferred machine fee revenue | 0.9 | 3.1 |
Total current liabilities | 39.1 | 71.5 |
Long-term debt | 391.7 | 400.4 |
Deferred tax liabilities | 80.8 | 97.7 |
Derivative instruments | 3.7 | 2.4 |
Operating lease liabilities, non-current | 4 | 4.3 |
Other liabilities | 1.4 | 0.9 |
Total liabilities | 520.7 | 577.2 |
Commitments and contingencies - Note 19 | ||
Shareholders' equity | ||
Additional paid-in capital | 704.3 | 688.9 |
Accumulated deficit | (96.7) | (55.3) |
Accumulated other comprehensive income | 5.2 | 2.6 |
Total shareholders' equity | 612.8 | 636.2 |
Total liabilities and shareholders' equity | 1,133.5 | 1,213.4 |
Class A | ||
Shareholders' equity | ||
Common stock | 0 | 0 |
Convertible Class C Common Stock | ||
Shareholders' equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Common stock, shares authorized (shares) | 426,000,000 | |
Class A | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 79,086,372 | 78,482,024 |
Common stock, shares outstanding (shares) | 79,086,372 | 78,482,024 |
Convertible Class C Common Stock | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 2,921,099 | 2,921,099 |
Common stock, shares outstanding (shares) | 2,921,099 | 2,921,099 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Additional Paid-In Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Class A | Class C |
Beginning Balance at Dec. 31, 2019 | $ 531.8 | $ 557.5 | $ (29.1) | $ 3.4 | ||
Beginning Balance (Shares) at Dec. 31, 2019 | 64,293,741 | 6,511,293 | ||||
Warrant exchange (Shares) | 4,422,564 | |||||
Stock-based awards vested and distributed (shares) | 202,723 | |||||
Issue Director shares (shares) | 86,031 | |||||
Amortization of restricted stock units | 7.2 | 7.2 | ||||
Net loss | (23.4) | (23.4) | $ (21.3) | $ (2.1) | ||
Other comprehensive income (loss) | 7.3 | 7.3 | ||||
Ending Balance at Dec. 31, 2020 | 522.9 | 564.7 | (52.5) | 10.7 | ||
Ending Balance (shares) at Dec. 31, 2020 | 69,005,059 | 6,511,293 | ||||
May 2021 Equity Offering | 103.4 | 103.4 | ||||
May 2021 Equity Offering (shares) | 5,250,000 | |||||
Stock-based awards vested and distributed | (1.7) | (1.7) | ||||
Stock-based awards vested and distributed (shares) | 541,433 | |||||
Shareholder conversion of class C to class A (Shares) | 3,590,194 | (3,590,194) | ||||
Issue Director shares (shares) | 95,338 | |||||
Amortization of restricted stock units | 22.5 | 22.5 | ||||
Net loss | (2.8) | (2.8) | $ (2.7) | $ (0.1) | ||
Other comprehensive income (loss) | (8.1) | (8.1) | ||||
Ending Balance at Dec. 31, 2021 | 636.2 | 688.9 | (55.3) | 2.6 | ||
Ending Balance (shares) at Dec. 31, 2021 | 78,482,024 | 2,921,099 | ||||
Stock-based awards vested and distributed | (2.9) | (2.9) | ||||
Stock-based awards vested and distributed (shares) | 533,572 | |||||
Issue Director shares (shares) | 70,776 | |||||
Amortization of restricted stock units | 18.3 | 18.3 | ||||
Net loss | (41.4) | (41.4) | $ (39.9) | $ (1.5) | ||
Other comprehensive income (loss) | 2.6 | 2.6 | ||||
Ending Balance at Dec. 31, 2022 | $ 612.8 | $ (704.3) | $ (96.7) | $ 5.2 | ||
Ending Balance (shares) at Dec. 31, 2022 | 79,086,372 | 2,921,099 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net loss | $ (41.4) | $ (2.8) | $ (23.4) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 69 | 73.6 | 62.7 |
Amortization of deferred financing costs | 1.5 | 1.9 | 1.6 |
Loss on disposal of fixed assets | 1.1 | 1.8 | 2.7 |
Deferred income taxes | (19.7) | (12.8) | (5.4) |
Amortization of initial value of interest rate swap | (0.8) | (0.8) | (1.7) |
Currency gain on foreign denominated debt and notes payable | (2.2) | (5.5) | 6 |
Amortization of restricted stock units | 18.3 | 22.5 | 7.2 |
Amortization of cloud-based software implementation costs | 2.8 | 0 | 0 |
Unrealized gain on investments in small private businesses | (3.9) | 0 | |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables, net | 9.1 | (6.9) | 0.9 |
(Increase) decrease in inventory | 7.6 | (17.2) | (4.6) |
(Increase) decrease in prepaid expenses and other assets | (1.6) | (0.5) | (0.9) |
Increase (decrease) in accounts payable | (12.4) | 5.7 | 10.3 |
Increase (decrease) in accrued liabilities | (14.4) | 6.9 | 11.1 |
Change in other assets and liabilities | (11.9) | (11.6) | (2.7) |
Net cash provided by operating activities | 1.1 | 54.3 | 63.8 |
Capital expenditures: | |||
Converter equipment | (31.6) | (42.3) | (25.8) |
Other capital expenditures | (13.2) | (12.2) | (6.5) |
Total capital expenditures | (44.8) | (54.5) | (32.3) |
Cash paid for acquisitions and investments in small private businesses | (2.1) | (14.1) | |
Assets acquired | 0 | (1.3) | |
Cash inflow from settlement of net investment hedges | 10 | ||
Patent and trademark expenditures | (1) | (1.2) | (0.9) |
Net cash used in investing activities | (37.9) | (69.8) | (34.5) |
Cash Flows from Financing Activities | |||
Proceeds from equity offerings, gross | 0 | 104 | 0 |
Prepayments on term loan | 0 | (20.9) | 0 |
Transaction costs of equity offerings | (0.6) | ||
Principal payments on term loans | (1.1) | (1.6) | (1.6) |
Payments on finance lease liabilities | (0.9) | (0.7) | |
Exit payment | 0 | (8.2) | 0 |
Tax payments for withholdings on stock-based awards distributed | (2.5) | 0 | |
Net cash provided by (used in) financing activities | (4.5) | 72 | (1.6) |
Effect of Exchange Rate Changes on Cash | 0.2 | (1.1) | 1.1 |
Net Increase (Decrease) in Cash and Cash Equivalents | (41.1) | 55.4 | 28.8 |
Cash and Cash Equivalents, beginning of period | 103.9 | 48.5 | 19.7 |
Cash and Cash Equivalents, end of period | $ 62.8 | $ 103.9 | $ 48.5 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 — Nature of Operations We are a leading provider of environmentally sustainable, systems-based, product protection solutions and end-of-line automation solutions for e-commerce and industrial supply chains. Through our proprietary PPS systems and paper consumables, we offer a full suite of protective packaging solutions. Our business is global, with a strong presence in the United States and Europe. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 — Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation — The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and with instructions to Form 10-K and Rule 10-01 of the SEC Regulation S-X as they apply to annual financial information. Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries prepared in conformity with U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation and certain immaterial prior year amounts have been reclassified consistent with current year presentation. All amounts are in millions, except share and per share amounts and are approximate due to rounding. Use of Estimates — The preparation of consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, among other items, assessing the collectability of receivables, asset retirement obligations, the use and recoverability of inventory, the estimation of fair value of financial instruments, the estimation of fair value of acquired assets and liabilities in a business combination and related purchase price allocation, assumptions used in the calculation of income taxes, useful lives and recoverability of tangible assets and goodwill and other intangible assets, costs for incentive compensation and accruals for commitments and contingencies. We review these estimates and assumptions periodically using historical experience and other factors and reflect the effects of any revisions in the consolidated financial statements in the period we determine any revisions to be necessary. Actual results could differ from these estimates and such differences could be material. Revenue Recognition — Revenue from contracts with customers is recognized under ASC 606 using a five-step model consisting of the following: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. Performance obligations are satisfied when we transfer control of a good or service to a customer, which can occur over time or at a point in time. The amount of revenue recognized is based on the consideration to which we expect to be entitled in exchange for those goods or services, including the expected value of variable consideration. The customer’s ability and intent to pay the transaction price is assessed in determining whether a contract exists with the customer. If collectability of substantially all of the consideration in a contract is not probable, consideration received is not recognized as revenue unless the consideration is nonrefundable and we no longer have an obligation to transfer additional goods or services to the customer or collectability becomes probable. We sell our products to end-users primarily through an established distributor network and direct sales to select end-users. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net revenue on the Consolidated Statements of Operations. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments impact the amount of net revenue recognized by us in the period of adjustment. Charges for rebates and other allowances were approximately 10.0 %, 7.4 %, and 10.9 % of revenue in 2022, 2021, and 2020 respectively. Refer to Note 8, “ Revenue Recognition, Contracts with Customers ,” for further discussion of revenue. We recognize incremental costs to obtain a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. For example, we generally expense sales commissions when incurred because the contract term is less than one year. These costs are recorded within SG&A expenses. Shipping and Handling Costs — Costs incurred for the transfer and delivery of goods to customers are recorded as a component of cost of goods sold. Shipping and handling costs totaled $ 5.7 million, $ 8.3 million, and $ 4.8 million in 2022, 2021, and 2020 respectively. Advertising Costs — Advertising cost includes cost associated with trade shows. We expense advertising costs as incurred within SG&A expense. Advertising cost totaled $ 1.1 million, $ 0.9 million, and $ 0.7 million in 2022, 2021, and 2020 respectively. R&D Costs — Typically, we expense R&D costs as incurred, however, we may capitalize into other assets certain R&D costs that are associated with R&D activities that lead to constructed assets with alternative future uses. Capitalized costs are then amortized into R&D expense. R&D expense and amortization of capitalized R&D assets are included within other operating expense, net and collectively totaled $ 3.6 million, $ 1.7 million, and $ 2.3 million in 2022, 2021, and 2020 respectively. Cash and Cash Equivalents — Cash and cash equivalents include securities with original maturities of three months or less and cash in banks. In June 2021, we invested $ 70.0 million in a money market fund, which is classified as a cash equivalent because of its short-term, highly liquid nature that is readily convertible to cash. Unrealized gains or losses are included in other non-operating expense, net. Unrealized gains were $ 0.5 million in 2022 and were immaterial in 2021. The balance was approximately $ 30.5 million and $ 70.0 million at December 31, 2022 and 2021, respectively. The fair value of money market funds is considered Level 1 in the fair value hierarchy because they are securities traded in active markets. Refer to Note 14, “ Fair Value Measurement ” for further detail. In May 2021, we completed a public offering of 4.5 million shares of Class A common stock. Additionally, the underwriters completed the exercise of an allotment option to sell an additional 0.8 million shares (the public offering and the allotment option collectively referred to as the “May 2021 Equity Offering”). Cash proceeds received in the May 2021 Equity Offering, net of underwriting fees, commissions, and transaction expenses, were $ 103.4 million. We used some of the proceeds to invest in a money market fund to generate short-term cash returns. Additionally, we prepaid $ 20.9 million of principal on the First Lien Dollar Term Facility in the June 2021 Prepayment. Refer to Note 11, “ Long-Term Debt ” for further detail. Accounts Receivable — We provide credit in the normal course of business to our customers and do not require collateral. Trade receivables, less allowance for doubtful accounts, reflect the net realizable value of receivables and approximate fair value. We maintain an allowance against accounts receivable for the estimated probable losses on uncollectible accounts and sales returns and allowances. The valuation reserve is based upon geographic historical loss experience, current economic conditions within the industries we serve as well as determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt, or, if later, as proscribed by statutory regulations. Inventories — Inventories consist of unprocessed and finished paper, as well as materials to produce automation machines. Inventories are stated at the lower of cost or net realizable value. Cost for all inventories is determined using a weighted average cost method applied on a consistent basis. An allowance for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, estimates of future sales expectations and salvage value. Refer to Note 4 “ Inventories, net” for further detail. Property, Plant, and Equipment — Property, plant, and equipment, including amounts under finance lease, are stated at cost less accumulated depreciation. Renewals and betterments that substantially extend the useful life of an asset are capitalized and depreciated. Leasehold improvements are depreciated over the lesser of the useful life of the asset or the applicable lease term. Depreciation and amortization are computed using the straight-line method over the estimated useful lives as follows: Estimated Useful Lives Buildings and improvements 2 – 20 years Machinery and equipment 2 – 10 years Converting machines 2 – 5 years Computer and office equipment 2 – 10 years We consider converting machines that are returned for reconditioning to be only temporarily idled for a short period of time before they are returned to productive use, where we will continue to receive the ongoing benefit of the asset. Therefore, depreciation on these converting machines is not paused or ceased. When a converting machine undergoes a significant reconditioning, the useful life is evaluated and extended based on management’s judgement. Refer to Note 5 “ Property, Plant, and Equipment, net” for further detail. Capitalized Cloud-Based Software Implementation Costs — We are engaged with third party software service providers for cloud computing hosting arrangements for various functions across our business, including our ERP system, human resources information system, and customer relationship management system. In these arrangements, we do not take possession of the software, rather the software resides on the service providers’ hardware and we access it remotely. Costs associated with implementation of cloud-based software are capitalized into other assets, then amortized over seven years into SG&A expenses. The net balance of capitalized cloud-based software implementation costs was $ 18.3 million at December 31, 2022. Amortization expense of capitalized cloud-based software implementation costs was $ 2.8 million in 2022. Amounts in 2021 and 2020 were no t material. Goodwill and Identifiable Intangible Assets, net — Goodwill represents the excess of the total purchase consideration over the fair value of the underlying net assets, largely arising from the assembled workforce, new customers and the replacement of customer and technology attrition. Goodwill is not subject to amortization but is tested for impairment annually as of October 1 st , through a qualitative or quantitative assessment and when events and circumstances indicate that the estimated fair value of a reporting unit may no longer exceed its carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Identifiable intangible assets consist primarily of patents, customer/distributor relationships, trademarks, and other intellectual property. We amortize definite lived identifiable assets over the shorter of their stated or statutory duration or their estimated useful lives, generally ranging from 10 to 15 years, on a straight-line basis and periodically review them for impairment. Trademarks are accounted for as indefinite-lived intangible assets and, accordingly, are not subject to amortization. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. See Note 9, “ Goodwill, Long-Lived and Intangible Assets, net ” and Note 5, “ Property, Plant, and Equipment, net ” for further details. Impairment of Long-Lived Assets — We review our long-lived assets, including definite-lived intangible assets and property, plant, and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. For long-lived assets, an impairment loss is indicated when the undiscounted future cash flows estimated to be generated by the asset group are not sufficient to recover the carrying value of the asset group. If indicators exist, the loss is measured as the excess of carrying value over the asset group’s fair value, as determined based on discounted future cash flows, asset appraisals or market values of similar assets. See Note 9, “ Goodwill, Long-Lived and Intangible Assets, net ” and Note 5, “ Property, Plant, and Equipment, net ” for further details. Derivative Financial Instruments — We use derivatives as part of the normal business operations to manage our exposure to fluctuations in interest rates associated with variable interest rate debt and adverse fluctuations in foreign currency exchange rates and to decrease the volatility of cash flows affected by these fluctuations. We have established policies and procedures that govern the risk management of these exposures. We use interest rate swap contracts to manage interest rate exposures. Derivatives are recorded in the Consolidated Balance Sheets at fair value in accrued liabilities and other and derivative instruments. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss), and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, the change in fair value of the derivative is recognized directly in earnings. The changes in the fair values of derivatives not designated as hedges are recognized directly in earnings, as a component of interest expense. Prior to September 25, 2019, we did not apply hedge accounting to our outstanding interest rate swap, and changes in fair value were recorded directly to interest expense. We hedge some of our exposure to foreign currency translation with a cross-currency swap, designated as a net investment hedge. A cross-currency swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. The change in fair value of the cross-currency swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the cross-currency swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the cross-currency swap to its maturity. See Note 12, “ Derivative Instruments ,” for further details. Foreign Currency — The nature of business activities involves the management of various financial and market risks, including those related to changes in foreign currency exchange rates. The functional currency of our operating subsidiaries outside the U.S. is the applicable local currency. For those operations, assets and liabilities are translated at period-end exchange rates into Euros, then into USD. Revenues and expenses are translated using average monthly exchange rates into Euros, then into USD. Commitments, Contingencies, and Litigation — On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of these actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of these matters and whether a reasonable estimation of the probable loss, if any, can be made. In assessing probable losses, we make estimates of the amount of insurance recoveries, if any. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that disputed matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. We expense legal costs as incurred. Stock-Based Compensation — The Ranpak Holdings Corp. 2019 Omnibus Incentive Plan (the “2019 Plan”) rewards employees and other individuals to perform at their highest level and contribute significantly to the success of the Company. The 2019 Plan is an omnibus plan that may provide these incentives through grants of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU” or “RSUs”), performance awards, other cash-based awards and other stock-based awards to employees, directors, or consultants of the Company. At the annual meeting in May 2021, shareholders approved an amendment to the 2019 Plan (the “Amended Plan” ) that authorized an additional 9.0 million shares for issuance for future awards. We record stock-based compensation awards exchanged for employee services at fair value on the date of grant and record the expense for these awards in cost of sales and in SG&A expenses, as applicable, on our Consolidated Statements of Operations over the requisite employee service period. Stock-based compensation expense includes actual forfeitures incurred. For performance-based awards, we reassess at each reporting date whether achievement of the performance condition is probable and accrue compensation expense if and when achievement of the performance condition is probable. See Note 20, “ Stock-Based Compensation ” for further information on the 2019 Plan, the Amended Plan, and stock-based compensation expense. Employee Benefit Plans — Our U.S. employees participate in a defined contribution plan and health and life insurance plans sponsored by the Company. A subsidiary, Ranpak B.V., participates in a multiemployer benefit plan – Corporate Pension Fund for Cardboard and Flexible Packaging Business (the “B.V. Plan”) – in the Netherlands, which provides retirement benefits to all Ranpak B.V. employees. As a participant in the multi-employer benefit plan, we recognize expense in each period for the required contributions to the multi-employer benefit plans. See Note 15, “ Employee Benefit Plans ” for further information about our benefit plans. Income Taxes — We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we will be able to realize our deferred tax assets in the future in excess of their net recorded amount, we will make an adjustment to the deferred tax asset valuation allowance, which will reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (i) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more-likely than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. See Note 16, “ Income Taxes ” for further detail. Leases — We lease automobiles, machinery, equipment, and warehouse and office buildings. We account for these leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities. The right-of-use asset represents our right to use underlying assets for the lease term and the lease liability represents our obligation to make lease payments under the leases. We determine if an arrangement is or contains a lease at contract inception and exercise judgment and apply certain assumptions when determining the discount rate, lease term, and lease payments. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, we do not have knowledge of the rate implicit in the lease and, therefore, we use the incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that we are reasonably certain to exercise. For lease agreements that include lease and non-lease components, we combine lease and non-lease components for all classes of assets. Additionally, we elected to not record on the balance sheet leases with a term of twelve months or less. Refer to Note 17, “ Leases ” for further detail. Additionally, our revenue associated with our PPS business contains (i) a non-lease component (the paper consumables) accounted for as revenue under ASC 606 and (ii) a lease component (our PPS systems) accounted for as machine lease revenue under ASC 842. Machine lease revenue is recognized on a straight-line basis over the terms of the PPS systems agreements with customers, which have durations of less than one year. Comprehensive Income (Loss) — Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss) amounts attributable to foreign currency translation adjustments and the effect of our interest rate swap agreements and cross-currency swap agreement, net of tax, as applicable. Net Earnings (Loss) per Share — Basic earnings per common share is calculated by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the period. The two-class method is an earnings allocation formula that calculates basic and diluted net earnings per common share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. When calculating diluted net earnings per common share, the more dilutive effect of applying either of the following is presented: (a) the two-class method (described above) assuming that the participating security is not exercised or converted, or, (b) the treasury stock method for the participating security. Currently, we do not pay dividends or have any undistributed earnings, therefore, the calculation of diluted earnings per share is the same for either method. See Note 22, “ Earnings (Loss) per Share ” for further details. Emerging Growth Company — Section 102(b)(1) of the JOBS Act exempts an EGC from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act of 1933, as amended, registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. Previously, we elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an EGC, were allowed to adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company that is not an EGC or that is an EGC which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. We ceased to be an EGC on December 31, 2021 . Investments in Small Private Businesses — In the third quarter of 2021, we paid consideration of $ 9.2 million in exchange for minority ownership interests in Pickle and Creapaper. We do not have power to direct the activities of these businesses and do not have significant economic exposure related to these investments. These investments do not require consolidation in our consolidated financial statements. In the third quarter of 2022, we invested an additional $ 2.1 million in Pickle. Further, we adjusted the carrying value of our initial investment in Pickle due to an observable price change for a similar or identical investment, a Level 2 fair value measurement. This resulted in an unrealized gain of $ 3.9 million, which is recorded in other non-operating expense (income), net in the Consolidated Financial Statements. The adjusted value of our investment in Pickle, both individually and collectively with Creapaper, continues to be immaterial to our consolidated financial statements. Supplemental Cash Flow Information and Non-Cash Investing Activities — Supplemental cash flow information is as follows: Year Ended December 31, 2022 2021 2020 Supplemental cash flow information Interest paid $ 20.5 $ 21.7 $ 22.5 Income taxes paid 2.7 8.4 3.7 Non-cash increase in asset retirement obligation $ - $ - $ 0.7 Non-cash investing activities Right-of-use assets obtained in exchange for lease liabilities $ 2.4 $ 11.4 $ - Equipment purchased under capital leases (ASC 840) - - 0.3 Capital expenditures in accounts payable $ 0.1 $ - $ 2.4 Recently Adopted Accounting Standards — We have adopted all applicable accounting standards and did not adopt any new accounting standards by the FASB in 2022. Recently Issued Accounting Standards — In December 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”), which gives optional guidance to provide relief for reference rate reform, where certain transactions have transitioned or are transitioning away from the London Interbank Offered Rate (“LIBOR”) to other reference rates. Certain tenors of USD LIBOR are transferring from LIBOR by June 30, 2023, including one-month and three-month USD LIBOR, on which our existing indebtedness and interest rate swap agreements are based. ASU 2022-06 defers the sunset date of ASC Topic 848, Reference Rate Reform (“ASC 848”) from December 31, 2022 to December 31, 2024 to ensure the relief in ASC 848 covers the period of time during which a significant number of modifications may take place. We are evaluating the effects of ASC 848 on the First Lien Term Dollar Facility and our interest rate swap agreements, as well as the impact on our financial statements and disclosures. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, net | Note 3 — Accounts Receivable, net — The components of accounts receivable, net were as follows: December 31, 2022 December 31, 2021 Accounts receivable $ 33.7 $ 44.7 Allowance for doubtful accounts ( 0.7 ) ( 1.0 ) Accounts receivable, net $ 33.0 $ 43.7 At December 31, 2022 and 2021 , no customer’s accounts receivable balances exceeded 10.0 % of our accounts receivable balance. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 4 — Inventories, net — The components of inventories, net were as follows: December 31, 2022 December 31, 2021 Raw materials $ 12.4 $ 19.5 Work-in-process 5.7 1.2 Finished goods 7.2 12.5 Total inventories 25.3 33.2 Reserve for obsolescence ( 0.3 ) ( 0.3 ) Inventories, net $ 25.0 $ 32.9 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 5 — Property, Plant and Equipment, net — The components of property, plant and equipment, net were as follows: December 31, 2022 December 31, 2021 Land $ 4.0 $ 4.1 Buildings and improvements 13.3 9.2 Machinery and equipment 34.0 22.3 Computer and office equipment 11.5 12.7 Converting machines 182.8 164.1 Total property, plant, and equipment 245.6 212.4 Accumulated depreciation ( 121.6 ) ( 86.1 ) Property, plant, and equipment, net $ 124.0 $ 126.3 We did not capitalize any interest in the period presented. Refer to Note 17, “ Leases ” for further detail on finance leases and their relation to property, plant, and equipment under ASC 842. We are required to evaluate the recoverability of the carrying amount of our long-lived asset groups whenever events or changes in circumstances indicate the carrying amount of our asset groups may not be recoverable. As previously noted, we conducted testing and analysis of our asset groups in the 2022 Interim Tests. The evaluation of our asset groups used unobservable inputs that required significant judgement and were performed using an undiscounted cash flow analysis where the undiscounted cash flows expected to be generated from the use and eventual disposition of the asset groups were compared to the carrying value of the asset groups. Upon completion of these tests, we concluded that the carrying values of our asset groups were recoverable and not impaired. Depreciation expense recorded in cost of goods sold and depreciation and amortization expense in the Consolidated Statements of Operations was as follows: Year Ended December 31, Depreciation expense included in 2022 2021 2020 Cost of goods sold $ 36.8 $ 38.6 $ 31.1 Depreciation and amortization expense 3.4 5.5 2.9 Total depreciation expense $ 40.2 $ 44.1 $ 34.0 |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other | Note 6 – Accrued Liabilities and Other — The components of accrued liabilities and other were as follows: December 31, 2022 December 31, 2021 Employee compensation $ 2.1 $ 1.5 Taxes 3.4 6.9 Professional fees 0.8 4.6 Bonus 0.7 10.1 Interest 1.9 1.7 Interest rate swap liability, current portion - 3.8 Other 1.7 2.9 Accrued liabilities and other $ 10.6 $ 31.5 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Note 7 — Segment and Geographic Information In accordance with ASC 280, Segment Reporting (“ASC 280”), we determined we have two operating segments which are aggregated into one reportable segment, Ranpak. The chief operating decision maker assesses the Company’s performance and allocates resources based on the Company’s consolidated financial information. The aggregation of the two operating segments is based on the Company’s determination that, per ASC 280, the operating segments have similar economic characteristics, and are similar in all of the following areas: the nature of products and services, the nature of production processes, the type or class of customer for their products or services, and the methods used to distribute their products or provide their services. In addition, the operating segments were aggregated for purposes of determining whether segments meet the quantitative threshold for separate reporting . We attribute revenue and gross profit to individual countries based on the selling location. Our products are primarily sold from North America and Europe. As previously noted, segment gross profit includes certain depreciation and amortization expenses that are included in cost of goods sold : Year Ended December 31, 2022 2021 2020 Revenue North America $ 134.7 $ 146.9 $ 127.4 Europe/Asia 191.8 237.0 170.8 Net revenue 326.5 383.9 298.2 Segment gross profit North America 41.8 53.9 50.7 Europe/Asia 57.8 95.0 71.9 Gross profit 99.6 148.9 122.6 Expenses excluded from segment gross profit Selling, general and administrative expenses 105.5 98.3 72.5 Transaction costs - - 2.2 Depreciation and amortization expense 32.1 35.0 31.5 Other operating expense, net 4.5 3.4 4.7 Interest expense 20.7 22.4 30.2 Foreign currency (gain) loss ( 2.2 ) ( 5.3 ) 6.1 Other non-operating income, net ( 4.3 ) - - Loss before income tax benefit $ ( 56.7 ) $ ( 4.9 ) $ ( 24.6 ) Our customers are not concentrated in any specific geographic region. During 2022, 2021, and 2020 , no customers exceeded 10 % of net revenue. The following table presents our long-lived assets by segment and geographic location: December 31, 2022 December 31, 2021 North America $ 65.4 $ 62.1 Europe/Asia 64.6 64.2 Total long-lived assets $ 130.0 $ 126.3 |
Revenue Recognition, Contracts
Revenue Recognition, Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Contracts with Customers | Note 8 — Revenue Recognition, Contracts with Customers Description of Revenue-Generating Activities . We employ sales, marketing and customer service personnel throughout the world who sell and market our products and services to and/or through a large number of distributors as well as directly to end-users. As discussed in Note 7, “ Segment and Geographic Information ,” we have two operating segments which are aggregated into one reportable segment, Ranpak. Identify Contract with the Customer . We sell paper consumables to two types of customers: distributor and direct. For both customer types, the customer is granted the right to use our machine(s) for which we charge an annual or quarterly fixed fee or may waive the fee at management’s discretion. For both arrangement types, (i.e. fixed fee and waived fee), we have determined that there is a multiple element arrangement which contains a lease component (the right to use the machine) and a non-lease component (the paper consumables). The remainder of our revenue is derived from sales of Automation products. In association to the sale of Automation products, we sell extended warranties, preventative maintenance services, spare parts and spare part packages, and consulting services. In paper consumables sales for both distributor agreements and direct agreements, we have determined the contract to be a combination of the master service agreement (“MSA”) and purchase order (“PO”). The MSA contains general terms and conditions which govern the agreement, including general payment terms. Individual PO’s must be placed underneath the terms of the MSA to order specific paper products which we promise to deliver. The PO contains relevant details of the contract including the type of paper, quantity, unit price, total price, as well as payment terms and estimated delivery date. Under the MSA, multiple PO’s for one customer may be placed at or near the same time. In situations where there are multiple PO’s issued at or near the same time to the same customer, we treat each PO in combination with the MSA as a separate contract for revenue recognition purposes. To provide automation solution goods and services, an agreement is documented and agreed to between Ranpak and the customer. This is in the form of a proposal contract for automation machines with separate proposals for related goods and services. Typically, machines have their own proposal, and other related goods and services such as preventative maintenance, and spare parts have a separate proposal with these goods and services all detailed. These written agreements outline the terms and conditions for respective transactions between us and our customers and represent contracts with enforceable rights. For each type of contract, there are various levels of termination provisions that each party has. We recognize revenue from each Automation product separately, on a contract by contract basis (i.e. by individual machine). We recognize revenue on maintenance contracts and spare parts separately from their Automation products. Each contract represents its own unit of accounting. Because Automation products are highly customized with no alternative use to another party and we have an enforceable right to payment for our costs if the customer breaches the contract, we recognize automation revenue over time. We use an input method, based on cost and effort incurred to recognize automation revenue. Performance Obligations. Our paper consumables, automation equipment, and maintenance services are determined to be distinct performance obligations. Free on loan and leased equipment is typically identified as a separate lease component in scope of ASC 842. Transaction Price and Variable Consideration . We have forms of variable consideration present in our contracts with customers, including rebates and other discounts. We estimate variable consideration using either the expected value method or the most likely amount method. We include in the transaction price some or all of an amount of variable consideration estimated to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. For all contracts that contain a form of variable consideration, we estimate at contract inception, and periodically throughout the term of the contract, what volume of goods and/or services the customer will purchase in a given period and determine how much consideration is payable to the customer or how much consideration we would be able to recover from the customer based on the structure of the type of variable consideration. In most cases the variable consideration in contracts with customers results in amounts payable to the customer by the Company. We adjust the contract transaction price based on any changes in estimates each reporting period and perform an inception to date cumulative adjustment to the amount of revenue previously recognized. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments of transaction price impact the amount of net revenue recognized by us in the period of adjustment. We do not adjust consideration in contracts with customers for the effects of a significant financing component if we expect that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of contracts. Sales, value-added, and other taxes collected from customers and remitted to governmental authorities are excluded from revenue. Allocation of Transaction Price . We determine the standalone selling price for a performance obligation sold on a standalone basis. We often offer rebates to customers in their contracts that are related to the amount of consumables purchased. We believe that this form of variable consideration should only be allocated to consumables because the entire amount of variable consideration relates to the customer’s purchase of and our efforts to provide consumables. Transfer of Control. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration expected to be received in exchange for those goods or services. Revenue for paper consumables is recognized based on shipping terms, which is the point in time the customer obtains control of the promised goods. Revenue for Automation equipment sales is recognized based on an input method of cost and effort incurred over time. Maintenance revenue is recognized straight-line on the basis that the level of effort is consistent over the term of the contract. Lease components within contracts with customers are recognized in accordance with ASC 842 on a straight-line basis over the terms of the PPS systems agreements with customers, which have durations of less than one year. We allocate the consideration received from customers between the paper consumables and the converting machine based on an estimate of the relative standalone selling price. This allocation is done for presentation purposes and does not represent a significant difference in timing of revenue recognition. The time between when a performance obligation is satisfied and when billing and payment occur is closely aligned and performance obligations do not extend beyond one year. The transfer of control of our products results in an unconditional right to receive consideration. Accordingly, we do no t have any material contract assets as of December 31, 2022 and 2021. Deferred revenue represents contractual amounts received from customers that exceed percentage of project completion that is in excess of costs incurred for automation equipment sales, as well as prepayments for machine fees that are amortized over the next quarter. Our enforceable contractual obligations have durations of less than one year and are included in current liabilities on the Consolidated Balance Sheets. During 2022 and 2021, substantially all of the beginning balance of deferred revenue was recognized into revenue. Beginning and ending balances of deferred revenue were as follows: Year Ended December 31, 2022 2021 Beginning balance $ 3.1 $ 1.4 Ending balance $ 0.9 $ 3.1 In addition to the disaggregation of revenue between paper, machine lease, and other revenue, we also disaggregate our revenue by segment geography to assist in evaluating the nature, timing, and uncertainty of revenue and cash flows that may be impacted by economic factors: Year Ended December 31, 2022 2021 2020 ASC 606 North America $ 111.0 $ 126.7 $ 110.9 Europe/Asia 165.4 209.5 147.7 Total paper and other revenue $ 276.4 $ 336.2 $ 258.6 ASC 842 Machine lease revenue $ 50.1 $ 47.7 $ 39.6 Net revenue $ 326.5 $ 383.9 $ 298.2 North America consists of the United States, Canada and Mexico, among others; Europe/Asia consists of European, Asian (including China), Pacific Rim, South American and African countries, among others. |
Goodwill, Long-Lived and Intang
Goodwill, Long-Lived and Intangible Assets, net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Long-Lived and Intangible Assets, net | Note 9 — Goodwill, Long-Lived and Intangible Assets, net Goodwill and Indefinite-Lived Intangible Assets Declining market conditions and the decline in our share price triggered the 2022 Interim Tests. The test for goodwill used unobservable inputs that required significant judgement and were performed using a combination of the Discounted Cash Flow Method and the Guideline Public Company Method in order to determine fair value. The test for indefinite-lived intangible assets also used unobservable inputs that required significant judgement and were performed using the Relief from Royalty Method in order to determine fair value. Upon completion of these tests, we concluded that each area was not impaired. However, the test for one of our goodwill reporting units that encompasses our business in Europe indicated that fair value of the reporting unit was close to approximating carrying value. We then conducted an analysis of market data inputs and risk considerations in the thirty days between the 2022 Interim Tests and the 2022 Annual Assessment and do not believe that market or risk considerations changed materially. Further, we had no substantial changes in our long-term projections between those used in the 2022 Interim Tests and the 2022 Annual Assessment. Therefore, we do not believe there were any material changes to the conclusions reached within the 2022 Interim Tests and such conclusions were also appropriate for the 2022 Annual Assessment with no impairment in goodwill and indefinite-lived intangible assets. With our underperformance in the fourth quarter of 2022, we adjusted our projections downward to reflect more recent information. As previously noted, the 2022 Interim Tests provided that one of our goodwill reporting units that encompasses our business in Europe indicated that fair value of the reporting unit was close to approximating carrying value. This fact combined with the adjustment of our projections led us to conduct the 2022 Additional Goodwill Assessment on goodwill impairment, incorporating our adjusted projections as well as market and risk considerations. The 2022 Additional Goodwill Assessment did not provide any material changes to the conclusions reached within the 2022 Interim Tests or the 2022 Annual Assessment, with no impairment in goodwill. As part of the Recycold acquisition in December 2021, we acquired € 2.9 million (approximately $ 3.3 million) of goodwill and € 0.2 million (approximately $ 0.2 million) of indefinite-lived intangible assets. The following table shows our goodwill balances by operating segment that are aggregated into one reportable segment: North America Europe Total Balance at December 31, 2020 $ 338.8 $ 119.6 $ 458.4 Acquisitions - 3.3 3.3 Currency translation - ( 8.7 ) ( 8.7 ) Balance at December 31, 2021 338.8 114.2 453.0 Currency translation - ( 6.3 ) ( 6.3 ) Balance at December 31, 2022 $ 338.8 $ 107.9 $ 446.7 Definite-Lived Intangible Assets, net Definite-lived or amortizable intangible assets consist of patented and unpatented technology, customer/distributor relationships, and other intellectual property. As part of the Recycold acquisition in December 2021, we acquired € 1.4 million (approximately $ 1.6 million) of intangible assets, including patents, customer/distributor relationships, and other intellectual property. The estimated useful lives of these assets range from 10 to 15 years. Impairment of Long-lived Assets As previously noted, we conducted testing and analysis of our asset groups in the 2022 Interim Tests. The evaluation of our asset groups used unobservable inputs that required significant judgement and were performed using an undiscounted cash flow analysis where the undiscounted cash flows expected to be generated from the use and eventual disposition of the asset groups were compared to the carrying value of the asset groups. Upon completion of these tests, we concluded that the carrying values of our asset groups were recoverable and not impaired. The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives: December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer/distributor relationships $ 195.5 $ ( 46.5 ) $ 149.0 $ 201.7 $ ( 34.6 ) $ 167.1 Patented/unpatented technology 171.6 ( 55.0 ) 116.6 171.9 ( 39.4 ) 132.5 Intellectual property 0.5 ( 0.2 ) 0.3 0.6 ( 0.1 ) 0.5 Total definite-lived intangible assets 367.6 ( 101.7 ) 265.9 374.2 ( 74.1 ) 300.1 Trademarks/tradenames with indefinite lives 106.2 - 106.2 106.4 - 106.4 Identifiable intangible assets, net $ 473.8 $ ( 101.7 ) $ 372.1 $ 480.6 $ ( 74.1 ) $ 406.5 The following table shows the remaining estimated amortization expense for our definite-lived intangible assets at December 31, 2022: Year Amount 2023 $ 29.0 2024 28.9 2025 28.4 2026 28.1 2027 27.9 Thereafter 123.6 $ 265.9 Amortization expense was $ 28.8 million, $ 29.5 million, and $ 28.7 million in 2022, 2021, and 2020, respectively. The following table shows the remaining weighted-average useful life of our definite lived intangible assets as of December 31, 2022: Remaining Weighted-Average Useful Life December 31, 2022 December 31, 2021 Customer/distributor relationships 11 years 12 years Patented/unpatented technology 8 years 9 years Intellectual property 7 years 7 years Total identifiable assets, net with definite lives 10 years 11 years |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition | Note 10 — Acquisition Recycold — In December 2021, we acquired Recycold. We accounted for the Recycold transaction under ASC 805, however, all amounts associated with this transaction are not material to the consolidated financial statements. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 11 — Long-Term Debt In connection with Ranpak’s business combination with One Madison Corporation, Holdings, the U.S. Borrower, and the Dutch Borrower entered into the Facilities. The First Lien Term Facility matures in 2026 and the Revolving Facility matures in 2024. In December 2019, we prepaid approximately $ 107.7 million on the First Lien Dollar Term Facility. As of December 31, 2022 and December 31, 2021 , no amounts were outstanding under the Revolving Facility. Long-term debt consisted of the following: December 31, 2022 December 31, 2021 First Lien Dollar Term Facility $ 250.0 $ 250.0 First Lien Euro Term Facility 145.4 155.0 Finance lease liabilities 1.5 1.5 Deferred financing costs, net ( 3.9 ) ( 5.1 ) Total debt 393.0 401.4 Less: current portion of long-term debt ( 0.6 ) ( 0.4 ) Less: current portion of finance lease liabilities ( 0.7 ) ( 0.6 ) Long-term debt $ 391.7 $ 400.4 Maturities of the First Lien Term Facility at December 31, 2022 are as follows: Year Ended Amount 2023 $ 1.5 2024 1.5 2025 1.5 2026 390.9 2027 - Thereafter - Total $ 395.4 Borrowings under the Facilities, at the Borrowers’ option, bear interest at either (i) an adjusted eurocurrency rate or (ii) a base rate, in each case plus an applicable margin. The applicable margin is 3.75 % with respect to eurocurrency borrowings and 2.75 % with respect to base rate borrowings as of December 31, 2022 and December 31, 2021 , (in each case, assuming a first lien net leverage ratio of less than 5.00 :1.00), subject to a leverage-based step-up to an applicable margin equal to 4.00 % for eurocurrency borrowings 3.00 % with respect to base rate borrowings. The interest rate for the First Lien Dollar Term Facility as of December 31, 2022 and December 31, 2021 was 7.88 % and 3.85 %, respectively. The interest rate for the First Lien Euro Term Facility as of December 31, 2022 and December 31, 2021 was 5.25 % and 3.95 %, respectively. The Revolving Facility includes borrowing capacity available for standby letters of credit of up to $ 5.0 million. Any issuance of letters of credit will reduce the amount available under the Revolving Facility. As of December 31, 2022, we had $ 2.4 million committed to outstanding letters of credit, leaving net availability under the Revolving Facility at $ 42.6 million. The Facilities will provide the Borrowers with the option to increase commitments under the Facilities in an aggregate amount not to exceed the greater of $ 95.0 million and 100 % of Consolidated EBITDA (as defined in the definitive documentation with respect to the Facilities) for the four consecutive fiscal quarters most recently ended, plus any voluntary prepayments of the First Lien Term Facility (and, in the case of the Revolving Facility, to the extent such voluntary prepayments are accompanied by permanent commitment reductions under the Revolving Facility), plus unlimited amounts subject to the relevant net leverage ratio tests and certain other conditions. The obligations of the Borrowers under the Facilities and certain of their obligations under hedging arrangements and cash management arrangements are unconditionally guaranteed by Holdings, the U.S. Guarantors and, solely with respect to the obligations of the Dutch Borrower or any Dutch Guarantor, the Dutch Guarantors, in each case, other than certain excluded subsidiaries. The Facilities are secured by (i) a first priority pledge of the equity interests of the Borrowers and of each direct, wholly-owned restricted subsidiary of any Borrower or any Guarantor and (ii) a first priority security interest in substantially all of the assets of the Borrowers and the Guarantors (in each case, subject to customary exceptions), provided that notwithstanding the foregoing, obligations of the U.S. Borrower and U.S. Guarantors under the Facilities were not secured by assets of the Dutch Borrower or any Dutch Guarantor. The Facilities impose restrictions that require the Company to comply with or maintain certain financial tests and ratios. Such agreements restrict our ability to, among other things: (i) declare dividends or redeem or repurchase capital stock, including with respect to Class A common stock; (ii) prepay, redeem or purchase other debt; (iii) incur liens; (iv) make loans, guarantees, acquisitions and other investments; (v) incur additional indebtedness; (vi) engage in sale and leaseback transactions; (vii) amend or otherwise alter debt and other material agreements; (viii) engage in mergers, acquisitions and asset sales; (ix) engage in transactions with affiliates; and (x) enter into arrangements that would prohibit us from granting liens or restrict our ability to pay dividends, make loans or transfer assets among our subsidiaries. In addition, the Facilities require the Company to make mandatory prepayments of term loans upon the occurrence of certain events, consisting of (i) an annual excess cash flow sweep of 50% of excess cash flow (as defined in the First Lien Term Facility agreement) with step-downs to 25% if the first lien leverage ratio is less than or equal to 4.50:1.00 and greater than 4.00:1.00 and 0% if the first lien leverage ratio is less than or equal to 4.00:1.00, subject to certain deductions; (ii) the receipt of certain insurance/condemnation proceeds or net proceeds from certain asset sales and sale-leasebacks, subject to step-downs based on the company’s first lien leverage ratio; provided that in lieu of a prepayment the Company may instead reinvest such proceeds specified assets subject to certain conditions, and (iii) the incurrence or issuance of non-permitted debt, following which the Company must pay 100% of specified net proceeds received in connection therewith. We were in compliance with all financial covenants as of December 31, 2022 . No mandatory prepayments are required as of December 31, 2022. On February 14, 2020, Ranger Packaging LLC, as the initial U.S. borrower, the Dutch Borrower, Holdings, certain other subsidiaries of Holdings, certain lenders party to Amendment No. 1 and the Administrative Agent entered into the Amendment No. 1. Among other things, the Amendment No. 1 amends the Facilities such that (x) the requirement of the Borrowers to apply a percentage of excess cash flow to mandatorily prepay term loans under the Facilities commences with the fiscal year ending December 31, 2021 (instead of the fiscal year ending December 31, 2020) and (y) the aggregate amount per fiscal year of capital stock of any parent company of the U.S. Borrower that is held by directors, officers, management, employees, independent contractors or consultants of the U.S. Borrower (or any parent company or subsidiary thereof) that the U.S. Borrower may repurchase, redeem, retire or otherwise acquire or retire for value has been increased to the greater of $ 10.0 million and 10 % of Consolidated AEBITDA (as defined in the Facilities) (increased from the greater of $ 7.0 million and 7 % of Consolidated AEBITDA) as of the last day of the most recently ended quarter for which financial statements have been delivered . On July 1, 2020, contemporaneously with the Reorganization, Ranger Packaging LLC, Ranpak Corp., Ranger Pledgor LLC, certain other subsidiaries of Ranger Pledgor LLC and Goldman Sachs Lending Partners LLC entered into the Borrower Assumption Agreement whereby, among other things, Ranpak Corp. assumed all obligations, liabilities and rights of Ranger Packaging LLC as the U.S. Borrower under the Facilities. Under the First Lien Term Facility agreement, our lower leverage ratio at December 31, 2020 required us to pay our lenders the $ 8.2 million Exit Payment, which was paid in the first quarter of 2021 . This amount is included in interest expense, net in 2020. Additionally, as a result of making the Exit Payment to our lenders, we became eligible to enter into the Permitted Exit Payment Amendment (as defined in the Credit Agreement) to the Credit Agreement which, among other things, would introduce additional exceptions to the negative covenant that restricts the ability of the Borrowers and their restricted subsidiaries from paying dividends and distributions or repurchasing capital stock. On July 28, 2021, the Permitted Exit Payment Amendment to the Credit Agreement became effective. Deferred financing costs represent costs incurred in connection with the issuance or amendment of our debt agreements. Deferred financing costs are amortized over the terms of the related debt and recognized as a component of interest expense in the Consolidated Statements of Operations and Comprehensive Income (Loss). Deferred financing costs related to our First Lien Term Facility are included in long-term debt on the Consolidated Balance Sheets. Deferred financing costs related to our Revolving Facility are included in other assets. The following table presents deferred financing costs as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Deferred financing costs $ 12.7 $ 12.7 Accumulated amortization ( 8.3 ) ( 6.8 ) Deferred financing costs, net $ 4.4 $ 5.9 As a result of the June 2021 Prepayment, we accelerated the amortization of approximately $ 0.3 million of deferred financing costs, which is included in interest expense in 2021. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Note 12 — Derivative Instruments We use derivatives as part of the normal business operations to manage our exposure to fluctuations in interest rates associated with variable interest rate debt and fluctuations in foreign currency translation associated with our global business presence. These derivatives can help decrease the volatility of cash flows affected by changes in interest rates and foreign currency exchange rates. On January 31, 2019, the Company entered into a business combination contingent interest rate swap in a notional amount of $ 200.0 million (the “January 2019 Swap”) to hedge part of the floating interest rate exposure under the First Lien Dollar Term Facility. The January 2019 Swap became effective on June 3, 2019 and will terminate on June 3, 2022. The January 2019 Swap economically converts a portion of the variable rate debt to fixed rate debt. The Company receives floating interest payments monthly based on one-month LIBOR and pays a fixed rate of 2.56 % to the counterparty. Prior to September 25, 2019, the Company did not apply hedge accounting to the January 2019 Swap. Changes in fair value were recorded to interest expense . On September 25, 2019, the Company amended the January 2019 Swap to extend its term to mature on June 1, 2023 and lower the rate to 2.31 % (the “Amended January 2019 Swap”). We concurrently entered into an incremental $ 50.0 million notional swap at 1.5 % and maturing on June 1, 2023 (the “September 2019 Swap”) . Additionally, on September 25, 2019, we designated as cash flow hedges the Amended January 2019 Swap and the September 2019 Swap and applied hedge accounting. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract agreements without exchange of the underlying notional amount. Changes in fair value are recorded in accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. On March 27, 2020, we entered into an interest rate swap that amended the Amended January 2019 Swap to a lower rate of 2.1 % and extended the maturity to June 1, 2024 (the “Second Amended January 2019 Swap”). We designated the Second Amended January 2019 Swap as a cash flow hedge and applied hedge accounting . A summary of our interest rate swaps is as follows: Interest Rate Swap Agreements Designation Maturity Date Rate Notional Value Debt Instrument Hedged Percentage of Debt Instrument Outstanding December 31, 2022 September 2019 Swap Cash flow hedge June 1, 2023 1.50 % $ 50.0 First Lien Dollar Term Facility 20 % Second Amended January 2019 Swap Cash flow hedge June 1, 2024 2.09 % 200.0 First Lien Dollar Term Facility 80 % $ 250.0 100 % December 31, 2021 September 2019 Swap Cash flow hedge June 1, 2023 1.50 % $ 50.0 First Lien Dollar Term Facility 20 % Second Amended January 2019 Swap Cash flow hedge June 1, 2024 2.09 % 200.0 First Lien Dollar Term Facility 80 % $ 250.0 100 % The Second Amended January 2019 Swap contains an insignificant financing element that is amortized over the term of the hedging relationship. As of December 31, 2022, we anticipate having to reclassify $ 6.3 million from accumulated other comprehensive income (loss) into earnings during the next twelve months to offset the variability of the hedged items during this period. On September 1, 2021, we entered into a cross-currency swap (the “September 2021 Swap”) to protect our net investment in a European subsidiary and hedge against the risk of adverse changes in the exchange rate of the Euro and USD. On September 1, 2021, we designated the September 2021 Swap as a net investment hedge. The September 2021 Swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. At a spot exchange rate of 1.1835 , we converted notional amounts of approximately $ 80.0 million at 5.84 % for € 67.6 million at 5.02 %. The change in fair value of the September 2021 Swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the September 2021 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the September 2021 Swap to maturity on June 1, 2024. In February 2022, we terminated the September 2021 Swap. The resulting cash inflow of approximately $ 2.1 million is recorded within other comprehensive income. We simultaneously entered into another cross-currency swap (the “February 2022 Swap”) and designated it as a net investment hedge. The February 2022 Swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. At a spot exchange rate of 1.1345 , we converted notional amounts of approximately $ 80.0 million at 5.84 % for € 70.5 million at 4.37 %. The change in fair value of the February 2022 Swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income. Components of the February 2022 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income and into interest expense over the life of the February 2022 Swap to maturity on June 1, 2024. In April 2022, we terminated the February 2022 Swap, resulting in a cash inflow of approximately $ 2.8 million, which is recorded within other comprehensive income. We simultaneously entered into another cross-currency swap (the “April 2022 Swap”) and designated it as a net investment hedge. The April 2022 Swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. At a spot exchange rate of 1.0827 , we converted notional amounts of approximately $ 80.0 million at 5.84 % for € 73.9 million at 3.93 %. The change in fair value of the April 2022 Swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income. Components of the April 2022 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income and into interest expense over the life of the April 2022 Swap to maturity on June 1, 2024. In July 2022, we terminated the April 2022 Swap, resulting in a cash inflow of a ppr oximately $ 5.1 million, which is recorded within other comprehensive income. In November 2022, we entered into a cross currency swap (the “November 2022 Swap”) and designated it as a net investment hedge. The November 2022 Swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. At a spot exchange rate of 1.0205 , we converted notional amounts of approximately $ 80.0 million at 5.84 % for € 78.4 million at 3.95 %. The change in fair value of the November 2022 Swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the November 2022 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the November 2022 Swap to maturity on June 1, 2024. The following table summarizes the total fair value of derivative assets and liabilities and the respective classification in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. The net amount of derivatives can be reconciled to the tabular disclosure of fair value in Note 14, “ Fair Value Measurement ”: Assets (Liabilities) Balance Sheet Classification December 31, 2022 December 31, 2021 Interest Rate Swap Agreements Designated as cash flow hedges Accrued liabilities and other $ - $ ( 3.8 ) Designated as cash flow hedges Derivative instruments - ( 2.4 ) Designated as cash flow hedges Prepaid expenses and other current assets 6.3 - Designated as cash flow hedges Other assets 1.8 - $ 8.1 $ ( 6.2 ) Cross-Currency Swap Agreement Designated as net investment hedge Other assets $ - $ 2.3 Designated as net investment hedge Derivative instruments ( 3.7 ) - $ ( 3.7 ) $ 2.3 The following table presents the effect of our derivative financial instruments on our Consolidated Statements of Operations. The income effects of our derivative activities are reflected in interest expense: Year Ended December 31, 2022 2021 2020 Total interest expense presented in the statement of operations $ 20.7 $ 22.4 $ 30.2 Interest rate swap agreements designated as cash flow hedges ( 0.1 ) 3.9 2.2 Cross-currency swap agreement designated as net investment hedge, amounts excluded from effectiveness testing $ ( 1.2 ) $ ( 0.3 ) $ - The activity of our derivative financial instruments is reflected in cash flows from operating activities in our Consolidated Statements of Cash Flows. The cash inflow of $ 10.0 million from the settlements of net investment hedges in 2022 in reflected in cash flows from investing activities in our Consolidated Statements of Cash Flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 13 — Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) is a separate line within the Consolidated Statements of Changes in Shareholders’ Equity that presents our other comprehensive income (loss) that has not been reported as part of net income (loss). The components of accumulated other comprehensive income (loss) at December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 Gross Balance Tax Effect Net Balance Foreign currency translation $ ( 8.0 ) $ - $ ( 8.0 ) Unrealized gain (loss) on interest rate swaps 11.0 ( 2.4 ) 8.6 Unrealized gain (loss) on cross-currency swap ( 3.9 ) 0.9 ( 3.0 ) Realized gain (loss) on cross-currency swap 10.0 ( 2.4 ) 7.6 Total $ 9.1 $ ( 3.9 ) $ 5.2 December 31, 2021 Gross Balance Tax Effect Net Balance Foreign currency translation $ 2.5 $ - $ 2.5 Unrealized gain (loss) on interest rate swaps ( 3.2 ) 1.0 ( 2.2 ) Unrealized gain (loss) on cross-currency swap 2.9 ( 0.6 ) 2.3 Total $ 2.2 $ 0.4 $ 2.6 The following table presents the changes in accumulated other comprehensive income (loss) by component for 2022 and 2021: Year Ended December 31, 2022 Foreign currency translation Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on cross-currency swap Realized gain (loss) on cross-currency swap Total Beginning balance $ 2.5 $ ( 2.2 ) $ 2.3 $ - $ 2.6 Other comprehensive income (loss) before reclassifications ( 10.5 ) 14.0 ( 5.6 ) 7.6 5.5 Amounts reclassified from accumulated other comprehensive income (loss) - ( 3.2 ) 0.3 - ( 2.9 ) Ending balance $ ( 8.0 ) $ 8.6 $ ( 3.0 ) $ 7.6 $ 5.2 Year Ended December 31, 2021 Foreign currency translation Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on cross-currency swap Realized gain (loss) on cross-currency swap Total Beginning balance $ 17.9 $ ( 7.2 ) $ - $ - $ 10.7 Other comprehensive income (loss) before reclassifications ( 15.4 ) 11.2 2.0 - ( 2.2 ) Amounts reclassified from accumulated other comprehensive income (loss) - ( 6.2 ) 0.3 - ( 5.9 ) Ending balance $ 2.5 $ ( 2.2 ) $ 2.3 $ - $ 2.6 The following tables present the reclassifications out of accumulated other comprehensive income (loss) for 2022, 2021, and 2020: Year Ended December 31, 2022 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ ( 0.1 ) Interest expense, net Interest rate swap agreements – tax effect 3.3 Income tax expense Cross-currency swap agreement ( 1.2 ) Interest expense, net Cross-currency swap agreement – tax effect 0.9 Income tax expense Total reclassifications $ 2.9 Net of tax Year Ended December 31, 2021 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ 3.9 Interest expense, net Interest rate swap agreements – tax effect 2.3 Income tax expense Cross-currency swap agreement ( 0.3 ) Interest expense, net Cross-currency swap agreement – tax effect - Income tax expense Total reclassifications $ 5.9 Net of tax Year Ended December 31, 2020 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ 2.5 Interest expense, net Tax effect ( 2.4 ) Income tax benefit Total reclassifications $ 0.1 Net of tax |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 14 — Fair Value Measurement Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: • Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 — Inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activities. The carrying values of cash and cash equivalents (primarily consisting of bank deposits and a money market fund), accounts receivable and accounts payable approximate their fair values due to the short-term nature of these instruments as of December 31, 2022 and December 31, 2021. The following table provides the carrying amounts, estimated fair values and the respective fair value measurements of our financial instruments as of December 31, 2022 and December 31, 2021: Fair Value Measurements Carrying Amount Level 1 Level 2 Level 3 December 31, 2022 Money market fund $ 30.5 $ 30.5 $ - $ - Current and long-term debt 396.9 - 388.7 - Interest rate swap agreements 8.1 - 8.1 - Cross-currency swap agreement $ 3.7 $ - $ 3.7 $ - December 31, 2021 Money market fund $ 70.0 $ 70.0 $ - $ - Current and long-term debt 406.5 - 406.5 - Interest rate swap agreements 6.2 - 6.2 - Cross-currency swap agreement $ 2.3 $ - $ 2.3 $ - The valuation techniques and inputs used for fair value measurements categorized within Level 1 include quoted prices in active markets that are readily and regularly available. Accordingly, the money market fund is considered a Level 1 measurement and its carrying value approximates value fair due to the short-term nature of the investment. The valuation techniques and inputs used for fair value measurements categorized within Level 2 include quoted comparable prices from market inputs. Generally, these fair value measures are model-based valuation techniques such as discounted cash flows or option pricing models using our own estimates and assumptions or those expected to be used by market participants. We determine our valuation policies and procedures and analyze changes in fair value measurements from period to period by using an industry standard market approach, in which prices and other relevant information are generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were measured using unobservable inputs. The fair value of outstanding long-term debt is based on prices and other relevant information generated by market transactions involving identical or comparable debt instruments, which represents a Level 2 measurement. Derivative positions are classified within Level 2 of the valuation hierarchy as they are valued using quoted market prices for similar assets and liabilities in active markets. The interest rate swaps are valued utilizing an income approach, which discounts future cash flow based upon current market expectations and adjustments for credit risk, each of which are considered Level 2 inputs. The cross-currency swap is valued utilizing forward and spot prices for currencies and LIBOR forward curves, which are considered Level 2 inputs . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 15 — Employee Benefit Plans Defined Contribution Plan. We maintain a 401(k) defined contribution savings and retirement plan (the “Plan”) for substantially all of our U.S. employees. Subject to Internal Revenue Code limitations, an employee may elect to contribute an amount up to 25 % of compensation during each plan year. The Plan provides for matching contributions of 50 % of each employee’s voluntary contributions up to a maximum matching contribution of 3 % of the employee’s compensation. The Plan also permits unmatched employee after-tax contributions subject to certain limitations. Total employer contributions made under the Plan were approximately $ 0.5 million, $ 0.5 million, and $ 0.4 million for 2022, 2021, and 2020, respectively. Multiemployer Benefit Plan . We maintain and participate in multiemployer benefit plans in various European countries. The largest of these is the B.V. Plan in the Netherlands, which provides retirement benefits to Ranpak B.V. employees. In accordance with the collective labor agreements and Dutch laws, employee and employer contributions are paid to a third-party retirement fund administrator. Per Dutch laws, the retirement plans are required to be fully funded. Employer contributions into these various European multiemployer plans were approximately $ 1.2 million, $ 1.2 million, and $ 4.1 million for 2022, 2021, and 2020 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 — Income Taxes The components of earnings and loss before income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Domestic $ ( 40.0 ) $ ( 8.6 ) $ ( 26.8 ) Foreign ( 16.7 ) 3.7 2.2 Total $ ( 56.7 ) $ ( 4.9 ) $ ( 24.6 ) The components of our income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Current tax expense Federal $ 0.2 $ 2.1 $ ( 0.5 ) State 0.5 1.1 0.3 Foreign 3.7 7.5 4.0 Total current tax expense 4.4 10.7 3.8 Deferred tax expense (benefit) Federal ( 9.7 ) ( 6.8 ) ( 3.8 ) State ( 2.1 ) ( 1.1 ) ( 1.9 ) Foreign ( 7.9 ) ( 4.9 ) 0.7 Total deferred tax benefit ( 19.7 ) ( 12.8 ) ( 5.0 ) Total income tax benefit $ ( 15.3 ) $ ( 2.1 ) $ ( 1.2 ) The differences between income taxes expected at the U.S. federal statutory income tax rate and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2022 2021 2020 Income tax benefit at statutory rate $ ( 11.9 ) $ ( 1.0 ) $ ( 5.2 ) U.S. state income taxes ( 1.7 ) ( 0.1 ) ( 1.7 ) Tax related to foreign activities ( 0.9 ) 0.1 0.4 U.S. federal tax credits ( 0.1 ) ( 0.1 ) ( 0.4 ) Return to provision adjustments ( 0.4 ) ( 1.2 ) 0.5 Remeasurement of deferred taxes - 0.8 3.8 Stock-based compensation windfall ( 0.8 ) ( 1.0 ) - Global intangible low-taxed income - - 1.3 Non-deductible compensation 0.2 0.5 - Foreign-derived intangible income deduction - ( 1.2 ) ( 0.1 ) Uncertain tax positions 0.1 0.9 - Other, net 0.2 0.2 0.2 Income tax benefit $ ( 15.3 ) $ ( 2.1 ) $ ( 1.2 ) Effective tax rate 27.3 % 42.7 % 6.2 % Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, which will result in taxable or deductible amounts in the future. Deferred tax assets (liabilities) consisted of the following: December 31, 2022 December 31, 2021 Deferred tax assets Unrealized foreign currency exchange $ - $ 0.3 Stock-based compensation 8.4 5.4 Net operating losses and credits 2.1 1.3 Non-deductible interest carryforward 10.1 6.0 Other 1.6 1.0 Total deferred tax assets 22.2 14.0 Valuation allowance ( 1.1 ) ( 0.9 ) Deferred tax assets, net 21.1 13.1 Deferred tax liabilities Depreciation ( 7.1 ) ( 10.9 ) Amortization ( 90.7 ) ( 100.1 ) Derivative instruments ( 1.8 ) - Unrealized foreign currency exchange ( 1.9 ) - Total deferred tax liabilities ( 101.5 ) ( 111.0 ) Deferred tax liabilities, net before unrecognized tax benefits ( 80.4 ) ( 97.9 ) Deferred tax impact of unrecognized tax benefits 0.2 0.2 Deferred tax assets (liabilities), net after unrecognized tax benefits $ ( 80.2 ) $ ( 97.7 ) In evaluating our ability to recover our deferred tax assets in the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In evaluating the objective evidence that historical results provide, we consider all available positive and negative evidence. Negative evidence includes, but is not limited to, cumulative losses in recent years; a history of operating loss or tax credit carryforwards expiring unused; losses expected in early future years; unsettled circumstances; profit levels on a continuing basis in future years; and carryback or carryforward periods that would limit realization of tax benefits. Positive evidence includes, but is not limited to, future reversals of existing taxable temporary differences; future taxable income exclusive of reversing temporary differences and carryforwards; taxable income in prior year(s) if carryback is permitted under the tax law; and tax-planning strategies. As of December 31, 2022 and 2021 , we had $ 1.0 million and $ 1.3 million, respectively, in federal net operating loss carryforwards that expire in 2033 through 2039; $ 0.2 million and $ 0.1 million, respectively, of tax benefits related to state net operating loss carryforwards, which expire in 2023 through 2038 ; and $ 6.7 million and $ 3.7 million, respectively, of foreign net operating loss carryforwards, a portion of which expire in 2026 through 2027 , with the remainder subject to an indefinite carryforward period. Management does not believe it is more likely than not that a portion of the foreign net operating losses will be utilized. In recognition of this risk, we have provided a valuation allowance at December 31, 2022 and 2021 of $ 1.1 million and $ 0.9 million, respectively, which was recorded through income tax expense. In the U.S., IRC Section 382 imposes a limitation on the utilization of net operating losses (“NOL”), credit carryforwards, built-in losses, and built-in deductions after an ownership change. We experienced an ownership change within the meaning of IRC Section 382 as a result of Ranpak’s business combination with One Madison Corporation. We performed a calculation of this limitation and determined the carryforwards will not be restricted or limited. We consider the undistributed earnings of our foreign subsidiaries as of December 31, 2022 to be indefinitely reinvested and, accordingly, no U.S. income taxes have been provided thereon. As of December 31, 2022 , the amount of undistributed earnings and profits associated with indefinitely reinvested foreign earnings was approximately $ 62.1 million. We do not anticipate the need to repatriate funds to the U.S. to satisfy domestic liquidity needs arising in the ordinary course of business. We are subject to taxation in the United States (federal, state, local) and foreign jurisdictions. As of December 31, 2022 , tax years 2019 through 2022 are subject to examination by the tax authorities. The components of our unrecognized tax benefits were as follows: Year Ended December 31, 2022 2021 2020 Unrecognized income tax benefits at the beginning of the period $ 1.8 $ 2.9 $ 1.4 Increases related to prior year tax positions - 0.7 - Decreases related to prior year tax positions - ( 1.6 ) - Increases related to current year tax positions 0.2 - 1.4 Foreign currency impact ( 0.1 ) ( 0.2 ) 0.1 Unrecognized income tax benefits at the end of the period $ 1.9 $ 1.8 $ 2.9 As of December 31, 2022 and 2021 , we had unrecognized income tax benefits of $ 1.9 million and $ 1.8 million, respectively, that would impact the effective tax rate if recognized. As of December 31, 2022 and 2021 , we had accrued interest and penalties of $ 0.4 million. We recognize interest and penalties related to unrecognized tax benefits in income tax expense (benefit) in the Consolidated Statements of Operations. Accrued interest and penalties are included in accrued liabilities and other in the Consolidated Balance Sheets. Pursuant to ASC 740, as of each balance sheet date, we assess our uncertain tax positions to determine whether factors underlying the sustainability assertion have changed. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain NOLs and allow businesses and individuals to carry back NOLs arising in 2018, 2019, and 2020 to the five prior tax years; suspend the excess business loss rules under section 461(l); accelerate refunds of previously generated corporate AMT credits; generally loosen the business interest limitation under section 163(j) from 30 percent to 50 percent (special partnership rules apply); and fix the “retail glitch” for qualified improvement property in the Tax Cuts and Jobs Act (the “TCJA”) (TCJA, Public Law 115-97). ASC 740 requires that the tax effects of changes in tax laws or rates be recorded discretely as a component of the income tax provision related to continuing operations in the period of enactment. We recorded any applicable impact from the CARES Act in the first quarter of 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 17 — L eases We lease automobiles, machinery, equipment, warehouses, and office buildings. We account for these leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities. The right-of-use asset represents our right to use underlying assets for the lease term and the lease liability represents our obligation to make lease payments under the leases. We determine if an arrangement is or contains a lease at contract inception and exercise judgment and apply certain assumptions when determining the discount rate, lease term, and lease payments. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, we do not have knowledge of the rate implicit in the lease and, therefore, we use the incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that we are reasonably certain to exercise. Operating leases and finance leases are included in the Consolidated Balance Sheets as follows: Classification December 31, 2022 December 31, 2021 Lease assets Operating lease right-of-use assets, net Assets $ 6.0 $ 6.6 Finance lease right of use assets, net Property, plant, and equipment, net 1.4 1.5 Total lease assets $ 7.4 $ 8.1 Lease liabilities Operating lease liabilities, current Current liabilities $ 2.0 $ 2.4 Operating lease liabilities, non-current Non-current liabilities 4.0 4.3 Finance lease liabilities, current Current portion of long-term debt 0.7 0.6 Finance lease liabilities, non-current Long-term debt 0.8 0.9 Total lease liabilities $ 7.5 $ 8.2 The components of lease costs, which are included in income (loss) from operations in our Consolidated Statements of Operations, were as follows: Year Ended December 31, 2022 2021 Operating leases Operating lease costs $ 3.2 $ 2.8 Variable lease costs 0.2 0.3 Total operating lease costs $ 3.4 $ 3.1 Finance leases Amortization of right-of-use asset $ 0.8 $ 0.6 Interest on finance lease liabilities 0.1 0.1 Total finance lease costs $ 0.9 $ 0.7 Under ASC 840, rental expense was $ 2.1 million in 2020. Maturities of lease liabilities as of December 31, 2022 are as follows: Operating Finance Total 2023 $ 2.2 $ 0.8 $ 3.0 2024 1.8 0.5 2.3 2025 1.6 0.2 1.8 2026 0.7 0.1 0.8 2027 0.2 - 0.2 2028 and Thereafter - - - Total lease payments 6.5 1.6 8.1 Less lease interest ( 0.5 ) ( 0.1 ) ( 0.6 ) Total lease liabilities $ 6.0 $ 1.5 $ 7.5 Additional information related to leases is presented as follows: December 31, 2022 December 31, 2021 Operating leases Weighted average remaining lease term 3.3 years 3.5 years Weighted average discount rate 5.4 % 3.8 % Finance leases Weighted average remaining lease term 2.5 years 3.0 years Weighted average discount rate 3.4 % 3.3 % Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3.0 $ 2.7 Financing cash flows from finance leases 0.9 0.7 Total cash paid $ 3.9 $ 3.4 Leased assets obtained in exchange for new operating lease liabilities $ 1.8 $ 9.2 Leased assets obtained in exchange for new finance lease liabilities 0.6 2.2 Right-of-use assets obtained in exchange for lease liabilities $ 2.4 $ 11.4 As previously noted, our machine lease revenue is accounted for under ASC 842 and is recognized on a straight-line basis over the terms of the PPS systems agreements with customers, which have durations of less than one year. Refer to Note 2, “ Basis of Presentation and Summary of Significant Accounting Policies ” for further detail. |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Note 18 — Asset Retirement Obligation Asset retirement obligations as a result of required land remediation or reclamation activities are recorded in other non-current liabilities in the Consolidated Balance Sheets. Accretion expense is immaterial. Changes in the asset retirement obligation during 2022 and 2021 was as follows: Year Ended December 31, 2022 2021 Beginning balance $ 0.7 $ 0.7 Accretion - - Currency adjustments 0.1 - Ending balance $ 0.8 $ 0.7 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 19 — Commitments and Contingencies Litigation We are subject to legal proceedings and claims that arise in the ordinary course of our business. Management evaluates each claim and provides for potential loss when the claim is probable to be paid and reasonably estimable. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular period’s results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities, management believes that any future accruals with respect to these currently known contingencies would not have a material effect on the financial condition, liquidity or cash flows of the Company. There are no amounts required to be reflected in these consolidated financial statements related to contingencies for 2022 and 2021. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. There are no amounts required to be reflected in these consolidated financial statements related to environmental contingencies. Management believes the Company is in compliance, in all material respects, with environmental laws and regulations and maintains insurance coverage to mitigate exposure to environmental liabilities. Management does not believe any environmental matters will have a material adverse effect on the Company’s future consolidated results of operations, financial position or cash flows. Guarantees We issue bank guarantees from time to time for various purposes that arise out of the normal course of business. These amounts are immaterial for all periods presented. Capital Commitments As of December 31, 2022 , capital commitments relating to property, plant, and equipment amount to $ 10.5 million. This amount is associated with the renovation of our global headquarters in Concord and our new facilities in Shelton, Connecticut and Eygelshoven, The Netherlands. We anticipate fulfilling these capital commitments in 2023. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 20 — Stock-Based Compensation We expense the fair value of grants of various stock-based compensation programs over the vesting period of the awards. Stock compensation expense is recorded in selling, general, and administrative expenses in the Consolidated Statements of Operations. Awards granted are recognized as compensation expense based on the grant date fair value, estimated in accordance with ASC 718, Compensation – Stock Compensation . The grant date fair value is the closing price of our stock on the grant date. Failure to satisfy the threshold service or performance conditions results in the forfeiture of shares. Forfeiture of share awards with service conditions or performance-based restrictions results in a reversal of previously recognized share-based compensation expense so long as the awards were probable of vesting. Stock compensation expense includes actual forfeitures incurred. The table below summarizes certain data for our stock-based compensation plans: Year Ended December 31, 2022 2021 2020 Stock-based compensation expense $ 18.3 $ 22.5 $ 7.2 Tax (expense) benefit for stock-based compensation 0.7 1.2 1.5 Stock-based compensation expense, net of tax $ 19.0 $ 23.7 $ 8.7 The Ranpak Holdings Corp. 2019 Omnibus Incentive Plan (the “2019 Plan”) rewards employees and other individuals to perform at their highest level and contribute significantly to the success of the Company. The 2019 Plan is an omnibus plan that may provide these incentives through grants of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU” or “RSUs”), performance awards, other cash-based awards and other stock-based awards to employees, directors, or consultants of the Company. At the annual meeting in May 2021, shareholders approved an amendment to the 2019 Plan (the “Amended Plan”) that authorized an additional 9.0 million shares for issuance for future awards. As of December 31, 2022, the pool of shares in the 2019 Plan is summarized as follows: 2019 Plan Quantity Maximum allowed for issuance 13,118,055 Awards granted ( 6,356,046 ) Awards forfeited 1,334,150 Available for future awards 8,096,159 Awards vested 2,058,160 Restricted Stock Units — RSUs represent a right to receive one share of our common stock that is both nontransferable and forfeitable unless and until certain conditions are satisfied. Certain RSUs vest ratably over a two-year period while others vest over a one-year period. The fair value of RSUs is determined on the grant date and is amortized over the vesting period on a ratable basis. Performance-Based Restricted Stock Units — Performance-based restricted stock units (“PRSU” or “PRSUs”) represent a right to receive, to the extent vested and earned, one share of our common stock. Our PRSUs generally follow two forms. One form of PRSU vests over a three-year period with the number of the awards to be earned determined at the end of the initial one-year performance period, based upon attainment of specific business performance goals during such initial one-year performance period. If certain minimum performance levels are not attained in the initial one-year performance period, the awards will be automatically forfeited before vesting. The awards are variable in that PRSUs earned could range from 0 % to 150 % of the target number of PRSUs granted, contingent on the performance level attained . The fair value of our PRSUs is determined on the grant date. Compensation cost for these awards is recognized based on the probability of achievement of the performance-based conditions. In connection with the shareholders approving the Amended Plan, certain executive officers and key employees received a special long-term incentive PRSU award (the “2021 LTIP PRSUs”). The 2021 LTIP PRSUs are generally eligible to be earned based on performance against pre-established performance metrics during our 2023, 2024 and 2025 fiscal years. One-third of the 2021 LTIP PRSUs are eligible to be earned and vest on each of January 1, 2024, January 1, 2025, and January 1, 2026 based on the achievement of performance goals during the one-year period immediately preceding the vesting date (each such one-year period, a “2021 LTIP PRSU Measurement Period”), subject to continued employment on each such vesting date. The number of PRSUs eligible to be earned in respect of each such 2021 LTIP PRSU Measurement Period will be equal to one-third of the target number of PRSUs multiplied by a percentage that corresponds to the level of achievement of our performance goals. The awards are variable in that the PRSUs earned could range from 0 % to 300 % of the target number of PRSUs granted contingent on the performance level attained. Activity of our RSUs and PRSUs is as follows: RSUs PRSUs Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Restricted at December 31, 2021 508,871 $ 15.61 2,818,257 $ 22.38 Granted 148,797 18.96 618,532 21.96 Vested ( 275,656 ) 16.04 ( 466,059 ) 14.24 Forfeited ( 30,067 ) 26.22 ( 410,179 ) 23.90 Outstanding at December 31, 2022 351,945 $ 15.78 2,560,551 $ 23.52 The weighted average grant date fair value of RSUs granted during 2022, 2021, and 2020 was $ 18.96 , $ 24.98 , and $ 8.08 , respectively. The weighted average grant date fair value of PRSUs granted during 2022, 2021, and 2020 was $ 21.96 , $ 22.65 , and $ 8.09 , respectively. Director Stock Units — T he Directors may elect to receive their quarterly retainer fees in the form of Class A common shares that are covered by an active shelf registration statement. The retainers are paid quarterly, in arrears in the form of cash or stock at the Director’s election, and vest upon issuance. These shares are priced at the closing price of the last business day of the calendar quarter. Additionally, Directors are granted an annual award of RSUs of $ 0.1 million on the date of the annual shareholder meeting. The number of RSUs is determined by the closing price of Ranpak stock on that date. These RSUs vest at the earlier of the (i) anniversary of the grant date or (ii) the following annual shareholder meeting. The following table includes the number of shares granted and vested for Directors electing to receive retainer payments in shares : Director Stock Units Quantity Weighted Average Grant Date Fair Value Balance at December 31, 2021 28,364 $ 24.69 Granted 93,652 10.21 Vested ( 70,776 ) 14.92 Balance at December 31, 2022 51,240 $ 11.72 The weighted average grant date fair value of Director Stock Units granted during 2022, 2021, and 2020 was $ 10.21 , $ 23.00 , and $ 7.55 , respectively. Unrecognized compensation cost and weighted average periods remaining for non-vested RSUs and PRSUs as of December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Unrecognized compensation cost RSUs $ 1.9 $ 4.8 PRSUs $ 33.3 $ 51.9 Weighted average remaining period RSUs 0.7 years 1.3 years PRSUs 2.9 years 2.8 years |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Note 21 — Shareholders’ Equity Capital Stock — The Company is authorized to issue 426.0 million shares of capital stock, consisting of (i) 200.0 million shares of Class A common stock, par value $ 0.0001 per share, (ii) 25.0 million shares of Class B common stock, par value $ 0.0001 per share, and (iii) 200.0 million shares of Class C common stock, par value $ 0.0001 per share and (iv) 1.0 million shares of preferred stock, par value $ 0.0001 per share . Common Shares — Each holder of Class A Common Stock (“Class A”) is entitled to one vote for each Class A share held of record. Holders of shares of Class C Common Stock (“Class C”) have no such voting rights and, as such, shall not have the right to receive notice of, attend at or vote on any matters on which stockholders generally are entitled to vote. Class C shares have a right of conversion that upon sale or other transfer convert to Class A shares. In April 2021, a shareholder exercised such right of conversion and converted 3.6 million Class C shares for 3.6 million Class A shares. As previously noted, we sold approximately 5.3 million shares of Class A common stock in the May 2021 Equity Offering for net proceeds of $ 103.4 million . Preferred Shares — Our charter authorizes 1.0 million shares of preferred stock and provides that shares of preferred stock may be issued from time to time in one or more series. The Directors are authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. The Directors are able, without stockholder approval, to issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the common stock and could have anti-takeover effects. As of December 31, 2022 , we had no preferred stock outstanding . Share Repurchase Program — On July 26, 2022, the Directors authorized a general share repurchase program of our Class A common stock of up to $ 50.0 million, with a 36-month expiration. These Class A common stock repurchases may occur in transactions that may include, without limitation, tender offers, open market purchases, accelerated share repurchases, negotiated block purchases, and transactions effected through plans under Rule 10b5-1 of the Securities Exchange Act of 1934. The timing and actual amount of shares repurchased will depend on a variety of different factors and may be modified, suspended or terminated at any time at the discretion of the Directors. We did not repurchase any shares under the repurchase program during the year ended December 31, 2022. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | Note 22 — Earnings (Loss) per Share Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution, if any, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the more dilutive of the two-class method or if-converted method. Diluted EPS excludes potential shares of common stock if their effect is anti-dilutive. If there is a net loss in any period, basic and diluted EPS are computed in the same manner. The two-class method determines net income (loss) per common share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires income available to common shareholders for the period to be allocated between different classes of common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. We apply the two-class method for EPS when computing net income (loss) per Class A and Class C common shares. As of December 31, 2022, we have not issued any instruments that were considered to be participating securities. W eighted average shares of Class A and Class C common stock have been combined in the denominator of basic and diluted earnings (loss) per share because they have equivalent economic rights. The following tables set forth the computation of our loss per share: Year Ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 41.4 ) $ ( 2.8 ) $ ( 23.4 ) Net loss attributable to common stockholders for basic and diluted EPS $ ( 41.4 ) $ ( 2.8 ) $ ( 23.4 ) Denominator: Basic weighted average common shares outstanding 81,877,334 78,542,734 72,434,802 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class A and Class C earnout shares - - - Diluted weighted average common shares outstanding 81,877,334 78,542,734 72,434,802 Loss per share attributable to common stockholders Basic $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Diluted $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Two-class method: Class A Common Stock Basic weighted average common shares outstanding 78,956,235 74,764,709 65,923,509 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class A earnout shares - - - Diluted weighted average common shares outstanding 78,956,235 74,764,709 65,923,509 Proportionate share of net loss $ ( 39.9 ) $ ( 2.7 ) $ ( 21.3 ) Class A – basic earnings (loss) per share $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Class A – diluted earnings (loss) per share $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Class C Common Stock Basic weighted average common shares outstanding 2,921,099 3,778,025 6,511,293 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class C earnout shares - - - Diluted weighted average common shares outstanding 2,921,099 3,778,025 6,511,293 Proportionate share of net loss $ ( 1.5 ) $ ( 0.1 ) $ ( 2.1 ) Class C – basic earnings (loss) per share $ ( 0.51 ) $ ( 0.03 ) $ ( 0.32 ) Class C – diluted earnings (loss) per share $ ( 0.51 ) $ ( 0.03 ) $ ( 0.32 ) The dilutive effect of 0.8 million, 1.1 million, and 0.7 million shares in 2022, 2021, and 2020, respectively, was omitted from the calculation of diluted weighted-average shares outstanding and diluted earnings per share because we were in a loss position. The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive or because milestones were not yet achieved for awards contingent on the achievement of performance milestones: Year Ended December 31, 2022 2021 2020 RSUs and PRSUs 3,144,621 2,298,832 1,040,464 Total antidilutive securities 3,144,621 2,298,832 1,040,464 |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Note 23 — Transactions with Related Parties Shared Services Agreement On June 3, 2019, upon the closing of Ranpak’s business combination with One Madison Corporation, Ranpak entered into a shared services agreement (the “Shared Services Agreement”) with an entity controlled by our chief executive officer, One Madison Group LLC (the “Sponsor”), pursuant to which the Sponsor may provide, or cause to be provided, certain services to Ranpak. The Shared Services Agreement provides for a broad array of potential services, including administrative and “back office” or corporate-type services and requires Ranpak to indemnify the Sponsor in connection with the services provided by the Sponsor to Ranpak. Total fees under the agreement amounted to approximately $ 0.3 million and $ 0.4 million for 2022 and 2021 , respectively. |
Quarterly Financial Date (Unaud
Quarterly Financial Date (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 24 — Quarterly Financial Data (Unaudited) We provide disclosure consistent with Regulation S-K, Item 302(a), which requires disclosure of quarterly financial data when there are one or more retrospective changes that pertain to our Consolidated Statements of Operations and Comprehensive Income (Loss). We have no material retrospective changes to our Consolidated Statements of Operations and Comprehensive Income (Loss) that would warrant such quarterly disclosure. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Ranpak Holdings Corp. Schedule II – Valuation and Qualifying Accounts and Reserves Years Ended December 31, 2022, 2021, 2020 (in millions) Charged to Cost Beginning Balance and Expenses Deductions Ending Balance Allowance for Doubtful Accounts: Year ended December 31, 2022 $ 1.0 $ 0.4 $ ( 0.7 ) $ 0.7 Year ended December 31, 2021 0.5 0.8 ( 0.3 ) 1.0 Year ended December 31, 2020 $ 0.2 $ 0.3 $ - $ 0.5 Inventory Obsolescence Reserve: Year ended December 31, 2022 $ 0.3 $ - $ - $ 0.3 Year ended December 31, 2021 1.0 0.5 ( 1.2 ) 0.3 Year ended December 31, 2020 $ 0.3 $ 0.8 $ ( 0.1 ) $ 1.0 Valuation Allowance for Net Deferred Tax Assets: Year ended December 31, 2022 $ 0.9 $ 0.8 $ ( 0.6 ) $ 1.1 Year ended December 31, 2021 1.1 - ( 0.2 ) 0.9 Year ended December 31, 2020 $ 1.3 $ 0.2 $ ( 0.4 ) $ 1.1 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries prepared in conformity with U.S. GAAP. All intercompany balances and transactions have been eliminated in consolidation and certain immaterial prior year amounts have been reclassified consistent with current year presentation. All amounts are in millions, except share and per share amounts and are approximate due to rounding. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, among other items, assessing the collectability of receivables, asset retirement obligations, the use and recoverability of inventory, the estimation of fair value of financial instruments, the estimation of fair value of acquired assets and liabilities in a business combination and related purchase price allocation, assumptions used in the calculation of income taxes, useful lives and recoverability of tangible assets and goodwill and other intangible assets, costs for incentive compensation and accruals for commitments and contingencies. We review these estimates and assumptions periodically using historical experience and other factors and reflect the effects of any revisions in the consolidated financial statements in the period we determine any revisions to be necessary. Actual results could differ from these estimates and such differences could be material. |
Revenue Recognition | Revenue Recognition — Revenue from contracts with customers is recognized under ASC 606 using a five-step model consisting of the following: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. Performance obligations are satisfied when we transfer control of a good or service to a customer, which can occur over time or at a point in time. The amount of revenue recognized is based on the consideration to which we expect to be entitled in exchange for those goods or services, including the expected value of variable consideration. The customer’s ability and intent to pay the transaction price is assessed in determining whether a contract exists with the customer. If collectability of substantially all of the consideration in a contract is not probable, consideration received is not recognized as revenue unless the consideration is nonrefundable and we no longer have an obligation to transfer additional goods or services to the customer or collectability becomes probable. We sell our products to end-users primarily through an established distributor network and direct sales to select end-users. Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net revenue on the Consolidated Statements of Operations. Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. When we estimate our rebate accruals, we consider customer-specific contractual commitments including stated rebate rates and history of actual rebates paid. Our rebate accruals are reviewed at each reporting period and adjusted to reflect data available at that time. We adjust the accruals to reflect any differences between estimated and actual amounts. These adjustments impact the amount of net revenue recognized by us in the period of adjustment. Charges for rebates and other allowances were approximately 10.0 %, 7.4 %, and 10.9 % of revenue in 2022, 2021, and 2020 respectively. Refer to Note 8, “ Revenue Recognition, Contracts with Customers ,” for further discussion of revenue. We recognize incremental costs to obtain a contract as an expense when incurred if the amortization period of the asset that otherwise would have been recognized is one year or less. For example, we generally expense sales commissions when incurred because the contract term is less than one year. These costs are recorded within SG&A expenses. |
Shipping and Handling Costs | Shipping and Handling Costs — Costs incurred for the transfer and delivery of goods to customers are recorded as a component of cost of goods sold. Shipping and handling costs totaled $ 5.7 million, $ 8.3 million, and $ 4.8 million in 2022, 2021, and 2020 respectively. |
Advertising Costs | Advertising Costs — Advertising cost includes cost associated with trade shows. We expense advertising costs as incurred within SG&A expense. Advertising cost totaled $ 1.1 million, $ 0.9 million, and $ 0.7 million in 2022, 2021, and 2020 respectively. |
R&D Costs | R&D Costs — Typically, we expense R&D costs as incurred, however, we may capitalize into other assets certain R&D costs that are associated with R&D activities that lead to constructed assets with alternative future uses. Capitalized costs are then amortized into R&D expense. R&D expense and amortization of capitalized R&D assets are included within other operating expense, net and collectively totaled $ 3.6 million, $ 1.7 million, and $ 2.3 million in 2022, 2021, and 2020 respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include securities with original maturities of three months or less and cash in banks. In June 2021, we invested $ 70.0 million in a money market fund, which is classified as a cash equivalent because of its short-term, highly liquid nature that is readily convertible to cash. Unrealized gains or losses are included in other non-operating expense, net. Unrealized gains were $ 0.5 million in 2022 and were immaterial in 2021. The balance was approximately $ 30.5 million and $ 70.0 million at December 31, 2022 and 2021, respectively. The fair value of money market funds is considered Level 1 in the fair value hierarchy because they are securities traded in active markets. Refer to Note 14, “ Fair Value Measurement ” for further detail. In May 2021, we completed a public offering of 4.5 million shares of Class A common stock. Additionally, the underwriters completed the exercise of an allotment option to sell an additional 0.8 million shares (the public offering and the allotment option collectively referred to as the “May 2021 Equity Offering”). Cash proceeds received in the May 2021 Equity Offering, net of underwriting fees, commissions, and transaction expenses, were $ 103.4 million. We used some of the proceeds to invest in a money market fund to generate short-term cash returns. Additionally, we prepaid $ 20.9 million of principal on the First Lien Dollar Term Facility in the June 2021 Prepayment. Refer to Note 11, “ Long-Term Debt ” for further detail. |
Accounts Receivable | Accounts Receivable — We provide credit in the normal course of business to our customers and do not require collateral. Trade receivables, less allowance for doubtful accounts, reflect the net realizable value of receivables and approximate fair value. We maintain an allowance against accounts receivable for the estimated probable losses on uncollectible accounts and sales returns and allowances. The valuation reserve is based upon geographic historical loss experience, current economic conditions within the industries we serve as well as determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt, or, if later, as proscribed by statutory regulations. |
Inventories | Inventories — Inventories consist of unprocessed and finished paper, as well as materials to produce automation machines. Inventories are stated at the lower of cost or net realizable value. Cost for all inventories is determined using a weighted average cost method applied on a consistent basis. An allowance for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, estimates of future sales expectations and salvage value. Refer to Note 4 “ Inventories, net” for further detail. |
Property, Plant and Equipment | Property, Plant, and Equipment — Property, plant, and equipment, including amounts under finance lease, are stated at cost less accumulated depreciation. Renewals and betterments that substantially extend the useful life of an asset are capitalized and depreciated. Leasehold improvements are depreciated over the lesser of the useful life of the asset or the applicable lease term. Depreciation and amortization are computed using the straight-line method over the estimated useful lives as follows: Estimated Useful Lives Buildings and improvements 2 – 20 years Machinery and equipment 2 – 10 years Converting machines 2 – 5 years Computer and office equipment 2 – 10 years We consider converting machines that are returned for reconditioning to be only temporarily idled for a short period of time before they are returned to productive use, where we will continue to receive the ongoing benefit of the asset. Therefore, depreciation on these converting machines is not paused or ceased. When a converting machine undergoes a significant reconditioning, the useful life is evaluated and extended based on management’s judgement. Refer to Note 5 “ Property, Plant, and Equipment, net” for further detail. |
Capitalized Cloud-Based Software Implementation Costs | Capitalized Cloud-Based Software Implementation Costs — We are engaged with third party software service providers for cloud computing hosting arrangements for various functions across our business, including our ERP system, human resources information system, and customer relationship management system. In these arrangements, we do not take possession of the software, rather the software resides on the service providers’ hardware and we access it remotely. Costs associated with implementation of cloud-based software are capitalized into other assets, then amortized over seven years into SG&A expenses. The net balance of capitalized cloud-based software implementation costs was $ 18.3 million at December 31, 2022. Amortization expense of capitalized cloud-based software implementation costs was $ 2.8 million in 2022. Amounts in 2021 and 2020 were no t material. |
Goodwill and Identifiable Intangible Assets, net | Goodwill and Identifiable Intangible Assets, net — Goodwill represents the excess of the total purchase consideration over the fair value of the underlying net assets, largely arising from the assembled workforce, new customers and the replacement of customer and technology attrition. Goodwill is not subject to amortization but is tested for impairment annually as of October 1 st , through a qualitative or quantitative assessment and when events and circumstances indicate that the estimated fair value of a reporting unit may no longer exceed its carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Identifiable intangible assets consist primarily of patents, customer/distributor relationships, trademarks, and other intellectual property. We amortize definite lived identifiable assets over the shorter of their stated or statutory duration or their estimated useful lives, generally ranging from 10 to 15 years, on a straight-line basis and periodically review them for impairment. Trademarks are accounted for as indefinite-lived intangible assets and, accordingly, are not subject to amortization. We use the acquisition method of accounting for all business combinations and do not amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the fourth quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired. See Note 9, “ Goodwill, Long-Lived and Intangible Assets, net ” and Note 5, “ Property, Plant, and Equipment, net ” for further details. |
Impairment of Long-Lived assets | Impairment of Long-Lived Assets — We review our long-lived assets, including definite-lived intangible assets and property, plant, and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. For long-lived assets, an impairment loss is indicated when the undiscounted future cash flows estimated to be generated by the asset group are not sufficient to recover the carrying value of the asset group. If indicators exist, the loss is measured as the excess of carrying value over the asset group’s fair value, as determined based on discounted future cash flows, asset appraisals or market values of similar assets. See Note 9, “ Goodwill, Long-Lived and Intangible Assets, net ” and Note 5, “ Property, Plant, and Equipment, net ” for further details. |
Derivative Financial Instruments | Derivative Financial Instruments — We use derivatives as part of the normal business operations to manage our exposure to fluctuations in interest rates associated with variable interest rate debt and adverse fluctuations in foreign currency exchange rates and to decrease the volatility of cash flows affected by these fluctuations. We have established policies and procedures that govern the risk management of these exposures. We use interest rate swap contracts to manage interest rate exposures. Derivatives are recorded in the Consolidated Balance Sheets at fair value in accrued liabilities and other and derivative instruments. Changes in the fair value of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income (loss), and subsequently reclassified into earnings in the period the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, the change in fair value of the derivative is recognized directly in earnings. The changes in the fair values of derivatives not designated as hedges are recognized directly in earnings, as a component of interest expense. Prior to September 25, 2019, we did not apply hedge accounting to our outstanding interest rate swap, and changes in fair value were recorded directly to interest expense. We hedge some of our exposure to foreign currency translation with a cross-currency swap, designated as a net investment hedge. A cross-currency swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. The change in fair value of the cross-currency swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the cross-currency swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the cross-currency swap to its maturity. See Note 12, “ Derivative Instruments ,” for further details. |
Foreign Currency | Foreign Currency — The nature of business activities involves the management of various financial and market risks, including those related to changes in foreign currency exchange rates. The functional currency of our operating subsidiaries outside the U.S. is the applicable local currency. For those operations, assets and liabilities are translated at period-end exchange rates into Euros, then into USD. Revenues and expenses are translated using average monthly exchange rates into Euros, then into USD. |
Commitments, Contingencies, and Litigation | Commitments, Contingencies, and Litigation — On an ongoing basis, we assess the potential liabilities related to any lawsuits or claims brought against us. While it is typically very difficult to determine the timing and ultimate outcome of these actions, we use our best judgment to determine if it is probable that we will incur an expense related to the settlement or final adjudication of these matters and whether a reasonable estimation of the probable loss, if any, can be made. In assessing probable losses, we make estimates of the amount of insurance recoveries, if any. We accrue a liability when we believe a loss is probable and the amount of loss can be reasonably estimated. Due to the inherent uncertainties related to the eventual outcome of litigation and potential insurance recovery, it is possible that disputed matters may be resolved for amounts materially different from any provisions or disclosures that we have previously made. We expense legal costs as incurred. |
Stock-Based Compensation | Stock-Based Compensation — The Ranpak Holdings Corp. 2019 Omnibus Incentive Plan (the “2019 Plan”) rewards employees and other individuals to perform at their highest level and contribute significantly to the success of the Company. The 2019 Plan is an omnibus plan that may provide these incentives through grants of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSU” or “RSUs”), performance awards, other cash-based awards and other stock-based awards to employees, directors, or consultants of the Company. At the annual meeting in May 2021, shareholders approved an amendment to the 2019 Plan (the “Amended Plan” ) that authorized an additional 9.0 million shares for issuance for future awards. We record stock-based compensation awards exchanged for employee services at fair value on the date of grant and record the expense for these awards in cost of sales and in SG&A expenses, as applicable, on our Consolidated Statements of Operations over the requisite employee service period. Stock-based compensation expense includes actual forfeitures incurred. For performance-based awards, we reassess at each reporting date whether achievement of the performance condition is probable and accrue compensation expense if and when achievement of the performance condition is probable. See Note 20, “ Stock-Based Compensation ” for further information on the 2019 Plan, the Amended Plan, and stock-based compensation expense. |
Employee Benefit Plans | Employee Benefit Plans — Our U.S. employees participate in a defined contribution plan and health and life insurance plans sponsored by the Company. A subsidiary, Ranpak B.V., participates in a multiemployer benefit plan – Corporate Pension Fund for Cardboard and Flexible Packaging Business (the “B.V. Plan”) – in the Netherlands, which provides retirement benefits to all Ranpak B.V. employees. As a participant in the multi-employer benefit plan, we recognize expense in each period for the required contributions to the multi-employer benefit plans. See Note 15, “ Employee Benefit Plans ” for further information about our benefit plans. |
Income Taxes | Income Taxes — We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, management considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we will be able to realize our deferred tax assets in the future in excess of their net recorded amount, we will make an adjustment to the deferred tax asset valuation allowance, which will reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (i) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more-likely than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. See Note 16, “ Income Taxes ” for further detail. |
Leases | Leases — We lease automobiles, machinery, equipment, and warehouse and office buildings. We account for these leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities. The right-of-use asset represents our right to use underlying assets for the lease term and the lease liability represents our obligation to make lease payments under the leases. We determine if an arrangement is or contains a lease at contract inception and exercise judgment and apply certain assumptions when determining the discount rate, lease term, and lease payments. ASC 842 requires a lessee to record a lease liability based on the discounted unpaid lease payments using the interest rate implicit in the lease or, if the rate cannot be readily determined, the incremental borrowing rate. Generally, we do not have knowledge of the rate implicit in the lease and, therefore, we use the incremental borrowing rate for a lease. The lease term includes the non-cancelable period of the lease plus any additional periods covered by an option to extend that we are reasonably certain to exercise. For lease agreements that include lease and non-lease components, we combine lease and non-lease components for all classes of assets. Additionally, we elected to not record on the balance sheet leases with a term of twelve months or less. Refer to Note 17, “ Leases ” for further detail. Additionally, our revenue associated with our PPS business contains (i) a non-lease component (the paper consumables) accounted for as revenue under ASC 606 and (ii) a lease component (our PPS systems) accounted for as machine lease revenue under ASC 842. Machine lease revenue is recognized on a straight-line basis over the terms of the PPS systems agreements with customers, which have durations of less than one year. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) — Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss) amounts attributable to foreign currency translation adjustments and the effect of our interest rate swap agreements and cross-currency swap agreement, net of tax, as applicable. |
Net Earnings (Loss) per Share | Net Earnings (Loss) per Share — Basic earnings per common share is calculated by dividing net earnings available to common stockholders by the weighted average number of common shares outstanding for the period. The two-class method is an earnings allocation formula that calculates basic and diluted net earnings per common share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. When calculating diluted net earnings per common share, the more dilutive effect of applying either of the following is presented: (a) the two-class method (described above) assuming that the participating security is not exercised or converted, or, (b) the treasury stock method for the participating security. Currently, we do not pay dividends or have any undistributed earnings, therefore, the calculation of diluted earnings per share is the same for either method. See Note 22, “ Earnings (Loss) per Share ” for further details. |
Emerging Growth Company | Emerging Growth Company — Section 102(b)(1) of the JOBS Act exempts an EGC from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act of 1933, as amended, registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. Previously, we elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an EGC, were allowed to adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with another public company that is not an EGC or that is an EGC which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. We ceased to be an EGC on December 31, 2021 . |
Investments in Small Private Businesses | Investments in Small Private Businesses — In the third quarter of 2021, we paid consideration of $ 9.2 million in exchange for minority ownership interests in Pickle and Creapaper. We do not have power to direct the activities of these businesses and do not have significant economic exposure related to these investments. These investments do not require consolidation in our consolidated financial statements. In the third quarter of 2022, we invested an additional $ 2.1 million in Pickle. Further, we adjusted the carrying value of our initial investment in Pickle due to an observable price change for a similar or identical investment, a Level 2 fair value measurement. This resulted in an unrealized gain of $ 3.9 million, which is recorded in other non-operating expense (income), net in the Consolidated Financial Statements. The adjusted value of our investment in Pickle, both individually and collectively with Creapaper, continues to be immaterial to our consolidated financial statements. |
Supplemental Cash Flow Information and Non-Cash Investing Activities | Supplemental Cash Flow Information and Non-Cash Investing Activities — Supplemental cash flow information is as follows: Year Ended December 31, 2022 2021 2020 Supplemental cash flow information Interest paid $ 20.5 $ 21.7 $ 22.5 Income taxes paid 2.7 8.4 3.7 Non-cash increase in asset retirement obligation $ - $ - $ 0.7 Non-cash investing activities Right-of-use assets obtained in exchange for lease liabilities $ 2.4 $ 11.4 $ - Equipment purchased under capital leases (ASC 840) - - 0.3 Capital expenditures in accounts payable $ 0.1 $ - $ 2.4 |
Recently Adopted Accounting Standards and Recently Issued Accounting Standards | Recently Adopted Accounting Standards — We have adopted all applicable accounting standards and did not adopt any new accounting standards by the FASB in 2022. Recently Issued Accounting Standards — In December 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”), which gives optional guidance to provide relief for reference rate reform, where certain transactions have transitioned or are transitioning away from the London Interbank Offered Rate (“LIBOR”) to other reference rates. Certain tenors of USD LIBOR are transferring from LIBOR by June 30, 2023, including one-month and three-month USD LIBOR, on which our existing indebtedness and interest rate swap agreements are based. ASU 2022-06 defers the sunset date of ASC Topic 848, Reference Rate Reform (“ASC 848”) from December 31, 2022 to December 31, 2024 to ensure the relief in ASC 848 covers the period of time during which a significant number of modifications may take place. We are evaluating the effects of ASC 848 on the First Lien Term Dollar Facility and our interest rate swap agreements, as well as the impact on our financial statements and disclosures. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment Estimated Useful Lives | Depreciation and amortization are computed using the straight-line method over the estimated useful lives as follows: Estimated Useful Lives Buildings and improvements 2 – 20 years Machinery and equipment 2 – 10 years Converting machines 2 – 5 years Computer and office equipment 2 – 10 years |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information is as follows: Year Ended December 31, 2022 2021 2020 Supplemental cash flow information Interest paid $ 20.5 $ 21.7 $ 22.5 Income taxes paid 2.7 8.4 3.7 Non-cash increase in asset retirement obligation $ - $ - $ 0.7 Non-cash investing activities Right-of-use assets obtained in exchange for lease liabilities $ 2.4 $ 11.4 $ - Equipment purchased under capital leases (ASC 840) - - 0.3 Capital expenditures in accounts payable $ 0.1 $ - $ 2.4 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Components of Accounts Receivable, Net | The components of accounts receivable, net were as follows: December 31, 2022 December 31, 2021 Accounts receivable $ 33.7 $ 44.7 Allowance for doubtful accounts ( 0.7 ) ( 1.0 ) Accounts receivable, net $ 33.0 $ 43.7 |
Inventories, Net Inventories, N
Inventories, Net Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Net | The components of inventories, net were as follows: December 31, 2022 December 31, 2021 Raw materials $ 12.4 $ 19.5 Work-in-process 5.7 1.2 Finished goods 7.2 12.5 Total inventories 25.3 33.2 Reserve for obsolescence ( 0.3 ) ( 0.3 ) Inventories, net $ 25.0 $ 32.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The components of property, plant and equipment, net were as follows: December 31, 2022 December 31, 2021 Land $ 4.0 $ 4.1 Buildings and improvements 13.3 9.2 Machinery and equipment 34.0 22.3 Computer and office equipment 11.5 12.7 Converting machines 182.8 164.1 Total property, plant, and equipment 245.6 212.4 Accumulated depreciation ( 121.6 ) ( 86.1 ) Property, plant, and equipment, net $ 124.0 $ 126.3 Depreciation expense recorded in cost of goods sold and depreciation and amortization expense in the Consolidated Statements of Operations was as follows: Year Ended December 31, Depreciation expense included in 2022 2021 2020 Cost of goods sold $ 36.8 $ 38.6 $ 31.1 Depreciation and amortization expense 3.4 5.5 2.9 Total depreciation expense $ 40.2 $ 44.1 $ 34.0 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities and Other | The components of accrued liabilities and other were as follows: December 31, 2022 December 31, 2021 Employee compensation $ 2.1 $ 1.5 Taxes 3.4 6.9 Professional fees 0.8 4.6 Bonus 0.7 10.1 Interest 1.9 1.7 Interest rate swap liability, current portion - 3.8 Other 1.7 2.9 Accrued liabilities and other $ 10.6 $ 31.5 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | We attribute revenue and gross profit to individual countries based on the selling location. Our products are primarily sold from North America and Europe. As previously noted, segment gross profit includes certain depreciation and amortization expenses that are included in cost of goods sold : Year Ended December 31, 2022 2021 2020 Revenue North America $ 134.7 $ 146.9 $ 127.4 Europe/Asia 191.8 237.0 170.8 Net revenue 326.5 383.9 298.2 Segment gross profit North America 41.8 53.9 50.7 Europe/Asia 57.8 95.0 71.9 Gross profit 99.6 148.9 122.6 Expenses excluded from segment gross profit Selling, general and administrative expenses 105.5 98.3 72.5 Transaction costs - - 2.2 Depreciation and amortization expense 32.1 35.0 31.5 Other operating expense, net 4.5 3.4 4.7 Interest expense 20.7 22.4 30.2 Foreign currency (gain) loss ( 2.2 ) ( 5.3 ) 6.1 Other non-operating income, net ( 4.3 ) - - Loss before income tax benefit $ ( 56.7 ) $ ( 4.9 ) $ ( 24.6 ) Our customers are not concentrated in any specific geographic region. During 2022, 2021, and 2020 , no customers exceeded 10 % of net revenue. The following table presents our long-lived assets by segment and geographic location: December 31, 2022 December 31, 2021 North America $ 65.4 $ 62.1 Europe/Asia 64.6 64.2 Total long-lived assets $ 130.0 $ 126.3 |
Revenue Recognition, Contract_2
Revenue Recognition, Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Deferred Revenue | Our enforceable contractual obligations have durations of less than one year and are included in current liabilities on the Consolidated Balance Sheets. During 2022 and 2021, substantially all of the beginning balance of deferred revenue was recognized into revenue. Beginning and ending balances of deferred revenue were as follows: Year Ended December 31, 2022 2021 Beginning balance $ 3.1 $ 1.4 Ending balance $ 0.9 $ 3.1 |
Revenue from Contracts with Customers Summarized by Segment Geography | In addition to the disaggregation of revenue between paper, machine lease, and other revenue, we also disaggregate our revenue by segment geography to assist in evaluating the nature, timing, and uncertainty of revenue and cash flows that may be impacted by economic factors: Year Ended December 31, 2022 2021 2020 ASC 606 North America $ 111.0 $ 126.7 $ 110.9 Europe/Asia 165.4 209.5 147.7 Total paper and other revenue $ 276.4 $ 336.2 $ 258.6 ASC 842 Machine lease revenue $ 50.1 $ 47.7 $ 39.6 Net revenue $ 326.5 $ 383.9 $ 298.2 |
Goodwill, Long-Lived and Inta_2
Goodwill, Long-Lived and Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Balances by Operating Segment | The following table shows our goodwill balances by operating segment that are aggregated into one reportable segment: North America Europe Total Balance at December 31, 2020 $ 338.8 $ 119.6 $ 458.4 Acquisitions - 3.3 3.3 Currency translation - ( 8.7 ) ( 8.7 ) Balance at December 31, 2021 338.8 114.2 453.0 Currency translation - ( 6.3 ) ( 6.3 ) Balance at December 31, 2022 $ 338.8 $ 107.9 $ 446.7 |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives: December 31, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer/distributor relationships $ 195.5 $ ( 46.5 ) $ 149.0 $ 201.7 $ ( 34.6 ) $ 167.1 Patented/unpatented technology 171.6 ( 55.0 ) 116.6 171.9 ( 39.4 ) 132.5 Intellectual property 0.5 ( 0.2 ) 0.3 0.6 ( 0.1 ) 0.5 Total definite-lived intangible assets 367.6 ( 101.7 ) 265.9 374.2 ( 74.1 ) 300.1 Trademarks/tradenames with indefinite lives 106.2 - 106.2 106.4 - 106.4 Identifiable intangible assets, net $ 473.8 $ ( 101.7 ) $ 372.1 $ 480.6 $ ( 74.1 ) $ 406.5 |
Finite-lived Intangible Assets Amortization Expense | The following table shows the remaining estimated amortization expense for our definite-lived intangible assets at December 31, 2022: Year Amount 2023 $ 29.0 2024 28.9 2025 28.4 2026 28.1 2027 27.9 Thereafter 123.6 $ 265.9 |
Schedule of Finite-Lived Intangible Assets | The following table shows the remaining weighted-average useful life of our definite lived intangible assets as of December 31, 2022: Remaining Weighted-Average Useful Life December 31, 2022 December 31, 2021 Customer/distributor relationships 11 years 12 years Patented/unpatented technology 8 years 9 years Intellectual property 7 years 7 years Total identifiable assets, net with definite lives 10 years 11 years |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: December 31, 2022 December 31, 2021 First Lien Dollar Term Facility $ 250.0 $ 250.0 First Lien Euro Term Facility 145.4 155.0 Finance lease liabilities 1.5 1.5 Deferred financing costs, net ( 3.9 ) ( 5.1 ) Total debt 393.0 401.4 Less: current portion of long-term debt ( 0.6 ) ( 0.4 ) Less: current portion of finance lease liabilities ( 0.7 ) ( 0.6 ) Long-term debt $ 391.7 $ 400.4 |
Schedule of Maturities of Long-term Debt | Maturities of the First Lien Term Facility at December 31, 2022 are as follows: Year Ended Amount 2023 $ 1.5 2024 1.5 2025 1.5 2026 390.9 2027 - Thereafter - Total $ 395.4 |
Schedule of Deferred Financing Costs | The following table presents deferred financing costs as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Deferred financing costs $ 12.7 $ 12.7 Accumulated amortization ( 8.3 ) ( 6.8 ) Deferred financing costs, net $ 4.4 $ 5.9 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | A summary of our interest rate swaps is as follows: Interest Rate Swap Agreements Designation Maturity Date Rate Notional Value Debt Instrument Hedged Percentage of Debt Instrument Outstanding December 31, 2022 September 2019 Swap Cash flow hedge June 1, 2023 1.50 % $ 50.0 First Lien Dollar Term Facility 20 % Second Amended January 2019 Swap Cash flow hedge June 1, 2024 2.09 % 200.0 First Lien Dollar Term Facility 80 % $ 250.0 100 % December 31, 2021 September 2019 Swap Cash flow hedge June 1, 2023 1.50 % $ 50.0 First Lien Dollar Term Facility 20 % Second Amended January 2019 Swap Cash flow hedge June 1, 2024 2.09 % 200.0 First Lien Dollar Term Facility 80 % $ 250.0 100 % |
Schedule of Derivative Assets at Fair Value | The following table summarizes the total fair value of derivative assets and liabilities and the respective classification in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. The net amount of derivatives can be reconciled to the tabular disclosure of fair value in Note 14, “ Fair Value Measurement ”: Assets (Liabilities) Balance Sheet Classification December 31, 2022 December 31, 2021 Interest Rate Swap Agreements Designated as cash flow hedges Accrued liabilities and other $ - $ ( 3.8 ) Designated as cash flow hedges Derivative instruments - ( 2.4 ) Designated as cash flow hedges Prepaid expenses and other current assets 6.3 - Designated as cash flow hedges Other assets 1.8 - $ 8.1 $ ( 6.2 ) Cross-Currency Swap Agreement Designated as net investment hedge Other assets $ - $ 2.3 Designated as net investment hedge Derivative instruments ( 3.7 ) - $ ( 3.7 ) $ 2.3 |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the total fair value of derivative assets and liabilities and the respective classification in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. The net amount of derivatives can be reconciled to the tabular disclosure of fair value in Note 14, “ Fair Value Measurement ”: Assets (Liabilities) Balance Sheet Classification December 31, 2022 December 31, 2021 Interest Rate Swap Agreements Designated as cash flow hedges Accrued liabilities and other $ - $ ( 3.8 ) Designated as cash flow hedges Derivative instruments - ( 2.4 ) Designated as cash flow hedges Prepaid expenses and other current assets 6.3 - Designated as cash flow hedges Other assets 1.8 - $ 8.1 $ ( 6.2 ) Cross-Currency Swap Agreement Designated as net investment hedge Other assets $ - $ 2.3 Designated as net investment hedge Derivative instruments ( 3.7 ) - $ ( 3.7 ) $ 2.3 |
Schedule of Derivative Instruments, Gain (Loss) | The following table presents the effect of our derivative financial instruments on our Consolidated Statements of Operations. The income effects of our derivative activities are reflected in interest expense: Year Ended December 31, 2022 2021 2020 Total interest expense presented in the statement of operations $ 20.7 $ 22.4 $ 30.2 Interest rate swap agreements designated as cash flow hedges ( 0.1 ) 3.9 2.2 Cross-currency swap agreement designated as net investment hedge, amounts excluded from effectiveness testing $ ( 1.2 ) $ ( 0.3 ) $ - The activity of our derivative financial instruments is reflected in cash flows from operating activities in our Consolidated Statements of Cash Flows. The cash inflow of $ 10.0 million from the settlements of net investment hedges in 2022 in reflected in cash flows from investing activities in our Consolidated Statements of Cash Flows. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Components of AOCI | The components of accumulated other comprehensive income (loss) at December 31, 2022 and December 31, 2021 were as follows: December 31, 2022 Gross Balance Tax Effect Net Balance Foreign currency translation $ ( 8.0 ) $ - $ ( 8.0 ) Unrealized gain (loss) on interest rate swaps 11.0 ( 2.4 ) 8.6 Unrealized gain (loss) on cross-currency swap ( 3.9 ) 0.9 ( 3.0 ) Realized gain (loss) on cross-currency swap 10.0 ( 2.4 ) 7.6 Total $ 9.1 $ ( 3.9 ) $ 5.2 December 31, 2021 Gross Balance Tax Effect Net Balance Foreign currency translation $ 2.5 $ - $ 2.5 Unrealized gain (loss) on interest rate swaps ( 3.2 ) 1.0 ( 2.2 ) Unrealized gain (loss) on cross-currency swap 2.9 ( 0.6 ) 2.3 Total $ 2.2 $ 0.4 $ 2.6 The following table presents the changes in accumulated other comprehensive income (loss) by component for 2022 and 2021: Year Ended December 31, 2022 Foreign currency translation Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on cross-currency swap Realized gain (loss) on cross-currency swap Total Beginning balance $ 2.5 $ ( 2.2 ) $ 2.3 $ - $ 2.6 Other comprehensive income (loss) before reclassifications ( 10.5 ) 14.0 ( 5.6 ) 7.6 5.5 Amounts reclassified from accumulated other comprehensive income (loss) - ( 3.2 ) 0.3 - ( 2.9 ) Ending balance $ ( 8.0 ) $ 8.6 $ ( 3.0 ) $ 7.6 $ 5.2 Year Ended December 31, 2021 Foreign currency translation Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on cross-currency swap Realized gain (loss) on cross-currency swap Total Beginning balance $ 17.9 $ ( 7.2 ) $ - $ - $ 10.7 Other comprehensive income (loss) before reclassifications ( 15.4 ) 11.2 2.0 - ( 2.2 ) Amounts reclassified from accumulated other comprehensive income (loss) - ( 6.2 ) 0.3 - ( 5.9 ) Ending balance $ 2.5 $ ( 2.2 ) $ 2.3 $ - $ 2.6 |
Summary of Reclassification of Accumulated Other Comprehensive Income (Loss) | The following tables present the reclassifications out of accumulated other comprehensive income (loss) for 2022, 2021, and 2020: Year Ended December 31, 2022 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ ( 0.1 ) Interest expense, net Interest rate swap agreements – tax effect 3.3 Income tax expense Cross-currency swap agreement ( 1.2 ) Interest expense, net Cross-currency swap agreement – tax effect 0.9 Income tax expense Total reclassifications $ 2.9 Net of tax Year Ended December 31, 2021 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ 3.9 Interest expense, net Interest rate swap agreements – tax effect 2.3 Income tax expense Cross-currency swap agreement ( 0.3 ) Interest expense, net Cross-currency swap agreement – tax effect - Income tax expense Total reclassifications $ 5.9 Net of tax Year Ended December 31, 2020 Details about accumulated other comprehensive income (loss) Reclassification Affected line item on statement Change in fair value of derivative swap agreements Interest rate swap agreements $ 2.5 Interest expense, net Tax effect ( 2.4 ) Income tax benefit Total reclassifications $ 0.1 Net of tax |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following table provides the carrying amounts, estimated fair values and the respective fair value measurements of our financial instruments as of December 31, 2022 and December 31, 2021: Fair Value Measurements Carrying Amount Level 1 Level 2 Level 3 December 31, 2022 Money market fund $ 30.5 $ 30.5 $ - $ - Current and long-term debt 396.9 - 388.7 - Interest rate swap agreements 8.1 - 8.1 - Cross-currency swap agreement $ 3.7 $ - $ 3.7 $ - December 31, 2021 Money market fund $ 70.0 $ 70.0 $ - $ - Current and long-term debt 406.5 - 406.5 - Interest rate swap agreements 6.2 - 6.2 - Cross-currency swap agreement $ 2.3 $ - $ 2.3 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of earnings and loss before income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Domestic $ ( 40.0 ) $ ( 8.6 ) $ ( 26.8 ) Foreign ( 16.7 ) 3.7 2.2 Total $ ( 56.7 ) $ ( 4.9 ) $ ( 24.6 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of our income tax expense (benefit) were as follows: Year Ended December 31, 2022 2021 2020 Current tax expense Federal $ 0.2 $ 2.1 $ ( 0.5 ) State 0.5 1.1 0.3 Foreign 3.7 7.5 4.0 Total current tax expense 4.4 10.7 3.8 Deferred tax expense (benefit) Federal ( 9.7 ) ( 6.8 ) ( 3.8 ) State ( 2.1 ) ( 1.1 ) ( 1.9 ) Foreign ( 7.9 ) ( 4.9 ) 0.7 Total deferred tax benefit ( 19.7 ) ( 12.8 ) ( 5.0 ) Total income tax benefit $ ( 15.3 ) $ ( 2.1 ) $ ( 1.2 ) |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2022 2021 2020 Income tax benefit at statutory rate $ ( 11.9 ) $ ( 1.0 ) $ ( 5.2 ) U.S. state income taxes ( 1.7 ) ( 0.1 ) ( 1.7 ) Tax related to foreign activities ( 0.9 ) 0.1 0.4 U.S. federal tax credits ( 0.1 ) ( 0.1 ) ( 0.4 ) Return to provision adjustments ( 0.4 ) ( 1.2 ) 0.5 Remeasurement of deferred taxes - 0.8 3.8 Stock-based compensation windfall ( 0.8 ) ( 1.0 ) - Global intangible low-taxed income - - 1.3 Non-deductible compensation 0.2 0.5 - Foreign-derived intangible income deduction - ( 1.2 ) ( 0.1 ) Uncertain tax positions 0.1 0.9 - Other, net 0.2 0.2 0.2 Income tax benefit $ ( 15.3 ) $ ( 2.1 ) $ ( 1.2 ) Effective tax rate 27.3 % 42.7 % 6.2 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) consisted of the following: December 31, 2022 December 31, 2021 Deferred tax assets Unrealized foreign currency exchange $ - $ 0.3 Stock-based compensation 8.4 5.4 Net operating losses and credits 2.1 1.3 Non-deductible interest carryforward 10.1 6.0 Other 1.6 1.0 Total deferred tax assets 22.2 14.0 Valuation allowance ( 1.1 ) ( 0.9 ) Deferred tax assets, net 21.1 13.1 Deferred tax liabilities Depreciation ( 7.1 ) ( 10.9 ) Amortization ( 90.7 ) ( 100.1 ) Derivative instruments ( 1.8 ) - Unrealized foreign currency exchange ( 1.9 ) - Total deferred tax liabilities ( 101.5 ) ( 111.0 ) Deferred tax liabilities, net before unrecognized tax benefits ( 80.4 ) ( 97.9 ) Deferred tax impact of unrecognized tax benefits 0.2 0.2 Deferred tax assets (liabilities), net after unrecognized tax benefits $ ( 80.2 ) $ ( 97.7 ) |
Schedule of Unrecognized Tax Benefits | The components of our unrecognized tax benefits were as follows: Year Ended December 31, 2022 2021 2020 Unrecognized income tax benefits at the beginning of the period $ 1.8 $ 2.9 $ 1.4 Increases related to prior year tax positions - 0.7 - Decreases related to prior year tax positions - ( 1.6 ) - Increases related to current year tax positions 0.2 - 1.4 Foreign currency impact ( 0.1 ) ( 0.2 ) 0.1 Unrecognized income tax benefits at the end of the period $ 1.9 $ 1.8 $ 2.9 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Operating Leases and Finance Leases included in Condensed Consolidated Balance Sheets | Operating leases and finance leases are included in the Consolidated Balance Sheets as follows: Classification December 31, 2022 December 31, 2021 Lease assets Operating lease right-of-use assets, net Assets $ 6.0 $ 6.6 Finance lease right of use assets, net Property, plant, and equipment, net 1.4 1.5 Total lease assets $ 7.4 $ 8.1 Lease liabilities Operating lease liabilities, current Current liabilities $ 2.0 $ 2.4 Operating lease liabilities, non-current Non-current liabilities 4.0 4.3 Finance lease liabilities, current Current portion of long-term debt 0.7 0.6 Finance lease liabilities, non-current Long-term debt 0.8 0.9 Total lease liabilities $ 7.5 $ 8.2 |
Summary of Components of Lease Costs | The components of lease costs, which are included in income (loss) from operations in our Consolidated Statements of Operations, were as follows: Year Ended December 31, 2022 2021 Operating leases Operating lease costs $ 3.2 $ 2.8 Variable lease costs 0.2 0.3 Total operating lease costs $ 3.4 $ 3.1 Finance leases Amortization of right-of-use asset $ 0.8 $ 0.6 Interest on finance lease liabilities 0.1 0.1 Total finance lease costs $ 0.9 $ 0.7 |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 are as follows: Operating Finance Total 2023 $ 2.2 $ 0.8 $ 3.0 2024 1.8 0.5 2.3 2025 1.6 0.2 1.8 2026 0.7 0.1 0.8 2027 0.2 - 0.2 2028 and Thereafter - - - Total lease payments 6.5 1.6 8.1 Less lease interest ( 0.5 ) ( 0.1 ) ( 0.6 ) Total lease liabilities $ 6.0 $ 1.5 $ 7.5 |
Summary of Additional Information Related to Leases | Additional information related to leases is presented as follows: December 31, 2022 December 31, 2021 Operating leases Weighted average remaining lease term 3.3 years 3.5 years Weighted average discount rate 5.4 % 3.8 % Finance leases Weighted average remaining lease term 2.5 years 3.0 years Weighted average discount rate 3.4 % 3.3 % Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3.0 $ 2.7 Financing cash flows from finance leases 0.9 0.7 Total cash paid $ 3.9 $ 3.4 Leased assets obtained in exchange for new operating lease liabilities $ 1.8 $ 9.2 Leased assets obtained in exchange for new finance lease liabilities 0.6 2.2 Right-of-use assets obtained in exchange for lease liabilities $ 2.4 $ 11.4 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligation | Changes in the asset retirement obligation during 2022 and 2021 was as follows: Year Ended December 31, 2022 2021 Beginning balance $ 0.7 $ 0.7 Accretion - - Currency adjustments 0.1 - Ending balance $ 0.8 $ 0.7 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Cost by Plan | The table below summarizes certain data for our stock-based compensation plans: Year Ended December 31, 2022 2021 2020 Stock-based compensation expense $ 18.3 $ 22.5 $ 7.2 Tax (expense) benefit for stock-based compensation 0.7 1.2 1.5 Stock-based compensation expense, net of tax $ 19.0 $ 23.7 $ 8.7 |
Share-based Payment Arrangement, Activity | As of December 31, 2022, the pool of shares in the 2019 Plan is summarized as follows: 2019 Plan Quantity Maximum allowed for issuance 13,118,055 Awards granted ( 6,356,046 ) Awards forfeited 1,334,150 Available for future awards 8,096,159 Awards vested 2,058,160 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Activity of our RSUs and PRSUs is as follows: RSUs PRSUs Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Restricted at December 31, 2021 508,871 $ 15.61 2,818,257 $ 22.38 Granted 148,797 18.96 618,532 21.96 Vested ( 275,656 ) 16.04 ( 466,059 ) 14.24 Forfeited ( 30,067 ) 26.22 ( 410,179 ) 23.90 Outstanding at December 31, 2022 351,945 $ 15.78 2,560,551 $ 23.52 |
Schedule of Nonvested Performance-based Units Activity | Activity of our RSUs and PRSUs is as follows: RSUs PRSUs Quantity Weighted Average Grant Date Fair Value Quantity Weighted Average Grant Date Fair Value Restricted at December 31, 2021 508,871 $ 15.61 2,818,257 $ 22.38 Granted 148,797 18.96 618,532 21.96 Vested ( 275,656 ) 16.04 ( 466,059 ) 14.24 Forfeited ( 30,067 ) 26.22 ( 410,179 ) 23.90 Outstanding at December 31, 2022 351,945 $ 15.78 2,560,551 $ 23.52 |
Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity | Director Stock Units Quantity Weighted Average Grant Date Fair Value Balance at December 31, 2021 28,364 $ 24.69 Granted 93,652 10.21 Vested ( 70,776 ) 14.92 Balance at December 31, 2022 51,240 $ 11.72 |
Schedule of Unrecognized Compensation Cost and Weighted Average Periods Remaining for Non-Vested Awards | Unrecognized compensation cost and weighted average periods remaining for non-vested RSUs and PRSUs as of December 31, 2022 and 2021 are as follows: December 31, 2022 December 31, 2021 Unrecognized compensation cost RSUs $ 1.9 $ 4.8 PRSUs $ 33.3 $ 51.9 Weighted average remaining period RSUs 0.7 years 1.3 years PRSUs 2.9 years 2.8 years |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables set forth the computation of our loss per share: Year Ended December 31, 2022 2021 2020 Numerator: Net loss $ ( 41.4 ) $ ( 2.8 ) $ ( 23.4 ) Net loss attributable to common stockholders for basic and diluted EPS $ ( 41.4 ) $ ( 2.8 ) $ ( 23.4 ) Denominator: Basic weighted average common shares outstanding 81,877,334 78,542,734 72,434,802 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class A and Class C earnout shares - - - Diluted weighted average common shares outstanding 81,877,334 78,542,734 72,434,802 Loss per share attributable to common stockholders Basic $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Diluted $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Two-class method: Class A Common Stock Basic weighted average common shares outstanding 78,956,235 74,764,709 65,923,509 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class A earnout shares - - - Diluted weighted average common shares outstanding 78,956,235 74,764,709 65,923,509 Proportionate share of net loss $ ( 39.9 ) $ ( 2.7 ) $ ( 21.3 ) Class A – basic earnings (loss) per share $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Class A – diluted earnings (loss) per share $ ( 0.51 ) $ ( 0.04 ) $ ( 0.32 ) Class C Common Stock Basic weighted average common shares outstanding 2,921,099 3,778,025 6,511,293 Dilutive effect of assumed vesting of RSUs and PRSUs - - - Dilutive effect of Class C earnout shares - - - Diluted weighted average common shares outstanding 2,921,099 3,778,025 6,511,293 Proportionate share of net loss $ ( 1.5 ) $ ( 0.1 ) $ ( 2.1 ) Class C – basic earnings (loss) per share $ ( 0.51 ) $ ( 0.03 ) $ ( 0.32 ) Class C – diluted earnings (loss) per share $ ( 0.51 ) $ ( 0.03 ) $ ( 0.32 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings | The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive or because milestones were not yet achieved for awards contingent on the achievement of performance milestones: Year Ended December 31, 2022 2021 2020 RSUs and PRSUs 3,144,621 2,298,832 1,040,464 Total antidilutive securities 3,144,621 2,298,832 1,040,464 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Additional Investment In Private Business | $ 2.1 | ||||||
Unrealized gain on investments in small private businesses | $ (3.9) | $ 0 | |||||
Unrealized gains (losses) | $ 0.5 | ||||||
Revenue, charges for rebates and other allowances, percentage of sales | 10% | 7.40% | 10.90% | ||||
Advertising costs | $ 1.1 | $ 0.9 | $ 0.7 | ||||
Money market fund | $ 70 | ||||||
Cash | 30.5 | 70 | |||||
May 2021 Equity Offering | 103.4 | ||||||
Additional shares authorized for issuance of future awards | 9,000,000 | ||||||
Research and development costs | 3.6 | 1.7 | 2.3 | ||||
Capitalized software implementation costs | 18.3 | ||||||
Amortization costs of capitalized software | 2.8 | 0 | 0 | ||||
Early Repayment of Senior Debt | $ 0 | $ 20.9 | 0 | ||||
Other Ownership Interests, Contributed Capital | $ 9.2 | ||||||
Over-Allotment Option [Member] | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (shares) | 800,000 | ||||||
Common Class A [Member] | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Sale of stock, number of shares issued in transaction (shares) | 4,500,000 | ||||||
Sale of stock, consideration received per transaction | $ 103.4 | ||||||
Accounting Standards Update 2018-13 [Member] | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||||
Minimum | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Intangible asset, useful life (years) | 10 years | ||||||
Maximum | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Intangible asset, useful life (years) | 15 years | ||||||
Shipping and Handling | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Shipping and handling costs | $ 5.7 | $ 8.3 | $ 4.8 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 2 years |
Buildings and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 20 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 2 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 10 years |
Converting machines | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 2 |
Converting machines | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 5 years |
Computer and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 2 years |
Computer and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives (years) | 10 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Cash Flow Information and Non-Cash Investing Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental cash flow information | |||
Interest paid | $ 20.5 | $ 21.7 | $ 22.5 |
Income taxes paid | 2.7 | 8.4 | 3.7 |
Non-cash increase in asset retirement obligation | 0 | 0 | 0.7 |
Non-cash investing activities | |||
Right-of-use assets obtained in exchange for lease liabilities | 2.4 | 11.4 | 0 |
Equipment purchased under capital leases (ASC 840) | 0 | 0 | 0.3 |
Capital expenditures in accounts payable | $ 0.1 | $ 0 | $ 2.4 |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Accounts receivable | $ 33.7 | $ 44.7 |
Allowance for doubtful accounts | (0.7) | (1) |
Accounts receivable, net | $ 33 | $ 43.7 |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Maximum | Accounts Receivable | Customer Concentration Risk | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Concentration risk, percentage | 10% | 10% |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12.4 | $ 19.5 |
Work-in-process | 5.7 | 1.2 |
Finished goods | 7.2 | 12.5 |
Total inventories | 25.3 | 33.2 |
Reserve for obsolescence | (0.3) | (0.3) |
Inventories, net | $ 25 | $ 32.9 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 245.6 | $ 212.4 |
Accumulated depreciation | (121.6) | (86.1) |
Property, plant, and equipment, net | 124 | 126.3 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 4 | 4.1 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 13.3 | 9.2 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 34 | 22.3 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 11.5 | 12.7 |
Converting Machines | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 182.8 | $ 164.1 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Depreciation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 40.2 | $ 44.1 | $ 34 |
Cost of goods sold | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 36.8 | 38.6 | 31.1 |
Depreciation and amortization expense | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 3.4 | $ 5.5 | $ 2.9 |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Employee compensation | $ 2.1 | $ 1.5 |
Taxes | 3.4 | 6.9 |
Professional fees | 0.8 | 4.6 |
Bonus | 0.7 | 10.1 |
Interest | 1.9 | 1.7 |
Interest rate swap liability, current portion | 0 | 3.8 |
Other | 1.7 | 2.9 |
Accrued liabilities and other | $ 10.6 | $ 31.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | 2 | ||
Number of reportable segments | 1 | ||
No Customer | Revenue | Customer Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 10% | 10% | 10% |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 326.5 | $ 383.9 | $ 298.2 |
Gross profit | 99.6 | 148.9 | 122.6 |
Selling, general and administrative expenses | 105.5 | 98.3 | 72.5 |
Transaction costs | 0 | 0 | 2.2 |
Depreciation and amortization expense | 32.1 | 35 | 31.5 |
Other operating expense, net | 4.5 | 3.4 | 4.7 |
Interest expense | 20.7 | 22.4 | 30.2 |
Foreign currency gain | (2.2) | (5.3) | 6.1 |
Other non-operating income, net | (4.3) | 0 | 0 |
Loss before income tax benefit | (56.7) | (4.9) | (24.6) |
Total assets | 1,133.5 | 1,213.4 | |
Long-lived assets | 130 | 126.3 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 134.7 | 146.9 | 127.4 |
Gross profit | 41.8 | 53.9 | 50.7 |
Long-lived assets | 65.4 | 62.1 | |
Europe/Asia | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 191.8 | 237 | 170.8 |
Gross profit | 57.8 | 95 | $ 71.9 |
Long-lived assets | $ 64.6 | $ 64.2 |
Revenue Recognition, Contract_3
Revenue Recognition, Contracts with Customers - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of operating segments | 2 | |
Number of reportable segments | 1 | |
Contract assets | $ | $ 0 | $ 0 |
Revenue Recognition, Contract_4
Revenue Recognition, Contracts with Customers - Schedule of Change in Deferred Revenue (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 3.1 | $ 1.4 |
Ending balance | $ 0.9 | $ 3.1 |
Revenue Recognition, Contract_5
Revenue Recognition, Contracts with Customers - Revenue from Contracts with Customers Summarized by Segment Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue | $ 326.5 | $ 383.9 | $ 298.2 |
ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Net revenue | 276.4 | 336.2 | 258.6 |
ASC 842 | |||
Disaggregation of Revenue [Line Items] | |||
Machine lease revenue | 50.1 | 47.7 | 39.6 |
Net revenue | 326.5 | 383.9 | 298.2 |
North America | ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 111 | 126.7 | 110.9 |
Europe/Asia | ASC 606 | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 165.4 | $ 209.5 | $ 147.7 |
Goodwill, Long-Lived and Inta_3
Goodwill, Long-Lived and Intangible Assets, net - Schedule of Goodwill Balances by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | $ 453 | $ 458.4 |
Acquisitions | 3.3 | |
Currency translation | (6.3) | (8.7) |
Gross carrying value, ending balance | 446.7 | 453 |
North America | ||
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | 338.8 | 338.8 |
Acquisitions | 0 | |
Currency translation | 0 | 0 |
Gross carrying value, ending balance | 338.8 | 338.8 |
Europe | ||
Goodwill [Roll Forward] | ||
Gross carrying value, beginning balance | 114.2 | 119.6 |
Acquisitions | 3.3 | |
Currency translation | (6.3) | (8.7) |
Gross carrying value, ending balance | $ 107.9 | $ 114.2 |
Goodwill, Long-Lived and Inta_4
Goodwill, Long-Lived and Intangible Assets, net - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 28.8 | $ 29.5 | $ 28.7 | |||
Goodwill acquired | 3.3 | |||||
Recycold | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill acquired | € 2.9 | $ 3.3 | ||||
Indefinite-Lived Intangible Assets Acquired | € 0.2 | $ 0.2 | ||||
Intangible assets acquired | € 1.4 | $ 1.6 | ||||
Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset, useful life (years) | 10 years | |||||
Minimum | Recycold | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset, useful life (years) | 10 years | 10 years | ||||
Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset, useful life (years) | 15 years | |||||
Maximum | Recycold | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset, useful life (years) | 15 years | 15 years |
Goodwill, Long-Lived and Inta_5
Goodwill, Long-Lived and Intangible Assets, net - Schedule of Identifiable Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 367.6 | $ 374.2 |
Accumulated Amortization | (101.7) | (74.1) |
Net | 265.9 | 300.1 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible assets, Gross Carrying Amount | 473.8 | 480.6 |
Intangible assets, net | 372.1 | 406.5 |
Trademarks/tradenames with indefinite lives | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible assets, net | 106.2 | 106.4 |
Indefinite-lived intangible assets (excluding goodwill) | 106.2 | 106.4 |
Customer/distributor relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 195.5 | 201.7 |
Accumulated Amortization | (46.5) | (34.6) |
Net | 149 | 167.1 |
Patented/Unpatented Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 171.6 | 171.9 |
Accumulated Amortization | (55) | (39.4) |
Net | 116.6 | 132.5 |
Intellectual Property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.5 | 0.6 |
Accumulated Amortization | (0.2) | (0.1) |
Net | $ 0.3 | $ 0.5 |
Goodwill, Long-Lived and Inta_6
Goodwill, Long-Lived and Intangible Assets, net - Schedule of Finite-Lived Intangible Assets Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 29 |
2024 | 28.9 |
2025 | 28.4 |
2026 | 28.1 |
2027 | 27.9 |
Thereafter | 123.6 |
Finite-lived intangible assets, Net | $ 265.9 |
Goodwill, Long-Lived and Inta_7
Goodwill, Long-Lived and Intangible Assets, net - Schedule of Intangible Asset Remaining Useful Life (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 10 years | 11 years |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 10 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 15 years | |
Customer/distributor relationships | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 11 years | 12 years |
Patented/Unpatented Technology | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 8 years | 9 years |
Patents and Other Intellectual Property | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life (years) | 7 years | 7 years |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Debt issuance cost | $ 4.4 | $ 5.9 | |
Transaction costs | $ 0 | $ 0 | $ 2.2 |
Acquisition - Preliminary Purch
Acquisition - Preliminary Purchase Price Allocation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Total consideration | $ 2.1 | $ 14.1 | |
Goodwill | $ 446.7 | $ 453 | $ 458.4 |
Acquisition - Classification of
Acquisition - Classification of Transaction Costs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Deferred financing costs | $ 4.4 | $ 5.9 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 14, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Debt covenant, restrictive payments | $ 10 | $ 7 | ||||
Debt covenant, threshold percentage of debt capacity of cash contributions | 10% | 7% | ||||
Amortization of deferred financing costs | $ 1.5 | $ 1.9 | $ 1.6 | |||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 0 | $ 0 | ||||
Line of credit facility, additional borrowing capacity | $ 95 | |||||
Percentage of consolidated EBIDTA | 100% | |||||
Committed to outstanding letters of credit | $ 2.4 | |||||
Standby Letters of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 5 | |||||
First Lien Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Payments on term loans and credit facility | $ 395.4 | $ 107.7 | ||||
Exit Payment | $ 8.2 | |||||
First Lien Term Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Mandatory Prepayments Of Term Loans Upon The Occurrence Descriptions | an annual excess cash flow sweep of 50% of excess cash flow (as defined in the First Lien Term Facility agreement) with step-downs to 25% if the first lien leverage ratio is less than or equal to 4.50:1.00 and greater than 4.00:1.00 and 0% if the first lien leverage ratio is less than or equal to 4.00:1.00, subject to certain deductions; (ii) the receipt of certain insurance/condemnation proceeds or net proceeds from certain asset sales and sale-leasebacks, subject to step-downs based on the company’s first lien leverage ratio; provided that in lieu of a prepayment the Company may instead reinvest such proceeds specified assets subject to certain conditions, and (iii) the incurrence or issuance of non-permitted debt, following which the Company must pay 100% of specified net proceeds received in connection therewith. We were in compliance with all financial covenants as of December 31, 2022 . No mandatory prepayments are required as of December 31, 2022. | |||||
First Lien Dollar Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of deferred financing costs | $ 0.3 | |||||
First Lien Euro Term Facility | First Lien Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 5.25% | 3.95% | ||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 42.6 | |||||
Line of Credit | First Lien Term Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, effective percentage | 7.88% | 3.85% | ||||
Line of Credit | First Lien Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, covenant, leverage ratio, minimum | 500% | |||||
Line of Credit | First Lien Credit Agreement | Eurodollar Applicable Margin Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.75% | 2.75% | ||||
Line of Credit | First Lien Credit Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 4% | 3% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 393 | $ 401.4 |
Finance lease liabilities | 1.5 | |
Deferred financing costs, net | (4.4) | (5.9) |
Less: current portion of long-term debt | (0.6) | (0.4) |
Less: current portion of finance lease liabilities | (0.7) | (0.6) |
Long-term debt | 391.7 | 400.4 |
Dollar Denominated Line of Credit | First Lien Term Facility | ||
Debt Instrument [Line Items] | ||
Total | 250 | 250 |
First Lien Euro Term Facility | First Lien Term Facility | ||
Debt Instrument [Line Items] | ||
Total | 145.4 | 155 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Finance lease liabilities | 1.5 | 1.5 |
Deferred financing costs, net | $ (3.9) | $ (5.1) |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of First Lien Term Facility (Details) - First Lien Term Facility - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
2023 | $ 1.5 | |
2024 | 1.5 | |
2025 | 1.5 | |
2026 | 390.9 | |
2027 | 0 | |
Thereafter | 0 | |
Total | $ 395.4 | $ 107.7 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Deferred Financing Costs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Deferred financing costs | $ 12.7 | $ 12.7 |
Accumulated amortization | (8.3) | (6.8) |
Deferred financing costs, net | $ 4.4 | $ 5.9 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) Rate | Feb. 28, 2022 USD ($) Rate | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Nov. 30, 2022 USD ($) Rate | Apr. 30, 2022 EUR (€) Rate | Feb. 28, 2022 EUR (€) Rate | Sep. 30, 2021 USD ($) Rate | Sep. 30, 2021 EUR (€) Rate | Mar. 27, 2020 | Sep. 25, 2019 USD ($) | Jan. 31, 2019 USD ($) | |
Derivative [Line Items] | ||||||||||||||
Cash inflow from settlement of net investment hedges | $ 10 | |||||||||||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Derivative Liability, Noncurrent | |||||||||||||
Interest rate cash flow hedge loss to be reclassified during next twelve months, net | (6.3) | |||||||||||||
Spot exchange rate | Rate | 102.05% | |||||||||||||
Designated as Hedging Instrument | Cash Flow Hedge | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | 250 | 250 | ||||||||||||
January 2019 Swap | Not Designated as Hedging Instrument | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 200 | |||||||||||||
Derivative, fixed interest rate | 2.56% | |||||||||||||
January 2019 Swap | Designated as Hedging Instrument | Cash Flow Hedge | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 200 | $ 200 | ||||||||||||
Derivative, fixed interest rate | 2.09% | 2.09% | 2.10% | 2.31% | ||||||||||
September 2019 Swap | Designated as Hedging Instrument | Cash Flow Hedge | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 50 | $ 50 | $ 50 | |||||||||||
Derivative, fixed interest rate | 1.50% | 1.50% | 1.50% | |||||||||||
September 2021 Swap | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 80 | |||||||||||||
Derivative, fixed interest rate | 5.84% | 5.84% | ||||||||||||
Derivative, Description of Terms | The September 2021 Swap involves the receipt of fixed-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the contract without exchange of the underlying notional amounts. At a spot exchange rate of 1.1835, we converted notional amounts of approximately $80.0 million at 5.84% for €67.6 million at 5.02%. The change in fair value of the September 2021 Swap is recorded in currency translation in other comprehensive income (loss) and accumulated other comprehensive income (loss). Components of the September 2021 Swap excluded from the assessment of effectiveness are amortized out of accumulated other comprehensive income (loss) and into interest expense over the life of the September 2021 Swap to maturity on June 1, 2024. | |||||||||||||
Spot exchange rate | Rate | 118.35% | 118.35% | ||||||||||||
Derivative notional amount, converted | € | € 67.6 | |||||||||||||
Derivative notional amount, converted rate | Rate | 502% | 502% | ||||||||||||
February 2022 Swap | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 80 | |||||||||||||
Derivative, fixed interest rate | 5.84% | 5.84% | ||||||||||||
Gains (losses) on derivatives | $ 2.8 | $ 2.1 | ||||||||||||
Spot exchange rate | Rate | 113.45% | 113.45% | ||||||||||||
Derivative notional amount, converted | € | € 70.5 | |||||||||||||
Derivative notional amount, converted rate | Rate | 437% | 437% | ||||||||||||
April 2022 Swap | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 80 | |||||||||||||
Derivative, fixed interest rate | 5.84% | 5.84% | ||||||||||||
Gains (losses) on derivatives | $ 5.1 | |||||||||||||
Spot exchange rate | Rate | 108.27% | 108.27% | ||||||||||||
Derivative notional amount, converted | € | € 73.9 | |||||||||||||
Derivative notional amount, converted rate | 3.93 | 3.93 | ||||||||||||
Interest Rate Swap Seven [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative, notional amount | $ 80 | |||||||||||||
Derivative, fixed interest rate | 5.84% | |||||||||||||
Derivative notional amount, converted | $ 78.4 | |||||||||||||
Derivative notional amount, converted rate | 3.95 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Swaps (Details) - Designated as Hedging Instrument - Cash Flow Hedge - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 27, 2020 | Sep. 25, 2019 |
Derivative [Line Items] | ||||
Derivative, notional amount | $ 250 | $ 250 | ||
Percentage of Debt Instrument Outstanding | 100% | 100% | ||
September 2019 Swap | ||||
Derivative [Line Items] | ||||
Derivative, fixed interest rate | 1.50% | 1.50% | 1.50% | |
Derivative, notional amount | $ 50 | $ 50 | $ 50 | |
September 2019 Swap | First Lien Term Facility | ||||
Derivative [Line Items] | ||||
Percentage of Debt Instrument Outstanding | 20% | 20% | ||
January 2019 Swap | ||||
Derivative [Line Items] | ||||
Derivative, fixed interest rate | 2.09% | 2.09% | 2.10% | 2.31% |
Derivative, notional amount | $ 200 | $ 200 | ||
January 2019 Swap | First Lien Term Facility | ||||
Derivative [Line Items] | ||||
Percentage of Debt Instrument Outstanding | 80% | 80% |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Assets and Liabilities at Fair Value (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative asset, fair value | $ (3.7) | $ 2.3 |
Cash Flow Hedge | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 8.1 | (6.2) |
Cash Flow Hedge | Accrued liabilities and other | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | (3.8) |
Cash Flow Hedge | Prepaid Expenses And Other Current Assets | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 6.3 | 0 |
Cash Flow Hedge | Other Assets | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 1.8 | 0 |
Derivative asset, fair value | 0 | 2.3 |
Derivative instruments | Cash Flow Hedge | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | (2.4) |
Derivative asset, fair value | $ (3.7) | $ 0 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on Statement of Financial Position (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Interest expense | $ 20.7 | $ 22.4 | $ 30.2 |
Interest Expense | Interest Rate Swap | |||
Derivative [Line Items] | |||
Interest rate swap agreements designated as cash flow hedges | (0.1) | 3.9 | 2.2 |
Cross currency swap agreement designated as net investment hedge, amounts excluded from effectiveness testing | $ (1.2) | $ (0.3) | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Foreign currency translation, Gross Balance | $ (8) | $ 2.5 |
Foreign currency translation, Tax Effect | 0 | 0 |
Foreign currency translation, Net Balance | (8) | 2.5 |
Unrealized gain (loss) on interest rate swaps, Gross Balance | 11 | (3.2) |
Unrealized gain (loss) on interest rate swaps, Tax Effect | (2.4) | 1 |
Unrealized gain (loss) on interest rate swaps, Net Balance | 8.6 | (2.2) |
Unrealized gain (loss) on cross currency swap, Gross Balance | (3.9) | 2.9 |
Unrealized gain (loss) on cross currency swap, Tax Effect | 0.9 | (0.6) |
Unrealized gain (loss) on cross currency swap, Net Balance | (3) | 2.3 |
Realized gain (loss) on cross-currency swap, Gross Balance | 10 | |
Realized gain (loss) on cross-currency swap, Tax Effect | (2.4) | |
Realized gain (loss) on cross-currency swap, Net Balance | 7.6 | |
Total, Gross Balance | 9.1 | 2.2 |
Total, Tax Effect | (3.9) | (0.4) |
Total, Net Balance | $ 5.2 | $ 2.6 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 636.2 | $ 522.9 | $ 531.8 |
Ending Balance | 612.8 | 636.2 | 522.9 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 2.6 | 10.7 | 3.4 |
Other comprehensive income (loss) before reclassifications | (5.5) | (2.2) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (2.9) | (5.9) | |
Ending Balance | 5.2 | 2.6 | 10.7 |
Foreign currency translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 2.5 | 17.9 | |
Other comprehensive income (loss) before reclassifications | (10.5) | (15.4) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Ending Balance | (8) | 2.5 | 17.9 |
Unrealized gain (loss) on interest rate swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (2.2) | (7.2) | |
Other comprehensive income (loss) before reclassifications | 14 | 11.2 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (3.2) | (6.2) | |
Ending Balance | 8.6 | (2.2) | (7.2) |
Unrealized gain (loss) on cross currency swap | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 2.3 | 0 | |
Other comprehensive income (loss) before reclassifications | (5.6) | 2 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.3 | 0.3 | |
Ending Balance | (3) | 2.3 | 0 |
Realized gain (loss) on cross currency swap | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Other comprehensive income (loss) before reclassifications | 7.6 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Ending Balance | $ 7.6 | $ 0 | $ 0 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Summary of Reclassification of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Rate Swap | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification of change in fair value of derivative swap agreements interest expense, net | $ (0.1) | $ 3.9 | $ 2.5 |
Reclassification of income tax expense (benefit), tax effect | 3.3 | 2.3 | (2.4) |
Reclassification, net of tax | 2.9 | 5.9 | $ 0.1 |
Currency Swap | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification of change in fair value of derivative swap agreements interest expense, net | (1.2) | (0.3) | |
Reclassification of income tax expense (benefit), tax effect | $ 0.9 | $ 0 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Carrying Amounts, Estimated Fair Values and Respective Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | $ 30.5 | $ 70 | |
Current and long-term debt | 396.9 | 406.5 | |
Interest rate swap agreements liability | 8.1 | 6.2 | |
Cross currency swap asset | $ 3.7 | 2.3 | |
Money market fund | $ 70 | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Derivative Liability, Noncurrent | ||
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | $ 30.5 | 70 | |
Current and long-term debt | 0 | 0 | |
Interest rate swap agreements liability | 0 | 0 | |
Cross currency swap asset | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | 0 | 0 | |
Current and long-term debt | 388.7 | 406.5 | |
Interest rate swap agreements liability | 8.1 | 6.2 | |
Cross currency swap asset | 3.7 | 2.3 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market fund | 0 | 0 | |
Current and long-term debt | 0 | 0 | |
Interest rate swap agreements liability | 0 | 0 | |
Cross currency swap asset | $ 0 | $ 0 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, maximum annual contributions per employee (percent) | 25% | ||
Defined contribution plan, employer matching contribution, percent of match (percent) | 50% | ||
Defined contribution plan, employer matching contribution, percent of employee's gross pay (percent) | 3% | ||
Defined contribution plan, employer discretionary contribution amount | $ 0.5 | $ 0.5 | $ 0.4 |
Multiemployer plan, contributions by employer | $ 1.2 | $ 1.2 | $ 4.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Line Items] | ||||
Valuation allowance | $ 1.1 | $ 0.9 | ||
Undistributed earnings of foreign subsidiaries | 62.1 | |||
Unrecognized tax benefits that would impact effective tax rate, if recognized | 1.9 | 1.8 | ||
Income tax examination, penalties and interest accrued | 0.4 | 0.4 | ||
Uncertain tax position | $ 1.9 | 1.8 | $ 2.9 | $ 1.4 |
Earliest Tax Year | ||||
Income Taxes [Line Items] | ||||
Examination tax year | 2019 | |||
Latest Tax Year | ||||
Income Taxes [Line Items] | ||||
Examination tax year | 2022 | |||
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 1 | 1.3 | ||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 0.2 | $ 0.1 | ||
Operating loss carryforwards expiration year | 2023 | 2038 | ||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 6.7 | $ 3.7 | ||
Operating loss carryforwards expiration year | 2026 | 2027 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings Before Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (40) | $ (8.6) | $ (26.8) |
Foreign | (16.7) | 3.7 | 2.2 |
Loss before income tax benefit | $ (56.7) | $ (4.9) | $ (24.6) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax expense | |||
Federal | $ 0.2 | $ 2.1 | $ (0.5) |
State | 0.5 | 1.1 | 0.3 |
Foreign | 3.7 | 7.5 | 4 |
Total current tax expense | 4.4 | 10.7 | 3.8 |
Deferred tax expense (benefit) | |||
Federal | (9.7) | (6.8) | (3.8) |
State | (2.1) | (1.1) | (1.9) |
Foreign | (7.9) | (4.9) | 0.7 |
Total deferred tax expense (benefit) | (19.7) | (12.8) | (5) |
Total | $ (15.3) | $ (2.1) | $ (1.2) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rate | $ (11.9) | $ (1) | $ (5.2) |
U.S. state income taxes | (1.7) | (0.1) | (1.7) |
Tax related to foreign activities | (0.9) | 0.1 | 0.4 |
U.S. federal tax credits | (0.1) | (0.1) | (0.4) |
Return to provision adjustments | (0.4) | (1.2) | 0.5 |
Remeasurement of deferred taxes | 0 | 0.8 | 3.8 |
Stock-based compensation windfall | (0.8) | (1) | 0 |
Global intangible low-taxed income | 0 | 0 | 1.3 |
Non-deductible compensation | 0.2 | 0.5 | 0 |
Foreign-derived intangible income deduction | 0 | (1.2) | (0.1) |
Uncertain tax positions | 0.1 | 0.9 | 0 |
Other, net | 0.2 | 0.2 | 0.2 |
Total | $ (15.3) | $ (2.1) | $ (1.2) |
Effective tax rate | 27.30% | 42.70% | 6.20% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Unrealized foreign currency exchange | $ 0 | $ 0.3 |
Stock-based compensation | 8.4 | 5.4 |
Net operating losses and credits | 2.1 | 1.3 |
Non-deductible interest carryforward | 10.1 | 6 |
Other | 1.6 | 1 |
Total deferred tax assets | 22.2 | 14 |
Valuation allowance | (1.1) | (0.9) |
Deferred tax assets, net | 21.1 | 13.1 |
Deferred tax liabilities | ||
Depreciation | (7.1) | (10.9) |
Amortization | (90.7) | (100.1) |
Derivative instruments | (1.8) | 0 |
Unrealized foreign currency exchange | (1.9) | 0 |
Total deferred tax liabilities | (101.5) | (111) |
Deferred tax liabilities, net before unrecognized tax benefits | (80.4) | (97.9) |
Deferred tax impact of unrecognized tax benefits | 0.2 | 0.2 |
Deferred tax assets (liabilities), net after unrecognized tax benefits | $ (80.2) | $ (97.7) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized income tax benefits at the beginning of the period | $ 1.8 | $ 2.9 | $ 1.4 |
Increases related to prior year tax positions | 0 | 0.7 | 0 |
Decreases related to prior year tax positions | 0 | (1.6) | 0 |
Increases related to current year tax positions | 0.2 | 0 | 1.4 |
Foreign currency impact | (0.1) | (0.2) | 0.1 |
Unrecognized income tax benefits at the end of the period | $ 1.9 | $ 1.8 | $ 2.9 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases and Finance Leases included in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Lease assets | ||
Operating lease right-of-use assets, net | $ 6 | $ 6.6 |
Finance lease right of use assets, net | 1.4 | 1.5 |
Total lease assets | 7.4 | 8.1 |
Lease liabilities | ||
Operating lease liabilities, current | 2 | 2.4 |
Operating lease liabilities, non-current | 4 | 4.3 |
Finance lease liabilities, current | 0.7 | 0.6 |
Finance lease liabilities, non-current | 0.8 | 0.9 |
Total lease liabilities | $ 7.5 | $ 8.2 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating leases | ||
Operating lease costs | $ 3.2 | $ 2.8 |
Variable lease costs | 0.2 | 0.3 |
Total operating lease costs | 3.4 | 3.1 |
Finance leases | ||
Amortization of right-of-use asset | 0.8 | 0.6 |
Interest on finance lease liabilities | 0.1 | 0.1 |
Total finance lease costs | $ 0.9 | $ 0.7 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Rental Expense | $ 10.5 | $ 2.1 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating leases | |
2023 | $ 2.2 |
2024 | 1.8 |
2025 | 1.6 |
2026 | 0.7 |
2027 | 0.2 |
2028 and Thereafter | 0 |
Total lease payments | 6.5 |
Less lease interest | (0.5) |
Total lease liabilities | 6 |
Finance leases | |
2023 | 0.8 |
2024 | 0.5 |
2025 | 0.2 |
2026 | 0.1 |
2027 | 0 |
2028 and Thereafter | 0 |
Total lease payments | 1.6 |
Less lease interest | (0.1) |
Total lease liabilities | 1.5 |
Total | |
2023 | 3 |
2024 | 2.3 |
2025 | 1.8 |
2026 | 0.8 |
2027 | 0.2 |
2028 and Thereafter | 0 |
Total lease payments | 8.1 |
Less lease interest | (0.6) |
Total lease liabilities | $ 7.5 |
Leases - Schedule of Additional
Leases - Schedule of Additional Information to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating leases | ||
Weighted average remaining lease term | 3 years 3 months 18 days | 3 years 6 months |
Weighted average discount rate | 5.40% | 3.80% |
Finance leases | ||
Weighted average remaining lease term | 2 years 6 months | 3 years |
Weighted average discount rate | 3.40% | 3.30% |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 3 | $ 2.7 |
Financing cash flows from finance leases | 0.9 | 0.7 |
Total cash paid | 3.9 | 3.4 |
Leased assets obtained in exchange for new operating lease liabilities | 1.8 | 9.2 |
Leased assets obtained in exchange for new finance lease liabilities | 0.6 | 2.2 |
ROU assets obtained in exchange for lease liabilities | $ 2.4 | $ 11.4 |
Asset Retirement Obligation - S
Asset Retirement Obligation - Schedule of Changes in Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Beginning balance | $ 0.7 | $ 0.7 |
Accretion | 0 | 0 |
Additions and adjustments | 0.1 | 0 |
Ending balance | $ 0.8 | $ 0.7 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental Expense | $ 10.5 | $ 2.1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Certain Data for Stock-Based Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Stock-based compensation expense | $ 18.3 | $ 22.5 | $ 7.2 |
Tax (expense) benefit for stock-based compensation | 0.7 | 1.2 | 1.5 |
Stock-based compensation expense, net of tax | $ 19 | $ 23.7 | $ 8.7 |
Stock-Based Compensation - 2019
Stock-Based Compensation - 2019 Plan (Details) - shares | 1 Months Ended | 12 Months Ended |
May 31, 2021 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Additional shares authorized for issuance of future awards | 9,000,000 | |
2019 Plan | Share-based Payment Arrangement, Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum allowed for issuance | 13,118,055 | |
Awards granted | (6,356,046) | |
Awards forfeited | 1,334,150 | |
Available for future awards | 8,096,159 | |
Awards vested | 2,058,160 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 18.96 | $ 24.98 | $ 8.08 |
RSUs | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 100,000 | ||
RSUs | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
RSUs | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 21.96 | 22.65 | 8.09 |
PRSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Targeted performance goal expressed as percentage of growth in performance level attained | 0% | ||
PRSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Targeted performance goal expressed as percentage of growth in performance level attained | 150% | ||
2021 LTIP PRSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Targeted performance goal expressed as percentage of growth in performance level attained | 0% | ||
2021 LTIP PRSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Targeted performance goal expressed as percentage of growth in performance level attained | 300% | ||
Director Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 10.21 | $ 23 | $ 7.55 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Restricted Stock Unit and Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at December 31, 2021 (shares) | 508,871 | ||
Granted (shares) | 148,797 | ||
Vested (shares) | (275,656) | ||
Forfeited (shares) | (30,067) | ||
Outstanding at December 31, 2022 (shares) | 351,945 | 508,871 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at December 31, 2020 (USD per share) | $ 15.61 | ||
Granted (USD per share) | 18.96 | $ 24.98 | $ 8.08 |
Vested (USD per share) | 16.04 | ||
Forfeited (USD per share) | 26.22 | ||
Outstanding at December 31, 2021 (USD per share) | $ 15.78 | $ 15.61 | |
PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at December 31, 2021 (shares) | 2,818,257 | ||
Granted (shares) | 618,532 | ||
Vested (shares) | (466,059) | ||
Forfeited (shares) | (410,179) | ||
Outstanding at December 31, 2022 (shares) | 2,560,551 | 2,818,257 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at December 31, 2020 (USD per share) | $ 22.38 | ||
Granted (USD per share) | 21.96 | $ 22.65 | $ 8.09 |
Vested (USD per share) | 14.24 | ||
Forfeited (USD per share) | 23.90 | ||
Outstanding at December 31, 2021 (USD per share) | $ 23.52 | $ 22.38 |
Stock-Based Compensation - Dire
Stock-Based Compensation - Director Stock Unit Activity (Details) - Director Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quantity | |||
Outstanding at December 31, 2021 (shares) | 28,364 | ||
Granted (shares) | 93,652 | ||
Vested (shares) | (70,776) | ||
Outstanding at December 31, 2022 (shares) | 51,240 | 28,364 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at December 31, 2020 (USD per share) | $ 24.69 | ||
Granted (USD per share) | 10.21 | $ 23 | $ 7.55 |
Vested (USD per share) | 14.92 | ||
Outstanding at December 31, 2021 (USD per share) | $ 11.72 | $ 24.69 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Unrecognized Compensation Cost and Weighted Average Periods Remaining for Non-Vested Awards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1.9 | $ 4.8 |
Weighted average remaining period | 8 months 12 days | 1 year 3 months 18 days |
PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 33.3 | $ 51.9 |
Weighted average remaining period | 2 years 10 months 24 days | 2 years 9 months 18 days |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Jul. 26, 2022 | May 31, 2021 | Apr. 05, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (shares) | 426,000,000 | |||||
Preferred stock, shares authorized (shares) | 1,000,000 | |||||
Preferred stock, par value (USD per shares) | $ 0.0001 | |||||
Proceeds from issuance of common stock | $ 0 | $ 104 | $ 0 | |||
Preferred stock, shares outstanding (shares) | 0 | |||||
Class A | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | ||||
Conversion of converted shares exercised | 3,600,000 | |||||
Common stock, shares issued (shares) | 5,300,000 | 79,086,372 | 78,482,024 | |||
Proceeds from issuance of common stock | $ 103.4 | |||||
Share repurchase program maximum amount | $ 50 | |||||
Stock repurchase program period | 36 months | |||||
Class B | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (shares) | 25,000,000 | |||||
Common stock, par value (USD per share) | $ 0.0001 | |||||
Class C | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (shares) | 200,000,000 | |||||
Common stock, par value (USD per share) | $ 0.0001 | |||||
Conversion of converted shares exercised | 3,600,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Common Stock Outstanding (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class A | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (shares) | 79,086,372 | 78,482,024 | 69,005,059 | 64,293,741 |
Class C | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (shares) | 2,921,099 | 2,921,099 | 6,511,293 | 6,511,293 |
Earnings (Loss) per Share - Sch
Earnings (Loss) per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Millions | 5 Months Ended | 12 Months Ended | ||
Jun. 02, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic [Line Items] | ||||
Net loss | $ (41.4) | $ (2.8) | $ (23.4) | |
Net loss attributable to common stockholders for basic and diluted EPS | $ (41.4) | $ (2.8) | $ (23.4) | |
Basic weighted average common shares outstanding (shares) | 81,877,334 | 78,542,734 | 72,434,802 | |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Dilutive effect of assumed vesting of RSUs and PRSUs (shares) | 0 | 0 | 0 | |
Dilutive effect of Class A and Class C earnout shares | 0 | 0 | 0 | |
Dilutive weighted average common shares outstanding (shares) | 81,877,334 | 78,542,734 | 72,434,802 | |
Loss per share attributable to common stockholders | ||||
Basic (USD per share) | $ (19,195.40) | $ (0.51) | $ (0.04) | $ (0.32) |
Diluted (USD per share) | $ (19,195.40) | $ (0.51) | $ (0.04) | $ (0.32) |
Class A | ||||
Earnings Per Share Basic [Line Items] | ||||
Net loss | $ (39.9) | $ (2.7) | $ (21.3) | |
Basic weighted average common shares outstanding (shares) | 78,956,235 | 74,764,709 | 65,923,509 | |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Dilutive effect of assumed vesting of RSUs and PRSUs (shares) | 0 | 0 | 0 | |
Dilutive effect of Class A and Class C earnout shares | 0 | 0 | 0 | |
Dilutive weighted average common shares outstanding (shares) | 78,956,235 | 74,764,709 | 65,923,509 | |
Loss per share attributable to common stockholders | ||||
Basic (USD per share) | $ (0.51) | $ (0.04) | $ (0.32) | |
Diluted (USD per share) | $ (0.51) | $ (0.04) | $ (0.32) | |
Class C | ||||
Earnings Per Share Basic [Line Items] | ||||
Net loss | $ (1.5) | $ (0.1) | $ (2.1) | |
Basic weighted average common shares outstanding (shares) | 2,921,099 | 3,778,025 | 6,511,293 | |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Dilutive effect of assumed vesting of RSUs and PRSUs (shares) | 0 | 0 | 0 | |
Dilutive effect of Class A and Class C earnout shares | 0 | 0 | 0 | |
Dilutive weighted average common shares outstanding (shares) | 2,921,099 | 3,778,025 | 6,511,293 | |
Loss per share attributable to common stockholders | ||||
Basic (USD per share) | $ (0.51) | $ (0.03) | $ (0.32) | |
Diluted (USD per share) | $ (0.51) | $ (0.03) | $ (0.32) |
Earnings (Loss) per Share - Nar
Earnings (Loss) per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Dilutive effect of shares omitted from the calculation of diluted weighted average shares outstanding and diluted earnings per share | 0.8 | 1.1 | 0.7 |
Earnings (Loss) per Share - S_2
Earnings (Loss) per Share - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities | 3,144,621 | 2,298,832 | 1,040,464 |
RSUs and PRSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive securities | 3,144,621 | 2,298,832 | 1,040,464 |
Transactions with Related Par_2
Transactions with Related Parties - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
One Madison Group LLC | ||
Related Party Transaction [Line Items] | ||
Related party transaction, fees | $ 0.3 | $ 0.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 1 | $ 0.5 | $ 0.2 |
Charged to Cost and Expenses | 0.4 | 0.8 | 0.3 |
Deductions | (0.7) | (0.3) | 0 |
Ending Balance | 0.7 | 1 | 0.5 |
Inventory Obsolescence Reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 0.3 | 1 | 0.3 |
Charged to Cost and Expenses | 0 | 0.5 | 0.8 |
Deductions | 0 | (1.2) | (0.1) |
Ending Balance | 0.3 | 0.3 | 1 |
Valuation Allowance for Net Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 0.9 | 1.1 | 1.3 |
Charged to Cost and Expenses | (0.8) | 0 | 0.2 |
Deductions | (0.6) | (0.2) | (0.4) |
Ending Balance | $ 1.1 | $ 0.9 | $ 1.1 |