Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Livent Corp. | |
Entity Central Index Key | 1,742,924 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | false | |
Entity Shell Company | false | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 146,000,000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 0 |
Consolidated and Combined State
Consolidated and Combined Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Revenue | $ 442.5 | $ 347.4 | $ 264.1 | |
Costs and Expenses | ||||
Costs of sales | 236.8 | 198.6 | 175.8 | |
Gross Margin | 205.7 | 148.8 | 88.3 | |
Selling, general and administrative expenses | 21.1 | 13.4 | 12 | |
Corporate allocations | 15.7 | 22.1 | 13.2 | |
Research and development expenses | 3.8 | 3.1 | 3.1 | |
Restructuring and other charges | 2.6 | 8.7 | 1 | |
Separation-related costs | 9.3 | 0 | 0 | |
Total costs and expenses | 289.3 | 245.9 | 205.1 | |
Income from operations before non-operating pension (benefit)/settlement charges, interest expense, net and income taxes | 153.2 | 101.5 | 59 | |
Non-operating pension (benefit)/settlement charges | (0.2) | 31.4 | 3.6 | |
Interest expense, net | 0.3 | 0 | 0.9 | |
Income from operations before income taxes | 153.1 | 70.1 | 54.5 | |
Provision for income taxes | 27 | 27.9 | 7.4 | |
Net income attributable to Livent stockholders | $ 126.1 | $ 42.2 | $ 47.1 | |
Weighted average common shares outstanding - basic (in shares) | [1] | 127,677 | 123,000 | 123,000 |
Net income per weighted average share - basic (in dollars per share) | $ 0.99 | $ 0.34 | $ 0.38 | |
Weighted average common shares outstanding – diluted (in shares) | [1] | 127,677 | 123,000 | 123,000 |
Net income per weighted average share - diluted (in dollars per share) | $ 0.99 | $ 0.34 | $ 0.38 | |
[1] | For all prior periods presented and the current period through the completion of the public offering on October 15, 2018, the weighted average shares outstanding for both basic and diluted earnings per share were calculated using 123 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for all periods prior to the completion of the public offering on October 15, 2018 excludes the 23 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 2 for further details. |
Consolidated and Combined Sta_2
Consolidated and Combined Statements of Income (Parenthetical) | Oct. 15, 2018shares |
Public Stock Offering | |
Stock issued during period (in shares) | 23,000,000 |
Consolidated and Combined Sta_3
Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 126.1 | $ 42.2 | $ 47.1 | |
Foreign currency adjustments: | ||||
Foreign currency translation (loss) gain arising during the period | (2.4) | 4.7 | (9.1) | |
Total foreign currency translation adjustments | [1] | (2.4) | 4.7 | (9.1) |
Derivative instruments: | ||||
Unrealized hedging losses, net of tax of $0.1, zero and zero | (1.2) | 0 | 0 | |
Total derivative instruments, net of tax of $0.1, zero and zero | (1.2) | 0 | 0 | |
Pension and other postretirement benefits: | ||||
Unrealized actuarial gains and prior service credits, net of tax of zero, zero and $3.7 | [2] | 0 | 0 | (16.2) |
Reclassification of net actuarial and other gain, amortization of prior service costs and settlement charges, included in net income, net of tax of zero, $(5.4) and $0.1 | [3] | 0 | 26.3 | 0.2 |
Total pension and other postretirement benefits, net of tax of zero, $(5.4) and $3.6 | 0 | 26.3 | (16) | |
Other comprehensive (loss) income, net of tax | (3.6) | 31 | (25.1) | |
Comprehensive income | $ 122.5 | $ 73.2 | $ 22 | |
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries or affiliates since it is our intention that such earnings will remain invested in those affiliates indefinitely. | |||
[2] | For years prior to the Separation Date, we remeasured our pension and postretirement plan obligations at which time we recorded any actuarial gains (losses) and prior service (costs) credits to other comprehensive income. | |||
[3] | For more detail on the components of these reclassifications and the affected line item in the consolidated statements of income (loss) see Note 13 within these consolidated and combined financial statements. |
Consolidated and Combined Sta_4
Consolidated and Combined Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized hedging gains (losses) and other, tax | $ 0.1 | $ 0 | $ 0 |
Total derivative instruments, tax | 0.1 | 0 | 0 |
Unrealized actuarial gains (losses) and prior service (costs) credits, tax | 0 | 0 | 3.7 |
Reclassification of net actuarial and other (gain) loss, amortization of prior service costs and settlement charges, included in net income, tax | 0 | (5.4) | (0.1) |
Total pension and other postretirement benefits, tax | $ 0 | $ 5.4 | $ (3.6) |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 28.3 | $ 1.2 |
Trade receivables, net of allowance of approximately $0.1 in 2018 and 2017 | 141.4 | 122.7 |
Inventories, net | 71.8 | 49.6 |
Prepaid and other current assets | 59.8 | 32.6 |
Total current assets | 301.3 | 206.1 |
Property, plant and equipment, net | 275.7 | 220.7 |
Other assets | 80 | 67 |
Deferred income taxes | 3 | 2.4 |
Total assets | 660 | 496.2 |
Current liabilities | ||
Accounts payable, trade and other | 72 | 59.7 |
Advance payments from customers | 0 | 1.8 |
Accrued and other liabilities | 46.8 | 21.3 |
Income taxes | 1.6 | 3.2 |
Total current liabilities | 120.4 | 86 |
Long-term debt | 34 | 0 |
Environmental liabilities | 5.9 | 5.9 |
Deferred income taxes | 2.5 | 8.2 |
Other long-term liabilities | 9.3 | 10.7 |
Commitments and contingent liabilities (Note 16) | ||
Equity | ||
Common stock; $0.001 par value; 2,000,000,000 shares authorized in 2018; 146,000,000 shares issued and outstanding in 2018 | 0.1 | 0 |
Net parent investment | 0 | 431 |
Capital in excess of par value of common stock | 511.1 | 0 |
Retained earnings | 25.9 | 0 |
Accumulated other comprehensive loss | (49.2) | (45.6) |
Total equity | 487.9 | 385.4 |
Total liabilities and equity | $ 660 | $ 496.2 |
Consolidated and Combined Bal_2
Consolidated and Combined Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivable | $ 0.1 | $ 0.1 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 0 |
Common stock, shares issued (in shares) | 146,000,000 | 0 |
Consolidated and Combined Sta_5
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash provided by operating activities: | |||
Net income | $ 126.1 | $ 42.2 | $ 47.1 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 17.8 | 15.9 | 14.8 |
Change in excess of FIFO cost over LIFO cost | 0.6 | (1) | 0.6 |
Restructuring and other charges | 2.6 | 8.7 | 1 |
Deferred income taxes | (3.1) | (0.7) | 0.4 |
Pension and other postretirement benefits | 0.5 | 32.5 | 4.9 |
Share-based compensation | 4.4 | 3.4 | 2.1 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (20.8) | (71.3) | (8.3) |
Inventories | (24.2) | 6.9 | (7.9) |
Accounts payable, trade and other | 13.8 | 32.5 | 1.8 |
Income taxes | (5.2) | 6.7 | (0.7) |
Change in prepaid and other current assets and other assets | (31.8) | (9.9) | 20.8 |
Change in accrued and other current and long-term liabilities | (11.3) | 7.6 | 25.6 |
Cash provided by operating activities | 92 | 58.3 | 51 |
Cash provided (required) by investing activities of continuing operations: | |||
Capital expenditures | (73.6) | (48.9) | (25.7) |
Proceeds from disposal of property, plant and equipment | 0 | 0.2 | 0 |
Payments associated with long-term supply agreements | 0 | (10) | 0 |
Other investing activities | (4.8) | (3.8) | (5.6) |
Cash required by investing activities | (78.4) | (62.5) | (31.3) |
Cash provided (required) by financing activities of continuing operations: | |||
Increase (decrease) in short-term debt | 0 | 0 | (10.7) |
Proceeds from issuance of long-term debt | 34 | 0 | 0 |
Proceeds from IPO, net of fees | 368.7 | 0 | 0 |
Distribution payment to FMC | (365.7) | 0 | 0 |
Net change in net parent investment | (24) | 1.5 | (7.9) |
Cash provided (required) by financing activities | 13 | 1.5 | (18.6) |
Effect of exchange rate changes on cash and cash equivalents | 0.5 | (0.1) | 0 |
Increase (decrease) in cash and cash equivalents | 27.1 | (2.8) | 1.1 |
Cash and cash equivalents, beginning of period | 1.2 | 4 | 2.9 |
Cash and cash equivalents, end of period | $ 28.3 | $ 1.2 | $ 4 |
Consolidated and Combined Sta_6
Consolidated and Combined Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Cash paid for interest, net of capitalized interest | $ 300,000 | $ 0 | $ 800,000 |
Income taxes paid, net of refunds | 35,300,000 | 21,900,000 | 7,700,000 |
Accrued additions to property, plant and equipment | $ 3,600,000 | $ 5,500,000 | $ 300,000 |
Consolidated and Combined Sta_7
Consolidated and Combined Statements of Equity - USD ($) $ in Millions | Total | Net Parent Investment | Common Stock, $0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2015 | $ 296.6 | $ 348.1 | $ 0 | $ 0 | $ 0 | $ (51.5) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 47.1 | 47.1 | 0 | ||||
Unrealized hedging losses, net of income tax | 0 | ||||||
Net pension and other benefit actuarial gains/(losses) and prior service costs, net of income tax | (16) | (16) | |||||
Foreign currency translation adjustments | (9.1) | [1] | (9.1) | ||||
Net change in parent investment | (7.9) | (7.9) | |||||
Ending balance at Dec. 31, 2016 | 310.7 | 387.3 | 0 | 0 | 0 | (76.6) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 42.2 | 42.2 | 0 | ||||
Unrealized hedging losses, net of income tax | 0 | ||||||
Net pension and other benefit actuarial gains/(losses) and prior service costs, net of income tax | 26.3 | 26.3 | |||||
Foreign currency translation adjustments | 4.7 | [1] | 4.7 | ||||
Net change in parent investment | 1.5 | 1.5 | |||||
Ending balance at Dec. 31, 2017 | 385.4 | 431 | 0 | 0 | 0 | (45.6) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 126.1 | 100.2 | 25.9 | ||||
Stock compensation plans | 1 | 1 | |||||
Unrealized hedging losses, net of income tax | (1.2) | (1.2) | |||||
Net pension and other benefit actuarial gains/(losses) and prior service costs, net of income tax | 0 | ||||||
Foreign currency translation adjustments | (2.4) | [1] | (2.4) | ||||
Net change in parent investment | (24) | (24) | 0 | ||||
Issuance of common stock - IPO, net of fees | 368.7 | 368.7 | |||||
Distribution to FMC | (365.7) | (365.7) | |||||
Issuance of common stock to FMC in connection with the Separation and reclassification of Net parent investment | 0 | (141.5) | 0.1 | 141.4 | |||
Ending balance at Dec. 31, 2018 | $ 487.9 | $ 0 | $ 0.1 | $ 511.1 | $ 25.9 | $ (49.2) | |
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries or affiliates since it is our intention that such earnings will remain invested in those affiliates indefinitely. |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations Livent Corporation ("Livent", "we", "us", "Company" or "our"), manufactures lithium for use in a wide range of lithium products, which are used primarily in energy storage, specialty polymers, and chemical synthesis applications. We serve a diverse group of markets. Our product offerings are primarily inorganic and generally have few cost-effective substitutes. A major growth driver for lithium in the future will be the rate of adoption of electric vehicles. Most markets for lithium chemicals are global with significant growth occurring both in Asia and North America, primarily driven by the development and manufacture of lithium-ion batteries. We are one of the primary producers of performance lithium compounds. The Separation On March 31, 2017, our parent, FMC Corporation ("Parent" or "FMC") publicly announced a plan to separate Livent into a publicly traded company (the “Separation”). Prior to the completion of the initial public offering ("IPO") on October 15, 2018, we were a wholly owned subsidiary of FMC, and all of our outstanding shares of common stock were owned by FMC. Following a series of restructuring steps, on October 1, 2018, prior to the IPO of Livent common stock, FMC transferred to us substantially all of the assets and liabilities of its lithium business (the “Lithium Business”). In exchange, we issued to FMC all 123 million shares of our common stock. On October 15, 2018 (the "Separation Date"), we completed the IPO and sold 20 million shares of Livent common stock to the public at a price of $17.00 per share. On November 8, 2018, the underwriters exercised, in full, their option (the "Over-allotment Option Exercise") to purchase an additional 3 million shares of our commons stock, the closing of which was completed on November 13, 2018. Our common stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “LTHM.” Net proceeds from the sale of 23 million shares of our common stock issued in connection with the IPO and Over-allotment Option Exercise were approximately $369 million , after deducting underwriting discounts and commissions. The net proceeds from the offering, after payment of financing fees and other IPO related costs, were subsequently distributed to FMC. Immediately following the IPO and Over-allotment Option Exercise, FMC owned approximately 84% of our outstanding common stock. Accordingly, we are considered a “controlled company” under the NYSE rules. Pursuant to U.S. GAAP, costs incurred associated with separation activities are expensed as incurred. For the Livent Separation, these costs primarily consist of legal, accounting, professional advisory and other transaction fees associated with the preparation and execution of separation activities. Livent generally expects to continue to incur such separation related costs up to one year from the Separation Date or until such time an orderly separation and transition of various functions and processes is in place. The Distribution FMC has informed us that it plans to make a tax-free distribution to its stockholders of all of its remaining equity interest in us on March 1, 2019. The distribution (referred to in this Annual Report on Form 10-K as the "Distribution") is expected to be effected as a dividend to all FMC stockholders. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information Basis of presentation . The accompanying consolidated and combined financial statements of Livent include the historical accounts of the FMC Lithium segment ("Lithium Business") of FMC , a publicly traded company incorporated in Delaware (United States). Principles of consolidation and combination. For all periods prior to the Separation, our combined financial statements were derived from FMC's consolidated financial statements and accounting records where the Lithium Business was a division of FMC. These combined financial statements were prepared in accordance with U.S. GAAP and reflect the historical basis and carrying values established when the Company was part of FMC. The accompanying combined financial statements include the operations, financial position, and cash flows of Livent, as carved out from the historical consolidated financial statements of FMC using both specific identification and the allocation methodologies described below. Transactions between the Lithium Business and FMC and its subsidiaries are reflected in the consolidated and combined balance sheets as “Net parent investment” and in the consolidated and combined statements of cash flows as a financing activity in “Net change in net parent investment.” We believe the assumptions underlying the consolidated and combined financial statements, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Livent. However, the pre-Separation financial statements and activities do not purport to reflect what the results of operations, comprehensive income/(loss), financial position, equity or cash flows would have been had we operated as an independent public company during the periods presented. • The combined statements of income for the years ended December 31, 2017 and December 31, 2016 and the pre-Separation period in the consolidated and combined statement of income for year ended December 31, 2018 reflect the direct, indirect and allocated costs for various corporate function services historically provided by FMC, such as information technology, compensation and benefits, human resources, engineering, finance and internal audit. These allocations are based on either a specific identification basis or, when specific identification is not practicable, proportional allocation methods (i.e., using third-party sales, headcount, etc.), depending on the nature of the services. Actual costs that would have been incurred if Livent had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions in various areas such as information technology and infrastructure. • Net parent investment represents our Parent’s historical investment in us, our accumulated net earnings after taxes and the net effect of transactions with and allocations from our Parent. For the combined statements of income for the years ended December 31, 2017 and December 31, 2016 and the pre-Separation period in the consolidated and combined statement of income for year ended December 31, 2018 , Livent functioned as part of the larger group of businesses controlled by FMC and, accordingly, utilized centralized functions, such as facilities and information technology of FMC to support its operations. Accordingly, a portion of the shared service costs were historically allocated to Livent. FMC also performed certain corporate functions for Livent. The corporate expenses related to Livent have been allocated from the Parent. These allocated costs are primarily related to certain governance and corporate functions such as finance, internal audit, treasury, tax, human resources benefits and compensation, legal, investor relations, and certain other costs. Where it is possible to specifically attribute such expenses to activities of Livent, these amounts have been charged or credited directly to Livent without allocation or apportionment. Allocation of other such expenses is based on a reasonable reflection of the utilization of the service provided to or benefits received by Livent during the periods presented on a consistent basis, such as, but not limited to, a relative percentage of headcount, tangible assets, third-party sales, cost of goods sold or segment operating profit, defined by FMC as segment revenue less operating expenses. The aggregate costs allocated for these functions to Livent are included in “Corporate allocations” within the consolidated and combined statements of operations and are shown in detail within the following table. Year Ended December 31, (in Millions) 2018 (5) 2017 2016 Livent shared service costs (1) $ 4.6 $ 5.4 $ 3.8 FMC Corporate shared service costs allocated to Livent (2) 1.9 3.8 1.8 Stock compensation expense (3) 2.7 2.6 1.3 FMC Corporate expense allocation (4) 6.5 10.3 6.3 Total Corporate allocations $ 15.7 $ 22.1 $ 13.2 ____________________ (1) Represents Livent’s portion of shared service costs historically allocated to Livent through the October 15, 2018 Separation Date. Does not include $6.4 million , $7.1 million and $5.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, of shared service costs historically allocated to and recorded within “Cost of sales” on the consolidated and combined statements of operations. (2) Amounts represent the Parent's Corporate shared service cost allocated to Livent. (3) Stock compensation expense represents the allocation of the Parent’s Corporate stock compensation expense and the costs specifically identifiable to Livent employees. These amounts exclude the previously allocated portion included within Livent's shared service costs of $0.6 million , $0.8 million and $0.8 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. (4) Represents the additional costs of the centralized functions of the Parent allocated to Livent. (5) Includes Corporate allocations through the Separation Date. Expenses were not allocated to Livent from FMC subsequent to the Separation Date. Costs incurred under the TSA subsequent to the Separation Date are direct charges to our consolidated and combined statements of operations. Subsequent to the Separation, the accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Earnings per share. The weighted average common shares outstanding for both basic and diluted earnings per share for all pre-Separation periods presented was calculated, in accordance with ASC 260, Earnings Per Share (ASC 260), using 123 million shares of common stock outstanding, which reflects the number of shares held by FMC prior to the IPO. In connection with our IPO, we issued 20 million shares of our common stock to the public at a public offering price of $17.00 per share. The IPO closed on October 15, 2018 . On November 13, 2018 , the Company closed on the sale of an additional 3 million shares of its common stock pursuant to the Over-allotment Option Exercise. In accordance with ASC 260, the 23 million shares issued in connection with the IPO and Over-allotment Option Exercise are included in earnings per share calculations for periods subsequent to the closing of the IPO and Over-allotment Option Exercise and are not included in the earnings per share calculations for periods prior to the closing of the IPO. See Note 14 for further information regarding earnings per share. Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results are likely to differ from those estimates, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. Trade receivables, net of allowance . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a general formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. Our method of calculating the general formula consists of estimating the recoverability of trade receivables based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Our analysis of trade receivable collection risk is performed quarterly, and the allowance is adjusted accordingly. The allowance for trade receivable was less than $0.1 million as of December 31, 2018 and 2017 . The provision to the allowance for receivables charged against operations was less than $0.1 million for the year ended December 31, 2018 . There was no provision to the allowance for trade receivables charged against operations for the years ended December 31, 2017 and 2016 . Inventories . Inventories are stated at the lower of cost or market value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All domestic inventories, excluding materials and supplies, are determined on a last-in, first-out (“LIFO”) basis and our remaining inventories are recorded on a first-in, first-out (“FIFO”) basis. See Note 5 for more information. Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is provided principally on the straight-line basis over the estimated useful lives of the assets (land improvements — 20 years , buildings — 20 to 40 years , and machinery and equipment — three to 18 years ). Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. Capitalized interest . Capitalized interest balances as of December 31, 2018 and 2017 were $8.5 million and $8.2 million , respectively. For the years ended December 31, 2018 , 2017 and 2016 we capitalized interest costs of $0.2 million , $1.5 million , and $1.3 million , respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. Impairments of long-lived assets . We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. There were no impairments during the three years ended December 31, 2018 . Asset retirement obligations . We record asset retirement obligations (“AROs”) at fair value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. The carrying amounts for the AROs for the years ended December 31, 2018 and 2017 are $0.2 million and $0.2 million , respectively. These amounts are included in "Other long-term liabilities" on the consolidated and combined balance sheets. Financial instruments. Our financial instruments are trade receivables, trade payables and derivatives. These financial instruments are recorded at cost, which approximates fair value due to the short-term nature of the instruments. Our Parent also entered into derivative contracts to hedge exposures at the corporate level. Prior to the Separation, these activities represent activities managed at the corporate level and were not specific to our business, the associated assets or liabilities related to these transactions were not included in the consolidated and combined balance sheets, but the gains or losses associated with these transactions were included in the consolidated and combined statements of operations as these costs are deemed costs incurred to run our business. Subsequent to the Separation, Livent entered into derivative contracts to hedge exposures and the associated assets or liabilities were recorded in our consolidated and combined balance sheets and the gains or losses associated with these transactions were included in the consolidated and combined statements of income. Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. Revenue recognition . Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated and combined statements of operations. We record a liability until remitted to the respective taxing authority. See Note 4 for further details regarding revenue recognition. Research and Development . Research and development costs are expensed as incurred. Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability in Accrued and other liabilities in our consolidated and combined balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. Geographical revenue disclosures based on the location of our customers are included in Note 4 within these consolidated and combined financial statements. Stock-based compensation. Prior to the consummation of the Separation, we did not sponsor any stock compensation plans. Instead, our eligible employees participated in our Parent’s sponsored stock-based compensation plans. Prior to the consummation of the Separation, our employees continued to participate in the Parent’s stock-based compensation plans and we recognized stock-based compensation expense based on the awards granted to our employees. We also recorded an allocation of stock-based compensation for corporate employees based on segment operating profit, defined by FMC as segment revenue less operating expenses. Stock-based compensation expense for the three years ended December 31, 2018 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock based compensation expense as they occur. See Note 12 for more information. In October 2018, Livent registered 4,290,000 shares of Livent common stock which, as of December 31, 2018 , is authorized for issuance pursuant to awards under the Livent Corporation Incentive Compensation and Stock Plan (the "Livent Plan"). In connection with the IPO, Livent granted certain of our executives special, one-time equity awards pursuant to the Livent Plan. Pension and other postretirement benefits. FMC provides a range of benefits, including pensions, postretirement and postemployment benefits to eligible current and former employees, of which certain of our employees participate. For purposes of the Livent's consolidated and combined financial statements, the U.S. defined benefit plan is being treated as a multiple employer plan. Accordingly, the benefit obligations, plan assets and accumulated other comprehensive income (loss) amounts are not shown in the consolidated and combined balance sheets. In connection with the Separation, the United Kingdom defined benefit pension plan (“U.K. Plan”), was a legal obligation of the Livent United Kingdom legal entity, has been included in the Livent financial statements up to the point of plan termination as described below. In 2016, FMC made a $20.7 million payment into our U.K. Plan in order to annuitize the remaining pension obligation. This action removed all future funding requirements for this plan. The assets of $45.2 million supporting the remaining pension obligation were moved into an annuity at December 31, 2016 which qualified as a Level 3 investment in the fair value hierarchy. In October 2017, FMC completed the buy-out of the annuity, completing the plan termination and relieving FMC of the pension liability for the U.K. Plan. The termination resulted in a settlement charge of $32.5 million . See Note 11 for more information. Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Where the available information is sufficient to estimate the amount of liability, that estimate has been used. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans (“OM&M”). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves. However, we are unable to reasonably estimate an amount in excess of our recorded reserves because we cannot reasonably estimate the period for which such OM&M plans will need to be in place or the future annual cost of such remediation, as conditions at these environmental sites change over time. Such additional OM&M costs could be significant in total but would be incurred over an extended period of years. Environmental remediation charges represent the costs for the continuing charges associated with environmental remediation at operating sites from previous years and from products that are no longer manufactured. Livent has one environmental remediation site located in Bessemer City, North Carolina. The charges associated with the cost of remediation for the years ended December 31, 2018 , 2017 and 2016 are $0.2 million , $0.4 million and $0.2 million , respectively. These amounts are recorded as a component within “Restructuring and other charges” on the consolidated and combined statements of income. The total environmental remediation liability as of December 31, 2018 and 2017 was $6.4 million and $6.4 million , respectively. Foreign currency . We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ income statements are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of Sales in our consolidated and combined statements of operations. We recorded transaction gains of $2.4 million , $2.1 million and $1.4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New Accounting guidance and regulatory items In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act ("the Act") within accumulated other comprehensive income (“AOCI”) to retained earnings. There are also new required disclosures such as a description of the accounting policy for releasing income tax effects from AOCI as well as certain disclosures in the period of adoption if a company elects to reclassify the income tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years, with early adoption permitted. We believe the adoption will not have a material impact on our consolidated and combined financial statements other than a reclassification of certain income tax effects. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) . ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We are evaluating the effect the guidance will have on our consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). Under the new guidance, lessees are required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. We have adopted this standard as of January 1, 2019 utilizing a modified retrospective approach and have elected the optional transition practical expedient. Under this transition practical expedient, only contracts that exist as of, or are entered into on or after January 1, 2019 are transitioned, with a cumulative effect adjustment as of January 1, 2019. All comparative periods prior to January 1, 2019 will retain the financial reporting and disclosure requirements of ASC 840. While we are still finalizing the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, we have performed various assessment, lease abstraction, and operational activities as part of our established project plan to support the implementation of the new lease standard. As part of our impact assessment, we have performed scoping exercises and determined our current lease population, which is approximately 40 leases. This population includes leases identified in our embedded lease assessment process. Information from these leases have been abstracted into our lease accounting software, which will assist us in the quantification of the expected impact on the consolidated balance sheets and facilitate the calculations of the related accounting entries and disclosures. We continue to update this population in our software as new leases are entered or modified and reassess the impact, accordingly. We have also assessed any potential impacts on our internal controls, business processes, and accounting policies related to both the implementation and ongoing compliance of the new guidance and have made updates and/or created new controls and processes to address the significant changes as a result of the adoption of ASU 2016-02. Additionally, we have developed drafts of our new footnote disclosures required under the new standard that will be disclosed in our first quarter Form 10-Q, but will continue to work on finalizing them during the first quarter of 2019. Although we are still finalizing the quantitative effects of ASU 2016-02, we expect total assets and total liabilities will increase between $15 million and $20 million in the period of adoption (this range represents the discounted impact). Recently adopted accounting guidance In March 2018, the FASB issued ASU No. 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"). This update amends several paragraphs in ASC 740, Income Taxes , that contain SEC guidance related to SAB 118, which was previously issued in December 2017 by the SEC. These amendments are effective upon inclusion in the codification. We identified certain adjustments to amounts previously recorded for the remeasurement of the net deferred tax liability and nonrecurring repatriation tax on accumulated earnings of foreign subsidiaries that results in a net tax expense of $0.6 million . Our analysis under SAB 118 is complete. Refer to Note 9 for more information. In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation - Scope of Modification Accounting . This ASU provides guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new standard is effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date). There was no impact to our consolidated and combined financial statements upon adoption. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU provides requirements for the presentation and disclosure of net benefit cost on the financial statements. The service cost component of net benefit cost is required to be presented in the income statement line item where the associated compensation cost is reported, while the other components of net benefit cost are required to be presented outside of operating income. The new standard is effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date). We adopted this standard on a retrospective basis in the first quarter of 2018. As a result, we have reclassified “Non-operating pension (benefit)/settlement charges” out of “Income from operations before interest expense, net and income taxes” and into “Income from operations before income taxes.” There was no impact to “Net income” on our consolidated and combined statements of operations. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . Under the new guidance, an entity will recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard was effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date), with early adoption permitted only in the first quarter of a fiscal year. We adopted this standard beginning in 2018. There was no material impact to our consolidated financial statements upon adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Accounting Standards Codification Topic 606 . This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance replaced most existing revenue recognition guidance in U.S. GAAP. On January 1, 2018, we adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) using the modified retrospective adoption method. In order to adopt this standard, we performed an impact assessment by analyzing revenue transactions and arrangements that are representative of our revenue streams. Additionally, we assessed any potential impacts on our internal controls and processes related to both the implementation and ongoing compliance of the new guidance. The standard impacted our disclosures including disclosures presenting further disaggregation of revenue. Refer to Note 4 for further information. Based on our assessment, there was no cumulative catchup effect of initially applying ASC 606 that required an adjustment to our retained earnings. Utilizing the practical expedients and exemptions allowed under the modified retrospective method, ASC 606 was only applied to existing contracts (i.e. those for which we have remaining performance obligations) as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC 606 was not applied to contracts that were completed prior to December 31, 2017. The adoption of ASC 606 had no impact on our financial position, results of operations or cash flows. |
(Notes)
(Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas and by product categories. The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2018 2017 2016 North America (1) $ 84.4 $ 81.4 $ 65.3 Latin America 2.0 2.0 2.4 Europe, Middle East & Africa 74.5 59.5 42.1 Asia Pacific (1) 281.6 204.5 154.3 Total Revenue $ 442.5 $ 347.4 $ 264.1 ____________________ (1) In 2018 , countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the year ended December 31, 2018 for Japan, the U.S. and China totaled $116.5 million , $82.4 million and $118.6 million , respectively, while sales for the year ended December 31, 2017 totaled $92.2 million , $78.5 million and $69.9 million , respectively, and sales for the year ended December 31, 2016 totaled $68.5 million , $63.5 million and $51.5 million , respectively. For the years ended December 31, 2018 , 2017 and 2016 , one customer accounted for approximately 14% , 14% and 13% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 53% , 45% and 40% of our revenue, respectively. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2018 2017 2016 Lithium Hydroxide $ 222.7 $ 157.5 $ 68.2 Butyllithium 99.0 91.3 83.7 High Purity Lithium Metal and Other Specialty Compounds 62.5 58.1 49.4 Lithium Carbonate and Lithium Chloride 58.3 40.5 62.8 Total Revenue $ 442.5 $ 347.4 $ 264.1 Our lithium hydroxide and butyllithium products are developed and sold to global and regional customers in the electronic vehicle, polymer and specialty alloy metals market. Lithium hydroxide products are used in advanced batteries for hybrid electric, plug-in hybrid, and all-electric vehicles as well as other products that require portable energy storage such as smart phones, tablets, laptop computers, and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars and agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators and in the synthesis of pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as distribution costs. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated and combined statements of operations. We record a liability until remitted to the respective taxing authority. Variable Consideration As a part of our customary business practice, we may offer sales incentives to our customers, such as volume discounts or rebates. Variable consideration given can differ by product. For all such contracts that include any variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Although determining the transaction price requires significant judgment, we have significant historical experience with incentives provided to customers and estimating the expected consideration considering historical patterns of incentive payouts. These estimates are re-assessed each reporting period as required. In addition to the variable consideration described above, in certain instances, we may require our customers to meet certain volume thresholds within their contract term. We estimate what amount of variable consideration should be included in the transaction price at contract inception and continually reassesses this estimation each reporting period to determine situations when the minimum volume thresholds will not be met. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In those circumstances, we apply the guidance on breakage and estimate the amount of the shortfall and recognize it over the remaining performance obligations in the contract. Right of Return We warrant to our customers that our products conform to mutually agreed product specifications. This offering is accounted for as a right of return and the transaction price is adjusted for an estimate of expected returns. Per our historical experience, returns due to nonconformity are very uncommon; as such our adjustment to transaction price for our estimate of expected return is not material. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. The following table presents the opening and closing balances of our receivables, net of allowances and contract liabilities from contracts with customers. Balance as of (in Millions) December 31, 2018 December 31, 2017 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 141.4 $ 122.7 $ 18.7 Contract liabilities: Advance payments from customers — 1.8 (1.8 ) The amount of revenue recognized in the current period that was included in the opening contract liability balance was $1.8 million . The balance of receivables from contracts with customers listed in the table above represents the current trade receivables, net of allowance for doubtful accounts. The allowance for receivables represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Performance obligations At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Based on our evaluation, we have determined that our current contracts do not contain more than one single performance obligation. Revenue is recognized when (or as) the performance obligation is satisfied, which is when the customer obtains control of the good or service. Periodically, we may enter into contracts with customers which require them to submit a forecast of non-binding purchase obligations to us. These forecasts are typically provided by the customer to us in good faith, and there are no penalties or obligations if the forecasts are not met. Accordingly, we have determined that these are optional purchases and do not represent material rights and are not considered as unsatisfied (or partially satisfied) performance obligations for the purposes of this disclosure. Occasionally, we may enter into multi-year take or pay supply agreements with customers. The aggregate amount of revenue expected to be recognized related to these contracts’ performance obligations that are unsatisfied or partially satisfied is approximately $66 million in 2019 and $49 million in 2020. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer (refer to the sales of goods section for our determination of transfer of control). However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. Practical Expedients and Exemptions We have elected the following practical expedients following the adoption of ASC 606: a. Costs of obtaining a contract: We incur certain costs such as sales commissions which are incremental to obtaining the contract. We have taken the practical expedient of expensing such costs to obtain a contract, as and when they are incurred, when the expected amortization period is one year or less. b. Significant financing component: We elected not to adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. c. Remaining performance obligations: We elected not to disclose the aggregate amount of the transaction price allocated to remaining performance obligations for our contracts that are one year or less, as the revenue is expected to be recognized within one year. Additionally, we have elected not to disclose information about variable considerations for remaining, wholly unsatisfied performance obligations for which the criteria in paragraph 606-10-32-40 have been met. d. Shipping and handling costs: We elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. e. Measurement of transaction price: We have elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: December 31, (in Millions) 2018 2017 Finished goods $ 22.2 $ 4.0 Semi-finished goods 36.6 34.3 Raw materials, supplies, and other 14.5 12.2 FIFO inventory $ 73.3 $ 50.5 Less: Excess of FIFO cost over LIFO cost (1.5 ) (0.9 ) Inventories, net $ 71.8 $ 49.6 Approximately 21% and 24% of our inventories in 2018 and 2017 , respectively were recorded on the LIFO basis. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following: December 31, (in Millions) 2018 2017 Land and land improvements $ 78.8 $ 65.0 Buildings 53.7 62.9 Machinery and equipment 250.7 225.7 Construction in progress 85.6 53.6 Total cost $ 468.8 $ 407.2 Accumulated depreciation (193.1 ) (186.5 ) Property, plant and equipment, net $ 275.7 $ 220.7 Depreciation expense was $15 million , $14.9 million , and $14.2 million in 2018 , 2017 and 2016 , respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows total restructuring and other charges included in the respective line items of the consolidated and combined statements of income: Year Ended December 31, (in Millions) 2018 2017 2016 Restructuring charges and asset disposals $ 2.4 $ 8.3 $ — Other charges, net 0.2 0.4 1.0 Total restructuring and other charges $ 2.6 $ 8.7 $ 1.0 Restructuring charges and asset disposals Year Ended December 31, 2018 2017 (in Millions) Bessemer City Miscellaneous Items Total Bessemer City Miscellaneous Items Total Asset disposal charges (1) $ 0.5 $ — $ 0.5 $ 4.0 $ — $ 4.0 Miscellaneous charges (2) 1.9 — 1.9 3.7 0.5 4.2 Severance and employee benefits (3) — — — 0.1 — 0.1 Total restructuring charges (4) $ 2.4 $ — $ 2.4 $ 7.8 $ 0.5 $ 8.3 ____________________ (1) Primarily represents fixed asset write-offs which were or are to be abandoned. (2) Primarily represents costs associated with demolition and other miscellaneous exit costs. (3) Represents severance and employee benefits charges. (4) There were no restructuring charges and asset disposals for the year ended December 31, 2016. Roll forward of restructuring reserves The following table shows a roll forward of restructuring reserves that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (1) Balance December 31, 2016 $ 0.3 Change in reserves (2) 3.8 Cash payments (0.9 ) Other (0.3 ) Balance December 31, 2017 $ 2.9 Change in reserves (2) 1.9 Cash payments (1.2 ) Balance December 31, 2018 $ 3.6 ____________________ (1) Included in "Accrued and other current liabilities" on the consolidated and combined balance sheets. (2) Primarily related to facility shutdowns and other miscellaneous exit costs. Other charges, net Year Ended December 31, (in Millions) 2018 2017 2016 Argentina devaluation $ — $ — $ 0.6 Environmental charges, net 0.2 0.4 0.2 Other items, net — — 0.2 Other charges, net $ 0.2 $ 0.4 $ 1.0 Argentina Devaluation On December 17, 2015, the Argentina government initiated actions to significantly devalue its currency. These actions continued into a portion of first quarter of 2016. These actions created an immediate loss associated with the impacts of the remeasurement of our local balance sheet. Due to the severity of the event and its immediate impact to our operations in the country, the charge associated with the remeasurement was included within restructuring and other charges in our combined statements of operations during the period. We believe these actions have ended and do not expect further charges for remeasurement to be included within restructuring and other charges. Environmental charges, net Environmental charges represent charges associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. |
Environmental Obligations
Environmental Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Obligations | Environmental Obligations We are subject to various federal, state, local and foreign environmental laws and regulations that govern emissions of air pollutants, discharges of water pollutants, and the manufacture, storage, handling and disposal of hazardous substances, hazardous wastes and other toxic materials and remediation of contaminated sites. We are also subject to liabilities arising under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state laws that impose responsibility on persons who arranged for the disposal of hazardous substances, and on current and previous owners and operators of a facility for the clean-up of hazardous substances released from the facility into the environment. We are also subject to liabilities under the Resource Conservation and Recovery Act (“RCRA”) and analogous state laws that require owners and operators of facilities that have treated, stored or disposed of hazardous waste pursuant to a RCRA permit to follow certain waste management practices and to clean up releases of hazardous substances into the environment associated with past or present practices. In addition, when deemed appropriate, we enter certain sites with potential liability into voluntary remediation compliance programs, which are also subject to guidelines that require owners and operators, current and previous, to clean up releases of hazardous substances into the environment associated with past or present practices. Environmental liabilities consist of obligations relating to waste handling and the remediation and/or study of sites at which we are alleged to have released or disposed of hazardous substances. As of the periods presented, the Bessemer City site located in North Carolina is the only site for which we have a reserve. We have provided reserves for potential environmental obligations that we consider probable and for which a reasonable estimate of the obligation can be made. Accordingly, total reserves of $6.4 million existed at each of the years ended December 31, 2018 and 2017 . The estimated reasonably possible environmental loss contingencies, net of expected recoveries, exceed amount accrued by approximately $3 million at December 31, 2018. This reasonably possible estimate is based upon information available as of the date of the filing and the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to the site. Although potential environmental remediation expenditures in excess of the reserves and estimated loss contingencies could be significant, the impact on our future combined financial results is not subject to reasonable estimation due to numerous uncertainties concerning the nature and scope of possible contamination, identification of remediation alternatives under constantly changing requirements, selection of new and diverse clean-up technologies to meet compliance standards, and the timing of potential expenditures. The liabilities arising from potential environmental obligations that have not been reserved for at this time may be material to any one quarter’s or year’s results of operations in the future. However, we believe any liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years. The table below is a roll forward of our total environmental reserves from December 31, 2016 to December 31, 2018 . (in Millions) Environmental Reserves Total Balance December 31, 2016 $ 6.3 Change in reserves 0.4 Cash payments (0.3 ) Balance December 31, 2017 $ 6.4 Change in reserves 0.2 Cash payments (0.2 ) Balance December 31, 2018 $ 6.4 The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2018 2017 Environmental reserves, current (1) $ 0.5 $ 0.5 Environmental reserves, long-term (2) 5.9 5.9 Total environmental reserves $ 6.4 $ 6.4 ______________ (1) These amounts are included within “Accrued and other liabilities” on the consolidated and combined balance sheets. (2) These amounts are included in "Environmental liabilities" on the consolidated and combined balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Tax Cuts and Jobs Act of 2017 On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Act”) was enacted in the United States. The Tax Act significantly revised the U.S. corporate income tax structure resulting in changes to the Company’s expected U.S. corporate taxes expense for 2017 and in future periods. Effective January 1, 2018, the Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, created new provisions related to foreign sourced earnings, and eliminated the deduction for domestic production activities. The Tax Act also imposed a one-time transition tax (“transition tax”) on the cumulative earnings and profits of foreign subsidiaries that were previously not repatriated and therefore not taxed for U.S. income tax purposes. For the year ended December 31, 2017 we recognized provisional expense of $11.1 million for the remeasurement of the Company’s U.S. net deferred tax liabilities and transition tax. In accordance with Staff Accounting Bulletin 118 ("SAB 118"), income tax effects of the Tax Act were refined upon obtaining, preparing, or analyzing additional information during the measurement period. During the twelve months ended December 31, 2018, we recorded an adjustment to our provisional expense in the amount $0.6 million regarding the transition tax and other effects of the Tax Act. At December 31, 2018, the Company had completed its accounting for the impacts of the Tax Act. For tax years beginning after December 31, 2017, the Tax Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”) and tax deductions for certain foreign-derived intangible income (“FDII”). For the year ended December 31, 2018, we recorded a tax benefit related to the FDII provisions of the Tax Act and an immaterial tax expense related to the GILTI provisions of the Tax Act. In addition, we made the accounting policy election to account for GILTI as it is incurred. The impacts of the Tax Act are presented herein as part of our results from operations. Domestic and foreign components of income from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2018 2017 2016 Domestic $ 38.6 $ 30.8 $ 10.6 Foreign 114.5 39.3 43.9 Total $ 153.1 $ 70.1 $ 54.5 The provision for income taxes attributable to income from operations consisted of: Year Ended December 31, (in Millions) 2018 2017 2016 Current: Federal (1) $ 11.7 $ 23.1 $ 4.5 Foreign 18.4 4.6 2.3 State — 0.9 0.2 Total current $ 30.1 $ 28.6 $ 7.0 Deferred: Federal (2) $ (0.1 ) $ (2.3 ) $ 0.1 Foreign (2.9 ) 1.7 0.3 State (0.1 ) (0.1 ) — Total deferred (3.1 ) (0.7 ) 0.4 Total $ 27.0 $ 27.9 $ 7.4 ____________________ (1) The years ended December 31, 2018 and December 31, 2017 i nclude the one-time impacts of the of the Tax Act, primarily related to transition tax, further discussed above within this Note. (2) The year ended December 31, 2017 i nclude the one-time impacts of the Tax Act, primarily related to the measurement of the Company’s U.S. domestic net deferred tax liabilities, further discussed above within this Note. The effective income tax rate applicable to income from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2018 2017 2016 U.S. Federal statutory rate $ 32.2 $ 24.5 $ 19.1 Impacts of Tax Cuts and Jobs Act Enactment (1) 0.6 11.1 — Foreign earnings subject to different tax rates (3.8 ) (2.6 ) (2.8 ) Foreign derived intangible income (2) (1.7 ) — — State and local income taxes, less federal income tax benefit (0.1 ) 0.5 0.2 Manufacturer's production deduction and miscellaneous tax credits — (1.2 ) (0.4 ) Tax on intercompany dividends and deemed dividends for tax purposes 4.1 — — Changes to unrecognized tax benefits 0.4 0.6 0.6 Other permanent items (2.2 ) (2.3 ) (1.4 ) Change in valuation allowance 2.2 (3.0 ) (7.2 ) Exchange gains and losses (3) (4.0 ) 1.4 (2.3 ) Other (0.7 ) (1.1 ) 1.6 Total Tax Provision $ 27.0 $ 27.9 $ 7.4 ____________________ (1) Includes the one-time impacts of the of the Tax Act, primarily related to transition tax and the decrease to the U.S. tax rate, further discussed above within this Note. (2) The year ended December 31, 2018 includes tax benefit associated with the impact related to FDII, further discussed above within this Note. (3) Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2018 2017 Environmental and restructuring $ 2.3 $ 2.2 Pension and other postretirement benefits 0.9 2.0 Net operating loss carry-forwards 2.6 0.3 Other assets and reserves 6.6 3.0 Deferred tax assets $ 12.4 $ 7.5 Valuation allowance, net (2.1 ) — Deferred tax assets, net of valuation allowance $ 10.3 $ 7.5 Property, plant and equipment, net (9.8 ) (13.3 ) Deferred tax liabilities (9.8 ) (13.3 ) Net deferred tax assets/(liabilities) $ 0.5 $ (5.8 ) We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. U.S. GAAP requires companies to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative, using a “more likely than not” standard. In assessing the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of deferred tax assets. This assessment considers, among other matters, the nature and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, and tax planning alternatives. At December 31, 2018, we had total foreign net operating loss carry-forwards of $2.6 million (tax effected) related to the Netherlands, Switzerland and U.K. expiring over various tax years. The tax losses incurred in Switzerland and the Netherlands are attributable to restructuring that occurred in 2018 in connection with the IPO. The activities in these jurisdictions are non-operational in nature and provide for limited forecasts of future taxable income. As a result, we have recorded a valuation allowance through income tax expense for the year end December 31, 2018. Taxable income and/or loss generated by us has been included in consolidated income tax returns of FMC when filing in jurisdictions where such filings are required, with all income tax payments made by the Parent to the taxing authorities. U.S. federal, state, and foreign income tax balances calculated in the current year tax expense as part of FMC’s consolidated tax returns in the amount of $16.9 million are presented within "Accrued and other liabilities" as a liability to FMC pursuant to the TMA. In taxing jurisdictions where we file as a standalone entity, we have recorded the current year income tax liability/benefit to income tax payable/receivable. Income taxes are not provided for any additional outside basis differences inherent in our investments in subsidiaries because the investments and related unremitted earnings are essentially permanent in duration or we have concluded that no additional tax liability will arise upon disposal. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings is not practicable due to the complexity of the hypothetical calculation. Uncertain Income Tax Positions U.S. GAAP accounting guidance for uncertainty in income taxes prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. We file tax returns in various jurisdictions. Pursuant to the TMA with FMC we have recorded amounts in uncertain tax positions at December 31, 2018 for tax positions that relate to our legacy business before IPO. In jurisdictions where we filed consolidated returns with FMC, and do not maintain the entity at IPO, our uncertain tax positions have been reduced as of December 31, 2018. We have recorded a $3.0 million indemnification asset from FMC regarding uncertain tax positions that are related to our legacy business before IPO and for which we are indemnified by FMC. As of December 31, 2018, the U. S. federal and state income tax returns are open for examination and adjustment for the 2018 tax year. Our significant foreign jurisdictions, which total 3 , are open for examination and adjustment during varying periods from 2013 - 2018. As of December 31, 2018 , we had total unrecognized tax benefits of $2.6 million , of which $0.1 million would unfavorably impact the effective tax rate from operations if recognized. As of December 31, 2017 , we had total unrecognized tax benefits of $7.5 million , of which $2.3 million would favorably impact the effective tax rate if recognized. Interest and penalties related to unrecognized tax benefits are reported as a component of income tax expense. For the years ended December 31, 2018 , 2017 and 2016 , we recognized interest and penalties of $0.3 million , $0.3 million , and $0.1 million , respectively, in the consolidated and combined statements of income. As of December 31, 2018 and 2017 , we have accrued interest and penalties in the consolidated and combined balance sheets of $0.3 million and $0.4 million , respectively. Due to the potential for resolution of federal, state, or foreign examinations, and the expiration of various jurisdictional statutes of limitation, it is reasonably possible that our liability for unrecognized tax benefits will decrease within the next 12 months by a range of zero to $1.0 million . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2018 2017 2016 Balance at beginning of year $ 7.5 $ 7.3 $ 6.5 Increases related to positions taken in the current year 0.6 1.3 2.0 Decreases related to positions taken in prior years (0.7 ) — — Decreases related to lapse of statutes of limitations (1.1 ) (1.3 ) (1.2 ) Increase in unrecognized tax benefits due to foreign currency translation (0.4 ) 0.2 — Decreases for tax positions resulting from the IPO (3.3 ) — — Balance at end of year (1) $ 2.6 $ 7.5 $ 7.3 ____________________ (1) At December 31, 2018 , 2017 , and 2016 we recognized an offsetting non-current deferred asset of $3.2 million , $5.1 million , and $5.3 million respectively, relating to specific uncertain tax positions presented above. We have recorded a $3.1 million indemnification liability at December 31, 2018 to FMC for assets where the offsetting uncertain tax position is with FMC. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt: Long-term debt consists of the following: December 31, 2018 Interest Rate Percentage Maturity Date Balance (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.3% 6.5% 2023 $ 34.0 Total long-term debt (2) $ 34.0 ____________________ (1) As of December 31, 2018 , there were $10.3 million in letters of credit outstanding under our Revolving Credit Facility and available funds under this facility were $355.7 million at December 31, 2018 . (2) As of December 31, 2018 , the Company had no debt maturing within one year. We had no debt outstanding as of December 31, 2017 . Revolving Credit Facility On September 28, 2018, we entered into a credit agreement among us, our subsidiary, FMC Lithium USA Corp., as borrowers (the “Borrowers”), certain of our wholly owned subsidiaries as guarantors, the lenders party thereto (the “Lenders”), Citibank, N.A., as administrative agent, and certain other financial institutions party thereto, as joint lead arrangers (the “Credit Agreement”). The Credit Agreement provides for a $400 million senior secured revolving credit facility, $50 million of which is available for the issuance of letters of credit for the account of the Borrowers, with an option, subject to certain conditions and limitations, to increase the aggregate amount of the revolving credit commitments to $600 million (the “Revolving Credit Facility”). The issuance of letters of credit and the proceeds of revolving credit loans made pursuant to the Revolving Credit Facility are available, and will be used, for general corporate purposes, including capital expenditures and permitted acquisitions, of the Borrowers and their subsidiaries. Amounts under the Revolving Credit Facility may be borrowed, repaid and re-borrowed from time to time until the final maturity date of the Revolving Credit Facility, which will be the fifth anniversary of the Revolving Credit Facility’s effective date. Voluntary prepayments and commitment reductions under the Revolving Credit Facility are permitted at any time without any prepayment premium upon proper notice and subject to minimum dollar amounts. Revolving loans under the Credit Agreement will bear interest at a floating rate, which will be a base rate or a Eurodollar rate equal to the London interbank offered rate for the relevant interest period, plus, in each case, an applicable margin based on our leverage ratio, as determined in accordance with the provisions of the Credit Agreement. The base rate will be the greatest of: the rate of interest announced publicly by Citibank, N.A. in New York City from time to time as its “base rate”; the federal funds effective rate plus 0.5% ; and a Eurodollar rate for a one-month interest period plus 1% . Each Borrower on a joint and several basis is required to pay a commitment fee quarterly in arrears on the average daily unused amount of each Lender’s revolving credit commitment at a rate equal to an applicable percentage based on the leverage ratio, as determined in accordance with the provisions of the Credit Agreement. The applicable margin and the commitment fee are subject to adjustment as provided in the Credit Agreement. The Borrowers’ domestic material subsidiaries (the “Guarantors”) will guarantee the obligations of the Borrowers under the Revolving Credit Facility. The obligations of the Borrowers and the Guarantors are secured by all of the present and future assets of the Borrowers and the Guarantors, including the Borrowers’ facility and real estate in Bessemer City, North Carolina, subject to certain exceptions and exclusions as set forth in the Credit Agreement and other security and collateral documents. The Credit Agreement contains certain affirmative and negative covenants that are binding on the Borrowers and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Fees incurred to secure the Revolving Credit Facility have been deferred and will be amortized over the term of the arrangement. Maturities of long-term debt Maturities of long-term debt outstanding under the Revolving Credit Facility, at December 31, 2018 , are $34 million in 2023 . Covenants Among other restrictions, our Revolving Credit Facility contains financial covenants applicable to Livent and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). We were in compliance with all covenants at December 31, 2018 . |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Certain of our employees, who continued to be employees of FMC until consummation of the Separation described in Note 1, participated in certain funded defined benefit pension and other domestic postretirement plans sponsored by FMC (the “Benefit Plans”), which include participants from FMC’s other business. For the year ended December 31, 2016, FMC had a U.S. qualified plan and nonqualified plan (the “U.S. Plans”) and a United Kingdom (the “U.K. Plan”), Ireland, Belgium, and Norway defined benefit pension plan. The Ireland, Belgium and Norway defined benefit plans were related to the other FMC segments and did not support the Lithium Business. FMC has certain defined benefit pension plans that are specifically designated only for Lithium employees that are included within the consolidated and combined balance sheets. The majority of qualifying employees participate in the FMC-sponsored pension plans that are accounted for by the Lithium Business as multiple employer plans that are not included within the consolidated and combined balance sheets. For the years ended December 31, 2018 , 2017 and 2016 , we recorded net annual periodic pension costs of $0.5 million , $32.5 million and $4.9 million , respectively. These include pension costs allocated through the Parent’s shared service cost allocation of $0.9 million for the year ended December 31, 2018 and $1.2 million for each of the years ended December 31, 2017 and 2016 . U.S. Plans We did not record an asset or liability in the combined balance sheets to recognize the funded status of the U.S. Plan. Instead, we recorded net pension cost for the U.S. Plan. This net expense represents an approximation of our portion of the Parent’s net annual periodic pension cost of the U.S. Plan. The Lithium Business’ portion of the Parent’s net annual periodic pension cost was allocated based on Lithium employees’ relative participation in the plan. In addition to the pension and other postretirement benefits, our employees took part in the FMC Corporation Savings and Investment Plan (the “FMC Contribution Plan”). The Contribution Plan is a defined contribution plan, which covers substantially all of FMC’s U.S. employees (which includes our employees). For eligible Lithium employees participating in the plan, except for those covered by certain collective bargaining agreements, FMC makes matching contributions of 80% of the portion of those contributions up to five percent of the employee’s compensation. Additionally, effective July 1, 2007, all newly hired and rehired salaried and nonunion employees receive an annual employer contribution of five percent of the employee’s eligible compensation, since these employees are no longer eligible to participate in FMC’s Benefit Plans. We recorded net expense of $0.5 million for December 31, 2018 and less than $0.1 million for each the years ended December 31, 2017 , and 2016 for our employees’ participation in the FMC Contribution Plan. U.K. Plan In connection with the Separation, the U.K. Plan, which was a legal obligation of the Lithium United Kingdom legal entity, has been included in the Lithium Business combined financial statements up through the period of plan termination as described below. In 2016, FMC made a $20.7 million payment into our U.K. Plan in order to annuitize the remaining pension obligation. This action removed all future funding requirements for the U.K. Plan. The assets of $45.2 million supporting the remaining pension obligation were moved into an annuity at December 31, 2016 which qualified as a Level 3 investment in the fair value hierarchy table below. In October 2017, FMC completed the buy-out of the annuity, completing the plan termination and relieving FMC of the pension liability for the U.K. Plan. The termination resulted in a settlement charge of $32.5 million . The funded status of our U.K. Plan and net periodic benefit cost recognized in our consolidated and combined financial statements as of December 31, are shown in the tables below. We are required to recognize in our consolidated and combined balance sheets the overfunded and underfunded status of our defined benefit postretirement plans. The overfunded or underfunded status is defined as the difference between the fair value of plan assets and the projected benefit obligation. We are also required to recognize as a component of other comprehensive income the actuarial gains and losses and the prior service costs and credits that arise during the period. There was no defined benefit postretirement activity or balances for 2018. The following table summarizes the components of our defined benefit postretirement plans and reflect a measurement date of December 31, 2017: Pensions December 31, (in Millions) 2017 Change in projected benefit obligation Projected benefit obligation at January 1 $ 46.0 Interest cost 0.5 Actuarial gain (1.5 ) Foreign currency exchange rate changes 3.3 Settlement (47.4 ) Benefits paid (0.9 ) Projected benefit obligation at December 31 $ — Change in plan assets Fair value of plan assets at January 1 $ 45.2 Actual return on plan assets (0.4 ) Foreign currency exchange rate changes 3.3 Company contributions 1.1 Actual expenses (0.9 ) Settlement (47.4 ) Benefits paid (0.9 ) Fair value of plan assets at December 31 $ — Funded Status U.K. plan — Net funded status of the plan $ — Amount recognized in the consolidated and combined balance sheets: Accrued benefit liability — Total $ — Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: Pensions Year Ended December 31, (in Millions) 2017 Current year net actuarial gain $ (0.7 ) Amortization of net actuarial loss (0.8 ) Settlement charge (32.5 ) Foreign currency exchange rate changes on the above line items 2.3 Total recognized in other comprehensive income, before taxes $ (31.7 ) Total recognized in other comprehensive income, after taxes $ (26.3 ) The following table summarizes the weighted-average assumptions used for and the components of net annual benefit cost (income): Year Ended December 31, Pensions (in Millions, except for percentages) 2017 2016 Discount rate 1.35 % 1.20 % Expected return on plan assets 1.20 % 6.30 % Rate of compensation increase N/A N/A Components of net annual benefit cost: Interest cost $ 0.5 $ 1.0 Expected return on plan assets 0.5 (1.4 ) Amortization of net actuarial and other loss 0.8 0.3 Recognized loss due to settlement 32.5 — Net annual benefit cost $ 34.3 $ (0.1 ) For the year ended December 31, 2017 , we recorded a settlement charge of $32.5 million related to the termination of the U.K. pension plan. We made contributions to our pension plan of $1.1 million for the year ended December 31, 2017 . |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock Compensation Plans Livent Corporation Incentive Compensation and Stock Plan Effective October 11, 2018, Livent registered 4,290,000 shares of Livent common stock which were authorized for issuance pursuant to awards under the Livent Corporation Incentive Compensation and Stock Plan (the "Livent Plan"). The Livent Plan provides for the grant of a variety of cash and equity awards to officers, directors, employees and consultants, including stock options, restricted stock, restricted stock units (including performance units), stock appreciation rights, and management incentive awards. The Compensation and Organization Committee of the Livent Board of Directors (the “Livent Committee”) has the authority to amend the Livent Plan at any time, approve financial targets, award grants, establish performance objectives and conditions and the times and conditions for payment of awards. The Livent Corporation Non-Employee Directors’ Compensation Policy, administered by the Nominating and Corporate Governance Committee of the Board of Directors, sets forth the compensation that may be paid to the directors, including stock options, restricted stock units and cash retainers and fees. Stock options granted under the Livent Plan may be incentive or nonqualified stock options. The exercise price for stock options may not be less than the fair market value of the stock at the date of grant. Awards granted under the Livent Plan vest or become exercisable or payable at the time designated by the Livent Committee. The options granted in 2018 will vest in two equal installments on the third and fourth anniversaries of the date of grant, subject generally to continued employment. Incentive and nonqualified options granted under the Livent Plan expire not later than 10 years from the grant date. Under the Livent Plan, awards of restricted stock units ("RSUs") vest over periods designated by the Livent Committee. The 2018 RSU grants to employees vest on the same schedule as the stock options granted in 2018. The 2018 RSUs granted to non-employee directors vest at the Company's next annual meeting of stockholders following the grant date. Compensation cost is recognized over the vesting periods based on the market value of Livent common stock on the grant date of the award. IPO Awards - The stock options and RSUs described above were granted primarily in connection with the IPO. The grant date fair value of the IPO Awards granted to employees and executives was approximately $7.2 million , of which $3.6 million was for RSUs and $3.6 million was for stock options. The grant date fair value of the IPO Awards granted to non-employee directors was $0.2 million , all of which was for RSUs. The actual number of shares of Livent common stock underlying the IPO Awards was determined by dividing the target equity value of the award by the then-current value of Livent common stock. Stock Compensation We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2018 Stock Option Expense, net of taxes of less than $0.1 $ 0.2 Restricted Stock Expense, net of taxes of $0.1 0.2 Total Stock Compensation Expense, net of taxes of $0.1 (1) $ 0.4 ____________________ (1) This expense is classified as "Selling, general and administrative expenses" in our consolidated and combined statements of operations. After the Separation, an additional $0.4 million of stock compensation expense, not included in the table above, was recorded net of taxes of $0.1 million in the fourth quarter of 2018 related to awards held by Livent employees that were issued under the FMC Corporation Incentive Compensation and Stock Plan as discussed below . Stock Options The grant date fair values of the stock options granted in the year ended December 31, 2018 , were estimated using the Black-Scholes option valuation model, the key assumptions for which are listed in the table below. The expected volatility assumption is based on the historical volatility of a group of twelve of our publicly traded peers that operate in the specialty chemical sector and five companies that have recently been spun off from larger publicly traded companies. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury securities with terms equal to the expected timing of stock option exercises as of the grant date. The dividend yield assumption reflects anticipated dividends on Livent's common stock. Livent stock options granted in 2018 have graded vesting of 50% in three years and 50% in four year following the grant date and expire ten years from the date of grant. Black Scholes valuation assumptions for Livent Plan stock option grants: 2018 Expected dividend yield —% Expected volatility 21.71% Expected life (in years) 6.76 Risk-free interest rate 3.11% The weighted-average grant date fair value of options granted during the year ended December 31, 2018 was $5.23 per share. The following summary shows stock option activity for the Livent Plan, which consisted of the IPO Awards, for the year ended December 31, 2018 : Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding December 31, 2017 — $ — $ — Granted 716,256 16.99 — Outstanding December 31, 2018 716,256 9.8 years 16.99 — Exercisable at December 31, 2018 — — — As of December 31, 2018 , we had total remaining unrecognized compensation cost related to unvested stock options of $3.5 million which will be amortized over the weighted-average remaining requisite service period of approximately 3.8 years. Restricted Stock Unit Awards The grant date fair value of RSUs under the Livent Plan is based on the market price per share of Livent's common stock on the date of grant, and the related compensation cost is amortized to expense on a straight-line basis over the vesting period during which the employees perform related services, which for the 2018 RSU grants is graded vesting of 50% in three years and 50% in four years following the grant date. The following table shows RSU activity of the Livent Plan, which consisted of the IPO Awards, for the year ended December 31, 2018 : Restricted Stock Units Number of awards Weighted-Average Grant Date Fair Value Nonvested at December 31, 2017 — $ — Granted 237,669 16.94 Converted FMC awards (1) 12,117 17.00 Nonvested at December 31, 2018 249,786 16.94 ____________________ (1) 2,443 shares of RSUs held by Livent employees under the FMC Plan converted to 12,117 shares of RSUs under the Livent Plan on October 10, 2018 based on the conversion rate of 4.96 Livent Plan shares for each FMC Plan share. As of December 31, 2018 , the Livent Plan had total remaining unrecognized compensation cost related to unvested RSUs of $3.9 million which will be amortized over the weighted-average remaining requisite service period of approximately 3.1 years FMC Corporation Incentive Compensation and Stock Plan ("FMC Plan") FMC has a share-based compensation plan, in which Lithium Business employees were eligible to participate prior to the IPO. Prior to the IPO, the Lithium Business was allocated an apportioned amount of stock-based compensation expenses related to these awards based on the awards and terms previously granted to its employees as well as an allocation of the Parent’s corporate employee expenses. The consolidated and combined financial statements include share-based compensation expense associated with our employees and FMC's costs that have been allocated to us based on awards and terms previously granted. The grant-date fair value of these awards is expensed over the vesting period during which employees perform related services. For the years ended December 31, 2018 , 2017 and 2016 , share-based compensation expense associated with the FMC Plan of $2.7 million , $2.6 million and $1.3 million , was included in the consolidated and combined financial statement, respectively. Treatment of Outstanding Equity Awards pursuant to the FMC Plan - Effective March 1, 2019 (the "Distribution Date") each outstanding FMC equity award pursuant to the FMC Plan held by a Lithium Business employee will be converted into a Livent equity award ("Converted Award") pursuant to the Livent Plan. The number of Livent shares subject to each Converted Award (and in the case of stock options, the exercise price of the award) will be adjusted to preserve the aggregate intrinsic value of the original FMC Plan award as measured before and after the conversion, subject to rounding. Each such Converted Award will remain subject to the same terms and conditions (including vesting and payment schedules) as were applicable immediately prior to the above described conversion, except that the Converted Awards held by Lithium Business employees will not be subject to any performance-based vesting conditions. Additionally, each outstanding award of FMC RSUs held by FMC employees and issued prior to 2019 will be converted into adjusted FMC RSUs and Livent RSUs. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | Equity The following is a summary of our capital stock activity for the year ended December 31, 2018 : Common Stock Shares December 31, 2017 — Issued to Parent - transfer of Lithium Business assets 123,000,000 Initial public offering 20,000,000 Over-allotment Option Exercise 3,000,000 December 31, 2018 146,000,000 Accumulated other comprehensive loss Summarized below is the roll forward of accumulated other comprehensive loss, net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive loss, net of tax at December 31, 2015 $ (41.2 ) $ — $ (10.3 ) $ (51.5 ) 2016 Activity Other comprehensive loss before reclassifications (9.1 ) — (16.2 ) (25.3 ) Amounts reclassified from accumulated other comprehensive loss — — 0.2 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2016 (50.3 ) — (26.3 ) (76.6 ) 2017 Activity Other comprehensive income before reclassifications 4.7 — — 4.7 Amounts reclassified from accumulated other comprehensive loss — — 26.3 26.3 Accumulated other comprehensive loss, net of tax at December 31, 2017 (45.6 ) — — (45.6 ) 2018 Activity Other comprehensive loss before reclassifications (2.4 ) (1.2 ) — (3.6 ) Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (48.0 ) $ (1.2 ) $ — $ (49.2 ) ____________________ (1) See Note 15 for more information. (2) See Note 11 for more information. Reclassifications of accumulated other comprehensive loss The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated and combined statements of income for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated and Combined Statements of Income Year Ended December 31, (in Millions) 2018 2017 2016 Pension and other postretirement benefits (2) : Amortization of unrecognized net actuarial and other gains (losses) $ — $ (0.8 ) $ (0.3 ) Non-operating pension (benefit)/settlement charges Recognized loss due to settlement/curtailment — 32.5 — Non-operating pension (benefit)/settlement charges (3) Total before tax — 31.7 (0.3 ) — (5.4 ) 0.1 Provision for income taxes Amount included in net income $ — $ 26.3 $ (0.2 ) Total reclassifications for the period $ — $ 26.3 $ (0.2 ) Amount included in net income ____________________ (1) Amounts in parentheses indicate charges to the consolidated and combined statements of income. (2) For detail on pension and other postretirement benefits, see Note 11 . (3) The loss due to settlement for the year ended December 31, 2017 related to the charge to terminate the U.K. Plan. Refer to Note 11 for more information. Dividends For the year ended December 31, 2018 , we paid no dividends. We do not expect to pay any dividends in the foreseeable future. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock units granted in connection with the IPO. See Note 12 for further information regarding the IPO Awards. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. The weighted average common shares outstanding for both basic and diluted earnings per share for periods through the Separation date and the years ended December 31, 2017 and 2016 was calculated, in accordance with ASC 260, Earnings Per Share (ASC 260), using 123 million shares of common stock outstanding, which reflects the number of shares held by FMC prior to the IPO. In connection with our IPO, we issued 20 million shares of our common stock to the public at a public offering price of $17.00 per share. The IPO closed on October 15, 2018 . On November 13, 2018 the Company closed on the sale of an additional 3 million shares of its common stock pursuant to the exercise of the over-allotment option. In accordance with ASC 260, the 23 million shares issued in connection with the IPO will be included in earnings per share calculations for periods subsequent to the closing of the IPO and are not included in the earning per share calculations for periods prior to the closing of the IPO. Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 126.1 $ 42.2 $ 47.1 Denominator (in thousands): Weighted average common shares outstanding - basic 127,677 123,000 123,000 Weighted average additional shares assuming conversion of potential common shares (1) — — — Weighted average common shares outstanding - diluted 127,677 123,000 123,000 Basic earnings per common share: Net income per weighted average share - basic $ 0.99 $ 0.34 $ 0.38 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.99 $ 0.34 $ 0.38 _______________________________ (1) Dilutive common stock equivalents related to outstanding RSU awards for 2018 were less than 0.1 million . Anti-dilutive stock options For the year ended December 31, 2018, options to purchase 716,256 shares of our common stock at an average exercise price of $16.99 per share were anti-dilutive and not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common stock for the full year. Additional dilution - the FMC Plan FMC has a share-based compensation plan, in which Lithium Business employees were eligible to participate prior to the IPO. Effective March 1, 2019 (the "Distribution Date") each outstanding FMC equity award pursuant to the FMC Plan held by a Lithium Business employee will be converted into a Livent equity award ("Converted Award") pursuant to the Livent Plan. The number of Livent shares subject to each Converted Award (and in the case of stock options, the exercise price of the award) will be adjusted to preserve the aggregate intrinsic value of the original FMC Plan award as measured before and after the conversion, subject to rounding. Additionally, each outstanding award of FMC RSUs held by FMC employees and issued prior to 2019 will be converted into adjusted FMC RSUs and Livent RSUs. See Note 12 for more information on the FMC Plan. The estimated incremental shares related to the Converted Awards and FMC RSUs that would be considered for diluted earnings per share is approximately 1.1 million shares. |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instrument, Risk Management and Fair Value Measurements | Our financial instruments include cash and cash equivalents, trade receivables, other current assets, accounts payable, and amounts included in investments and accruals meeting the definition of financial instruments. The carrying value of these financial instruments approximates their fair value. Our other financial instruments include the following: Financial Instrument Valuation Method Foreign exchange forward contracts Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. Debt Our estimates and information obtained from independent third parties using market data, such as bid/ask spreads for the last business day of the reporting period. The estimated fair value of the financial instruments in the above table have been determined using standard pricing models which take into account the present value of expected future cash flows discounted to the balance sheet date. These standard pricing models utilize inputs derived from, or corroborated by, observable market data such as interest rate yield curves and currency and commodity spot and forward rates. In addition, we test a subset of our valuations against valuations received from the transaction's counterparty to validate the accuracy of our standard pricing models. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a market exchange at settlement date and do not represent potential gains or losses on these agreements. The estimated fair value and the carrying amount of debt was $34.0 million as of December 31, 2018 . We had no outstanding debt as of December 31, 2017 . Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that includes the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. The primary currencies for which we have exchange rate exposure are the U.S. dollar versus the Euro, the British pound, the Chinese yuan, the Argentine peso and the Japanese yen. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in Accumulated Other Comprehensive Income ("AOCI") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of December 31, 2018 , we had open foreign currency forward contracts in AOCI in a net after-tax loss position of $1.2 million designated as cash flow hedges of underlying forecasted sales and purchases. Current open contracts hedge forecasted transactions until December 31, 2018. At December 31, 2018 , we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $77.5 million . Approximately $1.2 million of net after-tax loss, representing open foreign currency exchange contracts, will be realized in earnings during the twelve months ending December 31, 2019 if spot rates in the future are consistent with forward rates as of December 31, 2018 . The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the consolidated and combined statements of income. Derivatives Not Designated As Cash Flow Hedging Instruments We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments and changes in the fair value of these items are recorded in earnings. We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $63.9 million at December 31, 2018 . Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments as of December 31, 2018 . Livent had no derivative instruments as of December 31, 2017. December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Net Amounts Derivatives Foreign exchange contracts $ (1.3 ) $ (1.3 ) Total derivative liabilities (1) $ (1.3 ) $ (1.3 ) Net derivative liabilities $ (1.3 ) $ (1.3 ) ____________________ (1) Net balance is included in “Accrued and other liabilities” in the consolidated and combined balance sheets. The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. Derivatives in Cash Flow Hedging Relationships (in Millions) Foreign Exchange Contracts Total Accumulated other comprehensive loss, net of tax at December 31, 2017 $ — $ — 2018 Activity Unrealized hedging losses, net of tax $ (1.2 ) $ (1.2 ) Total derivative instrument impact on comprehensive income, net of tax $ (1.2 ) $ (1.2 ) Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (1.2 ) $ (1.2 ) ____________________ (1) Amounts are included in “Cost of sales and services” and "Interest expense, net" on the consolidated and combined statements of income. Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2018 2017 2016 Foreign Exchange contracts Cost of Sales and Services $ (0.6 ) $ — $ — Total $ (0.6 ) $ — $ — ____________________ (1) Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Fair-Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair-Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2018 . Livent had no derivative assets and liabilities as of December 31, 2017. (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities Derivatives – Foreign exchange (1) $ 1.3 $ — $ 1.3 $ — Total Liabilities $ 1.3 $ — $ 1.3 $ — ____________________ (1) See the Fair Value of Derivative Instruments table within this Note for classifications on our consolidated and combined balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, and Contingencies | Commitments and Contingencies Commitments Leases We lease office space, plants and facilities. Leases of real estate generally provide for our payment of property taxes, insurance and repairs. The following tables present gross rent expense and future minimum lease payments under operating leases, respectively. Year ended December 31, (in Millions) 2018 2017 2016 Operating leases rent expense $ 1.5 $ 1.5 $ 1.1 Future Minimum Lease Payments (in Millions) Operating Leases 2019 $1.7 2020 $1.9 2021 $1.8 2022 $1.7 2023 $1.6 Thereafter $10.2 Contingencies We have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future, resulting from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. Based on information currently available and established reserves, we have no reason to believe that the ultimate resolution of known contingencies will have a material adverse effect on the combined financial position, liquidity or results of operations. However, there can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the combined financial position, results of operations in any one reporting period, or liquidity. Nemaska arrangement In October 2016, we entered into a long-term supply agreement (the “Agreement”) with Nemaska Lithium Shawinigan Transformation Inc. (“Nemaska”), a subsidiary of Nemaska Lithium Inc. based in Quebec, Canada. Pursuant to the Agreement, Nemaska is to provide lithium carbonate to us from an electrochemical plant that is under construction. Since completion of the project financing had significantly delayed the construction of its electrochemical plant, Nemaska had reported that it was not in position to start delivering lithium carbonate according to the schedule in the Agreement. To enforce our right to supply under the Agreement, in July 2018, we filed for arbitration before the International Chamber of Commerce (in accordance with the Agreement’s terms). In an attempt to resolve the dispute, the parties actively negotiated a revised schedule as well as arrangements to see that (in spec) lithium carbonate be nonetheless supplied to us from alternative sources under the responsibility of Nemaska, with a view to providing us with product while minimizing Nemaska’s exposure until its electrochemical plant is in operation. On September 25, 2018, the parties agreed to suspend the arbitration process under the expectation that the parties would agree on arrangements regarding alternative supply sources and an amended and restated supply agreement to reflect such alternative arrangements. On February 15, 2019 we received written notice from Nemaska that it was terminating the Agreement. Livent disagrees that Nemaska has the right to terminate the Agreement. Since we received Nemaska’s termination notice, we have resumed our previously suspended arbitration and intend to vigorously pursue our claims. However, there can be no assurance that we will prevail in arbitration. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated and combined balance sheets: (in Millions) December 31, 2018 2017 Prepaid and other current assets Argentina government receivable (1) $ 8.8 $ 13.5 Tax related items 4.1 3.6 Other receivables 6.2 6.5 Prepaid expenses 8.4 8.3 Bank Acceptance Drafts (2) 29.1 — Other current assets 3.2 0.7 Total $ 59.8 $ 32.6 (in Millions) December 31, 2018 2017 Other assets Argentina government receivable (1) $ 41.5 $ 34.0 Advance to contract manufacturers (3) 15.3 10.0 Capitalized software, net 1.4 2.2 Prepayment associated with long-term supply agreements 10.0 10.0 Tax related items (4) 6.2 5.1 Other long-term assets 5.6 5.7 Total $ 80.0 $ 67.0 ____________________ (1) We have various subsidiaries that conduct business within Argentina. At December 31, 2018 and 2017 , $38.0 million and $38.1 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. (2) Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. (3) We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. (4) Represents an offsetting non-current deferred asset of $3.2 million relating to specific uncertain tax positions and other tax related items. See footnote (1) of the reconciliation table of the beginning and ending amount of unrecognized tax benefits within Note 9 for more information. (in Millions) December 31, 2018 2017 Accrued and other current liabilities Restructuring reserves $ 3.6 $ 2.9 Due to parent - FMC (1) 23.8 — Accrued payroll 8.5 7.9 Environmental reserves, current 0.5 0.5 Derivative liabilities 1.3 — Other accrued and other current liabilities 9.1 10.0 Total $ 46.8 $ 21.3 (in Millions) December 31, 2018 2017 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 6.0 7.9 Self insurance reserves 2.4 1.7 Other long-term liabilities 0.7 0.9 Total $ 9.3 $ 10.7 ____________________ (1) At December 31, 2018 , we have obligations to our parent affiliate, FMC, for amounts due under the Transaction Services Agreement of $2.3 million , $16.9 million related to income taxes payable to certain tax jurisdictions and payments made by FMC on Livent's behalf related to the Separation steps of $4.6 million . (2) At December 31, 2018 , we have recorded a liability for uncertain tax positions of $2.9 million and a $3.1 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) (in Millions, Except Share and Per Share Data) 2018 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Revenue $ 102.8 $ 107.9 $ 112.0 $ 119.8 $ 65.7 $ 73.9 $ 94.4 $ 113.4 Gross margin 52.2 53.8 49.5 50.2 26.8 30.2 42.0 49.8 Income from operations before non-operating pension (benefit)/settlement charges, interest expense, net and income taxes 40.4 43.2 35.5 34.1 17.4 17.4 32.8 33.9 Net income (1) 32.2 38.0 30.0 25.9 10.0 17.5 25.6 (10.9 ) Net income per weighted average share - basic (2) $ 0.26 $ 0.31 $ 0.24 $ 0.18 $ 0.08 $ 0.14 $ 0.21 $ (0.09 ) Net income per weighted average share - diluted (2) $ 0.26 $ 0.31 $ 0.24 $ 0.18 $ 0.08 $ 0.14 $ 0.21 $ (0.09 ) Weighted average common shares outstanding (3) : Basic 123.0 123.0 123.0 141.6 123.0 123.0 123.0 123.0 Diluted 123.0 123.0 123.0 141.6 123.0 123.0 123.0 123.0 ____________________ (1) The Company recorded a provisional income tax expense of $11.1 million as a result of the enactment of the Act during the fourth quarter of 2017. See Note 9 for more details. (2) The sum of quarterly earnings per common share may differ from the full-year amount. (3) For all prior periods presented and the current period through the public offering date of October 15, 2018, the weighted average shares outstanding for both basic and diluted earnings per share were calculated using 123.0 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for prior periods excludes the 23.0 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 2 for further details. |
SCHEDULE II_Valuation and Quali
SCHEDULE II—Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR YEARS ENDED DECEMBER 31, 2018 , 2017 and 2016 Provision /(Benefit) (in Millions) Balance, Beginning of Year Charged to Costs and Expenses Net recoveries and write-offs (1) Balance, End of Year December 31, 2018 Reserve for doubtful accounts $ 0.1 — — $ 0.1 Deferred tax valuation allowance — — — — December 31, 2017 Reserve for doubtful accounts $ 1.0 — (0.9 ) $ 0.1 Deferred tax valuation allowance 2.2 (2.2 ) — — December 31, 2016 Reserve for doubtful accounts $ 1.2 — (0.2 ) $ 1.0 Deferred tax valuation allowance 11.2 (9.0 ) — 2.2 ____________________ (1) Write-offs are net of recoveries. |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation . The accompanying consolidated and combined financial statements of Livent include the historical accounts of the FMC Lithium segment ("Lithium Business") of FMC , a publicly traded company incorporated in Delaware (United States). |
Principles of consolidation and combination | Principles of consolidation and combination. For all periods prior to the Separation, our combined financial statements were derived from FMC's consolidated financial statements and accounting records where the Lithium Business was a division of FMC. These combined financial statements were prepared in accordance with U.S. GAAP and reflect the historical basis and carrying values established when the Company was part of FMC. The accompanying combined financial statements include the operations, financial position, and cash flows of Livent, as carved out from the historical consolidated financial statements of FMC using both specific identification and the allocation methodologies described below. Transactions between the Lithium Business and FMC and its subsidiaries are reflected in the consolidated and combined balance sheets as “Net parent investment” and in the consolidated and combined statements of cash flows as a financing activity in “Net change in net parent investment.” We believe the assumptions underlying the consolidated and combined financial statements, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Livent. However, the pre-Separation financial statements and activities do not purport to reflect what the results of operations, comprehensive income/(loss), financial position, equity or cash flows would have been had we operated as an independent public company during the periods presented. • The combined statements of income for the years ended December 31, 2017 and December 31, 2016 and the pre-Separation period in the consolidated and combined statement of income for year ended December 31, 2018 reflect the direct, indirect and allocated costs for various corporate function services historically provided by FMC, such as information technology, compensation and benefits, human resources, engineering, finance and internal audit. These allocations are based on either a specific identification basis or, when specific identification is not practicable, proportional allocation methods (i.e., using third-party sales, headcount, etc.), depending on the nature of the services. Actual costs that would have been incurred if Livent had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions in various areas such as information technology and infrastructure. • Net parent investment represents our Parent’s historical investment in us, our accumulated net earnings after taxes and the net effect of transactions with and allocations from our Parent. For the combined statements of income for the years ended December 31, 2017 and December 31, 2016 and the pre-Separation period in the consolidated and combined statement of income for year ended December 31, 2018 , Livent functioned as part of the larger group of businesses controlled by FMC and, accordingly, utilized centralized functions, such as facilities and information technology of FMC to support its operations. Accordingly, a portion of the shared service costs were historically allocated to Livent. FMC also performed certain corporate functions for Livent. The corporate expenses related to Livent have been allocated from the Parent. These allocated costs are primarily related to certain governance and corporate functions such as finance, internal audit, treasury, tax, human resources benefits and compensation, legal, investor relations, and certain other costs. Where it is possible to specifically attribute such expenses to activities of Livent, these amounts have been charged or credited directly to Livent without allocation or apportionment. Allocation of other such expenses is based on a reasonable reflection of the utilization of the service provided to or benefits received by Livent during the periods presented on a consistent basis, such as, but not limited to, a relative percentage of headcount, tangible assets, third-party sales, cost of goods sold or segment operating profit, defined by FMC as segment revenue less operating expenses. The aggregate costs allocated for these functions to Livent are included in “Corporate allocations” within the consolidated and combined statements of operations and are shown in detail within the following table. Year Ended December 31, (in Millions) 2018 (5) 2017 2016 Livent shared service costs (1) $ 4.6 $ 5.4 $ 3.8 FMC Corporate shared service costs allocated to Livent (2) 1.9 3.8 1.8 Stock compensation expense (3) 2.7 2.6 1.3 FMC Corporate expense allocation (4) 6.5 10.3 6.3 Total Corporate allocations $ 15.7 $ 22.1 $ 13.2 ____________________ (1) Represents Livent’s portion of shared service costs historically allocated to Livent through the October 15, 2018 Separation Date. Does not include $6.4 million , $7.1 million and $5.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, of shared service costs historically allocated to and recorded within “Cost of sales” on the consolidated and combined statements of operations. (2) Amounts represent the Parent's Corporate shared service cost allocated to Livent. (3) Stock compensation expense represents the allocation of the Parent’s Corporate stock compensation expense and the costs specifically identifiable to Livent employees. These amounts exclude the previously allocated portion included within Livent's shared service costs of $0.6 million , $0.8 million and $0.8 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. (4) Represents the additional costs of the centralized functions of the Parent allocated to Livent. (5) Includes Corporate allocations through the Separation Date. Expenses were not allocated to Livent from FMC subsequent to the Separation Date. Costs incurred under the TSA subsequent to the Separation Date are direct charges to our consolidated and combined statements of operations. Subsequent to the Separation, the accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. |
Estimates and assumptions | Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results are likely to differ from those estimates, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. |
Cash equivalents | Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Trade receivables, net of allowance | Trade receivables, net of allowance . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a general formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. Our method of calculating the general formula consists of estimating the recoverability of trade receivables based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Our analysis of trade receivable collection risk is performed quarterly, and the allowance is adjusted accordingly. |
Inventories | Inventories . Inventories are stated at the lower of cost or market value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All domestic inventories, excluding materials and supplies, are determined on a last-in, first-out (“LIFO”) basis and our remaining inventories are recorded on a first-in, first-out (“FIFO”) basis. |
Property, plant and equipment | Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is provided principally on the straight-line basis over the estimated useful lives of the assets (land improvements — 20 years , buildings — 20 to 40 years , and machinery and equipment — three to 18 years ). Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. |
Capitalized interest | Capitalized interest . Capitalized interest balances as of December 31, 2018 and 2017 were $8.5 million and $8.2 million , respectively. For the years ended December 31, 2018 , 2017 and 2016 we capitalized interest costs of $0.2 million , $1.5 million , and $1.3 million , respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. |
Impairments of long-lived assets | Impairments of long-lived assets . We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Asset retirement obligation | Asset retirement obligations . We record asset retirement obligations (“AROs”) at fair value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its present value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. The carrying amounts for the AROs for the years ended December 31, 2018 and 2017 are $0.2 million and $0.2 million , respectively. These amounts are included in "Other long-term liabilities" on the consolidated and combined balance sheets. |
Financial instruments | Financial instruments. Our financial instruments are trade receivables, trade payables and derivatives. These financial instruments are recorded at cost, which approximates fair value due to the short-term nature of the instruments. Our Parent also entered into derivative contracts to hedge exposures at the corporate level. Prior to the Separation, these activities represent activities managed at the corporate level and were not specific to our business, the associated assets or liabilities related to these transactions were not included in the consolidated and combined balance sheets, but the gains or losses associated with these transactions were included in the consolidated and combined statements of operations as these costs are deemed costs incurred to run our business. Subsequent to the Separation, Livent entered into derivative contracts to hedge exposures and the associated assets or liabilities were recorded in our consolidated and combined balance sheets and the gains or losses associated with these transactions were included in the consolidated and combined statements of income. |
Restructuring and other charges | Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. |
Goodwill and intangible assets | Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. |
Revenue recognition | Revenue recognition . Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated and combined statements of operations. We record a liability until remitted to the respective taxing authority. |
Research and Development | Research and Development . Research and development costs are expensed as incurred. |
Income and other taxes | Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability in Accrued and other liabilities in our consolidated and combined balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. |
Segment information | Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. |
Stock-based compensation | Stock-based compensation. Prior to the consummation of the Separation, we did not sponsor any stock compensation plans. Instead, our eligible employees participated in our Parent’s sponsored stock-based compensation plans. Prior to the consummation of the Separation, our employees continued to participate in the Parent’s stock-based compensation plans and we recognized stock-based compensation expense based on the awards granted to our employees. We also recorded an allocation of stock-based compensation for corporate employees based on segment operating profit, defined by FMC as segment revenue less operating expenses. Stock-based compensation expense for the three years ended December 31, 2018 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock based compensation expense as they occur. |
Pension and other postretirement benefits | Pension and other postretirement benefits. FMC provides a range of benefits, including pensions, postretirement and postemployment benefits to eligible current and former employees, of which certain of our employees participate. For purposes of the Livent's consolidated and combined financial statements, the U.S. defined benefit plan is being treated as a multiple employer plan. Accordingly, the benefit obligations, plan assets and accumulated other comprehensive income (loss) amounts are not shown in the consolidated and combined balance sheets. |
Environmental obligations | Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Where the available information is sufficient to estimate the amount of liability, that estimate has been used. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans (“OM&M”). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves. However, we are unable to reasonably estimate an amount in excess of our recorded reserves because we cannot reasonably estimate the period for which such OM&M plans will need to be in place or the future annual cost of such remediation, as conditions at these environmental sites change over time. Such additional OM&M costs could be significant in total but would be incurred over an extended period of years. Environmental remediation charges represent the costs for the continuing charges associated with environmental remediation at operating sites from previous years and from products that are no longer manufactured. |
Foreign currency | Foreign currency . We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ income statements are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of Sales in our consolidated and combined statements of operations. |
New Accounting guidance and regulatory items and recently adopted accounting guidance | New Accounting guidance and regulatory items In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act ("the Act") within accumulated other comprehensive income (“AOCI”) to retained earnings. There are also new required disclosures such as a description of the accounting policy for releasing income tax effects from AOCI as well as certain disclosures in the period of adoption if a company elects to reclassify the income tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years, with early adoption permitted. We believe the adoption will not have a material impact on our consolidated and combined financial statements other than a reclassification of certain income tax effects. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) . ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We are evaluating the effect the guidance will have on our consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). Under the new guidance, lessees are required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. We have adopted this standard as of January 1, 2019 utilizing a modified retrospective approach and have elected the optional transition practical expedient. Under this transition practical expedient, only contracts that exist as of, or are entered into on or after January 1, 2019 are transitioned, with a cumulative effect adjustment as of January 1, 2019. All comparative periods prior to January 1, 2019 will retain the financial reporting and disclosure requirements of ASC 840. While we are still finalizing the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures, we have performed various assessment, lease abstraction, and operational activities as part of our established project plan to support the implementation of the new lease standard. As part of our impact assessment, we have performed scoping exercises and determined our current lease population, which is approximately 40 leases. This population includes leases identified in our embedded lease assessment process. Information from these leases have been abstracted into our lease accounting software, which will assist us in the quantification of the expected impact on the consolidated balance sheets and facilitate the calculations of the related accounting entries and disclosures. We continue to update this population in our software as new leases are entered or modified and reassess the impact, accordingly. We have also assessed any potential impacts on our internal controls, business processes, and accounting policies related to both the implementation and ongoing compliance of the new guidance and have made updates and/or created new controls and processes to address the significant changes as a result of the adoption of ASU 2016-02. Additionally, we have developed drafts of our new footnote disclosures required under the new standard that will be disclosed in our first quarter Form 10-Q, but will continue to work on finalizing them during the first quarter of 2019. Although we are still finalizing the quantitative effects of ASU 2016-02, we expect total assets and total liabilities will increase between $15 million and $20 million in the period of adoption (this range represents the discounted impact). Recently adopted accounting guidance In March 2018, the FASB issued ASU No. 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 ("SAB 118"). This update amends several paragraphs in ASC 740, Income Taxes , that contain SEC guidance related to SAB 118, which was previously issued in December 2017 by the SEC. These amendments are effective upon inclusion in the codification. We identified certain adjustments to amounts previously recorded for the remeasurement of the net deferred tax liability and nonrecurring repatriation tax on accumulated earnings of foreign subsidiaries that results in a net tax expense of $0.6 million . Our analysis under SAB 118 is complete. Refer to Note 9 for more information. In May 2017, the FASB issued ASU No. 2017-09, Stock Compensation - Scope of Modification Accounting . This ASU provides guidance on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new standard is effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date). There was no impact to our consolidated and combined financial statements upon adoption. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU provides requirements for the presentation and disclosure of net benefit cost on the financial statements. The service cost component of net benefit cost is required to be presented in the income statement line item where the associated compensation cost is reported, while the other components of net benefit cost are required to be presented outside of operating income. The new standard is effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date). We adopted this standard on a retrospective basis in the first quarter of 2018. As a result, we have reclassified “Non-operating pension (benefit)/settlement charges” out of “Income from operations before interest expense, net and income taxes” and into “Income from operations before income taxes.” There was no impact to “Net income” on our consolidated and combined statements of operations. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory . Under the new guidance, an entity will recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The new standard was effective for fiscal years beginning after December 15, 2017 (i.e. a January 1, 2018 effective date), with early adoption permitted only in the first quarter of a fiscal year. We adopted this standard beginning in 2018. There was no material impact to our consolidated financial statements upon adoption. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, Accounting Standards Codification Topic 606 . This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance replaced most existing revenue recognition guidance in U.S. GAAP. On January 1, 2018, we adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) using the modified retrospective adoption method. In order to adopt this standard, we performed an impact assessment by analyzing revenue transactions and arrangements that are representative of our revenue streams. Additionally, we assessed any potential impacts on our internal controls and processes related to both the implementation and ongoing compliance of the new guidance. The standard impacted our disclosures including disclosures presenting further disaggregation of revenue. Refer to Note 4 for further information. Based on our assessment, there was no cumulative catchup effect of initially applying ASC 606 that required an adjustment to our retained earnings. Utilizing the practical expedients and exemptions allowed under the modified retrospective method, ASC 606 was only applied to existing contracts (i.e. those for which we have remaining performance obligations) as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC 606 was not applied to contracts that were completed prior to December 31, 2017. The adoption of ASC 606 had no impact on our financial position, results of operations or cash flows. |
Principal Accounting Policies_3
Principal Accounting Policies and Related Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Related Party Transactions | The aggregate costs allocated for these functions to Livent are included in “Corporate allocations” within the consolidated and combined statements of operations and are shown in detail within the following table. Year Ended December 31, (in Millions) 2018 (5) 2017 2016 Livent shared service costs (1) $ 4.6 $ 5.4 $ 3.8 FMC Corporate shared service costs allocated to Livent (2) 1.9 3.8 1.8 Stock compensation expense (3) 2.7 2.6 1.3 FMC Corporate expense allocation (4) 6.5 10.3 6.3 Total Corporate allocations $ 15.7 $ 22.1 $ 13.2 ____________________ (1) Represents Livent’s portion of shared service costs historically allocated to Livent through the October 15, 2018 Separation Date. Does not include $6.4 million , $7.1 million and $5.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively, of shared service costs historically allocated to and recorded within “Cost of sales” on the consolidated and combined statements of operations. (2) Amounts represent the Parent's Corporate shared service cost allocated to Livent. (3) Stock compensation expense represents the allocation of the Parent’s Corporate stock compensation expense and the costs specifically identifiable to Livent employees. These amounts exclude the previously allocated portion included within Livent's shared service costs of $0.6 million , $0.8 million and $0.8 million for the years ended December 31, 2018 , 2017 , and 2016 , respectively. (4) Represents the additional costs of the centralized functions of the Parent allocated to Livent. (5) Includes Corporate allocations through the Separation Date. Expenses were not allocated to Livent from FMC subsequent to the Separation Date. Costs incurred under the TSA subsequent to the Separation Date are direct charges to our consolidated and combined statements of operations. |
(Tables)
(Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2018 2017 2016 North America (1) $ 84.4 $ 81.4 $ 65.3 Latin America 2.0 2.0 2.4 Europe, Middle East & Africa 74.5 59.5 42.1 Asia Pacific (1) 281.6 204.5 154.3 Total Revenue $ 442.5 $ 347.4 $ 264.1 ____________________ (1) In 2018 , countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the year ended December 31, 2018 for Japan, the U.S. and China totaled $116.5 million , $82.4 million and $118.6 million , respectively, while sales for the year ended December 31, 2017 totaled $92.2 million , $78.5 million and $69.9 million , respectively, and sales for the year ended December 31, 2016 totaled $68.5 million , $63.5 million and $51.5 million , respectively. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2018 2017 2016 Lithium Hydroxide $ 222.7 $ 157.5 $ 68.2 Butyllithium 99.0 91.3 83.7 High Purity Lithium Metal and Other Specialty Compounds 62.5 58.1 49.4 Lithium Carbonate and Lithium Chloride 58.3 40.5 62.8 Total Revenue $ 442.5 $ 347.4 $ 264.1 |
Receivables and contract liabilities | The following table presents the opening and closing balances of our receivables, net of allowances and contract liabilities from contracts with customers. Balance as of (in Millions) December 31, 2018 December 31, 2017 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 141.4 $ 122.7 $ 18.7 Contract liabilities: Advance payments from customers — 1.8 (1.8 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, (in Millions) 2018 2017 Finished goods $ 22.2 $ 4.0 Semi-finished goods 36.6 34.3 Raw materials, supplies, and other 14.5 12.2 FIFO inventory $ 73.3 $ 50.5 Less: Excess of FIFO cost over LIFO cost (1.5 ) (0.9 ) Inventories, net $ 71.8 $ 49.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, (in Millions) 2018 2017 Land and land improvements $ 78.8 $ 65.0 Buildings 53.7 62.9 Machinery and equipment 250.7 225.7 Construction in progress 85.6 53.6 Total cost $ 468.8 $ 407.2 Accumulated depreciation (193.1 ) (186.5 ) Property, plant and equipment, net $ 275.7 $ 220.7 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows total restructuring and other charges included in the respective line items of the consolidated and combined statements of income: Year Ended December 31, (in Millions) 2018 2017 2016 Restructuring charges and asset disposals $ 2.4 $ 8.3 $ — Other charges, net 0.2 0.4 1.0 Total restructuring and other charges $ 2.6 $ 8.7 $ 1.0 Restructuring charges and asset disposals Year Ended December 31, 2018 2017 (in Millions) Bessemer City Miscellaneous Items Total Bessemer City Miscellaneous Items Total Asset disposal charges (1) $ 0.5 $ — $ 0.5 $ 4.0 $ — $ 4.0 Miscellaneous charges (2) 1.9 — 1.9 3.7 0.5 4.2 Severance and employee benefits (3) — — — 0.1 — 0.1 Total restructuring charges (4) $ 2.4 $ — $ 2.4 $ 7.8 $ 0.5 $ 8.3 ____________________ (1) Primarily represents fixed asset write-offs which were or are to be abandoned. (2) Primarily represents costs associated with demolition and other miscellaneous exit costs. (3) Represents severance and employee benefits charges. (4) There were no restructuring charges and asset disposals for the year ended December 31, 2016. |
Restructuring Reserve Roll Forward | The following table shows a roll forward of restructuring reserves that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (1) Balance December 31, 2016 $ 0.3 Change in reserves (2) 3.8 Cash payments (0.9 ) Other (0.3 ) Balance December 31, 2017 $ 2.9 Change in reserves (2) 1.9 Cash payments (1.2 ) Balance December 31, 2018 $ 3.6 ____________________ (1) Included in "Accrued and other current liabilities" on the consolidated and combined balance sheets. (2) Primarily related to facility shutdowns and other miscellaneous exit costs. |
Schedule of Other Charges Included Within Restructuring And Other Charges Income | Year Ended December 31, (in Millions) 2018 2017 2016 Argentina devaluation $ — $ — $ 0.6 Environmental charges, net 0.2 0.4 0.2 Other items, net — — 0.2 Other charges, net $ 0.2 $ 0.4 $ 1.0 |
Environmental Obligations (Tabl
Environmental Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of environmental reserves | The table below is a roll forward of our total environmental reserves from December 31, 2016 to December 31, 2018 . (in Millions) Environmental Reserves Total Balance December 31, 2016 $ 6.3 Change in reserves 0.4 Cash payments (0.3 ) Balance December 31, 2017 $ 6.4 Change in reserves 0.2 Cash payments (0.2 ) Balance December 31, 2018 $ 6.4 |
Schedule of accrual for environmental contingencies | The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2018 2017 Environmental reserves, current (1) $ 0.5 $ 0.5 Environmental reserves, long-term (2) 5.9 5.9 Total environmental reserves $ 6.4 $ 6.4 ______________ (1) These amounts are included within “Accrued and other liabilities” on the consolidated and combined balance sheets. (2) These amounts are included in "Environmental liabilities" on the consolidated and combined balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Domestic and foreign components of income from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2018 2017 2016 Domestic $ 38.6 $ 30.8 $ 10.6 Foreign 114.5 39.3 43.9 Total $ 153.1 $ 70.1 $ 54.5 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes attributable to income from operations consisted of: Year Ended December 31, (in Millions) 2018 2017 2016 Current: Federal (1) $ 11.7 $ 23.1 $ 4.5 Foreign 18.4 4.6 2.3 State — 0.9 0.2 Total current $ 30.1 $ 28.6 $ 7.0 Deferred: Federal (2) $ (0.1 ) $ (2.3 ) $ 0.1 Foreign (2.9 ) 1.7 0.3 State (0.1 ) (0.1 ) — Total deferred (3.1 ) (0.7 ) 0.4 Total $ 27.0 $ 27.9 $ 7.4 ____________________ (1) The years ended December 31, 2018 and December 31, 2017 i nclude the one-time impacts of the of the Tax Act, primarily related to transition tax, further discussed above within this Note. (2) The year ended December 31, 2017 i nclude the one-time impacts of the Tax Act, primarily related to the measurement of the Company’s U.S. domestic net deferred tax liabilities, further discussed above within this Note. |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2018 2017 Environmental and restructuring $ 2.3 $ 2.2 Pension and other postretirement benefits 0.9 2.0 Net operating loss carry-forwards 2.6 0.3 Other assets and reserves 6.6 3.0 Deferred tax assets $ 12.4 $ 7.5 Valuation allowance, net (2.1 ) — Deferred tax assets, net of valuation allowance $ 10.3 $ 7.5 Property, plant and equipment, net (9.8 ) (13.3 ) Deferred tax liabilities (9.8 ) (13.3 ) Net deferred tax assets/(liabilities) $ 0.5 $ (5.8 ) |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate applicable to income from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2018 2017 2016 U.S. Federal statutory rate $ 32.2 $ 24.5 $ 19.1 Impacts of Tax Cuts and Jobs Act Enactment (1) 0.6 11.1 — Foreign earnings subject to different tax rates (3.8 ) (2.6 ) (2.8 ) Foreign derived intangible income (2) (1.7 ) — — State and local income taxes, less federal income tax benefit (0.1 ) 0.5 0.2 Manufacturer's production deduction and miscellaneous tax credits — (1.2 ) (0.4 ) Tax on intercompany dividends and deemed dividends for tax purposes 4.1 — — Changes to unrecognized tax benefits 0.4 0.6 0.6 Other permanent items (2.2 ) (2.3 ) (1.4 ) Change in valuation allowance 2.2 (3.0 ) (7.2 ) Exchange gains and losses (3) (4.0 ) 1.4 (2.3 ) Other (0.7 ) (1.1 ) 1.6 Total Tax Provision $ 27.0 $ 27.9 $ 7.4 ____________________ (1) Includes the one-time impacts of the of the Tax Act, primarily related to transition tax and the decrease to the U.S. tax rate, further discussed above within this Note. (2) The year ended December 31, 2018 includes tax benefit associated with the impact related to FDII, further discussed above within this Note. (3) Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2018 2017 2016 Balance at beginning of year $ 7.5 $ 7.3 $ 6.5 Increases related to positions taken in the current year 0.6 1.3 2.0 Decreases related to positions taken in prior years (0.7 ) — — Decreases related to lapse of statutes of limitations (1.1 ) (1.3 ) (1.2 ) Increase in unrecognized tax benefits due to foreign currency translation (0.4 ) 0.2 — Decreases for tax positions resulting from the IPO (3.3 ) — — Balance at end of year (1) $ 2.6 $ 7.5 $ 7.3 ____________________ (1) At December 31, 2018 , 2017 , and 2016 we recognized an offsetting non-current deferred asset of $3.2 million , $5.1 million , and $5.3 million respectively, relating to specific uncertain tax positions presented above. We have recorded a $3.1 million indemnification liability at December 31, 2018 to FMC for assets where the offsetting uncertain tax position is with FMC. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, 2018 Interest Rate Percentage Maturity Date Balance (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.3% 6.5% 2023 $ 34.0 Total long-term debt (2) $ 34.0 ____________________ (1) As of December 31, 2018 , there were $10.3 million in letters of credit outstanding under our Revolving Credit Facility and available funds under this facility were $355.7 million at December 31, 2018 . (2) As of December 31, 2018 , the Company had no debt maturing within one year. We had no debt outstanding as of December 31, 2017 . |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table summarizes the components of our defined benefit postretirement plans and reflect a measurement date of December 31, 2017: Pensions December 31, (in Millions) 2017 Change in projected benefit obligation Projected benefit obligation at January 1 $ 46.0 Interest cost 0.5 Actuarial gain (1.5 ) Foreign currency exchange rate changes 3.3 Settlement (47.4 ) Benefits paid (0.9 ) Projected benefit obligation at December 31 $ — Change in plan assets Fair value of plan assets at January 1 $ 45.2 Actual return on plan assets (0.4 ) Foreign currency exchange rate changes 3.3 Company contributions 1.1 Actual expenses (0.9 ) Settlement (47.4 ) Benefits paid (0.9 ) Fair value of plan assets at December 31 $ — Funded Status U.K. plan — Net funded status of the plan $ — Amount recognized in the consolidated and combined balance sheets: Accrued benefit liability — Total $ — |
Components of Defined Benefit Postretirement Plans | The following table summarizes the components of our defined benefit postretirement plans and reflect a measurement date of December 31, 2017: Pensions December 31, (in Millions) 2017 Change in projected benefit obligation Projected benefit obligation at January 1 $ 46.0 Interest cost 0.5 Actuarial gain (1.5 ) Foreign currency exchange rate changes 3.3 Settlement (47.4 ) Benefits paid (0.9 ) Projected benefit obligation at December 31 $ — Change in plan assets Fair value of plan assets at January 1 $ 45.2 Actual return on plan assets (0.4 ) Foreign currency exchange rate changes 3.3 Company contributions 1.1 Actual expenses (0.9 ) Settlement (47.4 ) Benefits paid (0.9 ) Fair value of plan assets at December 31 $ — Funded Status U.K. plan — Net funded status of the plan $ — Amount recognized in the consolidated and combined balance sheets: Accrued benefit liability — Total $ — |
Changes in Plan Assets and Benefit Obligations for Continuing Operations Recognized in Other Comprehensive Loss (Income) | Other changes in plan assets and benefit obligations recognized in other comprehensive income are as follows: Pensions Year Ended December 31, (in Millions) 2017 Current year net actuarial gain $ (0.7 ) Amortization of net actuarial loss (0.8 ) Settlement charge (32.5 ) Foreign currency exchange rate changes on the above line items 2.3 Total recognized in other comprehensive income, before taxes $ (31.7 ) Total recognized in other comprehensive income, after taxes $ (26.3 ) |
Weighted-Average Assumptions Used for and Components of Net Annual Benefit Cost (Income) | The following table summarizes the weighted-average assumptions used for and the components of net annual benefit cost (income): Year Ended December 31, Pensions (in Millions, except for percentages) 2017 2016 Discount rate 1.35 % 1.20 % Expected return on plan assets 1.20 % 6.30 % Rate of compensation increase N/A N/A Components of net annual benefit cost: Interest cost $ 0.5 $ 1.0 Expected return on plan assets 0.5 (1.4 ) Amortization of net actuarial and other loss 0.8 0.3 Recognized loss due to settlement 32.5 — Net annual benefit cost $ 34.3 $ (0.1 ) |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2018 Stock Option Expense, net of taxes of less than $0.1 $ 0.2 Restricted Stock Expense, net of taxes of $0.1 0.2 Total Stock Compensation Expense, net of taxes of $0.1 (1) $ 0.4 ____________________ (1) This expense is classified as "Selling, general and administrative expenses" in our consolidated and combined statements of operations. After the Separation, an additional $0.4 million of stock compensation expense, not included in the table above, was recorded net of taxes of $0.1 million in the fourth quarter of 2018 related to awards held by Livent employees that were issued under the FMC Corporation Incentive Compensation and Stock Plan as discussed below . |
Black Scholes Valuation Assumptions for Stock Option Grants | Black Scholes valuation assumptions for Livent Plan stock option grants: 2018 Expected dividend yield —% Expected volatility 21.71% Expected life (in years) 6.76 Risk-free interest rate 3.11% |
Summary of Stock Option Activity | The following summary shows stock option activity for the Livent Plan, which consisted of the IPO Awards, for the year ended December 31, 2018 : Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life (in Years) Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding December 31, 2017 — $ — $ — Granted 716,256 16.99 — Outstanding December 31, 2018 716,256 9.8 years 16.99 — Exercisable at December 31, 2018 — — — |
Summary of Restricted Award Activity | The following table shows RSU activity of the Livent Plan, which consisted of the IPO Awards, for the year ended December 31, 2018 : Restricted Stock Units Number of awards Weighted-Average Grant Date Fair Value Nonvested at December 31, 2017 — $ — Granted 237,669 16.94 Converted FMC awards (1) 12,117 17.00 Nonvested at December 31, 2018 249,786 16.94 ____________________ (1) 2,443 shares of RSUs held by Livent employees under the FMC Plan converted to 12,117 shares of RSUs under the Livent Plan on October 10, 2018 based on the conversion rate of 4.96 Livent Plan shares for each FMC Plan share. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a summary of our capital stock activity for the year ended December 31, 2018 : Common Stock Shares December 31, 2017 — Issued to Parent - transfer of Lithium Business assets 123,000,000 Initial public offering 20,000,000 Over-allotment Option Exercise 3,000,000 December 31, 2018 146,000,000 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Summarized below is the roll forward of accumulated other comprehensive loss, net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Pension and other postretirement benefits (2) Total Accumulated other comprehensive loss, net of tax at December 31, 2015 $ (41.2 ) $ — $ (10.3 ) $ (51.5 ) 2016 Activity Other comprehensive loss before reclassifications (9.1 ) — (16.2 ) (25.3 ) Amounts reclassified from accumulated other comprehensive loss — — 0.2 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2016 (50.3 ) — (26.3 ) (76.6 ) 2017 Activity Other comprehensive income before reclassifications 4.7 — — 4.7 Amounts reclassified from accumulated other comprehensive loss — — 26.3 26.3 Accumulated other comprehensive loss, net of tax at December 31, 2017 (45.6 ) — — (45.6 ) 2018 Activity Other comprehensive loss before reclassifications (2.4 ) (1.2 ) — (3.6 ) Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (48.0 ) $ (1.2 ) $ — $ (49.2 ) ____________________ (1) See Note 15 for more information. (2) See Note 11 for more information. |
Reclassifications of Accumulated Other Comprehensive Income | The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated and combined statements of income for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated and Combined Statements of Income Year Ended December 31, (in Millions) 2018 2017 2016 Pension and other postretirement benefits (2) : Amortization of unrecognized net actuarial and other gains (losses) $ — $ (0.8 ) $ (0.3 ) Non-operating pension (benefit)/settlement charges Recognized loss due to settlement/curtailment — 32.5 — Non-operating pension (benefit)/settlement charges (3) Total before tax — 31.7 (0.3 ) — (5.4 ) 0.1 Provision for income taxes Amount included in net income $ — $ 26.3 $ (0.2 ) Total reclassifications for the period $ — $ 26.3 $ (0.2 ) Amount included in net income ____________________ (1) Amounts in parentheses indicate charges to the consolidated and combined statements of income. (2) For detail on pension and other postretirement benefits, see Note 11 . (3) The loss due to settlement for the year ended December 31, 2017 related to the charge to terminate the U.K. Plan. Refer to Note 11 for more information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Year Ended December 31, 2018 2017 2016 Numerator: Net income $ 126.1 $ 42.2 $ 47.1 Denominator (in thousands): Weighted average common shares outstanding - basic 127,677 123,000 123,000 Weighted average additional shares assuming conversion of potential common shares (1) — — — Weighted average common shares outstanding - diluted 127,677 123,000 123,000 Basic earnings per common share: Net income per weighted average share - basic $ 0.99 $ 0.34 $ 0.38 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.99 $ 0.34 $ 0.38 _______________________________ (1) Dilutive common stock equivalents related to outstanding RSU awards for 2018 were less than 0.1 million . |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments Fair Value and Balance Sheet Presentation | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments as of December 31, 2018 . Livent had no derivative instruments as of December 31, 2017. December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Net Amounts Derivatives Foreign exchange contracts $ (1.3 ) $ (1.3 ) Total derivative liabilities (1) $ (1.3 ) $ (1.3 ) Net derivative liabilities $ (1.3 ) $ (1.3 ) ____________________ (1) Net balance is included in “Accrued and other liabilities” in the consolidated and combined balance sheets. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. Derivatives in Cash Flow Hedging Relationships (in Millions) Foreign Exchange Contracts Total Accumulated other comprehensive loss, net of tax at December 31, 2017 $ — $ — 2018 Activity Unrealized hedging losses, net of tax $ (1.2 ) $ (1.2 ) Total derivative instrument impact on comprehensive income, net of tax $ (1.2 ) $ (1.2 ) Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (1.2 ) $ (1.2 ) ____________________ (1) Amounts are included in “Cost of sales and services” and "Interest expense, net" on the consolidated and combined statements of income. |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Recognized in Income on Derivatives Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2018 2017 2016 Foreign Exchange contracts Cost of Sales and Services $ (0.6 ) $ — $ — Total $ (0.6 ) $ — $ — ____________________ (1) Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2018 . Livent had no derivative assets and liabilities as of December 31, 2017. (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities Derivatives – Foreign exchange (1) $ 1.3 $ — $ 1.3 $ — Total Liabilities $ 1.3 $ — $ 1.3 $ — ____________________ (1) See the Fair Value of Derivative Instruments table within this Note for classifications on our consolidated and combined balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Capital Lease Expense | The following tables present gross rent expense and future minimum lease payments under operating leases, respectively. Year ended December 31, (in Millions) 2018 2017 2016 Operating leases rent expense $ 1.5 $ 1.5 $ 1.1 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future Minimum Lease Payments (in Millions) Operating Leases 2019 $1.7 2020 $1.9 2021 $1.8 2022 $1.7 2023 $1.6 Thereafter $10.2 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated and combined balance sheets: (in Millions) December 31, 2018 2017 Prepaid and other current assets Argentina government receivable (1) $ 8.8 $ 13.5 Tax related items 4.1 3.6 Other receivables 6.2 6.5 Prepaid expenses 8.4 8.3 Bank Acceptance Drafts (2) 29.1 — Other current assets 3.2 0.7 Total $ 59.8 $ 32.6 (in Millions) December 31, 2018 2017 Other assets Argentina government receivable (1) $ 41.5 $ 34.0 Advance to contract manufacturers (3) 15.3 10.0 Capitalized software, net 1.4 2.2 Prepayment associated with long-term supply agreements 10.0 10.0 Tax related items (4) 6.2 5.1 Other long-term assets 5.6 5.7 Total $ 80.0 $ 67.0 ____________________ (1) We have various subsidiaries that conduct business within Argentina. At December 31, 2018 and 2017 , $38.0 million and $38.1 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. (2) Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. (3) We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. (4) Represents an offsetting non-current deferred asset of $3.2 million relating to specific uncertain tax positions and other tax related items. See footnote (1) of the reconciliation table of the beginning and ending amount of unrecognized tax benefits within Note 9 for more information. |
Schedule of Other Liabilities | (in Millions) December 31, 2018 2017 Accrued and other current liabilities Restructuring reserves $ 3.6 $ 2.9 Due to parent - FMC (1) 23.8 — Accrued payroll 8.5 7.9 Environmental reserves, current 0.5 0.5 Derivative liabilities 1.3 — Other accrued and other current liabilities 9.1 10.0 Total $ 46.8 $ 21.3 (in Millions) December 31, 2018 2017 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 6.0 7.9 Self insurance reserves 2.4 1.7 Other long-term liabilities 0.7 0.9 Total $ 9.3 $ 10.7 ____________________ (1) At December 31, 2018 , we have obligations to our parent affiliate, FMC, for amounts due under the Transaction Services Agreement of $2.3 million , $16.9 million related to income taxes payable to certain tax jurisdictions and payments made by FMC on Livent's behalf related to the Separation steps of $4.6 million . (2) At December 31, 2018 , we have recorded a liability for uncertain tax positions of $2.9 million and a $3.1 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (in Millions, Except Share and Per Share Data) 2018 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Revenue $ 102.8 $ 107.9 $ 112.0 $ 119.8 $ 65.7 $ 73.9 $ 94.4 $ 113.4 Gross margin 52.2 53.8 49.5 50.2 26.8 30.2 42.0 49.8 Income from operations before non-operating pension (benefit)/settlement charges, interest expense, net and income taxes 40.4 43.2 35.5 34.1 17.4 17.4 32.8 33.9 Net income (1) 32.2 38.0 30.0 25.9 10.0 17.5 25.6 (10.9 ) Net income per weighted average share - basic (2) $ 0.26 $ 0.31 $ 0.24 $ 0.18 $ 0.08 $ 0.14 $ 0.21 $ (0.09 ) Net income per weighted average share - diluted (2) $ 0.26 $ 0.31 $ 0.24 $ 0.18 $ 0.08 $ 0.14 $ 0.21 $ (0.09 ) Weighted average common shares outstanding (3) : Basic 123.0 123.0 123.0 141.6 123.0 123.0 123.0 123.0 Diluted 123.0 123.0 123.0 141.6 123.0 123.0 123.0 123.0 ____________________ (1) The Company recorded a provisional income tax expense of $11.1 million as a result of the enactment of the Act during the fourth quarter of 2017. See Note 9 for more details. (2) The sum of quarterly earnings per common share may differ from the full-year amount. (3) For all prior periods presented and the current period through the public offering date of October 15, 2018, the weighted average shares outstanding for both basic and diluted earnings per share were calculated using 123.0 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for prior periods excludes the 23.0 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 2 for further details. |
Description of the Business (De
Description of the Business (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Nov. 13, 2018 | Oct. 15, 2018 | Oct. 01, 2018 | Nov. 13, 2018 |
Initial public offering | ||||
Class of Stock [Line Items] | ||||
Shares of common stock issued (in shares) | 20 | 123 | 23 | |
Price of common stock issued (in dollars per share) | $ 17 | |||
Proceeds from stock issued | $ 369 | |||
Over-Allotment Option | ||||
Class of Stock [Line Items] | ||||
Shares of common stock issued (in shares) | 3 | |||
Livent | FMC | ||||
Class of Stock [Line Items] | ||||
Ownership percentage | 84.00% |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)lease | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Income tax benefit | $ 0.6 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of leased assets | lease | 40 | |
Scenario, Forecast | Minimum | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease asset | $ 15 | |
Lease liability | 15 | |
Scenario, Forecast | Maximum | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Lease asset | 20 | |
Lease liability | $ 20 |
Principal Accounting Policies_4
Principal Accounting Policies and Related Financial Information (Details) | Nov. 13, 2018shares | Oct. 15, 2018$ / sharesshares | Oct. 01, 2018shares | Nov. 13, 2018shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2018USD ($)segmentshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Oct. 31, 2018shares | Oct. 11, 2018shares |
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | $ 15,700,000 | $ 22,100,000 | $ 13,200,000 | |||||||
Allowance for trade receivable | $ 100,000 | 100,000 | 100,000 | |||||||
Provision for allowance for receivables | 100,000 | 0 | 0 | |||||||
Capitalized interest balance | 8,200,000 | 8,500,000 | 8,200,000 | |||||||
Capitalized interest costs | 200,000 | 1,500,000 | 1,300,000 | |||||||
Asset retirement obligation | 200,000 | $ 200,000 | 200,000 | |||||||
Number of reportable segments | segment | 1 | |||||||||
Remediation charges | $ 200,000 | 400,000 | 200,000 | |||||||
Environmental remediation liability | 6,400,000 | 6,400,000 | 6,400,000 | 6,300,000 | ||||||
Foreign currency transaction gain | $ 2,400,000 | 2,100,000 | 1,400,000 | |||||||
Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Payment term | 30 days | |||||||||
Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Payment term | 180 days | |||||||||
Land Improvements | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life | 20 years | |||||||||
Buildings | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life | 20 years | |||||||||
Buildings | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life | 40 years | |||||||||
Machinery and equipment | Minimum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life | 3 years | |||||||||
Machinery and equipment | Maximum | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Useful life | 18 years | |||||||||
Initial public offering | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Shares of common stock issued (in shares) | shares | 20,000,000 | 123,000,000 | 23,000,000 | |||||||
Price of common stock issued (in dollars per share) | $ / shares | $ 17 | |||||||||
Over-allotment Option Exercise | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Shares of common stock issued (in shares) | shares | 3,000,000 | |||||||||
Majority Shareholder | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | $ 15,700,000 | 22,100,000 | 13,200,000 | |||||||
Majority Shareholder | Shared service costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | 4,600,000 | 5,400,000 | 3,800,000 | |||||||
Majority Shareholder | Shared service costs allocated | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | 1,900,000 | 3,800,000 | 1,800,000 | |||||||
Majority Shareholder | Stock compensation expense | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | 2,700,000 | 2,600,000 | 1,300,000 | |||||||
Majority Shareholder | Corporate expense allocation | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | 6,500,000 | 10,300,000 | 6,300,000 | |||||||
Majority Shareholder | Share-based compensation expense included in shared service costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | 600,000 | 800,000 | 800,000 | |||||||
Cost of Sales | Majority Shareholder | Shared service costs | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Corporate allocations | $ 6,400,000 | $ 7,100,000 | 5,200,000 | |||||||
Pension Plan | FMC | U.K. Plan | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Payment into defined benefit plan | 20,700,000 | |||||||||
Fair value of plan assets | $ 45,200,000 | |||||||||
Settlement charge | $ 32,500,000 | |||||||||
Livent Plan | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | shares | 4,290,000 | 4,290,000 | ||||||||
Pro Forma | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Shares of common stock outstanding (in shares) | shares | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | ||||||
Patents | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Finite-lived intangible assets amortization period | 15 years |
Disaggregation of Revenue by Ma
Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 442.5 | $ 347.4 | $ 264.1 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 84.4 | 81.4 | 65.3 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2 | 2 | 2.4 |
Europe, Middle East & Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 74.5 | 59.5 | 42.1 |
Asia Pacific (1) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 281.6 | 204.5 | 154.3 |
JAPAN | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 116.5 | 92.2 | 68.5 |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 82.4 | 78.5 | 63.5 |
CHINA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 118.6 | $ 69.9 | $ 51.5 |
Narrative (Details)
Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue recognized | $ 1.8 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment term | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment term | 180 days | ||
Customer One | Sales | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 14.00% | 14.00% | 13.00% |
Ten Largest Customers | Sales | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 53.00% | 45.00% | 40.00% |
Disaggregation of Revenue By _2
Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 442.5 | $ 347.4 | $ 264.1 |
Lithium Hydroxide | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 222.7 | 157.5 | 68.2 |
Butyllithium | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 99 | 91.3 | 83.7 |
High Purity Lithium Metal and Other Specialty Compounds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 62.5 | 58.1 | 49.4 |
Lithium Carbonate and Lithium Chloride | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 58.3 | $ 40.5 | $ 62.8 |
Assets and Liabilities (Details
Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers, net of allowances | $ 141.4 | $ 122.7 |
Increase (decrease) in receivables | 18.7 | |
Contract liabilities: Advance payments from customers | 0 | $ 1.8 |
Increase (decrease) in liabilities | $ (1.8) |
Performance Obligations (Detail
Performance Obligations (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 66 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction of performance obligations | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 49 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction of performance obligations | 1 year |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventories: | ||
Finished goods | $ 22.2 | $ 4 |
Semi-finished goods | 36.6 | 34.3 |
Raw materials, supplies, and other | 14.5 | 12.2 |
FIFO inventory | 73.3 | 50.5 |
Less: Excess of FIFO cost over LIFO cost | (1.5) | (0.9) |
Inventories, net | $ 71.8 | $ 49.6 |
Percentage of LIFO Inventory | 21.00% | 24.00% |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 468.8 | $ 407.2 | |
Accumulated depreciation | (193.1) | (186.5) | |
Property, plant and equipment, net | 275.7 | 220.7 | |
Depreciation | 15 | 14.9 | $ 14.2 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 78.8 | 65 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 53.7 | 62.9 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 250.7 | 225.7 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 85.6 | $ 53.6 |
Restructuring and Other Charg_3
Restructuring and Other Charges Restructuring Charges in Consolidated Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring and other charges | $ 2,400,000 | $ 8,300,000 | $ 0 |
Other charges, net | 200,000 | 400,000 | 1,000,000 |
Total restructuring and other charges | $ 2,600,000 | $ 8,700,000 | $ 1,000,000 |
Restructuring and Other Charg_4
Restructuring and Other Charges Restructuring Rollforward and Other Charges (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |||
Asset disposal charges | $ 500,000 | $ 4,000,000 | |
Miscellaneous charges | 1,900,000 | 4,200,000 | |
Severance and employee benefits | 0 | 100,000 | |
Total restructuring charges | 2,400,000 | 8,300,000 | $ 0 |
Restructuring Reserve [Roll Forward] | |||
Restructuring reserve, beginning balance | 2,900,000 | 300,000 | |
Changes in reserves | 1,900,000 | 3,800,000 | |
Cash payments | (1,200,000) | (900,000) | |
Other | (300,000) | ||
Restructuring reserve, ending balance | 3,600,000 | 2,900,000 | 300,000 |
Other Charges [Abstract] | |||
Argentina devaluation | 0 | 0 | 600,000 |
Environmental charges, net | 200,000 | 400,000 | 200,000 |
Other items, net | 0 | 0 | 200,000 |
Other charges, net | 200,000 | 400,000 | $ 1,000,000 |
Bessemer City | |||
Restructuring Charges [Abstract] | |||
Asset disposal charges | 500,000 | 4,000,000 | |
Miscellaneous charges | 1,900,000 | 3,700,000 | |
Severance and employee benefits | 0 | 100,000 | |
Total restructuring charges | 2,400,000 | 7,800,000 | |
Miscellaneous Items | |||
Restructuring Charges [Abstract] | |||
Asset disposal charges | 0 | 0 | |
Miscellaneous charges | 0 | 500,000 | |
Severance and employee benefits | 0 | 0 | |
Total restructuring charges | $ 0 | $ 500,000 |
Restructuring and Other Charg_5
Restructuring and Other Charges Narrative (Details) | 12 Months Ended |
Dec. 31, 2018site | |
Restructuring and Related Activities [Abstract] | |
Number of environmental remediation sites | 1 |
Environmental Obligations Narra
Environmental Obligations Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Environmental Remediation Obligations [Abstract] | |||
Accrual for environmental loss contingencies | $ 6.4 | $ 6.4 | $ 6.3 |
Loss exposure in excess of accrual | $ 3 |
Environmental Obligations Envir
Environmental Obligations Environmental Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Total environmental reserves, net of recoveries, beginning balance | $ 6.4 | $ 6.3 |
Change in reserves | 0.2 | 0.4 |
Cash payments | (0.2) | (0.3) |
Total environmental reserves, net of recoveries, ending balance | $ 6.4 | $ 6.4 |
Environmental Obligations Reser
Environmental Obligations Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Environmental Remediation Obligations [Abstract] | |||
Environmental reserves, current | $ 0.5 | $ 0.5 | |
Environmental reserves, long-term | 5.9 | 5.9 | |
Total environmental reserves | $ 6.4 | $ 6.4 | $ 6.3 |
Income Taxes Tax Cuts and Jobs
Income Taxes Tax Cuts and Jobs Act (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provisional tax expense | $ 11.1 | $ 11.1 | |
Adjustment to provisional tax expense | $ 0.6 |
Income Taxes Domestic and Forei
Income Taxes Domestic and Foreign Income Tax Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 38.6 | $ 30.8 | $ 10.6 |
Foreign | 114.5 | 39.3 | 43.9 |
Income from operations before income taxes | $ 153.1 | $ 70.1 | $ 54.5 |
Income Taxes Provision (Benefit
Income Taxes Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 11.7 | $ 23.1 | $ 4.5 |
Foreign | 18.4 | 4.6 | 2.3 |
State | 0 | 0.9 | 0.2 |
Total current | 30.1 | 28.6 | 7 |
Deferred: | |||
Federal | (0.1) | (2.3) | 0.1 |
Foreign | (2.9) | 1.7 | 0.3 |
State | (0.1) | (0.1) | 0 |
Total deferred | (3.1) | (0.7) | 0.4 |
Total | $ 27 | $ 27.9 | $ 7.4 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Gross [Abstract] | ||
Environmental and restructuring | $ 2.3 | $ 2.2 |
Pension and other postretirement benefits | 0.9 | 2 |
Net operating loss carry-forwards | 2.6 | 0.3 |
Other assets and reserves | 6.6 | 3 |
Deferred tax assets | 12.4 | 7.5 |
Valuation allowance, net | (2.1) | 0 |
Deferred tax assets, net of valuation allowance | 10.3 | 7.5 |
Property, plant and equipment, net | (9.8) | (13.3) |
Deferred tax liabilities | 9.8 | 13.3 |
Net deferred tax assets/(liabilities) | $ 0.5 | |
Deferred tax liabilities | $ (5.8) |
Income Taxes Net Operating Loss
Income Taxes Net Operating Loss Carryforwards (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Operating Loss Carryforwards [Line Items] | ||
Due to parent - FMC | $ 23.8 | $ 0 |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 2.6 | |
Transaction Services Agreement, Income Taxes Payable | ||
Operating Loss Carryforwards [Line Items] | ||
Due to parent - FMC | $ 16.9 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | $ 32.2 | $ 24.5 | $ 19.1 |
Impacts of Tax Cuts and Jobs Act | 0.6 | 11.1 | 0 |
Foreign earnings subject to different tax rates | (3.8) | (2.6) | (2.8) |
Foreign derived intangible income | (1.7) | 0 | 0 |
State and local income taxes, less federal income tax benefit | (0.1) | 0.5 | 0.2 |
Manufacturer's production deduction and miscellaneous tax credits | 0 | (1.2) | (0.4) |
Tax on intercompany dividends and deemed dividends for tax purposes | 4.1 | 0 | 0 |
Changes to unrecognized tax benefits | 0.4 | 0.6 | 0.6 |
Other permanent items | (2.2) | (2.3) | (1.4) |
Change in valuation allowance | 2.2 | (3) | (7.2) |
Exchange gains and losses | (4) | 1.4 | (2.3) |
Other | (0.7) | (1.1) | 1.6 |
Total | $ 27 | $ 27.9 | $ 7.4 |
Income Taxes Uncertain Income T
Income Taxes Uncertain Income Tax Positions (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)jurisdiction | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income Tax Contingency [Line Items] | ||||||
Number of significant foreign jurisdictions | jurisdiction | 3 | |||||
Unrecognized tax benefits | $ 7,500,000 | $ 7,300,000 | $ 6,500,000 | $ 2,600,000 | $ 7,500,000 | $ 7,300,000 |
Unrecognized tax benefits that would impact effective tax rate | 100,000 | 2,300,000 | ||||
Interest and penalties recognized | 300,000 | 300,000 | 100,000 | |||
Interest and penalties accrued | 300,000 | 400,000 | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Balance at beginning of year | 7,500,000 | 7,300,000 | 6,500,000 | |||
Increases related to positions taken in the current year | 600,000 | 1,300,000 | 2,000,000 | |||
Increases related to positions taken in prior years | (700,000) | 0 | 0 | |||
Decreases related to lapse of statutes of limitations | (1,100,000) | (1,300,000) | (1,200,000) | |||
Decrease in unrecognized tax benefits due to foreign currency translation | (400,000) | |||||
Increase in unrecognized tax benefits due to foreign currency translation | 200,000 | 0 | ||||
Decreases for tax positions resulting from the IPO | (3,300,000) | 0 | 0 | |||
Balance at end of year | $ 2,600,000 | $ 7,500,000 | $ 7,300,000 | |||
Offsetting non-current deferred tax asset | 3,200,000 | 5,100,000 | $ 5,300,000 | |||
Contingencies related to uncertain tax positions | 6,000,000 | $ 7,900,000 | ||||
Minimum | ||||||
Income Tax Contingency [Line Items] | ||||||
Possible decrease in unrecognized tax benefits | 0 | |||||
Maximum | ||||||
Income Tax Contingency [Line Items] | ||||||
Possible decrease in unrecognized tax benefits | 1,000,000 | |||||
TMA Agreement, Indemnification Asset | ||||||
Income Tax Contingency [Line Items] | ||||||
Indemnification asset | 3,000,000 | |||||
TMA Agreement, Indemnification Liability | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Contingencies related to uncertain tax positions | $ 3,100,000 |
Long-term (Details)
Long-term (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Total long-term debt | $ 34 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Total long-term debt | 34 |
Letters of credit outstanding, amount | 10.3 |
Line of credit, remaining borrowing capacity | $ 355.7 |
LIBOR | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Interest rate percentage | 4.30% |
Base Rate | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Interest rate percentage | 6.50% |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Shared service cost allocations | $ 15.7 | $ 22.1 | $ 13.2 | |
Net contribution expense | 0.1 | |||
FMC | Pension Cost Allocation | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Shared service cost allocations | 0.9 | 1.2 | 1.2 | |
FMC Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Annual periodic pension cost | $ 0.5 | 32.5 | 4.9 | |
UNITED STATES | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contributions percentage | 80.00% | |||
Employer matching contribution, maximum percentage of employee's compensation | 5.00% | |||
Annual employer contribution percentage for other employees | 5.00% | |||
Net contribution expense | $ 0.5 | 0.1 | ||
UNITED KINGDOM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | 0 | 45.2 | |
Recognized loss due to settlement | 32.5 | 0 | ||
Company contributions to pension plan | $ 1.1 | |||
UNITED KINGDOM | FMC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment into defined benefit plan | $ 20.7 | |||
Recognized loss due to settlement | $ 32.5 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits Postretirement Activity (Details) - UNITED KINGDOM - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in projected benefit obligation | ||
Projected benefit obligation at January 1 | $ 46 | |
Interest cost | 0.5 | $ 1 |
Actuarial gain | (1.5) | |
Foreign currency exchange rate changes | 3.3 | |
Settlement | (47.4) | |
Benefits paid | (0.9) | |
Projected benefit obligation at December 31 | 0 | 46 |
Change in plan assets | ||
Fair value of plan assets at January 1 | 0 | $ 45.2 |
Actual return on plan assets | (0.4) | |
Foreign currency exchange rate changes | 3.3 | |
Company contributions | 1.1 | |
Actual expenses | (0.9) | |
Settlement | (47.4) | |
Benefits paid | (0.9) | |
Fair value of plan assets at December 31 | 45.2 | |
Net funded status of the plan | 0 | |
Amount recognized in the consolidated and combined balance sheets: | ||
Accrued benefit liability | 0 | |
Total | $ 0 |
Debt Revolving Credit Facility
Debt Revolving Credit Facility and Maturities of Long-Term Debt (Details) - USD ($) | Sep. 28, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt maturing in 2023 | $ 34,000,000 | |
Revolving Credit Facility | Citibank, N.A. | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 400,000,000 | |
Maximum increase in revolving credit commitments | 600,000,000 | |
Letter of Credit | Citibank, N.A. | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 50,000,000 | |
Base Rate | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Eurodollar | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% |
Pensions and Other Postretire_5
Pensions and Other Postretirement Benefits Other Changes In Plan Assets (Details) - UNITED KINGDOM $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Current year net actuarial gain | $ (0.7) |
Amortization of net actuarial loss | (0.8) |
Settlement charge | (32.5) |
Foreign currency exchange rate changes on the above line items | 2.3 |
Total recognized in other comprehensive income, before taxes | (31.7) |
Total recognized in other comprehensive income, after taxes | $ (26.3) |
Pensions and Other Postretire_6
Pensions and Other Postretirement Benefits Net Annual Benefit Cost Assumptions (Details) - UNITED KINGDOM - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.35% | 1.20% |
Expected return on plan assets | 1.20% | 6.30% |
Components of net annual benefit cost: | ||
Interest cost | $ 0.5 | $ 1 |
Expected return on plan assets | 0.5 | (1.4) |
Amortization of net actuarial and other loss | 0.8 | 0.3 |
Recognized loss due to settlement | 32.5 | 0 |
Net annual benefit cost | $ 34.3 | $ (0.1) |
Stock-based Compensation Narrat
Stock-based Compensation Narrative (Details) $ / shares in Units, $ in Millions | Oct. 15, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)installment$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2018shares | Oct. 11, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 5.23 | ||||||
Unrecognized compensation cost related to unvested stock options | $ 3.5 | $ 3.5 | |||||
Share-based compensation expense | $ 0.4 | ||||||
Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment award, expiration period | 10 years | ||||||
Requisite service period | 3 years 9 months 1 day | ||||||
Share-based compensation expense | $ 0.2 | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | 3.9 | $ 3.9 | |||||
Requisite service period | 3 years 1 month | ||||||
Share-based compensation expense | $ 0.2 | ||||||
Second vesting period | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Awards vesting period | 4 years | ||||||
Second vesting period | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Awards vesting period | 4 years | ||||||
First vesting period | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Awards vesting period | 3 years | ||||||
First vesting period | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Awards vesting period | 3 years | ||||||
Non-Director | Initial public offering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock to FMC in connection with the Separation and reclassification of Net parent investment | $ 7.2 | ||||||
Non-Director | Initial public offering | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock to FMC in connection with the Separation and reclassification of Net parent investment | 3.6 | ||||||
Non-Director | Initial public offering | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock to FMC in connection with the Separation and reclassification of Net parent investment | 3.6 | ||||||
Non-Director | Initial public offering | Second vesting period | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting period | 4 years | ||||||
Non-Director | Initial public offering | First vesting period | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards vesting period | 3 years | ||||||
Director | Initial public offering | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock to FMC in connection with the Separation and reclassification of Net parent investment | $ 0.2 | ||||||
Livent Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares authorized (in shares) | shares | 4,290,000 | 4,290,000 | |||||
Share-based compensation expense | $ 0.4 | ||||||
Livent Plan | Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of vesting installments | installment | 2 | ||||||
Share-based payment award, expiration period | 10 years | ||||||
FMC Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 2.7 | $ 2.6 | $ 1.3 |
Stock-based Compensation Stock
Stock-based Compensation Stock Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 0.4 | |
Compensation expense taxes | 0.1 | |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 0.2 | |
Compensation expense taxes | 0.1 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | 0.2 | |
Compensation expense taxes | $ 0.1 | |
Livent Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation expense | $ 0.4 | |
Compensation expense taxes | $ 0.1 |
Stock-based Compensation Black
Stock-based Compensation Black Scholes Assumptions (Details) - Stock Option | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0.00% |
Expected volatility | 21.71% |
Expected life (in years) | 6 years 9 months 2 days |
Risk-free interest rate | 3.11% |
Stock-based Compensation Stoc_2
Stock-based Compensation Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options Granted But Not Exercised | ||
Options outstanding, beginning balance (in shares) | 0 | |
Options granted (in shares) | 716,256 | |
Options outstanding, ending balance (in shares) | 716,256 | |
Options exercisable (in shares) | 0 | |
Weighted-Average Remaining Contractual Life (in Years) | ||
Options outstanding, weighted average remaining contractual life | 9 years 9 months 2 days | |
Weighted-Average Exercise Price Per Share | ||
Options outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 0 | |
Options granted, weighted average exercise price (in dollars per share) | 16.99 | |
Options outstanding, weighted average exercise price, ending balance (in dollars per share) | 16.99 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 | |
Aggregate Intrinsic Value (in Millions) | ||
Options outstanding, intrinsic value | $ 0 | $ 0 |
Options granted, intrinsic value | 0 | |
Options exercisable, intrinsic value | $ 0 |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Activity (Details) | Oct. 10, 2018shares | Dec. 31, 2018$ / sharesshares |
Restricted Stock Units (RSUs) | ||
Number of awards | ||
Nonvested awards outstanding, beginning balance (in shares) | 0 | |
Awards granted (in shares) | 237,669,000 | |
Converted FMC awards | 12,117 | 12,117,000 |
Nonvested awards outstanding, ending balance (in shares) | 249,786,000 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested awards outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 0 | |
Awards granted, weighted average grant date fair value (in dollars per share) | $ / shares | 16.94 | |
Converted FMC awards, weighted average grant date fair value (in dollars per share) | $ / shares | 17 | |
Nonvested awards outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 16.94 | |
Conversion rate | 4.96 | |
Shares held by employees (in shares) | 0 | |
FMC Plan | ||
Number of awards | ||
Nonvested awards outstanding, ending balance (in shares) | 2,443 | |
Weighted-Average Grant Date Fair Value | ||
Shares held by employees (in shares) | 2,443 |
Equity Summary of Capital Stock
Equity Summary of Capital Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Capital Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 0 |
Ending balance (in shares) | 146,000,000 |
Issued to Parent - transfer of Lithium Business assets | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 123,000,000 |
Initial public offering | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 20,000,000 |
Over-allotment Option Exercise | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 3,000,000 |
Equity Schedule of Accumulated
Equity Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 385.4 | $ 310.7 | $ 296.6 |
Other comprehensive loss before reclassifications | (3.6) | 4.7 | (25.3) |
Amounts reclassified from accumulated other comprehensive loss | 26.3 | 0.2 | |
Ending balance | 487.9 | 385.4 | 310.7 |
Foreign currency adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (45.6) | (50.3) | (41.2) |
Other comprehensive loss before reclassifications | (2.4) | 4.7 | (9.1) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Ending balance | (48) | (45.6) | (50.3) |
Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Other comprehensive loss before reclassifications | (1.2) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Ending balance | (1.2) | 0 | 0 |
Pension and other postretirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (26.3) | (10.3) |
Other comprehensive loss before reclassifications | 0 | 0 | (16.2) |
Amounts reclassified from accumulated other comprehensive loss | 26.3 | 0.2 | |
Ending balance | 0 | 0 | (26.3) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (45.6) | (76.6) | (51.5) |
Ending balance | $ (49.2) | $ (45.6) | $ (76.6) |
Equity Reclassification Out of
Equity Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension and other postretirement benefits | $ 0.2 | $ (31.4) | $ (3.6) | ||||||||
Total before tax | 153.1 | 70.1 | 54.5 | ||||||||
Provision for income taxes | (27) | (27.9) | (7.4) | ||||||||
Net income attributable to Livent stockholders | $ 25.9 | $ 30 | $ 38 | $ 32.2 | $ (10.9) | $ 25.6 | $ 17.5 | $ 10 | 126.1 | 42.2 | 47.1 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | 0 | 31.7 | (0.3) | ||||||||
Provision for income taxes | 0 | (5.4) | 0.1 | ||||||||
Net income attributable to Livent stockholders | 0 | 26.3 | (0.2) | ||||||||
Amount included in net income | Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension and other postretirement benefits | 0 | (0.8) | (0.3) | ||||||||
Recognized loss due to settlement/curtailment | Amount Reclassified from Accumulated Other Comprehensive Loss | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Pension and other postretirement benefits | $ 0 | $ 32.5 | $ 0 |
Equity Additional Information (
Equity Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Equity [Abstract] | |
Dividends paid | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 13, 2018 | Oct. 15, 2018 | Oct. 01, 2018 | Nov. 13, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Antidilutive securities (in shares) | 716,256 | |||||||||||||||||
Numerator: | ||||||||||||||||||
Net income | $ 25.9 | $ 30 | $ 38 | $ 32.2 | $ (10.9) | $ 25.6 | $ 17.5 | $ 10 | $ 126.1 | $ 42.2 | $ 47.1 | |||||||
Denominator (in thousands): | ||||||||||||||||||
Weighted average common shares outstanding - basic (in shares) | 141,600,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 127,677,000 | [1] | 123,000,000 | [1] | 123,000,000 | [1] | ||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 0 | 0 | |||||||||||||||
Weighted average common shares outstanding – diluted (in shares) | 141,600,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 127,677,000 | [1] | 123,000,000 | [1] | 123,000,000 | [1] | ||||
Basic earnings per common share: | ||||||||||||||||||
Net income per weighted average share - basic (in dollars per share) | $ 0.18 | $ 0.24 | $ 0.31 | $ 0.26 | $ (0.09) | $ 0.21 | $ 0.14 | $ 0.08 | $ 0.99 | $ 0.34 | $ 0.38 | |||||||
Diluted earnings per common share: | ||||||||||||||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0.18 | $ 0.24 | $ 0.31 | $ 0.26 | $ (0.09) | $ 0.21 | $ 0.14 | $ 0.08 | $ 0.99 | $ 0.34 | $ 0.38 | |||||||
Initial public offering | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Shares of common stock issued (in shares) | 20,000,000 | 123,000,000 | 23,000,000 | |||||||||||||||
Price of common stock issued (in dollars per share) | $ 17 | |||||||||||||||||
Over-allotment Option Exercise | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Shares of common stock issued (in shares) | 3,000,000 | |||||||||||||||||
Pro Forma | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Shares of common stock outstanding (in shares) | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | 123,000,000 | |||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||||||
Antidilutive securities (in shares) | 100,000 | |||||||||||||||||
[1] | For all prior periods presented and the current period through the completion of the public offering on October 15, 2018, the weighted average shares outstanding for both basic and diluted earnings per share were calculated using 123 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for all periods prior to the completion of the public offering on October 15, 2018 excludes the 23 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 2 for further details. |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 716,256 | ||
Antidilutive securities, exercise price (in dollars per share) | $ 16.99 | ||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 0 | 0 |
FMC Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 1,100,000 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements Narrative (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Estimated fair value of debt | $ 34,000,000 | $ 0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 77,500,000 | |
Designated as Hedging Instrument | Foreign Currency and Energy Contracts | ||
Derivative [Line Items] | ||
Foreign currency cash flow hedge, gain (loss) to be realized in next twelve months | (1,200,000) | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 63,900,000 | |
Cash Flow Hedging | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 1,200,000 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements Fair Value Derivative Instruments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Offsetting Derivative Liabilities | |
Derivative liabilities, net | $ (1.3) |
Foreign Exchange Contracts | |
Offsetting Derivative Liabilities | |
Derivative liabilities, net | (1.3) |
Designated as Hedging Instrument | |
Offsetting Derivative Liabilities | |
Derivative liabilities, gross | (1.3) |
Designated as Hedging Instrument | Foreign Exchange Contracts | |
Offsetting Derivative Liabilities | |
Derivative liabilities, gross | $ (1.3) |
Financial Instruments, Risk M_5
Financial Instruments, Risk Management and Fair Value Measurements Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 385.4 | $ 310.7 | $ 296.6 |
Other comprehensive loss before reclassifications | (3.6) | 4.7 | (25.3) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (3.6) | 31 | (25.1) |
Ending balance | 487.9 | 385.4 | 310.7 |
Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Other comprehensive loss before reclassifications | (1.2) | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1.2 | ||
Ending balance | (1.2) | 0 | $ 0 |
Derivative Instruments | Foreign Exchange Contracts | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | ||
Other comprehensive loss before reclassifications | (1.2) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1.2 | ||
Ending balance | $ (1.2) | $ 0 |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.6) | $ 0 | $ 0 |
Foreign Exchange contracts | Cost of Sales and Services | |||
Derivative [Line Items] | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.6) | $ 0 | $ 0 |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements Recurring Fair Value Measurements (Details) $ in Millions | Dec. 31, 2018USD ($) |
Liabilities | |
Derivative Liability | $ 1.3 |
Total Liabilities | 1.3 |
Foreign Exchange Contracts | |
Liabilities | |
Derivative Liability | 1.3 |
Level 1 | |
Liabilities | |
Total Liabilities | 0 |
Level 1 | Foreign Exchange Contracts | |
Liabilities | |
Derivative Liability | 0 |
Level 2 | |
Liabilities | |
Total Liabilities | 1.3 |
Level 2 | Foreign Exchange Contracts | |
Liabilities | |
Derivative Liability | 1.3 |
Level 3 | |
Liabilities | |
Total Liabilities | 0 |
Level 3 | Foreign Exchange Contracts | |
Liabilities | |
Derivative Liability | $ 0 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies, Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases rent expense | $ 1.5 | $ 1.5 | $ 1.1 |
Operating Leases | |||
2,019 | 1.7 | ||
2,020 | 1.9 | ||
2,021 | 1.8 | ||
2,022 | 1.7 | ||
2,023 | 1.6 | ||
Thereafter | $ 10.2 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Prepaid and other current assets | |||
Argentina government receivable | $ 8.8 | $ 13.5 | |
Tax related items | 4.1 | 3.6 | |
Other receivables | 6.2 | 6.5 | |
Prepaid expenses | 8.4 | 8.3 | |
Bank Acceptance Drafts | 29.1 | 0 | |
Other current assets | 3.2 | 0.7 | |
Total | 59.8 | 32.6 | |
Other assets | |||
Argentina government receivable | 41.5 | 34 | |
Advance to contract manufacturers | 15.3 | 10 | |
Capitalized software, net | 1.4 | 2.2 | |
Prepayment associated with long-term supply agreements | 10 | 10 | |
Tax related items | 6.2 | 5.1 | |
Other long-term assets | 5.6 | 5.7 | |
Total | 80 | 67 | |
Offsetting non-current deferred tax asset | 3.2 | 5.1 | $ 5.3 |
Accrued and other current liabilities | |||
Restructuring reserves | 3.6 | 2.9 | 0.3 |
Due to parent - FMC | 23.8 | 0 | |
Accrued payroll | 8.5 | 7.9 | |
Environmental reserves, current | 0.5 | 0.5 | |
Derivative liabilities | 1.3 | 0 | |
Other accrued and other current liabilities | 9.1 | 10 | |
Total | 46.8 | 21.3 | |
Other long-term liabilities | |||
Asset retirement obligations | 0.2 | 0.2 | |
Contingencies related to uncertain tax positions | 6 | 7.9 | |
Self insurance reserves | 2.4 | 1.7 | |
Other long-term liabilities | 0.7 | 0.9 | |
Total | 9.3 | 10.7 | |
Shared service cost allocations | 15.7 | 22.1 | 13.2 |
Argentina Government | |||
Other assets | |||
Export tax and export rebate receivables | 38 | 38.1 | |
Transaction Services Agreement | |||
Accrued and other current liabilities | |||
Due to parent - FMC | 2.3 | ||
Transaction Services Agreement, Income Taxes Payable | |||
Accrued and other current liabilities | |||
Due to parent - FMC | 16.9 | ||
Shared service costs | |||
Accrued and other current liabilities | |||
Due to parent - FMC | 4.6 | ||
TMA Agreement, Uncertain Tax Positions | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | 2.9 | ||
TMA Agreement, Indemnification Liability | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | 3.1 | ||
Majority Shareholder | |||
Other long-term liabilities | |||
Shared service cost allocations | 15.7 | 22.1 | 13.2 |
Majority Shareholder | Shared service costs | |||
Other long-term liabilities | |||
Shared service cost allocations | $ 4.6 | $ 5.4 | $ 3.8 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Oct. 15, 2018 | Oct. 01, 2018 | Nov. 13, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||||
Revenue | $ 119.8 | $ 112 | $ 107.9 | $ 102.8 | $ 113.4 | $ 94.4 | $ 73.9 | $ 65.7 | $ 442.5 | $ 347.4 | $ 264.1 | ||||||
Gross margin | 50.2 | 49.5 | 53.8 | 52.2 | 49.8 | 42 | 30.2 | 26.8 | 205.7 | 148.8 | 88.3 | ||||||
Income from operations before non-operating pension (benefit)/settlement charges, interest expense, net and income taxes | 34.1 | 35.5 | 43.2 | 40.4 | 33.9 | 32.8 | 17.4 | 17.4 | 153.2 | 101.5 | 59 | ||||||
Net income | $ 25.9 | $ 30 | $ 38 | $ 32.2 | $ (10.9) | $ 25.6 | $ 17.5 | $ 10 | $ 126.1 | $ 42.2 | $ 47.1 | ||||||
Net income per weighted average share - basic (in dollars per share) | $ 0.18 | $ 0.24 | $ 0.31 | $ 0.26 | $ (0.09) | $ 0.21 | $ 0.14 | $ 0.08 | $ 0.99 | $ 0.34 | $ 0.38 | ||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0.18 | $ 0.24 | $ 0.31 | $ 0.26 | $ (0.09) | $ 0.21 | $ 0.14 | $ 0.08 | $ 0.99 | $ 0.34 | $ 0.38 | ||||||
Weighted average common shares outstanding | |||||||||||||||||
Basic (in shares) | 141,600 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 127,677 | [1] | 123,000 | [1] | 123,000 | [1] | |||
Diluted (in shares) | 141,600 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | 127,677 | [1] | 123,000 | [1] | 123,000 | [1] | |||
Tax expense | $ 11.1 | $ 11.1 | |||||||||||||||
Initial public offering | |||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||
Shares of common stock issued (in shares) | 20,000 | 123,000 | 23,000 | ||||||||||||||
Pro Forma | |||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||
Shares of common stock outstanding (in shares) | 123,000 | 123,000 | 123,000 | 123,000 | 123,000 | ||||||||||||
[1] | For all prior periods presented and the current period through the completion of the public offering on October 15, 2018, the weighted average shares outstanding for both basic and diluted earnings per share were calculated using 123 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for all periods prior to the completion of the public offering on October 15, 2018 excludes the 23 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 2 for further details. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reserve for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, Beginning of Year | $ 0.1 | $ 1 | $ 1.2 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Write-offs | 0 | (0.9) | (0.2) |
Balance, End of Year | 0.1 | 0.1 | 1 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, Beginning of Year | 0 | 2.2 | 11.2 |
Charged to Costs and Expenses | 0 | (2.2) | (9) |
Write-offs | 0 | 0 | 0 |
Balance, End of Year | $ 0 | $ 0 | $ 2.2 |