Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Livent Corp. |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Emerging Growth Company | true |
Entity Ex Transition Period | true |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 146,001,331 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Income Statement [Abstract] | |||
Revenue | $ 98.3 | $ 102.8 | |
Costs and Expenses | |||
Cost of sales | 65.6 | 50.6 | |
Gross margin | 32.7 | 52.2 | |
Selling, general and administrative expenses | 9.2 | 3.6 | |
Corporate allocations | 0 | 5.1 | |
Research and development expenses | 0.8 | 1 | |
Restructuring and other charges | 0.1 | 2.1 | |
Separation-related costs | 1.6 | 0 | |
Total costs and expenses | 77.3 | 62.4 | |
Income from operations before non-operating pension benefit and settlement charges and income taxes | 21 | 40.4 | |
Non-operating pension benefit and settlement charges | 0 | 0.2 | |
Income from operations before income taxes | 21 | 40.2 | |
Provision for income taxes | 4.1 | 8 | |
Net income | $ 16.9 | $ 32.2 | |
Weighted average common shares outstanding - basic (in shares) | [1] | 146 | 123 |
Net income per weighted average share - basic (in dollars per share) | $ 0.12 | $ 0.26 | |
Weighted average common shares outstanding - diluted (in shares) | [1] | 146.5 | 123 |
Net income per weighted average share - diluted (in dollars per share) | $ 0.12 | $ 0.26 | |
[1] | For the prior period presented, the weighted average shares outstanding for both basic and diluted earnings per share was 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 the prior period 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 1 for further details. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) | 3 Months Ended |
Mar. 31, 2018shares | |
Pro Forma | |
Common stock, outstanding (in shares) | 123,000,000 |
Public Stock Offering | |
Stock issued during period (in shares) | 23,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 16.9 | $ 32.2 | |
Foreign currency adjustments: | |||
Foreign currency translation gain arising during the period | 1 | 2.5 | |
Total foreign currency translation adjustments | [1] | 1 | 2.5 |
Derivative instruments: | |||
Unrealized hedging gains, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | 0.3 | ||
Reclassification of deferred hedging gains included in net income, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | (0.4) | ||
Total derivative instruments loss, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | (0.1) | ||
Unrealized hedging gains, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | 0 | ||
Reclassification of deferred hedging gains included in net income, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | 0 | ||
Total derivative instruments loss, net of tax of less than $0.1 and zero for the three months ended March 31, 2019 and 2018, respectively | 0 | ||
Other comprehensive income, net of tax | 0.9 | 2.5 | |
Comprehensive income | $ 17.8 | $ 34.7 | |
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries since it is our intention that such earnings will remain invested in those subsidiaries indefinitely. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized hedging gains, tax | $ 0.1 | |
Reclassification of deferred hedging gains included in net income, tax | 0.1 | |
Total derivative instruments loss, tax | $ 0.1 | |
Unrealized hedging gains, tax | $ 0 | |
Reclassification of deferred hedging gains included in net income, tax | 0 | |
Total derivative instruments loss, tax | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 17.8 | $ 28.3 |
Trade receivables, net of allowance of $0.1 in 2019 and $0.1 in 2018 | 115.1 | 141.4 |
Inventories, net | 84.4 | 71.8 |
Prepaid and other current assets | 56.5 | 59.8 |
Total current assets | 273.8 | 301.3 |
Property, plant and equipment, net | 296.6 | 275.7 |
Deferred income taxes | 2.4 | 3 |
Right of use assets - operating leases | 15.9 | 0 |
Other assets | 81.4 | 80 |
Total assets | 670.1 | 660 |
Current liabilities | ||
Accounts payable, trade and other | 61.9 | 72 |
Accrued and other current liabilities | 13.4 | 46.8 |
Operating lease liabilities - current | 1.5 | 0 |
Income taxes | 2.3 | 1.6 |
Total current liabilities | 79.1 | 120.4 |
Long-term debt | 50 | 34 |
Operating lease liabilities - long-term | 14.3 | 0 |
Environmental liabilities | 5.9 | 5.9 |
Deferred income taxes | 4.5 | 2.5 |
Other long-term liabilities | 9.4 | 9.3 |
Commitments and contingent liabilities (Note 15) | ||
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 146,001,331 and 146,000,000 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 0.1 | 0.1 |
Capital in excess of par value of common stock | 512.3 | 511.1 |
Retained earnings | 42.8 | 25.9 |
Accumulated other comprehensive loss | (48.3) | (49.2) |
Total equity | 506.9 | 487.9 |
Total liabilities and equity | $ 670.1 | $ 660 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 0.1 | $ 0.1 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 146,001,331 | 146,000,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Cash required by operating activities: | |||
Net income | $ 16.9 | $ 32.2 | |
Adjustments to reconcile net income to cash required by operating activities: | |||
Depreciation and amortization | 4.9 | 4.3 | |
Restructuring and other charges | 0.1 | 2.1 | |
Deferred income taxes | 2.6 | 0 | |
Pension and other postretirement benefits | 0 | 0.5 | |
Share-based compensation | 1.2 | 1.1 | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 27.3 | (16.3) | |
Inventories | (11.3) | (2) | |
Accounts payable, trade and other | (10.6) | (13.7) | |
Advance payments from customers | 0 | 0.2 | |
Income taxes | 0.6 | (0.2) | |
Change in prepaid and other current assets and other assets | 2.7 | (1.2) | |
Change in accrued and other current liabilities and other long-term liabilities | (35.8) | (7.9) | |
Cash required by operating activities | (1.4) | (0.9) | |
Cash required by investing activities: | |||
Capital expenditures | [1] | (24.3) | (9.5) |
Other investing activities | (1) | (1.9) | |
Cash required by investing activities | (25.3) | (11.4) | |
Cash provided by financing activities: | |||
Proceeds from issuance of long-term debt | 73 | 0 | |
Repayments of long-term debt | (57) | 0 | |
Payments of financing fees | (0.1) | 0 | |
Net change in net parent investment | 0 | 12.4 | |
Cash provided by financing activities | 15.9 | 12.4 | |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.1 | |
(Decrease) increase in cash and cash equivalents | (10.5) | 0.2 | |
Cash and cash equivalents, beginning of period | 28.3 | 1.2 | |
Cash and cash equivalents, end of period | 17.8 | 1.4 | |
Supplemental Disclosure for Cash Flow: | |||
Cash payments for income taxes, net of refunds | [2] | 17 | 7.3 |
Cash payments for interest, net | [1] | 0.6 | |
Accrued capital expenditures | 3.6 | 4.3 | |
Operating lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842 | $ 16.1 | $ 0 | |
[1] | All of the interest related to our Revolving Credit Facility was capitalized for the three months ended March 31, 2019. | ||
[2] | Three months ended March 31, 2019 includes $16.9 million related to reimbursement paid to FMC for 2018 income taxes paid by FMC on Livent's behalf pursuant to the TMA. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Transaction Services Agreement, Income Taxes Payable | |
Reimbursement paid to parent - FMC | $ 16.9 |
Condensed Consolidated Statem_7
Condensed Consolidated 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, 2017 | $ 385.4 | $ 431 | $ 0 | $ 0 | $ 0 | $ (45.6) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 32.2 | 32.2 | ||||||
Foreign currency translation adjustments | 2.5 | [1] | 2.5 | |||||
Net change in net parent investment | 12.4 | 12.4 | ||||||
Ending balance at Mar. 31, 2018 | 432.5 | 475.6 | 0 | 0 | 0 | (43.1) | ||
Beginning balance at Dec. 31, 2018 | 487.9 | 0 | 0.1 | 511.1 | 25.9 | (49.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 16.9 | 16.9 | ||||||
Stock compensation plans | 1.2 | 1.2 | ||||||
Net hedging losses, net of income tax | (0.1) | (0.1) | ||||||
Foreign currency translation adjustments | [1] | 1 | ||||||
Ending balance at Mar. 31, 2019 | $ 506.9 | $ 0 | $ 0.1 | $ 512.3 | $ 42.8 | $ (48.3) | ||
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries since it is our intention that such earnings will remain invested in those subsidiaries indefinitely. |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations The accompanying condensed consolidated financial statements of Livent Corporation (“Livent”, “we”, “us”, "company" or “our”) include the historical accounts of the lithium business segment ("Lithium Business") of FMC Corporation (“FMC”), a publicly traded company incorporated in Delaware (United States). Livent 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, 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. 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 common 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 were considered a “controlled company” under the NYSE rules. Pursuant to generally accepted accounting principles in the United States ("U.S. GAAP"), costs incurred associated with Separation-related 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-related 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 On March 1, 2019, FMC completed its previously announced spin-off distribution of 123 million shares of common stock of Livent as a pro rata dividend on shares of FMC common stock outstanding at the close of business on the record date of February 25, 2019 (the “Distribution”). Each share of FMC common stock received 0.935301 shares of Livent common stock in the distribution. Immediately prior to the distribution, FMC owned 123 million shares of Livent common stock, representing approximately 84% of the outstanding shares of Livent common stock. Effective upon the distribution, FMC no longer owns any shares of Livent common stock and we are no longer considered a "controlled company" under the NYSE rules. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principle Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our condensed consolidated financial position at March 31, 2019 and December 31, 2018 , the condensed consolidated results of operations for the three months ended March 31, 2019 and 2018, and the condensed consolidated cash flows for the three months ended March 31, 2019 and 2018. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These statements, therefore, should be read in conjunction with the annual consolidated and combined financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the "2018 Annual Report on Form 10-K"). The income tax amounts in the unaudited condensed combined financial statements have been calculated based on a separate return methodology and presented as if our operations were separate taxpayers in the respective jurisdictions. We file United States (U.S.) federal income tax returns with various state, local and non-U.S. jurisdictions. Certain of these income tax returns will be filed on a consolidated or combined basis with FMC through the Separation Date. From the Separation Date onwards, we will file as an independent public company. Please refer to Note 9 , Income Taxes, for a further discussion of this matter. Basis of Presentation Prior to the Separation Historically, Livent did not operate as an independent, stand-alone company. Prior to the Separation, the combined financial statements included 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. We believe the assumptions underlying the pre-Separation period included in the condensed consolidated statement of operations for the three months ended March 31, 2018 , including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Livent. However, these shared expenses may not represent the amounts that would have been incurred had Livent operated autonomously or independently from FMC. Actual costs that would have been incurred if Livent had been a stand-alone 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 FMC’s historical investment in us, the net effect of transactions with and allocations from FMC. As an operating segment of FMC, we did not own or maintain separate bank accounts, except for certain foreign jurisdictions, where we were required to maintain separate accounts, and as required in preparation for the Separation. FMC uses a centralized approach to the cash management and funded our operating and investing activities as needed. Accordingly, cash held by FMC at the corporate level was not allocated to us for any of the periods presented. In periods prior to the Separation we reflected the cash generated by our operations and expenses paid by FMC on our behalf as a component of “Net parent investment” on the combined balance sheets, and as a net distribution to FMC in our combined statements of cash flows. Intracompany balances and accounts within Livent have been eliminated. In the pre-Separation period included in the condensed consolidated statement of operations for the three months ended March 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 were allocated from FMC. These allocated costs were primarily related to certain governance and corporate functions such as finance, treasury, tax, human resources, legal, investor relations, and certain other costs. Where it was possible to specifically attribute such expenses to activities of Livent, these amounts were charged or credited directly to Livent without allocation or apportionment. Allocation of other such expenses was based on a reasonable reflection of the utilization of the service provided to or benefits received by Livent 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 was included in “Corporate allocations” within the condensed consolidated statements of operations and are shown in detail within the following table. (in Millions) Three Months Ended March 31, 2018 Livent shared service costs (1) $ 1.5 FMC Corporate shared service costs allocated to Livent (2) 0.7 Stock compensation expense (3) 1.0 FMC Corporate expense allocation (4) 1.9 Total Corporate allocations $ 5.1 ____________________ (1) Represents Livent’s portion of shared service costs historically allocated to Livent. These do not include $2.1 million for the three months ended March 31, 2018 of shared service costs historically allocated to and recorded within “Cost of sales” on the condensed consolidated statements of operations. (2) Amounts represent FMC’s Corporate shared service cost allocated to Livent. (3) Stock compensation expense represents the allocation of FMC’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 $0.2 million for the three months ended March 31, 2018 . (4) Represents the additional costs of the centralized functions of FMC allocated to Livent. FMC used a centralized approach to cash management and financing its operations. Historically, the majority of Livent’s cash was transferred to FMC on a daily basis. This arrangement is not reflective of the manner in which Livent would have been able to finance its operations had it been a stand-alone business separate from FMC. Additionally, the assets and liabilities assigned from FMC have been deemed attributable to, and reflective of the historical operations of, Livent; however, the amounts recorded may not be representative of the amounts that would have been incurred had Livent been an entity that operated independently of FMC. Consequently, the pre-Separation period included in the condensed consolidated statement of operations for the three months ended March 31, 2018 may not be indicative of Livent's future performance and does not necessarily reflect what its results of operations, financial position and cash flows would have been had Livent operated as a separate entity apart from FMC. FMC’s debt and related interest expense have not been allocated to us for any of the periods presented since we are not the legal obligor of the debt, and FMC’s borrowings were not directly attributable to us. Earnings per share The weighted average common shares outstanding for both basic and diluted earnings per share for the condensed consolidated financial statements for the three months ended March 31, 2018 was calculated in accordance with ASC 260, Earnings Per Share (ASC 260), using 123.0 million shares of common stock outstanding, which reflects the number of shares held by FMC prior to the IPO. This results in both basic and diluted earnings per share of $0.26 for the three months ended March 31, 2018 . Basis of Presentation After the Separation The condensed consolidated financial statements as of and for the three months ended March 31, 2019 are comprised of the results of operations, comprehensive income, financial position, equity and cash flows for periods after the Separation, which reflects Livent's operation as an independent public company. The condensed consolidated financial statements as of and for the three months ended March 31, 2018 are comprised of the results of operations, comprehensive income, and cash flow amounts for the period prior to the Separation (see above), which includes allocations for direct costs and indirect costs attributable to the operations of the Lithium Business. Leases. We adopted ASC 842 and elected the modified retrospective transition method which required an application date of January 1, 2019. Under the modified retrospective transition method, all prior period disclosures continue to be in accordance with ASC 840. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the condensed consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 15 for information on related disclosures regarding leases. There were no other significant changes to our accounting policies that are set forth in detail in Note 2 to our annual consolidated and combined financial statements in Part II, Item 8 of our 2018 Annual Report on Form 10-K. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [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 March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification. The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The new amendments are effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We have evaluated the effect of the guidance and determined that the adoption will not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued 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 condensed consolidated financial statements. 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 condensed consolidated financial statements. Recently adopted accounting guidance 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. The adoption did not have a material impact on our condensed consolidated financial statements other than a reclassification of certain income tax effects. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) . This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. The adoption did not have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be 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. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). Our total assets and total liabilities increased approximately $16 million in the period of adoption, however, the adoption did not have a material impact on our results of operations or cash flows. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
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: (in Millions) Three Months Ended March 31, 2019 2018 North America (1) $ 15.8 $ 19.8 Latin America 0.7 0.7 Europe, Middle East & Africa 15.3 17.5 Asia Pacific (1) 66.5 64.8 Total Revenue 98.3 102.8 (1) During the three months ended March 31, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan and the U.S. Sales for the three months ended March 31, 2019 for Japan and the U.S. totaled $48.0 million and $15.8 million , respectively. During the three months ended March 31, 2018, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended March 31, 2018 for Japan, the U.S. and China totaled $19.7 million , $19.8 million and $35.0 million , respectively. For the three months ended March 31, 2019 , two customers accounted for approximately 34% and 14% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 64% of our revenue. For the three months ended March 31, 2018 one customer accounted for approximately 10% of total revenue and our 10 largest customers accounted in aggregate for approximately 51% of our revenue. 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: (in Millions) Three Months Ended March 31, 2019 2018 Lithium Hydroxide $ 56.9 $ 49.8 Butyllithium 26.9 24.6 High Purity Lithium Metal and Other Specialty Compounds 13.0 17.8 Lithium Carbonate and Lithium Chloride 1.5 10.6 Total Revenue 98.3 102.8 Our lithium hydroxide and butyllithium products are developed and sold to global and regional customers in the EV, 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 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 condensed consolidated statements of operations. We record a liability until remitted to the respective taxing authority. 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. As of March 31, 2019 and December 31, 2018, there were no contract liabilities from contract with customers. (in Millions) Balance as of March 31, 2019 Balance as of December 31, 2018 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 115.1 $ 141.4 $ (26.3 ) 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 $46 million for the remainder of 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. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Finished goods $ 21.0 $ 22.2 Work in process 49.3 36.6 Raw materials, supplies and other 15.6 14.5 First-in, first-out inventory 85.9 73.3 Less: Excess of first-in, first-out cost over last-in, first-out cost (1.5 ) (1.5 ) Inventories, net $ 84.4 $ 71.8 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Property, plant and equipment 491.3 468.8 Accumulated depreciation (194.7 ) (193.1 ) Property, plant and equipment, net $ 296.6 $ 275.7 |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In 2017, we began restructuring efforts at our manufacturing site located in Bessemer City, North Carolina. The objective of this restructuring plan is to optimize both the assets and cost structure by reducing certain production lines at the plant. The restructuring decision resulted primarily in shutdown costs. The following table shows total restructuring and other charges included in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2019 2018 Restructuring charges Demolition and exit charges (1) $ — $ 1.8 Asset disposal charges (2) — 0.2 Other charges Environmental remediation (3) 0.1 0.1 Total restructuring and other charges $ 0.1 $ 2.1 ___________________ (1) Primarily represents costs associated with demolition and other miscellaneous exit costs. (2) Primarily represents fixed asset write-offs which were or are to be abandoned. (3) Other charges represent costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 8 for more details. Roll forward of restructuring reserve The following table shows a roll forward of restructuring reserve that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (2) Balance December 31, 2017 $ 2.9 Change in reserves (1) 1.9 Cash payments (1.2 ) Balance December 31, 2018 $ 3.6 Cash payments (0.1 ) Balance March 31, 2019 $ 3.5 ____________________ (1) Primarily related to facility shutdowns and other miscellaneous exit costs. (2) Included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. |
Environmental Obligations
Environmental Obligations | 3 Months Ended |
Mar. 31, 2019 | |
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. 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 March 31, 2019 and December 31, 2018 , a portion of which is included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. Although potential environmental remediation expenditures in excess of the reserves and estimated loss contingencies could be significant, the impact on our future consolidated 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, 2017 to March 31, 2019 . (in Millions) Total Total environmental reserves at December 31, 2017 $ 6.4 Change in reserve (1) 0.2 Cash payments (0.2 ) Total environmental reserves at December 31, 2018 $ 6.4 Change in reserve (1) 0.1 Cash payments (0.1 ) Total environmental reserves at March 31, 2019 $ 6.4 Environmental reserves, current (2) $ 0.5 Environmental reserves, long-term (3) 5.9 Total environmental reserves at March 31, 2019 $ 6.4 ____________________ (1) These amounts are included within "Restructuring and other" on the condensed consolidated statements of operations. (2) These amounts are included within "Accrued and other current liabilities" on the condensed consolidated balance sheets. (3) These amounts are included in "Environmental liabilities" on the condensed consolidated balance sheets. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: March 31, 2019 Interest Rate Percentage Maturity Date March 31, 2019 December 31, 2018 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.5% 6.5% 2023 $ 50.0 $ 34.0 Total long-term debt (2) $ 50.0 $ 34.0 ______________________________ (1) As of March 31, 2019 and 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 $339.7 million and $355.7 million , respectively. (2) As of March 31, 2019 and December 31, 2018 , the Company had no debt maturing within one year. 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. See Note 10, Part II, Item 8 of our 2018 Annual Report on Form 10-K for more information. 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 March 31, 2019 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our interim tax provision using an estimated annual effective tax rate methodology (“EAETR”) in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. For the three months ended March 31, 2018, income taxes prior to the Separation were determined in accordance with the separate return method. For the three months ended March 31, 2019, income taxes were determined in accordance with Livent's status as an independent public company. Provision for income taxes for the three months ended March 31, 2019 was $4.1 million resulting in an effective tax rate of 19.5% . Provision for income taxes for the three months ended March 31, 2018 was $8.0 million resulting in an effective tax rate of 19.9% . |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Livent Corporation Incentive Compensation and Stock Plan Effective March 5, 2019, Livent registered 2,000,000 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"). As of March 31, 2019 , the total shares of Livent common stock authorized for issuance under the Livent Plan is 6,290,000 . Refer to the Company's 2018 Annual Report on Form 10-K, Part II, Item 8 for further information about the Livent Plan. Conversion of FMC Corporation Incentive Compensation and Stock Plan ("FMC Plan") Awards 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 was 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) was 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 remains 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 are not 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 which will vest in both FMC and Livent common stock shares, subject to the same terms and conditions as were applicable immediately prior to the conversion. Stock Compensation We recognized the following stock compensation expense for awards under the Livent Plan: (in Millions) Three Months Ended March 31, 2019 Stock Option Expense, net of taxes of $0.1 $ 0.4 Restricted Stock Expense, net of taxes of $0.1 0.6 Total Stock Compensation Expense, net of taxes of $0.2 (1) $ 1.0 ____________________ (1) This expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. Stock Options The grant date fair values of the stock options granted in the three months ended March 31, 2019 , 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 the three months ended March 31, 2019 will cliff vest on the third anniversary of the grant date and expire ten years from the date of grant. Black Scholes valuation assumptions for Livent Plan stock option grants: Three Months Ended March 31, 2019 Expected dividend yield —% Expected volatility 20.07% Expected life (in years) 6.50 Risk-free interest rate 2.55% The weighted-average grant date fair value of options granted during the three months ended March 31, 2019 was $3.40 per share. The following summary shows stock option activity for the Livent Plan for the three months ended March 31, 2019 : 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, 2018 716,256 9.8 years $ 16.99 $ — Granted 48,804 $ 12.48 Converted FMC awards 946,161 Outstanding March 31, 2019 1,711,221 8.0 years $ 12.50 $ 3.0 Exercisable at March 31, 2019 474,781 5.2 years $ 8.36 $ 1.9 As of March 31, 2019 , we had total remaining unrecognized compensation cost related to unvested stock options of $4.1 million which will be amortized over the weighted-average remaining requisite service period of approximately 3.3 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 RSUs granted during the three months ended March 31, 2019 , is cliff vesting 3 years following the grant date. The following table shows RSU activity of the Livent Plan for the three months ended March 31, 2019 : Restricted Stock Units Number of awards Weighted-Average Grant Date Fair Value Nonvested December 31, 2018 249,786 $ 16.94 Granted 51,029 $ 12.81 Converted FMC awards 311,387 Nonvested March 31, 2019 612,202 $ 12.93 As of March 31, 2019 , the Livent Plan had total remaining unrecognized compensation cost related to unvested RSUs of $5.5 million which will be amortized over the weighted-average remaining requisite service period of approximately 2.0 years |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity The following is a summary of our capital stock activity for the three months ended March 31, 2019 : Common Stock Shares Balance at December 31, 2018 146,000,000 Adjusted FMC RSU awards (1) 1,331 Balance at March 31, 2019 146,001,331 (1) See Note 11 for more information on Adjusted FMC RSU awards held by FMC employees. Summarized below is the roll forward of accumulated other comprehensive loss, net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Total Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (48.0 ) $ (1.2 ) $ (49.2 ) 2019 Activity Other comprehensive income before reclassifications 1.0 0.3 1.3 Amounts reclassified from accumulated other comprehensive income — (0.4 ) (0.4 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (47.0 ) $ (1.3 ) $ (48.3 ) (in Millions) Foreign currency adjustments Total Accumulated other comprehensive loss, net of tax at December 31, 2017 $ (45.6 ) $ (45.6 ) 2018 Activity Other comprehensive income (loss) before reclassifications 2.5 2.5 Accumulated other comprehensive loss, net of tax at March 31, 2018 $ (43.1 ) $ (43.1 ) ____________________ (1) See Note 14 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 condensed consolidated statements of operations for the period presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Condensed Combined Statements of Operations (in Millions) Three Months Ended March 31, 2019 Derivative instruments Foreign currency contracts $ (0.4 ) Costs of sales and services Total before tax (0.4 ) Amount included in net income (2) (0.4 ) Total reclassifications for the period $ (0.4 ) Amount included in net income ____________________ (1) No amounts were reclassified from accumulated other comprehensive loss for the three months ended March 31, 2018. (2) Provision for income taxes related to the reclassification was less than $0.1 million for the three months ended March 31,2019. Dividends For the three months ended March 31, 2019 , we paid no dividends. We do not expect to pay any dividends in the foreseeable future. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 Livent Plan. See Note 12 to our annual consolidated and combined financial statements in Part II, Item 8 of our 2018 Annual Report on Form 10-K for more information. 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 the condensed consolidated financial statements for the three months ended March 31, 2018 was calculated, in accordance with ASC 260, Earnings Per Share (ASC 260), using 123.0 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 are 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) Three Months Ended March 31, 2019 2018 Numerator: Net income $ 16.9 $ 32.2 Denominator: Weighted average common shares outstanding - basic 146.0 123.0 Weighted average additional shares assuming conversion of potential common shares 0.5 — Weighted average common shares outstanding - diluted 146.5 123.0 Basic earnings per common share: Net income per weighted average share - basic $ 0.12 $ 0.26 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.12 $ 0.26 Anti-dilutive stock options For the three months ended March 31, 2019, 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 was 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) was 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 was converted into Adjusted FMC RSUs which will vest in both FMC and Livent common stock shares, subject to the same terms and conditions as were applicable immediately prior to the conversion. See Note 12 for more information on the FMC Plan. There were $0.5 million incremental shares related to the Converted Awards and Adjusted FMC RSUs that were included for diluted earnings per share for the three months ended March 31, 2019. |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instrument, Risk Management and Fair Value Measurements | Financial Instruments, 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 $50.0 million and $34.0 million as of March 31, 2019 and December 31, 2018 , respectively. 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 could include 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 March 31, 2019 , we had open foreign currency forward contracts in AOCI in a net after-tax loss position of $ 1.3 million designated as cash flow hedges of underlying forecasted sales and purchases. At March 31, 2019 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $71.3 million . Approximately $1.3 million of net after-tax loss, representing open foreign currency exchange contracts, will be realized in earnings during the nine months ending December 31, 2019 if spot rates in the future are consistent with market rates as of March 31, 2019 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 condensed consolidated 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 $53.7 million at March 31, 2019 . Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments: March 31, 2019 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.4 Total derivative assets (1) 0.4 Foreign exchange contracts (1.8 ) Total derivative liabilities (2) (1.8 ) Net derivative liabilities $ (1.4 ) December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ (1.3 ) Total derivative liabilities (2) (1.3 ) Net derivative liabilities $ (1.3 ) ____________________ (1) Balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets. (2) Balance is included in “Accrued and other current liabilities” in the condensed consolidated 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, 2018 $ (1.2 ) $ (1.2 ) 2019 Activity Unrealized hedging gains, net of tax 0.3 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.4 ) (0.4 ) Total derivative instrument impact on comprehensive income, net of tax (0.1 ) (0.1 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (1.3 ) $ (1.3 ) ____________________ (1) Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations. Derivatives Not Designated as Cash Flow Hedging Instruments Location of Loss Recognized in Income on Derivatives Amount of Pre-tax Loss Recognized in Income on Derivatives (1) Three Months Ended (in Millions) 2019 Foreign Exchange contracts Cost of Sales and Services $ (0.1 ) Total $ (0.1 ) ____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Prior to the Separation, derivative instruments were under FMC's hedging program for the three months ended March 31, 2018. 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 condensed consolidated balance sheets. (in Millions) March 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Derivatives – Foreign exchange (1) $ 0.4 $ — $ 0.4 $ — Total Assets $ 0.4 $ — $ 0.4 $ — Liabilities Derivatives – Foreign exchange (1) $ 1.8 $ — $ 1.8 $ — Total Liabilities $ 1.8 $ — $ 1.8 $ — (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 consolidated 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 consolidated 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 a 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. Leases All of our leases are operating leases and the Company has no short-term leases as of March 31, 2019. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of 2 years to 15 years. Quantitative disclosures about our leases are summarized in the table below. (in Millions, except for weighted-average amounts) Three Months Ended March 31, 2019 Lease Cost Operating lease cost (1) $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 0.4 Weighted-average remaining lease term - operating leases 12.7 years Weighted-average discount rate - operating leases 4.39 % _______________________________ (1) Variable lease cost and sublease income for the three months ended March 31, 2019 were each less than $0.1 million . Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows 2019 (excluding the three months ended March 31, 2019) $ 1.1 2020 1.8 2021 1.8 2022 1.8 2023 1.6 Thereafter 12.9 Total future minimum lease payments 21.0 Less: Imputed interest (5.2 ) Total $ 15.8 As of December 31, 2018, the Company's future minimum lease payments under non-cancelable operating leases for the five years ending December 31, 2019 through 2023 and thereafter were as follows: $1.7 million , $1.9 million , $1.8 million , $1.7 million , $1.6 million and $10.2 million , respectively. |
Supplemental Information
Supplemental Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2019 December 31, 2018 Prepaid and other current assets Argentina government receivable (1) $ 11.4 $ 8.8 Tax related items 5.5 4.1 Other receivables 5.3 6.2 Prepaid expenses 5.5 8.4 Bank Acceptance Drafts (2) 23.2 29.1 Other current assets 5.6 3.2 Total $ 56.5 $ 59.8 (in Millions) March 31, 2019 December 31, 2018 Other assets Argentina government receivable (1) $ 42.8 $ 41.5 Advance to contract manufacturers (3) 15.7 15.3 Capitalized software, net 1.3 1.4 Prepayment associated with long-term supply agreements 10.0 10.0 Tax related items (4) 5.6 6.2 Other assets 6.0 5.6 Total $ 81.4 $ 80.0 ____________________ (1) We have various subsidiaries that conduct business within Argentina. At March 31, 2019 and December 31, 2018 , $38.0 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was 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 for 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 and $2.6 million , respectively, relating to specific uncertain tax positions and other tax related items. (in Millions) March 31, 2019 December 31, 2018 Accrued and other current liabilities Restructuring reserves $ 3.5 $ 3.6 Due to FMC (1) 0.5 23.8 Accrued payroll 3.5 8.5 Derivative liabilities 1.4 1.3 Environmental reserves, current 0.5 0.5 Other accrued and other current liabilities 4.0 9.1 Total $ 13.4 $ 46.8 (in Millions) March 31, 2019 December 31, 2018 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 6.0 6.0 Self-insurance reserves 2.4 2.4 Other long-term liabilities 0.8 0.7 Total $ 9.4 $ 9.3 ____________________ (1) At December 31, 2018 , we had obligations to FMC for amounts due under the TSA 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 . These obligations were settled during the first quarter of 2019. (2) At March 31, 2018 and 2019, we have recorded a liability for uncertain tax positions of $3.1 million and a $2.9 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There were no material subsequent events that required recognition or additional disclosure in the accompanying condensed consolidated financial statements. |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Leases | Leases. We adopted ASC 842 and elected the modified retrospective transition method which required an application date of January 1, 2019. Under the modified retrospective transition method, all prior period disclosures continue to be in accordance with ASC 840. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the condensed consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 15 for information on related disclosures regarding leases. |
New Accounting Guidance and Regulatory Items | New accounting guidance and regulatory items In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification. The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The new amendments are effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We have evaluated the effect of the guidance and determined that the adoption will not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued 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 condensed consolidated financial statements. 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 condensed consolidated financial statements. Recently adopted accounting guidance 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. The adoption did not have a material impact on our condensed consolidated financial statements other than a reclassification of certain income tax effects. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815) . This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. The adoption did not have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842) . Under the new guidance, lessees will be 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. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). Our total assets and total liabilities increased approximately $16 million in the period of adoption, however, the adoption did not have a material impact on our results of operations or cash flows. |
Revenue Recognition | Our lithium hydroxide and butyllithium products are developed and sold to global and regional customers in the EV, 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 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 condensed consolidated statements of operations. We record a liability until remitted to the respective taxing authority. 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 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 $46 million for the remainder of 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. |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Corporate allocations | The aggregate costs allocated for these functions to Livent was included in “Corporate allocations” within the condensed consolidated statements of operations and are shown in detail within the following table. (in Millions) Three Months Ended March 31, 2018 Livent shared service costs (1) $ 1.5 FMC Corporate shared service costs allocated to Livent (2) 0.7 Stock compensation expense (3) 1.0 FMC Corporate expense allocation (4) 1.9 Total Corporate allocations $ 5.1 ____________________ (1) Represents Livent’s portion of shared service costs historically allocated to Livent. These do not include $2.1 million for the three months ended March 31, 2018 of shared service costs historically allocated to and recorded within “Cost of sales” on the condensed consolidated statements of operations. (2) Amounts represent FMC’s Corporate shared service cost allocated to Livent. (3) Stock compensation expense represents the allocation of FMC’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 $0.2 million for the three months ended March 31, 2018 . (4) Represents the additional costs of the centralized functions of FMC allocated to Livent. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following table provides information about disaggregated revenue by major geographical region: (in Millions) Three Months Ended March 31, 2019 2018 North America (1) $ 15.8 $ 19.8 Latin America 0.7 0.7 Europe, Middle East & Africa 15.3 17.5 Asia Pacific (1) 66.5 64.8 Total Revenue 98.3 102.8 (1) During the three months ended March 31, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan and the U.S. Sales for the three months ended March 31, 2019 for Japan and the U.S. totaled $48.0 million and $15.8 million , respectively. During the three months ended March 31, 2018, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended March 31, 2018 for Japan, the U.S. and China totaled $19.7 million , $19.8 million and $35.0 million , respectively. The following table provides information about disaggregated revenue by major product category: (in Millions) Three Months Ended March 31, 2019 2018 Lithium Hydroxide $ 56.9 $ 49.8 Butyllithium 26.9 24.6 High Purity Lithium Metal and Other Specialty Compounds 13.0 17.8 Lithium Carbonate and Lithium Chloride 1.5 10.6 Total Revenue 98.3 102.8 |
Receivables and contract liabilities | The following table presents the opening and closing balances of our receivables, net of allowances. As of March 31, 2019 and December 31, 2018, there were no contract liabilities from contract with customers. (in Millions) Balance as of March 31, 2019 Balance as of December 31, 2018 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 115.1 $ 141.4 $ (26.3 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Finished goods $ 21.0 $ 22.2 Work in process 49.3 36.6 Raw materials, supplies and other 15.6 14.5 First-in, first-out inventory 85.9 73.3 Less: Excess of first-in, first-out cost over last-in, first-out cost (1.5 ) (1.5 ) Inventories, net $ 84.4 $ 71.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consisted of the following: (in Millions) March 31, 2019 December 31, 2018 Property, plant and equipment 491.3 468.8 Accumulated depreciation (194.7 ) (193.1 ) Property, plant and equipment, net $ 296.6 $ 275.7 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring charges and asset disposals | The restructuring decision resulted primarily in shutdown costs. The following table shows total restructuring and other charges included in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2019 2018 Restructuring charges Demolition and exit charges (1) $ — $ 1.8 Asset disposal charges (2) — 0.2 Other charges Environmental remediation (3) 0.1 0.1 Total restructuring and other charges $ 0.1 $ 2.1 ___________________ (1) Primarily represents costs associated with demolition and other miscellaneous exit costs. (2) Primarily represents fixed asset write-offs which were or are to be abandoned. (3) Other charges represent costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 8 for more details. |
Restructuring reserve rollforward | The following table shows a roll forward of restructuring reserve that will result in cash spending. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (2) Balance December 31, 2017 $ 2.9 Change in reserves (1) 1.9 Cash payments (1.2 ) Balance December 31, 2018 $ 3.6 Cash payments (0.1 ) Balance March 31, 2019 $ 3.5 ____________________ (1) Primarily related to facility shutdowns and other miscellaneous exit costs. (2) Included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. |
Environmental Obligations (Tabl
Environmental Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of accrual for environmental loss contingencies | The table below is a roll forward of our total environmental reserves from December 31, 2017 to March 31, 2019 . (in Millions) Total Total environmental reserves at December 31, 2017 $ 6.4 Change in reserve (1) 0.2 Cash payments (0.2 ) Total environmental reserves at December 31, 2018 $ 6.4 Change in reserve (1) 0.1 Cash payments (0.1 ) Total environmental reserves at March 31, 2019 $ 6.4 Environmental reserves, current (2) $ 0.5 Environmental reserves, long-term (3) 5.9 Total environmental reserves at March 31, 2019 $ 6.4 ____________________ (1) These amounts are included within "Restructuring and other" on the condensed consolidated statements of operations. (2) These amounts are included within "Accrued and other current liabilities" on the condensed consolidated balance sheets. (3) These amounts are included in "Environmental liabilities" on the condensed consolidated balance sheets. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt Long-term debt consists of the following: March 31, 2019 Interest Rate Percentage Maturity Date March 31, 2019 December 31, 2018 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.5% 6.5% 2023 $ 50.0 $ 34.0 Total long-term debt (2) $ 50.0 $ 34.0 ______________________________ (1) As of March 31, 2019 and 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 $339.7 million and $355.7 million , respectively. (2) As of March 31, 2019 and December 31, 2018 , the Company had no debt maturing within one year. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: (in Millions) Three Months Ended March 31, 2019 Stock Option Expense, net of taxes of $0.1 $ 0.4 Restricted Stock Expense, net of taxes of $0.1 0.6 Total Stock Compensation Expense, net of taxes of $0.2 (1) $ 1.0 ____________________ (1) This expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. |
Black Scholes Valuation Assumptions for Stock Option Grants | Black Scholes valuation assumptions for Livent Plan stock option grants: Three Months Ended March 31, 2019 Expected dividend yield —% Expected volatility 20.07% Expected life (in years) 6.50 Risk-free interest rate 2.55% |
Summary of Stock Option Activity | The following summary shows stock option activity for the Livent Plan for the three months ended March 31, 2019 : 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, 2018 716,256 9.8 years $ 16.99 $ — Granted 48,804 $ 12.48 Converted FMC awards 946,161 Outstanding March 31, 2019 1,711,221 8.0 years $ 12.50 $ 3.0 Exercisable at March 31, 2019 474,781 5.2 years $ 8.36 $ 1.9 |
Summary of Restricted Award Activity | The following table shows RSU activity of the Livent Plan for the three months ended March 31, 2019 : Restricted Stock Units Number of awards Weighted-Average Grant Date Fair Value Nonvested December 31, 2018 249,786 $ 16.94 Granted 51,029 $ 12.81 Converted FMC awards 311,387 Nonvested March 31, 2019 612,202 $ 12.93 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a summary of our capital stock activity for the three months ended March 31, 2019 : Common Stock Shares Balance at December 31, 2018 146,000,000 Adjusted FMC RSU awards (1) 1,331 Balance at March 31, 2019 146,001,331 (1) See Note 11 for more information on Adjusted FMC RSU awards held by FMC employees. |
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) Total Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (48.0 ) $ (1.2 ) $ (49.2 ) 2019 Activity Other comprehensive income before reclassifications 1.0 0.3 1.3 Amounts reclassified from accumulated other comprehensive income — (0.4 ) (0.4 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (47.0 ) $ (1.3 ) $ (48.3 ) (in Millions) Foreign currency adjustments Total Accumulated other comprehensive loss, net of tax at December 31, 2017 $ (45.6 ) $ (45.6 ) 2018 Activity Other comprehensive income (loss) before reclassifications 2.5 2.5 Accumulated other comprehensive loss, net of tax at March 31, 2018 $ (43.1 ) $ (43.1 ) ____________________ (1) See Note 14 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 condensed consolidated statements of operations for the period presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Condensed Combined Statements of Operations (in Millions) Three Months Ended March 31, 2019 Derivative instruments Foreign currency contracts $ (0.4 ) Costs of sales and services Total before tax (0.4 ) Amount included in net income (2) (0.4 ) Total reclassifications for the period $ (0.4 ) Amount included in net income ____________________ (1) No amounts were reclassified from accumulated other comprehensive loss for the three months ended March 31, 2018. (2) Provision for income taxes related to the reclassification was less than $0.1 million for the three months ended March 31,2019. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) Three Months Ended March 31, 2019 2018 Numerator: Net income $ 16.9 $ 32.2 Denominator: Weighted average common shares outstanding - basic 146.0 123.0 Weighted average additional shares assuming conversion of potential common shares 0.5 — Weighted average common shares outstanding - diluted 146.5 123.0 Basic earnings per common share: Net income per weighted average share - basic $ 0.12 $ 0.26 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.12 $ 0.26 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.4 Total derivative assets (1) 0.4 Foreign exchange contracts (1.8 ) Total derivative liabilities (2) (1.8 ) Net derivative liabilities $ (1.4 ) December 31, 2018 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ (1.3 ) Total derivative liabilities (2) (1.3 ) Net derivative liabilities $ (1.3 ) ____________________ (1) Balance is included in “Prepaid and other current assets” in the condensed consolidated balance sheets. (2) Balance is included in “Accrued and other current liabilities” in the condensed consolidated 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, 2018 $ (1.2 ) $ (1.2 ) 2019 Activity Unrealized hedging gains, net of tax 0.3 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.4 ) (0.4 ) Total derivative instrument impact on comprehensive income, net of tax (0.1 ) (0.1 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (1.3 ) $ (1.3 ) ____________________ (1) Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operation |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | Location of Loss Recognized in Income on Derivatives Amount of Pre-tax Loss Recognized in Income on Derivatives (1) Three Months Ended (in Millions) 2019 Foreign Exchange contracts Cost of Sales and Services $ (0.1 ) Total $ (0.1 ) ____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Prior to the Separation, derivative instruments were under FMC's hedging program for the three months ended March 31, 2018. |
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 condensed consolidated balance sheets. (in Millions) March 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Derivatives – Foreign exchange (1) $ 0.4 $ — $ 0.4 $ — Total Assets $ 0.4 $ — $ 0.4 $ — Liabilities Derivatives – Foreign exchange (1) $ 1.8 $ — $ 1.8 $ — Total Liabilities $ 1.8 $ — $ 1.8 $ — (in Millions) December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 condensed consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Quantitative disclosures about our leases are summarized in the table below. (in Millions, except for weighted-average amounts) Three Months Ended March 31, 2019 Lease Cost Operating lease cost (1) $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 0.4 Weighted-average remaining lease term - operating leases 12.7 years Weighted-average discount rate - operating leases 4.39 % _______________________________ (1) Variable lease cost and sublease income for the three months ended March 31, 2019 were each less than $0.1 million . Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. |
Lessee, Operating Lease, Liability, Maturity | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows 2019 (excluding the three months ended March 31, 2019) $ 1.1 2020 1.8 2021 1.8 2022 1.8 2023 1.6 Thereafter 12.9 Total future minimum lease payments 21.0 Less: Imputed interest (5.2 ) Total $ 15.8 |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid and Other Assets | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2019 December 31, 2018 Prepaid and other current assets Argentina government receivable (1) $ 11.4 $ 8.8 Tax related items 5.5 4.1 Other receivables 5.3 6.2 Prepaid expenses 5.5 8.4 Bank Acceptance Drafts (2) 23.2 29.1 Other current assets 5.6 3.2 Total $ 56.5 $ 59.8 (in Millions) March 31, 2019 December 31, 2018 Other assets Argentina government receivable (1) $ 42.8 $ 41.5 Advance to contract manufacturers (3) 15.7 15.3 Capitalized software, net 1.3 1.4 Prepayment associated with long-term supply agreements 10.0 10.0 Tax related items (4) 5.6 6.2 Other assets 6.0 5.6 Total $ 81.4 $ 80.0 ____________________ (1) We have various subsidiaries that conduct business within Argentina. At March 31, 2019 and December 31, 2018 , $38.0 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was 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 for 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 and $2.6 million , respectively, relating to specific uncertain tax positions and other tax related items. |
Schedule of Accrued and Other Liabilities | (in Millions) March 31, 2019 December 31, 2018 Accrued and other current liabilities Restructuring reserves $ 3.5 $ 3.6 Due to FMC (1) 0.5 23.8 Accrued payroll 3.5 8.5 Derivative liabilities 1.4 1.3 Environmental reserves, current 0.5 0.5 Other accrued and other current liabilities 4.0 9.1 Total $ 13.4 $ 46.8 (in Millions) March 31, 2019 December 31, 2018 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 6.0 6.0 Self-insurance reserves 2.4 2.4 Other long-term liabilities 0.8 0.7 Total $ 9.4 $ 9.3 ____________________ (1) At December 31, 2018 , we had obligations to FMC for amounts due under the TSA 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 . These obligations were settled during the first quarter of 2019. (2) At March 31, 2018 and 2019, we have recorded a liability for uncertain tax positions of $3.1 million and a $2.9 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Description of the Business (De
Description of the Business (Details) $ / shares in Units, shares in Millions, $ in Millions | Mar. 01, 2019shares | Nov. 13, 2018shares | Oct. 15, 2018$ / sharesshares | Oct. 01, 2018shares | Nov. 13, 2018USD ($)shares |
IPO | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 123 | 20 | 123 | 23 | |
Consideration received | $ | $ 369 | ||||
Conversion of stock | 0.935301 | ||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 17 | ||||
Over-allotment Option Exercise | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 3 | ||||
Livent | IPO | |||||
Class of Stock [Line Items] | |||||
Noncontrolling Interest, Number Of Shares Held By Parent | 123 | ||||
FMC | Livent | |||||
Class of Stock [Line Items] | |||||
Percentage ownership | 84.00% | 84.00% |
Principal Accounting Policies_3
Principal Accounting Policies and Related Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Corporate allocations | $ 0 | $ 5.1 |
Earnings per share - basic and diluted (in usd per share) | $ 0.26 | |
Majority Shareholder | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | $ 5.1 | |
Majority Shareholder | Livent shared service costs | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | 1.5 | |
Majority Shareholder | FMC Corporate shared service costs allocated to Livent | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | 0.7 | |
Majority Shareholder | Stock compensation expense | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | 1 | |
Majority Shareholder | FMC Corporate expense allocation | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | 1.9 | |
Majority Shareholder | Stock compensation expense included in shared service costs | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | 0.2 | |
Majority Shareholder | Cost of sales | Livent shared service costs | ||
Related Party Transaction [Line Items] | ||
Corporate allocations | $ 2.1 | |
Pro Forma | ||
Related Party Transaction [Line Items] | ||
Common stock, outstanding (in shares) | 123 |
Recently Issued and Adopted A_3
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total assets | $ 670.1 | $ 660 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total assets | $ 16 | ||
Total liabilities | $ 16 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 98.3 | $ 102.8 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 15.8 | 19.8 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0.7 | 0.7 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 15.3 | 17.5 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 66.5 | 64.8 |
JAPAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 48 | 19.7 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 15.8 | 19.8 |
CHINA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 35 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Contract liabilities from customers | $ 0 | $ 0 | |
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 Revenue, Net | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 34.00% | ||
Customer Two | Sales Revenue, Net | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 14.00% | ||
Ten Largest Customers | Sales Revenue, Net | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk percentage | 64.00% | 51.00% |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 98.3 | $ 102.8 |
Lithium Hydroxide | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 56.9 | 49.8 |
Butyllithium | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 26.9 | 24.6 |
High Purity Lithium Metal and Other Specialty Compounds | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 13 | 17.8 |
Lithium Carbonate and Lithium Chloride | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1.5 | $ 10.6 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer, net of allowances | $ 115.1 | $ 141.4 |
Increase (decrease) in receivables | $ (26.3) |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 46 |
Expected timing of satisfaction of performance obligations | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 49 |
Expected timing of satisfaction of performance obligations | 1 year |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 21 | $ 22.2 |
Work in process | 49.3 | 36.6 |
Raw materials, supplies and other | 15.6 | 14.5 |
First-in, first-out inventory | 85.9 | 73.3 |
Less: Excess of first-in, first-out cost over last-in, first-out cost | (1.5) | (1.5) |
Inventories, net | $ 84.4 | $ 71.8 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 491.3 | $ 468.8 |
Accumulated depreciation | (194.7) | (193.1) |
Property, plant and equipment, net | $ 296.6 | $ 275.7 |
Restructuring and Other Charg_3
Restructuring and Other Charges (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)site | Mar. 31, 2018USD ($) | |
Other charges | ||
Environmental remediation | $ 0.1 | $ 0.1 |
Total restructuring and other charges | $ 0.1 | 2.1 |
Number of environmental remediation sites | site | 1 | |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | 1.8 |
Asset Disposal Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 0.2 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 3.6 | $ 2.9 |
Change in reserves | 1.9 | |
Cash payments | (0.1) | (1.2) |
Restructuring reserve, ending balance | $ 3.5 | $ 3.6 |
Environmental Obligations (Deta
Environmental Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Total environmental reserves, beginning balance | $ 6.4 | $ 6.4 | ||
Change in reserve | 0.1 | 0.2 | ||
Cash payments | (0.1) | (0.2) | ||
Total environmental reserves, ending balance | 6.4 | 6.4 | ||
Environmental reserves, current | $ 0.5 | $ 0.5 | ||
Environmental reserves, long-term | 5.9 | 5.9 | ||
Total environmental reserves, net of recoveries at end of period | $ 6.4 | $ 6.4 | $ 6.4 | $ 6.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 4.1 | $ 8 |
Effective tax rate | 19.50% | 19.90% |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 50 | $ 34 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 50 | 34 |
Letters of credit outstanding amount | 10.3 | |
Available funds | $ 339.7 | $ 355.7 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 4.50% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 6.50% |
Debt - Narrative (Details)
Debt - Narrative (Details) - Citibank, N.A. | Sep. 28, 2018USD ($) |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility borrowing capacity | $ 400,000,000 |
Credit facility optional increase limit | 600,000,000 |
Letter of Credit | |
Debt Instrument [Line Items] | |
Credit facility borrowing capacity | $ 50,000,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 05, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 3.40 | ||
Unrecognized compensation cost related to unvested stock options | $ 4.1 | ||
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 3 months 2 days | ||
Cliff Vesting Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 2 years 2 days | ||
Unrecognized compensation cost | $ 5.5 | ||
Livent Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 6,290,000 | 2,000,000 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Compensation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock compensation expense | $ 1 |
Compensation expense taxes | 0.2 |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock compensation expense | 0.4 |
Compensation expense taxes | 0.1 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock compensation expense | 0.6 |
Compensation expense taxes | $ 0.1 |
Stock-based Compensation - Blac
Stock-based Compensation - Black Scholes Assumptions (Details) - Stock Option | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0.00% |
Expected volatility | 20.07% |
Expected life (in years) | 6 years 6 months |
Risk-free interest rate | 2.55% |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Number of Options Granted But Not Exercised | ||
Options outstanding, beginning balance (in shares) | 716,256 | |
Options granted (in shares) | 48,804 | |
Converted FMC awards (in shares) | 946,161 | |
Options outstanding, ending balance (in shares) | 1,711,221 | 716,256 |
Options exercisable (in shares) | 474,781 | |
Weighted-Average Remaining Contractual Life (in Years) | ||
Options outstanding, weighted average remaining contractual life | 8 years 2 days | 9 years 9 months 2 days |
Options exercisable, weighted average remaining contractual term | 5 years 2 months 2 days | |
Weighted-Average Exercise Price Per Share | ||
Options outstanding, weighted average exercise price, beginning balance (in dollars per share) | $ 16.99 | |
Options granted, weighted average exercise price (in dollars per share) | 12.48 | $ 16.99 |
Options outstanding, weighted average exercise price, ending balance (in dollars per share) | 12.50 | $ 16.99 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 8.36 | |
Aggregate Intrinsic Value (in Millions) | ||
Options outstanding, intrinsic value | $ 3 | $ 0 |
Options granted, intrinsic value | ||
Options exercisable, intrinsic value | $ 1.9 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of awards | |
Nonvested awards outstanding, beginning balance (in shares) | shares | 249,786 |
Awards granted (in shares) | shares | 51,029 |
Converted FMC awards (in shares) | shares | 311,387 |
Nonvested awards outstanding, ending balance (in shares) | shares | 612,202 |
Weighted-Average Grant Date Fair Value | |
Nonvested awards outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 16.94 |
Awards granted, weighted average grant date fair value (in dollars per share) | $ / shares | 12.81 |
Converted FMC awards, weighted average grant date fair value (in dollars per share) | $ / shares | |
Nonvested awards outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 12.93 |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2019shares | |
Capital Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 146,000,000 |
Stock issued during period (in shares) | 1,331 |
Ending balance (in shares) | 146,001,331 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 487,900,000 | $ 385,400,000 |
Other comprehensive loss before reclassifications | 1,300,000 | 2,500,000 |
Amounts reclassified from accumulated other comprehensive income | 400,000 | |
Ending balance | 506,900,000 | 432,500,000 |
Foreign currency adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (48,000,000) | (45,600,000) |
Other comprehensive loss before reclassifications | 1,000,000 | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Ending balance | (47,000,000) | (43,100,000) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,200,000) | |
Other comprehensive loss before reclassifications | 300,000 | |
Amounts reclassified from accumulated other comprehensive income | 400,000 | |
Ending balance | (1,300,000) | |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (49,200,000) | (45,600,000) |
Other comprehensive loss before reclassifications | 2,500,000 | |
Ending balance | $ (48,300,000) | $ (43,100,000) |
Equity - Reclassification Out o
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales and services | $ 65,600,000 | $ 50,600,000 |
Total before tax | 21,000,000 | 40,200,000 |
Net income | 16,900,000 | 32,200,000 |
Provision for income taxes | 4,100,000 | 8,000,000 |
Amount Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 400,000 | |
Net income | 400,000 | $ 0 |
Provision for income taxes | 100,000 | |
Foreign Exchange Contracts | Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales and services | $ (400,000) |
Equity - Additional Information
Equity - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Equity [Abstract] | |
Dividends paid | $ 0 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | Mar. 01, 2019 | Nov. 13, 2018 | Oct. 15, 2018 | Oct. 01, 2018 | Nov. 13, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
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) | $ 12.48 | $ 16.99 | ||||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 500,000 | 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) | 500,000 | |||||||
Pro Forma | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Common stock, outstanding (in shares) | 123,000,000 | |||||||
IPO | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued (in shares) | 123,000,000 | 20,000,000 | 123,000,000 | 23,000,000 | ||||
Sale of stock, price per share (in dollars per share) | $ 17 | |||||||
Over-allotment Option Exercise | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Sale of stock, number of shares issued (in shares) | 3,000,000 |
Earnings Per Share - EPS Calcul
Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Numerator: | |||
Net income | $ 16.9 | $ 32.2 | |
Denominator (in thousands): | |||
Weighted average common shares outstanding - basic (in shares) | [1] | 146 | 123 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0.5 | 0 | |
Weighted average common shares outstanding – diluted (in shares) | [1] | 146.5 | 123 |
Basic earnings per common share: | |||
Net income per weighted average share - basic (in dollars per share) | $ 0.12 | $ 0.26 | |
Diluted earnings per common share: | |||
Net income per weighted average share - diluted (in dollars per share) | $ 0.12 | $ 0.26 | |
[1] | For the prior period presented, the weighted average shares outstanding for both basic and diluted earnings per share was 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 the prior period 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 1 for further details. |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Estimated fair value of debt | $ 50 | $ 34 |
Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 71.3 | |
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 | (1.3) | |
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 | 53.7 | |
Cash Flow Hedging | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 1.3 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value Derivative Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives | ||
Gross amounts of derivative assets | $ 0.4 | |
Gross amounts of derivative liabilities | (1.8) | $ (1.3) |
Net derivative liabilities | (1.4) | (1.3) |
Foreign Exchange Contracts | ||
Derivatives | ||
Gross amounts of derivative assets | 0.4 | |
Gross amounts of derivative liabilities | $ (1.8) | $ (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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 487.9 | $ 385.4 |
Unrealized hedging gains, net of tax | 1.3 | 2.5 |
Reclassification of deferred hedging gains, net of tax | 0.4 | |
Other comprehensive income, net of tax | 0.9 | 2.5 |
Ending balance | 506.9 | $ 432.5 |
Foreign Exchange Contracts | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1.2) | |
Unrealized hedging gains, net of tax | 0.3 | |
Reclassification of deferred hedging gains, net of tax | 0.4 | |
Other comprehensive income, net of tax | (0.1) | |
Ending balance | $ (1.3) |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Derivative [Line Items] | |
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.1) |
Foreign Exchange contracts | Cost of Sales and Services | |
Derivative [Line Items] | |
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.1) |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Total Assets | $ 0.4 | |
Liabilities | ||
Total Liabilities | 1.8 | $ 1.3 |
Foreign Exchange Contracts | ||
Assets | ||
Derivatives - Foreign exchange | 0.4 | |
Liabilities | ||
Derivatives - Foreign exchange | 1.8 | 1.3 |
Level 1 | ||
Assets | ||
Total Assets | 0 | |
Liabilities | ||
Total Liabilities | 0 | 0 |
Level 1 | Foreign Exchange Contracts | ||
Assets | ||
Derivatives - Foreign exchange | 0 | |
Liabilities | ||
Derivatives - Foreign exchange | 0 | 0 |
Level 2 | ||
Assets | ||
Total Assets | 0.4 | |
Liabilities | ||
Total Liabilities | 1.8 | 1.3 |
Level 2 | Foreign Exchange Contracts | ||
Assets | ||
Derivatives - Foreign exchange | 0.4 | |
Liabilities | ||
Derivatives - Foreign exchange | 1.8 | 1.3 |
Level 3 | ||
Assets | ||
Total Assets | 0 | |
Liabilities | ||
Total Liabilities | 0 | 0 |
Level 3 | Foreign Exchange Contracts | ||
Assets | ||
Derivatives - Foreign exchange | 0 | |
Liabilities | ||
Derivatives - Foreign exchange | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 1.7 | |
2020 | 1.9 | |
2021 | 1.8 | |
2022 | 1.7 | |
2023 | 1.6 | |
Thereafter | $ 10.2 | |
Minimum | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remaining lease term | 2 years | |
Maximum | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remaining lease term | 15 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lease Cost | |
Operating lease cost | $ 0.5 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 0.4 |
Weighted-average remaining lease term - operating leases | 12 years 8 months |
Weighted-average discount rate - operating leases | 4.39% |
Variable lease cost | $ 0.1 |
Sublease income | $ 0.1 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Undiscounted cash flows | |
2019 (excluding the three months ended March 31, 2019) | $ 1.1 |
2020 | 1.8 |
2021 | 1.8 |
2022 | 1.8 |
2023 | 1.6 |
Thereafter | 12.9 |
Total future minimum lease payments | 21 |
Less: Imputed interest | (5.2) |
Total | $ 15.8 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Argentina government receivable | $ 11.4 | $ 8.8 |
Tax related items | 5.5 | 4.1 |
Other receivables | 5.3 | 6.2 |
Prepaid expenses | 5.5 | 8.4 |
Bank Acceptance Drafts | 23.2 | 29.1 |
Other current assets | 5.6 | 3.2 |
Total | $ 56.5 | $ 59.8 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other assets | ||
Argentina government receivable | $ 42.8 | $ 41.5 |
Advance to contract manufacturers | 15.7 | 15.3 |
Capitalized software, net | 1.3 | 1.4 |
Prepayment associated with long-term supply agreements | 10 | 10 |
Tax related items | 5.6 | 6.2 |
Other assets | 6 | 5.6 |
Total | 81.4 | 80 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred asset | 3.2 | 2.6 |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 38 | $ 38 |
Supplemental Information - Accr
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued and other current liabilities | ||
Restructuring reserves | $ 3.5 | $ 3.6 |
Due to parent - FMC | 0.5 | 23.8 |
Accrued payroll | 3.5 | 8.5 |
Derivative liabilities | 1.4 | 1.3 |
Environmental reserves, current | 0.5 | 0.5 |
Other accrued and other current liabilities | 4 | 9.1 |
Total | $ 13.4 | 46.8 |
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 | |
Livent shared service costs | ||
Accrued and other current liabilities | ||
Due to parent - FMC | $ 4.6 |
Supplemental Information - Ot_2
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Other long-term liabilities | |||
Asset retirement obligations | $ 0.2 | $ 0.2 | |
Contingencies related to uncertain tax positions | 6 | 6 | |
Self-insurance reserves | 2.4 | 2.4 | |
Other long-term liabilities | 0.8 | 0.7 | |
Total | 9.4 | $ 9.3 | |
TMA Agreement, Uncertain Tax Positions | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | $ 3.1 | ||
TMA Agreement, Indemnification Liability | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | $ 2.9 |
Uncategorized Items - lthm-2019
Label | Element | Value | |
AOCI Attributable to Parent [Member] | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent | $ 1,000,000 | [1] |
[1] | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries since it is our intention that such earnings will remain invested in those subsidiaries indefinitely. |