Cover page
Cover page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-38694 |
Entity Registrant Name | LIVENT CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 82-4699376 |
Entity Address, Address Line One | 2929 Walnut Street |
Entity Address, City or Town | Philadelphia |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19104 |
City Area Code | 215 |
Local Phone Number | 299-6000 |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | LTHM |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 146,190,054 |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 68.5 | $ 98.3 |
Cost of sales | 53.9 | 65.6 |
Gross margin | 14.6 | 32.7 |
Selling, general and administrative expenses | 10.8 | 9.2 |
Research and development expenses | 1 | 0.8 |
Restructuring and other charges | 4.8 | 0.1 |
Separation-related costs | 0.1 | 1.6 |
Total costs and expenses | 70.6 | 77.3 |
(Loss)/income from operations before equity in net loss of unconsolidated affiliate and income taxes | (2.1) | 21 |
Equity in net loss of unconsolidated affiliate | (0.1) | 0 |
(Loss)/income from operations before income taxes | (2.2) | 21 |
Income tax (benefit)/expense | (0.3) | 4.1 |
Net (loss)/income | $ (1.9) | $ 16.9 |
Net (loss)/income per weighted average share - basic (in dollars per share) | $ (0.01) | $ 0.12 |
Net (loss)/income per weighted average share - diluted (in dollars per share) | $ (0.01) | $ 0.12 |
Weighted average common shares outstanding - basic (in shares) | 146.1 | 146 |
Weighted average common shares outstanding - diluted (in shares) | 146.1 | 146.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net (loss)/income | $ (1.9) | $ 16.9 | |
Foreign currency adjustments: | |||
Foreign currency translation gain arising during the period | (1.8) | 1 | |
Total foreign currency translation adjustments | [1] | (1.8) | 1 |
Derivative instruments: | |||
Unrealized hedging gains, net of tax of zero and less than $0.1 for the three months ended March 31, 2020 and 2019, respectively | 0 | ||
Reclassification of deferred hedging gains included in net income, net of tax of zero and less than $0.1 for the three months ended March 31, 2020 and 2019, respectively | 0 | ||
Total derivative instruments loss, net of tax of zero and less than $0.1 for the three months ended March 31, 2020 and 2019, respectively | 0 | (0.1) | |
Other comprehensive (loss)/income, net of tax | (1.8) | 0.9 | |
Comprehensive (loss)/income | $ (3.7) | $ 17.8 | |
[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_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized hedging gains, tax | $ 0 | $ 0.1 |
Reclassification of deferred hedging gains included in net income, tax | 0 | 0.1 |
Total derivative instruments loss, tax | $ 0 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 11.4 | $ 16.8 |
Trade receivables, net of allowance of $0.3 in 2020 and $0.3 in 2019 | 56.5 | 90 |
Inventories, net | 120.9 | 113.4 |
Prepaid and other current assets | 50.7 | 51.8 |
Total current assets | 239.5 | 272 |
Investments | 2.2 | 2.2 |
Property, plant and equipment, net of accumulated depreciation $204.4 in 2020 and $202.2 in 2019 | 507.1 | 468.8 |
Deferred income taxes | 7.8 | 8.2 |
Right of use assets - operating leases, net | 15.2 | 16.9 |
Other assets | 96.9 | 91.5 |
Total assets | 868.7 | 859.6 |
Current liabilities | ||
Accounts payable, trade and other | 42.9 | 83.1 |
Accrued and other current liabilities | 33.8 | 36.4 |
Operating lease liabilities - current | 1.9 | 2.1 |
Income taxes | 0.1 | 0.9 |
Total current liabilities | 78.7 | 122.5 |
Long-term debt | 211.1 | 154.6 |
Operating lease liabilities - long-term | 13.8 | 15.4 |
Environmental liabilities | 6.4 | 6.4 |
Deferred income taxes | 6.4 | 6.7 |
Other long-term liabilities | 11.5 | 10 |
Commitments and contingent liabilities (Note 12) | ||
Total current and long-term liabilities | 327.9 | 315.6 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized in 2018; 146,296,962 and 146,085,696 shares issued; 146,190,054 and 145,981,684 outstanding at March 31, 2020 and December 31, 2019, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 516.9 | 516.4 |
Retained earnings | 74.7 | 76.6 |
Accumulated other comprehensive loss | (50.1) | (48.3) |
Treasury stock, common; 106,908 and 104,012 shares at March 31, 2020 and December 31, 2019, respectively | (0.8) | (0.8) |
Total equity | 540.8 | 544 |
Total liabilities and equity | $ 868.7 | $ 859.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | |||
Allowance for trade receivables | $ 0.3 | $ 0.3 | |
Accumulated depreciation | $ 204.4 | $ 202.2 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 146,296,962 | 146,085,696 | |
Common stock, outstanding (in shares) | 146,190,054 | 145,981,684 | |
Treasury stock, at cost (in shares) | 106,908 | 104,012 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash required by operating activities: | |||
Net (loss)/income | $ (1.9) | $ 16.9 | |
Adjustments to reconcile net (loss)/income to cash required by operating activities: | |||
Depreciation and amortization | 5.6 | 4.9 | |
Restructuring and other charges | 2.4 | 0.1 | |
Deferred income taxes | 0 | 2.6 | |
Separation related | (0.1) | 0 | |
Share-based compensation | 1 | 1.2 | |
Change in investments in trust fund securities | (0.3) | 0 | |
Equity in net loss of unconsolidated affiliate | 0.1 | 0 | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 33 | 27.3 | |
Inventories | (8.9) | (11.3) | |
Accounts payable, trade and other | (40.2) | (10.6) | |
Change in deferred compensation | 0.4 | 0 | |
Income taxes | (0.8) | 0.6 | |
Change in prepaid and other current assets and other assets | (2.7) | 2.7 | |
Change in accrued and other current liabilities and other long-term liabilities | 7 | (35.8) | |
Cash required by operating activities | (5.4) | (1.4) | |
Cash required by investing activities: | |||
Capital expenditures | [1] | (56) | (24.3) |
Investments in trust fund securities | (0.3) | 0 | |
Other investing activities | 0 | (1) | |
Cash required by investing activities | (56.3) | (25.3) | |
Cash provided by financing activities: | |||
Proceeds from issuance of long-term debt | 95.5 | 73 | |
Repayments of long-term debt | (39) | (57) | |
Payments of financing fees | 0 | (0.1) | |
Cash provided by financing activities | 56.5 | 15.9 | |
Effect of exchange rate changes on cash and cash equivalents | (0.2) | 0.3 | |
Decrease in cash and cash equivalents | (5.4) | (10.5) | |
Cash and cash equivalents, beginning of period | 16.8 | 28.3 | |
Cash and cash equivalents, end of period | 11.4 | 17.8 | |
Supplemental Disclosure for Cash Flow: | |||
Cash payments for income taxes, net of refunds | [2] | (0.3) | 17 |
Cash payments for interest, net | [1] | 2.2 | 0.6 |
Cash payments for Restructuring and other charges | 2.4 | 0 | |
Payments For Separation Related Charges | [3] | 0.2 | 6.2 |
Accrued capital expenditures | 23.5 | 3.6 | |
Operating lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842 | $ 0.8 | $ 16.1 | |
[1] | All of the interest related to our Revolving Credit Facility was capitalized for the three months ended March 31, 2020 and 2019 . | ||
[2] | Three months ended March 31, 2020 includes $1.9 million refund from FMC related to the Company's 2018 federal income tax return. 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. | ||
[3] | Three months ended March 31, 2019 includes $4.6 million paid to FMC related to the Separation steps. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
2018 Federal Income Tax Return | ||
Refund from (payment to) to parent - FMC | $ 1.9 | |
Transaction Services Agreement, Income Taxes Payable | ||
Refund from (payment to) to parent - FMC | $ (16.9) | |
Separation Steps | ||
Refund from (payment to) to parent - FMC | $ (4.6) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock, $0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance at Dec. 31, 2018 | $ 489.6 | $ 0.1 | $ 512.3 | $ 26.4 | $ (49.2) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss)/income | 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] | 1 | ||||
Ending balance at Mar. 31, 2019 | 508.6 | 0.1 | 513.5 | 43.3 | (48.3) | 0 | |
Beginning balance at Dec. 31, 2019 | 544 | 0.1 | 516.4 | 76.6 | (48.3) | (0.8) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss)/income | (1.9) | ||||||
Stock compensation plans | 1.2 | 1.2 | |||||
Net hedging losses, net of income tax | 0 | ||||||
Shares withheld for taxes - common stock issuances | (0.7) | (0.7) | |||||
Foreign currency translation adjustments | (1.8) | [1] | (1.8) | ||||
Ending balance at Mar. 31, 2020 | $ 540.8 | $ 0.1 | $ 516.9 | $ 74.7 | $ (50.1) | $ (0.8) | |
[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, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations Livent Corporation (“Livent”, “we”, “us”, "company" or “our”) manufactures lithium for use in a wide range of lithium products, which are used primarily in lithium-based batteries, 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 and Distribution 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 (the "Separation Date"), 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 123 million shares of our common stock. On March 1, 2019, FMC completed the 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”). Effective upon completion of the Distribution, we became an independent company and FMC no longer owns any shares of Livent common stock. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 , the condensed consolidated results of operations for the three months ended March 31, 2020 and 2019 , and the condensed consolidated cash flows for the three months ended March 31, 2020 and 2019 . 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, 2019 (the " 2019 Annual Report on Form 10-K"). The income tax amounts in the unaudited condensed consolidated financial statements for the three months ended March 31, 2019 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. From the Separation Date onwards, we have filed and will continue to file as an independent public company. Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Due to the current coronavirus ("COVID-19") pandemic, there has been uncertainty and disruption in the global economy and financial markets. The estimates used for, but not limited to, the collectability of trade receivables, fair value of long-lived assets, income taxes, inventory valuation and fair value of financial instruments could be impacted. We have assessed the impact and are not aware of any specific events or circumstances that required an update to our estimates and assumptions or materially affected the carrying value of our assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. 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 2019 |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 3 Months Ended |
Mar. 31, 2020 | |
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 April 2020, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). T he amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principle in Topic 740. The amendments also contain improvements and clarifications of certain guidance in Topic 740. The new amendments are effective for fiscal years beginning after December 15, 2020 (i.e. a January 1, 2021 effective date), with early adoption permitted. We believe the adoption will not have a material impact on our condensed consolidated financial statements. Recently adopted accounting guidance In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11") . The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 326. The Company adopted the provisions of ASU 2019-11 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In March 2019, FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification ("ASU 2019-01") . The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The Company adopted the provision of ASU 2019-01 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ("ASU 2019-04") . The amendments in this ASU affect a variety of Topics in the Codification and represent changes to clarify, correct errors in, or improve the Codification. Subsequently, in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, ("ASU 2019-05") . The amendments in this ASU provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The Company adopted the provisions of ASU 2019-04 and ASU 2019-05 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) . The amendments in ASU 2018-13 remove the disclosure requirements related to transfers between Level 1 and Level 2 and the valuation processes for Level 3 measurements in Topic 820. Additional disclosures under this Topic are related to Level 3 fair value measurements related to changes in unrealized gains and losses and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted the provisions of ASU 2018-13 on January 1, 2020; the adoption did not have a material impact 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 Company adopted the provisions of ASU 2016-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 North America (1) $ 14.8 $ 15.8 Latin America 0.1 0.7 Europe, Middle East & Africa 11.3 15.3 Asia Pacific (1) 42.3 66.5 Total Revenue $ 68.5 $ 98.3 (1) During the three months ended March 31, 2020 , 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, 2020 for Japan and the U.S. totaled $31.1 million and $14.6 million , respectively. 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. For the three months ended March 31, 2020 , one customer accounted for approximately 39% of total revenue and our 10 largest customers accounted in aggregate for approximately 66% of revenue. 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. 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, 2020 2019 Lithium Hydroxide $ 37.7 $ 56.9 Butyllithium 21.5 26.9 High Purity Lithium Metal and Other Specialty Compounds 8.0 13.0 Lithium Carbonate and Lithium Chloride 1.3 1.5 Total Revenue $ 68.5 $ 98.3 Our lithium products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and 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, 2020 and December 31, 2019 , there were no contract liabilities from contract with customers. (in Millions) Balance as of March 31, 2020 Balance as of December 31, 2019 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 56.5 $ 90.0 $ (33.5 ) 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 $36 million for the remainder of 2020 |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: (in Millions) March 31, 2020 December 31, 2019 Finished goods $ 49.8 $ 45.3 Semi-finished goods 45.6 48.8 Raw materials, supplies and other 25.5 19.3 Inventory, net $ 120.9 $ 113.4 |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2020 2019 Restructuring charges Severance-related and exit costs (1) $ 4.4 $ — Other charges Environmental remediation (2) 0.1 0.1 Other (3) 0.3 — Total other charges $ 4.8 $ 0.1 ___________________ (1) Includes severance costs for management changes at certain operating and administrative facilities and accrued exit costs of $1.0 million for the closing of leased office space. (2) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. (3) Includes legal fees of $0.3 million related to IPO securities litigation incurred in 2020. See Note 12 for more details. Roll forward of plant restructuring reserve 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 a roll forward of restructuring reserve that will result in cash spending. Cash payments were less than $0.1 million for the three months ended March 31, 2020. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (1) Balance December 31, 2018 $ 3.6 Cash payments (0.3 ) Balance December 31, 2019 $ 3.3 Balance March 31, 2020 $ 3.3 ____________________ (1) |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
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. Provision for income taxes for the three months ended March 31, 2020 was a benefit of $(0.3) million resulting in an effective tax rate of 13.6% . 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% . On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The CARES Act makes the following changes to the U.S. tax code that will affect our 2019 and 2020 taxes, including, but not limited to, (1) temporary modification of the adjusted taxable income limitation under Section 163(j) from 30% to 50% for tax years 2019 and 2020 only; (2) modification to the net operating loss rules surrounding the ability to now carryback five years net operating losses generated in 2018, 2019, and 2020; (3) temporary repeal of the net operating loss taxable income limitation of 80%; and (4) temporary enhancement of corporate charitable contribution limitation to 25% of taxable income for tax year 2020 only. The CARES Act did not have a material impact on the Company's condensed consolidated financial statements. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: March 31, 2020 Interest Rate Percentage Maturity Date March 31, 2020 December 31, 2019 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 3.0% 4.3% 2023 $ 211.1 $ 154.6 Total long-term debt (2) $ 211.1 $ 154.6 ______________________________ (1) As of March 31, 2020 and December 31, 2019 , there were $11.0 million in letters of credit outstanding under our Revolving Credit Facility and $177.9 million and $234.4 million available funds as of March 31, 2020 and December 31, 2019 , respectively. Fund availability is subject to the Company meeting its debt covenants. (2) As of March 31, 2020 and December 31, 2019 , 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 "Guarantors"), the lenders party thereto (the “Lenders”), Citibank, N.A., as administrative agent (the "Agent"), and certain other financial institutions party thereto, as joint lead arrangers (the “Original Credit Agreement”, as amended by the First Amendment (as defined below), 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. On May 6, 2020 , we entered into the First Amendment to the Credit Agreement (the "First Amendment") with FMC Lithium USA Corp., the Guarantors, the Lenders and the Agent. Among other things, the First Amendment amended and restated the Original Credit Agreement to (i) increase our maximum net leverage ratio for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 from 3.5 to 6.0 , (ii) put a cap of $325 million on our overall borrowings under the Revolving Credit Facility until March 31, 2021, (iii) amend our negative covenant on indebtedness to permit unsecured indebtedness (including convertible debt) up to $350 million , (iv) amend our negative covenants on investments to permit additional investments in Minera del Altiplano S.A., our Argentine subsidiary, (v) restrict our ability to declare or pay cash dividends until March 31, 2021 and (vi) increase the applicable margin on our borrowings by 25 basis points, in each case as described in the First Amendment. The foregoing description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the First Amendment, including the amended and restated Credit Agreement attached thereto, which is filed as Exhibit 10.1 to this Quarterly Report on Form 10-Q. See Note 10, Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information about the credit agreement. Covenants The Credit Agreement contains certain affirmative and negative covenants that are binding on the Borrowers and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Under the covenants, our maximum allowable net leverage ratio is 3.5 for the fiscal quarter ended March 31, 2020, 6.0 for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 and 3.5 for each fiscal quarter ending thereafter. Our minimum allowable interest coverage ratio is 3.5 . We were in compliance with all requirements of the covenants at March 31, 2020 . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity As of March 31, 2020 and December 31, 2019 , we had 2 billion shares of common stock authorized. The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance at December 31, 2019 146,085,696 (104,012 ) 145,981,684 Adjusted FMC RSU awards (1) 108,587 — 108,587 Livent RSU awards 93,388 — 93,388 Livent stock option awards 9,291 — 9,291 Purchases of treasury stock - deferred compensation plan — (2,896 ) (2,896 ) Balance at March 31, 2020 146,296,962 (106,908 ) 146,190,054 (1) See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K 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 Total Accumulated other comprehensive loss, net of tax at December 31, 2019 $ (48.3 ) $ (48.3 ) Other comprehensive loss before reclassifications (1.8 ) (1.8 ) Accumulated other comprehensive loss, net of tax at March 31, 2020 $ (50.1 ) $ (50.1 ) (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 ) Other comprehensive income before reclassifications 1.0 0.3 1.3 Amounts reclassified from accumulated other comprehensive loss — (0.4 ) (0.4 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (47.0 ) $ (1.3 ) $ (48.3 ) (1) See Note 11 for more information. Reclassifications of accumulated other comprehensive loss The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of operations for the period presented. No amounts were reclassified from Accumulated other comprehensive loss for the three months ended March 31, 2020. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Condensed Consolidated 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 (1) (0.4 ) Total reclassifications for the period $ (0.4 ) Amount included in net income (1) 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, 2020 and 2019 , we paid no |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (Loss)/Earnings Per Share (Loss)/earnings per common share ("EPS") is computed by dividing net (loss)/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 ("RSU") granted in connection with the Livent Plan and FMC Plan. See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information. Diluted (loss)/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. (Loss)/earnings applicable to common stock and common stock shares used in the calculation of basic and diluted (loss)/earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2020 2019 Numerator: Net (loss)/income $ (1.9 ) $ 16.9 Denominator: Weighted average common shares outstanding - basic 146.1 146.0 Incremental weighted average common shares - FMC Plan — 0.5 Weighted average common shares outstanding - diluted 146.1 146.5 Basic (loss)/earnings per common share: Net (loss)/income per weighted average share - basic $ (0.01 ) $ 0.12 Diluted (loss)/earnings per common share: Net (loss)/income per weighted average share - diluted $ (0.01 ) $ 0.12 Anti-dilutive stock options For the three months ended March 31, 2020 and 2019 , options to purchase 1,558,912 and 716,256 shares of our common stock at an average exercise price of $13.23 and $16.99 per share, respectively, were anti-dilutive and not included in the computation of diluted (loss)/earnings per share because the exercise price of the options was greater than the average market price of the common stock for the three months ended March 31, 2020 and 2019 |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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, investments held in trust fund, accounts payable, and amounts included in investments and accruals meeting the definition of financial instruments. Investments in the Livent NQSP deferred compensation plan trust fund are considered Level 1 investments based on readily available quoted prices in active markets for identical assets. The carrying value of cash and cash equivalents, trade receivables, other current assets, and accounts payable approximates their fair value and are considered Level 1 investments. 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. The estimated fair value of our foreign exchange forward contracts 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 $211.1 million and $154.6 million as of March 31, 2020 and December 31, 2019 , 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. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. 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. 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, 2020 , we did not have any open derivative cash flow hedge contacts. 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 $49.9 million at March 31, 2020 . Fair Value of Derivative Instruments The Company had no open derivative cash flow hedge contracts in the condensed consolidated balance sheets as of March 31, 2020 and December 31, 2019 . The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. For the three months ended March 31, 2020 , we did not have any open derivative cash flow hedge contacts. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (1.2 ) Unrealized hedging gains, net of tax 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.4 ) Total derivative instrument impact on comprehensive income, net of tax (0.1 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (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 March 31, (in Millions) 2020 2019 Foreign Exchange contracts Cost of Sales and Services $ 0.9 $ 0.1 Total $ 0.9 $ 0.1 ____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 1.6 $ 1.6 $ — $ — Total Assets $ 1.6 $ 1.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 2.2 $ 2.2 $ — $ — Total Liabilities $ 2.2 $ 2.2 $ — $ — (in Millions) December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 1.6 $ 1.6 $ — $ — Total Assets $ 1.6 $ 1.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 2.5 $ 2.5 $ — $ — Total Liabilities $ 2.5 $ 2.5 $ — $ — ____________________ (1) Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market gain of $0.3 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations for the three months ended March 31, 2020 , with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. (2) Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are a party to various legal proceedings, including those noted in this section. Livent records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred. In addition to the legal proceedings noted below, 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 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. 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. IPO Securities Litigation Beginning on May 13, 2019, purported stockholders of the Company filed putative class action complaints in the Pennsylvania Court of Common Pleas, Philadelphia County, and in the U.S. District Court for the Eastern District of Pennsylvania, in connection with the Company’s October 2018 IPO. On August 20, 2019, the actions then pending in federal court were consolidated under the caption, Nikolov v. Livent Corp., et al., No. 19-cv-02218. In an order entered on September 23, 2019, the actions then pending in state court were consolidated under the caption, In re Livent Corporation Securities Litigation, No. 2019-0501229. The operative complaints in both the state and federal actions assert claims against the Company and certain of its current and former executives and directors in connection with the Company’s October 2018 IPO. The actions also name as defendants the underwriters in the IPO and FMC Corporation, whom the Company is generally obligated to indemnify. The complaints allege generally that the offering documents for the IPO failed to adequately disclose certain information related to the Company’s business and prospects, in purported violation of Sections 11, 12(a)(2), and/or 15 of the Securities Act. The complaints seek unspecified damages and other relief on behalf of all persons and entities who purchased or otherwise acquired Livent common stock pursuant and/or traceable to the IPO offering documents. On October 11, 2019, defendants moved to dismiss the state action in its entirety, and on November 18, 2019, defendants moved to dismiss the federal action in its entirety. Briefing on the motions is complete, but the courts have not yet ruled. Pursuant to an order of the state court dated October 22, 2019, discovery in the state action is stayed pending further order of the Court. By operation of the Private Securities Litigation Reform Act, discovery in the federal action is stayed pending a ruling on defendants’ motion to dismiss that action. At this point, a range of reasonably possible losses, if any, cannot be estimated by the Company. 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. Due to significant delays, 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 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 had the right to terminate the Agreement. After receiving Nemaska’s termination notice, we resumed our previously suspended arbitration to pursue our claims. On December 22, 2019, Nemaska and certain affiliates filed for creditor protection under the Companies’ Creditors Arrangement Act in the Superior Court of Québec. By order of the Superior Court of Québec, the arbitration has been stayed until further order of the court. If and when the arbitration resumes, there can be no assurance that we will prevail in the arbitration or that Livent will ever receive supply from Nemaska. Leases All of our leases are operating leases as of March 31, 2020 and 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. Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2020 2019 Lease Cost Operating lease cost (1) $ 0.6 $ 0.5 Short-term lease cost (2) 0.2 — Total lease cost (1) $ 0.8 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.6 $ 0.4 _______________________________ (1) Variable lease cost and sublease income for the three months ended March 31, 2020 and 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. (2) Short-term lease cost for the three months ended March 31, 2019 was less than $0.1 million . As of March 31, 2020 and December 31, 2019 , our operating leases had a weighted average remaining lease term of 11.7 years and 11.4 years, respectively. As of March 31, 2020 and December 31, 2019 , our operating leases had a weighted average discount rate of 4.4% . 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 2020 (excluding the three months ended March 31, 2020) $ 1.4 2021 1.9 2022 1.8 2023 1.7 2024 1.6 Thereafter 11.7 Total future minimum lease payments 20.1 Less: Imputed interest (4.4 ) Total $ 15.7 |
Supplemental Information
Supplemental Information | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Prepaid and other current assets Argentina government receivable (1) $ 8.6 $ 7.8 Tax related items 16.1 14.1 Other receivables 10.6 9.9 Prepaid expenses 8.4 9.2 Bank Acceptance Drafts (2) 2.7 7.4 Other current assets 4.3 3.4 Total $ 50.7 $ 51.8 (in Millions) March 31, 2020 December 31, 2019 Other assets Argentina government receivable (1) $ 58.0 $ 55.0 Advance to contract manufacturers (3) 15.5 15.9 Capitalized software, net 1.8 1.1 Prepayment associated with long-term supply agreement (4) 10.0 10.0 Tax related items (5) 5.2 3.6 Other assets 6.4 5.9 Total $ 96.9 $ 91.5 ____________________ (1) We have various subsidiaries that conduct business in Argentina. At March 31, 2020 and December 31, 2019 , $39.1 million and $38.0 million , respectively, 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) See Note 12 for further discussion about Nemaska arrangement. (5) Represents an offsetting non-current deferred asset of $3.9 million relating to specific uncertain tax positions and other tax related items. (in Millions) March 31, 2020 December 31, 2019 Accrued and other current liabilities Restructuring reserves $ 3.3 $ 3.3 Retirement liability - 401K 0.6 2.7 Accrued payroll 6.0 6.7 Severance related 1.7 — Environmental reserves, current 0.5 0.5 Other accrued and other current liabilities (1) 21.7 23.2 Total $ 33.8 $ 36.4 (in Millions) March 31, 2020 December 31, 2019 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 5.9 4.1 Deferred compensation plan obligation 2.2 2.5 Self-insurance reserves 1.9 1.9 Other long-term liabilities 1.3 1.3 Total $ 11.5 $ 10.0 ____________________ (1) Amounts include accrued capital expenditures related to our expansion projects. (2) At March 31, 2020 , we have recorded a liability for uncertain tax positions of $4.4 million and a $1.5 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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Subsequent Events </font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Amendment to our Revolving Credit Facility</font></div><div style="line-height:120%;padding-bottom:4px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On [</font><font style="font-family:inherit;font-size:10pt;background-color:#ffff00;">May&#160;6, 2020</font><font style="font-family:inherit;font-size:10pt;">], we entered into the First Amendment to the Credit Agreement (the &#8220;First Amendment&#8221;) with FMC Lithium USA Corp., the Guarantors, the Lenders and the Agent. Among other things, the First Amendment (i) increases our maximum net leverage ratio for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 from </font><font style="font-family:inherit;font-size:10pt;">3.5</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;">6.0</font><font style="font-family:inherit;font-size:10pt;">, (ii) puts a cap of </font><font style="font-family:inherit;font-size:10pt;">$325 million</font><font style="font-family:inherit;font-size:10pt;"> on our overall borrowings under the Revolving Credit Facility until March 31, 2021, (iii) amends our negative covenant on indebtedness to permit unsecured indebtedness (including convertible debt) up to </font><font style="font-family:inherit;font-size:10pt;">$350 million</font><font style="font-family:inherit;font-size:10pt;"> and (iv) amends our negative covenants on investments to permit additional investments in Minera del Altiplano S.A., our Argentine subsidiary.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The foregoing description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the First Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 10-Q.</font></div></div> |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Guidance and Regulatory Items and Recently Adopted Accounting Guidance | New accounting guidance and regulatory items In April 2020, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). T he amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principle in Topic 740. The amendments also contain improvements and clarifications of certain guidance in Topic 740. The new amendments are effective for fiscal years beginning after December 15, 2020 (i.e. a January 1, 2021 effective date), with early adoption permitted. We believe the adoption will not have a material impact on our condensed consolidated financial statements. Recently adopted accounting guidance In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11") . The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 326. The Company adopted the provisions of ASU 2019-11 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In March 2019, FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification ("ASU 2019-01") . The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The Company adopted the provision of ASU 2019-01 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ("ASU 2019-04") . The amendments in this ASU affect a variety of Topics in the Codification and represent changes to clarify, correct errors in, or improve the Codification. Subsequently, in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, ("ASU 2019-05") . The amendments in this ASU provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The Company adopted the provisions of ASU 2019-04 and ASU 2019-05 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) . The amendments in ASU 2018-13 remove the disclosure requirements related to transfers between Level 1 and Level 2 and the valuation processes for Level 3 measurements in Topic 820. Additional disclosures under this Topic are related to Level 3 fair value measurements related to changes in unrealized gains and losses and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The Company adopted the provisions of ASU 2018-13 on January 1, 2020; the adoption did not have a material impact 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 Company adopted the provisions of ASU 2016-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. |
Revenue Recognition | Our lithium products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and 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 $36 million for the remainder of 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 North America (1) $ 14.8 $ 15.8 Latin America 0.1 0.7 Europe, Middle East & Africa 11.3 15.3 Asia Pacific (1) 42.3 66.5 Total Revenue $ 68.5 $ 98.3 (1) During the three months ended March 31, 2020 , 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, 2020 for Japan and the U.S. totaled $31.1 million and $14.6 million , respectively. 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. The following table provides information about disaggregated revenue by major product category: (in Millions) Three Months Ended March 31, 2020 2019 Lithium Hydroxide $ 37.7 $ 56.9 Butyllithium 21.5 26.9 High Purity Lithium Metal and Other Specialty Compounds 8.0 13.0 Lithium Carbonate and Lithium Chloride 1.3 1.5 Total Revenue $ 68.5 $ 98.3 |
Receivables and Contract Liabilities | The following table presents the opening and closing balances of our receivables, net of allowances. As of March 31, 2020 and December 31, 2019 , there were no contract liabilities from contract with customers. (in Millions) Balance as of March 31, 2020 Balance as of December 31, 2019 Increase (Decrease) Receivables from contracts with customers, net of allowances $ 56.5 $ 90.0 $ (33.5 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in Millions) March 31, 2020 December 31, 2019 Finished goods $ 49.8 $ 45.3 Semi-finished goods 45.6 48.8 Raw materials, supplies and other 25.5 19.3 Inventory, net $ 120.9 $ 113.4 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2020 2019 Restructuring charges Severance-related and exit costs (1) $ 4.4 $ — Other charges Environmental remediation (2) 0.1 0.1 Other (3) 0.3 — Total other charges $ 4.8 $ 0.1 ___________________ (1) Includes severance costs for management changes at certain operating and administrative facilities and accrued exit costs of $1.0 million for the closing of leased office space. (2) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. (3) Includes legal fees of $0.3 million related to IPO securities litigation incurred in 2020. See Note 12 for more details. |
Restructuring Reserve Rollforward | The following table shows a roll forward of restructuring reserve that will result in cash spending. Cash payments were less than $0.1 million for the three months ended March 31, 2020. These amounts exclude asset retirement obligations. (in Millions) Restructuring Reserve Total (1) Balance December 31, 2018 $ 3.6 Cash payments (0.3 ) Balance December 31, 2019 $ 3.3 Balance March 31, 2020 $ 3.3 ____________________ (1) Primarily related to facility shutdowns and other miscellaneous exit costs. Included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt Long-term debt consists of the following: March 31, 2020 Interest Rate Percentage Maturity Date March 31, 2020 December 31, 2019 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 3.0% 4.3% 2023 $ 211.1 $ 154.6 Total long-term debt (2) $ 211.1 $ 154.6 ______________________________ (1) As of March 31, 2020 and December 31, 2019 , there were $11.0 million in letters of credit outstanding under our Revolving Credit Facility and $177.9 million and $234.4 million available funds as of March 31, 2020 and December 31, 2019 , respectively. Fund availability is subject to the Company meeting its debt covenants. (2) As of March 31, 2020 and December 31, 2019 , the Company had no debt maturing within one year. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance at December 31, 2019 146,085,696 (104,012 ) 145,981,684 Adjusted FMC RSU awards (1) 108,587 — 108,587 Livent RSU awards 93,388 — 93,388 Livent stock option awards 9,291 — 9,291 Purchases of treasury stock - deferred compensation plan — (2,896 ) (2,896 ) Balance at March 31, 2020 146,296,962 (106,908 ) 146,190,054 (1) See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K 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 Total Accumulated other comprehensive loss, net of tax at December 31, 2019 $ (48.3 ) $ (48.3 ) Other comprehensive loss before reclassifications (1.8 ) (1.8 ) Accumulated other comprehensive loss, net of tax at March 31, 2020 $ (50.1 ) $ (50.1 ) (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 ) Other comprehensive income before reclassifications 1.0 0.3 1.3 Amounts reclassified from accumulated other comprehensive loss — (0.4 ) (0.4 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (47.0 ) $ (1.3 ) $ (48.3 ) (1) See Note 11 for more information. |
Reclassifications of Accumulated Other Comprehensive Income | The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of operations for the period presented. No amounts were reclassified from Accumulated other comprehensive loss for the three months ended March 31, 2020. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Condensed Consolidated 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 (1) (0.4 ) Total reclassifications for the period $ (0.4 ) Amount included in net income (1) 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, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | arnings applicable to common stock and common stock shares used in the calculation of basic and diluted (loss)/earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2020 2019 Numerator: Net (loss)/income $ (1.9 ) $ 16.9 Denominator: Weighted average common shares outstanding - basic 146.1 146.0 Incremental weighted average common shares - FMC Plan — 0.5 Weighted average common shares outstanding - diluted 146.1 146.5 Basic (loss)/earnings per common share: Net (loss)/income per weighted average share - basic $ (0.01 ) $ 0.12 Diluted (loss)/earnings per common share: Net (loss)/income per weighted average share - diluted $ (0.01 ) $ 0.12 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
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. For the three months ended March 31, 2020 , we did not have any open derivative cash flow hedge contacts. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2018 $ (1.2 ) Unrealized hedging gains, net of tax 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.4 ) Total derivative instrument impact on comprehensive income, net of tax (0.1 ) Accumulated other comprehensive loss, net of tax at March 31, 2019 $ (1.3 ) ____________________ (1) Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations. |
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 March 31, (in Millions) 2020 2019 Foreign Exchange contracts Cost of Sales and Services $ 0.9 $ 0.1 Total $ 0.9 $ 0.1 ____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 1.6 $ 1.6 $ — $ — Total Assets $ 1.6 $ 1.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 2.2 $ 2.2 $ — $ — Total Liabilities $ 2.2 $ 2.2 $ — $ — (in Millions) December 31, 2019 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 1.6 $ 1.6 $ — $ — Total Assets $ 1.6 $ 1.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 2.5 $ 2.5 $ — $ — Total Liabilities $ 2.5 $ 2.5 $ — $ — ____________________ (1) Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market gain of $0.3 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations for the three months ended March 31, 2020 , with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. (2) Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost and Terms | Quantitative disclosures about our leases are summarized in the table below. Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2020 2019 Lease Cost Operating lease cost (1) $ 0.6 $ 0.5 Short-term lease cost (2) 0.2 — Total lease cost (1) $ 0.8 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.6 $ 0.4 _______________________________ (1) Variable lease cost and sublease income for the three months ended March 31, 2020 and 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. (2) Short-term lease cost for the three months ended March 31, 2019 was less than $0.1 million . |
Schedule of Maturity of Operating Lease Liabilities | 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 2020 (excluding the three months ended March 31, 2020) $ 1.4 2021 1.9 2022 1.8 2023 1.7 2024 1.6 Thereafter 11.7 Total future minimum lease payments 20.1 Less: Imputed interest (4.4 ) Total $ 15.7 |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Prepaid and other current assets Argentina government receivable (1) $ 8.6 $ 7.8 Tax related items 16.1 14.1 Other receivables 10.6 9.9 Prepaid expenses 8.4 9.2 Bank Acceptance Drafts (2) 2.7 7.4 Other current assets 4.3 3.4 Total $ 50.7 $ 51.8 (in Millions) March 31, 2020 December 31, 2019 Other assets Argentina government receivable (1) $ 58.0 $ 55.0 Advance to contract manufacturers (3) 15.5 15.9 Capitalized software, net 1.8 1.1 Prepayment associated with long-term supply agreement (4) 10.0 10.0 Tax related items (5) 5.2 3.6 Other assets 6.4 5.9 Total $ 96.9 $ 91.5 ____________________ (1) We have various subsidiaries that conduct business in Argentina. At March 31, 2020 and December 31, 2019 , $39.1 million and $38.0 million , respectively, 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) See Note 12 for further discussion about Nemaska arrangement. (5) Represents an offsetting non-current deferred asset of $3.9 million relating to specific uncertain tax positions and other tax related items. |
Schedule of Accrued and Other Liabilities | (in Millions) March 31, 2020 December 31, 2019 Accrued and other current liabilities Restructuring reserves $ 3.3 $ 3.3 Retirement liability - 401K 0.6 2.7 Accrued payroll 6.0 6.7 Severance related 1.7 — Environmental reserves, current 0.5 0.5 Other accrued and other current liabilities (1) 21.7 23.2 Total $ 33.8 $ 36.4 (in Millions) March 31, 2020 December 31, 2019 Other long-term liabilities Asset retirement obligations $ 0.2 $ 0.2 Contingencies related to uncertain tax positions (2) 5.9 4.1 Deferred compensation plan obligation 2.2 2.5 Self-insurance reserves 1.9 1.9 Other long-term liabilities 1.3 1.3 Total $ 11.5 $ 10.0 ____________________ (1) Amounts include accrued capital expenditures related to our expansion projects. (2) At March 31, 2020 , we have recorded a liability for uncertain tax positions of $4.4 million and a $1.5 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Description of the Business (De
Description of the Business (Details) - shares shares in Millions | Mar. 01, 2019 | Oct. 01, 2018 |
IPO | ||
Class of Stock [Line Items] | ||
Sale of stock, number of shares issued (in shares) | 123 | 123 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 68.5 | $ 98.3 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 14.8 | 15.8 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 0.1 | 0.7 |
Europe, Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 11.3 | 15.3 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 42.3 | 66.5 |
JAPAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 31.1 | 48 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 14.6 | $ 15.8 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
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 | 39.00% | 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 | 66.00% | 64.00% |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 68.5 | $ 98.3 |
Lithium Hydroxide | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 37.7 | 56.9 |
Butyllithium | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 21.5 | 26.9 |
High Purity Lithium Metal and Other Specialty Compounds | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 8 | 13 |
Lithium Carbonate and Lithium Chloride | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 1.3 | $ 1.5 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer, net of allowances | $ 56.5 | $ 90 |
Increase (decrease) in receivables | $ (33.5) |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 36 |
Expected timing of satisfaction of performance obligations | 9 months |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 49.8 | $ 45.3 |
Semi-finished goods | 45.6 | 48.8 |
Raw materials, supplies and other | 25.5 | 19.3 |
Inventory, net | $ 120.9 | $ 113.4 |
Restructuring and Other Charg_3
Restructuring and Other Charges (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)site | Mar. 31, 2019USD ($) | |
Restructuring charges | ||
Severance-related and exit costs | $ 2.4 | $ 0.1 |
Other charges | ||
Environmental remediation | 0.1 | 0.1 |
Other | 0.3 | 0 |
Total other charges | 4.8 | 0.1 |
Exit costs | $ 1 | |
Number of environmental remediation sites | site | 1 | |
Legal fees | $ 0.3 | |
Facility Closing | ||
Restructuring charges | ||
Severance-related and exit costs | $ 4.4 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Restructuring Reserve Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 3.3 | $ 3.6 |
Cash payments | 0.3 | |
Restructuring reserve, ending balance | 3.3 | $ 3.3 |
2017 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Cash payments | $ 0.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $ (0.3) | $ 4.1 |
Effective tax rate | 13.60% | 19.50% |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 211.1 | $ 154.6 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 211.1 | 154.6 |
Letters of credit outstanding amount | 11 | |
Available funds | $ 177.9 | $ 234.4 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 3.00% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 4.30% |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 06, 2020USD ($) | Mar. 31, 2020 | Sep. 28, 2018USD ($) |
Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 400,000,000 | ||
Credit facility optional increase limit | 600,000,000 | ||
Citibank, N.A. | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 50,000,000 | ||
First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 3.5 | ||
Minimum allowable interest coverage ratio | 3.5 | ||
Subsequent Event | First Amendment | |||
Debt Instrument [Line Items] | |||
Maximum unsecured indebtedness | $ 350,000,000 | ||
Increase on applicable margin | 0.25% | ||
Subsequent Event | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity | $ 325,000,000 | ||
Maximum net leverage ratio | 6 | ||
Fiscal Quarter Ending March 31, 2020 | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 3.5 | ||
Fiscal Quarter Ending June 30, 2020 | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 6 | ||
Fiscal Quarter Ending September 30, 2020 | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 6 | ||
Fiscal Quarter Ending December 31, 2020 | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 6 | ||
Each Fiscal Quarter Ending After December 31, 2020 | First Amendment | Citibank, N.A. | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum net leverage ratio | 3.5 |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Activity (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Capital Stock Activity [Roll Forward] | ||
Beginning balance (in shares) | 146,085,696 | |
Ending balance (in shares) | 146,296,962 | |
Treasury Stock [Roll Forward] | ||
Beginning balance (in shares) | (104,012) | |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (2,896) | |
Ending balance (in shares) | (106,908) | |
Common stock outstanding | ||
Outstanding (in shares) | 146,190,054 | 145,981,684 |
FMC Plan | Restricted Stock Units (RSUs) | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 108,587 | |
Livent Plan | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 9,291 | |
Livent Plan | Restricted Stock Units (RSUs) | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 93,388 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 544 | $ 489.6 |
Other comprehensive loss before reclassifications | (1.8) | 1.3 |
Amounts reclassified from accumulated other comprehensive loss | (0.4) | |
Ending balance | 540.8 | 508.6 |
Foreign currency adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (48.3) | (48) |
Other comprehensive loss before reclassifications | (1.8) | 1 |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Ending balance | (50.1) | (47) |
Derivative instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1.2) | |
Other comprehensive loss before reclassifications | 0.3 | |
Amounts reclassified from accumulated other comprehensive loss | (0.4) | |
Ending balance | (1.3) | |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (48.3) | (49.2) |
Ending balance | $ (50.1) | $ (48.3) |
Equity - Reclassification Out o
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Costs of sales and services | $ 53.9 | $ 65.6 |
Total before tax | (2.2) | 21 |
Income tax (benefit)/expense | (0.3) | 4.1 |
Net (loss)/income | $ (1.9) | 16.9 |
Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 0.4 | |
Income tax (benefit)/expense | 0.1 | |
Net (loss)/income | 0.4 | |
Foreign currency contracts | Derivative instruments | Amounts Reclassified from Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Costs of sales and services | $ (0.4) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |
Dividends paid | $ 0 | $ 0 |
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, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net (loss)/income | $ (1.9) | $ 16.9 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 146.1 | 146 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 0.5 |
Weighted average common shares outstanding – diluted (in shares) | 146.1 | 146.5 |
Basic earnings per common share: | ||
Net (loss)/income per weighted average share - basic (in dollars per share) | $ (0.01) | $ 0.12 |
Diluted earnings per common share: | ||
Net (loss)/income per weighted average share - diluted (in dollars per share) | $ (0.01) | $ 0.12 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,558,912 | 716,256 |
Antidilutive securities, exercise price (in dollars per share) | $ 13.23 | $ 16.99 |
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0 | 500,000 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Estimated fair value of debt | $ 211.1 | $ 154.6 |
Not Designated as Hedging Instrument | Foreign currency contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | $ 49.9 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 544 | $ 489.6 |
Unrealized hedging gains, net of tax | (1.8) | 1.3 |
Reclassification of deferred hedging gains, net of tax (1) | (0.4) | |
Other comprehensive (loss)/income, net of tax | (1.8) | 0.9 |
Ending balance | $ 540.8 | 508.6 |
Total 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 (1) | (0.4) | |
Other comprehensive (loss)/income, net of tax | (0.1) | |
Ending balance | $ (1.3) |
Financial Instruments, Risk M_5
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ 0.9 | $ 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 | $ 0.9 | $ 0.1 |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2020 | |
Assets | ||
Investments in deferred compensation plan | $ 1.6 | $ 1.6 |
Total Assets | 1.6 | 1.6 |
Liabilities | ||
Deferred compensation plan obligation | 2.5 | 2.2 |
Total Liabilities | 2.5 | 2.2 |
Level 1 | ||
Assets | ||
Investments in deferred compensation plan | 1.6 | 1.6 |
Total Assets | 1.6 | 1.6 |
Liabilities | ||
Deferred compensation plan obligation | 2.5 | 2.2 |
Total Liabilities | 2.5 | 2.2 |
Level 2 | ||
Assets | ||
Investments in deferred compensation plan | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Deferred compensation plan obligation | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | ||
Assets | ||
Investments in deferred compensation plan | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Deferred compensation plan obligation | 0 | 0 |
Total Liabilities | 0 | $ 0 |
Selling, General and Administrative Expenses | ||
Liabilities | ||
Mark-to-market gain on common stock | $ 0.3 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average remaining lease term | 11 years 8 months 12 days | 11 years 4 months 24 days |
Operating lease, weighted average discount rate | 4.40% | 4.40% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 15 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lease Cost | ||
Operating lease cost | $ 0.6 | $ 0.5 |
Short-term lease cost (2) | 0.2 | 0.1 |
Total lease cost | 0.8 | 0.5 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash paid for operating leases | 0.6 | 0.4 |
Variable lease cost | 0.1 | 0.1 |
Sublease income | $ 0.1 | $ 0.1 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2020USD ($) |
Undiscounted cash flows | |
2020 (excluding the three months ended March 31, 2020) | $ 1.4 |
2021 | 1.9 |
2022 | 1.8 |
2023 | 1.7 |
2024 | 1.6 |
Thereafter | 11.7 |
Total future minimum lease payments | 20.1 |
Less: Imputed interest | (4.4) |
Total | $ 15.7 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Argentina government receivable | $ 8.6 | $ 7.8 |
Tax related items | 16.1 | 14.1 |
Other receivables | 10.6 | 9.9 |
Prepaid expenses | 8.4 | 9.2 |
Bank Acceptance Drafts | 2.7 | 7.4 |
Other current assets | 4.3 | 3.4 |
Total | $ 50.7 | $ 51.8 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other assets | ||
Argentina government receivable | $ 58 | $ 55 |
Advance to contract manufacturers | 15.5 | 15.9 |
Capitalized software, net | 1.8 | 1.1 |
Prepayment associated with long-term supply agreement (4) | 10 | 10 |
Tax related items | 5.2 | 3.6 |
Other assets | 6.4 | 5.9 |
Total | 96.9 | 91.5 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred asset | 3.9 | |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 39.1 | $ 38 |
Supplemental Information - Accr
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued and other current liabilities | ||
Restructuring reserves | $ 3.3 | $ 3.3 |
Retirement liability - 401K | 0.6 | 2.7 |
Accrued payroll | 6 | 6.7 |
Severance related | 1.7 | 0 |
Environmental reserves, current | 0.5 | 0.5 |
Other accrued and other current liabilities | 21.7 | 23.2 |
Total | $ 33.8 | $ 36.4 |
Supplemental Information - Ot_2
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other long-term liabilities | ||
Asset retirement obligations | $ 0.2 | $ 0.2 |
Contingencies related to uncertain tax positions | 5.9 | 4.1 |
Deferred compensation plan obligation | 2.2 | 2.5 |
Self-insurance reserves | 1.9 | 1.9 |
Other long-term liabilities | 1.3 | 1.3 |
Total | 11.5 | 10 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 4.4 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 1.5 |
Subsequent Events d (Details)
Subsequent Events d (Details) | May 06, 2020USD ($) | Mar. 31, 2020 | Sep. 28, 2018USD ($) |
First Amendment | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Maximum unsecured indebtedness | $ 350,000,000 | ||
Revolving Credit Facility | Citibank, N.A. | |||
Subsequent Event [Line Items] | |||
Credit facility borrowing capacity | $ 400,000,000 | ||
Revolving Credit Facility | First Amendment | Citibank, N.A. | |||
Subsequent Event [Line Items] | |||
Maximum net leverage ratio | 3.5 | ||
Revolving Credit Facility | First Amendment | Citibank, N.A. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Maximum net leverage ratio | 6 | ||
Credit facility borrowing capacity | $ 325,000,000 |