Cover Page
Cover Page - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Jun. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
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 | 1818 Market Street | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 215 | |
Local Phone Number | 299-5900 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | LTHM | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 3,112,320,130 | |
Entity Common Stock, Shares Outstanding | 161,689,984 | |
Documents Incorporated by Reference | DOCUMENT FORM 10-K REFERENCE Portions of Proxy Statement for 2022 Annual Meeting of Stockholders Part III | |
Entity Central Index Key | 0001742924 | |
Amendment Flag | false | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Philadelphia, PA |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Revenue | $ 420.4 | $ 288.2 | [1] | $ 388.4 |
Costs and expenses: | ||||
Costs of sales | 332 | 251.4 | [1] | 273.5 |
Gross margin | 88.4 | 36.8 | [1] | 114.9 |
Selling, general and administrative expenses | 49.9 | 44.6 | [1] | 40.5 |
Research and development expenses | 3 | 3.7 | [1] | 3.3 |
Restructuring and other charges | 3.8 | 10.7 | [1] | 6.2 |
Separation-related costs/(income) | 2 | (1.1) | [1] | 6.3 |
Total costs and expenses | 390.7 | 309.3 | [1] | 329.8 |
Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates, and interest expense, net | 29.7 | (21.1) | [1] | 58.6 |
Loss on debt extinguishment | 0 | 0.1 | [2] | 0 |
Equity in net loss of unconsolidated affiliates | 5.5 | 0.5 | [1] | 0.8 |
Interest expense, net | 0.3 | [1] | 0 | |
Income/(loss) from operations before income taxes | 23.9 | (22) | [1] | 57.8 |
Income tax expense/(benefit) | 23.3 | (5.7) | [1] | 7.6 |
Net income/(loss) | $ 0.6 | $ (16.3) | [3] | $ 50.2 |
Net income per weighted average share - basic (in dollars per share) | $ (0.11) | [1] | $ 0.34 | |
Net income per weighted average share - diluted (in dollars per share) | $ (0.11) | [1] | $ 0.34 | |
Weighted average common shares outstanding - basic (in shares) | 154,700 | 146,200 | [1] | 146,000 |
Weighted average common shares outstanding – diluted (in shares) | 184,300 | 146,200 | [1] | 146,400 |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||
[3] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | [1] | Dec. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income/(loss) | $ 0.6 | $ (16.3) | $ 50.2 | ||
Foreign currency adjustments: | |||||
Foreign currency translation gain/(loss) arising during the period | 1.3 | 3.9 | (0.3) | ||
Total foreign currency translation adjustments | 1.3 | 3.9 | (0.3) | ||
Derivative instruments: | |||||
Unrealized hedging gains, net of tax of zero | 0.3 | 0 | 0 | ||
Reclassification of deferred hedging (gains)/losses included in net income, net of tax of $(0.1) | [2] | (0.1) | 0 | 1.2 | |
Total derivative instruments, net of tax of zero, zero and $(0.1) | 0.2 | 0 | 1.2 | ||
Other comprehensive income, net of tax | 1.5 | 3.9 | 0.9 | ||
Comprehensive income/(loss) | $ 2.1 | $ (12.4) | $ 51.1 | ||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | ||||
[2] | For more detail on the components of these reclassifications and the affected line item in the consolidated statements of operations, see Note 13 within these consolidated financial statements. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax [Abstract] | ||||
Unrealized hedging gains (losses) and other, tax | $ 0 | |||
Reclassification of deferred hedging losses included in net income, tax | [1] | $ 0.1 | ||
Total derivative instruments, tax | $ 0 | $ 0 | $ (0.1) | |
[1] | For more detail on the components of these reclassifications and the affected line item in the consolidated statements of operations, see Note 13 within these consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | ||
Current assets | ||||
Cash and cash equivalents | $ 113 | $ 11.6 | [1] | |
Trade receivables, net of allowance of approximately $0.3 in 2021 and $0.4 in 2020 | 96.4 | 76.3 | [1] | |
Inventories, net | 134.6 | 105.6 | [1] | |
Prepaid and other current assets | 55.3 | 56.3 | [1] | |
Total current assets | 399.3 | 249.8 | [1] | |
Investments | 27.2 | 23.8 | [1] | |
Property, plant and equipment, net of accumulated depreciation of $243.0 in 2021 and $222.4 in 2020 | 677.9 | 545.3 | [1] | |
Deferred income taxes | 0.9 | 13.4 | [1] | |
Right of use assets - operating leases, net | 6.3 | 16.1 | [1] | |
Other assets | 90.9 | 88.4 | [1] | |
Total assets | 1,202.5 | 936.8 | [1] | |
Current liabilities | ||||
Accounts payable, trade and other | 65.4 | 43.9 | [1] | |
Accrued customer rebates | 0 | 0.3 | [1] | |
Accrued and other liabilities | 61.8 | 36.7 | [1] | |
Operating lease liabilities - current | 1.1 | 1.4 | [1] | |
Income taxes | 3 | 0 | [1] | |
Total current liabilities | 131.3 | 82.3 | [1] | |
Long-term debt | 240.4 | 274.6 | [1] | |
Operating lease liabilities - long-term | 5.4 | 14.8 | [1] | |
Environmental liabilities | 5.6 | 6.1 | [1] | |
Deferred income taxes | 12.7 | 5.6 | [1] | |
Other long-term liabilities | 11.7 | 17.2 | [1] | |
Commitments and contingent liabilities (Note 16) | 0 | 0 | [1] | |
Total current and long-term liabilities | 407.1 | 400.6 | [1] | |
Equity | ||||
Common stock; $0.001 par value; 2 billion shares authorized; 161,791,602 and 146,461,249 shares issued; 161,689,984 and 146,361,981 outstanding at December 31, 2021 and 2020, respectively | [1] | 0.1 | ||
Capital in excess of par value of common stock | [1] | 520.9 | ||
Retained earnings | [1] | 60.3 | ||
Accumulated other comprehensive loss | [1] | (44.4) | ||
Treasury stock, common, at cost; 101,618 and 99,268 shares at December 31, 2021 and 2020, respectively | [1] | (0.7) | ||
Total equity | 795.4 | 536.2 | [1] | |
Total liabilities and equity | $ 1,202.5 | $ 936.8 | [1] | |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivable | $ 0.3 | $ 0.4 |
Accumulated depreciation | $ 243 | $ 222.4 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 161,791,602 | 146,461,249 |
Shares of common stock outstanding (in shares) | 161,689,984 | 146,361,981 |
Treasury stock, at cost (in shares) | 101,618 | 99,268 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Cash provided by operating activities: | |||||||
Net income/(loss) | $ 0.6 | $ (16.3) | [1] | $ 50.2 | |||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | |||||||
Depreciation and amortization | 25.1 | 25 | [2] | 20.9 | |||
Restructuring and other (income)/charges | (1.5) | 3.3 | [2] | 2.1 | |||
Separation-related (income)/charges | 0 | (0.3) | [2] | 0.9 | |||
Deferred income taxes | 12.5 | (6.3) | [2] | (0.9) | |||
Share-based compensation | 5.3 | 4.1 | [2] | 4.3 | |||
Change in investments in trust fund securities | 0.6 | 1 | [2] | 0.1 | |||
Equity in net loss of unconsolidated affiliates | 5.5 | 0.5 | [2] | 0 | |||
Loss on debt extinguishment | 0 | 0.1 | [2] | 0 | |||
Deferred financing fee amortization | 0.3 | 0.7 | [2] | 0 | |||
Loss on asset disposal | 0.5 | 0.6 | [2] | 0 | |||
Changes in operating assets and liabilities: | |||||||
Trade receivables, net | (19) | 15.3 | [2] | 51.4 | |||
Changes in deferred compensation | 1.4 | 0.7 | [2] | 0.6 | |||
Inventories | (28.2) | 10.1 | [2] | (40.6) | |||
Accounts payable, trade and other | 20.9 | (39.8) | [2] | 10.8 | |||
Income taxes | 3 | (0.9) | [2] | (0.7) | |||
Change in due to related party | 0 | 0 | [2] | (23.7) | |||
Change in prepaid and other current assets and other assets | (3.7) | (9.9) | [2] | (2.7) | |||
Change in accrued and other current and long-term liabilities | 3.1 | 18.4 | [2] | (14.6) | |||
Cash provided by operating activities | 26.4 | 6.3 | [2] | 58.1 | |||
Cash used in investing activities: | |||||||
Capital expenditures | [3] | (131.9) | (124) | [2] | (184.3) | ||
Investments in Livent NQSP securities | (1.4) | (0.6) | [2] | (0.4) | |||
Proceeds from settlement of long-term supply agreement | 0 | 10 | [2] | 0 | |||
Investments in unconsolidated affiliate | (8) | (15) | [2] | (0.8) | |||
Other investing activities | (2) | (1.5) | [2] | (4.5) | |||
Cash used in investing activities | (143.3) | (131.1) | [2] | (190) | |||
Cash provided by financing activities: | |||||||
Proceeds from Revolving Credit Facility | 39.5 | 175.5 | [2] | 232 | |||
Repayments of Revolving Credit Facility | (75.1) | (294.6) | [2] | (111.4) | |||
Proceeds from 2025 Notes | 0 | 245.8 | [2] | 0 | |||
Payments of financing fees | 0 | (8.4) | [2] | (0.1) | |||
Proceeds from issuance of common stock - incentive plans | 1.5 | 0.8 | [2] | 0 | |||
Payments of underwriting fees and expenses - Offering | (9.4) | 0 | [2] | 0 | |||
Proceeds from Offering | 261.6 | 0 | [2] | 0 | |||
Net purchases of treasury stock - Livent NQSP | (0.1) | 0 | [2] | 0 | |||
Cash provided by financing activities | 218 | 119.1 | [2] | 120.5 | |||
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.5 | [2] | (0.1) | |||
Increase/(decrease) in cash and cash equivalents | 101.4 | (5.2) | [2] | (11.5) | |||
Cash and cash equivalents, beginning of period | 11.6 | [2] | 16.8 | [2] | 28.3 | ||
Cash and cash equivalents, end of period | 113 | 11.6 | [2] | 16.8 | [2] | ||
Supplemental disclosure for cash flow: | |||||||
Income taxes paid, net of refunds | [4] | 4.1 | 2.6 | 38.5 | |||
Cash payments for interest, net | [3] | 13.3 | 5.6 | 4.3 | |||
Cash payments for Restructuring and other charges | 5.3 | 7.4 | 4.1 | ||||
Cash (receipts)/payments for Separation-related charges | [5] | 2 | (0.8) | 9.9 | |||
Accrued capital expenditures | 32.5 | 15.1 | 34 | ||||
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | 2.1 | 0.8 | 16.1 | ||||
Accrued investment in unconsolidated affiliate | $ 0 | $ 6.3 | $ 0 | ||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | ||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | ||||||
[3] | For the year ended December 31, 2021 and December 31, 202 0 $15.4 million and $12.0 million of interest was capitalized, respectively. All of the interest related to our Revolving Credit Facility was capitalized for the year ended December 31, 2019. | ||||||
[4] | The year ended December 31, 2021 includes $1.7 million of refunds relating to U.S. state taxes and foreign taxes . The year ended December 31, 2020 includes refunds of $1.6 million and $1.9 million from FMC related to the Company's 2019 and 2018 federal income tax returns, respectively. | ||||||
[5] | The year ended December 31, 2020 includes $2.0 million gain on settlement of long-term supply agreement. The year ended December 31, 2019 includes $4.6 million paid to FMC related to the Separation steps. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Capitalized interest costs | $ 15.4 | $ 12 | |
Change in due to related party | 0 | 0 | [1] |
Gain on settlement of long term supply agreement | 2 | ||
2019 Federal Income Tax Return | |||
Change in due to related party | 1.6 | ||
2018 Federal Income Tax Return | |||
Change in due to related party | 1.9 | ||
Separation Steps | |||
Change in due to related party | $ (4.6) | ||
State And Foreign Tax Authority | |||
Income tax refunds | $ 1.7 | ||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
CONSOLIDATED STATEMENTS OF EQUI
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 income/(loss) | 50.2 | 50.2 | ||||||||||
Stock compensation plans | 5.7 | 5.7 | ||||||||||
Reclassification of deferred hedging losses, net of $0.1 income tax | (1.2) | (1.2) | ||||||||||
Foreign currency translation adjustments | (0.3) | (0.3) | ||||||||||
Stockholders' Equity, Other | (1.6) | (1.6) | ||||||||||
Transfer in of treasury stock - Livent NQSP | 0.8 | 0.8 | ||||||||||
Ending balance at Dec. 31, 2019 | 544 | 0.1 | 516.4 | 76.6 | (48.3) | (0.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income/(loss) | (16.3) | [1] | (16.3) | |||||||||
Stock compensation plans | 4.4 | 4.4 | ||||||||||
Shares withheld for taxes - common stock issuances | (0.7) | (0.7) | ||||||||||
Foreign currency translation adjustments | 3.9 | [1] | 3.9 | |||||||||
Exercise of stock options | 0.8 | 0.8 | ||||||||||
Net sales of treasury stock - Livent NQSP | 0.1 | 0.1 | ||||||||||
Ending balance at Dec. 31, 2020 | 536.2 | [2] | 0.1 | [3] | 520.9 | [3] | 60.3 | [3] | (44.4) | [3] | (0.7) | [3] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income/(loss) | 0.6 | 0.6 | ||||||||||
Stock compensation plans | 5.3 | 5.3 | ||||||||||
Shares withheld for taxes - common stock issuances | (1.8) | (1.8) | ||||||||||
Issuance of common stock - Offering | 252.2 | 252.2 | ||||||||||
Net hedging gains, net of income tax expense | 0.2 | 0.2 | ||||||||||
Foreign currency translation adjustments | 1.3 | 1.3 | ||||||||||
Exercise of stock options | 1.5 | 1.5 | ||||||||||
Transfer in of treasury stock - Livent NQSP | 0.1 | 0.1 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 795.4 | $ 0.1 | $ 778.1 | $ 60.9 | $ (42.9) | $ (0.8) | ||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||
[3] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY - (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2021 | Jun. 15, 2021 | Dec. 31, 2020 | ||
Statement of Stockholders' Equity [Abstract] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Reclassification of deferred hedging losses included in net income, tax | [1] | $ 0.1 | |||
[1] | For more detail on the components of these reclassifications and the affected line item in the consolidated statements of operations, see Note 13 within these consolidated financial statements. |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2021 | |
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. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information Basis of presentation and principles of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Earnings per share. The weighted average common shares outstanding for both basic and diluted earnings per share for all periods presented was calculated, in accordance with ASC 260, Earnings Per Share. Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. 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 Annual Report on Form 10-K. These estimates may change as new events occur and additional information is obtained. Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. Trade receivables, net of allowance . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. Our method of calculating the formula consists of estimating the recoverability of trade receivables based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Our analysis of trade receivable collection risk is performed quarterly, and the allowance is adjusted accordingly. Inventories . Inventories are stated at the lower of cost or net realizable value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All inventories are determined on a first-in, first-out (“FIFO”) basis. Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is calculated principally on a straight-line basis over the estimated useful lives of the assets. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. We periodically evaluate whether events or circumstances indicate that the net book value of our property, plant and equipment may not be recoverable. Capitalized interest . For the years ended December 31, 2021, 2020 and 2019 we capitalized interest expense of $15.4 million, $12.0 million and $5.7 million, respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. Impairments of long-lived assets . We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. There were no significant impairments during the three years ended December 31, 2021. Asset retirement obligations . We record asset retirement obligations (“AROs”) at present value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its estimated fair value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. The carrying amounts for the AROs for the years ended December 31, 2021 and 2020 are $0.3 million and $0.3 million, respectively. These amounts are included in "Other long-term liabilities" on the consolidated balance sheets. Deferred compensation plan. We have established a trust fund administered by a third party to provide funding for benefits payable under the Livent Non-qualified Saving Plan ("Livent NQSP") to which highly compensated Livent employees can elect to defer part of their compensation. The assets held in the trust consist of money market investments, a managed portfolio of equity securities and Livent common stock. For each reporting period, the Company records a net mark-to-market adjustment to Selling, general and administrative expense in our consolidated statements of operations for the investments in the trust fund and the corresponding obligation to participants in the Livent NQSP. The money market investments and equity securities assets are included in Other assets in the accompanying consolidated balance sheets. The investments in Livent common stock under the Livent NQSP are included in Treasury stock on our consolidated balance sheets. The deferred compensation obligation to participants is included in Other long-term liabilities on our consolidated balance sheets. See Note 15 and Note 17 for additional details on the Livent NQSP deferred compensation plan. 4.125% Convertible Senior Notes due 2025 (the “2025 Notes”). We account for our 2025 Notes under Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which we early adopted January 1, 2021 under the full retrospective method. See Note 11 and Note 14 for details. Financial instruments. Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, derivatives and amounts included in accruals meeting the definition of financial instruments. Trade receivables and trade payables are recorded at cost, which approximates fair value due to the short-term nature of the instruments. Investments held in trust are for the Livent NQSP as discussed in "Deferred compensation plan" subsection above. Livent enters into derivative contracts to hedge exposures and the associated assets or liabilities are recorded in our consolidated balance sheets and the gains or losses associated with these transactions are included in the consolidated statements of operations. Equity method investments. Livent has entered into agreements with The Pallinghurst Group relating to Quebec Lithium Partners ("QLP"), a joint venture owned equally by The Pallinghurst Group and Livent, and the conduct of certain business operations and oversight previously conducted by Nemaska Lithium Inc. The Company accounts for the investment in QLP as an equity method investment included in Investments in our consolidated balance sheets. See Note 16 for details. Leases. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 16 for information on related disclosures regarding leases. Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. Revenue recognition . Revenue from product sales is recognized when 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. See Note 4 for further details regarding revenue recognition. Research and Development . Research and development costs are expensed as incurred. Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability as part of the income tax payable in our consolidated balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. Stock-based compensation. Stock-based compensation expense for the three years ended December 31, 2021 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock-based compensation expense as they occur. See Note 12 for more information. As of December 31, 2021, there were 10,683,837 shares of Livent common stock authorized and registered for issuance under the Livent Plan. Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Where the available information is sufficient to estimate the amount of liability, that estimate has been used. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans (“OM&M”). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves. However, we are unable to reasonably estimate an amount in excess of our recorded reserves because we cannot reasonably estimate the period for which such OM&M plans will need to be in place or the future annual cost of such remediation, as conditions at these environmental sites change over time. Such additional OM&M costs could be significant in total but would be incurred over an extended period of years. Environmental remediation charges represent the costs for the continuing charges associated with environmental remediation at operating sites from previous years and from products that are no longer manufactured. Livent has one environmental remediation site located in Bessemer City, North Carolina. The (income)/charge associated with the cost of remediation for the years ended December 31, 2021, 2020 and 2019 are $(0.3) million, $0.1 million and $0.9 million, respectively. These amounts are recorded as a component within “Restructuring and other charges” on the consolidated statements of operations. The total environmental remediation liability as of December 31, 2021 and 2020 was $6.1 million and $6.7 million, respectively. Foreign currency . We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ statements of operations are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of sales in our consolidated statements of operations. We recorded transaction and remeasurement losses o f $10.3 million, $14.2 million and $14.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [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 FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The 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. The FASB also issued ASU No. 2021-01, Reference Rate Reform (Topic 848) . The 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. The amendments in this ASU affect the guidance in ASU No. 2020-04 and are effective for all entities as of March 12, 2020 through December 31, 2022. We do not expect the adoption to have a material impact on our consolidated financial statements. Recently adopted accounting guidance As of January 1, 2021, Livent early adopted Accounting Standards Update No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, when following ASU 2020-06, more convertible debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be closer to the coupon interest rate. ASU 2020-06 also aligns the consistency of diluted Earnings Per Share ("EPS") calculations for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share settlement. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Livent elected to early adopt ASU 2020-06 on January 1, 2021, using the full retrospective method. Prior to adoption, under Accounting Standards Codification 470-20, Debt with Conversion and Other Options ("ASC 470-20"), the Company had separately accounted for the liability and equity components of its 4.125% Convertible Senior Notes Due 2025 (the "2025 Notes"), which may be settled entirely or partially in cash upon conversion, in a manner that reflected the issuer’s economic interest cost. The effect of ASC 470-20 on the accounting for the 2025 Notes was that the equity component was required to be included in the additional paid-in capital section of stockholders’ equity on the consolidated balance sheet, and the value of the equity component was treated as original issue discount for purposes of accounting for the debt component of the 2025 Notes. As a result, prior to the adoption of ASU 2020-06, the Company was required to record a greater amount of non-cash interest expense as a result of the amortization of the discounted carrying value of the 2025 Notes to their face amount over the term of the 2025 Notes. Because the Company intends to settle in cash the principal outstanding under its 2025 Notes, the Company previously could elect to use the treasury stock method when calculating their potential dilutive effect, if any. ASU 2020-06 now requires the Company to use the if-converted method for EPS. For the full retrospective method of adoption, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in the consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. Interest expense, loss from operations before income taxes, income tax benefit, net loss and loss per share were also adjusted in the consolidated statement of operations for the year ended December 31, 2020. Non-cash adjustments to reconcile net loss to cash provided by operating activities, including deferred income taxes and deferred financing fee amortization were also adjusted in the consolidated statement of cash flows for the year ended December 31, 2020. See Note 11 and Note 14 for further details. In December 2019, the 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. The adoption did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas (based on product destination) and by product categories. The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2021 2020 2019 North America (1) (2) $ 61.4 $ 53.3 $ 76.2 Latin America — 0.2 1.0 Europe, Middle East & Africa 62.2 49.2 59.0 Asia Pacific (1) (2) 296.8 185.5 252.2 Total Revenue $ 420.4 $ 288.2 $ 388.4 ____________________ 1. In 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., South Korea and China. Sales for the year ended December 31, 2021 for Japan, the U.S., South Korea and China totaled $75.1 million, $59.9 million, $43.6 million and $160 million, respectively. S ales for the year ended December 31, 2020 for Japan, the U.S. and China totaled $97.7 million, $52.6 million and $55.3 million, respectively, and sales for the year ended December 31, 2019 totaled $160.4 million, $75.2 million and $53.2 million, respectively. 2. In the fourth quarter of 2021, we reclassified certain revenue from the nine months ended September 30, 2021 from North America to Asia Pacific to present revenue based on product destination. For the years ended December 31, 2021, 2020 and 2019, one customer accounted for approximately 31% , 26% and 28% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 69% , 64% and 60% of our revenue, respectively. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2021 2020 2019 Lithium Hydroxide $ 208.0 $ 157.5 $ 213.8 Butyllithium 105.4 87.1 99.9 High Purity Lithium Metal and Other Specialty Compounds 36.9 31.7 52.4 Lithium Carbonate and Lithium Chloride 70.1 11.9 22.3 Total Revenue $ 420.4 $ 288.2 $ 388.4 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 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 title and risk and the shipping terms of the contract. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as distribution costs. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Variable Consideration As a part of our customary business practice, we may offer sales incentives to our customers, such as volume discounts or rebates. Variable consideration given can differ by product. For all such contracts that include any variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Although determining the transaction price requires significant judgment, we have significant historical experience with incentives provided to customers and estimating the expected consideration considering historical patterns of incentive payouts. These estimates are re-assessed each reporting period as required. In addition to the variable consideration described above, in certain instances, we may require our customers to meet certain volume thresholds within their contract term. We estimate what amount of variable consideration should be included in the transaction price at contract inception and continually reassesses this estimation each reporting period to determine situations when the minimum volume thresholds will not be met. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In those circumstances, we apply the guidance on breakage and estimate the amount of the shortfall and recognize it over the remaining performance obligations in the contract. Right of Return We warrant to our customers that our products conform to mutually agreed product specifications. This offering is accounted for as a right of return and the transaction price is adjusted for an estimate of expected returns. 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. As of December 31, 2021 and 2020 there were no significant contract liabilities recorded in the consolidated balance sheets. The following table presents the opening and closing balances of our receivables, net of allowances from contracts with customers. Balance as of (in Millions) December 31, 2021 December 31, 2020 Increase Receivables from contracts with customers, net of allowances $ 96.4 $ 76.3 $ 20.1 The balance of receivables listed in the table above represents the current trade receivables (including buy/sell arrangements), 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 Revenue is recognized when 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 unsatisfied) 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 unsatisfied is approximately $589 million in the next four years. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer (refer to the sales of goods section for our determination of transfer of control). However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. Practical Expedients and Exemptions We have elected the following practical expedients following the adoption of ASC 606: a. Costs of obtaining a contract: We incur certain costs such as sales commissions which are incremental to obtaining the contract. We have taken the practical expedient of expensing such costs to obtain a contract, as and when they are incurred, when the expected amortization period is one year or less. b. Remaining performance obligations: We elected not to disclose the aggregate amount of the transaction price allocated to remaining performance obligations for our contracts that are one year or less, as the revenue is expected to be recognized within one year. Additionally, we have elected not to disclose information about variable considerations for remaining, wholly unsatisfied performance obligations for which the criteria in paragraph 606-10-32-40 have been met. c. Shipping and handling costs: We elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. d. Measurement of transaction price: We have elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: December 31, (in Millions) 2021 2020 Finished goods $ 52.2 $ 36.1 Semi-finished goods 43.6 46.2 Raw materials, supplies, and other 38.8 23.3 FIFO inventory, net $ 134.6 $ 105.6 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments In the fourth quarter of 2020, Livent entered into an agreement with The Pallinghurst Group relating to Québec Lithium Partners ("QLP"), a joint venture owned equally by The Pallinghurst Group and Livent, and the conduct of certain business operations and oversight, previously conducted solely by Nemaska Lithium Inc. for the development of a fully integrated lithium chemical asset located in Québec, Canada that is not yet in commercial production. QLP owns a 50% equity interest in the Nemaska Project. The Company accounts for the investment in QLP as an equity method investment on a one-quarter lag basis and is included in Investments in our condensed consolidated balance sheets. For the year ended December 31, 2021 we recorded a $5.5 million loss related to our 50% equity interest in QLP to Equity in net loss of unconsolidated affiliates in our consolidated statement of operations. The carrying amount of our 50% equity interest in QLP was $23.8 million and $21.2 million as of December 31, 2021 and December 31, 2020, respectively. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following: December 31, (in Millions) 2021 2020 Land and land improvements $ 85.8 $ 85.8 Buildings 84.4 83.0 Machinery and equipment 330.2 314.9 Construction in progress 420.5 284.0 Total cost $ 920.9 $ 767.7 Accumulated depreciation (243.0) (222.4) Property, plant and equipment, net $ 677.9 $ 545.3 Depreciation expense was $22.9 million, $22.0 million, and $19.1 million in 2021, 2020 and 2019, respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows total restructuring and other charges included in the consolidated statements of operations: Year Ended December 31, (in Millions) 2021 2020 2019 Restructuring charges: Severance-related and exit costs (1) $ 0.2 $ 6.2 $ — Other charges: Corporate severance-related costs (2) — — 3.5 Environmental remediation (3) (0.3) 0.1 0.9 Other (4) 3.9 4.4 1.8 Total restructuring and other charges $ 3.8 $ 10.7 $ 6.2 ___________________ 1. The years ended December 31, 2021 and 2020 include severance costs for management changes at certain operating and administrative facilities. Additionally, December 31, 2020 includes exit costs of $1.6 million for the closing of leased office space. 2. The year ended December 31, 2019 represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. 3. Represents costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 9 for more details. 4. The year ended December 31, 2021 consists primarily of transaction-related legal fees and miscellaneous nonrecurring transactions. The years ended December 31, 2020 and 2019 include legal fees related to IPO securities litigation, including $2.0 million accrued as of December 31, 2020, for the IPO securities litigation settlement, net of insurance reimbursement. See Note 16 for more details. |
Environmental Obligations
Environmental Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Obligations | Environmental Obligations We are subject to various federal, state, local and foreign environmental laws and regulations that govern emissions of air pollutants, discharges of water pollutants, and the manufacture, storage, handling and disposal of hazardous substances, hazardous wastes and other toxic materials and remediation of contaminated sites. We are also subject to liabilities arising under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state laws that impose responsibility on persons who arranged for the disposal of hazardous substances, and on current and previous owners and operators of a facility for the clean-up of hazardous substances released from the facility into the environment. We are also subject to liabilities under the Resource Conservation and Recovery Act (“RCRA”) and analogous state laws that require owners and operators of facilities that have treated, stored or disposed of hazardous waste pursuant to a RCRA permit to follow certain waste management practices and to clean up releases of hazardous substances into the environment associated with past or present practices. In addition, when deemed appropriate, we enter certain sites with potential liability into voluntary remediation compliance programs, which are also subject to guidelines that require owners and operators, current and previous, to clean up releases of hazardous substances into the environment associated with past or present practices. Environmental liabilities consist of obligations relating to waste handling and the remediation and/or study of sites at which we are alleged to have released or disposed of hazardous substances. As of the periods presented, the Bessemer City site located in North Carolina is the only site for which we have a reserve. We have provided reserves for potential environmental obligations that we consider probable and for which a reasonable estimate of the obligation can be made. Accordingly, total reserves of $6.1 million and $6.7 million existed for the years ended December 31, 2021 and 2020, respectively. The estimated reasonably possible environmental loss contingencies exceed amount accrued by approximately $3 million at December 31, 2021. This reasonably possible estimate is based upon information available as of the date of the filing and the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to the site. Although potential environmental remediation expenditures in excess of the reserves and estimated loss contingencies could be significant, the impact on our future consolidated financial results is not subject to reasonable estimation due to numerous uncertainties concerning the nature and scope of possible contamination, identification of remediation alternatives under constantly changing requirements, selection of new and diverse clean-up technologies to meet compliance standards, and the timing of potential expenditures. The liabilities arising from potential environmental obligations that have not been reserved for at this time may be material to results of operations in the future. However, we believe any liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years. The table below is a roll forward of our total environmental reserves. (in Millions) Environmental Reserves Total Balance December 31, 2020 $ 6.7 Change in reserves (0.3) Cash payments (0.3) Balance December 31, 2021 $ 6.1 The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2021 2020 Environmental reserves, current (1) $ 0.5 $ 0.6 Environmental reserves, long-term (2) 5.6 6.1 Total environmental reserves $ 6.1 $ 6.7 ______________ 1. These amounts are included within “Accrued and other liabilities” on the consolidated balance sheets. 2. These amounts are included in "Environmental liabilities" on the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Domestic and foreign components of income/(loss) from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 Domestic $ (15.2) $ (19.7) $ 9.9 Foreign 39.1 (2.3) 47.9 Total $ 23.9 $ (22.0) $ 57.8 __________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. The provision for income taxes attributable to income/(loss) from operations consisted of: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 Current: Federal (2) $ 1.7 $ (1.9) $ 3.5 Foreign 2.6 4.6 7.4 State — — 0.1 Total current $ 4.3 $ 2.7 $ 11.0 Deferred: Federal $ 1.3 $ (0.9) $ 1.2 Foreign 17.7 (7.4) (4.8) State — (0.1) 0.2 Total deferred 19.0 (8.4) (3.4) Total $ 23.3 $ (5.7) $ 7.6 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. The effective income tax rate applicable to income/(loss) from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 U.S. Federal statutory rate $ 5.1 $ (4.6) $ 12.1 Foreign earnings subject to different tax rates (1.2) 0.6 (3.6) Foreign derived intangible income (0.7) — (1.1) State and local income taxes, less federal income tax benefit — (0.1) 0.3 Tax on intercompany dividends and deemed dividends for tax purposes 3.8 0.1 4.4 Changes to unrecognized tax benefits (0.9) 2.1 0.6 Other permanent items (0.9) (0.2) (0.8) Change in valuation allowance 4.4 0.3 0.3 Exchange gains and losses (2) 12.7 (5.9) (1.8) Withholding taxes net of credits 0.8 1.1 — Other (3) 0.2 0.9 (2.8) Total tax provision/(benefit) $ 23.3 $ (5.7) $ 7.6 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. 2. Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. Additionally, the year ended December 31, 2021 includes an adjustment relating to inflation of $22.1 million. 3. The year ended December 31, 2019 includes a $3.2 million tax benefit due to revisions to our tax liabilities upon completion of prior year tax returns. Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2021 2020 (1) Environmental and restructuring $ 0.4 $ 1.4 Net operating loss carry-forwards and credits 5.7 15.3 Other assets and reserves 7.9 5.1 Deferred tax assets $ 14.0 $ 21.8 Valuation allowance, net (6.4) (3.6) Deferred tax assets, net of valuation allowance $ 7.6 $ 18.2 Property, plant and equipment, net (19.0) (10.2) Other liabilities (0.4) (0.2) Deferred tax liabilities (19.4) (10.4) Net deferred tax (liabilities)/assets $ (11.8) $ 7.8 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. U.S. GAAP requires companies to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative, using a “more likely than not” standard. In assessing the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of deferred tax assets. This assessment considers, among other matters, the nature and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, and tax planning alternatives. As of December 31, 2021, we had total foreign net operating loss carry-forwards of $3.5 million (tax effected) primarily related to the Netherlands and United Kingdom expiring over various tax years. Income taxes are not provided for any additional outside basis differences inherent in our investments in subsidiaries because the investments and related unremitted earnings are essentially permanent in duration or we have concluded that no additional tax liability will arise upon disposal. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings is not practicable due to the complexity of the hypothetical calculation. Uncertain Income Tax Positions U.S. GAAP accounting guidance for uncertainty in income taxes prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. We file tax returns in various jurisdictions. Pursuant to the TMA with FMC we have recorded amounts in uncertain tax positions at December 31, 2018 for tax positions that relate to our legacy business before IPO. In jurisdictions where we filed consolidated returns with FMC, and did not maintain the entity at IPO, our uncertain tax positions have been reduced as of December 31, 2021. We have recorded a $0.9 million indemnification asset from FMC regarding uncertain tax positions that are related to our legacy business before IPO and for which we are indemnified by FMC. Our significant foreign jurisdictions, which total 3, are open for examination and adjustment during varying periods from 2016 - 2020. As of December 31, 2021, we had total unrecognized tax benefits of $2.9 million, of which $1.0 million would unfavorably impact the effective tax rate from operations if recognized. As of December 31, 2020, we had total unrecognized tax benefits of $2.7 million, of which $1.3 million would unfavorably impact the effective tax rate if recognized. As of December 31, 2019, we had total unrecognized tax benefits of $2.4 million, of which $0.2 million would unfavorably impact the effective tax rate if recognized. Interest and penalties related to unrecognized tax benefits are reported as a component of income tax expense. For the years ended December 31, 2021, 2020 and 2019, we recognized interest and penalties of $(0.1) million, $0.7 million, and $0.2 million, respectively, in the consolidated statement of operations. As of December 31, 2021 and 2020, we have accrued interest and penalties in the consolidated balance sheets of $0.6 million and $1.1 million, res pectively. Due to the potential for resolution of federal, state, or foreign examinations, and the expiration of various jurisdictional statutes of limitation, it is reasonably possible that our liability for unrecognized tax benefits will decrease within the next 12 months by a range of zero to $1.0 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2021 2020 2019 Balance at beginning of year $ 2.7 $ 2.4 $ 2.6 Increases related to positions taken in the current year — 0.7 0.9 Decreases related to positions taken in prior years (1.6) — — Increases related to positions taken in prior years 1.9 — — Decreases related to lapse of statutes of limitations (0.1) (0.4) (1.1) Balance at end of year $ 2.9 $ 2.7 $ 2.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: Interest Rate Percentage Maturity December 31, 2021 December 31, 2020 (1) (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (2) 2.35% 4.5% 2023 $ — $ 35.6 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (5.4) (6.8) Total long-term debt (3) $ 240.4 $ 274.6 ______________________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. 2. As of December 31, 2021 and December 31, 2020, there were $14.5 million and $14.4 million, respectively, in letters of credit outstanding under our Revolving Credit Facility and $385.5 million and $275.0 million available funds as of December 31, 2021 and December 31, 2020, respectively. Fund availability is subject to the Company meeting its debt covenants. 3. As of December 31, 2021 and December 31, 2020, the Company had no debt maturing within one year. On January 1, 2021, the Company elected to early adopt ASU 2020-06 under the full retrospective method, that is, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in our consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. The ASU reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. Our 2025 Notes are now reported as a single liability instrument net of transaction costs with an interest rate closer to the coupon interest rate. The comparative financial statements of prior years have been adjusted to apply the adopted guidance retrospectively. Statement of operations (in Millions, except per share amounts) Year ended December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Interest expense/(income) $ 7.3 $ 0.3 $ (7.0) Income from operations before income taxes 16.9 23.9 7.0 Income tax expense 21.7 23.3 1.6 Net (loss)/income $ (4.8) $ 0.6 $ 5.4 Net (loss)/income per weighted average share - basic $ (0.03) $ — $ 0.03 Net (loss)/income per weighted average share - diluted $ (0.03) $ — $ 0.03 Year ended December 31, 2020 As originally reported As adjusted Effect of change Interest expense/(income) $ 3.7 $ 0.3 $ (3.4) (Loss)/income from operations before income taxes (25.4) (22.0) 3.4 Income tax (benefit)/expense (6.5) (5.7) 0.8 Net (loss)/income $ (18.9) $ (16.3) $ 2.6 Net (loss)/income per weighted average share - basic and diluted $ (0.13) $ (0.11) $ 0.02 Balance Sheet (in Millions, except per share amounts) December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Deferred income taxes $ 19.3 12.7 $ (6.6) Long-term debt 209.6 240.4 30.8 Total liabilities $ 228.9 $ 253.1 $ 24.2 Common stock, $0.001 per share par value 0.1 0.1 — Capital in excess of par value of common stock 810.3 778.1 (32.2) Retained earnings 52.9 60.9 8.0 Accumulated other comprehensive loss (42.9) (42.9) — Treasury stock (0.8) (0.8) — Total equity 819.6 795.4 (24.2) Total liabilities and equity $ 1,048.5 $ 1,048.5 $ — December 31, 2020 As originally reported As adjusted Effect of change Deferred income taxes $ 13.9 $ 5.6 $ (8.3) Long-term debt 236.7 274.6 37.9 Total liabilities $ 250.6 $ 280.2 $ 29.6 Common stock, $0.001 per share par value 0.1 0.1 — Capital in excess of par value of common stock 553.1 520.9 (32.2) Retained earnings 57.7 60.3 2.6 Accumulated other comprehensive loss (44.4) (44.4) — Treasury stock, common, at cost (0.7) (0.7) — Total equity 565.8 536.2 (29.6) Total liabilities and equity $ 816.4 $ 816.4 $ — Statement of cash flows (in Millions) Year ended December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Net (loss)/income $ (4.8) $ 0.6 $ 5.4 Adjustments to reconcile net (loss)/income to cash provided by operating activities: Deferred income taxes 10.9 12.5 1.6 Deferred financing fee amortization 7.3 0.3 (7.0) Net cash provided by operating activities 13.4 13.4 — Net increase in cash and cash equivalents 101.4 101.4 — Cash and cash equivalents, beginning of period 11.6 11.6 — Cash and cash equivalents, end of period $ 113.0 $ 113.0 $ — Year ended December 31, 2020 As originally reported As adjusted Effect of change Net (loss)/income $ (18.9) $ (16.3) $ 2.6 Adjustments to reconcile net (loss)/income to cash used in operating activities: Deferred income taxes (7.1) (6.3) 0.8 Deferred financing fee amortization 4.1 0.7 (3.4) Net cash used in operating activities (21.9) (21.9) — Net decrease in cash and cash equivalents (5.2) (5.2) — Cash and cash equivalents, beginning of period 16.8 16.8 — Cash and cash equivalents, end of period $ 11.6 $ 11.6 $ — 4.125% Convertible Senior Notes due 2025 In the second and third quarters of 2020, the Company issued $245.8 million in aggregate principal amount of 4.125% Convertible Senior Notes due in July 2025 (the "2025 Notes"). Total net cash proceeds received were $238.2 million net of $7.6 million of third-party transaction costs, including initial purchasers' discounts and commissions. The Company used or will use the net proceeds received to finance or refinance eligible green projects designed to align with the provisions of the International Capital Market Association Green Bond Principles 2018, including repaying amounts outstanding under its Revolving Credit Facility. Each $1,000 of principal of the 2025 Notes is initially convertible into 114.4885 shares of our common stock, which is equivalent to an initial conversion price of $8.73 per share, subject to adjustment upon the occurrence of specified events. We may not redeem the 2025 Notes prior to July 20, 2023. We may redeem for cash all or any portion of the 2025 Notes, at our option, on or after July 20, 2023 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest. Holders of the 2025 Notes may convert their notes at any time, at their option, on or after January 15, 2025. Further, holders of the 2025 Notes may convert their notes at any time, at their option, prior to January 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each trading day; (2) during the five- five- addition, if specific corporate events occur prior to the maturity date or if we deliver a notice of redemption, we will increase the conversion rate for a holder who elects to convert its 2025 Notes in connection with such an event or notice of redemption in certain circumstances. In the first quarter of 2022, the holders of the 2025 Notes were notified that the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, December 31, 2021 was greater than or equal to 130% of the conversion price on each trading day, and as a result, the holders have the option to convert all or any portion of their 2025 Notes through March 31, 2022. The 2025 Notes are classified as long-term debt. The Company recorded interest expense related to the amortization of transaction costs of $1.5 million and $0.8 million for the years ended December 31, 2021 and 2020, respectively; $1.2 million and $0.5 million of which was capitalized for years ended December 31, 2021 and 2020, respectively. The Company recorded $10.2 million and $5.2 million of accrued interest expense related to the principal amount for the years ended December 31, 2021 and 2020, respectively. Revolving Credit Facility On September 28, 2018, we entered into a credit agreement among us, our subsidiary, Livent 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”, and as amended the "Credit Agreement"). The Credit Agreement provides for a $400 million senior secured revolving credit facility, $50 million of which is available for the issuance of letters of credit for the account of the Borrowers, with an option, subject to certain conditions and limitations, to increase the aggregate amount of the revolving credit commitments to $600 million (the “Revolving Credit Facility”). The issuance of letters of credit and the proceeds of revolving credit loans made pursuant to the Revolving Credit Facility are available, and will be used, for general corporate purposes, including capital expenditures and permitted acquisitions, of the Borrowers and their subsidiaries. Amounts under the Revolving Credit Facility may be borrowed, repaid and re-borrowed from time to time until the final maturity date of the Revolving Credit Facility, which will be the fifth anniversary of the Revolving Credit Facility’s effective date. Voluntary prepayments and commitment reductions under the Revolving Credit Facility are permitted at any time without any prepayment premium upon proper notice and subject to minimum dollar amounts. Revolving loans under the Credit Agreement will bear interest at a floating rate, which will be a base rate or a Eurodollar rate equal to the London interbank offered rate for the relevant interest period, plus, in each case, an applicable margin based on our leverage ratio, as determined in accordance with the provisions of the Credit Agreement. The base rate will be the greatest of: the rate of interest announced publicly by Citibank, N.A. in New York City from time to time as its “base rate”; the federal funds effective rate plus 0.5%; and a Eurodollar rate for a one-month interest period plus 1%. Each Borrower on a joint and several basis is required to pay a commitment fee quarterly in arrears on the average daily unused amount of each Lender’s revolving credit commitment at a rate equal to an applicable percentage based on the leverage ratio, as determined in accordance with the provisions of the Credit Agreement. The applicable margin and the commitment fee are subject to adjustment as provided in the Credit Agreement. The Borrowers’ domestic material subsidiaries (the “Guarantors”) will guarantee the obligations of the Borrowers under the Revolving Credit Facility. The obligations of the Borrowers and the Guarantors are secured by all of the present and future assets of the Borrowers and the Guarantors, including the Borrowers’ facility and real estate in Bessemer City, North Carolina, subject to certain exceptions and exclusions as set forth in the Credit Agreement and other security and collateral documents. Fees incurred to secure the Revolving Credit Facility have been deferred and will be amortized over the term of the arrangement. The carrying value of our deferred financing costs was $1.5 million as of December 31, 2021. 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). Our maximum allowable first lien leverage ratio is 3.5 as of December 31, 2021. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants at December 31, 2021. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Livent Corporation Incentive Compensation and Stock Plan As of December 31, 2021, the total shares of Livent common stock authorized for issuance under the Livent Corporation Incentive Compensation and Stock Plan (the "Livent Plan") is 10,683,837 shares. The Livent Plan provides for the grant of a variety of cash and equity awards to officers, directors, employees and consultants, including stock options, restricted stock, restricted stock units (including performance units), stock appreciation rights, and management incentive awards. The Compensation and Organization Committee of the Livent Board of Directors (the “Livent Committee”) has the authority to amend the Livent Plan at any time, approve financial targets, award grants, establish performance objectives and conditions and the times and conditions for payment of awards. Stock options granted under the Livent Plan may be incentive or non-qualified stock options. The exercise price for stock options may not be less than the fair market value of the stock at the date of grant. Awards granted under the Livent Plan vest or become exercisable or payable at the time designated by the Livent Committee. The options granted in 2021 will vest on the third anniversary of the date of grant, subject generally to continued employment, and cost is recognized over the vesting period. Incentive and non-qualified options granted under the Livent Plan expire not later than 10 years from the grant date. Under the Livent Plan, awards of restricted stock units ("RSUs") vest over periods designated by the Livent Committee. The RSUs granted in 2021 to employees vest on the same schedule as the stock options granted in 2021. The RSUs granted to non-employee directors in 2021 vest at the Company's next annual meeting of stockholders following the grant date. Compensation cost is recognized over the vesting periods based on the market value of Livent common stock on the grant date of the award. Stock Compensation We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2021 2020 2019 Stock Option Expense, net of taxes of $0.3, $0.2 and $0.4 $ 1.6 $ 1.1 $ 1.7 Restricted Stock Expense, net of taxes of $0.6, $0.5 and $0.8 2.9 2.6 2.8 Total Stock Compensation Expense, net of taxes of $0.9, $0.7 and $1.2 (1) $ 4.5 $ 3.7 $ 4.5 ____________________ 1. Gross stock compensation charges of $5.3 million was recorded to "Selling, general and administrative expenses" in our consolidated statement of operations for the year ended December 31, 2021. Gross stock compensation charges of $4.1 million, $0.2 million and $0.1 million were recorded to "Selling, general and administrative expenses", "Restructuring and other charges", and "Separation-related costs", respectively, in our consolidated statement of operations for the year ended December 31, 2020. Gross stock compensation charges of $4.3 million, $1.2 million and $0.2 million were recorded to "Selling, general and administrative expenses", "Restructuring and other charges", and "Separation-related costs", respectively, in our consolidated statement of operations for the year ended December 31, 2019. Stock Options The grant date fair values of the stock options granted in the year ended December 31, 2021, were estimated using the Black-Scholes option valuation model, the key assumptions for which are listed in the table below. The expected volatility assumption is based on the historical volatility of a group of twelve of our publicly traded peers that operate in the specialty chemical sector and five companies that have recently been spun off from larger publicly traded companies. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury securities with terms equal to the expected timing of stock option exercises as of the grant date. The dividend yield assumption reflects anticipated dividends on Livent's common stock. Livent stock options granted in 2021 cliff vest on the third anniversary following the grant date and expire ten years from the date of grant. The following table contains Black Scholes valuation assumptions for stock option granted for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Expected dividend yield —% —% —% Expected volatility 27.0% 20.2% - 20.7% 20.1% - 21.0% Expected life (in years) 6.5 6.5 6.5 Risk-free interest rate 0.81% 1.20% - 1.73% 1.86% - 2.55% The weighted-average grant date fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was $5.86 per share, $2.29 and $3.26 per share, respectively. The following table shows stock option activity, for the year ended December 31, 2021: Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding as of December 31, 2020 1,725,494 6.2 years $ 12.45 $ 11.0 Granted 542,760 $ 20.35 Exercised (109,578) $ 13.56 $ 1.2 Forfeited (24,245) $ 15.09 Outstanding as of December 31, 2021 2,134,431 6.4 years $ 14.37 $ 21.4 Exercisable as of December 31, 2021 930,390 4.6 years $ 11.64 $ 11.9 As of December 31, 2021 and December, 31, 2020, we had total remaining unrecognized compensation cost related to unvested stock options of $3.0 million and $1.7 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.9 years. The aggregate intrinsic value of stock options exercised for the year ended December 31, 2020 was $0.4 million. No stock options were exercised during the year ended December 31, 2019. Restricted Stock Unit Awards The grant date fair value of RSUs under the Livent Plan is based on the market price per share of Livent's common stock on the date of grant, and the related compensation cost is amortized to expense on a straight-line basis over the vesting period during which the employees perform related services, which for the RSUs granted in 2021 is cliff vesting on the third anniversary following the grant date. The following table shows RSU activity for the year ended December 31, 2021: Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2020 687,006 $ 11.50 $ 12.9 Granted 274,408 $ 20.12 Vested (233,130) $ 13.70 Forfeited (11,846) $ 14.78 Nonvested as of December 31, 2021 716,438 $ 14.03 $ 17.5 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2021, 2020 and 2019 was $20.12 per share, $7.31 per share and $11.50 per share, respectively. The intrinsic value of RSUs vested during the years ended December 31, 2021, 2020, and 2019 was $5.0 million, $1.6 million, and $0.7 million, respectively. The total fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019 was $3.2 million, $1.7 million, and $1.3 million, respectively. As of December 31, 2021, there was total remaining unrecognized compensation cost related to unvested RSUs of $4.5 million which will be amortized over the weighted-average remaining requisite service period of approximately 1.8 years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity For the period from December 31, 2018 to December 31, 2021, the Company had 2 billion shares of common stock authorized. The following table reflects the changes in Livent's common shares issued and outstanding for each period presented: Issued Treasury Outstanding Balance as of December 31, 2019 146,085,696 (104,012) 145,981,684 RSU awards 256,161 — 256,161 Stock option awards 119,392 — 119,392 Net sales of treasury stock - deferred compensation plan — 4,744 4,744 Balance as of December 31, 2020 146,461,249 (99,268) 146,361,981 RSU awards 270,775 — 270,775 Stock option awards 109,578 — 109,578 Net purchases of treasury stock - deferred compensation plan — (2,350) (2,350) Issuance of common stock 14,950,000 — 14,950,000 Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 On June 15, 2021, the Company closed on the issuance of 14,950,000 shares of its common stock, par value $0.001 per share, at a public offering price of $17.50 per share, in an underwritten public offering (the "Offering"), including 1,950,000 shares purchased under a 30-day underwriters' option exercised in full by the underwriters on June 11, 2021. Total net proceeds from the Offering, including from the exercise of the underwriters’ option, were $252.2 million, after deducting the underwriters’ fees and offering expenses payable by the Company of $9.4 million. The total net proceeds were recorded to paid-in capital in the consolidated balance sheet. Accumulated other comprehensive loss Summarized below is the roll forward of accumulated other comprehensive loss, net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Total Accumulated other comprehensive loss, net of tax as of December 31, 2019 $ (48.3) $ — $ (48.3) Other comprehensive income before reclassifications 3.9 — 3.9 Accumulated other comprehensive loss, net of tax as of December 31, 2020 $ (44.4) $ — $ (44.4) Other comprehensive income before reclassifications 1.3 0.3 1.6 Amounts reclassified from accumulated other comprehensive loss — (0.1) (0.1) Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) ______________ 1. See Note 15 for more information. Reclassifications of accumulated other comprehensive loss The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated statement of operations for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated Statements of Income (in Millions) Year ended December 31, 2021 Year ended December 31, 2019 Derivative instruments Foreign currency contracts $ (0.1) $ 1.3 Costs of sales Total before tax (0.1) 1.3 — (0.1) Provision for income taxes Amount included in net income $ (0.1) $ 1.2 Total reclassifications for the period $ (0.1) $ 1.2 Amount included in net income ____________________ 1. Amounts in parentheses indicate charges to the consolidated statement of operations. No amounts were reclassified for the year ended December 31, 2020. Provision for income taxes was less than $0.1 million for the year ended December 31, 2021. Dividends |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share Earnings/(loss) 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, restricted stock units and 2025 Notes. Diluted earnings/(loss) 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. We use the if-converted method when calculating the potential dilutive effect of our 2025 Notes. Earnings/(loss) 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 Per Share Data) Year Ended December 31, 2021 2020 (1) 2019 Numerator: Net income/(loss) $ 0.6 $ (16.3) $ 50.2 Adjustment for interest on 2025 Notes, net of tax (2) 0.2 — — Net income/(loss) after assumed conversion of 2025 Notes $ 0.8 $ (16.3) $ 50.2 Denominator: Weighted average common shares outstanding - basic 154.7 146.2 146.0 Dilutive share equivalents from share-based plans 1.5 — 0.4 Dilutive share equivalents from 2025 Notes 28.1 — — Weighted average common shares outstanding - diluted 184.3 146.2 146.4 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ — $ (0.11) $ 0.34 Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ — $ (0.11) $ 0.34 _______________________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. 2. For the years ended December 31, 2021 and 2020, $11.4 million and $5.7 million of interest for the 2025 Notes was capitalized, respectively. The following table presents weighted average share equivalents associated with share-based plans and the 2025 Notes that were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The 2025 Notes are further discussed in Note 11. (in Millions) Year Ended December 31, 2021 2020 2019 Share equivalents from share-based plans — 0.7 — Share equivalents from 2025 Notes — 14.6 — Total antidilutive weighted average share equivalents — 15.3 — Anti-dilutive stock options |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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, trade payables, derivatives and amounts included in 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. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 - Unobservable inputs for the asset or liability. The estimated fair value and the carrying amount of debt was $796.0 million and $240.4 million, respectively, as of December 31, 2021. Our 2025 Notes are classified as Level 2 in the fair value hierarchy. 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 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 Loss ("AOCL") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of December 31, 2021, we had open foreign currency forward contracts in AOCL in a net after-tax gain position of $0.2 million designated as cash flow hedges of underlying forecasted sales and purchases. As of December 31, 2021 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $18.1 million . Less than $0.2 million of net after-tax gain, representing open foreign currency exchange contracts, will be realized in earnings during the twelve months ending December 31, 2022 i f spot rates in the future are consistent with market rates as of December 31, 2021. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the consolidated statements of operations. 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 $102.8 million as of December 31, 2021. Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company had no open derivative cash flow hedge contracts as of December 31, 2020. December 31, 2021 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.2 Total derivative assets 0.2 Net derivative assets $ 0.2 ______________________ 1. Balance is included in “Prepaid and other current assets” in the consolidated balance sheets. The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. The Company had no open derivative cash flow hedge contracts as of December 31, 2020 and 2019. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2020 $ — Unrealized hedging gains, net of tax $ 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.1) Total derivative instrument impact on comprehensive loss, net of tax 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2021 $ 0.2 ____________________ 1. Amounts are included in “Cost of sales” on the consolidated statement of operations. Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2021 2020 2019 Foreign Exchange contracts Cost of sales (2) $ (2.4) $ (1.7) $ (1.2) Total $ (2.4) $ (1.7) $ (1.2) ____________________ 1. Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 2. A loss of $0.4 million, loss of $0.1 million, and gain of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the years ended December 31, 2021, 2020 and 2019, respectively. Fair-Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair-Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2021 and 2020. (in Millions) December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.4 $ 3.4 $ — $ — Total Assets $ 3.4 $ 3.4 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.9 $ 5.9 $ — $ — Total Liabilities $ 5.9 $ 5.9 $ — $ — (in Millions) December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 2.6 $ 2.6 $ — $ — Total Assets $ 2.6 $ 2.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 4.5 $ 4.5 $ — $ — Total Liabilities $ 4.5 $ 4.5 $ — $ — ____________________ 1. Balance is included in “Other assets” in the consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.6 million and $1.0 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020, respectively, with a corresponding offset to the deferred compensation plan obligation in the consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the consolidated balance sheets. 3. See the Fair Value of Derivative Instruments table within this Note for classifications on our consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, and Contingencies | Commitments and Contingencies Commitments Leases All of our leases are operating leases as of December 31, 2021. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of 2 years to 15 years. Disclosures about our leases under ASC 842 are summarized in the table below. Year ended December 31, (in Millions) 2021 2020 2019 Lease Cost Operating lease cost (1) $ 1.2 $ 2.2 $ 2.2 Short-term lease cost (2) 0.9 0.5 — Variable lease cost (1) 0.1 0.2 0.2 Sublease income — — (0.3) Total lease cost (1) $ 2.2 $ 2.9 $ 2.1 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 1.8 $ 2.1 $ 1.6 ____________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our consolidated statements of operations. 2. The year ended December 31, 2021 includes $0.6 million for our corporate headquarters office space sublease with FMC, which terminated in the first quarter of 2021. As of December 31, 2021, our operating leases had a weighted average remaining lease term of 8.3 years and a weighted average discount rate of 4.9%. 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 2022 $ 1.4 2023 1.2 2024 1.1 2025 1.1 2026 0.2 Thereafter 2.9 Total future minimum lease payments 7.9 Less: Imputed interest (1.4) Total $ 6.5 In the first quarter of 2021, we notified FMC of the termination of, effective July 31, 2021, our existing sublease with FMC for approximately twenty-five thousand square feet of office space used for our corporate headquarters in Philadelphia, Pennsylvania and removed the related right-of-use ("ROU") asset and lease liability of approximately $10.9 million from our consolidated balance sheets. On April 13, 2021 we executed a new five-year sublease agreement with a different counterparty for approximately thirteen thousand square feet of office space for our new corporate headquarters in Philadelphia, Pennsylvania and recorded a $2.1 million ROU asset and lease liability in the second quarter of 2021 related thereto. 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 As previously reported, in May 2019, purported stockholders of the Company (the "plaintiffs") filed putative class action complaints against the Company and certain other parties (the "defendants") in federal and state courts arising out of the Company's October 2018 IPO. The Company agreed to defend and indemnify FMC with regard to these cases. On October 28, 2020, defendants entered into a stipulation of settlement with the state court plaintiffs in which the Company, on behalf of defendants, paid $7.4 million to resolve all claims related to the IPO. On October 29, 2020, the state court plaintiffs filed a motion seeking preliminary approval of the settlement. The court approved the settlement following a hearing on April 15, 2021 and a final order was issued on April 26, 2021. The settlement resolved all pending litigation relating to the IPO, including the claims in both the state and federal actions. The plaintiffs dismissed their appeal in the federal court on April 30, 2021 with prejudice in light of the settlement. Nemaska arrangement As previously reported, in October 2016, we entered into a long-term supply agreement (the “Agreement”) with Nemaska. 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). On December 22, 2019, Nemaska, Nemaska Lithium Inc. and certain affiliates filed for creditor protection in Canada under the Companies’ Creditors Arrangement Act (the "CCAA") in the Superior Court of Québec (the “CCAA Court”). On May 29, 2020, we filed the Application with the CCAA Court to obtain remittance of U.S. $20 million held in escrow by a third party for the benefit of Livent (the “Escrow Funds”), composed of: (i) U.S. $10 million corresponding to the reimbursement of a payment made by Livent under the Agreement and (ii) U.S. $10 million corresponding to a termination penalty under the Agreement. On June 22, 2020, we acknowledged the termination of the Agreement, withdrew our arbitration claims with prejudice, and requested the remittance of the Escrow Funds. On August 24, 2020, Nemaska Lithium Inc. announced that it had accepted a sale proposal structured as a credit bid under the CCAA from a group made up of Orion Mine Finance, Investissement Québec and The Pallinghurst Group (The Pallinghurst Group acting through a new entity named Québec Lithium Partners; the "Nemaska Transaction"). In connection with the consummation of the Nemaska Transaction, Livent agreed to settle its claims against Nemaska Lithium Inc. and agreed to withdraw the Application before the CCAA Court in exchange for payment of an agreed upon portion of the Escrow Funds (subject to the final determination of any appeals). On October 15, 2020, the Nemaska Transaction was approved by the CCAA Court pursuant to an approval and vesting order. The Supreme Court of Canada dismissed two appeals of this order by judgments dated April 29, 2021. The approval of the Nemaska Transaction is now final and executory. Livent has entered into an agreement with The Pallinghurst Group relating to Québec Lithium Partners (a joint venture owned equally by The Pallinghurst Group and Livent) and the conduct of certain business operations previously conducted solely by Nemaska Lithium Inc. for the development a fully integrated lithium chemical asset located in Québec, Canada that is not yet in commercial production (the "Nemaska Project"). Livent indirectly owns a 25% equity interest in the Nemaska Project through its investment in Québec Lithium Partners. Argentine Customs Authority |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated balance sheets: (in Millions) December 31, 2021 2020 Prepaid and other current assets Tax related items $ 17.7 $ 15.7 Argentina government receivable (1) 13.3 10.8 Prepaid expenses 12.2 8.2 Other receivables 2.3 8.6 Derivative assets (Note 15) 0.2 — Bank Acceptance Drafts (2) — 0.2 Other current assets (3) 9.6 12.8 Total $ 55.3 $ 56.3 (in Millions) December 31, 2021 2020 Other assets Argentina government receivable (1) $ 55.8 $ 55.8 Advance to contract manufacturers (4) 16.0 16.3 Long-term raw materials inventory 4.9 — Capitalized software, net 1.5 1.8 Tax related items 1.3 2.7 Other long-term assets 11.4 11.8 Total $ 90.9 $ 88.4 ____________________ 1. We have various subsidiaries that conduct business within Argentina. At December 31, 2021 and 2020, $38.4 million and $39.5 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. December 31, 2020 balance includes a $5.4 million receivable for insurance reimbursement related to the IPO litigation settlement which was netted with the IPO litigation settlement accrual in "Restructuring and other" in the consolidated statement of operations (see Note 8 and Note 16 for details). 4. We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. (in Millions) December 31, 2021 2020 Accrued and other current liabilities Accrued payroll $ 17.1 $ 12.5 Accrued investment in unconsolidated affiliate 6.2 — Restructuring reserves 3.2 3.2 Retirement liability - 401K 2.5 2.6 Environmental reserves, current 0.5 0.6 Severance — 2.5 Other accrued and other current liabilities (1) 32.3 15.3 Total $ 61.8 $ 36.7 (in Millions) December 31, 2021 2020 Other long-term liabilities Deferred compensation plan obligation $ 5.9 $ 4.5 Contingencies related to uncertain tax positions (2) 2.3 3.4 Self insurance reserves 1.5 1.5 Asset retirement obligations 0.3 0.3 Accrued investment in unconsolidated affiliate — 6.2 Other long-term liabilities 1.7 1.3 Total $ 11.7 $ 17.2 ____________________ 1. December 31, 2020 includes a $7.4 million settlement accrual related to IPO litigation . See Note 16 for details about IPO litigation settlement. 2021 and 2020 amounts include accrued capital expenditures related to our expansion projects. 2. As of December 31, 2021, we have recorded a liability for uncertain tax positions of $1.9 million and a $0.4 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) On January 1, 2021, the Company elected to early adopt new accounting guidance ASU 2020-06 which simplifies the accounting for convertible debt instruments. The Company elected the full retrospective method of adoption; that is, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in our consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. Our 2025 Notes are now reported as a single liability instrument net of transaction costs with an interest rate closer to the coupon interest rate. The amounts below in the comparative quarterly financial information of the prior year have been adjusted to apply the new method retrospectively. See Note 11 for more information. (in Millions, Except Per Share Data) 2021 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Revenue $ 91.7 $ 102.2 $ 103.6 $ 122.9 $ 68.5 $ 64.9 $ 72.6 $ 82.2 Gross margin $ 13.3 $ 20.4 $ 18.3 $ 36.4 $ 14.6 $ 10.2 $ 2.8 $ 9.2 Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates, and interest expense, net $ 1.7 $ 5.4 $ 3.8 $ 18.8 $ (2.1) $ (1.9) $ (13.2) $ (3.9) Interest expense, net $ 0.3 $ — $ — $ — $ — $ — $ 0.3 $ — Income tax expense/(benefit) $ 0.9 $ (2.5) $ 15.4 $ 9.5 $ (0.3) $ (2.0) $ (3.1) $ (0.3) Net (loss)/income $ (0.8) $ 6.5 $ (12.6) $ 7.5 $ (1.9) $ (0.2) $ (10.5) $ (3.7) Net loss/(income) per weighted average share - basic (1) $ (0.01) $ 0.04 $ (0.08) $ 0.05 $ (0.01) $ — $ (0.07) $ (0.03) Net loss/(income) per weighted average share - diluted (1) $ (0.01) $ 0.03 $ (0.08) $ 0.04 $ (0.01) $ — $ (0.07) $ (0.03) Weighted average common shares outstanding: Basic 146.5 148.7 161.6 161.7 146.1 146.2 146.3 146.3 Diluted 146.5 178.0 161.6 191.6 146.1 146.2 146.3 146.3 ____________________ 1. The sum of quarterly earnings per common share may differ from the full-year amount. |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of consolidation | Basis of presentation and principles of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. |
Earnings per share | Earnings per share. The weighted average common shares outstanding for both basic and diluted earnings per share for all periods presented was calculated, in accordance with ASC 260, Earnings Per Share. |
Estimates and assumptions | Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. |
Cash equivalents | Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Trade receivables, net of allowance | Trade receivables, net of allowance . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. |
Inventories | Inventories . Inventories are stated at the lower of cost or net realizable value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All inventories are determined on a first-in, first-out (“FIFO”) basis. |
Property, plant and equipment | Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is calculated principally on a straight-line basis over the estimated useful lives of the assets. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. We periodically evaluate whether events or circumstances indicate that the net book value of our property, plant and equipment may not be recoverable. |
Capitalized interest | Capitalized interest . For the years ended December 31, 2021, 2020 and 2019 we capitalized interest expense of $15.4 million, $12.0 million and $5.7 million, respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. |
Impairments of long-lived assets | Impairments of long-lived assets. We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Asset retirement obligations | Asset retirement obligations . We record asset retirement obligations (“AROs”) at present value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its estimated fair value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. |
Deferred compensation plan | Deferred compensation plan. We have established a trust fund administered by a third party to provide funding for benefits payable under the Livent Non-qualified Saving Plan ("Livent NQSP") to which highly compensated Livent employees can elect to defer part of their compensation. The assets held in the trust consist of money market investments, a managed portfolio of equity securities and Livent common stock. For each reporting period, the Company records a net mark-to-market adjustment to Selling, general and administrative expense in our consolidated statements of operations for the investments in the trust fund and the corresponding obligation to participants in the Livent NQSP. The money market investments and equity securities assets are included in Other assets in the accompanying consolidated balance sheets. The investments in Livent common stock under the Livent NQSP are included in Treasury stock on our consolidated balance sheets |
4.125% Convertible Senior Notes due 2025 (the "2025 Notes") | 4.125% Convertible Senior Notes due 2025 (the “2025 Notes”). We account for our 2025 Notes under Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which we early adopted January 1, 2021 under the full retrospective method. See Note 11 and Note 14 for details. |
Financial instruments | Financial instruments. Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, derivatives and amounts included in accruals meeting the definition of financial instruments. Trade receivables and trade payables are recorded at cost, which approximates fair value due to the short-term nature of the instruments. Investments held in trust are for the Livent NQSP as discussed in "Deferred compensation plan" subsection above. Livent enters into derivative contracts to hedge exposures and the associated assets or liabilities are recorded in our consolidated balance sheets and the gains or losses associated with these transactions are included in the consolidated statements of operations. |
Equity method investments | Equity method investments. Livent has entered into agreements with The Pallinghurst Group relating to Quebec Lithium Partners ("QLP"), a joint venture owned equally by The Pallinghurst Group and Livent, and the conduct of certain business operations and oversight previously conducted by Nemaska Lithium Inc. The Company accounts for the investment in QLP as an equity method investment included in Investments in our consolidated balance sheets. |
Leases | Leases. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. |
Restructuring and other charges | Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. |
Finite-lived intangible assets | Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. |
Revenue recognition | Revenue recognition. Revenue from product sales is recognized when 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. 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 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 title and risk and the shipping terms of the contract. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as distribution costs. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Variable Consideration As a part of our customary business practice, we may offer sales incentives to our customers, such as volume discounts or rebates. Variable consideration given can differ by product. For all such contracts that include any variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Although determining the transaction price requires significant judgment, we have significant historical experience with incentives provided to customers and estimating the expected consideration considering historical patterns of incentive payouts. These estimates are re-assessed each reporting period as required. In addition to the variable consideration described above, in certain instances, we may require our customers to meet certain volume thresholds within their contract term. We estimate what amount of variable consideration should be included in the transaction price at contract inception and continually reassesses this estimation each reporting period to determine situations when the minimum volume thresholds will not be met. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. In those circumstances, we apply the guidance on breakage and estimate the amount of the shortfall and recognize it over the remaining performance obligations in the contract. Right of Return We warrant to our customers that our products conform to mutually agreed product specifications. This offering is accounted for as a right of return and the transaction price is adjusted for an estimate of expected returns. Contract asset and contract liability balances |
Research and Development | Research and Development . Research and development costs are expensed as incurred. |
Income and other taxes | Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability as part of the income tax payable in our consolidated balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. |
Segment information | Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. |
Stock-based compensation | Stock-based compensation. Stock-based compensation expense for the three years ended December 31, 2021 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock-based compensation expense as they occur. |
Environmental obligations | Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Where the available information is sufficient to estimate the amount of liability, that estimate has been used. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans (“OM&M”). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves. However, we are unable to reasonably estimate an amount in excess of our recorded reserves because we cannot reasonably estimate the period for which such OM&M plans will need to be in place or the future annual cost of such remediation, as conditions at these environmental sites change over time. Such additional OM&M costs could be significant in total but would be incurred over an extended period of years. |
Foreign currency | Foreign currency. We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ statements of operations are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of sales in our consolidated statements of operations. |
New Accounting guidance and regulatory items and recently adopted accounting guidance | New Accounting guidance and regulatory items In April 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The 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. The FASB also issued ASU No. 2021-01, Reference Rate Reform (Topic 848) . The 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. The amendments in this ASU affect the guidance in ASU No. 2020-04 and are effective for all entities as of March 12, 2020 through December 31, 2022. We do not expect the adoption to have a material impact on our consolidated financial statements. Recently adopted accounting guidance As of January 1, 2021, Livent early adopted Accounting Standards Update No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, when following ASU 2020-06, more convertible debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be closer to the coupon interest rate. ASU 2020-06 also aligns the consistency of diluted Earnings Per Share ("EPS") calculations for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share settlement. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Livent elected to early adopt ASU 2020-06 on January 1, 2021, using the full retrospective method. Prior to adoption, under Accounting Standards Codification 470-20, Debt with Conversion and Other Options ("ASC 470-20"), the Company had separately accounted for the liability and equity components of its 4.125% Convertible Senior Notes Due 2025 (the "2025 Notes"), which may be settled entirely or partially in cash upon conversion, in a manner that reflected the issuer’s economic interest cost. The effect of ASC 470-20 on the accounting for the 2025 Notes was that the equity component was required to be included in the additional paid-in capital section of stockholders’ equity on the consolidated balance sheet, and the value of the equity component was treated as original issue discount for purposes of accounting for the debt component of the 2025 Notes. As a result, prior to the adoption of ASU 2020-06, the Company was required to record a greater amount of non-cash interest expense as a result of the amortization of the discounted carrying value of the 2025 Notes to their face amount over the term of the 2025 Notes. Because the Company intends to settle in cash the principal outstanding under its 2025 Notes, the Company previously could elect to use the treasury stock method when calculating their potential dilutive effect, if any. ASU 2020-06 now requires the Company to use the if-converted method for EPS. For the full retrospective method of adoption, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in the consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. Interest expense, loss from operations before income taxes, income tax benefit, net loss and loss per share were also adjusted in the consolidated statement of operations for the year ended December 31, 2020. Non-cash adjustments to reconcile net loss to cash provided by operating activities, including deferred income taxes and deferred financing fee amortization were also adjusted in the consolidated statement of cash flows for the year ended December 31, 2020. See Note 11 and Note 14 for further details. In December 2019, the 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. The adoption did not have a material impact on our consolidated financial statements. |
Principal Accounting Policies_3
Principal Accounting Policies and Related Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Property, plant and equipment consisted of the following: December 31, (in Millions) 2021 2020 Land and land improvements $ 85.8 $ 85.8 Buildings 84.4 83.0 Machinery and equipment 330.2 314.9 Construction in progress 420.5 284.0 Total cost $ 920.9 $ 767.7 Accumulated depreciation (243.0) (222.4) Property, plant and equipment, net $ 677.9 $ 545.3 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2021 2020 2019 North America (1) (2) $ 61.4 $ 53.3 $ 76.2 Latin America — 0.2 1.0 Europe, Middle East & Africa 62.2 49.2 59.0 Asia Pacific (1) (2) 296.8 185.5 252.2 Total Revenue $ 420.4 $ 288.2 $ 388.4 ____________________ 1. In 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., South Korea and China. Sales for the year ended December 31, 2021 for Japan, the U.S., South Korea and China totaled $75.1 million, $59.9 million, $43.6 million and $160 million, respectively. S ales for the year ended December 31, 2020 for Japan, the U.S. and China totaled $97.7 million, $52.6 million and $55.3 million, respectively, and sales for the year ended December 31, 2019 totaled $160.4 million, $75.2 million and $53.2 million, respectively. 2. In the fourth quarter of 2021, we reclassified certain revenue from the nine months ended September 30, 2021 from North America to Asia Pacific to present revenue based on product destination. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2021 2020 2019 Lithium Hydroxide $ 208.0 $ 157.5 $ 213.8 Butyllithium 105.4 87.1 99.9 High Purity Lithium Metal and Other Specialty Compounds 36.9 31.7 52.4 Lithium Carbonate and Lithium Chloride 70.1 11.9 22.3 Total Revenue $ 420.4 $ 288.2 $ 388.4 |
Receivables and Contract Liabilities | The following table presents the opening and closing balances of our receivables, net of allowances from contracts with customers. Balance as of (in Millions) December 31, 2021 December 31, 2020 Increase Receivables from contracts with customers, net of allowances $ 96.4 $ 76.3 $ 20.1 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, (in Millions) 2021 2020 Finished goods $ 52.2 $ 36.1 Semi-finished goods 43.6 46.2 Raw materials, supplies, and other 38.8 23.3 FIFO inventory, net $ 134.6 $ 105.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Property, plant and equipment consisted of the following: December 31, (in Millions) 2021 2020 Land and land improvements $ 85.8 $ 85.8 Buildings 84.4 83.0 Machinery and equipment 330.2 314.9 Construction in progress 420.5 284.0 Total cost $ 920.9 $ 767.7 Accumulated depreciation (243.0) (222.4) Property, plant and equipment, net $ 677.9 $ 545.3 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows total restructuring and other charges included in the consolidated statements of operations: Year Ended December 31, (in Millions) 2021 2020 2019 Restructuring charges: Severance-related and exit costs (1) $ 0.2 $ 6.2 $ — Other charges: Corporate severance-related costs (2) — — 3.5 Environmental remediation (3) (0.3) 0.1 0.9 Other (4) 3.9 4.4 1.8 Total restructuring and other charges $ 3.8 $ 10.7 $ 6.2 ___________________ 1. The years ended December 31, 2021 and 2020 include severance costs for management changes at certain operating and administrative facilities. Additionally, December 31, 2020 includes exit costs of $1.6 million for the closing of leased office space. 2. The year ended December 31, 2019 represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. 3. Represents costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 9 for more details. 4. The year ended December 31, 2021 consists primarily of transaction-related legal fees and miscellaneous nonrecurring transactions. The years ended December 31, 2020 and 2019 include legal fees related to IPO securities litigation, including $2.0 million accrued as of December 31, 2020, for the IPO securities litigation settlement, net of insurance reimbursement. See Note 16 for more details. |
Environmental Obligations (Tabl
Environmental Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Reserves | The table below is a roll forward of our total environmental reserves. (in Millions) Environmental Reserves Total Balance December 31, 2020 $ 6.7 Change in reserves (0.3) Cash payments (0.3) Balance December 31, 2021 $ 6.1 |
Schedule of Accrual for Environmental Contingencies | The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2021 2020 Environmental reserves, current (1) $ 0.5 $ 0.6 Environmental reserves, long-term (2) 5.6 6.1 Total environmental reserves $ 6.1 $ 6.7 ______________ 1. These amounts are included within “Accrued and other liabilities” on the consolidated balance sheets. 2. These amounts are included in "Environmental liabilities" on the consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Domestic and foreign components of income/(loss) from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 Domestic $ (15.2) $ (19.7) $ 9.9 Foreign 39.1 (2.3) 47.9 Total $ 23.9 $ (22.0) $ 57.8 __________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes attributable to income/(loss) from operations consisted of: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 Current: Federal (2) $ 1.7 $ (1.9) $ 3.5 Foreign 2.6 4.6 7.4 State — — 0.1 Total current $ 4.3 $ 2.7 $ 11.0 Deferred: Federal $ 1.3 $ (0.9) $ 1.2 Foreign 17.7 (7.4) (4.8) State — (0.1) 0.2 Total deferred 19.0 (8.4) (3.4) Total $ 23.3 $ (5.7) $ 7.6 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate applicable to income/(loss) from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2021 2020 (1) 2019 U.S. Federal statutory rate $ 5.1 $ (4.6) $ 12.1 Foreign earnings subject to different tax rates (1.2) 0.6 (3.6) Foreign derived intangible income (0.7) — (1.1) State and local income taxes, less federal income tax benefit — (0.1) 0.3 Tax on intercompany dividends and deemed dividends for tax purposes 3.8 0.1 4.4 Changes to unrecognized tax benefits (0.9) 2.1 0.6 Other permanent items (0.9) (0.2) (0.8) Change in valuation allowance 4.4 0.3 0.3 Exchange gains and losses (2) 12.7 (5.9) (1.8) Withholding taxes net of credits 0.8 1.1 — Other (3) 0.2 0.9 (2.8) Total tax provision/(benefit) $ 23.3 $ (5.7) $ 7.6 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. 2. Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. Additionally, the year ended December 31, 2021 includes an adjustment relating to inflation of $22.1 million. 3. The year ended December 31, 2019 includes a $3.2 million tax benefit due to revisions to our tax liabilities upon completion of prior year tax returns. |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2021 2020 (1) Environmental and restructuring $ 0.4 $ 1.4 Net operating loss carry-forwards and credits 5.7 15.3 Other assets and reserves 7.9 5.1 Deferred tax assets $ 14.0 $ 21.8 Valuation allowance, net (6.4) (3.6) Deferred tax assets, net of valuation allowance $ 7.6 $ 18.2 Property, plant and equipment, net (19.0) (10.2) Other liabilities (0.4) (0.2) Deferred tax liabilities (19.4) (10.4) Net deferred tax (liabilities)/assets $ (11.8) $ 7.8 ____________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2021 2020 2019 Balance at beginning of year $ 2.7 $ 2.4 $ 2.6 Increases related to positions taken in the current year — 0.7 0.9 Decreases related to positions taken in prior years (1.6) — — Increases related to positions taken in prior years 1.9 — — Decreases related to lapse of statutes of limitations (0.1) (0.4) (1.1) Balance at end of year $ 2.9 $ 2.7 $ 2.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: Interest Rate Percentage Maturity December 31, 2021 December 31, 2020 (1) (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (2) 2.35% 4.5% 2023 $ — $ 35.6 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (5.4) (6.8) Total long-term debt (3) $ 240.4 $ 274.6 ______________________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. 2. As of December 31, 2021 and December 31, 2020, there were $14.5 million and $14.4 million, respectively, in letters of credit outstanding under our Revolving Credit Facility and $385.5 million and $275.0 million available funds as of December 31, 2021 and December 31, 2020, respectively. Fund availability is subject to the Company meeting its debt covenants. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The comparative financial statements of prior years have been adjusted to apply the adopted guidance retrospectively. Statement of operations (in Millions, except per share amounts) Year ended December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Interest expense/(income) $ 7.3 $ 0.3 $ (7.0) Income from operations before income taxes 16.9 23.9 7.0 Income tax expense 21.7 23.3 1.6 Net (loss)/income $ (4.8) $ 0.6 $ 5.4 Net (loss)/income per weighted average share - basic $ (0.03) $ — $ 0.03 Net (loss)/income per weighted average share - diluted $ (0.03) $ — $ 0.03 Year ended December 31, 2020 As originally reported As adjusted Effect of change Interest expense/(income) $ 3.7 $ 0.3 $ (3.4) (Loss)/income from operations before income taxes (25.4) (22.0) 3.4 Income tax (benefit)/expense (6.5) (5.7) 0.8 Net (loss)/income $ (18.9) $ (16.3) $ 2.6 Net (loss)/income per weighted average share - basic and diluted $ (0.13) $ (0.11) $ 0.02 Balance Sheet (in Millions, except per share amounts) December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Deferred income taxes $ 19.3 12.7 $ (6.6) Long-term debt 209.6 240.4 30.8 Total liabilities $ 228.9 $ 253.1 $ 24.2 Common stock, $0.001 per share par value 0.1 0.1 — Capital in excess of par value of common stock 810.3 778.1 (32.2) Retained earnings 52.9 60.9 8.0 Accumulated other comprehensive loss (42.9) (42.9) — Treasury stock (0.8) (0.8) — Total equity 819.6 795.4 (24.2) Total liabilities and equity $ 1,048.5 $ 1,048.5 $ — December 31, 2020 As originally reported As adjusted Effect of change Deferred income taxes $ 13.9 $ 5.6 $ (8.3) Long-term debt 236.7 274.6 37.9 Total liabilities $ 250.6 $ 280.2 $ 29.6 Common stock, $0.001 per share par value 0.1 0.1 — Capital in excess of par value of common stock 553.1 520.9 (32.2) Retained earnings 57.7 60.3 2.6 Accumulated other comprehensive loss (44.4) (44.4) — Treasury stock, common, at cost (0.7) (0.7) — Total equity 565.8 536.2 (29.6) Total liabilities and equity $ 816.4 $ 816.4 $ — Statement of cash flows (in Millions) Year ended December 31, 2021 As computed under ASC 470-20 As reported under ASU 2020-06 Effect of change Net (loss)/income $ (4.8) $ 0.6 $ 5.4 Adjustments to reconcile net (loss)/income to cash provided by operating activities: Deferred income taxes 10.9 12.5 1.6 Deferred financing fee amortization 7.3 0.3 (7.0) Net cash provided by operating activities 13.4 13.4 — Net increase in cash and cash equivalents 101.4 101.4 — Cash and cash equivalents, beginning of period 11.6 11.6 — Cash and cash equivalents, end of period $ 113.0 $ 113.0 $ — Year ended December 31, 2020 As originally reported As adjusted Effect of change Net (loss)/income $ (18.9) $ (16.3) $ 2.6 Adjustments to reconcile net (loss)/income to cash used in operating activities: Deferred income taxes (7.1) (6.3) 0.8 Deferred financing fee amortization 4.1 0.7 (3.4) Net cash used in operating activities (21.9) (21.9) — Net decrease in cash and cash equivalents (5.2) (5.2) — Cash and cash equivalents, beginning of period 16.8 16.8 — Cash and cash equivalents, end of period $ 11.6 $ 11.6 $ — |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2021 2020 2019 Stock Option Expense, net of taxes of $0.3, $0.2 and $0.4 $ 1.6 $ 1.1 $ 1.7 Restricted Stock Expense, net of taxes of $0.6, $0.5 and $0.8 2.9 2.6 2.8 Total Stock Compensation Expense, net of taxes of $0.9, $0.7 and $1.2 (1) $ 4.5 $ 3.7 $ 4.5 ____________________ |
Black Scholes Valuation Assumptions for Stock Option Grants | The following table contains Black Scholes valuation assumptions for stock option granted for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Expected dividend yield —% —% —% Expected volatility 27.0% 20.2% - 20.7% 20.1% - 21.0% Expected life (in years) 6.5 6.5 6.5 Risk-free interest rate 0.81% 1.20% - 1.73% 1.86% - 2.55% |
Summary of Stock Option Activity | The following table shows stock option activity, for the year ended December 31, 2021: Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding as of December 31, 2020 1,725,494 6.2 years $ 12.45 $ 11.0 Granted 542,760 $ 20.35 Exercised (109,578) $ 13.56 $ 1.2 Forfeited (24,245) $ 15.09 Outstanding as of December 31, 2021 2,134,431 6.4 years $ 14.37 $ 21.4 Exercisable as of December 31, 2021 930,390 4.6 years $ 11.64 $ 11.9 |
Summary of Restricted Award Activity | The following table shows RSU activity for the year ended December 31, 2021: Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2020 687,006 $ 11.50 $ 12.9 Granted 274,408 $ 20.12 Vested (233,130) $ 13.70 Forfeited (11,846) $ 14.78 Nonvested as of December 31, 2021 716,438 $ 14.03 $ 17.5 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table reflects the changes in Livent's common shares issued and outstanding for each period presented: Issued Treasury Outstanding Balance as of December 31, 2019 146,085,696 (104,012) 145,981,684 RSU awards 256,161 — 256,161 Stock option awards 119,392 — 119,392 Net sales of treasury stock - deferred compensation plan — 4,744 4,744 Balance as of December 31, 2020 146,461,249 (99,268) 146,361,981 RSU awards 270,775 — 270,775 Stock option awards 109,578 — 109,578 Net purchases of treasury stock - deferred compensation plan — (2,350) (2,350) Issuance of common stock 14,950,000 — 14,950,000 Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Summarized below is the roll forward of accumulated other comprehensive loss, net of tax. (in Millions) Foreign currency adjustments Derivative Instruments (1) Total Accumulated other comprehensive loss, net of tax as of December 31, 2019 $ (48.3) $ — $ (48.3) Other comprehensive income before reclassifications 3.9 — 3.9 Accumulated other comprehensive loss, net of tax as of December 31, 2020 $ (44.4) $ — $ (44.4) Other comprehensive income before reclassifications 1.3 0.3 1.6 Amounts reclassified from accumulated other comprehensive loss — (0.1) (0.1) Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) ______________ 1. See Note 15 for more information. |
Reclassifications of Accumulated Other Comprehensive Income | The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated statement of operations for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated Statements of Income (in Millions) Year ended December 31, 2021 Year ended December 31, 2019 Derivative instruments Foreign currency contracts $ (0.1) $ 1.3 Costs of sales Total before tax (0.1) 1.3 — (0.1) Provision for income taxes Amount included in net income $ (0.1) $ 1.2 Total reclassifications for the period $ (0.1) $ 1.2 Amount included in net income ____________________ 1. Amounts in parentheses indicate charges to the consolidated statement of operations. No amounts were reclassified for the year ended December 31, 2020. Provision for income taxes was less than $0.1 million for the year ended December 31, 2021. |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | arnings/(loss) 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 Per Share Data) Year Ended December 31, 2021 2020 (1) 2019 Numerator: Net income/(loss) $ 0.6 $ (16.3) $ 50.2 Adjustment for interest on 2025 Notes, net of tax (2) 0.2 — — Net income/(loss) after assumed conversion of 2025 Notes $ 0.8 $ (16.3) $ 50.2 Denominator: Weighted average common shares outstanding - basic 154.7 146.2 146.0 Dilutive share equivalents from share-based plans 1.5 — 0.4 Dilutive share equivalents from 2025 Notes 28.1 — — Weighted average common shares outstanding - diluted 184.3 146.2 146.4 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ — $ (0.11) $ 0.34 Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ — $ (0.11) $ 0.34 _______________________________ 1. As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents weighted average share equivalents associated with share-based plans and the 2025 Notes that were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The 2025 Notes are further discussed in Note 11. (in Millions) Year Ended December 31, 2021 2020 2019 Share equivalents from share-based plans — 0.7 — Share equivalents from 2025 Notes — 14.6 — Total antidilutive weighted average share equivalents — 15.3 — |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instrument Valuation Methods | 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. |
Schedule of Derivative Instruments Fair Value and Balance Sheet Presentation | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company had no open derivative cash flow hedge contracts as of December 31, 2020. December 31, 2021 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.2 Total derivative assets 0.2 Net derivative assets $ 0.2 ______________________ |
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. The Company had no open derivative cash flow hedge contracts as of December 31, 2020 and 2019. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2020 $ — Unrealized hedging gains, net of tax $ 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.1) Total derivative instrument impact on comprehensive loss, net of tax 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2021 $ 0.2 ____________________ 1. Amounts are included in “Cost of sales” on the consolidated statement of operations. |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2021 2020 2019 Foreign Exchange contracts Cost of sales (2) $ (2.4) $ (1.7) $ (1.2) Total $ (2.4) $ (1.7) $ (1.2) ____________________ 1. Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 2. A loss of $0.4 million, loss of $0.1 million, and gain of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the years ended December 31, 2021, 2020 and 2019, respectively. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2021 and 2020. (in Millions) December 31, 2021 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.4 $ 3.4 $ — $ — Total Assets $ 3.4 $ 3.4 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.9 $ 5.9 $ — $ — Total Liabilities $ 5.9 $ 5.9 $ — $ — (in Millions) December 31, 2020 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 2.6 $ 2.6 $ — $ — Total Assets $ 2.6 $ 2.6 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 4.5 $ 4.5 $ — $ — Total Liabilities $ 4.5 $ 4.5 $ — $ — ____________________ 1. Balance is included in “Other assets” in the consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.6 million and $1.0 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the consolidated statements of operations for the years ended December 31, 2021 and December 31, 2020, respectively, with a corresponding offset to the deferred compensation plan obligation in the consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the consolidated balance sheets. 3. See the Fair Value of Derivative Instruments table within this Note for classifications on our consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | isclosures about our leases under ASC 842 are summarized in the table below. Year ended December 31, (in Millions) 2021 2020 2019 Lease Cost Operating lease cost (1) $ 1.2 $ 2.2 $ 2.2 Short-term lease cost (2) 0.9 0.5 — Variable lease cost (1) 0.1 0.2 0.2 Sublease income — — (0.3) Total lease cost (1) $ 2.2 $ 2.9 $ 2.1 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 1.8 $ 2.1 $ 1.6 ____________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our consolidated statements of operations. 2. The year ended December 31, 2021 includes $0.6 million for our corporate headquarters office space sublease with FMC, which terminated in the first quarter of 2021. |
Lessee, Operating Lease, Liability, Maturity | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows 2022 $ 1.4 2023 1.2 2024 1.1 2025 1.1 2026 0.2 Thereafter 2.9 Total future minimum lease payments 7.9 Less: Imputed interest (1.4) Total $ 6.5 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated balance sheets: (in Millions) December 31, 2021 2020 Prepaid and other current assets Tax related items $ 17.7 $ 15.7 Argentina government receivable (1) 13.3 10.8 Prepaid expenses 12.2 8.2 Other receivables 2.3 8.6 Derivative assets (Note 15) 0.2 — Bank Acceptance Drafts (2) — 0.2 Other current assets (3) 9.6 12.8 Total $ 55.3 $ 56.3 (in Millions) December 31, 2021 2020 Other assets Argentina government receivable (1) $ 55.8 $ 55.8 Advance to contract manufacturers (4) 16.0 16.3 Long-term raw materials inventory 4.9 — Capitalized software, net 1.5 1.8 Tax related items 1.3 2.7 Other long-term assets 11.4 11.8 Total $ 90.9 $ 88.4 ____________________ 1. We have various subsidiaries that conduct business within Argentina. At December 31, 2021 and 2020, $38.4 million and $39.5 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. December 31, 2020 balance includes a $5.4 million receivable for insurance reimbursement related to the IPO litigation settlement which was netted with the IPO litigation settlement accrual in "Restructuring and other" in the consolidated statement of operations (see Note 8 and Note 16 for details). 4. We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. |
Schedule of Other Liabilities | (in Millions) December 31, 2021 2020 Accrued and other current liabilities Accrued payroll $ 17.1 $ 12.5 Accrued investment in unconsolidated affiliate 6.2 — Restructuring reserves 3.2 3.2 Retirement liability - 401K 2.5 2.6 Environmental reserves, current 0.5 0.6 Severance — 2.5 Other accrued and other current liabilities (1) 32.3 15.3 Total $ 61.8 $ 36.7 (in Millions) December 31, 2021 2020 Other long-term liabilities Deferred compensation plan obligation $ 5.9 $ 4.5 Contingencies related to uncertain tax positions (2) 2.3 3.4 Self insurance reserves 1.5 1.5 Asset retirement obligations 0.3 0.3 Accrued investment in unconsolidated affiliate — 6.2 Other long-term liabilities 1.7 1.3 Total $ 11.7 $ 17.2 ____________________ 1. December 31, 2020 includes a $7.4 million settlement accrual related to IPO litigation . See Note 16 for details about IPO litigation settlement. 2021 and 2020 amounts include accrued capital expenditures related to our expansion projects. 2. As of December 31, 2021, we have recorded a liability for uncertain tax positions of $1.9 million and a $0.4 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The amounts below in the comparative quarterly financial information of the prior year have been adjusted to apply the new method retrospectively. See Note 11 for more information. (in Millions, Except Per Share Data) 2021 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Revenue $ 91.7 $ 102.2 $ 103.6 $ 122.9 $ 68.5 $ 64.9 $ 72.6 $ 82.2 Gross margin $ 13.3 $ 20.4 $ 18.3 $ 36.4 $ 14.6 $ 10.2 $ 2.8 $ 9.2 Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates, and interest expense, net $ 1.7 $ 5.4 $ 3.8 $ 18.8 $ (2.1) $ (1.9) $ (13.2) $ (3.9) Interest expense, net $ 0.3 $ — $ — $ — $ — $ — $ 0.3 $ — Income tax expense/(benefit) $ 0.9 $ (2.5) $ 15.4 $ 9.5 $ (0.3) $ (2.0) $ (3.1) $ (0.3) Net (loss)/income $ (0.8) $ 6.5 $ (12.6) $ 7.5 $ (1.9) $ (0.2) $ (10.5) $ (3.7) Net loss/(income) per weighted average share - basic (1) $ (0.01) $ 0.04 $ (0.08) $ 0.05 $ (0.01) $ — $ (0.07) $ (0.03) Net loss/(income) per weighted average share - diluted (1) $ (0.01) $ 0.03 $ (0.08) $ 0.04 $ (0.01) $ — $ (0.07) $ (0.03) Weighted average common shares outstanding: Basic 146.5 148.7 161.6 161.7 146.1 146.2 146.3 146.3 Diluted 146.5 178.0 161.6 191.6 146.1 146.2 146.3 146.3 ____________________ 1. The sum of quarterly earnings per common share may differ from the full-year amount. |
Principal Accounting Policies_4
Principal Accounting Policies and Related Financial Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)segmentremediationSiteshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Significant Accounting Policies [Line Items] | |||
Allowance for trade receivables | $ 300,000 | $ 400,000 | |
Capitalized interest costs | 15,400,000 | 12,000,000 | $ 5,700,000 |
Asset retirement obligation | $ 300,000 | 300,000 | |
Number of reportable segments | segment | 1 | ||
Number of environmental remediation sites | remediationSite | 1 | ||
Remediation charges | $ (300,000) | 100,000 | 900,000 |
Environmental remediation liability | 6,100,000 | 6,700,000 | |
Foreign currency transaction (losses) gains | $ (10,300,000) | (14,200,000) | $ (14,800,000) |
Derivatives | 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 | ||
Livent Plan | |||
Significant Accounting Policies [Line Items] | |||
Common stock, shares authorized (in shares) | shares | 10,683,837 | ||
Patents | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible assets amortization period (in years) | 15 years | ||
Convertible Debt | |||
Significant Accounting Policies [Line Items] | |||
Capitalized interest costs | $ 11,400,000 | 5,700,000 | |
Debt interest rate | 4.125% | ||
Convertible Senior Notes Due 2025 | Convertible Debt | |||
Significant Accounting Policies [Line Items] | |||
Capitalized interest costs | $ 1,200,000 | $ 500,000 | |
Debt interest rate | 4.125% | ||
Land improvements | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 20 years | ||
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Payment term (in days) | 30 days | ||
Minimum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 20 years | ||
Minimum | Machinery and equipment | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 3 years | ||
Minimum | Software | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Payment term (in days) | 180 days | ||
Maximum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 40 years | ||
Maximum | Machinery and equipment | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 18 years | ||
Maximum | Software | |||
Significant Accounting Policies [Line Items] | |||
Useful life (in years) | 10 years |
Revenue Recognition - Revenue B
Revenue Recognition - Revenue By Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 122.9 | $ 103.6 | $ 102.2 | $ 91.7 | $ 82.2 | $ 72.6 | $ 64.9 | $ 68.5 | $ 420.4 | $ 288.2 | [1] | $ 388.4 |
North America | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 61.4 | 53.3 | 76.2 | |||||||||
Latin America | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 0 | 0.2 | 1 | |||||||||
Europe, Middle East & Africa | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 62.2 | 49.2 | 59 | |||||||||
Asia Pacific | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 296.8 | 185.5 | 252.2 | |||||||||
JAPAN | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 75.1 | 97.7 | 160.4 | |||||||||
UNITED STATES | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 59.9 | 52.6 | 75.2 | |||||||||
CHINA | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 160 | $ 55.3 | $ 53.2 | |||||||||
South Korea | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 43.6 | |||||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment term (in days) | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment term (in days) | 180 days | ||
One Customer | Total Revenue | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 31.00% | 26.00% | 28.00% |
Ten Largest Customers | Total Revenue | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 69.00% | 64.00% | 60.00% |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 122.9 | $ 103.6 | $ 102.2 | $ 91.7 | $ 82.2 | $ 72.6 | $ 64.9 | $ 68.5 | $ 420.4 | $ 288.2 | [1] | $ 388.4 |
Lithium Hydroxide | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 208 | 157.5 | 213.8 | |||||||||
Butyllithium | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 105.4 | 87.1 | 99.9 | |||||||||
High Purity Lithium Metal and Other Specialty Compounds | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | 36.9 | 31.7 | 52.4 | |||||||||
Lithium Carbonate and Lithium Chloride | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Revenue | $ 70.1 | $ 11.9 | $ 22.3 | |||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | [1] | |
Revenue from Contract with Customer [Abstract] | |||
Receivables from contracts with customers, net of allowances | $ 96.4 | $ 76.3 | |
Increase | $ 20.1 | ||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 589 |
Expected timing of satisfaction of performance obligations | 4 years |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 52.2 | $ 36.1 |
Semi-finished goods | 43.6 | 46.2 |
Raw materials, supplies, and other | 38.8 | 23.3 |
FIFO inventory, net | $ 134.6 | $ 105.6 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net loss of unconsolidated affiliates | $ 5.5 | $ 0.5 | [1] | $ 0.8 |
Nemaska Project | Quebec Lithium Partners UK | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity ownership percentage (as a percent) | 50.00% | |||
Quebec Lithium Partners UK | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity ownership percentage (as a percent) | 50.00% | |||
Equity in net loss of unconsolidated affiliates | $ 5.5 | |||
Equity method investments | $ 23.8 | $ 21.2 | ||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Property, Plant and Equipment [Line Items] | ||||
Total cost | $ 920.9 | $ 767.7 | ||
Accumulated depreciation | (243) | (222.4) | ||
Property, plant and equipment, net | 677.9 | 545.3 | [1] | |
Depreciation | 22.9 | 22 | $ 19.1 | |
Land and land improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total cost | 85.8 | 85.8 | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Total cost | 84.4 | 83 | ||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total cost | 330.2 | 314.9 | ||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Total cost | $ 420.5 | $ 284 | ||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring Charges in Consolidated Income (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)site | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Other charges: | |||
Corporate severance-related costs | $ 0 | $ 0 | $ 3.5 |
Environmental remediation | (0.3) | 0.1 | 0.9 |
Other | 3.9 | 4.4 | 1.8 |
Total restructuring and other charges | $ 3.8 | 10.7 | 6.2 |
Exit costs | 1.6 | ||
Number of environmental remediation sites | site | 1 | ||
Nikolov V. Livent Corp | Pending Litigation | |||
Other charges: | |||
Legal fees accrued | $ 2 | ||
Severance-related and exit costs | |||
Restructuring charges: | |||
Restructuring charges | $ 0.2 | $ 6.2 | $ 0 |
Environmental Obligations - Nar
Environmental Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | ||
Accrual for environmental loss contingencies | $ 6.1 | $ 6.7 |
Loss exposure in excess of accrual | $ 3 |
Environmental Obligations - Env
Environmental Obligations - Environmental Reserve Rollforward (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Total environmental reserves, net of recoveries, beginning balance | $ 6.7 |
Change in reserves | (0.3) |
Cash payments | (0.3) |
Total environmental reserves, net of recoveries, ending balance | $ 6.1 |
Environmental Obligations - Res
Environmental Obligations - Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | |||
Environmental reserves, current | $ 0.5 | $ 0.6 | |
Environmental reserves, long-term | 5.6 | 6.1 | [1] |
Total environmental reserves | $ 6.1 | $ 6.7 | |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Income Tax Components (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||
Domestic | $ (15.2) | $ (19.7) | $ 9.9 | |
Foreign | 39.1 | (2.3) | 47.9 | |
Income/(loss) from operations before income taxes | $ 23.9 | $ (22) | [1] | $ 57.8 |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Current: | ||||||||||||
Federal | $ 1.7 | $ (1.9) | $ 3.5 | |||||||||
Foreign | 2.6 | 4.6 | 7.4 | |||||||||
State | 0 | 0 | 0.1 | |||||||||
Total current | 4.3 | 2.7 | 11 | |||||||||
Deferred: | ||||||||||||
Federal | 1.3 | (0.9) | 1.2 | |||||||||
Foreign | 17.7 | (7.4) | (4.8) | |||||||||
State | 0 | (0.1) | 0.2 | |||||||||
Total deferred | 19 | (8.4) | (3.4) | |||||||||
Total | $ 9.5 | $ 15.4 | $ (2.5) | $ 0.9 | $ (0.3) | $ (3.1) | $ (2) | $ (0.3) | $ 23.3 | $ (5.7) | [1] | $ 7.6 |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Tax Disclosure [Abstract] | ||||||||||||
U.S. Federal statutory rate | $ 5.1 | $ (4.6) | $ 12.1 | |||||||||
Foreign earnings subject to different tax rates | (1.2) | 0.6 | (3.6) | |||||||||
Foreign derived intangible income | (0.7) | 0 | (1.1) | |||||||||
State and local income taxes, less federal income tax benefit | 0 | (0.1) | 0.3 | |||||||||
Tax on intercompany dividends and deemed dividends for tax purposes | 3.8 | 0.1 | 4.4 | |||||||||
Changes to unrecognized tax benefits | (0.9) | 2.1 | 0.6 | |||||||||
Other permanent items | (0.9) | (0.2) | (0.8) | |||||||||
Change in valuation allowance | 4.4 | 0.3 | 0.3 | |||||||||
Exchange gains and losses | 12.7 | (5.9) | (1.8) | |||||||||
Withholding taxes net of credits | 0.8 | 1.1 | 0 | |||||||||
Other | 0.2 | 0.9 | (2.8) | |||||||||
Total | $ 9.5 | $ 15.4 | $ (2.5) | $ 0.9 | $ (0.3) | $ (3.1) | $ (2) | $ (0.3) | 23.3 | (5.7) | [1] | $ 7.6 |
Inflation adjustment | $ 22.1 | |||||||||||
Tax benefit due to revisions to our tax liabilities upon completion of prior year tax returns | $ 3.2 | |||||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets, Gross [Abstract] | ||
Environmental and restructuring | $ 0.4 | $ 1.4 |
Net operating loss carry-forwards and credits | 5.7 | 15.3 |
Other assets and reserves | 7.9 | 5.1 |
Deferred tax assets | 14 | 21.8 |
Valuation allowance, net | (6.4) | (3.6) |
Deferred tax assets, net of valuation allowance | 7.6 | 18.2 |
Property, plant and equipment, net | (19) | (10.2) |
Other liabilities | (0.4) | (0.2) |
Deferred tax liabilities | (19.4) | (10.4) |
Net deferred tax (liabilities)/assets | $ (11.8) | |
Net deferred tax (liabilities)/assets | $ 7.8 |
Income Taxes - Uncertain Income
Income Taxes - Uncertain Income Tax Positions (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)jurisdiction | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Tax Contingency [Line Items] | |||
Number of significant foreign jurisdictions | jurisdiction | 3 | ||
Unrecognized tax benefits | $ 2,900,000 | $ 2,700,000 | $ 2,400,000 |
Unrecognized tax benefits that would impact effective tax rate | 1,000,000 | 1,300,000 | |
Interest and penalties recognized | (100,000) | 700,000 | 200,000 |
Interest and penalties accrued | 600,000 | 1,100,000 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | 2,700,000 | 2,400,000 | 2,600,000 |
Increases related to positions taken in the current year | 0 | 700,000 | 900,000 |
Decreases related to positions taken in prior years | (1,600,000) | 0 | 0 |
Increases related to positions taken in prior years | 1,900,000 | 0 | 0 |
Decreases related to lapse of statutes of limitations | (100,000) | (400,000) | (1,100,000) |
Balance at end of year | 2,900,000 | $ 2,700,000 | $ 2,400,000 |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Possible decrease in unrecognized tax benefits | 0 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Possible decrease in unrecognized tax benefits | 1,000,000 | ||
TMA Agreement, Indemnification Asset | |||
Income Tax Contingency [Line Items] | |||
Indemnification asset | $ 900,000 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Transaction costs - 2025 Notes | $ (5.4) | $ (6.8) |
Total long-term debt | 274.6 | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Convertible debt, interest rate | 4.125% | |
Long-term debt, gross | $ 245.8 | 245.8 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 14.5 | 14.4 |
Line of credit, remaining borrowing capacity | 385.5 | 275 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 35.6 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, interest rate | 2.35% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, interest rate | 4.50% |
Debt - Adjusted Financial State
Debt - Adjusted Financial Statements to Apply Adopted Guidance (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 15, 2021 | Dec. 31, 2018 | ||||||||
Statement of operations | ||||||||||||||||||||
Total before tax | $ 23.9 | $ (22) | [1] | $ 57.8 | ||||||||||||||||
Income tax expense/(benefit) | $ 9.5 | $ 15.4 | $ (2.5) | $ 0.9 | $ (0.3) | $ (3.1) | $ (2) | $ (0.3) | 23.3 | (5.7) | [1] | 7.6 | ||||||||
Net income/(loss) | 7.5 | $ (12.6) | $ 6.5 | (0.8) | (3.7) | $ (10.5) | $ (0.2) | (1.9) | 0.6 | (16.3) | [2] | 50.2 | ||||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | ||||||||||||||||||||
Deferred income taxes | 12.5 | (6.3) | [3] | (0.9) | ||||||||||||||||
Deferred financing fee amortization | 0.3 | 0.7 | [3] | 0 | ||||||||||||||||
Cash provided by operating activities | 26.4 | 6.3 | [3] | 58.1 | ||||||||||||||||
Net increase in cash and cash equivalents | 101.4 | (5.2) | [3] | (11.5) | ||||||||||||||||
Cash and cash equivalents, beginning of period | $ 11.6 | [3] | $ 16.8 | [3] | 11.6 | [3] | 16.8 | [3] | 28.3 | |||||||||||
Cash and cash equivalents, end of period | $ 113 | $ 11.6 | [3] | 113 | $ 11.6 | [3] | $ 16.8 | [3] | ||||||||||||
Net income per weighted average share - basic (in dollars per share) | $ 0.05 | $ (80,000) | $ 40,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [1] | $ 0.34 | |||||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0.04 | $ (80,000) | $ 30,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [1] | 0.34 | |||||||||
Balance Sheet | ||||||||||||||||||||
Deferred income taxes | $ 12.7 | $ 5.6 | [4] | 12.7 | $ 5.6 | [4] | ||||||||||||||
Long-term debt | 240.4 | 274.6 | [4] | 240.4 | 274.6 | [4] | ||||||||||||||
Total current and long-term liabilities | $ 407.1 | $ 400.6 | [4] | $ 407.1 | $ 400.6 | [4] | ||||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||
Common stock; $0.001 par value; 2 billion shares authorized; 161,791,602 and 146,461,249 shares issued; 161,689,984 and 146,361,981 outstanding at December 31, 2021 and 2020, respectively | [4] | $ 0.1 | $ 0.1 | |||||||||||||||||
Capital in excess of par value of common stock | [4] | 520.9 | 520.9 | |||||||||||||||||
Retained earnings | [4] | 60.3 | 60.3 | |||||||||||||||||
Accumulated other comprehensive loss | [4] | (44.4) | (44.4) | |||||||||||||||||
Treasury stock, common; 101,131 and 99,268 shares at September 30, 2021 and December 31, 2020, respectively | [4] | (0.7) | (0.7) | |||||||||||||||||
Total equity | $ 795.4 | 536.2 | [4] | $ 795.4 | 536.2 | [4] | $ 544 | $ 489.6 | ||||||||||||
Total liabilities and equity | 1,202.5 | 936.8 | [4] | 1,202.5 | 936.8 | [4] | ||||||||||||||
Statement of cash flows | ||||||||||||||||||||
Net (loss)/income | 7.5 | $ (12.6) | $ 6.5 | $ (0.8) | (3.7) | $ (10.5) | $ (0.2) | $ (1.9) | 0.6 | (16.3) | [2] | 50.2 | ||||||||
Accounting Standards Update 2020-06 | ||||||||||||||||||||
Statement of operations | ||||||||||||||||||||
Interest expense, net | 0.3 | 0.3 | ||||||||||||||||||
Total before tax | 23.9 | (22) | ||||||||||||||||||
Income tax expense/(benefit) | 23.3 | (5.7) | ||||||||||||||||||
Net income/(loss) | 0.6 | (16.3) | ||||||||||||||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | ||||||||||||||||||||
Deferred income taxes | 12.5 | (6.3) | ||||||||||||||||||
Deferred financing fee amortization | 0.3 | 0.7 | ||||||||||||||||||
Cash provided by operating activities | $ 13.4 | $ (21.9) | ||||||||||||||||||
Net income per weighted average share - basic (in dollars per share) | $ 0 | $ (0.11) | ||||||||||||||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0 | $ (0.11) | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Deferred income taxes | 12.7 | 5.6 | $ 12.7 | $ 5.6 | ||||||||||||||||
Long-term debt | 274.6 | 274.6 | ||||||||||||||||||
Total current and long-term liabilities | 253.1 | 280.2 | 253.1 | 280.2 | ||||||||||||||||
Common stock; $0.001 par value; 2 billion shares authorized; 161,791,602 and 146,461,249 shares issued; 161,689,984 and 146,361,981 outstanding at December 31, 2021 and 2020, respectively | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Capital in excess of par value of common stock | 778.1 | 520.9 | 778.1 | 520.9 | ||||||||||||||||
Retained earnings | 60.9 | 60.3 | 60.9 | 60.3 | ||||||||||||||||
Accumulated other comprehensive loss | (42.9) | (44.4) | (42.9) | (44.4) | ||||||||||||||||
Treasury stock, common; 101,131 and 99,268 shares at September 30, 2021 and December 31, 2020, respectively | (0.8) | (0.7) | (0.8) | (0.7) | ||||||||||||||||
Total equity | 795.4 | 536.2 | 795.4 | 536.2 | ||||||||||||||||
Total liabilities and equity | 1,048.5 | 816.4 | 1,048.5 | 816.4 | ||||||||||||||||
Statement of cash flows | ||||||||||||||||||||
Net (loss)/income | 0.6 | (16.3) | ||||||||||||||||||
As computed under ASC 470-20 | ||||||||||||||||||||
Statement of operations | ||||||||||||||||||||
Interest expense, net | 7.3 | 3.7 | ||||||||||||||||||
Total before tax | 16.9 | (25.4) | ||||||||||||||||||
Income tax expense/(benefit) | 21.7 | (6.5) | ||||||||||||||||||
Net income/(loss) | (4.8) | (18.9) | ||||||||||||||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | ||||||||||||||||||||
Deferred income taxes | 10.9 | (7.1) | ||||||||||||||||||
Deferred financing fee amortization | 7.3 | 4.1 | ||||||||||||||||||
Cash provided by operating activities | 13.4 | (21.9) | ||||||||||||||||||
Net increase in cash and cash equivalents | 101.4 | (5.2) | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 11.6 | 16.8 | 11.6 | 16.8 | ||||||||||||||||
Cash and cash equivalents, end of period | 113 | 11.6 | $ 113 | $ 11.6 | 16.8 | |||||||||||||||
Net income per weighted average share - basic (in dollars per share) | $ (0.03) | $ (0.13) | ||||||||||||||||||
Net income per weighted average share - diluted (in dollars per share) | $ (0.03) | $ (0.13) | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Deferred income taxes | 19.3 | 13.9 | $ 19.3 | $ 13.9 | ||||||||||||||||
Long-term debt | 209.6 | 236.7 | 209.6 | 236.7 | ||||||||||||||||
Total current and long-term liabilities | 228.9 | 250.6 | 228.9 | 250.6 | ||||||||||||||||
Common stock; $0.001 par value; 2 billion shares authorized; 161,791,602 and 146,461,249 shares issued; 161,689,984 and 146,361,981 outstanding at December 31, 2021 and 2020, respectively | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Capital in excess of par value of common stock | 810.3 | 553.1 | 810.3 | 553.1 | ||||||||||||||||
Retained earnings | 52.9 | 57.7 | 52.9 | 57.7 | ||||||||||||||||
Accumulated other comprehensive loss | (42.9) | (44.4) | (42.9) | (44.4) | ||||||||||||||||
Treasury stock, common; 101,131 and 99,268 shares at September 30, 2021 and December 31, 2020, respectively | (0.8) | (0.7) | (0.8) | (0.7) | ||||||||||||||||
Total equity | 819.6 | 565.8 | 819.6 | 565.8 | ||||||||||||||||
Total liabilities and equity | 1,048.5 | 816.4 | 1,048.5 | 816.4 | ||||||||||||||||
Statement of cash flows | ||||||||||||||||||||
Net (loss)/income | (4.8) | (18.9) | ||||||||||||||||||
Effect of change | Accounting Standards Update 2020-06 | ||||||||||||||||||||
Statement of operations | ||||||||||||||||||||
Interest expense, net | (7) | (3.4) | ||||||||||||||||||
Total before tax | 7 | 3.4 | ||||||||||||||||||
Income tax expense/(benefit) | 1.6 | 0.8 | ||||||||||||||||||
Net income/(loss) | 5.4 | 2.6 | ||||||||||||||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | ||||||||||||||||||||
Deferred income taxes | 1.6 | 0.8 | ||||||||||||||||||
Deferred financing fee amortization | (7) | (3.4) | ||||||||||||||||||
Cash provided by operating activities | 0 | 0 | ||||||||||||||||||
Net increase in cash and cash equivalents | 0 | 0 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | $ 0 | $ 0 | 0 | 0 | ||||||||||||||||
Cash and cash equivalents, end of period | 0 | 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||
Net income per weighted average share - basic (in dollars per share) | $ 0.03 | $ 0.02 | ||||||||||||||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0.03 | $ 0.02 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Deferred income taxes | (6.6) | (8.3) | $ (6.6) | $ (8.3) | ||||||||||||||||
Long-term debt | 30.8 | 37.9 | 30.8 | 37.9 | ||||||||||||||||
Total current and long-term liabilities | 24.2 | 29.6 | 24.2 | 29.6 | ||||||||||||||||
Common stock; $0.001 par value; 2 billion shares authorized; 161,791,602 and 146,461,249 shares issued; 161,689,984 and 146,361,981 outstanding at December 31, 2021 and 2020, respectively | 0 | 0 | 0 | 0 | ||||||||||||||||
Capital in excess of par value of common stock | (32.2) | (32.2) | (32.2) | (32.2) | ||||||||||||||||
Retained earnings | 8 | 2.6 | 8 | 2.6 | ||||||||||||||||
Accumulated other comprehensive loss | 0 | 0 | 0 | 0 | ||||||||||||||||
Treasury stock, common; 101,131 and 99,268 shares at September 30, 2021 and December 31, 2020, respectively | 0 | 0 | 0 | 0 | ||||||||||||||||
Total equity | (24.2) | (29.6) | (24.2) | (29.6) | ||||||||||||||||
Total liabilities and equity | $ 0 | $ 0 | 0 | 0 | ||||||||||||||||
Statement of cash flows | ||||||||||||||||||||
Net (loss)/income | $ 5.4 | $ 2.6 | ||||||||||||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||||||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||||||||||
[3] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||||||||||
[4] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 07, 2020USD ($) | Jun. 25, 2020USD ($)site$ / sharesshares | Sep. 28, 2018USD ($) | Mar. 31, 2022day | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||||
Net cash proceeds from debt | $ 0 | $ 245,800,000 | [1] | $ 0 | ||||
Debt discount | 5,400,000 | 6,800,000 | ||||||
Capitalized interest costs | $ 15,400,000 | 12,000,000 | $ 5,700,000 | |||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 4.125% | |||||||
Capitalized interest costs | $ 11,400,000 | 5,700,000 | ||||||
Convertible Debt | Subsequent Event | Forecast | Conversion Circumstance One | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of conversion price | 130.00% | |||||||
Trading days | day | 20 | |||||||
Consecutive trading days | day | 30 | |||||||
Convertible Senior Notes Due 2025 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 4.125% | |||||||
Aggregate principal amount of debt | $ 245,800,000 | |||||||
Conversion ratio (in shares) | shares | 0.1144885 | |||||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 8.73 | |||||||
Percentage of conversion price | 130.00% | |||||||
Trading days | site | 20 | |||||||
Consecutive trading days | site | 30 | |||||||
Redemption price, percentage of principal amount | 100.00% | |||||||
Business day period | 5 days | |||||||
Consecutive trading day period | 5 days | |||||||
Trading price as percentage of closing price of common stock | 98.00% | |||||||
Amortization of discount and transaction costs | $ 1,500,000 | 800,000 | ||||||
Capitalized interest costs | 1,200,000 | 500,000 | ||||||
Debt discount, excluding amortization | 10,200,000 | $ 5,200,000 | ||||||
Convertible Senior Notes, Over-Allotment Option | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Net cash proceeds from debt | $ 238,200,000 | |||||||
Third party transaction costs | $ 7,600,000 | |||||||
First Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Third party transaction costs | $ 1,500,000 | |||||||
Revolving Credit Facility | Citibank, N.A. | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||
Maximum increase in revolving credit commitments | 600,000,000 | |||||||
Revolving Credit Facility | Citibank, N.A. | First Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Net leverage ratio | 3.5 | |||||||
Minimum interest coverage ratio | 3.5 | |||||||
Letter of Credit | Citibank, N.A. | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||
Base Rate | Revolving Credit Facility | Citibank, N.A. | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Eurodollar | Revolving Credit Facility | Citibank, N.A. | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 5.86 | $ 2.29 | $ 3.26 |
Exercise of stock options | $ 1.5 | $ 0.8 | |
Exercised (in shares) | 109,578,000 | ||
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, expiration period (in years) | 10 years | ||
Unrecognized compensation cost related to unvested stock options | $ 3 | 1.7 | |
Requisite service period (in years) | 1 year 10 months 24 days | ||
Exercise of stock options | $ 0.4 | ||
Exercised (in shares) | 0 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 20.12 | $ 7.31 | $ 11.50 |
Requisite service period (in years) | 1 year 9 months 18 days | ||
Intrinsic value of awards vested | $ 5 | $ 1.6 | $ 0.7 |
Fair value of awards vested | 3.2 | $ 1.7 | $ 1.3 |
Unrecognized compensation cost | $ 4.5 | ||
Livent Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 10,683,837 | ||
Livent Plan | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, expiration period (in years) | 10 years |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 4.5 | $ 3.7 | $ 4.5 |
Compensation expense taxes | 0.9 | 0.7 | 1.2 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 1.6 | 1.1 | 1.7 |
Compensation expense taxes | 0.3 | 0.2 | 0.4 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 2.9 | 2.6 | 2.8 |
Compensation expense taxes | 0.6 | 0.5 | 0.8 |
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | $ 5.3 | 4.1 | 4.3 |
Restructuring Charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | 0.2 | 1.2 | |
Business Separation Costs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | $ 0.1 | $ 0.2 |
Stock-based Compensation - Blac
Stock-based Compensation - Black Scholes Assumptions (Details) - Stock Option | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 27.00% | 20.20% | 20.10% |
Risk-free interest rate | 0.81% | 1.20% | 1.86% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 20.70% | 21.00% | |
Risk-free interest rate | 1.73% | 2.55% |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options Granted But Not Exercised | ||
Beginning balance (in shares) | 1,725,494 | |
Granted (in shares) | 542,760 | |
Exercised (in shares) | (109,578) | |
Forfeited (in shares) | (24,245) | |
Ending balance (in shares) | 2,134,431 | 1,725,494 |
Exercisable (in shares) | 930,390 | |
Weighted-Average Remaining Contractual Life (in Years) | ||
Outstanding | 6 years 4 months 24 days | 6 years 2 months 12 days |
Exercisable | 4 years 7 months 6 days | |
Weighted-Average Exercise Price Per Share | ||
Outstanding (in dollars per share) | $ 12.45 | |
Granted (in dollars per share) | 20.35 | |
Exercised (in dollars per share) | 13.56 | |
Forfeited (in dollars per share) | 15.09 | |
Outstanding (in dollars per share) | 14.37 | $ 12.45 |
Exercisable (in dollars per share) | $ 11.64 | |
Aggregate Intrinsic Value (in Millions) | ||
Outstanding | $ 21.4 | $ 11 |
Exercised | 1.2 | |
Exercisable | $ 11.9 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Aggregate Intrinsic Value (in Millions) | ||
Aggregate intrinsic value | $ 17.5 | $ 12.9 |
Restricted Stock Units (RSUs) | ||
Number of awards | ||
Nonvested, beginning balance (in shares) | 687,006 | |
Granted (in shares) | 274,408 | |
Vested (in shares) | (233,130) | |
Forfeited (in shares) | (11,846) | |
Nonvested, ending balance (in shares) | 716,438 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested, beginning balance (in dollars per share) | $ 11.50 | |
Granted (in dollars per share) | 20.12 | |
Vested (in dollars per share) | 13.70 | |
Forfeited (in dollars per share) | 14.78 | |
Nonvested, ending balance (in dollars per share) | $ 14.03 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | Jun. 15, 2021 | Jun. 11, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | ||||
Class of Stock [Line Items] | ||||||
Shares of common stock issued (in shares) | 14,950,000 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||
Price of common stock issued (in dollars per share) | $ 17.50 | |||||
Underwriting period (in days) | 30 days | |||||
Proceeds from stock issued | $ 252,200,000 | |||||
Underwriters' fees and offering expenses payable | $ 9,400,000 | $ 9,400,000 | $ 0 | [1] | $ 0 | |
Dividends paid | $ 0 | $ 0 | $ 0 | |||
Over-Allotment Option | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock issued (in shares) | 1,950,000 | |||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capital Stock Activity [Roll Forward] | ||
Beginning balance (in shares) | 146,461,249 | 146,085,696 |
Outstanding (in shares) | 146,361,981 | 145,981,684 |
Ending balance (in shares) | 161,791,602 | 146,461,249 |
Outstanding (in shares) | 161,689,984 | 146,361,981 |
Treasury Stock [Roll Forward] | ||
Beginning balance (in shares) | (99,268) | (104,012) |
Purchases of treasury stock - deferred compensation plan (in shares) | (2,350) | |
Net sales of treasury stock - deferred compensation plan (in shares) | (4,744) | |
Ending balance (in shares) | (101,618) | (99,268) |
Common Stock, 0.001 Per Share Par Value | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 14,950,000 | |
FMC Plan | Restricted Stock Units (RSUs) | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 270,775 | 256,161 |
Livent Plan | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 109,578 | 119,392 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 536.2 | [1] | $ 544 | $ 489.6 | |
Other comprehensive loss before reclassifications | 1.6 | 3.9 | |||
Amounts reclassified from accumulated other comprehensive loss | (0.1) | ||||
Ending balance | 795.4 | 536.2 | [1] | 544 | |
Total | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (44.4) | [2] | (48.3) | (49.2) | |
Ending balance | (42.9) | (44.4) | [2] | (48.3) | |
Foreign currency adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (44.4) | (48.3) | |||
Other comprehensive loss before reclassifications | 1.3 | 3.9 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||
Ending balance | (43.1) | (44.4) | (48.3) | ||
Derivative Instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | ||||
Other comprehensive loss before reclassifications | 0.3 | 0 | $ 0 | ||
Amounts reclassified from accumulated other comprehensive loss | (0.1) | ||||
Ending balance | $ 0.2 | $ 0 | |||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | ||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Equity - Reclassification Out o
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Costs of sales | $ 332 | $ 251.4 | [1] | $ 273.5 | ||||||||
Total before tax | 23.9 | (22) | [1] | 57.8 | ||||||||
Provision for income taxes | $ (9.5) | $ (15.4) | $ 2.5 | $ (0.9) | $ 0.3 | $ 3.1 | $ 2 | $ 0.3 | (23.3) | 5.7 | [1] | (7.6) |
Net income/(loss) | $ 7.5 | $ (12.6) | $ 6.5 | $ (0.8) | $ (3.7) | $ (10.5) | $ (0.2) | $ (1.9) | 0.6 | $ (16.3) | [2] | 50.2 |
Maximum | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Provision for income taxes | (0.1) | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net income/(loss) | (0.1) | 1.2 | ||||||||||
Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Total before tax | (0.1) | 1.3 | ||||||||||
Provision for income taxes | 0 | (0.1) | ||||||||||
Net income/(loss) | (0.1) | 1.2 | ||||||||||
Foreign Exchange Contracts | Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Costs of sales | $ (0.1) | $ 1.3 | ||||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Earnings_(Loss) Per Share - EPS
Earnings/(Loss) Per Share - EPS Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Numerator: | ||||||||||||
Net income/(loss) | $ 7.5 | $ (12.6) | $ 6.5 | $ (0.8) | $ (3.7) | $ (10.5) | $ (0.2) | $ (1.9) | $ 0.6 | $ (16.3) | [1] | $ 50.2 |
Adjustment for interest on 2025 Notes, net of tax | 0.2 | 0 | 0 | |||||||||
Net income/(loss) after assumed conversion of 2025 Notes | 0.8 | (16.3) | 50.2 | |||||||||
Net income/(loss) after assumed conversion of 2025 Notes | $ 0.8 | $ (16.3) | $ 50.2 | |||||||||
Denominator: | ||||||||||||
Weighted average common shares outstanding - basic (in shares) | 161,700 | 161,600 | 148,700 | 146,500 | 146,300 | 146,300 | 146,200 | 146,100 | 154,700 | 146,200 | [2] | 146,000 |
Dilutive share equivalents from share-based plans (in shares) | 1,500 | 0 | 400 | |||||||||
Weighted average common share equivalents (in shares) | 28,100 | 0 | 0 | |||||||||
Weighted average common shares outstanding – diluted (in shares) | 191,600 | 161,600 | 178,000 | 146,500 | 146,300 | 146,300 | 146,200 | 146,100 | 184,300 | 146,200 | [2] | 146,400 |
Basic earnings/(loss) per common share: | ||||||||||||
Net (loss)/income per weighted average share - basic (in dollars per share) | $ 0.05 | $ (80,000) | $ 40,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [2] | $ 0.34 | |
Diluted earnings/(loss) per common share: | ||||||||||||
Net (loss)/income per weighted average share- diluted (in dollars per share) | $ 0.04 | $ (80,000) | $ 30,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [2] | $ 0.34 | |
Capitalized interest costs | $ 15.4 | $ 12 | $ 5.7 | |||||||||
Convertible Debt | ||||||||||||
Diluted earnings/(loss) per common share: | ||||||||||||
Capitalized interest costs | $ 11.4 | $ 5.7 | ||||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Earnings_(Loss) Per Share - Ant
Earnings/(Loss) Per Share - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 15.3 | 0 |
Share equivalents from share-based plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 0.7 | 0 |
Share equivalents from 2025 Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 14.6 | 0 |
Earnings_(Loss) Per Share - Nar
Earnings/(Loss) Per Share - Narrative (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 15,300,000 | 0 | |
Antidilutive securities, exercise price (in dollars per share) | $ 20.35 | |||
Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 1,684,731 | 1,127,253 | |
Antidilutive securities, exercise price (in dollars per share) | $ 13.13 | $ 14.43 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | $ 18.1 | |||
Foreign currency translation, net of tax | $ 0.2 | |||
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | (2.4) | $ (1.7) | $ (1.2) | |
Foreign Exchange Contracts | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 102.8 | |||
Forward Contracts | ||||
Derivative [Line Items] | ||||
AOCI, net | 0.2 | |||
Fair Value | ||||
Derivative [Line Items] | ||||
Debt value | 796 | |||
Carrying Value | ||||
Derivative [Line Items] | ||||
Debt value | $ 240.4 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value of Derivative Instruments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Derivative [Line Items] | |
Derivative assets | $ 0.2 |
Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative assets | 0.2 |
Designated as Hedging Instrument | Foreign Exchange Contracts | |
Derivative [Line Items] | |
Derivative assets | $ 0.2 |
Financial Instruments, Risk M_5
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 536.2 | [1] | $ 544 | $ 489.6 | |
Unrealized hedging gains, net of tax | 1.6 | 3.9 | |||
Total derivative instrument impact on comprehensive income, net of tax | 1.5 | 3.9 | [2] | 0.9 | |
Ending balance | 795.4 | 536.2 | [1] | 544 | |
Derivative Instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0 | ||||
Unrealized hedging gains, net of tax | 0.3 | 0 | $ 0 | ||
Total derivative instrument impact on comprehensive income, net of tax | 0.2 | ||||
Ending balance | $ 0.2 | $ 0 | |||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | ||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | $ (2.4) | $ (1.7) | $ (1.2) |
Foreign Exchange contracts | Cost of sales | |||
Derivative [Line Items] | |||
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | (2.4) | (1.7) | (1.2) |
Intercompany Loan Hedges | Restructuring, Settlement And Impairment Provisions | |||
Derivative [Line Items] | |||
Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives | $ (0.4) | $ 0.1 | $ 0.1 |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | ||
Investments in deferred compensation plan | $ 3.4 | $ 2.6 |
Total Assets | 3.4 | 2.6 |
Liabilities | ||
Deferred compensation plan obligation | 5.9 | 4.5 |
Total Liabilities | 5.9 | 4.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Investments in deferred compensation plan | 3.4 | 2.6 |
Total Assets | 3.4 | 2.6 |
Liabilities | ||
Deferred compensation plan obligation | 5.9 | 4.5 |
Total Liabilities | 5.9 | 4.5 |
Significant Other Observable Inputs (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 |
Significant Unobservable Inputs (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 loss | $ 0.6 | $ 1 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) ft² in Thousands, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($) | Apr. 13, 2021ft² | Mar. 31, 2021USD ($)ft² | Oct. 28, 2020USD ($) | May 29, 2020USD ($) | ||
Lessor, Lease, Description [Line Items] | |||||||||
Operating lease, weighted average remaining lease term (in years) | 8 years 3 months 18 days | ||||||||
Operating lease, weighted average discount rate (as a percent) | 4.90% | ||||||||
Gain contingency | $ 20 | ||||||||
Operating lease liabilities - long-term | $ 5.4 | $ 14.8 | [1] | ||||||
Right of use assets - operating leases, net | 6.3 | 16.1 | [1] | ||||||
Short-term lease cost | 0.9 | $ 0.5 | $ 0 | ||||||
Positive Outcome Of Litigation, Reimbursement Of Payment | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Gain contingency | 10 | ||||||||
Positive Outcome Of Litigation, Termination Penalty Repayment | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Gain contingency | $ 10 | ||||||||
Nikolov V. Livent Corp | Pending Litigation | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Estimate of possible loss | $ 7.4 | ||||||||
Buildings | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Area of leased property terminated (square feet) | ft² | 25 | ||||||||
ROU asset removed due to terminated lease | $ 10.9 | ||||||||
Lease liability removed due to terminated lease | $ 10.9 | ||||||||
Term of lease agreement (in years) | 5 years | ||||||||
Area of office space in new lease agreement (square feet) | ft² | 13 | ||||||||
Operating lease liabilities - long-term | $ 2.1 | ||||||||
Right of use assets - operating leases, net | $ 2.1 | ||||||||
Short-term lease cost | $ 0.6 | ||||||||
Minimum | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Remaining lease term (in years) | 2 years | ||||||||
Maximum | |||||||||
Lessor, Lease, Description [Line Items] | |||||||||
Remaining lease term (in years) | 15 years | ||||||||
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 1.2 | $ 2.2 | $ 2.2 |
Short-term lease cost | 0.9 | 0.5 | 0 |
Variable lease cost | 0.1 | 0.2 | 0.2 |
Sublease income | 0 | 0 | (0.3) |
Total lease cost | 2.2 | 2.9 | 2.1 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash paid for operating leases | $ 1.8 | $ 2.1 | $ 1.6 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Undiscounted cash flows | |
2022 | $ 1.4 |
2023 | 1.2 |
2024 | 1.1 |
2025 | 1.1 |
2026 | 0.2 |
Thereafter | 2.9 |
Total future minimum lease payments | 7.9 |
Less: Imputed interest | (1.4) |
Total | $ 6.5 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Prepaid and other current assets | |||
Tax related items | $ 17.7 | $ 15.7 | |
Argentina government receivable | 13.3 | 10.8 | |
Prepaid expenses | 12.2 | 8.2 | |
Other receivables | 2.3 | 8.6 | |
Derivative assets (Note 15) | 0.2 | 0 | |
Bank Acceptance Drafts | 0 | 0.2 | |
Other current assets | 9.6 | 12.8 | |
Total | 55.3 | 56.3 | [1] |
Other assets | |||
Argentina government receivable | 55.8 | 55.8 | |
Advance to contract manufacturers | 16 | 16.3 | |
Long-term raw materials inventory | 4.9 | 0 | |
Capitalized software, net | 1.5 | 1.8 | |
Tax related items | 1.3 | 2.7 | |
Other long-term assets | 11.4 | 11.8 | |
Total | 90.9 | 88.4 | [1] |
Accrued and other current liabilities | |||
Accrued payroll | 17.1 | 12.5 | |
Accrued investment in unconsolidated affiliate | 6.2 | 0 | |
Restructuring reserves | 3.2 | 3.2 | |
Retirement liability - 401K | 2.5 | 2.6 | |
Environmental reserves, current | 0.5 | 0.6 | |
Severance | 0 | 2.5 | |
Other accrued and other current liabilities | 32.3 | 15.3 | |
Total | 61.8 | 36.7 | [1] |
Other long-term liabilities | |||
Deferred compensation plan obligation | 5.9 | 4.5 | |
Contingencies related to uncertain tax positions | 2.3 | 3.4 | |
Self insurance reserves | 1.5 | 1.5 | |
Asset retirement obligations | 0.3 | 0.3 | |
Accrued investment in unconsolidated affiliate | 0 | 6.2 | |
Other long-term liabilities | 1.7 | 1.3 | |
Total | 11.7 | 17.2 | [1] |
TMA Agreement, Uncertain Tax Positions | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | 1.9 | ||
TMA Agreement, Indemnification Liability | |||
Other long-term liabilities | |||
Contingencies related to uncertain tax positions | 0.4 | ||
Nikolov V. Livent Corp | Pending Litigation | |||
Other assets | |||
Insurance reimbursement receivable | 5.4 | ||
Other long-term liabilities | |||
Settlement accrued liability | 7.4 | ||
Argentina Government | |||
Other assets | |||
Export tax and export rebate receivables | $ 38.4 | $ 39.5 | |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Revenue | $ 122.9 | $ 103.6 | $ 102.2 | $ 91.7 | $ 82.2 | $ 72.6 | $ 64.9 | $ 68.5 | $ 420.4 | $ 288.2 | [1] | $ 388.4 |
Gross margin | 36.4 | 18.3 | 20.4 | 13.3 | 9.2 | 2.8 | 10.2 | 14.6 | 88.4 | 36.8 | [1] | 114.9 |
Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates, and interest expense, net | 18.8 | 3.8 | 5.4 | 1.7 | (3.9) | (13.2) | (1.9) | (2.1) | 29.7 | (21.1) | [1] | 58.6 |
Interest expense, net | 0 | 0 | 0 | 0.3 | 0 | 0.3 | 0 | 0 | ||||
Income tax expense/(benefit) | 9.5 | 15.4 | (2.5) | 0.9 | (0.3) | (3.1) | (2) | (0.3) | 23.3 | (5.7) | [1] | 7.6 |
Net (loss)/income | $ 7.5 | $ (12.6) | $ 6.5 | $ (0.8) | $ (3.7) | $ (10.5) | $ (0.2) | $ (1.9) | $ 0.6 | $ (16.3) | [2] | $ 50.2 |
Net income per weighted average share - basic (in dollars per share) | $ 0.05 | $ (80,000) | $ 40,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [1] | $ 0.34 | |
Net income per weighted average share - diluted (in dollars per share) | $ 0.04 | $ (80,000) | $ 30,000 | $ (10,000) | $ (30,000) | $ (70,000) | $ 0 | $ (10,000) | $ (0.11) | [1] | $ 0.34 | |
Weighted average common shares outstanding: | ||||||||||||
Basic (in shares) | 161,700 | 161,600 | 148,700 | 146,500 | 146,300 | 146,300 | 146,200 | 146,100 | 154,700 | 146,200 | [1] | 146,000 |
Diluted (in shares) | 191,600 | 161,600 | 178,000 | 146,500 | 146,300 | 146,300 | 146,200 | 146,100 | 184,300 | 146,200 | [1] | 146,400 |
[1] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. | |||||||||||
[2] | As adjusted for the adoption of ASU 2020-06 using the full retrospective method. |