Cover page
Cover page | 3 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
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, par value $0.001 per share |
Trading Symbol | LTHM |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 161,745,365 |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 143.5 | $ 91.7 |
Cost of sales | 83.6 | 78.4 |
Gross margin | 59.9 | 13.3 |
Selling, general and administrative expenses | 11.8 | 10.7 |
Research and development expenses | 0.9 | 0.7 |
Restructuring and other charges | 1 | 0.3 |
Separation-related costs/(income) | 0.1 | (0.1) |
Total costs and expenses | 97.4 | 90 |
Income from operations before equity in net loss of unconsolidated affiliate, interest expense, net and other gain | 46.1 | 1.7 |
Equity in net loss of unconsolidated affiliate | 2.2 | 1.3 |
Interest expense, net | 0 | 0.3 |
Other gain | 14 | 0 |
Income from operations before income taxes | 57.9 | 0.1 |
Income tax expense (benefit) | 4.7 | 0.9 |
Net income/(loss) | $ 53.2 | $ (0.8) |
Net loss per weighted average share - basic (in dollars per share) | $ 0.33 | $ (0.01) |
Net loss weighted average share - diluted (in dollars per share) | $ 0.28 | $ (0.01) |
Weighted average common shares outstanding - basic (in shares) | 161.7 | 146.5 |
Weighted average common shares outstanding - diluted (in shares) | 191.4 | 146.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income/(loss) | $ 53.2 | $ (0.8) |
Foreign currency adjustments: | ||
Foreign currency translation loss arising during the period | (1) | (0.3) |
Total foreign currency translation adjustments | (1) | (0.3) |
Derivative instruments: | ||
Unrealized hedging gains, net of tax of $0.1 | 0.1 | 0 |
Total derivative instruments, net of tax of $0.1 | 0.1 | 0 |
Other comprehensive loss, net of tax | (0.9) | (0.3) |
Comprehensive income/(loss) | $ 52.3 | $ (1.1) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Reclassification of deferred hedging gains included in net income, tax | $ 0.1 | |
Total derivative instruments loss, tax | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 68.5 | $ 113 |
Trade receivables, net of allowance of approximately $0.3 in 2022 and $0.3 in 2021 | 105.5 | 96.4 |
Inventories, net | 150.5 | 134.6 |
Prepaid and other current assets | 40 | 55.3 |
Total current assets | 364.5 | 399.3 |
Investments | 33.4 | 27.2 |
Property, plant and equipment, net of accumulated depreciation of $246.2 in 2022 and $243.0 in 2021 | 737.8 | 677.9 |
Deferred income taxes | 0 | 0.9 |
Right of use assets - operating leases, net | 6 | 6.3 |
Other assets | 100.9 | 90.9 |
Total assets | 1,242.6 | 1,202.5 |
Current liabilities | ||
Accounts payable, trade and other | 62.2 | 65.4 |
Accrued and other liabilities | 54.2 | 61.8 |
Operating lease liabilities - current | 1.1 | 1.1 |
Income taxes | 2.8 | 3 |
Total current liabilities | 120.3 | 131.3 |
Long-term debt | 240.8 | 240.4 |
Operating lease liabilities - long-term | 5 | 5.4 |
Environmental liabilities | 5.7 | 5.6 |
Deferred income taxes | 7.7 | 12.7 |
Other long-term liabilities | 14.1 | 11.7 |
Commitments and contingent liabilities (Note 13) | 0 | 0 |
Total current and long-term liabilities | 393.6 | 407.1 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 161,848,607 and 161,791,602 shares issued; 161,745,365 and 161,689,984 outstanding as of March 31, 2022 and December 31, 2021, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 779.4 | 778.1 |
Retained earnings | 114.1 | 60.9 |
Accumulated other comprehensive loss | (43.8) | (42.9) |
Treasury stock, at cost; 103,242 and 101,618 shares as of March 31, 2022 and December 31, 2021, respectively | (0.8) | (0.8) |
Total equity | 849 | 795.4 |
Total liabilities and equity | $ 1,242.6 | $ 1,202.5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Allowance for trade receivables | $ 0.3 | $ 0.3 |
Accumulated depreciation | $ 246.2 | $ 243 |
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) | 161,848,607 | 161,791,602 |
Common stock, outstanding (in shares) | 161,745,365 | 161,689,984 |
Treasury stock, at cost (in shares) | 103,242 | 101,618 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash provided by operating activities: | |||
Net loss | $ 53.2 | $ (0.8) | |
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | |||
Depreciation and amortization | 6.4 | 6.2 | |
Restructuring and other charges | 0.8 | 0.1 | |
Deferred income taxes | 0.8 | 1.3 | |
Separation-related (income)/costs | (0.3) | 0.6 | |
Share-based compensation | 1.6 | 1.1 | |
Change in investments in trust fund securities | 0.2 | (0.2) | |
Loss on disposal of assets | 0.1 | 0 | |
Deferred financing fees amortization | 0 | 0.3 | |
Equity in net loss of unconsolidated affiliate | 2.2 | 1.3 | |
Other gain | (14) | 0 | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (9.3) | (6.3) | |
Inventories | (16.5) | 9.1 | |
Accounts payable, trade and other | (3.2) | (5.2) | |
Changes in deferred compensation | 0.7 | 0.6 | |
Income taxes | (0.1) | 0.4 | |
Change in prepaid and other current assets and other assets | 5.1 | 16.5 | |
Change in accrued and other current and long-term liabilities | (16.9) | (12.3) | |
Cash provided by operating activities | 10.8 | 12.7 | |
Cash used in investing activities: | |||
Capital expenditures | [1] | (68.7) | (25.5) |
Investments in Livent NQSP securities | (0.7) | (0.6) | |
Proceeds from Blue Chip Swap, net of purchases | 14 | 0 | |
Other investing activities | 0 | (0.9) | |
Cash used in investing activities | (55.4) | (27) | |
Cash provided by financing activities: | |||
Proceeds from Revolving Credit Facility | 0 | 37 | |
Repayments of Revolving Credit Facility | 0 | (13) | |
Proceeds from issuance of common stock - incentive plans | 0.1 | 0.2 | |
Cash provided by financing activities | 0.1 | 24.2 | |
(Decrease)/increase in cash and cash equivalents | (44.5) | 9.9 | |
Cash and cash equivalents, beginning of period | 113 | 11.6 | |
Cash and cash equivalents, end of period | 68.5 | 21.5 | |
Supplemental Disclosure for Cash Flow: | |||
Cash refunds for income taxes, net | 2.4 | (1.2) | |
Cash payments for interest, net | [1] | 5.5 | 6.4 |
Cash payments for Restructuring and other charges | 0.2 | 0.2 | |
Cash payments/(receipts) for Separation-related charges | 0.4 | (0.7) | |
Accrued capital expenditures | 29 | 4.4 | |
Accrued investment in unconsolidated affiliate | $ 8 | $ 0 | |
[1] | For the three months ended March 31, 2022, and 2021 $4.0 million and $3.7 million of interest expense was capitalized, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Interest expense capitalized | $ 4 | $ 3.7 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock, $0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance at Dec. 31, 2020 | $ 536.2 | $ 0.1 | $ 520.9 | $ 60.3 | $ (44.4) | $ (0.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (0.8) | |||||
Stock compensation plans | 1.2 | 1.2 | ||||
Exercise of stock options | 0.2 | 0.2 | ||||
Shares withheld for taxes - common stock issuances | (0.8) | (0.8) | ||||
Net hedging gains, net of income tax | 0 | |||||
Net purchases of treasury stock - Livent NQSP | (0.1) | (0.1) | ||||
Foreign currency translation adjustments | (0.3) | (0.3) | ||||
Ending balance at Mar. 31, 2021 | 535.6 | 0.1 | 521.5 | 59.5 | (44.7) | (0.8) |
Beginning balance at Dec. 31, 2021 | 795.4 | 0.1 | 778.1 | 60.9 | (42.9) | (0.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 53.2 | |||||
Stock compensation plans | 1.7 | 1.7 | ||||
Exercise of stock options | 0.1 | 0.1 | ||||
Shares withheld for taxes - common stock issuances | (0.5) | (0.5) | ||||
Net hedging gains, net of income tax | 0.1 | 0.1 | ||||
Foreign currency translation adjustments | (1) | (1) | ||||
Ending balance at Mar. 31, 2022 | $ 849 | $ 0.1 | $ 779.4 | $ 114.1 | $ (43.8) | $ (0.8) |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 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 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2022 | |
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 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. A major growth driver for lithium in the future will be the increasing adoption of electric vehicles ("EVs") and other energy storage applications. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principle Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our condensed consolidated financial position as of March 31, 2022 and December 31, 2021, the condensed consolidated results of operations for the three months ended March 31, 2022 and 2021, and the condensed consolidated cash flows for the three months ended March 31, 2022 and 2021. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These statements, therefore, should be read in conjunction with the annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021 Annual Report on Form 10-K"). Blue Chip Swap. Our wholly owned subsidiary in Argentina uses the U.S. dollar as their functional currency. Argentina peso-denominated monetary assets and liabilities are remeasured at each balance sheet date to the official currency exchange rate then in effect which represents the exchange rate available for external commerce (import payments and export collections) and financial payments, with currency remeasurement and other transaction gains and losses recognized in earnings. In September 2019, the President of Argentina reinstituted exchange controls restricting foreign currency purchases in an attempt to stabilize Argentina’s financial markets. As a result, a legal trading mechanism known as the Blue Chip Swap emerged in Argentina for all individuals or entities to transfer U.S. dollars out of and into Argentina. The Blue Chip Swap rate is the implicit exchange rate resulting from the Blue Chip Swap transaction. Recently, the Blue Chip Swap rate has diverged significantly from Argentina’s official rate due to the economic environment. During the first quarter of 2022, to support our capital expansion projects, we transferred U.S. dollars into Argentina through the Blue Chip Swap method whereby our wholly owned Delaware subsidiary, MDA Lithium Holdings LLC, realized a cash gain, net of purchase costs, from the purchase in U.S. dollars and sale in Argentina pesos of Argentina Sovereign U.S. dollar-denominated bonds of U.S. $14.0 million, recorded to Other gain in our condensed consolidated statement of operations. Performance-Based Restricted Stock Unit ("PRSU") Awards. The Company granted approximately sixty-three thousand PRSUs ("2022 PRSUs") to key employees on February 23, 2022, as authorized under the provisions of the Livent Corporation 2018 Incentive Compensation and Stock Plan.The number of PRSUs ultimately earned will be based on Livent's Total Shareholder Return ("TSR") relative to the TSR of the companies in the Russell 3000 Chemical Supersector Index over a three Because the value of the 2022 PRSUs is dependent upon the attainment of a level of TSR, it requires the impact of the market condition to be considered when estimating the fair value of the 2022 PRSUs. As a result, the Monte Carlo model is applied and the most significant valuation assumptions used related to the 2022 PRSUs during the year ending December 31, 2022, include: Valuation date stock price $21.01 Expected volatility 72.99% Risk free rate 1.74% The February 23, 2022 grant date fair value of each PRSU granted was $20.82 per share. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New accounting guidance and regulatory items In November 2021, the Financial Accounting Standard Board ("FASB") issued ASU No. 2021-10, Government Assistance (Topic 832) . This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. We are evaluating the impact of this ASU on our consolidated financial statements. In April 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). T he amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We do not expect adoption to have material impact on our condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
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: (in Millions) Three Months Ended March 31, 2022 2021 North America (1) $ 21.3 $ 13.3 Europe, Middle East & Africa 14.7 17.5 Asia Pacific (1) 107.5 60.9 Total Revenue $ 143.5 $ 91.7 1. During the three months ended March 31, 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the three months ended March 31, 2022 for Japan, the U.S., and China totaled $30.6 million, $20.8 million, $59.1 million, respectively. During the three months ended March 31, 2021, countries with sales in exce ss of 10% of combined revenue consisted of Japan, the U.S, China and South Korea . Sales for the three months ended March 31, 2021 for Japan, the U.S., China and South Korea totaled $16.7 million, $13.1 million, $27.0 million and $11.1 million, respectively . For the three months ended March 31, 2022, one customer accounted for approximately 26% of total revenue and our 10 largest customers accounted in aggregate for approximately 69% of total revenue. For the three months ended March 31, 2021, one customer accounted for approximately 37% of total revenue and our 10 largest customers accounted in aggregate for approximately 69% of total revenue. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category: (in Millions) Three Months Ended March 31, 2022 2021 Lithium Hydroxide $ 67.5 $ 49.8 Butyllithium 33.7 25.9 High Purity Lithium Metal and Other Specialty Compounds 13.4 8.9 Lithium Carbonate and Lithium Chloride 28.9 7.1 Total Revenue $ 143.5 $ 91.7 Contract asset and contract liability balances The following table presents the opening and closing balances of our receivables, net of allowances. As o f March 31, 2022 and December 31, 2021, there were no significant contract liabilities recorded in the consolidated balance sheets. (in Millions) Balance as of March 31, 2022 Balance as of December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 105.5 $ 96.4 $ 9.1 The balance of receivables from contracts with customers 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 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 $557 million in the next three years. T |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: (in Millions) March 31, 2022 December 31, 2021 Finished goods $ 39.1 $ 52.2 Semi-finished goods 58.8 43.6 Raw materials, supplies, and other 52.6 38.8 Inventory, net $ 150.5 $ 134.6 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments In 2020, Livent entered into an agreement with The Pallinghurst Group ("Pallinghurst") relating to Québec Lithium Partners ("QLP"), a joint venture owned equally by Pallinghurst 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 it is included in Investments in our condensed consolidated balance sheets. For the three months ended March 31, 2022, we recorded a $2.2 million loss related to our 50% equity interest in QLP to Equity in net loss of unconsolidated affiliate in our condensed consolidated statement of operations. The carrying amount of our 50% equity interest in QLP was $29.6 million and $23.8 million as of March 31, 2022 and December 31, 2021, respectively. On May 2, 2022, Livent entered into a Transaction Agreement and Plan of Merger (the “Agreement”) with Pallinghurst to provide Livent with a direct 50% ownership interest in Nemaska Lithium Inc. The Company will issue 17,500,000 shares of its common stock to Pallinghurst to acquire its 50% share of QLP. Following the close of the transaction, QLP will become a wholly owned subsidiary of Livent, and Livent will in turn own 50% of Nemaska Lithium, Inc. through QLP. Investissement Québec will remain the owner of the other 50% interest in Nemaska. The closing of the transaction is subject to certain customary mutual conditions. Pallinghurst and its investors agreed, subject to certain exceptions, to a lock-up with respect to the Livent common shares received pursuant to the Agreement that expires on August 1, 2023. Either Pallinghurst or Livent may terminate the Agreement if certain closing conditions in the Agreement are not satisfied, and both may terminate upon mutual written consent. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2022 2021 Restructuring charges: Severance-related and exit costs (1) $ 0.5 $ — Other charges: Environmental remediation (2) 0.1 0.1 Other (3) 0.4 0.2 Total Restructuring and other charges $ 1.0 $ 0.3 ___________________ 1. Three months ended March 31, 2022 includes severance costs for management changes at certain administrative facilities. 2. There is one environmental remediation site in Bessemer City, North Carolina. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our interim tax provision using an estimated annual effective tax rate methodology (“EAETR”) in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. Provision for income taxes for the three months ended March 31, 2022 was $4.7 million resulting in an effective tax rate of 8.1%. Pr ovision for income taxes for the three months ended March 31, 2021 was $0.9 million resulting in an effective tax rate of 900%. The effective tax rate for the period ended March 31, 2022 was primarily impacted by fluctuations in foreign currency impacts in Argentina of ($4.3) million. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: Interest Rate Percentage Maturity March 31, 2022 December 31, 2021 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 2.70% 4.8% 2023 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (5.0) (5.4) Total long-term debt (2) $ 240.8 $ 240.4 ______________________________ 1. As of March 31, 2022 and December 31, 2021, there were $14.5 million in letters of credit outstanding under our Revolving Credit Facility and $385.5 million available funds as of March 31, 2022 and December 31, 2021. Fund availability is subject to the Company meeting its debt covenants. 2. As of March 31, 2022 and December 31, 2021, the Company had no debt maturing within one year. 2025 Notes In the second 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, March 31, 2022 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 June 30, 2022. The 2025 Notes are classified as long-term debt. The Company recognized noncash interest related to the amortization of transaction costs of $0.4 million, all of which was capitalized, for the three months ended March 31, 2022. The Company recorded $2.5 million of accrued interest expense related to the principal amount for the three months ended March 31, 2022. Revolving Credit Facility The carrying value of our deferred financing costs was $1.3 million as of March 31, 2022. Covenants The Credit Agreement contains certain affirmative and negative covenants that are binding on us and our subsidiary, Livent USA Corp., as borrowers (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 March 31, 2022. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants as of March 31, 2022. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity As of March 31, 2022 and December 31, 2021, we had 2 billion shares of common stock authorized. The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 RSU awards 49,100 — 49,100 Stock option awards 7,905 — 7,905 Purchases of treasury stock - deferred compensation plan — (1,624) (1,624) Balance as of March 31, 2022 161,848,607 (103,242) 161,745,365 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, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive (losses)/gains before reclassifications (1.0) 0.1 (0.9) Accumulated other comprehensive loss, net of tax as of March 31, 2022 $ (44.1) $ 0.3 $ (43.8) (in Millions) Foreign currency adjustments Derivative Instruments (1) Total Accumulated other comprehensive loss, net of tax as of December 31, 2020 $ (44.4) $ — $ (44.4) Other comprehensive loss before reclassifications (0.3) — (0.3) Accumulated other comprehensive loss, net of tax as of March 31, 2021 $ (44.7) $ — $ (44.7) 1. See Note 12 for more information. Reclassifications of accumulated other comprehensive loss Amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2022 were less than $0.1 million. We did not have any open derivative positions for the three months ended March 31, 2021. Dividends |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share Earnings/(Loss) per common share is computed by dividing net income/(loss) 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, performance restricted stock units and 2025 Notes. See Note 12 to our consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K for more information. 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, if any, of our 2025 Notes. Earnings/(Loss) applicable to common stock and common stock shares used in the calculation of basic and diluted earnings/(loss) per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2022 2021 Numerator: Net income/(loss) $ 53.2 $ (0.8) Net income/(loss) after assumed conversion of 2025 Notes (1) $ 53.2 $ (0.8) Denominator: Weighted average common shares outstanding - basic 161.7 146.5 Dilutive share equivalents from share-based plans 1.6 — Dilutive share equivalents from 2025 Notes 28.1 — Weighted average common shares outstanding - diluted 191.4 146.5 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ 0.33 $ (0.01) Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ 0.28 $ (0.01) 1. For the three months ended March 31, 2022, all of the interest for the 2025 Notes was capitalized. 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. See Note 11 to our consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K for more information on the 2025 Notes. (in Millions) Three Months Ended March 31, 2022 2021 Share equivalents from share-based plans — 1.4 Share equivalents from 2025 Notes — 28.1 Total antidilutive weighted average share equivalents — 29.5 Anti-dilutive stock options |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instrument, Risk Management and Fair Value Measurements | Financial Instruments, Risk Management and Fair Value Measurements 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 $692.7 million and $240.8 million, respectively, as of March 31, 2022. 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 generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in accumulated other comprehensive 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 March 31, 2022, we had open foreign currency forward contracts in AOCL in a net after-tax gain position of $0.3 million designated as cash flow hedges of underlying forecasted sales and purchases. As of March 31, 2022 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $15.5 million. A net after-tax gain of $0.3 million, representing open foreign currency exchange contracts, will be realized in earnings during the year ending December 31, 2022 if spot rates in the future are consistent with market rates as of March 31, 2022. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the condensed consolidated statements of 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 $53.7 million as of March 31, 2022. Fair Value of Derivative Instruments. The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. March 31, 2022 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.4 Total derivative assets 0.4 Net derivative assets $ 0.4 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 Derivatives in Cash Flow Hedging Relationships The following tables summarize the losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. For the three months ended March 31, 2021, we did not have any open derivative cash flow hedge contracts. (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ 0.2 Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax 0.1 Accumulated other comprehensive gain, net of tax as of March 31, 2022 $ 0.3 Derivatives Not Designated as Cash Flow Hedging Instruments Location of Loss Amount of Pre-tax Loss Recognized in Income on Derivatives (1) Three Months Ended March 31, (in Millions) 2022 2021 Foreign Exchange contracts Cost of sales (2) $ (1.6) $ (0.5) Total $ (1.6) $ (0.5) ____________________ 1. Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 2. A loss of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three months ended March 31, 2022 and 2021. Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.8 $ 3.8 $ — $ — Total Assets $ 3.8 $ 3.8 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 6.6 $ 6.6 $ — $ — Total Liabilities $ 6.6 $ 6.6 $ — $ — (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 $ — $ — ____________________ 1. Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.2 million and gain of $0.2 million was recorded for the three months ended March 31, 2022 and March 31, 2021, respectively, related to the Livent common stock. The mark-to-market losses and gains were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are a party to various legal proceedings, including those noted in this section. Livent records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred. In addition to the legal proceedings noted below, we have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity. Argentine Customs Authority On July 31, 2020, we received notice from the Argentine Customs Authority that it was conducting an audit of Minera del Altiplano SA, our subsidiary in Argentina (“MdA”). The audit relates to the export of Lithium Carbonate from Argentina for the period January 10, 2015 through December 31, 2017. Although this relates to a period of time when MdA was a subsidiary of FMC, the Company agreed to bear any possible liability for this matter under the terms of the Tax Matters Agreement that it entered into with FMC in connection with the Separation. A range of reasonably possible liabilities, if any, cannot be currently estimated by the Company. Leases All of our leases are operating leases as of March 31, 2022 and December 31, 2021. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of one thirteen Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2022 2021 Lease Cost Operating lease cost $ 0.4 $ 0.2 Short-term lease cost 0.1 0.3 Total lease cost (1) $ 0.5 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.4 $ 0.5 __________________________ 1. Variable lease cost for the three months ended March 31, 2022 and 2021 was less than $0.1 million. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. As of March 31, 2022, our operating leases had a weighted average remaining lease term of 8.2 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 Remainder of 2022 $ 1.0 2023 1.2 2024 1.1 2025 1.1 2026 0.2 Thereafter 2.8 Total future minimum lease payments 7.4 Less: Imputed interest (1.3) Total $ 6.1 |
Supplemental Information
Supplemental Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2022 December 31, 2021 Prepaid and other current assets Tax related items $ 12.6 $ 17.7 Prepaid expenses 8.9 12.2 Argentina government receivable (1) 6.1 13.3 Other receivables 3.3 2.3 Bank Acceptance Drafts (2) 1.7 — Derivative assets (Note 12) 0.4 0.2 Other current assets 7.0 9.6 Total $ 40.0 $ 55.3 (in Millions) March 31, 2022 December 31, 2021 Other assets Argentina government receivable (1) $ 65.7 $ 55.8 Advance to contract manufacturers (3) 15.5 16.0 Long-term raw materials inventory 5.4 4.9 Tax related items 2.5 1.3 Capitalized software, net 1.4 1.5 Other assets 10.4 11.4 Total $ 100.9 $ 90.9 _________________ 1. We conduct business in Argentina. As of March 31, 2022 and December 31, 2021, $38.4 million and $38.4 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances, we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. (in Millions) March 31, 2022 December 31, 2021 Accrued and other current liabilities Accrued investment in unconsolidated affiliate $ 14.2 $ 6.2 Accrued payroll 7.8 17.1 Plant restructuring reserves 3.2 3.2 Advance customer payments 0.7 — Retirement liability - 401k 0.6 2.5 Environmental reserves, current 0.5 0.5 Severance related 0.3 — Other accrued and other current liabilities (1) 26.9 32.3 Total $ 54.2 $ 61.8 (in Millions) March 31, 2022 December 31, 2021 Other long-term liabilities Deferred compensation plan obligation $ 6.6 $ 5.9 Contingencies related to uncertain tax positions (2) 4.0 2.3 Self-insurance reserves 1.5 1.5 Asset retirement obligations 0.3 0.3 Other long-term liabilities 1.7 1.7 Total $ 14.1 $ 11.7 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of March 31, 2022, we have recorded a liability for uncertain tax positions of $3.6 million and a $0.4 million indem nification liability where the offsetting uncertain tax position is with FMC, per the tax matters agreement. |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. |
New Accounting Guidance and Regulatory Items and Recently Adopted Accounting Guidance | New accounting guidance and regulatory items In November 2021, the Financial Accounting Standard Board ("FASB") issued ASU No. 2021-10, Government Assistance (Topic 832) . This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. We are evaluating the impact of this ASU on our consolidated financial statements. In April 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). T he amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We do not expect adoption to have material impact on our condensed consolidated financial statements. |
Revenue Recognition | The balance of receivables from contracts with customers 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 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 $557 million in the next three years. T |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Share-Based Payment Award, PRSU Valuation Assumptions | As a result, the Monte Carlo model is applied and the most significant valuation assumptions used related to the 2022 PRSUs during the year ending December 31, 2022, include: Valuation date stock price $21.01 Expected volatility 72.99% Risk free rate 1.74% |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by major geographical region: (in Millions) Three Months Ended March 31, 2022 2021 North America (1) $ 21.3 $ 13.3 Europe, Middle East & Africa 14.7 17.5 Asia Pacific (1) 107.5 60.9 Total Revenue $ 143.5 $ 91.7 1. During the three months ended March 31, 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the three months ended March 31, 2022 for Japan, the U.S., and China totaled $30.6 million, $20.8 million, $59.1 million, respectively. During the three months ended March 31, 2021, countries with sales in exce ss of 10% of combined revenue consisted of Japan, the U.S, China and South Korea . Sales for the three months ended March 31, 2021 for Japan, the U.S., China and South Korea totaled $16.7 million, $13.1 million, $27.0 million and $11.1 million, respectively . (in Millions) Three Months Ended March 31, 2022 2021 Lithium Hydroxide $ 67.5 $ 49.8 Butyllithium 33.7 25.9 High Purity Lithium Metal and Other Specialty Compounds 13.4 8.9 Lithium Carbonate and Lithium Chloride 28.9 7.1 Total Revenue $ 143.5 $ 91.7 |
Receivables and Contract Liabilities | The following table presents the opening and closing balances of our receivables, net of allowances. As o f March 31, 2022 and December 31, 2021, there were no significant contract liabilities recorded in the consolidated balance sheets. (in Millions) Balance as of March 31, 2022 Balance as of December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 105.5 $ 96.4 $ 9.1 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in Millions) March 31, 2022 December 31, 2021 Finished goods $ 39.1 $ 52.2 Semi-finished goods 58.8 43.6 Raw materials, supplies, and other 52.6 38.8 Inventory, net $ 150.5 $ 134.6 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2022 2021 Restructuring charges: Severance-related and exit costs (1) $ 0.5 $ — Other charges: Environmental remediation (2) 0.1 0.1 Other (3) 0.4 0.2 Total Restructuring and other charges $ 1.0 $ 0.3 ___________________ 1. Three months ended March 31, 2022 includes severance costs for management changes at certain administrative facilities. 2. There is one environmental remediation site in Bessemer City, North Carolina. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: Interest Rate Percentage Maturity March 31, 2022 December 31, 2021 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 2.70% 4.8% 2023 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (5.0) (5.4) Total long-term debt (2) $ 240.8 $ 240.4 ______________________________ 1. As of March 31, 2022 and December 31, 2021, there were $14.5 million in letters of credit outstanding under our Revolving Credit Facility and $385.5 million available funds as of March 31, 2022 and December 31, 2021. Fund availability is subject to the Company meeting its debt covenants. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 RSU awards 49,100 — 49,100 Stock option awards 7,905 — 7,905 Purchases of treasury stock - deferred compensation plan — (1,624) (1,624) Balance as of March 31, 2022 161,848,607 (103,242) 161,745,365 |
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, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive (losses)/gains before reclassifications (1.0) 0.1 (0.9) Accumulated other comprehensive loss, net of tax as of March 31, 2022 $ (44.1) $ 0.3 $ (43.8) (in Millions) Foreign currency adjustments Derivative Instruments (1) Total Accumulated other comprehensive loss, net of tax as of December 31, 2020 $ (44.4) $ — $ (44.4) Other comprehensive loss before reclassifications (0.3) — (0.3) Accumulated other comprehensive loss, net of tax as of March 31, 2021 $ (44.7) $ — $ (44.7) 1. See Note 12 for more information. |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Earnings/(Loss) applicable to common stock and common stock shares used in the calculation of basic and diluted earnings/(loss) per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2022 2021 Numerator: Net income/(loss) $ 53.2 $ (0.8) Net income/(loss) after assumed conversion of 2025 Notes (1) $ 53.2 $ (0.8) Denominator: Weighted average common shares outstanding - basic 161.7 146.5 Dilutive share equivalents from share-based plans 1.6 — Dilutive share equivalents from 2025 Notes 28.1 — Weighted average common shares outstanding - diluted 191.4 146.5 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ 0.33 $ (0.01) Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ 0.28 $ (0.01) |
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. See Note 11 to our consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K for more information on the 2025 Notes. (in Millions) Three Months Ended March 31, 2022 2021 Share equivalents from share-based plans — 1.4 Share equivalents from 2025 Notes — 28.1 Total antidilutive weighted average share equivalents — 29.5 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 Assets at Fair Value | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. March 31, 2022 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.4 Total derivative assets 0.4 Net derivative assets $ 0.4 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 |
Derivatives in Cash Flow Hedging Relationships | The following tables summarize the losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. For the three months ended March 31, 2021, we did not have any open derivative cash flow hedge contracts. (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ 0.2 Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax 0.1 Accumulated other comprehensive gain, net of tax as of March 31, 2022 $ 0.3 |
Derivatives Not Designated as Hedging Instruments | Location of Loss Amount of Pre-tax Loss Recognized in Income on Derivatives (1) Three Months Ended March 31, (in Millions) 2022 2021 Foreign Exchange contracts Cost of sales (2) $ (1.6) $ (0.5) Total $ (1.6) $ (0.5) ____________________ 1. Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.8 $ 3.8 $ — $ — Total Assets $ 3.8 $ 3.8 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 6.6 $ 6.6 $ — $ — Total Liabilities $ 6.6 $ 6.6 $ — $ — (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 $ — $ — ____________________ 1. Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.2 million and gain of $0.2 million was recorded for the three months ended March 31, 2022 and March 31, 2021, respectively, related to the Livent common stock. The mark-to-market losses and gains were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost and Terms | Quantitative disclosures about our leases are summarized in the table below. Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2022 2021 Lease Cost Operating lease cost $ 0.4 $ 0.2 Short-term lease cost 0.1 0.3 Total lease cost (1) $ 0.5 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.4 $ 0.5 __________________________ 1. Variable lease cost for the three months ended March 31, 2022 and 2021 was less than $0.1 million. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. |
Schedule of Maturity of Operating Lease Liabilities | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows Remainder of 2022 $ 1.0 2023 1.2 2024 1.1 2025 1.1 2026 0.2 Thereafter 2.8 Total future minimum lease payments 7.4 Less: Imputed interest (1.3) Total $ 6.1 |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid and Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2022 December 31, 2021 Prepaid and other current assets Tax related items $ 12.6 $ 17.7 Prepaid expenses 8.9 12.2 Argentina government receivable (1) 6.1 13.3 Other receivables 3.3 2.3 Bank Acceptance Drafts (2) 1.7 — Derivative assets (Note 12) 0.4 0.2 Other current assets 7.0 9.6 Total $ 40.0 $ 55.3 (in Millions) March 31, 2022 December 31, 2021 Other assets Argentina government receivable (1) $ 65.7 $ 55.8 Advance to contract manufacturers (3) 15.5 16.0 Long-term raw materials inventory 5.4 4.9 Tax related items 2.5 1.3 Capitalized software, net 1.4 1.5 Other assets 10.4 11.4 Total $ 100.9 $ 90.9 _________________ 1. We conduct business in Argentina. As of March 31, 2022 and December 31, 2021, $38.4 million and $38.4 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances, we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. |
Schedule of Accrued and Other Liabilities | (in Millions) March 31, 2022 December 31, 2021 Accrued and other current liabilities Accrued investment in unconsolidated affiliate $ 14.2 $ 6.2 Accrued payroll 7.8 17.1 Plant restructuring reserves 3.2 3.2 Advance customer payments 0.7 — Retirement liability - 401k 0.6 2.5 Environmental reserves, current 0.5 0.5 Severance related 0.3 — Other accrued and other current liabilities (1) 26.9 32.3 Total $ 54.2 $ 61.8 (in Millions) March 31, 2022 December 31, 2021 Other long-term liabilities Deferred compensation plan obligation $ 6.6 $ 5.9 Contingencies related to uncertain tax positions (2) 4.0 2.3 Self-insurance reserves 1.5 1.5 Asset retirement obligations 0.3 0.3 Other long-term liabilities 1.7 1.7 Total $ 14.1 $ 11.7 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of March 31, 2022, we have recorded a liability for uncertain tax positions of $3.6 million and a $0.4 million indem nification liability where the offsetting uncertain tax position is with FMC, per the tax matters agreement. |
Principal Accounting Policies_3
Principal Accounting Policies and Related Financial Information - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other gain | $ 14 | $ 0 | |
Performance Shares | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Awards granted (in shares) | 63 | ||
Awards granted, weighted average grant date fair value (USD per share) | $ 20.82 | ||
Performance period (in years) | 3 years | ||
Performance Shares | Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Vesting percentage | 0.00% | ||
Performance Shares | Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Vesting percentage | 200.00% |
Principal Accounting Policies_4
Principal Accounting Policies and Related Financial Information - Fair Value Assumptions (Details) - Performance-Based Restricted Stock Unit | 3 Months Ended |
Mar. 31, 2022$ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Share price (USD per share) | $ 21.01 |
Expected volatility | 72.99% |
Risk-free interest rate | 1.74% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 143.5 | $ 91.7 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 21.3 | 13.3 |
Europe, Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 14.7 | 17.5 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 107.5 | 60.9 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 30.6 | 16.7 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 20.8 | 13.1 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 59.1 | 27 |
South Korea | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 11.1 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation | $ 557 | |
Customer One | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 26.00% | 37.00% |
Ten Largest Customers | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 69.00% | 69.00% |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 143.5 | $ 91.7 |
Lithium Hydroxide | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 67.5 | 49.8 |
Butyllithium | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 33.7 | 25.9 |
High Purity Lithium Metal and Other Specialty Compounds | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 13.4 | 8.9 |
Lithium Carbonate and Lithium Chloride | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 28.9 | $ 7.1 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers, net of allowances | $ 105.5 | $ 96.4 |
Increase | $ 9.1 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 557 |
Expected timing of satisfaction of performance obligations | 3 years |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 39.1 | $ 52.2 |
Semi-finished goods | 58.8 | 43.6 |
Raw materials, supplies, and other | 52.6 | 38.8 |
Inventory, net | $ 150.5 | $ 134.6 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net loss of unconsolidated affiliate | $ 2.2 | $ 1.3 | ||
Forecast | QLP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Voting interest acquired (as a percent) | 50.00% | |||
Forecast | Subsequent Event | QLP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of shares issued in transaction (in shares) | 17,500,000 | |||
QLP | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net loss of unconsolidated affiliate | $ 2.2 | |||
Equity interest percentage | 50.00% | |||
Equity method investments | $ 29.6 | $ 23.8 | ||
QLP | Forecast | Nemaska Lithium Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest percentage | 50.00% | |||
Nemaska Lithium Inc. | Forecast | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest percentage | 50.00% |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring Charges in Consolidated Income (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)site | Mar. 31, 2021USD ($) | |
Restructuring charges: | ||
Severance-related and exit costs | $ 0.5 | $ 0 |
Other charges: | ||
Environmental remediation | 0.1 | 0.1 |
Other | 0.4 | 0.2 |
Total Restructuring and other charges | $ 1 | $ 0.3 |
Number of environmental remediation sites | site | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ (4.7) | $ (0.9) |
Effective tax rate | 8.10% | 900.00% |
Change in foreign currency | $ (4.3) |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Discount - 2025 Notes | $ (5,000,000) | $ (5,400,000) |
Total long-term debt | 240,800,000 | 240,400,000 |
Debt maturing within one year | $ 0 | 0 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Convertible debt, interest rate | 4.125% | |
Long-term debt, gross | $ 245,800,000 | 245,800,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding amount | 14,500,000 | |
Line of credit, remaining borrowing capacity | 385,500,000 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 0 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 2.70% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 4.80% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021day | |
First Amendment | Citibank, N.A. | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Minimum allowable interest coverage ratio | 3.5 | |
Convertible Debt | 2025 Notes | ||
Debt Instrument [Line Items] | ||
Amortization of debt discount and transaction costs | $ 0.4 | |
Interest expense on debt, excluding amortization of debt discount | 2.5 | |
Convertible Debt | Conversion Circumstance One | ||
Debt Instrument [Line Items] | ||
Threshold trading days | day | 20 | |
Threshold consecutive trading days | day | 30 | |
Threshold percentage of stock price trigger | 130.00% | |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | $ 1.3 | |
Maximum net leverage ratio | 3.5 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Net income/(loss) | $ 53,200,000 | $ (800,000) | |
Dividends paid | $ 0 | $ 0 |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Capital Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 161,791,602 |
Beginning balance, outstanding (in shares) | 161,689,984 |
Ending balance (in shares) | 161,848,607 |
Ending balance, outstanding (in shares) | 161,745,365 |
Treasury Stock [Roll Forward] | |
Beginning balance (in shares) | (101,618) |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (1,624) |
Ending balance (in shares) | (103,242) |
Livent Plan | Restricted Stock Units (RSUs) | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 49,100 |
Livent Plan | Stock Option | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 7,905 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 795.4 | $ 536.2 |
Other comprehensive (losses)/gains before reclassifications | (0.9) | (0.3) |
Ending balance | 849 | 535.6 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (42.9) | (44.4) |
Ending balance | (43.8) | (44.7) |
Foreign currency adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (43.1) | (44.4) |
Other comprehensive (losses)/gains before reclassifications | (1) | (0.3) |
Ending balance | (44.1) | (44.7) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.2 | 0 |
Other comprehensive (losses)/gains before reclassifications | 0.1 | 0 |
Ending balance | $ 0.3 | $ 0 |
Equity - Reclassification out o
Equity - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income/(loss) | $ 53.2 | $ (0.8) |
Amounts Reclassified from Acccumulated Other Comprehensive Loss | Maximum | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income/(loss) | $ 0.1 |
Earnings_(Loss) Per Share - EPS
Earnings/(Loss) Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net loss | $ 53.2 | $ (0.8) |
Net income/(loss) after assumed conversion of 2025 Notes (1) | 53.2 | (0.8) |
Net income/(loss) after assumed conversion of 2025 Notes (1) | $ 53.2 | $ (0.8) |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 161.7 | 146.5 |
Dilutive share equivalents from share-based plans (in shares) | 1.6 | 0 |
Dilutive share equivalents from 2025 Notes (in shares) | 28.1 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 191.4 | 146.5 |
Basic earnings/(loss) per common share: | ||
Net loss per weighted average share - basic (in dollars per share) | $ 0.33 | $ (0.01) |
Net loss weighted average share - diluted (in dollars per share) | $ 0.28 | $ (0.01) |
Earnings_(Loss) Per Share - Ant
Earnings/(Loss) Per Share - Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 29.5 |
Share-based Plans | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 1.4 |
2025 Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 28.1 |
Earnings_(Loss) Per Share - Nar
Earnings/(Loss) Per Share - Narrative (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 29,500,000 |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 0 | 547,432 |
Antidilutive securities, exercise price (in dollars per share) | $ 20.35 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) $ in Millions | Mar. 31, 2022USD ($) |
Derivative [Line Items] | |
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | $ 15.5 |
Forward Contracts | |
Derivative [Line Items] | |
AOCI, net | 0.3 |
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 | 53.7 |
Estimate of Fair Value Measurement | |
Derivative [Line Items] | |
Long-term debt value | 692.7 |
Reported Value Measurement | |
Derivative [Line Items] | |
Long-term debt value | $ 240.8 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Schedule of Derivatives (Details) - Prepaid Expenses and Other Current Assets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 0.4 | $ 0.2 |
Net derivative assets | 0.4 | 0.2 |
Foreign Exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 0.4 | $ 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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 795.4 | $ 536.2 |
Unrealized hedging gains, net of tax | 0.9 | 0.3 |
Total derivatives instruments impact on comprehensive income, net of tax | (0.9) | (0.3) |
Ending balance | 849 | 535.6 |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.2 | 0 |
Unrealized hedging gains, net of tax | (0.1) | 0 |
Total derivatives instruments impact on comprehensive income, net of tax | 0.1 | |
Ending balance | $ 0.3 | $ 0 |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (1.6) | $ (0.5) |
Foreign Exchange contracts | ||
Derivative [Line Items] | ||
Loss on derivative | 0.1 | |
Foreign Exchange contracts | Cost of Sales and Services | ||
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (1.6) | $ (0.5) |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Assets | |||
Investments in deferred compensation plan | $ 3.8 | $ 3.4 | |
Total Assets | 3.8 | 3.4 | |
Liabilities | |||
Deferred compensation plan obligation | 6.6 | 5.9 | |
Total Liabilities | 6.6 | 5.9 | |
Selling, General and Administrative Expenses | |||
Liabilities | |||
Mark-to-market loss on common stock | 0.2 | $ 0.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Investments in deferred compensation plan | 3.8 | 3.4 | |
Total Assets | 3.8 | 3.4 | |
Liabilities | |||
Deferred compensation plan obligation | 6.6 | 5.9 | |
Total Liabilities | 6.6 | 5.9 | |
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 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - ft² ft² in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Apr. 13, 2021 |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average remaining lease term (in years) | 8 years 2 months 12 days | ||
Operating lease, weighted average discount rate (as a percent) | 4.90% | ||
Corporate Headquarters | |||
Lessee, Lease, Description [Line Items] | |||
Area of office space in terminated lease (square feet) | 25 | ||
Area of office space in new lease agreement (square feet) | 13 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, remaining lease term (in years) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, remaining lease term (in years) | 13 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease Cost | ||
Operating lease cost | $ 0.4 | $ 0.2 |
Short-term lease cost | 0.1 | 0.3 |
Total lease cost | 0.5 | 0.5 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash paid for operating leases | 0.4 | 0.5 |
Maximum | ||
Lease Cost | ||
Variable lease cost | 0.1 | 0.1 |
Lessee, Lease, Description [Line Items] | ||
Variable lease cost | $ 0.1 | $ 0.1 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2022USD ($) |
Undiscounted cash flows | |
Remainder of 2022 | $ 1 |
2023 | 1.2 |
2024 | 1.1 |
2025 | 1.1 |
2026 | 0.2 |
Thereafter | 2.8 |
Total future minimum lease payments | 7.4 |
Less: Imputed interest | (1.3) |
Total | $ 6.1 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid and other current assets | ||
Tax related items | $ 12.6 | $ 17.7 |
Prepaid expenses | 8.9 | 12.2 |
Argentina government receivable | 6.1 | 13.3 |
Other receivables | 3.3 | 2.3 |
Bank Acceptance Drafts | 1.7 | 0 |
Derivative assets (Note 12) | 0.4 | 0.2 |
Other current assets | 7 | 9.6 |
Total | $ 40 | $ 55.3 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other assets | ||
Argentina government receivable | $ 65.7 | $ 55.8 |
Advance to contract manufacturers | 15.5 | 16 |
Long-term raw materials inventory | 5.4 | 4.9 |
Capitalized software, net | 1.4 | 1.5 |
Tax related items | 2.5 | 1.3 |
Other assets | 10.4 | 11.4 |
Total | 100.9 | 90.9 |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 38.4 | $ 38.4 |
Supplemental Information - Accr
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued and other current liabilities | ||
Accrued investment in unconsolidated affiliate | $ 14.2 | $ 6.2 |
Accrued payroll | 7.8 | 17.1 |
Plant restructuring reserves | 3.2 | 3.2 |
Advance customer payments | 0.7 | 0 |
Retirement liability - 401k | 0.6 | 2.5 |
Environmental reserves, current | 0.5 | 0.5 |
Severance related | 0.3 | 0 |
Other accrued and other current liabilities | 26.9 | 32.3 |
Total | $ 54.2 | $ 61.8 |
Supplemental Information - Ot_2
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other long-term liabilities | ||
Deferred compensation plan obligation | $ 6.6 | $ 5.9 |
Contingencies related to uncertain tax positions | 4 | 2.3 |
Self-insurance reserves | 1.5 | 1.5 |
Asset retirement obligations | 0.3 | 0.3 |
Other long-term liabilities | 1.7 | 1.7 |
Total | 14.1 | $ 11.7 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 3.6 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 0.4 |