Cover page
Cover page | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 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 $0.001 per share |
Trading Symbol | LTHM |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 179,270,450 |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 218.7 | $ 102.2 | $ 362.2 | $ 193.9 |
Cost of sales | 116.2 | 81.8 | 199.8 | 160.2 |
Gross margin | 102.5 | 20.4 | 162.4 | 33.7 |
Selling, general and administrative expenses | 13.8 | 11.7 | 25.6 | 22.4 |
Research and development expenses | 0.8 | 0.7 | 1.7 | 1.4 |
Restructuring and other charges | 2.9 | 2 | 3.9 | 2.3 |
Separation-related costs | 0.3 | 0.6 | 0.4 | 0.5 |
Total costs and expenses | 134 | 96.8 | 231.4 | 186.8 |
Income from operations before equity in net loss of unconsolidated affiliate, interest expense, net and other gain | 84.7 | 5.4 | 130.8 | 7.1 |
Equity in net loss of unconsolidated affiliate | 2.7 | 1.4 | 4.9 | 2.7 |
Interest expense, net | 0 | 0 | 0 | 0.3 |
Other gain | 8.2 | 0 | 22.2 | 0 |
Income from operations before income taxes | 90.2 | 4 | 148.1 | 4.1 |
Income tax expense/(benefit) | (30.2) | 2.5 | (34.9) | 1.6 |
Net income | $ 60 | $ 6.5 | $ 113.2 | $ 5.7 |
Net loss per weighted average share - basic (in dollars per share) | $ 0.36 | $ 0.04 | $ 0.69 | $ 0.04 |
Net loss weighted average share - diluted (in dollars per share) | $ 0.31 | $ 0.04 | $ 0.58 | $ 0.03 |
Weighted average common shares outstanding - basic (in shares) | 166.6 | 148.7 | 164.2 | 147.6 |
Weighted average common shares outstanding - diluted (in shares) | 196.5 | 178 | 194 | 177 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 60 | $ 6.5 | $ 113.2 | $ 5.7 |
Foreign currency adjustments: | ||||
Foreign currency translation (loss)/gain arising during the period | (4.4) | 1.2 | (5.4) | 0.9 |
Total foreign currency translation adjustments | (4.4) | 1.2 | (5.4) | 0.9 |
Derivative instruments: | ||||
Unrealized hedging (losses)/gains, net of tax of less than $(0.1), zero, zero, and less than $0.1 | 0.1 | 0 | 0 | (0.1) |
Reclassification of deferred hedging gains, net of income tax | 0 | 0.1 | 0 | 0 |
Total derivative instruments, net of tax of $(0.1), less than $0.1, zero, and less than $0.1 | (0.1) | 0.1 | 0 | 0.1 |
Other comprehensive (loss)/income, net of tax | (4.5) | 1.3 | (5.4) | 1 |
Comprehensive income | $ 55.5 | $ 7.8 | $ 107.8 | $ 6.7 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized hedging gains, tax | $ (0.1) | $ 0 | $ 0 | $ 0.1 |
Reclassification of deferred hedging gains included in net income, tax | 0 | 0 | 0.1 | 0 |
Total derivative instruments loss, tax | $ (0.1) | $ 0 | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 49 | $ 113 |
Trade receivables, net of allowance of approximately $0.3 in 2022 and $0.3 in 2021 | 132.8 | 96.4 |
Inventories, net | 156.3 | 134.6 |
Prepaid and other current assets | 48.2 | 55.3 |
Total current assets | 386.3 | 399.3 |
Investments | 421.3 | 27.2 |
Property, plant and equipment, net of accumulated depreciation of $248.0 in 2022 and $243.0 in 2021 | 803.2 | 677.9 |
Deferred income taxes | 0.6 | 0.9 |
Right of use assets - operating leases, net | 5.5 | 6.3 |
Other assets | 104.5 | 90.9 |
Total assets | 1,721.4 | 1,202.5 |
Current liabilities | ||
Current portion of long-term debt | 13.5 | 0 |
Accounts payable, trade and other | 82.9 | 65.4 |
Accrued and other liabilities | 49.4 | 61.8 |
Operating lease liabilities - current | 1.1 | 1.1 |
Income taxes | 1.9 | 3 |
Total current liabilities | 148.8 | 131.3 |
Long-term debt | 241.2 | 240.4 |
Operating lease liabilities - long-term | 4.5 | 5.4 |
Environmental liabilities | 5.7 | 5.6 |
Deferred income taxes | 24.9 | 12.7 |
Other long-term liabilities | 16.2 | 11.7 |
Commitments and contingent liabilities (Note 13) | 0 | 0 |
Total current and long-term liabilities | 441.3 | 407.1 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 179,374,126 and 161,791,602 shares issued; 179,270,450 and 161,689,984 outstanding as of June 30, 2022 and December 31, 2021, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 1,155.1 | 778.1 |
Retained earnings | 174.1 | 60.9 |
Accumulated other comprehensive loss | (48.3) | (42.9) |
Treasury stock, at cost; 103,676 and 101,618 shares as of June 30, 2022 and December 31, 2021, respectively | (0.9) | (0.8) |
Total equity | 1,280.1 | 795.4 |
Total liabilities and equity | $ 1,721.4 | $ 1,202.5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Allowance for trade receivables | $ 0.3 | $ 0.3 |
Accumulated depreciation | $ 248 | $ 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) | 179,374,126 | 161,791,602 |
Common stock, outstanding (in shares) | 179,270,450 | 161,689,984 |
Treasury stock, at cost (in shares) | 103,676 | 101,618 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash provided by operating activities: | |||
Net loss | $ 113.2 | $ 5.7 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 12.8 | 12.5 | |
Restructuring and other charges/(income) | 4.3 | (0.7) | |
Deferred income taxes | 12.5 | (3) | |
Separation-related income | (0.3) | (0.1) | |
Share-based compensation | 3.4 | 2.6 | |
Change in investments in trust fund securities | (0.2) | 0.1 | |
Loss on disposal of assets | 0.1 | 0 | |
Deferred financing fees amortization | 0 | 0.3 | |
Equity in net loss of unconsolidated affiliate | 4.9 | 2.7 | |
Other gain | (22.2) | 0 | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (40.7) | (6.8) | |
Inventories | (25.1) | 0.9 | |
Accounts payable, trade and other | 19.5 | 3.5 | |
Changes in deferred compensation | 0.8 | 1.1 | |
Income taxes | (1.1) | 0.7 | |
Change in prepaid and other current assets and other assets | (7.9) | 16.9 | |
Change in accrued and other current and long-term liabilities | (12.8) | (5.8) | |
Cash provided by operating activities | 61.2 | 30.6 | |
Cash used in investing activities: | |||
Capital expenditures | [1] | (136.6) | (40.4) |
Investments in Livent NQSP securities | (0.7) | (1.1) | |
Proceeds from Blue Chip Swap, net of purchases | 22.2 | 0 | |
Investment in unconsolidated affiliate | (8) | ||
Other investing activities | (1) | (1.2) | |
Cash used in investing activities | (124.1) | (42.7) | |
Cash provided by financing activities: | |||
Proceeds from Revolving Credit Facility | 0 | 39.5 | |
Repayments of Revolving Credit Facility | 0 | (75.1) | |
Proceeds from Offering | 0 | 261.6 | |
Payments of underwriting fees and expenses - Offering | 0 | (9.3) | |
Proceeds from issuance of common stock - incentive plans | 0.3 | 0.2 | |
Net purchases of treasury stock - Livent NQSP | (0.1) | 0 | |
Cash provided by financing activities | 0.2 | 216.9 | |
Effect of exchange rate changes on cash and cash equivalents | (1.3) | 0.2 | |
(Decrease)/increase in cash and cash equivalents | (64) | 205 | |
Cash and cash equivalents, beginning of period | 113 | 11.6 | |
Cash and cash equivalents, end of period | 49 | 216.6 | |
Supplemental Disclosure for Cash Flow: | |||
Cash payments/(refunds) for income taxes, net of refunds | 24.4 | (0.4) | |
Cash payments for interest, net | [1] | 6.1 | 7.3 |
Cash (receipts)/payments for Restructuring and other charges | (0.4) | 3 | |
Cash payments for Separation-related charges | 0.6 | 0.6 | |
Accrued capital expenditures | 34.5 | 6.7 | |
Accrued transaction costs - investment in unconsolidated affiliate | 9.7 | 0 | |
Non-cash investment in unconsolidated affiliates | 387.1 | 2.6 | |
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | $ 0 | $ 2.1 | |
[1] For the six months ended June 30, 2022, and 2021 $8.0 million and $7.7 million of interest expense was capitalized, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Interest expense capitalized | $ 8 | $ 7.7 |
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 income | (0.8) | (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 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, 2020 | 536.2 | 0.1 | 520.9 | 60.3 | (44.4) | (0.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5.7 | |||||
Net hedging gains, net of income tax | 0.1 | |||||
Unrealized hedging (losses)/gains, net of tax of less than $(0.1), zero, zero, and less than $0.1 | 0.1 | |||||
Foreign currency translation adjustments | 0.9 | |||||
Ending balance at Jun. 30, 2021 | 797.1 | 0.1 | 775.2 | 66 | (43.4) | (0.8) |
Beginning balance at Mar. 31, 2021 | 535.6 | 0.1 | 521.5 | 59.5 | (44.7) | (0.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6.5 | 6.5 | ||||
Stock compensation plans | 1.4 | 1.4 | ||||
Net hedging gains, net of income tax | 0.1 | 0.1 | ||||
Unrealized hedging (losses)/gains, net of tax of less than $(0.1), zero, zero, and less than $0.1 | 0 | |||||
Foreign currency translation adjustments | 1.2 | 1.2 | ||||
Issuance of common stock - Offering | 252.3 | 252.3 | ||||
Ending balance at Jun. 30, 2021 | 797.1 | 0.1 | 775.2 | 66 | (43.4) | (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 income | 53.2 | 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) |
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 income | 113.2 | |||||
Net hedging gains, net of income tax | 0 | |||||
Unrealized hedging (losses)/gains, net of tax of less than $(0.1), zero, zero, and less than $0.1 | 0 | |||||
Foreign currency translation adjustments | (5.4) | |||||
Ending balance at Jun. 30, 2022 | 1,280.1 | 0.1 | 1,155.1 | 174.1 | (48.3) | (0.9) |
Beginning balance at Mar. 31, 2022 | 849 | 0.1 | 779.4 | 114.1 | (43.8) | (0.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 60 | 60 | ||||
Stock compensation plans | 1.8 | 1.8 | ||||
Issuance of common stock - QLP Merger | 373.9 | 373.9 | ||||
Exercise of stock options | 0.2 | 0.2 | ||||
Shares withheld for taxes - common stock issuances | (0.2) | (0.2) | ||||
Net purchases of treasury stock - Livent NQSP | (0.1) | (0.1) | ||||
Net hedging gains, net of income tax | (0.1) | |||||
Unrealized hedging (losses)/gains, net of tax of less than $(0.1), zero, zero, and less than $0.1 | (0.1) | (0.1) | ||||
Foreign currency translation adjustments | (4.4) | (4.4) | 0 | |||
Ending balance at Jun. 30, 2022 | $ 1,280.1 | $ 0.1 | $ 1,155.1 | $ 174.1 | $ (48.3) | $ (0.9) |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Description of the Business
Description of the Business | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021, the condensed consolidated results of operations for the six months ended June 30, 2022 and 2021, and the condensed consolidated cash flows for the six months ended June 30, 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 half 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 from the purchase in U.S. dollars and sale in Argentina pesos of Argentina Sovereign U.S. dollar-denominated bonds. The cash gain of U.S. $8.2 million and $22.2 million for the three and six months ended June 30, 2022, respectively, was 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 year performance period from January 1, 2022 through December 31, 2024 (the "Performance Period"). The final number of PRSUs earned will range from 0% to 200% of the number of PRSUs granted based on the Company's relative TSR performance over the Performance Period. 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% |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 North America (1) (2) $ 41.2 $ 15.0 $ 62.5 $ 28.3 Latin America 1.1 — 1.1 — Europe, Middle East & Africa 32.0 14.2 46.7 31.7 Asia Pacific (1) (2) 144.4 73.0 251.9 133.9 Total Revenue $ 218.7 $ 102.2 $ 362.2 $ 193.9 1. During the three months ended June 30, 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 June 30, 2022 for Japan, the U.S., and China totaled $54.2 million, $39.6 million, $64.6 million, respectively. During the six months ended June 30, 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the six months ended June 30, 2022 for Japan, the U.S., and China totaled $84.8 million, $60.5 million, $123.8 million, respectively. During the three months ended June 30, 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, South Korea, the U.S. and China. Sales for the three months ended June 30, 2021 for Japan, South Korea, the U.S. and China totaled $23.9 million, $19.4 million, $14.7 million and $26.2 million, respectively. During the six months ended June 30, 2021, countries with sales in exce ss of 10% of combined revenue consisted of Japan, South Korea, the U.S. and China . Sales for the six months ended June 30, 2021 for Japan, South Korea, the U.S. and China totaled $40.6 million, $30.5 million ,$27.8 million and $53.3 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 three months ended June 30, 2022, one customer accounted for approximately 21% of total revenue and our 10 largest customers accounted in aggregate for approximately 63% of total revenue. For the three months ended June 30, 2021, one customer accounted for approximately 36% of total revenue and our 10 largest customers accounted in aggregate for approximately 70% of total revenue. For the six months ended June 30, 2022, one customer accounted for approximately 23% of total revenue and our 10 largest customers accounted in aggregate for approximately 63% of total revenue. For the six months ended June 30, 2021, one customer accounted for approximately 36% of total revenue and our 10 largest customers accounted in aggregate for approximately 67% 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lithium Hydroxide $ 113.6 $ 59.8 $ 181.1 $ 109.7 Butyllithium 81.2 22.9 114.9 48.7 High Purity Lithium Metal and Other Specialty Compounds 16.7 9.0 30.1 17.9 Lithium Carbonate and Lithium Chloride 7.2 10.5 36.1 17.6 Total Revenue $ 218.7 $ 102.2 $ 362.2 $ 193.9 Contract asset and contract liability balances The following table presents the opening and closing balances of our receivables, net of allowances. As o f June 30, 2022 and December 31, 2021, there were no significant contract liabilities recorded in the consolidated balance sheets. (in Millions) Balance as of June 30, 2022 Balance as of December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 132.8 $ 96.4 $ 36.4 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 $763 million in the next three years. T hese 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. However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: (in Millions) June 30, 2022 December 31, 2021 Finished goods $ 44.8 $ 52.2 Semi-finished goods 62.1 43.6 Raw materials, supplies, and other 49.4 38.8 Inventory, net $ 156.3 $ 134.6 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments On June 6, 2022, Livent closed on the Transaction Agreement and Plan of Merger (the "QLP Merger") with The Pallinghurst Group ("Pallinghurst") to provide Livent with a direct 50% ownership interest in the Nemaska Project, a fully integrated lithium chemical asset located in Québec, Canada that is not yet in commercial production. The Company issued 17,500,000 shares of its common stock to acquire the remaining 50% share of Québec Lithium Partners (UK) Limited ("QLP") previously owned by Pallinghurst and certain of its investors. Upon consummation of the QLP Merger, Livent recorded an Investment of $387.1 million, Cash and cash equivalents of $0.3 million and Short-term debt of $13.5 million, representing QLP's equity method investment in the Nemaska Project, cash on hand, and debt, respectively, with a corresponding increase to additional paid in capital of $373.9 million in its consolidated balance sheet. Livent now owns a 50% equity interest in the Nemaska Project through its ownership of QLP. The Canadian government, through Investissement Québec (“IQ”), will continue to own the remaining 50% interest in the Nemaska Project. The Company accounts for the investment in the Nemaska Project 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 and six months ended June 30, 2022, we recorded a $2.7 million and $4.9 million loss, respectively, related to our equity interest in the Nemaska Project to Equity in net loss of unconsolidated affiliate in our condensed consolidated statement of operations. The carrying amount of our equity interest in the Nemaska Project was $418.0 million (representing our 50% direct interest) and $23.8 million (representing our 25% indirect interest) as of June 30, 2022 and December 31, 2021, respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, (in Millions) 2022 2021 2022 2021 Restructuring charges: Severance-related and exit costs (1) $ — $ 0.1 $ 0.5 $ 0.1 Other charges: Environmental remediation (2) 0.1 0.1 0.2 0.2 Other (3) 2.8 1.8 3.2 2.0 Total Restructuring and other charges $ 2.9 $ 2.0 $ 3.9 $ 2.3 ___________________ 1. The six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: Interest Rate Percentage Maturity June 30, 2022 December 31, 2021 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.04% 6.0% 2023 $ — $ — Deferred Payment Note 8.0% 2022 13.5 — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (4.6) (5.4) Subtotal long-term debt (including current maturities) 254.7 240.4 Less current maturities (13.5) — Total long-term debt $ 241.2 $ 240.4 ______________________________ 1. As of June 30, 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 June 30, 2022 and December 31, 2021. Fund availability is subject to the Company meeting its debt covenants. Deferred Payment Note ("QLP Note") Prior to becoming our wholly owned subsidiary pursuant to the QLP Merger, on November 26, 2020, QLP entered into the QLP Note to defer $12.5 million of its investment commitment for its 50% share of the Nemaska Project. Upon our acquisition of the remaining share of QLP in June 2022, the QLP Note became the sole liability of Livent. The QLP Note, payable to Nemaska Lithium Shawinigan Transformation Inc., matures on November 26, 2022, is classified as Current portion of long-term debt in our consolidated balance sheets and earns coupon interest at an annual rate of 8%, compounded to the principal monthly, for the first twelve months. This interest is payable at the maturity date, along with the principal. From November 26, 2021, interest on the note accrues and is payable monthly. 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, June 30, 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 September 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 and $0.8 million, all of which was capitalized, for the three and six months ended June 30, 2022, respectively. The Company recorded $2.5 million and $5.1 million of accrued interest expense related to the principal amount for the three and six months ended June 30, 2022, respectively. Revolving Credit Facility The carrying value of our deferred financing costs was $1.1 million as of June 30, 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 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity As of June 30, 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 63,522 — 63,522 Stock option awards 19,002 — 19,002 Purchases of treasury stock - NQSP — (2,058) (2,058) Issuance of common stock 17,500,000 — 17,500,000 Balance as of June 30, 2022 179,374,126 (103,676) 179,270,450 On June 6, 2022, the Company closed on the QLP Merger and issued 17,500,000 shares of its common stock, par value $0.001 per share, in a private placement as consideration to acquire the remaining 50% share of QLP previously owned by Pallinghurst and certain of its investors. See Note 6 for details. 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 before reclassifications (5.4) — (5.4) Accumulated other comprehensive loss, net of tax as of June 30, 2022 $ (48.5) $ 0.2 $ (48.3) (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 gain before reclassifications 0.9 0.1 1.0 Accumulated other comprehensive loss, net of tax as of June 30, 2021 $ (43.5) $ 0.1 $ (43.4) 1. See Note 12 for more information. Reclassifications of accumulated other comprehensive loss Hedging gains reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2022 were $0.1 million, net of provision for income taxes of less than $0.1 million. We did not have any open derivative positions for the three and six months ended June 30, 2021. Dividends |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options, 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 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 applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 60.0 $ 6.5 $ 113.2 $ 5.7 Adjustment for interest on 2025 Notes, net of tax (1) — — — 0.2 Net income after assumed conversion of 2025 Notes (1) $ 60.0 $ 6.5 $ 113.2 $ 5.9 Denominator: Weighted average common shares outstanding - basic 166.6 148.7 164.2 147.6 Dilutive share equivalents from share-based plans 1.8 1.2 1.7 1.3 Dilutive share equivalents from 2025 Notes 28.1 28.1 28.1 28.1 Weighted average common shares outstanding - diluted 196.5 178.0 194.0 177.0 Basic earnings per common share: Net income per weighted average share - basic $ 0.36 $ 0.04 $ 0.69 $ 0.04 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.31 $ 0.04 $ 0.58 $ 0.03 1. For the three and six months ended June 30, 2022 and for the three months ended June 30, 2021, all of the interest for the 2025 Notes was capitalized. Anti-dilutive stock options |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
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 $756.4 million and $259.3 million, respectively, as of June 30, 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 June 30, 2022, 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 June 30, 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 $50.6 million. A net after-tax gain of $0.2 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 June 30, 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 $68.6 million as of June 30, 2022. Fair Value of Derivative Instruments. The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. June 30, 2022 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivative assets Foreign exchange contracts $ 0.8 Total derivative assets 0.8 Derivative liabilities Foreign exchange contracts 0.6 Total derivative liabilities 0.6 Net derivative assets $ 0.2 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 income, 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 income, net of tax as of March 31, 2022 $ 0.3 Reclassification of deferred hedging gains, net of tax (0.1) Total derivatives instruments impact on comprehensive income, net of tax (0.1) Accumulated other comprehensive income, net of tax at June 30, 2022 $ 0.2 (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of March 31, 2021 $ — Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax $ 0.1 Accumulated other comprehensive income, net of tax at June 30, 2021 $ 0.1 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 June 30, Six Months Ended June 30, (in Millions) 2022 2021 2022 2021 Foreign Exchange contracts Cost of sales (2) $ (2.3) $ (0.2) $ (3.9) $ (0.8) Total $ (2.3) $ (0.2) $ (3.9) $ (0.8) ____________________ 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 and $0.2 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three and six months ended June 30, 2022, respectively. A loss of $0.1 million and $0.2 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three and six months ended June 30, 2021, 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 condensed consolidated balance sheets. (in Millions) June 30, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.3 $ 3.3 $ — $ — Total Assets $ 3.3 $ 3.3 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.7 $ 5.7 $ — $ — Total Liabilities $ 5.7 $ 5.7 $ — $ — (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 gain of $0.4 million and $0.2 million was recorded for the three and six months ended June 30, 2022, respectively, related to the Livent common stock. The mark-to-market losses 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 | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are a party to various legal proceedings, certain of these matters are discussed below. Livent records liabilities 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 & Tax Authority Matters Minera del Altiplano SA, our subsidiary in Argentina (“MdA”), has received notices from the Argentine Customs Authorities that they are conducting customs audits in Salta (for 2016 to 2017), Rosario (for 2016 and 2017), Buenos Aires and Ezeiza (for 2018 and 2019) regarding the export of Lithium Carbonate by MdA from each of those locations. MdA was also notified from the Argentine Tax Authority of the start of transfer pricing audits for the periods 2017 and 2018. During a part of this period, MdA was a subsidiary of FMC. However, the Company agreed to bear any possible liability for these types of matters 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 June 30, 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 June 30, Six Months Ended June 30, (in Millions, except for weighted-average amounts) 2022 2021 2022 2021 Lease Cost Operating lease cost $ 0.3 $ 0.4 $ 0.7 $ 0.6 Short-term lease cost 0.1 0.4 0.2 0.7 Variable lease cost — 0.1 — 0.1 Total lease cost (1) $ 0.4 $ 0.9 $ 0.9 $ 1.4 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.3 $ 0.6 $ 0.7 $ 1.1 __________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. As of June 30, 2022, our operating leases had a weighted average remaining lease term of 8.0 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 $ 0.7 2023 1.2 2024 1.0 2025 1.1 2026 0.2 Thereafter 2.6 Total future minimum lease payments 6.8 Less: Imputed interest (1.2) Total $ 5.6 |
Supplemental Information
Supplemental Information | 6 Months Ended |
Jun. 30, 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) June 30, 2022 December 31, 2021 Prepaid and other current assets Tax related items $ 21.5 $ 17.7 Prepaid expenses 7.3 12.2 Argentina government receivable (1) 7.1 13.3 Other receivables 3.2 2.3 Bank Acceptance Drafts (2) 0.6 — Derivative assets (Note 12) 0.8 0.2 Other current assets 7.7 9.6 Total $ 48.2 $ 55.3 (in Millions) June 30, 2022 December 31, 2021 Other assets Argentina government receivable (1) $ 71.5 $ 55.8 Advance to contract manufacturers (3) 15.9 16.0 Long-term raw materials inventory 1.6 4.9 Tax related items 3.8 1.3 Capitalized software, net 1.4 1.5 Other assets 10.3 11.4 Total $ 104.5 $ 90.9 _________________ 1. We conduct business in Argentina. As of June 30, 2022 and December 31, 2021, $39.2 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) June 30, 2022 December 31, 2021 Accrued and other current liabilities Accrued investment in unconsolidated affiliate $ — $ 6.2 Accrued payroll 12.7 17.1 Plant restructuring reserves 3.2 3.2 Advance customer payments 4.0 — Retirement liability - 401k 1.4 2.5 Derivative liabilities 0.6 — Environmental reserves, current 0.6 0.5 Severance related 0.2 — Other accrued and other current liabilities (1) 26.7 32.3 Total $ 49.4 $ 61.8 (in Millions) June 30, 2022 December 31, 2021 Other long-term liabilities Deferred compensation plan obligation $ 5.7 $ 5.9 Contingencies related to uncertain tax positions (2) 5.9 2.3 Self-insurance reserves 1.7 1.5 Asset retirement obligations 0.3 0.3 Other long-term liabilities 2.6 1.7 Total $ 16.2 $ 11.7 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of June 30, 2022, we have recorded a liability for uncertain tax positions of $5.5 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) | 6 Months Ended |
Jun. 30, 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 $763 million in the next three years. T |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Tables) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 North America (1) (2) $ 41.2 $ 15.0 $ 62.5 $ 28.3 Latin America 1.1 — 1.1 — Europe, Middle East & Africa 32.0 14.2 46.7 31.7 Asia Pacific (1) (2) 144.4 73.0 251.9 133.9 Total Revenue $ 218.7 $ 102.2 $ 362.2 $ 193.9 1. During the three months ended June 30, 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 June 30, 2022 for Japan, the U.S., and China totaled $54.2 million, $39.6 million, $64.6 million, respectively. During the six months ended June 30, 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the six months ended June 30, 2022 for Japan, the U.S., and China totaled $84.8 million, $60.5 million, $123.8 million, respectively. During the three months ended June 30, 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, South Korea, the U.S. and China. Sales for the three months ended June 30, 2021 for Japan, South Korea, the U.S. and China totaled $23.9 million, $19.4 million, $14.7 million and $26.2 million, respectively. During the six months ended June 30, 2021, countries with sales in exce ss of 10% of combined revenue consisted of Japan, South Korea, the U.S. and China . Sales for the six months ended June 30, 2021 for Japan, South Korea, the U.S. and China totaled $40.6 million, $30.5 million ,$27.8 million and $53.3 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: (in Millions) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lithium Hydroxide $ 113.6 $ 59.8 $ 181.1 $ 109.7 Butyllithium 81.2 22.9 114.9 48.7 High Purity Lithium Metal and Other Specialty Compounds 16.7 9.0 30.1 17.9 Lithium Carbonate and Lithium Chloride 7.2 10.5 36.1 17.6 Total Revenue $ 218.7 $ 102.2 $ 362.2 $ 193.9 |
Receivables and Contract Liabilities | The following table presents the opening and closing balances of our receivables, net of allowances. As o f June 30, 2022 and December 31, 2021, there were no significant contract liabilities recorded in the consolidated balance sheets. (in Millions) Balance as of June 30, 2022 Balance as of December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 132.8 $ 96.4 $ 36.4 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in Millions) June 30, 2022 December 31, 2021 Finished goods $ 44.8 $ 52.2 Semi-finished goods 62.1 43.6 Raw materials, supplies, and other 49.4 38.8 Inventory, net $ 156.3 $ 134.6 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, (in Millions) 2022 2021 2022 2021 Restructuring charges: Severance-related and exit costs (1) $ — $ 0.1 $ 0.5 $ 0.1 Other charges: Environmental remediation (2) 0.1 0.1 0.2 0.2 Other (3) 2.8 1.8 3.2 2.0 Total Restructuring and other charges $ 2.9 $ 2.0 $ 3.9 $ 2.3 ___________________ 1. The six months ended June 30, 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) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: Interest Rate Percentage Maturity June 30, 2022 December 31, 2021 (in Millions) LIBOR borrowings Base rate borrowings Revolving Credit Facility (1) 4.04% 6.0% 2023 $ — $ — Deferred Payment Note 8.0% 2022 13.5 — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (4.6) (5.4) Subtotal long-term debt (including current maturities) 254.7 240.4 Less current maturities (13.5) — Total long-term debt $ 241.2 $ 240.4 ______________________________ 1. As of June 30, 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 June 30, 2022 and December 31, 2021. Fund availability is subject to the Company meeting its debt covenants. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 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 63,522 — 63,522 Stock option awards 19,002 — 19,002 Purchases of treasury stock - NQSP — (2,058) (2,058) Issuance of common stock 17,500,000 — 17,500,000 Balance as of June 30, 2022 179,374,126 (103,676) 179,270,450 |
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 before reclassifications (5.4) — (5.4) Accumulated other comprehensive loss, net of tax as of June 30, 2022 $ (48.5) $ 0.2 $ (48.3) (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 gain before reclassifications 0.9 0.1 1.0 Accumulated other comprehensive loss, net of tax as of June 30, 2021 $ (43.5) $ 0.1 $ (43.4) 1. See Note 12 for more information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income $ 60.0 $ 6.5 $ 113.2 $ 5.7 Adjustment for interest on 2025 Notes, net of tax (1) — — — 0.2 Net income after assumed conversion of 2025 Notes (1) $ 60.0 $ 6.5 $ 113.2 $ 5.9 Denominator: Weighted average common shares outstanding - basic 166.6 148.7 164.2 147.6 Dilutive share equivalents from share-based plans 1.8 1.2 1.7 1.3 Dilutive share equivalents from 2025 Notes 28.1 28.1 28.1 28.1 Weighted average common shares outstanding - diluted 196.5 178.0 194.0 177.0 Basic earnings per common share: Net income per weighted average share - basic $ 0.36 $ 0.04 $ 0.69 $ 0.04 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.31 $ 0.04 $ 0.58 $ 0.03 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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. June 30, 2022 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivative assets Foreign exchange contracts $ 0.8 Total derivative assets 0.8 Derivative liabilities Foreign exchange contracts 0.6 Total derivative liabilities 0.6 Net derivative assets $ 0.2 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 income, 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 income, net of tax as of March 31, 2022 $ 0.3 Reclassification of deferred hedging gains, net of tax (0.1) Total derivatives instruments impact on comprehensive income, net of tax (0.1) Accumulated other comprehensive income, net of tax at June 30, 2022 $ 0.2 (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of March 31, 2021 $ — Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax $ 0.1 Accumulated other comprehensive income, net of tax at June 30, 2021 $ 0.1 |
Derivatives Not Designated as Hedging Instruments | Location of Loss Amount of Pre-tax Loss Recognized in Income on Derivatives (1) Three Months Ended June 30, Six Months Ended June 30, (in Millions) 2022 2021 2022 2021 Foreign Exchange contracts Cost of sales (2) $ (2.3) $ (0.2) $ (3.9) $ (0.8) Total $ (2.3) $ (0.2) $ (3.9) $ (0.8) ____________________ 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 and $0.2 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three and six months ended June 30, 2022, respectively. A loss of $0.1 million and $0.2 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three and six months ended June 30, 2021, 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 condensed consolidated balance sheets. (in Millions) June 30, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.3 $ 3.3 $ — $ — Total Assets $ 3.3 $ 3.3 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.7 $ 5.7 $ — $ — Total Liabilities $ 5.7 $ 5.7 $ — $ — (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 gain of $0.4 million and $0.2 million was recorded for the three and six months ended June 30, 2022, respectively, related to the Livent common stock. The mark-to-market losses 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) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, (in Millions, except for weighted-average amounts) 2022 2021 2022 2021 Lease Cost Operating lease cost $ 0.3 $ 0.4 $ 0.7 $ 0.6 Short-term lease cost 0.1 0.4 0.2 0.7 Variable lease cost — 0.1 — 0.1 Total lease cost (1) $ 0.4 $ 0.9 $ 0.9 $ 1.4 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.3 $ 0.6 $ 0.7 $ 1.1 __________________________ 1. 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 $ 0.7 2023 1.2 2024 1.0 2025 1.1 2026 0.2 Thereafter 2.6 Total future minimum lease payments 6.8 Less: Imputed interest (1.2) Total $ 5.6 |
Supplemental Information (Table
Supplemental Information (Tables) | 6 Months Ended |
Jun. 30, 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) June 30, 2022 December 31, 2021 Prepaid and other current assets Tax related items $ 21.5 $ 17.7 Prepaid expenses 7.3 12.2 Argentina government receivable (1) 7.1 13.3 Other receivables 3.2 2.3 Bank Acceptance Drafts (2) 0.6 — Derivative assets (Note 12) 0.8 0.2 Other current assets 7.7 9.6 Total $ 48.2 $ 55.3 (in Millions) June 30, 2022 December 31, 2021 Other assets Argentina government receivable (1) $ 71.5 $ 55.8 Advance to contract manufacturers (3) 15.9 16.0 Long-term raw materials inventory 1.6 4.9 Tax related items 3.8 1.3 Capitalized software, net 1.4 1.5 Other assets 10.3 11.4 Total $ 104.5 $ 90.9 _________________ 1. We conduct business in Argentina. As of June 30, 2022 and December 31, 2021, $39.2 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) June 30, 2022 December 31, 2021 Accrued and other current liabilities Accrued investment in unconsolidated affiliate $ — $ 6.2 Accrued payroll 12.7 17.1 Plant restructuring reserves 3.2 3.2 Advance customer payments 4.0 — Retirement liability - 401k 1.4 2.5 Derivative liabilities 0.6 — Environmental reserves, current 0.6 0.5 Severance related 0.2 — Other accrued and other current liabilities (1) 26.7 32.3 Total $ 49.4 $ 61.8 (in Millions) June 30, 2022 December 31, 2021 Other long-term liabilities Deferred compensation plan obligation $ 5.7 $ 5.9 Contingencies related to uncertain tax positions (2) 5.9 2.3 Self-insurance reserves 1.7 1.5 Asset retirement obligations 0.3 0.3 Other long-term liabilities 2.6 1.7 Total $ 16.2 $ 11.7 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of June 30, 2022, we have recorded a liability for uncertain tax positions of $5.5 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 | 3 Months Ended | 6 Months Ended | |||
Feb. 23, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Other gain | $ 8.2 | $ 0 | $ 22.2 | $ 0 | |
Performance Shares | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Awards granted (in shares) | 63 | ||||
Performance period (in years) | 3 years | ||||
Awards granted, weighted average grant date fair value (USD per share) | $ 20.82 | ||||
Performance Shares | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Vesting percentage | 0% | ||||
Performance Shares | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Vesting percentage | 200% |
Principal Accounting Policies_4
Principal Accounting Policies and Related Financial Information - Fair Value Assumptions (Details) - Performance Shares | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 218.7 | $ 102.2 | $ 362.2 | $ 193.9 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 41.2 | 15 | 62.5 | 28.3 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 1.1 | 0 | 1.1 | 0 |
Europe, Middle East & Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 32 | 14.2 | 46.7 | 31.7 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 144.4 | 73 | 251.9 | 133.9 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 54.2 | 23.9 | 84.8 | 40.6 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 39.6 | 14.7 | 60.5 | 27.8 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 64.6 | 26.2 | $ 123.8 | 53.3 |
South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 19.4 | $ 30.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Customer One | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 21% | 36% | 23% | 36% |
Ten Largest Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 63% | 70% | 63% | 67% |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 218.7 | $ 102.2 | $ 362.2 | $ 193.9 |
Lithium Hydroxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 113.6 | 59.8 | 181.1 | 109.7 |
Butyllithium | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 81.2 | 22.9 | 114.9 | 48.7 |
High Purity Lithium Metal and Other Specialty Compounds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 16.7 | 9 | 30.1 | 17.9 |
Lithium Carbonate and Lithium Chloride | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 7.2 | $ 10.5 | $ 36.1 | $ 17.6 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers, net of allowances | $ 132.8 | $ 96.4 |
Increase | $ 36.4 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - USD ($) $ in Millions | Jul. 25, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Advance customer payments | $ 4 | $ 0 | |
Subsequent Event | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Advance customer payments | $ 198 | ||
Payment period (in days) | 60 days | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation | $ 763 | ||
Expected timing of satisfaction of performance obligations | 3 years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-25 | Subsequent Event | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected timing of satisfaction of performance obligations | 6 years |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 44.8 | $ 52.2 |
Semi-finished goods | 62.1 | 43.6 |
Raw materials, supplies, and other | 49.4 | 38.8 |
Inventory, net | $ 156.3 | $ 134.6 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 06, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Issuance of common stock - QLP Merger | $ 373.9 | ||||||
Equity in net loss of unconsolidated affiliate | 2.7 | $ 1.4 | $ 4.9 | $ 2.7 | |||
Capital In Excess of Par | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Issuance of common stock - QLP Merger | 373.9 | ||||||
QLP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of shares issued in transaction (in shares) | 17,500,000 | 17,500,000 | |||||
Voting interest acquired (as a percent) | 50% | ||||||
Cash and cash equivalents | $ 0.3 | 0.3 | 0.3 | ||||
Short-term debt | $ 13.5 | $ 13.5 | $ 13.5 | ||||
QLP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest percentage | 50% | 50% | 50% | 50% | |||
Equity method investments | $ 387.1 | $ 387.1 | $ 387.1 | ||||
Nemaska Lithium Inc. | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest percentage | 50% | 50% | 50% | 25% | |||
Equity method investments | $ 418 | $ 418 | $ 418 | $ 23.8 | |||
Equity in net loss of unconsolidated affiliate | $ 2.7 | $ 4.9 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring Charges in Consolidated Income (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) site | Jun. 30, 2021 USD ($) | |
Restructuring charges: | ||||
Severance-related and exit costs | $ 0 | $ 0.1 | $ 0.5 | $ 0.1 |
Other charges: | ||||
Environmental remediation | 0.1 | 0.1 | 0.2 | 0.2 |
Other | 2.8 | 1.8 | 3.2 | 2 |
Total Restructuring and other charges | $ 2.9 | $ 2 | $ 3.9 | $ 2.3 |
Number of environmental remediation sites | site | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense/(benefit) | $ (30.2) | $ 2.5 | $ (34.9) | $ 1.6 |
Effective tax rate | 33.50% | (62.50%) | 23.60% | (39.00%) |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Nov. 26, 2020 |
Debt Instrument [Line Items] | |||
Transaction costs - 2025 Notes | $ (4.6) | $ (5.4) | |
Subtotal long-term debt (including current maturities) | 254.7 | 240.4 | |
Total long-term debt | 241.2 | 240.4 | |
Less current maturities | (13.5) | 0 | |
Deferrable Notes | |||
Debt Instrument [Line Items] | |||
Long-Term debt, gross | $ 13.5 | 0 | |
Convertible debt, interest rate | 8% | 8% | |
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Long-Term debt, gross | $ 245.8 | 245.8 | |
Convertible debt, interest rate | 4.125% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 14.5 | 14.5 | |
Line of credit, remaining borrowing capacity | 385.5 | 385.5 | |
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 | 4.04% | ||
Base rate borrowings | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest Rate Percentage | 6% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) day | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 26, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 241,200,000 | $ 241,200,000 | $ 240,400,000 | |
First Amendment | Citibank, N.A. | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Minimum allowable interest coverage ratio | 3.5 | |||
QLP | ||||
Debt Instrument [Line Items] | ||||
Equity interest percentage | 50% | |||
Deferrable Notes | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 8% | 8% | 8% | |
Deferrable Notes | QLP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 12,500,000 | |||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4.125% | 4.125% | ||
Convertible Debt | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount and transaction costs | $ 400,000 | $ 800,000 | ||
Interest expense on debt, excluding amortization of debt discount | $ 2,500,000 | 5,100,000 | ||
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% | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs | $ 1,100,000 | $ 1,100,000 | ||
Maximum net leverage ratio | 3.5 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 06, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Net income | $ 60,000,000 | $ 53,200,000 | $ 6,500,000 | $ (800,000) | $ 113,200,000 | $ 5,700,000 | |||
Dividends paid | $ 0 | $ 0 | |||||||
QLP | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Voting interest acquired (as a percent) | 50% | ||||||||
Number of shares issued in transaction (in shares) | 17,500,000 | 17,500,000 |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Activity (Details) | 6 Months Ended |
Jun. 30, 2022 shares | |
Capital Stock Activity [Roll Forward] | |
Beginning balance (in shares) | 161,791,602 |
Beginning balance, outstanding (in shares) | 161,689,984 |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (2,058) |
Ending balance (in shares) | 179,374,126 |
Ending balance, outstanding (in shares) | 179,270,450 |
Treasury Stock [Roll Forward] | |
Beginning balance (in shares) | (101,618) |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (2,058) |
Ending balance (in shares) | (103,676) |
Common stock | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 17,500,000 |
Livent Plan | Restricted Stock Units (RSUs) | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 63,522 |
Livent Plan | Stock Option | |
Capital Stock Activity [Roll Forward] | |
Stock issued during period (in shares) | 19,002 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 795.4 | $ 535.6 | $ 795.4 | $ 536.2 |
Other comprehensive losses before reclassifications | (5.4) | 1 | ||
Ending balance | 849 | 797.1 | 1,280.1 | 797.1 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (42.9) | (44.7) | (42.9) | (44.4) |
Ending balance | (43.8) | (43.4) | (48.3) | (43.4) |
Foreign currency adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (43.1) | (43.1) | (44.4) | |
Other comprehensive losses before reclassifications | (5.4) | 0.9 | ||
Ending balance | (43.5) | (48.5) | (43.5) | |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0.2 | 0 | 0.2 | 0 |
Other comprehensive losses before reclassifications | 0.1 | 0.1 | 0 | 0.1 |
Ending balance | $ 0.3 | $ 0.1 | $ 0.2 | $ 0.1 |
Equity - Reclassification out o
Equity - Reclassification out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income | $ 60 | $ 53.2 | $ 6.5 | $ (0.8) | $ 113.2 | $ 5.7 |
Income tax expense (benefit) | $ 30.2 | $ (2.5) | 34.9 | $ (1.6) | ||
Amounts Reclassified from Acccumulated Other Comprehensive Loss | Maximum | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income | (0.1) | |||||
Amounts Reclassified from Acccumulated Other Comprehensive Loss | Maximum | Derivative Instruments | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax expense (benefit) | $ 0.1 |
Earnings Per Share - EPS Calcul
Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||||
Net loss | $ 60 | $ 53.2 | $ 6.5 | $ (0.8) | $ 113.2 | $ 5.7 |
Adjustment for interest on 2025 Notes, net of tax | 0 | 0 | 0 | 0.2 | ||
Net income/(loss) after assumed conversion of 2025 Notes | 60 | 6.5 | 113.2 | 5.9 | ||
Net Income (Loss) after assumed conversion of 2025 notes | $ 60 | $ 6.5 | $ 113.2 | $ 5.9 | ||
Denominator: | ||||||
Weighted average common shares outstanding - basic (in shares) | 166.6 | 148.7 | 164.2 | 147.6 | ||
Dilutive share equivalents from share-based plans (in shares) | 1.8 | 1.2 | 1.7 | 1.3 | ||
Dilutive share equivalents from 2025 Notes (in shares) | 28.1 | 28.1 | 28.1 | 28.1 | ||
Weighted average common shares outstanding - diluted (in shares) | 196.5 | 178 | 194 | 177 | ||
Basic earnings per common share: | ||||||
Net loss per weighted average share - basic (in dollars per share) | $ 0.36 | $ 0.04 | $ 0.69 | $ 0.04 | ||
Net loss weighted average share - diluted (in dollars per share) | $ 0.31 | $ 0.04 | $ 0.58 | $ 0.03 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - Stock Option - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 542,760 | 0 | 542,760 |
Options granted, weighted average exercise price (in dollars per share) | $ 20.35 | $ 20.35 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Derivative [Line Items] | |
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | $ 50.6 |
Forward Contracts | |
Derivative [Line Items] | |
AOCI, net | 0.2 |
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 | 68.6 |
Estimate of Fair Value Measurement | |
Derivative [Line Items] | |
Long-term debt value | 756.4 |
Reported Value Measurement | |
Derivative [Line Items] | |
Long-term debt value | $ 259.3 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Schedule of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 0.8 | |
Total derivative liabilities | 0.6 | |
Net derivative assets | 0.2 | |
Foreign Exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | 0.8 | |
Total derivative liabilities | $ 0.6 | |
Prepaid Expenses and Other Current Assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 0.2 | |
Net derivative assets | 0.2 | |
Prepaid Expenses and Other Current Assets | Foreign Exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 849 | $ 795.4 | $ 535.6 | $ 795.4 | $ 536.2 |
Unrealized hedging gains, net of tax | 5.4 | (1) | |||
Total derivatives instruments impact on comprehensive income, net of tax | (4.5) | 1.3 | (5.4) | 1 | |
Ending balance | 1,280.1 | 849 | 797.1 | 1,280.1 | 797.1 |
Derivative Instruments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0.3 | 0.2 | 0 | 0.2 | 0 |
Unrealized hedging gains, net of tax | (0.1) | (0.1) | 0 | (0.1) | |
Amounts reclassified from accumulated other comprehensive loss | (0.1) | ||||
Total derivatives instruments impact on comprehensive income, net of tax | (0.1) | 0.1 | 0.1 | ||
Ending balance | $ 0.2 | $ 0.3 | $ 0.1 | $ 0.2 | $ 0.1 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative [Line Items] | ||||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (2.3) | $ (0.2) | $ (3.9) | $ (0.8) |
Foreign Exchange contracts | ||||
Derivative [Line Items] | ||||
Loss on derivative | 0.1 | 0.1 | 0.2 | 0.2 |
Foreign Exchange contracts | Cost of Sales and Services | ||||
Derivative [Line Items] | ||||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (2.3) | $ (0.2) | $ (3.9) | $ (0.8) |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Investments in deferred compensation plan | $ 3.3 | $ 3.3 | $ 3.4 |
Total Assets | 3.3 | 3.3 | 3.4 |
Liabilities | |||
Deferred compensation plan obligation | 5.7 | 5.7 | 5.9 |
Total Liabilities | 5.7 | 5.7 | 5.9 |
Selling, General and Administrative Expenses | |||
Liabilities | |||
Mark-to-market loss on common stock | 0.4 | 0.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Investments in deferred compensation plan | 3.3 | 3.3 | 3.4 |
Total Assets | 3.3 | 3.3 | 3.4 |
Liabilities | |||
Deferred compensation plan obligation | 5.7 | 5.7 | 5.9 |
Total Liabilities | 5.7 | 5.7 | 5.9 |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Investments in deferred compensation plan | 0 | 0 | 0 |
Total Assets | 0 | 0 | 0 |
Liabilities | |||
Deferred compensation plan obligation | 0 | 0 | 0 |
Total Liabilities | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Investments in deferred compensation plan | 0 | 0 | 0 |
Total Assets | 0 | 0 | 0 |
Liabilities | |||
Deferred compensation plan obligation | 0 | 0 | 0 |
Total Liabilities | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - ft² ft² in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Apr. 13, 2021 |
Lessee, Lease, Description [Line Items] | |||
Operating lease, weighted average remaining lease term (in years) | 8 years | ||
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease Cost | ||||
Operating lease cost | $ 0.3 | $ 0.4 | $ 0.7 | $ 0.6 |
Short-term lease cost | 0.1 | 0.4 | 0.2 | 0.7 |
Variable lease cost | 0 | 0.1 | 0 | 0.1 |
Total lease cost | 0.4 | 0.9 | 0.9 | 1.4 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for operating leases | 0.3 | 0.6 | 0.7 | 1.1 |
Lessee, Lease, Description [Line Items] | ||||
Variable lease cost | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Undiscounted cash flows | |
Remainder of 2022 | $ 0.7 |
2023 | 1.2 |
2024 | 1 |
2025 | 1.1 |
2026 | 0.2 |
Thereafter | 2.6 |
Total future minimum lease payments | 6.8 |
Less: Imputed interest | (1.2) |
Total | $ 5.6 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Prepaid and other current assets | ||
Tax related items | $ 21.5 | $ 17.7 |
Prepaid expenses | 7.3 | 12.2 |
Argentina government receivable | 7.1 | 13.3 |
Other receivables | 3.2 | 2.3 |
Bank Acceptance Drafts | 0.6 | 0 |
Derivative assets (Note 12) | 0.8 | 0.2 |
Other current assets | 7.7 | 9.6 |
Total | $ 48.2 | $ 55.3 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other assets | ||
Argentina government receivable | $ 71.5 | $ 55.8 |
Advance to contract manufacturers | 15.9 | 16 |
Long-term raw materials inventory | 1.6 | 4.9 |
Tax related items | 3.8 | 1.3 |
Capitalized software, net | 1.4 | 1.5 |
Other assets | 10.3 | 11.4 |
Total | 104.5 | 90.9 |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 39.2 | $ 38.4 |
Supplemental Information - Accr
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued and other current liabilities | ||
Accrued investment in unconsolidated affiliate | $ 0 | $ 6.2 |
Accrued payroll | 12.7 | 17.1 |
Plant restructuring reserves | 3.2 | 3.2 |
Advance customer payments | 4 | 0 |
Retirement liability - 401k | 1.4 | 2.5 |
Derivative liabilities | 0.6 | 0 |
Environmental reserves, current | 0.6 | 0.5 |
Severance related | 0.2 | 0 |
Other accrued and other current liabilities | 26.7 | 32.3 |
Total | $ 49.4 | $ 61.8 |
Supplemental Information - Ot_2
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other long-term liabilities | ||
Deferred compensation plan obligation | $ 5.7 | $ 5.9 |
Contingencies related to uncertain tax positions | 5.9 | 2.3 |
Self-insurance reserves | 1.7 | 1.5 |
Asset retirement obligations | 0.3 | 0.3 |
Other long-term liabilities | 2.6 | 1.7 |
Total | 16.2 | $ 11.7 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 5.5 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 0.4 |