Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-38694 | |
Entity Registrant Name | LIVENT CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-4699376 | |
Entity Address, Address Line One | 1818 Market Street | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 215 | |
Local Phone Number | 299-5900 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | LTHM | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Public Float | $ 4,040,080,313 | |
Entity Common Stock, Shares Outstanding | 179,548,550 | |
Documents Incorporated by Reference | DOCUMENT FORM 10-K REFERENCE Portions of Proxy Statement for 2023 Annual Meeting of Stockholders Part III | |
Entity Central Index Key | 0001742924 | |
Amendment Flag | false | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Philadelphia, PA |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 813.2 | $ 420.4 | $ 288.2 |
Costs and expenses: | |||
Costs of sales | 417.5 | 332 | 251.4 |
Gross margin | 395.7 | 88.4 | 36.8 |
Selling, general and administrative expenses | 55.2 | 49.9 | 44.6 |
Research and development expenses | 3.9 | 3 | 3.7 |
Restructuring and other charges | 7.5 | 3.8 | 10.7 |
Separation-related costs/(income) | 0.7 | 2 | (1.1) |
Total costs and expenses | 484.8 | 390.7 | 309.3 |
Income/(loss) from operations before equity in net loss of unconsolidated affiliates, interest expense, net, loss on debt extinguishment and other gain | 328.4 | 29.7 | (21.1) |
Equity in net loss of unconsolidated affiliates | 15.1 | 5.5 | 0.5 |
Interest expense, net | 0 | 0.3 | 0.3 |
Loss on debt extinguishment | 0.1 | 0 | 0.1 |
Other gain | (22.2) | 0 | 0 |
Income/(loss) from operations before income taxes | 335.4 | 23.9 | (22) |
Income tax expense/(benefit) | 61.9 | 23.3 | (5.7) |
Net income/(loss) | $ 273.5 | $ 0.6 | $ (16.3) |
Net income/(loss) per weighted average share - basic (in dollars per share) | $ 1.59 | $ 0 | $ (0.11) |
Net income/(loss) per weighted average share - diluted (in dollars per share) | $ 1.36 | $ 0 | $ (0.11) |
Weighted average common shares outstanding - basic (in shares) | 171.8 | 154.7 | 146.2 |
Weighted average common shares outstanding – diluted (in shares) | 201.6 | 184.3 | 146.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 273.5 | $ 0.6 | $ (16.3) | |
Foreign currency adjustments: | ||||
Foreign currency translation (loss)/gain arising during the period | (7.9) | 1.3 | 3.9 | |
Total foreign currency translation adjustments | (7.9) | 1.3 | 3.9 | |
Derivative instruments: | ||||
Unrealized hedging (losses)/gains, net of tax of $0.2, zero and zero | (0.9) | 0.3 | 0 | |
Reclassification of deferred hedging losses/(gains) included in net income/(loss), net of tax of $(0.1), zero and zero | [1] | 0.7 | (0.1) | 0 |
Total derivative instruments, net of tax of $0.1, zero and zero | (0.2) | 0.2 | 0 | |
Other comprehensive (loss)/income, net of tax | (8.1) | 1.5 | 3.9 | |
Comprehensive income/(loss) | $ 265.4 | $ 2.1 | $ (12.4) | |
[1]For more detail on the components of these reclassifications and the affected line item in the consolidated statements of operations, see Note 13 within these consolidated financial statements. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax [Abstract] | |||
Unrealized hedging gains (losses) and other, tax | $ 0.2 | $ 0 | $ 0 |
Reclassification of deferred hedging losses included in net income, tax | (0.2) | 0 | 0 |
Total derivative instruments, tax | $ 0.1 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 189 | $ 113 |
Trade receivables, net of allowance of approximately $0.3 in 2022 and 2021 | 141.6 | 96.4 |
Inventories, net | 152.3 | 134.6 |
Prepaid and other current assets | 61.1 | 55.3 |
Total current assets | 544 | 399.3 |
Investments | 440.3 | 27.2 |
Property, plant and equipment, net of accumulated depreciation of $253.1 in 2022 and $243.0 in 2021 | 968.3 | 677.9 |
Deferred income taxes | 0.4 | 0.9 |
Right of use assets - operating leases, net | 4.8 | 6.3 |
Other assets | 116.4 | 90.9 |
Total assets | 2,074.2 | 1,202.5 |
Current liabilities | ||
Accounts payable, trade and other | 81.7 | 65.4 |
Accrued and other liabilities | 37.4 | 61.8 |
Contract liability - short term | 15.5 | 0 |
Operating lease liabilities - current | 0.9 | 1.1 |
Income taxes | 13.2 | 3 |
Total current liabilities | 148.7 | 131.3 |
Long-term debt | 241.9 | 240.4 |
Operating lease liabilities - long-term | 4.2 | 5.4 |
Environmental liabilities | 6.4 | 5.6 |
Deferred income taxes | 16.1 | 12.7 |
Contract liability - long-term | 198 | 0 |
Other long-term liabilities | 15.9 | 11.7 |
Commitments and contingent liabilities (Note 16) | 0 | 0 |
Total current and long-term liabilities | 631.2 | 407.1 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 179,652,125 and 161,791,602 shares issued; 179,548,550 and 161,689,984 outstanding at December 31, 2022 and 2021, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 1,160.4 | 778.1 |
Retained earnings | 334.4 | 60.9 |
Accumulated other comprehensive loss | (51) | (42.9) |
Treasury stock, common, at cost; 103,575 and 101,618 shares at December 31, 2022 and 2021, respectively | (0.9) | (0.8) |
Total equity | 1,443 | 795.4 |
Total liabilities and equity | $ 2,074.2 | $ 1,202.5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for trade receivable | $ 0.3 | |
Accumulated depreciation | $ 253.1 | $ 243 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 179,652,125 | 161,791,602 |
Shares of common stock outstanding | 179,548,550 | 161,689,984 |
Treasury stock, shares issued | 103,575 | 101,618 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Cash provided by operating activities: | ||||
Net income/(loss) | $ 273.5 | $ 0.6 | $ (16.3) | |
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||
Depreciation and amortization | 27.7 | 25.1 | 25 | |
Restructuring and other charges/(income) | 4 | (1.5) | 3.3 | |
Deferred income taxes | 3.8 | 12.5 | (6.3) | |
Share-based compensation | 6.8 | 5.3 | 4.1 | |
Change in investments in trust fund securities | (0.5) | 0.6 | 1 | |
Equity in net loss of unconsolidated affiliates | 15.1 | 5.5 | 0.5 | |
Other gain | (22.2) | 0 | 0 | |
Deferred financing fee amortization | 0 | 0.3 | 0.7 | |
Loss on asset disposal | 1.4 | 0.5 | 0.6 | |
Other non-cash adjustments | (0.1) | 0 | (0.2) | |
Changes in operating assets and liabilities: | ||||
Trade receivables, net | (51.1) | (19) | 15.3 | |
Changes in deferred compensation | (0.3) | 1.4 | 0.7 | |
Inventories | (22.9) | (28.2) | 10.1 | |
Accounts payable, trade and other | 18.9 | 20.9 | (39.8) | |
Contract liability - short-term | 15.5 | 0 | 0 | |
Contract liability - long-term | 198 | 0 | 0 | |
Income taxes | 10.5 | 3 | (0.9) | |
Change in prepaid and other current assets and other assets | (31.1) | (3.7) | (9.9) | |
Change in accrued and other current and long-term liabilities | 7.7 | 3.1 | 18.4 | |
Cash provided by operating activities | 454.7 | 26.4 | 6.3 | |
Cash used in investing activities: | ||||
Additions to property, plant and equipment | [1] | (336.9) | (131.9) | (124) |
Investments in Livent NQSP securities | (0.2) | (1.4) | (0.6) | |
Proceeds from settlement of long-term supply agreement | 22.2 | 0 | 0 | |
Proceeds from settlement of long-term supply agreement | 0 | 0 | 10 | |
Investments in unconsolidated affiliates | (47.1) | (8) | (15) | |
Other investing activities | (2.7) | (2) | (1.5) | |
Cash used in investing activities | (364.7) | (143.3) | (131.1) | |
Cash (used in)/provided by financing activities: | ||||
Proceeds from Revolving Credit Facility | 13 | 39.5 | 175.5 | |
Repayments of Revolving Credit Facility | (13) | (75.1) | (294.6) | |
Proceeds from 2025 Notes | 0 | 0 | 245.8 | |
Payments of financing fees | (2.2) | 0 | (8.4) | |
Proceeds from issuance of common stock - incentive plans | 3.2 | 1.5 | 0.8 | |
Repayment of QLP Note | (13.5) | 0 | 0 | |
Payments of underwriting fees and expenses - Offering | 0 | (9.4) | 0 | |
Proceeds from Offering | 0 | 261.6 | 0 | |
Net purchases of treasury stock - Livent NQSP | 0 | (0.1) | 0 | |
Cash (used in)/provided by financing activities | (12.5) | 218 | 119.1 | |
Effect of exchange rate changes on cash and cash equivalents | (1.5) | 0.3 | 0.5 | |
Increase/(decrease) in cash and cash equivalents | 76 | 101.4 | (5.2) | |
Cash and cash equivalents, beginning of period | 113 | 11.6 | 16.8 | |
Cash and cash equivalents, end of period | 189 | 113 | 11.6 | |
Supplemental disclosure for cash flow: | ||||
Cash payments for income taxes, net of refunds | [2] | 43.1 | 4.1 | 2.6 |
Cash payments for interest | [1] | 12.3 | 13.3 | 5.6 |
Cash payments for Restructuring and other charges | 3.5 | 5.3 | 7.4 | |
Cash (receipts)/payments for Separation-related charges | [3] | 0.9 | 2 | (0.8) |
Accrued capital expenditures | 16.5 | 32.5 | 15.1 | |
Accrued investment in unconsolidated affiliates | 0.2 | 0 | 6.3 | |
Non-cash assumption of QLP Note | 13.5 | 0 | 0 | |
Non-cash investment in unconsolidated affiliate | 387.1 | 0 | 0 | |
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | $ 0 | $ 2.1 | $ 0.8 | |
[1] For the years ended December 31, 2022, 2021, and 2020, $15.8 million , $15.4 million, and $12.0 million of interest was capitalized, respectively. The year ended December 31, 2022 includes refunds of $1.0 million relating to U.S. federal taxes. The year ended December 31, 2021 includes $1.7 million of refunds relating to U.S. state taxes and foreign taxes . The year ended December 31, 2020 includes refunds of $1.6 million and $1.9 million from FMC related to the Company's 2019 and 2018 federal income tax returns, respectively. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized interest costs | $ 15.8 | $ 15.4 | $ 12 |
Gain on settlement of long term supply agreement | $ 2 | ||
2019 Federal Income Tax Return | |||
Change in due to related party | 1.6 | ||
2018 Federal Income Tax Return | |||
Change in due to related party | 1.9 | ||
Domestic Tax Authority | |||
Income tax refunds | $ 1 | ||
State And Foreign Tax Authority | |||
Income tax refunds | $ 1.7 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock, 0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | ||
Beginning balance at Dec. 31, 2019 | $ 544 | $ 0.1 | $ 516.4 | $ 76.6 | $ (48.3) | $ (0.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | (16.3) | (16.3) | ||||||
Stock compensation plans | 4.4 | 4.4 | ||||||
Shares withheld for taxes - common stock issuances | (0.7) | (0.7) | ||||||
Foreign currency translation adjustments | 3.9 | 3.9 | ||||||
Reclassification of deferred hedging losses, net of income tax | [1] | 0 | ||||||
Exercise of stock options | 0.8 | 0.8 | ||||||
Net sales of treasury stock - Livent NQSP | 0.1 | 0.1 | ||||||
Ending balance at Dec. 31, 2020 | 536.2 | 0.1 | 520.9 | 60.3 | (44.4) | (0.7) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 0.6 | 0.6 | ||||||
Stock compensation plans | 5.3 | 5.3 | ||||||
Shares withheld for taxes - common stock issuances | (1.8) | (1.8) | ||||||
Issuance of common stock - Offering | 252.2 | 252.2 | ||||||
Net hedging gains (losses), net of income tax | 0.2 | 0.2 | ||||||
Foreign currency translation adjustments | 1.3 | 1.3 | ||||||
Reclassification of deferred hedging losses, net of income tax | [1] | (0.1) | ||||||
Exercise of stock options | 1.5 | 1.5 | ||||||
Net purchases of treasury stock - Livent NQSP | (0.1) | (0.1) | ||||||
Ending balance at Dec. 31, 2021 | 795.4 | 0.1 | 778.1 | 60.9 | (42.9) | (0.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income/(loss) | 273.5 | 273.5 | ||||||
Stock compensation plans | 6.9 | 6.9 | ||||||
Shares withheld for taxes - common stock issuances | (1.7) | (1.7) | ||||||
Issuance of common stock - QLP Merger | 373.9 | 373.9 | ||||||
Net hedging gains (losses), net of income tax | (0.9) | (0.9) | ||||||
Foreign currency translation adjustments | (7.9) | (7.9) | ||||||
Reclassification of deferred hedging losses, net of income tax | 0.7 | [1] | 0.7 | |||||
Exercise of stock options | 3.2 | 3.2 | ||||||
Net sales of treasury stock - Livent NQSP | (0.1) | (0.1) | ||||||
Ending balance at Dec. 31, 2022 | $ 1,443 | $ 0.1 | $ 1,160.4 | $ 334.4 | $ (51) | $ (0.9) | ||
[1]For more detail on the components of these reclassifications and the affected line item in the consolidated statements of operations, see Note 13 within these consolidated financial statements. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations Livent Corporation ("Livent", "we", "us", "Company" or "our") manufactures a wide range of lithium products, which are used primarily in lithium-based batteries, specialty polymers and chemical synthesis applications. We serve a diverse group of markets. A major growth driver for lithium in the future will be the increasing adoption of electric vehicles ("EVs") and other energy storage applications. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information Basis of presentation and principles of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Earnings per share. The weighted average common shares outstanding for both basic and diluted earnings per share for all periods presented was calculated, in accordance with ASC 260, Earnings Per Share. Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. Due to the continuing impacts of the coronavirus ("COVID-19") pandemic, there has been uncertainty and disruption in the global economy and financial markets. The estimates used for, but not limited to, the collectability of trade receivables, other receivables, fair value of long-lived assets and investment in unconsolidated affiliate, income taxes, inventory valuation and fair value of financial instruments could be impacted. We have assessed the impact and are not aware of any specific events or circumstances that required an update to our estimates and assumptions or materially affected the carrying value of our assets or liabilities as of the date of issuance of this Annual Report on Form 10-K. These estimates may change as new events occur and additional information is obtained. Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. Trade receivables, net of allowance and other receivables . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. Our method of calculating the formula consists of estimating the recoverability of trade receivables based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Our analysis of trade receivable collection risk is performed quarterly, and the allowance is adjusted accordingly. One of our subsidiaries that conducts business within Argentina has outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables. 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. Inventories . Inventories are stated at the lower of cost or net realizable value. Inventory costs include those costs directly attributable to products before sale, including all manufacturing overhead but excluding distribution costs. All inventories are determined on a first-in, first-out ("FIFO") basis. Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is calculated principally on a straight-line basis over the estimated useful lives of the assets. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Gains and losses are reflected in income upon sale or retirement of assets. Expenditures that extend the useful lives of property, plant and equipment or increase productivity are capitalized. Ordinary repairs and maintenance are expensed as incurred through operating expense. Capitalized interest . For the years ended December 31, 2022, 2021 and 2020 we capitalized interest expense of $15.8 million, $15.4 million and $12.0 million, respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. Impairments of long-lived assets . We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate ("triggering events") that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where a triggering event occurs and undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. There were no significant impairments during the three years ended December 31, 2022. Asset retirement obligations . We record asset retirement obligations ("AROs") at present value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its estimated fair value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. The carrying amounts for the AROs for the years ended December 31, 2022 and 2021 are $0.2 million and $0.3 million, respectively. These amounts are included in "Other long-term liabilities" on the consolidated balance sheets. Deferred compensation plan. We have established a trust fund administered by a third party to provide funding for benefits payable under the Livent Non-qualified Saving Plan ("Livent NQSP") to which highly compensated Livent employees can elect to defer part of their compensation. The assets held in the trust consist of money market investments, a managed portfolio of equity securities and Livent common stock. For each reporting period, the Company records a net mark-to-market adjustment to Selling, general and administrative expense in our consolidated statements of operations for the investments in the trust fund and the corresponding obligation to participants in the Livent NQSP. The money market investments and equity securities assets are included in Other assets in the accompanying consolidated balance sheets. The investments in Livent common stock under the Livent NQSP are included in Treasury stock on our consolidated balance sheets. The deferred compensation obligation to participants is included in Other long-term liabilities on our consolidated balance sheets. See Note 15 and Note 17 for additional details on the Livent NQSP deferred compensation plan. 4.125% Convertible Senior Notes due 2025 (the "2025 Notes"). We account for our 2025 Notes under Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). Financial instruments. Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, debt, derivatives and amounts included in accruals meeting the definition of financial instruments. Trade receivables and trade payables are recorded at carrying value, which approximates fair value due to the short-term nature of the instruments. Investments held in trust are for the Livent NQSP as discussed in "Deferred compensation plan" subsection above. Livent enters into derivative contracts to hedge exposures and the associated assets or liabilities are recorded in our consolidated balance sheets and the gains or losses associated with these transactions are included in the consolidated statements of operations. Equity method investments. On June 6, 2022 , Livent entered into the Transaction Agreement and Plan of Merger (the "QLP Merger") with The Pallinghurst Group ("Pallinghurst") and acquired the remaining 50% ownership of Québec Lithium Partners (UK) Limited ("QLP") from Pallinghurst and certain of its investors. Through QLP, now a wholly owned subsidiary, the Company owns a direct 50% interest in NLI which it accounts for as an equity method investment included in Investments in our consolidated balance sheets. See Note 6 for details. If facts and circumstances indicate that a decrease in value of the investment has occurred that is other than temporary, we recognize an impairment loss equal to an amount by which the carrying amount exceeds the fair value of the equity method investment. There were no impairments during the three years ended December 31, 2022. Leases. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 16 for information on related disclosures regarding leases. Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. Revenue recognition . Revenue from product sales is recognized when we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. See Note 4 for further details regarding revenue recognition. Research and Development . Research and development costs are expensed as incurred. Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability as part of the income tax payable in our consolidated balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. Stock-based compensation. Stock-based compensation expense for the three years ended December 31, 2022 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock-based compensation expense as they occur. See Note 12 for more information. Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans ("OM&M"). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves which could be significant. Environmental remediation charges represent the costs for the continuing charges associated with environmental remediation at operating sites from previous years and from products that are no longer manufactured. Livent has one environmental remediation site located in Bessemer City, North Carolina. The charge/(income) associated with the cost of remediation for the years ended December 31, 2022, 2021 and 2020 are $1.2 million, $(0.3) million and $0.1 million, respectively. These amounts are recorded as a component within "Restructuring and other charges" on the consolidated statements of operations. The total environmental remediation liability as of December 31, 2022 and 2021 was $7.0 million and $6.1 million, respectively. Foreign currency . We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ statements of operations are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of sales in our consolidated statements of operations. We recorded transaction and remeasurement losses o f $7.0 million , $10.3 million and $14.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New Accounting guidance and regulatory items In 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. The adoption did not have a material impact on our consolidated financial statements. In April 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. We applied the amendments for the annual period ended December 31, 2022. The adoption did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas (based on product destination) and by product categories. The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2022 2021 2020 North America (1) $ 145.7 $ 61.4 $ 53.3 Latin America 2.9 — 0.2 Europe, Middle East & Africa 98.1 62.2 49.2 Asia Pacific (1) 566.5 296.8 185.5 Total Revenue $ 813.2 $ 420.4 $ 288.2 ____________________ 1. In 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the year ended December 31, 2022 for Japan, the U.S., and China totaled $167.6 million, $139.1 million, $304.9 million, respectively. In 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., South Korea and China. S ales for the year ended December 31, 2021 for Japan, the U.S., South Korea and China totaled $75.1 million, $59.9 million, $43.6 million and $160.0 million, respectively. In 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the year ended December 31, 2020 for Japan, the U.S. and China totaled $97.7 million, $52.6 million and $55.3 million, respectively. For the years ended December 31, 2022, 2021 and 2020, one customer accounted for approximately 24% , 31% and 26% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 63% , 69% and 64% of our revenue, respectively. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2022 2021 2020 Lithium Hydroxide $ 415.5 $ 208.0 $ 157.5 Butyllithium 277.7 105.4 87.1 High Purity Lithium Metal and Other Specialty Compounds 50.9 36.9 31.7 Lithium Carbonate and Lithium Chloride 69.1 70.1 11.9 Total Revenue $ 813.2 $ 420.4 $ 288.2 Our lithium products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of title and risk of loss and the shipping terms of the contract. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded in cost of sales. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued to cost of sales when the related revenue is recognized. Amounts billed for sales and use taxes, VAT, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Right of Return We warrant to our customers that our products conform to mutually agreed product specifications. We accrue for expected returns as they occur. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. On July 25, 2022 we entered into a long-term supply agreement with a customer to deliver battery-grade lithium hydroxide over six years between 2025 and 2030. The contract included an advance payment from the customer of $198 million, which we received in the third quarter of 2022. Revenue will be recognized as volumes are delivered. Any unrecognized deferred revenue is refundable if the agreement is terminated for any reason specified in the agreement. The following table presents the opening and closing balances of our contract liabilities and current trade receivables (including buy/sell arrangements), net of allowances from contracts with customers. Balance as of (in Millions) December 31, 2022 December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 141.6 $ 96.4 $ 45.2 Contract liability - short-term 15.5 — 15.5 Contract liability - long-term 198.0 — 198.0 Performance obligations Revenue is recognized when the performance obligation is satisfied, which is when the customer obtains control of the good or service. 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 $656.1 million in the next three years. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer (refer to the sales of goods section for our determination of transfer of control). However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: December 31, (in Millions) 2022 2021 Finished goods $ 44.6 $ 52.2 Semi-finished goods 57.1 43.6 Raw materials, supplies, and other 50.6 38.8 FIFO inventory, net $ 152.3 $ 134.6 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Nemaska Lithium Inc. ("Nemaska Lithium", or "NLI"), domiciled in Canada and headquartered in Montreal, Québec, is a non-public mining company not yet in the production stage. It is a development company aiming to vertically integrate, from extracting, processing and concentrating spodumene to conversion of spodumene into battery grade lithium hydroxide, primarily intended for energy storage applications. Its primary assets are construction in progress and intangibles principally related to intellectual property. Nemaska Lithium intends to develop the Whabouchi spodumene mine and concentrator in the James Bay region of Québec and a lithium hydroxide conversion plant in Bécancour, Québec (collectively, the "Nemaska Lithium Project"). As a developing company and to fund the Nemaska Lithium Project, Nemaska Lithium is reliant on securing financing from its shareholders through share subscriptions. In December 2019, Nemaska Lithium and certain affiliates filed for creditor protection in Canada under the Companies’ Creditors Arrangement Act (the "CCAA") in the Superior Court of Québec (the "CCAA Court"). In October 2020, the CCAA Court approved a sale of Nemaska Lithium structured as a credit bid under the CCAA to a group made up of Orion Mine Finance ("Orion"), Investissement Québec ("IQ", a company established by the Government of Québec to favor investment in Québec by Québec-based and international companies) and The Pallinghurst Group ("Pallinghurst", acting through a new entity named Québec Lithium Partners (UK) Limited ("QLP")). After a series of amalgamations and restructurings, the sale transactions were completed on December 1, 2020, pursuant to which IQ and QLP each acquired a 50% equity interest in Nemaska Lithium. In the fourth quarter of 2020, Livent entered into an agreement with Pallinghurst for a 50% equity interest in QLP. Through this investment, Livent obtained indirect ownership of a 25% equity interest in Nemaska Lithium. On June 6, 2022, Livent issued 17,500,000 shares of its common stock to acquire the remaining 50% share of QLP previously owned by Pallinghurst and certain of its investors (the "QLP Merger"). Upon consummation of the QLP Merger, Livent recorded an Investment of $387.1 million, QLP's cash and cash equivalents of $0.3 million and short-term debt of $13.5 million; and an increase to additional paid in capital of $373.9 million. Livent now owns a 50% economic interest in NLI through its ownership of QLP. The Québec provincial government, through IQ, continues to own the remaining 50% interest in Nemaska Lithium. At present, we do not have off-take rights on the production to come out of the Nemaska Lithium Project. The Company accounts for its interest in Nemaska Lithium as an equity method investment on a one-quarter lag basis and it is included in Investments in our consolidated balance sheets. For the years ended December 31, 2022 and December 31, 2021, we recorded a $15.1 million and $5.5 million loss, respectively, related to our interest in Nemaska Lithium to Equity in net loss of unconsolidated affiliate in our consolidated statements of operations. The carrying amount of our interest in Nemaska Lithium was $437.1 million (representing our 50% interest) and $23.8 million (representing our 25% interest) as of December 31, 2022 and December 31, 2021, respectively. As of December 31, 2022, the carrying amount of our investment in Nemaska Lithium differed from the amount of underlying equity in net assets by approximately $354.5 million. This amount represents the differences between the carrying value of certain assets of Nemaska Lithium and our related valuation on a U.S. GAAP basis in which excess cost was allocated to certain noncurrent, nonfinancial assets of Nemaska Lithium, namely, construction in progress and mining rights. The excess cost basis will be amortized to Equity in net loss of unconsolidated affiliate in our consolidated statements of operations when the Nemaska Lithium Project becomes operational. The following summarized financial data for Nemaska Lithium present, on a one-quarter lag basis, the assets, liabilities, equity, results of operations and cash flows for Nemaska Lithium, our significant unconsolidated affiliate: Nemaska Lithium Inc. December 31, (in Millions) Note 2022 (a) 2021 (a) ASSETS Cash and cash equivalents $ 5.9 $ 10.3 Sales tax receivable 2.5 0.4 Prepaid expenses 0.6 0.6 Other current assets 0.1 — Assets held for sale 1.0 1.1 Total current assets 10.1 12.4 In-trust deposits b 8.9 7.3 Property, plant and equipment, net of accumulated depreciation of $0.7 in 2022 and $0.6 in 2021 c 166.6 176.3 Intangible assets d 29.5 31.9 Total non-current assets 205.0 215.5 Total assets $ 215.1 $ 227.9 LIABILITIES AND EQUITY Current portion of long-term debt e $ 35.7 $ 2.7 Accounts payable and accrued liabilities 4.1 2.1 Current portion of financial liability f 0.5 9.5 Total current liabilities 40.3 14.3 Long-term debt g — 30.5 Non-current portion of unsecured obligation h 2.3 5.1 Asset retirement obligations i 6.9 6.4 Other non-current liabilities 0.4 — Total non-current liabilities 9.6 42.0 Total current and long-term liabilities 49.9 56.3 Share capital j 115.0 71.6 Contributed surplus 24.0 25.8 Retained earnings 26.2 74.2 Total equity 165.2 171.6 Total liabilities and equity $ 215.1 $ 227.9 ________________________ a. Represents September 30, 2022 and September 30, 2021, respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. b. Represents a deposit held in trust for estimated restoration costs relating to the Whabouchi site asset retirement obligation (note i). c. Primarily represents construction in progress for the Whabouchi site related to project engineering, equipment and site preparation and capitalized financing costs. d. Primarily represents intellectual property in relation to patents and development costs. e. Includes $33.2 million representing current portion of the Orion promissory note (see Note h) and $2.5 million related to the unsecured obligation governing the working relationship between the Nemaska Lithium Project and the Cree Nation of Nemaska. f. Includes a bankruptcy restructuring obligation due to a supplier that was paid in the first quarter of 2022. g. Represents a promissory note to Orion. The Orion note bears interest at 8%, matured November 26, 2022, and was secured by Nemaska Lithium's tangible and intangible assets. h. Represents an unsecured obligation governing the working relationship between the Nemaska Lithium Project and the Cree Nation of Nemaska. The obligation bears interest at 4.75% per annum, matures in September, 2024, and is repaid in quarterly installments. i. Represents the asset retirement obligation for estimated inflation-adjusted and discounted future costs associated with mine reclamation and closure activities at the Whabouchi site, and assuming that the disbursements would be made in 2056. j. For the twelve months ended September 30, 2022 and the ten months ended September 30, 2021, Nemaska Lithium issued 20 million and 60 million shares, respectively, for cash proceeds of $50.6 million and $70.2 million, respectively. An unlimited number of shares are authorized without par value. Nemaska Lithium Inc. (in Millions) Year Ended December 31, Note 2022 (a) 2021 (a) Summary of Statement of Operations Information: Operating costs b $ 25.7 $ 11.5 General and administrative costs c 14.2 8.0 Other costs d 4.3 2.5 Net loss from operations before income taxes (44.2) (22.0) Income tax benefit — (0.2) Net loss $ (44.2) $ (21.8) _________________________ a. Represents the twelve months ended September 30, 2022 and the ten months ended September 30, 2021 (our initial investment was made on December 1, 2020), respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. b. Primarily includes construction management and engineering consulting fees. c. Primarily includes employee compensation, rent, office and other expenses and professional fees. d. Primarily includes finance costs and foreign exchange gains and losses. Nemaska Lithium Inc. (in Millions) Year Ended December 31, Note 2022 (a) 2021 (a) Cash used in operating activities $ (41.6) $ (15.0) Cash used in investing activities: Additions to property, plant and equipment (1.4) — Purchases of intangible assets (0.1) — Proceeds from sale of assets — 0.3 Increase in deposit to suppliers — (0.8) Cash used in investing activities $ (1.5) $ (0.5) Cash provided by financing activities: Proceeds from issuance of shares b 50.6 70.2 Debt repayment (8.8) (50.0) Payment of unsecured obligation (2.6) (2.7) Cash provided by financing activities $ 39.2 $ 17.5 Effect of exchange rate changes on cash and cash equivalents (0.5) 0.6 (Decrease)/increase in cash and cash equivalents (4.4) 2.6 Cash and cash equivalents, beginning of period 10.3 7.7 Cash and cash equivalents, end of period $ 5.9 $ 10.3 _________________________ a. Represents the twelve months ended September 30, 2022 and the ten months ended September 30, 2021, respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following: December 31, (in Millions) 2022 2021 Land and land improvements $ 87.0 $ 85.8 Buildings 85.8 84.4 Machinery and equipment 333.4 330.2 Construction in progress 715.2 420.5 Total cost $ 1,221.4 $ 920.9 Accumulated depreciation (253.1) (243.0) Property, plant and equipment, net $ 968.3 $ 677.9 Depreciation expense was $25.1 million, $22.9 million, and $22.0 million in 2022, 2021 and 2020, respectively. |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows total restructuring and other charges included in the consolidated statements of operations: Year Ended December 31, (in Millions) 2022 2021 2020 Restructuring charges: Severance-related and exit costs (1) $ 1.8 $ 0.2 $ 6.2 Other charges: Environmental remediation (2) 1.2 (0.3) 0.1 Other (3) 4.5 3.9 4.4 Total restructuring and other charges $ 7.5 $ 3.8 $ 10.7 ___________________ 1. The years ended December 31, 2022, 2021, and 2020 include exit and severance costs for restructuring and management changes at certain operating and administrative facilities. Additionally, December 31, 2020 includes exit costs of $1.6 million for the closing of leased office space. 2. Represents costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 9 for more details. |
Environmental Obligations
Environmental Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Obligations | Environmental Obligations We are subject to various federal, state, local and foreign environmental laws and regulations that govern emissions of air pollutants, discharges of water pollutants, and the manufacture, storage, handling and disposal of hazardous substances, hazardous wastes and other toxic materials and remediation of contaminated sites. We are also subject to liabilities arising under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") and similar state laws that impose responsibility on persons who arranged for the disposal of hazardous substances, and on current and previous owners and operators of a facility for the clean-up of hazardous substances released from the facility into the environment. We are also subject to liabilities under the Resource Conservation and Recovery Act ("RCRA") and analogous state laws that require owners and operators of facilities that have treated, stored or disposed of hazardous waste pursuant to a RCRA permit to follow certain waste management practices and to clean up releases of hazardous substances into the environment associated with past or present practices. In addition, when deemed appropriate, we enter certain sites with potential liability into voluntary remediation compliance programs, which are also subject to guidelines that require owners and operators, current and previous, to clean up releases of hazardous substances into the environment associated with past or present practices. Environmental liabilities consist of obligations relating to waste handling and the remediation and/or study of sites at which we are alleged to have released or disposed of hazardous substances. As of the periods presented, the Bessemer City site located in North Carolina is the only site for which we have a reserve. We have provided reserves for potential environmental obligations that we consider probable and for which a reasonable estimate of the obligation can be made. Accordingly, total reserves of $7.0 million and $6.1 million existed for the years ended December 31, 2022 and 2021, respectively. The estimated reasonably possible environmental loss contingencies exceed amount accrued by approximately $3.5 million at December 31, 2022. This reasonably possible estimate is based upon information available as of the date of the filing and the actual future losses may be higher given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of potentially responsible parties, technology and information related to the site. Although potential environmental remediation expenditures in excess of the reserves and estimated loss contingencies could be significant, the impact on our future consolidated financial results is not subject to reasonable estimation due to numerous uncertainties concerning the nature and scope of possible contamination, identification of remediation alternatives under constantly changing requirements, selection of new and diverse clean-up technologies to meet compliance standards, and the timing of potential expenditures. The liabilities arising from potential environmental obligations that have not been reserved for at this time may be material to results of operations in the future. The table below is a roll forward of our total environmental reserves. (in Millions) Environmental Reserves Total Balance as of December 31, 2020 $ 6.7 Change in reserves (0.3) Cash payments (0.3) Balance as of December 31, 2021 $ 6.1 Change in reserves 1.2 Cash payments (0.3) Balance as of December 31, 2022 $ 7.0 The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2022 2021 Environmental reserves, current (1) $ 0.6 $ 0.5 Environmental reserves, long-term (2) 6.4 5.6 Total environmental reserves $ 7.0 $ 6.1 ______________ 1. These amounts are included within "Accrued and other liabilities" on the consolidated balance sheets. 2. These amounts are included in "Environmental liabilities" on the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Domestic and foreign components of income/(loss) from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2022 2021 2020 Domestic $ 133.2 $ (15.2) $ (19.7) Foreign 202.2 39.1 (2.3) Total $ 335.4 $ 23.9 $ (22.0) The provision for income taxes attributable to income/(loss) from operations consisted of: Year Ended December 31, (in Millions) 2022 2021 2020 Current: Federal $ 43.7 $ 1.7 $ (1.9) Foreign 5.6 2.6 4.6 State 1.3 — — Total current $ 50.6 $ 4.3 $ 2.7 Deferred: Federal $ (1.9) $ 1.3 $ (0.9) Foreign 13.3 17.7 (7.4) State (0.1) — (0.1) Total deferred 11.3 19.0 (8.4) Total $ 61.9 $ 23.3 $ (5.7) The effective income tax rate applicable to income/(loss) from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2022 2021 2020 U.S. Federal statutory rate $ 70.4 $ 5.1 $ (4.6) Foreign earnings subject to different tax rates (30.0) (1.2) 0.6 Foreign derived intangible income (2.1) (0.7) — State and local income taxes, less federal income tax benefit 0.9 — (0.1) Tax on intercompany dividends and deemed dividends for tax purposes 19.8 3.8 0.1 Changes to unrecognized tax benefits (0.5) (0.9) 2.1 Other permanent items (2.8) (0.9) (0.2) Change in valuation allowance (1.7) 4.4 0.3 Exchange gains and losses (1) 6.9 12.7 (5.9) Withholding taxes net of credits 0.6 0.8 1.1 Other 0.4 0.2 0.9 Total tax provision/(benefit) $ 61.9 $ 23.3 $ (5.7) ____________________ 1. Includes the impact of transaction gains or losses on net monetary assets for which no corresponding tax expense or benefit is realized and the tax provision for statutory taxable gains or losses in foreign jurisdictions for which there is no corresponding amount in income before taxes. Additionally, the years ended December 31, 2022 and 2021 include an adjustment relating to inflation. Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2022 2021 Environmental and restructuring $ 0.7 $ 0.4 Net operating loss carry-forwards and credits 19.2 5.7 Inventory 4.5 — Other assets and reserves 8.7 7.9 Deferred tax assets $ 33.1 $ 14.0 Valuation allowance, net (2.8) (6.4) Deferred tax assets, net of valuation allowance $ 30.3 $ 7.6 Property, plant and equipment, net (17.0) (19.0) Deferred inflationary gain (28.4) — Other liabilities (0.6) (0.4) Deferred tax liabilities (46.0) (19.4) Net deferred tax liabilities $ (15.7) $ (11.8) We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. U.S. GAAP requires companies to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative, using a "more likely than not" standard. In assessing the need for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of deferred tax assets. This assessment considers, among other matters, the nature and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, and tax planning alternatives. As of December 31, 2022, we had total foreign net operating loss carry-forwards of $17.6 million (tax effected) primarily related to Argentina and expiring within 5 years. As of December 31, 2021, we had total foreign net operating loss carry-forwards of $3.5 million (tax effected) primarily related to the Netherlands and United Kingdom. Income taxes are not provided for any additional outside basis differences inherent in our investments in subsidiaries because the investments and related unremitted earnings are essentially permanent in duration or we have concluded that no additional tax liability will arise upon disposal. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings is not practicable due to the complexity of the hypothetical calculation. Uncertain Income Tax Positions U.S. GAAP accounting guidance for uncertainty in income taxes prescribes a model for the recognition and measurement of a tax position taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, disclosure and transition. We file tax returns in various jurisdictions. Pursuant to the TMA with FMC we have recorded amounts in uncertain tax positions at December 31, 2018 for tax positions that relate to our legacy business before IPO. In jurisdictions where we filed consolidated returns with FMC, and did not maintain the entity at IPO, our uncertain tax positions have been reduced as of December 31, 2022. We have recorded a $1.0 million indemnification asset from FMC regarding uncertain tax positions that are related to our legacy business before IPO and for which we are indemnified by FMC. Our significant foreign jurisdictions, which total 4, are open for examination and adjustment during varying periods from 2016 - 2021. As of December 31, 2022, we had total unrecognized tax benefits of $4.5 million, of which $1.7 million would unfavorably impact the effective tax rate from operations if recognized. As of December 31, 2021, we had total unrecognized tax benefits of $2.9 million, of which $1.0 million would unfavorably impact the effective tax rate if recognized. As of December 31, 2020, we had total unrecognized tax benefits of $2.7 million, of which $1.3 million would unfavorably impact the effective tax rate if recognized. Interest and penalties related to unrecognized tax benefits are reported as a component of income tax expense. For the years ended December 31, 2022, 2021 and 2020, we recognized interest and penalties of $0.2 million, $(0.1) million, and $0.7 million, respectively, in the consolidated statement of operations. As of December 31, 2022 and 2021, we have accrued interest and penalties in the consolidated balance sheets of $0.8 million and $0.6 million, res pectively. Due to the potential for resolution of federal, state, or foreign examinations, and the expiration of various jurisdictional statutes of limitation, it is reasonably possible that our liability for unrecognized tax benefits will decrease within the next 12 months by a range of zero to $1.0 million. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2022 2021 2020 Balance at beginning of year $ 2.9 $ 2.7 $ 2.4 Increases related to positions taken in the current year 3.3 — 0.7 Decreases related to positions taken in prior years — (1.6) — Increases related to positions taken in prior years — 1.9 — Decreases related to lapse of statutes of limitations (0.1) (0.1) (0.4) Settlement of uncertain tax positions (1.6) — — Balance at end of year $ 4.5 $ 2.9 $ 2.7 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: Interest Rate Percentage Maturity December 31, 2022 December 31, 2021 (in Millions) SOFR borrowings Base rate borrowings Revolving Credit Facility (1) 6.21% 8.25% 2027 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (3.9) (5.4) Total long-term debt (2) $ 241.9 $ 240.4 ______________________________ 1. As of December 31, 2022 and December 31, 2021, there were $14.9 million and $14.5 million, respectively, in letters of credit outstanding under our Revolving Credit Facility and $485.1 million and $385.5 million available funds as of December 31, 2022 and December 31, 2021, respectively. Fund availability is subject to the Company meeting its debt covenants. 2. As of December 31, 2022 and December 31, 2021, the Company had no debt maturing within one year. 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 Nemaska Lithium. 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., an affiliate of Orion, had a maturity date of November 26, 2022 and earned coupon interest at an annual rate of 8%, compounded to the principal monthly, for the first twelve months. This interest was payable at the maturity date, along with the principal. From November 26, 2021, interest on the note accrued and was payable monthly. On October 14, 2022, QLP paid Nemaska Lithium Shawinigan cash of $13.5 million to repay the QLP Note. 4.125% Convertible Senior Notes due 2025 In 2020, the Company issued $245.8 million in aggregate principal amount of 4.125% Convertible Senior Notes due in July 2025 (the "2025 Notes"). The 2025 Notes are our general unsecured senior obligations. Total net cash proceeds received were $238.2 million net of $7.6 million of third-party transaction costs, including initial purchasers' discounts and commissions. The Company used or will use the net proceeds received to finance or refinance eligible green projects designed to align with the provisions of the International Capital Market Association Green Bond Principles 2018. Each $1,000 of principal of the 2025 Notes is initially convertible into 114.4885 shares of our common stock, which is equivalent to an initial conversion price of $8.73 per share, subject to adjustment upon the occurrence of specified events. We may not redeem the 2025 Notes prior to July 20, 2023. We may redeem for cash all or any portion of the 2025 Notes, at our option, on or after July 20, 2023 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest. Holders of the 2025 Notes may convert their notes at any time, at their option, on or after January 15, 2025. Further, holders of the 2025 Notes may convert their notes at any time, at their option, prior to January 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each trading day; (2) during the five-business day period after any five-consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of such period is less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day, (3) if we call any or all of the 2020 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date or (4) if specified corporate events occur. Upon conversion, the 2025 Notes will be settled in cash, shares of our common stock or a combination thereof, at our election. If a fundamental change occurs prior to the maturity date, holders of the 2025 Notes may require us to repurchase all or a portion of their 2025 Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date or if we deliver a notice of redemption, we will increase the conversion rate for a holder who elects to convert its 2025 Notes in connection with such an event or notice of redemption in certain circumstances. In the first quarter of 2023, the holders of the 2025 Notes were notified that the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, December 31, 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 March 31, 2023. The 2025 Notes are classified as long-term debt. The Company recorded interest expense related to the amortization of transaction costs of $1.5 million for each of the years ended December 31, 2022 and 2021; $1.5 million and $1.2 million of which was capitalized for years ended December 31, 2022 and 2021, respectively. The Company recorded $10.2 million of accrued interest expense related to the principal amount, all of which was capitalized, for each of the years ended December 31, 2022 and 2021. Amended and Restated Credit Agreement, (the "Revolving Credit Facility") On September 1, 2022, the Company entered into the Revolving Credit Facility among the Company, Livent USA Corp (together with the Company, the "Borrowers"), certain subsidiaries of the Borrowers as guarantors, the lenders (the “Lenders”) and issuing banks and Citibank, N.A., as administrative agent. The Revolving Credit Facility amended and restated the Company’s Original Credit Agreement, as amended (the “Credit Agreement”). The Revolving Credit Facility provides for a $500 million senior secured revolving credit facility, $50 million of which is available for the issuance of letters of credit for the account of the Borrowers, with an option to request, and subject to each Lender’s sole discretion, that the aggregate revolving credit commitments be increased to up to $700 million. The issuance of letters of credit and the proceeds of revolving credit loans made pursuant to the Revolving Credit Facility may be used for general corporate purposes, including capital expenditures and permitted acquisitions. Revolving loans under the Revolving Credit Facility will bear interest at a floating rate, which will be (i) a base rate, (ii) Adjusted Term Secured Overnight Financing Rate ("SOFR") (defined as the forward-looking SOFR term rate published by CME Group Benchmark Administration Limited plus 0.10% per annum subject to a floor of zero) or (iii) Euro Interbank Offered Rate ("EURIBOR"), plus, in each case, an applicable margin, as determined in accordance with the provisions of the Revolving Credit Facility. The Revolving Credit Facility includes a quarterly commitment fee on the average daily unused amount of each Lender’s revolving credit commitment at a rate equal to an applicable percentage based on the Company’s first lien leverage ratio. The initial commitment fee is 0.25% per annum. Amounts under the Revolving Credit Facility may be borrowed, repaid and re-borrowed from time to time until the final maturity date on September 1, 2027. Voluntary prepayments and commitment reductions are permitted at any time without payment of any prepayment fee upon proper notice and subject to minimum dollar amounts. Certain of the Borrowers’ domestic subsidiaries (the "Guarantors") guarantee the obligations of the Borrowers under the Revolving Credit Facility. The obligations of the Borrower and the Guarantors are secured by all of the assets of the Borrowers and the Guarantors, including the Borrowers’ facility and real estate in Bessemer City, North Carolina, subject to certain exceptions and exclusions. The foregoing description of the Revolving Credit Facility does not purport to be complete and is qualified in its entirety by reference to the Amended and Restated Credit Agreement, which is filed as Exhibit 10.23 to this Annual Report on Form 10-K. We recorded $2.2 million of incremental deferred financing costs in the consolidated balance sheets for the Revolving Credit Facility commitment, arrangement and legal fees and a $0.1 million loss on debt extinguishment in the consolidated statements of operations for the twelve months ended December 31, 2022 for the write off of existing deferred financing costs to recognize a partial change in syndication related to the Revolving Credit Facility. The carrying value of our deferred financing costs was $2.8 million as of December 31, 2022 and is recorded to Other assets in our consolidated balance sheet. Covenants The Credit Agreement contains certain affirmative and negative covenants that are binding on the Borrowers and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our financial covenants have not changed with the September 1, 2022 amendments to our Credit Agreement. Our maximum allowable first lien leverage ratio is 3.5 as of December 31, 2022. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants at December 31, 2022. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation Livent Corporation Incentive Compensation and Stock Plan As of December 31, 2022, the total shares of Livent common stock authorized for issuance under the Livent Corporation Incentive Compensation and Stock Plan (the "Livent Plan") is 10,683,837 shares. The Livent Plan provides for the grant of a variety of cash and equity awards to officers, directors, employees and consultants, including stock options, restricted stock, restricted stock units (including performance units), stock appreciation rights, and management incentive awards. The Compensation and Organization Committee of the Livent Board of Directors (the "Livent Committee") has the authority to amend the Livent Plan at any time, approve financial targets, award grants, establish performance objectives and conditions and the times and conditions for payment of awards. Stock options granted under the Livent Plan may be incentive or non-qualified stock options. The exercise price for stock options may not be less than the fair market value of the stock at the date of grant. Awards granted under the Livent Plan vest or become exercisable or payable at the time designated by the Livent Committee. The options granted in 2022 will vest on the third anniversary of the date of grant, subject generally to continued employment, and cost is recognized over the vesting period. Incentive and non-qualified options granted under the Livent Plan expire not later than 10 years from the grant date. Under the Livent Plan, awards of restricted stock units ("RSUs") vest over periods designated by the Livent Committee. The RSUs granted in 2022 to employees vest on the same schedule as the stock options granted in 2022. The RSUs granted to non-employee directors in 2022 vest at the Company's next annual meeting of stockholders following the grant date. Compensation cost is recognized over the vesting periods based on the market value of Livent common stock on the grant date of the award. Stock Compensation We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2022 2021 2020 Stock Option Expense, net of taxes of $0.3, $0.3 and $0.2 $ 1.8 $ 1.6 $ 1.1 Restricted Stock Expense, net of taxes of $0.7, $0.6 and $0.5 3.6 2.9 2.6 Performance-Based Restricted Stock Expense, net of taxes of $0.1 0.4 — — Total Stock Compensation Expense, net of taxes of $1.1, $0.9 and $0.7 (1) $ 5.8 $ 4.5 $ 3.7 ____________________ 1. Gross stock compensation charges of $6.8 million and $0.1 million were recorded to "Selling, general and administrative expenses" and "Restructuring and other charges", respectively, in our consolidated statement of operations for the year ended December 31, 2022. Gross stock compensation charges of $5.3 million was recorded to "Selling, general and administrative expenses" in our consolidated statement of operations for the year ended and December 31, 2021. Gross stock compensation charges of $4.1 million, $0.2 million and $0.1 million were recorded to "Selling, general and administrative expenses", "Restructuring and other charges", and "Separation-related costs", respectively, in our consolidated statement of operations for the year ended December 31, 2020. Stock Options The grant date fair values of the stock options granted in the year ended December 31, 2022, were estimated using the Black-Scholes option valuation model, the key assumptions for which are listed in the table below. The expected volatility assumption is based on the historical volatility of a group of fifteen of our publicly traded peers that operate in the specialty chemical sector. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury securities with terms equal to the expected timing of stock option exercises as of the grant date. The dividend yield assumption reflects anticipated dividends on Livent's common stock. Livent stock options granted in 2022 cliff vest on the third anniversary following the grant date and expire ten years from the date of grant. The following table contains Black Scholes valuation assumptions for stock option granted for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Expected dividend yield —% —% —% Expected volatility 28.9% 27.0% 20.2% - 20.7% Expected life (in years) 6.5 6.5 6.5 Risk-free interest rate 1.95% 0.81% 1.20% - 1.73% The weighted-average grant date fair value of options granted during the years ended December 31, 2022, 2021 and 2020 was $7.01 per share, $5.86 and $2.29 per share, respectively. The following table shows stock option activity, for the year ended December 31, 2022: Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding as of December 31, 2021 2,134,431 6.4 $ 14.37 $ 21.4 Granted 188,036 $ 21.01 Exercised (246,958) $ 12.78 $ 4.9 Forfeited (1,427) $ 21.01 Outstanding as of December 31, 2022 2,074,082 6.1 $ 15.16 $ 10.2 Exercisable as of December 31, 2022 1,059,628 4.5 $ 13.06 $ 7.2 As of December 31, 2022 and December 31, 2021 , we had total remaining unrecognized compensation cost related to unvested stock options of $2.1 million and $3.0 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.6 years. The aggregate intrinsic value of stock options exercised for the year ended December 31, 2021 and 2020 was $1.2 million and $0.4 million, respectively. Restricted Stock Unit Awards The grant date fair value of RSUs under the Livent Plan is based on the market price per share of Livent's common stock on the date of grant, and the related compensation cost is amortized to expense on a straight-line basis over the vesting period during which the employees perform related services, which for the RSUs granted in 2022 is cliff vesting on the third anniversary following the grant date. The following table shows RSU activity for the year ended December 31, 2022: Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2021 716,438 $ 14.03 $ 17.5 Granted 251,814 $ 22.72 Vested (175,766) $ 14.10 Forfeited (3,371) $ 20.77 Nonvested as of December 31, 2022 789,115 $ 16.76 $ 15.7 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2022, 2021 and 2020 was $22.72 per share, $20.12 per share and $7.31 per share, respectively. The intrinsic value of RSUs vested during the years ended December 31, 2022, 2021, and 2020 was $4.7 million, $5.0 million, and $1.6 million, respectively. The total fair value of RSUs vested during the years ended December 31, 2022, 2021 and 2020 was $2.5 million, $3.2 million, and $1.7 million, respectively. As of December 31, 2022, there was total remaining unrecognized compensation cost related to unvested RSUs of $5.8 million which will be amortized over the weighted-average remaining requisite service period of approximately 1.9 years. 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 Plan. The number of 2022 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 2022 PRSUs earned will range from 0% to 200% of the number of 2022 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% The February 23, 2022 grant date fair value of each 2022 PRSU granted was $20.82 per share. Related compensation cost is amortized to expense on a straight-line basis over the vesting period during which the employees perform related services, which for the 2022 PRSUs granted in 2022 is cliff vesting on the third anniversary following the grant date. The following table shows PRSU activity for the year ended December 31, 2022: Performance-Based Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2021 — $ — $ — Granted 63,327 $ 20.82 Forfeited (481) $ 20.82 Nonvested as of December 31, 2022 62,846 $ 20.82 $ 1.2 The weighted-average grant date fair value of PRSUs granted during the year ended December 31, 2022 was $20.82 per share. No PRSUs vested during the year ended December 31, 2022. As of December 31, 2022, there was total remaining unrecognized compensation cost related to unvested PRSUs of $0.9 million which will be amortized over the weighted-average remaining requisite service period of approximately 1.9 years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity The following table reflects the changes in Livent's common shares issued and outstanding for each period presented: Issued Treasury Outstanding Balance as of December 31, 2020 146,461,249 (99,268) 146,361,981 RSU awards 270,775 — 270,775 Stock option awards 109,578 — 109,578 Net purchases of treasury stock - deferred compensation plan — (2,350) (2,350) Issuance of common stock 14,950,000 — 14,950,000 Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 RSU awards 113,565 — 113,565 Stock option awards 246,958 — 246,958 Net purchases of treasury stock - deferred compensation plan — (1,957) (1,957) Issuance of common stock 17,500,000 — 17,500,000 Balance as of December 31, 2022 179,652,125 (103,575) 179,548,550 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, 2020 $ (44.4) $ — $ (44.4) Other comprehensive income before reclassifications 1.3 0.3 $ 1.6 Amounts reclassified from accumulated other comprehensive loss — (0.1) (0.1) Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive loss before reclassifications (7.9) (0.9) (8.8) Amounts reclassified from accumulated other comprehensive loss — 0.7 0.7 Accumulated other comprehensive loss, net of tax as of December 31, 2022 $ (51.0) $ — $ (51.0) ______________ 1. See Note 15 for more information. Reclassifications of accumulated other comprehensive loss The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated statement of operations for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated Statements of Income (in Millions) Year ended December 31, 2022 Year ended December 31, 2021 Derivative instruments Foreign currency contracts $ 0.9 $ (0.1) Costs of sales Total before tax 0.9 (0.1) (0.2) — Provision for income taxes Amount included in net income $ 0.7 $ (0.1) Total reclassifications for the period $ 0.7 $ (0.1) Amount included in net income ____________________ 1. Amounts in parentheses indicate charges to the consolidated statement of operations. Provision for income taxes was less than $0.1 million for the year ended December 31, 2021. No amounts were reclassified for the year ended December 31, 2020. Dividends |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share Earnings/(loss) per common share ("EPS") is computed by dividing net income/(loss) by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options, restricted stock units, performance-based restricted stock units and 2025 Notes. Diluted earnings/(loss) per share ("Diluted EPS") considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. We use the if-converted method when calculating the potential dilutive effect of our 2025 Notes. Earnings/(loss) applicable to common stock and common stock shares used in the calculation of basic and diluted earnings/(loss) per share are as follows: (in Millions, Except Per Share Data) Year Ended December 31, 2022 2021 2020 Numerator: Net income/(loss) $ 273.5 $ 0.6 $ (16.3) Adjustment for interest on 2025 Notes, net of tax (1) — 0.2 — Net income/(loss) after assumed conversion of 2025 Notes $ 273.5 $ 0.8 $ (16.3) Denominator: Weighted average common shares outstanding - basic 171.8 154.7 146.2 Dilutive share equivalents from share-based plans 1.7 1.5 — Dilutive share equivalents from 2025 Notes 28.1 28.1 — Weighted average common shares outstanding - diluted 201.6 184.3 146.2 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ 1.59 $ — $ (0.11) Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ 1.36 $ — $ (0.11) _______________________________ 1. For the years ended December 31, 2022, 2021 and 2020 $11.6 million, $11.4 million and $5.7 million of interest for the 2025 Notes was capitalized, respectively. The following table presents weighted average share equivalents associated with share-based plans and the 2025 Notes that were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The 2025 Notes are further discussed in Note 11. (in Millions) Year Ended December 31, 2022 2021 2020 Share equivalents from share-based plans — — 0.7 Share equivalents from 2025 Notes — — 14.6 Total antidilutive weighted average share equivalents — — 15.3 Anti-dilutive stock options |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 12 Months Ended |
Dec. 31, 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, debt, 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 $791.8 million and $241.9 million, respectively, as of December 31, 2022. Our 2025 Notes are classified as Level 2 in the fair value hierarchy. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in Accumulated Other Comprehensive Loss ("AOCL") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of December 31, 2022, we had open foreign currency forward contracts in AOCL in a net after-tax loss position of less than $0.1 million designated as cash flow hedges of underlying forecasted sales and purchases. As of December 31, 2022 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $34.7 million . Less than $0.1 million of net after-tax loss, representing open foreign currency exchange contracts, will be realized in earnings during the twelve months ending December 31, 2023 i f spot rates in the future are consistent with market rates as of December 31, 2022. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the 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 $62.3 million as of December 31, 2022. Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company has open derivative cash flow hedge contracts with a liability position of less than $0.1 million as of December 31, 2022. December 31, 2021 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.2 Total derivative assets (1) 0.2 Net derivative assets $ 0.2 _______________________ 1. Net balance is included in “Prepaid and other current assets” in the consolidated balance sheets. The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. The Company has open derivative cash flow hedge contracts with a liability position of less than $0.1 million as of December 31, 2022. The Company had no open derivative cash flow hedge contracts as of December 31, 2020. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2020 $ — Unrealized hedging gains, net of tax 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.1) Total derivative instrument impact on comprehensive income, net of tax 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2021 $ 0.2 Unrealized hedging losses, net of tax (0.9) Reclassification of deferred hedging gains, net of tax (1) 0.7 Total derivative instrument impact on comprehensive loss, net of tax (0.2) Accumulated other comprehensive loss, net of tax at December 31, 2022 $ — ____________________ 1. Amounts are included in “Cost of sales” on the consolidated statement of operations. Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2022 2021 2020 Foreign Exchange contracts Cost of sales $ (5.2) $ (2.4) $ (1.7) Total $ (5.2) $ (2.4) $ (1.7) ____________________ 1. Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Fair-Value Measurements Fair-Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2022 and 2021. (in Millions) December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.1 $ 3.1 $ — $ — Total Assets $ 3.1 $ 3.1 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.1 $ 5.1 $ — $ — Total Liabilities (3) $ 5.1 $ 5.1 $ — $ — (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 $ — — Derivatives – Foreign exchange 0.2 — 0.2 — Total Assets $ 3.6 $ 3.4 $ 0.2 $ — Liabilities Deferred compensation plan obligation (2) $ 5.9 $ 5.9 $ — $ — Total Liabilities $ 5.9 $ 5.9 $ — $ — ____________________ 1. Balance is included in "Other assets" in the consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the consolidated balance sheets and carried at historical cost. A mark-to-market gain of $0.5 million and a mark-to-market loss of $0.6 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the consolidated statements of operations for the years ended December 31, 2022 and December 31, 2021, respectively, with a corresponding offset to the deferred compensation plan obligation in the consolidated balance sheets. 2. Balance is included in "Other long-term liabilities" in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Leases All of our leases are operating leases as of December 31, 2022. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of less than 1 year to 13 years. Disclosures about our leases under ASC 842 are summarized in the table below. Year ended December 31, (in Millions) 2022 2021 2020 Lease Cost Operating lease cost (1) $ 1.3 $ 1.2 $ 2.2 Short-term lease cost (2) 0.4 0.9 0.5 Variable lease cost (1) — 0.1 0.2 Total lease cost (1) $ 1.7 $ 2.2 $ 2.9 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 1.3 $ 1.8 $ 2.1 ____________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our consolidated statements of operations. 2. The year ended December 31, 2021 includes $0.6 million for our corporate headquarters office space sublease with FMC, which terminated in the first quarter of 2021. As of December 31, 2022, our operating leases had a weighted average remaining lease term of 8 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 2023 $ 1.1 2024 1.1 2025 1.1 2026 0.5 2027 0.3 Thereafter 1.9 Total future minimum lease payments 6.0 Less: Imputed interest (0.9) Total $ 5.1 Contingencies We are a party to various legal proceedings, including those noted in this section. Livent records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred. In addition to the legal proceedings noted below, we have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity. Argentine Customs & 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 and 2018 to 2019), 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 by 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. In January, 2023, the Argentina Ministry of Economy issued a resolution to cancel an export rebate regime relating to lithium products, which was followed by Presidential Decree No. 57/2023 in February, 2023. The Presidential Decree prospectively cancels all export rebates for lithium products. Prior to the Presidential Decree, MdA had the right to collect 4% of the FOB value for the exported products. As of December 31, 2022, MdA has a receivable of approximately $5.2 million USD which is still valid and will remain in force after the Presidential Decree. Subsequent to the Presidential Decree entering into force on February 8, 2023, MdA will no longer be entitled to the 4% of rebate/refund on FOB value of its exported products. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated balance sheets: (in Millions) December 31, 2022 2021 Prepaid and other current assets Income tax receivable - refunds and prepayments $ 22.0 $ 17.7 Argentina government receivable (1) 6.7 13.3 Prepaid expenses 11.6 12.2 Other receivables 7.4 2.3 Derivative assets (Note 15) — 0.2 Bank Acceptance Drafts (2) 6.9 — Other current assets 6.5 9.6 Total $ 61.1 $ 55.3 (in Millions) December 31, 2022 2021 Other assets Argentina government receivable (1) $ 80.3 $ 55.8 Advance to contract manufacturers (3) 17.2 16.0 Long-term raw materials inventory 1.6 4.9 Capitalized software, net 1.4 1.5 Other income tax related items 3.7 1.3 Other long-term assets 12.2 11.4 Total $ 116.4 $ 90.9 ____________________ 1. We have various subsidiaries that conduct business within Argentina. At December 31, 2022 and 2021, $40.0 million and $38.4 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. (in Millions) December 31, 2022 2021 Accrued and other current liabilities Accrued payroll $ 19.8 $ 17.1 Accrued investment in unconsolidated affiliate 0.1 6.2 Restructuring reserves 3.1 3.2 Retirement liability - 401K 2.6 2.5 Environmental reserves, current 0.6 0.5 Severance 0.1 — Other accrued and other current liabilities 11.1 32.3 Total $ 37.4 $ 61.8 (in Millions) December 31, 2022 2021 Other long-term liabilities Deferred compensation plan obligation $ 5.1 $ 5.9 Contingencies related to uncertain tax positions (1) 5.7 2.3 Self insurance reserves 1.5 1.5 Asset retirement obligations 0.2 0.3 Other long-term liabilities 3.4 1.7 Total $ 15.9 $ 11.7 ____________________ 1. As of December 31, 2022, we have recorded a liability for uncertain tax positions of $5.3 million and a $0.4 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Principal Accounting Policies_2
Principal Accounting Policies and Related Financial Information (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of consolidation | Basis of presentation and principles of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. |
Earnings per share | Earnings per share. The weighted average common shares outstanding for both basic and diluted earnings per share for all periods presented was calculated, in accordance with ASC 260, Earnings Per Share. |
Estimates and assumptions | Estimates and assumptions . In preparing the financial statements in conformity with U.S. GAAP we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or conditions, but we do not believe such differences will materially affect our financial position, results of operations or cash flows. |
Cash equivalents | Cash equivalents . We consider investments in all liquid debt instruments with original maturities of three months or less to be cash equivalents. |
Trade receivables, net of allowance | Trade receivables, net of allowance and other receivables . Trade receivables consist of amounts owed to us from customer sales and are recorded when revenue is recognized. The allowance for trade receivables represents our best estimate of the probable losses associated with potential customer defaults. In developing our allowance for trade receivables, we use a two stage process which includes calculating a formula to develop an allowance to appropriately address the uncertainty surrounding collection risk of our entire portfolio and specific allowances for customers where the risk of collection has been reasonably identified either due to liquidity constraints or disputes over contractual terms and conditions. |
Inventories | Inventories . Inventories are stated at the lower of cost or net realizable value. Inventory costs include those costs directly |
Property, plant and equipment | Property, plant and equipment . We record property, plant and equipment, including capitalized interest, at cost. We recognize acquired property, plant and equipment, from acquisitions at its estimated fair value. Depreciation is calculated principally on a straight-line basis over the estimated useful lives of the assets. The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years |
Capitalized interest | Capitalized interest . For the years ended December 31, 2022, 2021 and 2020 we capitalized interest expense of $15.8 million, $15.4 million and $12.0 million, respectively. These costs were associated with the construction of certain long-lived assets and have been capitalized as part of the cost of those assets. We amortize capitalized interest over the estimated useful lives of the assets. |
Impairments of long-lived assets | Impairments of long-lived assets . We review the recoverability of the net book value of long-lived assets whenever events and circumstances indicate ("triggering events") that the net book value of an asset may not be recoverable from the estimated undiscounted future cash flows expected to result from its use and eventual disposition. In cases where a triggering event occurs and undiscounted expected future cash flows are less than the net book value, we recognize an impairment loss equal to an amount by which the net book value exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. There were no significant impairments during the three years ended December 31, 2022. |
Asset retirement obligations | Asset retirement obligations . We record asset retirement obligations ("AROs") at present value at the time the liability is incurred if we can reasonably estimate the settlement date. The associated AROs are capitalized as part of the carrying amount of related long-lived assets. In future periods, the liability is accreted to its estimated fair value and the capitalized cost is depreciated over the useful life of the related asset. We also adjust the liability for changes resulting from the passage of time and/or revisions to the timing or the amount of the original estimate. Upon retirement of the long-lived asset, we either settle the obligation for its recorded amount or incur a gain or loss. We have mining operations and legal reclamation obligations related to our facilities upon closure of the mines. The AROs primarily relate to post-closure reclamation of brine wells and sites involved in the surface mining and manufacturing of lithium in Argentina. Also, we have obligations at certain of our manufacturing facilities and offices in the event of permanent plant shutdown. The carrying amounts for the AROs for the years ended December 31, 2022 and 2021 are $0.2 million and $0.3 million, respectively. These amounts are included in "Other long-term liabilities" on the consolidated balance sheets. |
Deferred compensation plan | Deferred compensation plan. We have established a trust fund administered by a third party to provide funding for benefits payable under the Livent Non-qualified Saving Plan ("Livent NQSP") to which highly compensated Livent employees can elect to defer part of their compensation. The assets held in the trust consist of money market investments, a managed portfolio of equity securities and Livent common stock. For each reporting period, the Company records a net mark-to-market adjustment to Selling, general and administrative expense in our consolidated statements of operations for the investments in the trust fund and the corresponding obligation to participants in the Livent NQSP. The money market investments and equity securities assets are included in Other assets in the accompanying consolidated balance sheets. The investments in Livent common stock under the Livent NQSP are included in Treasury stock on our consolidated balance sheets. The deferred compensation obligation to participants is included in Other long-term liabilities on our consolidated balance sheets. |
4.125% Convertible Senior Notes due 2025 (the "2025 Notes") | 4.125% Convertible Senior Notes due 2025 (the "2025 Notes"). We account for our 2025 Notes under Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). |
Financial instruments | Financial instruments. Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, debt, derivatives and amounts included in accruals meeting the definition of financial instruments. Trade receivables and trade payables are recorded at carrying value, which approximates fair value due to the short-term nature of the instruments. Investments held in trust are for the Livent NQSP as discussed in "Deferred compensation plan" subsection above. Livent enters into derivative contracts to hedge exposures and the associated assets or liabilities are recorded in our consolidated balance sheets and the gains or losses associated with these transactions are included in the consolidated statements of operations. |
Equity method investments | Equity method investments. On June 6, 2022 , |
Leases | Leases. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. |
Restructuring and other charges | Restructuring and other charges . We continually perform strategic reviews and assess the return on our businesses. This sometimes results in a plan to restructure the operations of our business. We record an accrual for severance and other exit costs under the provisions of the relevant accounting guidance. Additionally, as part of these restructuring plans, write-downs of long-lived assets may occur. Two types of assets are impacted: assets to be disposed of by sale and assets to be abandoned. Assets to be disposed of by sale are measured at the lower of carrying amount or estimated net proceeds from the sale. Assets to be abandoned with no remaining future service potential are written down to amounts expected to be recovered. The useful life of assets to be abandoned that have a remaining future service potential are adjusted and depreciation is recorded over the adjusted useful life. |
Finite-lived intangible assets | Finite-lived intangible assets . Finite-lived intangible assets consist of a patent, which is being amortized over a period of 15 years. |
Revenue recognition | Revenue recognition . Revenue from product sales is recognized when we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then Our lithium products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of title and risk of loss and the shipping terms of the contract. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded in cost of sales. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued to cost of sales when the related revenue is recognized. Amounts billed for sales and use taxes, VAT, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Right of Return We warrant to our customers that our products conform to mutually agreed product specifications. We accrue for expected returns as they occur. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. |
Research and Development | Research and Development . Research and development costs are expensed as incurred. |
Income and other taxes | Income and other taxes . We provide current income taxes on income reported for financial statement purposes adjusted for transactions that do not enter into the computation of income taxes payable and recognize deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Prior to separation, pursuant to the tax matters agreement with FMC, in jurisdictions where we file consolidated returns with FMC, we have recorded our allocated share of the consolidated liability as part of the income tax payable in our consolidated balance sheets. In taxing jurisdictions where we file as a standalone entity we have recorded the tax liability/benefit to income tax payable/receivable. We do not provide income taxes on the equity in undistributed earnings of consolidated foreign subsidiaries as it is our intention that such earnings will remain invested in those companies. |
Segment information | Segment information. We operate as one reportable segment based on the commonalities among our products and services and the manner in which we review and evaluate operating performance. |
Stock-based compensation | Stock-based compensation. Stock-based compensation expense for the three years ended December 31, 2022 has been recognized for all share options and other equity-based arrangements. Stock-based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee’s requisite service period. We made a policy election to recognize forfeitures in stock-based compensation expense as they occur. |
Environmental obligations | Environmental obligations. We provide for environmental-related obligations when they are probable and amounts can be reasonably estimated. Included in our environmental liabilities are costs for the operation, maintenance and monitoring of site remediation plans ("OM&M"). Such reserves are based on our best estimates for these OM&M plans. Over time we may incur OM&M costs in excess of these reserves which could be significant. |
Foreign currency | Foreign currency. We translate the assets and liabilities of our foreign operations at exchange rates in effect at the balance sheet date. For foreign operations for which the functional currency is not the U.S. dollar, we record translation gains and losses as a component of accumulated other comprehensive loss in equity. The foreign operations’ statements of operations are translated at the monthly exchange rates for the period. Transactions denominated in foreign currency other than our functional currency of the operation are recorded upon initial recognition at the exchange rate at the date of the transaction. After initial recognition, monetary assets and liabilities denominated in foreign currency are remeasured at each reporting date into the functional currency at the exchange rate at that date. Exchange rate differences are recognized as foreign currency transaction gain or loss recorded as a component of Costs of sales in our consolidated statements of operations. |
New Accounting guidance and regulatory items | 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. The adoption did not have a material impact on our consolidated financial statements. In April 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) . The amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. We applied the amendments for the annual period ended December 31, 2022. The adoption did not have a material impact on our consolidated financial statements. |
Derivatives | Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges |
Principal Accounting Policies_3
Principal Accounting Policies and Related Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Property, plant and equipment consisted of the following: December 31, (in Millions) 2022 2021 Land and land improvements $ 87.0 $ 85.8 Buildings 85.8 84.4 Machinery and equipment 333.4 330.2 Construction in progress 715.2 420.5 Total cost $ 1,221.4 $ 920.9 Accumulated depreciation (253.1) (243.0) Property, plant and equipment, net $ 968.3 $ 677.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by major geographical region: Year Ended December 31, (in Millions) 2022 2021 2020 North America (1) $ 145.7 $ 61.4 $ 53.3 Latin America 2.9 — 0.2 Europe, Middle East & Africa 98.1 62.2 49.2 Asia Pacific (1) 566.5 296.8 185.5 Total Revenue $ 813.2 $ 420.4 $ 288.2 ____________________ 1. In 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the year ended December 31, 2022 for Japan, the U.S., and China totaled $167.6 million, $139.1 million, $304.9 million, respectively. In 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., South Korea and China. S ales for the year ended December 31, 2021 for Japan, the U.S., South Korea and China totaled $75.1 million, $59.9 million, $43.6 million and $160.0 million, respectively. In 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the year ended December 31, 2020 for Japan, the U.S. and China totaled $97.7 million, $52.6 million and $55.3 million, respectively. The following table provides information about disaggregated revenue by major product category: Year Ended December 31, (in Millions) 2022 2021 2020 Lithium Hydroxide $ 415.5 $ 208.0 $ 157.5 Butyllithium 277.7 105.4 87.1 High Purity Lithium Metal and Other Specialty Compounds 50.9 36.9 31.7 Lithium Carbonate and Lithium Chloride 69.1 70.1 11.9 Total Revenue $ 813.2 $ 420.4 $ 288.2 |
Receivables and Contract Liabilities | The following table presents the opening and closing balances of our contract liabilities and current trade receivables (including buy/sell arrangements), net of allowances from contracts with customers. Balance as of (in Millions) December 31, 2022 December 31, 2021 Increase Receivables from contracts with customers, net of allowances $ 141.6 $ 96.4 $ 45.2 Contract liability - short-term 15.5 — 15.5 Contract liability - long-term 198.0 — 198.0 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, (in Millions) 2022 2021 Finished goods $ 44.6 $ 52.2 Semi-finished goods 57.1 43.6 Raw materials, supplies, and other 50.6 38.8 FIFO inventory, net $ 152.3 $ 134.6 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investment, Summarized Financial Information | The following summarized financial data for Nemaska Lithium present, on a one-quarter lag basis, the assets, liabilities, equity, results of operations and cash flows for Nemaska Lithium, our significant unconsolidated affiliate: Nemaska Lithium Inc. December 31, (in Millions) Note 2022 (a) 2021 (a) ASSETS Cash and cash equivalents $ 5.9 $ 10.3 Sales tax receivable 2.5 0.4 Prepaid expenses 0.6 0.6 Other current assets 0.1 — Assets held for sale 1.0 1.1 Total current assets 10.1 12.4 In-trust deposits b 8.9 7.3 Property, plant and equipment, net of accumulated depreciation of $0.7 in 2022 and $0.6 in 2021 c 166.6 176.3 Intangible assets d 29.5 31.9 Total non-current assets 205.0 215.5 Total assets $ 215.1 $ 227.9 LIABILITIES AND EQUITY Current portion of long-term debt e $ 35.7 $ 2.7 Accounts payable and accrued liabilities 4.1 2.1 Current portion of financial liability f 0.5 9.5 Total current liabilities 40.3 14.3 Long-term debt g — 30.5 Non-current portion of unsecured obligation h 2.3 5.1 Asset retirement obligations i 6.9 6.4 Other non-current liabilities 0.4 — Total non-current liabilities 9.6 42.0 Total current and long-term liabilities 49.9 56.3 Share capital j 115.0 71.6 Contributed surplus 24.0 25.8 Retained earnings 26.2 74.2 Total equity 165.2 171.6 Total liabilities and equity $ 215.1 $ 227.9 ________________________ a. Represents September 30, 2022 and September 30, 2021, respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. b. Represents a deposit held in trust for estimated restoration costs relating to the Whabouchi site asset retirement obligation (note i). c. Primarily represents construction in progress for the Whabouchi site related to project engineering, equipment and site preparation and capitalized financing costs. d. Primarily represents intellectual property in relation to patents and development costs. e. Includes $33.2 million representing current portion of the Orion promissory note (see Note h) and $2.5 million related to the unsecured obligation governing the working relationship between the Nemaska Lithium Project and the Cree Nation of Nemaska. f. Includes a bankruptcy restructuring obligation due to a supplier that was paid in the first quarter of 2022. g. Represents a promissory note to Orion. The Orion note bears interest at 8%, matured November 26, 2022, and was secured by Nemaska Lithium's tangible and intangible assets. h. Represents an unsecured obligation governing the working relationship between the Nemaska Lithium Project and the Cree Nation of Nemaska. The obligation bears interest at 4.75% per annum, matures in September, 2024, and is repaid in quarterly installments. i. Represents the asset retirement obligation for estimated inflation-adjusted and discounted future costs associated with mine reclamation and closure activities at the Whabouchi site, and assuming that the disbursements would be made in 2056. j. For the twelve months ended September 30, 2022 and the ten months ended September 30, 2021, Nemaska Lithium issued 20 million and 60 million shares, respectively, for cash proceeds of $50.6 million and $70.2 million, respectively. An unlimited number of shares are authorized without par value. Nemaska Lithium Inc. (in Millions) Year Ended December 31, Note 2022 (a) 2021 (a) Summary of Statement of Operations Information: Operating costs b $ 25.7 $ 11.5 General and administrative costs c 14.2 8.0 Other costs d 4.3 2.5 Net loss from operations before income taxes (44.2) (22.0) Income tax benefit — (0.2) Net loss $ (44.2) $ (21.8) _________________________ a. Represents the twelve months ended September 30, 2022 and the ten months ended September 30, 2021 (our initial investment was made on December 1, 2020), respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. b. Primarily includes construction management and engineering consulting fees. c. Primarily includes employee compensation, rent, office and other expenses and professional fees. d. Primarily includes finance costs and foreign exchange gains and losses. Nemaska Lithium Inc. (in Millions) Year Ended December 31, Note 2022 (a) 2021 (a) Cash used in operating activities $ (41.6) $ (15.0) Cash used in investing activities: Additions to property, plant and equipment (1.4) — Purchases of intangible assets (0.1) — Proceeds from sale of assets — 0.3 Increase in deposit to suppliers — (0.8) Cash used in investing activities $ (1.5) $ (0.5) Cash provided by financing activities: Proceeds from issuance of shares b 50.6 70.2 Debt repayment (8.8) (50.0) Payment of unsecured obligation (2.6) (2.7) Cash provided by financing activities $ 39.2 $ 17.5 Effect of exchange rate changes on cash and cash equivalents (0.5) 0.6 (Decrease)/increase in cash and cash equivalents (4.4) 2.6 Cash and cash equivalents, beginning of period 10.3 7.7 Cash and cash equivalents, end of period $ 5.9 $ 10.3 _________________________ a. Represents the twelve months ended September 30, 2022 and the ten months ended September 30, 2021, respectively, for Nemaska Lithium on a one-quarter lag basis, as allowed under ASC 323. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The major classifications of property, equipment and software, including their respective expected useful lives, consisted of the following: Asset type Useful Life Land — Land improvements 20 years Buildings 20-40 years Machinery and Equipment 3-18 years Software 3-10 years Property, plant and equipment consisted of the following: December 31, (in Millions) 2022 2021 Land and land improvements $ 87.0 $ 85.8 Buildings 85.8 84.4 Machinery and equipment 333.4 330.2 Construction in progress 715.2 420.5 Total cost $ 1,221.4 $ 920.9 Accumulated depreciation (253.1) (243.0) Property, plant and equipment, net $ 968.3 $ 677.9 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows total restructuring and other charges included in the consolidated statements of operations: Year Ended December 31, (in Millions) 2022 2021 2020 Restructuring charges: Severance-related and exit costs (1) $ 1.8 $ 0.2 $ 6.2 Other charges: Environmental remediation (2) 1.2 (0.3) 0.1 Other (3) 4.5 3.9 4.4 Total restructuring and other charges $ 7.5 $ 3.8 $ 10.7 ___________________ 1. The years ended December 31, 2022, 2021, and 2020 include exit and severance costs for restructuring and management changes at certain operating and administrative facilities. Additionally, December 31, 2020 includes exit costs of $1.6 million for the closing of leased office space. 2. Represents costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 9 for more details. |
Environmental Obligations (Tabl
Environmental Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Reserves | The table below is a roll forward of our total environmental reserves. (in Millions) Environmental Reserves Total Balance as of December 31, 2020 $ 6.7 Change in reserves (0.3) Cash payments (0.3) Balance as of December 31, 2021 $ 6.1 Change in reserves 1.2 Cash payments (0.3) Balance as of December 31, 2022 $ 7.0 |
Schedule of Accrual for Environmental Contingencies | The table below provides detail of current and long-term environmental reserves. December 31, (in Millions) 2022 2021 Environmental reserves, current (1) $ 0.6 $ 0.5 Environmental reserves, long-term (2) 6.4 5.6 Total environmental reserves $ 7.0 $ 6.1 ______________ 1. These amounts are included within "Accrued and other liabilities" on the consolidated balance sheets. 2. These amounts are included in "Environmental liabilities" on the consolidated balance sheets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Domestic and foreign components of income/(loss) from operations before income taxes are shown below: Year Ended December 31, (in Millions) 2022 2021 2020 Domestic $ 133.2 $ (15.2) $ (19.7) Foreign 202.2 39.1 (2.3) Total $ 335.4 $ 23.9 $ (22.0) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes attributable to income/(loss) from operations consisted of: Year Ended December 31, (in Millions) 2022 2021 2020 Current: Federal $ 43.7 $ 1.7 $ (1.9) Foreign 5.6 2.6 4.6 State 1.3 — — Total current $ 50.6 $ 4.3 $ 2.7 Deferred: Federal $ (1.9) $ 1.3 $ (0.9) Foreign 13.3 17.7 (7.4) State (0.1) — (0.1) Total deferred 11.3 19.0 (8.4) Total $ 61.9 $ 23.3 $ (5.7) |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate applicable to income/(loss) from operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table: Year Ended December 31, (in Millions) 2022 2021 2020 U.S. Federal statutory rate $ 70.4 $ 5.1 $ (4.6) Foreign earnings subject to different tax rates (30.0) (1.2) 0.6 Foreign derived intangible income (2.1) (0.7) — State and local income taxes, less federal income tax benefit 0.9 — (0.1) Tax on intercompany dividends and deemed dividends for tax purposes 19.8 3.8 0.1 Changes to unrecognized tax benefits (0.5) (0.9) 2.1 Other permanent items (2.8) (0.9) (0.2) Change in valuation allowance (1.7) 4.4 0.3 Exchange gains and losses (1) 6.9 12.7 (5.9) Withholding taxes net of credits 0.6 0.8 1.1 Other 0.4 0.2 0.9 Total tax provision/(benefit) $ 61.9 $ 23.3 $ (5.7) ____________________ |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities were attributable to: December 31, (in Millions) 2022 2021 Environmental and restructuring $ 0.7 $ 0.4 Net operating loss carry-forwards and credits 19.2 5.7 Inventory 4.5 — Other assets and reserves 8.7 7.9 Deferred tax assets $ 33.1 $ 14.0 Valuation allowance, net (2.8) (6.4) Deferred tax assets, net of valuation allowance $ 30.3 $ 7.6 Property, plant and equipment, net (17.0) (19.0) Deferred inflationary gain (28.4) — Other liabilities (0.6) (0.4) Deferred tax liabilities (46.0) (19.4) Net deferred tax liabilities $ (15.7) $ (11.8) |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in Millions) 2022 2021 2020 Balance at beginning of year $ 2.9 $ 2.7 $ 2.4 Increases related to positions taken in the current year 3.3 — 0.7 Decreases related to positions taken in prior years — (1.6) — Increases related to positions taken in prior years — 1.9 — Decreases related to lapse of statutes of limitations (0.1) (0.1) (0.4) Settlement of uncertain tax positions (1.6) — — Balance at end of year $ 4.5 $ 2.9 $ 2.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: Interest Rate Percentage Maturity December 31, 2022 December 31, 2021 (in Millions) SOFR borrowings Base rate borrowings Revolving Credit Facility (1) 6.21% 8.25% 2027 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (3.9) (5.4) Total long-term debt (2) $ 241.9 $ 240.4 ______________________________ 1. As of December 31, 2022 and December 31, 2021, there were $14.9 million and $14.5 million, respectively, in letters of credit outstanding under our Revolving Credit Facility and $485.1 million and $385.5 million available funds as of December 31, 2022 and December 31, 2021, respectively. Fund availability is subject to the Company meeting its debt covenants. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | We recognized the following stock compensation expense for awards under the Livent Plan: Year Ended December 31, (in Millions) 2022 2021 2020 Stock Option Expense, net of taxes of $0.3, $0.3 and $0.2 $ 1.8 $ 1.6 $ 1.1 Restricted Stock Expense, net of taxes of $0.7, $0.6 and $0.5 3.6 2.9 2.6 Performance-Based Restricted Stock Expense, net of taxes of $0.1 0.4 — — Total Stock Compensation Expense, net of taxes of $1.1, $0.9 and $0.7 (1) $ 5.8 $ 4.5 $ 3.7 ____________________ |
Black Scholes Valuation Assumptions for Stock Option Grants | The following table contains Black Scholes valuation assumptions for stock option granted for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Expected dividend yield —% —% —% Expected volatility 28.9% 27.0% 20.2% - 20.7% Expected life (in years) 6.5 6.5 6.5 Risk-free interest rate 1.95% 0.81% 1.20% - 1.73% Valuation date stock price $21.01 Expected volatility 72.99% Risk free rate 1.74% |
Summary of Stock Option Activity | The following table shows stock option activity, for the year ended December 31, 2022: Number of Options Granted But Not Exercised Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price Per Share Aggregate Intrinsic Value (in Millions) Outstanding as of December 31, 2021 2,134,431 6.4 $ 14.37 $ 21.4 Granted 188,036 $ 21.01 Exercised (246,958) $ 12.78 $ 4.9 Forfeited (1,427) $ 21.01 Outstanding as of December 31, 2022 2,074,082 6.1 $ 15.16 $ 10.2 Exercisable as of December 31, 2022 1,059,628 4.5 $ 13.06 $ 7.2 |
Summary of Restricted Award Activity | The following table shows RSU activity for the year ended December 31, 2022: Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2021 716,438 $ 14.03 $ 17.5 Granted 251,814 $ 22.72 Vested (175,766) $ 14.10 Forfeited (3,371) $ 20.77 Nonvested as of December 31, 2022 789,115 $ 16.76 $ 15.7 The following table shows PRSU activity for the year ended December 31, 2022: Performance-Based Restricted Stock Units Number of Weighted-Average Grant Date Fair Value Aggregate Intrinsic Value (in Millions) Nonvested as of December 31, 2021 — $ — $ — Granted 63,327 $ 20.82 Forfeited (481) $ 20.82 Nonvested as of December 31, 2022 62,846 $ 20.82 $ 1.2 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table reflects the changes in Livent's common shares issued and outstanding for each period presented: Issued Treasury Outstanding Balance as of December 31, 2020 146,461,249 (99,268) 146,361,981 RSU awards 270,775 — 270,775 Stock option awards 109,578 — 109,578 Net purchases of treasury stock - deferred compensation plan — (2,350) (2,350) Issuance of common stock 14,950,000 — 14,950,000 Balance as of December 31, 2021 161,791,602 (101,618) 161,689,984 RSU awards 113,565 — 113,565 Stock option awards 246,958 — 246,958 Net purchases of treasury stock - deferred compensation plan — (1,957) (1,957) Issuance of common stock 17,500,000 — 17,500,000 Balance as of December 31, 2022 179,652,125 (103,575) 179,548,550 |
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, 2020 $ (44.4) $ — $ (44.4) Other comprehensive income before reclassifications 1.3 0.3 $ 1.6 Amounts reclassified from accumulated other comprehensive loss — (0.1) (0.1) Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive loss before reclassifications (7.9) (0.9) (8.8) Amounts reclassified from accumulated other comprehensive loss — 0.7 0.7 Accumulated other comprehensive loss, net of tax as of December 31, 2022 $ (51.0) $ — $ (51.0) ______________ 1. See Note 15 for more information. |
Reclassifications of Accumulated Other Comprehensive Income | The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the consolidated statement of operations for each of the periods presented. Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated Statements of Income (in Millions) Year ended December 31, 2022 Year ended December 31, 2021 Derivative instruments Foreign currency contracts $ 0.9 $ (0.1) Costs of sales Total before tax 0.9 (0.1) (0.2) — Provision for income taxes Amount included in net income $ 0.7 $ (0.1) Total reclassifications for the period $ 0.7 $ (0.1) Amount included in net income ____________________ |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | arnings/(loss) applicable to common stock and common stock shares used in the calculation of basic and diluted earnings/(loss) per share are as follows: (in Millions, Except Per Share Data) Year Ended December 31, 2022 2021 2020 Numerator: Net income/(loss) $ 273.5 $ 0.6 $ (16.3) Adjustment for interest on 2025 Notes, net of tax (1) — 0.2 — Net income/(loss) after assumed conversion of 2025 Notes $ 273.5 $ 0.8 $ (16.3) Denominator: Weighted average common shares outstanding - basic 171.8 154.7 146.2 Dilutive share equivalents from share-based plans 1.7 1.5 — Dilutive share equivalents from 2025 Notes 28.1 28.1 — Weighted average common shares outstanding - diluted 201.6 184.3 146.2 Basic earnings/(loss) per common share: Net income/(loss) per weighted average share - basic $ 1.59 $ — $ (0.11) Diluted earnings/(loss) per common share: Net income/(loss) per weighted average share - diluted $ 1.36 $ — $ (0.11) _______________________________ |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents weighted average share equivalents associated with share-based plans and the 2025 Notes that were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. The 2025 Notes are further discussed in Note 11. (in Millions) Year Ended December 31, 2022 2021 2020 Share equivalents from share-based plans — — 0.7 Share equivalents from 2025 Notes — — 14.6 Total antidilutive weighted average share equivalents — — 15.3 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 Instruments Fair Value and Balance Sheet Presentation | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company has open derivative cash flow hedge contracts with a liability position of less than $0.1 million as of December 31, 2022. December 31, 2021 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivatives Foreign exchange contracts $ 0.2 Total derivative assets (1) 0.2 Net derivative assets $ 0.2 _______________________ 1. Net balance is included in “Prepaid and other current assets” in the consolidated balance sheets. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. The Company has open derivative cash flow hedge contracts with a liability position of less than $0.1 million as of December 31, 2022. The Company had no open derivative cash flow hedge contracts as of December 31, 2020. Derivatives in Cash Flow Hedging Relationships (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive loss, net of tax at December 31, 2020 $ — Unrealized hedging gains, net of tax 0.3 Reclassification of deferred hedging gains, net of tax (1) (0.1) Total derivative instrument impact on comprehensive income, net of tax 0.2 Accumulated other comprehensive loss, net of tax at December 31, 2021 $ 0.2 Unrealized hedging losses, net of tax (0.9) Reclassification of deferred hedging gains, net of tax (1) 0.7 Total derivative instrument impact on comprehensive loss, net of tax (0.2) Accumulated other comprehensive loss, net of tax at December 31, 2022 $ — ____________________ 1. Amounts are included in “Cost of sales” on the consolidated statement of operations. |
Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income | Derivatives Not Designated as Cash Flow Hedging Instruments Location of Gain or (Loss) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, (in Millions) 2022 2021 2020 Foreign Exchange contracts Cost of sales $ (5.2) $ (2.4) $ (1.7) Total $ (5.2) $ (2.4) $ (1.7) ____________________ 1. Amounts in the columns represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our consolidated balance sheets as of December 31, 2022 and 2021. (in Millions) December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.1 $ 3.1 $ — $ — Total Assets $ 3.1 $ 3.1 $ — $ — Liabilities Deferred compensation plan obligation (2) $ 5.1 $ 5.1 $ — $ — Total Liabilities (3) $ 5.1 $ 5.1 $ — $ — (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 $ — — Derivatives – Foreign exchange 0.2 — 0.2 — Total Assets $ 3.6 $ 3.4 $ 0.2 $ — Liabilities Deferred compensation plan obligation (2) $ 5.9 $ 5.9 $ — $ — Total Liabilities $ 5.9 $ 5.9 $ — $ — ____________________ 1. Balance is included in "Other assets" in the consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the consolidated balance sheets and carried at historical cost. A mark-to-market gain of $0.5 million and a mark-to-market loss of $0.6 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the consolidated statements of operations for the years ended December 31, 2022 and December 31, 2021, respectively, with a corresponding offset to the deferred compensation plan obligation in the consolidated balance sheets. 2. Balance is included in "Other long-term liabilities" in the consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Disclosures about our leases under ASC 842 are summarized in the table below. Year ended December 31, (in Millions) 2022 2021 2020 Lease Cost Operating lease cost (1) $ 1.3 $ 1.2 $ 2.2 Short-term lease cost (2) 0.4 0.9 0.5 Variable lease cost (1) — 0.1 0.2 Total lease cost (1) $ 1.7 $ 2.2 $ 2.9 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 1.3 $ 1.8 $ 2.1 ____________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our consolidated statements of operations. 2. The year ended December 31, 2021 includes $0.6 million for our corporate headquarters office space sublease with FMC, which terminated in the first quarter of 2021. |
Lessee, Operating Lease, Liability, Maturity | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows 2023 $ 1.1 2024 1.1 2025 1.1 2026 0.5 2027 0.3 Thereafter 1.9 Total future minimum lease payments 6.0 Less: Imputed interest (0.9) Total $ 5.1 |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other liabilities and other long-term liabilities as presented on the consolidated balance sheets: (in Millions) December 31, 2022 2021 Prepaid and other current assets Income tax receivable - refunds and prepayments $ 22.0 $ 17.7 Argentina government receivable (1) 6.7 13.3 Prepaid expenses 11.6 12.2 Other receivables 7.4 2.3 Derivative assets (Note 15) — 0.2 Bank Acceptance Drafts (2) 6.9 — Other current assets 6.5 9.6 Total $ 61.1 $ 55.3 (in Millions) December 31, 2022 2021 Other assets Argentina government receivable (1) $ 80.3 $ 55.8 Advance to contract manufacturers (3) 17.2 16.0 Long-term raw materials inventory 1.6 4.9 Capitalized software, net 1.4 1.5 Other income tax related items 3.7 1.3 Other long-term assets 12.2 11.4 Total $ 116.4 $ 90.9 ____________________ 1. We have various subsidiaries that conduct business within Argentina. At December 31, 2022 and 2021, $40.0 million and $38.4 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, were denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges related to certain contract manufacturing agreements which we amortize over the term of the underlying contract. |
Schedule of Other Liabilities | (in Millions) December 31, 2022 2021 Accrued and other current liabilities Accrued payroll $ 19.8 $ 17.1 Accrued investment in unconsolidated affiliate 0.1 6.2 Restructuring reserves 3.1 3.2 Retirement liability - 401K 2.6 2.5 Environmental reserves, current 0.6 0.5 Severance 0.1 — Other accrued and other current liabilities 11.1 32.3 Total $ 37.4 $ 61.8 (in Millions) December 31, 2022 2021 Other long-term liabilities Deferred compensation plan obligation $ 5.1 $ 5.9 Contingencies related to uncertain tax positions (1) 5.7 2.3 Self insurance reserves 1.5 1.5 Asset retirement obligations 0.2 0.3 Other long-term liabilities 3.4 1.7 Total $ 15.9 $ 11.7 ____________________ 1. As of December 31, 2022, we have recorded a liability for uncertain tax positions of $5.3 million and a $0.4 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
Principal Accounting Policies_4
Principal Accounting Policies and Related Financial Information - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment remediation_site shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 06, 2022 | |
Significant Accounting Policies [Line Items] | ||||
Capitalized interest costs | $ 15.8 | $ 15.4 | $ 12 | |
Asset retirement obligation | $ 0.2 | 0.3 | ||
Number of reportable segments | segment | 1 | |||
Number of environmental remediation sites | remediation_site | 1 | |||
Remediation charges | $ 1.2 | (0.3) | 0.1 | |
Environmental remediation liability | 7 | 6.1 | 6.7 | |
Foreign currency transaction (losses) gains | 7 | (10.3) | (14.2) | |
Other gain | $ 22.2 | $ 0 | 0 | |
Quebec Lithium Partners UK | ||||
Significant Accounting Policies [Line Items] | ||||
Voting interest percentage | 50% | |||
Nemaska Project | ||||
Significant Accounting Policies [Line Items] | ||||
Equity interest percentage | 50% | 25% | 50% | |
Livent Plan | ||||
Significant Accounting Policies [Line Items] | ||||
Common stock, shares authorized (in shares) | shares | 10,683,837 | |||
Patents | ||||
Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets amortization period (in years) | 15 years | |||
Convertible Debt | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalized interest costs | $ 11.6 | $ 11.4 | $ 5.7 | |
Debt interest rate | 4.125% | |||
Convertible Senior Notes Due 2025 | Convertible Debt | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalized interest costs | $ 1.5 | $ 1.2 | ||
Debt interest rate | 4.125% | 4.125% | ||
Land improvements | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 20 years | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Payment term (in days) | 30 days | |||
Minimum | Buildings | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 20 years | |||
Minimum | Machinery and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 3 years | |||
Minimum | Software | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 3 years | |||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Payment term (in days) | 180 days | |||
Maximum | Buildings | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 40 years | |||
Maximum | Machinery and equipment | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 18 years | |||
Maximum | Software | ||||
Significant Accounting Policies [Line Items] | ||||
Useful life (in years) | 10 years |
Revenue Recognition - Revenue B
Revenue Recognition - Revenue By Major Geographical Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 813.2 | $ 420.4 | $ 288.2 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 145.7 | 61.4 | 53.3 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2.9 | 0 | 0.2 |
Europe, Middle East & Africa | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 98.1 | 62.2 | 49.2 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 566.5 | 296.8 | 185.5 |
JAPAN | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 167.6 | 75.1 | 97.7 |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 139.1 | 59.9 | 52.6 |
CHINA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 304.9 | 160 | $ 55.3 |
South Korea | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 43.6 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Contract liability - long-term | $ 198 | $ 0 | $ 198 | |
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract payment term (in days) | 30 days | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract payment term (in days) | 180 days | |||
One Customer | Total Revenue | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 24% | 31% | 26% | |
Ten Largest Customers | Total Revenue | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 63% | 69% | 64% |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue By Major Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 813.2 | $ 420.4 | $ 288.2 |
Lithium Hydroxide | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 415.5 | 208 | 157.5 |
Butyllithium | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 277.7 | 105.4 | 87.1 |
High Purity Lithium Metal and Other Specialty Compounds | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 50.9 | 36.9 | 31.7 |
Lithium Carbonate and Lithium Chloride | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 69.1 | $ 70.1 | $ 11.9 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Receivables from contracts with customers, net of allowances | $ 141.6 | $ 96.4 | ||
Contract liability - short term | 15.5 | 0 | ||
Contract liability - long-term | 198 | 0 | $ 198 | |
Increase in receivables from contracts with customers, net of allowances | 45.2 | |||
Increase contract liability - short-term | 15.5 | 0 | $ 0 | |
Increase contract liability - long-term | $ 198 | $ 0 | $ 0 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jul. 25, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction of performance obligations | 3 years | |
Remaining performance obligation | $ 656.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction of performance obligations | 6 years |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 44.6 | $ 52.2 |
Semi-finished goods | 57.1 | 43.6 |
Raw materials, supplies, and other | 50.6 | 38.8 |
FIFO inventory, net | $ 152.3 | $ 134.6 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 06, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Issuance of common stock - QLP Merger | $ 373.9 | |||
Equity in net loss of unconsolidated affiliates | $ 15.1 | $ 5.5 | $ 0.5 | |
Quebec Lithium Partners UK | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of shares issued in transaction (in shares) | 17,500,000 | |||
Voting interest percentage | 50% | |||
Equity method investments | $ 387.1 | |||
Cash and cash equivalents | 0.3 | |||
Short-term debt | 13.5 | |||
Issuance of common stock - QLP Merger | $ 373.9 | |||
Nemaska Project | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest percentage | 50% | 50% | 25% | |
Equity method investments | $ 437.1 | $ 23.8 | ||
Equity in net loss of unconsolidated affiliates | $ 15.1 | 5.5 | ||
Difference between carrying amount and underlying equity | $ 354.5 | |||
Nemaska Project | Canadian Government | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest percentage | 50% |
Investments - Summarized Financ
Investments - Summarized Financial Information (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | ||||||
Cash and cash equivalents | $ 189 | $ 113 | ||||
Prepaid expenses | 11.6 | 12.2 | ||||
Other current assets | 6.5 | 9.6 | ||||
Total current assets | 544 | 399.3 | ||||
Property, plant and equipment, net of accumulated depreciation of $0.7 in 2022 and $0.6 in 2021 | 968.3 | 677.9 | ||||
Total assets | 2,074.2 | 1,202.5 | ||||
LIABILITIES AND EQUITY | ||||||
Total current liabilities | 148.7 | 131.3 | ||||
Long-term debt | 241.9 | 240.4 | ||||
Asset retirement obligations | 0.2 | 0.3 | ||||
Other long-term liabilities | 15.9 | 11.7 | ||||
Total current and long-term liabilities | 631.2 | 407.1 | ||||
Retained earnings | 334.4 | 60.9 | ||||
Total equity | 1,443 | 795.4 | $ 536.2 | $ 544 | ||
Total liabilities and equity | 2,074.2 | 1,202.5 | ||||
Accumulated depreciation | 253.1 | 243 | ||||
Nemaska Project | ||||||
LIABILITIES AND EQUITY | ||||||
Accumulated depreciation | 0.7 | 0.6 | ||||
Nemaska Project | ||||||
ASSETS | ||||||
Cash and cash equivalents | 5.9 | 10.3 | ||||
Sales tax receivable | 2.5 | 0.4 | ||||
Prepaid expenses | 0.6 | 0.6 | ||||
Other current assets | 0.1 | 0 | ||||
Assets held for sale | 1 | 1.1 | ||||
Total current assets | 10.1 | 12.4 | ||||
In-trust deposits | 8.9 | 7.3 | ||||
Property, plant and equipment, net of accumulated depreciation of $0.7 in 2022 and $0.6 in 2021 | 166.6 | 176.3 | ||||
Intangible assets | 29.5 | 31.9 | ||||
Total non-current assets | 205 | 215.5 | ||||
Total assets | 215.1 | 227.9 | ||||
LIABILITIES AND EQUITY | ||||||
Current portion of long-term debt | 35.7 | 2.7 | ||||
Accounts payable and accrued liabilities | 4.1 | 2.1 | ||||
Current portion of financial liability | 0.5 | 9.5 | ||||
Total current liabilities | 40.3 | 14.3 | ||||
Long-term debt | 0 | 30.5 | ||||
Non-current portion of unsecured obligation | 2.3 | 5.1 | ||||
Asset retirement obligations | 6.9 | 6.4 | ||||
Other long-term liabilities | 0.4 | 0 | ||||
Total non-current liabilities | 9.6 | 42 | ||||
Total current and long-term liabilities | 49.9 | 56.3 | ||||
Share capital | 115 | 71.6 | ||||
Contributed surplus | 24 | 25.8 | ||||
Retained earnings | 26.2 | 74.2 | ||||
Total equity | 165.2 | 171.6 | ||||
Total liabilities and equity | 215.1 | $ 227.9 | ||||
Number of shares issued (in shares) | 60 | 20 | ||||
Proceeds received | $ 70.2 | $ 50.6 | ||||
Nemaska Project | Orion Promissory Note | Senior Notes | ||||||
LIABILITIES AND EQUITY | ||||||
Current portion of long-term debt | $ 33.2 | |||||
Debt interest rate | 8% | |||||
Nemaska Project | Unsecured Obligation | Unsecured Debt | ||||||
LIABILITIES AND EQUITY | ||||||
Current portion of long-term debt | $ 2.5 | |||||
Debt interest rate | 4.75% |
Investments - Statement of Oper
Investments - Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
General and administrative costs | $ 55.2 | $ 49.9 | $ 44.6 |
Income/(loss) from operations before income taxes | 335.4 | 23.9 | (22) |
Income tax benefit | 61.9 | 23.3 | (5.7) |
Net income/(loss) | 273.5 | 0.6 | $ (16.3) |
Nemaska Project | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating costs | 25.7 | 11.5 | |
General and administrative costs | 14.2 | 8 | |
Other costs | 4.3 | 2.5 | |
Income/(loss) from operations before income taxes | (44.2) | (22) | |
Income tax benefit | 0 | (0.2) | |
Net income/(loss) | $ (44.2) | $ (21.8) |
Investments - Cash Flow Informa
Investments - Cash Flow Information (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash provided by operating activities | $ 454.7 | $ 26.4 | $ 6.3 | |||
Cash used in investing activities: | ||||||
Additions to property, plant and equipment | [1] | (336.9) | (131.9) | (124) | ||
Increase in deposit to suppliers | (2.7) | (2) | (1.5) | |||
Cash used in investing activities | (364.7) | (143.3) | (131.1) | |||
Cash (used in)/provided by financing activities: | ||||||
Proceeds from issuance of shares | 3.2 | 1.5 | 0.8 | |||
Cash (used in)/provided by financing activities | (12.5) | 218 | 119.1 | |||
Effect of exchange rate changes on cash and cash equivalents | (1.5) | 0.3 | 0.5 | |||
Increase/(decrease) in cash and cash equivalents | 76 | 101.4 | (5.2) | |||
Cash and cash equivalents, beginning of period | $ 11.6 | 113 | 11.6 | 16.8 | ||
Cash and cash equivalents, end of period | 189 | 113 | 11.6 | |||
Nemaska Project | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash provided by operating activities | (41.6) | (15) | ||||
Cash used in investing activities: | ||||||
Additions to property, plant and equipment | (1.4) | 0 | ||||
Purchases of intangible assets | (0.1) | 0 | ||||
Proceeds from sale of assets | 0 | 0.3 | ||||
Increase in deposit to suppliers | 0 | (0.8) | ||||
Cash used in investing activities | (1.5) | (0.5) | ||||
Cash (used in)/provided by financing activities: | ||||||
Proceeds from issuance of shares | 50.6 | 70.2 | ||||
Repayments of Debt | (8.8) | (50) | ||||
Payment of unsecured obligation | (2.6) | (2.7) | ||||
Cash (used in)/provided by financing activities | 39.2 | 17.5 | ||||
Effect of exchange rate changes on cash and cash equivalents | (0.5) | 0.6 | ||||
Increase/(decrease) in cash and cash equivalents | (4.4) | 2.6 | ||||
Cash and cash equivalents, beginning of period | $ 7.7 | 10.3 | 7.7 | |||
Cash and cash equivalents, end of period | 5.9 | 10.3 | $ 7.7 | |||
Number of shares issued (in shares) | 60 | 20 | ||||
Proceeds received | $ 70.2 | $ 50.6 | ||||
Debt repayment | $ 8.8 | $ 50 | ||||
[1] For the years ended December 31, 2022, 2021, and 2020, $15.8 million , $15.4 million, and $12.0 million of interest was capitalized, respectively. |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 1,221.4 | $ 920.9 | |
Accumulated depreciation | (253.1) | (243) | |
Property, plant and equipment, net | 968.3 | 677.9 | |
Depreciation | 25.1 | 22.9 | $ 22 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 87 | 85.8 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 85.8 | 84.4 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 333.4 | 330.2 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 715.2 | $ 420.5 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring Charges in Consolidated Income (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) site | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Other charges: | |||
Environmental remediation | $ 1.2 | $ (0.3) | $ 0.1 |
Other | 4.5 | 3.9 | 4.4 |
Total restructuring and other charges | $ 7.5 | 3.8 | 10.7 |
Exit costs | 1.6 | ||
Number of environmental remediation sites | site | 1 | ||
Nikolov V. Livent Corp | Pending Litigation | |||
Other charges: | |||
Legal fees accrued | 2 | ||
Severance-related and exit costs | |||
Restructuring charges: | |||
Restructuring charges | $ 1.8 | $ 0.2 | $ 6.2 |
Environmental Obligations - Nar
Environmental Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Environmental Remediation Obligations [Abstract] | |||
Accrual for environmental loss contingencies | $ 7 | $ 6.1 | $ 6.7 |
Loss exposure in excess of accrual | $ 3.5 |
Environmental Obligations - Env
Environmental Obligations - Environmental Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Total environmental reserves, net of recoveries, beginning balance | $ 6.1 | $ 6.7 |
Change in reserves | 1.2 | (0.3) |
Cash payments | (0.3) | (0.3) |
Total environmental reserves, net of recoveries, ending balance | $ 7 | $ 6.1 |
Environmental Obligations - Res
Environmental Obligations - Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Environmental Remediation Obligations [Abstract] | |||
Environmental reserves, current | $ 0.6 | $ 0.5 | |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Accrued and other liabilities | Accrued and other liabilities | |
Environmental reserves, long-term | $ 6.4 | $ 5.6 | |
Total environmental reserves | $ 7 | $ 6.1 | $ 6.7 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Environmental reserves, long-term, Accrued and other liabilities | Environmental reserves, long-term, Accrued and other liabilities |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Income Tax Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 133.2 | $ (15.2) | $ (19.7) |
Foreign | 202.2 | 39.1 | (2.3) |
Income/(loss) from operations before income taxes | $ 335.4 | $ 23.9 | $ (22) |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 43.7 | $ 1.7 | $ (1.9) |
Foreign | 5.6 | 2.6 | 4.6 |
State | 1.3 | 0 | 0 |
Total current | 50.6 | 4.3 | 2.7 |
Deferred: | |||
Federal | (1.9) | 1.3 | (0.9) |
Foreign | 13.3 | 17.7 | (7.4) |
State | (0.1) | 0 | (0.1) |
Total deferred | 11.3 | 19 | (8.4) |
Total | $ 61.9 | $ 23.3 | $ (5.7) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory rate | $ 70.4 | $ 5.1 | $ (4.6) |
Foreign earnings subject to different tax rates | (30) | (1.2) | 0.6 |
Foreign derived intangible income | (2.1) | (0.7) | 0 |
State and local income taxes, less federal income tax benefit | 0.9 | 0 | (0.1) |
Tax on intercompany dividends and deemed dividends for tax purposes | 19.8 | 3.8 | 0.1 |
Changes to unrecognized tax benefits | (0.5) | (0.9) | 2.1 |
Other permanent items | (2.8) | (0.9) | (0.2) |
Change in valuation allowance | (1.7) | 4.4 | 0.3 |
Exchange gains and losses | 6.9 | 12.7 | (5.9) |
Withholding taxes net of credits | 0.6 | 0.8 | 1.1 |
Other | 0.4 | 0.2 | 0.9 |
Total | $ 61.9 | $ 23.3 | $ (5.7) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets, Gross [Abstract] | ||
Environmental and restructuring | $ 0.7 | $ 0.4 |
Net operating loss carry-forwards and credits | 19.2 | 5.7 |
Inventory | 4.5 | 0 |
Other assets and reserves | 8.7 | 7.9 |
Deferred tax assets | 33.1 | 14 |
Valuation allowance, net | (2.8) | (6.4) |
Deferred tax assets, net of valuation allowance | 30.3 | 7.6 |
Property, plant and equipment, net | (17) | (19) |
Deferred inflationary gain | (28.4) | 0 |
Other liabilities | (0.6) | (0.4) |
Deferred tax liabilities | (46) | (19.4) |
Net deferred tax liabilities | $ (15.7) | $ (11.8) |
Income Taxes - Uncertain Income
Income Taxes - Uncertain Income Tax Positions (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) jurisdiction | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 17,600,000 | $ 3,500,000 | |
Operating loss carryforwards, expiring period | 5 years | ||
Number of significant foreign jurisdictions | jurisdiction | 4 | ||
Unrecognized tax benefits | $ 4,500,000 | 2,900,000 | $ 2,700,000 |
Unrecognized tax benefits that would impact effective tax rate | 1,700,000 | 1,000,000 | 1,300,000 |
Interest and penalties recognized | 200,000 | (100,000) | 700,000 |
Interest and penalties accrued | 800,000 | 600,000 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | 2,900,000 | 2,700,000 | 2,400,000 |
Increases related to positions taken in the current year | 3,300,000 | 0 | 700,000 |
Decreases related to positions taken in prior years | 0 | (1,600,000) | 0 |
Increases related to positions taken in prior years | 0 | 1,900,000 | 0 |
Decreases related to lapse of statutes of limitations | (100,000) | (100,000) | (400,000) |
Settlement of uncertain tax positions | (1,600,000) | 0 | 0 |
Balance at end of year | 4,500,000 | $ 2,900,000 | $ 2,700,000 |
Minimum | |||
Income Tax Contingency [Line Items] | |||
Possible decrease in unrecognized tax benefits | 0 | ||
Maximum | |||
Income Tax Contingency [Line Items] | |||
Possible decrease in unrecognized tax benefits | 1,000,000 | ||
TMA Agreement, Indemnification Asset | |||
Income Tax Contingency [Line Items] | |||
Indemnification asset | $ 1,000,000 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Transaction costs - 2025 Notes | $ (3.9) | $ (5.4) |
Total long-term debt | $ 241.9 | 240.4 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Convertible debt, interest rate | 4.125% | |
Long-term debt, gross | $ 245.8 | 245.8 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | 14.9 | 14.5 |
Line of credit, remaining borrowing capacity | 485.1 | 385.5 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 0 |
SOFR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, interest rate | 6.21% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility, interest rate | 8.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||
Oct. 14, 2022 USD ($) | Sep. 01, 2022 USD ($) | Mar. 31, 2023 day | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) day $ / shares shares | Jun. 06, 2022 | Nov. 26, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Net cash proceeds from debt | $ 0 | $ 0 | $ 245,800,000 | |||||
Debt discount | 3,900,000 | 5,400,000 | ||||||
Capitalized interest costs | 15,800,000 | 15,400,000 | 12,000,000 | |||||
Loss on debt extinguishment | $ 100,000 | $ 0 | 100,000 | |||||
Nemaska Project | ||||||||
Debt Instrument [Line Items] | ||||||||
Equity interest percentage | 50% | 25% | 50% | |||||
QLP | Nemaska Project | ||||||||
Debt Instrument [Line Items] | ||||||||
Equity interest percentage | 50% | |||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 4.125% | |||||||
Capitalized interest costs | $ 11,600,000 | $ 11,400,000 | 5,700,000 | |||||
Convertible Debt | Subsequent Event | Forecast | Conversion Circumstance One | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of conversion price | 130% | |||||||
Trading days | day | 20 | |||||||
Consecutive trading days | day | 30 | |||||||
Deferrable Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt interest rate | 8% | |||||||
Deferrable Notes | QLP | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of debt | $ 12,500,000 | |||||||
Prepayment cost | $ 13,500,000 | |||||||
Convertible Senior Notes Due 2025 | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of debt | $ 245,800,000 | |||||||
Debt interest rate | 4.125% | 4.125% | ||||||
Conversion ratio (in shares) | shares | 0.1144885 | |||||||
Initial conversion price per share (in dollars per share) | $ / shares | $ 8.73 | |||||||
Percentage of conversion price | 130% | |||||||
Trading days | day | 20 | |||||||
Consecutive trading days | day | 30 | |||||||
Redemption price, percentage of principal amount | 100% | |||||||
Business day period | day | 5 | |||||||
Consecutive trading day period | day | 5 | |||||||
Trading price as percentage of closing price of common stock | 98% | |||||||
Amortization of discount and transaction costs | $ 1,500,000 | 1,500,000 | ||||||
Capitalized interest costs | 1,500,000 | 1,200,000 | ||||||
Debt discount, excluding amortization | 10,200,000 | $ 10,200,000 | ||||||
Convertible Senior Notes, Over-Allotment Option | Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Net cash proceeds from debt | $ 238,200,000 | |||||||
Payments of debt issuance costs | $ 7,600,000 | |||||||
Revolving Credit Facility | Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Maximum increase in revolving credit commitments | $ 700,000,000 | |||||||
Floor rate | 0% | |||||||
Commitment fee percentage | 0.25% | |||||||
Deferred financing costs | 2,200,000 | |||||||
Loss on debt extinguishment | 100,000 | |||||||
Deferred financing costs | $ 2,800,000 | |||||||
Net leverage ratio | 3.5 | |||||||
Minimum interest coverage ratio | 3.5 | |||||||
Letter of Credit | Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||
SOFR borrowings | Revolving Credit Facility | Credit Agreement | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.10% |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Feb. 23, 2022 $ / shares shares | Dec. 31, 2022 USD ($) publicly_traded_peer $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of publicly traded peers | publicly_traded_peer | 15 | |||
Exercise of stock options | $ 3.2 | $ 1.5 | $ 0.8 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 7.01 | $ 5.86 | $ 2.29 | |
Stock option awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, expiration period (in years) | 10 years | |||
Unrecognized compensation cost related to unvested stock options | $ 2.1 | $ 3 | ||
Requisite service period (in years) | 1 year 7 months 6 days | |||
Exercise of stock options | $ 1.2 | $ 0.4 | ||
RSU awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period (in years) | 1 year 10 months 24 days | |||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 22.72 | $ 20.12 | $ 7.31 | |
Intrinsic value of awards vested | $ 4.7 | $ 5 | $ 1.6 | |
Fair value of awards vested | 2.5 | $ 3.2 | $ 1.7 | |
Unrecognized compensation cost | $ 5.8 | |||
Granted (in dollars per share) | $ / shares | $ 22.72 | |||
Granted (in shares) | shares | 251,814,000 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period (in years) | 1 year 10 months 24 days | |||
Fair value of awards vested | $ 0 | |||
Unrecognized compensation cost | $ 0.9 | |||
Granted (in dollars per share) | $ / shares | $ 20.82 | $ 20.82 | ||
Granted (in shares) | shares | 63,000 | 63,327,000 | ||
Performance period (in years) | 3 years | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 0% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 200% | |||
Livent Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares authorized (in shares) | shares | 10,683,837 | |||
Livent Plan | Stock option awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment award, expiration period (in years) | 10 years |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | $ 5.8 | $ 4.5 | $ 3.7 |
Compensation expense taxes | 1.1 | 0.9 | 0.7 |
Stock option awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 1.8 | 1.6 | 1.1 |
Compensation expense taxes | 0.3 | 0.3 | 0.2 |
RSU awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 3.6 | 2.9 | 2.6 |
Compensation expense taxes | 0.7 | 0.6 | 0.5 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock compensation expense | 0.4 | 0 | 0 |
Compensation expense taxes | 0.1 | ||
Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | 6.8 | $ 5.3 | 4.1 |
Restructuring Charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | $ 0.1 | 0.2 | |
Business Separation Costs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gross stock compensation charges | $ 0.1 |
Stock-based Compensation - Blac
Stock-based Compensation - Black Scholes Assumptions (Details) - Stock option awards | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0% | 0% | 0% |
Expected volatility | 28.90% | 27% | |
Expected volatility rate, minimum | 20.20% | ||
Expected volatility rate, maximum | 20.70% | ||
Expected life (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Risk-free interest rate | 1.95% | 0.81% | |
Risk free interest rate, minimum | 1.20% | ||
Risk free interest rate, maximum | 1.73% |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Options Granted But Not Exercised | ||
Beginning balance (in shares) | 2,134,431 | |
Granted (in shares) | 188,036 | |
Exercised (in shares) | (246,958) | |
Forfeited (in shares) | (1,427) | |
Ending balance (in shares) | 2,074,082 | 2,134,431 |
Exercisable (in shares) | 1,059,628 | |
Weighted-Average Remaining Contractual Life (in Years) | ||
Outstanding | 6 years 1 month 6 days | 6 years 4 months 24 days |
Exercisable | 4 years 6 months | |
Weighted-Average Exercise Price Per Share | ||
Outstanding (in dollars per share) | $ 14.37 | |
Granted (in dollars per share) | 21.01 | |
Exercised (in dollars per share) | 12.78 | |
Forfeited (in dollars per share) | 21.01 | |
Outstanding (in dollars per share) | 15.16 | $ 14.37 |
Exercisable (in dollars per share) | $ 13.06 | |
Aggregate Intrinsic Value (in Millions) | ||
Outstanding | $ 10.2 | $ 21.4 |
Exercised | 4.9 | |
Exercisable | $ 7.2 |
Stock-based Compensation - St_3
Stock-based Compensation - Stock Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Feb. 23, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSU awards | |||
Number of awards | |||
Nonvested, beginning balance (in shares) | 716,438 | ||
Granted (in shares) | 251,814 | ||
Vested (in shares) | (175,766) | ||
Forfeited (in shares) | (3,371) | ||
Nonvested, ending balance (in shares) | 789,115 | ||
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning balance (in dollars per share) | $ 14.03 | ||
Granted (in dollars per share) | 22.72 | ||
Vested (in dollars per share) | 14.10 | ||
Forfeited (in dollars per share) | 20.77 | ||
Nonvested, ending balance (in dollars per share) | $ 16.76 | ||
Aggregate Intrinsic Value (in Millions) | |||
Aggregate intrinsic value | $ 15.7 | $ 17.5 | |
Performance Shares | |||
Number of awards | |||
Nonvested, beginning balance (in shares) | 0 | ||
Granted (in shares) | 63 | 63,327 | |
Forfeited (in shares) | (481) | ||
Nonvested, ending balance (in shares) | 62,846 | ||
Weighted-Average Grant Date Fair Value | |||
Nonvested, beginning balance (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | $ 20.82 | 20.82 | |
Forfeited (in dollars per share) | 20.82 | ||
Nonvested, ending balance (in dollars per share) | $ 20.82 | ||
Aggregate Intrinsic Value (in Millions) | |||
Aggregate intrinsic value | $ 1.2 | $ 0 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value Assumptions (Details) - Performance Shares | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Share price (USD per share) | $ 21.01 |
Expected volatility | 72.99% |
Risk free rate | 1.74% |
Equity - Summary of Common Stoc
Equity - Summary of Common Stock Activity (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Issued | ||
Beginning balance | 161,791,602 | 146,461,249 |
Ending balance | 179,652,125 | 161,791,602 |
Treasury | ||
Beginning balance | (101,618) | (99,268) |
Net purchases of treasury stock - deferred compensation plan | (1,957) | (2,350) |
Ending balance | (103,575) | (101,618) |
Outstanding | ||
Beginning balance | 161,689,984 | 146,361,981 |
Net purchases of treasury stock - deferred compensation plan | (1,957) | (2,350) |
Ending balance | 179,548,550 | 161,689,984 |
Common stock | ||
Issued | ||
Stock issued during period | 17,500,000 | 14,950,000 |
Outstanding | ||
Stock issued during period | 17,500,000 | 14,950,000 |
Livent Plan | RSU awards | ||
Issued | ||
Stock issued during period | 113,565 | 270,775 |
Outstanding | ||
Stock issued during period | 113,565 | 270,775 |
Livent Plan | Stock option awards | ||
Issued | ||
Stock issued during period | 246,958 | 109,578 |
Outstanding | ||
Stock issued during period | 246,958 | 109,578 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Jun. 06, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Dividends paid | $ 0 | $ 0 | $ 0 | ||
Quebec Lithium Partners UK | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction (in shares) | 17,500,000 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Voting interest percentage | 50% |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 795.4 | $ 536.2 |
Other comprehensive loss before reclassifications | (8.8) | 1.6 |
Amounts reclassified from accumulated other comprehensive loss | 0.7 | (0.1) |
Ending balance | 1,443 | 795.4 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (42.9) | (44.4) |
Ending balance | (51) | (42.9) |
Foreign currency adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (43.1) | (44.4) |
Other comprehensive loss before reclassifications | (7.9) | 1.3 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (51) | (43.1) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.2 | 0 |
Other comprehensive loss before reclassifications | (0.9) | 0.3 |
Amounts reclassified from accumulated other comprehensive loss | 0.7 | (0.1) |
Ending balance | $ 0 | $ 0.2 |
Equity - Reclassification Out o
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Costs of sales | $ 417,500,000 | $ 332,000,000 | $ 251,400,000 |
Total before tax | 335,400,000 | 23,900,000 | (22,000,000) |
Provision for income taxes | (61,900,000) | (23,300,000) | 5,700,000 |
Net income/(loss) | 273,500,000 | 600,000 | (16,300,000) |
Maximum | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for income taxes | (100,000) | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income/(loss) | 700,000 | (100,000) | $ 0 |
Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total before tax | 900,000 | (100,000) | |
Provision for income taxes | (200,000) | 0 | |
Net income/(loss) | 700,000 | (100,000) | |
Foreign exchange contracts | Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Costs of sales | $ 900,000 | $ (100,000) |
Earnings_(Loss) Per Share - EPS
Earnings/(Loss) Per Share - EPS Computation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income/(loss) | $ 273.5 | $ 0.6 | $ (16.3) |
Adjustment for interest on 2025 Notes, net of tax | 0 | 0.2 | 0 |
Net income/(loss) after assumed conversion of 2025 Notes | 273.5 | 0.8 | (16.3) |
Net income/(loss) after assumed conversion of 2025 Notes | $ 273.5 | $ 0.8 | $ (16.3) |
Denominator: | |||
Weighted average common shares outstanding - basic (in shares) | 171.8 | 154.7 | 146.2 |
Dilutive share equivalents from share-based plans (in shares) | 1.7 | 1.5 | 0 |
Weighted average common share equivalents (in shares) | 28.1 | 28.1 | 0 |
Weighted average common shares outstanding – diluted (in shares) | 201.6 | 184.3 | 146.2 |
Basic earnings/(loss) per common share: | |||
Net income/(loss) per weighted average share - basic (in dollars per share) | $ 1.59 | $ 0 | $ (0.11) |
Diluted earnings/(loss) per common share: | |||
Net income/(loss) per weighted average share - diluted (in dollars per share) | $ 1.36 | $ 0 | $ (0.11) |
Capitalized interest costs | $ 15.8 | $ 15.4 | $ 12 |
Convertible Debt | |||
Diluted earnings/(loss) per common share: | |||
Capitalized interest costs | $ 11.6 | $ 11.4 | $ 5.7 |
Earnings_(Loss) Per Share - Ant
Earnings/(Loss) Per Share - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 0 | 15.3 |
Share equivalents from share-based plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 0 | 0.7 |
Share equivalents from 2025 Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total antidilutive weighted average share equivalents | 0 | 0 | 14.6 |
Earnings_(Loss) Per Share - Nar
Earnings/(Loss) Per Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 15,300,000 |
Antidilutive securities, exercise price (in dollars per share) | $ 21.01 | ||
Stock option awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 0 | 0 | 1,684,731 |
Antidilutive securities, exercise price (in dollars per share) | $ 13.13 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Debt value | $ 791.8 | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | (5.2) | $ (2.4) | $ (1.7) |
Liabilities fair value disclosure | 5.1 | 5.9 | |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Liabilities fair value disclosure | 0.1 | ||
Foreign exchange contracts | |||
Derivative [Line Items] | |||
AOCI, net | 0.1 | ||
Foreign currency translation, net of tax | 0.1 | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | (5.2) | $ (2.4) | $ (1.7) |
Foreign exchange contracts | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | 34.7 | ||
Foreign exchange contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 62.3 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value of Derivative Instruments (Details) - Designated as Hedging Instrument $ in Millions | Dec. 31, 2022 USD ($) |
Derivative [Line Items] | |
Total derivative assets | $ 0.2 |
Net derivative assets | 0.2 |
Foreign exchange contracts | |
Derivative [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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 795.4 | $ 536.2 | $ 544 |
Unrealized hedging gains (losses), net of tax | (8.8) | 1.6 | |
Reclassification of deferred hedging gains, net of tax | 0.7 | (0.1) | |
Total derivative instrument impact on comprehensive income (loss), net of tax | (8.1) | 1.5 | 3.9 |
Ending balance | 1,443 | 795.4 | 536.2 |
Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0.2 | 0 | |
Unrealized hedging gains (losses), net of tax | (0.9) | 0.3 | |
Reclassification of deferred hedging gains, net of tax | 0.7 | (0.1) | |
Total derivative instrument impact on comprehensive income (loss), net of tax | (0.2) | 0.2 | |
Ending balance | $ 0 | $ 0.2 | $ 0 |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (5.2) | $ (2.4) | $ (1.7) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs of sales | Costs of sales | Costs of sales |
Foreign Exchange contracts | |||
Derivative [Line Items] | |||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (5.2) | $ (2.4) | $ (1.7) |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | ||
Investments in deferred compensation plan | $ 3.1 | $ 3.4 |
Derivatives – Foreign exchange | 0.2 | |
Total Assets | 3.1 | 3.6 |
Liabilities | ||
Deferred compensation plan obligation | 5.1 | 5.9 |
Total Liabilities | 5.1 | 5.9 |
Cash Flow Hedging | Designated as Hedging Instrument | ||
Liabilities | ||
Total Liabilities | 0.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Investments in deferred compensation plan | 3.1 | 3.4 |
Derivatives – Foreign exchange | 0 | |
Total Assets | 3.1 | 3.4 |
Liabilities | ||
Deferred compensation plan obligation | 5.1 | 5.9 |
Total Liabilities | 5.1 | 5.9 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Investments in deferred compensation plan | 0 | 0 |
Derivatives – Foreign exchange | 0.2 | |
Total Assets | 0 | 0.2 |
Liabilities | ||
Deferred compensation plan obligation | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Investments in deferred compensation plan | 0 | 0 |
Derivatives – Foreign exchange | 0 | |
Total Assets | 0 | 0 |
Liabilities | ||
Deferred compensation plan obligation | 0 | 0 |
Total Liabilities | 0 | 0 |
Selling, General and Administrative Expenses | ||
Liabilities | ||
Mark-to-market gain loss | $ 0.5 | $ (0.6) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Feb. 07, 2023 | Dec. 31, 2022 |
Lessor, 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% | |
Export rebate receivable | $ 5.2 | |
Subsequent Event | ||
Lessor, Lease, Description [Line Items] | ||
Export rate, percent of FOB value | 4% | |
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 1 year | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 13 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | $ 1.3 | $ 1.2 | $ 2.2 |
Short-term lease cost | 0.4 | 0.9 | 0.5 |
Variable lease cost | 0 | 0.1 | 0.2 |
Total lease cost | 1.7 | 2.2 | 2.9 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Cash paid for operating leases | 1.3 | 1.8 | 2.1 |
Lessor, Lease, Description [Line Items] | |||
Short-term lease cost | $ 0.4 | 0.9 | $ 0.5 |
Buildings | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Short-term lease cost | 0.6 | ||
Lessor, Lease, Description [Line Items] | |||
Short-term lease cost | $ 0.6 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Undiscounted cash flows | |
2023 | $ 1.1 |
2024 | 1.1 |
2025 | 1.1 |
2026 | 0.5 |
2027 | 0.3 |
Thereafter | 1.9 |
Total future minimum lease payments | 6 |
Less: Imputed interest | (0.9) |
Total | $ 5.1 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid and other current assets | ||
Income tax receivable - refunds and prepayments | $ 22 | $ 17.7 |
Argentina government receivable | 6.7 | 13.3 |
Prepaid expenses | 11.6 | 12.2 |
Other receivables | 7.4 | 2.3 |
Derivative assets (Note 15) | 0 | 0.2 |
Bank Acceptance Drafts | 6.9 | 0 |
Other current assets | 6.5 | 9.6 |
Total | 61.1 | 55.3 |
Other assets | ||
Argentina government receivable | 80.3 | 55.8 |
Advance to contract manufacturers | 17.2 | 16 |
Long-term raw materials inventory | 1.6 | 4.9 |
Capitalized software, net | 1.4 | 1.5 |
Other income tax related items | 3.7 | 1.3 |
Other long-term assets | 12.2 | 11.4 |
Total | 116.4 | 90.9 |
Accrued and other current liabilities | ||
Accrued payroll | 19.8 | 17.1 |
Accrued investment in unconsolidated affiliate | 0.1 | 6.2 |
Restructuring reserves | 3.1 | 3.2 |
Retirement liability - 401K | 2.6 | 2.5 |
Environmental reserves, current | 0.6 | 0.5 |
Severance | 0.1 | 0 |
Other accrued and other current liabilities | 11.1 | 32.3 |
Total | 37.4 | 61.8 |
Other long-term liabilities | ||
Deferred compensation plan obligation | 5.1 | 5.9 |
Contingencies related to uncertain tax positions | 5.7 | 2.3 |
Self insurance reserves | 1.5 | 1.5 |
Asset retirement obligations | 0.2 | 0.3 |
Other long-term liabilities | 3.4 | 1.7 |
Total | 15.9 | 11.7 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 5.3 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 0.4 | |
Argentina Government | ||
Other assets | ||
Export tax and export rebate receivables | $ 40 | $ 38.4 |