Cover page
Cover page | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
Document Transition Report | false |
Entity File Number | 001-38694 |
Entity Registrant Name | LIVENT CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 82-4699376 |
Entity Address, Address Line One | 1818 Market Street |
Entity Address, City or Town | Philadelphia |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 19103 |
City Area Code | 215 |
Local Phone Number | 299-5900 |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | LTHM |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 179,610,299 |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 253.5 | $ 143.5 |
Cost of sales | 87.5 | 83.6 |
Gross margin | 166 | 59.9 |
Selling, general and administrative expenses | 16.3 | 11.8 |
Research and development expenses | 1 | 0.9 |
Restructuring and other charges | 1.9 | 1 |
Separation-related costs | 0 | 0.1 |
Total costs and expenses | 106.7 | 97.4 |
Income from operations before equity in net loss of unconsolidated affiliates and other gain | 146.8 | 46.1 |
Equity in net loss of unconsolidated affiliates | 8.1 | 2.2 |
Other gain | 0 | 14 |
Income from operations before income taxes | 138.7 | 57.9 |
Income tax expense | 23.9 | 4.7 |
Net income | $ 114.8 | $ 53.2 |
Net income per weighted average share - basic (in dollars per share) | $ 0.64 | $ 0.33 |
Net income per weighted average share - diluted (in dollars per share) | $ 0.55 | $ 0.28 |
Weighted average common shares outstanding - basic (in shares) | 179.6 | 161.7 |
Weighted average common shares outstanding - diluted (in shares) | 209.2 | 191.4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 114.8 | $ 53.2 |
Foreign currency adjustments: | ||
Foreign currency translation gain/(loss) arising during the period | 1.5 | (1) |
Total foreign currency translation adjustments | 1.5 | (1) |
Derivative instruments: | ||
Unrealized hedging gains, net of tax of $0.1 and $0.1 | 0.2 | 0.1 |
Total derivative instruments | 0.2 | 0.1 |
Other comprehensive income/(loss), net of tax | 1.7 | (0.9) |
Comprehensive income | $ 116.5 | $ 52.3 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized hedging losses, tax | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 194.1 | $ 189 |
Trade receivables, net of allowance of approximately $0.3 in 2023 and 2022 | 112.9 | 141.6 |
Inventories, net | 184.1 | 152.3 |
Prepaid and other current assets | 67.5 | 61.1 |
Total current assets | 558.6 | 544 |
Investments | 453.3 | 440.3 |
Property, plant and equipment, net of accumulated depreciation of $261.0 in 2023 and $253.1 in 2022 | 1,040 | 968.3 |
Deferred income taxes | 0.7 | 0.4 |
Right of use assets - operating leases, net | 5.5 | 4.8 |
Other assets | 122.2 | 116.4 |
Total assets | 2,180.3 | 2,074.2 |
Current liabilities | ||
Accounts payable, trade and other | 64.7 | 81.7 |
Accrued and other current liabilities | 36.2 | 37.4 |
Contract liability - short-term | 2.5 | 15.5 |
Operating lease liabilities - current | 1.1 | 0.9 |
Income taxes | 27.6 | 13.2 |
Total current liabilities | 132.1 | 148.7 |
Long-term debt | 242.3 | 241.9 |
Operating lease liabilities - long-term | 4.5 | 4.2 |
Environmental liabilities | 6.5 | 6.4 |
Deferred income taxes | 17.8 | 16.1 |
Contract liability - long-term | 198 | 198 |
Other long-term liabilities | 18.1 | 15.9 |
Commitments and contingent liabilities (Note 13) | 0 | 0 |
Total current and long-term liabilities | 619.3 | 631.2 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 179,715,772 and 179,652,125 shares issued; 179,610,299 and 179,548,550 outstanding as of March 31, 2023 and December 31, 2022, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 1,161.9 | 1,160.4 |
Retained earnings | 449.2 | 334.4 |
Accumulated other comprehensive loss | (49.3) | (51) |
Treasury stock, at cost; 105,473 and 103,575 shares as of March 31, 2023 and December 31, 2022, respectively | (0.9) | (0.9) |
Total equity | 1,561 | 1,443 |
Total liabilities and equity | $ 2,180.3 | $ 2,074.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Allowance for trade receivables | $ 0.3 | $ 0.3 |
Accumulated depreciation | $ 261 | $ 253.1 |
Equity | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 179,715,772 | 179,652,125 |
Common stock, outstanding (in shares) | 179,610,299 | 179,548,550 |
Treasury stock, shares (in shares) | (105,473) | (103,575) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Cash provided by operating activities: | |||
Net income | $ 114.8 | $ 53.2 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 6.8 | 6.4 | |
Restructuring and other charges | 0.6 | 0.8 | |
Deferred income taxes | 1.4 | 0.8 | |
Share-based compensation | 1.9 | 1.6 | |
Change in investments in trust fund securities | 0.2 | 0.2 | |
Equity in net loss of unconsolidated affiliate | 8.1 | 2.2 | |
Other gain, Blue Chip Swap | 0 | (14) | |
Other non-cash adjustments | (0.4) | (0.2) | |
Changes in operating assets and liabilities: | |||
Trade receivables, net | 30.3 | (9.3) | |
Inventories | (31) | (16.5) | |
Accounts payable, trade and other | (17.8) | (3.2) | |
Changes in deferred compensation | 0.9 | 0.7 | |
Contract liability - short-term | (13) | 0.7 | |
Income taxes | 14.3 | (0.1) | |
Change in prepaid and other current assets and other assets | (8.3) | 5.1 | |
Change in accrued and other current liabilities and other long-term liabilities | (5.9) | (17.6) | |
Cash provided by operating activities | 102.9 | 10.8 | |
Cash used in investing activities: | |||
Capital expenditures | [1] | (73.5) | (68.7) |
Investments in Livent NQSP securities | (0.7) | (0.7) | |
Proceeds from Blue Chip Swap, net of purchases | 0 | 14 | |
Investment in unconsolidated affiliate | (20.2) | 0 | |
Other investing activities | (3.7) | 0 | |
Cash used in investing activities | (98.1) | (55.4) | |
Cash (used in)/provided by financing activities: | |||
Other financing activities | (0.1) | 0.1 | |
Cash (used in)/provided by financing activities | (0.1) | 0.1 | |
Effect of exchange rate changes on cash and cash equivalents | 0.4 | 0 | |
Increase/(decrease) in cash and cash equivalents | 5.1 | (44.5) | |
Cash and cash equivalents, beginning of period | 189 | 113 | |
Cash and cash equivalents, end of period | 194.1 | 68.5 | |
Supplemental Disclosure for Cash Flow: | |||
Cash payments for income taxes, net of refunds | 1.9 | 2.4 | |
Cash payments for interest | [1] | 5.5 | 5.5 |
Cash payments for Restructuring and other charges | 1.3 | 0.2 | |
Cash payments for Separation-related charges | 0 | 0.4 | |
Accrued capital expenditures | 15.3 | 29 | |
Accrued investment in unconsolidated affiliate | 0 | 8 | |
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | $ 1.2 | $ 0 | |
[1] For the three months ended March 31, 2023 and 2022, $3.9 million and $4.0 million of interest expense was capitalized, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Interest expense capitalized | $ 3.9 | $ 4 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Common Stock, $0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance at Dec. 31, 2021 | $ 795.4 | $ 0.1 | $ 778.1 | $ 60.9 | $ (42.9) | $ (0.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 53.2 | 53.2 | ||||
Stock compensation plans | 1.7 | 1.7 | ||||
Exercise of stock options | 0.1 | 0.1 | ||||
Shares withheld for taxes - common stock issuances | (0.5) | (0.5) | ||||
Net hedging gains, net of income tax | 0.1 | 0.1 | ||||
Foreign currency translation adjustments | (1) | (1) | ||||
Ending balance at Mar. 31, 2022 | 849 | 0.1 | 779.4 | 114.1 | (43.8) | (0.8) |
Beginning balance at Dec. 31, 2022 | 1,443 | 0.1 | 1,160.4 | 334.4 | (51) | (0.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 114.8 | 114.8 | ||||
Stock compensation plans | 1.9 | 1.9 | ||||
Exercise of stock options | 0.1 | 0.1 | ||||
Shares withheld for taxes - common stock issuances | (0.5) | (0.5) | ||||
Net hedging gains, net of income tax | 0.2 | 0.2 | ||||
Foreign currency translation adjustments | 1.5 | 1.5 | ||||
Ending balance at Mar. 31, 2023 | $ 1,561 | $ 0.1 | $ 1,161.9 | $ 449.2 | $ (49.3) | $ (0.9) |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations Livent Corporation ("Livent", "we", "us", "Company" or "our") manufactures a wide range of lithium products, which are used primarily in lithium-based batteries, specialty polymers and chemical synthesis applications. We serve a diverse group of markets. A major growth driver for lithium in the future will be the increasing adoption of electric vehicles ("EVs") and other energy storage applications. |
Principal Accounting Policies a
Principal Accounting Policies and Related Financial Information | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principal Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our condensed consolidated financial position as of March 31, 2023 and December 31, 2022, the condensed consolidated results of operations, the condensed consolidated statement of comprehensive income and the condensed consolidated statement of changes in equity for the three months ended March 31, 2023 and 2022, and the condensed consolidated cash flows for the three months ended March 31, 2023 and 2022. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These statements, therefore, should be read in conjunction with the annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the "2022 Annual Report on Form 10-K"). |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items See Note 3 to our consolidated financial statements in Part II, Item 8 of our 2022 Annual Report on Form 10-K for more information. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas (based on product destination) and by product categories. The following table provides information about disaggregated revenue by major geographical region: (in Millions) Three Months Ended March 31, 2023 2022 North America (1) $ 51.9 $ 21.3 Latin America 1.8 — Europe, Middle East & Africa 32.8 14.7 Asia Pacific (1) 167.0 107.5 Consolidated Revenue $ 253.5 $ 143.5 1. During the three months ended March 31, 2023, countries with sales in excess of 10% of consolidated revenue consisted of China, the U.S., South Korea, and Japan. Sales for the three months ended March 31, 2023 for China, the U.S., South Korea, and Japan totaled $88.4 million, $50.2 million, $35.1 million, and $33.4 million, respectively. During the three months ended March 31, 2022, countries with sales in excess of 10% of consolidated revenue consisted of China, Japan, and the U.S. Sales for the three months ended March 31, 2022 for China, Japan, and the U.S. totaled $59.1 million, $30.6 million, and $20.8 million, respectively. For the three months ended March 31, 2023, two customers accounted for approximately 25% and 19%, respectively, of consolidated revenue and our 10 largest customers accounted in aggregate for approximately 68% of consolidated revenue. For the three months ended March 31, 2022, one customer accounted for approximately 26% of consolidated revenue and our 10 largest customers accounted in aggregate for approximately 69% of consolidated revenue. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category: (in Millions) Three Months Ended March 31, 2023 2022 Lithium Hydroxide $ 152.7 $ 67.5 Butyllithium 76.3 33.7 High Purity Lithium Metal and Other Specialty Compounds 15.0 13.4 Lithium Carbonate and Lithium Chloride 9.5 28.9 Consolidated Revenue $ 253.5 $ 143.5 Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. The following table presents the opening and closing balances of our contract liabilities and current trade receivables, net of allowances from contracts with customers. (in Millions) Balance as of March 31, 2023 Balance as of December 31, 2022 Increase Receivables from contracts with customers, net of allowances $ 112.9 $ 141.6 $ (28.7) Contract liability - short-term 2.5 15.5 (13.0) Contract liability - long-term 198.0 198.0 — Performance obligations |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: (in Millions) March 31, 2023 December 31, 2022 Finished goods $ 49.8 $ 44.6 Semi-finished goods 100.7 57.1 Raw materials, supplies, and other 33.6 50.6 Inventories, net $ 184.1 $ 152.3 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
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 EV and other 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. The Company accounts for the investment in Nemaska Lithium as an equity method investment on a one-quarter lag basis and it is included in Investments in our condensed consolidated balance sheets. For the three months ended March 31, 2023 and 2022, we recorded a $8.1 million and 2.2 million loss, respectively, related to our equity interest in Nemaska Lithium to Equity in net loss of unconsolidated affiliate in our condensed consolidated statement of operations. The carrying amount of our equity interest in Nemaska Lithium was $449.3 million and $437.1 million as of March 31, 2023 and December 31, 2022 |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2023 2022 Restructuring charges: Severance-related and exit costs $ 1.7 $ 0.5 Other charges: Environmental remediation 0.1 0.1 Other 0.1 0.4 Total Restructuring and other charges $ 1.9 $ 1.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our interim tax provision using an estimated annual effective tax rate methodology ("EAETR") in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Long-term debt consists of the following: Interest Rate Percentage Maturity March 31, 2023 December 31, 2022 (in Millions) SOFR borrowings Base rate borrowings Revolving Credit Facility (1) 6.65% 8.75% 2027 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (3.5) (3.9) Total long-term debt (2) $ 242.3 $ 241.9 ______________________________ 1. As of March 31, 2023 and December 31, 2022, there were $14.9 million in letters of credit outstanding under our Revolving Credit Facility and $485.1 million available funds as of March 31, 2023 and December 31, 2022. Fund availability is subject to the Company meeting its debt covenants. 2. As of March 31, 2023 and December 31, 2022, the Company had no debt maturing within one year. 4.125% Convertible Senior Notes due 2025 In the second 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, March 31, 2023 was greater than or equal to 130% of the conversion price on each trading day, and as a result, the holders have the option to convert all or any portion of their 2025 Notes through June 30, 2023. The 2025 Notes are classified as long-term debt. The Company recognized non-cash interest related to the amortization of transaction costs of $0.4 million, all of which was capitalized, for the three months ended March 31, 2023. The Company recorded $2.5 million of accrued interest expense related to the principal amount for the three months ended March 31, 2023, all of which was capitalized. Covenants The Credit Agreement contains certain affirmative and negative covenants that are binding on us and our subsidiary, Livent USA Corp., as borrowers (the "Borrowers") and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain restrictive agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our maximum allowable first lien leverage ratio is 3.5 as of March 31, 2023. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants as of March 31, 2023. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | Equity As of March 31, 2023 and December 31, 2022, we had 2 billion shares of common stock authorized. The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2022 179,652,125 (103,575) 179,548,550 RSU awards 53,374 — 53,374 Stock option awards 10,273 — 10,273 Purchases of treasury stock - NQSP — (1,898) (1,898) Balance as of March 31, 2023 179,715,772 (105,473) 179,610,299 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 Total Accumulated other comprehensive loss, net of tax as of December 31, 2022 $ (51.0) $ — $ (51.0) Other comprehensive losses before reclassifications 1.5 0.2 1.7 Accumulated other comprehensive loss, net of tax as of March 31, 2023 $ (49.5) $ 0.2 $ (49.3) (in Millions) Foreign currency adjustments Derivative Instruments Total Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive loss before reclassifications (1.0) 0.1 (0.9) Accumulated other comprehensive loss, net of tax as of March 31, 2022 $ (44.1) $ 0.3 $ (43.8) Reclassifications of accumulated other comprehensive loss Hedging losses reclassified from accumulated other comprehensive loss for each of the three month periods ended March 31, 2023 and 2022 were less than $0.1 million. Dividends |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per common share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options, restricted stock units, performance restricted stock units and 2025 Notes. See Note 12 to our consolidated financial statements in Part II, Item 8 of our 2022 Annual Report on Form 10-K for more information. Diluted earnings per share ("Diluted EPS") considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. We use the if-converted method when calculating the potential dilutive effect, if any, of our 2025 Notes. Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2023 2022 Numerator: Net income $ 114.8 $ 53.2 Denominator: Weighted average common shares outstanding - basic 179.6 161.7 Dilutive share equivalents from share-based plans 1.5 1.6 Dilutive share equivalents from 2025 Notes 28.1 28.1 Weighted average common shares outstanding - diluted 209.2 191.4 Basic earnings per common share: Net income per weighted average share - basic $ 0.64 $ 0.33 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.55 $ 0.28 Anti-dilutive stock options For the three months ended March 31, 2023, options to purchase 182,109 shares of our common stock at an average exercise price of $23.33 per share were anti-dilutive and not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common stock for the three months ended March 31, 2023. For the three months ended March 31, 2022, none of the outstanding options to purchase shares of our common stock were anti-dilutive. |
Financial Instruments, Risk Man
Financial Instruments, Risk Management and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instrument, Risk Management and Fair Value Measurements | Financial Instruments, Risk Management and Fair Value Measurements Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, derivatives and amounts included in accruals meeting the definition of financial instruments. Investments in the Livent NQSP deferred compensation plan trust fund are considered Level 1 investments based on readily available quoted prices in active markets for identical assets. The carrying value of cash and cash equivalents, trade receivables, other current assets, and trade payables approximates their fair value due to their short term nature 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 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 $675.8 million and $242.3 million, respectively, as of March 31, 2023. Our 2025 Notes are classified as Level 2 in the fair value hierarchy. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in accumulated other comprehensive loss ("AOCL") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of March 31, 2023, we had open foreign currency forward contracts in AOCL in a net after-tax gain position of $0.2 million designated as cash flow hedges of underlying forecasted sales and purchases. As of March 31, 2023 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $32.4 million. A net after-tax gain of $0.2 million, representing open foreign currency exchange contracts, will be realized in earnings during the year ending December 31, 2023 if spot rates in the future are consistent with market rates as of March 31, 2023. 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” line in the condensed consolidated statements of operations. Derivatives Not Designated As Cash Flow Hedging Instruments We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments and changes in the fair value of these items are recorded in earnings. We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $112.2 million as of March 31, 2023. 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. March 31, 2023 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivative assets Foreign exchange contracts $ 0.3 Total derivative assets (1) 0.3 Net derivative assets $ 0.3 Derivatives in Cash Flow Hedging Relationships The following tables summarize the gains related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of December 31, 2022 $ — Unrealized hedging gains, net of tax 0.2 Total derivatives instruments impact on comprehensive income, net of tax 0.2 Accumulated other comprehensive income, net of tax as of March 31, 2023 $ 0.2 (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of December 31, 2021 $ 0.2 Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax 0.1 Accumulated other comprehensive income, net of tax as of March 31, 2022 $ 0.3 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) Three Months Ended March 31, (in Millions) 2023 2022 Foreign Exchange contracts Cost of sales (2) $ 2.1 $ (1.6) Total $ 2.1 $ (1.6) ____________________ 1. Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 2. A gain of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the condensed consolidated statement of operations for the three months ended March 31, 2023. A loss of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the condensed consolidated statement of operations for the three months ended March 31, 2022. Fair Value Measurements Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.9 $ 3.9 $ — $ — Derivatives – Foreign exchange 0.3 — 0.3 — Total Assets $ 4.2 $ 3.9 $ 0.3 $ — Liabilities Deferred compensation plan obligation (2) $ 6.2 $ 6.2 $ — $ — Total Liabilities $ 6.2 $ 6.2 $ — $ — (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 $ 5.1 $ 5.1 $ — $ — ____________________ 1. Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.2 million was recorded for each of the three month periods ended March 31, 2023 and 2022 , related to the Livent common stock. The mark-to-market losses were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies We are a party to various legal proceedings, certain of these matters are discussed below. Livent records liabilities for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred. In addition to the legal proceedings noted below, we have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity. Argentine Customs & Tax Authority Matters Minera del Altiplano SA, our subsidiary in Argentina ("MdA"), has received notices from the Argentine Customs Authorities that they are conducting customs audits in Salta (for 2015 to 2019, 2021 and 2022), Rosario (for 2016 and 2017), Buenos Aires and Ezeiza (for 2018, 2019, 2021 and 2022) regarding the export of Lithium Carbonate by MdA from each of those locations. MdA was also notified from the Argentine Tax Authority of the start of transfer pricing audits for the periods 2017 and 2018. During a part of this period, MdA was a subsidiary of FMC. However, the Company agreed to bear any possible liability for these types of matters under the terms of the Tax Matters Agreement that it entered into with FMC in connection with the Separation. A range of reasonably possible liabilities, if any, cannot be currently estimated by the Company. Leases All of our leases are operating leases as of March 31, 2023 and December 31, 2022. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of three Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2023 2022 Lease Cost Operating lease cost $ 0.3 $ 0.4 Short-term lease cost 0.1 0.1 Total lease cost (1) $ 0.4 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.3 $ 0.4 __________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. As of March 31, 2023, our operating leases had a weighted average remaining lease term of 7.3 years and a weighted average discount rate of 5.2%. The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows Remainder of 2023 $ 1.0 2024 1.4 2025 1.4 2026 0.6 2027 0.3 Thereafter 2.0 Total future minimum lease payments 6.7 Less: Imputed interest (1.1) Total $ 5.6 |
Supplemental Information
Supplemental Information | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2023 December 31, 2022 Prepaid and other current assets Tax related items $ 18.7 $ 22.0 Prepaid expenses 10.1 11.6 Argentina government receivable (1) 7.2 6.7 Other receivables 5.7 7.4 Bank Acceptance Drafts (2) 18.8 6.9 Derivative assets (Note 12) 0.3 — Other current assets 6.7 6.5 Total $ 67.5 $ 61.1 (in Millions) March 31, 2023 December 31, 2022 Other assets Argentina government receivable (1) $ 81.7 $ 80.3 Advance to contract manufacturers (3) 20.2 17.2 Long-term raw materials inventory 1.6 1.6 Tax related items 3.9 3.7 Capitalized software, net 1.4 1.4 Other assets 13.4 12.2 Total $ 122.2 $ 116.4 _________________ 1. We conduct business in Argentina. As of March 31, 2023 and December 31, 2022, $39.7 million and $40.0 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances, we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. (in Millions) March 31, 2023 December 31, 2022 Accrued and other current liabilities Accrued payroll $ 13.2 $ 19.8 Restructuring reserves 2.9 3.1 Retirement liability - 401k 0.7 2.6 Environmental reserves, current 0.6 0.6 Severance — 0.1 Other accrued and other current liabilities (1) 18.8 11.2 Total $ 36.2 $ 37.4 (in Millions) March 31, 2023 December 31, 2022 Other long-term liabilities Deferred compensation plan obligation $ 6.2 $ 5.1 Contingencies related to uncertain tax positions (2) 6.1 5.7 Self-insurance reserves 1.5 1.5 Asset retirement obligations 0.2 0.2 Other long-term liabilities 4.1 3.4 Total $ 18.1 $ 15.9 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of March 31, 2023, we have recorded a liability for uncertain tax positions of $5.7 million and a $0.4 million indemnification liability where the offsetting uncertain tax position is with FMC, per the tax matters agreement. |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principal Accounting Policies and Related Financial Information | The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. |
Performance obligations | Performance obligationsOccasionally, 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 is approximately $1.8 billion in the next six years. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer. However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table provides information about disaggregated revenue by major geographical region: (in Millions) Three Months Ended March 31, 2023 2022 North America (1) $ 51.9 $ 21.3 Latin America 1.8 — Europe, Middle East & Africa 32.8 14.7 Asia Pacific (1) 167.0 107.5 Consolidated Revenue $ 253.5 $ 143.5 1. During the three months ended March 31, 2023, countries with sales in excess of 10% of consolidated revenue consisted of China, the U.S., South Korea, and Japan. Sales for the three months ended March 31, 2023 for China, the U.S., South Korea, and Japan totaled $88.4 million, $50.2 million, $35.1 million, and $33.4 million, respectively. During the three months ended March 31, 2022, countries with sales in excess of 10% of consolidated revenue consisted of China, Japan, and the U.S. Sales for the three months ended March 31, 2022 for China, Japan, and the U.S. totaled $59.1 million, $30.6 million, and $20.8 million, respectively. The following table provides information about disaggregated revenue by major product category: (in Millions) Three Months Ended March 31, 2023 2022 Lithium Hydroxide $ 152.7 $ 67.5 Butyllithium 76.3 33.7 High Purity Lithium Metal and Other Specialty Compounds 15.0 13.4 Lithium Carbonate and Lithium Chloride 9.5 28.9 Consolidated Revenue $ 253.5 $ 143.5 |
Schedule of Receivables and Contract Liabilities | The following table presents the opening and closing balances of our contract liabilities and current trade receivables, net of allowances from contracts with customers. (in Millions) Balance as of March 31, 2023 Balance as of December 31, 2022 Increase Receivables from contracts with customers, net of allowances $ 112.9 $ 141.6 $ (28.7) Contract liability - short-term 2.5 15.5 (13.0) Contract liability - long-term 198.0 198.0 — |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in Millions) March 31, 2023 December 31, 2022 Finished goods $ 49.8 $ 44.6 Semi-finished goods 100.7 57.1 Raw materials, supplies, and other 33.6 50.6 Inventories, net $ 184.1 $ 152.3 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges and Asset Disposals | The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations: Three Months Ended March 31, (in Millions) 2023 2022 Restructuring charges: Severance-related and exit costs $ 1.7 $ 0.5 Other charges: Environmental remediation 0.1 0.1 Other 0.1 0.4 Total Restructuring and other charges $ 1.9 $ 1.0 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: Interest Rate Percentage Maturity March 31, 2023 December 31, 2022 (in Millions) SOFR borrowings Base rate borrowings Revolving Credit Facility (1) 6.65% 8.75% 2027 $ — $ — 4.125% Convertible Senior Notes due 2025 4.125% 2025 245.8 245.8 Transaction costs - 2025 Notes (3.5) (3.9) Total long-term debt (2) $ 242.3 $ 241.9 ______________________________ 1. As of March 31, 2023 and December 31, 2022, there were $14.9 million in letters of credit outstanding under our Revolving Credit Facility and $485.1 million available funds as of March 31, 2023 and December 31, 2022. Fund availability is subject to the Company meeting its debt covenants. |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Issued and Outstanding | The following is a summary of Livent's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2022 179,652,125 (103,575) 179,548,550 RSU awards 53,374 — 53,374 Stock option awards 10,273 — 10,273 Purchases of treasury stock - NQSP — (1,898) (1,898) Balance as of March 31, 2023 179,715,772 (105,473) 179,610,299 |
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 Total Accumulated other comprehensive loss, net of tax as of December 31, 2022 $ (51.0) $ — $ (51.0) Other comprehensive losses before reclassifications 1.5 0.2 1.7 Accumulated other comprehensive loss, net of tax as of March 31, 2023 $ (49.5) $ 0.2 $ (49.3) (in Millions) Foreign currency adjustments Derivative Instruments Total Accumulated other comprehensive loss, net of tax as of December 31, 2021 $ (43.1) $ 0.2 $ (42.9) Other comprehensive loss before reclassifications (1.0) 0.1 (0.9) Accumulated other comprehensive loss, net of tax as of March 31, 2022 $ (44.1) $ 0.3 $ (43.8) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows: (in Millions, Except Share and Per Share Data) Three Months Ended March 31, 2023 2022 Numerator: Net income $ 114.8 $ 53.2 Denominator: Weighted average common shares outstanding - basic 179.6 161.7 Dilutive share equivalents from share-based plans 1.5 1.6 Dilutive share equivalents from 2025 Notes 28.1 28.1 Weighted average common shares outstanding - diluted 209.2 191.4 Basic earnings per common share: Net income per weighted average share - basic $ 0.64 $ 0.33 Diluted earnings per common share: Net income per weighted average share - diluted $ 0.55 $ 0.28 |
Financial Instruments, Risk M_2
Financial Instruments, Risk Management and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Financial Instrument Valuation Methods | Our other financial instruments include the following: Financial Instrument Valuation Method Foreign exchange forward contracts Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. |
Schedule of Derivative Assets at Fair Value | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company has open derivative cash flow hedge contracts with a liability position of less than $0.1 million as of December 31, 2022. March 31, 2023 Gross Amount of Derivatives (in Millions) Designated as Cash Flow Hedges Derivative assets Foreign exchange contracts $ 0.3 Total derivative assets (1) 0.3 Net derivative assets $ 0.3 |
Schedule of Derivatives in Cash Flow Hedging Relationships | The following tables summarize the gains related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of December 31, 2022 $ — Unrealized hedging gains, net of tax 0.2 Total derivatives instruments impact on comprehensive income, net of tax 0.2 Accumulated other comprehensive income, net of tax as of March 31, 2023 $ 0.2 (in Millions) Total Foreign Exchange Contracts Accumulated other comprehensive income, net of tax as of December 31, 2021 $ 0.2 Unrealized hedging gains, net of tax 0.1 Total derivatives instruments impact on comprehensive income, net of tax 0.1 Accumulated other comprehensive income, net of tax as of March 31, 2022 $ 0.3 |
Schedule of Derivatives Not Designated as Hedging Instruments | Location of Gain or (Loss) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives (1) Three Months Ended March 31, (in Millions) 2023 2022 Foreign Exchange contracts Cost of sales (2) $ 2.1 $ (1.6) Total $ 2.1 $ (1.6) ____________________ 1. Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 2. A gain of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the condensed consolidated statement of operations for the three months ended March 31, 2023. A loss of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the condensed consolidated statement of operations for the three months ended March 31, 2022. |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets. (in Millions) March 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Investments in deferred compensation plan (1) $ 3.9 $ 3.9 $ — $ — Derivatives – Foreign exchange 0.3 — 0.3 — Total Assets $ 4.2 $ 3.9 $ 0.3 $ — Liabilities Deferred compensation plan obligation (2) $ 6.2 $ 6.2 $ — $ — Total Liabilities $ 6.2 $ 6.2 $ — $ — (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 $ 5.1 $ 5.1 $ — $ — ____________________ 1. Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.2 million was recorded for each of the three month periods ended March 31, 2023 and 2022 , related to the Livent common stock. The mark-to-market losses were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. 2. Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost and Terms | Quantitative disclosures about our leases are summarized in the table below. Three Months Ended March 31, (in Millions, except for weighted-average amounts) 2023 2022 Lease Cost Operating lease cost $ 0.3 $ 0.4 Short-term lease cost 0.1 0.1 Total lease cost (1) $ 0.4 $ 0.5 Other information Cash paid for amounts included in the measurement of lease liabilities: Cash paid for operating leases $ 0.3 $ 0.4 __________________________ 1. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. |
Schedule of Maturity of Operating Lease Liabilities | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years. (in Millions) Undiscounted cash flows Remainder of 2023 $ 1.0 2024 1.4 2025 1.4 2026 0.6 2027 0.3 Thereafter 2.0 Total future minimum lease payments 6.7 Less: Imputed interest (1.1) Total $ 5.6 |
Supplemental Information (Table
Supplemental Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid and Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets: (in Millions) March 31, 2023 December 31, 2022 Prepaid and other current assets Tax related items $ 18.7 $ 22.0 Prepaid expenses 10.1 11.6 Argentina government receivable (1) 7.2 6.7 Other receivables 5.7 7.4 Bank Acceptance Drafts (2) 18.8 6.9 Derivative assets (Note 12) 0.3 — Other current assets 6.7 6.5 Total $ 67.5 $ 61.1 (in Millions) March 31, 2023 December 31, 2022 Other assets Argentina government receivable (1) $ 81.7 $ 80.3 Advance to contract manufacturers (3) 20.2 17.2 Long-term raw materials inventory 1.6 1.6 Tax related items 3.9 3.7 Capitalized software, net 1.4 1.4 Other assets 13.4 12.2 Total $ 122.2 $ 116.4 _________________ 1. We conduct business in Argentina. As of March 31, 2023 and December 31, 2022, $39.7 million and $40.0 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances, we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. 2. Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. 3. We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. |
Schedule of Accrued and Other Liabilities | (in Millions) March 31, 2023 December 31, 2022 Accrued and other current liabilities Accrued payroll $ 13.2 $ 19.8 Restructuring reserves 2.9 3.1 Retirement liability - 401k 0.7 2.6 Environmental reserves, current 0.6 0.6 Severance — 0.1 Other accrued and other current liabilities (1) 18.8 11.2 Total $ 36.2 $ 37.4 (in Millions) March 31, 2023 December 31, 2022 Other long-term liabilities Deferred compensation plan obligation $ 6.2 $ 5.1 Contingencies related to uncertain tax positions (2) 6.1 5.7 Self-insurance reserves 1.5 1.5 Asset retirement obligations 0.2 0.2 Other long-term liabilities 4.1 3.4 Total $ 18.1 $ 15.9 ____________________ 1. Amounts p rimarily include accrued capital expenditures related to our expansion projects. 2. As of March 31, 2023, we have recorded a liability for uncertain tax positions of $5.7 million and a $0.4 million indemnification liability where the offsetting uncertain tax position is with FMC, per the tax matters agreement. |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | $ 253.5 | $ 143.5 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 51.9 | 21.3 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 1.8 | 0 |
Europe, Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 32.8 | 14.7 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 167 | 107.5 |
South Korea | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 35.1 | |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 33.4 | 30.6 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 50.2 | 20.8 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | $ 88.4 | $ 59.1 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Customer One | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 25% | 26% |
Customer Two | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 19% | |
Ten Largest Customers | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 68% | 69% |
Revenue Recognition - Disaggr_2
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | $ 253.5 | $ 143.5 |
Lithium Hydroxide | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 152.7 | 67.5 |
Butyllithium | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 76.3 | 33.7 |
High Purity Lithium Metal and Other Specialty Compounds | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | 15 | 13.4 |
Lithium Carbonate and Lithium Chloride | ||
Disaggregation of Revenue [Line Items] | ||
Consolidated Revenue | $ 9.5 | $ 28.9 |
Revenue Recognition - Assets an
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Receivables from contracts with customers, net of allowances | $ 112.9 | $ 141.6 | |
Contract liability - short-term | 2.5 | 15.5 | |
Contract liability - long-term | 198 | $ 198 | |
Increase in receivables from contracts with customers, net of allowances | (28.7) | ||
Increase contract liability - short-term | (13) | $ 0.7 | |
Increase contract liability - long-term | $ 0 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 $ in Billions | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.8 |
Expected timing of satisfaction of performance obligations | 6 years |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 49.8 | $ 44.6 |
Semi-finished goods | 100.7 | 57.1 |
Raw materials, supplies, and other | 33.6 | 50.6 |
Inventories, net | $ 184.1 | $ 152.3 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in net loss of unconsolidated affiliate | $ 8.1 | $ 2.2 | |
Nemaska Lithium Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in net loss of unconsolidated affiliate | 8.1 | $ 2.2 | |
Equity method investments | $ 449.3 | $ 437.1 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Restructuring Charges in Consolidated Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring charges: | ||
Severance-related and exit costs | $ 1.7 | $ 0.5 |
Other charges: | ||
Environmental remediation | 0.1 | 0.1 |
Other | 0.1 | 0.4 |
Total Restructuring and other charges | $ 1.9 | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 23.9 | $ 4.7 |
Effective tax rate | 17.20% | 8.10% |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Transaction costs - 2025 Notes | $ (3.5) | $ (3.9) |
Total long-term debt | 242.3 | 241.9 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Long-Term debt, gross | $ 245.8 | 245.8 |
Convertible debt, interest rate | 4.125% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding amount | $ 14.9 | 14.9 |
Line of credit, remaining borrowing capacity | 485.1 | 485.1 |
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] | ||
Interest Rate Percentage | 6.65% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 8.75% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
May 04, 2023 day | Mar. 31, 2023 USD ($) | |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 4.125% | |
Convertible Debt | 2025 Notes | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 4.125% | |
Amortization of debt discount and transaction costs | $ | $ 0.4 | |
Interest expense on debt, excluding amortization of debt discount | $ | $ 2.5 | |
Convertible Debt | Conversion Circumstance One | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Threshold trading days | day | 20 | |
Threshold consecutive trading days | day | 30 | |
Threshold percentage of stock price trigger | 130% | |
Line of Credit | Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum net leverage ratio | 3.5 | |
Minimum allowable interest coverage ratio | 3.5 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Reclassification of hedging losses (less than) | $ (100,000) | $ 100,000 | |
Dividends paid | $ 0 | $ 0 |
Equity - Summary of Common Stoc
Equity - Summary of Common Stock Activity (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Issued | |
Beginning balance (in shares) | 179,652,125 |
Ending balance (in shares) | 179,715,772 |
Treasury | |
Beginning balance (in shares) | (103,575) |
Purchases of Treasury Stock - NQSP (in shares) | (1,898) |
Ending balance (in shares) | (105,473) |
Outstanding | |
Beginning balance, outstanding (in shares) | 179,548,550 |
Purchases of Treasury Stock - NQSP (in shares) | (1,898) |
Ending balance, outstanding (in shares) | 179,610,299 |
Livent Plan | Restricted Stock Units (RSUs) | |
Issued | |
Stock issued during period (in shares) | 53,374 |
Outstanding | |
Stock issued during period (in shares) | 53,374 |
Livent Plan | Stock Option | |
Issued | |
Stock issued during period (in shares) | 10,273 |
Outstanding | |
Stock issued during period (in shares) | 10,273 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,443 | $ 795.4 |
Other comprehensive losses before reclassifications | 1.7 | (0.9) |
Ending balance | 1,561 | 849 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (51) | (42.9) |
Ending balance | (49.3) | (43.8) |
Foreign currency adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (51) | (43.1) |
Other comprehensive losses before reclassifications | 1.5 | (1) |
Ending balance | (49.5) | (44.1) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0.2 |
Other comprehensive losses before reclassifications | 0.2 | 0.1 |
Ending balance | $ 0.2 | $ 0.3 |
Earnings Per Share - EPS Calcul
Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income, basic | $ 114.8 | $ 53.2 |
Net income, diluted | $ 114.8 | $ 53.2 |
Denominator: | ||
Weighted average common shares outstanding - basic (in shares) | 179.6 | 161.7 |
Dilutive share equivalents from share-based plans (in shares) | 1.5 | 1.6 |
Dilutive share equivalents from 2025 Notes (in shares) | 28.1 | 28.1 |
Weighted average common shares outstanding - diluted (in shares) | 209.2 | 191.4 |
Basic earnings per common share: | ||
Net income per weighted average share - basic (in dollars per share) | $ 0.64 | $ 0.33 |
Diluted earnings per common share: | ||
Net income per weighted average share - diluted (in dollars per share) | $ 0.55 | $ 0.28 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - Stock Option - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total antidilutive weighted average share equivalents (in shares) | 182,109 | 0 |
Antidilutive securities, exercise price (in dollars per share) | $ 23.33 |
Financial Instruments, Risk M_3
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Total long-term debt | $ 242.3 | $ 241.9 |
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 32.4 | |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Total derivative liabilities | $ 0.1 | |
Forward Contracts | ||
Derivative [Line Items] | ||
AOCI, net | 0.2 | |
Foreign Exchange contracts | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 112.2 | |
Estimate of Fair Value Measurement | ||
Derivative [Line Items] | ||
Long-term debt value | $ 675.8 |
Financial Instruments, Risk M_4
Financial Instruments, Risk Management and Fair Value Measurements - Schedule of Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Liabilities fair value disclosure | $ 6.2 | $ 5.1 |
Total derivative assets | 0.3 | |
Net derivative assets | 0.3 | |
Foreign Exchange contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Total derivative assets | $ 0.3 |
Financial Instruments, Risk M_5
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,443 | $ 795.4 |
Unrealized hedging gains, net of tax | 1.7 | (0.9) |
Total derivatives instruments impact on comprehensive income, net of tax | 1.7 | (0.9) |
Ending balance | 1,561 | 849 |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0.2 |
Unrealized hedging gains, net of tax | 0.2 | 0.1 |
Total derivatives instruments impact on comprehensive income, net of tax | 0.2 | 0.1 |
Ending balance | $ 0.2 | $ 0.3 |
Financial Instruments, Risk M_6
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ 2.1 | $ (1.6) |
Foreign Exchange contracts | ||
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | 2.1 | (1.6) |
Foreign Exchange contracts | Subsidiaries | ||
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ 0.1 | $ (0.1) |
Financial Instruments, Risk M_7
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Investments in deferred compensation plan | $ 3.9 | $ 3.1 | |
Derivatives – Foreign exchange | 0.3 | ||
Total Assets | 4.2 | 3.1 | |
Liabilities | |||
Deferred compensation plan obligation | 6.2 | 5.1 | |
Total Liabilities | 6.2 | 5.1 | |
Selling, General and Administrative Expenses | |||
Liabilities | |||
Mark-to-market gain on common stock | $ 0.2 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Investments in deferred compensation plan | 3.9 | 3.1 | |
Derivatives – Foreign exchange | 0 | ||
Total Assets | 3.9 | 3.1 | |
Liabilities | |||
Deferred compensation plan obligation | 6.2 | 5.1 | |
Total Liabilities | 6.2 | 5.1 | |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Investments in deferred compensation plan | 0 | 0 | |
Total Assets | 0.3 | 0 | |
Liabilities | |||
Deferred compensation plan obligation | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Investments in deferred compensation plan | 0 | 0 | |
Derivatives – Foreign exchange | 0 | ||
Total Assets | 0 | 0 | |
Liabilities | |||
Deferred compensation plan obligation | 0 | 0 | |
Total Liabilities | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Mar. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Operating lease, weighted average remaining lease term (in years) | 7 years 3 months 18 days |
Operating lease, weighted average discount rate (as a percent) | 5.20% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease term (in years) | 3 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, remaining lease term (in years) | 12 years |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lease Cost | ||
Operating lease cost | $ 0.3 | $ 0.4 |
Short-term lease cost | 0.1 | 0.1 |
Total lease cost | 0.4 | 0.5 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash paid for operating leases | $ 0.3 | $ 0.4 |
Commitments and Contingencies_3
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Undiscounted cash flows | |
Remainder of 2023 | $ 1 |
2024 | 1.4 |
2025 | 1.4 |
2026 | 0.6 |
2027 | 0.3 |
Thereafter | 2 |
Total future minimum lease payments | 6.7 |
Less: Imputed interest | (1.1) |
Total | $ 5.6 |
Supplemental Information - Prep
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid and other current assets | ||
Tax related items | $ 18.7 | $ 22 |
Prepaid expenses | 10.1 | 11.6 |
Argentina government receivable | 7.2 | 6.7 |
Other receivables | 5.7 | 7.4 |
Bank Acceptance Drafts | 18.8 | 6.9 |
Derivative assets (Note 12) | 0.3 | 0 |
Other current assets | 6.7 | 6.5 |
Total | $ 67.5 | $ 61.1 |
Supplemental Information - Othe
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other assets | ||
Argentina government receivable | $ 81.7 | $ 80.3 |
Advance to contract manufacturers | 20.2 | 17.2 |
Long-term raw materials inventory | 1.6 | 1.6 |
Tax related items | 3.9 | 3.7 |
Capitalized software, net | 1.4 | 1.4 |
Other assets | 13.4 | 12.2 |
Total | 122.2 | 116.4 |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 39.7 | $ 40 |
Supplemental Information - Accr
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued and other current liabilities | ||
Accrued payroll | $ 13.2 | $ 19.8 |
Restructuring reserves | 2.9 | 3.1 |
Retirement liability - 401k | 0.7 | 2.6 |
Environmental reserves, current | 0.6 | 0.6 |
Severance | 0 | 0.1 |
Other accrued and other current liabilities | 18.8 | 11.2 |
Total | $ 36.2 | $ 37.4 |
Supplemental Information - Ot_2
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other long-term liabilities | ||
Deferred compensation plan obligation | $ 6.2 | $ 5.1 |
Contingencies related to uncertain tax positions | 6.1 | 5.7 |
Self-insurance reserves | 1.5 | 1.5 |
Asset retirement obligations | 0.2 | 0.2 |
Other long-term liabilities | 4.1 | 3.4 |
Total | 18.1 | $ 15.9 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 5.7 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 0.4 |