Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2020shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-584 |
Entity Registrant Name | FERRO CORPORATION |
Entity Incorporation State Country Code | OH |
Entity Tax Identification Number | 34-0217820 |
Entity Address Address Line One | 6060 Parkland Boulevard |
Entity Address Address Line Two | Suite 250 |
Entity Address City Or Town | Mayfield Heights |
Entity Address State Or Province | OH |
Entity Address Postal Zip Code | 44124 |
City Area Code | 216 |
Local Phone Number | 875-5600 |
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 |
Title of 12(b) Security | Common Stock, par value $1.00 |
Trading Symbol | FOE |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 82,250,817 |
Amendment Flag | false |
Entity Central Index Key | 0000035214 |
Document Fiscal Period Focus | Q2 |
Document Fiscal Year Focus | 2020 |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements Of Operations [Abstract] | ||||
Net sales | $ 204,801 | $ 260,958 | $ 457,127 | $ 524,340 |
Cost of sales | 141,057 | 181,828 | 312,645 | 367,351 |
Gross profit | 63,744 | 79,130 | 144,482 | 156,989 |
Selling, general and administrative expenses | 50,541 | 53,249 | 106,587 | 110,180 |
Restructuring and impairment charges | 8,619 | 4,057 | 9,784 | 5,797 |
Other expense (income): | ||||
Interest expense | 6,177 | 6,281 | 11,707 | 12,576 |
Interest earned | (307) | (832) | (561) | (1,643) |
Foreign currency losses (gains), net | 1,143 | 2,043 | (172) | 4,007 |
Miscellaneous expense (income), net | (703) | 318 | (2,166) | 364 |
Income (loss) before income taxes | (1,726) | 14,014 | 19,303 | 25,708 |
Income tax expense | 200 | 2,653 | 5,317 | 5,546 |
Income (loss) from continuing operations | (1,926) | 11,361 | 13,986 | 20,162 |
Income (loss) from discontinued operations, net of income taxes | (3,238) | (252) | (3,017) | 4,825 |
Net income (loss) | (5,164) | 11,109 | 10,969 | 24,987 |
Less: Net income attributable to noncontrolling interests | 376 | 238 | 386 | 512 |
Net income (loss) attributable to Ferro Corporation common shareholders | $ (5,540) | $ 10,871 | $ 10,583 | $ 24,475 |
Basic earnings (loss): | ||||
Continuing operations | $ (0.03) | $ 0.13 | $ 0.17 | $ 0.24 |
Discontinued operations | (0.04) | (0.04) | 0.06 | |
Basic earnings | (0.07) | 0.13 | 0.13 | 0.30 |
Diluted earnings (loss): | ||||
Continuing operations | (0.03) | 0.13 | 0.16 | 0.23 |
Discontinued operations | (0.04) | (0.04) | 0.06 | |
Diluted earnings | $ (0.07) | $ 0.13 | $ 0.12 | $ 0.29 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ (5,164) | $ 11,109 | $ 10,969 | $ 24,987 |
Other comprehensive income (loss), net of income tax: | ||||
Foreign currency translation income (loss) | 3,857 | 3,873 | (14,509) | 7,381 |
Cash flow hedging instruments, unrealized loss | (1,560) | (7,349) | (10,600) | (11,663) |
Other comprehensive income (loss), net of income tax | 2,297 | (3,476) | (25,109) | (4,282) |
Total comprehensive income (loss) | (2,867) | 7,633 | (14,140) | 20,705 |
Less: Comprehensive income attributable to noncontrolling interests | 340 | 122 | 256 | 502 |
Comprehensive income (loss) attributable to Ferro Corporation | $ (3,207) | $ 7,511 | $ (14,396) | $ 20,203 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 62,031 | $ 96,202 |
Accounts receivable, net | 133,349 | 139,333 |
Inventories | 290,659 | 264,476 |
Other receivables | 71,913 | 69,365 |
Other current assets | 19,072 | 22,373 |
Current assets held-for-sale | 279,576 | 291,420 |
Total current assets | 856,600 | 883,169 |
Other assets | ||
Property, plant and equipment, net | 296,290 | 302,672 |
Goodwill | 171,545 | 172,209 |
Intangible assets, net | 122,024 | 127,815 |
Deferred income taxes | 101,114 | 98,714 |
Operating leased assets | 15,042 | 20,088 |
Other non-current assets | 75,211 | 72,023 |
Non-current assets held-for-sale | 157,389 | 157,931 |
Total assets | 1,795,215 | 1,834,621 |
Current liabilities | ||
Loans payable and current portion of long-term debt | 20,379 | 8,703 |
Accounts payable | 117,856 | 138,799 |
Accrued payrolls | 27,799 | 27,447 |
Accrued expenses and other current liabilities | 76,685 | 73,016 |
Current liabilities held-for-sale | 103,466 | 133,780 |
Total current liabilities | 346,185 | 381,745 |
Other liabilities | ||
Long-term debt, less current portion | 810,793 | 798,862 |
Postretirement and pension liabilities | 168,643 | 174,021 |
Operating leased non-current liabilities | 9,716 | 14,474 |
Other non-current liabilities | 60,037 | 56,976 |
Non-current liabilities held-for-sale | 39,186 | 38,341 |
Total liabilities | 1,434,560 | 1,464,419 |
Ferro Corporation shareholders' equity: | ||
Common stock, par value $1 per share; 300.0 million shares authorized; 93.4 million shares issued; 82.3 million and 82.0 million shares outstanding at June 30, 2020, and December 31, 2019, respectively | 93,436 | 93,436 |
Paid-in capital | 293,645 | 294,543 |
Retained earnings | 272,599 | 262,016 |
Accumulated other comprehensive loss | (134,355) | (109,376) |
Common shares in treasury, at cost | (174,752) | (180,243) |
Total Ferro Corporation shareholders' equity | 350,573 | 360,376 |
Noncontrolling interests | 10,082 | 9,826 |
Total equity | 360,655 | 370,202 |
Total liabilities and equity | $ 1,795,215 | $ 1,834,621 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 93,400,000 | 93,400,000 |
Common stock, shares outstanding | 82,300,000 | 82,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands | Common Shares in Treasury [Member] | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] | Total |
Beginning Balances at Dec. 31, 2018 | $ (165,545) | $ 93,436 | $ 298,123 | $ 255,978 | $ (105,361) | $ 9,218 | $ 385,849 |
Beginning Balances, shares at Dec. 31, 2018 | 10,433 | ||||||
Net income (loss) | 13,604 | 274 | 13,878 | ||||
Other comprehensive income (loss) | (912) | 106 | (806) | ||||
Purchase of treasury stock | $ (25,000) | (25,000) | |||||
Purchase of treasury stock, shares | 1,441 | ||||||
Stock-based compensation transactions | $ 8,422 | (6,446) | 1,976 | ||||
Stock-based compensation transactions, shares | (370) | ||||||
Ending Balances at Mar. 31, 2019 | $ (182,123) | 93,436 | 291,677 | 269,582 | (106,273) | 9,598 | 375,897 |
Ending Balances, shares at Mar. 31, 2019 | 11,504 | ||||||
Beginning Balances at Dec. 31, 2018 | $ (165,545) | 93,436 | 298,123 | 255,978 | (105,361) | 9,218 | 385,849 |
Beginning Balances, shares at Dec. 31, 2018 | 10,433 | ||||||
Net income (loss) | 24,987 | ||||||
Other comprehensive income (loss) | (4,282) | ||||||
Ending Balances at Jun. 30, 2019 | $ (182,086) | 93,436 | 293,858 | 280,453 | (109,633) | 9,066 | 385,094 |
Ending Balances, shares at Jun. 30, 2019 | 11,503 | ||||||
Beginning Balances at Mar. 31, 2019 | $ (182,123) | 93,436 | 291,677 | 269,582 | (106,273) | 9,598 | 375,897 |
Beginning Balances, shares at Mar. 31, 2019 | 11,504 | ||||||
Net income (loss) | 10,871 | 238 | 11,109 | ||||
Other comprehensive income (loss) | (3,360) | (116) | (3,476) | ||||
Stock-based compensation transactions | $ 37 | 2,181 | 2,218 | ||||
Stock-based compensation transactions, shares | (1) | ||||||
Distributions to noncontrolling interests | (654) | (654) | |||||
Ending Balances at Jun. 30, 2019 | $ (182,086) | 93,436 | 293,858 | 280,453 | (109,633) | 9,066 | 385,094 |
Ending Balances, shares at Jun. 30, 2019 | 11,503 | ||||||
Beginning Balances at Dec. 31, 2019 | $ (180,243) | 93,436 | 294,543 | 262,016 | (109,376) | 9,826 | 370,202 |
Beginning Balances, shares at Dec. 31, 2019 | 11,431 | ||||||
Net income (loss) | 16,123 | 10 | 16,133 | ||||
Other comprehensive income (loss) | (27,312) | (94) | (27,406) | ||||
Stock-based compensation transactions | $ 5,332 | (2,723) | 2,609 | ||||
Stock-based compensation transactions, shares | (238) | ||||||
Ending Balances at Mar. 31, 2020 | $ (174,911) | 93,436 | 291,820 | 278,139 | (136,688) | 9,742 | 361,538 |
Ending Balances, shares at Mar. 31, 2020 | 11,193 | ||||||
Beginning Balances at Dec. 31, 2019 | $ (180,243) | 93,436 | 294,543 | 262,016 | (109,376) | 9,826 | 370,202 |
Beginning Balances, shares at Dec. 31, 2019 | 11,431 | ||||||
Net income (loss) | 10,969 | ||||||
Other comprehensive income (loss) | (25,109) | ||||||
Ending Balances at Jun. 30, 2020 | $ (174,752) | 93,436 | 293,645 | 272,599 | (134,355) | 10,082 | 360,655 |
Ending Balances, shares at Jun. 30, 2020 | 11,185 | ||||||
Beginning Balances at Mar. 31, 2020 | $ (174,911) | 93,436 | 291,820 | 278,139 | (136,688) | 9,742 | 361,538 |
Beginning Balances, shares at Mar. 31, 2020 | 11,193 | ||||||
Net income (loss) | (5,540) | 376 | (5,164) | ||||
Other comprehensive income (loss) | 2,333 | (36) | 2,297 | ||||
Stock-based compensation transactions | $ 159 | 1,825 | 1,984 | ||||
Stock-based compensation transactions, shares | (8) | ||||||
Ending Balances at Jun. 30, 2020 | $ (174,752) | $ 93,436 | $ 293,645 | $ 272,599 | $ (134,355) | $ 10,082 | $ 360,655 |
Ending Balances, shares at Jun. 30, 2020 | 11,185 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net cash used in operating activities | $ (104,561) | $ (78,949) |
Cash flows from investing activities | ||
Capital expenditures for property, plant and equipment and other long-lived assets | (14,982) | (37,634) |
Collections of financing receivables | 62,580 | 41,271 |
Business acquisitions, net of cash acquired | (251) | |
Other investing activities | 778 | 1,898 |
Net cash provided by investing activities | 48,376 | 5,284 |
Cash flows from financing activities | ||
Net borrowings under loans payable | 11,420 | 7,528 |
Principal payments on term loan facility - Amended Credit Facility | (4,100) | (4,100) |
Proceeds from revolving credit facility - Amended Credit Facility | 360,000 | 165,420 |
Principal payments on revolving credit facility - Amended Credit Facility | (343,383) | (122,943) |
Purchase of treasury stock | (25,000) | |
Other financing activities | (1,418) | (568) |
Net cash provided by financing activities | 22,519 | 20,337 |
Effect of exchange rate changes on cash and cash equivalents | (505) | 338 |
Decrease in cash and cash equivalents | (34,171) | (52,990) |
Cash and cash equivalents at beginning of period | 104,402 | 104,301 |
Cash and cash equivalents at end of period | 70,231 | 51,311 |
Less: Cash and cash equivalents of discontinued operations at end of period | 8,200 | 8,200 |
Cash and cash equivalents of continuing operations at end of period | 62,031 | 43,111 |
Cash paid during the period for: | ||
Interest | 16,736 | 16,957 |
Income taxes | $ 7,722 | $ 8,251 |
Basis Of Presentation
Basis Of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Ferro Corporation (“Ferro,” “we,” “us” or “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. These statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019. We produce our products primarily in the Europe, Middle East and Africa (“EMEA”) region, the United States (“U.S.”), the Asia Pacific region, and Latin America. Operating results for the three and six months ended June 30, 2020, are not necessarily indicative of the results expected in subsequent quarters or for the full year ending December 31, 2020. During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. As further discussed in Note 4, we entered into a definitive agreement to sell our Tile Coatings business, which has historically been included in the Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Throughout this Quarterly Report on Form 10-Q, with the exception of the statements of cash flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis. Subsequent to the treatment of the Tile Coatings business as discontinued operations, the remaining businesses within Performance Coatings were included within the Performance Colors and Glass reportable segment, which as of January 1, 2020, was renamed Functional Coatings. Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the balance sheet presentation of assets and liabilities as held for sale and statement of operations presentation of results classified as discontinued operations in relation to the Tile Coatings business transaction. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Recently Adopted Accounting Standards This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company. New Accounting Standards Not Yet Adopted We are currently evaluating the impact on our financial statements of the following ASUs: Standard Description ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , issued March, 2020 Provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU are effective for all entities through December 31, 2022. ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans , issued August, 2018 Modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years beginning after December 15, 2020 and is to be applied using a retrospective approach for all periods presented. Early adoption is permitted. No other new accounting pronouncements issued had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
Revenue | 3. Revenue Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2020, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings 51,071 52,194 21,733 6,674 131,672 Color Solutions 27,874 30,520 9,110 5,625 73,129 Total net sales $ 78,945 $ 82,714 $ 30,843 $ 12,299 $ 204,801 Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2019, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings 74,997 50,938 24,700 13,057 163,692 Color Solutions 37,044 43,142 9,011 8,069 97,266 Total net sales $ 112,041 $ 94,080 $ 33,711 $ 21,126 $ 260,958 Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2020, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings $ 126,928 $ 98,888 $ 43,489 $ 17,802 $ 287,107 Color Solutions 65,763 71,679 18,406 14,172 170,020 Total net sales $ 192,691 $ 170,567 $ 61,895 $ 31,974 $ 457,127 Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2019, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings $ 153,262 $ 102,917 $ 47,598 $ 26,941 $ 330,718 Color Solutions 72,611 86,741 17,836 16,434 193,622 Total net sales $ 225,873 $ 189,658 $ 65,434 $ 43,375 $ 524,340 |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 4. Discontinued Operations During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. We entered into a definitive agreement to sell our Tile Coatings business, which has historically been a part of our Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented. The table below summarizes results for the Tile Coatings business for the three and six months ended June 30, 2020 and 2019 which are reflected in our consolidated statements of operations as discontinued operations. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Net sales $ 75,254 $ 132,944 $ 190,004 $ 257,110 Cost of sales 59,073 103,816 145,975 203,985 Gross profit 16,181 29,128 44,029 53,125 Selling, general and administrative expenses 15,542 18,396 34,350 33,545 Restructuring and impairment charges 1,758 6,203 2,037 6,590 Interest expense 2,517 2,969 4,748 5,958 Interest earned ( 129 ) ( 52 ) ( 153 ) ( 67 ) Foreign currency losses (gains), net ( 804 ) ( 663 ) 4,961 ( 1,889 ) Miscellaneous expense, net 705 41 1,247 270 Income (loss) from discontinued operations before income taxes ( 3,408 ) 2,234 ( 3,161 ) 8,718 Income tax expense (benefit) ( 170 ) 2,486 ( 144 ) 3,893 Income (loss) from discontinued operations, net of income taxes ( 3,238 ) ( 252 ) ( 3,017 ) 4,825 Less: Net income attributable to noncontrolling interests 67 45 44 150 Net income (loss) attributable to Tile Coatings business $ ( 3,305 ) $ ( 297 ) $ ( 3,061 ) $ 4,675 The following table summarizes the assets and liabilities which are classified as held-for-sale at June 30, 2020 and December 31, 2019: June 30, December 31, (Dollars in thousands) 2020 2019 Cash and cash equivalents $ 8,200 $ 8,200 Accounts receivable, net 142,334 156,645 Inventories 101,084 101,127 Other receivables 24,884 22,442 Other current assets 3,074 3,006 Current assets held-for-sale 279,576 291,420 Property, plant and equipment, net 97,130 96,762 Goodwill 3 3 Amortizable intangible assets, net 39,720 39,692 Deferred income taxes 14,034 14,425 Other non-current assets 6,502 7,049 Non-current assets held-for-sale 157,389 157,931 Total assets held-for-sale $ 436,965 $ 449,351 Loans payable and current portion of long-term debt $ 3,118 $ 3,678 Accounts payable 68,001 96,998 Accrued payrolls 6,740 4,838 Accrued expenses and other current liabilities 25,607 28,266 Current liabilities held-for-sale 103,466 133,780 Long-term debt, less current portion 25,755 25,805 Postretirement and pension liabilities 8,002 7,473 Other non-current liabilities 5,429 5,063 Non-current liabilities held-for-sale 39,186 38,341 Total liabilities held-for-sale $ 142,652 $ 172,121 The following table summarizes cash flow data relating to discontinued operations for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Depreciation $ — $ 5,833 Amortization of intangible assets — 1,594 Capital expenditures ( 1,909 ) ( 7,502 ) Non-cash operating activities - goodwill impairment — 5,963 Non-cash operating activities - restructuring and impairment charges 1,070 115 Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end 507 1,322 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Inventories | 5. Inventories June 30, December 31, (Dollars in thousands) 2020 2019 Raw materials $ 88,658 $ 80,176 Work in process 50,247 49,717 Finished goods 151,754 134,583 Total inventories $ 290,659 $ 264,476 In the production of some of our products, we use precious metals, which we obtain from financial institutions under consignment agreements with terms of one year or less. The financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign. These fees were $ 0.6 million for the three months ended June 30, 2020 and 2019, and were $ 1.7 million for the six months ended June 30, 2020 and 2019. We had on-hand precious metals owned by participants in our precious metals consignment program of $ 77.3 million at June 30, 2020, and $ 66.2 million at December 31, 2019, measured at fair value based on market prices for identical assets. |
Property, Plant And Equipment
Property, Plant And Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant And Equipment [Abstract] | |
Property, Plant And Equipment | 6. Property, Plant and Equipment Property, plant and equipment is reported net of accumulated depreciation of $ 420.6 million at June 30, 2020 and $ 413.8 million at December 31, 2019. As discussed in Note 4, the assets of our Tile Coatings business were classified as held-for-sale under ASC Topic 360; Property, Plant, and Equipment . As such, additional accumulated depreciation of $ 137.8 million at June 30, 2020 and $ 136.7 million at December 31, 2019 were classified as Non-current assets held for sale. Unpaid capital expenditure liabilities, which are non-cash investing activities, were $ 0.3 million at June 30, 2020 and $ 0.9 million at June 30, 2019. |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill And Other Intangible Assets | 7. Goodwill and Other Intangible Assets Details and activity in the Company’s goodwill by segment follow: Functional Color (Dollars in thousands) Coatings Solutions Total Goodwill, net at December 31, 2019 $ 121,902 $ 50,307 $ 172,209 Foreign currency adjustments ( 655 ) ( 9 ) ( 664 ) Goodwill, net at June 30, 2020 $ 121,247 $ 50,298 $ 171,545 June 30, December 31, (Dollars in thousands) 2020 2019 Goodwill, gross $ 230,012 $ 230,676 Accumulated impairment ( 58,467 ) ( 58,467 ) Goodwill, net $ 171,545 $ 172,209 Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. As of June 30, 2020, the Company is not aware of any events or circumstances that occurred which would require a goodwill impairment test. Amortizable intangible assets consisted of the following: June 30, December 31, (Dollars in thousands) 2020 2019 Gross amortizable intangible assets: Patents $ 5,424 $ 5,434 Land rights 2,859 2,900 Technology/know-how and other 114,480 112,940 Customer relationships 66,022 66,454 Total gross amortizable intangible assets 188,785 187,728 Accumulated amortization: Patents ( 5,403 ) ( 5,413 ) Land rights ( 1,398 ) ( 1,378 ) Technology/know-how and other ( 57,011 ) ( 50,973 ) Customer relationships ( 15,642 ) ( 14,831 ) Total accumulated amortization ( 79,454 ) ( 72,595 ) Amortizable intangible assets, net $ 109,331 $ 115,133 Indefinite-lived intangible assets consisted of the following: June 30, December 31, (Dollars in thousands) 2020 2019 Indefinite-lived intangibles assets: Trade names and trademarks $ 12,693 $ 12,682 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | 8. Debt Loans payable and current portion of long-term debt consisted of the following: June 30, December 31, (Dollars in thousands) 2020 2019 Loans payable $ 11,602 $ — Current portion of long-term debt 8,777 8,703 Current portion of long-term debt $ 20,379 $ 8,703 Long-term debt consisted of the following: June 30, December 31, (Dollars in thousands) 2020 2019 Term loan facility, net of unamortized issuance costs, maturing 2024 (1) $ 797,236 $ 801,764 Revolving credit facility 16,617 — Capital lease obligations 2,292 2,305 Other notes 3,425 3,496 Total long-term debt 819,570 807,565 Current portion of long-term debt ( 8,777 ) ( 8,703 ) Long-term debt, less current portion $ 810,793 $ 798,862 (1) The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $ 4.3 million at June 30, 2020, and $ 3.9 million at December 31, 2019. Amended Credit Facility On April 25, 2018, the Company entered into an amendment (the “Amended Credit Facility”) to its existing credit facility (the “Credit Facility”), which Amended Credit Facility (a) provided a new revolving facility (the “2018 Revolving Facility”), which replaced the Company’s existing revolving facility, (b) repriced the (“Tranche B-1 Loans”), and (c) provided new tranches of term loans (“Tranche B-2 Loans” and “Tranche B-3 Loans”) denominated in U.S. dollars. On May 4, 2020, the Company entered into an amendment (Third Amendment to Credit Agreement) to the Amended Credit Facility, which added an approval to Section 7.2.8 Permitted Dispositions for the Tile Coatings Business Disposition. The Amended Credit Facility will be used for ongoing working capital requirements and general corporate purposes. The Tranche B-2 Loans are borrowed by the Company and the Tranche B-3 Loans are borrowed on a joint and several basis by Ferro GmbH and Ferro Europe Holdings LLC. The Amended Credit Facility consists of a $ 500 million secured revolving line of credit with a maturity of February 14, 2023 , a $ 355 million secured term loan facility with a maturity of February 14, 2024 , a $ 235 million secured term loan facility with a maturity of February 14, 2024 and a $ 230 million secured term loan facility with a maturity of February 14, 2024 . The term loans are payable in equal quarterly installments in an amount equal to 0.25 % of the original principal amount of the term loans, with the remaining balance due on the maturity date thereof. In addition, the Company is required, on an annual basis, to make a prepayment in an amount equal to a portion of the Company’s excess cash flow, as calculated pursuant to the Amended Credit Facility, which prepayment will be applied first to the term loans until they are paid in full, and then to the revolving loans. Subject to the satisfaction of certain conditions, the Company can request additional commitments under the revolving line of credit or term loans in the aggregate principal amount of up to $ 250 million to the extent that existing or new lenders agree to provide such additional commitments and/or term loans. The Company can also raise certain additional debt or credit facilities subject to satisfaction of certain covenant levels. Certain of the Company’s U.S. subsidiaries have guaranteed the Company’s obligations under the Amended Credit Facility and such obligations are secured by (a) substantially all of the personal property of the Company and the U.S. subsidiary guarantors and (b) a pledge of 100 % of the stock of certain of the Company’s U.S. subsidiaries and 65 % of the stock of certain of the Company’s direct foreign subsidiaries. The Tranche B-3 Loans are guaranteed by the Company, the U.S. subsidiary guarantors and a cross-guaranty by the borrowers of the Tranche B-3 Loans and are secured by the collateral securing the revolving loans and the other term loans, in addition to a pledge of the equity interests of Ferro GmbH. Interest Rate – Term Loans: The interest rates applicable to the term loans will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable margin. The base rate for term loans will be the highest of (i) the federal funds rate plus 0.50 %, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00 % or (iv) 0.00%. The applicable margin for base rate loans is 1.25 %. The LIBOR rate for term loans shall not be less than 0.0 % and the applicable margin for LIBOR rate term loans is 2.25 %. For LIBOR rate term loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration. At June 30, 2020, the Company had borrowed $ 347.0 million under the Tranche B-1 Loans at an interest rate of 2.56 %, $ 229.7 million under the Tranche B-2 Loans at an interest rate of 2.56 %, and $ 224.8 million under the Tranche B-3 Loans at an interest rate of 2.56 %. At June 30, 2020, there were no additional borrowings available under the Tranche B-1 Loans, Tranche B-2 Loans, or Tranche B-3 Loans. In connection with these borrowings, we entered into swap agreements in the second quarter of 2018. At June 30, 2020, the effective interest rate for the Tranche B-1 Loans, Tranche B-2 Loans, and Tranche B-3 Loans, after adjusting for the interest rate swap, was 4.94 %, 2.14 %, and 2.48 %, respectively. Interest Rate – Revolving Credit Line: The interest rates applicable to loans under the 2018 Revolving Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable variable margin. The variable margin will be based on the ratio of (a) the Company’s total consolidated net debt outstanding (as defined in the Amended Credit Agreement) at such time to (b) the Company’s consolidated EBITDA (as defined in the Amended Credit Agreement) computed for the period of four consecutive fiscal quarters most recently ended. The base rate for revolving loans will be the highest of (i) the federal funds rate plus 0.50 %, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00 % or (iv) 0.00%. The applicable margin for base rate loans will vary between 0.50 % to 1.50 %. The LIBOR rate for revolving loans shall not be less than 0 % and the applicable margin for LIBOR rate revolving loans will vary between 1.50 % and 2.50 %. For LIBOR rate revolving loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration. At June 30, 2020, there were $ 16.6 million of borrowings under the 2018 Revolving Credit Facility. After reductions for outstanding letters of credit secured by these facilities, we had $ 479.2 million of additional borrowings available under the revolving credit facilities at June 30, 2020. The Amended Credit Facility contains customary restrictive covenants including, but not limited to, limitations on use of loan proceeds, limitations on the Company’s ability to pay dividends and repurchase stock, limitations on acquisitions and dispositions, and limitations on certain types of investments. The Amended Credit Facility also contains standard provisions relating to conditions of borrowing and customary events of default, including the non-payment of obligations by the Company and the bankruptcy of the Company. Specific to the 2018 Revolving Facility, the Company is subject to a financial covenant regarding the Company’s maximum leverage ratio. If an event of default occurs, all amounts outstanding under the Amended Credit Facility agreement may be accelerated and become immediately due and payable. At June 30, 2020, we were in compliance with the covenants of the Amended Credit Facility. Credit Facility On February 14, 2017, the Company entered into the Credit Facility with a group of lenders to refinance its then outstanding credit facility debt and to provide liquidity for ongoing working capital requirements and general corporate purposes. The Credit Facility consisted of a $ 400 million secured revolving line of credit with a term of five year s, a $ 357.5 million secured term loan facility with a term of seven year s and a € 250 million secured Euro term loan facility with a term of seven year s. For further discussion of the Company’s Credit Facility, refer to Note 9 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. International Receivable Sales Programs We have several international programs to sell without recourse trade accounts receivable to financial institutions. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. The Company continues to service the receivables sold in exchange for a fee. The servicing fee for the three and six months ended June 30, 2020 and 2019, was immaterial. The program, whose maximum capacity is € 100 million, is scheduled to expire on December 31, 2023 . Generally, at the transfer date, the Company receives cash equal to approximately 65 % of the value of the sold receivable. Cash proceeds at the transfer date from these arrangements are reflected in operating activities in our consolidated statement of cash flows. The proceeds from the deferred purchase price are reflected in investing activities. The outstanding principal amount of receivables sold under this program, for which cash has been collected but not yet remitted, was $ 14.8 million at June 30, 2020 and $ 19.3 million at December 31, 2019. The carrying amount of deferred purchase price was $ 7.2 million at June 30, 2020 and $ 6.6 million at December 31, 2019 and is recorded in Other receivables. Trade accounts receivable collected to be remitted were $ 9.4 million at June 30, 2020 and $ 12.8 million at December 31, 2019 and is recorded in Accrued expenses and other current liabilities. As discussed in Note 4, during the fourth quarter of 2019, we entered into a definitive agreement to sell our Tile Coatings business. As such, our Tile Coatings business was classified as held-for-sale. At June 30, 2020 and December 31, 2019, $ 40.4 million and $ 52.6 million, respectively, of the outstanding principal amount of receivables sold under this program pertained to the Tile Coatings business. The carrying amount of the deferred purchase price at June 30, 2020 and December 31, 2019 was $ 22.7 million and $ 20.5 million, respectively. Both are recorded in Current assets held-for-sale in our consolidated balance sheets. Activity from these programs for the six months ended June 30, 2020 and 2019 is detailed below: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Trade accounts receivable sold to financial institutions $ 91,048 $ 20,337 Cash proceeds from financial institutions (1) 58,794 12,634 (1) In the six months ended June 30, 2020 and 2019, our Tile Coatings business received cash proceeds from financial institutions of $ 47.3 million and $ 67.6 million, respectively. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations . Other Financing Arrangements We maintain other lines of credit to provide global flexibility for our short-term liquidity requirements. These facilities are uncommitted lines for our international operations and totaled $ 28.1 million at June 30, 2020 and December 31, 2019. The unused portions of these lines provided additional liquidity of $ 13.4 million and $ 25.0 million at June 30, 2020 and December 31, 2019, respectively. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments [Abstract] | |
Financial Instruments | 9. Financial Instruments The following financial instrument assets (liabilities) are presented at their respective carrying amount, fair value and classification within the fair value hierarchy: June 30, 2020 Carrying Fair Value (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 62,031 $ 62,031 $ 62,031 $ — $ — Loans payable ( 11,602 ) ( 11,602 ) — ( 11,602 ) — Term loan facility - Amended Credit Facility (1) ( 797,236 ) ( 775,050 ) — ( 775,050 ) — Revolving credit facility ( 16,617 ) ( 17,484 ) — ( 17,484 ) — Other long-term notes payable ( 3,425 ) ( 1,442 ) — ( 1,442 ) — Cross currency swaps 21,246 21,246 — 21,246 — Interest rate swaps ( 27,517 ) ( 27,517 ) — ( 27,517 ) — Foreign currency forward contracts, net 1,696 1,696 — 1,696 — December 31, 2019 Carrying Fair Value (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 96,202 $ 96,202 $ 96,202 $ — $ — Term loan facility - Amended Credit Facility (1) ( 801,764 ) ( 799,750 ) — ( 799,750 ) — Other long-term notes payable ( 3,496 ) ( 1,557 ) — ( 1,557 ) — Cross currency swaps 22,111 22,111 — 22,111 — Interest rate swaps ( 14,698 ) ( 14,698 ) — ( 14,698 ) — Foreign currency forward contracts, net 601 601 — 601 — (1) The carrying value of the term loan facility is net of unamortized debt issuance costs of $ 4.3 million and $ 3.9 million for the period ended June 30, 2020, and December 31, 2019, respectively. The fair values of cash and cash equivalents are based on the fair values of identical assets. The fair value of loans payable is based on the present value of expected future cash flows and approximate their carrying amounts due to the short periods to maturity. The fair value of the term loan facility is based on market price information and is measured using the last available bid price of the instrument on a secondary market. The revolving credit facility and other long-term notes payable are based on the present value of expected future cash flows and interest rates that would be currently available to the Company for issuance of similar types of debt instruments with similar terms and remaining maturities adjusted for the Company's performance risk. The fair values of our interest rate swaps and cross currency swaps are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair values of the foreign currency forward contracts are based on market prices for comparable contracts. Derivative Instruments The Company may use derivative instruments to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, on net investments in certain foreign subsidiaries and on certain existing assets and liabilities. However, the Company may choose not to hedge in countries where it is not economically feasible to enter into hedging arrangements or where hedging inefficiencies exist, such as timing of transactions. Derivatives Designated as Hedging Instruments Cash Flow Hedges. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is recorded as a component of Accumulated other comprehensive loss (“AOCL”) and reclassified into earnings in the same period during which the hedged transaction affects earnings. The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt. During the second quarter of 2018, the Company entered into variable to fixed interest rate swaps with a maturity date of February 14, 2024 . The notional amount is $ 312.8 million at June 30, 2020. These swaps are hedging risk associated with the Tranche B-1 Loans. These interest rate swaps are designated as cash flow hedges. As of June 30, 2020, the Company expects it will reclassify net losses of approximately $ 8.2 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of these derivatives. The Company has converted a U.S. dollar denominated, variable rate debt obligation into a Euro fixed rate obligation using receive-float, pay-fixed cross currency swaps in the second quarter of 2018. These swaps are hedging currency and interest rate risk associated with the Tranche B-3 Loans. These cross currency swaps are designated as cash flow hedges. The notional amount is $ 224.8 million at June 30, 2020, with a maturity date of February 14, 2024 . As of June 30, 2020, the Company expects it will reclassify net gains of approximately $ 0.8 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However , the actual amount reclassified could vary due to future changes in the fair value of these derivatives. The amount of loss recognized in AOCL and the amount of loss (gain) reclassified into earnings for the three months ended June 30, 2020 and 2019, follow: Amount of Loss (Gain) Amount of Loss Reclassified from Location of Gain (Loss) Recognized in AOCL AOCL into Income Reclassified from (Dollars in thousands) 2020 2019 2020 2019 AOCL into Income Interest rate swaps $ ( 1,934 ) $ ( 6,813 ) $ ( 824 ) $ 36 Interest expense Cross currency swaps ( 3,902 ) ( 4,708 ) 851 1,528 Interest expense $ 27 $ 1,564 Total Interest expense Cross currency swaps ( 4,204 ) ( 3,166 ) Foreign currency losses, net $ ( 4,204 ) $ ( 3,166 ) Total Foreign currency losses, net The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the six months ended June 30, 2020 and 2019, follow: Amount of Loss (Gain) Amount of Gain (Loss) Reclassified from Location of Gain (Loss) Recognized in AOCL AOCL into Income Reclassified from (Dollars in thousands) 2020 2019 2020 2019 AOCL into Income Interest rate swaps $ ( 14,808 ) $ ( 10,920 ) $ ( 1,322 ) $ 214 Interest expense Cross currency swaps 1,356 372 2,019 3,160 Interest expense $ 697 $ 3,374 Total Interest expense Cross currency swap ( 582 ) 1,778 Foreign currency losses, net $ ( 582 ) $ 1,778 Total Foreign currency losses, net The total amounts of expense and the respective line items in which the effect of cash flow hedges is presented in the condensed consolidated statement of operations for the three and six months ended June 30, 2020 and 2019, are as follows: Three months ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Interest expense $ 6,177 $ 6,281 $ 11,707 $ 12,576 Foreign currency losses, net 1,143 2,043 ( 172 ) 4,007 Net Investment Hedges. For derivatives that are designated and qualify as net investment hedges, the gain or loss on the derivative is reported as a component of the currency translation adjustment in AOCL. These cross currency swaps are designated as hedges of our net investment in European operations. Time value is excluded from the assessment of effectiveness and the amount of interest paid or received on the swaps will be recognized as an adjustment to interest expense in earnings over the life of the swaps. In the second quarter of 2018, the Company entered into cross currency swap agreements under which we pay variable rate interest in Euros and receive variable rate interest in U.S. dollars. The notional amount is € 95.7 million at June 30, 2020, with a maturity date of February 14, 2024 . These swaps are hedging risk associated with the net investment in Euro denominated operations due to fluctuating exchange rates and are designated as net investment hedges. The changes in the fair value of these designated cross-currency swaps will be recognized in AOCL. The amount of loss on net investment hedges recognized in AOCL, the amount reclassified into earnings and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the three months ended June 30, 2020 and 2019, follow: Amount of Gain Amount of Gain Recognized in Income on Amount of Loss Reclassified from Derivative (Amount Excluded Location of Gain Recognized in AOCL AOCL into Income from Effectiveness Testing) in Earnings (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Cross currency swaps $ ( 1,569 ) $ ( 1,260 ) $ — $ — $ 612 $ 949 Interest expense The amount of gain on net investment hedges recognized in AOCL, the amount reclassified into earnings and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the six months ended June 30, 2020 and 2019, follow: Amount of Gain Amount of Gain Recognized in Income on Amount of Gain Reclassified from Derivative (Amount Excluded Location of Gain Recognized in AOCL AOCL into Income from Effectiveness Testing) in Earnings (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Cross currency swaps $ 1,090 $ 2,477 $ — $ — $ 1,392 $ 1,950 Interest expense Derivatives Not Designated as Hedging Instruments Foreign Currency Forward Contracts. We manage foreign currency risks principally by entering into forward contracts to mitigate the impact of currency fluctuations on transactions. These forward contracts are not formally designated as hedges. Gains and losses on these foreign currency forward contracts are netted with gains and losses from currency fluctuations on transactions arising from international trade and reported as Foreign currency losses, net in the condensed consolidated statements of operations. We recognized net gains of $ 0.1 million and $ 0.4 million in the three and six months ended June 30, 2020, respectively, and net loss of $ 1.5 million and net gains of less than $ 0.1 million in the three and six months ended June 30, 2019, respectively, arising from the change in fair value of our financial instruments, which partially offset the related net gains and losses on international trade transactions. The notional amount of foreign currency forward contracts was $ 646.2 million at June 30, 2020 and $ 625.9 million at December 31, 2019. The following table presents the effect on our condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019, respectively, of our foreign currency forward contracts: Amount of Gain (Loss) Amount of Gain Recognized in Earnings Recognized in Earnings Three Months Ended Six Months Ended June 30, June 30, Location of Gain (Loss) in Earnings (Dollars in thousands) 2020 2019 2020 2019 Foreign currency forward contracts $ 142 $ ( 1,497 ) $ 410 $ 27 Foreign currency losses, net Location and Fair Value Amount of Derivative Instruments The following table presents the fair values of our derivative instruments on our condensed consolidated balance sheets. All derivatives are reported on a gross basis. June 30, December 31, (Dollars in thousands) 2020 2019 Balance Sheet Location Asset derivatives: Cross currency swaps $ 1,923 $ 6,711 Other current assets Cross currency swaps 19,323 15,400 Other non-current assets Foreign currency forward contracts 2,539 1,474 Other current assets Liability derivatives: Interest rate swaps $ ( 8,186 ) $ ( 3,723 ) Accrued expenses and other current liabilities Interest rate swaps ( 19,331 ) ( 10,975 ) Other non-current liabilities Foreign currency forward contracts ( 843 ) ( 873 ) Accrued expenses and other current liabilities |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 10. Income Taxes Income tax expense for the six months ended June 30, 2020 was $ 5.3 million, or 27.5 % of pre-tax income. Income tax expense for the six months ended June 30, 2019 was $ 5.5 million, or 21.6 % of pre-tax income. The tax expense during the six months ended June 30, 2020 and June 30, 2019, as a percentage of pre-tax income, is higher than the U.S. federal statutory income tax rate of 21 % primarily as a result of foreign statutory rate differences. |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 11. Contingent Liabilities We have recorded environmental liabilities of $ 5.8 million at June 30, 2020 and $ 7.2 million at December 31, 2019, for costs associated with the remediation of certain of our current or former properties that have been contaminated. The balance at June 30, 2020 and December 31, 2019, were primarily comprised of liabilities related to a non-operating facility in Brazil, and for retained environmental obligations related to a site in the United States that was part of the sale of our North American and Asian metal powders product line in 2013. These costs include, but are not limited to, legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring, and related activities. The ultimate liability could be affected by numerous uncertainties, including the extent of contamination found, the required period of monitoring, the ultimate cost of required remediation, and other circumstances. In November 2017, Suffolk County Water Authority filed a complaint, Suffolk County Water Authority v. The Dow Chemical Company et al., against the Company and a number of other companies in the U.S. Federal Court for the Eastern District of New York with regard to the product 1,4 dioxane. The plaintiff alleges, among other things, that the Suffolk County water supply is contaminated with 1,4 dioxane and that the defendants are liable for unspecified costs of cleanup and remediation of the water supply, among other damages. The Company has not manufactured 1,4 dioxane since 2008, denies the allegations related to liability for the plaintiff’s claims, and is vigorously defending this proceeding. Since December 2018, additional complaints were filed in the same court by 25 other New York municipal water suppliers and in New York State Supreme Court by one water supplier against the Company and others making substantially similar allegations regarding the contamination of their respective water supplies with 1,4 dioxane. The Company is likewise vigorously defending these additional actions. The Company currently does not expect the outcome of these proceedings to have a material adverse impact on its consolidated financial condition, results of operations, or cash flows, net of any insurance coverage. However, it is not possible to predict the ultimate outcome of these proceedings due to the unpredictable nature of litigation. In 2013, the Supreme Court in Argentina ruled favorably related to certain export taxes associated with a divested operation. The liability recorded at June 30, 2020 and December 31, 2019 is $ 0.5 million and $ 0.6 million, respectively. In addition to the proceedings described above, the Company and its consolidated subsidiaries are subject from time to time to various claims, lawsuits, investigations, and proceedings related to products, services, contracts, environmental, health and safety, employment, intellectual property, and other matters, including with respect to divested businesses. The outcome of such matters is unpredictable, our assessment of them may change, and resolution of them could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. We do not currently expect the resolution of such matters to materially affect the consolidated financial position, results of operations, or cash flows of the Company. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 12. Retirement Benefits Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the three months ended June 30, 2020 and 2019, respectively, follow: U.S. Pension Plans Non-U.S. Pension Plans Other Benefit Plans Three Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 3 $ 3 $ 294 $ 330 $ — $ 1 Interest cost 2,388 2,963 343 479 133 175 Expected return on plan assets ( 3,708 ) ( 3,153 ) ( 116 ) ( 170 ) — — Amortization of prior service cost — — ( 4 ) ( 14 ) — — Net periodic benefit (credit) cost $ ( 1,317 ) $ ( 187 ) $ 517 $ 625 $ 133 $ 176 Net periodic benefit (credit) cost for the six months ended June 30, 2020 and 2019, respectively, follow: U.S. Pension Plans Non-U.S. Pension Plans Other Benefit Plans Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 6 $ 5 $ 579 $ 611 $ 1 $ 1 Interest cost 4,775 5,926 673 948 265 351 Expected return on plan assets ( 7,416 ) ( 6,305 ) ( 228 ) ( 336 ) — — Amortization of prior service cost — — ( 9 ) ( 9 ) — — Net periodic benefit (credit) cost $ ( 2,635 ) $ ( 374 ) $ 1,015 $ 1,214 $ 266 $ 352 Interest cost, expected return on plan assets and amortization of prior service cost are recorded in Miscellaneous expense (income), net on the condensed consolidated statement of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation On May 3, 2018, our shareholders approved the 2018 Omnibus Incentive Plan (the “Plan”), which was adopted by the Board of Directors on February 22, 2018. The Plan’s purpose is to promote the Company’s long-term financial interests and growth by attracting, retaining and motivating high-quality key employees and directors, motivating such employees and directors to achieve the Company’s short- and long-range performance goals and objectives, and thereby align their interests with those of the Company’s shareholders. The Plan reserves 4,500,000 shares of common stock to be issued for grants of several different types of long-term incentives including stock options, stock appreciation rights, restricted awards, performance awards, other common stock-based awards, and dividend equivalent rights. The Plan replaced the 2013 Omnibus Incentive Plan (the “Previous Plan”), and no future grants may be made under the Previous Plan. However, any outstanding awards or grants made under the Previous Plan will continue until the end of their specified terms. In the first half of 2020, our Board of Directors granted 0.3 million stock options, 0.2 million performance share units, and 0.2 million restricted stock units under the Plan. We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following table details the weighted-average grant-date fair values and the assumptions used for estimating the fair values of stock option grants made during the six months ended June 30, 2020: Stock Options Weighted-average grant-date fair value $ 5.28 Expected life, in years 5.2 Risk-free interest rate 1.4 % Expected volatility 35.1 % The weighted average grant date fair value of our performance share units granted in the six months ended June 30, 2020, was $ 14.64 . We measure the fair value of performance share units based on the closing market price of our common stock on the date of the grant. These shares are evaluated each reporting period for respective attainment rates against the performance criteria. The weighted-average grant date fair value of our restricted share units granted in the six months ended June 30, 2020, was $ 14.64 . We measure the fair value of restricted share units based on the closing market price of our common stock on the date of the grant. The restricted share units vest over three year s. We recognized stock-based compensation expense of $ 2.7 million and $ 5.5 million for the three and six months ended June 30, 2020, respectively, and $ 2.9 million and $ 5.6 million and for the three and six months ended June 30, 2019, respectively. At June 30, 2020, unearned compensation cost related to the unvested portion of all stock-based compensation awards was approximately $ 11.6 million and is expected to be recognized over the remaining vesting period of the respective grants, through the second quarter of 2023. |
Restructuring And Optimization
Restructuring And Optimization Programs | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Optimization Programs [Abstract] | |
Restructuring And Optimization Programs | 14. Restructuring and Optimization Programs Total restructuring charges were $ 8.6 million and $ 9.8 million for the three and six months ended June 30, 2020, respectively, and $ 4.1 million and $ 5.8 million for the three and six months ended June 30, 2019, respectively. As discussed in Note 4, our Tile Coatings business was classified as held-for-sale during the fourth quarter of 2019. As such, there were additional restructuring charges of $ 1.7 million and $ 2.0 million for the three and six months ended June 30, 2020, respectively, and $ 6.2 million and $ 6.6 million for the three and six months ended June 30, 2019, respectively classified as Net income from discontinued operations, net of income taxes. Americas Manufacturing Optimization Plan In the second quarter of 2019, we developed our Americas Manufacturing optimization plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. The Americas Manufacturing Optimization plan is focused on the construction of a new manufacturing center of excellence located in Villagran, Mexico. We are in the process of consolidating two plants located in the United States and two sites in Latin America into the expanded Villagran location. As a result of these actions, the Company expects to incur total charges of approximately $ 8.7 million, substantially all of which will be for severance costs expected. The remaining activities of the program are expected to be recognized within the next 12 months. Charges associated with the program were $ 0.8 million and $ 1.0 million for the three and six months ended June 30, 2020, respectively, and $ 3.5 million and $ 3.9 million for the three and six months ended June 30, 2019, respectively. Global Optimization Plan The program involves our global operations and certain functions and initiatives to increase operational efficiencies, some of which is associated with integration of our recent acquisitions. Actions associated with the Global Optimization plan were substantially completed during 2020, and as such, we do not anticipate material charges related to this plan for the remainder of 2020. Charges associated with the program were $ 7.8 million and $ 8.8 million for the three and six months ended June 30, 2020, respectively, and $ 0.6 million and $ 1.9 million for the three and six months ended June 30, 2019, respectively. The charges associated with these programs are further summarized below. Employee Other (Dollars in thousands) Severance Costs Total Balances at December 31, 2019 $ 747 $ 1,492 $ 2,239 Restructuring charges 7,832 1,952 9,784 Cash payments ( 872 ) ( 1,996 ) ( 2,868 ) Non-cash items ( 9 ) ( 7 ) ( 16 ) Balances at June 30, 2020 $ 7,698 $ 1,441 $ 9,139 We expect to make cash payments to settle the remaining liability for employee severance benefits and other costs over the next twelve month s, except where legal or contractual obligations would require it to extend beyond that period. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 15. Leases The Company has leases for equipment, office space, plant sites and distribution centers. Certain of these leases include options to extend the lease and some include options to terminate the lease early. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. There are no leases that have not yet commenced that create significant rights and obligations for the Company. The components of lease cost are shown below: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Income Statement Location Operating lease cost (1) $ 1,204 $ 1,286 $ 2,463 $ 2,646 Selling, general and administrative expenses Operating lease cost (2) 1,606 2,292 3,737 4,526 Cost of sales Finance lease cost Amortization of right-of-use assets 64 62 136 113 Cost of sales Interest of lease liabilities 7 3 14 6 Interest expense Net lease cost $ 2,881 $ 3,643 $ 6,350 $ 7,291 (1) Included in operating lease cost is $ 0.2 million and $ 0.4 million of short-term lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million for the three and six months ended June 30, 2019 and $ 0.1 million and $ 0.2 million of variable lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively. (2) Included in operating lease cost is $ 0.7 million and $ 1.3 million of short-term lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively, and $ 0.1 million and $ 0.4 million of variable lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million of variable lease costs for the three and six months ended June 30, 2019, respectively. Supplemental balance sheet information related to leases is shown below: June 30, December 31, (Dollars in thousands) 2020 2019 Balance Sheet Location Assets Operating leased assets $ 15,042 $ 20,088 Operating leased assets Finance leased assets (1) 795 859 Property, plant and equipment, net Total leased assets $ 15,837 $ 20,947 Liabilities Current Operating $ 5,349 $ 6,515 Accrued expenses and other current liabilities Finance 512 438 Loans payable and current portion of long-term debt Noncurrent Operating 9,716 14,474 Operating lease non-current liabilities Finance 1,780 1,867 Long-term debt, less current portion Total lease liabilities $ 17,357 $ 23,294 (1) Finance leases are net of accumulated depreciation of $ 3.4 million and $ 3.4 million for June 30, 2020 and December 31, 2019, respectively. Supplemental cash flow information related to leases are shown below: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 7 $ 3 $ 14 $ 6 Operating cash flows from operating leases 1,808 2,409 3,827 4,669 Financing cash flows from finance leases 77 57 142 102 Leased assets obtained in exchange for new finance lease liabilities 51 89 155 218 Leased assets obtained in exchange for new operating lease liabilities 1,063 184 2,562 24,219 June 30, 2020 Weighted-average remaining lease term (years) Operating leases 3.9 Finance leases 5.5 Weighted-average discount rate Operating leases 4.2 % Finance leases 5.2 % Maturities of lease liabilities are shown below as of June 30, 2020: (Dollars in thousands) Finance Leases Operating Leases Remaining in 2020 $ 316 $ 3,488 2021 565 5,518 2022 545 3,314 2023 476 1,793 2024 372 866 2025 290 644 Thereafter 418 1,688 Net minimum lease payments $ 2,982 $ 17,311 Less: interest 690 2,246 Present value of lease liabilities $ 2,292 $ 15,065 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 16. Earnings Per Share Details of the calculation of basic and diluted earnings per share are shown below: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share amounts) 2020 2019 2020 2019 Basic earnings (loss) per share computation: Income (loss) from continuing operations $ ( 1,926 ) $ 11,361 $ 13,986 $ 20,162 Less: Net income attributable to noncontrolling interests from continuing operations 309 193 342 362 Net income (loss) attributable to Ferro Corporation from continuing operations ( 2,235 ) 11,168 13,644 19,800 Income (loss) from discontinued operations, net of income taxes ( 3,238 ) ( 252 ) ( 3,017 ) 4,825 Less: Net income attributable to noncontrolling interests from discontinued operations 67 45 44 150 Net income (loss) attributable to Ferro Corporation from discontinued operations ( 3,305 ) ( 297 ) ( 3,061 ) 4,675 Total $ ( 5,540 ) $ 10,871 $ 10,583 $ 24,475 Weighted-average common shares outstanding 82,246 81,932 82,171 82,206 Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders $ ( 0.03 ) $ 0.13 $ 0.17 $ 0.24 Diluted earnings (loss) per share computation: Net income (loss) attributable to Ferro Corporation from continuing operations $ ( 2,235 ) $ 11,168 $ 13,644 $ 19,800 Net income (loss) attributable to Ferro Corporation from discontinued operations ( 3,305 ) ( 297 ) ( 3,061 ) 4,675 Total $ ( 5,540 ) $ 10,871 $ 10,583 $ 24,475 Weighted-average common shares outstanding 82,246 81,932 82,171 82,206 Assumed exercise of stock options 543 502 799 551 Assumed satisfaction of restricted stock unit conditions 93 157 109 208 Assumed satisfaction of performance share unit conditions 45 87 200 90 Weighted-average diluted shares outstanding 82,927 82,678 83,279 83,055 Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders $ ( 0.03 ) $ 0.13 $ 0.16 $ 0.23 The number of anti-dilutive shares were 2.7 million and 2.3 million for the three and six months ended June 30, 2020, respectively, and 2.3 million and 2.2 million for the three and six months ended June 30, 2019, respectively. These shares are excluded from the calculation of diluted earnings per share due to their anti-dilutive impact. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2020 | |
Share Repurchase Program [Abstract] | |
Share Repurchase Program | 17. Share Repurchase Program The Company’s Board of Directors has approved a share repurchase program under which the Company is authorized to repurchase up to $ 150 million of the Company’s outstanding shares of common stock on the open market, including through a Rule 10b5-1 plan, or in privately negotiated transactions. The timing and amount of shares to be repurchased will be determined by the Company, based on evaluation of market and business conditions, share price, and other factors. The share repurchase programs do not obligate the Company to repurchase any dollar amount or number of common shares, and may be suspended or discontinued at any time. As of June 30, 2020, $ 46.2 million re mains authorized under the program for the repurchase of common stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 18. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended June 30, Postretirement Foreign Net Gain (Loss) Benefit Liability Currency on Cash Flow (Dollars in thousands) Adjustments Items Hedges Total Balances at March 31, 2019 $ 1,126 $ ( 99,788 ) $ ( 7,611 ) $ ( 106,273 ) Other comprehensive income (loss) before reclassifications, before tax — 3,478 ( 11,521 ) ( 8,043 ) Reclassification to earnings: Cash flow hedge income, before tax — — 1,602 1,602 Current period other comprehensive income (loss), before tax — 3,478 ( 9,919 ) ( 6,441 ) Tax effect — ( 511 ) ( 2,570 ) ( 3,081 ) Current period other comprehensive income (loss), net of tax — 3,989 ( 7,349 ) ( 3,360 ) Balances at June 30, 2019 $ 1,126 $ ( 95,799 ) $ ( 14,960 ) $ ( 109,633 ) Balances at March 31, 2020 $ 1,206 $ ( 115,847 ) $ ( 22,047 ) $ ( 136,688 ) Other comprehensive income (loss) before reclassifications, before tax — 3,388 ( 5,836 ) ( 2,448 ) Reclassification to earnings: Cash flow hedge income, before tax — — 4,177 4,177 Current period other comprehensive income (loss), before tax — 3,388 ( 1,659 ) 1,729 Tax effect — ( 505 ) ( 99 ) ( 604 ) Current period other comprehensive income (loss), net of tax — 3,893 ( 1,560 ) 2,333 Balances at June 30, 2020 $ 1,206 $ ( 111,954 ) $ ( 23,607 ) $ ( 134,355 ) Six Months Ended June 30, Postretirement Foreign Net Loss Benefit Liability Currency on Cash (Dollars in thousands) Adjustments Items Flow Hedges Total Balances at December 31, 2018 $ 1,126 $ ( 103,190 ) $ ( 3,297 ) $ ( 105,361 ) Other comprehensive income (loss) before reclassifications, before tax — 7,514 ( 10,548 ) ( 3,034 ) Reclassification to earnings: Cash flow hedge loss, before tax — — ( 5,152 ) ( 5,152 ) Current period other comprehensive income (loss), before tax — 7,514 ( 15,700 ) ( 8,186 ) Tax effect — 123 ( 4,037 ) ( 3,914 ) Current period other comprehensive income (loss), net of tax — 7,391 ( 11,663 ) ( 4,272 ) Balances at June 30, 2019 $ 1,126 $ ( 95,799 ) $ ( 14,960 ) $ ( 109,633 ) Balances at December 31, 2019 $ 1,206 $ ( 97,575 ) $ ( 13,007 ) $ ( 109,376 ) Other comprehensive loss before reclassifications, before tax — ( 14,449 ) ( 13,452 ) ( 27,901 ) Reclassification to earnings: Cash flow hedge loss, before tax — — ( 115 ) ( 115 ) Current period other comprehensive loss, before tax — ( 14,449 ) ( 13,567 ) ( 28,016 ) Tax effect — ( 70 ) ( 2,967 ) ( 3,037 ) Current period other comprehensive loss, net of tax — ( 14,379 ) ( 10,600 ) ( 24,979 ) Balances at June 30, 2020 $ 1,206 $ ( 111,954 ) $ ( 23,607 ) $ ( 134,355 ) |
Reporting For Segments
Reporting For Segments | 6 Months Ended |
Jun. 30, 2020 | |
Reporting For Segments [Abstract] | |
Reporting For Segments | 19. Reporting for Segments As discussed in Note 4, during the fourth quarter of 2019, we entered into a definitive agreement to sell our Tile Coatings business which has historically been the majority of our Performance Coatings reportable segment. Substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets and results are included within discontinued operation in the consolidated statement of operations for all periods presented. The retained assets, liabilities and operations of the Performance Coatings reportable segment are reflected within our Functional Coatings reportable segment. Net sales to external customers by segment are presented in the table below. Sales between segments were not material. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Functional Coatings $ 131,672 $ 163,692 $ 287,107 $ 330,718 Color Solutions 73,129 97,266 170,020 193,622 Total net sales $ 204,801 $ 260,958 $ 457,127 $ 524,340 Each segment’s gross profit and reconciliation to income before income taxes are presented in the table below: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Functional Coatings $ 36,119 $ 49,307 $ 83,936 $ 97,537 Color Solutions 26,985 29,702 60,772 58,098 Other cost of sales 640 121 ( 226 ) 1,354 Total gross profit 63,744 79,130 144,482 156,989 Selling, general and administrative expenses 50,541 53,249 106,587 110,180 Restructuring and impairment charges 8,619 4,057 9,784 5,797 Other expense, net 6,310 7,810 8,808 15,304 Income before income taxes $ ( 1,726 ) $ 14,014 $ 19,303 $ 25,708 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Jun. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company. |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted We are currently evaluating the impact on our financial statements of the following ASUs: Standard Description ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , issued March, 2020 Provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU are effective for all entities through December 31, 2022. ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans , issued August, 2018 Modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This ASU is effective for fiscal years beginning after December 15, 2020 and is to be applied using a retrospective approach for all periods presented. Early adoption is permitted. No other new accounting pronouncements issued had, or are expected to have, a material impact on the Company’s consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue [Abstract] | |
Revenues Disaggregated By Geography And Reportable Segment | Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2020, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings 51,071 52,194 21,733 6,674 131,672 Color Solutions 27,874 30,520 9,110 5,625 73,129 Total net sales $ 78,945 $ 82,714 $ 30,843 $ 12,299 $ 204,801 Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2019, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings 74,997 50,938 24,700 13,057 163,692 Color Solutions 37,044 43,142 9,011 8,069 97,266 Total net sales $ 112,041 $ 94,080 $ 33,711 $ 21,126 $ 260,958 Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2020, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings $ 126,928 $ 98,888 $ 43,489 $ 17,802 $ 287,107 Color Solutions 65,763 71,679 18,406 14,172 170,020 Total net sales $ 192,691 $ 170,567 $ 61,895 $ 31,974 $ 457,127 Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2019, follow: (Dollars in thousands) EMEA United States Asia Pacific Latin America Total Functional Coatings $ 153,262 $ 102,917 $ 47,598 $ 26,941 $ 330,718 Color Solutions 72,611 86,741 17,836 16,434 193,622 Total net sales $ 225,873 $ 189,658 $ 65,434 $ 43,375 $ 524,340 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations [Abstract] | |
Summary Of Discontinued Operations | The table below summarizes results for the Tile Coatings business for the three and six months ended June 30, 2020 and 2019 which are reflected in our consolidated statements of operations as discontinued operations. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt. Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Net sales $ 75,254 $ 132,944 $ 190,004 $ 257,110 Cost of sales 59,073 103,816 145,975 203,985 Gross profit 16,181 29,128 44,029 53,125 Selling, general and administrative expenses 15,542 18,396 34,350 33,545 Restructuring and impairment charges 1,758 6,203 2,037 6,590 Interest expense 2,517 2,969 4,748 5,958 Interest earned ( 129 ) ( 52 ) ( 153 ) ( 67 ) Foreign currency losses (gains), net ( 804 ) ( 663 ) 4,961 ( 1,889 ) Miscellaneous expense, net 705 41 1,247 270 Income (loss) from discontinued operations before income taxes ( 3,408 ) 2,234 ( 3,161 ) 8,718 Income tax expense (benefit) ( 170 ) 2,486 ( 144 ) 3,893 Income (loss) from discontinued operations, net of income taxes ( 3,238 ) ( 252 ) ( 3,017 ) 4,825 Less: Net income attributable to noncontrolling interests 67 45 44 150 Net income (loss) attributable to Tile Coatings business $ ( 3,305 ) $ ( 297 ) $ ( 3,061 ) $ 4,675 The following table summarizes the assets and liabilities which are classified as held-for-sale at June 30, 2020 and December 31, 2019: June 30, December 31, (Dollars in thousands) 2020 2019 Cash and cash equivalents $ 8,200 $ 8,200 Accounts receivable, net 142,334 156,645 Inventories 101,084 101,127 Other receivables 24,884 22,442 Other current assets 3,074 3,006 Current assets held-for-sale 279,576 291,420 Property, plant and equipment, net 97,130 96,762 Goodwill 3 3 Amortizable intangible assets, net 39,720 39,692 Deferred income taxes 14,034 14,425 Other non-current assets 6,502 7,049 Non-current assets held-for-sale 157,389 157,931 Total assets held-for-sale $ 436,965 $ 449,351 Loans payable and current portion of long-term debt $ 3,118 $ 3,678 Accounts payable 68,001 96,998 Accrued payrolls 6,740 4,838 Accrued expenses and other current liabilities 25,607 28,266 Current liabilities held-for-sale 103,466 133,780 Long-term debt, less current portion 25,755 25,805 Postretirement and pension liabilities 8,002 7,473 Other non-current liabilities 5,429 5,063 Non-current liabilities held-for-sale 39,186 38,341 Total liabilities held-for-sale $ 142,652 $ 172,121 The following table summarizes cash flow data relating to discontinued operations for the six months ended June 30, 2020 and 2019: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Depreciation $ — $ 5,833 Amortization of intangible assets — 1,594 Capital expenditures ( 1,909 ) ( 7,502 ) Non-cash operating activities - goodwill impairment — 5,963 Non-cash operating activities - restructuring and impairment charges 1,070 115 Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end 507 1,322 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventories [Abstract] | |
Inventories | June 30, December 31, (Dollars in thousands) 2020 2019 Raw materials $ 88,658 $ 80,176 Work in process 50,247 49,717 Finished goods 151,754 134,583 Total inventories $ 290,659 $ 264,476 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Other Intangible Assets [Abstract] | |
Details And Activity Of Goodwill By Segment | Functional Color (Dollars in thousands) Coatings Solutions Total Goodwill, net at December 31, 2019 $ 121,902 $ 50,307 $ 172,209 Foreign currency adjustments ( 655 ) ( 9 ) ( 664 ) Goodwill, net at June 30, 2020 $ 121,247 $ 50,298 $ 171,545 |
Schedule Of Impairment Of Goodwill | June 30, December 31, (Dollars in thousands) 2020 2019 Goodwill, gross $ 230,012 $ 230,676 Accumulated impairment ( 58,467 ) ( 58,467 ) Goodwill, net $ 171,545 $ 172,209 |
Details Of Amortizable Intangible Assets | June 30, December 31, (Dollars in thousands) 2020 2019 Gross amortizable intangible assets: Patents $ 5,424 $ 5,434 Land rights 2,859 2,900 Technology/know-how and other 114,480 112,940 Customer relationships 66,022 66,454 Total gross amortizable intangible assets 188,785 187,728 Accumulated amortization: Patents ( 5,403 ) ( 5,413 ) Land rights ( 1,398 ) ( 1,378 ) Technology/know-how and other ( 57,011 ) ( 50,973 ) Customer relationships ( 15,642 ) ( 14,831 ) Total accumulated amortization ( 79,454 ) ( 72,595 ) Amortizable intangible assets, net $ 109,331 $ 115,133 |
Schedule Of Indefinite-Lived Intangible Assets | June 30, December 31, (Dollars in thousands) 2020 2019 Indefinite-lived intangibles assets: Trade names and trademarks $ 12,693 $ 12,682 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Loans Payable And Current Portion Of Long-Term Debt | June 30, December 31, (Dollars in thousands) 2020 2019 Loans payable $ 11,602 $ — Current portion of long-term debt 8,777 8,703 Current portion of long-term debt $ 20,379 $ 8,703 |
Summary Of Long-Term Debt | June 30, December 31, (Dollars in thousands) 2020 2019 Term loan facility, net of unamortized issuance costs, maturing 2024 (1) $ 797,236 $ 801,764 Revolving credit facility 16,617 — Capital lease obligations 2,292 2,305 Other notes 3,425 3,496 Total long-term debt 819,570 807,565 Current portion of long-term debt ( 8,777 ) ( 8,703 ) Long-term debt, less current portion $ 810,793 $ 798,862 (1) The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $ 4.3 million at June 30, 2020, and $ 3.9 million at December 31, 2019. |
Schedule Of Trade Accounts Receivable In International Receivable Sales Programs | Six Months Ended June 30, (Dollars in thousands) 2020 2019 Trade accounts receivable sold to financial institutions $ 91,048 $ 20,337 Cash proceeds from financial institutions (1) 58,794 12,634 (1) In the six months ended June 30, 2020 and 2019, our Tile Coatings business received cash proceeds from financial institutions of $ 47.3 million and $ 67.6 million, respectively. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations . |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Instruments Assets (Liabilities) Measured At Fair Value | June 30, 2020 Carrying Fair Value (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 62,031 $ 62,031 $ 62,031 $ — $ — Loans payable ( 11,602 ) ( 11,602 ) — ( 11,602 ) — Term loan facility - Amended Credit Facility (1) ( 797,236 ) ( 775,050 ) — ( 775,050 ) — Revolving credit facility ( 16,617 ) ( 17,484 ) — ( 17,484 ) — Other long-term notes payable ( 3,425 ) ( 1,442 ) — ( 1,442 ) — Cross currency swaps 21,246 21,246 — 21,246 — Interest rate swaps ( 27,517 ) ( 27,517 ) — ( 27,517 ) — Foreign currency forward contracts, net 1,696 1,696 — 1,696 — December 31, 2019 Carrying Fair Value (Dollars in thousands) Amount Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 96,202 $ 96,202 $ 96,202 $ — $ — Term loan facility - Amended Credit Facility (1) ( 801,764 ) ( 799,750 ) — ( 799,750 ) — Other long-term notes payable ( 3,496 ) ( 1,557 ) — ( 1,557 ) — Cross currency swaps 22,111 22,111 — 22,111 — Interest rate swaps ( 14,698 ) ( 14,698 ) — ( 14,698 ) — Foreign currency forward contracts, net 601 601 — 601 — (1) The carrying value of the term loan facility is net of unamortized debt issuance costs of $ 4.3 million and $ 3.9 million for the period ended June 30, 2020, and December 31, 2019, respectively. |
Schedule Of Loss Recognized In AOCI And The Amount Of Gain (Loss) Reclassified Into Earnings | The amount of loss recognized in AOCL and the amount of loss (gain) reclassified into earnings for the three months ended June 30, 2020 and 2019, follow: Amount of Loss (Gain) Amount of Loss Reclassified from Location of Gain (Loss) Recognized in AOCL AOCL into Income Reclassified from (Dollars in thousands) 2020 2019 2020 2019 AOCL into Income Interest rate swaps $ ( 1,934 ) $ ( 6,813 ) $ ( 824 ) $ 36 Interest expense Cross currency swaps ( 3,902 ) ( 4,708 ) 851 1,528 Interest expense $ 27 $ 1,564 Total Interest expense Cross currency swaps ( 4,204 ) ( 3,166 ) Foreign currency losses, net $ ( 4,204 ) $ ( 3,166 ) Total Foreign currency losses, net The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the six months ended June 30, 2020 and 2019, follow: Amount of Loss (Gain) Amount of Gain (Loss) Reclassified from Location of Gain (Loss) Recognized in AOCL AOCL into Income Reclassified from (Dollars in thousands) 2020 2019 2020 2019 AOCL into Income Interest rate swaps $ ( 14,808 ) $ ( 10,920 ) $ ( 1,322 ) $ 214 Interest expense Cross currency swaps 1,356 372 2,019 3,160 Interest expense $ 697 $ 3,374 Total Interest expense Cross currency swap ( 582 ) 1,778 Foreign currency losses, net $ ( 582 ) $ 1,778 Total Foreign currency losses, net |
Effect On Derivative Instruments On Consolidated Statements Of Operations | Three months ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Interest expense $ 6,177 $ 6,281 $ 11,707 $ 12,576 Foreign currency losses, net 1,143 2,043 ( 172 ) 4,007 |
Loss On Net Investment Hedges Recognized In AOCI, Amount Reclassified Into Earnings And Gain Recognized In Income On Derivative | The amount of loss on net investment hedges recognized in AOCL, the amount reclassified into earnings and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the three months ended June 30, 2020 and 2019, follow: Amount of Gain Amount of Gain Recognized in Income on Amount of Loss Reclassified from Derivative (Amount Excluded Location of Gain Recognized in AOCL AOCL into Income from Effectiveness Testing) in Earnings (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Cross currency swaps $ ( 1,569 ) $ ( 1,260 ) $ — $ — $ 612 $ 949 Interest expense The amount of gain on net investment hedges recognized in AOCL, the amount reclassified into earnings and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the six months ended June 30, 2020 and 2019, follow: Amount of Gain Amount of Gain Recognized in Income on Amount of Gain Reclassified from Derivative (Amount Excluded Location of Gain Recognized in AOCL AOCL into Income from Effectiveness Testing) in Earnings (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Cross currency swaps $ 1,090 $ 2,477 $ — $ — $ 1,392 $ 1,950 Interest expense |
Fair Value Of Derivative Instruments On Consolidated Balance Sheets | June 30, December 31, (Dollars in thousands) 2020 2019 Balance Sheet Location Asset derivatives: Cross currency swaps $ 1,923 $ 6,711 Other current assets Cross currency swaps 19,323 15,400 Other non-current assets Foreign currency forward contracts 2,539 1,474 Other current assets Liability derivatives: Interest rate swaps $ ( 8,186 ) $ ( 3,723 ) Accrued expenses and other current liabilities Interest rate swaps ( 19,331 ) ( 10,975 ) Other non-current liabilities Foreign currency forward contracts ( 843 ) ( 873 ) Accrued expenses and other current liabilities |
Not Designated As Hedging Instrument [Member] | |
Effect On Derivative Instruments On Consolidated Statements Of Operations | Amount of Gain (Loss) Amount of Gain Recognized in Earnings Recognized in Earnings Three Months Ended Six Months Ended June 30, June 30, Location of Gain (Loss) in Earnings (Dollars in thousands) 2020 2019 2020 2019 Foreign currency forward contracts $ 142 $ ( 1,497 ) $ 410 $ 27 Foreign currency losses, net |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost (Credit) | Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the three months ended June 30, 2020 and 2019, respectively, follow: U.S. Pension Plans Non-U.S. Pension Plans Other Benefit Plans Three Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 3 $ 3 $ 294 $ 330 $ — $ 1 Interest cost 2,388 2,963 343 479 133 175 Expected return on plan assets ( 3,708 ) ( 3,153 ) ( 116 ) ( 170 ) — — Amortization of prior service cost — — ( 4 ) ( 14 ) — — Net periodic benefit (credit) cost $ ( 1,317 ) $ ( 187 ) $ 517 $ 625 $ 133 $ 176 Net periodic benefit (credit) cost for the six months ended June 30, 2020 and 2019, respectively, follow: U.S. Pension Plans Non-U.S. Pension Plans Other Benefit Plans Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 2020 2019 Service cost $ 6 $ 5 $ 579 $ 611 $ 1 $ 1 Interest cost 4,775 5,926 673 948 265 351 Expected return on plan assets ( 7,416 ) ( 6,305 ) ( 228 ) ( 336 ) — — Amortization of prior service cost — — ( 9 ) ( 9 ) — — Net periodic benefit (credit) cost $ ( 2,635 ) $ ( 374 ) $ 1,015 $ 1,214 $ 266 $ 352 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Details Of Weighted-Average Grant-Date Fair Values And Assumptions Used For Estimating Fair Values | Stock Options Weighted-average grant-date fair value $ 5.28 Expected life, in years 5.2 Risk-free interest rate 1.4 % Expected volatility 35.1 % |
Restructuring And Optimizatio_2
Restructuring And Optimization Programs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring And Optimization Programs [Abstract] | |
Summary Of Accruals Related To Restructuring And Optimization Programs | Employee Other (Dollars in thousands) Severance Costs Total Balances at December 31, 2019 $ 747 $ 1,492 $ 2,239 Restructuring charges 7,832 1,952 9,784 Cash payments ( 872 ) ( 1,996 ) ( 2,868 ) Non-cash items ( 9 ) ( 7 ) ( 16 ) Balances at June 30, 2020 $ 7,698 $ 1,441 $ 9,139 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components Of Lease Costs | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Income Statement Location Operating lease cost (1) $ 1,204 $ 1,286 $ 2,463 $ 2,646 Selling, general and administrative expenses Operating lease cost (2) 1,606 2,292 3,737 4,526 Cost of sales Finance lease cost Amortization of right-of-use assets 64 62 136 113 Cost of sales Interest of lease liabilities 7 3 14 6 Interest expense Net lease cost $ 2,881 $ 3,643 $ 6,350 $ 7,291 (1) Included in operating lease cost is $ 0.2 million and $ 0.4 million of short-term lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million for the three and six months ended June 30, 2019 and $ 0.1 million and $ 0.2 million of variable lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively. (2) Included in operating lease cost is $ 0.7 million and $ 1.3 million of short-term lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively, and $ 0.1 million and $ 0.4 million of variable lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million of variable lease costs for the three and six months ended June 30, 2019, respectively. |
Supplemental Balance Sheet Information Related To Leases | June 30, December 31, (Dollars in thousands) 2020 2019 Balance Sheet Location Assets Operating leased assets $ 15,042 $ 20,088 Operating leased assets Finance leased assets (1) 795 859 Property, plant and equipment, net Total leased assets $ 15,837 $ 20,947 Liabilities Current Operating $ 5,349 $ 6,515 Accrued expenses and other current liabilities Finance 512 438 Loans payable and current portion of long-term debt Noncurrent Operating 9,716 14,474 Operating lease non-current liabilities Finance 1,780 1,867 Long-term debt, less current portion Total lease liabilities $ 17,357 $ 23,294 (1) Finance leases are net of accumulated depreciation of $ 3.4 million and $ 3.4 million for June 30, 2020 and December 31, 2019, respectively. |
Supplemental Cash Flow Information Related To Leases | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 7 $ 3 $ 14 $ 6 Operating cash flows from operating leases 1,808 2,409 3,827 4,669 Financing cash flows from finance leases 77 57 142 102 Leased assets obtained in exchange for new finance lease liabilities 51 89 155 218 Leased assets obtained in exchange for new operating lease liabilities 1,063 184 2,562 24,219 June 30, 2020 Weighted-average remaining lease term (years) Operating leases 3.9 Finance leases 5.5 Weighted-average discount rate Operating leases 4.2 % Finance leases 5.2 % |
Maturities Of Lease Liabilities | (Dollars in thousands) Finance Leases Operating Leases Remaining in 2020 $ 316 $ 3,488 2021 565 5,518 2022 545 3,314 2023 476 1,793 2024 372 866 2025 290 644 Thereafter 418 1,688 Net minimum lease payments $ 2,982 $ 17,311 Less: interest 690 2,246 Present value of lease liabilities $ 2,292 $ 15,065 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculations Of Basic And Diluted Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except per share amounts) 2020 2019 2020 2019 Basic earnings (loss) per share computation: Income (loss) from continuing operations $ ( 1,926 ) $ 11,361 $ 13,986 $ 20,162 Less: Net income attributable to noncontrolling interests from continuing operations 309 193 342 362 Net income (loss) attributable to Ferro Corporation from continuing operations ( 2,235 ) 11,168 13,644 19,800 Income (loss) from discontinued operations, net of income taxes ( 3,238 ) ( 252 ) ( 3,017 ) 4,825 Less: Net income attributable to noncontrolling interests from discontinued operations 67 45 44 150 Net income (loss) attributable to Ferro Corporation from discontinued operations ( 3,305 ) ( 297 ) ( 3,061 ) 4,675 Total $ ( 5,540 ) $ 10,871 $ 10,583 $ 24,475 Weighted-average common shares outstanding 82,246 81,932 82,171 82,206 Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders $ ( 0.03 ) $ 0.13 $ 0.17 $ 0.24 Diluted earnings (loss) per share computation: Net income (loss) attributable to Ferro Corporation from continuing operations $ ( 2,235 ) $ 11,168 $ 13,644 $ 19,800 Net income (loss) attributable to Ferro Corporation from discontinued operations ( 3,305 ) ( 297 ) ( 3,061 ) 4,675 Total $ ( 5,540 ) $ 10,871 $ 10,583 $ 24,475 Weighted-average common shares outstanding 82,246 81,932 82,171 82,206 Assumed exercise of stock options 543 502 799 551 Assumed satisfaction of restricted stock unit conditions 93 157 109 208 Assumed satisfaction of performance share unit conditions 45 87 200 90 Weighted-average diluted shares outstanding 82,927 82,678 83,279 83,055 Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders $ ( 0.03 ) $ 0.13 $ 0.16 $ 0.23 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes In Accumulated Other Comprehensive Loss By Component, Net Of Tax | Three Months Ended June 30, Postretirement Foreign Net Gain (Loss) Benefit Liability Currency on Cash Flow (Dollars in thousands) Adjustments Items Hedges Total Balances at March 31, 2019 $ 1,126 $ ( 99,788 ) $ ( 7,611 ) $ ( 106,273 ) Other comprehensive income (loss) before reclassifications, before tax — 3,478 ( 11,521 ) ( 8,043 ) Reclassification to earnings: Cash flow hedge income, before tax — — 1,602 1,602 Current period other comprehensive income (loss), before tax — 3,478 ( 9,919 ) ( 6,441 ) Tax effect — ( 511 ) ( 2,570 ) ( 3,081 ) Current period other comprehensive income (loss), net of tax — 3,989 ( 7,349 ) ( 3,360 ) Balances at June 30, 2019 $ 1,126 $ ( 95,799 ) $ ( 14,960 ) $ ( 109,633 ) Balances at March 31, 2020 $ 1,206 $ ( 115,847 ) $ ( 22,047 ) $ ( 136,688 ) Other comprehensive income (loss) before reclassifications, before tax — 3,388 ( 5,836 ) ( 2,448 ) Reclassification to earnings: Cash flow hedge income, before tax — — 4,177 4,177 Current period other comprehensive income (loss), before tax — 3,388 ( 1,659 ) 1,729 Tax effect — ( 505 ) ( 99 ) ( 604 ) Current period other comprehensive income (loss), net of tax — 3,893 ( 1,560 ) 2,333 Balances at June 30, 2020 $ 1,206 $ ( 111,954 ) $ ( 23,607 ) $ ( 134,355 ) Six Months Ended June 30, Postretirement Foreign Net Loss Benefit Liability Currency on Cash (Dollars in thousands) Adjustments Items Flow Hedges Total Balances at December 31, 2018 $ 1,126 $ ( 103,190 ) $ ( 3,297 ) $ ( 105,361 ) Other comprehensive income (loss) before reclassifications, before tax — 7,514 ( 10,548 ) ( 3,034 ) Reclassification to earnings: Cash flow hedge loss, before tax — — ( 5,152 ) ( 5,152 ) Current period other comprehensive income (loss), before tax — 7,514 ( 15,700 ) ( 8,186 ) Tax effect — 123 ( 4,037 ) ( 3,914 ) Current period other comprehensive income (loss), net of tax — 7,391 ( 11,663 ) ( 4,272 ) Balances at June 30, 2019 $ 1,126 $ ( 95,799 ) $ ( 14,960 ) $ ( 109,633 ) Balances at December 31, 2019 $ 1,206 $ ( 97,575 ) $ ( 13,007 ) $ ( 109,376 ) Other comprehensive loss before reclassifications, before tax — ( 14,449 ) ( 13,452 ) ( 27,901 ) Reclassification to earnings: Cash flow hedge loss, before tax — — ( 115 ) ( 115 ) Current period other comprehensive loss, before tax — ( 14,449 ) ( 13,567 ) ( 28,016 ) Tax effect — ( 70 ) ( 2,967 ) ( 3,037 ) Current period other comprehensive loss, net of tax — ( 14,379 ) ( 10,600 ) ( 24,979 ) Balances at June 30, 2020 $ 1,206 $ ( 111,954 ) $ ( 23,607 ) $ ( 134,355 ) |
Reporting For Segments (Tables)
Reporting For Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Reporting For Segments [Abstract] | |
Net Sales To External Customers By Segment | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Functional Coatings $ 131,672 $ 163,692 $ 287,107 $ 330,718 Color Solutions 73,129 97,266 170,020 193,622 Total net sales $ 204,801 $ 260,958 $ 457,127 $ 524,340 |
Segment's Gross Profit And Reconciliations To Income Before Income Taxes | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2020 2019 2020 2019 Functional Coatings $ 36,119 $ 49,307 $ 83,936 $ 97,537 Color Solutions 26,985 29,702 60,772 58,098 Other cost of sales 640 121 ( 226 ) 1,354 Total gross profit 63,744 79,130 144,482 156,989 Selling, general and administrative expenses 50,541 53,249 106,587 110,180 Restructuring and impairment charges 8,619 4,057 9,784 5,797 Other expense, net 6,310 7,810 8,808 15,304 Income before income taxes $ ( 1,726 ) $ 14,014 $ 19,303 $ 25,708 |
Revenue (Revenues Disaggregated
Revenue (Revenues Disaggregated By Geography And Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 204,801 | $ 260,958 | $ 457,127 | $ 524,340 |
Functional Coatings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 131,672 | 163,692 | 287,107 | 330,718 |
Color Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 73,129 | 97,266 | 170,020 | 193,622 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 78,945 | 112,041 | 192,691 | 225,873 |
EMEA [Member] | Functional Coatings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 51,071 | 74,997 | 126,928 | 153,262 |
EMEA [Member] | Color Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 27,874 | 37,044 | 65,763 | 72,611 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 82,714 | 94,080 | 170,567 | 189,658 |
United States [Member] | Functional Coatings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 52,194 | 50,938 | 98,888 | 102,917 |
United States [Member] | Color Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 30,520 | 43,142 | 71,679 | 86,741 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 30,843 | 33,711 | 61,895 | 65,434 |
Asia Pacific [Member] | Functional Coatings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 21,733 | 24,700 | 43,489 | 47,598 |
Asia Pacific [Member] | Color Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 9,110 | 9,011 | 18,406 | 17,836 |
Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 12,299 | 21,126 | 31,974 | 43,375 |
Latin America [Member] | Functional Coatings [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 6,674 | 13,057 | 17,802 | 26,941 |
Latin America [Member] | Color Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 5,625 | $ 8,069 | $ 14,172 | $ 16,434 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Statements Of Operations As Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations, net of income taxes | $ (3,238) | $ (252) | $ (3,017) | $ 4,825 |
Less: Net income attributable to noncontrolling interests | 376 | 238 | 386 | 512 |
Net income (loss) attributable to Tile Coatings business | (5,540) | 10,871 | 10,583 | 24,475 |
Discontinued Operations [Member] | Tile Coatings [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net sales | 75,254 | 132,944 | 190,004 | 257,110 |
Cost of sales | 59,073 | 103,816 | 145,975 | 203,985 |
Gross profit | 16,181 | 29,128 | 44,029 | 53,125 |
Selling, general and administrative expenses | 15,542 | 18,396 | 34,350 | 33,545 |
Restructuring and impairment charges | 1,758 | 6,203 | 2,037 | 6,590 |
Interest expense | 2,517 | 2,969 | 4,748 | 5,958 |
Interest earned | (129) | (52) | (153) | (67) |
Foreign currency losses (gains), net | (804) | (663) | 4,961 | (1,889) |
Miscellaneous expense, net | 705 | 41 | 1,247 | 270 |
Income (loss) from discontinued operations before income taxes | (3,408) | 2,234 | (3,161) | 8,718 |
Income tax expense (benefit) | (170) | 2,486 | (144) | 3,893 |
Income (loss) from discontinued operations, net of income taxes | (3,238) | (252) | (3,017) | 4,825 |
Less: Net income attributable to noncontrolling interests | 67 | 45 | 44 | 150 |
Net income (loss) attributable to Tile Coatings business | $ (3,305) | $ (297) | $ (3,061) | $ 4,675 |
Discontinued Operations (Summ_2
Discontinued Operations (Summary Of Assets And Liabilities As Discontinued Operations) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | $ 8,200 | $ 8,200 | |
Current assets held-for-sale | 279,576 | $ 291,420 | |
Deferred income taxes | 101,114 | 98,714 | |
Non-current assets held-for-sale | 157,389 | 157,931 | |
Current liabilities held-for-sale | 103,466 | 133,780 | |
Non-current liabilities held-for-sale | 39,186 | 38,341 | |
Tile Coatings [Member] | Discontinued Operations, Held-For-Sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 8,200 | 8,200 | |
Accounts receivable, net | 142,334 | 156,645 | |
Inventories | 101,084 | 101,127 | |
Other receivables | 24,884 | 22,442 | |
Other current assets | 3,074 | 3,006 | |
Current assets held-for-sale | 279,576 | 291,420 | |
Property, plant and equipment, net | 97,130 | 96,762 | |
Goodwill | 3 | 3 | |
Amortizable intangible assets, net | 39,720 | 39,692 | |
Deferred income taxes | 14,034 | 14,425 | |
Other non-current assets | 6,502 | 7,049 | |
Non-current assets held-for-sale | 157,389 | 157,931 | |
Total assets held-for-sale | 436,965 | 449,351 | |
Loans payable and current portion of long-term debt | 3,118 | 3,678 | |
Accounts payable | 68,001 | 96,998 | |
Accrued payrolls | 6,740 | 4,838 | |
Accrued expenses and other current liabilities | 25,607 | 28,266 | |
Current liabilities held-for-sale | 103,466 | 133,780 | |
Long-term debt, less current portion | 25,755 | 25,805 | |
Postretirement and pension liabilities | 8,002 | 7,473 | |
Other non-current liabilities | 5,429 | 5,063 | |
Non-current liabilities held-for-sale | 39,186 | 38,341 | |
Total liabilities held-for-sale | $ 142,652 | $ 172,121 |
Discontinued Operations (Summ_3
Discontinued Operations (Summary Of Cash Flow Data Related To Discontinued Operations) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Non-cash investing activities - capital expenditures, consisting of of unpaid capital expenditure liabilities at period end | $ 300 | $ 900 |
Tile Coatings [Member] | Discontinued Operations [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Depreciation | 5,833 | |
Amortization of intangible assets | 1,594 | |
Capital expenditures | (1,909) | (7,502) |
Non-cash operating activities - goodwill impairment | 5,963 | |
Non-cash operating activities - restructuring and impairment charges | 1,070 | 115 |
Non-cash investing activities - capital expenditures, consisting of of unpaid capital expenditure liabilities at period end | $ 507 | $ 1,322 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Inventories [Abstract] | |||||
Terms of precious metals consignment agreements, maximum | 1 year | ||||
Fees under precious metals consignment agreements | $ 0.6 | $ 0.6 | $ 1.7 | $ 1.7 | |
Fair value of precious metals on hand under consignment agreements | $ 77.3 | $ 77.3 | $ 66.2 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventories [Abstract] | ||
Raw materials | $ 88,658 | $ 80,176 |
Work in process | 50,247 | 49,717 |
Finished goods | 151,754 | 134,583 |
Total inventories | $ 290,659 | $ 264,476 |
Property, Plant And Equipment (
Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment net of accumulated depreciation | $ 420.6 | $ 413.8 | |
Unpaid capital expenditure liabilities | 0.3 | $ 0.9 | |
Discontinued Operations, Held-For-Sale [Member] | Tile Coatings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment net of accumulated depreciation | $ 137.8 | $ 136.7 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets (Details And Activity Of Goodwill By Segment) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill, net at beginning | $ 172,209 |
Foreign currency adjustment | (664) |
Goodwill, net at ending | 171,545 |
Functional Coatings [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill, net at beginning | 121,902 |
Foreign currency adjustment | (655) |
Goodwill, net at ending | 121,247 |
Color Solutions [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill, net at beginning | 50,307 |
Foreign currency adjustment | (9) |
Goodwill, net at ending | $ 50,298 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets (Schedule Of Impairment Of Goodwill) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill And Other Intangible Assets [Abstract] | ||
Goodwill, gross | $ 230,012 | $ 230,676 |
Accumulated impairment | (58,467) | (58,467) |
Goodwill, net | $ 171,545 | $ 172,209 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets (Details Of Amortizable Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortization Of Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | $ 188,785 | $ 187,728 |
Total accumulated amortization | (79,454) | (72,595) |
Amortizable intangible assets, net | 109,331 | 115,133 |
Patents [Member] | ||
Amortization Of Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 5,424 | 5,434 |
Total accumulated amortization | (5,403) | (5,413) |
Land Rights [Member] | ||
Amortization Of Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 2,859 | 2,900 |
Total accumulated amortization | (1,398) | (1,378) |
Technology/Know-how And Other [Member] | ||
Amortization Of Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 114,480 | 112,940 |
Total accumulated amortization | (57,011) | (50,973) |
Customer Relationships [Member] | ||
Amortization Of Intangible Assets [Line Items] | ||
Total gross amortizable intangible assets | 66,022 | 66,454 |
Total accumulated amortization | $ (15,642) | $ (14,831) |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets (Schedule Of Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Trade Names and Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 12,693 | $ 12,682 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | Feb. 14, 2017USD ($) | Feb. 14, 2017EUR (€) | |
Debt Instrument [Line Items] | |||||
Additional commitments under the revolving line of credit or term loans | $ 250,000,000 | ||||
Long-term debt | 819,570,000 | $ 807,565,000 | |||
Accrued expenses and other current liabilities | 9,400,000 | 12,800,000 | |||
Other Financing Arrangements [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum available in form of cash or letters of credit | 28,100,000 | 28,100,000 | |||
Additional borrowings available | $ 13,400,000 | 25,000,000 | |||
International Receivable Sales Programs [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount issued | € | € 100,000,000 | ||||
Maturity date | Dec. 31, 2023 | ||||
Outstanding principal amount | $ 14,800,000 | 19,300,000 | |||
Pecentage of cash receivable of sold receivable | 65.00% | ||||
Other receivables | $ 7,200,000 | 6,600,000 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 16,617,000 | ||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.00% | ||||
Applicable margin percentage | 1.50% | 1.50% | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin percentage | 2.50% | 2.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin percentage | 0.50% | 0.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin percentage | 1.50% | 1.50% | |||
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional borrowings available | $ 479,200,000 | ||||
2018 Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings under revolving line of credit | $ 16,600,000 | ||||
Secured Debt [Member] | Secured Euro Term Loan Facility 250 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Term of debt instrument/credit facility | 7 years | ||||
Debt amount issued | € | € 250,000,000 | ||||
Secured Debt [Member] | Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 1.00% | ||||
Applicable margin percentage | 2.25% | 2.25% | |||
Secured Debt [Member] | Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.00% | ||||
Secured Debt [Member] | Secured Term Loan Facility [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable margin percentage | 1.25% | 1.25% | |||
Secured Debt [Member] | Secured Term Loan Facility [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, basis spread on variable rate | 0.50% | ||||
Secured Debt [Member] | Tranche B-1 Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.56% | 2.56% | |||
Long-term debt | $ 347,000,000 | ||||
Secured Debt [Member] | Tranche B-2 Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.56% | 2.56% | |||
Long-term debt | $ 229,700,000 | ||||
Secured Debt [Member] | Tranche B-3 Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.56% | 2.56% | |||
Long-term debt | $ 224,800,000 | ||||
Secured Debt [Member] | Tranche B-1, B-2, And B-3 [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional borrowings available under the term loan facility | $ 0 | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Equal quarterly installments in an amount equal to percentage of the original principal amount of the term loans | 0.25% | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Revolving Line Of Credit 500 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt facility amount | $ 500,000,000 | ||||
Maturity date | Feb. 14, 2023 | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $355 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount issued | $ 355,000,000 | ||||
Maturity date | Feb. 14, 2024 | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $235 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount issued | $ 235,000,000 | ||||
Maturity date | Feb. 14, 2024 | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $230 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt amount issued | $ 230,000,000 | ||||
Maturity date | Feb. 14, 2024 | ||||
Secured Debt [Member] | Amended Credit Facility [Member] | Tranche B-1 Loans [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 4.94% | 4.94% | |||
Secured Debt [Member] | Amended Credit Facility [Member] | Tranche B-2 Loans [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.14% | 2.14% | |||
Secured Debt [Member] | Amended Credit Facility [Member] | Tranche B-3 Loans [Member] | Interest Rate Swaps [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt stated interest rate | 2.48% | 2.48% | |||
Secured Debt [Member] | Credit Facility [Member] | Secured Revolving Line Of Credit 400 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt facility amount | $ 400,000,000 | ||||
Term of debt instrument/credit facility | 5 years | ||||
Secured Debt [Member] | Credit Facility [Member] | Secured Term Loan Facility 357.5 Million [Member] | |||||
Debt Instrument [Line Items] | |||||
Term of debt instrument/credit facility | 7 years | ||||
Debt amount issued | $ 357,500,000 | ||||
U.S. Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Stock pledged as collateral, percentage | 100.00% | ||||
Foreign Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Stock pledged as collateral, percentage | 65.00% | ||||
Discontinued Operations, Held-For-Sale [Member] | Tile Coating Systems [Member] | International Receivable Sales Programs [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal amount | $ 40,400,000 | 52,600,000 | |||
Other receivables | $ 22,700,000 | $ 20,500,000 |
Debt (Loans Payable And Current
Debt (Loans Payable And Current Portion Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 20,379 | $ 8,703 |
Loans Payable [Member] | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | 11,602 | |
Current Portion Of Long-Term Debt [Member] | ||
Short-term Debt [Line Items] | ||
Current portion of long-term debt | $ 8,777 | $ 8,703 |
Debt (Summary Of Long-Term Debt
Debt (Summary Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 819,570 | $ 807,565 | |
Current portion of long-term debt | (8,777) | (8,703) | |
Long-term debt, less current portion | 810,793 | 798,862 | |
Term Loan Facility, Maturing 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | [1] | 797,236 | 801,764 |
Unamortized debt issuance costs | 4,300 | 3,900 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 16,617 | ||
Capital lease obligations [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 2,292 | 2,305 | |
Other notes [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 3,425 | $ 3,496 | |
[1] | The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $ 4.3 million at June 30, 2020, and $ 3.9 million at December 31, 2019. |
Debt (Schedule Of Trade Account
Debt (Schedule Of Trade Accounts Receivable In International Receivable Sales Programs) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | |||
Trade accounts receivable sold to financial institutions | $ 91,048 | $ 20,337 | |
Cash proceeds from financial institutions | [1] | 58,794 | 12,634 |
Discontinued Operations, Held-For-Sale [Member] | Tile Coating Systems [Member] | |||
Debt Instrument [Line Items] | |||
Cash proceeds from financial institutions | $ 47,300 | $ 67,600 | |
[1] | In the six months ended June 30, 2020 and 2019, our Tile Coatings business received cash proceeds from financial institutions of $ 47.3 million and $ 67.6 million, respectively. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations . |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Gain (loss) from the change in fair value of financial instruments | $ 0.1 | $ (1.5) | $ 0.4 | |||
Notional amount | 646.2 | $ 646.2 | $ 625.9 | |||
Maximum [Member] | ||||||
Gain (loss) from the change in fair value of financial instruments | $ 0.1 | |||||
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||||||
Derivative, maturity date | Feb. 14, 2024 | |||||
Notional amount | 312.8 | $ 312.8 | ||||
Net loss to be reclassified during next 12 months, net | 8.2 | $ 8.2 | ||||
Cross Currency Swaps [Member] | Cash Flow Hedging [Member] | ||||||
Derivative, maturity date | Feb. 14, 2024 | |||||
Notional amount | 224.8 | $ 224.8 | ||||
Net gain to be reclassified during next 12 months, net | $ 0.8 | $ 0.8 | ||||
Cross Currency Swaps [Member] | Net Investment Hedging [Member] | ||||||
Derivative, maturity date | Feb. 14, 2024 | |||||
Notional amount | € | € 95.7 |
Financial Instruments (Financia
Financial Instruments (Financial Instruments Assets (Liabilities) Measured At Fair Value) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | ||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Cash and cash equivalents, Carrying Amount | $ 62,031 | $ 96,202 | $ 43,111 | |
Loans payable, Carrying Amount | (11,602) | |||
Long-term debt, Carrying Amount | (819,570) | (807,565) | ||
Cash and cash equivalents, Fair Value | 62,031 | 96,202 | ||
Loans payable, Fair Value | (11,602) | |||
Cross Currency Swaps [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Cross currency swaps, Carrying Amount | 21,246 | 22,111 | ||
Cross currency swaps, Fair Value | 21,246 | 22,111 | ||
Interest Rate Swaps [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Interest rate swaps-liabilities, Carrying Amount | (27,517) | (14,698) | ||
Interest rate swaps-liabilities, Fair Value | (27,517) | (14,698) | ||
Foreign Currency Forward Contracts [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Foreign currency forward contracts, net, Carrying amount | 1,696 | 601 | ||
Foreign currency forward contracts, net, Fair Value | 1,696 | 601 | ||
Revolving Credit Facility [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Carrying Amount | (16,617) | |||
Long-term debt, Fair Value | (17,484) | |||
Term Loan Facility - Amended Credit Facility [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Carrying Amount | [1] | (797,236) | (801,764) | |
Long-term debt, Fair Value | [1] | (775,050) | (799,750) | |
Unamortized debt issuance costs | 4,300 | 3,900 | ||
Other Long-Term Notes Payable [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Carrying Amount | (3,425) | (3,496) | ||
Long-term debt, Fair Value | (1,442) | (1,557) | ||
Level 1 [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Cash and cash equivalents, Fair Value | 62,031 | 96,202 | ||
Level 2 [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Loans payable, Fair Value | (11,602) | |||
Level 2 [Member] | Cross Currency Swaps [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Cross currency swaps, Fair Value | 21,246 | 22,111 | ||
Level 2 [Member] | Interest Rate Swaps [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Interest rate swaps-liabilities, Fair Value | (27,517) | (14,698) | ||
Level 2 [Member] | Foreign Currency Forward Contracts [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Foreign currency forward contracts, net, Fair Value | 1,696 | 601 | ||
Level 2 [Member] | Revolving Credit Facility [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Fair Value | (17,484) | |||
Level 2 [Member] | Term Loan Facility - Amended Credit Facility [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Fair Value | [1] | (775,050) | (799,750) | |
Level 2 [Member] | Other Long-Term Notes Payable [Member] | ||||
Financial Instruments And Fair Value Measurements [Line Items] | ||||
Long-term debt, Fair Value | $ (1,442) | $ (1,557) | ||
[1] | The carrying value of the term loan facility is net of unamortized debt issuance costs of $ 4.3 million and $ 3.9 million for the period ended June 30, 2020, and December 31, 2019, respectively. |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Loss Recognized In AOCI And The Amount Of Gain (Loss) Reclassified Into Earnings) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Expense [Member] | ||||
Amount of (Loss) Gain Reclassified from AOCL into Income | $ 27 | $ 1,564 | $ 697 | $ 3,374 |
Foreign Currency Losses, Net [Member] | ||||
Amount of (Loss) Gain Reclassified from AOCL into Income | (4,204) | (3,166) | (582) | 1,778 |
Interest Rate Swaps [Member] | Interest Expense [Member] | ||||
Amount of Gain (Loss) Recognized in AOCL | (1,934) | (6,813) | (14,808) | (10,920) |
Amount of (Loss) Gain Reclassified from AOCL into Income | (824) | 36 | (1,322) | 214 |
Cross Currency Swaps [Member] | Interest Expense [Member] | ||||
Amount of Gain (Loss) Recognized in AOCL | (3,902) | (4,708) | 1,356 | 372 |
Amount of (Loss) Gain Reclassified from AOCL into Income | 851 | 1,528 | 2,019 | 3,160 |
Cross Currency Swaps [Member] | Foreign Currency Losses, Net [Member] | ||||
Amount of (Loss) Gain Reclassified from AOCL into Income | $ (4,204) | $ (3,166) | $ (582) | $ 1,778 |
Financial Instruments (Effect O
Financial Instruments (Effect On Derivative Instruments On Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Earnings | $ 6,177 | $ 6,281 | $ 11,707 | $ 12,576 |
Foreign Currency Losses, Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Earnings | 1,143 | 2,043 | (172) | 4,007 |
Foreign Currency Forward Contracts [Member] | Foreign Currency Losses, Net [Member] | Not Designated As Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Earnings | $ 142 | $ (1,497) | $ 410 | $ 27 |
Financial Instruments (Loss On
Financial Instruments (Loss On Net Investment Hedges Recognized In AOCI, Amount Reclassified Into Earnings And Gain Recognized In Income On Derivative) (Details) - Cross Currency Swaps [Member] - Net Investment Hedging [Member] - Interest Expense [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amount of Gain (Loss) Recognized in AOCL | $ (1,569) | $ (1,260) | $ 1,090 | $ 2,477 |
Amount of Gain Recognized in Income of Derivative (Amount Excluded from Effectiveness Testing) | $ 612 | $ 949 | $ 1,392 | $ 1,950 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Of Derivative Instruments On Consolidated Balance Sheets) (Details) - Not Designated As Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Current Assets [Member] | Cross Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $ 1,923 | $ 6,711 |
Other Current Assets [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 2,539 | 1,474 |
Other Non-Current Assets [Member] | Cross Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 19,323 | 15,400 |
Accrued Expenses and Other Current Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (8,186) | (3,723) |
Accrued Expenses and Other Current Liabilities [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | (843) | (873) |
Other Noncurrent Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $ (19,331) | $ (10,975) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Abstract] | ||||
Income tax expense | $ 200 | $ 2,653 | $ 5,317 | $ 5,546 |
Percentage of pre-tax income | 27.50% | 21.60% | 27.50% | 21.60% |
U.S. corporate tax rate | 21.00% | 21.00% |
Contingent Liabilities (Narrati
Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingent Liabilities [Line Items] | ||
Undiscounted remediation liability associated with environmentally contaminated non-operating facility | $ 5.8 | $ 7.2 |
ARGENTINA | Argentina Supreme Court [Member] | ||
Commitments And Contingent Liabilities [Line Items] | ||
Contingent tax liability | $ 0.5 | $ 0.6 |
Retirement Benefits (Net Period
Retirement Benefits (Net Periodic Benefit Cost (Credit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3 | $ 3 | $ 6 | $ 5 |
Interest cost | 2,388 | 2,963 | 4,775 | 5,926 |
Expected return on plan assets | (3,708) | (3,153) | (7,416) | (6,305) |
Net periodic benefit (credit) cost | (1,317) | (187) | (2,635) | (374) |
Non-U.S. Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 294 | 330 | 579 | 611 |
Interest cost | 343 | 479 | 673 | 948 |
Expected return on plan assets | (116) | (170) | (228) | (336) |
Amortization of prior service cost | (4) | (14) | (9) | (9) |
Net periodic benefit (credit) cost | 517 | 625 | 1,015 | 1,214 |
Other Benefit Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 1 | |
Interest cost | 133 | 175 | 265 | 351 |
Net periodic benefit (credit) cost | $ 133 | $ 176 | $ 266 | $ 352 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | May 03, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of common stock reserved under plan | 4,500,000 | ||||
Recognized stock-based compensation expense | $ 2.7 | $ 2.9 | $ 5.5 | $ 5.6 | |
Unearned compensation cost related to the unvested portion of all stock-based awards | $ 11.6 | $ 11.6 | |||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share based compensation units granted | 300,000 | ||||
Weighted-average grant-date fair value | $ 5.28 | ||||
Performance Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share based compensation units granted | 200,000 | ||||
Weighted-average grant-date fair value | $ 14.64 | ||||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of share based compensation units granted | 200,000 | ||||
Weighted average grant date fair value | $ 14.64 | $ 14.64 | |||
Vesting period | 3 years |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Of Weighted-Average Grant-Date Fair Values And Assumptions Used For Estimating Fair Values) (Details) - Stock Options [Member] | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant-date fair value | $ 5.28 |
Expected life, in years | 5 years 2 months 12 days |
Risk-free interest rate | 1.40% |
Expected volatility | 35.10% |
Restructuring And Optimizatio_3
Restructuring And Optimization Programs (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total restructuring charges | $ 8.6 | $ 4.1 | $ 9.8 | $ 5.8 |
Period expected for cash payments for employee benefits and other costs | 12 months | |||
Americas Manufacturing Optimization Plan [Member] | ||||
Additional restructuring charges | 0.8 | 3.5 | $ 1 | 3.9 |
Total expected restructuring charges | 8.7 | 8.7 | ||
Global Optimization Plan [Member] | ||||
Total restructuring charges | 7.8 | 0.6 | 8.8 | 1.9 |
Discontinued Operations, Held-For-Sale [Member] | Tile Coating Systems [Member] | ||||
Additional restructuring charges | $ 1.7 | $ 6.2 | $ 2 | $ 6.6 |
Restructuring And Optimizatio_4
Restructuring And Optimization Programs (Summary Of Accruals Related To Restructuring And Optimization Programs) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | $ 2,239 |
Restructuring charges | 9,784 |
Cash payments | (2,868) |
Non-cash items | (16) |
Ending balance | 9,139 |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 747 |
Restructuring charges | 7,832 |
Cash payments | (872) |
Non-cash items | (9) |
Ending balance | 7,698 |
Other Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Beginning balance | 1,492 |
Restructuring charges | 1,952 |
Cash payments | (1,996) |
Non-cash items | (7) |
Ending balance | $ 1,441 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Initial lease term | 12 months |
Lease not yet commenced, Description | There are no leases that have not yet commenced that create significant rights and obligations for the Company. |
Leases (Components Of Lease Cos
Leases (Components Of Lease Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Leases [Line Items] | |||||
Net lease cost | $ 2,881 | $ 3,643 | $ 6,350 | $ 7,291 | |
Selling, General And Administrative Expenses [Member] | |||||
Leases [Line Items] | |||||
Operating lease cost | [1] | 1,204 | 1,286 | 2,463 | 2,646 |
Short-term lease costs | 200 | 300 | 400 | 500 | |
Variable lease costs | 100 | 100 | 200 | 200 | |
Cost Of Sales [Member] | |||||
Leases [Line Items] | |||||
Operating lease cost | [2] | 1,606 | 2,292 | 3,737 | 4,526 |
Amortization of right-of-use assets | 64 | 62 | 136 | 113 | |
Short-term lease costs | 700 | 700 | 1,300 | 1,300 | |
Variable lease costs | 100 | 300 | 400 | 500 | |
Interest Expense [Member] | |||||
Leases [Line Items] | |||||
Interest of lease liabilities | $ 7 | $ 3 | $ 14 | $ 6 | |
[1] | Included in operating lease cost is $ 0.2 million and $ 0.4 million of short-term lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million for the three and six months ended June 30, 2019 and $ 0.1 million and $ 0.2 million of variable lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively. | ||||
[2] | Included in operating lease cost is $ 0.7 million and $ 1.3 million of short-term lease costs for the three and six months ended June 30, 2020 and June 30, 2019, respectively, and $ 0.1 million and $ 0.4 million of variable lease costs for the three and six months ended June 30, 2020, respectively, and $ 0.3 million and $ 0.5 million of variable lease costs for the three and six months ended June 30, 2019, respectively. |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Operating leased assets | $ 15,042 | $ 20,088 | |
Finance leased assets | [1] | 795 | 859 |
Total leased assets | 15,837 | 20,947 | |
Liabilities | |||
Current, Operating | 5,349 | 6,515 | |
Current, Finance | 512 | 438 | |
Noncurrent, Operating | 9,716 | 14,474 | |
Noncurrent, Finance | 1,780 | 1,867 | |
Total leased liabilities | 17,357 | 23,294 | |
Finance leases, net accumulated depreciation | $ 3,400 | $ 3,400 | |
[1] | Finance leases are net of accumulated depreciation of $ 3.4 million and $ 3.4 million for June 30, 2020 and December 31, 2019, respectively. |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating cash flows from finance leases | $ 7 | $ 3 | $ 14 | $ 6 |
Operating cash flows from operating leases | 1,808 | 2,409 | 3,827 | 4,669 |
Financing cash flows from finance leases | 77 | 57 | 142 | 102 |
Leased assets obtained in exchange for new finance lease liabilities | 51 | 89 | 155 | 218 |
Leased assets obtained in exchange for new operating lease liabilities | $ 1,063 | $ 184 | $ 2,562 | $ 24,219 |
Weighted-average remaining lease term, Operating leases | 3 years 10 months 24 days | 3 years 10 months 24 days | ||
Weighted-average remaining lease term, Finance leases | 5 years 6 months | 5 years 6 months | ||
Weighted-average discount rate, Operating leases | 4.20% | 4.20% | ||
Weighted-average discount rate, Finance leases | 5.20% | 5.20% |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Finance Leases, Remaining in 2020 | $ 316 |
Finance Leases, 2021 | 565 |
Finance Leases, 2022 | 545 |
Finance Leases, 2023 | 476 |
Finance Leases, 2024 | 372 |
Finance Leases, 2025 | 290 |
Finance Leases, Thereafter | 418 |
Finance Leases, Net minimum lease payments | 2,982 |
Finance Leases, Less: interest | 690 |
Finance Leases, Present value of lease liabilities | 2,292 |
Operating Leases, Remaining in 2020 | 3,488 |
Operating Leases, 2021 | 5,518 |
Operating Leases, 2022 | 3,314 |
Operating Leases, 2023 | 1,793 |
Operating Leases, 2024 | 866 |
Operating Leases, 2025 | 644 |
Operating Leases, Thereafter | 1,688 |
Operating Leases, Net minimum lease payments | 17,311 |
Operating Leases, Less: interest | 2,246 |
Operating Leases, Present value of lease liabilities | $ 15,065 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 2.7 | 2.3 | 2.3 | 2.2 |
Earnings Per Share (Calculation
Earnings Per Share (Calculations Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings (loss) per share computation: | ||||
Income (loss) from continuing operations | $ (1,926) | $ 11,361 | $ 13,986 | $ 20,162 |
Less: Net income attributable to noncontrolling interests from continuing operations | 309 | 193 | 342 | 362 |
Net income (loss) attributable to Ferro Corporation from continuing operations | (2,235) | 11,168 | 13,644 | 19,800 |
Income (loss) from discontinued operations, net of income taxes | (3,238) | (252) | (3,017) | 4,825 |
Less: Net income attributable to noncontrolling interests from discontinued operations | 67 | 45 | 44 | 150 |
Net income (loss) attributable to Ferro Corporation from discontinued operations | (3,305) | (297) | (3,061) | 4,675 |
Total | $ (5,540) | $ 10,871 | $ 10,583 | $ 24,475 |
Weighted-average common shares outstanding | 82,246 | 81,932 | 82,171 | 82,206 |
Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders | $ (0.03) | $ 0.13 | $ 0.17 | $ 0.24 |
Diluted earnings (loss) per share computation: | ||||
Net income (loss) attributable to Ferro Corporation from continuing operations | $ (2,235) | $ 11,168 | $ 13,644 | $ 19,800 |
Net income (loss) attributable to Ferro Corporation from discontinued operations | (3,305) | (297) | (3,061) | 4,675 |
Total | $ (5,540) | $ 10,871 | $ 10,583 | $ 24,475 |
Weighted-average common shares outstanding | 82,246 | 81,932 | 82,171 | 82,206 |
Assumed exercise of stock options | 543 | 502 | 799 | 551 |
Assumed satisfaction of restricted stock unit conditions | 93 | 157 | 109 | 208 |
Assumed satisfaction of performance stock unit conditions | 45 | 87 | 200 | 90 |
Weighted-average diluted shares outstanding | 82,927 | 82,678 | 83,279 | 83,055 |
Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders | $ (0.03) | $ 0.13 | $ 0.16 | $ 0.23 |
Share Repurchase Program (Narra
Share Repurchase Program (Narrative) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Share Repurchase Program [Abstract] | |
Stock Repurchase Program, Authorized Amount | $ 150 |
Stock repurchase program, remaining authorized amount | $ 46.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Changes In Accumulated Other Comprehensive Loss by Component, Net of Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balances | $ 360,376 | |||
Ending Balances | $ 350,573 | 350,573 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balances | (136,688) | $ (106,273) | (109,376) | $ (105,361) |
Other comprehensive income (loss) before reclassifications, before tax | (2,448) | (8,043) | (27,901) | (3,034) |
Reclassification to earnings: Cash flow hedge (loss) income, before tax | 4,177 | 1,602 | (115) | (5,152) |
Current period other comprehensive income (loss), before tax | 1,729 | (6,441) | (28,016) | (8,186) |
Tax effect | (604) | (3,081) | (3,037) | (3,914) |
Current period other comprehensive income (loss), net of tax | 2,333 | (3,360) | (24,979) | (4,272) |
Ending Balances | (134,355) | (109,633) | (134,355) | (109,633) |
Postretirement Benefit Liability Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balances | 1,206 | 1,126 | 1,206 | 1,126 |
Other comprehensive income (loss) before reclassifications, before tax | ||||
Reclassification to earnings: Cash flow hedge (loss) income, before tax | ||||
Current period other comprehensive income (loss), before tax | ||||
Tax effect | ||||
Current period other comprehensive income (loss), net of tax | ||||
Ending Balances | 1,206 | 1,126 | 1,206 | 1,126 |
Foreign Currency Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balances | (115,847) | (99,788) | (97,575) | (103,190) |
Other comprehensive income (loss) before reclassifications, before tax | 3,388 | 3,478 | (14,449) | 7,514 |
Reclassification to earnings: Cash flow hedge (loss) income, before tax | ||||
Current period other comprehensive income (loss), before tax | 3,388 | 3,478 | (14,449) | 7,514 |
Tax effect | (505) | (511) | (70) | 123 |
Current period other comprehensive income (loss), net of tax | 3,893 | 3,989 | (14,379) | 7,391 |
Ending Balances | (111,954) | (95,799) | (111,954) | (95,799) |
Net Gain (Loss) On Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balances | (22,047) | (7,611) | (13,007) | (3,297) |
Other comprehensive income (loss) before reclassifications, before tax | (5,836) | (11,521) | (13,452) | (10,548) |
Reclassification to earnings: Cash flow hedge (loss) income, before tax | 4,177 | 1,602 | (115) | (5,152) |
Current period other comprehensive income (loss), before tax | (1,659) | (9,919) | (13,567) | (15,700) |
Tax effect | (99) | (2,570) | (2,967) | (4,037) |
Current period other comprehensive income (loss), net of tax | (1,560) | (7,349) | (10,600) | (11,663) |
Ending Balances | $ (23,607) | $ (14,960) | $ (23,607) | $ (14,960) |
Reporting For Segments (Net Sal
Reporting For Segments (Net Sales To External Customers By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 204,801 | $ 260,958 | $ 457,127 | $ 524,340 |
Functional Coatings [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 131,672 | 163,692 | 287,107 | 330,718 |
Color Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 73,129 | $ 97,266 | $ 170,020 | $ 193,622 |
Reporting For Segments (Segment
Reporting For Segments (Segment's Gross Profit And Reconciliations To Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total gross profit | $ 63,744 | $ 79,130 | $ 144,482 | $ 156,989 |
Selling, general and administrative expenses | 50,541 | 53,249 | 106,587 | 110,180 |
Restructuring and impairment charges | 8,619 | 4,057 | 9,784 | 5,797 |
Other expense, net | 6,310 | 7,810 | 8,808 | 15,304 |
Income (loss) before income taxes | (1,726) | 14,014 | 19,303 | 25,708 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total gross profit | 63,744 | 79,130 | 144,482 | 156,989 |
Functional Coatings [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total gross profit | 36,119 | 49,307 | 83,936 | 97,537 |
Color Solutions [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total gross profit | 26,985 | 29,702 | 60,772 | 58,098 |
Other Cost Of Sales [Member] | Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total gross profit | $ 640 | $ 121 | $ (226) | $ 1,354 |