Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 02, 2016 | Oct. 20, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MINERALS TECHNOLOGIES INC | |
Entity Central Index Key | 891,014 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,934,626 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 2, 2016 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||||
Product sales | $ 379.7 | $ 410.1 | $ 1,171.1 | $ 1,218.8 |
Service revenue | 19.8 | 40.9 | 65.6 | 148.8 |
Total net sales | 399.5 | 451 | 1,236.7 | 1,367.6 |
Cost of goods sold | 272 | 302.4 | 840.8 | 895.8 |
Cost of service revenue | 12.3 | 29.7 | 46.9 | 110.2 |
Total cost of sales | 284.3 | 332.1 | 887.7 | 1,006 |
Production margin | 115.2 | 118.9 | 349 | 361.6 |
Marketing and administrative expenses | 42.4 | 49.9 | 134.2 | 145.4 |
Research and development expenses | 5.9 | 6.2 | 17.9 | 17.8 |
Acquisition related transaction and integration costs | 1.9 | 2.4 | 5.1 | 8.5 |
Restructuring and other items, net | (2.3) | 10.5 | 27.4 | 27.3 |
Income from operations | 67.3 | 49.9 | 164.4 | 162.6 |
Interest expense, net | (13.4) | (14.5) | (41.4) | (45.5) |
Extinguishment of debt costs and fees | 0 | 0 | 0 | (4.5) |
Other non-operating income (deductions), net | (0.6) | 2.8 | 1.7 | 5.7 |
Total non-operating deductions, net | (14) | (11.7) | (39.7) | (44.3) |
Income from continuing operations before provision for taxes and equity in earnings | 53.3 | 38.2 | 124.7 | 118.3 |
Provision for taxes on income | 11.5 | 8.4 | 26.7 | 25.8 |
Equity in earnings of affiliates, net of tax | 0.7 | 0.5 | 1.6 | 1.4 |
Consolidated net income | 42.5 | 30.3 | 99.6 | 93.9 |
Less: Net income attributable to non-controlling interests | 0.9 | 1.1 | 2.9 | 2.9 |
Net income attributable to Minerals Technologies Inc. (MTI) | $ 41.6 | $ 29.2 | $ 96.7 | $ 91 |
Basic: | ||||
Income from continuing operations attributable to MTI (in dollars per share) | $ 1.19 | $ 0.84 | $ 2.78 | $ 2.62 |
Diluted: | ||||
Income from continuing operations attributable to MTI (in dollars per share) | 1.18 | 0.83 | 2.75 | 2.60 |
Cash dividends declared per common share (in dollars per share) | $ 0.05 | $ 0.05 | $ 0.15 | $ 0.15 |
Shares used in computation of earnings per share: | ||||
Basic (in shares) | 34.9 | 34.7 | 34.8 | 34.7 |
Diluted (in shares) | 35.3 | 35 | 35.1 | 35 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Consolidated net income | $ 42.5 | $ 30.3 | $ 99.6 | $ 93.9 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 1.2 | (35.8) | 2 | (66.1) |
Pension and postretirement plan adjustments | 1.2 | 1.6 | 3.8 | 4.6 |
Cash flow hedges: | ||||
Net derivative gains (losses) arising during the period | 0.4 | 0 | (0.3) | 0 |
Total other comprehensive income (loss), net of tax | 2.8 | (34.2) | 5.5 | (61.5) |
Total comprehensive income including non-controlling interests | 45.3 | (3.9) | 105.1 | 32.4 |
Comprehensive income attributable to non-controlling interest | (0.4) | (0.2) | (2.2) | (1.9) |
Comprehensive income attributable to MTI | $ 44.9 | $ (4.1) | $ 102.9 | $ 30.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 02, 2016 | [1] | Dec. 31, 2015 | [2] |
Current assets: | ||||
Cash and cash equivalents | $ 199.7 | $ 229.4 | ||
Short-term investments, at cost which approximates market | 5.1 | 2.6 | ||
Accounts receivable, net | 363.9 | 348.7 | ||
Inventories | 209.1 | 194.9 | ||
Prepaid expenses and other current assets | 32.4 | 28 | ||
Total current assets | 810.2 | 803.6 | ||
Property, plant and equipment | 2,178.3 | 2,167.3 | ||
Less accumulated depreciation and depletion | (1,107.1) | (1,063) | ||
Property, plant and equipment, net | 1,071.2 | 1,104.3 | ||
Goodwill | 780.3 | 781.2 | ||
Intangible assets | 206.4 | 212.7 | ||
Other assets and deferred charges | 70.6 | 78.2 | ||
Total assets | 2,938.7 | 2,980 | ||
Current liabilities: | ||||
Short-term debt | 6.3 | 6.5 | ||
Current maturities of long-term debt | 4.6 | 3.1 | ||
Accounts payable | 155.8 | 152.4 | ||
Other current liabilities | 154.7 | 156.6 | ||
Total current liabilities | 321.4 | 318.6 | ||
Long-term debt, net of unamortized discount | 1,117.3 | 1,255.3 | ||
Deferred income taxes | 242.4 | 252 | ||
Other non-current liabilities | 216.3 | 216.4 | ||
Total liabilities | 1,897.4 | 2,042.3 | ||
Shareholders' equity: | ||||
Common stock | 4.8 | 4.8 | ||
Additional paid-in capital | 395.4 | 387.6 | ||
Retained earnings | 1,384.2 | 1,292.7 | ||
Accumulated other comprehensive loss | (174.7) | (180.9) | ||
Less common stock held in treasury | (596.3) | (593.7) | ||
Total MTI shareholders' equity | 1,013.4 | 910.5 | ||
Non-controlling interest | 27.9 | 27.2 | ||
Total shareholders' equity | 1,041.3 | 937.7 | ||
Total liabilities and shareholders' equity | $ 2,938.7 | $ 2,980 | ||
[1] | Unaudited | |||
[2] | Condensed from audited financial statements |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | ||
Operating Activities: | |||
Consolidated net income | $ 99.6 | $ 93.9 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 66.6 | 77.3 | |
Impairment of assets | 18.5 | 21.1 | |
Other non-cash items | 8.2 | 8.2 | |
Net changes in operating assets and liabilities | (28.7) | (5.8) | |
Net cash provided by operating activities | 164.2 | 194.7 | |
Investing Activities: | |||
Purchases of property, plant and equipment | (48.9) | (70.5) | |
Proceeds from sale of assets | 2.9 | 4.9 | |
Proceeds from sale of short-term investments | 4.9 | 0.6 | |
Purchases of short-term investments | (6.6) | (4.7) | |
Net cash used in investing activities | (47.7) | (69.7) | |
Financing Activities: | |||
Proceeds from issuance of long-term debt | 1.2 | 10.2 | |
Repayment of long-term debt | (141.2) | (140.4) | |
Net issuance (repayment) of short-term debt | (0.1) | 1 | |
Purchase of common shares for treasury | (2.6) | 0 | |
Proceeds from issuance of stock under option plan | 4.1 | 1.3 | |
Excess tax benefits related to stock incentive programs | 0 | 0.3 | |
Dividends paid to non-controlling interest | (1.5) | (0.9) | |
Cash dividends paid | (5.3) | (5.2) | |
Net cash used in financing activities | (145.4) | (133.7) | |
Effect of exchange rate changes on cash and cash equivalents | (0.8) | (16) | |
Net decrease in cash and cash equivalents | (29.7) | (24.7) | |
Cash and cash equivalents at beginning of period | 229.4 | [1] | 249.6 |
Cash and cash equivalents at end of period | 199.7 | [2] | 224.9 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 45.6 | 45.9 | |
Income taxes paid | $ 24.1 | $ 29.9 | |
[1] | Condensed from audited financial statements | ||
[2] | Unaudited |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we” or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included. The results for the three-month and nine-month periods ended October 2, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Company Operations The Company is a resource- and technology-based company that develops produces and markets worldwide a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services. The Company has reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services. - - The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products. - The Performance Materials segment is a leading supplier of bentonite and bentonite-related products. This segment also supplies chromite and leonardite and operates more than 25 mining or production facilities worldwide. - The Construction Technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide. It serves customers engaged in a broad range of construction projects, including site remediation, concrete waterproofing for underground structures, liquid containment on projects ranging from landfills to flood control, and drilling applications including foundation, slurry wall, tunneling, water well, and horizontal drilling. - The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry. This segment offers a range of services for off-shore filtration and well testing to the worldwide oil and gas industry. Use of Estimates The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities. Actual results could differ from those estimates. Recently Issued Accounting Standards Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. Revenue from Contracts with Customers In May the FASB issued ASU No. - “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a -step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures. The Company expects to complete this analysis in early Inventory – Simplifying the Measurement of Inventory In July the FASB issued ASU No. - “Inventory (Topic : Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. - defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU - is effective for fiscal years beginning after December and interim periods within fiscal years beginning after December with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Leases In February the FASB issued ASU - “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU - is effective for public business entities for annual and interim periods in fiscal years beginning after December ASU - mandates a modified retrospective transition method for all entities. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not expect the adoption of this guidance to have a material impact on the Company’s financial statements. Investments – Equity Method and Joint Ventures In March the FASB issued ASU - “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. ASU - is effective for all entities for interim and annual periods in fiscal years beginning after December The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Stock Compensation – Improvements to Employee Share-Based Payment Accounting In March the FASB issued ASU - “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes aspects of the accounting for share-based payment award transactions, including: accounting for income taxes; classification of excess tax benefits on the statement of cash flows; forfeitures; minimum statutory tax withholding requirements; classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; practical expedient – expected term (nonpublic only); and intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share (EPS) [Abstract] | |
Earnings Per Share (EPS) | Note Earnings Per Share (EPS) Basic earnings per share are based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share are based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (in s, except per share data) Net income attributable to MTI $ 41.6 $ 29.2 $ 96.7 $ 91.0 Weighted average shares outstanding 34.9 34.7 34.8 34.7 Dilutive effect of stock options and stock units 0.4 0.3 0.3 0.3 Weighted average shares outstanding, adjusted 35.3 35.0 35.1 35.0 Basic earnings per share attributable to MTI $ 1.19 $ 0.84 $ 2.78 $ 2.62 Diluted earnings per share attributable to MTI $ 1.18 $ 0.83 $ 2.75 $ 2.60 Options to purchase 10,239 shares and 395,545 shares of common stock for the three-month and nine-month periods ended October 2, 2016 and September 27, 2015, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares. |
Restructuring and Other Items,
Restructuring and Other Items, net | 9 Months Ended |
Oct. 02, 2016 | |
Restructuring and Other Items, net [Abstract] | |
Restructuring and Other Items, net | Note Restructuring and Other Items, net During 2014, the Company announced a restructuring program that will result in a 10% permanent reduction of its workforce. The reductions include elimination of duplicate corporate functions, deployment of our shared service model, and consolidation and alignment of various corporate functions and regional locations across the Company. During the third quarter and first nine months of 2015, the Company incurred impairment charges of $5.3 million and $21.1 million , respectively, for underutilized equipment which was abandoned by the Company for its Coiled Tubing business, within the Energy Services segment. During the third quarter and first nine months of 2015, the Company recorded restructuring charges of $5.2 million and $6.2 million , respectively, for lease termination costs, reduction in force, and inventory write-offs associated with exiting the Coiled Tubing service line and restructuring other on-shore service lines within the Energy Services segment. During the third quarter and first nine months of 2016, the Company incurred additional restructuring charges of $(2.3) million and $27.4 million, respectively, for lease termination costs, inventory write-offs and impairment of assets relating to its exit from the Nitrogen and Pipeline product lines and restructuring of other onshore services within the Energy Services segment as a result of the significant reduction in oil prices and overcapacity in the onshore oil service market. Included in the $2.3 million income recorded in the third quarter were gains on previously impaired assets of $2.9 million. The company expects to realize annualized savings from this restructuring program of $11.5 million. The following table outlines the amount of restructuring charges recorded within the Condensed Consolidated Statements of Income. Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. (millions of dollars) 2016 2015 2016 2015 Restructuring Charges $ 0.6 $ 5.2 $ 11.8 $ 6.2 Impairment of Assets - 5.3 18.5 21.1 Other (2.9 ) - (2.9 ) - Total restructuring and other items, net $ (2.3 ) $ 10.5 $ 27.4 $ 27.3 At October 2, 2016, the Company had $3.9 million included within accrued liabilities within our Condensed Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these workforce reduction initiatives. The Company expects to pay these amounts by the end of December The following table is a reconciliation of our restructuring liability balance as of October 2, 2016: (millions of dollars) Restructuring liability, December $ 7.9 Additional provisions 11.8 Cash payments (15.5 ) Other (0.3 ) Restructuring liability, October $ 3.9 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 02, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note Income Taxes As of October the Company had approximately of total unrecognized income tax benefits. Included in this amount were a total of of unrecognized income tax benefits that, if recognized, would affect the Company’s effective tax rate. While it is expected that the amount of unrecognized tax benefits will change in the next months, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company. The Company’s accounting policy is to recognize interest and penalties accrued relating to unrecognized income tax benefits as part of its provision for income taxes. The Company had a net increase of approximately and during the and months ended October respectively, and had an accrued balance of of interest and penalties as of October The Company operates in multiple taxing jurisdictions, both within and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings. The Company, with a few exceptions (none of which are material), is no longer subject to income tax examinations by tax authorities for years prior to 2010. Provision for taxes was $11.5 million and $26.7 million during the three and nine months ended October 2, 2016, respectively. The effective tax rate was 21.4% as compared to 21.8% in the prior year. The lower effective tax rate was primarily due to a change in the mix of earnings and non-deductible acquisition costs in the prior year. |
Inventories
Inventories | 9 Months Ended |
Oct. 02, 2016 | |
Inventories [Abstract] | |
Inventories | Note Inventories The following is a summary of inventories by major category: October December 2016 2015 (millions of dollars) Raw materials $ 81.3 $ 73.4 Work-in-process 5.8 5.4 Finished goods 91.1 86.1 Packaging and supplies 30.9 30.0 Total inventories $ 209.1 $ 194.9 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Oct. 02, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | Note Goodwill and Other Intangible Assets Goodwill and other intangible assets with indefinite lives are not amortized, but instead are assessed for impairment at least annually. The carrying amount of goodwill was $780.3 million, and $781.2 million as of October 2, 2016 and December 31, 2015, respectively. The net change in goodwill since December 31, 2015 was attributable to the effects of foreign exchange. Acquired intangible assets subject to amortization as of October 2, 2016 and December 31, 2015 were as follows: October December Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (millions of dollars) Tradenames 34 $ 199.8 $ 13.8 $ 199.8 $ 9.3 Technology 12 18.8 3.4 18.8 2.5 Patents and trademarks 17 6.4 4.7 6.4 4.4 Customer relationships 30 4.5 1.2 4.5 0.6 28 $ 229.5 $ 23.1 $ 229.5 $ 16.8 The weighted average amortization period for acquired intangible assets subject to amortization is approximately 28 years. Estimated amortization expense is for the remainder of for – and thereafter. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Oct. 02, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note Derivative Financial Instruments As a multinational corporation with operations throughout the world, the Company is exposed to certain market risks. The Company uses a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments. The Company's objective is to offset gains and losses resulting from interest rates and foreign currency exposures with gains and losses on the derivative contracts used to hedge them. The Company uses derivative financial instruments only for risk management and not for trading or speculative purposes. By using derivative financial instruments to hedge exposures to changes in interest rates and foreign currencies, the Company exposes itself to credit risk and market risk. Credit risk is the risk that the counterparty will fail to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty, and therefore, it does not face any credit risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with major financial institutions. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates, currency exchange rates, or commodity prices. The market risk associated with interest rate and forward exchange contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. Cash flow hedges: For derivative instruments that are designated and qualify as cash flow hedges, the Company records the effective portion of the gain or loss in accumulated other comprehensive income (loss) as a separate component of shareholders' equity. The Company subsequently reclassifies the effective portion of gain or loss into earnings in the period during which the hedged transaction is recognized in earnings. The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt. During the second quarter of 2016, the Company entered into a floating to fixed interest rate swap for an initial aggregate notional amount of $300 million. The notional amount at October 2, 2016 was $271 million. This interest rate swap is designated as a cash flow hedge. The gains and losses associated with this interest rate swap are recorded in accumulated other comprehensive income (loss). The fair value of this swap was a liability of $0.5 million at October 2, 2016 and is recorded in other non-current liabilities on the Condensed Consolidated Balance Sheet. Assets and liabilities measured at fair value are based on one or more of three valuation techniques. The three valuation techniques are as follows: • Market approach - prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • Cost approach - amount that would be required to replace the service capacity of an asset or replacement cost. • Income approach - techniques to convert future amounts to a single present amount based on market expectations, including present value techniques, option-pricing and other models. The Company primarily applies the income approach for interest rate derivatives for recurring fair value measurements and attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value of our interest rate swap contract is determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets and are categorized as Level |
Long-Term Debt and Commitments
Long-Term Debt and Commitments | 9 Months Ended |
Oct. 02, 2016 | |
Long-Term Debt and Commitments [Abstract] | |
Long-Term Debt and Commitments | Note Long-Term Debt and Commitments The following is a summary of long-term debt: October December 2016 2015 (millions of dollars) Term Loan Facility due May net of unamortized discount and deferred financing costs of and , respectively $ 1,110.3 $ 1,246.4 China Loan Facilities 11.6 12.0 Total $ 1,121.9 $ 1,258.4 Less: Current maturities 4.6 3.1 Long-term debt $ 1,117.3 $ 1,255.3 On May in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for a senior secured term loan facility (the “Term Facility”) and a senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”). On June the Company entered into an amendment to the credit agreement to reprice the then outstanding on the Term Facility. As amended, the Term Facility has a floating rate tranche and a fixed rate tranche. The maturity date for loans under the Term Facility was not changed by the amendment. The loans outstanding under the Term Facility will mature on May and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May After the amendment, loans under the variable rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of ) plus an applicable margin equal to per annum. Loans under the fixed rate tranche of the Term Facility bear interest at a rate of . Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to per annum. Such rates are subject to decrease by up to basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds. The variable rate tranche of the Term Facility was issued at par and has a required amortization per year. The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors. The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, to for the fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of to During the Company repaid on its Term Facility. As of October there were no loans and in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report. The Company has committed loan facilities for the funding of new manufacturing facilities in China, for a combined RMB and . As of October on a combined basis, was outstanding. Principal will be repaid in accordance with the payment schedules ending in The Company repaid on these loans in As of October the Company had in uncommitted short-term bank credit lines, of which approximately was in use. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Oct. 02, 2016 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note Benefit Plans The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis. The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. Disclosures for the U.S. plans have been combined with those outside of the U.S. as the international plans do not have significantly different assumptions, and together represent less than 25% of our total benefit obligation. Components of Net Periodic Benefit Cost Pension Benefits Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars Service cost $ 1.7 $ 2.8 $ 6.3 $ 8.1 Interest cost 3.1 3.7 9.8 11.6 Expected return on plan assets (4.6 ) (4.9 ) (13.9 ) (14.9 ) Amortization: Prior service cost 0.2 0.1 0.6 0.6 Recognized net actuarial loss 2.5 3.2 7.6 8.9 Net periodic benefit cost $ 2.9 $ 4.9 $ 10.4 $ 14.3 Other Benefits Three Months Ended Nine Months Ended Oct. 2016 Sept. 2015 Oct. 2016 Sept. 2015 (millions of dollars Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 0.1 0.1 0.3 0.3 Amortization: Prior service cost (0.8 ) (0.7 ) (2.3 ) (2.3 ) Recognized net actuarial gain (0.1 ) (0.1 ) (0.2 ) (0.1 ) Net periodic benefit cost $ (0.7 ) $ (0.6 ) $ (1.9 ) $ (1.8 ) Amortization amounts of prior service costs and recognized net actuarial losses are recorded, net of tax, as increases to accumulated other comprehensive income. Employer Contributions The Company expects to contribute approximately $9.0 million to its pension plans and $0.5 million to its other postretirement benefit plans in 2016. As of October 2, 2016, $7.1 million has been contributed to the pension plans and approximately $0.1 million has been contributed to the other postretirement benefit plans. |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Oct. 02, 2016 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | Note Comprehensive Income The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss) attributable to the Company: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) 2016 2015 2016 2015 (millions of dollars) Amortization of pension items: Pre-tax amount $ 1.8 $ 2.5 $ 5.7 $ 7.1 Tax (0.6 ) (0.9 ) (1.9 ) (2.5 ) Net of tax $ 1.2 $ 1.6 $ 3.8 $ 4.6 The pre-tax amounts in the table above are included within the components of net periodic pension benefit cost (see Note to the Condensed Consolidated Financial Statements) and the tax amounts are included within provision for taxes on income line within Condensed Consolidated Statements of Income. The major components of accumulated other comprehensive income, net of related tax, attributable to MTI are as follows: Foreign Currency Translation Adjustment Unrecognized Pension Costs Net Gain on Cash Flow Hedges Total (millions of dollars) Balance as of December $ (108.7 ) $ (74.8 ) $ 2.6 $ (180.9 ) Other comprehensive income (loss) before reclassifications 2.7 3.8 (0.3 ) 6.2 - Net current period other comprehensive income (loss) 2.7 3.8 (0.3 ) 6.2 Balance as of October $ (106.0 ) $ (71.0 ) $ 2.3 $ (174.7 ) |
Accounting for Asset Retirement
Accounting for Asset Retirement Obligations | 9 Months Ended |
Oct. 02, 2016 | |
Accounting for Asset Retirement Obligations [Abstract] | |
Accounting for Asset Retirement Obligations | Note Accounting for Asset Retirement Obligations The Company records asset retirement obligations for situations in which the Company will be required to incur costs to retire tangible long-lived assets. The fair value of the liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The Company also records liabilities related to land reclamation as a part of asset retirement obligations. The Company mines various minerals using a surface mining process that requires the removal of overburden. In certain areas and under various governmental regulations, the Company is obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity. The obligation is adjusted to reflect the passage of time, mining activities, and changes in estimated future cash outflows. The following is a reconciliation of asset retirement obligations as of October 2, 2016: (millions of dollars) Asset retirement liability, December $ 21.4 Accretion expense 1.2 Additions 0.1 Payments (1.4 ) Foreign currency translation 0.3 Asset retirement liability, October $ 21.6 The asset retirement costs are capitalized as part of the carrying amount of the associated asset. The current portion of the liability of approximately |
Contingencies
Contingencies | 9 Months Ended |
Oct. 02, 2016 | |
Contingencies [Abstract] | |
Contingencies | Note Contingencies We are party to a number of lawsuits arising in the normal course of our business. On May 8, 2013, Armada (Singapore) PTE Limited, an ocean shipping company now in bankruptcy ("Armada") filed a case in federal court in the Northern District of Illinois against AMCOL and certain of its subsidiaries ( Armada (Singapore) PTE Limited v. AMCOL International Corp., et al., United States District Court for the Northern District of Illinois Certain of the Company's subsidiaries are among numerous defendants in a number of cases seeking damages for exposure to silica or to asbestos containing materials. The Company currently has pending silica cases and pending asbestos cases. To date, silica cases and asbestos cases have been dismissed, not including any lawsuits against AMCOL or American Colloid Company dismissed prior to our acquisition of AMCOL. No new asbestos or silica cases were filed in the quarter of No asbestos or silica cases were dismissed during the quarter. Most of these claims do not provide adequate information to assess their merits, the likelihood that the Company will be found liable, or the magnitude of such liability, if any. Additional claims of this nature may be made against the Company or its subsidiaries. At this time management anticipates that the amount of the Company's liability, if any, and the cost of defending such claims, will not have a material effect on its financial position or results of operations. The Company has settled only silica lawsuit, for a nominal amount, and no asbestos lawsuits to date (not including any that may have been settled by AMCOL prior to completion of the acquisition). We are unable to state an amount or range of amounts claimed in any of the lawsuits because state court pleading practices do not require identifying the amount of the claimed damage. The aggregate cost to the Company for the legal defense of these cases since inception continues to be insignificant. The majority of the costs of defense for these cases, excluding cases against AMCOL or American Colloid, are reimbursed by Pfizer Inc. pursuant to the terms of certain agreements entered into in connection with the Company's initial public offering in Of the pending asbestos cases all except allege liability based on products sold largely or entirely prior to the initial public offering, and for which the Company is therefore entitled to indemnification pursuant to such agreements. The exceptions pertain to a pending asbestos case against American Colloid Company, and for which no period of alleged exposure has been stated by plaintiffs. Our experience has been that the Company is not liable to plaintiffs in any of these lawsuits and the Company does not expect to pay any settlements or jury verdicts in these lawsuits. Environmental Matters On April the Connecticut Department of Environmental Protection issued an administrative consent order relating to our Canaan, Connecticut, plant where both our Refractories segment and Specialty Minerals segment have operations. We agreed to the order, which includes provisions requiring investigation and remediation of contamination associated with historic use of polychlorinated biphenyls ("PCBs") and mercury at a portion of the site. We have completed the required investigations and submitted several reports characterizing the contamination and assessing site-specific risks. We are awaiting regulators’ approval of the risk assessment report, which will form the basis for a proposal by the Company concerning eventual remediation. We believe that the most likely form of overall site remediation will be to leave the existing contamination in place (with some limited soil removal), encapsulate it, and monitor the effectiveness of the encapsulation. We anticipate that a substantial portion of the remediation cost will be borne by the United States based on its involvement at the site from – as historic documentation indicates that PCBs and mercury were used at the facility at a time of U.S. government ownership for production of materials needed by the military. Pursuant to a Consent Decree entered on October the United States paid the Company in the th quarter of to resolve the Company’s claim for response costs for investigation and initial remediation activities at this facility through October Contribution by the United States to any future costs of investigation or additional remediation has, by agreement, been left unresolved. Though the cost of the likely remediation remains uncertain pending completion of the phased remediation decision process, we have estimated that the Company’s share of the cost of the encapsulation and limited soil removal described above would approximate , which has been accrued as of October The Company is evaluating options for upgrading the wastewater treatment facilities at its Adams, Massachusetts plant. This work has been undertaken pursuant to an administrative Consent Order originally issued by the Massachusetts Department of Environmental Protection (“DEP”) on June This order was amended on June and on June The amended Order includes the investigation by January of options for ensuring that the facility's wastewater treatment ponds will not result in unpermitted discharge to groundwater. Additional requirements of the amendment include the submittal by July of a plan for closure of a historic lime solids disposal area. Preliminary engineering reviews completed in indicate that the estimated cost of wastewater treatment upgrades to operate this facility beyond may be between and . The Company estimates that the remaining remediation costs would approximate , which has been accrued as of October The Company and its subsidiaries are not party to any other material pending legal proceedings, other than routine litigation incidental to their businesses. |
Non-controlling interests
Non-controlling interests | 9 Months Ended |
Oct. 02, 2016 | |
Non-controlling interests [Abstract] | |
Non-controlling interests | Note Non-controlling interests The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests: Equity Attributable to MTI Accumulated Additional Other Common Paid-in Retained Comprehensive Treasury Non-controlling Stock Capital Earnings Income (Loss) Stock Interests Total (millions of dollars) Balance as of December $ 4.8 $ 387.6 $ 1,292.7 $ (180.9 ) $ (593.7 ) $ $ 27.2 $ 937.7 Net income - - 96.7 - - 2.9 99.6 Other comprehensive income (loss) - - - 6.2 - (0.7 ) 5.5 Dividends declared - - (5.2 ) - - - (5.2 ) Dividends to non-controlling interest - - - - - (1.5 ) (1.5 ) Purchases of common shares - - - - (2.6 ) - (2.6 ) Issuance of shares pursuant to employee stock compensation plans - 4.1 - - - - 4.1 Income tax benefit arising from employee stock compensation plans - 0.2 - - - - 0.2 Stock based compensation - 3.5 - - - - 3.5 Balance as of October $ 4.8 $ 395.4 $ 1,384.2 $ (174.7 ) $ (596.3 ) $ 27.9 $ 1,041.3 The income attributable to non-controlling interests for the nine-month periods ended October 2, 2016 and September 27, 2015 was from continuing operations. The remainder of income was attributable to MTI. |
Segment and Related Information
Segment and Related Information | 9 Months Ended |
Oct. 02, 2016 | |
Segment and Related Information [Abstract] | |
Segment and Related Information | Note Segment and Related Information The Company has reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services. Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Net Sales Specialty Minerals $ 147.3 $ 156.5 $ 453.5 $ 466.9 Refractories 63.4 77.4 206.5 227.7 Performance Materials 119.5 126.5 367.1 383.5 Construction Technologies 49.5 49.7 144.0 140.7 Energy Services 19.8 40.9 65.6 148.8 Total $ 399.5 $ 451.0 $ 1,236.7 $ 1,367.6 Income from Operations Specialty Minerals $ 27.8 $ 25.0 $ 81.1 $ 75.2 Refractories 10.1 7.9 27.2 24.5 Performance Materials 22.9 22.7 70.7 72.0 Construction Technologies 7.3 6.1 21.0 18.5 Energy Services 2.6 (7.9 ) (27.0 ) (14.2 ) Total $ 70.7 $ 53.8 $ 173.0 $ 176.0 A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows: Income from operations before provision for taxes on income Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Income from operations for reportable segments $ 70.7 $ 53.8 $ 173.0 $ 176.0 Acquisition Related Transaction and Integration Costs (1.9 ) (2.4 ) (5.1 ) (8.5 ) Unallocated corporate expenses (1.5 ) (1.5 ) (3.5 ) (4.9 ) Consolidated income from operations 67.3 49.9 164.4 162.6 Non-operating deductions, net (14.0 ) (11.7 ) (39.7 ) (44.3 ) Income from continuing operations before provision for taxes on income $ 53.3 $ 38.2 $ 124.7 $ 118.3 The Company's sales by product category are as follows: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Paper PCC $ 95.3 $ 106.1 $ 295.5 $ 315.9 Specialty PCC 16.4 15.8 50.2 48.5 Talc 13.9 13.9 42.7 41.9 Ground Calcium Carbonate 21.7 20.7 65.1 60.6 Refractory Products 51.0 60.5 163.3 178.3 Metallurgical Products 12.4 16.9 43.2 49.4 Metalcasting 63.1 63.4 191.1 200.3 Household, Personal Care and Specialty Products 42.1 43.0 131.4 126.6 Basic Minerals and Other Products 14.3 20.1 44.6 56.6 Environmental Products 24.6 21.7 64.5 55.2 Building Materials and Other Products 24.9 28.0 79.5 85.5 Energy Services 19.8 40.9 65.6 148.8 Total $ 399.5 $ 451.0 $ 1,236.7 $ 1,367.6 |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2016 | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we” or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included. The results for the three-month and nine-month periods ended October 2, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
Use of Estimates | Use of Estimates The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations. Revenue from Contracts with Customers In May the FASB issued ASU No. - “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a -step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures. The Company expects to complete this analysis in early Inventory – Simplifying the Measurement of Inventory In July the FASB issued ASU No. - “Inventory (Topic : Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. - defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU - is effective for fiscal years beginning after December and interim periods within fiscal years beginning after December with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Leases In February the FASB issued ASU - “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU - is effective for public business entities for annual and interim periods in fiscal years beginning after December ASU - mandates a modified retrospective transition method for all entities. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not expect the adoption of this guidance to have a material impact on the Company’s financial statements. Investments – Equity Method and Joint Ventures In March the FASB issued ASU - “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. ASU - is effective for all entities for interim and annual periods in fiscal years beginning after December The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Stock Compensation – Improvements to Employee Share-Based Payment Accounting In March the FASB issued ASU - “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes aspects of the accounting for share-based payment award transactions, including: accounting for income taxes; classification of excess tax benefits on the statement of cash flows; forfeitures; minimum statutory tax withholding requirements; classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; practical expedient – expected term (nonpublic only); and intrinsic value (nonpublic only). The ASU is effective for fiscal years beginning after December and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures. |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share (EPS) [Abstract] | |
Schedule of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (in s, except per share data) Net income attributable to MTI $ 41.6 $ 29.2 $ 96.7 $ 91.0 Weighted average shares outstanding 34.9 34.7 34.8 34.7 Dilutive effect of stock options and stock units 0.4 0.3 0.3 0.3 Weighted average shares outstanding, adjusted 35.3 35.0 35.1 35.0 Basic earnings per share attributable to MTI $ 1.19 $ 0.84 $ 2.78 $ 2.62 Diluted earnings per share attributable to MTI $ 1.18 $ 0.83 $ 2.75 $ 2.60 |
Restructuring and Other Items22
Restructuring and Other Items, net (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Restructuring and Other Items, net [Abstract] | |
Schedule of restructuring charges | The following table outlines the amount of restructuring charges recorded within the Condensed Consolidated Statements of Income. Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. (millions of dollars) 2016 2015 2016 2015 Restructuring Charges $ 0.6 $ 5.2 $ 11.8 $ 6.2 Impairment of Assets - 5.3 18.5 21.1 Other (2.9 ) - (2.9 ) - Total restructuring and other items, net $ (2.3 ) $ 10.5 $ 27.4 $ 27.3 |
Reconciliation of restructuring liability | The following table is a reconciliation of our restructuring liability balance as of October 2, 2016: (millions of dollars) Restructuring liability, December $ 7.9 Additional provisions 11.8 Cash payments (15.5 ) Other (0.3 ) Restructuring liability, October $ 3.9 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Inventories [Abstract] | |
Inventories by major category | The following is a summary of inventories by major category: October December 2016 2015 (millions of dollars) Raw materials $ 81.3 $ 73.4 Work-in-process 5.8 5.4 Finished goods 91.1 86.1 Packaging and supplies 30.9 30.0 Total inventories $ 209.1 $ 194.9 |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Goodwill and Other Intangible Assets [Abstract] | |
Acquired intangible assets subject to amortization | Acquired intangible assets subject to amortization as of October 2, 2016 and December 31, 2015 were as follows: October December Weighted Average Useful Life (Years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (millions of dollars) Tradenames 34 $ 199.8 $ 13.8 $ 199.8 $ 9.3 Technology 12 18.8 3.4 18.8 2.5 Patents and trademarks 17 6.4 4.7 6.4 4.4 Customer relationships 30 4.5 1.2 4.5 0.6 28 $ 229.5 $ 23.1 $ 229.5 $ 16.8 |
Long-Term Debt and Commitments
Long-Term Debt and Commitments (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Long-Term Debt and Commitments [Abstract] | |
Summary of long term debt | The following is a summary of long-term debt: October December 2016 2015 (millions of dollars) Term Loan Facility due May net of unamortized discount and deferred financing costs of and , respectively $ 1,110.3 $ 1,246.4 China Loan Facilities 11.6 12.0 Total $ 1,121.9 $ 1,258.4 Less: Current maturities 4.6 3.1 Long-term debt $ 1,117.3 $ 1,255.3 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Benefit Plans [Abstract] | |
Components of net periodic benefit cost | Components of Net Periodic Benefit Cost Pension Benefits Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars Service cost $ 1.7 $ 2.8 $ 6.3 $ 8.1 Interest cost 3.1 3.7 9.8 11.6 Expected return on plan assets (4.6 ) (4.9 ) (13.9 ) (14.9 ) Amortization: Prior service cost 0.2 0.1 0.6 0.6 Recognized net actuarial loss 2.5 3.2 7.6 8.9 Net periodic benefit cost $ 2.9 $ 4.9 $ 10.4 $ 14.3 Other Benefits Three Months Ended Nine Months Ended Oct. 2016 Sept. 2015 Oct. 2016 Sept. 2015 (millions of dollars Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 0.1 0.1 0.3 0.3 Amortization: Prior service cost (0.8 ) (0.7 ) (2.3 ) (2.3 ) Recognized net actuarial gain (0.1 ) (0.1 ) (0.2 ) (0.1 ) Net periodic benefit cost $ (0.7 ) $ (0.6 ) $ (1.9 ) $ (1.8 ) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Comprehensive Income [Abstract] | |
Reclassifications out of accumulated other comprehensive income, net of related tax | The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss) attributable to the Company: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) 2016 2015 2016 2015 (millions of dollars) Amortization of pension items: Pre-tax amount $ 1.8 $ 2.5 $ 5.7 $ 7.1 Tax (0.6 ) (0.9 ) (1.9 ) (2.5 ) Net of tax $ 1.2 $ 1.6 $ 3.8 $ 4.6 |
Accumulated other comprehensive income, net of related tax, attributable to MTI | The major components of accumulated other comprehensive income, net of related tax, attributable to MTI are as follows: Foreign Currency Translation Adjustment Unrecognized Pension Costs Net Gain on Cash Flow Hedges Total (millions of dollars) Balance as of December $ (108.7 ) $ (74.8 ) $ 2.6 $ (180.9 ) Other comprehensive income (loss) before reclassifications 2.7 3.8 (0.3 ) 6.2 - Net current period other comprehensive income (loss) 2.7 3.8 (0.3 ) 6.2 Balance as of October $ (106.0 ) $ (71.0 ) $ 2.3 $ (174.7 ) |
Accounting for Asset Retireme28
Accounting for Asset Retirement Obligations (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Accounting for Asset Retirement Obligations [Abstract] | |
Reconciliation of asset retirement obligations | The following is a reconciliation of asset retirement obligations as of October 2, 2016: (millions of dollars) Asset retirement liability, December $ 21.4 Accretion expense 1.2 Additions 0.1 Payments (1.4 ) Foreign currency translation 0.3 Asset retirement liability, October $ 21.6 |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Non-controlling interests [Abstract] | |
Total equity, equity attributable to MTI, and equity attributable to noncontrolling interests | The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests: Equity Attributable to MTI Accumulated Additional Other Common Paid-in Retained Comprehensive Treasury Non-controlling Stock Capital Earnings Income (Loss) Stock Interests Total (millions of dollars) Balance as of December $ 4.8 $ 387.6 $ 1,292.7 $ (180.9 ) $ (593.7 ) $ $ 27.2 $ 937.7 Net income - - 96.7 - - 2.9 99.6 Other comprehensive income (loss) - - - 6.2 - (0.7 ) 5.5 Dividends declared - - (5.2 ) - - - (5.2 ) Dividends to non-controlling interest - - - - - (1.5 ) (1.5 ) Purchases of common shares - - - - (2.6 ) - (2.6 ) Issuance of shares pursuant to employee stock compensation plans - 4.1 - - - - 4.1 Income tax benefit arising from employee stock compensation plans - 0.2 - - - - 0.2 Stock based compensation - 3.5 - - - - 3.5 Balance as of October $ 4.8 $ 395.4 $ 1,384.2 $ (174.7 ) $ (596.3 ) $ 27.9 $ 1,041.3 |
Segment and Related Informati30
Segment and Related Information (Tables) | 9 Months Ended |
Oct. 02, 2016 | |
Segment and Related Information [Abstract] | |
Segment information | Segment information for the three and nine-month periods ended October 2, 2016 and September 27, 2015 is as follows: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Net Sales Specialty Minerals $ 147.3 $ 156.5 $ 453.5 $ 466.9 Refractories 63.4 77.4 206.5 227.7 Performance Materials 119.5 126.5 367.1 383.5 Construction Technologies 49.5 49.7 144.0 140.7 Energy Services 19.8 40.9 65.6 148.8 Total $ 399.5 $ 451.0 $ 1,236.7 $ 1,367.6 Income from Operations Specialty Minerals $ 27.8 $ 25.0 $ 81.1 $ 75.2 Refractories 10.1 7.9 27.2 24.5 Performance Materials 22.9 22.7 70.7 72.0 Construction Technologies 7.3 6.1 21.0 18.5 Energy Services 2.6 (7.9 ) (27.0 ) (14.2 ) Total $ 70.7 $ 53.8 $ 173.0 $ 176.0 |
Reconciliation of income from operations before provision for taxes on income | A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows: Income from operations before provision for taxes on income Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Income from operations for reportable segments $ 70.7 $ 53.8 $ 173.0 $ 176.0 Acquisition Related Transaction and Integration Costs (1.9 ) (2.4 ) (5.1 ) (8.5 ) Unallocated corporate expenses (1.5 ) (1.5 ) (3.5 ) (4.9 ) Consolidated income from operations 67.3 49.9 164.4 162.6 Non-operating deductions, net (14.0 ) (11.7 ) (39.7 ) (44.3 ) Income from continuing operations before provision for taxes on income $ 53.3 $ 38.2 $ 124.7 $ 118.3 |
Sales by product category | The Company's sales by product category are as follows: Three Months Ended Nine Months Ended Oct. Sept. Oct. Sept. 2016 2015 2016 2015 (millions of dollars) Paper PCC $ 95.3 $ 106.1 $ 295.5 $ 315.9 Specialty PCC 16.4 15.8 50.2 48.5 Talc 13.9 13.9 42.7 41.9 Ground Calcium Carbonate 21.7 20.7 65.1 60.6 Refractory Products 51.0 60.5 163.3 178.3 Metallurgical Products 12.4 16.9 43.2 49.4 Metalcasting 63.1 63.4 191.1 200.3 Household, Personal Care and Specialty Products 42.1 43.0 131.4 126.6 Basic Minerals and Other Products 14.3 20.1 44.6 56.6 Environmental Products 24.6 21.7 64.5 55.2 Building Materials and Other Products 24.9 28.0 79.5 85.5 Energy Services 19.8 40.9 65.6 148.8 Total $ 399.5 $ 451.0 $ 1,236.7 $ 1,367.6 |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Oct. 02, 2016SegmentFacility | |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Number of reportable segments | Segment | 5 |
Minimum number of mining or production facilities | Facility | 25 |
Earnings Per Share (EPS) (Detai
Earnings Per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Earnings Per Share (EPS) [Abstract] | ||||
Net income attributable to MTI | $ 41.6 | $ 29.2 | $ 96.7 | $ 91 |
Weighted average shares outstanding (in shares) | 34,900,000 | 34,700,000 | 34,800,000 | 34,700,000 |
Dilutive effect of stock options and stock units (in shares) | 400,000 | 300,000 | 300,000 | 300,000 |
Weighted average shares outstanding, adjusted (in shares) | 35,300,000 | 35,000,000 | 35,100,000 | 35,000,000 |
Basic earnings per share attributable to MTI (in dollars per share) | $ 1.19 | $ 0.84 | $ 2.78 | $ 2.62 |
Diluted earnings per share attributable to MTI (in dollars per share) | $ 1.18 | $ 0.83 | $ 2.75 | $ 2.60 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities not included in the weighted average commons shares outstanding calculation (in shares) | 10,239 | 395,545 | 10,239 | 395,545 |
Restructuring and Other Items33
Restructuring and Other Items, net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | Dec. 31, 2014 | |
Restructuring and Other Items, net [Abstract] | |||||
Reduction in workforce | 10.00% | ||||
Annualized savings from restructuring program | $ 11.5 | ||||
Restructuring and Other Charges [Abstract] | |||||
Restructuring Charges | $ 0.6 | $ 5.2 | 11.8 | $ 6.2 | |
Impairment of Assets | 0 | 5.3 | 18.5 | 21.1 | |
Other | (2.9) | 0 | (2.9) | 0 | |
Total restructuring and other items, net | (2.3) | $ 10.5 | 27.4 | $ 27.3 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring liability, beginning of period | 7.9 | ||||
Additional provisions | 11.8 | ||||
Cash payments | (15.5) | ||||
Other | (0.3) | ||||
Restructuring liability, ending of period | $ 3.9 | $ 3.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Income Taxes [Abstract] | ||||
Amount of unrecognized tax benefits | $ 10.2 | $ 10.2 | ||
Unrecognized tax benefits that would impact effective tax rate | 7.3 | 7.3 | ||
Unrecognized tax benefits, net increase in penalties and interest expense | 0.1 | 0.2 | ||
Unrecognized tax benefits, accrued interest and penalties | 1.1 | 1.1 | ||
Provision for taxes on income | $ 11.5 | $ 8.4 | $ 26.7 | $ 25.8 |
Effective income tax rate | 21.40% | 21.80% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 02, 2016 | Dec. 31, 2015 | ||
Inventories [Abstract] | ||||
Raw materials | $ 81.3 | $ 73.4 | ||
Work-in-process | 5.8 | 5.4 | ||
Finished goods | 91.1 | 86.1 | ||
Packaging and supplies | 30.9 | 30 | ||
Total inventories | $ 209.1 | [1] | $ 194.9 | [2] |
[1] | Unaudited | |||
[2] | Condensed from audited financial statements |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Oct. 02, 2016 | Dec. 31, 2015 | |||
Goodwill and Other Intangible Assets [Abstract] | ||||
Goodwill | $ 780.3 | [1] | $ 781.2 | [2] |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life | 28 years | |||
Gross Carrying Amount | $ 229.5 | 229.5 | ||
Accumulated Amortization | $ 23.1 | 16.8 | ||
Tradenames [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life | 34 years | |||
Gross Carrying Amount | $ 199.8 | 199.8 | ||
Accumulated Amortization | $ 13.8 | 9.3 | ||
Technology [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life | 12 years | |||
Gross Carrying Amount | $ 18.8 | 18.8 | ||
Accumulated Amortization | $ 3.4 | 2.5 | ||
Patents and Trademarks [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life | 17 years | |||
Gross Carrying Amount | $ 6.4 | 6.4 | ||
Accumulated Amortization | $ 4.7 | 4.4 | ||
Customer Relationships [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life | 30 years | |||
Gross Carrying Amount | $ 4.5 | 4.5 | ||
Accumulated Amortization | $ 1.2 | $ 0.6 | ||
Acquired Finite-Lived Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period for acquired intangible assets subject to amortization | 28 years | |||
Estimated amortization expense, 2016 | $ 2 | |||
Estimated amortization expense, 2017 | 7.9 | |||
Estimated amortization expense, 2018 | 7.9 | |||
Estimated amortization expense, 2019 | 7.9 | |||
Estimated amortization expense, 2020 | 7.9 | |||
Estimated amortization expense, thereafter | $ 172.9 | |||
[1] | Unaudited | |||
[2] | Condensed from audited financial statements |
Derivative Financial Instrume37
Derivative Financial Instruments (Details) - Cash Flow Hedges [Member] - Interest Rate Swaps [Member] - USD ($) $ in Millions | Oct. 02, 2016 | Jul. 03, 2016 |
Other Non-current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities | $ 0.5 | |
Designated [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 271 | $ 300 |
Long-Term Debt and Commitment38
Long-Term Debt and Commitments (Details) ¥ in Millions, $ in Millions | 9 Months Ended | |||||||
Oct. 02, 2016USD ($)Loan | Sep. 27, 2015USD ($) | Oct. 02, 2016CNY (¥) | Dec. 31, 2015USD ($) | Jun. 23, 2015USD ($) | May 09, 2014USD ($) | |||
Debt Instrument [Line Items] | ||||||||
Debt | $ 1,121.9 | $ 1,258.4 | ||||||
Less: Current maturities | 4.6 | [1] | 3.1 | [2] | ||||
Long-term debt | 1,117.3 | [1] | 1,255.3 | [2] | ||||
Maximum borrowing capacity | 36.6 | |||||||
Repayments of long-term debt | 141.2 | $ 140.4 | ||||||
Uncommitted short-term bank credit lines, amount outstanding | $ 6.3 | |||||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net leverage ratio | 3.50 | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net leverage ratio | 5.25 | |||||||
Term Loan Facility Due May 9, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | $ 1,110.3 | 1,246.4 | ||||||
Long-term debt, unamortized discount and deferred financing costs | $ 10.3 | 17.4 | ||||||
Maturity date | May 9, 2021 | |||||||
Long-term debt, gross | $ 0 | $ 1,560 | ||||||
Maximum borrowing capacity | $ 1,378 | |||||||
Repayments of long-term debt | $ 140 | |||||||
Term Loan Facility Due May 9, 2021 [Member] | LIBOR [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility variable interest rate | 0.75% | 0.75% | ||||||
Term Loan Facility Due May 9, 2021 [Member] | LIBOR [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility variable interest rate | 3.00% | 3.00% | ||||||
Term Loan Facility Due May 9, 2021 [Member] | Floating Rate Tranche [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 1,078 | |||||||
Amortization rate on notes | 1.00% | |||||||
Term Loan Facility Due May 9, 2021 [Member] | Fixed Rate Tranche [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 300 | |||||||
Facility variable interest rate | 4.75% | 4.75% | ||||||
China Loan Facilities [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt | $ 11.6 | $ 12 | ||||||
Maturity date | Dec. 31, 2019 | |||||||
Debt instrument outstanding | $ 11.6 | |||||||
Maximum borrowing capacity | $ 1.8 | ¥ 94.8 | ||||||
Number of committed loan facilities | Loan | 4 | |||||||
Repayments of long-term debt | $ 1.2 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | May 9, 2019 | |||||||
Maximum borrowing capacity | $ 200 | |||||||
Basis points related to debt | 0.25% | |||||||
Letters of credit outstanding | $ 12.1 | |||||||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Facility variable interest rate | 1.75% | 1.75% | ||||||
Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 15 | |||||||
[1] | Unaudited | |||||||
[2] | Condensed from audited financial statements |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Employer Contributions [Abstract] | ||||
Maximum percentage of total benefit obligation for international pension plans | 25.00% | 25.00% | ||
Pension Benefits [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 1.7 | $ 2.8 | $ 6.3 | $ 8.1 |
Interest cost | 3.1 | 3.7 | 9.8 | 11.6 |
Expected return on plan assets | (4.6) | (4.9) | (13.9) | (14.9) |
Amortization [Abstract] | ||||
Prior service cost | 0.2 | 0.1 | 0.6 | 0.6 |
Recognized net actuarial (gain)/loss | 2.5 | 3.2 | 7.6 | 8.9 |
Net periodic benefit cost | 2.9 | 4.9 | 10.4 | 14.3 |
Employer Contributions [Abstract] | ||||
Expected company contribution to its benefit plans | 9 | |||
Company contribution to benefit plans | 7.1 | |||
Other Benefits [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 0.1 | 0.1 | 0.3 | 0.3 |
Interest cost | 0.1 | 0.1 | 0.3 | 0.3 |
Amortization [Abstract] | ||||
Prior service cost | (0.8) | (0.7) | (2.3) | (2.3) |
Recognized net actuarial (gain)/loss | (0.1) | (0.1) | (0.2) | (0.1) |
Net periodic benefit cost | $ (0.7) | $ (0.6) | (1.9) | $ (1.8) |
Employer Contributions [Abstract] | ||||
Expected company contribution to its benefit plans | 0.5 | |||
Company contribution to benefit plans | $ 0.1 |
Comprehensive Income (Details)
Comprehensive Income (Details) - Pension Costs [Member] - Reclassification out of Accumulated Other Comprehensive Income [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Pre-tax amount | $ 1.8 | $ 2.5 | $ 5.7 | $ 7.1 |
Tax | (0.6) | (0.9) | (1.9) | (2.5) |
Net of tax | $ 1.2 | $ 1.6 | $ 3.8 | $ 4.6 |
Comprehensive Income, Accumulat
Comprehensive Income, Accumulated Other Comprehensive Income, Net of Related Tax (Details) $ in Millions | 9 Months Ended | |
Oct. 02, 2016USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 910.5 | [1] |
Other comprehensive income (loss) before reclassifications | 6.2 | |
Net current period other comprehensive income (loss) | 6.2 | |
Balance at end of period | 1,013.4 | [2] |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (180.9) | |
Balance at end of period | (174.7) | |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (108.7) | |
Other comprehensive income (loss) before reclassifications | 2.7 | |
Net current period other comprehensive income (loss) | 2.7 | |
Balance at end of period | (106) | |
Unrecognized Pension Costs [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (74.8) | |
Other comprehensive income (loss) before reclassifications | 3.8 | |
Net current period other comprehensive income (loss) | 3.8 | |
Balance at end of period | (71) | |
Net Gain on Cash Flow Hedges [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | 2.6 | |
Other comprehensive income (loss) before reclassifications | (0.3) | |
Net current period other comprehensive income (loss) | (0.3) | |
Balance at end of period | $ 2.3 | |
[1] | Condensed from audited financial statements | |
[2] | Unaudited |
Accounting for Asset Retireme42
Accounting for Asset Retirement Obligations (Details) $ in Millions | 9 Months Ended |
Oct. 02, 2016USD ($) | |
Accounting for Asset Retirement Obligations [Abstract] | |
Asset retirement liability, beginning balance | $ 21.4 |
Accretion expense | 1.2 |
Additions | 0.1 |
Payments | (1.4) |
Foreign currency translation | 0.3 |
Asset retirement liability, ending balance | 21.6 |
Asset retirement obligation current portion | 2.1 |
Asset retirement obligation noncurrent portion | $ 19.5 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016USD ($)Case | Oct. 02, 2016USD ($)ContractLoadCase | Oct. 24, 2014USD ($) | Dec. 31, 2009 | |
Loss Contingencies [Line Items] | ||||
Number of contracts entered | Contract | 2 | |||
Number of ship loads | Load | 60 | |||
Default arbitration award | $ | $ 70 | |||
Site Contingency [Line Items] | ||||
Consent decree paid by US government | $ | $ 2.3 | |||
AMCOL International Corporation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Ownership interest | 19.00% | 19.00% | 20.00% | |
Administrative Consent Order for Contamination Associated with Historic Use of PCBs [Member] | ||||
Site Contingency [Line Items] | ||||
Location of plant | Canaan, Connecticut | |||
Estimated accrued remediation cost | $ | $ 0.4 | $ 0.4 | ||
Administrative Consent Order for Installation of Groundwater Contamination System [Member] | ||||
Site Contingency [Line Items] | ||||
Location of plant | Adams, Massachusetts plant | |||
Estimated accrued remediation cost | $ | $ 0.4 | $ 0.4 | ||
Estimated cost of wastewater treatment upgrades, lower range | $ | 6 | |||
Estimated cost of wastewater treatment upgrades, upper range | $ | $ 8 | |||
Silica Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending cases | 3 | 3 | ||
Cumulative number of cases dismissed | 1,492 | 1,492 | ||
Number of cases dismissed | 0 | |||
Number of new cases filed during the quarter | 0 | |||
Number of lawsuits settled | 1 | |||
Asbestos Cases [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending cases | 14 | 14 | ||
Cumulative number of cases dismissed | 48 | 48 | ||
Number of cases dismissed | 0 | |||
Number of new cases filed during the quarter | 0 | |||
Number of lawsuits settled | 0 | |||
Number of allege liability | 2 | |||
Number of cases with no alleged exposure | 1 |
Non-controlling interests (Deta
Non-controlling interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | ||
Noncontrolling Interest [Line Items] | |||||
Balance | [1] | $ 937.7 | |||
Net income | $ 42.5 | $ 30.3 | 99.6 | $ 93.9 | |
Other comprehensive income (loss) | 2.8 | $ (34.2) | 5.5 | $ (61.5) | |
Dividends declared | (5.2) | ||||
Dividends to non-controlling interest | (1.5) | ||||
Purchases of common shares | (2.6) | ||||
Issuance of shares pursuant to employee stock compensation plans | 4.1 | ||||
Income tax benefit arising from employee stock compensation plans | 0.2 | ||||
Stock based compensation | 3.5 | ||||
Balance | [2] | 1,041.3 | 1,041.3 | ||
Common Stock [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | 4.8 | ||||
Net income | 0 | ||||
Other comprehensive income (loss) | 0 | ||||
Dividends declared | 0 | ||||
Dividends to non-controlling interest | 0 | ||||
Purchases of common shares | 0 | ||||
Issuance of shares pursuant to employee stock compensation plans | 0 | ||||
Income tax benefit arising from employee stock compensation plans | 0 | ||||
Stock based compensation | 0 | ||||
Balance | 4.8 | 4.8 | |||
Additional Paid-in Capital [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | 387.6 | ||||
Net income | 0 | ||||
Other comprehensive income (loss) | 0 | ||||
Dividends declared | 0 | ||||
Dividends to non-controlling interest | 0 | ||||
Purchases of common shares | 0 | ||||
Issuance of shares pursuant to employee stock compensation plans | 4.1 | ||||
Income tax benefit arising from employee stock compensation plans | 0.2 | ||||
Stock based compensation | 3.5 | ||||
Balance | 395.4 | 395.4 | |||
Retained Earnings [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | 1,292.7 | ||||
Net income | 96.7 | ||||
Other comprehensive income (loss) | 0 | ||||
Dividends declared | (5.2) | ||||
Dividends to non-controlling interest | 0 | ||||
Purchases of common shares | 0 | ||||
Issuance of shares pursuant to employee stock compensation plans | 0 | ||||
Income tax benefit arising from employee stock compensation plans | 0 | ||||
Stock based compensation | 0 | ||||
Balance | 1,384.2 | 1,384.2 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | (180.9) | ||||
Net income | 0 | ||||
Other comprehensive income (loss) | 6.2 | ||||
Dividends declared | 0 | ||||
Dividends to non-controlling interest | 0 | ||||
Purchases of common shares | 0 | ||||
Issuance of shares pursuant to employee stock compensation plans | 0 | ||||
Income tax benefit arising from employee stock compensation plans | 0 | ||||
Stock based compensation | 0 | ||||
Balance | (174.7) | (174.7) | |||
Treasury Stock [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | (593.7) | ||||
Net income | 0 | ||||
Other comprehensive income (loss) | 0 | ||||
Dividends declared | 0 | ||||
Dividends to non-controlling interest | 0 | ||||
Purchases of common shares | (2.6) | ||||
Issuance of shares pursuant to employee stock compensation plans | 0 | ||||
Income tax benefit arising from employee stock compensation plans | 0 | ||||
Stock based compensation | 0 | ||||
Balance | (596.3) | (596.3) | |||
Non-controlling Interests [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Balance | 27.2 | ||||
Net income | 2.9 | ||||
Other comprehensive income (loss) | (0.7) | ||||
Dividends declared | 0 | ||||
Dividends to non-controlling interest | (1.5) | ||||
Purchases of common shares | 0 | ||||
Issuance of shares pursuant to employee stock compensation plans | 0 | ||||
Income tax benefit arising from employee stock compensation plans | 0 | ||||
Stock based compensation | 0 | ||||
Balance | $ 27.9 | $ 27.9 | |||
[1] | Condensed from audited financial statements | ||||
[2] | Unaudited |
Segment and Related Informati45
Segment and Related Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016USD ($) | Sep. 27, 2015USD ($) | Oct. 02, 2016USD ($)Segment | Sep. 27, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 5 | |||
Net Sales | $ 399.5 | $ 451 | $ 1,236.7 | $ 1,367.6 |
Income from Operations | 67.3 | 49.9 | 164.4 | 162.6 |
Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 399.5 | 451 | 1,236.7 | 1,367.6 |
Income from Operations | 70.7 | 53.8 | 173 | 176 |
Specialty Minerals [Member] | Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 147.3 | 156.5 | 453.5 | 466.9 |
Income from Operations | 27.8 | 25 | 81.1 | 75.2 |
Refractories [Member] | Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 63.4 | 77.4 | 206.5 | 227.7 |
Income from Operations | 10.1 | 7.9 | 27.2 | 24.5 |
Performance Materials [Member] | Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 119.5 | 126.5 | 367.1 | 383.5 |
Income from Operations | 22.9 | 22.7 | 70.7 | 72 |
Construction Technologies [Member] | Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 49.5 | 49.7 | 144 | 140.7 |
Income from Operations | 7.3 | 6.1 | 21 | 18.5 |
Energy Services [Member] | Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | 19.8 | 40.9 | 65.6 | 148.8 |
Income from Operations | $ 2.6 | $ (7.9) | $ (27) | $ (14.2) |
Segment and Related Informati46
Segment and Related Information, Reconciliation of Operating Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Income from operations before provision for taxes on income [Abstract] | ||||
Acquisition Related Transaction and Integration Costs | $ (1.9) | $ (2.4) | $ (5.1) | $ (8.5) |
Unallocated corporate expenses | (1.5) | (1.5) | (3.5) | (4.9) |
Consolidated income from operations | 67.3 | 49.9 | 164.4 | 162.6 |
Non-operating deductions, net | (14) | (11.7) | (39.7) | (44.3) |
Income from continuing operations before provision for taxes and equity in earnings | 53.3 | 38.2 | 124.7 | 118.3 |
Reportable Segments [Member] | ||||
Income from operations before provision for taxes on income [Abstract] | ||||
Consolidated income from operations | $ 70.7 | $ 53.8 | $ 173 | $ 176 |
Segment and Related Informati47
Segment and Related Information, Sales By Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Oct. 02, 2016 | Sep. 27, 2015 | |
Revenue from External Customer [Line Items] | ||||
Net Sales | $ 399.5 | $ 451 | $ 1,236.7 | $ 1,367.6 |
Paper PCC [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 95.3 | 106.1 | 295.5 | 315.9 |
Specialty PCC [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 16.4 | 15.8 | 50.2 | 48.5 |
Talc [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 13.9 | 13.9 | 42.7 | 41.9 |
Ground Calcium Carbonate [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 21.7 | 20.7 | 65.1 | 60.6 |
Refractory Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 51 | 60.5 | 163.3 | 178.3 |
Metallurgical Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 12.4 | 16.9 | 43.2 | 49.4 |
Metalcasting [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 63.1 | 63.4 | 191.1 | 200.3 |
Household, Personal Care and Specialty Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 42.1 | 43 | 131.4 | 126.6 |
Basic Minerals and Other Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 14.3 | 20.1 | 44.6 | 56.6 |
Environmental Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 24.6 | 21.7 | 64.5 | 55.2 |
Building Materials and Other Products [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | 24.9 | 28 | 79.5 | 85.5 |
Energy Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net Sales | $ 19.8 | $ 40.9 | $ 65.6 | $ 148.8 |