x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 82-4699376 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2929 Walnut Street Philadelphia, Pennsylvania | 19104 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $0.001 per share | LTHM | New York Stock Exchange |
LARGE ACCELERATED FILER | o | ACCELERATED FILER | o | |||
NON-ACCELERATED FILER | x | SMALLER REPORTING COMPANY | o | |||
EMERGING GROWTH COMPANY | x | |||||
IF AN EMERGING GROWTH COMPANY, INDICATE BY CHECK MARK IF THE REGISTRANT HAS ELECTED NOT TO USE THE EXTENDED TRANSITION PERIOD FOR COMPLYING WITH ANY NEW OR REVISED FINANCIAL ACCOUNTING STANDARDS PROVIDED PURSUANT TO SECTION 13(A) OF THE EXCHANGE ACT. | ||||||
x |
Page No. | |
AOCI | Accumulated other comprehensive income |
ASC | Accounting Standards Codification, under U.S. GAAP |
ASU | Accounting Standards Update, under U.S. GAAP |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act |
Distribution | On March 1, 2019, FMC made a tax-free distribution to its stockholders of all its remaining interest in Livent Corporation |
EAETR | Estimated annual effective tax rate |
Exchange Act | Securities and Exchange Act of 1934 |
EV | Electric vehicle |
FASB | Financial Accounting Standards Board |
FMC | FMC Corporation |
FMC Plan | FMC Corporation Incentive Compensation and Stock Plan |
IPO | Initial public offering |
kMT | Thousand metric tons |
Lithium Business | Substantially all of the assets and liabilities of FMC's lithium business segment transferred to Livent in the Separation |
Livent NQSP | Livent Non-Qualified Savings Plan, our deferred compensation plan |
Livent Plan | Livent Corporation Incentive Compensation and Stock Plan |
NYSE | New York Stock Exchange |
RCRA | Resource Conservation and Recovery Act |
Revolving Credit Facility | Livent's $400 million senior secured revolving credit facility |
ROU asset | Right-of-use asset |
RSU | Restricted stock unit |
SEC | Securities and Exchange Commission |
Securities Act | Securities Act of 1933 |
Separation Date | On October 15, 2018, Livent Corporation completed the IPO and sold 20 million shares of Livent common stock to the public at a price of $17.00 per share |
Tax Act | Tax Cuts and Jobs Act |
TMA | Tax Matters Agreement by and between Livent and FMC |
TSA | Transition Services Agreement by and between Livent and FMC |
U.S. GAAP | United States Generally Accepted Accounting Principles |
VAT | Value-added tax |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in Millions, Except Per Share Data) | (Unaudited) | ||||||||||||||
Revenue | $ | 114.0 | $ | 107.9 | $ | 212.3 | $ | 210.7 | |||||||
Costs and Expenses | |||||||||||||||
Cost of sales | 80.2 | 54.1 | 145.8 | 104.7 | |||||||||||
Gross margin | 33.8 | 53.8 | 66.5 | 106.0 | |||||||||||
Selling, general and administrative expenses | 9.8 | 4.4 | 19.0 | 8.0 | |||||||||||
Corporate allocations | — | 5.0 | — | 10.1 | |||||||||||
Research and development expenses | 0.8 | 1.0 | 1.6 | 2.0 | |||||||||||
Restructuring and other charges | 3.8 | 0.2 | 3.9 | 2.3 | |||||||||||
Separation-related costs | 1.3 | — | 2.9 | — | |||||||||||
Total costs and expenses | 95.9 | 64.7 | 173.2 | 127.1 | |||||||||||
Income from operations before non-operating pension benefit and settlement charges and income taxes | 18.1 | 43.2 | 39.1 | 83.6 | |||||||||||
Non-operating pension benefit and settlement charges | — | — | — | 0.2 | |||||||||||
Income from operations before income taxes | 18.1 | 43.2 | 39.1 | 83.4 | |||||||||||
Provision for income taxes | 2.6 | 5.2 | 6.7 | 13.2 | |||||||||||
Net income | $ | 15.5 | $ | 38.0 | $ | 32.4 | $ | 70.2 | |||||||
Weighted average common shares outstanding - basic (1) | 146.0 | 123.0 | 146.0 | 123.0 | |||||||||||
Net income per weighted average share - basic | $ | 0.11 | $ | 0.31 | $ | 0.22 | $ | 0.57 | |||||||
Weighted average common shares outstanding - diluted (1) | 146.5 | 123.0 | 146.5 | 123.0 | |||||||||||
Net income per weighted average share - diluted | $ | 0.11 | $ | 0.31 | $ | 0.22 | $ | 0.57 |
(1) | For the prior periods presented, the weighted average shares outstanding for both basic and diluted earnings per share was calculated using 123.0 million shares of common stock outstanding, which was the number of shares issued to FMC in part in exchange for the asset contribution by FMC to us. Weighted average shares outstanding for the prior periods excludes the 23.0 million shares of common stock subsequently issued as part of the public offering and over-allotment option exercise. Refer to the discussion in Note 1 for further details. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in Millions) | (unaudited) | ||||||||||||||
Net income | $ | 15.5 | $ | 38.0 | $ | 32.4 | $ | 70.2 | |||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||
Foreign currency adjustments: | |||||||||||||||
Foreign currency translation loss arising during the period | (1.0 | ) | (3.7 | ) | — | (1.2 | ) | ||||||||
Total foreign currency translation adjustments (1) | (1.0 | ) | (3.7 | ) | — | (1.2 | ) | ||||||||
Derivative instruments: | |||||||||||||||
Unrealized hedging gains, net of tax of less than $0.1, zero, less than $0.1, and zero | 0.8 | — | 1.1 | — | |||||||||||
Reclassification of deferred hedging gains included in net income, net of tax of less than $0.1, zero, less than $0.1 and zero | (0.3 | ) | — | (0.7 | ) | — | |||||||||
Total derivative instruments gain, net of tax of less than $0.1, zero, less than $0.1 and zero | 0.5 | — | 0.4 | — | |||||||||||
Other comprehensive (loss) income, net of tax | (0.5 | ) | (3.7 | ) | 0.4 | (1.2 | ) | ||||||||
Comprehensive income | $ | 15.0 | $ | 34.3 | $ | 32.8 | $ | 69.0 |
(1) | Income taxes are not provided on the equity in undistributed earnings of our foreign subsidiaries since it is our intention that such earnings will remain invested in those subsidiaries indefinitely. |
(in Millions, Except Share and Par Value Data) | June 30, 2019 | December 31, 2018 | |||||
ASSETS | (unaudited) | ||||||
Current assets | |||||||
Cash and cash equivalents | $ | 20.3 | $ | 28.3 | |||
Trade receivables, net of allowance of $0.1 in 2019 and $0.1 in 2018 | 118.0 | 141.4 | |||||
Inventories, net | 67.5 | 71.8 | |||||
Prepaid and other current assets | 53.5 | 59.8 | |||||
Total current assets | 259.3 | 301.3 | |||||
Property, plant and equipment, net | 337.3 | 275.7 | |||||
Deferred income taxes | 7.4 | 3.0 | |||||
Right of use assets - operating leases, net | 16.5 | — | |||||
Other assets | 89.2 | 80.0 | |||||
Total assets | $ | 709.7 | $ | 660.0 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, trade and other | $ | 67.8 | $ | 72.0 | |||
Accrued and other current liabilities | 21.0 | 46.8 | |||||
Operating lease liabilities - current | 1.7 | — | |||||
Income taxes | 0.6 | 1.6 | |||||
Total current liabilities | 91.1 | 120.4 | |||||
Long-term debt | 59.1 | 34.0 | |||||
Operating lease liabilities - long-term | 14.8 | — | |||||
Environmental liabilities | 5.9 | 5.9 | |||||
Deferred income taxes | 4.2 | 2.5 | |||||
Other long-term liabilities | 11.0 | 9.3 | |||||
Commitments and contingent liabilities (Note 15) | |||||||
Equity | |||||||
Common stock; $0.001 par value; 2 billion shares authorized; 146,077,835 and 146,000,000 shares issued; and 145,979,747 and 146,000,000 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 0.1 | 0.1 | |||||
Capital in excess of par value of common stock | 514.7 | 511.1 | |||||
Retained earnings | 58.3 | 25.9 | |||||
Accumulated other comprehensive loss | (48.8 | ) | (49.2 | ) | |||
Treasury stock, common, at cost; 98,088 and 0 shares at June 30, 2019 and December 31, 2018, respectively | (0.7 | ) | — | ||||
Total equity | 523.6 | 487.9 | |||||
Total liabilities and equity | $ | 709.7 | $ | 660.0 |
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
(in Millions) | (unaudited) | ||||||
Cash provided by operating activities: | |||||||
Net income | $ | 32.4 | $ | 70.2 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 9.7 | 8.6 | |||||
Restructuring and other charges | 2.2 | 2.3 | |||||
Separation-related charges | 0.5 | — | |||||
Deferred income taxes | (2.7 | ) | — | ||||
Share-based compensation | 2.3 | 2.2 | |||||
Changes in operating assets and liabilities: | |||||||
Trade receivables, net | 23.5 | (28.1 | ) | ||||
Inventories | 4.5 | (3.3 | ) | ||||
Accounts payable, trade and other | (4.3 | ) | (14.2 | ) | |||
Changes in deferred compensation | 0.3 | — | |||||
Advance payments from customers | — | (1.8 | ) | ||||
Pension and other post-retirement benefits | — | 0.9 | |||||
Change in Due to FMC | (23.2 | ) | — | ||||
Income taxes | (1.0 | ) | (1.3 | ) | |||
Change in prepaid and other current assets and other assets | (0.9 | ) | (7.1 | ) | |||
Change in accrued and other current liabilities and other long-term liabilities | (2.0 | ) | (10.4 | ) | |||
Cash provided by operating activities | 41.3 | 18.0 | |||||
Cash required by investing activities: | |||||||
Capital expenditures(1) | (69.3 | ) | (23.4 | ) | |||
Investments in trust fund securities | (0.4 | ) | — | ||||
Other investing activities | (4.5 | ) | (3.4 | ) | |||
Cash required by investing activities | (74.2 | ) | (26.8 | ) | |||
Cash provided by financing activities: | |||||||
Proceeds from issuance of long-term debt | 116.5 | — | |||||
Payments of long-term debt | (91.4 | ) | — | ||||
Payments of financing fees | (0.1 | ) | — | ||||
Net change in net parent investment | — | 9.1 | |||||
Cash provided by financing activities | 25.0 | 9.1 | |||||
Effect of exchange rate changes on cash and cash equivalents | (0.1 | ) | — | ||||
(Decrease) increase in cash and cash equivalents | (8.0 | ) | 0.3 | ||||
Cash and cash equivalents, beginning of period | 28.3 | 1.2 | |||||
Cash and cash equivalents, end of period | $ | 20.3 | $ | 1.5 | |||
Supplemental Disclosure for Cash Flow: | |||||||
Cash payments for income taxes, net of refunds (2) | $ | 26.2 | $ | 14.5 | |||
Cash payments for interest, net (1) | $ | 1.6 | $ | — | |||
Cash payments for Separation-related charges | $ | 7.1 | $ | — | |||
Accrued capital expenditures | $ | 4.4 | $ | 4.7 | |||
Operating lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842 | $ | 16.1 | $ | — |
(1) | All of the interest related to our Revolving Credit Facility was capitalized for the three and six months ended June 30, 2019. |
(2) | Six months ended June 30, 2019 includes $16.9 million related to reimbursement paid to FMC for 2018 income taxes paid by FMC on Livent's behalf pursuant to the TMA. |
(in Millions Except Per Share Data) | Net Parent Investment | Common Stock, $0.001 Per Share Par Value | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||
Balance, January 1, 2018 | $ | 431.0 | $ | — | $ | — | $ | — | $ | (45.6 | ) | $ | — | $ | 385.4 | ||||||||||||
Net income | 32.2 | — | — | — | — | — | 32.2 | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 2.5 | — | 2.5 | ||||||||||||||||||||
Net change in net parent investment | 12.4 | — | — | — | — | — | 12.4 | ||||||||||||||||||||
Balance, March 31, 2018 | $ | 475.6 | $ | — | $ | — | $ | — | $ | (43.1 | ) | $ | — | $ | 432.5 | ||||||||||||
Net income | 38.0 | — | — | — | — | — | 38.0 | ||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3.7 | ) | — | (3.7 | ) | ||||||||||||||||||
Net change in net parent investment | (3.3 | ) | — | — | — | — | — | (3.3 | ) | ||||||||||||||||||
Balance, June 30, 2018 | $ | 510.3 | $ | — | $ | — | $ | — | $ | (46.8 | ) | $ | — | $ | 463.5 | ||||||||||||
Balance, January 1, 2019 | $ | — | $ | 0.1 | $ | 511.1 | $ | 25.9 | $ | (49.2 | ) | $ | — | $ | 487.9 | ||||||||||||
Net income | — | — | — | 16.9 | — | — | 16.9 | ||||||||||||||||||||
Stock compensation plans | — | — | 1.2 | — | — | — | 1.2 | ||||||||||||||||||||
Net hedging losses, net of income tax | — | — | — | — | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 1.0 | — | 1.0 | ||||||||||||||||||||
Balance, March 31, 2019 | $ | — | $ | 0.1 | $ | 512.3 | $ | 42.8 | $ | (48.3 | ) | $ | — | $ | 506.9 | ||||||||||||
Net income | — | — | — | 15.5 | — | — | 15.5 | ||||||||||||||||||||
Stock compensation plans | — | — | 2.4 | — | — | — | 2.4 | ||||||||||||||||||||
Net hedging gains, net of income tax | — | — | — | — | $ | 0.5 | — | 0.5 | |||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1.0 | ) | — | (1.0 | ) | ||||||||||||||||||
Purchases of treasury stock - deferred compensation plan | — | — | — | — | — | (0.7 | ) | (0.7 | ) | ||||||||||||||||||
Balance, June 30, 2019 | $ | — | $ | 0.1 | $ | 514.7 | $ | 58.3 | $ | (48.8 | ) | $ | (0.7 | ) | $ | 523.6 |
(in Millions) | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | |||||
Livent shared service costs (1) | $ | 1.5 | $ | 3.0 | |||
FMC Corporate shared service costs allocated to Livent (2) | 0.3 | 1.0 | |||||
Stock compensation expense (3) | 0.8 | 1.8 | |||||
FMC Corporate expense allocation (4) | 2.4 | 4.3 | |||||
Total Corporate allocations | $ | 5.0 | $ | 10.1 |
(1) | Represents Livent’s portion of shared service costs historically allocated to Livent. These do not include $2.2 million and $4.3 million for the three and six months ended June 30, 2018 of shared service costs historically allocated to and recorded within “Cost of sales” on the condensed consolidated statements of operations. |
(2) | Amounts represent FMC’s Corporate shared service cost allocated to Livent. |
(3) | Stock compensation expense represents the allocation of FMC’s Corporate stock compensation expense and the costs specifically identifiable to Livent employees. These amounts exclude the previously allocated portion included within Livent's shared service costs of $0.2 million and $0.4 million for the three and six months ended June 30, 2018. |
(4) | Represents the additional costs of the centralized functions of FMC allocated to Livent. |
(in Millions) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
North America (1) | $ | 18.6 | $ | 22.6 | $ | 34.4 | $ | 42.4 | |||||||
Latin America | 0.3 | 0.3 | 1.0 | 1.0 | |||||||||||
Europe, Middle East & Africa | 17.6 | 20.0 | 32.9 | 37.5 | |||||||||||
Asia Pacific (1) | 77.5 | 65.0 | 144.0 | 129.8 | |||||||||||
Total Revenue | $ | 114.0 | $ | 107.9 | $ | 212.3 | $ | 210.7 |
(1) | During the three months ended June 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States and China. Sales for the three months ended June 30, 2019 for Japan, the United States and China totaled $43.8 million, $18.1 million and $24.9 million, respectively. During the three months ended June 30, 2018, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States and China. Sales for the three months ended June 30, 2018 for Japan, the United States and China totaled $18.3 million, $22.1 million and $33.3 million, respectively. During the six months ended June 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States and China and totaled $91.8 million, $33.8 million, and $32.9 million, respectively. During the six months ended June 30, 2018, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States and China. Sales for the six months ended June 30, 2018 for Japan, the United States and China totaled $37.9 million, $41.9 million and $68.3 million, respectively. |
(in Millions) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Lithium Hydroxide | $ | 68.4 | $ | 52.9 | $ | 125.3 | $ | 102.7 | |||||||
Butyllithium | 24.7 | 24.6 | 51.6 | 49.2 | |||||||||||
High Purity Lithium Metal and Other Specialty Compounds | 14.1 | 15.5 | 27.1 | 33.3 | |||||||||||
Lithium Carbonate and Lithium Chloride | 6.8 | 14.9 | 8.3 | 25.5 | |||||||||||
Total Revenue | $ | 114.0 | $ | 107.9 | $ | 212.3 | $ | 210.7 |
(in Millions) | June 30, 2019 | Balance as of December 31, 2018 | Increase (Decrease) | ||||||||
Receivables from contracts with customers, net of allowances | $ | 118.0 | $ | 141.4 | $ | (23.4 | ) |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Finished goods | $ | 15.9 | $ | 22.2 | |||
Work in process | 40.0 | 36.6 | |||||
Raw materials, supplies and other | 13.1 | 14.5 | |||||
First-in, first-out inventory | 69.0 | 73.3 | |||||
Less: Excess of first-in, first-out cost over last-in, first-out cost | (1.5 | ) | (1.5 | ) | |||
Inventories, net | $ | 67.5 | $ | 71.8 |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Property, plant and equipment | 531.9 | 468.8 | |||||
Accumulated depreciation | (194.6 | ) | (193.1 | ) | |||
Property, plant and equipment, net | $ | 337.3 | $ | 275.7 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in Millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Restructuring charges | |||||||||||||||
Demolition and exit charges (1) | $ | — | $ | 0.1 | $ | — | $ | 1.9 | |||||||
Asset disposal charges (2) | — | — | — | 0.2 | |||||||||||
Other charges | |||||||||||||||
Corporate severance-related costs (3) | 3.5 | — | 3.5 | — | |||||||||||
Environmental remediation (4) | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Other | 0.2 | — | 0.2 | — | |||||||||||
Total restructuring and other charges | $ | 3.8 | $ | 0.2 | $ | 3.9 | $ | 2.3 |
(in Millions) | Restructuring Reserve Total (2) | ||
Balance December 31, 2017 | $ | 2.9 | |
Change in reserves (1) | 1.9 | ||
Cash payments | (1.2 | ) | |
Balance December 31, 2018 | $ | 3.6 | |
Cash payments | (0.1 | ) | |
Balance June 30, 2019 | $ | 3.5 |
(1) | Primarily related to facility shutdowns and other miscellaneous exit costs. |
(2) | Included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. |
(in Millions) | Total | ||
Total environmental reserves at December 31, 2017 | $ | 6.4 | |
Change in reserve (1) | 0.2 | ||
Cash payments | (0.2 | ) | |
Total environmental reserves at December 31, 2018 | $ | 6.4 | |
Change in reserve (1) | 0.2 | ||
Cash payments | (0.2 | ) | |
Total environmental reserves at June 30, 2019 | $ | 6.4 | |
Environmental reserves, current (2) | $ | 0.5 | |
Environmental reserves, long-term (3) | 5.9 | ||
Total environmental reserves at June 30, 2019 | $ | 6.4 |
(1) | These amounts are included within "Restructuring and other" on the condensed consolidated statements of operations. |
(2) | These amounts are included within "Accrued and other current liabilities" on the condensed consolidated balance sheets. |
(3) | These amounts are included in "Environmental liabilities" on the condensed consolidated balance sheets. |
June 30, 2019 | |||||||||||||
Interest Rate Percentage | Maturity Date | June 30, 2019 | December 31, 2018 | ||||||||||
(in Millions) | LIBOR borrowings | Base rate borrowings | |||||||||||
Revolving Credit Facility (1) | 4.4% | 6.5% | 2023 | $ | 59.1 | $ | 34.0 | ||||||
Total long-term debt (2) | $ | 59.1 | $ | 34.0 |
(1) | As of June 30, 2019 and December 31, 2018, there were $10.3 million in letters of credit outstanding under our Revolving Credit Facility and available funds under this facility were $330.6 million and $355.7 million, respectively. |
(2) | As of June 30, 2019 and December 31, 2018, the Company had no debt maturing within one year. |
(in Millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||
Stock Option Expense, net of taxes of $0.2 and $0.2 | $ | 0.8 | $ | 1.2 | |||
Restricted Stock Expense, net of taxes of $0.2 and $0.4 | 1.2 | 1.8 | |||||
Total Stock Compensation Expense, net of taxes of $0.4 and $0.6 (1) | $ | 2.0 | $ | 3.0 |
(1) | Gross stock compensation charges of $1.1 million, $1.2 million and $0.1 million were recorded to "Selling, general and administrative expenses", "Restructuring and other charges", and "Separation-related costs", respectively, in our condensed consolidated statements of operations for the three months ended June 30, 2019 and $2.3 million, $1.2 million and $0.1 million, respectively, for the six months ended June 30, 2019. |
Six Months Ended June 30, 2019 | |
Expected dividend yield | —% |
Expected volatility | 20.07% |
Expected life (in years) | 6.50 |
Risk-free interest rate | 2.55% |
Number of Options Granted But Not Exercised | Weighted-Average Remaining Contractual Life (in Years) | Weighted-Average Exercise Price Per Share | Aggregate Intrinsic Value (in Millions) | |||||||||
Outstanding December 31, 2018 | 716,256 | 9.8 years | $ | 16.99 | $ | — | ||||||
Granted | 56,835 | $ | 12.48 | |||||||||
Forfeited | (62,557 | ) | $ | 13.70 | ||||||||
Converted FMC awards | 946,161 | |||||||||||
Outstanding June 30, 2019 | 1,656,695 | 6.9 years | $ | 12.46 | $ | 0.2 | ||||||
Exercisable at June 30, 2019 | 474,781 | 4.4 years | $ | 8.36 | $ | 0.2 |
Restricted Stock Units | ||||||
Number of awards | Weighted-Average Grant Date Fair Value | |||||
Nonvested December 31, 2018 | 249,786 | $ | 16.94 | |||
Granted | 210,561 | $ | 11.67 | |||
Vested | (105,964 | ) | $ | 11.76 | ||
Forfeited | (27,764 | ) | $ | 12.51 | ||
Converted FMC awards | 311,387 | |||||
Nonvested June 30, 2019 | 638,006 | $ | 12.73 |
Issued | Treasury | Outstanding | ||||||
Balance at December 31, 2018 | 146,000,000 | — | 146,000,000 | |||||
Adjusted FMC RSU awards (1) | 1,653 | — | 1,653 | |||||
Livent RSU awards | 76,182 | — | 76,182 | |||||
Purchases of Treasury Stock - deferred compensation plan | — | (98,088 | ) | (98,088 | ) | |||
Balance at June 30, 2019 | 146,077,835 | (98,088 | ) | 145,979,747 |
(in Millions) | Foreign Currency Adjustments | Derivative Instruments (1) | Total | ||||||||
Accumulated other comprehensive loss, net of tax at December 31, 2018 | $ | (48.0 | ) | $ | (1.2 | ) | $ | (49.2 | ) | ||
Other comprehensive income before reclassifications | — | 1.1 | 1.1 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (0.7 | ) | (0.7 | ) | ||||||
Accumulated other comprehensive loss, net of tax at June 30, 2019 | $ | (48.0 | ) | $ | (0.8 | ) | $ | (48.8 | ) |
(in Millions) | Foreign Currency Adjustments | Total | |||||
Accumulated other comprehensive loss, net of tax at December 31, 2017 | $ | (45.6 | ) | $ | (45.6 | ) | |
Other comprehensive loss before reclassifications | (1.2 | ) | (1.2 | ) | |||
Accumulated other comprehensive loss, net of tax at June 30, 2018 | $ | (46.8 | ) | $ | (46.8 | ) |
Details about Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Accumulated Other Comprehensive Loss (1) | Affected Line Item in the Condensed Combined Statements of Operations | ||||||||
(in Millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||
Derivative instruments | ||||||||||
Foreign currency contracts | $ | (0.3 | ) | $ | (0.7 | ) | Costs of sales and services | |||
Total before tax | (0.3 | ) | (0.7 | ) | ||||||
Amount included in net income (2) | $ | (0.3 | ) | $ | (0.7 | ) |
(in Millions, Except Share and Per Share Data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 15.5 | $ | 38.0 | $ | 32.4 | $ | 70.2 | |||||||
Denominator: | |||||||||||||||
Weighted average common shares outstanding - basic | 146.0 | 123.0 | 146.0 | 123.0 | |||||||||||
Weighted average additional shares assuming conversion of potential common shares | 0.5 | — | 0.5 | — | |||||||||||
Weighted average common shares outstanding - diluted | 146.5 | 123.0 | 146.5 | 123.0 | |||||||||||
Basic earnings per common share: | |||||||||||||||
Net income per weighted average share - basic | $ | 0.11 | $ | 0.31 | $ | 0.22 | $ | 0.57 | |||||||
Diluted earnings per common share: | |||||||||||||||
Net income per weighted average share - diluted | $ | 0.11 | $ | 0.31 | $ | 0.22 | $ | 0.57 |
Financial Instrument | Valuation Method | |
Foreign exchange forward contracts | Estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. |
June 30, 2019 | |||
Gross Amount of Derivatives | |||
(in Millions) | Designated as Cash Flow Hedges | ||
Derivatives | |||
Foreign exchange contracts | $ | (0.8 | ) |
Total derivative liabilities (1) | (0.8 | ) | |
Net derivative liabilities | $ | (0.8 | ) |
December 31, 2018 | |||
Gross Amount of Derivatives | |||
(in Millions) | Designated as Cash Flow Hedges | ||
Derivatives | |||
Foreign exchange contracts | $ | (1.3 | ) |
Total derivative liabilities (1) | (1.3 | ) | |
Net derivative liabilities | $ | (1.3 | ) |
(in Millions) | Foreign Exchange Contracts | Total | |||||
Accumulated other comprehensive loss, net of tax at December 31, 2018 | $ | (1.2 | ) | $ | (1.2 | ) | |
2019 Activity: | |||||||
Unrealized hedging gains, net of tax | 0.3 | 0.3 | |||||
Reclassification of deferred hedging gains, net of tax (1) | (0.4 | ) | (0.4 | ) | |||
Total derivative instrument impact on comprehensive income, net of tax | (0.1 | ) | (0.1 | ) | |||
Accumulated other comprehensive loss, net of tax at March 31, 2019 | $ | (1.3 | ) | $ | (1.3 | ) | |
Unrealized hedging gains, net of tax | 0.8 | 0.8 | |||||
Reclassification of deferred hedging gains, net of tax (1) | (0.3 | ) | (0.3 | ) | |||
Total derivative instrument impact on comprehensive income, net of tax | 0.5 | 0.5 | |||||
Accumulated other comprehensive loss, net of tax at June 30, 2019 | $ | (0.8 | ) | $ | (0.8 | ) |
(1) | Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations. |
Location of Loss Recognized in Income on Derivatives | Amount of Pre-tax Gain (Loss) Recognized in Income on Derivatives (1) | |||||||
(in Millions) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||
Foreign Exchange contracts | Cost of Sales and Services | $ | (0.9 | ) | $ | (1.0 | ) | |
Total | $ | (0.9 | ) | $ | (1.0 | ) |
(1) | Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. Prior to the Separation, derivative instruments were under FMC's hedging program for the three and six months ended June 30, 2018. |
(in Millions) | June 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Assets | |||||||||||||||
Investments in deferred compensation plan (1) (2) | $ | 1.4 | $ | 1.4 | $ | — | $ | — | |||||||
Total Assets | $ | 1.4 | $ | 1.4 | $ | — | $ | — | |||||||
Liabilities | |||||||||||||||
Derivatives – Foreign exchange (3) | $ | 0.8 | $ | — | $ | 0.8 | $ | — | |||||||
Deferred compensation plan obligation (4) | 2.1 | 2.1 | — | — | |||||||||||
Total Liabilities | $ | 2.9 | $ | 2.1 | $ | 0.8 | $ | — |
(in Millions) | December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Liabilities | |||||||||||||||
Derivatives – Foreign exchange (3) | $ | 1.3 | $ | — | $ | 1.3 | $ | — | |||||||
Total Liabilities | $ | 1.3 | $ | — | $ | 1.3 | $ | — |
(1) | Balance is included in “Other assets” in the condensed consolidated balance sheets. |
(2) | Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market gain of less than $0.1 million related to the Livent common stock was recorded in "Selling, general and administrative expense" in the condensed consolidated statements of operations for the three and six months ended June 30, 2019 with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. |
(3) | See the Fair Value of Derivative Instruments table within this Note for classifications on our condensed consolidated balance sheets. |
(4) | Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets. |
(in Millions, except for weighted-average amounts) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||
Lease Cost | |||||||
Operating lease cost (1) | $ | 0.5 | $ | 1.0 | |||
Other information | |||||||
Cash paid for operating leases | $ | 0.4 | $ | 0.8 |
(1) | Variable lease cost and sublease income for the three and six months ended June 30, 2019 were each less than $0.1 million. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations. |
(in Millions) | Undiscounted cash flows | |||
Remainder of 2019 | $ | 0.8 | ||
2020 | 1.9 | |||
2021 | 1.9 | |||
2022 | 1.8 | |||
2023 | 1.9 | |||
Thereafter | 13.5 | |||
Total future minimum lease payments | 21.8 | |||
Less: Imputed interest | (5.3 | ) | ||
Total | $ | 16.5 |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Prepaid and other current assets | |||||||
Argentina government receivable (1) | $ | 7.0 | $ | 8.8 | |||
Tax related items | 8.2 | 4.1 | |||||
Other receivables | 6.0 | 6.2 | |||||
Prepaid expenses | 5.7 | 8.4 | |||||
Bank Acceptance Drafts (2) | 19.6 | 29.1 | |||||
Other current assets | 7.0 | 3.2 | |||||
Total | $ | 53.5 | $ | 59.8 |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Other assets | |||||||
Argentina government receivable (1) | $ | 49.7 | $ | 41.5 | |||
Advance to contract manufacturers (3) | 16.4 | 15.3 | |||||
Investments in deferred compensation plan | 1.4 | — | |||||
Capitalized software, net | 1.2 | 1.4 | |||||
Prepayment associated with long-term supply agreements | 10.0 | 10.0 | |||||
Tax related items (4) | 4.9 | 6.2 | |||||
Other assets | 5.6 | 5.6 | |||||
Total | $ | 89.2 | $ | 80.0 |
(1) | We have various subsidiaries that conduct business within Argentina. At June 30, 2019 and December 31, 2018, $38.0 million of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. |
(2) | Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. |
(3) | We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. |
(4) | Represents an offsetting non-current deferred asset of $2.6 million and $3.2 million, respectively, relating to specific uncertain tax positions and other tax related items. |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Accrued and other current liabilities | |||||||
Restructuring reserves | $ | 3.5 | $ | 3.6 | |||
Due to FMC (1) | 0.5 | 23.8 | |||||
Accrued payroll | 5.2 | 8.5 | |||||
Derivative liabilities | 0.8 | 1.3 | |||||
Environmental reserves, current | 0.5 | 0.5 | |||||
Severance | 0.9 | — | |||||
Other accrued and other current liabilities | 9.6 | 9.1 | |||||
Total | $ | 21.0 | $ | 46.8 |
(in Millions) | June 30, 2019 | December 31, 2018 | |||||
Other long-term liabilities | |||||||
Asset retirement obligations | $ | 0.2 | $ | 0.2 | |||
Contingencies related to uncertain tax positions (2) | 5.5 | 6.0 | |||||
Self-insurance reserves | 2.3 | 2.4 | |||||
Deferred compensation plan obligations | 2.1 | — | |||||
Other long-term liabilities | 0.9 | 0.7 | |||||
Total | $ | 11.0 | $ | 9.3 |
(1) | At December 31, 2018, we had obligations to FMC for amounts due under the TSA of $2.3 million, $16.9 million related to income taxes payable to certain tax jurisdictions and payments made by FMC on Livent's behalf related to the Separation steps of $4.6 million. These obligations were settled during the first quarter of 2019. |
(2) | At June 30, 2019 and December 31, 2018, we have recorded a liability for uncertain tax positions of $3.0 million and a $2.9 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC. |
• | Revenue recognition and trade receivables |
• | Impairment and valuation of long-lived assets |
• | Income taxes |
• | Revenue of $114.0 million for the three months ended June 30, 2019 increased $6.1 million, or approximately 6% compared to the three months ended June 30, 2018 primarily due to higher lithium hydroxide sales volumes partially offset by unfavorable pricing and lower sales volumes of lithium carbonate. |
• | Gross margin of $33.8 million for the three months ended June 30, 2019 decreased $20.0 million or approximately 37% versus the prior year quarter primarily driven by unfavorable customer mix, lower sales volumes of lithium carbonate, higher lithium carbonate cost due to third party purchases and higher VAT due to increased exports from China. |
• | Selling, general and administrative expenses increased by $5.4 million, or approximately 123%, to $9.8 million compared to the prior year quarter primarily due to the incremental stand-alone company costs. |
• | Corporate allocations of $0.0 million decreased by $5.0 million compared to the prior year quarter because expenses are not allocated to Livent from FMC subsequent to the Separation Date. |
• | Adjusted EBITDA of $28.0 million decreased $19.5 million compared to the prior year quarter amount of $47.7 million primarily due to unfavorable customer mix, lower pricing, higher lithium carbonate cost due to third party purchases and higher VAT due to increased exports from China. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in Millions) | (Unaudited) | ||||||||||||||
Revenue | $ | 114.0 | $ | 107.9 | $ | 212.3 | $ | 210.7 | |||||||
Costs and Expenses | |||||||||||||||
Cost of sales | 80.2 | 54.1 | 145.8 | 104.7 | |||||||||||
Gross margin | 33.8 | 53.8 | $ | 66.5 | $ | 106.0 | |||||||||
Selling, general and administrative expenses | 9.8 | 4.4 | 19.0 | 8.0 | |||||||||||
Corporate allocations | — | 5.0 | — | 10.1 | |||||||||||
Research and development expenses | 0.8 | 1.0 | 1.6 | 2.0 | |||||||||||
Restructuring and other charges | 3.8 | 0.2 | 3.9 | 2.3 | |||||||||||
Separation-related costs | 1.3 | — | 2.9 | — | |||||||||||
Total costs and expenses | 95.9 | 64.7 | $ | 173.2 | $ | 127.1 | |||||||||
Income from operations before non-operating pension benefit and settlement charges and income taxes | 18.1 | 43.2 | $ | 39.1 | $ | 83.6 | |||||||||
Non-operating pension benefit and settlement charges | — | — | — | 0.2 | |||||||||||
Income from operations before income taxes | 18.1 | 43.2 | $ | 39.1 | $ | 83.4 | |||||||||
Provision for income taxes | 2.6 | 5.2 | 6.7 | 13.2 | |||||||||||
Net income | $ | 15.5 | $ | 38.0 | $ | 32.4 | $ | 70.2 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in Millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income (GAAP) | $ | 15.5 | $ | 38.0 | $ | 32.4 | $ | 70.2 | |||||||
Add back: | |||||||||||||||
Provision for income taxes | 2.6 | 5.2 | 6.7 | 13.2 | |||||||||||
Depreciation and amortization | 4.8 | 4.3 | 9.7 | 8.6 | |||||||||||
EBITDA (Non-GAAP) (a) | $ | 22.9 | $ | 47.5 | $ | 48.8 | $ | 92.0 | |||||||
Add back: | |||||||||||||||
Restructuring and other charges (b) | 3.8 | 0.2 | 3.9 | 2.3 | |||||||||||
Non-operating pension benefit and settlement charges (c) | — | — | — | 0.2 | |||||||||||
Separation-related costs (d) | 1.3 | — | 2.9 | — | |||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 28.0 | $ | 47.7 | $ | 55.6 | $ | 94.5 |
(a) | All of the interest related to our Revolving Credit Facility was capitalized for the three and six months ended June 30, 2019. |
(b) | We continually perform strategic reviews and assess the return on our business. This sometimes results in management changes or in a plan to restructure the operations of our business. As part of these restructuring plans, demolition costs and write-downs of long-lived assets may occur. |
(c) | Our non-operating pension expense (benefit) and settlement charges are defined as those costs (benefits) related to interest, expected return on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our segments results and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service cost in our Adjusted EBITDA results noted above. These elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees. |
(d) | Represents legal, professional, transaction related fees and other separation related activity. |
(in Millions) | Six Months Ended June 30, | ||||||
2019 | 2018 | ||||||
Income from operations before non-operating pension benefit and settlement charges and income taxes | $ | 39.1 | $ | 83.6 | |||
Special charges and depreciation and amortization (1) | 16.5 | 10.9 | |||||
Operating income before depreciation and amortization (Non-GAAP) (2) | 55.6 | 94.5 | |||||
Change in trade receivables, net (3) | 23.5 | (28.1 | ) | ||||
Change in inventories (4) | 4.5 | (3.3 | ) | ||||
Change in accounts payable (5) | (4.3 | ) | (14.2 | ) | |||
Change in all other operating assets and liabilities (6) | (2.8 | ) | (15.7 | ) | |||
Cash basis operating income (Non-GAAP) | 76.5 | 33.2 | |||||
Restructuring and other spending | (1.7 | ) | (0.6 | ) | |||
Environmental spending | (0.2 | ) | (0.1 | ) | |||
Tax payments, net of refunds (7) | (26.2 | ) | (14.5 | ) | |||
Separation-related spending (8) | (7.1 | ) | — | ||||
Cash provided by operating activities | $ | 41.3 | $ | 18.0 |
(1) | Represents the sum of restructuring and other charges, separation-related costs, and depreciation and amortization. |
(2) | Referred to as Adjusted EBITDA. |
(3) | The change in cash flows related to trade receivables for the six months ended June 30, 2019 and 2018 were primarily due to timing of collections. |
(4) | The change in cash flows related to inventories is a result of decreased inventory levels. |
(5) | The change in cash flows related to accounts payable is primarily due to timing of payments made to suppliers and vendors. |
(6) | Changes in all periods presented primarily represent timing of payments associated with all other operating assets and liabilities. See the condensed consolidated statements of cash flows included within these condensed consolidated financial statements for disaggregation of the components that make up this line item. |
(7) | In 2019, we made payments to FMC of $16.9 million to settle TMA obligations for cash paid by FMC on Livent's behalf related to income taxes in certain tax jurisdictions. These amounts were accrued within "Accrued and other liabilities" on our condensed consolidated balance sheets as of December 31, 2018. See Note 16 to our condensed consolidated financial statements in this Form 10-Q. |
(8) | 2019 activity represents payments for legal, professional or transaction related fees primarily associated with the IPO and other Separation related activities, including $4.6 million paid to FMC which we had accrued within "Accrued and other liabilities" on our condensed consolidated balance sheets as of December 31, 2018. See Note 16 to our condensed consolidated financial statements in this Form 10-Q. |
Hedged Currency vs. Functional Currency | |||||
(in Millions) | Net Liability Position on Consolidated Balance Sheets | Net Liability Position with 10% Strengthening | Net Asset Position with 10% Weakening | ||
Net asset/(liability) position as of June 30, 2019 | $(0.8) | $(3.7) | $1.4 | ||
Net asset/(liability) position at December 31, 2018 | $(1.3) | $(8.1) | $4.3 |
• | Risks of certain natural disasters. Our lithium brines and related production facilities are located in a seismically active region in northwest Argentina. A major earthquake could have adverse consequences for our operations and for general infrastructure, such as roads, rail, and access to goods in Argentina. Our production operations in Argentina could also be subject to significant rain events. Our production processes rely on natural evaporation and a significant rain event could impact our production and have an adverse effect on our business, financial condition and results of operations. |
ISSUER PURCHASES OF EQUITY SECURITIES | ||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs (2) | Maximum Number of Shares That May Yet Be Purchased Under the Programs (2) | ||||||||||
April 1 through April 30, 2019 | — | $ | — | $ | — | $ | — | |||||||
May 1 through May 31, 2019 | — | — | — | — | ||||||||||
June 1 through June 30, 2019 | 92,500 | 6.83 | — | — | ||||||||||
Total Q2 2019 | 92,500 | $ | 6.83 | $ | — | $ | — |
(1) | The trustee of the Livent NQSP deferred compensation plan reacquires Livent common stock shares from time to time through open-market purchases relating to investments by employees in our common stock, one of the investment options available under the Livent NQSP. Such shares are held in a trust fund and recorded to Treasury stock in our condensed consolidated balance sheets. |
(2) | We have no publicly announced repurchase programs. |
†*10.1 | ||
31.1 | Chief Executive Officer Certification pursuant to Rule 13a -14(a) of the Exchange Act. | |
31.2 | Chief Financial Officer Certification pursuant to Rule 13a -14(a) of the Exchange Act. | |
32.1 | CEO Certification of Quarterly Report pursuant to Rule 13a -14(b) of the Exchange Act and 18 U.S.C. Section 1350. | |
32.2 | CFO Certification of Quarterly Report pursuant to Rule 13a -14(b) of the Exchange Act and 18 U.S.C. Section 1350. | |
101 | Interactive Data File |
LIVENT CORPORATION (Registrant) | |||
By: | /s/ GILBERTO ANTONIAZZI | ||
Gilberto Antoniazzi, Vice President and Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Livent Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Paul W. Graves |
Paul W. Graves |
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Livent Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Gilberto Antoniazzi |
Gilberto Antoniazzi |
Vice President and Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Paul W. Graves |
Paul W. Graves |
President and Chief Executive Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Gilberto Antoniazzi |
Gilberto Antoniazzi |
Vice President and Chief Financial Officer |
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2019
shares
| |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Livent Corp. |
Entity Central Index Key | 0001742924 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Emerging Growth Company | true |
Entity Ex Transition Period | true |
Entity Small Business | false |
Entity Shell Company | false |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 145,979,747 |
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||
Income Statement [Abstract] | |||||||
Revenue | $ 114.0 | $ 107.9 | $ 212.3 | $ 210.7 | |||
Costs and Expenses | |||||||
Cost of sales | 80.2 | 54.1 | 145.8 | 104.7 | |||
Gross margin | 33.8 | 53.8 | 66.5 | 106.0 | |||
Selling, general and administrative expenses | 9.8 | 4.4 | 19.0 | 8.0 | |||
Corporate allocations | 0.0 | 5.0 | 0.0 | 10.1 | |||
Research and development expenses | 0.8 | 1.0 | 1.6 | 2.0 | |||
Restructuring and other charges | 3.8 | 0.2 | 3.9 | 2.3 | |||
Separation-related costs | 1.3 | 0.0 | 2.9 | 0.0 | |||
Total costs and expenses | 95.9 | 64.7 | 173.2 | 127.1 | |||
Income from operations before non-operating pension benefit and settlement charges and income taxes | 18.1 | 43.2 | 39.1 | 83.6 | |||
Non-operating pension benefit and settlement charges | 0.0 | 0.0 | 0.0 | 0.2 | |||
Income from operations before income taxes | 18.1 | 43.2 | 39.1 | 83.4 | |||
Provision for income taxes | 2.6 | 5.2 | 6.7 | 13.2 | |||
Net income | $ 15.5 | $ 38.0 | $ 32.4 | $ 70.2 | |||
Weighted average common shares outstanding - basic (in shares) | [1] | 146.0 | 123.0 | 146.0 | 123.0 | ||
Net income per weighted average share - basic (in dollars per share) | $ 0.11 | $ 0.31 | $ 0.22 | $ 0.57 | |||
Weighted average common shares outstanding - diluted (in shares) | [1] | 146.5 | 123.0 | 146.5 | 123.0 | ||
Net income per weighted average share - diluted (in dollars per share) | $ 0.11 | $ 0.31 | $ 0.22 | $ 0.57 | |||
|
Condensed Consolidated Statements of Operations (Parenthetical) |
3 Months Ended |
---|---|
Jun. 30, 2018
shares
| |
Pro Forma | |
Common stock, outstanding (in shares) | 123,000,000.0 |
Public Stock Offering | |
Stock issued during period (in shares) | 23,000,000.0 |
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized hedging gains, tax | $ 0.1 | $ 0.1 | ||
Reclassification of deferred hedging gains included in net income, tax | 0.1 | 0.1 | ||
Total derivative instruments loss, tax | $ 0.1 | $ 0.1 | ||
Unrealized hedging gains, tax | $ 0.0 | $ 0.0 | ||
Reclassification of deferred hedging gains included in net income, tax | 0.0 | 0.0 | ||
Total derivative instruments loss, tax | $ 0.0 | $ 0.0 |
Condensed Consolidated Balance Sheets - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Current assets | ||
Cash and cash equivalents | $ 20.3 | $ 28.3 |
Trade receivables, net of allowance of $0.1 in 2019 and $0.1 in 2018 | 118.0 | 141.4 |
Inventories, net | 67.5 | 71.8 |
Prepaid and other current assets | 53.5 | 59.8 |
Total current assets | 259.3 | 301.3 |
Property, plant and equipment, net | 337.3 | 275.7 |
Deferred income taxes | 7.4 | 3.0 |
Right of use assets - operating leases, net | 16.5 | |
Other assets | 89.2 | 80.0 |
Total assets | 709.7 | 660.0 |
Current liabilities | ||
Accounts payable, trade and other | 67.8 | 72.0 |
Accrued and other current liabilities | 21.0 | 46.8 |
Operating lease liabilities - current | 1.7 | |
Income taxes | 0.6 | 1.6 |
Total current liabilities | 91.1 | 120.4 |
Long-term debt | 59.1 | 34.0 |
Operating lease liabilities - long-term | 14.8 | |
Environmental liabilities | 5.9 | 5.9 |
Deferred income taxes | 4.2 | 2.5 |
Other long-term liabilities | 11.0 | 9.3 |
Commitments and contingent liabilities (Note 15) | ||
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized; 146,077,835 and 146,000,000 shares issued; and 145,979,747 and 146,000,000 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 514.7 | 511.1 |
Retained earnings | 58.3 | 25.9 |
Accumulated other comprehensive loss | (48.8) | (49.2) |
Treasury stock, common, at cost; 98,088 and 0 shares at June 30, 2019 and December 31, 2018, respectively | (0.7) | 0.0 |
Total equity | 523.6 | 487.9 |
Total liabilities and equity | $ 709.7 | $ 660.0 |
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 0.1 | $ 0.1 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 146,077,835 | 146,000,000 |
Common stock, outstanding (in shares) | 145,979,747 | 146,000,000 |
Treasury stock, common, at cost (in shares) | 98,088 | 0 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
||||||
Cash provided by operating activities: | |||||||
Net income | $ 32.4 | $ 70.2 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation and amortization | 9.7 | 8.6 | |||||
Restructuring and other charges | 2.2 | 2.3 | |||||
Separation-related charges | 0.5 | 0.0 | |||||
Deferred income taxes | (2.7) | 0.0 | |||||
Share-based compensation | 2.3 | 2.2 | |||||
Changes in operating assets and liabilities: | |||||||
Trade receivables, net | 23.5 | (28.1) | |||||
Inventories | 4.5 | (3.3) | |||||
Accounts payable, trade and other | (4.3) | (14.2) | |||||
Changes in deferred compensation | 0.3 | 0.0 | |||||
Advance payments from customers | 0.0 | (1.8) | |||||
Pension and other post-retirement benefits | 0.0 | 0.9 | |||||
Change in Due to FMC | (23.2) | 0.0 | |||||
Income taxes | (1.0) | (1.3) | |||||
Change in prepaid and other current assets and other assets | (0.9) | (7.1) | |||||
Change in accrued and other current liabilities and other long-term liabilities | (2.0) | (10.4) | |||||
Cash provided by operating activities | 41.3 | 18.0 | |||||
Cash required by investing activities: | |||||||
Capital expenditures | [1] | (69.3) | (23.4) | ||||
Investments in trust fund securities | (0.4) | 0.0 | |||||
Other investing activities | (4.5) | (3.4) | |||||
Cash required by investing activities | (74.2) | (26.8) | |||||
Cash provided by financing activities: | |||||||
Proceeds from issuance of long-term debt | 116.5 | 0.0 | |||||
Payments of long-term debt | (91.4) | 0.0 | |||||
Payments of financing fees | (0.1) | 0.0 | |||||
Net change in net parent investment | 0.0 | 9.1 | |||||
Cash provided by financing activities | 25.0 | 9.1 | |||||
Effect of exchange rate changes on cash and cash equivalents | (0.1) | 0.0 | |||||
(Decrease) increase in cash and cash equivalents | (8.0) | 0.3 | |||||
Cash and cash equivalents, beginning of period | 28.3 | 1.2 | |||||
Cash and cash equivalents, end of period | 20.3 | 1.5 | |||||
Supplemental Disclosure for Cash Flow: | |||||||
Cash payments for income taxes, net of refunds | [2] | 26.2 | 14.5 | ||||
Cash payments for interest, net | [1] | 1.6 | 0.0 | ||||
Cash payments for Separation-related charges | 7.1 | 0.0 | |||||
Accrued capital expenditures | 4.4 | $ 4.7 | |||||
Operating lease right-of-use assets and lease liabilities recorded upon adoption of ASC 842 | $ 16.1 | ||||||
|
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2019
USD ($)
| |
Reimbursement paid to parent - FMC | $ 23.2 |
Transaction Services Agreement, Income Taxes Payable | |
Reimbursement paid to parent - FMC | $ 16.9 |
Condensed Consolidated Statements of Equity - USD ($) $ in Millions |
Total |
Net Parent Investment |
Common Stock, $0.001 Per Share Par Value |
Capital In Excess of Par |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
||||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 385.4 | $ 431.0 | $ 0.0 | $ 0.0 | $ 0.0 | $ (45.6) | $ 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 32.2 | 32.2 | |||||||||
Foreign currency translation adjustments | 2.5 | 2.5 | |||||||||
Net change in net parent investment | 12.4 | 12.4 | |||||||||
Ending balance at Mar. 31, 2018 | 432.5 | 475.6 | 0.0 | 0.0 | 0.0 | (43.1) | 0.0 | ||||
Beginning balance at Dec. 31, 2017 | 385.4 | 431.0 | 0.0 | 0.0 | 0.0 | (45.6) | 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 70.2 | ||||||||||
Foreign currency translation adjustments | [1] | (1.2) | |||||||||
Ending balance at Jun. 30, 2018 | 463.5 | 510.3 | 0.0 | 0.0 | 0.0 | (46.8) | 0.0 | ||||
Beginning balance at Mar. 31, 2018 | 432.5 | 475.6 | 0.0 | 0.0 | 0.0 | (43.1) | 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 38.0 | 38.0 | |||||||||
Foreign currency translation adjustments | (3.7) | [1] | (3.7) | ||||||||
Net change in net parent investment | (3.3) | (3.3) | |||||||||
Ending balance at Jun. 30, 2018 | 463.5 | 510.3 | 0.0 | 0.0 | 0.0 | (46.8) | 0.0 | ||||
Beginning balance at Dec. 31, 2018 | 487.9 | 0.0 | 0.1 | 511.1 | 25.9 | (49.2) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 16.9 | 16.9 | |||||||||
Stock compensation plans | 1.2 | 1.2 | |||||||||
Net hedging losses, net of income tax | (0.1) | (0.1) | |||||||||
Foreign currency translation adjustments | 1.0 | 1.0 | |||||||||
Ending balance at Mar. 31, 2019 | 506.9 | 0.0 | 0.1 | 512.3 | 42.8 | (48.3) | 0.0 | ||||
Beginning balance at Dec. 31, 2018 | 487.9 | 0.0 | 0.1 | 511.1 | 25.9 | (49.2) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 32.4 | ||||||||||
Net hedging losses, net of income tax | 0.4 | ||||||||||
Foreign currency translation adjustments | [1] | 0.0 | |||||||||
Ending balance at Jun. 30, 2019 | 523.6 | 0.0 | 0.1 | 514.7 | 58.3 | (48.8) | (0.7) | ||||
Beginning balance at Mar. 31, 2019 | 506.9 | 0.0 | 0.1 | 512.3 | 42.8 | (48.3) | 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 15.5 | 15.5 | |||||||||
Stock compensation plans | 2.4 | 2.4 | |||||||||
Net hedging losses, net of income tax | 0.5 | 0.5 | |||||||||
Foreign currency translation adjustments | (1.0) | [1] | (1.0) | ||||||||
Purchases of treasury stock - deferred compensation plan | (0.7) | (0.7) | |||||||||
Ending balance at Jun. 30, 2019 | $ 523.6 | $ 0.0 | $ 0.1 | $ 514.7 | $ 58.3 | $ (48.8) | $ (0.7) | ||||
|
Description of the Business |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations The accompanying condensed consolidated financial statements of Livent Corporation (“Livent”, “we”, “us”, "company" or “our”) include the historical accounts of the lithium business segment ("Lithium Business") of FMC Corporation (“FMC”), a publicly traded company incorporated in Delaware (United States). Livent manufactures lithium for use in a wide range of lithium products, which are used primarily in energy storage, specialty polymers and chemical synthesis applications. We serve a diverse group of markets. Our product offerings are primarily inorganic and generally have few cost-effective substitutes. A major growth driver for lithium in the future will be the rate of adoption of electric vehicles. Most markets for lithium chemicals are global with significant growth occurring both in Asia and North America, primarily driven by the development and manufacture of lithium-ion batteries. We are one of the primary producers of performance lithium compounds. The Separation On March 31, 2017, FMC publicly announced a plan to separate Livent into a publicly traded company (the “Separation”). Prior to the completion of the initial public offering ("IPO") on October 15, 2018, we were a wholly owned subsidiary of FMC, and all of our outstanding shares of common stock were owned by FMC. Following a series of restructuring steps, on October 1, 2018, prior to the IPO of Livent common stock, FMC transferred to us substantially all of the assets and liabilities of its Lithium Business. In exchange, we issued to FMC all 123 million shares of our common stock. On October 15, 2018 (the "Separation Date"), we completed the IPO and sold 20 million shares of Livent common stock to the public at a price of $17.00 per share. On November 8, 2018, the underwriters exercised, in full, their option (the "Over-allotment Option Exercise") to purchase an additional 3 million shares of our common stock, the closing of which was completed on November 13, 2018. Our common stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “LTHM.” Net proceeds from the sale of 23 million shares of our common stock issued in connection with the IPO and Over-allotment Option Exercise were approximately $369 million, after deducting underwriting discounts and commissions. The net proceeds from the offering, after payment of financing fees and other IPO related costs, were subsequently distributed to FMC. Immediately following the IPO and Over-allotment Option Exercise, FMC owned approximately 84% of our outstanding common stock. Accordingly, we were considered a “controlled company” under the NYSE rules. Pursuant to generally accepted accounting principles in the United States ("U.S. GAAP"), costs incurred associated with Separation-related activities are expensed as incurred. For the Livent Separation, these costs primarily consist of legal, accounting, professional advisory and other transaction fees associated with the preparation and execution of Separation-related activities. Livent generally expects to continue to incur such separation related costs up to one year from the Separation Date or until such time an orderly separation and transition of various functions and processes is in place. The Distribution On March 1, 2019, FMC completed its previously announced spin-off distribution of 123 million shares of common stock of Livent as a pro rata dividend on shares of FMC common stock outstanding at the close of business on the record date of February 25, 2019 (the “Distribution”). Each share of FMC common stock received 0.935301 shares of Livent common stock in the distribution. Immediately prior to the distribution, FMC owned 123 million shares of Livent common stock, representing approximately 84% of the outstanding shares of Livent common stock. Effective upon the distribution, FMC no longer owns any shares of Livent common stock and we are no longer considered a "controlled company" under the NYSE rules. |
Principal Accounting Policies and Related Financial Information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principle Accounting Policies and Related Financial Information | Principal Accounting Policies and Related Financial Information The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our condensed consolidated financial position at June 30, 2019 and December 31, 2018, the condensed consolidated results of operations for the three and six months ended June 30, 2019 and 2018, and the condensed consolidated cash flows for the six months ended June 30, 2019 and 2018. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These statements, therefore, should be read in conjunction with the annual consolidated and combined financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the "2018 Annual Report on Form 10-K"). The income tax amounts in the unaudited condensed combined financial statements have been calculated based on a separate return methodology and presented as if our operations were separate taxpayers in the respective jurisdictions. We file United States (U.S.) federal income tax returns as well as various state, local and non-U.S. jurisdictions. Certain of these income tax returns will be filed on a consolidated or combined basis with FMC through the Separation Date. From the Separation Date onwards, we will file as an independent public company. Please refer to Note 9, Income Taxes, for a further discussion of this matter. Basis of Presentation Prior to the Separation Historically, Livent did not operate as an independent, stand-alone company. Prior to the Separation, the combined financial statements included the operations, financial position, and cash flows of Livent, as carved out from the historical consolidated financial statements of FMC using both specific identification and the allocation methodologies described below. We believe the assumptions underlying the pre-Separation period included in the condensed consolidated statement of operations for the three and six months ended June 30, 2018, including the assumptions regarding allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by Livent. However, these shared expenses may not represent the amounts that would have been incurred had Livent operated autonomously or independently from FMC. Actual costs that would have been incurred if Livent had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions in various areas such as information technology and infrastructure. Net parent investment represents FMC’s historical investment in us, the net effect of transactions with and allocations from FMC. As an operating segment of FMC, we did not own or maintain separate bank accounts, except for certain foreign jurisdictions, where we were required to maintain separate accounts, and as required in preparation for the Separation. FMC uses a centralized approach to the cash management and funded our operating and investing activities as needed. Accordingly, cash held by FMC at the corporate level was not allocated to us for any of the periods presented. In periods prior to the Separation we reflected the cash generated by our operations and expenses paid by FMC on our behalf as a component of “Net parent investment” on the combined balance sheets, and as a net distribution to FMC in our combined statements of cash flows. Intercompany balances and accounts within Livent have been eliminated. In the pre-Separation period included in the condensed consolidated statement of operations for the three and six months ended June 30, 2018, Livent functioned as part of the larger group of businesses controlled by FMC and, accordingly, utilized centralized functions, such as facilities and information technology, of FMC to support its operations. Accordingly, a portion of the shared service costs were historically allocated to Livent. FMC also performed certain corporate functions for Livent. The corporate expenses related to Livent were allocated from FMC. These allocated costs were primarily related to certain governance and corporate functions such as finance, treasury, tax, human resources, legal, investor relations, and certain other costs. Where it was possible to specifically attribute such expenses to activities of Livent, these amounts were charged or credited directly to Livent without allocation or apportionment. Allocation of other such expenses was based on a reasonable reflection of the utilization of the service provided to or benefits received by Livent on a consistent basis, such as, but not limited to, a relative percentage of headcount, tangible assets, third-party sales, cost of goods sold or segment operating profit, defined by FMC as segment revenue less operating expenses. The aggregate costs allocated for these functions to Livent was included in “Corporate allocations” within the condensed consolidated statements of operations and are shown in detail within the following table.
____________________
FMC used a centralized approach to cash management and financing its operations. Historically, the majority of Livent’s cash was transferred to FMC on a daily basis. This arrangement is not reflective of the manner in which Livent would have been able to finance its operations had it been a stand-alone business separate from FMC. Additionally, the assets and liabilities assigned from FMC have been deemed attributable to, and reflective of the historical operations of, Livent; however, the amounts recorded may not be representative of the amounts that would have been incurred had Livent been an entity that operated independently of FMC. Consequently, the pre-Separation period included in the condensed consolidated statement of operations for the three and six months ended June 30, 2018 may not be indicative of Livent's future performance and does not necessarily reflect what its results of operations, financial position and cash flows would have been had Livent operated as a separate entity apart from FMC. FMC’s debt and related interest expense have not been allocated to us for any of the periods presented since we are not the legal obligor of the debt, and FMC’s borrowings were not directly attributable to us. Earnings per share The weighted average common shares outstanding for both basic and diluted earnings per share for the condensed consolidated financial statements for the three and six months ended June 30, 2018 was calculated in accordance with ASC 260, Earnings Per Share (ASC 260), using 123.0 million shares of common stock outstanding, which reflects the number of shares held by FMC prior to the IPO. This results in both basic and diluted earnings per share of $0.31 and $0.57 for the three and six months ended June 30, 2018. Basis of Presentation After the Separation The condensed consolidated financial statements as of and for the three and six months ended June 30, 2019 are comprised of the results of operations, comprehensive income, financial position, equity and cash flows for periods after the Separation, which reflects Livent's operation as an independent public company. The condensed consolidated financial statements as of and for the three and six months ended June 30, 2018 are comprised of the results of operations, comprehensive income, and cash flow amounts for the period prior to the Separation (see above), which includes allocations for direct costs and indirect costs attributable to the operations of the Lithium Business. Basis of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. Leases. We adopted ASC 842 and elected the modified retrospective transition method which required an application date of January 1, 2019. Under the modified retrospective transition method, all prior period disclosures continue to be in accordance with ASC 840. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the condensed consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 15 for information on related disclosures regarding leases. Deferred compensation plan. FMC has a deferred compensation plan, in which highly compensated Lithium Business employees were eligible to participate prior to the IPO. In 2019, all existing account balances of Livent employee participants under the FMC deferred compensation plan were transferred to the Livent Non-Qualified Saving Plan ("Livent NQSP") deferred compensation plan. We have established a trust fund administered by a third party to provide funding for benefits payable under the Livent NQSP to which highly compensated Livent employees can elect to defer part of their compensation. The assets held in the trust consist of money market investments, a managed portfolio of equity securities and Livent common stock. For each reporting period, the Company records a net mark-to-market adjustment to Selling, general & administrative expense in our condensed consolidated statements of operations for the investments in the trust fund and the corresponding obligation to participants in the Livent NQSP. The money market investments and equity securities assets are included in Other assets in the accompanying condensed consolidated balance sheets. The investments in Livent common stock under the Livent NQSP are included in Treasury stock on our condensed consolidated balance sheets. The deferred compensation obligation to participants is included in Other long-term liabilities on our condensed consolidated balance sheets. See Note 14 and Note 16 for additional details on the Livent NQSP deferred compensation plan. There were no other significant changes to our accounting policies that are set forth in detail in Note 2 to our annual consolidated and combined financial statements in Part II, Item 8 of our 2018 Annual Report on Form 10-K. |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items | Recently Issued and Adopted Accounting Pronouncements and Regulatory Items New accounting guidance and regulatory items In April 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this update affect a variety of Topics in the Codification and represent changes to clarify, correct errors in, or improve the Codification. Subsequently, in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses ( Topic 326) Targeted Transition Relief. The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The new amendments are effective for the fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 remove the disclosure requirements related to transfers between Level 1 and Level 2 and the valuation processes for Level 3 measurements in Topic 820. Additional disclosures under this Topic are related to Level 3 fair value measurements related to changes in unrealized gains and losses and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new amendments are effective for the fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements and do not expect material impact. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements. Recently adopted accounting guidance In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification. The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The new amendments are effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We have evaluated the effect of the guidance and determined that the adoption will not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date) with early adoption permitted in any interim period. We elected to early adopt ASU 2018-15 effective July 1, 2019, using the prospective transition method. The adoption will not have a material impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act ("Tax Act") within accumulated other comprehensive income (“AOCI”) to retained earnings. There are also new required disclosures such as a description of the accounting policy for releasing income tax effects from AOCI as well as certain disclosures in the period of adoption if a company elects to reclassify the income tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years. The adoption did not have a material impact on our condensed consolidated financial statements other than a reclassification of certain income tax effects. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. The adoption did not have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). Our total assets and total liabilities increased approximately $16 million in the period of adoption, however, the adoption did not have a material impact on our results of operations or cash flows. |
Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregation of revenue We disaggregate revenue from contracts with customers by geographical areas and by product categories. The following table provides information about disaggregated revenue by major geographical region:
For the three months ended June 30, 2019, one customer accounted for approximately 30% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 65% of our revenue. For the three months ended June 30, 2018 one customer accounted for approximately 11% of total revenue and our 10 largest customers accounted in aggregate for approximately 47% of our revenue. For the six months ended June 30, 2019, two customers accounted for approximately 32% and 10% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 58% of our revenue. For the six months ended June 30, 2018, one customer accounted for approximately 10% of total revenue and our 10 largest customers accounted in aggregate for approximately 51% of our revenue. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations. The following table provides information about disaggregated revenue by major product category:
Our lithium hydroxide and butyllithium products are developed and sold to global and regional customers in the EV, polymer and specialty alloy metals market. Lithium hydroxide products are used in advanced batteries for hybrid electric, plug-in hybrid, and all-electric vehicles as well as other products that require portable energy storage such as smart phones, tablets, laptop computers, and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars and agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators and in the synthesis of pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the condensed consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. The following table presents the opening and closing balances of our receivables, net of allowances. As of June 30, 2019 and December 31, 2018, there were no contract liabilities from contracts with customers.
The balance of receivables from contracts with customers listed in the table above represents the current trade receivables, net of allowance for doubtful accounts. The allowance for doubtful accounts represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Performance obligations At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Based on our evaluation, we have determined that our current contracts do not contain more than one single performance obligation. Revenue is recognized when (or as) the performance obligation is satisfied, which is when the customer obtains control of the good or service. Periodically, we may enter into contracts with customers which require them to submit a forecast of non-binding purchase obligations to us. These forecasts are typically provided by the customer to us in good faith, and there are no penalties or obligations if the forecasts are not met. Accordingly, we have determined that these are optional purchases and do not represent material rights and are not considered as unsatisfied (or partially satisfied) performance obligations for the purposes of this disclosure. Occasionally, we may enter into multi-year take or pay supply agreements with customers. The aggregate amount of revenue expected to be recognized related to these contracts’ performance obligations that are unsatisfied or partially satisfied is approximately $20 million for the remainder of 2019 and $49 million in 2020. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer (refer to the sales of goods section for our determination of transfer of control). However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. |
Inventories, Net |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net Inventories consisted of the following:
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Property, Plant and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment consisted of the following:
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Restructuring and Other Charges |
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Restructuring and Other Charges | Restructuring and Other Charges In 2017, we began restructuring efforts at our manufacturing site located in Bessemer City, North Carolina. The objective of this restructuring plan is to optimize both the assets and cost structure by reducing certain production lines at the plant. The restructuring decision resulted primarily in shutdown costs. In the second quarter of 2019 we incurred severance-related costs pursuant to corporate management changes. The following table shows total restructuring and other charges included in the condensed consolidated statements of operations:
___________________ (1) Primarily represents costs associated with demolition and other miscellaneous exit costs. (2) Primarily represents fixed asset write-offs which were or are to be abandoned. (3) Represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. (4) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 8 for more details. Roll forward of restructuring reserve The following table shows a roll forward of restructuring reserve that will result in cash spending. These amounts exclude asset retirement obligations.
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Environmental Obligations |
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Environmental Obligations | Environmental Obligations We are subject to various federal, state, local and foreign environmental laws and regulations that govern emissions of air pollutants, discharges of water pollutants, and the manufacture, storage, handling and disposal of hazardous substances, hazardous wastes and other toxic materials and remediation of contaminated sites. We are also subject to liabilities arising under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) and similar state laws that impose responsibility on persons who arranged for the disposal of hazardous substances, and on current and previous owners and operators of a facility for the clean-up of hazardous substances released from the facility into the environment. We are also subject to liabilities under the Resource Conservation and Recovery Act (“RCRA”) and analogous state laws that require owners and operators of facilities that have treated, stored or disposed of hazardous waste pursuant to a RCRA permit to follow certain waste management practices and to clean up releases of hazardous substances into the environment associated with past or present practices. Environmental liabilities consist of obligations relating to waste handling and the remediation and/or study of sites at which we are alleged to have released or disposed of hazardous substances. As of the periods presented, the Bessemer City site located in North Carolina is the only site for which we have a reserve. We have provided reserves for potential environmental obligations that we consider probable and for which a reasonable estimate of the obligation can be made. Accordingly, total reserves of $6.4 million existed at June 30, 2019 and December 31, 2018, a portion of which is included in “Accrued and other current liabilities” on the condensed consolidated balance sheets. Although potential environmental remediation expenditures in excess of the reserves and estimated loss contingencies could be significant, the impact on our future consolidated financial results is not subject to reasonable estimation due to numerous uncertainties concerning the nature and scope of possible contamination, identification of remediation alternatives under constantly changing requirements, selection of new and diverse clean-up technologies to meet compliance standards, and the timing of potential expenditures. The liabilities arising from potential environmental obligations that have not been reserved for at this time may be material to any one quarter’s or year’s results of operations in the future. However, we believe any liability arising from such potential environmental obligations is not likely to have a material adverse effect on our liquidity or financial condition as it may be satisfied over many years. The table below is a roll forward of our total environmental reserves from December 31, 2017 to June 30, 2019.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our interim tax provision using an estimated annual effective tax rate methodology (“EAETR”) in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision. The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions. For the three and six months ended June 30, 2019, income taxes were determined in accordance with Livent's status as an independent public company. For the three and six months ended June 30, 2018, income taxes prior to the Separation were determined in accordance with the separate return method. Provision for income taxes for the three and six months ended June 30, 2019 was $2.6 million and $6.7 million resulting in an effective tax rate of 14.4% and 17.1%, respectively. Provision for income taxes for the three and six months ended June 30, 2018 was $5.2 million and $13.2 million resulting in an effective tax rate of 12.0% and 15.8%, respectively. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt Long-term debt consists of the following:
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Revolving Credit Facility On September 28, 2018, we entered into a credit agreement among us, our subsidiary, FMC Lithium USA Corp., as borrowers (the “Borrowers”), certain of our wholly owned subsidiaries as guarantors, the lenders party thereto (the “Lenders”), Citibank, N.A., as administrative agent, and certain other financial institutions party thereto, as joint lead arrangers (the “Credit Agreement”). The Credit Agreement provides for a $400 million senior secured revolving credit facility, $50 million of which is available for the issuance of letters of credit for the account of the Borrowers, with an option, subject to certain conditions and limitations, to increase the aggregate amount of the revolving credit commitments to $600 million (the “Revolving Credit Facility”). The issuance of letters of credit and the proceeds of revolving credit loans made pursuant to the Revolving Credit Facility are available, and will be used, for general corporate purposes, including capital expenditures and permitted acquisitions, of the Borrowers and their subsidiaries. See Note 10, Part II, Item 8 of our 2018 Annual Report on Form 10-K for more information. Covenants Among other restrictions, our Revolving Credit Facility contains financial covenants applicable to Livent and its consolidated subsidiaries related to leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). We were in compliance with all covenants at June 30, 2019. |
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Stock-based Compensation | Stock-based Compensation Livent Corporation Incentive Compensation and Stock Plan Effective March 5, 2019, Livent registered 2,000,000 shares of Livent common stock which were authorized for issuance pursuant to awards under the Livent Corporation Incentive Compensation and Stock Plan (the "Livent Plan"). As of June 30, 2019, the total shares of Livent common stock authorized for issuance under the Livent Plan is 6,290,000. Refer to Note 12 to our annual consolidated and combined financial statements in the Company's 2018 Annual Report on Form 10-K, Part II, Item 8 for further information about the Livent Plan. Conversion of FMC Corporation Incentive Compensation and Stock Plan ("FMC Plan") Awards FMC has a share-based compensation plan, in which Lithium Business employees were eligible to participate prior to the IPO. Effective March 1, 2019 (the "Distribution Date") each outstanding FMC equity award pursuant to the FMC Plan held by a Lithium Business employee was converted into a Livent equity award ("Converted Award") pursuant to the Livent Plan. The number of Livent shares subject to each Converted Award (and in the case of stock options, the exercise price of the award) was adjusted to preserve the aggregate intrinsic value of the original FMC Plan award as measured before and after the conversion, subject to rounding. Each such Converted Award remains subject to the same terms and conditions (including vesting and payment schedules) as were applicable immediately prior to the above described conversion, except that the Converted Awards held by Lithium Business employees are not subject to any performance-based vesting conditions. Additionally, each outstanding award of FMC RSUs held by FMC employees and issued prior to 2019 will be converted into Adjusted FMC RSUs which will vest in both FMC and Livent common stock shares, subject to the same terms and conditions as were applicable immediately prior to the conversion. Stock Compensation We recognized the following stock compensation expense for awards under the Livent Plan:
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Stock Options The grant date fair values of the stock options granted in the six months ended June 30, 2019, were estimated using the Black-Scholes option valuation model, the key assumptions for which are listed in the table below. The expected volatility assumption is based on the historical volatility of a group of twelve of our publicly traded peers that operate in the specialty chemical sector and five companies that have recently been spun off from larger publicly traded companies. The expected life represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury securities with terms equal to the expected timing of stock option exercises as of the grant date. The dividend yield assumption reflects anticipated dividends on Livent's common stock. Livent stock options granted in the three months ended June 30, 2019 will cliff vest on the third anniversary of the grant date and expire ten years from the date of grant. Black Scholes valuation assumptions for Livent Plan stock option grants:
The weighted-average grant date fair value of options granted during the six months ended June 30, 2019 was $3.40 per share. The following summary shows stock option activity for the Livent Plan for the six months ended June 30, 2019:
As of June 30, 2019, we had total remaining unrecognized compensation cost related to unvested stock options of $3.0 million which will be amortized over the weighted-average remaining requisite service period of approximately 3.0 years. Restricted Stock Unit Awards The grant date fair value of RSUs under the Livent Plan is based on the market price per share of Livent's common stock on the date of grant, and the related compensation cost is amortized to expense on a straight-line basis over the vesting period during which the employees perform related services, which for the RSUs granted during the six months ended June 30, 2019, is cliff vesting 3 years following the grant date. The following table shows RSU activity of the Livent Plan for the six months ended June 30, 2019:
As of June 30, 2019, the Livent Plan had total remaining unrecognized compensation cost related to unvested RSUs of $5.6 million which will be amortized over the weighted-average remaining requisite service period of approximately 2.6 years. |
Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity As of June 30, 2019 and December 31, 2018, we had 2 billion shares of common stock authorized. The following is a summary of changes in Livent's common stock issued and outstanding:
(1) See Note 11 for more information on Adjusted FMC RSU awards held by FMC employees. Summarized below is the roll forward of accumulated other comprehensive loss, net of tax.
____________________ (1) See Note 14 for more information. Reclassifications of accumulated other comprehensive loss The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of operations for the period presented.
____________________ (1) No amounts were reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2018. (2) Provision for income taxes related to the reclassification was less than $0.1 million for the three and six months ended June 30, 2019. Dividends For the three and six months ended June 30, 2019, we paid no dividends. We do not expect to pay any dividends in the foreseeable future. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings per common share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period on a basic and diluted basis. Our potentially dilutive securities include potential common shares related to our stock options and restricted stock units granted in connection with the Livent Plan. See Note 12 to our annual consolidated and combined financial statements in Part II, Item 8 of our 2018 Annual Report on Form 10-K for more information. Diluted earnings per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. The weighted average common shares outstanding for both basic and diluted earnings per share for the condensed consolidated financial statements for the three and six months ended June 30, 2018 was calculated, in accordance with ASC 260, Earnings Per Share (ASC 260), using 123.0 million shares of common stock outstanding, which reflects the number of shares held by FMC prior to the IPO. In connection with our IPO, we issued 20 million shares of our common stock to the public at a public offering price of $17.00 per share. The IPO closed on October 15, 2018. On November 13, 2018 the Company closed on the sale of an additional 3 million shares of its common stock pursuant to the Over-allotment Option Exercise. In accordance with ASC 260, the 23 million shares issued in connection with the IPO are included in earnings per share calculations for periods subsequent to the closing of the IPO and are not included in the earning per share calculations for periods prior to the closing of the IPO. Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:
Anti-dilutive stock options For the three and six months ended June 30, 2019, options to purchase 1,151,312 and 949,697 shares of our common stock at an average exercise price of $14.57 and $15.53 per share, respectively, were anti-dilutive and not included in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of the common stock for the three and six months ended June 30, 2019. Additional dilution - the FMC Plan FMC has a share-based compensation plan, in which Lithium Business employees were eligible to participate prior to the IPO. Effective March 1, 2019 (the "Distribution Date") each outstanding FMC equity award pursuant to the FMC Plan held by a Lithium Business employee was converted into a Livent equity award ("Converted Award") pursuant to the Livent Plan. The number of Livent shares subject to each Converted Award (and in the case of stock options, the exercise price of the award) was adjusted to preserve the aggregate intrinsic value of the original FMC Plan award as measured before and after the conversion, subject to rounding. Additionally, each outstanding award of FMC RSUs held by FMC employees and issued prior to 2019 was converted into Adjusted FMC RSUs which will vest in both FMC and Livent common stock shares, subject to the same terms and conditions as were applicable immediately prior to the conversion. See Note 11 for more information on the FMC Plan. There were 0.5 million and 0.5 million incremental shares related to the Converted Awards and Adjusted FMC RSUs that were included for diluted earnings per share for the three and six months ended June 30, 2019. |
Financial Instruments, Risk Management and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instrument, Risk Management and Fair Value Measurements | Financial Instruments, Risk Management and Fair Value Measurements Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, accounts payable, and amounts included in accruals meeting the definition of financial instruments. Investments in the Livent NQSP deferred compensation plan trust fund are considered Level 1 investments based on readily available quoted prices in active markets for identical assets. The carrying value of cash and cash equivalents, trade receivables, other current assets, and accounts payable approximates their fair value and are considered Level 1 investments. Our other financial instruments include the following:
The estimated fair value of our foreign exchange forward contracts have been determined using standard pricing models which take into account the present value of expected future cash flows discounted to the balance sheet date. These standard pricing models utilize inputs derived from, or corroborated by, observable market data such as interest rate yield curves and currency and commodity spot and forward rates. In addition, we test a subset of our valuations against valuations received from the transaction's counterparty to validate the accuracy of our standard pricing models. Accordingly, the estimates presented may not be indicative of the amounts that we would realize in a market exchange at settlement date and do not represent potential gains or losses on these agreements. The estimated fair value of our debt approximates the carrying amount and was $59.1 million and $34.0 million as of June 30, 2019 and December 31, 2018, respectively. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. The primary currencies for which we have exchange rate exposure are the U.S. dollar versus the Euro, the British pound, the Chinese yuan, the Argentine peso and the Japanese yen. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in Accumulated Other Comprehensive Income ("AOCI") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of June 30, 2019, we had open foreign currency forward contracts in AOCI in a net after-tax loss position of $0.8 million designated as cash flow hedges of underlying forecasted sales and purchases. At June 30, 2019 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $51 million. Approximately $0.8 million of net after-tax loss, representing open foreign currency exchange contracts, will be realized in earnings during the six months ending December 31, 2019 if spot rates in the future are consistent with market rates as of June 30, 2019. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the condensed consolidated statements of income. Derivatives Not Designated As Cash Flow Hedging Instruments We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments and changes in the fair value of these items are recorded in earnings. We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $84 million at June 30, 2019. Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments:
____________________ (1) Balance is included in “Accrued and other current liabilities” in the condensed consolidated balance sheets. The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. Derivatives in Cash Flow Hedging Relationships
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Derivatives Not Designated as Cash Flow Hedging Instruments
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Fair-Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability. Fair-Value Hierarchy We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument. Recurring Fair Value Measurements The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Contingencies We have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future, resulting from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity. IPO Securities Litigation Beginning on May 13, 2019, purported stockholders of the Company filed putative class action complaints in the Pennsylvania Court of Common Pleas, Philadelphia County, and in the U.S. District Court for the Eastern District of Pennsylvania, against the Company and certain of its current and former executives and directors, in connection with the Company’s October 2018 IPO. Some of these actions also name as defendants the underwriters in the IPO and/or FMC Corporation, whom the Company is generally obligated to indemnify. The action pending in state court is Plymouth County Retirement Association v. Livent Corp., et al., No. 190501229, filed May 13, 2019. The actions pending in federal court are Nikolov v. Livent Corp., et al., No. 19-cv-02218, filed on May 22, 2019 and Roe v. Livent Corp., et al., No. 19-cv-02683, filed on June 20, 2019. The complaints allege generally that the offering documents for the IPO failed to adequately disclose certain information related to Livent’s business and prospects. The complaints allege violations of Sections 11, 12(a)(2), and/or 15 of the Securities Act of 1933 and seek unspecified damages and other relief on behalf of all persons and entities who purchased or otherwise acquired Livent common stock pursuant and/or traceable to the IPO offering documents. On July 2, 2019, defendants moved to stay the Plymouth County action, in state court, in favor of the federal court actions. On July 26, 2019, Plymouth County filed an amended complaint. Subject to the outcome of defendants’ motion to stay, defendants have until September 20, 2019, to answer, plead, or otherwise respond to the amended complaint. In connection with the federal actions, on July 22, 2019, eight investor groups filed motions to consolidate the actions and to be appointed lead plaintiff. The federal court set a hearing on those motions for August 23, 2019. Since that time, seven of the investor groups have filed notices of non-opposition to the competing motions. As of August 6, 2019, no lead plaintiff had been appointed. At this point, a range of reasonably possible losses, if any, cannot be estimated by the Company. Nemaska arrangement In October 2016, we entered into a long-term supply agreement (the “Agreement”) with Nemaska Lithium Shawinigan Transformation Inc. (“Nemaska”), a subsidiary of Nemaska Lithium Inc. based in Quebec, Canada. Pursuant to the Agreement, Nemaska is to provide lithium carbonate to us from an electrochemical plant that is under construction. Since completion of the project financing had significantly delayed the construction of its electrochemical plant, Nemaska had reported that it was not in a position to start delivering lithium carbonate according to the schedule in the Agreement. To enforce our right to supply under the Agreement, in July 2018, we filed for arbitration before the International Chamber of Commerce (in accordance with the Agreement’s terms). In an attempt to resolve the dispute, the parties actively negotiated a revised schedule as well as arrangements to see that (in spec) lithium carbonate be nonetheless supplied to us from alternative sources under the responsibility of Nemaska, with a view to providing us with product while minimizing Nemaska’s exposure until its electrochemical plant is in operation. On September 25, 2018, the parties agreed to suspend the arbitration process under the expectation that the parties would agree on arrangements regarding alternative supply sources and an amended and restated supply agreement to reflect such alternative arrangements. On February 15, 2019 we received written notice from Nemaska that it was terminating the Agreement. Livent disagrees that Nemaska has the right to terminate the Agreement. Since we received Nemaska’s termination notice, we have resumed our previously suspended arbitration and intend to vigorously pursue our claims. However, there can be no assurance that we will prevail in arbitration. Leases All of our leases are operating leases and the Company has no short-term leases as of June 30, 2019. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of 2 years to 15 years. Quantitative disclosures about our leases are summarized in the table below.
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As of June 30, 2019, our operating leases had a weighted average remaining lease term of 12.2 years and a weighted average discount rate of 4.4%. The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years.
Under ASC 840, as of December 31, 2018, the Company's future minimum lease payments under non-cancelable operating leases for the five years ending December 31, 2019 through 2023 and thereafter were as follows: $1.7 million, $1.9 million, $1.8 million, $1.7 million, $1.6 million and $10.2 million, respectively. |
Supplemental Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information | Supplemental Information The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets:
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Subsequent Events |
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Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events There were no material subsequent events that required recognition or additional disclosure in the accompanying condensed consolidated financial statements. |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) |
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Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of consolidation. The accompanying consolidated financial statements are presented on a consolidated basis and include all of the accounts and operations of Livent and its majority-owned subsidiaries. The financial statements reflect the financial position, results of operations and cash flows of Livent in accordance with U.S. GAAP. All significant intercompany accounts and transactions are eliminated in consolidation. |
Leases | Leases. We adopted ASC 842 and elected the modified retrospective transition method which required an application date of January 1, 2019. Under the modified retrospective transition method, all prior period disclosures continue to be in accordance with ASC 840. The Company determines if an arrangement is a lease at the inception of the contract. Our operating leases are included in Operating lease right-of-use ("ROU") assets, Operating lease liabilities - current, and Operating lease liabilities - long term in the condensed consolidated balance sheets. The operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit interest rate, we utilize an estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. In determining the discount rate used in the present value calculation, the Company has elected to apply the portfolio approach for leases provided the leases commenced at or around the same time. This election allows the Company to account for leases at a portfolio level provided that the resulting accounting at this level would not differ materially from the accounting at the individual lease level. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has elected not to separate lease and non-lease components and accounts for each separate lease component and non-lease component associated with that lease component as a single lease component. Operating lease ROU assets include all contractual lease payments and initial direct costs incurred less any lease incentives. Facility leases generally only contain lease expense and non-component items such as taxes and pass through charges. Additionally, we have elected not to apply the recognition requirements of ASC 842 to leases which have a lease term of less than one year at the commencement date. Most of the Company's leases for corporate facilities contain terms for renewal and extension of the lease agreement. The exercise of lease renewal options is generally at the Company’s sole discretion. The Company includes the lease extensions when it is reasonably certain we will exercise the extension. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. We currently do not have any finance leases. See Note 15 for information on related disclosures regarding leases. |
New Accounting Guidance and Regulatory Items and Recently Adopted Accounting Guidance | New accounting guidance and regulatory items In April 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this update affect a variety of Topics in the Codification and represent changes to clarify, correct errors in, or improve the Codification. Subsequently, in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments - Credit Losses ( Topic 326) Targeted Transition Relief. The amendments in this Update provide entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. The new amendments are effective for the fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in ASU 2018-13 remove the disclosure requirements related to transfers between Level 1 and Level 2 and the valuation processes for Level 3 measurements in Topic 820. Additional disclosures under this Topic are related to Level 3 fair value measurements related to changes in unrealized gains and losses and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new amendments are effective for the fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements and do not expect material impact. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date). We are evaluating the effect the guidance will have on our condensed consolidated financial statements. Recently adopted accounting guidance In March 2019, the FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification. The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The new amendments are effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date), with early adoption permitted for fiscal years beginning after December 15, 2018. We have evaluated the effect of the guidance and determined that the adoption will not have a material impact on our condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard is effective for fiscal years beginning after December 15, 2019 (i.e. a January 1, 2020 effective date) with early adoption permitted in any interim period. We elected to early adopt ASU 2018-15 effective July 1, 2019, using the prospective transition method. The adoption will not have a material impact on our condensed consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This new standard permits a company to reclassify the income tax effects of the change in the U.S federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances as well as other income tax effects related to the application of the Tax Cuts and Jobs Act ("Tax Act") within accumulated other comprehensive income (“AOCI”) to retained earnings. There are also new required disclosures such as a description of the accounting policy for releasing income tax effects from AOCI as well as certain disclosures in the period of adoption if a company elects to reclassify the income tax effects. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), and interim periods within those fiscal years. The adoption did not have a material impact on our condensed consolidated financial statements other than a reclassification of certain income tax effects. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU amends and simplifies existing hedge accounting guidance and allows for more hedging strategies to be eligible for hedge accounting. In addition, the ASU amends disclosure requirements and how hedge effectiveness is assessed. The new standard is effective for fiscal years beginning after December 15, 2018 (i.e. a January 1, 2019 effective date), with early adoption permitted in any interim period after issuance of this ASU. The adoption did not have a material impact on our condensed consolidated financial statements. In February 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e. a January 1, 2019 effective date). Our total assets and total liabilities increased approximately $16 million in the period of adoption, however, the adoption did not have a material impact on our results of operations or cash flows. |
Revenue Recognition | Our lithium hydroxide and butyllithium products are developed and sold to global and regional customers in the EV, polymer and specialty alloy metals market. Lithium hydroxide products are used in advanced batteries for hybrid electric, plug-in hybrid, and all-electric vehicles as well as other products that require portable energy storage such as smart phones, tablets, laptop computers, and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars and agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators and in the synthesis of pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when (or as) we satisfy a performance obligation by transferring the promised goods to a customer, that is, when control of the good transfers to the customer. The customer is then invoiced at the agreed-upon price with payment terms generally ranging from 30 to 180 days. In determining when the control of goods is transferred, we typically assess, among other things, the transfer of risk and title and the shipping terms of the contract. The transfer of title and risk typically occurs either upon shipment to the customer or upon receipt by the customer. As such, we typically recognize revenue when goods are shipped based on the relevant incoterm for the product order, or in some regions, when delivery to the customer’s requested destination has occurred. When we perform shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to delivery), they are considered fulfillment activities, and accordingly, the costs are accrued for when the related revenue is recognized. For FOB shipping point terms, revenue is recognized at the time of shipment since the customer gains control at this point in time. We record amounts billed for shipping and handling fees as revenue. Costs incurred for shipping and handling are recorded as costs of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from revenue in the condensed consolidated statements of operations. We record a liability until remitted to the respective taxing authority. Contract asset and contract liability balances We satisfy our obligations by transferring goods and services in exchange for consideration from customers. The timing of performance sometimes differs from the timing the associated consideration is received from the customer, thus resulting in the recognition of a contract liability. We recognize a contract liability if the customer’s payment of consideration is received prior to completion of our related performance obligation. The balance of receivables from contracts with customers listed in the table above represents the current trade receivables, net of allowance for doubtful accounts. The allowance for doubtful accounts represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors. Performance obligations At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. Based on our evaluation, we have determined that our current contracts do not contain more than one single performance obligation. Revenue is recognized when (or as) the performance obligation is satisfied, which is when the customer obtains control of the good or service. Periodically, we may enter into contracts with customers which require them to submit a forecast of non-binding purchase obligations to us. These forecasts are typically provided by the customer to us in good faith, and there are no penalties or obligations if the forecasts are not met. Accordingly, we have determined that these are optional purchases and do not represent material rights and are not considered as unsatisfied (or partially satisfied) performance obligations for the purposes of this disclosure. Occasionally, we may enter into multi-year take or pay supply agreements with customers. The aggregate amount of revenue expected to be recognized related to these contracts’ performance obligations that are unsatisfied or partially satisfied is approximately $20 million for the remainder of 2019 and $49 million in 2020. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer (refer to the sales of goods section for our determination of transfer of control). However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract. |
Principal Accounting Policies and Related Financial Information (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Corporate allocations | The aggregate costs allocated for these functions to Livent was included in “Corporate allocations” within the condensed consolidated statements of operations and are shown in detail within the following table.
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following table provides information about disaggregated revenue by major product category:
The following table provides information about disaggregated revenue by major geographical region:
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Receivables and contract liabilities | The following table presents the opening and closing balances of our receivables, net of allowances. As of June 30, 2019 and December 31, 2018, there were no contract liabilities from contracts with customers.
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Inventories, Net (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories | Inventories consisted of the following:
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Property, Plant and Equipment, Net (Tables) |
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Schedule of property, plant and equipment | Property, plant and equipment consisted of the following:
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Restructuring and Other Charges (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restructuring charges and asset disposals | The restructuring decision resulted primarily in shutdown costs. In the second quarter of 2019 we incurred severance-related costs pursuant to corporate management changes. The following table shows total restructuring and other charges included in the condensed consolidated statements of operations:
___________________ (1) Primarily represents costs associated with demolition and other miscellaneous exit costs. (2) Primarily represents fixed asset write-offs which were or are to be abandoned. (3) Represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. (4) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. See Note 8 for more details. |
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Restructuring reserve rollforward | The following table shows a roll forward of restructuring reserve that will result in cash spending. These amounts exclude asset retirement obligations.
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Environmental Obligations (Tables) |
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Schedule of accrual for environmental loss contingencies | The table below is a roll forward of our total environmental reserves from December 31, 2017 to June 30, 2019.
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Debt (Tables) |
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Schedule of long-term debt | Long-term debt Long-term debt consists of the following:
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Stock-based Compensation (Tables) |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | We recognized the following stock compensation expense for awards under the Livent Plan:
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Black Scholes Valuation Assumptions for Stock Option Grants | Black Scholes valuation assumptions for Livent Plan stock option grants:
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Summary of Stock Option Activity | The following summary shows stock option activity for the Livent Plan for the six months ended June 30, 2019:
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Summary of Restricted Award Activity | The following table shows RSU activity of the Livent Plan for the six months ended June 30, 2019:
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Equity (Tables) |
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Schedule of Stock by Class | The following is a summary of changes in Livent's common stock issued and outstanding:
(1) See Note 11 for more information on Adjusted FMC RSU awards held by FMC employees. |
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Schedule of Accumulated Other Comprehensive Income (Loss) | Summarized below is the roll forward of accumulated other comprehensive loss, net of tax.
____________________ (1) See Note 14 for more information. |
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Reclassifications of Accumulated Other Comprehensive Income | The table below provides details about the reclassifications from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of operations for the period presented.
____________________ (1) No amounts were reclassified from accumulated other comprehensive loss for the three and six months ended June 30, 2018. (2) Provision for income taxes related to the reclassification was less than $0.1 million for the three and six months ended June 30, 2019. |
Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | Earnings applicable to common stock and common stock shares used in the calculation of basic and diluted earnings per share are as follows:
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Financial Instruments, Risk Management and Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments Fair Value and Balance Sheet Presentation | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments:
____________________ (1) Balance is included in “Accrued and other current liabilities” in the condensed consolidated balance sheets. |
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following tables summarize the gains or losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. Derivatives in Cash Flow Hedging Relationships
____________________
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Schedule of Derivative Instruments, Gain (Loss) in Consolidated Statements of Income |
____________________
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Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets.
____________________
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | Quantitative disclosures about our leases are summarized in the table below.
_______________________________
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Lessee, Operating Lease, Liability, Maturity | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years.
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Supplemental Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid and Other Assets | The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets:
____________________
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Schedule of Accrued and Other Liabilities |
____________________
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Description of the Business (Details) $ / shares in Units, $ in Millions |
1 Months Ended | ||||
---|---|---|---|---|---|
Mar. 01, 2019
shares
|
Nov. 13, 2018
shares
|
Oct. 15, 2018
$ / shares
shares
|
Oct. 01, 2018
shares
|
Nov. 13, 2018
USD ($)
shares
|
|
IPO | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 123,000,000 | 20,000,000.0 | 123,000,000 | 23,000,000.0 | |
Consideration received | $ | $ 369 | ||||
Conversion of stock | 0.935301 | ||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 17.00 | ||||
Over-allotment Option Exercise | |||||
Class of Stock [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 3,000,000.0 | ||||
Livent | IPO | |||||
Class of Stock [Line Items] | |||||
Number of shares held by parent (in shares) | 123,000,000 | ||||
FMC | Livent | |||||
Class of Stock [Line Items] | |||||
Percentage ownership | 84.00% | 84.00% |
Principal Accounting Policies and Related Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | |||||
Corporate allocations | $ 0.0 | $ 5.0 | $ 0.0 | $ 10.1 | |
Common stock, outstanding (in shares) | 145,979,747 | 145,979,747 | 146,000,000 | ||
Earnings per share - basic and diluted (in usd per share) | $ 0.31 | $ 0.57 | |||
Majority Shareholder | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | $ 5.0 | $ 10.1 | |||
Majority Shareholder | Livent shared service costs | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | 1.5 | 3.0 | |||
Majority Shareholder | FMC Corporate shared service costs allocated to Livent | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | 0.3 | 1.0 | |||
Majority Shareholder | Stock compensation expense | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | 0.8 | 1.8 | |||
Majority Shareholder | FMC Corporate expense allocation | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | 2.4 | 4.3 | |||
Majority Shareholder | Stock compensation expense included in shared service costs | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | 0.2 | 0.4 | |||
Majority Shareholder | Cost of sales | Livent shared service costs | |||||
Related Party Transaction [Line Items] | |||||
Corporate allocations | $ 2.2 | $ 4.3 | |||
Pro Forma | |||||
Related Party Transaction [Line Items] | |||||
Common stock, outstanding (in shares) | 123,000,000.0 | 123,000,000.0 |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total assets | $ 709.7 | $ 660.0 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total assets | $ 16.0 | ||
Total liabilities | $ 16.0 |
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 114.0 | $ 107.9 | $ 212.3 | $ 210.7 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 18.6 | 22.6 | 34.4 | 42.4 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0.3 | 0.3 | 1.0 | 1.0 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 17.6 | 20.0 | 32.9 | 37.5 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 77.5 | 65.0 | 144.0 | 129.8 |
JAPAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 43.8 | 18.3 | 91.8 | 37.9 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 18.1 | 22.1 | 33.8 | 41.9 |
CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 24.9 | $ 33.3 | $ 32.9 | $ 68.3 |
Revenue Recognition - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | |||||
Contract liabilities from customers | $ 0 | $ 0 | $ 0 | ||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract payment term | 30 days | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract payment term | 180 days | ||||
Customer One | Sales Revenue, Net | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 30.00% | 11.00% | 10.00% | ||
Ten Largest Customers | Sales Revenue, Net | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 65.00% | 47.00% | 58.00% | 51.00% | |
Two Customers | Sales Revenue, Net | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 32.00% |
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 114.0 | $ 107.9 | $ 212.3 | $ 210.7 |
Lithium Hydroxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 68.4 | 52.9 | 125.3 | 102.7 |
Butyllithium | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 24.7 | 24.6 | 51.6 | 49.2 |
High Purity Lithium Metal and Other Specialty Compounds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14.1 | 15.5 | 27.1 | 33.3 |
Lithium Carbonate and Lithium Chloride | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 6.8 | $ 14.9 | $ 8.3 | $ 25.5 |
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer, net of allowances | $ 118.0 | $ 141.4 |
Increase (decrease) in receivables | $ (23.4) |
Revenue Recognition - Performance Obligations (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 20 |
Expected timing of satisfaction of performance obligations | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 49 |
Expected timing of satisfaction of performance obligations | 1 year |
Inventories, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 15.9 | $ 22.2 |
Work in process | 40.0 | 36.6 |
Raw materials, supplies and other | 13.1 | 14.5 |
First-in, first-out inventory | 69.0 | 73.3 |
Less: Excess of first-in, first-out cost over last-in, first-out cost | (1.5) | (1.5) |
Inventories, net | $ 67.5 | $ 71.8 |
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 531.9 | $ 468.8 |
Accumulated depreciation | (194.6) | (193.1) |
Property, plant and equipment, net | $ 337.3 | $ 275.7 |
Restructuring and Other Charges (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
site
|
Jun. 30, 2018
USD ($)
|
|
Other charges | ||||
Corporate severance-related costs | $ 3.5 | $ 0.0 | $ 3.5 | $ 0.0 |
Environmental remediation | 0.1 | 0.1 | 0.2 | 0.2 |
Other | 0.2 | 0.0 | 0.2 | 0.0 |
Total restructuring and other charges | 3.8 | 0.2 | $ 3.9 | 2.3 |
Number of environmental remediation sites | site | 1 | |||
Demolition and Exit Charges | ||||
Restructuring charges | ||||
Restructuring charges | 0.0 | 0.1 | $ 0.0 | 1.9 |
Asset Disposal Charges | ||||
Restructuring charges | ||||
Restructuring charges | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.2 |
Restructuring and Other Charges - Restructuring Reserve Activity (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 3.6 | $ 2.9 |
Change in reserves | 1.9 | |
Cash payments | (0.1) | (1.2) |
Restructuring reserve, ending balance | $ 3.5 | $ 3.6 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 2.6 | $ 5.2 | $ 6.7 | $ 13.2 |
Effective tax rate | 14.40% | 12.00% | 17.10% | 15.80% |
Environmental Obligations (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Total environmental reserves, beginning balance | $ 6.4 | $ 6.4 | ||
Change in reserve | 0.2 | 0.2 | ||
Cash payments | (0.2) | (0.2) | ||
Total environmental reserves, ending balance | 6.4 | 6.4 | ||
Environmental reserves, current | $ 0.5 | $ 0.5 | ||
Environmental reserves, long-term | 5.9 | 5.9 | ||
Total environmental reserves, net of recoveries at end of period | $ 6.4 | $ 6.4 | $ 6.4 | $ 6.4 |
Debt - Long-term Debt (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Total long-term debt | $ 59.1 | $ 34.0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 59.1 | 34.0 |
Letters of credit outstanding amount | 10.3 | 10.3 |
Available funds | $ 330.6 | $ 355.7 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 4.40% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 6.50% |
Debt - Narrative (Details) - Citibank, N.A. |
Sep. 28, 2018
USD ($)
|
---|---|
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility borrowing capacity | $ 400,000,000 |
Credit facility optional increase limit | 600,000,000 |
Letter of Credit | |
Debt Instrument [Line Items] | |
Credit facility borrowing capacity | $ 50,000,000 |
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Mar. 05, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 3.40 | ||
Unrecognized compensation cost related to unvested stock options | $ 3.0 | $ 3.0 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment award, expiration period | 10 years | ||
Requisite service period | 3 years | ||
Cliff Vesting Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 2 years 7 months 15 days | ||
Unrecognized compensation cost | $ 5.6 | $ 5.6 | |
Livent Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 6,290,000 | 6,290,000 | 2,000,000 |
Stock-based Compensation - Stock Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense, net of taxes | $ 2.0 | $ 3.0 |
Stock compensation expense, tax | 0.4 | 0.6 |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense, net of taxes | 0.8 | 1.2 |
Stock compensation expense, tax | 0.2 | 0.2 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock compensation expense, net of taxes | 1.2 | 1.8 |
Stock compensation expense, tax | 0.2 | 0.4 |
Selling, General and Administrative Expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Gross stock compensation charges | 1.1 | 2.3 |
Restructuring and Other Charges | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Gross stock compensation charges | 1.2 | 1.2 |
Separation-Related Costs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Gross stock compensation charges | $ 0.1 | $ 0.1 |
Stock-based Compensation - Black Scholes Assumptions (Details) - Stock Option |
6 Months Ended |
---|---|
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend yield | 0.00% |
Expected volatility | 20.07% |
Expected life (in years) | 6 years 6 months |
Risk-free interest rate | 2.55% |
Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Number of Options Granted But Not Exercised | ||
Balance at beginning of period (in shares) | 716,256 | |
Granted (in shares) | 56,835 | |
Forfeited (in shares) | (62,557) | |
Converted FMC awards (in shares) | 946,161 | |
Balance at end of period (in shares) | 1,656,695 | 716,256 |
Options exercisable (in shares) | 474,781 | |
Weighted-Average Remaining Contractual Life (in Years) | ||
Options outstanding | 6 years 11 months | 9 years 9 months 2 days |
Options exercisable | 4 years 5 months 2 days | |
Weighted-Average Exercise Price Per Share | ||
Balance at beginning of period (in dollars per share) | $ 16.99 | |
Granted (in dollars per share) | 12.48 | |
Forfeited (in dollars per share) | 13.70 | |
Balance at end of period (in dollars per share) | 12.46 | $ 16.99 |
Options exercisable (in dollars per share) | $ 8.36 | |
Aggregate Intrinsic Value (in Millions) | ||
Options outstanding | $ 0.2 | $ 0.0 |
Options exercisable | $ 0.2 |
Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2019
$ / shares
shares
| |
Number of awards | |
Balance at beginning of period (in shares) | 249,786 |
Granted (in shares) | 210,561 |
Vested (in shares) | (105,964) |
Forfeited (in shares) | (27,764) |
Converted FMC awards (in shares) | 311,387 |
Balance at end of period (in shares) | 638,006 |
Weighted-Average Grant Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 16.94 |
Granted (in dollars per share) | $ / shares | 11.67 |
Vested (in dollars per share) | $ / shares | 11.76 |
Forfeited (in dollars per share) | $ / shares | 12.51 |
Balance at end of period (in dollars per share) | $ / shares | $ 12.73 |
Equity - Summary of Capital Stock Activity (Details) - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Common Stock Activity [Roll Forward] | ||
Beginning balance (in shares) | 146,000,000 | |
Ending balance (in shares) | 146,077,835 | |
Treasury Stock [Roll Forward] | ||
Beginning balance (in shares) | 0 | |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (98,088) | |
Ending balance (in shares) | (98,088) | |
Common Stock, Outstanding | ||
Outstanding (in shares) | 145,979,747 | 146,000,000 |
FMC Plan | Restricted Stock Units (RSUs) | ||
Common Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 1,653 | |
Livent Plan | Restricted Stock Units (RSUs) | ||
Common Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 76,182 |
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 506.9 | $ 487.9 | $ 487.9 | $ 385.4 |
Other comprehensive loss before reclassifications | 1.1 | (1.2) | ||
Amounts reclassified from accumulated other comprehensive income | (0.7) | |||
Ending balance | 523.6 | 506.9 | 523.6 | 463.5 |
Foreign Currency Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (48.0) | (48.0) | (45.6) | |
Other comprehensive loss before reclassifications | 0.0 | |||
Amounts reclassified from accumulated other comprehensive income | 0.0 | |||
Ending balance | (48.0) | (48.0) | (46.8) | |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1.3) | (1.2) | (1.2) | |
Other comprehensive loss before reclassifications | 0.8 | 0.3 | 1.1 | |
Amounts reclassified from accumulated other comprehensive income | (0.3) | (0.4) | (0.7) | |
Ending balance | (0.8) | (1.3) | (0.8) | |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (48.3) | (49.2) | (49.2) | (45.6) |
Other comprehensive loss before reclassifications | (1.2) | |||
Ending balance | $ (48.8) | $ (48.3) | $ (48.8) | $ (46.8) |
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales and services | $ 80,200,000 | $ 54,100,000 | $ 145,800,000 | $ 104,700,000 | ||
Total before tax | 18,100,000 | 43,200,000 | 39,100,000 | 83,400,000 | ||
Net income | 15,500,000 | $ 16,900,000 | 38,000,000 | $ 32,200,000 | 32,400,000 | 70,200,000 |
Provision for income taxes | 2,600,000 | 5,200,000 | 6,700,000 | 13,200,000 | ||
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Total before tax | (300,000) | (700,000) | ||||
Net income | (300,000) | $ 0 | (700,000) | $ 0 | ||
Provision for income taxes | 100,000 | 100,000 | ||||
Foreign Exchange Contracts | Derivative Instruments | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of sales and services | $ (300,000) | $ (700,000) |
Equity - Additional Information (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 |
Dividends paid | $ 0 | $ 0 |
Earnings Per Share - Narrative (Details) - $ / shares |
1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 01, 2019 |
Nov. 13, 2018 |
Oct. 15, 2018 |
Oct. 01, 2018 |
Nov. 13, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Common stock, outstanding (in shares) | 145,979,747 | 145,979,747 | 146,000,000 | |||||||
Antidilutive securities (in shares) | 1,151,312 | 949,697 | ||||||||
Antidilutive securities, exercise price (in dollars per share) | $ 14.57 | $ 15.53 | ||||||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 500,000 | 0 | 500,000 | 0 | ||||||
FMC Plan | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 500,000 | 500,000 | ||||||||
Pro Forma | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Common stock, outstanding (in shares) | 123,000,000.0 | 123,000,000.0 | ||||||||
IPO | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 123,000,000 | 20,000,000.0 | 123,000,000 | 23,000,000.0 | ||||||
Sale of stock, price per share (in dollars per share) | $ 17.00 | |||||||||
Over-allotment Option Exercise | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||
Sale of stock, number of shares issued (in shares) | 3,000,000.0 |
Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||
Numerator: | |||||||||
Net income | $ 15.5 | $ 16.9 | $ 38.0 | $ 32.2 | $ 32.4 | $ 70.2 | |||
Denominator: | |||||||||
Weighted average common shares outstanding - basic (in shares) | [1] | 146.0 | 123.0 | 146.0 | 123.0 | ||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0.5 | 0.0 | 0.5 | 0.0 | |||||
Weighted average common shares outstanding – diluted (in shares) | [1] | 146.5 | 123.0 | 146.5 | 123.0 | ||||
Basic earnings per common share: | |||||||||
Net income per weighted average share - basic (in dollars per share) | $ 0.11 | $ 0.31 | $ 0.22 | $ 0.57 | |||||
Diluted earnings per common share: | |||||||||
Net income per weighted average share - diluted (in dollars per share) | $ 0.11 | $ 0.31 | $ 0.22 | $ 0.57 | |||||
|
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative [Line Items] | ||
Estimated fair value of debt | $ 59.1 | $ 34.0 |
Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 51.0 | |
Designated as Hedging Instrument | Foreign Currency and Energy Contracts | ||
Derivative [Line Items] | ||
Foreign currency cash flow hedge, gain (loss) to be realized in next twelve months | (0.8) | |
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 84.0 | |
Cash Flow Hedging | Foreign Exchange Contracts | ||
Derivative [Line Items] | ||
Foreign currency forward contracts | $ 0.8 |
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value Derivative Instruments (Details) - Designated as Hedging Instrument - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives | ||
Gross amounts of derivative liabilities | $ (0.8) | $ (1.3) |
Net derivative liabilities | (0.8) | (1.3) |
Foreign Exchange Contracts | ||
Derivatives | ||
Gross amounts of derivative liabilities | $ (0.8) | $ (1.3) |
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 506.9 | $ 487.9 | $ 432.5 | $ 487.9 | $ 385.4 |
Unrealized hedging gains, net of tax | 1.1 | (1.2) | |||
Amounts reclassified from accumulated other comprehensive income | (0.7) | ||||
Other comprehensive (loss) income, net of tax | (0.5) | (3.7) | 0.4 | (1.2) | |
Ending balance | 523.6 | 506.9 | $ 463.5 | 523.6 | $ 463.5 |
Foreign Exchange Contracts | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1.3) | (1.2) | (1.2) | ||
Unrealized hedging gains, net of tax | 0.8 | 0.3 | 1.1 | ||
Amounts reclassified from accumulated other comprehensive income | (0.3) | (0.4) | (0.7) | ||
Other comprehensive (loss) income, net of tax | 0.5 | (0.1) | |||
Ending balance | $ (0.8) | $ (1.3) | $ (0.8) |
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.9) | $ (1.0) |
Foreign Exchange contracts | Cost of Sales and Services | ||
Derivative [Line Items] | ||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.9) | $ (1.0) |
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Assets | |||
Investments in deferred compensation plan | $ 1.4 | $ 1.4 | $ 0.0 |
Total Assets | 1.4 | 1.4 | |
Liabilities | |||
Deferred compensation plan obligation | 2.1 | 2.1 | |
Total Liabilities | 2.9 | 2.9 | 1.3 |
Foreign Exchange Contracts | |||
Liabilities | |||
Derivatives - Foreign exchange | 0.8 | 0.8 | 1.3 |
Level 1 | |||
Assets | |||
Investments in deferred compensation plan | 1.4 | 1.4 | |
Total Assets | 1.4 | 1.4 | |
Liabilities | |||
Deferred compensation plan obligation | 2.1 | 2.1 | |
Total Liabilities | 2.1 | 2.1 | 0.0 |
Level 1 | Foreign Exchange Contracts | |||
Liabilities | |||
Derivatives - Foreign exchange | 0.0 | 0.0 | 0.0 |
Level 2 | |||
Assets | |||
Investments in deferred compensation plan | 0.0 | 0.0 | |
Total Assets | 0.0 | 0.0 | |
Liabilities | |||
Deferred compensation plan obligation | 0.0 | 0.0 | |
Total Liabilities | 0.8 | 0.8 | 1.3 |
Level 2 | Foreign Exchange Contracts | |||
Liabilities | |||
Derivatives - Foreign exchange | 0.8 | 0.8 | 1.3 |
Level 3 | |||
Assets | |||
Investments in deferred compensation plan | 0.0 | 0.0 | |
Total Assets | 0.0 | 0.0 | |
Liabilities | |||
Deferred compensation plan obligation | 0.0 | 0.0 | |
Total Liabilities | 0.0 | 0.0 | 0.0 |
Level 3 | Foreign Exchange Contracts | |||
Liabilities | |||
Derivatives - Foreign exchange | 0.0 | 0.0 | $ 0.0 |
Selling, General and Administrative Expenses | |||
Liabilities | |||
Mark-to-market gain on common stock | $ 0.1 | $ 0.1 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Lessee, Lease, Description [Line Items] | ||
Operating lease, weighted average remaining lease term | 12 years 2 months | |
Operating lease, weighted average discount rate | 4.40% | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 1.7 | |
2020 | 1.9 | |
2021 | 1.8 | |
2022 | 1.7 | |
2023 | 1.6 | |
Thereafter | $ 10.2 | |
Minimum | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remaining lease term | 2 years | |
Maximum | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Remaining lease term | 15 years |
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
Lease Cost | ||
Operating lease cost | $ 0.5 | $ 1.0 |
Other information | ||
Cash paid for operating leases | $ 0.4 | 0.8 |
Variable lease cost | 0.1 | |
Sublease income | $ 0.1 |
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions |
Jun. 30, 2019
USD ($)
|
---|---|
Undiscounted cash flows | |
Remainder of 2019 | $ 0.8 |
2020 | 1.9 |
2021 | 1.9 |
2022 | 1.8 |
2023 | 1.9 |
Thereafter | 13.5 |
Total future minimum lease payments | 21.8 |
Less: Imputed interest | (5.3) |
Total | $ 16.5 |
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Argentina government receivable | $ 7.0 | $ 8.8 |
Tax related items | 8.2 | 4.1 |
Other receivables | 6.0 | 6.2 |
Prepaid expenses | 5.7 | 8.4 |
Bank Acceptance Drafts | 19.6 | 29.1 |
Other current assets | 7.0 | 3.2 |
Total | $ 53.5 | $ 59.8 |
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Other assets | ||
Argentina government receivable | $ 49.7 | $ 41.5 |
Advance to contract manufacturers | 16.4 | 15.3 |
Investments in deferred compensation plan | 1.4 | 0.0 |
Capitalized software, net | 1.2 | 1.4 |
Prepayment associated with long-term supply agreements | 10.0 | 10.0 |
Tax related items | 4.9 | 6.2 |
Other assets | 5.6 | 5.6 |
Total | 89.2 | 80.0 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred asset | 2.6 | 3.2 |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 38.0 | $ 38.0 |
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Accrued and other current liabilities | ||
Restructuring reserves | $ 3.5 | $ 3.6 |
Due to parent - FMC | 0.5 | 23.8 |
Accrued payroll | 5.2 | 8.5 |
Derivative liabilities | 0.8 | 1.3 |
Environmental reserves, current | 0.5 | 0.5 |
Supplemental Unemployment Benefits, Severance Benefits | 0.9 | 0.0 |
Other accrued and other current liabilities | 9.6 | 9.1 |
Total | $ 21.0 | 46.8 |
Transaction Services Agreement | ||
Accrued and other current liabilities | ||
Due to parent - FMC | 2.3 | |
Transaction Services Agreement, Income Taxes Payable | ||
Accrued and other current liabilities | ||
Due to parent - FMC | 16.9 | |
Livent shared service costs | ||
Accrued and other current liabilities | ||
Due to parent - FMC | $ 4.6 |
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Other long-term liabilities | ||
Asset retirement obligations | $ 0.2 | $ 0.2 |
Contingencies related to uncertain tax positions | 5.5 | 6.0 |
Self-insurance reserves | 2.3 | 2.4 |
Deferred compensation plan obligations | 2.1 | 0.0 |
Other long-term liabilities | 0.9 | 0.7 |
Total | 11.0 | 9.3 |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 3.0 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 2.9 |
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