Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
LARGE ACCELERATED FILER | ☒ | ACCELERATED FILER | ☐ | |||||||||||||||||
NON-ACCELERATED FILER | ☐ | SMALLER REPORTING COMPANY | ||||||||||||||||||
EMERGING GROWTH COMPANY | ||||||||||||||||||||
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. | ||||||||||||||||||||
☐ |
Page No. | |||||
2025 Notes | $245.75 million principal amount 4.125% Convertible Senior Notes due 2025, including $20.75 million issued upon exercise of the Over-Allotment Option on July 7, 2020. | ||||
AOCI | Accumulated other comprehensive income | ||||
Application | The application filed by Livent with the CCAA Court to obtain remittance of the Escrow Funds | ||||
ASC | Accounting Standards Codification, under U.S. GAAP | ||||
ASC 842 | Accounting Standards Codification Topic 842 - Leases | ||||
ASU | Accounting Standards Update, under U.S. GAAP | ||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act | ||||
CCAA | The Companies’ Creditors Arrangement Act (Canada) | ||||
CCAA Court | The Superior Court of Quebec where Nemaska, Nemaska Lithium Inc. and certain affiliates filed for creditor protection in Canada under the CCAA | ||||
Credit Agreement | The Original Credit Agreement, as amended on May 6, 2020, by the First Amendment and August 3, 2020, by the Second Amendment | ||||
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 | ||||
Escrow Funds | The funds held in escrow by a third party for the benefit of Livent in connection with the Nemaska matter | ||||
EV | Electric vehicle | ||||
FASB | Financial Accounting Standards Board | ||||
First Amendment | On May 6, 2020, Livent Corporation entered into the First Amendment to the Credit Agreement to amend and restate the Original Credit Agreement | ||||
FMC | FMC Corporation | ||||
FMC Plan | FMC Corporation Incentive Compensation and Stock Plan | ||||
IPO | Initial public offering | ||||
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 | ||||
Livent Plan | Livent Corporation Incentive Compensation and Stock Plan | ||||
Nemaska | Nemaska Lithium Shawinigan Transformation Inc., a subsidiary of Nemaska Lithium Inc. | ||||
Nemaska Transaction | The sale proposal structured as a credit bid under the CCAA from a group made up of Orion Mine Finance, Investissement Quebec and The Pallinghurst Group to purchase certain assets and operate the business previously conducted by Nemaska Lithium Inc. | ||||
Original Credit Agreement | On September 18, 2018 Livent Corporation entered into the credit agreement, which provides for a $400 million senior secured revolving credit facility | ||||
Over-Allotment Option | Option to purchase an additional $20.75 million principal amount of 2025 Notes exercised on July 7, 2020. | ||||
Revolving Credit Facility | Livent's $400 million senior secured revolving credit facility | ||||
RSU | Restricted stock unit | ||||
SEC | Securities and Exchange Commission | ||||
Second Amendment | On August 3, 2020, Livent Corporation entered into the Second Amendment to the Credit Agreement to amend the Credit Agreement |
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 | ||||
Settlement Funds | A portion of the Escrow Funds that will be paid to the new ownership group under the Nemaska Transaction in settlement of the Company's claims against Nemaska | ||||
Tax Act | Tax Cuts and Jobs Act | ||||
U.S. GAAP | United States Generally Accepted Accounting Principles | ||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in Millions, Except Per Share Data) | (unaudited) | ||||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Gross margin | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Restructuring and other charges | |||||||||||||||||||||||
Separation-related costs | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
(Loss)/income from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliate, interest expense, net and income taxes | ( | ( | |||||||||||||||||||||
Loss on debt extinguishment | |||||||||||||||||||||||
Equity in net loss of unconsolidated affiliate | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
(Loss)/income from operations before income taxes | ( | ( | |||||||||||||||||||||
Income tax (benefit)/expense | ( | ( | ( | ||||||||||||||||||||
Net (loss)/income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net (loss)/income per weighted average share - basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Net (loss)/income per weighted average share - diluted | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in Millions) | (unaudited) | ||||||||||||||||||||||
Net (loss)/income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Other comprehensive income/(loss), net of tax: | |||||||||||||||||||||||
Foreign currency adjustments: | |||||||||||||||||||||||
Foreign currency translation gain/(loss) arising during the period | ( | ( | |||||||||||||||||||||
Total foreign currency translation adjustments (1) | ( | ( | |||||||||||||||||||||
Derivative instruments: | |||||||||||||||||||||||
Unrealized hedging gains/(losses), net of tax of less than $ | ( | ||||||||||||||||||||||
Reclassification of deferred hedging gains included in net income, net of tax of less than $ | ( | ( | |||||||||||||||||||||
Total derivative instruments gain/(loss), net of tax of less than $ | ( | ||||||||||||||||||||||
Other comprehensive income/(loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive (loss)/income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
(in Millions, Except Share and Par Value Data) | September 30, 2020 | December 31, 2019 | |||||||||
ASSETS | (unaudited) | ||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade receivables, net of allowance of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Investments | |||||||||||
Property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
Deferred income taxes | |||||||||||
Right of use assets - operating leases, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable, trade and other | $ | $ | |||||||||
Accrued and other current liabilities | |||||||||||
Operating lease liabilities - current | |||||||||||
Income taxes | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities - long-term | |||||||||||
Environmental liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingent liabilities (Note 12) | |||||||||||
Total current and long-term liabilities | |||||||||||
Equity | |||||||||||
Common stock; $ | |||||||||||
Capital in excess of par value of common stock | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, common; | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
(in Millions) | (unaudited) | ||||||||||
Cash required by operating activities: | |||||||||||
Net (loss)/income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Restructuring and other charges | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Separation-related costs | |||||||||||
Share-based compensation | |||||||||||
Change in investments in trust fund securities | ( | ||||||||||
Loss on debt extinguishment | |||||||||||
Deferred financing fees amortization | |||||||||||
Equity in net loss of unconsolidated affiliate | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables, net | |||||||||||
Inventories | ( | ( | |||||||||
Accounts payable, trade and other | ( | ( | |||||||||
Change in due to related party | ( | ||||||||||
Change in deferred compensation | |||||||||||
Income taxes | ( | ( | |||||||||
Change in prepaid and other current assets and other assets | ( | ( | |||||||||
Change in accrued and other current liabilities and other long-term liabilities | ( | ||||||||||
Cash provided by operating activities | |||||||||||
Cash required by investing activities: | |||||||||||
Capital expenditures(1) | ( | ( | |||||||||
Investments in trust fund securities | ( | ( | |||||||||
Other investing activities | ( | ( | |||||||||
Cash required by investing activities | ( | ( | |||||||||
Cash provided by financing activities: | |||||||||||
Proceeds from Revolving Credit Facility | |||||||||||
Repayments of Revolving Credit Facility | ( | ( | |||||||||
Proceeds from 2025 Notes | |||||||||||
Payments of financing fees | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental Disclosure for Cash Flow: | |||||||||||
Cash payments for income taxes, net of refunds (2) | $ | $ | |||||||||
Cash payments for interest, net (1) | $ | $ | |||||||||
Cash payments for Restructuring and other charges | $ | $ | |||||||||
Cash payments for Separation-related charges (3) | $ | $ | |||||||||
Accrued capital expenditures | $ | $ | |||||||||
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | $ | $ |
(in Millions Except Per Share Data) | Common Stock, $ | Capital In Excess of Par | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||||||||||
Balance, January 1, 2019 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
Net hedging losses, net of income tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
Net hedging gains, net of income tax | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Purchases of treasury stock - deferred compensation plan | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
Net hedging gains, net of income tax | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | ( | — | ( | ||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Balance, January 1, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
Shares withheld for taxes - common stock issuances | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
Net hedging losses, net of income tax | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
2025 Notes - discount net of issuance fees and income tax | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net loss | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||
2025 Notes - discount net of issuance fees and income tax | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
(in Millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
North America (1) | $ | $ | $ | $ | |||||||||||||||||||
Latin America | |||||||||||||||||||||||
Europe, Middle East & Africa | |||||||||||||||||||||||
Asia Pacific (1) | |||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ |
(in Millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Lithium Hydroxide | $ | $ | $ | $ | |||||||||||||||||||
Butyllithium | |||||||||||||||||||||||
High Purity Lithium Metal and Other Specialty Compounds | |||||||||||||||||||||||
Lithium Carbonate and Lithium Chloride | |||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ |
(in Millions) | Balance as of September 30, 2020 | Balance as of December 31, 2019 | Increase (Decrease) | ||||||||||||||
Receivables from contracts with customers, net of allowances | $ | $ | $ | ( | |||||||||||||
(in Millions) | September 30, 2020 | December 31, 2019 | |||||||||
Finished goods | $ | $ | |||||||||
Semi-finished goods | |||||||||||
Raw materials, supplies and other | |||||||||||
Inventory, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Severance-related and exit costs (1) | $ | $ | $ | $ | |||||||||||||||||||
Other charges | |||||||||||||||||||||||
Corporate severance-related costs (2) | |||||||||||||||||||||||
Environmental remediation (3) | |||||||||||||||||||||||
Other (4) | |||||||||||||||||||||||
Total Restructuring and other charges | $ | $ | $ | $ |
(in Millions) | Restructuring Reserve Total | ||||
Balance December 31, 2018 | $ | ||||
Cash payments | ( | ||||
Balance December 31, 2019 | $ | ||||
Cash payments | ( | ||||
Balance September 30, 2020 | $ |
Interest Rate Percentage | Maturity Date | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||
(in Millions) | LIBOR borrowings | Base rate borrowings | |||||||||||||||||||||||||||||||||
Revolving Credit Facility (1) | 2023 | $ | $ | ||||||||||||||||||||||||||||||||
2025 | |||||||||||||||||||||||||||||||||||
Discount - 2025 Notes (2) | ( | ||||||||||||||||||||||||||||||||||
Total long-term debt (3) | $ | $ |
(a) | (b) | (a) + (b) | |||||||||||||||
$ | $ | Total 2025 Notes | |||||||||||||||
(in Millions) | |||||||||||||||||
Discount | $ | $ | $ | ||||||||||||||
Transaction costs | |||||||||||||||||
Liability (1) | $ | $ | $ | ||||||||||||||
Equity | |||||||||||||||||
Total transaction costs | $ | $ | $ |
Issued | Treasury | Outstanding | |||||||||||||||
Balance at December 31, 2019 | ( | ||||||||||||||||
Adjusted FMC RSU awards (1) | — | ||||||||||||||||
Livent RSU awards | — | ||||||||||||||||
Livent stock option awards | — | ||||||||||||||||
Purchases of treasury stock - deferred compensation plan | — | ( | ( | ||||||||||||||
Balance at September 30, 2020 | ( |
(in Millions) | Foreign currency adjustments | Derivative Instruments (1) | Total | ||||||||||||||
Accumulated other comprehensive loss, net of tax at December 31, 2019 | $ | ( | $ | ( | |||||||||||||
Other comprehensive income/(loss) before reclassifications | ( | ||||||||||||||||
Accumulated other comprehensive loss, net of tax at September 30, 2020 | $ | ( | $ | ( | $ | ( |
(in Millions) | Foreign currency adjustments | Derivative Instruments (1) | Total | ||||||||||||||
Accumulated other comprehensive loss, net of tax at December 31, 2018 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive (loss)/income before reclassifications | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||
Accumulated other comprehensive (loss)/income, net of tax at September 30, 2019 | $ | ( | $ | $ | ( |
Details about Accumulated Other Comprehensive Loss Components | Amounts Reclassified from Accumulated Other Comprehensive Loss (1) | Affected Line Item in the Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
Derivative instruments | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | ( | $ | ( | $ | ( | $ | ( | Costs of sales and services | |||||||||||||||||||||||
Total before tax | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Amount included in net income (1) | $ | ( | $ | ( | $ | ( | $ | ( |
(in Millions, Except Share and Per Share Data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net (loss)/income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Incremental weighted average common shares - FMC Plan | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Basic (loss)/earnings per common share: | |||||||||||||||||||||||
Net (loss)/income per weighted average share - basic | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Diluted (loss)/earnings per common share: | |||||||||||||||||||||||
Net (loss)/income per weighted average share - diluted | $ | ( | $ | $ | ( | $ |
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. |
September 30, 2020 | |||||
Gross Amount of Derivatives | |||||
(in Millions) | Designated as Cash Flow Hedges | ||||
Derivatives | |||||
Foreign exchange contracts | $ | ( | |||
Total derivative liabilities | ( | ||||
Net derivative liabilities | $ | ( | |||
(in Millions) | Total Foreign Exchange Contracts | ||||
Accumulated other comprehensive loss, net of tax at March 31, 2020 | $ | ||||
Unrealized hedging losses, net of tax | ( | ||||
Total derivative instrument impact on comprehensive income, net of tax | ( | ||||
Accumulated other comprehensive loss, net of tax at June 30, 2020 | $ | ( | |||
Unrealized hedging gains, net of tax | |||||
Reclassification of deferred hedging gains, net of tax (1) | ( | ||||
Accumulated other comprehensive loss, net of tax at September 30, 2020 | $ | ( | |||
Accumulated other comprehensive loss, net of tax at December 31, 2018 | $ | ( | |||
Unrealized hedging gains, net of tax | |||||
Reclassification of deferred hedging gains, net of tax (1) | ( | ||||
Total derivative instrument impact on comprehensive income, net of tax | ( | ||||
Accumulated other comprehensive loss, net of tax at March 31, 2019 | $ | ( | |||
Unrealized hedging gains, net of tax | |||||
Reclassification of deferred hedging gains, net of tax (1) | ( | ||||
Total derivative instrument impact on comprehensive income, net of tax | |||||
Accumulated other comprehensive loss, net of tax at June 30, 2019 | $ | ( | |||
Unrealized hedging gains, net of tax | |||||
Reclassification of deferred hedging gains, net of tax (1) | ( | ||||
Total derivative instrument impact on comprehensive income, net of tax | |||||
Accumulated other comprehensive gain, net of tax at September 30, 2019 | $ |
Location of Loss Recognized in Income on Derivatives | Amount of Pre-tax Loss Recognized in Income on Derivatives (1) | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Foreign Exchange contracts | Cost of Sales and Services | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ | ( |
(in Millions) | September 30, 2020 | 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) | $ | $ | $ | $ | |||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Deferred compensation plan obligation (2) | $ | $ | $ | $ | |||||||||||||||||||
Total Liabilities | $ | $ | $ | $ |
(in Millions) | December 31, 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) | $ | $ | $ | $ | |||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Deferred compensation plan obligation (2) | $ | $ | $ | $ | |||||||||||||||||||
Total Liabilities | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in Millions, except for weighted-average amounts) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Lease Cost | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Short-term lease cost (1) | |||||||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Sublease income | ( | ( | |||||||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
Other information | |||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Cash paid for operating leases | $ | $ | $ | $ |
(in Millions) | Undiscounted cash flows | |||||||
Remainder of 2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
Thereafter | ||||||||
Total future minimum lease payments | ||||||||
Less: Imputed interest | ( | |||||||
Total | $ |
(in Millions) | September 30, 2020 | December 31, 2019 | |||||||||
Prepaid and other current assets | |||||||||||
Argentina government receivable (1) | $ | $ | |||||||||
Tax related items | |||||||||||
Other receivables | |||||||||||
Prepaid expenses | |||||||||||
Bank Acceptance Drafts (2) | |||||||||||
Other current assets (3) | |||||||||||
Total | $ | $ |
(in Millions) | September 30, 2020 | December 31, 2019 | |||||||||
Other assets | |||||||||||
Argentina government receivable (1) | $ | $ | |||||||||
Advance to contract manufacturers (4) | |||||||||||
Capitalized software, net | |||||||||||
Prepayment associated with long-term supply agreement (5) | |||||||||||
Tax related items (6) | |||||||||||
Other assets | |||||||||||
Total | $ | $ |
(in Millions) | September 30, 2020 | December 31, 2019 | |||||||||
Accrued and other current liabilities | |||||||||||
Plant restructuring reserves | $ | $ | |||||||||
Retirement liability - 401K | |||||||||||
Accrued payroll | |||||||||||
Derivative liabilities | |||||||||||
Severance related | |||||||||||
Environmental reserves, current | |||||||||||
Other accrued and other current liabilities (1) | |||||||||||
Total | $ | $ |
(in Millions) | September 30, 2020 | December 31, 2019 | |||||||||
Other long-term liabilities | |||||||||||
Asset retirement obligations | $ | $ | |||||||||
Contingencies related to uncertain tax positions (2) | |||||||||||
Deferred compensation plan obligation | |||||||||||
Self-insurance reserves | |||||||||||
Other long-term liabilities | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in Millions, Except Per Share Data) | (unaudited) | ||||||||||||||||||||||
Revenue | $ | 72.6 | $ | 97.7 | $ | 206.0 | $ | 310.0 | |||||||||||||||
Cost of sales | 69.8 | 69.4 | 178.4 | 215.2 | |||||||||||||||||||
Gross margin | 2.8 | 28.3 | 27.6 | 94.8 | |||||||||||||||||||
Selling, general and administrative expenses | 10.0 | 10.2 | 31.1 | 29.2 | |||||||||||||||||||
Research and development expenses | 1.0 | 0.9 | 2.8 | 2.5 | |||||||||||||||||||
Restructuring and other charges | 4.4 | 0.9 | 10.1 | 4.8 | |||||||||||||||||||
Separation-related costs | 0.6 | 2.5 | 0.8 | 5.4 | |||||||||||||||||||
Total costs and expenses | 85.8 | 83.9 | 223.2 | 257.1 | |||||||||||||||||||
(Loss)/income from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliate, interest expense, net and income taxes | (13.2) | 13.8 | (17.2) | 52.9 | |||||||||||||||||||
Loss on debt extinguishment | — | — | 0.1 | — | |||||||||||||||||||
Equity in net loss of unconsolidated affiliate | 0.1 | — | 0.4 | — | |||||||||||||||||||
Interest expense, net | 2.0 | — | 2.0 | — | |||||||||||||||||||
(Loss)/income from operations before income taxes | (15.3) | 13.8 | (19.7) | 52.9 | |||||||||||||||||||
Income tax (benefit)/expense | (3.5) | (4.2) | (5.8) | 2.5 | |||||||||||||||||||
Net (loss)/income | $ | (11.8) | $ | 18.0 | $ | (13.9) | $ | 50.4 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in Millions) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net (loss)/income (GAAP) | $ | (11.8) | $ | 18.0 | $ | (13.9) | $ | 50.4 | |||||||||||||||
Add back: | |||||||||||||||||||||||
Interest expense, net | 2.0 | — | 2.0 | — | |||||||||||||||||||
Income tax (benefit)/expense | (3.5) | (4.2) | (5.8) | 2.5 | |||||||||||||||||||
Depreciation and amortization | 6.1 | 5.8 | 17.7 | 15.5 | |||||||||||||||||||
EBITDA (Non-GAAP) | (7.2) | 19.6 | — | 68.4 | |||||||||||||||||||
Add back: | |||||||||||||||||||||||
Certain Argentina remeasurement losses (a) | 1.5 | 5.2 | 4.4 | 5.2 | |||||||||||||||||||
Restructuring and other charges (b) | 4.4 | 0.9 | 10.1 | 4.8 | |||||||||||||||||||
Separation-related costs (c) | 0.6 | 2.5 | 0.8 | 5.4 | |||||||||||||||||||
COVID-19 related costs (d) | 1.7 | — | 1.7 | — | |||||||||||||||||||
Loss on debt extinguishment (e) | — | — | 0.1 | — | |||||||||||||||||||
Other loss (f) | (0.1) | — | (0.4) | — | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 0.9 | $ | 28.2 | $ | 16.7 | $ | 83.8 | |||||||||||||||
Hedged Currency vs. Functional Currency | |||||||||||||||||
(in Millions) | Net asset/(liability) position on consolidated balance sheets | Net liability position with 10% strengthening | Net asset position with 10% weakening | ||||||||||||||
Net asset/(liability) position as of September 30, 2020 | $ | (0.2) | $ | (0.9) | $ | 0.4 | |||||||||||
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 Plans or Programs (2) | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (2) | |||||||||||||||||||
July 1 through July 31, 2020 | 957 | $ | 7.04 | $ | — | $ | — | ||||||||||||||||
August 1 through August 31, 2020 | 426 | $ | 7.30 | — | — | ||||||||||||||||||
September 1 through September 30, 2020 | 402 | $ | 7.57 | — | — | ||||||||||||||||||
Total Q3 2020 | 1,785 | $ | 7.22 | $ | — | $ | — |
*10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | Interactive Data File | |||||||
104 | The cover page from Livent Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in Inline XBRL. |
LIVENT CORPORATION (Registrant) | |||||||||||
By: | /s/ GILBERTO ANTONIAZZI | ||||||||||
Gilberto Antoniazzi, Vice President and Chief Financial Officer |
/s/ Paul W. Graves | ||
Paul W. Graves | ||
President and Chief Executive Officer |
/s/ Gilberto Antoniazzi | ||
Gilberto Antoniazzi | ||
Vice President and Chief Financial Officer | ||
/s/ Paul W. Graves | ||
Paul W. Graves | ||
President and Chief Executive Officer |
/s/ Gilberto Antoniazzi | ||
Gilberto Antoniazzi | ||
Vice President and Chief Financial Officer | ||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized hedging gains, tax | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
Reclassification of deferred hedging gains included in net income, tax | 0.1 | |||
Total derivative instruments loss, tax | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Current assets | ||
Cash and cash equivalents | $ 14.8 | $ 16.8 |
Trade receivables, net of allowance of $0.3 in 2020 and $0.3 in 2019 | 72.7 | 90.0 |
Inventories, net | 114.1 | 113.4 |
Prepaid and other current assets | 52.0 | 51.8 |
Total current assets | 253.6 | 272.0 |
Investments | 2.4 | 2.2 |
Property, plant and equipment, net of accumulated depreciation of $217.1 in 2020 and $202.2 in 2019 | 533.6 | 468.8 |
Deferred income taxes | 0.0 | 1.5 |
Right of use assets - operating leases, net | 16.2 | 16.9 |
Other assets | 97.3 | 91.5 |
Total assets | 903.1 | 852.9 |
Current liabilities | ||
Accounts payable, trade and other | 42.4 | 83.1 |
Accrued and other current liabilities | 33.8 | 36.4 |
Operating lease liabilities - current | 2.0 | 2.1 |
Income taxes | 0.0 | 0.9 |
Total current liabilities | 78.2 | 122.5 |
Long-term debt | 224.1 | 154.6 |
Operating lease liabilities - long-term | 14.3 | 15.4 |
Environmental liabilities | 6.4 | 6.4 |
Deferred income taxes | 1.6 | 0.0 |
Other long-term liabilities | 11.9 | 10.0 |
Commitments and contingent liabilities (Note 12) | ||
Total current and long-term liabilities | 336.5 | 308.9 |
Equity | ||
Common stock; $0.001 par value; 2 billion shares authorized in 2018; 146,410,139 and 146,085,696 shares issued; 146,302,517 and 145,981,684 outstanding at September 30, 2020 and December 31, 2019, respectively | 0.1 | 0.1 |
Capital in excess of par value of common stock | 551.7 | 516.4 |
Retained earnings | 62.7 | 76.6 |
Accumulated other comprehensive loss | (47.1) | (48.3) |
Treasury stock, common; 107,622 and 104,012 shares at September 30, 2020 and December 31, 2019, respectively | (0.8) | (0.8) |
Total equity | 566.6 | 544.0 |
Total liabilities and equity | $ 903.1 | $ 852.9 |
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for trade receivables | $ 0.3 | $ 0.3 |
Accumulated depreciation | $ 217.1 | $ 202.2 |
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) | 146,410,139 | 146,085,696 |
Common stock, outstanding (in shares) | 146,302,517 | 145,981,684 |
Treasury stock, at cost (in shares) | 107,622 | 104,012 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|||||||
Cash required by operating activities: | ||||||||
Net (loss)/income | $ (13.9) | $ 50.4 | ||||||
Adjustments to reconcile net (loss)/income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 17.7 | 15.5 | ||||||
Restructuring and other charges | 4.3 | 2.6 | ||||||
Deferred income taxes | (6.1) | (10.4) | ||||||
Separation-related costs | 0.1 | 1.4 | ||||||
Share-based compensation | 3.4 | 3.3 | ||||||
Change in investments in trust fund securities | 0.1 | (0.1) | ||||||
Loss on debt extinguishment | 0.1 | 0.0 | ||||||
Deferred financing fees amortization | 2.0 | 0.0 | ||||||
Equity in net loss of unconsolidated affiliate | 0.4 | 0.0 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade receivables, net | 17.5 | 53.5 | ||||||
Inventories | (0.1) | (3.6) | ||||||
Accounts payable, trade and other | (40.9) | (6.2) | ||||||
Change in due to related party | 0.0 | (23.7) | ||||||
Change in deferred compensation | 0.4 | 0.5 | ||||||
Income taxes | (0.9) | (0.8) | ||||||
Change in prepaid and other current assets and other assets | (5.5) | (15.0) | ||||||
Change in accrued and other current liabilities and other long-term liabilities | 22.9 | (2.5) | ||||||
Cash provided by operating activities | 1.5 | 64.9 | ||||||
Cash required by investing activities: | ||||||||
Capital expenditures | [1] | (110.0) | (120.5) | |||||
Investments in trust fund securities | (0.4) | (0.4) | ||||||
Other investing activities | (1.4) | (4.5) | ||||||
Cash required by investing activities | (111.8) | (125.4) | ||||||
Cash provided by financing activities: | ||||||||
Proceeds from Revolving Credit Facility | 147.0 | 165.5 | ||||||
Proceeds from 2025 Notes | (276.5) | (109.5) | ||||||
Payments of financing fees | (8.4) | (0.1) | ||||||
Proceeds from Issuance of Common Stock | 0.4 | 0.0 | ||||||
Proceeds from issuance of common stock | 245.7 | 0.0 | ||||||
Cash provided by financing activities | 108.2 | 55.9 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0.1 | (0.4) | ||||||
Decrease in cash and cash equivalents | (2.0) | (5.0) | ||||||
Cash and cash equivalents, beginning of period | 16.8 | 28.3 | ||||||
Cash and cash equivalents, end of period | 14.8 | 23.3 | ||||||
Supplemental Disclosure for Cash Flow: | ||||||||
Cash payments for income taxes, net of refunds | [2] | 2.8 | 37.1 | |||||
Cash payments for interest, net | [1] | 4.8 | 2.6 | |||||
Cash payments for Restructuring and other charges | 5.8 | 2.1 | ||||||
Cash payments for Separation-related charges | [3] | 0.7 | 8.7 | |||||
Accrued capital expenditures | 7.8 | 7.4 | ||||||
Operating lease right-of-use assets and lease liabilities recorded for ASC 842 | $ 0.8 | $ 16.1 | ||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Interest expense capitalized | $ 8.1 | |
Change in due to related party | 0.0 | $ (23.7) |
2018 Federal Income Tax Return | ||
Change in due to related party | $ 1.9 | |
Transaction Services Agreement, Income Taxes Payable | ||
Change in due to related party | (16.9) | |
Separation Steps | ||
Change in due to related party | $ (4.6) |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions |
Total |
Common Stock, $0.001 Per Share Par Value |
Capital In Excess of Par |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
|||
---|---|---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 489.6 | $ 512.3 | $ 26.4 | $ (49.2) | $ 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/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 | 508.6 | $ 0.1 | 513.5 | 43.3 | (48.3) | 0.0 | |||
Beginning balance at Dec. 31, 2018 | 489.6 | 512.3 | 26.4 | (49.2) | 0.0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/income | 50.4 | ||||||||
Net hedging losses, net of income tax | 1.5 | ||||||||
Foreign currency translation adjustments | [1] | (1.9) | |||||||
Ending balance at Sep. 30, 2019 | 543.6 | 0.1 | 517.0 | 76.8 | (49.6) | (0.7) | |||
Beginning balance at Mar. 31, 2019 | 508.6 | 0.1 | 513.5 | 43.3 | (48.3) | 0.0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/income | 15.5 | 15.5 | |||||||
Stock compensation plans | 2.4 | 2.4 | |||||||
Net hedging losses, net of income tax | 0.5 | 0.5 | |||||||
Purchases of treasury stock - deferred compensation plan | (0.7) | (0.7) | |||||||
Foreign currency translation adjustments | (1.0) | (1.0) | |||||||
Ending balance at Jun. 30, 2019 | $ 525.3 | 0.1 | 515.9 | 58.8 | (48.8) | (0.7) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Net (loss)/income | $ 18.0 | 18.0 | |||||||
Stock compensation plans | 1.1 | 1.1 | |||||||
Net hedging losses, net of income tax | 1.1 | 1.1 | |||||||
Foreign currency translation adjustments | (1.9) | [1] | (1.9) | ||||||
Ending balance at Sep. 30, 2019 | $ 543.6 | 0.1 | 517.0 | 76.8 | (49.6) | (0.7) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 544.0 | 0.1 | 516.4 | 76.6 | (48.3) | (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/income | (1.9) | (1.9) | |||||||
Stock compensation plans | 1.2 | 1.2 | |||||||
Shares withheld for taxes - common stock issuances | (0.7) | (0.7) | |||||||
Foreign currency translation adjustments | (1.8) | (1.8) | |||||||
Ending balance at Mar. 31, 2020 | 540.8 | 0.1 | 516.9 | 74.7 | (50.1) | (0.8) | |||
Beginning balance at Dec. 31, 2019 | 544.0 | 0.1 | 516.4 | 76.6 | (48.3) | (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/income | (13.9) | ||||||||
Net hedging losses, net of income tax | (0.2) | ||||||||
Foreign currency translation adjustments | [1] | 1.4 | |||||||
Ending balance at Sep. 30, 2020 | 566.6 | 0.1 | 551.7 | 62.7 | (47.1) | (0.8) | |||
Beginning balance at Mar. 31, 2020 | 540.8 | 0.1 | 516.9 | 74.7 | (50.1) | (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net (loss)/income | (0.2) | (0.2) | |||||||
Stock compensation plans | 1.0 | 1.0 | |||||||
Net hedging losses, net of income tax | (0.2) | (0.2) | |||||||
Foreign currency translation adjustments | 0.2 | 0.2 | |||||||
2025 Notes - discount net of issuance fees and income tax | 29.5 | 29.5 | |||||||
Exercise of stock options | 0.1 | 0.1 | |||||||
Ending balance at Jun. 30, 2020 | $ 571.2 | 0.1 | 547.5 | 74.5 | (50.1) | (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
Net (loss)/income | $ (11.8) | ||||||||
Stock compensation plans | 1.2 | 1.2 | |||||||
Net hedging losses, net of income tax | 0.0 | ||||||||
Foreign currency translation adjustments | 3.0 | [1] | 3.0 | ||||||
2025 Notes - discount net of issuance fees and income tax | 2.7 | 2.7 | |||||||
Exercise of stock options | 0.3 | 0.3 | |||||||
Ending balance at Sep. 30, 2020 | $ 566.6 | $ 0.1 | $ 551.7 | $ 62.7 | $ (47.1) | $ (0.8) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||||||
|
Description of the Business |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Background and Nature of Operations Livent Corporation (“Livent”, “we”, “us”, "company" or “our”) manufactures lithium for use in a wide range of lithium products, which are used primarily in lithium-based batteries, specialty polymers and chemical synthesis applications. We serve a diverse group of markets. 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 and Distribution 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 (the "Separation Date"), 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 123 million shares of our common stock. On March 1, 2019, FMC completed the 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”). Effective upon completion of the Distribution, we became an independent company and FMC no longer owns any shares of Livent common stock.
|
Principal Accounting Policies and Related Financial Information |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019, the condensed consolidated results of operations for the three and nine months ended September 30, 2020 and 2019, and the condensed consolidated cash flows for the nine months ended September 30, 2020 and 2019. 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, 2019 (the "2019 Annual Report on Form 10-K"). The income tax amounts in the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2019 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 with various state, local and non-U.S. jurisdictions. From the Separation Date onwards, we have filed and will continue to file as an independent public company. Estimates and assumptions In preparing the financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Due to the current coronavirus ("COVID-19") pandemic, there has been uncertainty and disruption in the global economy and financial markets. The estimates used for, but not limited to, the collectability of trade receivables, fair value of long-lived assets, income taxes, inventory valuation and fair value of financial instruments could be impacted. We have assessed the impact and are not aware of any specific events or circumstances that required an update to our estimates and assumptions or materially affected the carrying value of our assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. 4.125% Convertible Senior Notes due 2025 (the “2025 Notes”) We account for our 2025 Notes under Accounting Standards Codification 470-20, Debt with Conversion and Other Options. See Note 3 and Note 8 for details. 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 2019 Annual Report on Form 10-K.
|
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
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 August 2020, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The ASU reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, more convertible debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be closer to the coupon interest rate. The ASU also aligns the consistency of diluted Earnings Per Share ("EPS") calculations for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share settlement. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. Under Accounting Standards Codification 470-20, Debt with Conversion and Other Options, we separately account for the liability and equity components of our 4.125% Convertible Senior Notes due 2025 (the “2025 Notes”), which may be settled entirely or partially in cash upon conversion, in a manner that reflects the issuer’s economic interest cost. The effect of ASC 470-20 on the accounting for the 2025 Notes is that the equity component is required to be included in the additional paid-in capital section of stockholders’ equity on our consolidated balance sheet, and the value of the equity component is treated as original issue discount for purposes of accounting for the debt component of the 2025 Notes. As a result, we currently are required to record a greater amount of non-cash interest expense in current periods presented as a result of the amortization of the discounted carrying value of the 2025 Notes to their face amount over the term of the 2025 Notes. Because we intend to settle in cash the principal outstanding under our 2025 Notes, we currently use the treasury stock method when calculating their potential dilutive effect, if any. See Note 8 and Note 10 for further details. ASU 2020-06 allows adoption through either a modified retrospective method or fully retrospective method of transition. In applying the modified retrospective transition method, the cumulative effect of the accounting change should be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. For the full retrospective method, the cumulative effect of the accounting change should be recognized as an adjustment to the opening balance of retained earnings in the first comparative period presented. We expect to early adopt ASU 2020-06 effective January 1, 2021. We are evaluating which transition method to use and the effect the ASU will have on our condensed consolidated financial statements. In April 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principle in Topic 740. The amendments also contain improvements and clarifications of certain guidance in Topic 740. The new amendments are effective for fiscal years beginning after December 15, 2020 (i.e. a January 1, 2021 effective date), with early adoption permitted. We believe the adoption will not have a material impact on our condensed consolidated financial statements. Recently adopted accounting guidance In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11"). The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 326. The Company adopted the provisions of ASU 2019-11 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In March 2019, FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification ("ASU 2019-01"). The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The Company adopted the provision of ASU 2019-01 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ("ASU 2019-04"). The amendments in this ASU 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, ("ASU 2019-05"). The amendments in this ASU 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 Company adopted the provisions of ASU 2019-04 and ASU 2019-05 on January 1, 2020; the adoption did not have a material impact 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 Company adopted the provisions of ASU 2018-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. 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 Company adopted the provisions of ASU 2016-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements.
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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:
(1)During the three months ended September 30, 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended September 30, 2020 for Japan, the U.S. and China totaled $23.5 million, $11.0 million and $19.0 million, respectively. During the three months ended September 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended September 30, 2019 for Japan, the U.S. and China totaled $39.6 million, $22.8 million and $13.4 million, respectively. During the nine months ended September 30, 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the nine months ended September 30, 2020 for Japan, the U.S. and China totaled $81.1 million, $40.0 million and $29.1 million, respectively. During the nine months ended September 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China and totaled $131.4 million, $56.6 million, and $46.3 million, respectively. For the three months ended September 30, 2020, two customers accounted for approximately 34% and 10% of total revenue and our 10 largest customers accounted in aggregate for approximately 68% of revenue. For the three months ended September 30, 2019, one customer accounted for approximately 26% of total revenue and our 10 largest customers accounted in aggregate for approximately 63% of our revenue. For the nine months ended September 30, 2020, one customer accounted for approximately 35% of total revenue and our 10 largest customers accounted in aggregate for approximately 64% of revenue. For the nine months ended September 30, 2019, two customers accounted for approximately 30% and 10% of total revenue, respectively and our 10 largest customers accounted in aggregate for approximately 61% 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 products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when (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 September 30, 2020 and December 31, 2019, there were no contract liabilities from contract 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 receivables 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 $14 million for the remainder of 2020 and $58 million in 2021. 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.
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Inventories, Net |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net Inventories consisted of the following:
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Restructuring and Other Charges |
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Restructuring and Other Charges | Restructuring and Other Charges The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations:
___________________ (1) Includes severance costs for management changes at certain operating and administrative facilities and exit costs of $1.6 million for the closing of leased office space. (2) Represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. (3) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. (4) Three and nine months ended September 30, 2020 consists primarily of legal fees related to IPO securities litigation including a settlement accrual, net of insurance reimbursement, of $2.5 million in the third quarter. See Note 12 for more details. Roll forward of plant restructuring reserve 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. The following table shows a roll forward of restructuring reserve that will result in cash spending. These amounts are included in "Accrued and other current liabilities" on the condensed consolidated balance sheets.
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Income Taxes |
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Sep. 30, 2020 | |
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. Provision for income taxes for the three and nine months ended September 30, 2020 was a benefit of $3.5 million and $5.8 million resulting in an effective tax rate of 22.9% and 29.4%, respectively. Provision for income taxes for the three and nine months ended September 30, 2019 was a benefit of $4.2 million and a tax expense of $2.5 million resulting in an effective tax rate of (30.4)% and 4.7%, respectively. On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The CARES Act makes the following changes to the U.S. tax code that will affect our 2019 and 2020 taxes, including, but not limited to, (1) temporary modification of the adjusted taxable income limitation under Section 163(j) from 30% to 50% for tax years 2019 and 2020 only; (2) modification to the net operating loss rules surrounding the ability to now carryback five years net operating losses generated in 2018, 2019, and 2020; (3) temporary repeal of the net operating loss taxable income limitation of 80%; and (4) temporary enhancement of corporate charitable contribution limitation to 25% of taxable income for tax year 2020 only. The CARES Act did not have a material impact on the Company's condensed consolidated financial statements.
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Debt |
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Debt | Debt Long-term debt Long-term debt consists of the following:
______________________________ (1)As of September 30, 2020 and December 31, 2019, there were $11.0 million in letters of credit outstanding under our Revolving Credit Facility and $288.9 million and $234.4 million available funds as of September 30, 2020 and December 31, 2019, respectively. Fund availability is subject to the Company meeting its debt covenants. (2)Includes transaction costs. (3) As of September 30, 2020 and December 31, 2019, the Company had no debt maturing within one year. 4.125% Convertible Senior Notes due 2025 On June 25, 2020, the Company issued $225 million in aggregate principal amount of 4.125% Convertible Senior Notes due in July 2025 (the "2025 Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. We also granted the initial purchasers of the 2025 Notes a 13-day option to purchase up to an additional $33.75 million in aggregate principal amount (the "Over-Allotment Option). On July 7, 2020 we closed on the Over-Allotment Option and issued an additional $20.75 million in aggregate principal amount of 2025 Notes. Total net cash proceeds received including Over-Allotment Option were $238.2 million net of $7.6 million of third-party transaction costs, including initial purchasers' discounts and commissions. The Company used or will use the net proceeds received to finance or refinance eligible green projects designed to align with the provisions of the International Capital Market Association Green Bond Principles 2018, including repaying amounts outstanding under its Revolving Credit Facility. Each $1,000 of principal of the 2025 Notes is initially convertible into 114.4885 shares of our common stock, which is equivalent to an initial conversion price of $8.73 per share, subject to adjustment upon the occurrence of specified events. We may not redeem the 2025 Notes prior to July 20, 2023. We may redeem for cash all or any portion of the 2025 Notes, at our option, on or after July 20, 2023 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest. Holders of the 2025 Notes may convert their notes at any time, at their option, on or after January 15, 2025. Further, holders of the 2025 Notes may convert their notes at any time, at their option, prior to January 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2020 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each trading day; (2) during the business day period after any consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of such period is less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day, (3) if we call any or all of the 2020 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date or (4) if specified corporate events occur. Upon conversion, the 2025 Notes will be settled in cash, shares of our common stock or a combination thereof, at our election. If a fundamental change occurs prior to the maturity date, holders of the 2025 Notes may require us to repurchase all or a portion of their 2025 Notes for cash at a repurchase price equal to 100% of the principal amount plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date or if we deliver a notice of redemption, we will increase the conversion rate for a holder who elects to convert its 2025 Notes in connection with such an event or notice of redemption in certain circumstances. As of September 30, 2020, none of the conditions permitting the holders of the 2025 Notes to early convert had been met. Therefore, the 2025 Notes are classified as long-term. In accordance with U.S. GAAP relating to embedded conversion features, we initially valued and bifurcated the conversion feature associated with the 2025 Notes. We recorded a debt discount with a corresponding increase to additional paid-in capital of $42.6 million for the conversion feature, $3.6 million of which was recorded in the third quarter of 2020 relating to the Over-Allotment Option. The resulting debt discount is being amortized to interest expense at an effective interest rate of 8.35% over the five-year term of the 2025 Notes. The Company recorded $2.0 million and $2.1 million of interest expense related to the amortization of the discount and transaction costs for the three and nine months ended September 30, 2020, zero of which and $0.1 million of which was capitalized for the three and nine months ended September 30, 2020, respectively. The Company recorded $2.5 million and $2.7 million of accrued interest expense related to the principal amount for the three and nine months ended September 30, 2020. Transaction costs of $1.4 million were allocated to the embedded conversion feature as a reduction of additional paid-in capital, $0.2 million of which was recorded in the third quarter of 2020 related to the Over-Allotment Option. We recognized a deferred tax liability of $9.1 million as a reduction to additional paid-in capital as of September 30, 2020 related to the book and tax basis differences of the debt discount and transaction costs. The following table summarizes the final amounts recorded upon closing for the original issuance and Over-Allotment Option related to debt discount and liability and equity allocations of the transaction costs.
___________________ (1) Amortization of transaction costs was $0.3 million for the three and nine months ended September 30, 2020. 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 "Guarantors"), the lenders party thereto (the “Lenders”), Citibank, N.A., as administrative agent (the "Agent"), and certain other financial institutions party thereto, as joint lead arrangers (the “Original Credit Agreement”, and as amended by the First Amendment and Second Amendment (as defined below), 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. On May 6, 2020, we entered into the First Amendment to the Credit Agreement (the "First Amendment") with FMC Lithium USA Corp., the Guarantors, the Lenders and the Agent. Among other things, the First Amendment amended and restated the Original Credit Agreement to (i) increase our maximum total net leverage ratio for the fiscal quarters ending June 30, 2020, September 30, 2020 and December 31, 2020 from 3.5 to 6.0, (ii) put a cap of $325 million on our overall borrowings under the Revolving Credit Facility until March 31, 2021, (iii) amend our negative covenant on indebtedness to permit unsecured indebtedness (including convertible debt) up to $350 million, (iv) amend our negative covenants on investments to permit additional investments in Minera del Altiplano S.A., our Argentine subsidiary, (v) restrict our ability to declare or pay cash dividends until March 31, 2021 and (vi) increase the applicable margin on our borrowings by 25 basis points, in each case as described in the First Amendment. We recorded $0.9 million of deferred financing costs in the condensed consolidated balance sheets for First Amendment consent, arrangement and legal fees and a $0.1 million loss on debt extinguishment in the condensed consolidated statements of operations for the write off of existing deferred financing costs to recognize the temporary reduction in overall borrowing capacity related to the First Amendment. The carrying value of our deferred financing costs was $2.6 million as of September 30, 2020. The foregoing description of the First Amendment does not purport to be complete and is qualified in its entirety by reference to the First Amendment, including the amended and restated Credit Agreement attached thereto, which is filed as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the three months ended March 31, 2020. On August 3, 2020, we entered into the Second Amendment to the Credit Agreement (the "Second Amendment") with FMC Lithium USA Corp., the Guarantors, the Lenders and the Agent. The Second Amendment amended the Credit Agreement, as previously amended by the First Amendment, to replace our maximum total net leverage ratio of 6.0 for the fiscal quarters ending September 30, 2020 and December 31, 2020 with a maximum first lien leverage ratio (as defined in the Credit Agreement) of 3.5. The maximum first lien leverage ratio of 3.5 will continue to apply for the fiscal quarter ended March 31, 2021 and for each fiscal quarter thereafter. The first lien leverage ratio as of any date is the ratio of financial covenant debt as of such date secured by a lien on any asset or property of Livent or its restricted subsidiaries on a pari passu or senior basis with the loans and commitments under the Credit Agreement, minus unrestricted cash and cash equivalents on our balance sheet as of such date, to Earnings Before Interest, Taxes, Depreciation and Amortization, as defined in the Credit Agreement, for the last four fiscal quarters ending on or before such date. The foregoing description of the Second Amendment does not purport to be complete and is qualified in its entirety by reference to the Second Amendment and the Credit Agreement, which Second Amendment is filed as Exhibit 10.2 to this Quarterly Report on Form 10-Q. See Note 10, Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information about the credit agreement. Covenants The Credit Agreement contains certain affirmative and negative covenants that are binding on the Borrowers and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our maximum allowable first lien leverage ratio is 3.5 as of September 30, 2020. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants at September 30, 2020.
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Equity |
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Equity | Equity As of September 30, 2020 and December 31, 2019, we had 2 billion shares of common stock authorized. The following is a summary of Livent's common stock issued and outstanding:
(1) See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K 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 11 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) Provision for income taxes related to the reclassification was less than $0.1 million. Dividends For the three and nine months ended September 30, 2020 and 2019, we paid no dividends. We do not expect to pay any dividends in the foreseeable future.
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(Loss)/Earnings Per Share |
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(Loss)/Earnings Per Share | (Loss)/Earnings Per Share (Loss)/earnings per common share ("EPS") is computed by dividing net (loss)/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 ("RSU") granted in connection with the Livent Plan and FMC Plan. See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K for more information. Diluted (loss)/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. Because we intend to settle in cash the principal outstanding under our 2025 Notes, we use the treasury stock method when calculating their potential dilutive effect, if any. (Loss)/earnings applicable to common stock and common stock shares used in the calculation of basic and diluted (loss)/earnings per share are as follows:
Anti-dilutive stock options For the three and nine months ended September 30, 2020, options to purchase 1,835,476 and 1,904,010 shares of our common stock at an average exercise price of $12.59 and $12.58 per share, respectively, were anti-dilutive and not included in the computation of diluted (loss)/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 nine months ended September 30, 2020. For the three and nine months ended September 30, 2019, options to purchase 1,547,070 and 1,006,532 shares of our common stock at an average exercise price of $12.97 and $15.21 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 nine months ended September 30, 2019.
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Financial Instruments, Risk Management and Fair Value Measurements |
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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 investments and 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 and the carrying amount of debt was $270.8 million and $224.1 million, respectively, as of September 30, 2020. The estimated fair value and carrying amount of debt was $154.6 million as of December 31, 2019. Use of Derivative Financial Instruments to Manage Risk We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates. We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively. Foreign Currency Exchange Risk Management We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets. Concentration of Credit Risk Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote. Accounting for Derivative Instruments and Hedging Activities Cash Flow Hedges We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in Accumulated Other Comprehensive 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 September 30, 2020, we had open foreign currency forward contracts in AOCI in a net after-tax loss position of $0.2 million designated as cash flow hedges of underlying forecasted sales and purchases. At September 30, 2020 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $6.2 million. Approximately $0.2 million of net after-tax loss, representing open foreign currency exchange contracts, will be realized in earnings during the three months ending December 31, 2020 if spot rates in the future are consistent with market rates as of September 30, 2020. 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 $42.7 million at September 30, 2020. Fair Value of Derivative Instruments The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company had no open derivative cash flow hedge contracts in the condensed consolidated balance sheets as of December 31, 2019.
______________________ (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. For the three months ended March 31, 2020, we did not have any open derivative cash flow hedge contacts. Derivatives in Cash Flow Hedging Relationships
____________________ (1)Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations. Derivatives Not Designated as Cash Flow Hedging Instruments
____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item. 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.
____________________ (1) Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.3 million and $0.1 million was recorded for the three and nine months ended September 30, 2020, respectively, related to the Livent common stock. The mark-to-market gains and losses were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. (2) Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Contingencies We are a party to various legal proceedings, including those noted in this section. Livent records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred. In addition to the legal proceedings noted below, we have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity. 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, in connection with the Company’s October 2018 IPO. On August 20, 2019, the actions then pending in federal court were consolidated under the caption, Nikolov v. Livent Corp., et al., No. 19-cv-02218. In an order entered on September 23, 2019, the actions then pending in state court were consolidated under the caption, In re Livent Corporation Securities Litigation, No. 2019-0501229. The operative complaints in both the state and federal actions assert claims against the Company and certain of its current and former executives and directors in connection with the Company’s October 2018 IPO. The actions also name as defendants the underwriters in the IPO and FMC Corporation, whom the Company is generally obligated to indemnify. The complaints allege generally that the offering documents for the IPO failed to adequately disclose certain information related to the Company’s business and prospects, in purported violation of Sections 11, 12(a)(2), and/or 15 of the Securities Act. The complaints 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 October 11, 2019, defendants moved to dismiss the state action in its entirety, and on November 18, 2019, defendants moved to dismiss the federal action in its entirety. On June 29, 2020, the state court denied the motion to dismiss the state action, while on July 2, 2020, the federal court granted the motion to dismiss the federal action in its entirety. On July 7, 2020, in light of the federal court’s decision, defendants filed a motion for reconsideration of the state court’s denial of the motion to dismiss the state action. On July 29, 2020, defendants filed a motion seeking permission to appeal the state court’s order denying defendant’s motion to dismiss. On July 31, 2020, plaintiffs in the federal action filed a notice of appeal. On October 27, 2020, defendants entered into a stipulation of settlement with the state court plaintiffs to pay $7.4 million to resolve all claims related to the IPO. On October 29, 2020, the state court plaintiffs filed a motion seeking preliminary approval of the settlement. If approved, the settlement would resolve all pending litigation relating to the IPO, including the claims in both the state and federal actions. All deadlines in the state and federal actions are currently stayed in light of the settlement. As of September 30, 2020, the Company has accrued a net loss contingency of $2.5 million, consisting of a $7.4 million settlement accrued liability offset by a $4.9 million insurance reimbursement receivable, in connection with the pending settlement. 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 was to provide lithium carbonate to us. Due to significant delays, Nemaska 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 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 was 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 had the right to terminate the Agreement. After receiving Nemaska’s termination notice, we resumed our previously suspended arbitration to pursue our claims. On December 22, 2019, Nemaska, Nemaska Lithium Inc. and certain affiliates filed for creditor protection in Canada under the Companies’ Creditors Arrangement Act (the "CCAA") in the Superior Court of Québec (the “CCAA Court”). By order of the CCAA Court, the arbitration was stayed until further order of the CCAA Court. Nemaska did not assert any counterclaims against us in the context of the arbitration, nor any claim before the CCAA Court or otherwise, and we are not aware of any basis for Nemaska to assert any claims against us. On May 29, 2020, we filed an application (the “Application”) with the CCAA Court to obtain remittance of US $20 million held in escrow by a third party for the benefit of Livent (the “Escrow Funds”), composed of: (i) US $10 million corresponding to the reimbursement of a payment made by Livent under the Agreement and (ii) US $10 million corresponding to a termination penalty under the Agreement. On the same day, we also filed an appeal of a Notice of Disallowance, filed by the Monitor in the CCAA Court, which had partially disallowed our previously filed proofs of claim against Nemaska and Nemaska Lithium Inc. On June 22, 2020, we acknowledged the termination of the Agreement, withdrew our arbitration claims with prejudice, and requested the remittance of the Escrow Funds. Nemaska currently contests the Application. There can be no assurance that we will prevail on our Application. On August 24, 2020, Nemaska Lithium Inc. announced that it had accepted a sale proposal structured as a credit bid under the CCAA from a group made up of Orion Mine Finance, Investissement Quebec and The Pallinghurst Group (The Pallinghurst Group acting through a new entity named Quebec Lithium Partners; the "Nemaska Transaction"). The Nemaska Transaction is conditioned upon the satisfaction of customary closing conditions, including approval under the Competition Act (Canada) and CCAA Court Approval. If the Nemaska transaction is consummated on the terms accepted by Nemaska Lithium Inc. as announced on August 24, 2020, Livent has agreed to settle its claims against Nemaska Lithium Inc. and withdraw its Application before the CCAA Court in exchange for payment of an agreed upon portion of the Escrow Funds being delivered to the new ownership group under the Nemaska Transaction (the "Settlement Funds"). There can be no assurance that the Nemaska Transaction will be completed on the terms initially accepted by Nemaska Lithium Inc., or that Livent will receive payment of any portion of the Settlement Funds. Argentine Customs Authority On July 31, 2020, we received notice from the Argentine Customs Authority that it was conducting an audit of Minera del Altiplano SA, our subsidiary in Argentina (“MdA”). The audit relates to the export of Lithium Carbonate from Argentina for the period January 10, 2015 through December 31, 2017. Although this relates to a period of time when MdA was a subsidiary of FMC, the Company agreed to bear any possible liability for this matter under the terms of the Tax Matters Agreement that it entered into with FMC at the Separation Date. At this point, a range of reasonably possible liabilities, if any, cannot be estimated by the Company. Leases All of our leases are operating leases as of September 30, 2020 and December 31, 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.
__________________________ (1) Short-term lease cost was less than $0.1 million for the three months ended September 30, 2020. As of September 30, 2020 and December 31, 2019, our operating leases had a weighted average remaining lease term of 11.5 years and 11.4 years, respectively. As of September 30, 2020 and December 31, 2019, our operating leases had 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.
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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:
____________________ (1) We have various subsidiaries that conduct business in Argentina. At September 30, 2020 and December 31, 2019, $40.4 million and $38.0 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. (2) Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. (3) September 30, 2020 includes a $4.9 million receivable for insurance reimbursement related to the IPO litigation settlement which was netted with the IPO litigation settlement accrual in "Restructuring and other" in the condensed consolidated statement of operations (See Note 6 and Note 12 for details). (4) We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. (5) See Note 12 for further discussion about Nemaska arrangement. (6) Represents an offsetting non-current deferred asset of $3.3 million relating to specific uncertain tax positions and other tax related items.
____________________ (1) Amounts primarily include accrued capital expenditures related to our expansion projects and a $7.4 million settlement accrual related to IPO litigation recorded in the third quarter of 2020. See Note 12 for details about IPO litigation settlement. (2) At September 30, 2020, we have recorded a liability for uncertain tax positions of $4.2 million and a $1.5 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC.
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Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Policies) |
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Accounting Policies [Abstract] | |
New Accounting Guidance and Regulatory Items and Recently Adopted Accounting Guidance | New accounting guidance and regulatory items In August 2020, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. The ASU reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, more convertible debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be closer to the coupon interest rate. The ASU also aligns the consistency of diluted Earnings Per Share ("EPS") calculations for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share settlement. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. Under Accounting Standards Codification 470-20, Debt with Conversion and Other Options, we separately account for the liability and equity components of our 4.125% Convertible Senior Notes due 2025 (the “2025 Notes”), which may be settled entirely or partially in cash upon conversion, in a manner that reflects the issuer’s economic interest cost. The effect of ASC 470-20 on the accounting for the 2025 Notes is that the equity component is required to be included in the additional paid-in capital section of stockholders’ equity on our consolidated balance sheet, and the value of the equity component is treated as original issue discount for purposes of accounting for the debt component of the 2025 Notes. As a result, we currently are required to record a greater amount of non-cash interest expense in current periods presented as a result of the amortization of the discounted carrying value of the 2025 Notes to their face amount over the term of the 2025 Notes. Because we intend to settle in cash the principal outstanding under our 2025 Notes, we currently use the treasury stock method when calculating their potential dilutive effect, if any. See Note 8 and Note 10 for further details. ASU 2020-06 allows adoption through either a modified retrospective method or fully retrospective method of transition. In applying the modified retrospective transition method, the cumulative effect of the accounting change should be recognized as an adjustment to the opening balance of retained earnings at the date of adoption. For the full retrospective method, the cumulative effect of the accounting change should be recognized as an adjustment to the opening balance of retained earnings in the first comparative period presented. We expect to early adopt ASU 2020-06 effective January 1, 2021. We are evaluating which transition method to use and the effect the ASU will have on our condensed consolidated financial statements. In April 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are evaluating the effect the guidance will have on our condensed consolidated financial statements. In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principle in Topic 740. The amendments also contain improvements and clarifications of certain guidance in Topic 740. The new amendments are effective for fiscal years beginning after December 15, 2020 (i.e. a January 1, 2021 effective date), with early adoption permitted. We believe the adoption will not have a material impact on our condensed consolidated financial statements. Recently adopted accounting guidance In November 2019, FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses ("ASU 2019-11"). The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 326. The Company adopted the provisions of ASU 2019-11 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In March 2019, FASB issued ASU No. 2019-01, Codification Improvements to Leases (Topic 842): Amendments to the FASB Accounting Standards Codification ("ASU 2019-01"). The amendments in this ASU contain improvements and clarifications of certain guidance in Topic 842. The Company adopted the provision of ASU 2019-01 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ("ASU 2019-04"). The amendments in this ASU 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, ("ASU 2019-05"). The amendments in this ASU 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 Company adopted the provisions of ASU 2019-04 and ASU 2019-05 on January 1, 2020; the adoption did not have a material impact 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 Company adopted the provisions of ASU 2018-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements. 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 Company adopted the provisions of ASU 2016-13 on January 1, 2020; the adoption did not have a material impact on our condensed consolidated financial statements.
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Revenue Recognition | Our lithium products are developed and sold to global and regional customers in the EV, electronics, agrochemicals, pharmaceuticals, polymer and specialty alloy metals market among others. Lithium hydroxide products are used in advanced batteries for all-electric vehicles as well as other products that require portable energy storage such as power tools and military devices. Lithium hydroxide is also sold into grease applications for use in automobiles, aircraft, railcars, agricultural and other types of equipment. Butyllithium products are primarily used as polymer initiators, and in the synthesis of agrochemicals and pharmaceuticals. High purity lithium metal and other specialty compounds include lithium phosphate, pharmaceutical-grade lithium carbonate, high purity lithium chloride and specialty organics. Additionally, we sell whatever lithium carbonate and lithium chloride we do not use internally to our customers for various applications. Sale of Goods Revenue from product sales is recognized when (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 receivables 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 $14 million for the remainder of 2020 and $58 million in 2021. 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.
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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 geographical region:
(1)During the three months ended September 30, 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended September 30, 2020 for Japan, the U.S. and China totaled $23.5 million, $11.0 million and $19.0 million, respectively. During the three months ended September 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the three months ended September 30, 2019 for Japan, the U.S. and China totaled $39.6 million, $22.8 million and $13.4 million, respectively. During the nine months ended September 30, 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China. Sales for the nine months ended September 30, 2020 for Japan, the U.S. and China totaled $81.1 million, $40.0 million and $29.1 million, respectively. During the nine months ended September 30, 2019, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S. and China and totaled $131.4 million, $56.6 million, and $46.3 million, respectively. The following table provides information about disaggregated revenue by major product category:
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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 September 30, 2020 and December 31, 2019, there were no contract liabilities from contract 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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Restructuring and Other Charges (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Charges and Asset Disposals | The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations:
___________________ (1) Includes severance costs for management changes at certain operating and administrative facilities and exit costs of $1.6 million for the closing of leased office space. (2) Represents severance costs and stock-based compensation expense for accelerated vesting related to corporate management changes. (3) Costs associated with environmental remediation with respect to certain discontinued products. There is one environmental remediation site in Bessemer City, North Carolina. (4) Three and nine months ended September 30, 2020 consists primarily of legal fees related to IPO securities litigation including a settlement accrual, net of insurance reimbursement, of $2.5 million in the third quarter. See Note 12 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 are included in "Accrued and other current liabilities" on the condensed consolidated balance sheets.
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consists of the following:
______________________________ (1)As of September 30, 2020 and December 31, 2019, there were $11.0 million in letters of credit outstanding under our Revolving Credit Facility and $288.9 million and $234.4 million available funds as of September 30, 2020 and December 31, 2019, respectively. Fund availability is subject to the Company meeting its debt covenants. (2)Includes transaction costs. (3) As of September 30, 2020 and December 31, 2019, the Company had no debt maturing within one year.
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Convertible Debt | The following table summarizes the final amounts recorded upon closing for the original issuance and Over-Allotment Option related to debt discount and liability and equity allocations of the transaction costs.
___________________ (1) Amortization of transaction costs was $0.3 million for the three and nine months ended September 30, 2020.
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Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following is a summary of Livent's common stock issued and outstanding:
(1) See Note 12 to our consolidated and combined financial statements in Part II, Item 8 of our 2019 Annual Report on Form 10-K 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 11 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) Provision for income taxes related to the reclassification was less than $0.1 million.
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(Loss)/Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | (Loss)/earnings applicable to common stock and common stock shares used in the calculation of basic and diluted (loss)/earnings per share are as follows:
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Financial Instruments, Risk Management and Fair Value Measurements (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Liabilities at Fair Value | The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments. The Company had no open derivative cash flow hedge contracts in the condensed consolidated balance sheets as of December 31, 2019.
______________________ (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. For the three months ended March 31, 2020, we did not have any open derivative cash flow hedge contacts. Derivatives in Cash Flow Hedging Relationships
____________________ (1)Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations.
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Derivatives Not Designated as Hedging Instruments |
____________________ (1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.
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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.
____________________ (1) Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.3 million and $0.1 million was recorded for the three and nine months ended September 30, 2020, respectively, related to the Livent common stock. The mark-to-market gains and losses were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets. (2) Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets.
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Terms | Quantitative disclosures about our leases are summarized in the table below.
__________________________ (1) Short-term lease cost was less than $0.1 million for the three months ended September 30, 2020.
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Schedule of Maturity of Operating Lease Liabilities | The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years.
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Supplemental Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
____________________ (1) We have various subsidiaries that conduct business in Argentina. At September 30, 2020 and December 31, 2019, $40.4 million and $38.0 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors. (2) Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage. (3) September 30, 2020 includes a $4.9 million receivable for insurance reimbursement related to the IPO litigation settlement which was netted with the IPO litigation settlement accrual in "Restructuring and other" in the condensed consolidated statement of operations (See Note 6 and Note 12 for details). (4) We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract. (5) See Note 12 for further discussion about Nemaska arrangement. (6) Represents an offsetting non-current deferred asset of $3.3 million relating to specific uncertain tax positions and other tax related items.
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Schedule of Accrued and Other Liabilities |
____________________ (1) Amounts primarily include accrued capital expenditures related to our expansion projects and a $7.4 million settlement accrual related to IPO litigation recorded in the third quarter of 2020. See Note 12 for details about IPO litigation settlement. (2) At September 30, 2020, we have recorded a liability for uncertain tax positions of $4.2 million and a $1.5 million indemnification liability to FMC for assets where the offsetting uncertain tax position is with FMC.
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Description of the Business (Details) - shares shares in Millions |
Mar. 01, 2019 |
Oct. 01, 2018 |
---|---|---|
IPO | ||
Class of Stock [Line Items] | ||
Sale of stock, number of shares issued (in shares) | 123 | 123 |
Principal Accounting Policies and Related Financial Information (Details) - Convertible Debt |
Sep. 30, 2020 |
---|---|
Related Party Transaction [Line Items] | |
Debt interest rate | 4.125% |
Convertible Senior Notes Due 2025 | |
Related Party Transaction [Line Items] | |
Debt interest rate | 4.125% |
Recently Issued and Adopted Accounting Pronouncements and Regulatory Items (Details) - Convertible Debt |
Sep. 30, 2020 |
---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt interest rate | 4.125% |
Convertible Senior Notes Due 2025 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt interest rate | 4.125% |
Revenue Recognition - Disaggregation of Revenue by Major Geographical Region (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 72.6 | $ 97.7 | $ 206.0 | $ 310.0 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11.0 | 22.7 | 40.5 | 57.1 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0.0 | 0.0 | 0.1 | 1.0 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 9.8 | 12.8 | 32.3 | 45.7 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 51.8 | 62.2 | 133.1 | 206.2 |
JAPAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 23.5 | 39.6 | 81.1 | 131.4 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11.0 | 22.8 | 40.0 | 56.6 |
CHINA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 19.0 | $ 13.4 | $ 29.1 | $ 46.3 |
Revenue Recognition - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
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 | 34.00% | 26.00% | 35.00% | 30.00% | |
Customer Two | Sales Revenue, Net | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% | |||
Ten Largest Customers | Sales Revenue, Net | |||||
Disaggregation of Revenue [Line Items] | |||||
Concentration risk percentage | 68.00% | 63.00% | 64.00% | 61.00% |
Revenue Recognition - Disaggregation of Revenue By Major Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 72.6 | $ 97.7 | $ 206.0 | $ 310.0 |
Lithium Hydroxide | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 43.9 | 52.9 | 115.4 | 178.2 |
Butyllithium | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 19.6 | 25.6 | 62.4 | 77.2 |
High Purity Lithium Metal and Other Specialty Compounds | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 7.1 | 11.7 | 23.0 | 38.8 |
Lithium Carbonate and Lithium Chloride | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 2.0 | $ 7.5 | $ 5.2 | $ 15.8 |
Revenue Recognition - Assets and Liabilities (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net of allowance of $0.3 in 2020 and $0.3 in 2019 | $ 72.7 | $ 90.0 |
Increase (decrease) in receivables | $ (17.3) |
Revenue Recognition - Performance Obligations (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 14 |
Expected timing of satisfaction of performance obligations | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 58 |
Expected timing of satisfaction of performance obligations | 1 year |
Inventories, Net (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 38.4 | $ 45.3 |
Semi-finished goods | 64.9 | 48.8 |
Raw materials, supplies and other | 10.8 | 19.3 |
Inventory, net | $ 114.1 | $ 113.4 |
Restructuring and Other Charges (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
site
|
Sep. 30, 2019
USD ($)
|
|
Restructuring charges | ||||
Severance-related and exit costs | $ 4.3 | $ 2.6 | ||
Other charges | ||||
Corporate severance-related costs | $ 0.0 | $ 0.0 | 0.0 | 3.5 |
Environmental remediation | 0.1 | 0.1 | 0.4 | 0.3 |
Other | 3.4 | 0.8 | 3.9 | 1.0 |
Total Restructuring and other charges | 4.4 | 0.9 | 10.1 | 4.8 |
Exit costs | $ 1.6 | |||
Number of environmental remediation sites | site | 1 | |||
Nikolov V. Livent Corp | Pending Litigation | ||||
Other charges | ||||
Net loss contingency | 2.5 | $ 2.5 | ||
Facility Closing | ||||
Restructuring charges | ||||
Severance-related and exit costs | $ 0.9 | $ 0.0 | $ 5.8 | $ 0.0 |
Restructuring and Other Charges - Restructuring Reserve Activity (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 3.3 | $ 3.6 |
Cash payments | (0.1) | (0.3) |
Restructuring reserve, ending balance | $ 3.2 | $ 3.3 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit)/expense | $ (3.5) | $ (4.2) | $ (5.8) | $ 2.5 |
Effective tax rate | 22.90% | (30.40%) | 29.40% | 4.70% |
Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Discount - 2025 Notes | $ (46.7) | $ 0.0 |
Total long-term debt | $ 224.1 | 154.6 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Debt interest rate | 4.125% | |
Long-term debt, gross | $ 245.7 | 0.0 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding amount | 11.0 | 11.0 |
Available funds | 288.9 | 234.4 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 25.1 | $ 154.6 |
LIBOR borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 2.40% | |
Base rate borrowings | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest Rate Percentage | 4.50% |
Debt - Narrative (Details) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 03, 2020 |
Jul. 07, 2020
USD ($)
|
Jun. 25, 2020
USD ($)
site
$ / shares
shares
|
May 06, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Aug. 06, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Sep. 28, 2018
USD ($)
|
|
Debt Instrument [Line Items] | |||||||||||
Over-allotment option term | 13 days | ||||||||||
Cash proceeds from debt | $ 245,700,000 | $ 0 | |||||||||
Debt discount | $ 46,700,000 | 46,700,000 | $ 0 | ||||||||
Interest expense capitalized | 8,100,000 | ||||||||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 100,000 | $ 0 | |||||||
Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt interest rate | 4.125% | 4.125% | |||||||||
Citibank, N.A. | Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility borrowing capacity | $ 50,000,000 | ||||||||||
Citibank, N.A. | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility borrowing capacity | 400,000,000 | ||||||||||
Credit facility optional increase limit | $ 600,000,000 | ||||||||||
Convertible Senior Notes Due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | $ 6,700,000 | $ 6,700,000 | |||||||||
Interest expense on debt, excluding amortization of debt discount | $ 39,000,000.0 | ||||||||||
Convertible Senior Notes Due 2025 | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt interest rate | 4.125% | 4.125% | |||||||||
Aggregate principal amount of debt | $ 225,000,000 | ||||||||||
Deferred financing costs | $ 1,400,000 | ||||||||||
Converted instrument, shares issued (in shares) | shares | 0.1144885 | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 8.73 | ||||||||||
Threshold percentage of stock price trigger | 130.00% | ||||||||||
Threshold trading days | site | 20 | ||||||||||
Threshold consecutive trading days | site | 30 | ||||||||||
Redemption price, percentage | 100.00% | ||||||||||
Number of consecutive business days following consecutive trading day period | 5 days | ||||||||||
Period of consecutive trading days | 5 days | ||||||||||
Trading price as a percentage of closing price of common stock | 98.00% | ||||||||||
Increase in additional paid-in capital for debt discount | $ 42,600,000 | ||||||||||
Debt discount | $ 42,600,000 | ||||||||||
Effective interest rate | 8.35% | ||||||||||
Term of debt | 5 years | ||||||||||
Amortization of debt discount and transaction costs | $ 2,000,000.0 | $ 2,100,000 | |||||||||
Interest expense capitalized | 0 | 100,000 | |||||||||
Interest expense on debt, excluding amortization of debt discount | 2,500,000 | 2,700,000 | |||||||||
Reduction of additional paid-in capital for debt transaction costs | $ 1,400,000 | ||||||||||
Reduction to additional paid-in capital for deferred tax liability | 9,100,000 | ||||||||||
Over-Allotment Option | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | 900,000 | 900,000 | |||||||||
Debt discount | 3,600,000 | 3,600,000 | |||||||||
Over-Allotment Option | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Aggregate principal amount of debt | $ 20,750,000 | $ 33,750,000 | 20,750,000 | 20,750,000 | |||||||
Cash proceeds from debt | 238,200,000 | ||||||||||
Deferred financing costs | $ 7,600,000 | $ 200,000 | |||||||||
Debt discount | $ 3,600,000 | ||||||||||
First Amendment | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Deferred financing costs | $ 900,000 | $ 2,600,000 | $ 2,600,000 | ||||||||
Maximum unsecured indebtedness | 350,000,000 | ||||||||||
Loss on debt extinguishment | $ 100,000 | ||||||||||
Increase on applicable margin | 25.00% | ||||||||||
First Amendment | Citibank, N.A. | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility borrowing capacity | $ 325,000,000 | ||||||||||
Maximum net leverage ratio | 3.5 | 6.0 | 3.5 | ||||||||
Minimum allowable interest coverage ratio | 3.5 | ||||||||||
Fiscal Quarter Ending September 30, 2020 | Second Amendment | Citibank, N.A. | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum net leverage ratio | 6.0 | ||||||||||
Fiscal Quarter Ending December 31, 2020 | Second Amendment | Citibank, N.A. | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum net leverage ratio | 6.0 |
Debt - Debt Discount, Liability, and Equity Allocations of Transaction Costs (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Aug. 06, 2020 |
Jul. 07, 2020 |
Jun. 25, 2020 |
Dec. 31, 2019 |
|
Debt Instrument [Line Items] | |||||||
Debt discount | $ 46,700,000 | $ 46,700,000 | $ 0 | ||||
Transaction costs | |||||||
Amortization of transaction costs | 2,000,000.0 | $ 0 | |||||
Convertible Senior Notes Due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount, excluding amortization | 39,000,000.0 | ||||||
Transaction costs | |||||||
Liability | 5,500,000 | 5,500,000 | |||||
Equity | 1,200,000 | 1,200,000 | |||||
Total transaction costs | 6,700,000 | 6,700,000 | |||||
Convertible Senior Notes Due 2025 | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount, excluding amortization | 2,500,000 | 2,700,000 | |||||
Debt discount | $ 42,600,000 | ||||||
Transaction costs | |||||||
Total transaction costs | 1,400,000 | ||||||
Aggregate principal amount of debt | 225,000,000 | ||||||
Over-Allotment Option | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount | 3,600,000 | 3,600,000 | |||||
Transaction costs | |||||||
Liability | 700,000 | 700,000 | |||||
Equity | 200,000 | 200,000 | |||||
Total transaction costs | 900,000 | 900,000 | |||||
Over-Allotment Option | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount | $ 3,600,000 | ||||||
Transaction costs | |||||||
Total transaction costs | $ 200,000 | $ 7,600,000 | |||||
Amortization of transaction costs | 300,000 | 300,000 | |||||
Aggregate principal amount of debt | 20,750,000 | 20,750,000 | $ 20,750,000 | 33,750,000 | |||
2025 Notes | Convertible Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt discount | $ 42,600,000 | ||||||
Transaction costs | |||||||
Liability | 6,200,000 | 6,200,000 | |||||
Equity | 1,400,000 | 1,400,000 | |||||
Total transaction costs | $ 7,600,000 | $ 7,600,000 |
Equity - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | ||||||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000 | ||
Dividends paid | $ 0 | $ 0 | $ 0 | $ 0 |
Equity - Summary of Capital Stock Activity (Details) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Capital Stock Activity [Roll Forward] | ||
Beginning balance (in shares) | 146,085,696 | |
Ending balance (in shares) | 146,410,139 | |
Treasury Stock [Roll Forward] | ||
Beginning balance (in shares) | (104,012) | |
Purchases of Treasury Stock - deferred compensation plan (in shares) | (3,610) | |
Ending balance (in shares) | (107,622) | |
Common stock outstanding | ||
Outstanding (in shares) | 146,302,517 | 145,981,684 |
FMC Plan | Restricted Stock Units (RSUs) | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 131,648 | |
Livent Plan | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 69,284 | |
Livent Plan | Restricted Stock Units (RSUs) | ||
Capital Stock Activity [Roll Forward] | ||
Stock issued during period (in shares) | 123,511 |
Equity - Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 571.2 | $ 540.8 | $ 525.3 | $ 508.6 | $ 489.6 | $ 544.0 | $ 489.6 |
Other comprehensive loss before reclassifications | 1.2 | 0.7 | |||||
Amounts reclassified from accumulated other comprehensive loss | (1.1) | ||||||
Ending balance | 566.6 | 571.2 | 543.6 | 525.3 | 508.6 | 566.6 | 543.6 |
Foreign currency adjustments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (48.0) | (48.3) | (48.0) | ||||
Other comprehensive loss before reclassifications | 1.4 | (1.9) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0.0 | ||||||
Ending balance | (46.9) | (49.9) | (46.9) | (49.9) | |||
Derivative instruments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (0.2) | 0.0 | (0.8) | (1.3) | (1.2) | 0.0 | (1.2) |
Other comprehensive loss before reclassifications | 0.2 | (0.2) | 1.5 | 0.8 | 0.3 | (0.2) | 2.6 |
Amounts reclassified from accumulated other comprehensive loss | (0.2) | (0.4) | (0.3) | (0.4) | (1.1) | ||
Ending balance | (0.2) | (0.2) | 0.3 | (0.8) | (1.3) | (0.2) | 0.3 |
Accumulated Other Comprehensive Loss | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (50.1) | (50.1) | (48.8) | (48.3) | (49.2) | (48.3) | (49.2) |
Ending balance | $ (47.1) | $ (50.1) | $ (49.6) | $ (48.8) | $ (48.3) | $ (47.1) | $ (49.6) |
Equity - Reclassification Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Costs of sales and services | $ 69.8 | $ 69.4 | $ 178.4 | $ 215.2 | ||||
Total before tax | 15.3 | (13.8) | 19.7 | (52.9) | ||||
Net (loss)/income | 11.8 | $ 0.2 | $ 1.9 | (18.0) | $ (15.5) | $ (16.9) | 13.9 | (50.4) |
Income tax (benefit)/expense | (3.5) | (4.2) | (5.8) | 2.5 | ||||
Amounts Reclassified from Acccumulated Other Comprehensive Loss | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Total before tax | (0.2) | (0.4) | (0.2) | (1.1) | ||||
Net (loss)/income | (0.2) | (0.4) | (0.2) | (1.1) | ||||
Income tax (benefit)/expense | 0.1 | 0.1 | ||||||
Foreign currency contracts | Derivative instruments | Amounts Reclassified from Acccumulated Other Comprehensive Loss | ||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Costs of sales and services | $ (0.2) | $ (0.4) | $ (0.2) | $ (1.1) |
(Loss)/Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Numerator: | ||||||||
Net (loss)/income | $ (11.8) | $ (0.2) | $ (1.9) | $ 18.0 | $ 15.5 | $ 16.9 | $ (13.9) | $ 50.4 |
Denominator: | ||||||||
Weighted average common shares outstanding - basic (in shares) | 146.3 | 146.0 | 146.2 | 146.0 | ||||
Weighted average common shares outstanding – diluted (in shares) | 146.3 | 146.5 | 146.2 | 146.4 | ||||
Basic earnings per common share: | ||||||||
Net (loss)/income per weighted average share - basic (in dollars per share) | $ (0.08) | $ 0.12 | $ (0.10) | $ 0.35 | ||||
Diluted earnings per common share: | ||||||||
Net (loss)/income per weighted average share - diluted (in dollars per share) | $ (0.08) | $ 0.12 | $ (0.10) | $ 0.34 | ||||
FMC Plan | ||||||||
Denominator: | ||||||||
Weighted average additional shares assuming conversion of potential common shares (in shares) | 0.0 | 0.5 | 0.0 | 0.4 |
(Loss)/Earnings Per Share - Narrative (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 1,835,476 | 1,547,070 | 1,904,010 | 1,006,532 |
Antidilutive securities, exercise price (in dollars per share) | $ 12.59 | $ 12.97 | $ 12.58 | $ 15.21 |
Financial Instruments, Risk Management and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Estimate of Fair Value Measurement | |||
Derivative [Line Items] | |||
Long-term debt value | $ 270.8 | $ 154.6 | |
Reported Value Measurement | |||
Derivative [Line Items] | |||
Long-term debt value | 224.1 | $ 154.6 | |
Not Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | 42.7 | ||
Designated as Hedging Instrument | Foreign currency contracts | |||
Derivative [Line Items] | |||
Net after-tax loss position | 0.2 | ||
Open foreign currency forward contracts designated as cash flow hedges, U.S. dollar equivalent | $ 6.2 | ||
Designated as Hedging Instrument | Foreign currency contracts | Forecast | |||
Derivative [Line Items] | |||
Loss on derivative | $ 0.2 |
Financial Instruments, Risk Management and Fair Value Measurements - Fair Value of Derivative Instruments (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Derivative [Line Items] | |
Derivative liabilities | $ (0.2) |
Net derivative liabilities | (0.2) |
Accrued and other current liabilities | Foreign currency contracts | Designated as Hedging Instrument | |
Derivative [Line Items] | |
Derivative liabilities | $ (0.2) |
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives in Cash Flow Hedging Relationships (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 571.2 | $ 540.8 | $ 525.3 | $ 508.6 | $ 489.6 | $ 544.0 | $ 489.6 |
Unrealized hedging gains, net of tax | 1.2 | 0.7 | |||||
Reclassification of deferred hedging gains, net of tax | (1.1) | ||||||
Other comprehensive income/(loss), net of tax | 3.0 | (0.8) | 1.2 | (0.4) | |||
Ending balance | 566.6 | 571.2 | 543.6 | 525.3 | 508.6 | 566.6 | 543.6 |
Total Foreign Exchange Contracts | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (0.2) | 0.0 | (0.8) | (1.3) | (1.2) | 0.0 | (1.2) |
Unrealized hedging gains, net of tax | 0.2 | (0.2) | 1.5 | 0.8 | 0.3 | (0.2) | 2.6 |
Reclassification of deferred hedging gains, net of tax | (0.2) | (0.4) | (0.3) | (0.4) | (1.1) | ||
Other comprehensive income/(loss), net of tax | (0.2) | 1.1 | 0.5 | (0.1) | |||
Ending balance | $ (0.2) | $ (0.2) | $ 0.3 | $ (0.8) | $ (1.3) | $ (0.2) | $ 0.3 |
Financial Instruments, Risk Management and Fair Value Measurements - Derivatives Not Designated As Cash Flow Hedging Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Derivative [Line Items] | ||||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.8) | $ 0.1 | $ (1.9) | $ (0.9) |
Foreign Exchange contracts | Cost of Sales and Services | ||||
Derivative [Line Items] | ||||
Amount of pre-tax gain or (loss) recognized in income on derivatives | $ (0.8) | $ 0.1 | $ (1.9) | $ (0.9) |
Financial Instruments, Risk Management and Fair Value Measurements - Recurring Fair Value Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Assets | |||
Investments in deferred compensation plan | $ 2.1 | $ 2.1 | $ 1.6 |
Total Assets | 2.1 | 2.1 | 1.6 |
Liabilities | |||
Deferred compensation plan obligation | 3.1 | 3.1 | 2.5 |
Total Liabilities | 3.1 | 3.1 | 2.5 |
Level 1 | |||
Assets | |||
Investments in deferred compensation plan | 2.1 | 2.1 | 1.6 |
Total Assets | 2.1 | 2.1 | 1.6 |
Liabilities | |||
Deferred compensation plan obligation | 3.1 | 3.1 | 2.5 |
Total Liabilities | 3.1 | 3.1 | 2.5 |
Level 2 | |||
Assets | |||
Investments in deferred compensation plan | 0.0 | 0.0 | 0.0 |
Total Assets | 0.0 | 0.0 | 0.0 |
Liabilities | |||
Deferred compensation plan obligation | 0.0 | 0.0 | 0.0 |
Total Liabilities | 0.0 | 0.0 | 0.0 |
Level 3 | |||
Assets | |||
Investments in deferred compensation plan | 0.0 | 0.0 | 0.0 |
Total Assets | 0.0 | 0.0 | 0.0 |
Liabilities | |||
Deferred compensation plan obligation | 0.0 | 0.0 | 0.0 |
Total Liabilities | 0.0 | 0.0 | $ 0.0 |
Selling, General and Administrative Expenses | |||
Liabilities | |||
Mark-to-market loss on common stock | $ 0.3 | $ 0.1 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Oct. 27, 2020 |
Sep. 30, 2020 |
May 29, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
---|---|---|---|---|---|
Lessee, Lease, Description [Line Items] | |||||
Gain contingency, amount held in escrow | $ 20.0 | ||||
Operating lease, weighted average remaining lease term | 11 years 6 months | 11 years 4 months 24 days | 11 years 4 months 24 days | ||
Operating lease, weighted average discount rate | 4.40% | 4.40% | |||
Nikolov V. Livent Corp | Pending Litigation | |||||
Lessee, Lease, Description [Line Items] | |||||
Settlement amount to be paid | $ 7.4 | ||||
Net loss contingency | 2.5 | ||||
Settlement accrued liability | 7.4 | ||||
Insurance reimbursement receivable | $ 4.9 | ||||
Subsequent Event | Nikolov V. Livent Corp | Pending Litigation | |||||
Lessee, Lease, Description [Line Items] | |||||
Settlement amount to be paid | $ 7.4 | ||||
Positive Outcome Of Litigation, Reimbursement Of Payment | |||||
Lessee, Lease, Description [Line Items] | |||||
Gain contingency, amount held in escrow | 10.0 | ||||
Positive Outcome Of Litigation, Termination Penalty Repayment | |||||
Lessee, Lease, Description [Line Items] | |||||
Gain contingency, amount held in escrow | $ 10.0 | ||||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, remaining lease term | 2 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease, remaining lease term | 15 years |
Commitments and Contingencies - Lease Cost and Terms (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Lease Cost | ||||
Operating lease cost | $ 0.6 | $ 0.5 | $ 1.6 | $ 1.5 |
Short-term lease cost | 0.1 | 0.1 | 0.3 | 0.2 |
Variable lease cost | 0.0 | 0.0 | 0.1 | 0.1 |
Sublease income | 0.0 | (0.1) | 0.0 | (0.2) |
Total lease cost | 0.6 | 0.5 | 2.0 | 1.6 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Cash paid for operating leases | $ 0.5 | $ 0.4 | $ 1.5 | $ 1.1 |
Commitments and Contingencies - Maturity of Operating Lease Liabilities (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Undiscounted cash flows | |
Remainder of 2020 | $ 0.5 |
2021 | 2.0 |
2022 | 2.0 |
2023 | 1.8 |
2024 | 1.8 |
Thereafter | 12.8 |
Total future minimum lease payments | 20.9 |
Less: Imputed interest | (4.6) |
Total | $ 16.3 |
Supplemental Information - Prepaid and Other Current Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Argentina government receivable | $ 12.4 | $ 7.8 |
Tax related items | 17.6 | 14.1 |
Other receivables | 10.4 | 9.9 |
Prepaid expenses | 4.4 | 9.2 |
Bank Acceptance Drafts | 0.1 | 7.4 |
Other current assets | 7.1 | 3.4 |
Total | $ 52.0 | $ 51.8 |
Supplemental Information - Other Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Other assets | ||
Argentina government receivable | $ 55.9 | $ 55.0 |
Advance to contract manufacturers | 15.9 | 15.9 |
Capitalized software, net | 2.1 | 1.1 |
Prepayment associated with long-term supply agreement | 10.0 | 10.0 |
Tax related items | 4.8 | 3.6 |
Other assets | 8.6 | 5.9 |
Total | 97.3 | 91.5 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Deferred asset | 3.3 | |
Nikolov V. Livent Corp | Pending Litigation | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Insurance reimbursement receivable | 4.9 | |
Argentina Government | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Export tax and export rebate receivable | $ 40.4 | $ 38.0 |
Supplemental Information - Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Accrued and other current liabilities | ||
Plant restructuring reserves | $ 3.2 | $ 3.3 |
Retirement liability - 401K | 1.9 | 2.7 |
Accrued payroll | 9.9 | 6.7 |
Derivative liabilities | 0.2 | 0.0 |
Severance related | 1.7 | 0.0 |
Environmental reserves, current | 0.7 | 0.5 |
Other accrued and other current liabilities | 16.2 | 23.2 |
Total | $ 33.8 | $ 36.4 |
Supplemental Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Other long-term liabilities | ||
Asset retirement obligations | $ 0.3 | $ 0.2 |
Contingencies related to uncertain tax positions | 5.5 | 4.1 |
Deferred compensation plan obligation | 3.1 | 2.5 |
Self-insurance reserves | 1.8 | 1.9 |
Other long-term liabilities | 1.2 | 1.3 |
Total | 11.9 | $ 10.0 |
Nikolov V. Livent Corp | Pending Litigation | ||
Other long-term liabilities | ||
Settlement amount to be paid | 7.4 | |
TMA Agreement, Uncertain Tax Positions | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | 4.2 | |
TMA Agreement, Indemnification Liability | ||
Other long-term liabilities | ||
Contingencies related to uncertain tax positions | $ 1.5 |
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