Financial Instruments, Risk Management and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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.


	September 30, 2020
	Gross Amount of Derivatives
(in Millions)	Designated as Cash Flow Hedges
Derivatives


Foreign exchange contracts	$	(0.2)
Total derivative liabilities	(0.2)
Net derivative liabilities	$	(0.2)

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(1) Balance is included in "Accrued and other current liabilities" in the condensed consolidated balance sheets.

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


(in Millions)	Total Foreign Exchange Contracts




Accumulated other comprehensive loss, net of tax at March 31, 2020	$	—
Unrealized hedging losses, net of tax	(0.2)

Total derivative instrument impact on comprehensive income, net of tax	(0.2)
Accumulated other comprehensive loss, net of tax at June 30, 2020	$	(0.2)
Unrealized hedging gains, net of tax	0.2
Reclassification of deferred hedging gains, net of tax (1)	(0.2)
Accumulated other comprehensive loss, net of tax at September 30, 2020	$	(0.2)


Accumulated other comprehensive loss, net of tax at December 31, 2018	$	(1.2)
Unrealized hedging gains, net of tax	0.3
Reclassification of deferred hedging gains, net of tax (1)	(0.4)
Total derivative instrument impact on comprehensive income, net of tax	(0.1)
Accumulated other comprehensive loss, net of tax at March 31, 2019	$	(1.3)
Unrealized hedging gains, net of tax	0.8
Reclassification of deferred hedging gains, net of tax (1)	(0.3)
Total derivative instrument impact on comprehensive income, net of tax	0.5
Accumulated other comprehensive loss, net of tax at June 30, 2019	$	(0.8)
Unrealized hedging gains, net of tax	1.5
Reclassification of deferred hedging gains, net of tax (1)	(0.4)
Total derivative instrument impact on comprehensive income, net of tax	1.1
Accumulated other comprehensive gain, net of tax at September 30, 2019	$	0.3

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(1)Amounts are included in “Cost of sales and services” on the condensed consolidated statements of operations.

Derivatives Not Designated as Hedging Instruments


	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	$	(0.8)	$	0.1	$	(1.9)	$	(0.9)

Total		$	(0.8)	$	0.1	$	(1.9)	$	(0.9)

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(1) Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets.


(in Millions)	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)	$	2.1	$	2.1	$	—	$	—


Total Assets	$	2.1	$	2.1	$	—	$	—

Liabilities


Deferred compensation plan obligation (2)	$	3.1	$	3.1	$	—	$	—


Total Liabilities	$	3.1	$	3.1	$	—	$	—


(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)	$	1.6	$	1.6	$	—	$	—


Total Assets	$	1.6	$	1.6	$	—	$	—

Liabilities


Deferred compensation plan obligation (2)	$	2.5	$	2.5	$	—	$	—


Total Liabilities	$	2.5	$	2.5	$	—	$	—

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(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.