INNOSPEC INC., 10-Q filed on 08 Nov 17
Document and Entity Information
9 Months Ended
Sep. 30, 2017
Oct. 31, 2017
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Sep. 30, 2017 
 
Document Fiscal Year Focus
2017 
 
Document Fiscal Period Focus
Q3 
 
Trading Symbol
IOSP 
 
Entity Registrant Name
INNOSPEC INC. 
 
Entity Central Index Key
0001054905 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
24,137,575 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]
 
 
 
 
Net sales
$ 332.4 
$ 205.5 
$ 953.0 
$ 645.6 
Cost of goods sold
(233.6)
(126.3)
(658.2)
(404.7)
Gross profit
98.8 
79.2 
294.8 
240.9 
Operating expenses:
 
 
 
 
Selling, general and administrative
(60.7)
(56.1)
(176.9)
(153.1)
Research and development
(7.9)
(6.5)
(23.8)
(19.6)
Adjustment to fair value of contingent consideration
2.3 
6.3 
Loss on disposal of subsidiary
(1.0)
(1.4)
Foreign exchange loss on liquidation of subsidiary
(1.8)
Total operating expenses
(68.6)
(60.3)
(203.5)
(167.8)
Operating income
30.2 
18.9 
91.3 
73.1 
Other net income/(expense)
1.8 
(5.0)
2.9 
3.2 
Interest expense, net
(2.1)
(0.7)
(6.3)
(2.2)
Income before income taxes
29.9 
13.2 
87.9 
74.1 
Income taxes
(6.6)
(1.8)
(21.3)
(14.9)
Net income
$ 23.3 
$ 11.4 
$ 66.6 
$ 59.2 
Earnings per share:
 
 
 
 
Basic
$ 0.97 
$ 0.48 
$ 2.76 
$ 2.47 
Diluted
$ 0.95 
$ 0.47 
$ 2.71 
$ 2.42 
Weighted average shares outstanding (in thousands):
 
 
 
 
Basic
24,137 
23,977 
24,119 
23,989 
Diluted
24,565 
24,476 
24,569 
24,462 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 23.3 
$ 11.4 
$ 66.6 
$ 59.2 
Other comprehensive income:
 
 
 
 
Changes in cumulative translation adjustment, net of tax of $(0.4) million, $0.1 million, $(1.3) million and $(0.7) million, respectively
18.1 
(0.1)
30.7 
(0.3)
Changes in unrealized gains on derivative instruments, net of tax of $0.0 million, $0.0 million, $0.0 million and $0.0 million, respectively
0.2 
0.2 
Amortization of prior service credit, net of tax of $0.0 million, $0.0 million, $0.1 million and $0.1 million, respectively
(0.2)
(0.2)
(0.6)
(0.7)
Amortization of actuarial net losses, net of tax of $(0.1) million, $(0.1) million, $(0.6) million and $(0.4) million, respectively
1.1 
0.5 
3.1 
1.6 
Total other comprehensive income
19.2 
0.2 
33.4 
0.6 
Total comprehensive income
$ 42.5 
$ 11.6 
$ 100.0 
$ 59.8 
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
 
 
 
 
Changes in cumulative translation adjustment, tax
$ (0.4)
$ 0.1 
$ (1.3)
$ (0.7)
Changes in unrealized gains on derivative instrument, tax
Amortization of prior service credit, tax
0.1 
0.1 
Amortization of actuarial net losses, tax
$ (0.1)
$ (0.1)
$ (0.6)
$ (0.4)
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Current assets:
 
 
Cash and cash equivalents
$ 65.5 
$ 101.9 
Trade and other accounts receivable (less allowances of $4.3 million and $4.7 million respectively)
245.6 
154.4 
Inventories (less allowances of $9.4 million and $8.6 million respectively):
 
 
Finished goods
144.7 
118.1 
Raw materials
66.8 
55.7 
Total inventories
211.5 
173.8 
Prepaid expenses
4.1 
6.2 
Prepaid income taxes
4.0 
4.8 
Other current assets
2.0 
Total current assets
532.7 
441.1 
Property, plant and equipment:
 
 
Gross cost
312.9 
251.8 
Less accumulated depreciation
(123.7)
(94.4)
Net property, plant and equipment
189.2 
157.4 
Goodwill
346.8 
374.8 
Other intangible assets
169.6 
144.4 
Deferred tax assets
16.3 
14.9 
Pension asset
54.9 
48.0 
Other non-current assets
3.1 
0.8 
Total assets
1,312.6 
1,181.4 
Current liabilities:
 
 
Accounts payable
115.7 
59.6 
Accrued liabilities
94.0 
94.3 
Current portion of long-term debt
10.3 
10.3 
Current portion of finance leases
2.6 
1.6 
Current portion of plant closure provisions
5.9 
6.7 
Current portion of accrued income taxes
8.2 
9.4 
Current portion of acquisition-related contingent consideration
1.1 
1.1 
Current portion of deferred income
0.1 
0.1 
Total current liabilities
237.9 
183.1 
Long-term debt, net of current portion
219.0 
258.5 
Finance leases, net of current portion
3.2 
2.9 
Plant closure provisions, net of current portion
36.8 
32.8 
Unrecognized tax benefits, net of current portion
1.8 
2.3 
Deferred tax liabilities
48.6 
32.3 
Pension liabilities
16.5 
14.2 
Deferred income, net of current portion
0.5 
0.5 
Other non-current liabilities
0.4 
1.0 
Total liabilities
564.7 
527.6 
Equity:
 
 
Common stock, $0.01 par value, authorized 40,000,000 shares, issued 29,554,500 shares
0.3 
0.3 
Additional paid-in capital
317.9 
315.1 
Treasury stock (5,416,924 and 5,483,341 shares at cost, respectively)
(97.1)
(97.5)
Retained earnings
619.2 
561.8 
Accumulated other comprehensive loss
(92.8)
(126.2)
Total Innospec stockholders' equity
747.5 
653.5 
Non-controlling interest
0.4 
0.3 
Total equity
747.9 
653.8 
Total liabilities and equity
$ 1,312.6 
$ 1,181.4 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Allowances for doubtful accounts
$ 4.3 
$ 4.7 
Inventory allowances
$ 9.4 
$ 8.6 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
40,000,000 
40,000,000 
Common stock, shares issued
29,554,500 
29,554,500 
Treasury stock, shares
5,416,924 
5,483,341 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash Flows from Operating Activities
 
 
Net income
$ 66.6 
$ 59.2 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
37.2 1
28.5 1
Adjustment to fair value of contingent consideration
(6.3)
Deferred taxes
3.7 
0.5 
Loss on disposal of subsidiary
1.0 
1.4 
Foreign exchange loss on liquidation of subsidiary
1.8 
Cash contributions to defined benefit pension plans
(0.8)
(0.8)
Non-cash movements on defined benefit pension plans
(2.7)
(4.7)
Stock option compensation
3.4 
2.8 
Changes in assets and liabilities, net of effects of acquired and divested companies:
 
 
Trade and other accounts receivable
(83.0)
12.3 
Inventories
(31.5)
(1.0)
Prepaid expenses
2.2 
(3.0)
Accounts payable and accrued liabilities
42.4 
(1.0)
Accrued income taxes
(2.7)
(0.9)
Plant closure provisions
2.9 
1.5 
Unrecognized tax benefits
(0.5)
(1.6)
Other assets and liabilities
(4.8)
0.1 
Net cash provided by operating activities
35.2 
87.0 
Cash Flows from Investing Activities
 
 
Capital expenditures
(16.4)
(12.2)
Business combinations, net of cash acquired
2.6 
1.8 
Acquisition of intangible asset
(4.2)
Internally developed software
(4.1)
Sale of short-term investments
4.7 
Net cash used in investing activities
(22.1)
(5.7)
Cash Flows from Financing Activities
 
 
Proceeds from revolving credit facility
10.0 
28.0 
Repayments of revolving credit facility
(50.0)
(18.0)
Repayments of finance leases
(1.7)
(0.8)
Payment for acquisition-related contingent consideration
(44.0)
Dividend paid
(9.2)
(8.1)
Issue of treasury stock
1.0 
0.3 
Repurchase of common stock
(1.0)
(8.2)
Net cash used in financing activities
(50.9)
(50.8)
Effect of foreign currency exchange rate changes on cash
1.4 
(0.3)
Net change in cash and cash equivalents
(36.4)
30.2 
Cash and cash equivalents at beginning of period
101.9 
136.9 
Cash and cash equivalents at end of period
$ 65.5 
$ 167.1 
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Statement of Cash Flows [Abstract]
 
 
Amortization of deferred finance costs
$ 0.5 
$ 0.2 
Condensed Consolidated Statement of Equity (USD $)
In Millions
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Non-Controlling Interest [Member]
Beginning Balance at Dec. 31, 2016
$ 653.8 
$ 0.3 
$ 315.1 
$ (97.5)
$ 561.8 
$ (126.2)
$ 0.3 
Net income
66.6 
 
 
 
66.6 
 
 
Dividend paid
(9.2)
 
 
 
(9.2)
 
 
Non-controlling interest
0.1 
 
 
 
 
 
0.1 
Changes in cumulative translation adjustment, net of tax
30.7 
 
 
 
 
30.7 
 
Changes in unrealized gains on derivative instruments, net of tax
0.2 
 
 
 
 
0.2 
 
Treasury stock reissued
0.8 
 
(0.6)
1.4 
 
 
 
Treasury stock repurchased
(1.0)
 
 
(1.0)
 
 
 
Stock option compensation
3.4 
 
3.4 
 
 
 
 
Amortization of prior service credit, net of tax
(0.6)
 
 
 
 
(0.6)
 
Amortization of actuarial net losses, net of tax
3.1 
 
 
 
 
3.1 
 
Ending Balance at Sep. 30, 2017
$ 747.9 
$ 0.3 
$ 317.9 
$ (97.1)
$ 619.2 
$ (92.8)
$ 0.4 
Basis of Presentation
Basis of Presentation

NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934. Accordingly, they do not include all the information and notes necessary for a comprehensive presentation of financial position, results of operations and cash flows.

It is our opinion, however, that all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) have been made which are necessary for the condensed consolidated financial statements to be fairly stated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 filed on February 15, 2017.

The results for the interim period covered by this report are not necessarily indicative of the results to be expected for the full year.

When we use the terms “Innospec,” “the Corporation,” “the Company,” “Registrant,” “we,” “us” and “our,” we are referring to Innospec Inc. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires.

Segment Reporting
Segment Reporting

NOTE 2 – SEGMENT REPORTING

The Company reports its financial performance based on the four reportable segments Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives.

The Fuel Specialties, Performance Chemicals and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. The Octane Additives segment is expected to decline in the near future as our one remaining refinery customer transitions to unleaded fuel.

The Company evaluates the performance of its segments based on operating income. The following tables analyze sales and other financial information by the Company’s reportable segments:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Net Sales:

           

Refinery and Performance

   $ 97.4      $ 89.8      $ 286.5      $ 281.7  

Other

     32.7        24.6        91.3        85.4  
  

 

 

    

 

 

    

 

 

    

 

 

 

Fuel Specialties

     130.1        114.4        377.8        367.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Personal Care

     52.2        33.7        148.4        97.7  

Home Care

     32.7        0.5        89.0        1.4  

Other

     25.4        2.6        72.3        7.7  
  

 

 

    

 

 

    

 

 

    

 

 

 

Performance Chemicals

     110.3        36.8        309.7        106.8  
  

 

 

    

 

 

    

 

 

    

 

 

 

Oilfield Services

     81.9        49.7        224.5        132.4  

Octane Additives

     10.1        4.6        41.0        39.3  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 332.4      $ 205.5      $ 953.0      $ 645.6  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Net sales:

           

Fuel Specialties

   $ 130.1      $ 114.4      $ 377.8      $ 367.1  

Performance Chemicals

     110.3        36.8        309.7        106.8  

Oilfield Services

     81.9        49.7        224.5        132.4  

Octane Additives

     10.1        4.6        41.0        39.3  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 332.4      $ 205.5      $ 953.0      $ 645.6  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit:

           

Fuel Specialties

   $ 44.6      $ 43.8      $ 135.9      $ 129.5  

Performance Chemicals

     20.7        12.3        54.8        34.4  

Oilfield Services

     28.5        20.6        82.9        52.1  

Octane Additives

     5.0        2.5        21.2        24.9  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 98.8      $ 79.2      $ 294.8      $ 240.9  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income:

           

Fuel Specialties

   $ 24.9      $ 24.1      $ 75.5      $ 72.2  

Performance Chemicals

     9.7        4.2        22.2        13.3  

Oilfield Services

     1.8        0.0        8.5        (7.1

Octane Additives

     4.4        1.9        19.2        22.5  

Pension credit

     1.1        1.6        3.2        5.1  

Corporate costs

     (11.7      (15.2      (34.5      (37.8

Adjustment to fair value of contingent consideration

     0.0        2.3        0.0        6.3  

Loss on disposal of subsidiary

     0.0        0.0        (1.0      (1.4

Foreign exchange loss on liquidation of subsidiary

     0.0        0.0        (1.8      0.0  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating income

   $ 30.2      $ 18.9      $ 91.3      $ 73.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

The pension credit relates to the United Kingdom defined benefit pension plan which is closed to future service accrual. The charges related to our other much smaller pension arrangements in the U.S. and overseas are included in the segment and income statement captions consistent with the related employees’ costs.

The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Depreciation:

           

Fuel Specialties

   $ 1.0      $ 0.9      $ 3.0      $ 2.8  

Performance Chemicals

     2.5        0.5        7.0        1.6  

Oilfield Services

     1.6        1.7        4.8        4.6  

Octane Additives

     0.2        0.1        0.6        0.4  

Corporate

     0.3        0.3        0.7        0.7  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 5.6      $ 3.5      $ 16.1      $ 10.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization:

           

Fuel Specialties

   $ 0.2      $ 0.2      $ 0.6      $ 0.7  

Performance Chemicals

     1.9        1.1        5.6        3.1  

Oilfield Services

     2.9        2.9        8.9        8.9  

Corporate

     1.9        1.9        5.5        5.5  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 6.9      $ 6.1      $ 20.6      $ 18.2  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Earnings Per Share
Earnings Per Share

NOTE 3 – EARNINGS PER SHARE

Basic earnings per share is based on the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the effect of options that are dilutive and outstanding during the period. Per share amounts are computed as follows:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 
     2017      2016      2017      2016  

Numerator (in millions):

           

Net income available to common stockholders

   $ 23.3      $ 11.4      $ 66.6      $ 59.2  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator (in thousands):

           

Weighted average common shares outstanding

     24,137        23,977        24,119        23,989  

Dilutive effect of stock options and awards

     428        499        450        473  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for diluted earnings per share

     24,565        24,476        24,569        24,462  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share, basic:

   $ 0.97      $ 0.48      $ 2.76      $ 2.47  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share, diluted:

   $ 0.95      $ 0.47      $ 2.71      $ 2.42  
  

 

 

    

 

 

    

 

 

    

 

 

 

In the three and nine months ended September 30, 2017, the average number of anti-dilutive options excluded from the calculation of diluted earnings per share were 18,843 and 18,843, respectively (three and nine months ended September 30, 2016 – 0 and 0, respectively).

 

Goodwill
Goodwill

NOTE 4 – GOODWILL

The following table summarizes goodwill at the balance sheet dates:

 

(in millions)

   Total  

At December 31, 2016

  

Gross cost (1)

   $ 611.3  

Accumulated impairment losses

     (236.5
  

 

 

 

Net book amount

   $ 374.8  
  

 

 

 

Acquisition adjustment

     (36.7

Exchange effect

     8.7  

At September 30, 2017

  

Gross cost (1)

   $ 583.3  

Accumulated impairment losses

     (236.5
  

 

 

 

Net book amount

   $ 346.8  
  

 

 

 

 

(1 

Gross cost for 2017 and 2016 is net of $298.5 million of historical accumulated amortization.

Acquisition of Huntsman European Differentiated Surfactants Business

On December 30, 2016 the Company acquired the European Differentiated Surfactants business (“Huntsman”) from Huntsman Investments (Netherlands) B.V. for a total consideration of $200.2 million. During the year we have reviewed the fair values of assets acquired and liabilities assumed resulting in a $36.7 million increase in assets acquired and a corresponding decrease in goodwill. The final working capital adjustments of $2.6 million were agreed in the third quarter of 2017.

 

The measurement period for the valuation of assets acquired and liabilities assumed ends as soon as information on the facts and circumstances that existed as of the acquisition dates become available but does not exceed twelve months. The final fair value of assets and liabilities has not been determined as at September 30, 2017.

Huntsman, and the associated goodwill and other intangible assets, are included within our Performance Chemicals segment for management and reporting purposes. There is currently no goodwill amortizable for tax purposes.

Other Intangible Assets
Other Intangible Assets

NOTE 5 – OTHER INTANGIBLE ASSETS

The following table summarizes the other intangible assets movement year on year:

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Gross cost at January 1

   $ 248.6      $ 248.6  

Acquisitions

     37.7        0.0  

Internally developed software

     4.1        0.0  

Exchange effect

     4.1        0.0  
  

 

 

    

 

 

 

Gross cost at September 30

     294.5        248.6  
  

 

 

    

 

 

 

Accumulated amortization at January 1

     (104.2      (79.9

Amortization expense

     (20.6      (18.2

Exchange effect

     (0.1      0.0  
  

 

 

    

 

 

 

Accumulated amortization at September 30

     (124.9      (98.1
  

 

 

    

 

 

 

Net book amount at September 30

   $ 169.6      $ 150.5  
  

 

 

    

 

 

 

Acquisitions in the year are related to the Huntsman acquisition based on our provisional assessment of the fair value of the other intangible assets acquired. In the first quarter of 2017 we allocated $33.5 million of goodwill to intangibles relating to the acquisition completed on December 30, 2016. The intangible assets relate to customer relationships.

In addition, the Company completed the acquisition of customer and distributor lists in the Americas and Asia Pacific from Huntsman Holland B.V. for $4.2 million in cash on August 9, 2017.

Internally developed software has been capitalized in relation to a new information system platform for the acquired Huntsman business.

Amortization expense

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Product rights

   $ (2.8    $ (2.8

Brand names

     (0.9      (0.9

Technology

     (2.5      (2.5

Customer relationships

     (7.6      (5.1

Non-compete agreements

     (0.6      (0.7

Marketing related

     (0.7      (0.7

Internally developed software

     (5.5      (5.5
  

 

 

    

 

 

 

Total

   $ (20.6    $ (18.2
  

 

 

    

 

 

 

 

Pension Plans
Pension Plans

NOTE 6 – PENSION PLANS

The Company maintains a defined benefit pension plan (the “Plan”) covering a number of its current and former employees in the United Kingdom, although it does also have other much smaller pension arrangements in the U.S. and overseas. The Plan is closed to future service accrual but has a large number of deferred and current pensioners.

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Plan net pension credit/(charge):

           

Service cost

   $ (0.2    $ (0.2    $ (0.7    $ (0.7

Interest cost on projected benefit obligation

     (3.9      (5.0      (11.3      (16.0

Expected return on plan assets

     6.2        7.2        18.2        23.0  

Amortization of prior service credit

     0.2        0.2        0.7        0.8  

Amortization of actuarial net losses

     (1.2      (0.6      (3.7      (2.0
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1.1      $ 1.6      $ 3.2      $ 5.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

The amortization of prior service credit and actuarial net losses is a reclassification out of accumulated other comprehensive loss into selling, general and administrative expenses.

The Company also maintains an unfunded defined benefit pension plan covering a number of its current and former employees in Germany (the “German plan”). The German plan is closed to new entrants and has no assets. The net pension charge for the German plan for the three and nine months ended September 30, 2017 was $0.1 million and $0.5 million, respectively (three and nine months ended September 30, 2016 - $0.2 million and $0.6 million, respectively).

As at September 30, 2017, our Performance Chemicals segment has pension obligations in its European businesses with a liability of $4.7 million (December 31, 2016 - $4.1 million).

Income Taxes
Income Taxes

NOTE 7 – INCOME TAXES

A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows:

 

(in millions)

   Unrecognized
Tax Benefits
     Interest and
Penalties
     Total  

Opening balance at January 1, 2017

   $ 2.2      $ 0.1      $ 2.3  

Reductions due to lapsed statute of limitations

     (0.5      0.0        (0.5
  

 

 

    

 

 

    

 

 

 

Closing balance at September 30, 2017

     1.7        0.1        1.8  

Current

     0.0        0.0        0.0  
  

 

 

    

 

 

    

 

 

 

Non-current

   $ 1.7      $ 0.1      $ 1.8  
  

 

 

    

 

 

    

 

 

 

All of the unrecognized tax benefits, interest and penalties would impact our effective tax rate if recognized.

 

We recognize accrued interest and penalties associated with uncertain tax positions as part of income taxes in our condensed consolidated statements of income.

The Company or one of its subsidiaries files income tax returns with the U.S. federal government, and various state and foreign jurisdictions. As previously disclosed, one of the Company’s U.S. subsidiaries is currently subject to a state tax examination in respect of 2012 through to 2014 inclusive, and the Company and its U.S. subsidiaries are currently subject to a federal income tax examination in respect of 2015. The Company currently anticipates that adjustments, if any, arising out of these tax audits would not result in a material change to the Company’s financial position as at September 30, 2017.

The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2014 onwards. The Company’s subsidiaries in foreign tax jurisdictions are open to examination including France (2014 onwards), Germany (2015 onwards), Switzerland (2015 onwards) and the United Kingdom (2015 onwards).

Tax audits have been opened by the Italian tax authorities in respect of Innospec Performance Chemicals Italia Srl, acquired as part of the Huntsman business in respect of the period 2011 to 2013 inclusive. Any additional tax arising as a consequence of the tax audit would be a liability of the previous owner under the terms of the sales and purchase agreement.

The Company is in a position to control whether or not to repatriate foreign earnings and we currently do not expect to make a repatriation in the foreseeable future. No taxes have been provided for on the unremitted earnings of our overseas subsidiaries as any tax basis differences relating to investments in these overseas subsidiaries are considered to be indefinite in duration. The amount of unremitted earnings at December 31, 2016 was approximately $788 million. If these earnings are remitted, additional taxes could result after offsetting foreign income taxes paid although the calculation of the additional taxes is not practicable to compute at this time.

Long-Term Debt
Long-Term Debt

NOTE 8 – LONG-TERM DEBT

Long-term debt consists of the following:

 

(in millions)

   September 30,
2017
     December 31,
2016
 

Revolving credit facility

   $ 121.0      $ 161.0  

Term loan

     110.0        110.0  

Deferred finance costs

     (1.7      (2.2
  

 

 

    

 

 

 
   $ 229.3      $ 268.8  

Due within one year

     (10.3      (10.3
  

 

 

    

 

 

 

Due after one year

   $ 219.0      $ 258.5  
  

 

 

    

 

 

 
Plant Closure Provisions
Plant Closure Provisions

NOTE 9 – PLANT CLOSURE PROVISIONS

The liability for estimated closure costs of Innospec’s manufacturing facilities includes costs for decontamination and environmental remediation activities (“remediation”). The principal site giving rise to remediation liabilities is the manufacturing site at Ellesmere Port in the United Kingdom. There are also remediation liabilities on a much smaller scale in respect of our other manufacturing sites in the U.S. and Europe.

 

Movements in the provisions are summarized as follows:

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Total at January 1

   $ 39.5      $ 37.7  

Charge for the period

     4.4        3.5  

Utilized in the period

     (1.7      (2.1

Exchange effect

     0.5        0.1  
  

 

 

    

 

 

 

Total at September 30

     42.7        39.2  

Due within one year

     (5.9      (5.0
  

 

 

    

 

 

 

Due after one year

   $ 36.8      $ 34.2  
  

 

 

    

 

 

 

Amounts due within one year refer to provisions where expenditure is expected to arise within one year of the balance sheet date.

 

Fair Value Measurements
Fair Value Measurements

NOTE 10 – FAIR VALUE MEASUREMENTS

The following table presents the carrying amount and fair values of the Company’s assets and liabilities measured on a recurring basis:

 

     September 30, 2017      December 31, 2016  

(in millions)

   Carrying
Amount
     Fair
Value
     Carrying
Amount
     Fair
Value
 

Assets

           

Non-derivatives:

           

Cash and cash equivalents

   $ 65.5      $ 65.5      $ 101.9      $ 101.9  

Derivatives (Level 1 measurement):

           

Other current and non-current assets:

           

Foreign currency forward exchange contracts

     2.0        2.0        0.0        0.0  

Interest rate swaps

     0.6        0.6        0.4        0.4  

Liabilities

           

Non-derivatives:

           

Long-term debt (including current portion)

   $ 229.3      $ 229.3      $ 268.8      $ 268.8  

Finance leases (including current portion)

     5.8        5.8        4.5        4.5  

Derivatives (Level 1 measurement):

           

Other non-current liabilities:

           

Foreign currency forward exchange contracts

     0.0        0.0        0.6        0.6  

Non-financial liabilities (Level 3 measurement):

           

Stock equivalent units

     11.4        11.4        9.8        9.8  

The following methods and assumptions were used to estimate the fair values of financial instruments:

Cash and cash equivalents: The carrying amount approximates fair value because of the short-term maturities of such instruments.

 

Long-term debt and finance leases: Long-term debt principally comprises the term loan and revolving credit facility, which are shown net of deferred finance costs that have been capitalized. The fair value of long-term debt approximates to the carrying value, as the discounting to its present value is offset by the interest rate swaps. Finance leases relate to certain fixed assets in our oilfield services business. The carrying amount of finance leases approximates to the fair value.

Derivatives: The fair value of derivatives relating to foreign currency forward exchange contracts and interest rate swaps are derived from current settlement prices and comparable contracts using current assumptions. Interest rate swaps relate to contracts taken out to hedge interest rate risk on a portion of our long-term debt. Foreign currency forward exchange contracts primarily relate to contracts entered into to hedge future known transactions or hedge balance sheet net cash positions. The movements in the carrying amounts and fair values of these contracts are largely due to changes in exchange rates against the U.S. dollar and changes in U.S. LIBOR.

Stock equivalent units: The fair values of stock equivalent units are calculated at each balance sheet date using either the Black-Scholes or Monte Carlo method depending on the terms of each grant.

Derivative Instruments and Risk Management
Derivative Instruments and Risk Management

NOTE 11 – DERIVATIVE INSTRUMENTS AND RISK MANAGEMENT

The Company enters into various foreign currency forward exchange contracts to minimize currency exchange rate exposure from expected future cash flows. As at September 30, 2017 the contracts have maturity dates of up to twelve months at the date of inception. These foreign currency forward exchange contracts have not been designated as hedging instruments, and their impact on the income statement for the first nine months of 2017 was a loss of $0.6 million (first nine months of 2016: gain of $3.2 million).

The Company enters into interest rate swaps to minimize interest rate exposure related to a part of our borrowing requirements. These interest rate swaps have been designated as hedging instruments, and their impact on accumulated other comprehensive loss for the first nine months of 2017 was a gain of $0.2 million (first nine months of 2016: $0.0 million).

 

Commitments and Contingencies
Commitments and Contingencies

NOTE 12 – COMMITMENTS AND CONTINGENCIES

Legal matters

While we are involved from time to time in claims and legal proceedings that result from, and are incidental to, the conduct of our business including business and commercial litigation, employee and product liability claims, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party, or of which any of their property is subject. It is possible, however, that an adverse resolution of an unexpectedly large number of such individual claims or proceedings could in the aggregate have a material adverse effect on the results of operations for a particular year or quarter.

Guarantees

The Company and certain of the Company’s consolidated subsidiaries are contingently liable for certain obligations of affiliated companies primarily in the form of guarantees of debt and performance under contracts entered into as a normal business practice. This includes guarantees of non-U.S. excise taxes and customs duties. As at September 30, 2017, such guarantees which are not recognized as liabilities in the condensed consolidated financial statements amounted to $3.3 million.

 

Under the terms of the guarantee arrangements, generally the Company would be required to perform should the affiliated company fail to fulfil its obligations under the arrangements. In some cases, the guarantee arrangements have recourse provisions that would enable the Company to recover any payments made under the terms of the guarantees from securities held of the guaranteed parties’ assets.

The Company and its affiliates have numerous long-term sales and purchase commitments in their various business activities, which are expected to be fulfilled with no adverse consequences material to the Company.

Stock-Based Compensation Plans
Stock-Based Compensation Plans

NOTE 13 – STOCK-BASED COMPENSATION PLANS

The Company grants stock options and stock equivalent units (“SEUs”) from time to time as a long-term performance incentive. In certain cases the grants are subject to performance conditions such as the Company’s stock price. Where performance conditions apply the Monte Carlo simulation model is used to determine the fair values. Otherwise the Black-Scholes model is used to determine the fair values.

Stock option plans

The following table summarizes the transactions of the Company’s stock option plans for the nine months ended September 30, 2017:

 

     Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Grant-Date

Fair Value
 

Outstanding at December 31, 2016

     570,994      $ 20.38      $ 21.68  

Granted - at discount

     79,664      $ 0.00      $ 61.39  

- at market value

     18,843      $ 70.60      $ 16.84  

Exercised

     (83,255    $ 12.56      $ 23.86  

Forfeited

     (3,805    $ 15.91      $ 22.47  
  

 

 

       

Outstanding at September 30, 2017

     582,441      $ 20.64      $ 26.68  
  

 

 

       

At September 30, 2017, there were 44,443 stock options that were exercisable, of which 9,421 had performance conditions attached.

The stock option compensation cost for the first nine months of 2017 was $3.4 million (first nine months of 2016 – $2.8 million). The total intrinsic value of options exercised in the first nine months of 2017 was $2.0 million (first nine months of 2016 – $1.8 million).

The total compensation cost related to non-vested stock options not yet recognized at September 30, 2017 was $6.7 million and this cost is expected to be recognized over the weighted-average period of 2.05 years.

 

Stock equivalent units

The following table summarizes the transactions of the Company’s SEUs for the nine months ended September 30, 2017:

 

     Number
of SEUs
     Weighted
Average
Exercise
Price
     Weighted
Average
Grant-Date
Fair Value
 

Outstanding at December 31, 2016

     279,815      $ 3.77      $ 33.40  

Granted - at discount

     180,249      $ 0.00      $ 62.76  

- at market value

     5,530      $ 70.60      $ 16.84  

Exercised

     (34,054    $ 5.47      $ 27.09  

Forfeited

     (16,075    $ 0.00      $ 33.77  
  

 

 

       

Outstanding at September 30, 2017

     415,465      $ 3.03      $ 46.41  
  

 

 

       

At September 30, 2017 there were 54,759 SEUs that are exercisable, of which 49,391 had performance conditions attached.

The charges for SEUs are spread over the life of the award subject to a revaluation to fair value each quarter. The revaluation may result in a charge or a credit to the income statement in the quarter dependent upon our share price and other performance criteria.

The SEU compensation cost for the first nine months of 2017 was $3.6 million (first nine months of 2016 – $3.7 million). The total intrinsic value of SEUs exercised in the first nine months of 2017 was $1.1 million (first nine months of 2016 – $1.5 million).

The weighted-average remaining vesting period of non-vested SEUs is 1.93 years.

Reclassifications out of Accumulated Other Comprehensive Loss
Reclassifications out of Accumulated Other Comprehensive Loss

NOTE 14 – RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS

Reclassifications out of accumulated other comprehensive loss for the first nine months of 2017 were:

 

(in millions)

Details about AOCL Components

   Amount
Reclassified
from AOCL
    

Affected Line Item in the

Statement where

Net Income is Presented

Foreign currency translation items:

     

Liquidation of subsidiary

   $ 1.8      Loss on liquidation of subsidiary

Defined benefit pension plan items:

     

Amortization of prior service credit

   $ (0.7    See (¹) below

Amortization of actuarial net losses

     3.7      See (¹) below
  

 

 

    
     4.8      Total before tax
     (0.5    Income tax expense
  

 

 

    

Total reclassifications

   $ 4.3      Net of tax
  

 

 

    

 

(1)

These items are included in the computation of net periodic pension cost. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information.

 

Changes in accumulated other comprehensive loss for the first nine months of 2017, net of tax, were:

 

(in millions)

   Derivative
instruments
     Defined
Benefit
Pension
Plan Items
     Cumulative
Translation
Adjustments
     Total  

Balance at December 31, 2016

   $ 0.3      $ (46.0    $ (80.5    $ (126.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive income before reclassifications

     0.2        0.0        30.7        30.9  

Amounts reclassified from AOCL

     0.0        2.5        0.0        2.5  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other comprehensive income

     0.2        2.5        30.7        33.4  
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance at September 30, 2017

   $ 0.5      $ (43.5    $ (49.8    $ (92.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

NOTE 15 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 requires companies to present the service cost component of net benefit cost in the same line items in which they report compensation cost. Companies will present all other components of net benefit cost outside operating income, if this subtotal is presented. The new standard is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company has not yet determined the effect of the standard on its ongoing financial reporting.

In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Revision to Lease Accounting, which amends ASC Topic 842, Leases. The ASU requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented. The Company has not yet determined the effect of the standard on its ongoing financial reporting.

In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The new standard will become effective for annual reporting periods beginning after December 15, 2017. ASU 2014-09 may be applied retrospectively to each prior period presented in the financial statements (full retrospective approach) or retrospectively with the cumulative effect of initially applying the standard recognized as an adjustment to the opening balance of retained earnings as of the date of adoption (modified retrospective approach). We will adopt the new revenue standard on January 1, 2018 utilizing the modified retrospective approach.

We are spending significant time and efforts evaluating, analyzing and documenting the expected impact of ASU 2014-09 on our financial statements. Our approach includes performing a detailed review of key contracts representative of our different businesses and product lines, reviewing various industry publications, and comparing our current accounting policies to the principles and requirements outlined in the new standard. Our assessment at this stage is that we do not expect the new revenue recognition standard will have a material impact on our financial statements upon adoption.

 

Related Party Transactions
Related Party Transactions

NOTE 16 – RELATED PARTY TRANSACTIONS

Mr. Robert I. Paller has been a non-executive director of the Company since November 1, 2009. The Company has retained and continues to retain Smith, Gambrell & Russell, LLP (“SGR”), a law firm with which Mr. Paller holds a position. In the first nine months of 2017 the Company incurred fees from SGR of $0.3 million (first nine months of 2016 – $0.4 million). As at September 30, 2017, the amount due to SGR from the Company was $0.0 million (December 31, 2016 - $0.0 million).

Segment Reporting (Tables)

The following tables analyze sales and other financial information by the Company’s reportable segments:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Net Sales:

           

Refinery and Performance

   $ 97.4      $ 89.8      $ 286.5      $ 281.7  

Other

     32.7        24.6        91.3        85.4  
  

 

 

    

 

 

    

 

 

    

 

 

 

Fuel Specialties

     130.1        114.4        377.8        367.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Personal Care

     52.2        33.7        148.4        97.7  

Home Care

     32.7        0.5        89.0        1.4  

Other

     25.4        2.6        72.3        7.7  
  

 

 

    

 

 

    

 

 

    

 

 

 

Performance Chemicals

     110.3        36.8        309.7        106.8  
  

 

 

    

 

 

    

 

 

    

 

 

 

Oilfield Services

     81.9        49.7        224.5        132.4  

Octane Additives

     10.1        4.6        41.0        39.3  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 332.4      $ 205.5      $ 953.0      $ 645.6  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Net sales:

           

Fuel Specialties

   $ 130.1      $ 114.4      $ 377.8      $ 367.1  

Performance Chemicals

     110.3        36.8        309.7        106.8  

Oilfield Services

     81.9        49.7        224.5        132.4  

Octane Additives

     10.1        4.6        41.0        39.3  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 332.4      $ 205.5      $ 953.0      $ 645.6  
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit:

           

Fuel Specialties

   $ 44.6      $ 43.8      $ 135.9      $ 129.5  

Performance Chemicals

     20.7        12.3        54.8        34.4  

Oilfield Services

     28.5        20.6        82.9        52.1  

Octane Additives

     5.0        2.5        21.2        24.9  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 98.8      $ 79.2      $ 294.8      $ 240.9  
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income:

           

Fuel Specialties

   $ 24.9      $ 24.1      $ 75.5      $ 72.2  

Performance Chemicals

     9.7        4.2        22.2        13.3  

Oilfield Services

     1.8        0.0        8.5        (7.1

Octane Additives

     4.4        1.9        19.2        22.5  

Pension credit

     1.1        1.6        3.2        5.1  

Corporate costs

     (11.7      (15.2      (34.5      (37.8

Adjustment to fair value of contingent consideration

     0.0        2.3        0.0        6.3  

Loss on disposal of subsidiary

     0.0        0.0        (1.0      (1.4

Foreign exchange loss on liquidation of subsidiary

     0.0        0.0        (1.8      0.0  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total operating income

   $ 30.2      $ 18.9      $ 91.3      $ 73.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Depreciation:

           

Fuel Specialties

   $ 1.0      $ 0.9      $ 3.0      $ 2.8  

Performance Chemicals

     2.5        0.5        7.0        1.6  

Oilfield Services

     1.6        1.7        4.8        4.6  

Octane Additives

     0.2        0.1        0.6        0.4  

Corporate

     0.3        0.3        0.7        0.7  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 5.6      $ 3.5      $ 16.1      $ 10.1  
  

 

 

    

 

 

    

 

 

    

 

 

 

Amortization:

           

Fuel Specialties

   $ 0.2      $ 0.2      $ 0.6      $ 0.7  

Performance Chemicals

     1.9        1.1        5.6        3.1  

Oilfield Services

     2.9        2.9        8.9        8.9  

Corporate

     1.9        1.9        5.5        5.5  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 6.9      $ 6.1      $ 20.6      $ 18.2  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Earnings Per Share (Tables)
Summary of Earnings Per Share

Per share amounts are computed as follows:

 

     Three Months Ended
September 30
     Nine Months Ended
September 30
 
     2017      2016      2017      2016  

Numerator (in millions):

           

Net income available to common stockholders

   $ 23.3      $ 11.4      $ 66.6      $ 59.2  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator (in thousands):

           

Weighted average common shares outstanding

     24,137        23,977        24,119        23,989  

Dilutive effect of stock options and awards

     428        499        450        473  
  

 

 

    

 

 

    

 

 

    

 

 

 

Denominator for diluted earnings per share

     24,565        24,476        24,569        24,462  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share, basic:

   $ 0.97      $ 0.48      $ 2.76      $ 2.47  
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share, diluted:

   $ 0.95      $ 0.47      $ 2.71      $ 2.42  
  

 

 

    

 

 

    

 

 

    

 

 

 

Goodwill (Tables)
Summary of Goodwill

The following table summarizes goodwill at the balance sheet dates:

 

(in millions)

   Total  

At December 31, 2016

  

Gross cost (1)

   $ 611.3  

Accumulated impairment losses

     (236.5
  

 

 

 

Net book amount

   $ 374.8  
  

 

 

 

Acquisition adjustment

     (36.7

Exchange effect

     8.7  

At September 30, 2017

  

Gross cost (1)

   $ 583.3  

Accumulated impairment losses

     (236.5
  

 

 

 

Net book amount

   $ 346.8  
  

 

 

 

 

(1 

Gross cost for 2017 and 2016 is net of $298.5 million of historical accumulated amortization.

Other Intangible Assets (Tables)

The following table summarizes the other intangible assets movement year on year:

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Gross cost at January 1

   $ 248.6      $ 248.6  

Acquisitions

     37.7        0.0  

Internally developed software

     4.1        0.0  

Exchange effect

     4.1        0.0  
  

 

 

    

 

 

 

Gross cost at September 30

     294.5        248.6  
  

 

 

    

 

 

 

Accumulated amortization at January 1

     (104.2      (79.9

Amortization expense

     (20.6      (18.2

Exchange effect

     (0.1      0.0  
  

 

 

    

 

 

 

Accumulated amortization at September 30

     (124.9      (98.1
  

 

 

    

 

 

 

Net book amount at September 30

   $ 169.6      $ 150.5  
  

 

 

    

 

 

 

Amortization expense

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Product rights

   $ (2.8    $ (2.8

Brand names

     (0.9      (0.9

Technology

     (2.5      (2.5

Customer relationships

     (7.6      (5.1

Non-compete agreements

     (0.6      (0.7

Marketing related

     (0.7      (0.7

Internally developed software

     (5.5      (5.5
  

 

 

    

 

 

 

Total

   $ (20.6    $ (18.2
  

 

 

    

 

 

 

 

 

Pension Plans (Tables)
Defined Benefit Pension Plan
     Three Months Ended
September 30
     Nine Months Ended
September 30
 

(in millions)

   2017      2016      2017      2016  

Plan net pension credit/(charge):

           

Service cost

   $ (0.2    $ (0.2    $ (0.7    $ (0.7

Interest cost on projected benefit obligation

     (3.9      (5.0      (11.3      (16.0

Expected return on plan assets

     6.2        7.2        18.2        23.0  

Amortization of prior service credit

     0.2        0.2        0.7        0.8  

Amortization of actuarial net losses

     (1.2      (0.6      (3.7      (2.0
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1.1      $ 1.6      $ 3.2      $ 5.1  
  

 

 

    

 

 

    

 

 

    

 

 

 
Income Taxes (Tables)
Roll-Forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties

A roll-forward of unrecognized tax benefits and associated accrued interest and penalties is as follows:

 

(in millions)

   Unrecognized
Tax Benefits
     Interest and
Penalties
     Total  

Opening balance at January 1, 2017

   $ 2.2      $ 0.1      $ 2.3  

Reductions due to lapsed statute of limitations

     (0.5      0.0        (0.5
  

 

 

    

 

 

    

 

 

 

Closing balance at September 30, 2017

     1.7        0.1        1.8  

Current

     0.0        0.0        0.0  
  

 

 

    

 

 

    

 

 

 

Non-current

   $ 1.7      $ 0.1      $ 1.8  
  

 

 

    

 

 

    

 

 

 
Long-Term Debt (Tables)
Schedule of Long-Term Debt

Long-term debt consists of the following:

 

(in millions)

   September 30,
2017
     December 31,
2016
 

Revolving credit facility

   $ 121.0      $ 161.0  

Term loan

     110.0        110.0  

Deferred finance costs

     (1.7      (2.2
  

 

 

    

 

 

 
   $ 229.3      $ 268.8  

Due within one year

     (10.3      (10.3
  

 

 

    

 

 

 

Due after one year

   $ 219.0      $ 258.5  
  

 

 

    

 

 

 
Plant Closure Provisions (Tables)
Movements in Plant Closure and Restructuring Provisions

Movements in the provisions are summarized as follows:

 

     Nine Months Ended
September 30
 

(in millions)

   2017      2016  

Total at January 1

   $ 39.5      $ 37.7  

Charge for the period

     4.4        3.5  

Utilized in the period

     (1.7      (2.1

Exchange effect

     0.5        0.1  
  

 

 

    

 

 

 

Total at September 30

     42.7        39.2  

Due within one year

     (5.9      (5.0
  

 

 

    

 

 

 

Due after one year

   $ 36.8      $ 34.2  
  

 

 

    

 

 

 
Fair Value Measurements (Tables)
Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis

The following table presents the carrying amount and fair values of the Company’s assets and liabilities measured on a recurring basis:

 

     September 30, 2017      December 31, 2016  

(in millions)

   Carrying
Amount
     Fair
Value
     Carrying
Amount
     Fair
Value
 

Assets

           

Non-derivatives:

           

Cash and cash equivalents

   $ 65.5      $ 65.5      $ 101.9      $ 101.9  

Derivatives (Level 1 measurement):

           

Other current and non-current assets:

           

Foreign currency forward exchange contracts

     2.0        2.0        0.0        0.0  

Interest rate swaps

     0.6        0.6        0.4        0.4  

Liabilities

           

Non-derivatives:

           

Long-term debt (including current portion)

   $ 229.3      $ 229.3      $ 268.8      $ 268.8  

Finance leases (including current portion)

     5.8        5.8        4.5        4.5  

Derivatives (Level 1 measurement):

           

Other non-current liabilities:

           

Foreign currency forward exchange contracts

     0.0        0.0        0.6        0.6  

Non-financial liabilities (Level 3 measurement):

           

Stock equivalent units

     11.4        11.4        9.8        9.8  
Stock-Based Compensation Plans (Tables)

The following table summarizes the transactions of the Company’s stock option plans for the nine months ended September 30, 2017:

 

     Number of
Options
     Weighted
Average
Exercise
Price
     Weighted
Average
Grant-Date

Fair Value
 

Outstanding at December 31, 2016

     570,994      $ 20.38      $ 21.68  

Granted - at discount

     79,664      $ 0.00      $ 61.39  

- at market value

     18,843      $ 70.60      $ 16.84  

Exercised

     (83,255    $ 12.56      $ 23.86  

Forfeited

     (3,805    $ 15.91      $ 22.47  
  

 

 

       

Outstanding at September 30, 2017

     582,441      $ 20.64      $ 26.68  
  

 

 

       

 

The following table summarizes the transactions of the Company’s SEUs for the nine months ended September 30, 2017:

 

     Number
of SEUs
     Weighted
Average
Exercise
Price
     Weighted
Average
Grant-Date
Fair Value
 

Outstanding at December 31, 2016

     279,815      $ 3.77      $ 33.40  

Granted - at discount

     180,249      $ 0.00      $ 62.76  

- at market value

     5,530      $ 70.60      $ 16.84  

Exercised

     (34,054    $ 5.47      $ 27.09  

Forfeited

     (16,075    $ 0.00      $ 33.77  
  

 

 

       

Outstanding at September 30, 2017

     415,465      $ 3.03      $ 46.41  
  

 

 

       

 

Reclassifications out of Accumulated Other Comprehensive Loss (Tables)

Reclassifications out of accumulated other comprehensive loss for the first nine months of 2017 were:

 

(in millions)

Details about AOCL Components

   Amount
Reclassified
from AOCL
    

Affected Line Item in the

Statement where

Net Income is Presented

Foreign currency translation items:

     

Liquidation of subsidiary

   $ 1.8      Loss on liquidation of subsidiary

Defined benefit pension plan items:

     

Amortization of prior service credit

   $ (0.7    See (¹) below

Amortization of actuarial net losses

     3.7      See (¹) below
  

 

 

    
     4.8      Total before tax
     (0.5    Income tax expense
  

 

 

    

Total reclassifications

   $ 4.3      Net of tax
  

 

 

    

 

(1)

These items are included in the computation of net periodic pension cost. See Note 6 of the Notes to the Condensed Consolidated Financial Statements for additional information.

 

Changes in accumulated other comprehensive loss for the first nine months of 2017, net of tax, were:

 

(in millions)

   Derivative
instruments
     Defined
Benefit
Pension
Plan Items
     Cumulative
Translation
Adjustments
     Total  

Balance at December 31, 2016

   $ 0.3      $ (46.0    $ (80.5    $ (126.2
  

 

 

    

 

 

    

 

 

    

 

 

 

Other comprehensive income before reclassifications

     0.2        0.0        30.7        30.9  

Amounts reclassified from AOCL

     0.0        2.5        0.0        2.5  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total other comprehensive income

     0.2        2.5        30.7        33.4  
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance at September 30, 2017

   $ 0.5      $ (43.5    $ (49.8    $ (92.8
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Reporting - Additional Information (Detail)
9 Months Ended
Sep. 30, 2017
Segment
Segment Reporting [Abstract]
 
Number of reportable segments
Segment Reporting - Segment Reporting (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 332.4 
$ 205.5 
$ 953.0 
$ 645.6 
Gross profit
98.8 
79.2 
294.8 
240.9 
Adjustment to fair value of contingent consideration
2.3 
6.3 
Loss on disposal of subsidiary
(1.0)
(1.4)
Foreign exchange loss on liquidation of subsidiary
(1.8)
Operating income
30.2 
18.9 
91.3 
73.1 
Operating Segments [Member] |
Fuel Specialties [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
130.1 
114.4 
377.8 
367.1 
Gross profit
44.6 
43.8 
135.9 
129.5 
Operating income
24.9 
24.1 
75.5 
72.2 
Operating Segments [Member] |
Fuel Specialties [Member] |
Refinery and Performance [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
97.4 
89.8 
286.5 
281.7 
Operating Segments [Member] |
Fuel Specialties [Member] |
Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
32.7 
24.6 
91.3 
85.4 
Operating Segments [Member] |
Performance Chemicals [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
110.3 
36.8 
309.7 
106.8 
Gross profit
20.7 
12.3 
54.8 
34.4 
Operating income
9.7 
4.2 
22.2 
13.3 
Operating Segments [Member] |
Performance Chemicals [Member] |
Personal Care [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
52.2 
33.7 
148.4 
97.7 
Operating Segments [Member] |
Performance Chemicals [Member] |
Home Care [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
32.7 
0.5 
89.0 
1.4 
Operating Segments [Member] |
Performance Chemicals [Member] |
Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
25.4 
2.6 
72.3 
7.7 
Operating Segments [Member] |
Oilfield Services [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
81.9 
49.7 
224.5 
132.4 
Gross profit
28.5 
20.6 
82.9 
52.1 
Operating income
1.8 
8.5 
(7.1)
Operating Segments [Member] |
Octane Additives [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
10.1 
4.6 
41.0 
39.3 
Gross profit
5.0 
2.5 
21.2 
24.9 
Operating income
4.4 
1.9 
19.2 
22.5 
Corporate, Non-Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Pension credit
1.1 
1.6 
3.2 
5.1 
Corporate costs
(11.7)
(15.2)
(34.5)
(37.8)
Segment Reconciling Items [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Loss on disposal of subsidiary
$ 0 
$ 0 
$ (1.0)
$ (1.4)
Segment Reporting - Summary of Segment Depreciation and Amortization (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
$ 5.6 
$ 3.5 
$ 16.1 
$ 10.1 
Amortization
6.9 
6.1 
20.6 
18.2 
Operating Segments [Member] |
Fuel Specialties [Member]
 
 
 
 
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
1.0 
0.9 
3.0 
2.8 
Amortization
0.2 
0.2 
0.6 
0.7 
Operating Segments [Member] |
Performance Chemicals [Member]
 
 
 
 
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
2.5 
0.5 
7.0 
1.6 
Amortization
1.9 
1.1 
5.6 
3.1 
Operating Segments [Member] |
Oilfield Services [Member]
 
 
 
 
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
1.6 
1.7 
4.8 
4.6 
Amortization
2.9 
2.9 
8.9 
8.9 
Operating Segments [Member] |
Octane Additives [Member]
 
 
 
 
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
0.2 
0.1 
0.6 
0.4 
Corporate, Non-Segment [Member]
 
 
 
 
Summary of segment depreciation and amortization
 
 
 
 
Depreciation
0.3 
0.3 
0.7 
0.7 
Amortization
$ 1.9 
$ 1.9 
$ 5.5 
$ 5.5 
Earnings Per Share - Summary of Earnings Per Share (Detail) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Numerator (in millions):
 
 
 
 
Net income available to common stockholders
$ 23.3 
$ 11.4 
$ 66.6 
$ 59.2 
Denominator (in thousands):
 
 
 
 
Weighted average common shares outstanding
24,137 
23,977 
24,119 
23,989 
Dilutive effect of stock options and awards
428 
499 
450 
473 
Denominator for diluted earnings per share
24,565 
24,476 
24,569 
24,462 
Net income per share, basic:
$ 0.97 
$ 0.48 
$ 2.76 
$ 2.47 
Net income per share, diluted:
$ 0.95 
$ 0.47 
$ 2.71 
$ 2.42 
Earnings Per Share - Additional Information (Detail)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Earnings Per Share [Abstract]
 
 
 
 
Average number of anti-dilutive options excluded from the calculation of diluted earnings per share
18,843 
18,843 
Goodwill - Summary of Goodwill (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
Gross cost, beginning balance
$ 611.3 
Accumulated impairment losses, beginning balance
(236.5)
Net book amount, beginning balance
374.8 
Acquisition adjustment
(36.7)
Exchange effect
8.7 
Gross cost, ending balance
583.3 
Accumulated impairment losses, ending balance
(236.5)
Net book amount, ending balance
$ 346.8 
Goodwill - Summary of Goodwill (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Historical accumulated amortization
$ 298.5 
$ 298.5 
Goodwill - Additional Information (Detail) (Huntsman [Member], USD $)
0 Months Ended 3 Months Ended 9 Months Ended
Dec. 30, 2016
Sep. 30, 2017
Sep. 30, 2017
Huntsman [Member]
 
 
 
Goodwill [Line Items]
 
 
 
Business acquisition, consideration transferred
$ 200,200,000 
 
 
Decrease in goodwill
 
 
36,700,000 
Final working capital adjustments
 
2,600,000 
 
Goodwill amortizable for tax purpose
 
 
$ 0 
Other Intangible Assets - Summary of Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
 
Gross cost at January 1
 
 
$ 248.6 
$ 248.6 
 
Acquisitions
 
 
37.7 
 
Internally developed software
 
 
4.1 
 
Exchange effect
 
 
4.1 
 
Gross cost at September 30
294.5 
248.6 
294.5 
248.6 
 
Accumulated amortization at January 1
 
 
(104.2)
(79.9)
 
Amortization expense
(6.9)
(6.1)
(20.6)
(18.2)
 
Exchange effect
 
 
(0.1)
 
Accumulated amortization at September 30
(124.9)
(98.1)
(124.9)
(98.1)
 
Net book amount at September 30
$ 169.6 
$ 150.5 
$ 169.6 
$ 150.5 
$ 144.4 
Other Intangible Assets - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Mar. 31, 2017
Huntsman [Member]
Customer Relationships [Member]
Aug. 9, 2017
Huntsman Holland B.V. [Member]
Customer and Distributor [Member]
Americas and Asia Pacific [Member]
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Intangible assets acquired in business combination
 
 
$ 33.5 
 
Cash paid for acquisition
$ 4.2 
$ 0 
 
$ 4.2 
Other Intangible Assets - Schedule of Amortization Expense (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
$ (6.9)
$ (6.1)
$ (20.6)
$ (18.2)
Product Rights [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(2.8)
(2.8)
Brand Names [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(0.9)
(0.9)
Technology [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(2.5)
(2.5)
Customer Relationships [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(7.6)
(5.1)
Non-Compete Agreements [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(0.6)
(0.7)
Marketing Related [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
(0.7)
(0.7)
Internally Developed Software [Member]
 
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization expense
 
 
$ (5.5)
$ (5.5)
Pension Plans - Plan Net Pension Credit (Detail) (United Kingdom [Member], Foreign Pension Plan [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
United Kingdom [Member] |
Foreign Pension Plan [Member]
 
 
 
 
Plan net pension credit/(charge):
 
 
 
 
Service cost
$ (0.2)
$ (0.2)
$ (0.7)
$ (0.7)
Interest cost on projected benefit obligation
(3.9)
(5.0)
(11.3)
(16.0)
Expected return on plan assets
6.2 
7.2 
18.2 
23.0 
Amortization of prior service credit
0.2 
0.2 
0.7 
0.8 
Amortization of actuarial net losses
(1.2)
(0.6)
(3.7)
(2.0)
Net pension credit total
$ 1.1 
$ 1.6 
$ 3.2 
$ 5.1 
Pension Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Sep. 30, 2017
Germany [Member]
Foreign Pension Plan [Member]
Sep. 30, 2016
Germany [Member]
Foreign Pension Plan [Member]
Sep. 30, 2017
Germany [Member]
Foreign Pension Plan [Member]
Sep. 30, 2016
Germany [Member]
Foreign Pension Plan [Member]
Sep. 30, 2017
Europe [Member]
Foreign Pension Plan [Member]
Performance Chemicals [Member]
Dec. 31, 2016
Europe [Member]
Foreign Pension Plan [Member]
Performance Chemicals [Member]
Defined Benefit Plan Disclosure [Line Items]
 
 
 
 
 
 
 
 
Net pension charge
 
 
$ 0.1 
$ 0.2 
$ 0.5 
$ 0.6 
 
 
Pension obligations European businesses
$ 16.5 
$ 14.2 
 
 
 
 
$ 4.7 
$ 4.1 
Income Taxes - Roll-Forward of Unrecognized Tax Benefits and Associated Accrued Interest and Penalties (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Income Tax Contingency [Line Items]
 
 
Opening balance at January 1
$ 2.3 
 
Reductions due to lapsed statute of limitations
(0.5)
 
Closing balance at September 30
1.8 
 
Current
 
Non-current
1.8 
2.3 
Unrecognized Tax Benefits [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Opening balance at January 1
2.2 
 
Reductions due to lapsed statute of limitations
(0.5)
 
Closing balance at September 30
1.7 
 
Current
 
Non-current
1.7 
 
Interest and Penalties [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Opening balance at January 1
0.1 
 
Reductions due to lapsed statute of limitations
 
Closing balance at September 30
0.1 
 
Current
 
Non-current
$ 0.1 
 
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2017
Dec. 31, 2016
Income Tax Contingency [Line Items]
 
 
Income tax examination, description
The Company and its U.S. subsidiaries remain open to examination by the IRS for years 2014 onwards. The Company's subsidiaries in foreign tax jurisdictions are open to examination including France (2014 onwards), Germany (2015 onwards), Switzerland (2015 onwards) and the United Kingdom (2015 onwards). 
 
Unremitted earnings
 
$ 788 
France [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2014 
 
Germany [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2015 
 
Switzerland [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2015 
 
United Kingdom [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2015 
 
Italy [Member] |
Earliest Tax Year [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2011 
 
Italy [Member] |
Latest Tax Year [Member]
 
 
Income Tax Contingency [Line Items]
 
 
Open tax year
2013 
 
Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Deferred finance costs
$ (1.7)
$ (2.2)
Long-term debt
229.3 
268.8 
Due within one year
(10.3)
(10.3)
Due after one year
219.0 
258.5 
Term Loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
110.0 
110.0 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
$ 121.0 
$ 161.0 
Plant Closure Provisions - Movements in Plant Closure and Restructuring Provisions (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2016
Restructuring and Related Activities [Abstract]
 
 
 
Beginning Balance
$ 39.5 
$ 37.7 
 
Charge for the period
4.4 
3.5 
 
Utilized in the period
(1.7)
(2.1)
 
Exchange effect
0.5 
0.1 
 
Ending Balance
42.7 
39.2 
 
Due within one year
(5.9)
(5.0)
(6.7)
Due after one year
$ 36.8 
$ 34.2 
$ 32.8 
Fair Value Measurements - Carrying Amount and Fair Values of the Company's Assets and Liabilities Measured on a Recurring Basis (Detail) (Recurring [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2017
Dec. 31, 2016
Carrying Amount [Member]
 
 
Non-derivatives:
 
 
Cash and cash equivalents
$ 65.5 
$ 101.9 
Non-derivatives:
 
 
Long-term debt (including current portion)
229.3 
268.8 
Finance leases (including current portion)
5.8 
4.5 
Carrying Amount [Member] |
Derivatives (Level 1 Measurement) [Member] |
Interest Rate Swaps [Member]
 
 
Derivatives (Level 1 measurement):
 
 
Derivative asset
0.6 
0.4 
Carrying Amount [Member] |
Derivatives (Level 1 Measurement) [Member] |
Foreign Currency Forward Exchange Contracts [Member]
 
 
Derivatives (Level 1 measurement):
 
 
Derivative asset
2.0 
Derivatives (Level 1 measurement):
 
 
Foreign currency forward exchange contracts
0.6 
Carrying Amount [Member] |
Non-financial Assets and Liabilities (Level 3 Measurement) [Member]
 
 
Non-financial liabilities (Level 3 measurement):
 
 
Stock equivalent units
11.4 
9.8 
Fair Value [Member]