At December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at beginning of year | $ | 4,153 | $ | 7,573 | $ | 6,718 | |||||
Additions | 5,161 | 2,914 | 8,675 | ||||||||
Deductions | (1,741 | ) | (3,769 | ) | (7,922 | ) | |||||
Balance at end of year | $ | 7,573 | $ | 6,718 | $ | 7,471 |
Postretirement Benefits at December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of year | $ | 13,506 | $ | 19,188 | $ | 11,275 | $ | 15,645 | |||||||
Service cost | — | 105 | — | 71 | |||||||||||
Interest cost | 371 | 994 | 396 | 976 | |||||||||||
Foreign currency exchange rates | — | (2,183 | ) | — | (1,437 | ) | |||||||||
Actuarial loss (gain) | (1,284 | ) | (1,365 | ) | 1,151 | 1,511 | |||||||||
Gross benefits paid | (1,318 | ) | (1,161 | ) | (1,236 | ) | (1,068 | ) | |||||||
Plan amendment | — | 67 | — | (294 | ) | ||||||||||
Net benefit obligation at end of year | $ | 11,275 | $ | 15,645 | $ | 11,586 | $ | 15,404 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 1,318 | 1,161 | 1,236 | 1,068 | |||||||||||
Gross benefits paid | (1,318 | ) | (1,161 | ) | (1,236 | ) | (1,068 | ) | |||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (11,275 | ) | $ | (15,645 | ) | $ | (11,586 | ) | $ | (15,404 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | 1,882 | $ | — | $ | 1,554 | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,279 | ) | $ | (1,035 | ) | $ | (1,204 | ) | $ | (953 | ) | |||
Non-current liabilities | (9,996 | ) | (14,610 | ) | (10,382 | ) | (14,451 | ) | |||||||
Net amount recognized | $ | (11,275 | ) | $ | (15,645 | ) | $ | (11,586 | ) | $ | (15,404 | ) |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Outstanding unvested at December 31, 2013 | 1,633,491 | $ | 10.98 | |||
Granted | 1,466,919 | 5.19 | ||||
Vested | (411,062 | ) | 12.50 | |||
Forfeited/canceled/expired | (875,218 | ) | 10.25 | |||
Outstanding at December 31, 2014 | 1,814,130 | $ | 6.31 |
For the Year Ended December 31, 2012 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2014 | ||||||
Dividend yield | — | % | — | % | — | % | ||
Expected volatility | 55.33%-57.32% | 55.89%-57.01% | 45.42%-55.89% | |||||
Risk-free interest rate | 0.66% - 0.90% | 0.76% - 1.38% | 1.38% - 1.66% | |||||
Expected term in years | 6 years | 6 years | 6 years |
Number of Shares | Weighted- Average Exercise Price | |||||
Outstanding at December 31, 2013 | 1,916,718 | $ | 12.47 | |||
Granted | 671,939 | 5.82 | ||||
Exercised | (316,733 | ) | 8.88 | |||
Forfeited/canceled/expired | (229,850 | ) | 11.64 | |||
Outstanding at December 31, 2014 | 2,042,074 | $ | 10.93 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Prices | Number Exercisable | Weighted Average Exercise Prices | |||||||||||
$4.24 | - | $22.57 | 2,042,074 | 7.8 | $10.93 | 1,187,758 | $ | 13.94 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | — | $ | 183 | $ | — | $ | 105 | — | $ | 71 | ||||||||||||
Interest cost | 497 | 1,024 | 371 | 994 | 396 | 976 | |||||||||||||||||
Amortization of prior service credit | — | (199 | ) | — | (193 | ) | — | (180 | ) | ||||||||||||||
Plan amendment / curtailment | — | 1,170 | — | — | — | (294 | ) | ||||||||||||||||
Mark-to-market (gain) loss | 60 | 551 | (1,284 | ) | (1,210 | ) | 1,151 | 1,456 | |||||||||||||||
$ | 557 | $ | 2,729 | $ | (913 | ) | $ | (304 | ) | $ | 1,547 | $ | 2,029 |
At December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of year | $ | 151,469 | $ | 80,311 | $ | 134,787 | $ | 78,421 | |||||||
Service cost | 870 | 1,177 | 750 | 1,107 | |||||||||||
Interest cost | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||
Participant contributions | — | 342 | — | 288 | |||||||||||
Plan amendments / curtailments | — | (246 | ) | — | |||||||||||
Foreign currency exchange changes | — | 1,549 | — | (6,171 | ) | ||||||||||
Actuarial loss (gain) | (14,433 | ) | (3,257 | ) | 21,456 | 11,935 | |||||||||
Benefits paid | (8,557 | ) | (3,997 | ) | (8,608 | ) | (5,646 | ) | |||||||
Net benefit obligation at end of year | $ | 134,787 | $ | 78,421 | $ | 154,368 | $ | 82,603 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 91,319 | $ | 71,750 | $ | 90,875 | $ | 72,685 | |||||||
Actual return on plan assets | 1,979 | (517 | ) | 8,240 | 14,971 | ||||||||||
Foreign currency exchange rate changes | — | 1,404 | — | (5,479 | ) | ||||||||||
Employer contributions | 6,134 | 3,703 | 8,947 | 909 | |||||||||||
Participant contributions | — | 342 | — | 288 | |||||||||||
Actuarial loss | — | — | — | — | |||||||||||
Benefits paid | (8,557 | ) | (3,997 | ) | (8,608 | ) | (5,646 | ) | |||||||
Fair value of plan assets at end of year | $ | 90,875 | $ | 72,685 | $ | 99,454 | $ | 77,728 | |||||||
Funded status (underfunded): | $ | (43,912 | ) | $ | (5,736 | ) | $ | (54,914 | ) | $ | (4,875 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (6 | ) | $ | — | $ | (25 | ) | |||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | — | $ | — | $ | 1,365 | |||||||
Current liabilities | (440 | ) | (524 | ) | (439 | ) | (324 | ) | |||||||
Non-current liabilities | (43,472 | ) | (5,214 | ) | (54,475 | ) | (5,916 | ) | |||||||
Net amount recognized | $ | (43,912 | ) | $ | (5,738 | ) | $ | (54,914 | ) | $ | (4,875 | ) |
As of December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at January 1 | $ | 16,788 | $ | 9,769 | $ | 7,203 | |||||
Additions based on tax positions related to the current year | 90 | 881 | 268 | ||||||||
Additions for tax positions of prior years | 4,643 | 323 | 232 | ||||||||
Reductions for tax positions of prior years | (11,019 | ) | (2,779 | ) | (1,204 | ) | |||||
Lapse of statutes of limitations | (163 | ) | — | (1,180 | ) | ||||||
Settlements | (576 | ) | (988 | ) | (1,503 | ) | |||||
Foreign currency impact | 6 | (3 | ) | (106 | ) | ||||||
Balance at December 31 | $ | 9,769 | $ | 7,203 | $ | 3,710 |
Percentage of Plan Assets as of December 31, 2014 | |||||
US | Foreign | ||||
Equity securities | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Interest incurred on debt | $ | 10,172 | $ | 21,589 | $ | 21,373 | |||||
Amortization of discount on Senior Subordinated Notes | 10,742 | 11,493 | 12,298 | ||||||||
Amortization of debt issuance costs | 1,712 | 2,504 | 3,339 | ||||||||
Supply Chain Financing mark-up | 621 | 451 | 47 | ||||||||
Total interest expense | $ | 23,247 | $ | 36,037 | $ | 37,057 |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
Industrial Materials. | $ | 601,322 | $ | 552,155 | |||
Engineered Solutions | 219,663 | 101,885 | |||||
Total long-lived assets | $ | 820,985 | $ | 654,040 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 1,204 | $ | 953 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2015 | 1,204 | 953 | |||||
2016 | 1,172 | 985 | |||||
2017 | 1,124 | 990 | |||||
2018 | 1,062 | 999 | |||||
2019 | 985 | 1,007 | |||||
2020-2024 | 3,668 | 5,258 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 9,084 | $ | 974 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2015 | 8,941 | 3,826 | |||||
2016 | 9,039 | 3,835 | |||||
2017 | 9,166 | 3,918 | |||||
2018 | 9,278 | 4,145 | |||||
2019 | 9,340 | 3,904 | |||||
2020-2024 | 47,554 | 22,523 |
• | Industrial Materials includes graphite electrodes, refractory products and needle coke products, and primarily serves the steel industry. |
• | Engineered Solutions includes advanced graphite materials, advanced composite materials, advanced electronics technologies, and advanced materials and provides primary and specialty products to the advanced electronics, industrial, energy, transportation and defense markets. |
Years | ||
Buildings | 25-40 | |
Land improvements | 20 | |
Machinery and equipment | 5-20 | |
Furniture and fixtures | 5-10 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
(Dollars in Thousands) | |||
Balance at December 31, 2013 | $ | 1,050 | |
Product warranty charges/adjustments | 173 | ||
Payments and settlements | (300 | ) | |
Balance at December 31, 2014 | $ | 923 |
(Dollars in thousands) | |||
2015 | $ | 5,411 | |
2016 | 3,138 | ||
2017 | 2,607 | ||
2018 | 1,450 | ||
2019 | 1,256 | ||
After 2019 | 1,762 |
For year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Foreign currency translation adjustments | $ | 295,192 | $ | 328,233 | |||
Commodities and foreign currency derivatives and other, net of tax of ($300) and ($63), respectively | (2,568 | ) | 8,291 | ||||
Total accumulated comprehensive loss | $ | 292,624 | $ | 336,524 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4,752 | $ | 7,136 | $ | — | $ | 11,888 | ||||||||||
Accounts receivable - affiliates | 42,410 | 28,551 | 15,824 | (86,785 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 48,998 | 150,568 | — | 199,566 | |||||||||||||||
Inventories | — | 174,935 | 315,479 | — | 490,414 | |||||||||||||||
Prepaid and other current assets | — | 22,555 | 51,235 | — | 73,790 | |||||||||||||||
Total current assets | 42,410 | 279,791 | 540,242 | (86,785 | ) | 775,658 | ||||||||||||||
Investment in affiliates | 1,709,914 | 828,012 | — | (2,537,926 | ) | — | ||||||||||||||
Property, plant and equipment | — | 540,273 | 280,712 | — | 820,985 | |||||||||||||||
Deferred income taxes | — | — | 10,334 | — | 10,334 | |||||||||||||||
Goodwill | — | 293,162 | 203,648 | — | 496,810 | |||||||||||||||
Notes receivable - affiliate | 51,090 | 7,413 | — | (58,503 | ) | — | ||||||||||||||
Other assets | 4,752 | 53,447 | 55,862 | — | 114,061 | |||||||||||||||
Total Assets | $ | 1,808,166 | $ | 2,002,098 | $ | 1,090,798 | $ | (2,683,214 | ) | $ | 2,217,848 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | — | $ | 58,206 | $ | 28,579 | $ | (86,785 | ) | $ | — | |||||||||
Accounts payable - trade | — | 41,971 | 73,241 | — | 115,212 | |||||||||||||||
Short-term debt | — | 165 | 996 | — | 1,161 | |||||||||||||||
Accrued income and other taxes | 2,678 | 4,736 | 23,273 | — | 30,687 | |||||||||||||||
Rationalizations | — | 1,890 | 16,531 | — | 18,421 | |||||||||||||||
Supply chain financing liability | — | — | 9,455 | — | 9,455 | |||||||||||||||
Other accrued liabilities | 2,444 | 12,404 | 26,091 | — | 40,939 | |||||||||||||||
Total current liabilities | 5,122 | 119,372 | 178,166 | (86,785 | ) | 215,875 | ||||||||||||||
Long-term debt - affiliate | — | 51,090 | 7,413 | (58,503 | ) | — | ||||||||||||||
Long-term debt - third party | 475,675 | 50,525 | 15,393 | — | 541,593 | |||||||||||||||
Other long-term obligations | — | 66,590 | 31,357 | — | 97,947 | |||||||||||||||
Deferred income taxes | 6,620 | 4,607 | 30,457 | — | 41,684 | |||||||||||||||
Stockholders' equity | 1,320,749 | 1,709,914 | 828,012 | (2,537,926 | ) | 1,320,749 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,808,166 | $ | 2,002,098 | $ | 1,090,798 | $ | (2,683,214 | ) | $ | 2,217,848 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 | ||||||||||
Accounts receivable - affiliates | 40,474 | 35,618 | 40,185 | (116,277 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 45,861 | 117,058 | — | 162,919 | |||||||||||||||
Inventories | — | 148,080 | 234,823 | — | 382,903 | |||||||||||||||
Prepaid and other current assets | — | 17,336 | 64,287 | — | 81,623 | |||||||||||||||
Total current assets | 40,474 | 252,398 | 468,400 | (116,277 | ) | 644,995 | ||||||||||||||
Investment in affiliates | 1,414,278 | 762,251 | — | (2,176,529 | ) | — | ||||||||||||||
Property, plant and equipment | — | 431,602 | 222,438 | — | 654,040 | |||||||||||||||
Deferred income taxes | — | — | 16,819 | — | 16,819 | |||||||||||||||
Goodwill | — | 217,099 | 203,030 | — | 420,129 | |||||||||||||||
Notes receivable - affiliate | 35,722 | 7,413 | — | (43,135 | ) | — | ||||||||||||||
Other assets | 4,110 | 45,617 | 48,095 | — | 97,822 | |||||||||||||||
Total Assets | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | — | $ | 80,659 | $ | 35,618 | $ | (116,277 | ) | $ | — | |||||||||
Accounts payable - trade | 47 | 35,435 | 50,927 | — | 86,409 | |||||||||||||||
Short-term debt | 187,973 | 131 | — | — | 188,104 | |||||||||||||||
Accrued income and other taxes | 344 | 3,380 | 20,782 | — | 24,506 | |||||||||||||||
Rationalizations | — | 7,538 | 2,025 | — | 9,563 | |||||||||||||||
Supply chain financing liability | — | — | — | — | — | |||||||||||||||
Other accrued liabilities | 2,444 | 15,252 | 25,623 | — | 43,319 | |||||||||||||||
Total current liabilities | 190,808 | 142,395 | 134,975 | (116,277 | ) | 351,901 | ||||||||||||||
Long-term debt - affiliate | — | 35,722 | 7,413 | (43,135 | ) | — | ||||||||||||||
Long-term debt - third party | 300,000 | 40,393 | 1,222 | — | 341,615 | |||||||||||||||
Other long-term obligations | — | 77,724 | 29,842 | — | 107,566 | |||||||||||||||
Deferred income taxes | — | 5,118 | 23,079 | — | 28,197 | |||||||||||||||
Stockholders' equity | 1,003,776 | 1,415,028 | 762,251 | (2,176,529 | ) | 1,004,526 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 194,345 | $ | 216,859 | $ | (411,204 | ) | $ | — | |||||||||
Sales - third party | — | 566,024 | 682,240 | — | 1,248,264 | |||||||||||||||
Net sales | — | 760,369 | 899,099 | (411,204 | ) | 1,248,264 | ||||||||||||||
Cost of sales | — | 638,419 | 705,245 | (411,204 | ) | 932,460 | ||||||||||||||
Gross profit | — | 121,950 | 193,854 | — | 315,804 | |||||||||||||||
Research and development | — | 13,796 | — | — | 13,796 | |||||||||||||||
Selling and administrative expenses | — | 61,442 | 84,098 | — | 145,540 | |||||||||||||||
Operating income | — | 46,712 | 109,756 | — | 156,468 | |||||||||||||||
Other expense (income), net | — | (2,133 | ) | 1,128 | — | (1,005 | ) | |||||||||||||
Interest expense - affiliate | 3,766 | 59 | 586 | (4,411 | ) | — | ||||||||||||||
Interest expense - third party | 12,992 | 7,977 | 2,278 | — | 23,247 | |||||||||||||||
Interest income - affiliate | (59 | ) | (4,352 | ) | — | 4,411 | — | |||||||||||||
Interest income - third party | — | — | (261 | ) | — | (261 | ) | |||||||||||||
(Loss) income before income taxes | (16,699 | ) | 45,161 | 106,025 | — | ` | 134,487 | |||||||||||||
(Benefit) provision for income taxes | (5,972 | ) | 3,981 | 18,837 | — | 16,846 | ||||||||||||||
Equity in earnings of subsidiary | 128,368 | 87,188 | — | (215,556 | ) | — | ||||||||||||||
Net income | $ | 117,641 | $ | 128,368 | $ | 87,188 | $ | (215,556 | ) | $ | 117,641 | |||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net income (loss) | $ | 117,641 | $ | 128,368 | $ | 87,188 | $ | (215,556 | ) | $ | 117,641 | |||||||||
Other comprehensive (loss) income | (18,741 | ) | (18,741 | ) | (9,929 | ) | 28,670 | (18,741 | ) | |||||||||||
Comprehensive income (loss) | $ | 98,900 | $ | 109,627 | $ | 77,259 | $ | (186,886 | ) | $ | 98,900 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 220,354 | $ | 149,251 | $ | (369,605 | ) | $ | — | |||||||||
Sales - third party | — | 469,033 | 697,641 | — | 1,166,674 | |||||||||||||||
Net sales | — | 689,387 | 846,892 | (369,605 | ) | 1,166,674 | ||||||||||||||
Cost of sales | — | 584,819 | 812,394 | (369,605 | ) | 1,027,608 | ||||||||||||||
Gross profit | — | 104,568 | 34,498 | — | 139,066 | |||||||||||||||
Research and development | — | 10,437 | — | — | 10,437 | |||||||||||||||
Selling and administrative expenses | — | 40,548 | 70,495 | — | 111,043 | |||||||||||||||
Rationalizations | — | 2,732 | 17,424 | — | 20,156 | |||||||||||||||
Operating income | — | 50,851 | (53,421 | ) | — | (2,570 | ) | |||||||||||||
Other expense (income), net | — | (176 | ) | 1,874 | — | 1,698 | ||||||||||||||
Interest expense - affiliate | — | 1,364 | 670 | (2,034 | ) | — | ||||||||||||||
Interest expense - third party | 31,294 | 3,029 | 1,714 | — | 36,037 | |||||||||||||||
Interest income - affiliate | (1,233 | ) | (670 | ) | (131 | ) | 2,034 | — | ||||||||||||
Interest income - third party | — | — | (203 | ) | — | (203 | ) | |||||||||||||
(Loss) income before income taxes | (30,061 | ) | 47,304 | (57,345 | ) | — | ` | (40,102 | ) | |||||||||||
(Benefit) provision for income taxes | (10,659 | ) | 9,111 | (11,295 | ) | — | (12,843 | ) | ||||||||||||
Equity in earnings of subsidiary | (7,857 | ) | (46,050 | ) | — | 53,907 | — | |||||||||||||
Net income | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net (loss) income | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Other comprehensive (loss) income | (11,946 | ) | (11,946 | ) | (13,601 | ) | 25,547 | (11,946 | ) | |||||||||||
Comprehensive income (loss) | $ | (39,205 | ) | $ | (19,803 | ) | $ | (59,651 | ) | $ | 79,454 | $ | (39,205 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 263,742 | $ | 150,346 | $ | (414,088 | ) | $ | — | |||||||||
Sales - third party | — | 422,991 | 662,313 | — | 1,085,304 | |||||||||||||||
Net sales | — | 686,733 | 812,659 | (414,088 | ) | 1,085,304 | ||||||||||||||
Cost of sales | — | 630,031 | 777,114 | (414,088 | ) | 993,057 | ||||||||||||||
Gross profit | — | 56,702 | 35,545 | — | 92,247 | |||||||||||||||
Research and development | — | 14,844 | — | — | 14,844 | |||||||||||||||
Selling and administrative expenses | — | 55,454 | 68,724 | — | 124,178 | |||||||||||||||
Impairments | — | 186,552 | 10,668 | 197,220 | ||||||||||||||||
Rationalizations | — | 9,109 | 2,516 | — | 11,625 | |||||||||||||||
Operating income | — | (209,257 | ) | (46,363 | ) | — | (255,620 | ) | ||||||||||||
Other expense (income), net | — | 1,575 | 870 | — | 2,445 | |||||||||||||||
Interest expense - affiliate | — | 806 | — | (806 | ) | — | ||||||||||||||
Interest expense - third party | 32,118 | 4,037 | 902 | — | 37,057 | |||||||||||||||
Interest income - affiliate | (806 | ) | — | — | 806 | — | ||||||||||||||
Interest income - third party | — | (11 | ) | (319 | ) | — | (330 | ) | ||||||||||||
(Loss) income before income taxes | (31,312 | ) | (215,664 | ) | (47,816 | ) | — | ` | (294,792 | ) | ||||||||||
(Benefit) provision for income taxes | 3,319 | (5,618 | ) | (7,117 | ) | — | (9,416 | ) | ||||||||||||
Equity in earnings of subsidiary | (251,495 | ) | (40,699 | ) | — | 292,194 | — | |||||||||||||
Net income | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net income | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Other comprehensive income: | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive (loss) income | $ | (330,026 | ) | $ | (294,645 | ) | $ | (69,349 | ) | $ | 364,744 | $ | (329,276 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (9,474 | ) | $ | 79,864 | $ | 50,513 | $ | — | $ | 120,903 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 6,604 | — | — | (6,604 | ) | — | |||||||||||||
Capital expenditures | — | (58,926 | ) | (26,055 | ) | — | (84,981 | ) | |||||||||||
Insurance recoveries | — | — | 2,834 | — | 2,834 | ||||||||||||||
Proceeds (payments) for derivatives | — | (2,195 | ) | 170 | — | (2,025 | ) | ||||||||||||
Proceeds from fixed asset sales | — | 1,700 | 3,342 | 5,042 | |||||||||||||||
Other | — | — | 178 | — | 178 | ||||||||||||||
Net cash provided by (used in) investing activities | 6,604 | (59,421 | ) | (19,531 | ) | (6,604 | ) | (78,952 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (6,604 | ) | — | 6,604 | — | |||||||||||||
Short-term debt borrowings | — | (34 | ) | (987 | ) | — | (1,021 | ) | |||||||||||
Revolving Facility borrowings | — | 183,000 | 86,000 | — | 269,000 | ||||||||||||||
Revolving Facility reductions | — | (193,000 | ) | (100,000 | ) | — | (293,000 | ) | |||||||||||
Principal payments on long term debt | — | (132 | ) | (60 | ) | — | (192 | ) | |||||||||||
Supply chain financing | — | — | (9,455 | ) | — | (9,455 | ) | ||||||||||||
Proceeds from exercise of stock options | 2,813 | — | — | — | 2,813 | ||||||||||||||
Purchase of treasury shares | (894 | ) | — | — | — | (894 | ) | ||||||||||||
Refinancing fees and debt issuance costs | — | (2,922 | ) | (357 | ) | — | (3,279 | ) | |||||||||||
Other | 951 | — | — | — | 951 | ||||||||||||||
Net cash (used in) provided by financing activities | 2,870 | (19,692 | ) | (24,859 | ) | 6,604 | (35,077 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | — | 751 | 6,123 | — | 6,874 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,212 | ) | — | (1,212 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,752 | 7,136 | — | 11,888 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 |
• | Level 1 – based upon quoted prices for identical instruments in active markets, |
• | Level 2 – based upon quoted prices for similar instruments, prices for identical or similar instruments in markets that are not active, or model-derived valuations of all of whose significant inputs are observable, and |
• | Level 3 – based upon one or more significant unobservable inputs. |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2013 | (Dollars in Thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 772 | Other current liabilities | $ | 1,185 | |||||
Commodity derivative contracts | Prepaid and other current assets | 834 | Other current liabilities | — | |||||||
Total fair value | $ | 1,606 | $ | 1,185 | |||||||
As of December 31, 2014 | |||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 722 | Other current liabilities | $ | 1,234 | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 7,067 | |||||||
Total fair value | $ | 722 | $ | 8,301 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2013 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 328 | Other current liabilities | $ | 24 | |||||
Total fair value | $ | 328 | $ | 24 | |||||||
As of December 31, 2014 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 80 | Other current liabilities | $ | 428 | |||||
Total fair value | $ | 80 | $ | 428 |
Amount of (Gain)/Loss Recognized (Effective Portion) | ||||||||||
Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion) | 2013 | 2014 | ||||||||
(Dollars in Thousands) | ||||||||||
Derivatives designated as cash flow hedges: | ||||||||||
Foreign currency derivatives, excluding tax of $(145) and $85, respectively | Cost of goods sold/Other expense / (income) / Revenue | $ | 1,445 | $ | (849 | ) | ||||
Commodity forward derivatives, excluding tax of $(25) and $(120), respectively | Cost of goods sold / Revenue | $ | 70 | $ | 328 | |||||
Amount of (Gain)/Loss Recognized | ||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Income | 2013 | 2014 | ||||||||
(Dollars in thousands) | ||||||||||
Derivatives not designated as hedges: | ||||||||||
Foreign currency derivatives | Cost of goods sold/Other expense (income) | $ | (1,123 | ) | $ | 1,020 |
At December 31, | ||||||||
2012 | 2013 | 2014 | ||||||
(Dollars in thousands) | ||||||||
Weighted average common shares outstanding for basic calculation | 138,551,804 | 135,067,278 | 136,155,295 | |||||
Add: Effect of stock options and restricted stock | 1,148,300 | — | — | |||||
Weighted average common shares outstanding for diluted calculation | 139,700,104 | 135,067,278 | 136,155,295 |
Total | |||
(Dollars in Thousands) | |||
Balance as of December 31, 2012 | $ | 498,261 | |
Translation effect | (1,451 | ) | |
Balance as of December 31, 2013 | 496,810 | ||
Impairment | (76,063 | ) | |
Translation effect | (618 | ) | |
Balance as of December 31, 2014 | $ | 420,129 |
2013 | 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||
Trade name | 7,900 | (3,944 | ) | 3,956 | 7,900 | (4,817 | ) | 3,083 | |||||||||||||||
Technology and know-how | 43,349 | (18,582 | ) | 24,767 | 43,349 | (24,940 | ) | 18,409 | |||||||||||||||
Customer related intangible | 110,798 | (44,664 | ) | 66,134 | 110,798 | (57,192 | ) | 53,606 | |||||||||||||||
Total finite-lived intangible assets | $ | 162,047 | $ | (67,190 | ) | $ | 94,857 | $ | 162,047 | $ | (86,949 | ) | $ | 75,098 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
U.S. | $ | 29,422 | $ | 8,495 | $ | (255,043 | ) | ||||
Non-U.S. | 105,065 | (48,597 | ) | (39,749 | ) | ||||||
$ | 134,487 | $ | (40,102 | ) | $ | (294,792 | ) |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
U.S income taxes: | |||||||||||
Current | $ | (6,529 | ) | $ | 4,104 | $ | (1,762 | ) | |||
Deferred | 4,543 | (5,652 | ) | (537 | ) | ||||||
(1,986 | ) | (1,548 | ) | (2,299 | ) | ||||||
Non-U.S. income taxes: | |||||||||||
Current | 12,371 | 5,422 | 8,349 | ||||||||
Deferred | 6,461 | (16,717 | ) | (15,466 | ) | ||||||
18,832 | (11,295 | ) | (7,117 | ) | |||||||
Total income tax expense (benefit) | $ | 16,846 | $ | (12,843 | ) | $ | (9,416 | ) |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Tax at statutory U.S. federal rate | $ | 47,071 | $ | (14,036 | ) | $ | (103,177 | ) | |||
U.S. valuation allowance, net | (1,800 | ) | (700 | ) | 73,350 | ||||||
State taxes, net of federal tax benefit | 593 | (371 | ) | (4,387 | ) | ||||||
U.S. tax return adjustments to estimated taxes | 588 | (1,032 | ) | (368 | ) | ||||||
Establishment (resolution) of uncertain tax positions | (8,118 | ) | (752 | ) | (513 | ) | |||||
Adjustment for foreign income taxed at different rates | (15,553 | ) | 6,832 | 7,376 | |||||||
U.S. tax credits | (2,200 | ) | (2,577 | ) | (1,000 | ) | |||||
Non-U.S. tax exemptions, holidays and credits | (4,259 | ) | — | — | |||||||
Goodwill impairment | — | — | 17,161 | ||||||||
Capital loss expiration | — | — | 2,422 | ||||||||
Other | 524 | (207 | ) | (280 | ) | ||||||
Total income tax (benefit) expense | $ | 16,846 | $ | (12,843 | ) | $ | (9,416 | ) |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 41,604 | $ | 43,204 | |||
Foreign tax credit and other carryforwards | 46,283 | 64,214 | |||||
Capitalized research and experimental costs | 20,243 | 23,446 | |||||
Environmental reserves | 3,503 | 3,366 | |||||
Inventory adjustments | 16,255 | 19,568 | |||||
Capital loss | 2,697 | 272 | |||||
Long-term contract option amortization | — | 2,214 | |||||
Provision for rationalization charges | 17,410 | 17,255 | |||||
Other | 5,889 | 6,288 | |||||
Total gross deferred tax assets | 153,884 | 179,827 | |||||
Less: valuation allowance | (20,411 | ) | (95,721 | ) | |||
Total deferred tax assets | 133,473 | 84,106 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 109,824 | $ | 59,292 | |||
Debt discount amortization | 6,620 | 3,301 | |||||
Inventory | 9,212 | 6,865 | |||||
Goodwill and acquired intangibles | 10,813 | 1,046 | |||||
Other | 2,204 | 3,761 | |||||
Total deferred tax liabilities | 138,673 | 74,265 | |||||
Net deferred tax (liability) asset | $ | (5,200 | ) | $ | 9,841 |
For the year ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at January 1 | $ | 25,509 | $ | 26,312 | $ | 20,411 | |||||
(Credited) / charged to income | (1,800 | ) | (614 | ) | 74,157 | ||||||
Translation adjustment | (52 | ) | (746 | ) | (800 | ) | |||||
Changes attributable to movement in underlying assets | 2,655 | (4,541 | ) | 1,953 | |||||||
Balance at December 31 | $ | 26,312 | $ | 20,411 | $ | 95,721 |
As of December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at January 1 | $ | 16,788 | $ | 9,769 | $ | 7,203 | |||||
Additions based on tax positions related to the current year | 90 | 881 | 268 | ||||||||
Additions for tax positions of prior years | 4,643 | 323 | 232 | ||||||||
Reductions for tax positions of prior years | (11,019 | ) | (2,779 | ) | (1,204 | ) | |||||
Lapse of statutes of limitations | (163 | ) | — | (1,180 | ) | ||||||
Settlements | (576 | ) | (988 | ) | (1,503 | ) | |||||
Foreign currency impact | 6 | (3 | ) | (106 | ) | ||||||
Balance at December 31 | $ | 9,769 | $ | 7,203 | $ | 3,710 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Interest incurred on debt | $ | 10,172 | $ | 21,589 | $ | 21,373 | |||||
Amortization of discount on Senior Subordinated Notes | 10,742 | 11,493 | 12,298 | ||||||||
Amortization of debt issuance costs | 1,712 | 2,504 | 3,339 | ||||||||
Supply Chain Financing mark-up | 621 | 451 | 47 | ||||||||
Total interest expense | $ | 23,247 | $ | 36,037 | $ | 37,057 |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Revolving Facility | $ | 64,000 | $ | 40,000 | |||
Senior Notes | 300,000 | 300,000 | |||||
Senior Subordinated Notes | 175,675 | — | |||||
Other debt | 1,918 | 1,615 | |||||
Total Long-Term Debt | $ | 541,593 | $ | 341,615 |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Senior Subordinated Notes | — | 187,973 | |||||
Other debt | 1,161 | 131 | |||||
Total Short-Term Debt | $ | 1,161 | $ | 188,104 |
• | Industrial Materials includes graphite electrodes, refractory products and needle coke products, and primarily serves the steel industry. |
• | Engineered Solutions includes advanced graphite materials, advanced composite materials, advanced electronics technologies, and advanced materials and provides primary and specialty products to the advanced electronics, industrial, energy, transportation and defense markets. |
(Dollars in thousands) | |||
2015 | $ | 5,411 | |
2016 | 3,138 | ||
2017 | 2,607 | ||
2018 | 1,450 | ||
2019 | 1,256 | ||
After 2019 | 1,762 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 610 | $ | 1,095 | $ | 870 | $ | 1,177 | $ | 750 | $ | 1,107 | |||||||||||
Interest cost | 6,114 | 2,532 | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||||||||
Expected return on assets | (6,520 | ) | (2,299 | ) | (4,505 | ) | (2,339 | ) | (5,215 | ) | (2,516 | ) | |||||||||||
Amortization of prior service cost | — | 24 | — | 25 | — | 2 | |||||||||||||||||
Curtailment gain | — | — | — | — | — | (28 | ) | ||||||||||||||||
Mark-to-market loss (gain) | 6,572 | 1,662 | (11,907 | ) | (393 | ) | 18,431 | (534 | ) | ||||||||||||||
$ | 6,776 | $ | 3,014 | $ | (10,104 | ) | $ | 1,012 | $ | 19,949 | $ | 700 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | (24 | ) | $ | — | $ | (25 | ) | $ | — | $ | (26 | ) | ||||||||
Addition to prior service cost | — | — | — | (246 | ) | — | — | ||||||||||||||||
Effect of exchange rates | — | 3 | — | 11 | — | 8 | |||||||||||||||||
Total recognized in other comprehensive loss | $ | — | $ | (21 | ) | $ | — | $ | (260 | ) | $ | — | $ | (18 | ) | ||||||||
Total recognized in pension costs and other comprehensive loss | $ | 6,776 | $ | 2,993 | $ | (10,104 | ) | $ | 752 | $ | 19,949 | $ | 682 |
At December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of year | $ | 151,469 | $ | 80,311 | $ | 134,787 | $ | 78,421 | |||||||
Service cost | 870 | 1,177 | 750 | 1,107 | |||||||||||
Interest cost | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||
Participant contributions | — | 342 | — | 288 | |||||||||||
Plan amendments / curtailments | — | (246 | ) | — | |||||||||||
Foreign currency exchange changes | — | 1,549 | — | (6,171 | ) | ||||||||||
Actuarial loss (gain) | (14,433 | ) | (3,257 | ) | 21,456 | 11,935 | |||||||||
Benefits paid | (8,557 | ) | (3,997 | ) | (8,608 | ) | (5,646 | ) | |||||||
Net benefit obligation at end of year | $ | 134,787 | $ | 78,421 | $ | 154,368 | $ | 82,603 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 91,319 | $ | 71,750 | $ | 90,875 | $ | 72,685 | |||||||
Actual return on plan assets | 1,979 | (517 | ) | 8,240 | 14,971 | ||||||||||
Foreign currency exchange rate changes | — | 1,404 | — | (5,479 | ) | ||||||||||
Employer contributions | 6,134 | 3,703 | 8,947 | 909 | |||||||||||
Participant contributions | — | 342 | — | 288 | |||||||||||
Actuarial loss | — | — | — | — | |||||||||||
Benefits paid | (8,557 | ) | (3,997 | ) | (8,608 | ) | (5,646 | ) | |||||||
Fair value of plan assets at end of year | $ | 90,875 | $ | 72,685 | $ | 99,454 | $ | 77,728 | |||||||
Funded status (underfunded): | $ | (43,912 | ) | $ | (5,736 | ) | $ | (54,914 | ) | $ | (4,875 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (6 | ) | $ | — | $ | (25 | ) | |||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | — | $ | — | $ | 1,365 | |||||||
Current liabilities | (440 | ) | (524 | ) | (439 | ) | (324 | ) | |||||||
Non-current liabilities | (43,472 | ) | (5,214 | ) | (54,475 | ) | (5,916 | ) | |||||||
Net amount recognized | $ | (43,912 | ) | $ | (5,738 | ) | $ | (54,914 | ) | $ | (4,875 | ) |
December 31, 2013 | December 31, 2014 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,597 | — | — | $ | 2,597 | $ | 906 | — | — | $ | 906 | |||||||||||||||||||
Collective trusts | — | 88,278 | — | 88,278 | — | $ | 98,548 | — | 98,548 | ||||||||||||||||||||||
Total | $ | 2,597 | 88,278 | — | $ | 90,875 | $ | 906 | $ | 98,548 | — | $ | 99,454 | ||||||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,549 | — | — | $ | 2,549 | $ | 1,364 | — | — | $ | 1,364 | |||||||||||||||||||
Foreign government bonds | — | $ | 1,142 | — | 1,142 | — | $ | 1,038 | — | 1,038 | |||||||||||||||||||||
Investment contracts | — | — | $ | 58,129 | 58,129 | — | — | $ | 61,990 | 61,990 | |||||||||||||||||||||
Fixed insurance contracts | — | — | 10,865 | 10,865 | — | — | 13,336 | 13,336 | |||||||||||||||||||||||
Total | $ | 2,549 | $ | 1,142 | $ | 68,994 | $ | 72,685 | $ | 1,364 | $ | 1,038 | $ | 75,326 | $ | 77,728 |
Investment Contracts | Fixed Insurance Contracts | ||||||
Balance at January 1, 2013 | $ | 60,344 | $ | 10,051 | |||
Gain / contributions / currency impact | 9,770 | 814 | |||||
Distributions | (11,987 | ) | — | ||||
Balance at December 31, 2013 | 58,127 | 10,865 | |||||
Gain / contributions / currency impact | 5,585 | 2,471 | |||||
Distributions | (1,722 | ) | — | ||||
Balance at December 31, 2014 | $ | 61,990 | $ | 13,336 |
Pension Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.20 | % | 3.33 | % | |
Rate of compensation increase | 2.42 | % | 2.08 | % |
Pension Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 3.58 | % | 4.20 | % | |
Expected return on plan assets | 4.29 | % | 4.77 | % | |
Rate of compensation increase | 2.44 | % | 2.42 | % |
Percentage of Plan Assets as of December 31, 2014 | |||||
US | Foreign | ||||
Equity securities | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 134,787 | $ | 76,915 | $ | 154,368 | $ | 18,756 | |||||||
Fair value of plan assets | 90,875 | 72,683 | 99,454 | 14,374 |
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 134,787 | $ | 78,421 | $ | 154,368 | $ | 20,617 | |||||||
Fair value of plan assets | 90,875 | 72,685 | 99,454 | 14,374 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 9,084 | $ | 974 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2015 | 8,941 | 3,826 | |||||
2016 | 9,039 | 3,835 | |||||
2017 | 9,166 | 3,918 | |||||
2018 | 9,278 | 4,145 | |||||
2019 | 9,340 | 3,904 | |||||
2020-2024 | 47,554 | 22,523 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | — | $ | 183 | $ | — | $ | 105 | — | $ | 71 | ||||||||||||
Interest cost | 497 | 1,024 | 371 | 994 | 396 | 976 | |||||||||||||||||
Amortization of prior service credit | — | (199 | ) | — | (193 | ) | — | (180 | ) | ||||||||||||||
Plan amendment / curtailment | — | 1,170 | — | — | — | (294 | ) | ||||||||||||||||
Mark-to-market (gain) loss | 60 | 551 | (1,284 | ) | (1,210 | ) | 1,151 | 1,456 | |||||||||||||||
$ | 557 | $ | 2,729 | $ | (913 | ) | $ | (304 | ) | $ | 1,547 | $ | 2,029 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | 199 | $ | — | $ | 193 | $ | — | $ | 180 | |||||||||||
Effect of exchange rates | — | (53 | ) | — | 133 | — | 148 | ||||||||||||||||
Total recognized in other comprehensive income | $ | — | $ | 146 | $ | — | $ | 326 | $ | — | $ | 328 | |||||||||||
Total recognized in net post retirement cost (benefit) and other comprehensive income | $ | 557 | $ | 2,875 | $ | (913 | ) | $ | 22 | $ | 1,547 | $ | 2,357 |
Postretirement Benefits at December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of year | $ | 13,506 | $ | 19,188 | $ | 11,275 | $ | 15,645 | |||||||
Service cost | — | 105 | — | 71 | |||||||||||
Interest cost | 371 | 994 | 396 | 976 | |||||||||||
Foreign currency exchange rates | — | (2,183 | ) | — | (1,437 | ) | |||||||||
Actuarial loss (gain) | (1,284 | ) | (1,365 | ) | 1,151 | 1,511 | |||||||||
Gross benefits paid | (1,318 | ) | (1,161 | ) | (1,236 | ) | (1,068 | ) | |||||||
Plan amendment | — | 67 | — | (294 | ) | ||||||||||
Net benefit obligation at end of year | $ | 11,275 | $ | 15,645 | $ | 11,586 | $ | 15,404 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 1,318 | 1,161 | 1,236 | 1,068 | |||||||||||
Gross benefits paid | (1,318 | ) | (1,161 | ) | (1,236 | ) | (1,068 | ) | |||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (11,275 | ) | $ | (15,645 | ) | $ | (11,586 | ) | $ | (15,404 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | 1,882 | $ | — | $ | 1,554 | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,279 | ) | $ | (1,035 | ) | $ | (1,204 | ) | $ | (953 | ) | |||
Non-current liabilities | (9,996 | ) | (14,610 | ) | (10,382 | ) | (14,451 | ) | |||||||
Net amount recognized | $ | (11,275 | ) | $ | (15,645 | ) | $ | (11,586 | ) | $ | (15,404 | ) |
Postretirement Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 5.41 | % | 4.82 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.42 | % | 6.55 | % | |
Ultimate | 6.23 | % | 6.18 | % | |
Years to ultimate | 3 | 1 |
Postretirement Benefit Costs At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.44 | % | 5.29 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.52 | % | 7.39 | % | |
Ultimate | 5.94 | % | 6.18 | % | |
Years to ultimate | 3 | 2 |
One Percentage Point Increase | One Percentage Point Decrease | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Effect on total service cost and interest cost components | $ | 3 | $ | 107 | $ | (3 | ) | $ | (87 | ) | |||||
Effect on benefit obligations | $ | 116 | $ | 1,019 | $ | (110 | ) | $ | (847 | ) |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 1,204 | $ | 953 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2015 | 1,204 | 953 | |||||
2016 | 1,172 | 985 | |||||
2017 | 1,124 | 990 | |||||
2018 | 1,062 | 999 | |||||
2019 | 985 | 1,007 | |||||
2020-2024 | 3,668 | 5,258 |
Years | ||
Buildings | 25-40 | |
Land improvements | 20 | |
Machinery and equipment | 5-20 | |
Furniture and fixtures | 5-10 |
Years | ||
Buildings | 25-40 | |
Land improvements | 20 | |
Machinery and equipment | 5-20 | |
Furniture and fixtures | 5-10 |
For the Year Ended December 31, 2013 | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 28,326 | $ | — | $ | — | $ | 28,326 | ||||||||
Inventory loss (recorded in Cost of sales) | 7,886 | 896 | — | 8,782 | ||||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 6,104 | 2,274 | — | 8,378 | ||||||||||||
Other (recorded in Selling and administrative) | 59 | — | — | 59 | ||||||||||||
Severance and related costs (recorded in Rationalizations) | 17,072 | 458 | 1,816 | 19,346 | ||||||||||||
Contract terminations (recorded in Rationalizations) | 810 | — | — | 810 | ||||||||||||
Total 2013 rationalization and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 22,388 | $ | 3,649 | $ | — | $ | 26,037 | |||||||
Inventory loss (recorded in Cost of sales) | 961 | 13,711 | — | 14,672 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 5,552 | 1,278 | — | 6,830 | |||||||||||
Accelerated depreciation (recorded in Research and development) | — | — | 2,312 | 2,312 | |||||||||||
Accelerated depreciation (recorded in Selling and administrative) | — | — | 608 | 608 | |||||||||||
Other (recorded in Selling and administrative) | 89 | 121 | 515 | 725 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 5,040 | 3,113 | 2,845 | 10,998 | |||||||||||
Contract terminations (recorded in Rationalizations) | 469 | 146 | 11 | 626 | |||||||||||
Impairment of long-lived assets | 121,570 | — | 121,570 | ||||||||||||
Total 2014 rationalization and related charges | $ | 34,499 | $ | 143,588 | $ | 6,291 | $ | 184,378 |
For the Year Ended December 31, 2013 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss (recorded in Cost of sales) | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 6,104 | 2,274 | — | 8,378 | |||||||||||
Other (recorded in Selling and administrative) | 59 | — | — | 59 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations (recorded in Rationalizations) | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 22,388 | $ | 827 | $ | — | $ | 23,215 | |||||||
Inventory loss (recorded in Cost of sales) | 961 | 485 | — | 1,446 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 5,374 | 233 | — | 5,607 | |||||||||||
Other (recorded in Selling and administrative) | 89 | — | — | 89 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 433 | (28 | ) | — | 405 | ||||||||||
Contract terminations (recorded in Rationalizations) | 469 | — | — | 469 | |||||||||||
Total 2014 rationalization plan and related charges | $ | 29,714 | $ | 1,517 | $ | — | $ | 31,231 |
(Dollars in thousands) | |||
Balance as of December 31, 2012 | $ | — | |
Charges incurred | 16,159 | ||
Change in estimates | 3,997 | ||
Payments and settlements | (1,506 | ) | |
Effect of change in currency exchange rates | (229 | ) | |
Balance as of December 31, 2013 | 18,421 | ||
Charges incurred | 613 | ||
Change in estimates | 153 | ||
Payments and settlements | (16,494 | ) | |
Effect of change in currency exchange rates | (1,658 | ) | |
Balance as of December 31, 2014 | $ | 1,035 |
For the Year Ended December 31, 2014 | |||
Accelerated depreciation (recorded in Cost of sales) | $ | 2,802 | |
Inventory losses (recorded in Cost of sales) | 13,225 | ||
Fixed asset write-offs and other (recorded in Cost of sales) | 1,046 | ||
Severance and related charges (recorded in Rationalizations) | 2,498 | ||
Contract terminations and other (recorded in Rationalizations) | 195 | ||
Impairments (recorded in Impairments) | 121,570 | ||
Total Engineered Solutions rationalization and related charges | $ | 141,336 | |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 2,611 | ||
Change in estimates | (40 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of December 31, 2014 | $ | 1,655 |
For the Year Ended December 31, 2014 | |||
(dollars in thousands) | |||
Accelerated depreciation (recorded in Cost of sales) | $ | 20 | |
Fixed asset write offs (recorded in Cost of sales) | 178 | ||
Accelerated depreciation (recorded in R&D) | 2,312 | ||
Accelerated depreciation (recorded in Selling and administrative) | 608 | ||
Other charges (recorded in Selling and administrative) | 515 | ||
Severance and related costs (recorded in Rationalizations) | 8,096 | ||
Contract terminations (recorded in Rationalizations) | 84 | ||
Total 2014 corporate rationalization and related charges | $ | 11,813 | |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 8,159 | ||
Change in estimates | 21 | ||
Payments and settlements | (1,155 | ) | |
Effect of change in currency exchange rates | (152 | ) | |
Balance as of December 31, 2014 | $ | 6,873 |
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 134,787 | $ | 78,421 | $ | 154,368 | $ | 20,617 | |||||||
Fair value of plan assets | 90,875 | 72,685 | 99,454 | 14,374 |
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 134,787 | $ | 76,915 | $ | 154,368 | $ | 18,756 | |||||||
Fair value of plan assets | 90,875 | 72,683 | 99,454 | 14,374 |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 175,192 | $ | 122,218 | |||
Work in process | 239,114 | 176,141 | |||||
Finished goods | 76,108 | 84,544 | |||||
490,414 | 382,903 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,554 | $ | 9,923 | |||
Current portion of deferred taxes | 37,058 | 28,426 | |||||
Value added tax and other indirect taxes receivable | 25,061 | 39,837 | |||||
Other current assets | 2,117 | 3,437 | |||||
$ | 73,790 | $ | 81,623 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 37,416 | $ | 36,375 | |||
Buildings | 196,802 | 193,427 | |||||
Machinery and equipment and other | 1,278,655 | 1,212,120 | |||||
Construction in progress | 76,007 | 58,899 | |||||
$ | 1,588,880 | $ | 1,500,821 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 9,330 | $ | 6,151 | |||
Customer prepayments | 9,599 | 5,534 | |||||
Employee compensation and benefits | 10,136 | 8,932 | |||||
Other | 11,874 | 22,702 | |||||
$ | 40,939 | $ | 43,319 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 24,852 | $ | 24,833 | |||
Pension and related benefits | 54,173 | 65,882 | |||||
Other | 18,922 | 16,851 | |||||
$ | 97,947 | $ | 107,566 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | (24 | ) | $ | — | $ | (25 | ) | $ | — | $ | (26 | ) | ||||||||
Addition to prior service cost | — | — | — | (246 | ) | — | — | ||||||||||||||||
Effect of exchange rates | — | 3 | — | 11 | — | 8 | |||||||||||||||||
Total recognized in other comprehensive loss | $ | — | $ | (21 | ) | $ | — | $ | (260 | ) | $ | — | $ | (18 | ) | ||||||||
Total recognized in pension costs and other comprehensive loss | $ | 6,776 | $ | 2,993 | $ | (10,104 | ) | $ | 752 | $ | 19,949 | $ | 682 |
Postretirement Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 5.41 | % | 4.82 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.42 | % | 6.55 | % | |
Ultimate | 6.23 | % | 6.18 | % | |
Years to ultimate | 3 | 1 |
Postretirement Benefit Costs At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.44 | % | 5.29 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.52 | % | 7.39 | % | |
Ultimate | 5.94 | % | 6.18 | % | |
Years to ultimate | 3 | 2 |
Pension Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.20 | % | 3.33 | % | |
Rate of compensation increase | 2.42 | % | 2.08 | % |
Pension Benefit Obligations At December 31, | |||||
2013 | 2014 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 3.58 | % | 4.20 | % | |
Expected return on plan assets | 4.29 | % | 4.77 | % | |
Rate of compensation increase | 2.44 | % | 2.42 | % |
Investment Contracts | Fixed Insurance Contracts | ||||||
Balance at January 1, 2013 | $ | 60,344 | $ | 10,051 | |||
Gain / contributions / currency impact | 9,770 | 814 | |||||
Distributions | (11,987 | ) | — | ||||
Balance at December 31, 2013 | 58,127 | 10,865 | |||||
Gain / contributions / currency impact | 5,585 | 2,471 | |||||
Distributions | (1,722 | ) | — | ||||
Balance at December 31, 2014 | $ | 61,990 | $ | 13,336 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2013 | (Dollars in Thousands) | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 772 | Other current liabilities | $ | 1,185 | |||||
Commodity derivative contracts | Prepaid and other current assets | 834 | Other current liabilities | — | |||||||
Total fair value | $ | 1,606 | $ | 1,185 | |||||||
As of December 31, 2014 | |||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 722 | Other current liabilities | $ | 1,234 | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 7,067 | |||||||
Total fair value | $ | 722 | $ | 8,301 |
December 31, 2013 | December 31, 2014 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,597 | — | — | $ | 2,597 | $ | 906 | — | — | $ | 906 | |||||||||||||||||||
Collective trusts | — | 88,278 | — | 88,278 | — | $ | 98,548 | — | 98,548 | ||||||||||||||||||||||
Total | $ | 2,597 | 88,278 | — | $ | 90,875 | $ | 906 | $ | 98,548 | — | $ | 99,454 | ||||||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,549 | — | — | $ | 2,549 | $ | 1,364 | — | — | $ | 1,364 | |||||||||||||||||||
Foreign government bonds | — | $ | 1,142 | — | 1,142 | — | $ | 1,038 | — | 1,038 | |||||||||||||||||||||
Investment contracts | — | — | $ | 58,129 | 58,129 | — | — | $ | 61,990 | 61,990 | |||||||||||||||||||||
Fixed insurance contracts | — | — | 10,865 | 10,865 | — | — | 13,336 | 13,336 | |||||||||||||||||||||||
Total | $ | 2,549 | $ | 1,142 | $ | 68,994 | $ | 72,685 | $ | 1,364 | $ | 1,038 | $ | 75,326 | $ | 77,728 |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
U.S income taxes: | |||||||||||
Current | $ | (6,529 | ) | $ | 4,104 | $ | (1,762 | ) | |||
Deferred | 4,543 | (5,652 | ) | (537 | ) | ||||||
(1,986 | ) | (1,548 | ) | (2,299 | ) | ||||||
Non-U.S. income taxes: | |||||||||||
Current | 12,371 | 5,422 | 8,349 | ||||||||
Deferred | 6,461 | (16,717 | ) | (15,466 | ) | ||||||
18,832 | (11,295 | ) | (7,117 | ) | |||||||
Total income tax expense (benefit) | $ | 16,846 | $ | (12,843 | ) | $ | (9,416 | ) |
For year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Foreign currency translation adjustments | $ | 295,192 | $ | 328,233 | |||
Commodities and foreign currency derivatives and other, net of tax of ($300) and ($63), respectively | (2,568 | ) | 8,291 | ||||
Total accumulated comprehensive loss | $ | 292,624 | $ | 336,524 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4,752 | $ | 7,136 | $ | — | $ | 11,888 | ||||||||||
Accounts receivable - affiliates | 42,410 | 28,551 | 15,824 | (86,785 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 48,998 | 150,568 | — | 199,566 | |||||||||||||||
Inventories | — | 174,935 | 315,479 | — | 490,414 | |||||||||||||||
Prepaid and other current assets | — | 22,555 | 51,235 | — | 73,790 | |||||||||||||||
Total current assets | 42,410 | 279,791 | 540,242 | (86,785 | ) | 775,658 | ||||||||||||||
Investment in affiliates | 1,709,914 | 828,012 | — | (2,537,926 | ) | — | ||||||||||||||
Property, plant and equipment | — | 540,273 | 280,712 | — | 820,985 | |||||||||||||||
Deferred income taxes | — | — | 10,334 | — | 10,334 | |||||||||||||||
Goodwill | — | 293,162 | 203,648 | — | 496,810 | |||||||||||||||
Notes receivable - affiliate | 51,090 | 7,413 | — | (58,503 | ) | — | ||||||||||||||
Other assets | 4,752 | 53,447 | 55,862 | — | 114,061 | |||||||||||||||
Total Assets | $ | 1,808,166 | $ | 2,002,098 | $ | 1,090,798 | $ | (2,683,214 | ) | $ | 2,217,848 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | — | $ | 58,206 | $ | 28,579 | $ | (86,785 | ) | $ | — | |||||||||
Accounts payable - trade | — | 41,971 | 73,241 | — | 115,212 | |||||||||||||||
Short-term debt | — | 165 | 996 | — | 1,161 | |||||||||||||||
Accrued income and other taxes | 2,678 | 4,736 | 23,273 | — | 30,687 | |||||||||||||||
Rationalizations | — | 1,890 | 16,531 | — | 18,421 | |||||||||||||||
Supply chain financing liability | — | — | 9,455 | — | 9,455 | |||||||||||||||
Other accrued liabilities | 2,444 | 12,404 | 26,091 | — | 40,939 | |||||||||||||||
Total current liabilities | 5,122 | 119,372 | 178,166 | (86,785 | ) | 215,875 | ||||||||||||||
Long-term debt - affiliate | — | 51,090 | 7,413 | (58,503 | ) | — | ||||||||||||||
Long-term debt - third party | 475,675 | 50,525 | 15,393 | — | 541,593 | |||||||||||||||
Other long-term obligations | — | 66,590 | 31,357 | — | 97,947 | |||||||||||||||
Deferred income taxes | 6,620 | 4,607 | 30,457 | — | 41,684 | |||||||||||||||
Stockholders' equity | 1,320,749 | 1,709,914 | 828,012 | (2,537,926 | ) | 1,320,749 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,808,166 | $ | 2,002,098 | $ | 1,090,798 | $ | (2,683,214 | ) | $ | 2,217,848 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 | ||||||||||
Accounts receivable - affiliates | 40,474 | 35,618 | 40,185 | (116,277 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 45,861 | 117,058 | — | 162,919 | |||||||||||||||
Inventories | — | 148,080 | 234,823 | — | 382,903 | |||||||||||||||
Prepaid and other current assets | — | 17,336 | 64,287 | — | 81,623 | |||||||||||||||
Total current assets | 40,474 | 252,398 | 468,400 | (116,277 | ) | 644,995 | ||||||||||||||
Investment in affiliates | 1,414,278 | 762,251 | — | (2,176,529 | ) | — | ||||||||||||||
Property, plant and equipment | — | 431,602 | 222,438 | — | 654,040 | |||||||||||||||
Deferred income taxes | — | — | 16,819 | — | 16,819 | |||||||||||||||
Goodwill | — | 217,099 | 203,030 | — | 420,129 | |||||||||||||||
Notes receivable - affiliate | 35,722 | 7,413 | — | (43,135 | ) | — | ||||||||||||||
Other assets | 4,110 | 45,617 | 48,095 | — | 97,822 | |||||||||||||||
Total Assets | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | — | $ | 80,659 | $ | 35,618 | $ | (116,277 | ) | $ | — | |||||||||
Accounts payable - trade | 47 | 35,435 | 50,927 | — | 86,409 | |||||||||||||||
Short-term debt | 187,973 | 131 | — | — | 188,104 | |||||||||||||||
Accrued income and other taxes | 344 | 3,380 | 20,782 | — | 24,506 | |||||||||||||||
Rationalizations | — | 7,538 | 2,025 | — | 9,563 | |||||||||||||||
Supply chain financing liability | — | — | — | — | — | |||||||||||||||
Other accrued liabilities | 2,444 | 15,252 | 25,623 | — | 43,319 | |||||||||||||||
Total current liabilities | 190,808 | 142,395 | 134,975 | (116,277 | ) | 351,901 | ||||||||||||||
Long-term debt - affiliate | — | 35,722 | 7,413 | (43,135 | ) | — | ||||||||||||||
Long-term debt - third party | 300,000 | 40,393 | 1,222 | — | 341,615 | |||||||||||||||
Other long-term obligations | — | 77,724 | 29,842 | — | 107,566 | |||||||||||||||
Deferred income taxes | — | 5,118 | 23,079 | — | 28,197 | |||||||||||||||
Stockholders' equity | 1,003,776 | 1,415,028 | 762,251 | (2,176,529 | ) | 1,004,526 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,494,584 | $ | 1,716,380 | $ | 958,782 | $ | (2,335,941 | ) | $ | 1,833,805 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (9,474 | ) | $ | 79,864 | $ | 50,513 | $ | — | $ | 120,903 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 6,604 | — | — | (6,604 | ) | — | |||||||||||||
Capital expenditures | — | (58,926 | ) | (26,055 | ) | — | (84,981 | ) | |||||||||||
Insurance recoveries | — | — | 2,834 | — | 2,834 | ||||||||||||||
Proceeds (payments) for derivatives | — | (2,195 | ) | 170 | — | (2,025 | ) | ||||||||||||
Proceeds from fixed asset sales | — | 1,700 | 3,342 | 5,042 | |||||||||||||||
Other | — | — | 178 | — | 178 | ||||||||||||||
Net cash provided by (used in) investing activities | 6,604 | (59,421 | ) | (19,531 | ) | (6,604 | ) | (78,952 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (6,604 | ) | — | 6,604 | — | |||||||||||||
Short-term debt borrowings | — | (34 | ) | (987 | ) | — | (1,021 | ) | |||||||||||
Revolving Facility borrowings | — | 183,000 | 86,000 | — | 269,000 | ||||||||||||||
Revolving Facility reductions | — | (193,000 | ) | (100,000 | ) | — | (293,000 | ) | |||||||||||
Principal payments on long term debt | — | (132 | ) | (60 | ) | — | (192 | ) | |||||||||||
Supply chain financing | — | — | (9,455 | ) | — | (9,455 | ) | ||||||||||||
Proceeds from exercise of stock options | 2,813 | — | — | — | 2,813 | ||||||||||||||
Purchase of treasury shares | (894 | ) | — | — | — | (894 | ) | ||||||||||||
Refinancing fees and debt issuance costs | — | (2,922 | ) | (357 | ) | — | (3,279 | ) | |||||||||||
Other | 951 | — | — | — | 951 | ||||||||||||||
Net cash (used in) provided by financing activities | 2,870 | (19,692 | ) | (24,859 | ) | 6,604 | (35,077 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents | — | 751 | 6,123 | — | 6,874 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,212 | ) | — | (1,212 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,752 | 7,136 | — | 11,888 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 5,503 | $ | 12,047 | $ | — | $ | 17,550 |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 194,345 | $ | 216,859 | $ | (411,204 | ) | $ | — | |||||||||
Sales - third party | — | 566,024 | 682,240 | — | 1,248,264 | |||||||||||||||
Net sales | — | 760,369 | 899,099 | (411,204 | ) | 1,248,264 | ||||||||||||||
Cost of sales | — | 638,419 | 705,245 | (411,204 | ) | 932,460 | ||||||||||||||
Gross profit | — | 121,950 | 193,854 | — | 315,804 | |||||||||||||||
Research and development | — | 13,796 | — | — | 13,796 | |||||||||||||||
Selling and administrative expenses | — | 61,442 | 84,098 | — | 145,540 | |||||||||||||||
Operating income | — | 46,712 | 109,756 | — | 156,468 | |||||||||||||||
Other expense (income), net | — | (2,133 | ) | 1,128 | — | (1,005 | ) | |||||||||||||
Interest expense - affiliate | 3,766 | 59 | 586 | (4,411 | ) | — | ||||||||||||||
Interest expense - third party | 12,992 | 7,977 | 2,278 | — | 23,247 | |||||||||||||||
Interest income - affiliate | (59 | ) | (4,352 | ) | — | 4,411 | — | |||||||||||||
Interest income - third party | — | — | (261 | ) | — | (261 | ) | |||||||||||||
(Loss) income before income taxes | (16,699 | ) | 45,161 | 106,025 | — | ` | 134,487 | |||||||||||||
(Benefit) provision for income taxes | (5,972 | ) | 3,981 | 18,837 | — | 16,846 | ||||||||||||||
Equity in earnings of subsidiary | 128,368 | 87,188 | — | (215,556 | ) | — | ||||||||||||||
Net income | $ | 117,641 | $ | 128,368 | $ | 87,188 | $ | (215,556 | ) | $ | 117,641 | |||||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net income (loss) | $ | 117,641 | $ | 128,368 | $ | 87,188 | $ | (215,556 | ) | $ | 117,641 | |||||||||
Other comprehensive (loss) income | (18,741 | ) | (18,741 | ) | (9,929 | ) | 28,670 | (18,741 | ) | |||||||||||
Comprehensive income (loss) | $ | 98,900 | $ | 109,627 | $ | 77,259 | $ | (186,886 | ) | $ | 98,900 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 220,354 | $ | 149,251 | $ | (369,605 | ) | $ | — | |||||||||
Sales - third party | — | 469,033 | 697,641 | — | 1,166,674 | |||||||||||||||
Net sales | — | 689,387 | 846,892 | (369,605 | ) | 1,166,674 | ||||||||||||||
Cost of sales | — | 584,819 | 812,394 | (369,605 | ) | 1,027,608 | ||||||||||||||
Gross profit | — | 104,568 | 34,498 | — | 139,066 | |||||||||||||||
Research and development | — | 10,437 | — | — | 10,437 | |||||||||||||||
Selling and administrative expenses | — | 40,548 | 70,495 | — | 111,043 | |||||||||||||||
Rationalizations | — | 2,732 | 17,424 | — | 20,156 | |||||||||||||||
Operating income | — | 50,851 | (53,421 | ) | — | (2,570 | ) | |||||||||||||
Other expense (income), net | — | (176 | ) | 1,874 | — | 1,698 | ||||||||||||||
Interest expense - affiliate | — | 1,364 | 670 | (2,034 | ) | — | ||||||||||||||
Interest expense - third party | 31,294 | 3,029 | 1,714 | — | 36,037 | |||||||||||||||
Interest income - affiliate | (1,233 | ) | (670 | ) | (131 | ) | 2,034 | — | ||||||||||||
Interest income - third party | — | — | (203 | ) | — | (203 | ) | |||||||||||||
(Loss) income before income taxes | (30,061 | ) | 47,304 | (57,345 | ) | — | ` | (40,102 | ) | |||||||||||
(Benefit) provision for income taxes | (10,659 | ) | 9,111 | (11,295 | ) | — | (12,843 | ) | ||||||||||||
Equity in earnings of subsidiary | (7,857 | ) | (46,050 | ) | — | 53,907 | — | |||||||||||||
Net income | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net (loss) income | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Other comprehensive (loss) income | (11,946 | ) | (11,946 | ) | (13,601 | ) | 25,547 | (11,946 | ) | |||||||||||
Comprehensive income (loss) | $ | (39,205 | ) | $ | (19,803 | ) | $ | (59,651 | ) | $ | 79,454 | $ | (39,205 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 263,742 | $ | 150,346 | $ | (414,088 | ) | $ | — | |||||||||
Sales - third party | — | 422,991 | 662,313 | — | 1,085,304 | |||||||||||||||
Net sales | — | 686,733 | 812,659 | (414,088 | ) | 1,085,304 | ||||||||||||||
Cost of sales | — | 630,031 | 777,114 | (414,088 | ) | 993,057 | ||||||||||||||
Gross profit | — | 56,702 | 35,545 | — | 92,247 | |||||||||||||||
Research and development | — | 14,844 | — | — | 14,844 | |||||||||||||||
Selling and administrative expenses | — | 55,454 | 68,724 | — | 124,178 | |||||||||||||||
Impairments | — | 186,552 | 10,668 | 197,220 | ||||||||||||||||
Rationalizations | — | 9,109 | 2,516 | — | 11,625 | |||||||||||||||
Operating income | — | (209,257 | ) | (46,363 | ) | — | (255,620 | ) | ||||||||||||
Other expense (income), net | — | 1,575 | 870 | — | 2,445 | |||||||||||||||
Interest expense - affiliate | — | 806 | — | (806 | ) | — | ||||||||||||||
Interest expense - third party | 32,118 | 4,037 | 902 | — | 37,057 | |||||||||||||||
Interest income - affiliate | (806 | ) | — | — | 806 | — | ||||||||||||||
Interest income - third party | — | (11 | ) | (319 | ) | — | (330 | ) | ||||||||||||
(Loss) income before income taxes | (31,312 | ) | (215,664 | ) | (47,816 | ) | — | ` | (294,792 | ) | ||||||||||
(Benefit) provision for income taxes | 3,319 | (5,618 | ) | (7,117 | ) | — | (9,416 | ) | ||||||||||||
Equity in earnings of subsidiary | (251,495 | ) | (40,699 | ) | — | 292,194 | — | |||||||||||||
Net income | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Statements of Comprehensive Income | ||||||||||||||||||||
Net income | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Other comprehensive income: | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive (loss) income | $ | (330,026 | ) | $ | (294,645 | ) | $ | (69,349 | ) | $ | 364,744 | $ | (329,276 | ) | ||||||
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Revolving Facility | $ | 64,000 | $ | 40,000 | |||
Senior Notes | 300,000 | 300,000 | |||||
Senior Subordinated Notes | 175,675 | — | |||||
Other debt | 1,918 | 1,615 | |||||
Total Long-Term Debt | $ | 541,593 | $ | 341,615 |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 41,604 | $ | 43,204 | |||
Foreign tax credit and other carryforwards | 46,283 | 64,214 | |||||
Capitalized research and experimental costs | 20,243 | 23,446 | |||||
Environmental reserves | 3,503 | 3,366 | |||||
Inventory adjustments | 16,255 | 19,568 | |||||
Capital loss | 2,697 | 272 | |||||
Long-term contract option amortization | — | 2,214 | |||||
Provision for rationalization charges | 17,410 | 17,255 | |||||
Other | 5,889 | 6,288 | |||||
Total gross deferred tax assets | 153,884 | 179,827 | |||||
Less: valuation allowance | (20,411 | ) | (95,721 | ) | |||
Total deferred tax assets | 133,473 | 84,106 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 109,824 | $ | 59,292 | |||
Debt discount amortization | 6,620 | 3,301 | |||||
Inventory | 9,212 | 6,865 | |||||
Goodwill and acquired intangibles | 10,813 | 1,046 | |||||
Other | 2,204 | 3,761 | |||||
Total deferred tax liabilities | 138,673 | 74,265 | |||||
Net deferred tax (liability) asset | $ | (5,200 | ) | $ | 9,841 |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | 199 | $ | — | $ | 193 | $ | — | $ | 180 | |||||||||||
Effect of exchange rates | — | (53 | ) | — | 133 | — | 148 | ||||||||||||||||
Total recognized in other comprehensive income | $ | — | $ | 146 | $ | — | $ | 326 | $ | — | $ | 328 | |||||||||||
Total recognized in net post retirement cost (benefit) and other comprehensive income | $ | 557 | $ | 2,875 | $ | (913 | ) | $ | 22 | $ | 1,547 | $ | 2,357 |
Amount of (Gain)/Loss Recognized (Effective Portion) | ||||||||||
Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion) | 2013 | 2014 | ||||||||
(Dollars in Thousands) | ||||||||||
Derivatives designated as cash flow hedges: | ||||||||||
Foreign currency derivatives, excluding tax of $(145) and $85, respectively | Cost of goods sold/Other expense / (income) / Revenue | $ | 1,445 | $ | (849 | ) | ||||
Commodity forward derivatives, excluding tax of $(25) and $(120), respectively | Cost of goods sold / Revenue | $ | 70 | $ | 328 | |||||
Amount of (Gain)/Loss Recognized | ||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Income | 2013 | 2014 | ||||||||
(Dollars in thousands) | ||||||||||
Derivatives not designated as hedges: | ||||||||||
Foreign currency derivatives | Cost of goods sold/Other expense (income) | $ | (1,123 | ) | $ | 1,020 |
At December 31, | ||||||||
2012 | 2013 | 2014 | ||||||
(Dollars in thousands) | ||||||||
Weighted average common shares outstanding for basic calculation | 138,551,804 | 135,067,278 | 136,155,295 | |||||
Add: Effect of stock options and restricted stock | 1,148,300 | — | — | |||||
Weighted average common shares outstanding for diluted calculation | 139,700,104 | 135,067,278 | 136,155,295 |
One Percentage Point Increase | One Percentage Point Decrease | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Effect on total service cost and interest cost components | $ | 3 | $ | 107 | $ | (3 | ) | $ | (87 | ) | |||||
Effect on benefit obligations | $ | 116 | $ | 1,019 | $ | (110 | ) | $ | (847 | ) |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Tax at statutory U.S. federal rate | $ | 47,071 | $ | (14,036 | ) | $ | (103,177 | ) | |||
U.S. valuation allowance, net | (1,800 | ) | (700 | ) | 73,350 | ||||||
State taxes, net of federal tax benefit | 593 | (371 | ) | (4,387 | ) | ||||||
U.S. tax return adjustments to estimated taxes | 588 | (1,032 | ) | (368 | ) | ||||||
Establishment (resolution) of uncertain tax positions | (8,118 | ) | (752 | ) | (513 | ) | |||||
Adjustment for foreign income taxed at different rates | (15,553 | ) | 6,832 | 7,376 | |||||||
U.S. tax credits | (2,200 | ) | (2,577 | ) | (1,000 | ) | |||||
Non-U.S. tax exemptions, holidays and credits | (4,259 | ) | — | — | |||||||
Goodwill impairment | — | — | 17,161 | ||||||||
Capital loss expiration | — | — | 2,422 | ||||||||
Other | 524 | (207 | ) | (280 | ) | ||||||
Total income tax (benefit) expense | $ | 16,846 | $ | (12,843 | ) | $ | (9,416 | ) |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 540,274 | $ | 431,601 | |||
Mexico | 83,428 | 89,731 | |||||
Brazil | 26,008 | 9,492 | |||||
France | 61,264 | 49,602 | |||||
Spain | 82,051 | 70,648 | |||||
South Africa | 16,408 | 2,064 | |||||
Switzerland | 4,618 | 287 | |||||
Other countries | 6,934 | 615 | |||||
Total | $ | 820,985 | $ | 654,040 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
2013 | 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||
Trade name | 7,900 | (3,944 | ) | 3,956 | 7,900 | (4,817 | ) | 3,083 | |||||||||||||||
Technology and know-how | 43,349 | (18,582 | ) | 24,767 | 43,349 | (24,940 | ) | 18,409 | |||||||||||||||
Customer related intangible | 110,798 | (44,664 | ) | 66,134 | 110,798 | (57,192 | ) | 53,606 | |||||||||||||||
Total finite-lived intangible assets | $ | 162,047 | $ | (67,190 | ) | $ | 94,857 | $ | 162,047 | $ | (86,949 | ) | $ | 75,098 |
Total | |||
(Dollars in Thousands) | |||
Balance as of December 31, 2012 | $ | 498,261 | |
Translation effect | (1,451 | ) | |
Balance as of December 31, 2013 | 496,810 | ||
Impairment | (76,063 | ) | |
Translation effect | (618 | ) | |
Balance as of December 31, 2014 | $ | 420,129 |
For the Year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
U.S. | $ | 29,422 | $ | 8,495 | $ | (255,043 | ) | ||||
Non-U.S. | 105,065 | (48,597 | ) | (39,749 | ) | ||||||
$ | 134,487 | $ | (40,102 | ) | $ | (294,792 | ) |
For the Year Ended December 31, | |||||||||||||||||||||||
2012 | 2013 | 2014 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 610 | $ | 1,095 | $ | 870 | $ | 1,177 | $ | 750 | $ | 1,107 | |||||||||||
Interest cost | 6,114 | 2,532 | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||||||||
Expected return on assets | (6,520 | ) | (2,299 | ) | (4,505 | ) | (2,339 | ) | (5,215 | ) | (2,516 | ) | |||||||||||
Amortization of prior service cost | — | 24 | — | 25 | — | 2 | |||||||||||||||||
Curtailment gain | — | — | — | — | — | (28 | ) | ||||||||||||||||
Mark-to-market loss (gain) | 6,572 | 1,662 | (11,907 | ) | (393 | ) | 18,431 | (534 | ) | ||||||||||||||
$ | 6,776 | $ | 3,014 | $ | (10,104 | ) | $ | 1,012 | $ | 19,949 | $ | 700 |
(Dollars in Thousands) | |||
Balance at December 31, 2013 | $ | 1,050 | |
Product warranty charges/adjustments | 173 | ||
Payments and settlements | (300 | ) | |
Balance at December 31, 2014 | $ | 923 |
For the Year Ended December 31, 2014 | |||
Accelerated depreciation (recorded in Cost of sales) | $ | 2,802 | |
Inventory losses (recorded in Cost of sales) | 13,225 | ||
Fixed asset write-offs and other (recorded in Cost of sales) | 1,046 | ||
Severance and related charges (recorded in Rationalizations) | 2,498 | ||
Contract terminations and other (recorded in Rationalizations) | 195 | ||
Impairments (recorded in Impairments) | 121,570 | ||
Total Engineered Solutions rationalization and related charges | $ | 141,336 | |
For the Year Ended December 31, 2013 | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 28,326 | $ | — | $ | — | $ | 28,326 | ||||||||
Inventory loss (recorded in Cost of sales) | 7,886 | 896 | — | 8,782 | ||||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 6,104 | 2,274 | — | 8,378 | ||||||||||||
Other (recorded in Selling and administrative) | 59 | — | — | 59 | ||||||||||||
Severance and related costs (recorded in Rationalizations) | 17,072 | 458 | 1,816 | 19,346 | ||||||||||||
Contract terminations (recorded in Rationalizations) | 810 | — | — | 810 | ||||||||||||
Total 2013 rationalization and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 22,388 | $ | 3,649 | $ | — | $ | 26,037 | |||||||
Inventory loss (recorded in Cost of sales) | 961 | 13,711 | — | 14,672 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 5,552 | 1,278 | — | 6,830 | |||||||||||
Accelerated depreciation (recorded in Research and development) | — | — | 2,312 | 2,312 | |||||||||||
Accelerated depreciation (recorded in Selling and administrative) | — | — | 608 | 608 | |||||||||||
Other (recorded in Selling and administrative) | 89 | 121 | 515 | 725 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 5,040 | 3,113 | 2,845 | 10,998 | |||||||||||
Contract terminations (recorded in Rationalizations) | 469 | 146 | 11 | 626 | |||||||||||
Impairment of long-lived assets | 121,570 | — | 121,570 | ||||||||||||
Total 2014 rationalization and related charges | $ | 34,499 | $ | 143,588 | $ | 6,291 | $ | 184,378 |
For the Year Ended December 31, 2014 | |||
(dollars in thousands) | |||
Accelerated depreciation (recorded in Cost of sales) | $ | 20 | |
Fixed asset write offs (recorded in Cost of sales) | 178 | ||
Accelerated depreciation (recorded in R&D) | 2,312 | ||
Accelerated depreciation (recorded in Selling and administrative) | 608 | ||
Other charges (recorded in Selling and administrative) | 515 | ||
Severance and related costs (recorded in Rationalizations) | 8,096 | ||
Contract terminations (recorded in Rationalizations) | 84 | ||
Total 2014 corporate rationalization and related charges | $ | 11,813 | |
For the Year Ended December 31, 2013 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss (recorded in Cost of sales) | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 6,104 | 2,274 | — | 8,378 | |||||||||||
Other (recorded in Selling and administrative) | 59 | — | — | 59 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations (recorded in Rationalizations) | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accelerated depreciation (recorded in Cost of sales) | $ | 22,388 | $ | 827 | $ | — | $ | 23,215 | |||||||
Inventory loss (recorded in Cost of sales) | 961 | 485 | — | 1,446 | |||||||||||
Fixed asset write-offs and other(recorded in Cost of sales) | 5,374 | 233 | — | 5,607 | |||||||||||
Other (recorded in Selling and administrative) | 89 | — | — | 89 | |||||||||||
Severance and related costs (recorded in Rationalizations) | 433 | (28 | ) | — | 405 | ||||||||||
Contract terminations (recorded in Rationalizations) | 469 | — | — | 469 | |||||||||||
Total 2014 rationalization plan and related charges | $ | 29,714 | $ | 1,517 | $ | — | $ | 31,231 |
(Dollars in thousands) | |||
Balance as of December 31, 2012 | $ | — | |
Charges incurred | 16,159 | ||
Change in estimates | 3,997 | ||
Payments and settlements | (1,506 | ) | |
Effect of change in currency exchange rates | (229 | ) | |
Balance as of December 31, 2013 | 18,421 | ||
Charges incurred | 613 | ||
Change in estimates | 153 | ||
Payments and settlements | (16,494 | ) | |
Effect of change in currency exchange rates | (1,658 | ) | |
Balance as of December 31, 2014 | $ | 1,035 |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 8,159 | ||
Change in estimates | 21 | ||
Payments and settlements | (1,155 | ) | |
Effect of change in currency exchange rates | (152 | ) | |
Balance as of December 31, 2014 | $ | 6,873 |
(Dollars in thousands) | |||
Balance as of December 31, 2013 | $ | — | |
Charges incurred | 2,611 | ||
Change in estimates | (40 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of December 31, 2014 | $ | 1,655 |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales: | |||||||||||
U.S. | $ | 372,014 | $ | 289,866 | $ | 284,209 | |||||
Americas | 195,748 | 177,602 | 180,070 | ||||||||
Asia Pacific | 235,658 | 220,945 | 192,230 | ||||||||
Europe, Middle East, Africa | 444,844 | 478,261 | 428,795 | ||||||||
Total | $ | 1,248,264 | $ | 1,166,674 | $ | 1,085,304 |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales to external customers: | |||||||||||
Industrial Materials | $ | 1,025,571 | $ | 909,448 | $ | 840,103 | |||||
Engineered Solutions | 222,693 | 257,226 | 245,201 | ||||||||
Total net sales | $ | 1,248,264 | $ | 1,166,674 | $ | 1,085,304 | |||||
Segment operating income (loss): | |||||||||||
Industrial Materials | $ | 197,335 | $ | 20,007 | $ | (50,260 | ) | ||||
Engineered Solutions | 22,374 | 28,392 | (138,271 | ) | |||||||
Corporate, R&D and Other expenses | $ | (63,241 | ) | $ | (50,969 | ) | $ | (67,089 | ) | ||
Total segment operating income (loss) | $ | 156,468 | $ | (2,570 | ) | $ | (255,620 | ) | |||
Reconciliation of segment operating income to income from continuing operations before provision for income taxes | |||||||||||
Other expense (income), net | (1,005 | ) | 1,698 | 2,445 | |||||||
Interest expense | 23,247 | 36,037 | 37,057 | ||||||||
Interest income | (261 | ) | (203 | ) | (330 | ) | |||||
Income (loss) before provision for income taxes | $ | 134,487 | $ | (40,102 | ) | $ | (294,792 | ) |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number Outstanding | Weighted Average Remaining Contractual Life in Years | Weighted Average Exercise Prices | Number Exercisable | Weighted Average Exercise Prices | |||||||||||
$4.24 | - | $22.57 | 2,042,074 | 7.8 | $10.93 | 1,187,758 | $ | 13.94 |
Number of Shares | Weighted- Average Exercise Price | |||||
Outstanding at December 31, 2013 | 1,916,718 | $ | 12.47 | |||
Granted | 671,939 | 5.82 | ||||
Exercised | (316,733 | ) | 8.88 | |||
Forfeited/canceled/expired | (229,850 | ) | 11.64 | |||
Outstanding at December 31, 2014 | 2,042,074 | $ | 10.93 |
For the Year Ended December 31, 2012 | For the Year Ended December 31, 2013 | For the Year Ended December 31, 2014 | ||||||
Dividend yield | — | % | — | % | — | % | ||
Expected volatility | 55.33%-57.32% | 55.89%-57.01% | 45.42%-55.89% | |||||
Risk-free interest rate | 0.66% - 0.90% | 0.76% - 1.38% | 1.38% - 1.66% | |||||
Expected term in years | 6 years | 6 years | 6 years |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Outstanding unvested at December 31, 2013 | 1,633,491 | $ | 10.98 | |||
Granted | 1,466,919 | 5.19 | ||||
Vested | (411,062 | ) | 12.50 | |||
Forfeited/canceled/expired | (875,218 | ) | 10.25 | |||
Outstanding at December 31, 2014 | 1,814,130 | $ | 6.31 |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Senior Subordinated Notes | — | 187,973 | |||||
Other debt | 1,161 | 131 | |||||
Total Short-Term Debt | $ | 1,161 | $ | 188,104 |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales to external customers: | |||||||||||
Industrial Materials | $ | 1,025,571 | $ | 909,448 | $ | 840,103 | |||||
Engineered Solutions | 222,693 | 257,226 | 245,201 | ||||||||
Total net sales | $ | 1,248,264 | $ | 1,166,674 | $ | 1,085,304 | |||||
Segment operating income (loss): | |||||||||||
Industrial Materials | $ | 197,335 | $ | 20,007 | $ | (50,260 | ) | ||||
Engineered Solutions | 22,374 | 28,392 | (138,271 | ) | |||||||
Corporate, R&D and Other expenses | $ | (63,241 | ) | $ | (50,969 | ) | $ | (67,089 | ) | ||
Total segment operating income (loss) | $ | 156,468 | $ | (2,570 | ) | $ | (255,620 | ) | |||
Reconciliation of segment operating income to income from continuing operations before provision for income taxes | |||||||||||
Other expense (income), net | (1,005 | ) | 1,698 | 2,445 | |||||||
Interest expense | 23,247 | 36,037 | 37,057 | ||||||||
Interest income | (261 | ) | (203 | ) | (330 | ) | |||||
Income (loss) before provision for income taxes | $ | 134,487 | $ | (40,102 | ) | $ | (294,792 | ) |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
Industrial Materials. | $ | 601,322 | $ | 552,155 | |||
Engineered Solutions | 219,663 | 101,885 | |||||
Total long-lived assets | $ | 820,985 | $ | 654,040 |
For the year Ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales: | |||||||||||
U.S. | $ | 372,014 | $ | 289,866 | $ | 284,209 | |||||
Americas | 195,748 | 177,602 | 180,070 | ||||||||
Asia Pacific | 235,658 | 220,945 | 192,230 | ||||||||
Europe, Middle East, Africa | 444,844 | 478,261 | 428,795 | ||||||||
Total | $ | 1,248,264 | $ | 1,166,674 | $ | 1,085,304 |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 540,274 | $ | 431,601 | |||
Mexico | 83,428 | 89,731 | |||||
Brazil | 26,008 | 9,492 | |||||
France | 61,264 | 49,602 | |||||
Spain | 82,051 | 70,648 | |||||
South Africa | 16,408 | 2,064 | |||||
Switzerland | 4,618 | 287 | |||||
Other countries | 6,934 | 615 | |||||
Total | $ | 820,985 | $ | 654,040 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
Subsequent Events |
For the year ended December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at January 1 | $ | 25,509 | $ | 26,312 | $ | 20,411 | |||||
(Credited) / charged to income | (1,800 | ) | (614 | ) | 74,157 | ||||||
Translation adjustment | (52 | ) | (746 | ) | (800 | ) | |||||
Changes attributable to movement in underlying assets | 2,655 | (4,541 | ) | 1,953 | |||||||
Balance at December 31 | $ | 26,312 | $ | 20,411 | $ | 95,721 |
At December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 175,192 | $ | 122,218 | |||
Work in process | 239,114 | 176,141 | |||||
Finished goods | 76,108 | 84,544 | |||||
490,414 | 382,903 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,554 | $ | 9,923 | |||
Current portion of deferred taxes | 37,058 | 28,426 | |||||
Value added tax and other indirect taxes receivable | 25,061 | 39,837 | |||||
Other current assets | 2,117 | 3,437 | |||||
$ | 73,790 | $ | 81,623 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 37,416 | $ | 36,375 | |||
Buildings | 196,802 | 193,427 | |||||
Machinery and equipment and other | 1,278,655 | 1,212,120 | |||||
Construction in progress | 76,007 | 58,899 | |||||
$ | 1,588,880 | $ | 1,500,821 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 9,330 | $ | 6,151 | |||
Customer prepayments | 9,599 | 5,534 | |||||
Employee compensation and benefits | 10,136 | 8,932 | |||||
Other | 11,874 | 22,702 | |||||
$ | 40,939 | $ | 43,319 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 24,852 | $ | 24,833 | |||
Pension and related benefits | 54,173 | 65,882 | |||||
Other | 18,922 | 16,851 | |||||
$ | 97,947 | $ | 107,566 |
At December 31, | |||||||||||
2012 | 2013 | 2014 | |||||||||
(Dollars in thousands) | |||||||||||
Balance at beginning of year | $ | 4,153 | $ | 7,573 | $ | 6,718 | |||||
Additions | 5,161 | 2,914 | 8,675 | ||||||||
Deductions | (1,741 | ) | (3,769 | ) | (7,922 | ) | |||||
Balance at end of year | $ | 7,573 | $ | 6,718 | $ | 7,471 |