As of December 31, | For the Period January 1 through August 14, 2015 | For the Period August 15 through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at beginning of year | $ | 7,573 | $ | 6,718 | $ | 7,471 | $ | — | |||||||
Additions | 2,914 | 8,675 | 1,156 | 304 | |||||||||||
Deductions | (3,769 | ) | (7,922 | ) | (2,313 | ) | — | ||||||||
Balance at end of year | $ | 6,718 | $ | 7,471 | $ | 6,314 | $ | 304 |
Postretirement Benefits | Predecessor | Successor | |||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 11,275 | $ | 15,645 | $ | 11,395 | $ | 13,457 | |||||||
Service cost | — | 71 | — | 5 | |||||||||||
Interest cost | 396 | 976 | 142 | 289 | |||||||||||
Foreign currency exchange rates | — | (1,437 | ) | — | (1,489 | ) | |||||||||
Actuarial loss (gain) | 1,151 | 1,511 | (100 | ) | (621 | ) | |||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Plan amendment | — | (294 | ) | — | — | ||||||||||
Net benefit obligation at end of period | $ | 11,586 | $ | 15,404 | $ | 10,859 | $ | 11,296 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 1,236 | 1,068 | 578 | 345 | |||||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | 1,554 | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,204 | ) | $ | (953 | ) | $ | (1,298 | ) | $ | (755 | ) | |||
Non-current liabilities | (10,382 | ) | (14,451 | ) | (9,561 | ) | (10,541 | ) | |||||||
Net amount recognized | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Outstanding unvested at December 31, 2014 | 1,814,130 | $ | 6.31 | |||
Granted | 412,191 | 9.67 | ||||
Vested | (2,037,914 | ) | 6.98 | |||
Forfeited/canceled/expired | (188,407 | ) | 6.42 | |||
Outstanding at December 31, 2015 | — | $ | — |
Number of Shares | Weighted- Average Exercise Price | |||||
Outstanding at December 31, 2014 | 2,042,074 | $ | 10.93 | |||
Granted | — | — | ||||
Forfeited/canceled/expired | (1,562,791 | ) | 12.98 | |||
Exercised | (479,283 | ) | 4.24 | |||
Outstanding at December 31, 2015 | — | $ | — |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Service cost | $ | — | $ | 105 | $ | — | $ | 71 | — | $ | 9 | |||||||||||||
Interest cost | 371 | 994 | 396 | 976 | 223 | 433 | ||||||||||||||||||
Amortization of prior service credit | — | (193 | ) | — | (180 | ) | — | — | ||||||||||||||||
Plan amendment / curtailment | — | — | — | (294 | ) | — | — | |||||||||||||||||
Mark-to-market (gain) loss | (1,284 | ) | (1,210 | ) | 1,151 | 1,456 | — | — | ||||||||||||||||
$ | (913 | ) | $ | (304 | ) | $ | 1,547 | $ | 2,029 | $ | 223 | $ | 442 |
Predecessor | Successor | ||||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 134,787 | $ | 78,421 | $ | 146,790 | $ | 18,512 | |||||||
Service cost | 750 | 1,107 | 386 | 281 | |||||||||||
Interest cost | 5,983 | 2,669 | 2,200 | 94 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Plan amendments / curtailments | — | — | (578 | ) | |||||||||||
Foreign currency exchange changes | — | (6,171 | ) | — | (480 | ) | |||||||||
Actuarial loss (gain) | 21,456 | 11,935 | (3,896 | ) | 377 | ||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Net benefit obligation at end of period | $ | 154,368 | $ | 82,603 | $ | 142,126 | $ | 18,271 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 90,875 | $ | 72,685 | $ | 97,473 | $ | 12,811 | |||||||
Actual return on plan assets | 8,240 | 14,971 | (2,727 | ) | (1,407 | ) | |||||||||
Foreign currency exchange rate changes | — | (5,479 | ) | — | (346 | ) | |||||||||
Employer contributions | 8,947 | 909 | 2,505 | 170 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Fair value of plan assets at end of period | $ | 99,454 | $ | 77,728 | $ | 93,897 | $ | 11,293 | |||||||
Funded status (underfunded): | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (25 | ) | $ | — | $ | (95 | ) | |||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 1,365 | $ | — | $ | — | |||||||
Current liabilities | (439 | ) | (324 | ) | (437 | ) | (253 | ) | |||||||
Non-current liabilities | (54,475 | ) | (5,916 | ) | (47,792 | ) | (6,725 | ) | |||||||
Net amount recognized | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance at January 1 | $ | 9,769 | $ | 7,203 | |||
Additions based on tax positions related to the current year | 881 | 268 | |||||
Additions for tax positions of prior years | 323 | 232 | |||||
Reductions for tax positions of prior years | (2,779 | ) | (1,204 | ) | |||
Lapse of statutes of limitations | — | (1,180 | ) | ||||
Settlements | (988 | ) | (1,503 | ) | |||
Foreign currency impact | (3 | ) | (106 | ) | |||
Balance at December 31 | $ | 7,203 | $ | 3,710 |
Percentage of Plan Assets as of December 31, 2015 (Successor) | |||||
US | Foreign | ||||
Equity securities and return seeking assets | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest incurred on debt | $ | 21,589 | $ | 21,373 | $ | 12,973 | $ | 8,611 | |||||||
Amortization of discount on Senior Subordinated Notes | 11,493 | 12,298 | 12,027 | — | |||||||||||
Accretion of fair value adjustment on Senior Notes | — | — | — | 2,305 | |||||||||||
Amortization of debt issuance costs | 2,504 | 3,339 | 2,118 | — | |||||||||||
Supply Chain Financing mark-up | 451 | 47 | — | — | |||||||||||
Total interest expense | $ | 36,037 | $ | 37,057 | $ | 27,118 | $ | 10,916 |
As of December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
Industrial Materials. | $ | 552,155 | $ | 571,424 | |||
Engineered Solutions | 101,885 | 66,109 | |||||
Total long-lived assets | $ | 654,040 | $ | 637,533 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 1,298 | $ | 755 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 1,298 | 755 | |||||
2017 | 1,233 | 762 | |||||
2018 | 1,152 | 772 | |||||
2019 | 1,061 | 782 | |||||
2020 | 962 | 796 | |||||
2020-2024 | 3,454 | 4,231 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2016: | |||||||
Expected employer contributions | $ | 8,693 | $ | 696 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 9,153 | 893 | |||||
2017 | 9,150 | 883 | |||||
2018 | 9,182 | 820 | |||||
2019 | 9,211 | 665 | |||||
2020 | 9,256 | 738 | |||||
2021-2025 | 46,479 | 5,336 |
• | 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 as of December 31, 2014 | $ | 923 | |
Product warranty charges/adjustments | 576 | ||
Payments and settlements | (557 | ) | |
Balance as of December 31, 2015 | $ | 942 |
(Dollars in thousands) | |||
2016 | $ | 3,957 | |
2017 | 2,423 | ||
2018 | 2,136 | ||
2019 | 1,773 | ||
2020 | 934 | ||
After 2020 | 45 |
Predecessor | Successor | ||||||||||
For year ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Foreign currency translation adjustments | $ | 328,233 | $ | 356,169 | $ | 10,134 | |||||
Commodities and foreign currency derivatives and other, net of tax of ($63), ($68) and ($21) respectively | 8,291 | 7,029 | 123 | ||||||||
Total accumulated comprehensive loss | $ | 336,524 | $ | 363,198 | $ | 10,257 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 (Predecessor) | ||||||||||||||||||||
(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 | |||||||||||||||
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 BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 | ||||||||||
Accounts receivable - affiliates | 51,592 | 9,362 | 20,823 | (81,777 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 20,749 | 82,066 | — | 102,815 | |||||||||||||||
Inventories | — | 123,340 | 172,122 | — | 295,462 | |||||||||||||||
Prepaid and other current assets | — | 8,109 | 13,565 | — | 21,674 | |||||||||||||||
Total current assets | 51,592 | 162,206 | 294,857 | (81,777 | ) | 426,878 | ||||||||||||||
Investment in affiliates | 1,068,028 | 668,113 | — | (1,736,141 | ) | — | ||||||||||||||
Property, plant and equipment | — | 291,494 | 346,039 | — | 637,533 | |||||||||||||||
Deferred income taxes | — | — | 15,327 | — | 15,327 | |||||||||||||||
Goodwill | — | 72,399 | 99,660 | — | 172,059 | |||||||||||||||
Notes receivable - affiliate | — | 46,074 | — | (46,074 | ) | — | ||||||||||||||
Other assets | — | 96,964 | 73,254 | — | 170,218 | |||||||||||||||
Total Assets | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | 159 | $ | 72,418 | $ | 9,200 | $ | (81,777 | ) | $ | — | |||||||||
Accounts payable - trade | — | 18,546 | 30,932 | — | 49,478 | |||||||||||||||
Short-term debt | — | 4,636 | 136 | — | 4,772 | |||||||||||||||
Accrued income and other taxes | — | 5,864 | 3,175 | — | 9,039 | |||||||||||||||
Rationalizations | — | 995 | 2,053 | — | 3,048 | |||||||||||||||
Other accrued liabilities | 2,444 | 11,511 | 15,824 | — | 29,779 | |||||||||||||||
Total current liabilities | 2,603 | 113,970 | 61,320 | (81,777 | ) | 96,116 | ||||||||||||||
Long-term debt - affiliate | 38,661 | — | 7,413 | (46,074 | ) | — | ||||||||||||||
Long-term debt - third party | 267,827 | 93,758 | 870 | — | 362,455 | |||||||||||||||
Other long-term obligations | — | 61,246 | 34,239 | — | 95,485 | |||||||||||||||
Deferred income taxes | — | 248 | 57,182 | — | 57,430 | |||||||||||||||
Stockholders' equity | 810,529 | 1,068,028 | 668,113 | (1,736,141 | ) | 810,529 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2013 (Predecessor) | ||||||||||||||||||||
(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 (loss) | — | 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 losses of subsidiary | (7,857 | ) | (46,050 | ) | — | 53,907 | — | |||||||||||||
Net income (loss) | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net income (loss) | $ | (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 (Predecessor) | ||||||||||||||||||||
(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 (loss) | — | (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 losses of subsidiary | (251,495 | ) | (40,699 | ) | — | 292,194 | — | |||||||||||||
Net income (losses) | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Other comprehensive (loss) income | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive income (loss) | $ | (330,026 | ) | $ | (294,645 | ) | $ | (69,349 | ) | $ | 364,744 | $ | (329,276 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 124,489 | $ | 52,794 | $ | (177,283 | ) | $ | — | |||||||||
Sales - third party | — | 160,761 | 277,170 | — | 437,931 | |||||||||||||||
Net sales | — | 285,250 | 329,964 | (177,283 | ) | 437,931 | ||||||||||||||
Cost of sales | — | 266,369 | 310,731 | (177,283 | ) | 399,817 | ||||||||||||||
Gross profit | — | 18,881 | 19,233 | — | 38,114 | |||||||||||||||
Research and development | — | 5,556 | — | — | 5,556 | |||||||||||||||
Selling and administrative expenses | 6,750 | 44,507 | 29,890 | — | 81,147 | |||||||||||||||
Impairments | — | 35,381 | — | — | 35,381 | |||||||||||||||
Rationalizations | — | (374 | ) | 4,881 | — | 4,507 | ||||||||||||||
Operating loss | (6,750 | ) | (66,189 | ) | (15,538 | ) | — | (88,477 | ) | |||||||||||
Other expense (income), net | — | 804 | 531 | — | 1,335 | |||||||||||||||
Interest expense - affiliate | 3 | 372 | — | (375 | ) | — | ||||||||||||||
Interest expense - third party | 24,366 | 2,481 | 271 | — | 27,118 | |||||||||||||||
Interest income - affiliate | (372 | ) | (3 | ) | — | 375 | — | |||||||||||||
Interest income - third party | — | (5 | ) | (362 | ) | — | (367 | ) | ||||||||||||
Loss before income taxes | (30,747 | ) | (69,838 | ) | (15,978 | ) | — | ` | (116,563 | ) | ||||||||||
(Benefit from) provision for income taxes | — | 385 | 3,701 | — | 4,086 | |||||||||||||||
Equity in losses of subsidiary | (89,902 | ) | (19,679 | ) | — | 109,581 | — | |||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Other comprehensive (loss) income | (26,674 | ) | (26,674 | ) | (28,041 | ) | 54,715 | (26,674 | ) | |||||||||||
Comprehensive (loss) income | $ | (147,323 | ) | $ | (116,576 | ) | $ | (47,720 | ) | $ | 164,296 | $ | (147,323 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 51,262 | $ | 32,611 | $ | (83,873 | ) | $ | — | |||||||||
Sales - third party | — | 86,053 | 162,688 | — | 248,741 | |||||||||||||||
Net sales | — | 137,315 | 195,299 | (83,873 | ) | 248,741 | ||||||||||||||
Cost of sales | — | 132,610 | 181,175 | (83,873 | ) | 229,912 | ||||||||||||||
Gross profit | — | 4,705 | 14,124 | — | 18,829 | |||||||||||||||
Research and development | — | 2,348 | — | — | 2,348 | |||||||||||||||
Selling and administrative expenses | — | 10,775 | 21,340 | — | 32,115 | |||||||||||||||
Rationalizations | — | 71 | 1,004 | — | 1,075 | |||||||||||||||
Operating loss | — | (8,489 | ) | (8,220 | ) | — | (16,709 | ) | ||||||||||||
Other expense (income), net | — | 1,166 | (2,109 | ) | — | (943 | ) | |||||||||||||
Interest expense - affiliate | 226 | — | — | (226 | ) | — | ||||||||||||||
Interest expense - third party | 9,552 | 1,079 | 285 | — | 10,916 | |||||||||||||||
Interest income - affiliate | — | (226 | ) | — | 226 | — | ||||||||||||||
Interest income - third party | — | (5 | ) | (6 | ) | — | (11 | ) | ||||||||||||
Loss before income taxes | (9,778 | ) | (10,503 | ) | (6,390 | ) | — | ` | (26,671 | ) | ||||||||||
(Benefit) provision for income taxes | — | 634 | 6,246 | — | 6,880 | |||||||||||||||
Equity in losses of subsidiary | (23,773 | ) | (12,636 | ) | — | 36,409 | — | |||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Other comprehensive income (loss): | (10,257 | ) | (10,257 | ) | (10,257 | ) | 20,514 | (10,257 | ) | |||||||||||
Comprehensive (loss) income | $ | (43,808 | ) | $ | (34,030 | ) | $ | (22,893 | ) | $ | 56,923 | $ | (43,808 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (13,718 | ) | $ | 72,111 | $ | 58,444 | $ | — | $ | 116,837 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 15,578 | 15,000 | — | (30,578 | ) | — | |||||||||||||
Capital expenditures | — | (52,278 | ) | (34,066 | ) | — | (86,344 | ) | |||||||||||
Insurance recoveries | — | — | 1,500 | — | 1,500 | ||||||||||||||
Proceeds from derivatives (payments on) | — | 437 | (323 | ) | — | 114 | |||||||||||||
Other | — | 322 | 607 | — | 929 | ||||||||||||||
Net cash provided by (used in) investing activities | 15,578 | (36,519 | ) | (32,282 | ) | (30,578 | ) | (83,801 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (15,578 | ) | (15,000 | ) | 30,578 | — | ||||||||||||
Short-term debt borrowings | — | (6 | ) | (7,259 | ) | — | (7,265 | ) | |||||||||||
Revolving Facility borrowings | — | 75,000 | 91,000 | — | 166,000 | ||||||||||||||
Revolving Facility reductions | — | (94,500 | ) | (77,000 | ) | — | (171,500 | ) | |||||||||||
Principal payments on long term debt | — | (166 | ) | (59 | ) | — | (225 | ) | |||||||||||
Supply chain financing | — | — | (17,508 | ) | — | (17,508 | ) | ||||||||||||
Proceeds from exercise of stock options | 448 | — | — | — | 448 | ||||||||||||||
Purchase of treasury shares | (1,825 | ) | — | — | — | (1,825 | ) | ||||||||||||
Refinancing fees and debt issuance costs | (483 | ) | (15 | ) | (62 | ) | — | (560 | ) | ||||||||||
Other | — | — | (5,210 | ) | — | (5,210 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (1,860 | ) | (35,265 | ) | (31,098 | ) | 30,578 | (37,645 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | 327 | (4,936 | ) | — | (4,609 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (820 | ) | — | (820 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,425 | 12,892 | — | 17,317 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 4,752 | $ | 7,136 | $ | — | $ | 11,888 |
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 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 CASH FLOWS | |||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (4,017 | ) | $ | 34,418 | $ | 25,632 | $ | (27,710 | ) | $ | 28,323 | |||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 36,204 | (21,343 | ) | — | (14,861 | ) | — | ||||||||||||
Capital expenditures | — | (20,572 | ) | (11,729 | ) | — | (32,301 | ) | |||||||||||
Payments for derivative instruments | — | (7,595 | ) | (668 | ) | — | (8,263 | ) | |||||||||||
Proceeds from sale of assets | — | 397 | 249 | — | 646 | ||||||||||||||
Net cash provided by (used in) investing activities | 36,204 | (49,113 | ) | (12,148 | ) | (14,861 | ) | (39,918 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 21,343 | (36,204 | ) | — | 14,861 | — | |||||||||||||
Dividends to affiliates | — | — | (27,710 | ) | 27,710 | ||||||||||||||
Short-term debt, net | — | 14,002 | 4,509 | — | 18,511 | ||||||||||||||
Revolving Facility borrowings | — | 126,000 | 34,000 | — | 160,000 | ||||||||||||||
Revolving Facility reductions | — | (87,000 | ) | (12,000 | ) | — | (99,000 | ) | |||||||||||
Repayment of Senior Subordinated Notes | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||||
Issuance of Preferred Shares | 150,000 | — | — | — | 150,000 | ||||||||||||||
Principal payments on long term debt | — | (89 | ) | — | — | (89 | ) | ||||||||||||
Proceeds from exercise of stock options | 32 | — | — | — | 32 | ||||||||||||||
Purchase of treasury shares | (63 | ) | — | — | — | (63 | ) | ||||||||||||
Revolver facility refinancing | — | (5,037 | ) | (31 | ) | — | (5,068 | ) | |||||||||||
Other | (3,499 | ) | — | — | — | (3,499 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (32,187 | ) | 11,672 | (1,232 | ) | 42,571 | 20,824 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (3,023 | ) | 12,252 | — | 9,229 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,746 | ) | — | (1,746 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 5,503 | 12,047 | — | 17,550 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 2,480 | $ | 22,553 | $ | — | $ | 25,033 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (15,930 | ) | $ | 18,471 | $ | 20,574 | $ | — | $ | 23,115 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | — | (17,315 | ) | — | 17,315 | — | |||||||||||||
Capital expenditures | — | (8,438 | ) | (10,004 | ) | — | (18,442 | ) | |||||||||||
Payments for derivative instruments | — | — | 326 | — | 326 | ||||||||||||||
Proceeds from sale of assets | — | 492 | 140 | — | 632 | ||||||||||||||
Net cash provided by (used in) investing activities | — | (25,261 | ) | (9,538 | ) | 17,315 | (17,484 | ) | |||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 17,315 | — | — | (17,315 | ) | — | |||||||||||||
Dividends to affiliates | — | — | — | — | |||||||||||||||
Short-term debt, net | — | (10,998 | ) | (4,506 | ) | — | (15,504 | ) | |||||||||||
Revolving Facility borrowings | — | 52,000 | 10,000 | — | 62,000 | ||||||||||||||
Revolving Facility reductions | — | (36,000 | ) | (32,000 | ) | — | (68,000 | ) | |||||||||||
Issuance of Preferred Shares | (1,385 | ) | — | — | — | (1,385 | ) | ||||||||||||
Principal payments on long term debt | — | (46 | ) | (137 | ) | — | (183 | ) | |||||||||||
Net cash (used in) provided by financing activities | 15,930 | 4,956 | (26,643 | ) | (17,315 | ) | (23,072 | ) | |||||||||||
Decrease in cash and cash equivalents | — | (1,834 | ) | (15,607 | ) | — | (17,441 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (665 | ) | — | (665 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 2,480 | 22,553 | — | 25,033 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 |
• | 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, 2014 | (Dollars in Thousands) | ||||||||||
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 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | — | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 1 | |||||||
Total fair value | $ | — | $ | 1 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 80 | Other current liabilities | $ | 428 | |||||
Total fair value | $ | 80 | $ | 428 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 76 | Other current liabilities | $ | 11 | |||||
Total fair value | $ | 76 | $ | 11 |
Amount of (Gain)/Loss Recognized (Effective Portion) | ||||||||||||||
Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion) | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||
Foreign currency derivatives, excluding tax of $85 and $106 $17, respectively | Cost of goods sold Other expense / (income) / Revenue | $ | (849 | ) | $ | (1,062 | ) | $ | (172 | ) | ||||
Commodity forward derivatives, excluding tax of $(120), $(424) and $0 respectively | Cost of goods sold / Revenue | $ | 328 | $ | 1,161 | $ | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Income | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||
Foreign currency derivatives | Cost of goods sold/Other expense (income) | $ | 1,020 | $ | 1,060 | $ | (560 | ) |
As of December 31, | For the Period July 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||
2013 | 2014 | |||||||||
(Dollars in thousands) | ||||||||||
Weighted average common shares outstanding for basic calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A | ||||||
Add: Effect of stock options and restricted stock | — | — | — | N/A | ||||||
Weighted average common shares outstanding for diluted calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A |
Total | |||
Predecessor | (Dollars in Thousands) | ||
Balance as of December 31, 2013 | $ | 496,810 | |
Impairment | (76,063 | ) | |
Currency translation effect | (618 | ) | |
Balance as of December 31, 2014 | 420,129 | ||
Impairment | (35,381 | ) | |
Currency translation effect | (616 | ) | |
Balance as of August 14, 2015 | $ | 384,132 | |
Successor | |||
Balance as of August 15, 2015 | $ | 170,418 | |
Adjustments | 1,641 | ||
Balance as of December 31, 2015 | 172,059 |
Predecessor | |||||||||||||||||||||||
As of December 31, 2014 | As of August 14, 2015 | ||||||||||||||||||||||
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 | (4,817 | ) | 3,083 | 7,900 | (5,173 | ) | 2,727 | |||||||||||||||
Technology and know-how | 43,349 | (24,940 | ) | 18,409 | 43,349 | (28,649 | ) | 14,700 | |||||||||||||||
Customer related intangible | 110,798 | (57,192 | ) | 53,606 | 110,798 | (63,866 | ) | 46,932 | |||||||||||||||
Total finite-lived intangible assets | $ | 162,047 | $ | (86,949 | ) | $ | 75,098 | $ | 162,047 | $ | (97,688 | ) | $ | 64,359 |
Successor | ||||||||||||
As of December 31, 2015 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||
(Dollars in Thousands) | ||||||||||||
Trade name | 26,800 | (1,048 | ) | 25,752 | ||||||||
Technology and know-how | 63,200 | (3,327 | ) | 59,873 | ||||||||
Customer related intangible | 65,700 | (1,813 | ) | 63,887 | ||||||||
Total finite-lived intangible assets | $ | 155,700 | $ | (6,188 | ) | $ | 149,512 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. | $ | 8,495 | $ | (255,043 | ) | $ | (96,258 | ) | $ | (22,755 | ) | ||||
Non-U.S. | (48,597 | ) | (39,749 | ) | (20,305 | ) | (3,916 | ) | |||||||
$ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S income taxes: | |||||||||||||||
Current | $ | 4,104 | $ | (1,762 | ) | $ | (20 | ) | $ | (52 | ) | ||||
Deferred | (5,652 | ) | (537 | ) | 403 | 686 | |||||||||
(1,548 | ) | (2,299 | ) | 383 | 634 | ||||||||||
Non-U.S. income taxes: | |||||||||||||||
Current | 5,422 | 8,349 | 3,182 | 1,565 | |||||||||||
Deferred | (16,717 | ) | (15,466 | ) | 521 | 4,681 | |||||||||
(11,295 | ) | (7,117 | ) | 3,703 | 6,246 | ||||||||||
Total income tax expense (benefit) | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Tax at statutory U.S. federal rate | $ | (14,036 | ) | $ | (103,177 | ) | $ | (40,797 | ) | $ | (9,335 | ) | |||
U.S. valuation allowance, net | (700 | ) | 73,350 | 27,443 | 8,876 | ||||||||||
State taxes, net of federal tax benefit | (371 | ) | (4,387 | ) | (3,215 | ) | (697 | ) | |||||||
U.S. tax return adjustments to estimated taxes | (1,032 | ) | (368 | ) | — | — | |||||||||
Resolution of uncertain tax positions | (752 | ) | (513 | ) | 71 | 64 | |||||||||
Adjustment for foreign income taxed at different rates | 6,832 | 7,376 | 11,435 | 7,324 | |||||||||||
U.S. tax credits | (2,577 | ) | (1,000 | ) | — | — | |||||||||
Non-U.S. tax exemptions, holidays and credits | — | — | (691 | ) | 228 | ||||||||||
Goodwill impairment | — | 17,161 | 8,026 | — | |||||||||||
Capital loss expiration | — | 2,422 | — | — | |||||||||||
Other | (207 | ) | (280 | ) | 1,814 | 420 | |||||||||
Total income tax (benefit) expense | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
As of December 31, | |||||||
2014 Predecessor | 2015 Successor | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 43,204 | $ | 34,713 | |||
Foreign tax credit and other carryforwards | 64,214 | 115,163 | |||||
Capitalized research and experimental costs | 23,446 | 21,592 | |||||
Environmental reserves | 3,366 | 4,273 | |||||
Inventory adjustments | 19,568 | 12,719 | |||||
Capital loss | 272 | 276 | |||||
Long-term contract option amortization | 2,214 | 2,138 | |||||
Provision for rationalization charges | 17,255 | 5,967 | |||||
Other | 6,288 | 729 | |||||
Total gross deferred tax assets | 179,827 | 197,570 | |||||
Less: valuation allowance | (95,721 | ) | (165,539 | ) | |||
Total deferred tax assets | 84,106 | 32,031 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 59,292 | $ | 54,150 | |||
Debt discount amortization / Deferred financing fees | 3,301 | 7,666 | |||||
Inventory | 6,865 | 4,985 | |||||
Goodwill and acquired intangibles | 1,046 | 2,686 | |||||
Other | 3,761 | 4,647 | |||||
Total deferred tax liabilities | 74,265 | 74,134 | |||||
Net deferred tax (liability) asset | $ | 9,841 | $ | (42,103 | ) |
For the year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance as of January 1 | $ | 26,312 | $ | 20,411 | |||
(Credited) / charged to income | (614 | ) | 74,157 | ||||
Translation adjustment | (746 | ) | (800 | ) | |||
Changes attributable to movement in underlying assets | (4,541 | ) | 1,953 | ||||
Balance as of December 31 | $ | 20,411 | $ | 95,721 |
Predecessor | (Dollars in thousands) | ||
Balance at January 1, 2015 | $ | 95,721 | |
(Credited) / charged to income | 29,363 | ||
Translation adjustment | (1,467 | ) | |
Changes attributable to movement in underlying assets | (8,168 | ) | |
Balance as of August 14, 2015 | $ | 115,449 | |
Successor | |||
(Credited) / charged to income | 6,780 | ||
Translation adjustment | (101 | ) | |
Changes attributable to movement in underlying assets | 43,411 | ||
Balance as of December 31, 2015 | $ | 165,539 |
As of December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance at January 1 | $ | 9,769 | $ | 7,203 | |||
Additions based on tax positions related to the current year | 881 | 268 | |||||
Additions for tax positions of prior years | 323 | 232 | |||||
Reductions for tax positions of prior years | (2,779 | ) | (1,204 | ) | |||
Lapse of statutes of limitations | — | (1,180 | ) | ||||
Settlements | (988 | ) | (1,503 | ) | |||
Foreign currency impact | (3 | ) | (106 | ) | |||
Balance at December 31 | $ | 7,203 | $ | 3,710 |
Predecessor | (Dollars in thousands) | ||
Balance at January 1, 2015 | $ | 3,710 | |
Foreign currency impact | (21 | ) | |
Balance as of August 14, 2015 | $ | 3,689 | |
Successor | |||
Additions for tax positions of prior years | 301 | ||
Foreign currency impact | (69 | ) | |
Balance as of December 31, 2015 | $ | 3,921 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest incurred on debt | $ | 21,589 | $ | 21,373 | $ | 12,973 | $ | 8,611 | |||||||
Amortization of discount on Senior Subordinated Notes | 11,493 | 12,298 | 12,027 | — | |||||||||||
Accretion of fair value adjustment on Senior Notes | — | — | — | 2,305 | |||||||||||
Amortization of debt issuance costs | 2,504 | 3,339 | 2,118 | — | |||||||||||
Supply Chain Financing mark-up | 451 | 47 | — | — | |||||||||||
Total interest expense | $ | 36,037 | $ | 37,057 | $ | 27,118 | $ | 10,916 |
As of December 31, 2014 | As of December 31, 2015 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 40,000 | $ | 98,000 | |||
Senior Subordinated Notes | 187,973 | — | |||||
Senior Notes | 300,000 | 267,827 | |||||
Other Debt | 1,746 | 1,400 | |||||
Total Debt | 529,719 | 367,227 | |||||
Less: Short-term Debt | (188,104 | ) | (4,772 | ) | |||
Long-term Debt | $ | 341,615 | $ | 362,455 |
Purchase Consideration | |||||||||||
(In thousands except share price) | |||||||||||
# Shares | Unit Price | Amount | |||||||||
Convertible Preferred Equity | |||||||||||
Series A and B | 150 | $ | 1,000.00 | $ | 150,000 | ||||||
Common Equity | |||||||||||
Common Shares | 139,397 | $ | 5.05 | $ | 703,955 | ||||||
Net value of options | $ | 382 | |||||||||
Total | $ | 854,337 |
Net identifiable assets acquired | Previously Reported | |||
Cash | $ | 25,032 | ||
Accounts receivable | 94,298 | |||
Inventories | 346,645 | |||
Property, plant and equipment | 650,405 | |||
Intangible assets | 155,700 | |||
Deferred tax assets | 40,904 | |||
Prepaid and other current assets | 49,716 | |||
Other non-current assets | 8,428 | |||
Accounts payable | (68,005 | ) | ||
Short-term debt | (18,779 | ) | ||
Other accrued liabilities | (53,252 | ) | ||
Long-term debt | (367,811 | ) | ||
Other long-term liabilities | (101,768 | ) | ||
Deferred tax liabilities | (79,235 | ) | ||
Net identifiable assets acquired | $ | 682,278 | ||
Goodwill | $ | 172,059 | ||
Net assets acquired | $ | 854,337 |
• | 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) | |||
2016 | $ | 3,957 | |
2017 | 2,423 | ||
2018 | 2,136 | ||
2019 | 1,773 | ||
2020 | 934 | ||
After 2020 | 45 |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 870 | $ | 1,177 | $ | 750 | $ | 1,107 | |||||||
Interest cost | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||
Expected return on assets | (4,505 | ) | (2,339 | ) | (5,215 | ) | (2,516 | ) | |||||||
Amortization of prior service cost | — | 25 | — | 2 | |||||||||||
Curtailment gain | — | — | — | (28 | ) | ||||||||||
Mark-to-market loss (gain) | (11,907 | ) | (393 | ) | 18,431 | (534 | ) | ||||||||
$ | (10,104 | ) | $ | 1,012 | $ | 19,949 | $ | 700 |
Predecessor | Successor | ||||||||||||||
For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 151 | $ | 98 | $ | 386 | $ | 281 | |||||||
Interest cost | 854 | 554 | 2,200 | 94 | |||||||||||
Expected return on assets | — | — | (1,885 | ) | (59 | ) | |||||||||
Amortization of prior service cost | — | (12 | ) | — | — | ||||||||||
Curtailment gain | — | — | — | (675 | ) | ||||||||||
Mark-to-market loss (gain) | — | — | 716 | 1,843 | |||||||||||
$ | 1,005 | $ | 640 | $ | 1,417 | $ | 1,484 |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Amortization of prior service cost | $ | — | $ | (25 | ) | $ | — | $ | (26 | ) | |||||
Addition to prior service cost | — | (246 | ) | — | — | ||||||||||
Effect of exchange rates | — | 11 | — | 8 | |||||||||||
Total recognized in other comprehensive loss | $ | — | $ | (260 | ) | $ | — | $ | (18 | ) | |||||
Total recognized in pension costs and other comprehensive loss | $ | (10,104 | ) | $ | 752 | $ | 19,949 | $ | 682 |
Predecessor | ||||||||
For the Period January 1 Through August 14, 2015 | ||||||||
U.S. | Foreign | |||||||
(Dollars in thousands) | ||||||||
Amortization of prior service cost | $ | — | $ | 28 | ||||
Addition to prior service cost | — | — | ||||||
Effect of exchange rates | — | — | ||||||
Total recognized in other comprehensive loss | $ | — | $ | 28 | ||||
Total recognized in pension costs and other comprehensive loss | $ | — | $ | 28 |
Predecessor | Successor | ||||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 134,787 | $ | 78,421 | $ | 146,790 | $ | 18,512 | |||||||
Service cost | 750 | 1,107 | 386 | 281 | |||||||||||
Interest cost | 5,983 | 2,669 | 2,200 | 94 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Plan amendments / curtailments | — | — | (578 | ) | |||||||||||
Foreign currency exchange changes | — | (6,171 | ) | — | (480 | ) | |||||||||
Actuarial loss (gain) | 21,456 | 11,935 | (3,896 | ) | 377 | ||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Net benefit obligation at end of period | $ | 154,368 | $ | 82,603 | $ | 142,126 | $ | 18,271 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | 90,875 | $ | 72,685 | $ | 97,473 | $ | 12,811 | |||||||
Actual return on plan assets | 8,240 | 14,971 | (2,727 | ) | (1,407 | ) | |||||||||
Foreign currency exchange rate changes | — | (5,479 | ) | — | (346 | ) | |||||||||
Employer contributions | 8,947 | 909 | 2,505 | 170 | |||||||||||
Participant contributions | — | 288 | — | 79 | |||||||||||
Benefits paid | (8,608 | ) | (5,646 | ) | (3,354 | ) | (14 | ) | |||||||
Fair value of plan assets at end of period | $ | 99,454 | $ | 77,728 | $ | 93,897 | $ | 11,293 | |||||||
Funded status (underfunded): | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (25 | ) | $ | — | $ | (95 | ) | |||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | 1,365 | $ | — | $ | — | |||||||
Current liabilities | (439 | ) | (324 | ) | (437 | ) | (253 | ) | |||||||
Non-current liabilities | (54,475 | ) | (5,916 | ) | (47,792 | ) | (6,725 | ) | |||||||
Net amount recognized | $ | (54,914 | ) | $ | (4,875 | ) | $ | (48,229 | ) | $ | (6,978 | ) |
Predecessor | Successor | ||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 906 | $ | — | $ | — | $ | 906 | $ | 1,986 | $ | — | $ | — | $ | 1,986 | |||||||||||||||
Collective trusts | — | 98,548 | — | 98,548 | — | 91,911 | — | 91,911 | |||||||||||||||||||||||
Total | $ | 906 | $ | 98,548 | $ | — | $ | 99,454 | $ | 1,986 | $ | 91,911 | $ | — | $ | 93,897 | |||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,364 | $ | — | $ | — | $ | 1,364 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Foreign government bonds | — | 1,038 | — | 1,038 | — | 840 | — | 840 | |||||||||||||||||||||||
Investment contracts | — | — | 61,990 | 61,990 | — | — | — | — | |||||||||||||||||||||||
Fixed insurance contracts | — | — | 13,336 | 13,336 | — | — | 10,453 | 10,453 | |||||||||||||||||||||||
Total | $ | 1,364 | $ | 1,038 | $ | 75,326 | $ | 77,728 | $ | — | $ | 840 | $ | 10,453 | $ | 11,293 |
Investment Contracts | Fixed Insurance Contracts | ||||||
Balance at January 1, 2014 (Predecessor) | $ | 58,127 | $ | 10,865 | |||
Gain / contributions / currency impact | 5,585 | 2,471 | |||||
Distributions | (1,722 | ) | — | ||||
Balance at December 31, 2014 (Predecessor) | 61,990 | 13,336 | |||||
Gain / contributions / currency impact | — | (2,883 | ) | ||||
Distributions | (61,990 | ) | — | ||||
Balance at December 31, 2015 (Successor) | $ | — | $ | 10,453 |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 3.33 | % | 3.86 | % | |
Rate of compensation increase | 2.08 | % | 1.84 | % |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.20 | % | 3.79 | % | |
Expected return on plan assets | 4.77 | % | 3.99 | % | |
Rate of compensation increase | 2.42 | % | 2.08 | % |
Percentage of Plan Assets as of December 31, 2015 (Successor) | |||||
US | Foreign | ||||
Equity securities and return seeking assets | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
Predecessor | Successor | ||||||||||||||
2014 | 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 154,368 | $ | 18,756 | $ | 142,126 | $ | 16,749 | |||||||
Fair value of plan assets | 99,454 | 14,374 | 93,897 | 11,293 |
Predecessor | Successor | ||||||||||||||
2014 | 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 154,368 | $ | 20,617 | $ | 142,126 | $ | 18,271 | |||||||
Fair value of plan assets | 99,454 | 14,374 | 93,897 | 11,293 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2016: | |||||||
Expected employer contributions | $ | 8,693 | $ | 696 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 9,153 | 893 | |||||
2017 | 9,150 | 883 | |||||
2018 | 9,182 | 820 | |||||
2019 | 9,211 | 665 | |||||
2020 | 9,256 | 738 | |||||
2021-2025 | 46,479 | 5,336 |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Service cost | $ | — | $ | 105 | $ | — | $ | 71 | — | $ | 9 | |||||||||||||
Interest cost | 371 | 994 | 396 | 976 | 223 | 433 | ||||||||||||||||||
Amortization of prior service credit | — | (193 | ) | — | (180 | ) | — | — | ||||||||||||||||
Plan amendment / curtailment | — | — | — | (294 | ) | — | — | |||||||||||||||||
Mark-to-market (gain) loss | (1,284 | ) | (1,210 | ) | 1,151 | 1,456 | — | — | ||||||||||||||||
$ | (913 | ) | $ | (304 | ) | $ | 1,547 | $ | 2,029 | $ | 223 | $ | 442 |
Successor | ||||||||
For the Period August 15 Through December 31, 2015 | ||||||||
U.S. | Foreign | |||||||
Service cost | $ | — | $ | 5 | ||||
Interest cost | 142 | 289 | ||||||
Amortization of prior service credit | — | — | ||||||
Plan amendment / curtailment | — | — | ||||||
Mark-to-market (gain) loss | (100 | ) | (621 | ) | ||||
$ | 42 | $ | (327 | ) |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | 193 | $ | — | $ | 180 | $ | — | $ | (95 | ) | |||||||||||
Effect of exchange rates | — | 133 | — | 148 | — | — | ||||||||||||||||||
Total recognized in other comprehensive income | $ | — | $ | 326 | $ | — | $ | 328 | $ | — | $ | (95 | ) | |||||||||||
Total recognized in net post retirement cost (benefit) and other comprehensive income | $ | (913 | ) | $ | 22 | $ | 1,547 | $ | 2,357 | $ | — | $ | (95 | ) |
Postretirement Benefits | Predecessor | Successor | |||||||||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period | $ | 11,275 | $ | 15,645 | $ | 11,395 | $ | 13,457 | |||||||
Service cost | — | 71 | — | 5 | |||||||||||
Interest cost | 396 | 976 | 142 | 289 | |||||||||||
Foreign currency exchange rates | — | (1,437 | ) | — | (1,489 | ) | |||||||||
Actuarial loss (gain) | 1,151 | 1,511 | (100 | ) | (621 | ) | |||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Plan amendment | — | (294 | ) | — | — | ||||||||||
Net benefit obligation at end of period | $ | 11,586 | $ | 15,404 | $ | 10,859 | $ | 11,296 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 1,236 | 1,068 | 578 | 345 | |||||||||||
Gross benefits paid | (1,236 | ) | (1,068 | ) | (578 | ) | (345 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | 1,554 | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,204 | ) | $ | (953 | ) | $ | (1,298 | ) | $ | (755 | ) | |||
Non-current liabilities | (10,382 | ) | (14,451 | ) | (9,561 | ) | (10,541 | ) | |||||||
Net amount recognized | $ | (11,586 | ) | $ | (15,404 | ) | $ | (10,859 | ) | $ | (11,296 | ) |
Postretirement Benefit Obligations | Predecessor | Successor | |||
As of December 31, | |||||
2014 | 2015 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.82 | % | 5.10 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.55 | % | 6.67 | % | |
Ultimate | 6.18 | % | 6.48 | % | |
Years to ultimate | 1 | 2 |
Postretirement Benefit Costs | Predecessor | Successor | |||
2014 | 2015 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 5.29 | % | 4.91 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.39 | % | 6.55 | % | |
Ultimate | 6.18 | % | 6.18 | % | |
Years to ultimate | 2 | 0 |
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 | $ | 27 | $ | (3 | ) | $ | (33 | ) | |||||
Effect on benefit obligations | $ | 121 | $ | 797 | $ | (115 | ) | $ | (687 | ) |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2015: | |||||||
Expected employer contributions | $ | 1,298 | $ | 755 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2016 | 1,298 | 755 | |||||
2017 | 1,233 | 762 | |||||
2018 | 1,152 | 772 | |||||
2019 | 1,061 | 782 | |||||
2020 | 962 | 796 | |||||
2020-2024 | 3,454 | 4,231 |
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 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | $ | 3,649 | $ | — | $ | 26,037 | |||||||
Inventory loss | 961 | 13,711 | — | 14,672 | |||||||||||
Fixed asset write-offs and other | 5,552 | 1,278 | — | 6,830 | |||||||||||
Recorded in Research and Development | |||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||
Other | 89 | 121 | 515 | 725 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 5,040 | 3,113 | 2,845 | 10,998 | |||||||||||
Contract terminations | 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 Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | $ | — | $ | 940 | 1,372 | ||||||||
Inventory loss | (33 | ) | 975 | — | 942 | ||||||||||
Fixed asset write-offs and other | 1,715 | 1,078 | — | 2,793 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 400 | 755 | 954 | 2,109 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 157 | 4,288 | (168 | ) | 4,277 | ||||||||||
Contract terminations | 25 | 204 | — | 229 | |||||||||||
Total | $ | 2,696 | $ | 7,300 | $ | 1,726 | $ | 11,722 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (639 | ) | $ | 206 | $ | — | $ | (433 | ) | |||||
Fixed asset write-offs and other | 329 | 697 | — | 1,026 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 135 | 1,323 | 290 | 1,748 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 154 | 769 | 71 | 994 | |||||||||||
Contract terminations | 59 | 22 | — | 81 | |||||||||||
Total | $ | 38 | $ | 3,017 | $ | 361 | $ | 3,416 |
For the Year Ended December 31, 2013 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | 827 | — | 23,215 | ||||||||||
Inventory loss | 961 | 485 | — | 1,446 | |||||||||||
Fixed asset write-offs and other | 5,374 | 233 | 5,607 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 89 | — | 89 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 433 | (28 | ) | — | 405 | ||||||||||
Contract terminations | 469 | — | — | 469 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 29,714 | $ | 1,517 | $ | — | $ | 31,231 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | — | — | 432 | ||||||||||
Inventory loss | (33 | ) | — | — | (33 | ) | |||||||||
Fixed asset write-offs and other | 1,715 | 270 | 1,985 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 97 | 156 | — | 253 | |||||||||||
Contract terminations | 25 | — | — | 25 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 2,236 | $ | 426 | $ | — | $ | 2,662 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (278 | ) | $ | (29 | ) | $ | (307 | ) | ||||||
Fixed asset write-offs and other | 329 | 71 | 400 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 245 | — | — | 245 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 177 | — | — | 177 | |||||||||||
Contract terminations | 59 | — | — | 59 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 532 | $ | 42 | $ | — | $ | 574 |
(Dollars in thousands) | |||
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 | ||
Charges incurred | 40 | ||
Change in estimates | 227 | ||
Payments and settlements | (1,102 | ) | |
Effect of change in currency exchange rates | (155 | ) | |
Balance as of August 14, 2015 | $ | 45 | |
Charges incurred | 154 | ||
Change in estimates | 67 | ||
Payments and settlements | (17 | ) | |
Effect of change in currency exchange rates | (59 | ) | |
Balance as of December 31, 2015 | $ | 190 |
Predecessor | Successor | |||||||||||
2014 Engineered Solutions Rationalization | For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||
Engineered Solutions Segment | ||||||||||||
(Dollars in thousands) | ||||||||||||
Recorded in Cost of Sales | ||||||||||||
Accelerated depreciation | $ | 2,802 | $ | — | $ | — | ||||||
Inventory loss | 13,225 | 571 | (80 | ) | ||||||||
Fixed asset write-offs and other | 1,046 | 372 | (229 | ) | ||||||||
Recorded in Rationalizations | ||||||||||||
Severance and related costs | 2,498 | (713 | ) | — | ||||||||
Contract terminations | 195 | 50 | — | |||||||||
Total | $ | 19,766 | $ | 280 | $ | (309 | ) |
(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 | |
Charges incurred | 50 | ||
Change in estimates | (713 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | 1 | ||
Balance as of August 14, 2015 | $ | 77 | |
Change in estimates | (5 | ) | |
Payments and settlements | (72 | ) | |
Balance as of December 31, 2015 | $ | — |
2014 Corporate, Research and Development Plan | For the Year Ended December 31, 2014 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Accelerated depreciation | $ | — | $ | 20 | $ | — | $ | 20 | |||||||||
Fixed asset write-offs and other | 178 | — | — | 178 | |||||||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||||
Other | — | — | 515 | 515 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 4,608 | 644 | 2,844 | 8,096 | |||||||||||||
Contract terminations | — | 73 | 11 | 84 | |||||||||||||
Total | $ | 4,786 | $ | 737 | $ | 6,290 | $ | 11,813 |
2014 Corporate, Research and Development Plan | For the Period January 1 Through August 14, 2015 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Fixed asset write-offs and other | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 940 | 940 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | 400 | — | 954 | 1,354 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 60 | 8 | (168 | ) | (100 | ) | |||||||||||
Total | $ | 460 | $ | 9 | $ | 1,726 | $ | 2,195 |
2014 Corporate, Research and Development Plan | For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | $ | — | $ | — | $ | 290 | $ | 290 | |||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | (23 | ) | — | 71 | 48 | ||||||||||||
Total | $ | (23 | ) | $ | — | $ | 361 | $ | 338 |
(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 | |
Charges incurred | (33 | ) | |
Change in estimates | (67 | ) | |
Payments and settlements | (4,611 | ) | |
Effect of change in currency exchange rates | (81 | ) | |
Balance as of August 14, 2015 | $ | 2,081 | |
Change in estimates | 47 | ||
Payments and settlements | (1,127 | ) | |
Effect of change in currency exchange rates | (57 | ) | |
Balance as of December 31, 2015 | $ | 944 |
Predecessor | Successor | |||||||
2015 Advanced Graphite Materials Rationalization | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||
Engineered Solutions Segment | ||||||||
(Dollars in thousands) | ||||||||
Recorded in Cost of Sales | ||||||||
Inventory loss | $ | 404 | $ | (47 | ) | |||
Fixed asset write-offs and other | 434 | 855 | ||||||
Recorded in Selling and General Administrative | ||||||||
Other | 755 | 1,213 | ||||||
Recorded in Rationalizations | ||||||||
Severance and related costs | 4,838 | 769 | ||||||
Contract terminations | 154 | 22 | ||||||
Total | $ | 6,585 | $ | 2,812 |
2015 Advanced Graphite Materials Rationalization | |||
(Dollars in thousands) | |||
Balance as of December 31, 2014 | $ | — | |
Charges incurred | 5,053 | ||
Change in estimates | (38 | ) | |
Payments and settlements | (329 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of August 14, 2015 | $ | 4,686 | |
Charges incurred | 647 | ||
Payments and settlements | (3,418 | ) | |
Balance as of December 31, 2015 | $ | 1,915 |
At December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 122,218 | $ | 80,408 | |||
Work in process | 176,141 | 136,858 | |||||
Finished goods | 84,544 | 78,196 | |||||
382,903 | 295,462 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,923 | $ | 9,297 | |||
Current portion of deferred taxes | 28,426 | — | |||||
Value added tax and other indirect taxes receivable | 39,837 | 10,087 | |||||
Other current assets | 3,437 | 2,290 | |||||
$ | 81,623 | $ | 21,674 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 36,375 | $ | 54,064 | |||
Buildings | 193,427 | 76,331 | |||||
Machinery and equipment and other | 1,212,120 | 486,194 | |||||
Construction in progress | 58,899 | 44,291 | |||||
$ | 1,500,821 | $ | 660,880 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 6,151 | $ | 4,588 | |||
Customer prepayments | 5,534 | 559 | |||||
Employee compensation and benefits | 8,932 | 7,842 | |||||
Other | 22,702 | 16,790 | |||||
$ | 43,319 | $ | 29,779 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 24,833 | $ | 20,019 | |||
Pension and related benefits | 65,882 | 55,364 | |||||
Other | 16,851 | 20,102 | |||||
$ | 107,566 | $ | 95,485 |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Amortization of prior service cost | $ | — | $ | (25 | ) | $ | — | $ | (26 | ) | |||||
Addition to prior service cost | — | (246 | ) | — | — | ||||||||||
Effect of exchange rates | — | 11 | — | 8 | |||||||||||
Total recognized in other comprehensive loss | $ | — | $ | (260 | ) | $ | — | $ | (18 | ) | |||||
Total recognized in pension costs and other comprehensive loss | $ | (10,104 | ) | $ | 752 | $ | 19,949 | $ | 682 |
Predecessor | ||||||||
For the Period January 1 Through August 14, 2015 | ||||||||
U.S. | Foreign | |||||||
(Dollars in thousands) | ||||||||
Amortization of prior service cost | $ | — | $ | 28 | ||||
Addition to prior service cost | — | — | ||||||
Effect of exchange rates | — | — | ||||||
Total recognized in other comprehensive loss | $ | — | $ | 28 | ||||
Total recognized in pension costs and other comprehensive loss | $ | — | $ | 28 |
Postretirement Benefit Obligations | Predecessor | Successor | |||
As of December 31, | |||||
2014 | 2015 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 4.82 | % | 5.10 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.55 | % | 6.67 | % | |
Ultimate | 6.18 | % | 6.48 | % | |
Years to ultimate | 1 | 2 |
Postretirement Benefit Costs | Predecessor | Successor | |||
2014 | 2015 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 5.29 | % | 4.91 | % | |
Health care cost trend on covered charges: | |||||
Initial | 7.39 | % | 6.55 | % | |
Ultimate | 6.18 | % | 6.18 | % | |
Years to ultimate | 2 | 0 |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 3.33 | % | 3.86 | % | |
Rate of compensation increase | 2.08 | % | 1.84 | % |
Pension Benefit Obligations | As of December 31, | ||||
2014 | 2015 | ||||
Predecessor | Successor | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.20 | % | 3.79 | % | |
Expected return on plan assets | 4.77 | % | 3.99 | % | |
Rate of compensation increase | 2.42 | % | 2.08 | % |
Investment Contracts | Fixed Insurance Contracts | ||||||
Balance at January 1, 2014 (Predecessor) | $ | 58,127 | $ | 10,865 | |||
Gain / contributions / currency impact | 5,585 | 2,471 | |||||
Distributions | (1,722 | ) | — | ||||
Balance at December 31, 2014 (Predecessor) | 61,990 | 13,336 | |||||
Gain / contributions / currency impact | — | (2,883 | ) | ||||
Distributions | (61,990 | ) | — | ||||
Balance at December 31, 2015 (Successor) | $ | — | $ | 10,453 |
Purchase Consideration | |||||||||||
(In thousands except share price) | |||||||||||
# Shares | Unit Price | Amount | |||||||||
Convertible Preferred Equity | |||||||||||
Series A and B | 150 | $ | 1,000.00 | $ | 150,000 | ||||||
Common Equity | |||||||||||
Common Shares | 139,397 | $ | 5.05 | $ | 703,955 | ||||||
Net value of options | $ | 382 | |||||||||
Total | $ | 854,337 |
Net identifiable assets acquired | Previously Reported | |||
Cash | $ | 25,032 | ||
Accounts receivable | 94,298 | |||
Inventories | 346,645 | |||
Property, plant and equipment | 650,405 | |||
Intangible assets | 155,700 | |||
Deferred tax assets | 40,904 | |||
Prepaid and other current assets | 49,716 | |||
Other non-current assets | 8,428 | |||
Accounts payable | (68,005 | ) | ||
Short-term debt | (18,779 | ) | ||
Other accrued liabilities | (53,252 | ) | ||
Long-term debt | (367,811 | ) | ||
Other long-term liabilities | (101,768 | ) | ||
Deferred tax liabilities | (79,235 | ) | ||
Net identifiable assets acquired | $ | 682,278 | ||
Goodwill | $ | 172,059 | ||
Net assets acquired | $ | 854,337 |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||
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 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | — | Other current liabilities | $ | — | |||||
Commodity derivative contracts | Prepaid and other current assets | — | Other current liabilities | 1 | |||||||
Total fair value | $ | — | $ | 1 |
Predecessor | Successor | ||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2015 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 906 | $ | — | $ | — | $ | 906 | $ | 1,986 | $ | — | $ | — | $ | 1,986 | |||||||||||||||
Collective trusts | — | 98,548 | — | 98,548 | — | 91,911 | — | 91,911 | |||||||||||||||||||||||
Total | $ | 906 | $ | 98,548 | $ | — | $ | 99,454 | $ | 1,986 | $ | 91,911 | $ | — | $ | 93,897 | |||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,364 | $ | — | $ | — | $ | 1,364 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Foreign government bonds | — | 1,038 | — | 1,038 | — | 840 | — | 840 | |||||||||||||||||||||||
Investment contracts | — | — | 61,990 | 61,990 | — | — | — | — | |||||||||||||||||||||||
Fixed insurance contracts | — | — | 13,336 | 13,336 | — | — | 10,453 | 10,453 | |||||||||||||||||||||||
Total | $ | 1,364 | $ | 1,038 | $ | 75,326 | $ | 77,728 | $ | — | $ | 840 | $ | 10,453 | $ | 11,293 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S income taxes: | |||||||||||||||
Current | $ | 4,104 | $ | (1,762 | ) | $ | (20 | ) | $ | (52 | ) | ||||
Deferred | (5,652 | ) | (537 | ) | 403 | 686 | |||||||||
(1,548 | ) | (2,299 | ) | 383 | 634 | ||||||||||
Non-U.S. income taxes: | |||||||||||||||
Current | 5,422 | 8,349 | 3,182 | 1,565 | |||||||||||
Deferred | (16,717 | ) | (15,466 | ) | 521 | 4,681 | |||||||||
(11,295 | ) | (7,117 | ) | 3,703 | 6,246 | ||||||||||
Total income tax expense (benefit) | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
Predecessor | Successor | ||||||||||
For year ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Foreign currency translation adjustments | $ | 328,233 | $ | 356,169 | $ | 10,134 | |||||
Commodities and foreign currency derivatives and other, net of tax of ($63), ($68) and ($21) respectively | 8,291 | 7,029 | 123 | ||||||||
Total accumulated comprehensive loss | $ | 336,524 | $ | 363,198 | $ | 10,257 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2014 (Predecessor) | ||||||||||||||||||||
(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 | |||||||||||||||
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 BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 | ||||||||||
Accounts receivable - affiliates | 51,592 | 9,362 | 20,823 | (81,777 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 20,749 | 82,066 | — | 102,815 | |||||||||||||||
Inventories | — | 123,340 | 172,122 | — | 295,462 | |||||||||||||||
Prepaid and other current assets | — | 8,109 | 13,565 | — | 21,674 | |||||||||||||||
Total current assets | 51,592 | 162,206 | 294,857 | (81,777 | ) | 426,878 | ||||||||||||||
Investment in affiliates | 1,068,028 | 668,113 | — | (1,736,141 | ) | — | ||||||||||||||
Property, plant and equipment | — | 291,494 | 346,039 | — | 637,533 | |||||||||||||||
Deferred income taxes | — | — | 15,327 | — | 15,327 | |||||||||||||||
Goodwill | — | 72,399 | 99,660 | — | 172,059 | |||||||||||||||
Notes receivable - affiliate | — | 46,074 | — | (46,074 | ) | — | ||||||||||||||
Other assets | — | 96,964 | 73,254 | — | 170,218 | |||||||||||||||
Total Assets | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | 159 | $ | 72,418 | $ | 9,200 | $ | (81,777 | ) | $ | — | |||||||||
Accounts payable - trade | — | 18,546 | 30,932 | — | 49,478 | |||||||||||||||
Short-term debt | — | 4,636 | 136 | — | 4,772 | |||||||||||||||
Accrued income and other taxes | — | 5,864 | 3,175 | — | 9,039 | |||||||||||||||
Rationalizations | — | 995 | 2,053 | — | 3,048 | |||||||||||||||
Other accrued liabilities | 2,444 | 11,511 | 15,824 | — | 29,779 | |||||||||||||||
Total current liabilities | 2,603 | 113,970 | 61,320 | (81,777 | ) | 96,116 | ||||||||||||||
Long-term debt - affiliate | 38,661 | — | 7,413 | (46,074 | ) | — | ||||||||||||||
Long-term debt - third party | 267,827 | 93,758 | 870 | — | 362,455 | |||||||||||||||
Other long-term obligations | — | 61,246 | 34,239 | — | 95,485 | |||||||||||||||
Deferred income taxes | — | 248 | 57,182 | — | 57,430 | |||||||||||||||
Stockholders' equity | 810,529 | 1,068,028 | 668,113 | (1,736,141 | ) | 810,529 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 1,119,620 | $ | 1,337,250 | $ | 829,137 | $ | (1,863,992 | ) | $ | 1,422,015 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (13,718 | ) | $ | 72,111 | $ | 58,444 | $ | — | $ | 116,837 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 15,578 | 15,000 | — | (30,578 | ) | — | |||||||||||||
Capital expenditures | — | (52,278 | ) | (34,066 | ) | — | (86,344 | ) | |||||||||||
Insurance recoveries | — | — | 1,500 | — | 1,500 | ||||||||||||||
Proceeds from derivatives (payments on) | — | 437 | (323 | ) | — | 114 | |||||||||||||
Other | — | 322 | 607 | — | 929 | ||||||||||||||
Net cash provided by (used in) investing activities | 15,578 | (36,519 | ) | (32,282 | ) | (30,578 | ) | (83,801 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (15,578 | ) | (15,000 | ) | 30,578 | — | ||||||||||||
Short-term debt borrowings | — | (6 | ) | (7,259 | ) | — | (7,265 | ) | |||||||||||
Revolving Facility borrowings | — | 75,000 | 91,000 | — | 166,000 | ||||||||||||||
Revolving Facility reductions | — | (94,500 | ) | (77,000 | ) | — | (171,500 | ) | |||||||||||
Principal payments on long term debt | — | (166 | ) | (59 | ) | — | (225 | ) | |||||||||||
Supply chain financing | — | — | (17,508 | ) | — | (17,508 | ) | ||||||||||||
Proceeds from exercise of stock options | 448 | — | — | — | 448 | ||||||||||||||
Purchase of treasury shares | (1,825 | ) | — | — | — | (1,825 | ) | ||||||||||||
Refinancing fees and debt issuance costs | (483 | ) | (15 | ) | (62 | ) | — | (560 | ) | ||||||||||
Other | — | — | (5,210 | ) | — | (5,210 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (1,860 | ) | (35,265 | ) | (31,098 | ) | 30,578 | (37,645 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | — | 327 | (4,936 | ) | — | (4,609 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (820 | ) | — | (820 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 4,425 | 12,892 | — | 17,317 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 4,752 | $ | 7,136 | $ | — | $ | 11,888 |
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 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 CASH FLOWS | |||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (4,017 | ) | $ | 34,418 | $ | 25,632 | $ | (27,710 | ) | $ | 28,323 | |||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 36,204 | (21,343 | ) | — | (14,861 | ) | — | ||||||||||||
Capital expenditures | — | (20,572 | ) | (11,729 | ) | — | (32,301 | ) | |||||||||||
Payments for derivative instruments | — | (7,595 | ) | (668 | ) | — | (8,263 | ) | |||||||||||
Proceeds from sale of assets | — | 397 | 249 | — | 646 | ||||||||||||||
Net cash provided by (used in) investing activities | 36,204 | (49,113 | ) | (12,148 | ) | (14,861 | ) | (39,918 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 21,343 | (36,204 | ) | — | 14,861 | — | |||||||||||||
Dividends to affiliates | — | — | (27,710 | ) | 27,710 | ||||||||||||||
Short-term debt, net | — | 14,002 | 4,509 | — | 18,511 | ||||||||||||||
Revolving Facility borrowings | — | 126,000 | 34,000 | — | 160,000 | ||||||||||||||
Revolving Facility reductions | — | (87,000 | ) | (12,000 | ) | — | (99,000 | ) | |||||||||||
Repayment of Senior Subordinated Notes | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||||
Issuance of Preferred Shares | 150,000 | — | — | — | 150,000 | ||||||||||||||
Principal payments on long term debt | — | (89 | ) | — | — | (89 | ) | ||||||||||||
Proceeds from exercise of stock options | 32 | — | — | — | 32 | ||||||||||||||
Purchase of treasury shares | (63 | ) | — | — | — | (63 | ) | ||||||||||||
Revolver facility refinancing | — | (5,037 | ) | (31 | ) | — | (5,068 | ) | |||||||||||
Other | (3,499 | ) | — | — | — | (3,499 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (32,187 | ) | 11,672 | (1,232 | ) | 42,571 | 20,824 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (3,023 | ) | 12,252 | — | 9,229 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1,746 | ) | — | (1,746 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 5,503 | 12,047 | — | 17,550 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 2,480 | $ | 22,553 | $ | — | $ | 25,033 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (15,930 | ) | $ | 18,471 | $ | 20,574 | $ | — | $ | 23,115 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | — | (17,315 | ) | — | 17,315 | — | |||||||||||||
Capital expenditures | — | (8,438 | ) | (10,004 | ) | — | (18,442 | ) | |||||||||||
Payments for derivative instruments | — | — | 326 | — | 326 | ||||||||||||||
Proceeds from sale of assets | — | 492 | 140 | — | 632 | ||||||||||||||
Net cash provided by (used in) investing activities | — | (25,261 | ) | (9,538 | ) | 17,315 | (17,484 | ) | |||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans from (repayments to) affiliates | 17,315 | — | — | (17,315 | ) | — | |||||||||||||
Dividends to affiliates | — | — | — | — | |||||||||||||||
Short-term debt, net | — | (10,998 | ) | (4,506 | ) | — | (15,504 | ) | |||||||||||
Revolving Facility borrowings | — | 52,000 | 10,000 | — | 62,000 | ||||||||||||||
Revolving Facility reductions | — | (36,000 | ) | (32,000 | ) | — | (68,000 | ) | |||||||||||
Issuance of Preferred Shares | (1,385 | ) | — | — | — | (1,385 | ) | ||||||||||||
Principal payments on long term debt | — | (46 | ) | (137 | ) | — | (183 | ) | |||||||||||
Net cash (used in) provided by financing activities | 15,930 | 4,956 | (26,643 | ) | (17,315 | ) | (23,072 | ) | |||||||||||
Decrease in cash and cash equivalents | — | (1,834 | ) | (15,607 | ) | — | (17,441 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (665 | ) | — | (665 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | — | 2,480 | 22,553 | — | 25,033 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 646 | $ | 6,281 | $ | — | $ | 6,927 |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2013 (Predecessor) | ||||||||||||||||||||
(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 (loss) | — | 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 losses of subsidiary | (7,857 | ) | (46,050 | ) | — | 53,907 | — | |||||||||||||
Net income (loss) | $ | (27,259 | ) | $ | (7,857 | ) | $ | (46,050 | ) | $ | 53,907 | $ | (27,259 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net income (loss) | $ | (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 (Predecessor) | ||||||||||||||||||||
(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 (loss) | — | (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 losses of subsidiary | (251,495 | ) | (40,699 | ) | — | 292,194 | — | |||||||||||||
Net income (losses) | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (286,126 | ) | $ | (250,745 | ) | $ | (40,699 | ) | $ | 292,194 | $ | (285,376 | ) | ||||||
Other comprehensive (loss) income | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive income (loss) | $ | (330,026 | ) | $ | (294,645 | ) | $ | (69,349 | ) | $ | 364,744 | $ | (329,276 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period January 1 through August 14, 2015 (Predecessor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 124,489 | $ | 52,794 | $ | (177,283 | ) | $ | — | |||||||||
Sales - third party | — | 160,761 | 277,170 | — | 437,931 | |||||||||||||||
Net sales | — | 285,250 | 329,964 | (177,283 | ) | 437,931 | ||||||||||||||
Cost of sales | — | 266,369 | 310,731 | (177,283 | ) | 399,817 | ||||||||||||||
Gross profit | — | 18,881 | 19,233 | — | 38,114 | |||||||||||||||
Research and development | — | 5,556 | — | — | 5,556 | |||||||||||||||
Selling and administrative expenses | 6,750 | 44,507 | 29,890 | — | 81,147 | |||||||||||||||
Impairments | — | 35,381 | — | — | 35,381 | |||||||||||||||
Rationalizations | — | (374 | ) | 4,881 | — | 4,507 | ||||||||||||||
Operating loss | (6,750 | ) | (66,189 | ) | (15,538 | ) | — | (88,477 | ) | |||||||||||
Other expense (income), net | — | 804 | 531 | — | 1,335 | |||||||||||||||
Interest expense - affiliate | 3 | 372 | — | (375 | ) | — | ||||||||||||||
Interest expense - third party | 24,366 | 2,481 | 271 | — | 27,118 | |||||||||||||||
Interest income - affiliate | (372 | ) | (3 | ) | — | 375 | — | |||||||||||||
Interest income - third party | — | (5 | ) | (362 | ) | — | (367 | ) | ||||||||||||
Loss before income taxes | (30,747 | ) | (69,838 | ) | (15,978 | ) | — | ` | (116,563 | ) | ||||||||||
(Benefit from) provision for income taxes | — | 385 | 3,701 | — | 4,086 | |||||||||||||||
Equity in losses of subsidiary | (89,902 | ) | (19,679 | ) | — | 109,581 | — | |||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (120,649 | ) | $ | (89,902 | ) | $ | (19,679 | ) | $ | 109,581 | $ | (120,649 | ) | ||||||
Other comprehensive (loss) income | (26,674 | ) | (26,674 | ) | (28,041 | ) | 54,715 | (26,674 | ) | |||||||||||
Comprehensive (loss) income | $ | (147,323 | ) | $ | (116,576 | ) | $ | (47,720 | ) | $ | 164,296 | $ | (147,323 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 51,262 | $ | 32,611 | $ | (83,873 | ) | $ | — | |||||||||
Sales - third party | — | 86,053 | 162,688 | — | 248,741 | |||||||||||||||
Net sales | — | 137,315 | 195,299 | (83,873 | ) | 248,741 | ||||||||||||||
Cost of sales | — | 132,610 | 181,175 | (83,873 | ) | 229,912 | ||||||||||||||
Gross profit | — | 4,705 | 14,124 | — | 18,829 | |||||||||||||||
Research and development | — | 2,348 | — | — | 2,348 | |||||||||||||||
Selling and administrative expenses | — | 10,775 | 21,340 | — | 32,115 | |||||||||||||||
Rationalizations | — | 71 | 1,004 | — | 1,075 | |||||||||||||||
Operating loss | — | (8,489 | ) | (8,220 | ) | — | (16,709 | ) | ||||||||||||
Other expense (income), net | — | 1,166 | (2,109 | ) | — | (943 | ) | |||||||||||||
Interest expense - affiliate | 226 | — | — | (226 | ) | — | ||||||||||||||
Interest expense - third party | 9,552 | 1,079 | 285 | — | 10,916 | |||||||||||||||
Interest income - affiliate | — | (226 | ) | — | 226 | — | ||||||||||||||
Interest income - third party | — | (5 | ) | (6 | ) | — | (11 | ) | ||||||||||||
Loss before income taxes | (9,778 | ) | (10,503 | ) | (6,390 | ) | — | ` | (26,671 | ) | ||||||||||
(Benefit) provision for income taxes | — | 634 | 6,246 | — | 6,880 | |||||||||||||||
Equity in losses of subsidiary | (23,773 | ) | (12,636 | ) | — | 36,409 | — | |||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,773 | ) | $ | (12,636 | ) | $ | 36,409 | $ | (33,551 | ) | ||||||
Other comprehensive income (loss): | (10,257 | ) | (10,257 | ) | (10,257 | ) | 20,514 | (10,257 | ) | |||||||||||
Comprehensive (loss) income | $ | (43,808 | ) | $ | (34,030 | ) | $ | (22,893 | ) | $ | 56,923 | $ | (43,808 | ) | ||||||
As of December 31, 2014 | As of December 31, 2015 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 40,000 | $ | 98,000 | |||
Senior Subordinated Notes | 187,973 | — | |||||
Senior Notes | 300,000 | 267,827 | |||||
Other Debt | 1,746 | 1,400 | |||||
Total Debt | 529,719 | 367,227 | |||||
Less: Short-term Debt | (188,104 | ) | (4,772 | ) | |||
Long-term Debt | $ | 341,615 | $ | 362,455 |
As of December 31, | |||||||
2014 Predecessor | 2015 Successor | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Postretirement and other employee benefits | $ | 43,204 | $ | 34,713 | |||
Foreign tax credit and other carryforwards | 64,214 | 115,163 | |||||
Capitalized research and experimental costs | 23,446 | 21,592 | |||||
Environmental reserves | 3,366 | 4,273 | |||||
Inventory adjustments | 19,568 | 12,719 | |||||
Capital loss | 272 | 276 | |||||
Long-term contract option amortization | 2,214 | 2,138 | |||||
Provision for rationalization charges | 17,255 | 5,967 | |||||
Other | 6,288 | 729 | |||||
Total gross deferred tax assets | 179,827 | 197,570 | |||||
Less: valuation allowance | (95,721 | ) | (165,539 | ) | |||
Total deferred tax assets | 84,106 | 32,031 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 59,292 | $ | 54,150 | |||
Debt discount amortization / Deferred financing fees | 3,301 | 7,666 | |||||
Inventory | 6,865 | 4,985 | |||||
Goodwill and acquired intangibles | 1,046 | 2,686 | |||||
Other | 3,761 | 4,647 | |||||
Total deferred tax liabilities | 74,265 | 74,134 | |||||
Net deferred tax (liability) asset | $ | 9,841 | $ | (42,103 | ) |
Predecessor | ||||||||||||||||||||||||
For the Year Ended December 31, | For the Period January 1 through August 14, 2015 | |||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Amortization of prior service cost | $ | — | $ | 193 | $ | — | $ | 180 | $ | — | $ | (95 | ) | |||||||||||
Effect of exchange rates | — | 133 | — | 148 | — | — | ||||||||||||||||||
Total recognized in other comprehensive income | $ | — | $ | 326 | $ | — | $ | 328 | $ | — | $ | (95 | ) | |||||||||||
Total recognized in net post retirement cost (benefit) and other comprehensive income | $ | (913 | ) | $ | 22 | $ | 1,547 | $ | 2,357 | $ | — | $ | (95 | ) |
Amount of (Gain)/Loss Recognized (Effective Portion) | ||||||||||||||
Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion) | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in Thousands) | ||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||
Foreign currency derivatives, excluding tax of $85 and $106 $17, respectively | Cost of goods sold Other expense / (income) / Revenue | $ | (849 | ) | $ | (1,062 | ) | $ | (172 | ) | ||||
Commodity forward derivatives, excluding tax of $(120), $(424) and $0 respectively | Cost of goods sold / Revenue | $ | 328 | $ | 1,161 | $ | — |
Amount of (Gain)/Loss Recognized | ||||||||||||||
Location of (Gain)/Loss Recognized in the Consolidated Statement of Income | 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Derivatives not designated as hedges: | ||||||||||||||
Foreign currency derivatives | Cost of goods sold/Other expense (income) | $ | 1,020 | $ | 1,060 | $ | (560 | ) |
As of December 31, | For the Period July 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||
2013 | 2014 | |||||||||
(Dollars in thousands) | ||||||||||
Weighted average common shares outstanding for basic calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A | ||||||
Add: Effect of stock options and restricted stock | — | — | — | N/A | ||||||
Weighted average common shares outstanding for diluted calculation | 135,067,278 | 136,155,295 | 137,152,430 | N/A |
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 | $ | 27 | $ | (3 | ) | $ | (33 | ) | |||||
Effect on benefit obligations | $ | 121 | $ | 797 | $ | (115 | ) | $ | (687 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Tax at statutory U.S. federal rate | $ | (14,036 | ) | $ | (103,177 | ) | $ | (40,797 | ) | $ | (9,335 | ) | |||
U.S. valuation allowance, net | (700 | ) | 73,350 | 27,443 | 8,876 | ||||||||||
State taxes, net of federal tax benefit | (371 | ) | (4,387 | ) | (3,215 | ) | (697 | ) | |||||||
U.S. tax return adjustments to estimated taxes | (1,032 | ) | (368 | ) | — | — | |||||||||
Resolution of uncertain tax positions | (752 | ) | (513 | ) | 71 | 64 | |||||||||
Adjustment for foreign income taxed at different rates | 6,832 | 7,376 | 11,435 | 7,324 | |||||||||||
U.S. tax credits | (2,577 | ) | (1,000 | ) | — | — | |||||||||
Non-U.S. tax exemptions, holidays and credits | — | — | (691 | ) | 228 | ||||||||||
Goodwill impairment | — | 17,161 | 8,026 | — | |||||||||||
Capital loss expiration | — | 2,422 | — | — | |||||||||||
Other | (207 | ) | (280 | ) | 1,814 | 420 | |||||||||
Total income tax (benefit) expense | $ | (12,843 | ) | $ | (9,416 | ) | $ | 4,086 | $ | 6,880 |
At December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 431,601 | $ | 291,493 | |||
Mexico | 89,731 | 158,950 | |||||
Brazil | 9,492 | 8,787 | |||||
France | 49,602 | 77,412 | |||||
Spain | 70,648 | 93,049 | |||||
South Africa | 2,064 | 4,167 | |||||
Italy | 508 | 3,249 | |||||
Switzerland | 287 | 266 | |||||
Other countries | 107 | 160 | |||||
Total | $ | 654,040 | $ | 637,533 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
Asset Derivatives | Liability Derivatives | ||||||||||
Location | Fair Value | Location | Fair Value | ||||||||
As of December 31, 2014 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 80 | Other current liabilities | $ | 428 | |||||
Total fair value | $ | 80 | $ | 428 | |||||||
As of December 31, 2015 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 76 | Other current liabilities | $ | 11 | |||||
Total fair value | $ | 76 | $ | 11 |
Predecessor | |||||||||||||||||||||||
As of December 31, 2014 | As of August 14, 2015 | ||||||||||||||||||||||
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 | (4,817 | ) | 3,083 | 7,900 | (5,173 | ) | 2,727 | |||||||||||||||
Technology and know-how | 43,349 | (24,940 | ) | 18,409 | 43,349 | (28,649 | ) | 14,700 | |||||||||||||||
Customer related intangible | 110,798 | (57,192 | ) | 53,606 | 110,798 | (63,866 | ) | 46,932 | |||||||||||||||
Total finite-lived intangible assets | $ | 162,047 | $ | (86,949 | ) | $ | 75,098 | $ | 162,047 | $ | (97,688 | ) | $ | 64,359 |
Successor | ||||||||||||
As of December 31, 2015 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization / Impairment | Net Carrying Amount | ||||||||||
(Dollars in Thousands) | ||||||||||||
Trade name | 26,800 | (1,048 | ) | 25,752 | ||||||||
Technology and know-how | 63,200 | (3,327 | ) | 59,873 | ||||||||
Customer related intangible | 65,700 | (1,813 | ) | 63,887 | ||||||||
Total finite-lived intangible assets | $ | 155,700 | $ | (6,188 | ) | $ | 149,512 |
Total | |||
Predecessor | (Dollars in Thousands) | ||
Balance as of December 31, 2013 | $ | 496,810 | |
Impairment | (76,063 | ) | |
Currency translation effect | (618 | ) | |
Balance as of December 31, 2014 | 420,129 | ||
Impairment | (35,381 | ) | |
Currency translation effect | (616 | ) | |
Balance as of August 14, 2015 | $ | 384,132 | |
Successor | |||
Balance as of August 15, 2015 | $ | 170,418 | |
Adjustments | 1,641 | ||
Balance as of December 31, 2015 | 172,059 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. | $ | 8,495 | $ | (255,043 | ) | $ | (96,258 | ) | $ | (22,755 | ) | ||||
Non-U.S. | (48,597 | ) | (39,749 | ) | (20,305 | ) | (3,916 | ) | |||||||
$ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
Predecessor | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2013 | 2014 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 870 | $ | 1,177 | $ | 750 | $ | 1,107 | |||||||
Interest cost | 5,438 | 2,542 | 5,983 | 2,669 | |||||||||||
Expected return on assets | (4,505 | ) | (2,339 | ) | (5,215 | ) | (2,516 | ) | |||||||
Amortization of prior service cost | — | 25 | — | 2 | |||||||||||
Curtailment gain | — | — | — | (28 | ) | ||||||||||
Mark-to-market loss (gain) | (11,907 | ) | (393 | ) | 18,431 | (534 | ) | ||||||||
$ | (10,104 | ) | $ | 1,012 | $ | 19,949 | $ | 700 |
Predecessor | Successor | ||||||||||||||
For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Service cost | $ | 151 | $ | 98 | $ | 386 | $ | 281 | |||||||
Interest cost | 854 | 554 | 2,200 | 94 | |||||||||||
Expected return on assets | — | — | (1,885 | ) | (59 | ) | |||||||||
Amortization of prior service cost | — | (12 | ) | — | — | ||||||||||
Curtailment gain | — | — | — | (675 | ) | ||||||||||
Mark-to-market loss (gain) | — | — | 716 | 1,843 | |||||||||||
$ | 1,005 | $ | 640 | $ | 1,417 | $ | 1,484 |
(Dollars in Thousands) | |||
Balance as of December 31, 2014 | $ | 923 | |
Product warranty charges/adjustments | 576 | ||
Payments and settlements | (557 | ) | |
Balance as of December 31, 2015 | $ | 942 |
Predecessor | Successor | |||||||||||
2014 Engineered Solutions Rationalization | For the Year Ended December 31, 2014 | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||
Engineered Solutions Segment | ||||||||||||
(Dollars in thousands) | ||||||||||||
Recorded in Cost of Sales | ||||||||||||
Accelerated depreciation | $ | 2,802 | $ | — | $ | — | ||||||
Inventory loss | 13,225 | 571 | (80 | ) | ||||||||
Fixed asset write-offs and other | 1,046 | 372 | (229 | ) | ||||||||
Recorded in Rationalizations | ||||||||||||
Severance and related costs | 2,498 | (713 | ) | — | ||||||||
Contract terminations | 195 | 50 | — | |||||||||
Total | $ | 19,766 | $ | 280 | $ | (309 | ) |
Predecessor | Successor | |||||||
2015 Advanced Graphite Materials Rationalization | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||
Engineered Solutions Segment | ||||||||
(Dollars in thousands) | ||||||||
Recorded in Cost of Sales | ||||||||
Inventory loss | $ | 404 | $ | (47 | ) | |||
Fixed asset write-offs and other | 434 | 855 | ||||||
Recorded in Selling and General Administrative | ||||||||
Other | 755 | 1,213 | ||||||
Recorded in Rationalizations | ||||||||
Severance and related costs | 4,838 | 769 | ||||||
Contract terminations | 154 | 22 | ||||||
Total | $ | 6,585 | $ | 2,812 |
2014 Corporate, Research and Development Plan | For the Year Ended December 31, 2014 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Accelerated depreciation | $ | — | $ | 20 | $ | — | $ | 20 | |||||||||
Fixed asset write-offs and other | 178 | — | — | 178 | |||||||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||||
Other | — | — | 515 | 515 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 4,608 | 644 | 2,844 | 8,096 | |||||||||||||
Contract terminations | — | 73 | 11 | 84 | |||||||||||||
Total | $ | 4,786 | $ | 737 | $ | 6,290 | $ | 11,813 |
2014 Corporate, Research and Development Plan | For the Period January 1 Through August 14, 2015 (Predecessor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Cost of Sales | |||||||||||||||||
Fixed asset write-offs and other | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Recorded in Research and Development | |||||||||||||||||
Accelerated depreciation | — | — | 940 | 940 | |||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | 400 | — | 954 | 1,354 | |||||||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | 60 | 8 | (168 | ) | (100 | ) | |||||||||||
Total | $ | 460 | $ | 9 | $ | 1,726 | $ | 2,195 |
2014 Corporate, Research and Development Plan | For the Period August 15 Through December 31, 2015 (Successor) | ||||||||||||||||
Industrial Materials Segment | Engineered Solutions Segment | Corp, R&D and Other | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||||
Other | $ | — | $ | — | $ | 290 | $ | 290 | |||||||||
Recorded in Rationalizations | |||||||||||||||||
Severance and related costs | (23 | ) | — | 71 | 48 | ||||||||||||
Total | $ | (23 | ) | $ | — | $ | 361 | $ | 338 |
For the Year Ended December 31, 2013 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | 827 | — | 23,215 | ||||||||||
Inventory loss | 961 | 485 | — | 1,446 | |||||||||||
Fixed asset write-offs and other | 5,374 | 233 | 5,607 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 89 | — | 89 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 433 | (28 | ) | — | 405 | ||||||||||
Contract terminations | 469 | — | — | 469 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 29,714 | $ | 1,517 | $ | — | $ | 31,231 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | — | — | 432 | ||||||||||
Inventory loss | (33 | ) | — | — | (33 | ) | |||||||||
Fixed asset write-offs and other | 1,715 | 270 | 1,985 | ||||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 97 | 156 | — | 253 | |||||||||||
Contract terminations | 25 | — | — | 25 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 2,236 | $ | 426 | $ | — | $ | 2,662 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
2013 Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (278 | ) | $ | (29 | ) | $ | (307 | ) | ||||||
Fixed asset write-offs and other | 329 | 71 | 400 | ||||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 245 | — | — | 245 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 177 | — | — | 177 | |||||||||||
Contract terminations | 59 | — | — | 59 | |||||||||||
Total 2013 rationalization plan and related charges | $ | 532 | $ | 42 | $ | — | $ | 574 |
For the Year Ended December 31, 2013 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 28,326 | $ | — | $ | — | $ | 28,326 | |||||||
Inventory loss | 7,886 | 896 | — | 8,782 | |||||||||||
Fixed asset write-offs and other | 6,104 | 2,274 | — | 8,378 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 59 | — | — | 59 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 17,072 | 458 | 1,816 | 19,346 | |||||||||||
Contract terminations | 810 | — | — | 810 | |||||||||||
Total 2013 rationalization and related charges | $ | 60,257 | $ | 3,628 | $ | 1,816 | $ | 65,701 |
For the Year Ended December 31, 2014 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 22,388 | $ | 3,649 | $ | — | $ | 26,037 | |||||||
Inventory loss | 961 | 13,711 | — | 14,672 | |||||||||||
Fixed asset write-offs and other | 5,552 | 1,278 | — | 6,830 | |||||||||||
Recorded in Research and Development | |||||||||||||||
Accelerated depreciation | — | — | 2,312 | 2,312 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Accelerated depreciation | — | — | 608 | 608 | |||||||||||
Other | 89 | 121 | 515 | 725 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 5,040 | 3,113 | 2,845 | 10,998 | |||||||||||
Contract terminations | 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 Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Accelerated depreciation | $ | 432 | $ | — | $ | 940 | 1,372 | ||||||||
Inventory loss | (33 | ) | 975 | — | 942 | ||||||||||
Fixed asset write-offs and other | 1,715 | 1,078 | — | 2,793 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 400 | 755 | 954 | 2,109 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 157 | 4,288 | (168 | ) | 4,277 | ||||||||||
Contract terminations | 25 | 204 | — | 229 | |||||||||||
Total | $ | 2,696 | $ | 7,300 | $ | 1,726 | $ | 11,722 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||||||
All Plans | Industrial Materials Segment | Engineered Solutions Segment | Corporate, R&D and Other | Total | |||||||||||
(Dollars in thousands) | |||||||||||||||
Recorded in Cost of Sales | |||||||||||||||
Inventory loss | $ | (639 | ) | $ | 206 | $ | — | $ | (433 | ) | |||||
Fixed asset write-offs and other | 329 | 697 | — | 1,026 | |||||||||||
Recorded in Selling and General Administrative | |||||||||||||||
Other | 135 | 1,323 | 290 | 1,748 | |||||||||||
Recorded in Rationalizations | |||||||||||||||
Severance and related costs | 154 | 769 | 71 | 994 | |||||||||||
Contract terminations | 59 | 22 | — | 81 | |||||||||||
Total | $ | 38 | $ | 3,017 | $ | 361 | $ | 3,416 |
(Dollars in thousands) | |||
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 | ||
Charges incurred | 40 | ||
Change in estimates | 227 | ||
Payments and settlements | (1,102 | ) | |
Effect of change in currency exchange rates | (155 | ) | |
Balance as of August 14, 2015 | $ | 45 | |
Charges incurred | 154 | ||
Change in estimates | 67 | ||
Payments and settlements | (17 | ) | |
Effect of change in currency exchange rates | (59 | ) | |
Balance as of December 31, 2015 | $ | 190 |
(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 | |
Charges incurred | 50 | ||
Change in estimates | (713 | ) | |
Payments and settlements | (916 | ) | |
Effect of change in currency exchange rates | 1 | ||
Balance as of August 14, 2015 | $ | 77 | |
Change in estimates | (5 | ) | |
Payments and settlements | (72 | ) | |
Balance as of December 31, 2015 | $ | — |
(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 | |
Charges incurred | (33 | ) | |
Change in estimates | (67 | ) | |
Payments and settlements | (4,611 | ) | |
Effect of change in currency exchange rates | (81 | ) | |
Balance as of August 14, 2015 | $ | 2,081 | |
Change in estimates | 47 | ||
Payments and settlements | (1,127 | ) | |
Effect of change in currency exchange rates | (57 | ) | |
Balance as of December 31, 2015 | $ | 944 |
2015 Advanced Graphite Materials Rationalization | |||
(Dollars in thousands) | |||
Balance as of December 31, 2014 | $ | — | |
Charges incurred | 5,053 | ||
Change in estimates | (38 | ) | |
Payments and settlements | (329 | ) | |
Effect of change in currency exchange rates | — | ||
Balance as of August 14, 2015 | $ | 4,686 | |
Charges incurred | 647 | ||
Payments and settlements | (3,418 | ) | |
Balance as of December 31, 2015 | $ | 1,915 |
For the Twelve Months Ended December 31, | |||||||||||
2013 | 2014 | 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales:* | |||||||||||
U.S. | $ | 289,866 | $ | 284,209 | $ | 176,402 | |||||
Americas | 177,602 | 180,070 | 140,629 | ||||||||
Asia Pacific | 220,945 | 192,230 | 84,287 | ||||||||
Europe, Middle East, Africa | 478,261 | 428,795 | 285,354 | ||||||||
Total | $ | 1,166,674 | $ | 1,085,304 | $ | 686,672 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Net sales to external customers: | |||||||||||||||
Industrial Materials | $ | 909,448 | $ | 840,103 | $ | 341,974 | $ | 193,223 | |||||||
Engineered Solutions | 257,226 | 245,201 | 95,957 | 55,518 | |||||||||||
Total net sales | $ | 1,166,674 | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | |||||||
Segment operating income (loss): | |||||||||||||||
Industrial Materials | $ | 20,007 | $ | (50,260 | ) | $ | (25,678 | ) | $ | (4,017 | ) | ||||
Engineered Solutions | 28,392 | (138,271 | ) | (15,368 | ) | (457 | ) | ||||||||
Corporate, R&D and Other expenses | (50,969 | ) | (67,089 | ) | (47,431 | ) | (12,235 | ) | |||||||
Total segment operating income (loss) | $ | (2,570 | ) | $ | (255,620 | ) | $ | (88,477 | ) | $ | (16,709 | ) | |||
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: | |||||||||||||||
Other expense (income), net | $ | 1,698 | $ | 2,445 | $ | 1,335 | $ | (943 | ) | ||||||
Interest expense | 36,037 | 37,057 | 27,118 | 10,916 | |||||||||||
Interest income | (203 | ) | (330 | ) | (367 | ) | (11 | ) | |||||||
Loss before provision for income taxes | $ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
Number of Shares | Weighted- Average Exercise Price | |||||
Outstanding at December 31, 2014 | 2,042,074 | $ | 10.93 | |||
Granted | — | — | ||||
Forfeited/canceled/expired | (1,562,791 | ) | 12.98 | |||
Exercised | (479,283 | ) | 4.24 | |||
Outstanding at December 31, 2015 | — | $ | — |
Number of Shares | Weighted- Average Grant Date Fair Value | |||||
Outstanding unvested at December 31, 2014 | 1,814,130 | $ | 6.31 | |||
Granted | 412,191 | 9.67 | ||||
Vested | (2,037,914 | ) | 6.98 | |||
Forfeited/canceled/expired | (188,407 | ) | 6.42 | |||
Outstanding at December 31, 2015 | — | $ | — |
As of December 31, 2014 | As of December 31, 2015 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 40,000 | $ | 98,000 | |||
Senior Subordinated Notes | 187,973 | — | |||||
Senior Notes | 300,000 | 267,827 | |||||
Other Debt | 1,746 | 1,400 | |||||
Total Debt | 529,719 | 367,227 | |||||
Less: Short-term Debt | (188,104 | ) | (4,772 | ) | |||
Long-term Debt | $ | 341,615 | $ | 362,455 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31, | For the Period January 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Net sales to external customers: | |||||||||||||||
Industrial Materials | $ | 909,448 | $ | 840,103 | $ | 341,974 | $ | 193,223 | |||||||
Engineered Solutions | 257,226 | 245,201 | 95,957 | 55,518 | |||||||||||
Total net sales | $ | 1,166,674 | $ | 1,085,304 | $ | 437,931 | $ | 248,741 | |||||||
Segment operating income (loss): | |||||||||||||||
Industrial Materials | $ | 20,007 | $ | (50,260 | ) | $ | (25,678 | ) | $ | (4,017 | ) | ||||
Engineered Solutions | 28,392 | (138,271 | ) | (15,368 | ) | (457 | ) | ||||||||
Corporate, R&D and Other expenses | (50,969 | ) | (67,089 | ) | (47,431 | ) | (12,235 | ) | |||||||
Total segment operating income (loss) | $ | (2,570 | ) | $ | (255,620 | ) | $ | (88,477 | ) | $ | (16,709 | ) | |||
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: | |||||||||||||||
Other expense (income), net | $ | 1,698 | $ | 2,445 | $ | 1,335 | $ | (943 | ) | ||||||
Interest expense | 36,037 | 37,057 | 27,118 | 10,916 | |||||||||||
Interest income | (203 | ) | (330 | ) | (367 | ) | (11 | ) | |||||||
Loss before provision for income taxes | $ | (40,102 | ) | $ | (294,792 | ) | $ | (116,563 | ) | $ | (26,671 | ) |
As of December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
Industrial Materials. | $ | 552,155 | $ | 571,424 | |||
Engineered Solutions | 101,885 | 66,109 | |||||
Total long-lived assets | $ | 654,040 | $ | 637,533 |
For the Twelve Months Ended December 31, | |||||||||||
2013 | 2014 | 2015 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales:* | |||||||||||
U.S. | $ | 289,866 | $ | 284,209 | $ | 176,402 | |||||
Americas | 177,602 | 180,070 | 140,629 | ||||||||
Asia Pacific | 220,945 | 192,230 | 84,287 | ||||||||
Europe, Middle East, Africa | 478,261 | 428,795 | 285,354 | ||||||||
Total | $ | 1,166,674 | $ | 1,085,304 | $ | 686,672 |
At December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 431,601 | $ | 291,493 | |||
Mexico | 89,731 | 158,950 | |||||
Brazil | 9,492 | 8,787 | |||||
France | 49,602 | 77,412 | |||||
Spain | 70,648 | 93,049 | |||||
South Africa | 2,064 | 4,167 | |||||
Italy | 508 | 3,249 | |||||
Switzerland | 287 | 266 | |||||
Other countries | 107 | 160 | |||||
Total | $ | 654,040 | $ | 637,533 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
For the year ended December 31, | |||||||
2013 | 2014 | ||||||
(Dollars in thousands) | |||||||
Balance as of January 1 | $ | 26,312 | $ | 20,411 | |||
(Credited) / charged to income | (614 | ) | 74,157 | ||||
Translation adjustment | (746 | ) | (800 | ) | |||
Changes attributable to movement in underlying assets | (4,541 | ) | 1,953 | ||||
Balance as of December 31 | $ | 20,411 | $ | 95,721 |
At December 31, | |||||||
2014 | 2015 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 122,218 | $ | 80,408 | |||
Work in process | 176,141 | 136,858 | |||||
Finished goods | 84,544 | 78,196 | |||||
382,903 | 295,462 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,923 | $ | 9,297 | |||
Current portion of deferred taxes | 28,426 | — | |||||
Value added tax and other indirect taxes receivable | 39,837 | 10,087 | |||||
Other current assets | 3,437 | 2,290 | |||||
$ | 81,623 | $ | 21,674 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 36,375 | $ | 54,064 | |||
Buildings | 193,427 | 76,331 | |||||
Machinery and equipment and other | 1,212,120 | 486,194 | |||||
Construction in progress | 58,899 | 44,291 | |||||
$ | 1,500,821 | $ | 660,880 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 6,151 | $ | 4,588 | |||
Customer prepayments | 5,534 | 559 | |||||
Employee compensation and benefits | 8,932 | 7,842 | |||||
Other | 22,702 | 16,790 | |||||
$ | 43,319 | $ | 29,779 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 24,833 | $ | 20,019 | |||
Pension and related benefits | 65,882 | 55,364 | |||||
Other | 16,851 | 20,102 | |||||
$ | 107,566 | $ | 95,485 |
As of December 31, | For the Period January 1 through August 14, 2015 | For the Period August 15 through December 31, 2015 | |||||||||||||
2013 | 2014 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at beginning of year | $ | 7,573 | $ | 6,718 | $ | 7,471 | $ | — | |||||||
Additions | 2,914 | 8,675 | 1,156 | 304 | |||||||||||
Deductions | (3,769 | ) | (7,922 | ) | (2,313 | ) | — | ||||||||
Balance at end of year | $ | 6,718 | $ | 7,471 | $ | 6,314 | $ | 304 |