2014 | For the Period January 1 through August 14, 2015 | For the Period August 15 through December 31, 2015 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at beginning of year | $ | 6,262 | $ | 6,969 | $ | — | $ | 244 | |||||||
Additions | 3,520 | 85 | 244 | 129 | |||||||||||
Deductions | (2,813 | ) | (1,177 | ) | — | (47 | ) | ||||||||
Balance at end of year | $ | 6,969 | $ | 5,877 | $ | 244 | $ | 326 |
Postretirement Benefits | As of December 31, 2015 | As of December 31, 2016 | |||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 11,395 | $ | 13,457 | $ | 10,859 | $ | 11,296 | |||||||
Service cost | — | 5 | — | 4 | |||||||||||
Interest cost | 142 | 289 | 360 | 764 | |||||||||||
Foreign currency exchange rates | — | (1,489 | ) | — | 709 | ||||||||||
Actuarial loss (gain) | (100 | ) | (621 | ) | (191 | ) | (225 | ) | |||||||
Gross benefits paid | (578 | ) | (345 | ) | (853 | ) | (855 | ) | |||||||
Plan amendment | — | — | — | (993 | ) | ||||||||||
Net benefit obligation at end of period | $ | 10,859 | $ | 11,296 | $ | 10,175 | $ | 10,700 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 578 | 345 | 853 | 855 | |||||||||||
Gross benefits paid | (578 | ) | (345 | ) | (853 | ) | (855 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (10,859 | ) | $ | (11,296 | ) | $ | (10,175 | ) | $ | (10,700 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,298 | ) | $ | (755 | ) | $ | (1,134 | ) | $ | (738 | ) | |||
Non-current liabilities | (9,561 | ) | (10,541 | ) | (9,041 | ) | (9,962 | ) | |||||||
Net amount recognized | $ | (10,859 | ) | $ | (11,296 | ) | $ | (10,175 | ) | $ | (10,700 | ) |
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 | Successor | ||||||||||||||||||||||
For the Period January 1 through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||||||||||||||||||
2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 71 | $ | — | $ | 9 | — | $ | 5 | ||||||||||||||
Interest cost | 396 | 976 | 223 | 433 | 142 | 289 | |||||||||||||||||
Amortization of prior service credit | — | (180 | ) | — | — | — | — | ||||||||||||||||
Plan amendment / curtailment | — | (294 | ) | — | — | — | — | ||||||||||||||||
Mark-to-market (gain) loss | 1,151 | 1,456 | — | — | (100 | ) | (621 | ) | |||||||||||||||
Post-employment benefits cost (benefit) | $ | 1,547 | $ | 2,029 | $ | 223 | $ | 442 | $ | 42 | $ | (327 | ) |
As of December 31, 2015 | As of December 31, 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 146,790 | $ | 18,512 | $ | 142,126 | $ | 18,271 | |||||||
Service cost | 386 | 281 | 1,325 | 698 | |||||||||||
Interest cost | 2,200 | 94 | 5,744 | 243 | |||||||||||
Participant contributions | — | 79 | — | 256 | |||||||||||
Plan amendments / curtailments | — | (578 | ) | — | (122 | ) | |||||||||
Foreign currency exchange changes | — | (480 | ) | — | (527 | ) | |||||||||
Actuarial loss (gain) | (3,896 | ) | 377 | 1,293 | (18 | ) | |||||||||
Benefits paid | (3,354 | ) | (14 | ) | (10,258 | ) | (564 | ) | |||||||
Net benefit obligation at end of period | $ | 142,126 | $ | 18,271 | $ | 140,230 | $ | 18,237 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 97,473 | $ | 12,811 | $ | 93,897 | $ | 11,293 | |||||||
Actual return on plan assets | (2,727 | ) | (1,407 | ) | 8,556 | 378 | |||||||||
Foreign currency exchange rate changes | — | (346 | ) | — | (346 | ) | |||||||||
Employer contributions | 2,505 | 170 | 8,710 | 854 | |||||||||||
Participant contributions | — | 79 | — | 256 | |||||||||||
Benefits paid | (3,354 | ) | (14 | ) | (10,258 | ) | (564 | ) | |||||||
Fair value of plan assets at end of period | $ | 93,897 | $ | 11,293 | $ | 100,905 | $ | 11,871 | |||||||
Funded status (underfunded): | $ | (48,229 | ) | $ | (6,978 | ) | $ | (39,325 | ) | $ | (6,366 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (95 | ) | $ | — | $ | — | ||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | — | $ | — | $ | — | |||||||
Current liabilities | (437 | ) | (253 | ) | (435 | ) | (128 | ) | |||||||
Non-current liabilities | (47,792 | ) | (6,725 | ) | (38,890 | ) | (6,238 | ) | |||||||
Net amount recognized | $ | (48,229 | ) | $ | (6,978 | ) | $ | (39,325 | ) | $ | (6,366 | ) |
Predecessor | (Dollars in thousands) | ||
Balance at January 1 | $ | 7,203 | |
Additions based on tax positions related to the current year | 268 | ||
Additions for tax positions of prior years | 232 | ||
Reductions for tax positions of prior years | (1,204 | ) | |
Lapse of statutes of limitations | (1,180 | ) | |
Settlements | (1,503 | ) | |
Foreign currency impact | (106 | ) | |
Balance at December 31, 2014 | $ | 3,710 | |
Foreign currency impact | (21 | ) | |
Balance as of August 14, 2015 | $ | 3,689 | |
Successor | |||
Balance as of August 15, 2015 | $ | 3,689 | |
Additions for tax positions of prior years | 301 | ||
Foreign currency impact | (69 | ) | |
Balance as of December 31, 2015 | $ | 3,921 | |
Lapse of statutes of limitations | (603 | ) | |
Foreign currency impact | 20 | ||
Balance as of December 31, 2016 | $ | 3,338 |
Percentage of Plan Assets as of December 31, 2016 | |||||
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 31,2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the year Ended December 31,2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest incurred on debt | $ | 20,099 | $ | 12,066 | $ | 7,694 | $ | 20,408 | |||||||
Amortization of discount on Senior Subordinated Notes | 12,298 | 12,027 | — | — | |||||||||||
Accretion of fair value adjustment on Senior Notes | — | — | 2,305 | 6,305 | |||||||||||
Amortization of debt issuance costs | 3,339 | 2,118 | — | 201 | |||||||||||
Total interest expense | $ | 35,736 | $ | 26,211 | $ | 9,999 | $ | 26,914 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2017: | |||||||
Expected employer contributions | $ | 1,134 | $ | 738 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2017 | 1,134 | 738 | |||||
2018 | 1,065 | 742 | |||||
2019 | 984 | 747 | |||||
2020 | 898 | 754 | |||||
2021 | 809 | 761 | |||||
2020-2024 | 2,975 | 3,931 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2017: | |||||||
Expected employer contributions | $ | 6,654 | $ | 561 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2017 | 9,259 | 751 | |||||
2018 | 9,247 | 696 | |||||
2019 | 9,218 | 643 | |||||
2020 | 9,256 | 720 | |||||
2021 | 9,278 | 670 | |||||
2022-2026 | 45,917 | 5,705 |
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 | $ | 520 | |
Product warranty charges/adjustments | 346 | ||
Payments and settlements | (69 | ) | |
Balance as of August 14, 2015 | $ | 797 | |
Balance as of August 15, 2015 | $ | 797 | |
Product warranty charges/adjustments | (324 | ) | |
Payments and settlements | (85 | ) | |
Balance as of December 31, 2015 | $ | 388 | |
Product warranty charges/adjustments | 1,285 | ||
Payments and settlements | (704 | ) | |
Balance as of December 31, 2016 | $ | 969 |
(Dollars in thousands) | |||
2017 | $ | 2,637 | |
2018 | 2,158 | ||
2019 | 1,781 | ||
2020 | 1,108 | ||
2021 | 373 | ||
After 2021 | 902 |
As of December 31, 2015 | As of December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Foreign currency translation adjustments | $ | 10,134 | $ | 7,560 | |||
Commodities and foreign currency derivatives | 123 | (2 | ) | ||||
Total accumulated comprehensive loss | $ | 10,257 | $ | 7,558 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||
(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 | 9,803 | 19,505 | (80,900 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 7,599 | 74,791 | — | 82,390 | |||||||||||||||
Inventories | — | 54,613 | 163,517 | — | 218,130 | |||||||||||||||
Prepaid and other current assets | — | 7,907 | 13,243 | — | 21,150 | |||||||||||||||
Current assets of discontinued operations | — | 81,638 | 17,520 | (877 | ) | 98,281 | ||||||||||||||
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 | — | 209,633 | 341,530 | — | 551,163 | |||||||||||||||
Deferred income taxes | — | — | 15,326 | — | 15,326 | |||||||||||||||
Goodwill | — | 72,399 | 99,660 | — | 172,059 | |||||||||||||||
Notes receivable - affiliate | — | 46,074 | — | (46,074 | ) | — | ||||||||||||||
Other assets | — | 79,368 | 73,246 | — | 152,614 | |||||||||||||||
Long-term assets of discontinued operations | — | 99,457 | 4,518 | — | 103,975 | |||||||||||||||
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 | $ | 71,099 | $ | 9,642 | $ | (80,900 | ) | $ | — | |||||||||
Accounts payable - trade | — | 11,191 | 28,956 | — | 40,147 | |||||||||||||||
Short-term debt | — | 4,636 | 136 | — | 4,772 | |||||||||||||||
Accrued income and other taxes | — | 2,824 | 3,109 | — | 5,933 | |||||||||||||||
Rationalizations | — | 995 | 200 | — | 1,195 | |||||||||||||||
Other accrued liabilities | 2,444 | 4,841 | 13,702 | — | 20,987 | |||||||||||||||
Current liabilities of discontinued operations | — | 18,384 | 5,575 | (877 | ) | 23,082 | ||||||||||||||
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 | — | 60,508 | 33,810 | — | 94,318 | |||||||||||||||
Deferred income taxes | — | 248 | 57,182 | — | 57,430 | |||||||||||||||
Long-term liabilities of discontinued operations | — | 738 | 429 | — | 1,167 | |||||||||||||||
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 BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 636 | $ | 10,974 | $ | — | $ | 11,610 | ||||||||||
Accounts receivable - affiliates | 51,592 | 3,624 | 19,643 | (74,859 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 7,518 | 73,050 | — | 80,568 | |||||||||||||||
Inventories | — | 44,563 | 111,548 | — | 156,111 | |||||||||||||||
Prepaid and other current assets | 1,350 | 4,853 | 15,462 | — | 21,665 | |||||||||||||||
Current assets of discontinued operations | — | 51,160 | 14,296 | (4,477 | ) | 60,979 | ||||||||||||||
Total current assets | 52,942 | 112,354 | 244,973 | (79,336 | ) | 330,933 | ||||||||||||||
Investment in affiliates | 844,379 | 601,597 | — | (1,445,976 | ) | — | ||||||||||||||
Property, plant and equipment | — | 191,503 | 317,352 | — | 508,855 | |||||||||||||||
Deferred income taxes | — | — | 19,803 | — | 19,803 | |||||||||||||||
Goodwill | — | 70,399 | 100,718 | — | 171,117 | |||||||||||||||
Notes receivable - affiliate | — | 49,003 | — | (49,003 | ) | — | ||||||||||||||
Other assets | — | 70,767 | 70,801 | — | 141,568 | |||||||||||||||
Total Assets | $ | 897,321 | $ | 1,095,623 | $ | 753,647 | $ | (1,574,315 | ) | $ | 1,172,276 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | 806 | $ | 71,243 | $ | 2,810 | $ | (74,859 | ) | $ | — | |||||||||
Accounts payable - trade | 964 | 8,033 | 38,666 | — | 47,663 | |||||||||||||||
Short-term debt | — | 3,062 | 5,790 | — | 8,852 | |||||||||||||||
Accrued income and other taxes | — | 2,095 | 3,161 | — | 5,256 | |||||||||||||||
Rationalizations | — | 57 | 18 | — | 75 | |||||||||||||||
Other accrued liabilities | 2,444 | 12,148 | 15,927 | — | 30,519 | |||||||||||||||
Current liabilities of discontinued operations | — | 20,381 | 4,138 | (4,477 | ) | 20,042 | ||||||||||||||
Total current liabilities | 4,214 | 117,019 | 70,510 | (79,336 | ) | 112,407 | ||||||||||||||
Long-term debt - affiliate | 41,590 | — | 7,413 | (49,003 | ) | — | ||||||||||||||
Long-term debt - third party | 274,132 | 81,695 | 753 | — | 356,580 | |||||||||||||||
Other long-term obligations | — | 50,943 | 31,205 | — | 82,148 | |||||||||||||||
Deferred income taxes | — | 909 | 41,997 | — | 42,906 | |||||||||||||||
Long-term liabilities of discontinued operations | — | 678 | 172 | — | 850 | |||||||||||||||
Stockholders' equity | 577,385 | 844,379 | 601,597 | (1,445,976 | ) | 577,385 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 897,321 | $ | 1,095,623 | $ | 753,647 | $ | (1,574,315 | ) | $ | 1,172,276 | |||||||||
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 | $ | — | $ | 240,295 | $ | 142,651 | $ | (382,946 | ) | $ | — | |||||||||
Sales - third party | — | 203,609 | 621,536 | — | 825,145 | |||||||||||||||
Net sales | — | 443,904 | 764,187 | (382,946 | ) | 825,145 | ||||||||||||||
Cost of sales | — | 403,058 | 737,044 | (382,946 | ) | 757,156 | ||||||||||||||
Gross profit | — | 40,846 | 27,143 | — | 67,989 | |||||||||||||||
Research and development | — | 9,738 | — | — | 9,738 | |||||||||||||||
Selling and administrative expenses | — | 33,108 | 61,521 | — | 94,629 | |||||||||||||||
Impairments | — | 75,650 | — | — | 75,650 | |||||||||||||||
Rationalizations | — | 5,431 | 2,515 | — | 7,946 | |||||||||||||||
Operating loss | — | (83,081 | ) | (36,893 | ) | — | (119,974 | ) | ||||||||||||
Other expense (income), net | — | 2,049 | 871 | — | 2,920 | |||||||||||||||
Interest expense - affiliate | — | 806 | — | (806 | ) | — | ||||||||||||||
Interest expense - third party | 32,118 | 2,721 | 897 | — | 35,736 | |||||||||||||||
Interest income - affiliate | (806 | ) | — | — | 806 | — | ||||||||||||||
Interest income - third party | — | — | (320 | ) | — | (320 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (31,312 | ) | (88,657 | ) | (38,341 | ) | — | ` | (158,310 | ) | ||||||||||
Provision for income taxes | 15,443 | (17,240 | ) | (3,993 | ) | — | (5,790 | ) | ||||||||||||
Equity in loss from continuing operations of subsidiary | (105,765 | ) | (34,348 | ) | — | 140,113 | — | |||||||||||||
Net loss from continuing operations | (152,520 | ) | (105,765 | ) | (34,348 | ) | 140,113 | (152,520 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (126,217 | ) | (6,639 | ) | — | (132,856 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (132,856 | ) | (6,639 | ) | — | 139,495 | — | |||||||||||||
Loss on discontinued operations | (132,856 | ) | (132,856 | ) | (6,639 | ) | 139,495 | (132,856 | ) | |||||||||||
Net loss | (285,376 | ) | (238,621 | ) | (40,987 | ) | 279,608 | (285,376 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (285,376 | ) | $ | (238,621 | ) | $ | (40,987 | ) | $ | 279,608 | $ | (285,376 | ) | ||||||
Other comprehensive loss | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive loss | $ | (329,276 | ) | $ | (282,521 | ) | $ | (69,637 | ) | $ | 352,158 | $ | (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 | $ | — | $ | 117,366 | $ | 52,683 | $ | (170,049 | ) | $ | — | |||||||||
Sales - third party | — | 80,243 | 259,664 | — | 339,907 | |||||||||||||||
Net sales | — | 197,609 | 312,347 | (170,049 | ) | 339,907 | ||||||||||||||
Cost of sales | — | 180,983 | 294,067 | (170,049 | ) | 305,001 | ||||||||||||||
Gross profit | — | 16,626 | 18,280 | — | 34,906 | |||||||||||||||
Research and development | — | 3,377 | — | — | 3,377 | |||||||||||||||
Selling and administrative expenses | 6,750 | 31,513 | 26,120 | — | 64,383 | |||||||||||||||
Impairments | — | 35,381 | — | — | 35,381 | |||||||||||||||
Rationalizations | — | (68 | ) | 82 | — | 14 | ||||||||||||||
Operating loss | (6,750 | ) | (53,577 | ) | (7,922 | ) | — | (68,249 | ) | |||||||||||
Other expense (income), net | — | 889 | 532 | — | 1,421 | |||||||||||||||
Interest expense - affiliate | 3 | 372 | — | (375 | ) | — | ||||||||||||||
Interest expense - third party | 24,366 | 1,574 | 271 | — | 26,211 | |||||||||||||||
Interest income - affiliate | (372 | ) | (3 | ) | — | 375 | — | |||||||||||||
Interest income - third party | — | — | (363 | ) | — | (363 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (30,747 | ) | (56,409 | ) | (8,362 | ) | — | ` | (95,518 | ) | ||||||||||
Provision for income taxes | — | 384 | 6,068 | — | 6,452 | |||||||||||||||
Equity in loss from continuing operations of subsidiary | (71,223 | ) | (14,430 | ) | — | 85,653 | — | |||||||||||||
Net loss from continuing operations | (101,970 | ) | (71,223 | ) | (14,430 | ) | 85,653 | (101,970 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (13,430 | ) | (5,249 | ) | — | (18,679 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (18,679 | ) | (5,249 | ) | — | 23,928 | — | |||||||||||||
Loss on discontinued operations | (18,679 | ) | (18,679 | ) | (5,249 | ) | 23,928 | (18,679 | ) | |||||||||||
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 | (26,674 | ) | (26,674 | ) | (28,041 | ) | 54,715 | (26,674 | ) | |||||||||||
Comprehensive loss | $ | (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 | $ | — | $ | 48,988 | $ | 31,898 | $ | (80,886 | ) | $ | — | |||||||||
Sales - third party | — | 40,279 | 152,854 | — | 193,133 | |||||||||||||||
Net sales | — | 89,267 | 184,752 | (80,886 | ) | 193,133 | ||||||||||||||
Cost of sales | — | 87,683 | 174,048 | (80,886 | ) | 180,845 | ||||||||||||||
Gross profit | — | 1,584 | 10,704 | — | 12,288 | |||||||||||||||
Research and development | — | 1,083 | — | — | 1,083 | |||||||||||||||
Selling and administrative expenses | — | 5,556 | 17,929 | — | 23,485 | |||||||||||||||
Rationalizations | — | 70 | 213 | — | 283 | |||||||||||||||
Operating loss | — | (5,125 | ) | (7,438 | ) | — | (12,563 | ) | ||||||||||||
Other expense (income), net | — | 1,286 | (2,099 | ) | — | (813 | ) | |||||||||||||
Interest expense - affiliate | 226 | — | — | (226 | ) | — | ||||||||||||||
Interest expense - third party | 9,552 | 161 | 286 | — | 9,999 | |||||||||||||||
Interest income - affiliate | — | (226 | ) | — | 226 | — | ||||||||||||||
Interest income - third party | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (9,778 | ) | (6,346 | ) | (5,619 | ) | — | ` | (21,743 | ) | ||||||||||
Provision for income taxes | — | 634 | 6,248 | — | 6,882 | |||||||||||||||
Equity in loss from continuing operations of subsidiary | (18,847 | ) | (11,868 | ) | — | 30,715 | — | |||||||||||||
Net loss from continuing operations | (28,625 | ) | (18,848 | ) | (11,867 | ) | 30,715 | (28,625 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (4,154 | ) | (772 | ) | — | (4,926 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (4,926 | ) | (772 | ) | — | 5,698 | — | |||||||||||||
Loss on discontinued operations | (4,926 | ) | (4,926 | ) | (772 | ) | 5,698 | (4,926 | ) | |||||||||||
Net loss | (33,551 | ) | (23,774 | ) | (12,639 | ) | 36,413 | (33,551 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,774 | ) | $ | (12,639 | ) | $ | 36,413 | $ | (33,551 | ) | ||||||
Other comprehensive loss | (10,257 | ) | (10,257 | ) | (10,257 | ) | 20,514 | (10,257 | ) | |||||||||||
Comprehensive loss | $ | (43,808 | ) | $ | (34,031 | ) | $ | (22,896 | ) | $ | 56,927 | $ | (43,808 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2016 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 122,164 | $ | 57,099 | $ | (179,263 | ) | $ | — | |||||||||
Sales - third party | — | 87,028 | 350,935 | — | 437,963 | |||||||||||||||
Net sales | — | 209,192 | 408,034 | (179,263 | ) | 437,963 | ||||||||||||||
Cost of sales | — | 190,558 | 436,721 | (179,263 | ) | 448,016 | ||||||||||||||
Additions to lower of cost or market inventory reserve | — | 6,822 | 12,152 | — | 18,974 | |||||||||||||||
Gross profit (loss) | — | 11,812 | (40,839 | ) | — | (29,027 | ) | |||||||||||||
Research and development | — | 2,399 | — | — | 2,399 | |||||||||||||||
Selling and administrative expenses | — | 23,831 | 33,894 | — | 57,725 | |||||||||||||||
Impairments | — | — | 2,843 | — | 2,843 | |||||||||||||||
Rationalizations | — | 110 | (51 | ) | — | 59 | ||||||||||||||
Operating loss | — | (14,528 | ) | (77,525 | ) | — | (92,053 | ) | ||||||||||||
Other expense (income), net | 6 | 1,492 | (3,686 | ) | — | (2,188 | ) | |||||||||||||
Interest expense - affiliate | 984 | — | — | (984 | ) | — | ||||||||||||||
Interest expense - third party | 25,430 | 1,136 | 348 | — | 26,914 | |||||||||||||||
Interest income - affiliate | — | (984 | ) | — | 984 | — | ||||||||||||||
Interest income - third party | — | — | (358 | ) | — | (358 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (26,420 | ) | (16,172 | ) | (73,829 | ) | — | (116,421 | ) | |||||||||||
Provision for income taxes | — | 274 | (7,826 | ) | — | (7,552 | ) | |||||||||||||
Equity in loss from continuing operations of subsidiary | (82,449 | ) | (66,003 | ) | — | 148,452 | — | |||||||||||||
Net loss from continuing operations | (108,869 | ) | (82,449 | ) | (66,003 | ) | 148,452 | (108,869 | ) | |||||||||||
Loss from discontinued operations, net of tax | (1,918 | ) | (121,741 | ) | (3,315 | ) | — | (126,974 | ) | |||||||||||
Equity in loss from discontinued operations of subsidiary | (125,056 | ) | (3,315 | ) | — | 128,371 | — | |||||||||||||
Loss on discontinued operations | (126,974 | ) | (125,056 | ) | (3,315 | ) | 128,371 | (126,974 | ) | |||||||||||
Net loss | (235,843 | ) | (207,505 | ) | (69,318 | ) | 276,823 | (235,843 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (235,843 | ) | $ | (207,505 | ) | $ | (69,318 | ) | $ | 276,823 | $ | (235,843 | ) | ||||||
Other comprehensive income (loss) | 2,699 | 2,699 | 2,699 | (5,398 | ) | 2,699 | ||||||||||||||
Comprehensive loss | $ | (233,144 | ) | $ | (204,806 | ) | $ | (66,619 | ) | $ | 271,425 | $ | (233,144 | ) | ||||||
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 | ) | — | |||||||||||||
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 CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2016 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (19,032 | ) | $ | 25,527 | $ | 16,320 | $ | — | $ | 22,815 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | — | (2,067 | ) | — | 2,067 | — | |||||||||||||
Capital expenditures | — | (9,019 | ) | (18,839 | ) | — | (27,858 | ) | |||||||||||
Payments for derivatives | — | — | 377 | — | 377 | ||||||||||||||
Proceeds from the sale of fixed assets | — | 462 | 659 | — | 1,121 | ||||||||||||||
Cash received (disposed) on divestiture | 16,173 | (284 | ) | — | — | 15,889 | |||||||||||||
Net cash provided by (used in) investing activities | 16,173 | (10,908 | ) | (17,803 | ) | 2,067 | (10,471 | ) | |||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | 2,067 | — | — | (2,067 | ) | — | |||||||||||||
Dividends to affiliates | 792 | (792 | ) | — | |||||||||||||||
Short-term debt borrowings | — | 1,705 | 5,658 | — | 7,363 | ||||||||||||||
Revolving Facility borrowings | — | 51,000 | 5,000 | — | 56,000 | ||||||||||||||
Revolving Facility reductions | — | (65,469 | ) | (5,000 | ) | — | (70,469 | ) | |||||||||||
Principal payments on long term debt | — | (151 | ) | (138 | ) | — | (289 | ) | |||||||||||
Refinancing fees and debt issuance costs | — | (922 | ) | — | — | (922 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 2,859 | (14,629 | ) | 5,520 | (2,067 | ) | (8,317 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | — | (10 | ) | 4,037 | — | 4,027 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 656 | — | 656 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 646 | 6,281 | — | 6,927 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 636 | $ | 10,974 | $ | — | $ | 11,610 |
• | 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, 2015 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 76 | Other current liabilities | $ | 11 | |||||
Total fair value | $ | 76 | $ | 11 | |||||||
As of December 31, 2016 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 10 | Other current liabilities | $ | 188 | |||||
Total fair value | $ | 10 | $ | 188 |
Amount of (Gain)/Loss Recognized (EffectivePortion) | ||||||||||||||||||
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 | 2016 | ||||||||||||||
Derivatives designated as cash flow hedges: | (Dollars in Thousands) | |||||||||||||||||
Foreign currency derivatives, excluding tax of $85, $106, $17 and $32, respectively | Revenue/Cost of goods sold Other expense / (income) | $ | (849 | ) | $ | (1,062 | ) | $ | (172 | ) | $ | (322 | ) | |||||
Commodity forward derivatives, excluding tax of $(120), $(424) and $0 respectively | Cost of goods sold | $ | 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 | 2016 | ||||||||||||||
Derivatives not designated as hedges: | (Dollars in thousands) | |||||||||||||||||
Foreign currency derivatives | Cost of goods sold / Other expense / (income) | $ | 1,020 | $ | 1,060 | $ | (560 | ) | $ | 549 |
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net sales | $ | 260,160 | $ | 98,024 | $ | 55,608 | $ | 115,336 | |||||||
Cost of sales | 235,901 | 94,817 | 49,068 | 98,440 | |||||||||||
Gross profit | 24,259 | 3,207 | 6,540 | 16,896 | |||||||||||
Research and development | 5,107 | 2,179 | 1,265 | 3,145 | |||||||||||
Selling and administrative expenses | 29,550 | 16,764 | 8,627 | 19,220 | |||||||||||
Rationalizations | 3,679 | 4,492 | 791 | (405 | ) | ||||||||||
Impairment | 121,570 | — | — | 119,907 | |||||||||||
Operating loss | (135,647 | ) | (20,228 | ) | (4,143 | ) | (124,971 | ) | |||||||
Other expense (income) | (485 | ) | (90 | ) | (135 | ) | (66 | ) | |||||||
Interest expense | 1,320 | 907 | 918 | 3,258 | |||||||||||
Loss from discontinued operations before income taxes | (136,482 | ) | (21,045 | ) | (4,926 | ) | (128,163 | ) | |||||||
Benefit for income taxes on discontinued operations | (3,626 | ) | (2,366 | ) | — | (1,189 | ) | ||||||||
Loss from discontinued operations | $ | (132,856 | ) | $ | (18,679 | ) | $ | (4,926 | ) | $ | (126,974 | ) |
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through September 30, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Depreciation and amortization | $ | 21,780 | $ | 7,988 | $ | 4,194 | $ | 5,277 | |||||||
Impairment | 121,570 | — | — | 119,907 | |||||||||||
Deferred income taxes | (3,626 | ) | (2,366 | ) | — | (1,189 | ) | ||||||||
Cash received from divestitures | — | — | — | 15,889 | |||||||||||
Capital expenditures | 24,018 | 10,104 | 4,447 | 4,713 | |||||||||||
Credit Facility reductions | — | — | — | (15,889 | ) |
As of December 31, 2015 | As of December 31, 2016 | ||||||
(dollars in thousands) | |||||||
Assets of discontinued operations: | |||||||
Accounts receivable | $ | 20,425 | $ | 17,094 | |||
Inventories | 77,332 | 71,816 | |||||
Prepaid expenses and other current assets | 524 | 320 | |||||
Net property plant and equipment | 86,369 | 79,048 | |||||
Other assets | 17,606 | 12,608 | |||||
Total assets of discontinued operations prior to impairment | 202,256 | 180,886 | |||||
Impairment of assets held for sale | — | (119,907 | ) | ||||
Total assets of discontinued operations | $ | 202,256 | $ | 60,979 | |||
Liabilities of discontinued operations: | |||||||
Accounts payable | $ | 9,331 | $ | 7,253 | |||
Accrued income and other taxes | 3,113 | 2,326 | |||||
Other accrued liabilities | 10,638 | 10,463 | |||||
Total current liabilities of discontinued operations | 23,082 | 20,042 | |||||
Other long-term obligations | 1,167 | 850 | |||||
Total liabilities of discontinued operations | $ | 24,249 | $ | 20,892 |
As of December 31, | For the Period July 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||
2014 | 2015 | |||||||||
(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, 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 | ||
Adjustments (See Note 2) | 1,058 | ||
Goodwill transferred to discontinued operations | (2,000 | ) | |
Balance as of December 31, 2016 | $ | 171,117 |
As of December 31, 2015 | As of December 31, 2016 | ||||||||||||||||||||||
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 | 22,500 | (889 | ) | 21,611 | 22,500 | (3,235 | ) | 19,265 | |||||||||||||||
Technology and know-how | 55,300 | (2,900 | ) | 52,400 | 55,300 | (10,397 | ) | 44,903 | |||||||||||||||
Customer related intangible | 64,500 | (1,688 | ) | 62,812 | 64,500 | (6,177 | ) | 58,323 | |||||||||||||||
Total finite-lived intangible assets | $ | 142,300 | $ | (5,477 | ) | $ | 136,823 | $ | 142,300 | $ | (19,809 | ) | $ | 122,491 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. | $ | (127,707 | ) | $ | (84,599 | ) | $ | (16,827 | ) | $ | (44,971 | ) | |||
Non-U.S. | (30,603 | ) | (10,919 | ) | (4,916 | ) | (71,450 | ) | |||||||
$ | (158,310 | ) | $ | (95,518 | ) | $ | (21,743 | ) | $ | (116,421 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S income taxes: | |||||||||||||||
Current | $ | (1,261 | ) | $ | (20 | ) | $ | (52 | ) | $ | (878 | ) | |||
Deferred | (537 | ) | 403 | 686 | 1,152 | ||||||||||
(1,798 | ) | 383 | 634 | 274 | |||||||||||
Non-U.S. income taxes: | |||||||||||||||
Current | 11,474 | 5,547 | 1,566 | 5,389 | |||||||||||
Deferred | (15,466 | ) | 522 | 4,682 | (13,215 | ) | |||||||||
(3,992 | ) | 6,069 | 6,248 | (7,826 | ) | ||||||||||
Total income tax benefit | $ | (5,790 | ) | $ | 6,452 | $ | 6,882 | $ | (7,552 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Tax at statutory U.S. federal rate | $ | (55,409 | ) | $ | (33,431 | ) | $ | (7,610 | ) | $ | (40,747 | ) | |||
U.S. valuation allowance, net | 26,175 | 21,532 | 7,355 | 35,091 | |||||||||||
State taxes, net of federal tax benefit | (4,387 | ) | (2,005 | ) | (697 | ) | (2,324 | ) | |||||||
U.S. tax return adjustments to estimated taxes | (368 | ) | — | — | — | ||||||||||
Resolution of uncertain tax positions | (513 | ) | 71 | 64 | (513 | ) | |||||||||
Adjustment for foreign income taxed at different rates | 10,408 | 11,136 | 7,120 | 12,738 | |||||||||||
U.S. tax credits | (1,000 | ) | — | — | — | ||||||||||
Non-U.S. tax exemptions, holidays and credits | — | (691 | ) | 228 | (175 | ) | |||||||||
Goodwill impairment | 17,161 | 8,026 | — | — | |||||||||||
Capital loss expiration | 2,422 | — | — | — | |||||||||||
Investment in subsidiary impairment deduction | — | — | — | (10,111 | ) | ||||||||||
Other | (279 | ) | 1,814 | 422 | (1,511 | ) | |||||||||
Total income tax (benefit) expense | $ | (5,790 | ) | $ | 6,452 | $ | 6,882 | $ | (7,552 | ) |
As of December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Fixed assets | $ | 10,128 | $ | 41,677 | |||
Postretirement and other employee benefits | 34,713 | 32,275 | |||||
Foreign tax credit and other carryforwards | 115,163 | 153,169 | |||||
Capitalized research and experimental costs | 21,592 | 18,146 | |||||
Environmental reserves | 4,273 | 4,237 | |||||
Inventory | 12,719 | 15,227 | |||||
Original issue discount | — | 6,461 | |||||
Long-term contract option amortization | 2,138 | 2,074 | |||||
Provision for rationalization charges | 5,967 | 7,498 | |||||
Other | 1,005 | 3,391 | |||||
Total gross deferred tax assets | 207,698 | 284,155 | |||||
Less: valuation allowance | (165,539 | ) | (244,841 | ) | |||
Total deferred tax assets | 42,159 | 39,314 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 64,278 | $ | 47,346 | |||
Debt discount amortization / Deferred financing fees | 7,666 | 6,544 | |||||
Inventory | 4,985 | 3,482 | |||||
Goodwill and acquired intangibles | 2,686 | 2,295 | |||||
Other | 4,647 | 2,751 | |||||
Total deferred tax liabilities | 84,262 | 62,418 | |||||
Net deferred tax (liability) asset | $ | (42,103 | ) | $ | (23,104 | ) |
Predecessor | (Dollars in thousands) | ||
Balance as of January 1, 2014 | $ | 20,411 | |
(Credited) / charged to income | 74,157 | ||
Translation adjustment | (800 | ) | |
Changes attributable to movement in underlying assets | 1,953 | ||
Balance at December 31, 2014 | $ | 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 | |||
Balance as of August 15, 2015 | $ | 115,449 | |
(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 | |
(Credited) / charged to income | 78,469 | ||
Translation adjustment | 583 | ||
Changes attributable to movement in underlying assets | 250 | ||
Balance as of December 31, 2016 | $ | 244,841 |
Predecessor | (Dollars in thousands) | ||
Balance at January 1 | $ | 7,203 | |
Additions based on tax positions related to the current year | 268 | ||
Additions for tax positions of prior years | 232 | ||
Reductions for tax positions of prior years | (1,204 | ) | |
Lapse of statutes of limitations | (1,180 | ) | |
Settlements | (1,503 | ) | |
Foreign currency impact | (106 | ) | |
Balance at December 31, 2014 | $ | 3,710 | |
Foreign currency impact | (21 | ) | |
Balance as of August 14, 2015 | $ | 3,689 | |
Successor | |||
Balance as of August 15, 2015 | $ | 3,689 | |
Additions for tax positions of prior years | 301 | ||
Foreign currency impact | (69 | ) | |
Balance as of December 31, 2015 | $ | 3,921 | |
Lapse of statutes of limitations | (603 | ) | |
Foreign currency impact | 20 | ||
Balance as of December 31, 2016 | $ | 3,338 |
Years | |
Trade name | 5-10 |
Technology and know-how | 5-9 |
Customer related intangible | 5-14 |
Predecessor | Successor | ||||||||||||||
For the year Ended December 31,2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the year Ended December 31,2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Interest incurred on debt | $ | 20,099 | $ | 12,066 | $ | 7,694 | $ | 20,408 | |||||||
Amortization of discount on Senior Subordinated Notes | 12,298 | 12,027 | — | — | |||||||||||
Accretion of fair value adjustment on Senior Notes | — | — | 2,305 | 6,305 | |||||||||||
Amortization of debt issuance costs | 3,339 | 2,118 | — | 201 | |||||||||||
Total interest expense | $ | 35,736 | $ | 26,211 | $ | 9,999 | $ | 26,914 |
As of December 31, 2015 | As of December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 98,000 | $ | 90,731 | |||
Senior Notes | 267,827 | 274,132 | |||||
Other Debt | 1,400 | 569 | |||||
Total Debt | 367,227 | 365,432 | |||||
Less: Short-term Debt | (4,772 | ) | (8,852 | ) | |||
Long-term Debt | $ | 362,455 | $ | 356,580 |
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 | ||||
Cash | $ | 25,032 | ||
Accounts receivable | 94,298 | |||
Inventories | 344,765 | |||
Property, plant and equipment | 650,405 | |||
Intangible assets | 155,700 | |||
Deferred tax assets | 41,606 | |||
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 | (101,648 | ) | ||
Deferred tax liabilities | (79,235 | ) | ||
Net identifiable assets acquired | $ | 681,220 | ||
Goodwill | $ | 173,117 | ||
Net assets acquired | $ | 854,337 |
(Dollars in thousands) | |||
2017 | $ | 2,637 | |
2018 | 2,158 | ||
2019 | 1,781 | ||
2020 | 1,108 | ||
2021 | 373 | ||
After 2021 | 902 |
Predecessor | Successor | ||||||||||||||||||||||
2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 750 | $ | 1,107 | $ | 151 | $ | 98 | $ | 386 | $ | 281 | |||||||||||
Interest cost | 5,983 | 2,669 | 854 | 554 | 2,200 | 94 | |||||||||||||||||
Expected return on assets | (5,215 | ) | (2,516 | ) | — | — | (1,885 | ) | (59 | ) | |||||||||||||
Amortization of prior service cost | — | 2 | — | (12 | ) | — | — | ||||||||||||||||
Curtailment gain | — | (28 | ) | — | — | — | (675 | ) | |||||||||||||||
Mark-to-market loss (gain) | 18,431 | (534 | ) | — | — | 716 | 1,843 | ||||||||||||||||
Pension costs | $ | 19,949 | $ | 700 | $ | 1,005 | $ | 640 | $ | 1,417 | $ | 1,484 |
Successor | ||||||||
2016 | ||||||||
U.S. | Foreign | |||||||
Service cost | $ | 1,325 | $ | 698 | ||||
Interest cost | 5,744 | 243 | ||||||
Expected return on assets | (4,940 | ) | (298 | ) | ||||
Mark-to-market loss (gain) | (2,322 | ) | (220 | ) | ||||
Pension costs | $ | (193 | ) | $ | 423 |
As of December 31, 2015 | As of December 31, 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 146,790 | $ | 18,512 | $ | 142,126 | $ | 18,271 | |||||||
Service cost | 386 | 281 | 1,325 | 698 | |||||||||||
Interest cost | 2,200 | 94 | 5,744 | 243 | |||||||||||
Participant contributions | — | 79 | — | 256 | |||||||||||
Plan amendments / curtailments | — | (578 | ) | — | (122 | ) | |||||||||
Foreign currency exchange changes | — | (480 | ) | — | (527 | ) | |||||||||
Actuarial loss (gain) | (3,896 | ) | 377 | 1,293 | (18 | ) | |||||||||
Benefits paid | (3,354 | ) | (14 | ) | (10,258 | ) | (564 | ) | |||||||
Net benefit obligation at end of period | $ | 142,126 | $ | 18,271 | $ | 140,230 | $ | 18,237 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 97,473 | $ | 12,811 | $ | 93,897 | $ | 11,293 | |||||||
Actual return on plan assets | (2,727 | ) | (1,407 | ) | 8,556 | 378 | |||||||||
Foreign currency exchange rate changes | — | (346 | ) | — | (346 | ) | |||||||||
Employer contributions | 2,505 | 170 | 8,710 | 854 | |||||||||||
Participant contributions | — | 79 | — | 256 | |||||||||||
Benefits paid | (3,354 | ) | (14 | ) | (10,258 | ) | (564 | ) | |||||||
Fair value of plan assets at end of period | $ | 93,897 | $ | 11,293 | $ | 100,905 | $ | 11,871 | |||||||
Funded status (underfunded): | $ | (48,229 | ) | $ | (6,978 | ) | $ | (39,325 | ) | $ | (6,366 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | (95 | ) | $ | — | $ | — | ||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Non-current assets | $ | — | $ | — | $ | — | $ | — | |||||||
Current liabilities | (437 | ) | (253 | ) | (435 | ) | (128 | ) | |||||||
Non-current liabilities | (47,792 | ) | (6,725 | ) | (38,890 | ) | (6,238 | ) | |||||||
Net amount recognized | $ | (48,229 | ) | $ | (6,978 | ) | $ | (39,325 | ) | $ | (6,366 | ) |
December 31, 2015 | December 31, 2016 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,986 | $ | — | $ | — | $ | 1,986 | $ | 1,502 | $ | — | $ | — | $ | 1,502 | |||||||||||||||
Collective trusts | — | 91,911 | — | 91,911 | — | 99,403 | — | 99,403 | |||||||||||||||||||||||
Total | $ | 1,986 | $ | 91,911 | $ | — | $ | 93,897 | $ | 1,502 | $ | 99,403 | $ | — | $ | 100,905 | |||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Foreign government bonds | — | 840 | — | 840 | — | 729 | — | 729 | |||||||||||||||||||||||
Fixed insurance contracts | — | — | 10,453 | 10,453 | — | — | 11,142 | 11,142 | |||||||||||||||||||||||
Total | $ | — | $ | 840 | $ | 10,453 | $ | 11,293 | $ | — | $ | 729 | $ | 11,142 | $ | 11,871 |
Fixed Insurance Contracts | |||
Balance as of August 15, 2015 (Predecessor) | $ | 13,336 | |
Gain / contributions / currency impact | (2,883 | ) | |
Distributions | — | ||
Balance at December 31, 2015 (Successor) | 10,453 | ||
Gain / contributions / currency impact | 707 | ||
Distributions | (18 | ) | |
Balance at December 31, 2016 (Successor) | $ | 11,142 |
Pension Benefit Obligations Key Assumptions | As of December 31, | ||||
2015 | 2016 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 3.86 | % | 3.61 | % | |
Rate of compensation increase | 1.84 | % | 1.57 | % |
Pension Cost Key Assumptions | |||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 3.79 | % | 3.86 | % | |
Expected return on plan assets | 3.99 | % | 4.97 | % | |
Rate of compensation increase | 2.08 | % | 1.84 | % |
Percentage of Plan Assets as of December 31, 2016 | |||||
US | Foreign | ||||
Equity securities and return seeking assets | 20 | % | — | % | |
Fixed income, debt securities, or cash | 80 | % | 100 | % | |
Total | 100 | % | 100 | % |
2015 | 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 142,126 | $ | 16,749 | $ | 140,230 | $ | 16,057 | |||||||
Fair value of plan assets | 93,897 | 11,293 | 100,905 | 11,142 |
2015 | 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 142,126 | $ | 18,271 | $ | 140,230 | $ | 17,415 | |||||||
Fair value of plan assets | 93,897 | 11,293 | 100,905 | 11,142 |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2017: | |||||||
Expected employer contributions | $ | 6,654 | $ | 561 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2017 | 9,259 | 751 | |||||
2018 | 9,247 | 696 | |||||
2019 | 9,218 | 643 | |||||
2020 | 9,256 | 720 | |||||
2021 | 9,278 | 670 | |||||
2022-2026 | 45,917 | 5,705 |
Predecessor | Successor | ||||||||||||||||||||||
For the Period January 1 through August 14, 2015 | For the Period August 15 Through December 31, 2015 | ||||||||||||||||||||||
2014 | |||||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 71 | $ | — | $ | 9 | — | $ | 5 | ||||||||||||||
Interest cost | 396 | 976 | 223 | 433 | 142 | 289 | |||||||||||||||||
Amortization of prior service credit | — | (180 | ) | — | — | — | — | ||||||||||||||||
Plan amendment / curtailment | — | (294 | ) | — | — | — | — | ||||||||||||||||
Mark-to-market (gain) loss | 1,151 | 1,456 | — | — | (100 | ) | (621 | ) | |||||||||||||||
Post-employment benefits cost (benefit) | $ | 1,547 | $ | 2,029 | $ | 223 | $ | 442 | $ | 42 | $ | (327 | ) |
Successor | |||||||
2016 | |||||||
U.S. | Foreign | ||||||
Service cost | $ | — | $ | 4 | |||
Interest cost | 360 | 764 | |||||
Plan amendment / curtailment | — | (993 | ) | ||||
Mark-to-market (gain) loss | (191 | ) | (225 | ) | |||
Post-employment benefits cost (benefit) | $ | 169 | $ | (450 | ) |
Postretirement Benefits | As of December 31, 2015 | As of December 31, 2016 | |||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Changes in Benefit Obligation: | |||||||||||||||
Net benefit obligation at beginning of period, August 15, 2015 and January 1, 2016, respectively | $ | 11,395 | $ | 13,457 | $ | 10,859 | $ | 11,296 | |||||||
Service cost | — | 5 | — | 4 | |||||||||||
Interest cost | 142 | 289 | 360 | 764 | |||||||||||
Foreign currency exchange rates | — | (1,489 | ) | — | 709 | ||||||||||
Actuarial loss (gain) | (100 | ) | (621 | ) | (191 | ) | (225 | ) | |||||||
Gross benefits paid | (578 | ) | (345 | ) | (853 | ) | (855 | ) | |||||||
Plan amendment | — | — | — | (993 | ) | ||||||||||
Net benefit obligation at end of period | $ | 10,859 | $ | 11,296 | $ | 10,175 | $ | 10,700 | |||||||
Changes in Plan Assets: | |||||||||||||||
Fair value of plan assets at beginning of period | $ | — | $ | — | $ | — | $ | — | |||||||
Employer contributions | 578 | 345 | 853 | 855 | |||||||||||
Gross benefits paid | (578 | ) | (345 | ) | (853 | ) | (855 | ) | |||||||
Fair value of plan assets at end of period | $ | — | $ | — | $ | — | $ | — | |||||||
Funded status: | $ | (10,859 | ) | $ | (11,296 | ) | $ | (10,175 | ) | $ | (10,700 | ) | |||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||||
Prior service credit | $ | — | $ | — | $ | — | $ | — | |||||||
Amounts recognized in the statement of financial position: | |||||||||||||||
Current liabilities | $ | (1,298 | ) | $ | (755 | ) | $ | (1,134 | ) | $ | (738 | ) | |||
Non-current liabilities | (9,561 | ) | (10,541 | ) | (9,041 | ) | (9,962 | ) | |||||||
Net amount recognized | $ | (10,859 | ) | $ | (11,296 | ) | $ | (10,175 | ) | $ | (10,700 | ) |
Postretirement Benefit Obligations | |||||
2015 | 2016 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 5.10 | % | 4.80 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.67 | % | 6.80 | % | |
Ultimate | 6.48 | % | 5.96 | % | |
Years to ultimate | 2 | 8 |
Postretirement Benefit Costs | |||||
2015 | 2016 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.91 | % | 5.10 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.55 | % | 6.67 | % | |
Ultimate | 6.18 | % | 6.48 | % | |
Years to ultimate | 0 | 1 |
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 | $ | 2 | $ | 75 | $ | (2 | ) | $ | (63 | ) | |||||
Effect on benefit obligations | $ | 67 | $ | 599 | $ | (63 | ) | $ | (507 | ) |
U.S. | Foreign | ||||||
(Dollars in thousands) | |||||||
Expected contributions in 2017: | |||||||
Expected employer contributions | $ | 1,134 | $ | 738 | |||
Expected employee contributions | — | — | |||||
Estimated future benefit payments reflecting expected future service for the years ending December 31: | |||||||
2017 | 1,134 | 738 | |||||
2018 | 1,065 | 742 | |||||
2019 | 984 | 747 | |||||
2020 | 898 | 754 | |||||
2021 | 809 | 761 | |||||
2020-2024 | 2,975 | 3,931 |
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, 2014 (Predecessor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
(Dollars in thousands) | |||||||||||
Recorded in Cost of Sales | |||||||||||
Accelerated depreciation | $ | 22,388 | $ | — | $ | 22,388 | |||||
Inventory loss | 941 | — | 941 | ||||||||
Fixed asset write-offs and other | 5,552 | — | 5,552 | ||||||||
Recorded in Research and Development | |||||||||||
Accelerated depreciation | — | 2,312 | 2,312 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Accelerated depreciation | — | 608 | 608 | ||||||||
Other | 89 | 515 | 604 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 5,040 | 2,425 | 7,465 | ||||||||
Contract terminations | 469 | 11 | 480 | ||||||||
Total 2014 rationalization and related charges | $ | 34,479 | $ | 5,871 | $ | 40,350 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
(Dollars in thousands) | |||||||||||
Recorded in Cost of Sales | |||||||||||
Accelerated depreciation | $ | 432 | $ | 940 | 1,372 | ||||||
Inventory loss | (33 | ) | — | (33 | ) | ||||||
Fixed asset write-offs and other | 1,715 | — | 1,715 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Other | 400 | 954 | 1,354 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 157 | (168 | ) | (11 | ) | ||||||
Contract terminations | 25 | — | 25 | ||||||||
Total | $ | 2,696 | $ | 1,726 | $ | 4,422 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
Recorded in Cost of Sales | |||||||||||
Inventory loss | $ | (649 | ) | $ | — | $ | (649 | ) | |||
Fixed asset write-offs and other | 329 | — | 329 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Other | 135 | 290 | 425 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 154 | 71 | 225 | ||||||||
Contract terminations | 59 | — | 59 | ||||||||
Total | $ | 28 | $ | 361 | $ | 389 | |||||
For the Year Ended December 31, 2016 (Successor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
Recorded in Cost of Sales | |||||||||||
Fixed asset write-offs and other | $ | 636 | $ | — | $ | 636 | |||||
Recorded in Selling and General Administrative | |||||||||||
Other | 1,258 | 412 | 1,670 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | (52 | ) | 111 | 59 | |||||||
Total | $ | 1,842 | $ | 523 | $ | 2,365 |
2015 | 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Projected benefit obligation | $ | 142,126 | $ | 18,271 | $ | 140,230 | $ | 17,415 | |||||||
Fair value of plan assets | 93,897 | 11,293 | 100,905 | 11,142 |
2015 | 2016 | ||||||||||||||
U.S. | Foreign | U.S. | Foreign | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Accumulated benefit obligation | $ | 142,126 | $ | 16,749 | $ | 140,230 | $ | 16,057 | |||||||
Fair value of plan assets | 93,897 | 11,293 | 100,905 | 11,142 |
At December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 66,201 | $ | 54,469 | |||
Work in process | 89,453 | 52,379 | |||||
Finished goods | 62,476 | 49,263 | |||||
218,130 | 156,111 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,041 | $ | 6,096 | |||
Value added tax and other indirect taxes receivable | 10,069 | 12,984 | |||||
Other current assets | 2,040 | 2,585 | |||||
$ | 21,150 | $ | 21,665 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 44,052 | $ | 43,737 | |||
Buildings | 55,843 | 55,440 | |||||
Machinery and equipment and other | 431,226 | 460,892 | |||||
Construction in progress | 40,208 | 25,635 | |||||
$ | 571,329 | $ | 585,704 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 4,028 | $ | 4,802 | |||
Employee compensation and benefits | 6,199 | 11,439 | |||||
Other | 10,760 | 14,278 | |||||
$ | 20,987 | $ | 30,519 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 20,102 | $ | 19,002 | |||
Pension and related benefits | 55,364 | 45,876 | |||||
Other | 18,852 | 17,270 | |||||
$ | 94,318 | $ | 82,148 |
Pension Benefit Obligations Key Assumptions | As of December 31, | ||||
2015 | 2016 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 3.86 | % | 3.61 | % | |
Rate of compensation increase | 1.84 | % | 1.57 | % |
Pension Cost Key Assumptions | |||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 3.79 | % | 3.86 | % | |
Expected return on plan assets | 3.99 | % | 4.97 | % | |
Rate of compensation increase | 2.08 | % | 1.84 | % |
Postretirement Benefit Obligations | |||||
2015 | 2016 | ||||
Weighted average assumptions to determine benefit obligations: | |||||
Discount rate | 5.10 | % | 4.80 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.67 | % | 6.80 | % | |
Ultimate | 6.48 | % | 5.96 | % | |
Years to ultimate | 2 | 8 |
Postretirement Benefit Costs | |||||
2015 | 2016 | ||||
Weighted average assumptions to determine net cost: | |||||
Discount rate | 4.91 | % | 5.10 | % | |
Health care cost trend on covered charges: | |||||
Initial | 6.55 | % | 6.67 | % | |
Ultimate | 6.18 | % | 6.48 | % | |
Years to ultimate | 0 | 1 |
Fixed Insurance Contracts | |||
Balance as of August 15, 2015 (Predecessor) | $ | 13,336 | |
Gain / contributions / currency impact | (2,883 | ) | |
Distributions | — | ||
Balance at December 31, 2015 (Successor) | 10,453 | ||
Gain / contributions / currency impact | 707 | ||
Distributions | (18 | ) | |
Balance at December 31, 2016 (Successor) | $ | 11,142 |
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 | ||||
Cash | $ | 25,032 | ||
Accounts receivable | 94,298 | |||
Inventories | 344,765 | |||
Property, plant and equipment | 650,405 | |||
Intangible assets | 155,700 | |||
Deferred tax assets | 41,606 | |||
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 | (101,648 | ) | ||
Deferred tax liabilities | (79,235 | ) | ||
Net identifiable assets acquired | $ | 681,220 | ||
Goodwill | $ | 173,117 | ||
Net assets acquired | $ | 854,337 |
December 31, 2015 | December 31, 2016 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
U.S. Plan Assets | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,986 | $ | — | $ | — | $ | 1,986 | $ | 1,502 | $ | — | $ | — | $ | 1,502 | |||||||||||||||
Collective trusts | — | 91,911 | — | 91,911 | — | 99,403 | — | 99,403 | |||||||||||||||||||||||
Total | $ | 1,986 | $ | 91,911 | $ | — | $ | 93,897 | $ | 1,502 | $ | 99,403 | $ | — | $ | 100,905 | |||||||||||||||
International Plan Assets | |||||||||||||||||||||||||||||||
Foreign government bonds | — | 840 | — | 840 | — | 729 | — | 729 | |||||||||||||||||||||||
Fixed insurance contracts | — | — | 10,453 | 10,453 | — | — | 11,142 | 11,142 | |||||||||||||||||||||||
Total | $ | — | $ | 840 | $ | 10,453 | $ | 11,293 | $ | — | $ | 729 | $ | 11,142 | $ | 11,871 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S income taxes: | |||||||||||||||
Current | $ | (1,261 | ) | $ | (20 | ) | $ | (52 | ) | $ | (878 | ) | |||
Deferred | (537 | ) | 403 | 686 | 1,152 | ||||||||||
(1,798 | ) | 383 | 634 | 274 | |||||||||||
Non-U.S. income taxes: | |||||||||||||||
Current | 11,474 | 5,547 | 1,566 | 5,389 | |||||||||||
Deferred | (15,466 | ) | 522 | 4,682 | (13,215 | ) | |||||||||
(3,992 | ) | 6,069 | 6,248 | (7,826 | ) | ||||||||||
Total income tax benefit | $ | (5,790 | ) | $ | 6,452 | $ | 6,882 | $ | (7,552 | ) |
As of December 31, 2015 | As of December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Foreign currency translation adjustments | $ | 10,134 | $ | 7,560 | |||
Commodities and foreign currency derivatives | 123 | (2 | ) | ||||
Total accumulated comprehensive loss | $ | 10,257 | $ | 7,558 |
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2015 | ||||||||||||||||||||
(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 | 9,803 | 19,505 | (80,900 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 7,599 | 74,791 | — | 82,390 | |||||||||||||||
Inventories | — | 54,613 | 163,517 | — | 218,130 | |||||||||||||||
Prepaid and other current assets | — | 7,907 | 13,243 | — | 21,150 | |||||||||||||||
Current assets of discontinued operations | — | 81,638 | 17,520 | (877 | ) | 98,281 | ||||||||||||||
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 | — | 209,633 | 341,530 | — | 551,163 | |||||||||||||||
Deferred income taxes | — | — | 15,326 | — | 15,326 | |||||||||||||||
Goodwill | — | 72,399 | 99,660 | — | 172,059 | |||||||||||||||
Notes receivable - affiliate | — | 46,074 | — | (46,074 | ) | — | ||||||||||||||
Other assets | — | 79,368 | 73,246 | — | 152,614 | |||||||||||||||
Long-term assets of discontinued operations | — | 99,457 | 4,518 | — | 103,975 | |||||||||||||||
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 | $ | 71,099 | $ | 9,642 | $ | (80,900 | ) | $ | — | |||||||||
Accounts payable - trade | — | 11,191 | 28,956 | — | 40,147 | |||||||||||||||
Short-term debt | — | 4,636 | 136 | — | 4,772 | |||||||||||||||
Accrued income and other taxes | — | 2,824 | 3,109 | — | 5,933 | |||||||||||||||
Rationalizations | — | 995 | 200 | — | 1,195 | |||||||||||||||
Other accrued liabilities | 2,444 | 4,841 | 13,702 | — | 20,987 | |||||||||||||||
Current liabilities of discontinued operations | — | 18,384 | 5,575 | (877 | ) | 23,082 | ||||||||||||||
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 | — | 60,508 | 33,810 | — | 94,318 | |||||||||||||||
Deferred income taxes | — | 248 | 57,182 | — | 57,430 | |||||||||||||||
Long-term liabilities of discontinued operations | — | 738 | 429 | — | 1,167 | |||||||||||||||
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 BALANCE SHEETS | ||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 636 | $ | 10,974 | $ | — | $ | 11,610 | ||||||||||
Accounts receivable - affiliates | 51,592 | 3,624 | 19,643 | (74,859 | ) | — | ||||||||||||||
Accounts receivable - trade | — | 7,518 | 73,050 | — | 80,568 | |||||||||||||||
Inventories | — | 44,563 | 111,548 | — | 156,111 | |||||||||||||||
Prepaid and other current assets | 1,350 | 4,853 | 15,462 | — | 21,665 | |||||||||||||||
Current assets of discontinued operations | — | 51,160 | 14,296 | (4,477 | ) | 60,979 | ||||||||||||||
Total current assets | 52,942 | 112,354 | 244,973 | (79,336 | ) | 330,933 | ||||||||||||||
Investment in affiliates | 844,379 | 601,597 | — | (1,445,976 | ) | — | ||||||||||||||
Property, plant and equipment | — | 191,503 | 317,352 | — | 508,855 | |||||||||||||||
Deferred income taxes | — | — | 19,803 | — | 19,803 | |||||||||||||||
Goodwill | — | 70,399 | 100,718 | — | 171,117 | |||||||||||||||
Notes receivable - affiliate | — | 49,003 | — | (49,003 | ) | — | ||||||||||||||
Other assets | — | 70,767 | 70,801 | — | 141,568 | |||||||||||||||
Total Assets | $ | 897,321 | $ | 1,095,623 | $ | 753,647 | $ | (1,574,315 | ) | $ | 1,172,276 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable - affiliate | $ | 806 | $ | 71,243 | $ | 2,810 | $ | (74,859 | ) | $ | — | |||||||||
Accounts payable - trade | 964 | 8,033 | 38,666 | — | 47,663 | |||||||||||||||
Short-term debt | — | 3,062 | 5,790 | — | 8,852 | |||||||||||||||
Accrued income and other taxes | — | 2,095 | 3,161 | — | 5,256 | |||||||||||||||
Rationalizations | — | 57 | 18 | — | 75 | |||||||||||||||
Other accrued liabilities | 2,444 | 12,148 | 15,927 | — | 30,519 | |||||||||||||||
Current liabilities of discontinued operations | — | 20,381 | 4,138 | (4,477 | ) | 20,042 | ||||||||||||||
Total current liabilities | 4,214 | 117,019 | 70,510 | (79,336 | ) | 112,407 | ||||||||||||||
Long-term debt - affiliate | 41,590 | — | 7,413 | (49,003 | ) | — | ||||||||||||||
Long-term debt - third party | 274,132 | 81,695 | 753 | — | 356,580 | |||||||||||||||
Other long-term obligations | — | 50,943 | 31,205 | — | 82,148 | |||||||||||||||
Deferred income taxes | — | 909 | 41,997 | — | 42,906 | |||||||||||||||
Long-term liabilities of discontinued operations | — | 678 | 172 | — | 850 | |||||||||||||||
Stockholders' equity | 577,385 | 844,379 | 601,597 | (1,445,976 | ) | 577,385 | ||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 897,321 | $ | 1,095,623 | $ | 753,647 | $ | (1,574,315 | ) | $ | 1,172,276 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (9,474 | ) | $ | 79,864 | $ | 50,513 | $ | — | $ | 120,903 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | 6,604 | — | — | (6,604 | ) | — | |||||||||||||
Capital expenditures | — | (58,926 | ) | (26,055 | ) | — | (84,981 | ) | |||||||||||
Insurance recoveries | — | — | 2,834 | — | 2,834 | ||||||||||||||
Proceeds (payments) for derivatives | — | (2,195 | ) | 170 | — | (2,025 | ) | ||||||||||||
Proceeds from fixed asset sales | — | 1,700 | 3,342 | — | 5,042 | ||||||||||||||
Other | — | — | 178 | — | 178 | ||||||||||||||
Net cash provided by (used in) investing activities | 6,604 | (59,421 | ) | (19,531 | ) | (6,604 | ) | (78,952 | ) | ||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | — | (6,604 | ) | — | 6,604 | — | |||||||||||||
Short-term debt borrowings | — | (34 | ) | (987 | ) | — | (1,021 | ) | |||||||||||
Revolving Facility borrowings | — | 183,000 | 86,000 | — | 269,000 | ||||||||||||||
Revolving Facility reductions | — | (193,000 | ) | (100,000 | ) | — | (293,000 | ) | |||||||||||
Principal payments on long term debt | — | (132 | ) | (60 | ) | — | (192 | ) | |||||||||||
Supply chain financing | — | — | (9,455 | ) | — | (9,455 | ) | ||||||||||||
Proceeds from exercise of stock options | 2,813 | — | — | — | 2,813 | ||||||||||||||
Purchase of treasury shares | (894 | ) | — | — | — | (894 | ) | ||||||||||||
Refinancing fees and debt issuance costs | — | (2,922 | ) | (357 | ) | — | (3,279 | ) | |||||||||||
Other | 951 | — | — | — | 951 | ||||||||||||||
Net cash (used in) provided by financing activities | 2,870 | (19,692 | ) | (24,859 | ) | 6,604 | (35,077 | ) | |||||||||||
Net increase 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 | ) | — | |||||||||||||
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 CASH FLOWS | |||||||||||||||||||
For the year ended December 31, 2016 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidating | |||||||||||||||||||
Non- | Entries and | ||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | |||||||||||||||
Net cash (used in) provided by operating activities: | $ | (19,032 | ) | $ | 25,527 | $ | 16,320 | $ | — | $ | 22,815 | ||||||||
Cash flow from investing activities: | |||||||||||||||||||
Loan repayments from affiliates | — | (2,067 | ) | — | 2,067 | — | |||||||||||||
Capital expenditures | — | (9,019 | ) | (18,839 | ) | — | (27,858 | ) | |||||||||||
Payments for derivatives | — | — | 377 | — | 377 | ||||||||||||||
Proceeds from the sale of fixed assets | — | 462 | 659 | — | 1,121 | ||||||||||||||
Cash received (disposed) on divestiture | 16,173 | (284 | ) | — | — | 15,889 | |||||||||||||
Net cash provided by (used in) investing activities | 16,173 | (10,908 | ) | (17,803 | ) | 2,067 | (10,471 | ) | |||||||||||
Cash flow from financing activities: | |||||||||||||||||||
Loans repayments to affiliates | 2,067 | — | — | (2,067 | ) | — | |||||||||||||
Dividends to affiliates | 792 | (792 | ) | — | |||||||||||||||
Short-term debt borrowings | — | 1,705 | 5,658 | — | 7,363 | ||||||||||||||
Revolving Facility borrowings | — | 51,000 | 5,000 | — | 56,000 | ||||||||||||||
Revolving Facility reductions | — | (65,469 | ) | (5,000 | ) | — | (70,469 | ) | |||||||||||
Principal payments on long term debt | — | (151 | ) | (138 | ) | — | (289 | ) | |||||||||||
Refinancing fees and debt issuance costs | — | (922 | ) | — | — | (922 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 2,859 | (14,629 | ) | 5,520 | (2,067 | ) | (8,317 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | — | (10 | ) | 4,037 | — | 4,027 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 656 | — | 656 | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 646 | 6,281 | — | 6,927 | ||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 636 | $ | 10,974 | $ | — | $ | 11,610 |
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 | $ | — | $ | 240,295 | $ | 142,651 | $ | (382,946 | ) | $ | — | |||||||||
Sales - third party | — | 203,609 | 621,536 | — | 825,145 | |||||||||||||||
Net sales | — | 443,904 | 764,187 | (382,946 | ) | 825,145 | ||||||||||||||
Cost of sales | — | 403,058 | 737,044 | (382,946 | ) | 757,156 | ||||||||||||||
Gross profit | — | 40,846 | 27,143 | — | 67,989 | |||||||||||||||
Research and development | — | 9,738 | — | — | 9,738 | |||||||||||||||
Selling and administrative expenses | — | 33,108 | 61,521 | — | 94,629 | |||||||||||||||
Impairments | — | 75,650 | — | — | 75,650 | |||||||||||||||
Rationalizations | — | 5,431 | 2,515 | — | 7,946 | |||||||||||||||
Operating loss | — | (83,081 | ) | (36,893 | ) | — | (119,974 | ) | ||||||||||||
Other expense (income), net | — | 2,049 | 871 | — | 2,920 | |||||||||||||||
Interest expense - affiliate | — | 806 | — | (806 | ) | — | ||||||||||||||
Interest expense - third party | 32,118 | 2,721 | 897 | — | 35,736 | |||||||||||||||
Interest income - affiliate | (806 | ) | — | — | 806 | — | ||||||||||||||
Interest income - third party | — | — | (320 | ) | — | (320 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (31,312 | ) | (88,657 | ) | (38,341 | ) | — | ` | (158,310 | ) | ||||||||||
Provision for income taxes | 15,443 | (17,240 | ) | (3,993 | ) | — | (5,790 | ) | ||||||||||||
Equity in loss from continuing operations of subsidiary | (105,765 | ) | (34,348 | ) | — | 140,113 | — | |||||||||||||
Net loss from continuing operations | (152,520 | ) | (105,765 | ) | (34,348 | ) | 140,113 | (152,520 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (126,217 | ) | (6,639 | ) | — | (132,856 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (132,856 | ) | (6,639 | ) | — | 139,495 | — | |||||||||||||
Loss on discontinued operations | (132,856 | ) | (132,856 | ) | (6,639 | ) | 139,495 | (132,856 | ) | |||||||||||
Net loss | (285,376 | ) | (238,621 | ) | (40,987 | ) | 279,608 | (285,376 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (285,376 | ) | $ | (238,621 | ) | $ | (40,987 | ) | $ | 279,608 | $ | (285,376 | ) | ||||||
Other comprehensive loss | (43,900 | ) | (43,900 | ) | (28,650 | ) | 72,550 | (43,900 | ) | |||||||||||
Comprehensive loss | $ | (329,276 | ) | $ | (282,521 | ) | $ | (69,637 | ) | $ | 352,158 | $ | (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 | $ | — | $ | 117,366 | $ | 52,683 | $ | (170,049 | ) | $ | — | |||||||||
Sales - third party | — | 80,243 | 259,664 | — | 339,907 | |||||||||||||||
Net sales | — | 197,609 | 312,347 | (170,049 | ) | 339,907 | ||||||||||||||
Cost of sales | — | 180,983 | 294,067 | (170,049 | ) | 305,001 | ||||||||||||||
Gross profit | — | 16,626 | 18,280 | — | 34,906 | |||||||||||||||
Research and development | — | 3,377 | — | — | 3,377 | |||||||||||||||
Selling and administrative expenses | 6,750 | 31,513 | 26,120 | — | 64,383 | |||||||||||||||
Impairments | — | 35,381 | — | — | 35,381 | |||||||||||||||
Rationalizations | — | (68 | ) | 82 | — | 14 | ||||||||||||||
Operating loss | (6,750 | ) | (53,577 | ) | (7,922 | ) | — | (68,249 | ) | |||||||||||
Other expense (income), net | — | 889 | 532 | — | 1,421 | |||||||||||||||
Interest expense - affiliate | 3 | 372 | — | (375 | ) | — | ||||||||||||||
Interest expense - third party | 24,366 | 1,574 | 271 | — | 26,211 | |||||||||||||||
Interest income - affiliate | (372 | ) | (3 | ) | — | 375 | — | |||||||||||||
Interest income - third party | — | — | (363 | ) | — | (363 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (30,747 | ) | (56,409 | ) | (8,362 | ) | — | ` | (95,518 | ) | ||||||||||
Provision for income taxes | — | 384 | 6,068 | — | 6,452 | |||||||||||||||
Equity in loss from continuing operations of subsidiary | (71,223 | ) | (14,430 | ) | — | 85,653 | — | |||||||||||||
Net loss from continuing operations | (101,970 | ) | (71,223 | ) | (14,430 | ) | 85,653 | (101,970 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (13,430 | ) | (5,249 | ) | — | (18,679 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (18,679 | ) | (5,249 | ) | — | 23,928 | — | |||||||||||||
Loss on discontinued operations | (18,679 | ) | (18,679 | ) | (5,249 | ) | 23,928 | (18,679 | ) | |||||||||||
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 | (26,674 | ) | (26,674 | ) | (28,041 | ) | 54,715 | (26,674 | ) | |||||||||||
Comprehensive loss | $ | (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 | $ | — | $ | 48,988 | $ | 31,898 | $ | (80,886 | ) | $ | — | |||||||||
Sales - third party | — | 40,279 | 152,854 | — | 193,133 | |||||||||||||||
Net sales | — | 89,267 | 184,752 | (80,886 | ) | 193,133 | ||||||||||||||
Cost of sales | — | 87,683 | 174,048 | (80,886 | ) | 180,845 | ||||||||||||||
Gross profit | — | 1,584 | 10,704 | — | 12,288 | |||||||||||||||
Research and development | — | 1,083 | — | — | 1,083 | |||||||||||||||
Selling and administrative expenses | — | 5,556 | 17,929 | — | 23,485 | |||||||||||||||
Rationalizations | — | 70 | 213 | — | 283 | |||||||||||||||
Operating loss | — | (5,125 | ) | (7,438 | ) | — | (12,563 | ) | ||||||||||||
Other expense (income), net | — | 1,286 | (2,099 | ) | — | (813 | ) | |||||||||||||
Interest expense - affiliate | 226 | — | — | (226 | ) | — | ||||||||||||||
Interest expense - third party | 9,552 | 161 | 286 | — | 9,999 | |||||||||||||||
Interest income - affiliate | — | (226 | ) | — | 226 | — | ||||||||||||||
Interest income - third party | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (9,778 | ) | (6,346 | ) | (5,619 | ) | — | ` | (21,743 | ) | ||||||||||
Provision for income taxes | — | 634 | 6,248 | — | 6,882 | |||||||||||||||
Equity in loss from continuing operations of subsidiary | (18,847 | ) | (11,868 | ) | — | 30,715 | — | |||||||||||||
Net loss from continuing operations | (28,625 | ) | (18,848 | ) | (11,867 | ) | 30,715 | (28,625 | ) | |||||||||||
Loss from discontinued operations, net of tax | — | (4,154 | ) | (772 | ) | — | (4,926 | ) | ||||||||||||
Equity in loss from discontinued operations of subsidiary | (4,926 | ) | (772 | ) | — | 5,698 | — | |||||||||||||
Loss on discontinued operations | (4,926 | ) | (4,926 | ) | (772 | ) | 5,698 | (4,926 | ) | |||||||||||
Net loss | (33,551 | ) | (23,774 | ) | (12,639 | ) | 36,413 | (33,551 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (33,551 | ) | $ | (23,774 | ) | $ | (12,639 | ) | $ | 36,413 | $ | (33,551 | ) | ||||||
Other comprehensive loss | (10,257 | ) | (10,257 | ) | (10,257 | ) | 20,514 | (10,257 | ) | |||||||||||
Comprehensive loss | $ | (43,808 | ) | $ | (34,031 | ) | $ | (22,896 | ) | $ | 56,927 | $ | (43,808 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
For the year ended December 31, 2016 (Successor) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Consolidating | ||||||||||||||||||||
Non- | Entries and | |||||||||||||||||||
Parent | Guarantors | Guarantors | Eliminations | Consolidated | ||||||||||||||||
Sales - affiliates | $ | — | $ | 122,164 | $ | 57,099 | $ | (179,263 | ) | $ | — | |||||||||
Sales - third party | — | 87,028 | 350,935 | — | 437,963 | |||||||||||||||
Net sales | — | 209,192 | 408,034 | (179,263 | ) | 437,963 | ||||||||||||||
Cost of sales | — | 190,558 | 436,721 | (179,263 | ) | 448,016 | ||||||||||||||
Additions to lower of cost or market inventory reserve | — | 6,822 | 12,152 | — | 18,974 | |||||||||||||||
Gross profit (loss) | — | 11,812 | (40,839 | ) | — | (29,027 | ) | |||||||||||||
Research and development | — | 2,399 | — | — | 2,399 | |||||||||||||||
Selling and administrative expenses | — | 23,831 | 33,894 | — | 57,725 | |||||||||||||||
Impairments | — | — | 2,843 | — | 2,843 | |||||||||||||||
Rationalizations | — | 110 | (51 | ) | — | 59 | ||||||||||||||
Operating loss | — | (14,528 | ) | (77,525 | ) | — | (92,053 | ) | ||||||||||||
Other expense (income), net | 6 | 1,492 | (3,686 | ) | — | (2,188 | ) | |||||||||||||
Interest expense - affiliate | 984 | — | — | (984 | ) | — | ||||||||||||||
Interest expense - third party | 25,430 | 1,136 | 348 | — | 26,914 | |||||||||||||||
Interest income - affiliate | — | (984 | ) | — | 984 | — | ||||||||||||||
Interest income - third party | — | — | (358 | ) | — | (358 | ) | |||||||||||||
Loss from continuing operations before provision for income taxes | (26,420 | ) | (16,172 | ) | (73,829 | ) | — | (116,421 | ) | |||||||||||
Provision for income taxes | — | 274 | (7,826 | ) | — | (7,552 | ) | |||||||||||||
Equity in loss from continuing operations of subsidiary | (82,449 | ) | (66,003 | ) | — | 148,452 | — | |||||||||||||
Net loss from continuing operations | (108,869 | ) | (82,449 | ) | (66,003 | ) | 148,452 | (108,869 | ) | |||||||||||
Loss from discontinued operations, net of tax | (1,918 | ) | (121,741 | ) | (3,315 | ) | — | (126,974 | ) | |||||||||||
Equity in loss from discontinued operations of subsidiary | (125,056 | ) | (3,315 | ) | — | 128,371 | — | |||||||||||||
Loss on discontinued operations | (126,974 | ) | (125,056 | ) | (3,315 | ) | 128,371 | (126,974 | ) | |||||||||||
Net loss | (235,843 | ) | (207,505 | ) | (69,318 | ) | 276,823 | (235,843 | ) | |||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
Net loss | $ | (235,843 | ) | $ | (207,505 | ) | $ | (69,318 | ) | $ | 276,823 | $ | (235,843 | ) | ||||||
Other comprehensive income (loss) | 2,699 | 2,699 | 2,699 | (5,398 | ) | 2,699 | ||||||||||||||
Comprehensive loss | $ | (233,144 | ) | $ | (204,806 | ) | $ | (66,619 | ) | $ | 271,425 | $ | (233,144 | ) | ||||||
As of December 31, 2015 | As of December 31, 2016 | ||||||
(Dollars in thousands) | |||||||
Credit Facility (Revolving Facility and Term Loan Facility) | $ | 98,000 | $ | 90,731 | |||
Senior Notes | 267,827 | 274,132 | |||||
Other Debt | 1,400 | 569 | |||||
Total Debt | 367,227 | 365,432 | |||||
Less: Short-term Debt | (4,772 | ) | (8,852 | ) | |||
Long-term Debt | $ | 362,455 | $ | 356,580 |
As of December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets: | |||||||
Fixed assets | $ | 10,128 | $ | 41,677 | |||
Postretirement and other employee benefits | 34,713 | 32,275 | |||||
Foreign tax credit and other carryforwards | 115,163 | 153,169 | |||||
Capitalized research and experimental costs | 21,592 | 18,146 | |||||
Environmental reserves | 4,273 | 4,237 | |||||
Inventory | 12,719 | 15,227 | |||||
Original issue discount | — | 6,461 | |||||
Long-term contract option amortization | 2,138 | 2,074 | |||||
Provision for rationalization charges | 5,967 | 7,498 | |||||
Other | 1,005 | 3,391 | |||||
Total gross deferred tax assets | 207,698 | 284,155 | |||||
Less: valuation allowance | (165,539 | ) | (244,841 | ) | |||
Total deferred tax assets | 42,159 | 39,314 | |||||
Deferred tax liabilities: | |||||||
Fixed assets | $ | 64,278 | $ | 47,346 | |||
Debt discount amortization / Deferred financing fees | 7,666 | 6,544 | |||||
Inventory | 4,985 | 3,482 | |||||
Goodwill and acquired intangibles | 2,686 | 2,295 | |||||
Other | 4,647 | 2,751 | |||||
Total deferred tax liabilities | 84,262 | 62,418 | |||||
Net deferred tax (liability) asset | $ | (42,103 | ) | $ | (23,104 | ) |
Amount of (Gain)/Loss Recognized (EffectivePortion) | ||||||||||||||||||
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 | 2016 | ||||||||||||||
Derivatives designated as cash flow hedges: | (Dollars in Thousands) | |||||||||||||||||
Foreign currency derivatives, excluding tax of $85, $106, $17 and $32, respectively | Revenue/Cost of goods sold Other expense / (income) | $ | (849 | ) | $ | (1,062 | ) | $ | (172 | ) | $ | (322 | ) | |||||
Commodity forward derivatives, excluding tax of $(120), $(424) and $0 respectively | Cost of goods sold | $ | 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 | 2016 | ||||||||||||||
Derivatives not designated as hedges: | (Dollars in thousands) | |||||||||||||||||
Foreign currency derivatives | Cost of goods sold / Other expense / (income) | $ | 1,020 | $ | 1,060 | $ | (560 | ) | $ | 549 |
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Net sales | $ | 260,160 | $ | 98,024 | $ | 55,608 | $ | 115,336 | |||||||
Cost of sales | 235,901 | 94,817 | 49,068 | 98,440 | |||||||||||
Gross profit | 24,259 | 3,207 | 6,540 | 16,896 | |||||||||||
Research and development | 5,107 | 2,179 | 1,265 | 3,145 | |||||||||||
Selling and administrative expenses | 29,550 | 16,764 | 8,627 | 19,220 | |||||||||||
Rationalizations | 3,679 | 4,492 | 791 | (405 | ) | ||||||||||
Impairment | 121,570 | — | — | 119,907 | |||||||||||
Operating loss | (135,647 | ) | (20,228 | ) | (4,143 | ) | (124,971 | ) | |||||||
Other expense (income) | (485 | ) | (90 | ) | (135 | ) | (66 | ) | |||||||
Interest expense | 1,320 | 907 | 918 | 3,258 | |||||||||||
Loss from discontinued operations before income taxes | (136,482 | ) | (21,045 | ) | (4,926 | ) | (128,163 | ) | |||||||
Benefit for income taxes on discontinued operations | (3,626 | ) | (2,366 | ) | — | (1,189 | ) | ||||||||
Loss from discontinued operations | $ | (132,856 | ) | $ | (18,679 | ) | $ | (4,926 | ) | $ | (126,974 | ) |
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through September 30, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(dollars in thousands) | |||||||||||||||
Depreciation and amortization | $ | 21,780 | $ | 7,988 | $ | 4,194 | $ | 5,277 | |||||||
Impairment | 121,570 | — | — | 119,907 | |||||||||||
Deferred income taxes | (3,626 | ) | (2,366 | ) | — | (1,189 | ) | ||||||||
Cash received from divestitures | — | — | — | 15,889 | |||||||||||
Capital expenditures | 24,018 | 10,104 | 4,447 | 4,713 | |||||||||||
Credit Facility reductions | — | — | — | (15,889 | ) |
As of December 31, 2015 | As of December 31, 2016 | ||||||
(dollars in thousands) | |||||||
Assets of discontinued operations: | |||||||
Accounts receivable | $ | 20,425 | $ | 17,094 | |||
Inventories | 77,332 | 71,816 | |||||
Prepaid expenses and other current assets | 524 | 320 | |||||
Net property plant and equipment | 86,369 | 79,048 | |||||
Other assets | 17,606 | 12,608 | |||||
Total assets of discontinued operations prior to impairment | 202,256 | 180,886 | |||||
Impairment of assets held for sale | — | (119,907 | ) | ||||
Total assets of discontinued operations | $ | 202,256 | $ | 60,979 | |||
Liabilities of discontinued operations: | |||||||
Accounts payable | $ | 9,331 | $ | 7,253 | |||
Accrued income and other taxes | 3,113 | 2,326 | |||||
Other accrued liabilities | 10,638 | 10,463 | |||||
Total current liabilities of discontinued operations | 23,082 | 20,042 | |||||
Other long-term obligations | 1,167 | 850 | |||||
Total liabilities of discontinued operations | $ | 24,249 | $ | 20,892 |
As of December 31, | For the Period July 1, 2015 Through August 14, 2015 | For the Period August 15, 2015 Through December 31, 2015 | ||||||||
2014 | 2015 | |||||||||
(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 | $ | 2 | $ | 75 | $ | (2 | ) | $ | (63 | ) | |||||
Effect on benefit obligations | $ | 67 | $ | 599 | $ | (63 | ) | $ | (507 | ) |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Tax at statutory U.S. federal rate | $ | (55,409 | ) | $ | (33,431 | ) | $ | (7,610 | ) | $ | (40,747 | ) | |||
U.S. valuation allowance, net | 26,175 | 21,532 | 7,355 | 35,091 | |||||||||||
State taxes, net of federal tax benefit | (4,387 | ) | (2,005 | ) | (697 | ) | (2,324 | ) | |||||||
U.S. tax return adjustments to estimated taxes | (368 | ) | — | — | — | ||||||||||
Resolution of uncertain tax positions | (513 | ) | 71 | 64 | (513 | ) | |||||||||
Adjustment for foreign income taxed at different rates | 10,408 | 11,136 | 7,120 | 12,738 | |||||||||||
U.S. tax credits | (1,000 | ) | — | — | — | ||||||||||
Non-U.S. tax exemptions, holidays and credits | — | (691 | ) | 228 | (175 | ) | |||||||||
Goodwill impairment | 17,161 | 8,026 | — | — | |||||||||||
Capital loss expiration | 2,422 | — | — | — | |||||||||||
Investment in subsidiary impairment deduction | — | — | — | (10,111 | ) | ||||||||||
Other | (279 | ) | 1,814 | 422 | (1,511 | ) | |||||||||
Total income tax (benefit) expense | $ | (5,790 | ) | $ | 6,452 | $ | 6,882 | $ | (7,552 | ) |
At December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 209,634 | $ | 191,502 | |||
Mexico | 158,950 | 151,288 | |||||
Brazil | 8,787 | 6,100 | |||||
France | 76,535 | 69,558 | |||||
Spain | 93,049 | 87,614 | |||||
South Africa | 2,879 | 2,547 | |||||
Italy | 1,032 | 10 | |||||
Switzerland | 266 | 192 | |||||
Other countries | 31 | 44 | |||||
Total | $ | 551,163 | $ | 508,855 |
(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, 2015 | (Dollars in Thousands) | ||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 76 | Other current liabilities | $ | 11 | |||||
Total fair value | $ | 76 | $ | 11 | |||||||
As of December 31, 2016 | |||||||||||
Derivatives not designated as hedges: | |||||||||||
Foreign currency derivatives | Prepaid and other current assets | $ | 10 | Other current liabilities | $ | 188 | |||||
Total fair value | $ | 10 | $ | 188 |
As of December 31, 2015 | As of December 31, 2016 | ||||||||||||||||||||||
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 | 22,500 | (889 | ) | 21,611 | 22,500 | (3,235 | ) | 19,265 | |||||||||||||||
Technology and know-how | 55,300 | (2,900 | ) | 52,400 | 55,300 | (10,397 | ) | 44,903 | |||||||||||||||
Customer related intangible | 64,500 | (1,688 | ) | 62,812 | 64,500 | (6,177 | ) | 58,323 | |||||||||||||||
Total finite-lived intangible assets | $ | 142,300 | $ | (5,477 | ) | $ | 136,823 | $ | 142,300 | $ | (19,809 | ) | $ | 122,491 |
Total | |||
Predecessor | (Dollars in Thousands) | ||
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 | ||
Adjustments (See Note 2) | 1,058 | ||
Goodwill transferred to discontinued operations | (2,000 | ) | |
Balance as of December 31, 2016 | $ | 171,117 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. | $ | (127,707 | ) | $ | (84,599 | ) | $ | (16,827 | ) | $ | (44,971 | ) | |||
Non-U.S. | (30,603 | ) | (10,919 | ) | (4,916 | ) | (71,450 | ) | |||||||
$ | (158,310 | ) | $ | (95,518 | ) | $ | (21,743 | ) | $ | (116,421 | ) |
Predecessor | Successor | ||||||||||||||||||||||
2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | |||||||||||||||||||||
U.S. | Foreign | U.S. | Foreign | U.S. | Foreign | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Service cost | $ | 750 | $ | 1,107 | $ | 151 | $ | 98 | $ | 386 | $ | 281 | |||||||||||
Interest cost | 5,983 | 2,669 | 854 | 554 | 2,200 | 94 | |||||||||||||||||
Expected return on assets | (5,215 | ) | (2,516 | ) | — | — | (1,885 | ) | (59 | ) | |||||||||||||
Amortization of prior service cost | — | 2 | — | (12 | ) | — | — | ||||||||||||||||
Curtailment gain | — | (28 | ) | — | — | — | (675 | ) | |||||||||||||||
Mark-to-market loss (gain) | 18,431 | (534 | ) | — | — | 716 | 1,843 | ||||||||||||||||
Pension costs | $ | 19,949 | $ | 700 | $ | 1,005 | $ | 640 | $ | 1,417 | $ | 1,484 |
(Dollars in Thousands) | |||
Balance as of December 31, 2014 | $ | 520 | |
Product warranty charges/adjustments | 346 | ||
Payments and settlements | (69 | ) | |
Balance as of August 14, 2015 | $ | 797 | |
Balance as of August 15, 2015 | $ | 797 | |
Product warranty charges/adjustments | (324 | ) | |
Payments and settlements | (85 | ) | |
Balance as of December 31, 2015 | $ | 388 | |
Product warranty charges/adjustments | 1,285 | ||
Payments and settlements | (704 | ) | |
Balance as of December 31, 2016 | $ | 969 |
For the Year Ended December 31, 2014 (Predecessor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
(Dollars in thousands) | |||||||||||
Recorded in Cost of Sales | |||||||||||
Accelerated depreciation | $ | 22,388 | $ | — | $ | 22,388 | |||||
Inventory loss | 941 | — | 941 | ||||||||
Fixed asset write-offs and other | 5,552 | — | 5,552 | ||||||||
Recorded in Research and Development | |||||||||||
Accelerated depreciation | — | 2,312 | 2,312 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Accelerated depreciation | — | 608 | 608 | ||||||||
Other | 89 | 515 | 604 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 5,040 | 2,425 | 7,465 | ||||||||
Contract terminations | 469 | 11 | 480 | ||||||||
Total 2014 rationalization and related charges | $ | 34,479 | $ | 5,871 | $ | 40,350 |
For the Period January 1 Through August 14, 2015 (Predecessor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
(Dollars in thousands) | |||||||||||
Recorded in Cost of Sales | |||||||||||
Accelerated depreciation | $ | 432 | $ | 940 | 1,372 | ||||||
Inventory loss | (33 | ) | — | (33 | ) | ||||||
Fixed asset write-offs and other | 1,715 | — | 1,715 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Other | 400 | 954 | 1,354 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 157 | (168 | ) | (11 | ) | ||||||
Contract terminations | 25 | — | 25 | ||||||||
Total | $ | 2,696 | $ | 1,726 | $ | 4,422 |
For the Period August 15 Through December 31, 2015 (Successor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
Recorded in Cost of Sales | |||||||||||
Inventory loss | $ | (649 | ) | $ | — | $ | (649 | ) | |||
Fixed asset write-offs and other | 329 | — | 329 | ||||||||
Recorded in Selling and General Administrative | |||||||||||
Other | 135 | 290 | 425 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | 154 | 71 | 225 | ||||||||
Contract terminations | 59 | — | 59 | ||||||||
Total | $ | 28 | $ | 361 | $ | 389 | |||||
For the Year Ended December 31, 2016 (Successor) | |||||||||||
Industrial Materials Segment | Corporate, R&D and Other | Total | |||||||||
Recorded in Cost of Sales | |||||||||||
Fixed asset write-offs and other | $ | 636 | $ | — | $ | 636 | |||||
Recorded in Selling and General Administrative | |||||||||||
Other | 1,258 | 412 | 1,670 | ||||||||
Recorded in Rationalizations | |||||||||||
Severance and related costs | (52 | ) | 111 | 59 | |||||||
Total | $ | 1,842 | $ | 523 | $ | 2,365 |
2014 | 2015 | 2016 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales:* | |||||||||||
U.S. | $ | 195,264 | $ | 107,517 | $ | 74,526 | |||||
Americas | 165,761 | 132,917 | 116,944 | ||||||||
Asia Pacific | 80,832 | 37,509 | 41,302 | ||||||||
Europe, Middle East, Africa | 383,288 | 255,097 | 205,191 | ||||||||
Total | $ | 825,145 | $ | 533,040 | $ | 437,963 |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net sales to external customers: | |||||||||||||||
Industrial Materials | $ | 825,145 | $ | 339,907 | $ | 193,133 | $ | 437,963 | |||||||
Segment operating income (loss): | |||||||||||||||
Industrial Materials | $ | (51,300 | ) | $ | (24,900 | ) | $ | (2,529 | ) | $ | (63,827 | ) | |||
Corporate, R&D and Other expenses | (68,674 | ) | (43,349 | ) | (10,034 | ) | (28,226 | ) | |||||||
Total segment operating income (loss) | $ | (119,974 | ) | $ | (68,249 | ) | $ | (12,563 | ) | $ | (92,053 | ) | |||
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: | |||||||||||||||
Other expense (income), net | $ | 2,920 | $ | 1,421 | $ | (813 | ) | $ | (2,188 | ) | |||||
Interest expense | 35,736 | 26,211 | 9,999 | 26,914 | |||||||||||
Interest income | (320 | ) | (363 | ) | (6 | ) | (358 | ) | |||||||
Loss before provision for income taxes | $ | (158,310 | ) | $ | (95,518 | ) | $ | (21,743 | ) | $ | (116,421 | ) |
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 | — | $ | — |
Predecessor | Successor | ||||||||||||||
For the Year Ended December 31, 2014 | For the Period January 1 Through August 14, 2015 | For the Period August 15 Through December 31, 2015 | For the Year Ended December 31, 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net sales to external customers: | |||||||||||||||
Industrial Materials | $ | 825,145 | $ | 339,907 | $ | 193,133 | $ | 437,963 | |||||||
Segment operating income (loss): | |||||||||||||||
Industrial Materials | $ | (51,300 | ) | $ | (24,900 | ) | $ | (2,529 | ) | $ | (63,827 | ) | |||
Corporate, R&D and Other expenses | (68,674 | ) | (43,349 | ) | (10,034 | ) | (28,226 | ) | |||||||
Total segment operating income (loss) | $ | (119,974 | ) | $ | (68,249 | ) | $ | (12,563 | ) | $ | (92,053 | ) | |||
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: | |||||||||||||||
Other expense (income), net | $ | 2,920 | $ | 1,421 | $ | (813 | ) | $ | (2,188 | ) | |||||
Interest expense | 35,736 | 26,211 | 9,999 | 26,914 | |||||||||||
Interest income | (320 | ) | (363 | ) | (6 | ) | (358 | ) | |||||||
Loss before provision for income taxes | $ | (158,310 | ) | $ | (95,518 | ) | $ | (21,743 | ) | $ | (116,421 | ) |
2014 | 2015 | 2016 | |||||||||
(Dollars in thousands) | |||||||||||
Net sales:* | |||||||||||
U.S. | $ | 195,264 | $ | 107,517 | $ | 74,526 | |||||
Americas | 165,761 | 132,917 | 116,944 | ||||||||
Asia Pacific | 80,832 | 37,509 | 41,302 | ||||||||
Europe, Middle East, Africa | 383,288 | 255,097 | 205,191 | ||||||||
Total | $ | 825,145 | $ | 533,040 | $ | 437,963 |
At December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Long-lived assets (a): | |||||||
U.S. and Canada | $ | 209,634 | $ | 191,502 | |||
Mexico | 158,950 | 151,288 | |||||
Brazil | 8,787 | 6,100 | |||||
France | 76,535 | 69,558 | |||||
Spain | 93,049 | 87,614 | |||||
South Africa | 2,879 | 2,547 | |||||
Italy | 1,032 | 10 | |||||
Switzerland | 266 | 192 | |||||
Other countries | 31 | 44 | |||||
Total | $ | 551,163 | $ | 508,855 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation. |
Predecessor | (Dollars in thousands) | ||
Balance as of January 1, 2014 | $ | 20,411 | |
(Credited) / charged to income | 74,157 | ||
Translation adjustment | (800 | ) | |
Changes attributable to movement in underlying assets | 1,953 | ||
Balance at December 31, 2014 | $ | 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 | |||
Balance as of August 15, 2015 | $ | 115,449 | |
(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 | |
(Credited) / charged to income | 78,469 | ||
Translation adjustment | 583 | ||
Changes attributable to movement in underlying assets | 250 | ||
Balance as of December 31, 2016 | $ | 244,841 |
At December 31, | |||||||
2015 | 2016 | ||||||
(Dollars in thousands) | |||||||
Inventories: | |||||||
Raw materials and supplies | $ | 66,201 | $ | 54,469 | |||
Work in process | 89,453 | 52,379 | |||||
Finished goods | 62,476 | 49,263 | |||||
218,130 | 156,111 | ||||||
Prepaid expenses and other current assets: | |||||||
Prepaid expenses | $ | 9,041 | $ | 6,096 | |||
Value added tax and other indirect taxes receivable | 10,069 | 12,984 | |||||
Other current assets | 2,040 | 2,585 | |||||
$ | 21,150 | $ | 21,665 | ||||
Property, plant and equipment: | |||||||
Land and improvements | $ | 44,052 | $ | 43,737 | |||
Buildings | 55,843 | 55,440 | |||||
Machinery and equipment and other | 431,226 | 460,892 | |||||
Construction in progress | 40,208 | 25,635 | |||||
$ | 571,329 | $ | 585,704 | ||||
Other accrued liabilities: | |||||||
Payrolls (including incentive programs) | $ | 4,028 | $ | 4,802 | |||
Employee compensation and benefits | 6,199 | 11,439 | |||||
Other | 10,760 | 14,278 | |||||
$ | 20,987 | $ | 30,519 | ||||
Other long term obligations: | |||||||
Postretirement benefits | $ | 20,102 | $ | 19,002 | |||
Pension and related benefits | 55,364 | 45,876 | |||||
Other | 18,852 | 17,270 | |||||
$ | 94,318 | $ | 82,148 |
2014 | For the Period January 1 through August 14, 2015 | For the Period August 15 through December 31, 2015 | 2016 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at beginning of year | $ | 6,262 | $ | 6,969 | $ | — | $ | 244 | |||||||
Additions | 3,520 | 85 | 244 | 129 | |||||||||||
Deductions | (2,813 | ) | (1,177 | ) | — | (47 | ) | ||||||||
Balance at end of year | $ | 6,969 | $ | 5,877 | $ | 244 | $ | 326 |