| Segments
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Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Stock-based compensation expense | $ | 1,507 | $ | 2,515 | $ | 3,323 | $ | 4,644 |
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(dollars in thousands) | June 30, 2016 | December 31, 2015 | |||||
Accounts receivable: | |||||||
Trade receivables | $ | 90,566 | $ | 91,324 | |||
Other receivables | 2,721 | 3,055 | |||||
Total accounts receivable, less allowances of $6,429 and $7,066 | $ | 93,287 | $ | 94,379 | |||
Inventories: | |||||||
Finished goods | $ | 171,408 | $ | 159,998 | |||
Work in process | 1,610 | 1,183 | |||||
Raw materials | 4,535 | 4,944 | |||||
Repair parts | 10,915 | 10,763 | |||||
Operating supplies | 1,099 | 1,139 | |||||
Total inventories, less loss provisions of $12,314 and $5,313 | $ | 189,567 | $ | 178,027 | |||
Accrued liabilities: | |||||||
Accrued incentives | $ | 31,325 | $ | 21,450 | |||
Other accrued liabilities | 21,178 | 23,729 | |||||
Total accrued liabilities | $ | 52,503 | $ | 45,179 |
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(dollars in thousands) | Interest Rate | Maturity Date | June 30, 2016 | December 31, 2015 | ||||||
Borrowings under ABL Facility | floating | April 9, 2019 | $ | — | $ | — | ||||
Term Loan B | floating | (1) | April 9, 2021 | 421,200 | 433,400 | |||||
AICEP Loan | 0.00% | January, 2017 to July 30, 2018 | 3,161 | 3,451 | ||||||
Total borrowings | 424,361 | 436,851 | ||||||||
Less — unamortized discount and finance fees | 5,141 | 5,832 | ||||||||
Total borrowings — net | 419,220 | 431,019 | ||||||||
Less — long term debt due within one year | 4,577 | 4,747 | ||||||||
Total long-term portion of borrowings — net | $ | 414,643 | $ | 426,272 |
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Three months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 863 | $ | 1,022 | $ | 318 | $ | 762 | $ | 1,181 | $ | 1,784 | |||||||||||
Interest cost | 3,705 | 3,649 | 670 | 1,107 | 4,375 | 4,756 | |||||||||||||||||
Expected return on plan assets | (5,760 | ) | (5,668 | ) | — | (638 | ) | (5,760 | ) | (6,306 | ) | ||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 66 | 105 | (53 | ) | (61 | ) | 13 | 44 | |||||||||||||||
Actuarial loss | 1,016 | 1,759 | 203 | 409 | 1,219 | 2,168 | |||||||||||||||||
Settlement charge | 42 | — | 170 | — | 212 | — | |||||||||||||||||
Pension expense | $ | (68 | ) | $ | 867 | $ | 1,308 | $ | 1,579 | $ | 1,240 | $ | 2,446 | ||||||||||
Six months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 1,859 | $ | 2,183 | $ | 635 | $ | 1,510 | $ | 2,494 | $ | 3,693 | |||||||||||
Interest cost | 7,482 | 7,358 | 1,342 | 2,210 | 8,824 | 9,568 | |||||||||||||||||
Expected return on plan assets | (11,515 | ) | (11,330 | ) | — | (1,236 | ) | (11,515 | ) | (12,566 | ) | ||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 132 | 209 | (107 | ) | (125 | ) | 25 | 84 | |||||||||||||||
Actuarial loss | 2,136 | 3,645 | 405 | 815 | 2,541 | 4,460 | |||||||||||||||||
Settlement charge | 42 | — | 170 | — | 212 | — | |||||||||||||||||
Pension expense | $ | 136 | $ | 2,065 | $ | 2,445 | $ | 3,174 | $ | 2,581 | $ | 5,239 | |||||||||||
Three months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 199 | $ | 145 | $ | 1 | $ | 1 | $ | 200 | $ | 146 | |||||||||||
Interest cost | 652 | 609 | 12 | 10 | 664 | 619 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Actuarial loss / (gain) | 20 | 100 | (11 | ) | (24 | ) | 9 | 76 | |||||||||||||||
Non-pension postretirement benefit expense | $ | 906 | $ | 889 | $ | 2 | $ | (13 | ) | $ | 908 | $ | 876 | ||||||||||
Six months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 398 | $ | 427 | $ | 1 | $ | 1 | $ | 399 | $ | 428 | |||||||||||
Interest cost | 1,304 | 1,269 | 24 | 29 | 1,328 | 1,298 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 70 | 70 | — | — | 70 | 70 | |||||||||||||||||
Actuarial loss / (gain) | 40 | 296 | (22 | ) | (24 | ) | 18 | 272 | |||||||||||||||
Non-pension postretirement benefit expense | $ | 1,812 | $ | 2,062 | $ | 3 | $ | 6 | $ | 1,815 | $ | 2,068 | |||||||||||
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Asset Derivatives: | ||||||||||||
(dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Prepaid and other current assets | $ | 45 | Prepaid and other current assets | $ | — | ||||||
Natural gas contracts | Other assets | 1 | Other assets | — | ||||||||
Total designated | 46 | — | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Natural gas contracts | Prepaid and other current assets | $ | 42 | Prepaid and other current assets | $ | — | ||||||
Currency contracts | Prepaid and other current assets | — | Prepaid and other current assets | 245 | ||||||||
Total undesignated | 42 | 245 | ||||||||||
Total | $ | 88 | $ | 245 | ||||||||
Liability Derivatives: | ||||||||||||
(dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Derivative liability - current | $ | — | Derivative liability - current | $ | 1,069 | ||||||
Natural gas contracts | Other long-term liabilities | — | Other long-term liabilities | 34 | ||||||||
Interest rate contract | Derivative liability - current | 2,386 | Derivative liability - current | 2,132 | ||||||||
Interest rate contract | Other long-term liabilities | 3,803 | Other long-term liabilities | 246 | ||||||||
Total designated | 6,189 | 3,481 | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Currency contracts | Derivative liability - current | 143 | Derivative liability - current | — | ||||||||
Natural gas contracts | Derivative liability - current | — | Derivative liability - current | 1,064 | ||||||||
Natural gas contracts | Other long-term liabilities | 2 | Other long-term liabilities | 35 | ||||||||
Total undesignated | 145 | 1,099 | ||||||||||
Total | $ | 6,334 | $ | 4,580 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||||||||||
Natural gas contracts | $ | 710 | $ | 53 | $ | 94 | $ | (776 | ) | |||||||
Total | $ | 710 | $ | 53 | $ | 94 | $ | (776 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Natural gas contracts | Cost of sales | $ | (515 | ) | $ | (484 | ) | $ | (1,055 | ) | $ | (1,020 | ) | ||||
Total impact on net income (loss) | $ | (515 | ) | $ | (484 | ) | $ | (1,055 | ) | $ | (1,020 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
De-designated contracts | $ | — | $ | 508 | $ | — | $ | 404 | ||||||||
Contracts where hedge accounting was not elected | 769 | 58 | 1,139 | (237 | ) | |||||||||||
Total | $ | 769 | $ | 566 | $ | 1,139 | $ | 167 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||||||||||
Interest rate swap | $ | (1,603 | ) | $ | (11 | ) | $ | (4,822 | ) | $ | (11 | ) | ||||
Total | $ | (1,603 | ) | $ | (11 | ) | $ | (4,822 | ) | $ | (11 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Interest rate swap | Interest expense | $ | (620 | ) | $ | — | $ | (1,011 | ) | $ | — | ||||||
Total impact on net income (loss) | $ | (620 | ) | $ | — | $ | (1,011 | ) | $ | — |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Currency contracts | Other income | $ | 31 | $ | (361 | ) | $ | (387 | ) | $ | (287 | ) | |||||
Total | $ | 31 | $ | (361 | ) | $ | (387 | ) | $ | (287 | ) |
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Three months ended June 30, 2016 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance March 31, 2016 | $ | (19,708 | ) | $ | (3,718 | ) | $ | (94,470 | ) | $ | (117,896 | ) | ||||
Other comprehensive income (loss) | (3,298 | ) | (893 | ) | 2,755 | (1,436 | ) | |||||||||
Currency impact | — | — | 409 | 409 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 1,228 | 1,228 | ||||||||||||
Amortization of prior service cost (1) | — | — | 48 | 48 | ||||||||||||
Cost of sales | — | 515 | — | 515 | ||||||||||||
Interest expense | — | 620 | — | 620 | ||||||||||||
Current-period other comprehensive income (loss) | (3,298 | ) | 242 | 4,440 | 1,384 | |||||||||||
Tax effect | 419 | (85 | ) | (1,402 | ) | (1,068 | ) | |||||||||
Balance on June 30, 2016 | $ | (22,587 | ) | $ | (3,561 | ) | $ | (91,432 | ) | $ | (117,580 | ) | ||||
Six months ended June 30, 2016 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on December 31, 2015 | $ | (22,913 | ) | $ | (1,860 | ) | $ | (95,459 | ) | $ | (120,232 | ) | ||||
Other comprehensive income (loss) | 52 | (4,728 | ) | 2,755 | (1,921 | ) | ||||||||||
Currency impact | — | — | 512 | 512 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 2,559 | 2,559 | ||||||||||||
Amortization of prior service cost (1) | — | — | 95 | 95 | ||||||||||||
Cost of sales | — | 1,055 | — | 1,055 | ||||||||||||
Interest Expense | — | 1,011 | — | 1,011 | ||||||||||||
Current-period other comprehensive income (loss) | 52 | (2,662 | ) | 5,921 | 3,311 | |||||||||||
Tax effect | 274 | 961 | (1,894 | ) | (659 | ) | ||||||||||
Balance on June 30, 2016 | $ | (22,587 | ) | $ | (3,561 | ) | $ | (91,432 | ) | $ | (117,580 | ) |
Three months ended June 30, 2015 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on March 31, 2015 | $ | (19,652 | ) | $ | (867 | ) | $ | (123,948 | ) | $ | (144,467 | ) | ||||
Other comprehensive income (loss) | 2,181 | 42 | 5,394 | 7,617 | ||||||||||||
Currency impact | — | — | 122 | 122 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 2,244 | 2,244 | ||||||||||||
Amortization of prior service cost (1) | — | — | 79 | 79 | ||||||||||||
Cost of sales | — | 552 | — | 552 | ||||||||||||
Current-period other comprehensive income (loss) | 2,181 | 594 | 7,839 | 10,614 | ||||||||||||
Tax effect | — | (22 | ) | (130 | ) | (152 | ) | |||||||||
Balance on June 30, 2015 | $ | (17,471 | ) | $ | (295 | ) | $ | (116,239 | ) | $ | (134,005 | ) | ||||
Six months ended June 30, 2015 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on December 31, 2014 | $ | (9,162 | ) | $ | (625 | ) | $ | (128,660 | ) | $ | (138,447 | ) | ||||
Other comprehensive income (loss) | (8,309 | ) | (787 | ) | 5,394 | (3,702 | ) | |||||||||
Currency impact | — | — | 2,413 | 2,413 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 4,732 | 4,732 | ||||||||||||
Amortization of prior service cost (1) | — | — | 154 | 154 | ||||||||||||
Cost of sales | — | 1,159 | — | 1,159 | ||||||||||||
Current-period other comprehensive income (loss) | (8,309 | ) | 372 | 12,693 | 4,756 | |||||||||||
Tax effect | — | (42 | ) | (272 | ) | (314 | ) | |||||||||
Balance on June 30, 2015 | $ | (17,471 | ) | $ | (295 | ) | $ | (116,239 | ) | $ | (134,005 | ) |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net Sales: | |||||||||||||||
U.S. & Canada | $ | 126,167 | $ | 127,435 | $ | 239,268 | $ | 237,354 | |||||||
Latin America | 40,619 | 44,614 | 74,839 | 84,466 | |||||||||||
EMEA | 31,268 | 32,126 | 57,896 | 60,635 | |||||||||||
Other | 9,848 | 9,876 | 18,706 | 18,961 | |||||||||||
Consolidated | $ | 207,902 | $ | 214,051 | $ | 390,709 | $ | 401,416 | |||||||
Segment EBIT: | |||||||||||||||
U.S. & Canada | $ | 24,927 | $ | 25,315 | $ | 38,239 | $ | 36,175 | |||||||
Latin America | 7,800 | 5,003 | 12,140 | 12,091 | |||||||||||
EMEA | (97 | ) | 1,786 | (1,042 | ) | 1,020 | |||||||||
Other | 859 | 1,076 | 1,277 | 2,946 | |||||||||||
Total Segment EBIT | $ | 33,489 | $ | 33,180 | $ | 50,614 | $ | 52,232 | |||||||
Reconciliation of Segment EBIT to Net Income: | |||||||||||||||
Segment EBIT | $ | 33,489 | $ | 33,180 | $ | 50,614 | $ | 52,232 | |||||||
Retained corporate costs | (7,050 | ) | (9,162 | ) | (13,774 | ) | (18,657 | ) | |||||||
Pension settlement | (212 | ) | — | (212 | ) | — | |||||||||
Environmental obligation (note 13) | — | (223 | ) | — | (223 | ) | |||||||||
Reorganization charges (1) | — | (3,015 | ) | — | (3,015 | ) | |||||||||
Derivatives (2) | 769 | 566 | 1,139 | 167 | |||||||||||
Product portfolio optimization (3) | (6,784 | ) | — | (6,784 | ) | — | |||||||||
Executive terminations | 328 | — | (4,619 | ) | (235 | ) | |||||||||
Interest expense | (5,154 | ) | (4,538 | ) | (10,398 | ) | (9,061 | ) | |||||||
Income taxes | (6,691 | ) | (2,414 | ) | (6,553 | ) | (3,702 | ) | |||||||
Net income | $ | 8,695 | $ | 14,394 | $ | 9,413 | $ | 17,506 | |||||||
Depreciation & Amortization: | |||||||||||||||
U.S. & Canada | $ | 3,379 | $ | 2,987 | $ | 6,835 | $ | 5,779 | |||||||
Latin America | 4,516 | 3,430 | 9,058 | 6,715 | |||||||||||
EMEA | 3,617 | 2,137 | 5,775 | 4,314 | |||||||||||
Other | 1,409 | 1,481 | 2,837 | 2,972 | |||||||||||
Corporate | 433 | 434 | 930 | 873 | |||||||||||
Consolidated | $ | 13,354 | $ | 10,469 | $ | 25,435 | $ | 20,653 | |||||||
Capital Expenditures: | |||||||||||||||
U.S. & Canada | $ | 2,154 | $ | 9,931 | $ | 5,993 | $ | 20,768 | |||||||
Latin America | 1,380 | 4,329 | 3,676 | 8,010 | |||||||||||
EMEA | 889 | 1,338 | 3,107 | 2,775 | |||||||||||
Other | 895 | 357 | 1,590 | 540 | |||||||||||
Corporate | 338 | 622 | 1,145 | 1,143 | |||||||||||
Consolidated | $ | 5,656 | $ | 16,577 | $ | 15,511 | $ | 33,236 |
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• | Level 1 — Quoted prices in active markets for identical assets or liabilities. |
• | Level 2 — Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. |
• | Level 3 — Unobservable inputs based on our own assumptions. |
Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||
Asset / (Liability) (dollars in thousands) | June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Commodity futures natural gas contracts | $ | — | $ | 86 | $ | — | $ | 86 | $ | — | $ | (2,202 | ) | $ | — | $ | (2,202 | ) | |||||||||||||
Currency contracts | — | (143 | ) | — | (143 | ) | — | 245 | — | 245 | |||||||||||||||||||||
Interest rate swap | — | (6,189 | ) | — | (6,189 | ) | — | (2,378 | ) | — | (2,378 | ) | |||||||||||||||||||
Net derivative asset (liability) | $ | — | $ | (6,246 | ) | $ | — | $ | (6,246 | ) | $ | — | $ | (4,335 | ) | $ | — | $ | (4,335 | ) |
Asset / (Liability) (dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Prepaid and other current assets | $ | 87 | $ | 245 | ||||
Other assets | 1 | — | ||||||
Derivative liability | (2,529 | ) | (4,265 | ) | ||||
Other long-term liabilities | (3,805 | ) | (315 | ) | ||||
Net derivative asset (liability) | $ | (6,246 | ) | $ | (4,335 | ) |
June 30, 2016 | December 31, 2015 | |||||||||||||||||
(dollars in thousands) | Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Term Loan B | Level 2 | $ | 421,200 | $ | 418,568 | $ | 433,400 | $ | 425,815 |
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Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Gain (loss) on currency transactions | $ | 6 | $ | 347 | $ | (724 | ) | $ | 1,462 | ||||||
Hedge ineffectiveness | 769 | 566 | 1,139 | 167 | |||||||||||
Other non-operating income (expense) | 27 | (67 | ) | 372 | 44 | ||||||||||
Other income | $ | 802 | $ | 846 | $ | 787 | $ | 1,673 |
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Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Stock-based compensation expense | $ | 1,507 | $ | 2,515 | $ | 3,323 | $ | 4,644 |
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(dollars in thousands) | June 30, 2016 | December 31, 2015 | |||||
Accounts receivable: | |||||||
Trade receivables | $ | 90,566 | $ | 91,324 | |||
Other receivables | 2,721 | 3,055 | |||||
Total accounts receivable, less allowances of $6,429 and $7,066 | $ | 93,287 | $ | 94,379 | |||
Inventories: | |||||||
Finished goods | $ | 171,408 | $ | 159,998 | |||
Work in process | 1,610 | 1,183 | |||||
Raw materials | 4,535 | 4,944 | |||||
Repair parts | 10,915 | 10,763 | |||||
Operating supplies | 1,099 | 1,139 | |||||
Total inventories, less loss provisions of $12,314 and $5,313 | $ | 189,567 | $ | 178,027 | |||
Accrued liabilities: | |||||||
Accrued incentives | $ | 31,325 | $ | 21,450 | |||
Other accrued liabilities | 21,178 | 23,729 | |||||
Total accrued liabilities | $ | 52,503 | $ | 45,179 |
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(dollars in thousands) | Interest Rate | Maturity Date | June 30, 2016 | December 31, 2015 | ||||||
Borrowings under ABL Facility | floating | April 9, 2019 | $ | — | $ | — | ||||
Term Loan B | floating | (1) | April 9, 2021 | 421,200 | 433,400 | |||||
AICEP Loan | 0.00% | January, 2017 to July 30, 2018 | 3,161 | 3,451 | ||||||
Total borrowings | 424,361 | 436,851 | ||||||||
Less — unamortized discount and finance fees | 5,141 | 5,832 | ||||||||
Total borrowings — net | 419,220 | 431,019 | ||||||||
Less — long term debt due within one year | 4,577 | 4,747 | ||||||||
Total long-term portion of borrowings — net | $ | 414,643 | $ | 426,272 |
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Three months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 863 | $ | 1,022 | $ | 318 | $ | 762 | $ | 1,181 | $ | 1,784 | |||||||||||
Interest cost | 3,705 | 3,649 | 670 | 1,107 | 4,375 | 4,756 | |||||||||||||||||
Expected return on plan assets | (5,760 | ) | (5,668 | ) | — | (638 | ) | (5,760 | ) | (6,306 | ) | ||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 66 | 105 | (53 | ) | (61 | ) | 13 | 44 | |||||||||||||||
Actuarial loss | 1,016 | 1,759 | 203 | 409 | 1,219 | 2,168 | |||||||||||||||||
Settlement charge | 42 | — | 170 | — | 212 | — | |||||||||||||||||
Pension expense | $ | (68 | ) | $ | 867 | $ | 1,308 | $ | 1,579 | $ | 1,240 | $ | 2,446 | ||||||||||
Six months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 1,859 | $ | 2,183 | $ | 635 | $ | 1,510 | $ | 2,494 | $ | 3,693 | |||||||||||
Interest cost | 7,482 | 7,358 | 1,342 | 2,210 | 8,824 | 9,568 | |||||||||||||||||
Expected return on plan assets | (11,515 | ) | (11,330 | ) | — | (1,236 | ) | (11,515 | ) | (12,566 | ) | ||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 132 | 209 | (107 | ) | (125 | ) | 25 | 84 | |||||||||||||||
Actuarial loss | 2,136 | 3,645 | 405 | 815 | 2,541 | 4,460 | |||||||||||||||||
Settlement charge | 42 | — | 170 | — | 212 | — | |||||||||||||||||
Pension expense | $ | 136 | $ | 2,065 | $ | 2,445 | $ | 3,174 | $ | 2,581 | $ | 5,239 | |||||||||||
Three months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 199 | $ | 145 | $ | 1 | $ | 1 | $ | 200 | $ | 146 | |||||||||||
Interest cost | 652 | 609 | 12 | 10 | 664 | 619 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 35 | 35 | — | — | 35 | 35 | |||||||||||||||||
Actuarial loss / (gain) | 20 | 100 | (11 | ) | (24 | ) | 9 | 76 | |||||||||||||||
Non-pension postretirement benefit expense | $ | 906 | $ | 889 | $ | 2 | $ | (13 | ) | $ | 908 | $ | 876 | ||||||||||
Six months ended June 30, | U.S. Plans | Non-U.S. Plans | Total | ||||||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Service cost | $ | 398 | $ | 427 | $ | 1 | $ | 1 | $ | 399 | $ | 428 | |||||||||||
Interest cost | 1,304 | 1,269 | 24 | 29 | 1,328 | 1,298 | |||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||||||
Prior service cost | 70 | 70 | — | — | 70 | 70 | |||||||||||||||||
Actuarial loss / (gain) | 40 | 296 | (22 | ) | (24 | ) | 18 | 272 | |||||||||||||||
Non-pension postretirement benefit expense | $ | 1,812 | $ | 2,062 | $ | 3 | $ | 6 | $ | 1,815 | $ | 2,068 | |||||||||||
|
Asset Derivatives: | ||||||||||||
(dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Prepaid and other current assets | $ | 45 | Prepaid and other current assets | $ | — | ||||||
Natural gas contracts | Other assets | 1 | Other assets | — | ||||||||
Total designated | 46 | — | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Natural gas contracts | Prepaid and other current assets | $ | 42 | Prepaid and other current assets | $ | — | ||||||
Currency contracts | Prepaid and other current assets | — | Prepaid and other current assets | 245 | ||||||||
Total undesignated | 42 | 245 | ||||||||||
Total | $ | 88 | $ | 245 | ||||||||
Liability Derivatives: | ||||||||||||
(dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||||||
Derivatives designated as hedging instruments under FASB ASC 815: | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Natural gas contracts | Derivative liability - current | $ | — | Derivative liability - current | $ | 1,069 | ||||||
Natural gas contracts | Other long-term liabilities | — | Other long-term liabilities | 34 | ||||||||
Interest rate contract | Derivative liability - current | 2,386 | Derivative liability - current | 2,132 | ||||||||
Interest rate contract | Other long-term liabilities | 3,803 | Other long-term liabilities | 246 | ||||||||
Total designated | 6,189 | 3,481 | ||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815: | ||||||||||||
Currency contracts | Derivative liability - current | 143 | Derivative liability - current | — | ||||||||
Natural gas contracts | Derivative liability - current | — | Derivative liability - current | 1,064 | ||||||||
Natural gas contracts | Other long-term liabilities | 2 | Other long-term liabilities | 35 | ||||||||
Total undesignated | 145 | 1,099 | ||||||||||
Total | $ | 6,334 | $ | 4,580 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||||||||||
Interest rate swap | $ | (1,603 | ) | $ | (11 | ) | $ | (4,822 | ) | $ | (11 | ) | ||||
Total | $ | (1,603 | ) | $ | (11 | ) | $ | (4,822 | ) | $ | (11 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Derivatives in Cash Flow Hedging relationships: | ||||||||||||||||
Natural gas contracts | $ | 710 | $ | 53 | $ | 94 | $ | (776 | ) | |||||||
Total | $ | 710 | $ | 53 | $ | 94 | $ | (776 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Natural gas contracts | Cost of sales | $ | (515 | ) | $ | (484 | ) | $ | (1,055 | ) | $ | (1,020 | ) | ||||
Total impact on net income (loss) | $ | (515 | ) | $ | (484 | ) | $ | (1,055 | ) | $ | (1,020 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Interest rate swap | Interest expense | $ | (620 | ) | $ | — | $ | (1,011 | ) | $ | — | ||||||
Total impact on net income (loss) | $ | (620 | ) | $ | — | $ | (1,011 | ) | $ | — |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Derivative: | Location: | ||||||||||||||||
Currency contracts | Other income | $ | 31 | $ | (361 | ) | $ | (387 | ) | $ | (287 | ) | |||||
Total | $ | 31 | $ | (361 | ) | $ | (387 | ) | $ | (287 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
De-designated contracts | $ | — | $ | 508 | $ | — | $ | 404 | ||||||||
Contracts where hedge accounting was not elected | 769 | 58 | 1,139 | (237 | ) | |||||||||||
Total | $ | 769 | $ | 566 | $ | 1,139 | $ | 167 |
|
Three months ended June 30, 2016 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance March 31, 2016 | $ | (19,708 | ) | $ | (3,718 | ) | $ | (94,470 | ) | $ | (117,896 | ) | ||||
Other comprehensive income (loss) | (3,298 | ) | (893 | ) | 2,755 | (1,436 | ) | |||||||||
Currency impact | — | — | 409 | 409 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 1,228 | 1,228 | ||||||||||||
Amortization of prior service cost (1) | — | — | 48 | 48 | ||||||||||||
Cost of sales | — | 515 | — | 515 | ||||||||||||
Interest expense | — | 620 | — | 620 | ||||||||||||
Current-period other comprehensive income (loss) | (3,298 | ) | 242 | 4,440 | 1,384 | |||||||||||
Tax effect | 419 | (85 | ) | (1,402 | ) | (1,068 | ) | |||||||||
Balance on June 30, 2016 | $ | (22,587 | ) | $ | (3,561 | ) | $ | (91,432 | ) | $ | (117,580 | ) | ||||
Six months ended June 30, 2016 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on December 31, 2015 | $ | (22,913 | ) | $ | (1,860 | ) | $ | (95,459 | ) | $ | (120,232 | ) | ||||
Other comprehensive income (loss) | 52 | (4,728 | ) | 2,755 | (1,921 | ) | ||||||||||
Currency impact | — | — | 512 | 512 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 2,559 | 2,559 | ||||||||||||
Amortization of prior service cost (1) | — | — | 95 | 95 | ||||||||||||
Cost of sales | — | 1,055 | — | 1,055 | ||||||||||||
Interest Expense | — | 1,011 | — | 1,011 | ||||||||||||
Current-period other comprehensive income (loss) | 52 | (2,662 | ) | 5,921 | 3,311 | |||||||||||
Tax effect | 274 | 961 | (1,894 | ) | (659 | ) | ||||||||||
Balance on June 30, 2016 | $ | (22,587 | ) | $ | (3,561 | ) | $ | (91,432 | ) | $ | (117,580 | ) |
Three months ended June 30, 2015 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on March 31, 2015 | $ | (19,652 | ) | $ | (867 | ) | $ | (123,948 | ) | $ | (144,467 | ) | ||||
Other comprehensive income (loss) | 2,181 | 42 | 5,394 | 7,617 | ||||||||||||
Currency impact | — | — | 122 | 122 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 2,244 | 2,244 | ||||||||||||
Amortization of prior service cost (1) | — | — | 79 | 79 | ||||||||||||
Cost of sales | — | 552 | — | 552 | ||||||||||||
Current-period other comprehensive income (loss) | 2,181 | 594 | 7,839 | 10,614 | ||||||||||||
Tax effect | — | (22 | ) | (130 | ) | (152 | ) | |||||||||
Balance on June 30, 2015 | $ | (17,471 | ) | $ | (295 | ) | $ | (116,239 | ) | $ | (134,005 | ) | ||||
Six months ended June 30, 2015 (dollars in thousands) | Foreign Currency Translation | Derivative Instruments | Pension and Other Postretirement Benefits | Accumulated Other Comprehensive Loss | ||||||||||||
Balance on December 31, 2014 | $ | (9,162 | ) | $ | (625 | ) | $ | (128,660 | ) | $ | (138,447 | ) | ||||
Other comprehensive income (loss) | (8,309 | ) | (787 | ) | 5,394 | (3,702 | ) | |||||||||
Currency impact | — | — | 2,413 | 2,413 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss): | ||||||||||||||||
Amortization of actuarial loss (1) | — | — | 4,732 | 4,732 | ||||||||||||
Amortization of prior service cost (1) | — | — | 154 | 154 | ||||||||||||
Cost of sales | — | 1,159 | — | 1,159 | ||||||||||||
Current-period other comprehensive income (loss) | (8,309 | ) | 372 | 12,693 | 4,756 | |||||||||||
Tax effect | — | (42 | ) | (272 | ) | (314 | ) | |||||||||
Balance on June 30, 2015 | $ | (17,471 | ) | $ | (295 | ) | $ | (116,239 | ) | $ | (134,005 | ) |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net Sales: | |||||||||||||||
U.S. & Canada | $ | 126,167 | $ | 127,435 | $ | 239,268 | $ | 237,354 | |||||||
Latin America | 40,619 | 44,614 | 74,839 | 84,466 | |||||||||||
EMEA | 31,268 | 32,126 | 57,896 | 60,635 | |||||||||||
Other | 9,848 | 9,876 | 18,706 | 18,961 | |||||||||||
Consolidated | $ | 207,902 | $ | 214,051 | $ | 390,709 | $ | 401,416 | |||||||
Segment EBIT: | |||||||||||||||
U.S. & Canada | $ | 24,927 | $ | 25,315 | $ | 38,239 | $ | 36,175 | |||||||
Latin America | 7,800 | 5,003 | 12,140 | 12,091 | |||||||||||
EMEA | (97 | ) | 1,786 | (1,042 | ) | 1,020 | |||||||||
Other | 859 | 1,076 | 1,277 | 2,946 | |||||||||||
Total Segment EBIT | $ | 33,489 | $ | 33,180 | $ | 50,614 | $ | 52,232 | |||||||
Reconciliation of Segment EBIT to Net Income: | |||||||||||||||
Segment EBIT | $ | 33,489 | $ | 33,180 | $ | 50,614 | $ | 52,232 | |||||||
Retained corporate costs | (7,050 | ) | (9,162 | ) | (13,774 | ) | (18,657 | ) | |||||||
Pension settlement | (212 | ) | — | (212 | ) | — | |||||||||
Environmental obligation (note 13) | — | (223 | ) | — | (223 | ) | |||||||||
Reorganization charges (1) | — | (3,015 | ) | — | (3,015 | ) | |||||||||
Derivatives (2) | 769 | 566 | 1,139 | 167 | |||||||||||
Product portfolio optimization (3) | (6,784 | ) | — | (6,784 | ) | — | |||||||||
Executive terminations | 328 | — | (4,619 | ) | (235 | ) | |||||||||
Interest expense | (5,154 | ) | (4,538 | ) | (10,398 | ) | (9,061 | ) | |||||||
Income taxes | (6,691 | ) | (2,414 | ) | (6,553 | ) | (3,702 | ) | |||||||
Net income | $ | 8,695 | $ | 14,394 | $ | 9,413 | $ | 17,506 | |||||||
Depreciation & Amortization: | |||||||||||||||
U.S. & Canada | $ | 3,379 | $ | 2,987 | $ | 6,835 | $ | 5,779 | |||||||
Latin America | 4,516 | 3,430 | 9,058 | 6,715 | |||||||||||
EMEA | 3,617 | 2,137 | 5,775 | 4,314 | |||||||||||
Other | 1,409 | 1,481 | 2,837 | 2,972 | |||||||||||
Corporate | 433 | 434 | 930 | 873 | |||||||||||
Consolidated | $ | 13,354 | $ | 10,469 | $ | 25,435 | $ | 20,653 | |||||||
Capital Expenditures: | |||||||||||||||
U.S. & Canada | $ | 2,154 | $ | 9,931 | $ | 5,993 | $ | 20,768 | |||||||
Latin America | 1,380 | 4,329 | 3,676 | 8,010 | |||||||||||
EMEA | 889 | 1,338 | 3,107 | 2,775 | |||||||||||
Other | 895 | 357 | 1,590 | 540 | |||||||||||
Corporate | 338 | 622 | 1,145 | 1,143 | |||||||||||
Consolidated | $ | 5,656 | $ | 16,577 | $ | 15,511 | $ | 33,236 |
|
Fair Value at | Fair Value at | ||||||||||||||||||||||||||||||
Asset / (Liability) (dollars in thousands) | June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Commodity futures natural gas contracts | $ | — | $ | 86 | $ | — | $ | 86 | $ | — | $ | (2,202 | ) | $ | — | $ | (2,202 | ) | |||||||||||||
Currency contracts | — | (143 | ) | — | (143 | ) | — | 245 | — | 245 | |||||||||||||||||||||
Interest rate swap | — | (6,189 | ) | — | (6,189 | ) | — | (2,378 | ) | — | (2,378 | ) | |||||||||||||||||||
Net derivative asset (liability) | $ | — | $ | (6,246 | ) | $ | — | $ | (6,246 | ) | $ | — | $ | (4,335 | ) | $ | — | $ | (4,335 | ) |
Asset / (Liability) (dollars in thousands) | June 30, 2016 | December 31, 2015 | ||||||
Prepaid and other current assets | $ | 87 | $ | 245 | ||||
Other assets | 1 | — | ||||||
Derivative liability | (2,529 | ) | (4,265 | ) | ||||
Other long-term liabilities | (3,805 | ) | (315 | ) | ||||
Net derivative asset (liability) | $ | (6,246 | ) | $ | (4,335 | ) |
June 30, 2016 | December 31, 2015 | |||||||||||||||||
(dollars in thousands) | Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Term Loan B | Level 2 | $ | 421,200 | $ | 418,568 | $ | 433,400 | $ | 425,815 |
|
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(dollars in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Gain (loss) on currency transactions | $ | 6 | $ | 347 | $ | (724 | ) | $ | 1,462 | ||||||
Hedge ineffectiveness | 769 | 566 | 1,139 | 167 | |||||||||||
Other non-operating income (expense) | 27 | (67 | ) | 372 | 44 | ||||||||||
Other income | $ | 802 | $ | 846 | $ | 787 | $ | 1,673 |
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