(State or other jurisdiction | (I.R.S. Employer Identification No.) | ||||||||||
of incorporation or organization) | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Specialty Engineered Materials | Color, Additives and Inks | |||||||||||||
1. Birmingham, Alabama | 1. Glendale, Arizona | 30. Guangzhou, China | 60. Konstantynow, Poland | |||||||||||
2. Mesa, Arizona | 2. Phoenix, Arizona | 31. Pudong, China | 61. Kutno, Poland | |||||||||||
3. Englewood, Colorado | 3. Bethel, Connecticut | 32. & 33. Shanghai, China (c) | 62. Jeddah, Saudi Arabia | |||||||||||
4. Montrose, Colorado | 4. Dalton, Georgia | 34. Suzhou, China | 63. Riyadh, Saudi Arabia | |||||||||||
5. North Haven, Connecticut | 5. Kennesaw, Georgia | 35. Tianjin, China | 64. Yanbu, Saudi Arabia | |||||||||||
6. McHenry, Illinois | 6. West Chicago, Illinois | 36. Cota, Colombia | 65. Jurong, Singapore | |||||||||||
7. Winona, Minnesota | 7. La Porte, Indiana | 37. Aland, Finland | 66. Randburg, South Africa | |||||||||||
8. Greenville, North Carolina | 8. Lewiston, Maine | 38. Cergy, France | 67. Alicante, Spain | |||||||||||
9. Hickory, North Carolina | 9. Holden, Massachusetts | 39. Tossiat, France | 68. Barcelona, Spain | |||||||||||
10. Avon Lake, Ohio | 10. Albion, Michigan | 40. Ahrensburg, Germany | 69. Pamplona, Spain | |||||||||||
11. Hatfield, Pennsylvania | 11. Minneapolis, Minnesota | 41. Lahnstein, Germany | 70. Sant Andreu, Spain | |||||||||||
12. Changzhou, China | 12. St. Louis, Missouri | 42. Guatemala City, Guatemala | 71. Malmoe, Sweden | |||||||||||
13. Laiwu, China | 13. Mooresville, North Carolina | 43. Gyor, Hungary | 72. Taoyuan, Taiwan | |||||||||||
14. Shenzhen, China | 14. Berea, Ohio | 44. Kalol, India | 73. Bangkok, Thailand | |||||||||||
15. Suzhou, China | 15. Massillon, Ohio | 45. Pune, India (d) | 74. Phan Thong, Thailand | |||||||||||
16. Gaggenau, Germany | 16. North Baltimore, Ohio | 46. Rania, India | 75. Gazientep, Turkey | |||||||||||
17. Melle, Germany | 17. Norwalk, Ohio | 47. Vashere, India | 76. Gebze, Turkey | |||||||||||
18. Drachten, Netherlands | 18. Lehigh Valley, Pennsylvania | 48. Tangerang, Indonesia | 77. Barnsley, United Kingdom | |||||||||||
19. Geleen, Netherlands | 19. Mountain Top, Pennsylvania | 49. Naas, Ireland | 78. Knowsley, United Kingdom | |||||||||||
20. Heerlen, Netherlands | 20. Vonore, Tennessee | 50. Lomagna, Italy | 79. Thuan An, Vietnam | |||||||||||
21. Barbastro, Spain | 21. Winchester, Virginia | 51. Merate, Italy | Suwanee, Georgia (b) | |||||||||||
22. Istanbul, Turkey | 22. Lomas de Zamora, Argentina | 52. Pogliano, Italy | ||||||||||||
23. Leek, United Kingdom | 23. Assesse, Belgium | 53. Butterworth, Malaysia | ||||||||||||
Maryland Heights, Missouri (b) | 24. Louvain-La-Nueve, Belgium | 54. Santa Clara, Mexico | ||||||||||||
Shanghai, China (b) | 25. Itupeva, Brazil | 55. Toluca, Mexico | ||||||||||||
Stanley, North Carolina (b) | 26. Suzano, Brazil | 56. Auckland, New Zealand | ||||||||||||
Singapore, Singapore (b) | 27. Toronto, Canada | 57. Karachi, Pakistan | ||||||||||||
Pune, India (a), (d) | 28. Maipu, Chile | 58. Lahore, Pakistan | ||||||||||||
Pamplona, Spain (a) | 29. Chuzhou, China | 59. Lima, Peru |
Name | Age | Position | ||||||||||||
Ashish K. Khandpur | 56 | President and Chief Executive Officer | ||||||||||||
Jamie A. Beggs | 47 | Senior Vice President and Chief Financial Officer | ||||||||||||
Kristen A. Gajewski | 42 | Senior Vice President, Chief Human Resources Officer | ||||||||||||
Michael A. Garratt | 60 | Senior Vice President, President Color, Additives and Inks — EMEA | ||||||||||||
M. John Midea, Jr. | 59 | Senior Vice President, Global Operations and Process Improvement | ||||||||||||
Woon Keat Moh | 50 | Senior Vice President, President of Color, Additives and Inks — Americas and Asia | ||||||||||||
Chris L. Pederson | 57 | Senior Vice President, President of Specialty Engineered Materials | ||||||||||||
Vinod Purayath | 45 | Senior Vice President and Chief Technology Officer | ||||||||||||
Joel R. Rathbun | 51 | Senior Vice President, Mergers and Acquisitions |
Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number of Shares that May Yet be Purchased Under the Program(1) | |||||||||||||||||||
October 1 to October 31 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
November 1 to November 30 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
December 1 to December 31 | — | $ | — | — | 4,957,472 | ||||||||||||||||||
Total | — | $ | — | — |
Results of Operations | Variances — Favorable (Unfavorable) | |||||||||||||||||||||||||||||||
2023 versus 2022 | ||||||||||||||||||||||||||||||||
(Dollars in millions, except per share data) | 2023 | 2022 | 2021 | Change | % Change | |||||||||||||||||||||||||||
Sales | $ | 3,142.8 | $ | 3,396.9 | $ | 3,315.5 | $ | (254.1) | (7.5) | % | ||||||||||||||||||||||
Cost of sales | 2,250.3 | 2,514.2 | 2,371.7 | 263.9 | 10.5 | % | ||||||||||||||||||||||||||
Gross margin | 892.5 | 882.7 | 943.8 | 9.8 | 1.1 | % | ||||||||||||||||||||||||||
Selling and administrative expense | 695.7 | 639.4 | 664.1 | (56.3) | (8.8) | % | ||||||||||||||||||||||||||
Operating income | 196.8 | 243.3 | 279.7 | (46.5) | (19.1) | % | ||||||||||||||||||||||||||
Interest expense, net | (115.3) | (119.8) | (75.2) | 4.5 | 3.8 | % | ||||||||||||||||||||||||||
Other income (expense), net | 5.8 | (59.7) | (1.0) | 65.5 | nm | |||||||||||||||||||||||||||
Income from continuing operations before income taxes | 87.3 | 63.8 | 203.5 | 23.5 | 36.8 | % | ||||||||||||||||||||||||||
Income tax (expense) benefit | (11.0) | 19.3 | (51.9) | (30.3) | nm | |||||||||||||||||||||||||||
Net income from continuing operations | $ | 76.3 | $ | 83.1 | $ | 151.6 | $ | (6.8) | (8.2) | % | ||||||||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | (0.1) | 620.3 | 79.0 | (620.4) | nm | |||||||||||||||||||||||||||
Net income | 76.2 | 703.4 | 230.6 | (627.2) | (89.2) | % | ||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (0.5) | (0.3) | 0.2 | (0.2) | nm | |||||||||||||||||||||||||||
Net income attributable to Avient common shareholders | $ | 75.7 | $ | 703.1 | $ | 230.8 | $ | (627.4) | (89.2) | % | ||||||||||||||||||||||
Earnings per share attributable to Avient common shareholders - basic: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.83 | $ | 0.91 | $ | 1.66 | ||||||||||||||||||||||||||
Discontinued operations | — | 6.80 | 0.87 | |||||||||||||||||||||||||||||
Total | $ | 0.83 | $ | 7.71 | $ | 2.53 | ||||||||||||||||||||||||||
Earnings per share attributable to Avient common shareholders - diluted: | ||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.83 | $ | 0.90 | $ | 1.65 | ||||||||||||||||||||||||||
Discontinued operations | — | 6.73 | 0.86 | |||||||||||||||||||||||||||||
Total | $ | 0.83 | $ | 7.63 | $ | 2.51 | ||||||||||||||||||||||||||
Gross margin as a percentage of sales | 28.4 | % | 26.0 | % | 28.5 | % |
Twelve Months Ended December 31, | ||||||||||||||
(In millions) | 2023 | 2022 | ||||||||||||
U.S. federal income tax rate | 21.0 | % | 21.0 | % | ||||||||||
Net tax on GILTI and FDII | 1.9 | 2.8 | ||||||||||||
International tax on certain current and prior year earnings | 3.9 | 0.2 | ||||||||||||
Non-deductible acquisition related costs | — | 0.9 | ||||||||||||
Non-deductible interest | 5.3 | 2.9 | ||||||||||||
Research and development credit | (3.7) | (5.0) | ||||||||||||
Capital losses | (5.4) | (88.1) | ||||||||||||
State and local tax, net | (2.3) | (4.0) | ||||||||||||
International tax rate differential | 0.2 | (5.5) | ||||||||||||
International permanent items | (7.5) | 12.1 | ||||||||||||
Net impact of uncertain tax positions | (5.3) | 12.9 | ||||||||||||
Changes in valuation allowances | 3.6 | 15.4 | ||||||||||||
Other | 0.9 | 4.2 | ||||||||||||
Effective income tax rate | 12.6 | % | (30.2) | % |
2023 versus 2022 | ||||||||||||||||||||||||||
(Dollars in millions) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Sales: | ||||||||||||||||||||||||||
Color, Additives and Inks | $ | 2,007.4 | $ | 2,355.0 | $ | (347.6) | (14.8) | % | ||||||||||||||||||
Specialty Engineered Materials | 1,138.2 | 1,044.4 | 93.8 | 9.0 | % | |||||||||||||||||||||
Corporate | (2.8) | (2.5) | (0.3) | nm | ||||||||||||||||||||||
Sales | $ | 3,142.8 | $ | 3,396.9 | $ | (254.1) | (7.5) | % | ||||||||||||||||||
Operating income: | ||||||||||||||||||||||||||
Color, Additives and Inks | $ | 259.9 | $ | 301.0 | $ | (41.1) | (13.7) | % | ||||||||||||||||||
Specialty Engineered Materials | 142.5 | 140.1 | 2.4 | 1.7 | % | |||||||||||||||||||||
Corporate | (205.6) | (197.8) | (7.8) | (3.9) | % | |||||||||||||||||||||
Operating income | $ | 196.8 | $ | 243.3 | $ | (46.5) | (19.1) | % | ||||||||||||||||||
(In millions) | |||||
Cash and cash equivalents | $ | 545.8 | |||
Revolving credit availability | 199.7 | ||||
Liquidity | $ | 745.5 |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Cash provided by (used by): | ||||||||||||||||||||
Operating Activities | $ | 201.6 | $ | 398.4 | $ | 233.8 | ||||||||||||||
Investing Activities | (94.2) | (504.0) | (150.2) | |||||||||||||||||
Financing Activities | (201.7) | 166.4 | (114.6) | |||||||||||||||||
Effect of exchange rate on cash | (1.0) | (20.9) | (17.3) | |||||||||||||||||
Net (decrease) increase in cash and cash equivalents | $ | (95.3) | $ | 39.9 | $ | (48.3) |
(In millions) | 2023 | 2022 | |||||||||
Senior secured revolving credit facility due 2026 | $ | — | $ | — | |||||||
Senior secured term loan due 2026 | — | 423.6 | |||||||||
Senior secured term loan due 2029 | 709.0 | 385.5 | |||||||||
5.75% senior notes due 2025 | 647.2 | 645.2 | |||||||||
7.125% senior notes due 2030 | 716.2 | 714.9 | |||||||||
Other Debt | 7.6 | 9.7 | |||||||||
Total Debt | $ | 2,080.0 | $ | 2,178.9 | |||||||
Less short-term debt | 9.5 | 2.2 | |||||||||
Total long-term debt, net of current portion | $ | 2,070.5 | $ | 2,176.7 | |||||||
Payment Due by Period | ||||||||||||||||||||||||||||||||
(In millions) | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||
Total debt (1) | $ | 2,110.5 | $ | 9.5 | $ | 667.4 | $ | 15.4 | $ | 1,418.2 | ||||||||||||||||||||||
Operating leases | 69.5 | 20.3 | 23.9 | 13.0 | 12.3 | |||||||||||||||||||||||||||
Interest on debt obligations (2) | 680.1 | 144.5 | 232.9 | 214.1 | 88.6 | |||||||||||||||||||||||||||
Pension and post-retirement obligations (3) | 76.9 | 8.0 | 15.7 | 15.6 | 37.6 | |||||||||||||||||||||||||||
Purchase obligations (4) | 124.5 | 65.1 | 33.0 | 19.5 | 6.9 | |||||||||||||||||||||||||||
Environmental obligations (5) | 157.2 | 32.1 | 89.8 | 6.2 | 29.0 | |||||||||||||||||||||||||||
Total | $ | 3,061.5 | $ | 247.4 | $ | 972.9 | $ | 277.6 | $ | 1,563.6 |
Page | |||||
Management’s Report | |||||
Reports of Independent Registered Public Accounting Firm (PCAOB ID: | |||||
Consolidated Financial Statements: | |||||
Consolidated Statements of Income | |||||
Consolidated Statements of Comprehensive Income | |||||
Consolidated Balance Sheets | |||||
Consolidated Statements of Cash Flows | |||||
Consolidated Statements of Shareholders’ Equity | |||||
Notes to Consolidated Financial Statements |
/s/ ASHISH K. KHANDPUR | /s/ JAMIE A. BEGGS | |||||||
Ashish K. Khandpur | Jamie A. Beggs | |||||||
President and Chief Executive Officer | Senior Vice President and Chief Financial Officer | |||||||
Environmental Accrued Liabilities - Calvert City | ||||||||
Description of the Matter | As described in Note 12 to the consolidated financial statements, the environmental accrued liability as of December 31, 2023 is approximately $157.2 million and is comprised primarily of the cost estimate for the Calvert City location of $148.9 million. The Company records an accrual for probable future environmental remediation projects on an undiscounted basis which represents management’s best estimate of probable future costs based upon currently available information and technology and management’s view of the most likely remedy. | |||||||
Auditing the determination of the accrual involved a high degree of subjectivity as estimates underlying the determination of the accrual were based on assumptions unique to the affected site and subject to various laws and regulations governing the protection of the applicable environment. Actual costs incurred in future periods could differ from amounts estimated and future changes to environmental laws and regulations could increase the extent of remediation work required, therefore the calculation is complicated due to uncertainty in determining the probable future costs and the extent of the remediation efforts. | ||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process to estimate the Calvert City environmental-related accrual. For example, we tested controls over management’s review of the estimate and key assumptions, as well as monitoring for current year developments. | |||||||
With the assistance of our specialists, we tested the balance of the Calvert City environmental accrued liability and the disclosure of the expected costs to remediate. Our audit procedures included, among others, making inquiries of internal general counsel and obtaining legal letters from internal and external counsel. We also evaluated external communications including those from the US EPA and cost estimates from management’s Specialists used in determining the environmental accrued liability. We tested the key assumptions used by management by comparing those assumptions to accepted industry practice and information included in the Record of Decision issued by the US EPA, as applicable. We examined historical costs for recurring items and evaluated updated cost estimates for any current period changes. We searched publicly available information that might indicate facts contrary to the cost estimates and timeline used to determine the Calvert City accrual. |
Impairment assessment of the Avient Protective Materials (APM) Reporting Unit and the Dyneema Indefinite-Lived Trade Name | ||||||||
Description of the Matter | At December 31, 2023, the Company had goodwill of $1,719.3 million and indefinite-lived intangible assets related to trade names of $393.2 million on its consolidated balance sheet. As discussed in Note 1 to the consolidated financial statements, these assets are assessed for impairment on an annual basis or more frequently if indicators of potential impairment exist. If the fair value of the reporting units (for goodwill) or the indefinite-lived assets (for trade names) is less than its respective carrying value, an impairment loss is recognized in an amount equal to the difference. | |||||||
Auditing the Company’s annual APM goodwill and Dyneema trade name impairment assessments were complex because the estimation of fair values involves complex valuation methodologies and subjective management assumptions. These assumptions for the goodwill assessment include the weighted-average cost of capital, projections of future operating results such as forecasted revenues, operating margin and long-term growth rates and for the trade name assessment, include the weighted-average cost of capital, projections of forecasted revenues and the royalty rate. These significant assumptions used in the Company’s valuation model are forward looking and changes in these assumptions can have a material effect on the determination of fair values. | ||||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s controls over its impairment assessment for the APM reporting unit and the Dyneema trade name, including management’s review of the methods and significant assumptions described above. | |||||||
Our audit procedures to test the annual impairment assessment for the APM reporting unit and the Dyneema trade name included, among others, assessing the valuation methodologies and assumptions described above, and the underlying data used to support such assumptions. For example, we compared certain assumptions to industry, market and economic trends. Where appropriate, we evaluated whether changes to the Company’s business and other factors would affect the assumption. We also assessed the historical accuracy of management’s estimates and performed sensitivity analyses. We involved our valuation specialists to assist with our evaluation of the methodology and auditing certain significant assumptions included in the fair value estimates. |
Year Ended December 31, | ||||||||||||||||||||
(In millions, except per share data) | 2023 | 2022 | 2021 | |||||||||||||||||
Sales | $ | $ | $ | |||||||||||||||||
Cost of sales | ||||||||||||||||||||
Gross margin | ||||||||||||||||||||
Selling and administrative expense | ||||||||||||||||||||
Operating income | ||||||||||||||||||||
Interest expense, net | ( | ( | ( | |||||||||||||||||
Other income (expense), net | ( | ( | ||||||||||||||||||
Income from continuing operations before income taxes | ||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ||||||||||||||||||
Net income from continuing operations | ||||||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | ( | |||||||||||||||||||
Net income | ||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | ( | ( | ||||||||||||||||||
Net income attributable to Avient common shareholders | $ | $ | $ | |||||||||||||||||
Earnings per share attributable to Avient common shareholders - Basic: | ||||||||||||||||||||
Continuing operations | $ | $ | $ | |||||||||||||||||
Discontinued operations | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Earnings per share attributable to Avient common shareholders - Diluted: | ||||||||||||||||||||
Continuing operations | $ | $ | $ | |||||||||||||||||
Discontinued operations | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Weighted-average shares used to compute earnings per common share: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Plus dilutive impact of share-based compensation | ||||||||||||||||||||
Diluted | ||||||||||||||||||||
Anti-dilutive shares not included in diluted common shares outstanding | ||||||||||||||||||||
Cash dividends declared per share of common stock | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | ||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Translation adjustments and related hedging instruments | ( | ( | ( | ||||||||||||||
Cash flow hedges | |||||||||||||||||
Pension and postretirement benefits | ( | ||||||||||||||||
Total other comprehensive loss | ( | ( | ( | ||||||||||||||
Total comprehensive income | |||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | |||||||||||||||
Comprehensive income attributable to Avient common shareholders | $ | $ | $ |
Year Ended December 31, | |||||||||||
(In millions, except par value per share) | 2023 | 2022 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Operating lease assets, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term and current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Current operating lease obligations | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Long-term debt | |||||||||||
Pension and other post-retirement benefits | |||||||||||
Deferred income taxes | |||||||||||
Non-current operating lease obligations | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common Shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Common shares held in treasury, at cost, | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Avient shareholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Year Ended December 31, | |||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | ||||||||||||||
Operating activities | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Gain on sale of business, net of tax expense | ( | ||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Accelerated depreciation | |||||||||||||||||
Amortization of inventory step-up | |||||||||||||||||
Deferred income tax (benefit) expense | ( | ( | |||||||||||||||
Share-based compensation expense | |||||||||||||||||
Changes in assets and liabilities, net of the effect of acquisitions: | |||||||||||||||||
Decrease (increase) in accounts receivable | ( | ||||||||||||||||
Decrease (increase) in inventories | ( | ||||||||||||||||
(Decrease) increase in accounts payable | ( | ||||||||||||||||
(Decrease) increase in pension and other post-retirement benefits | ( | ( | |||||||||||||||
Taxes paid on gain on sale of business | ( | ( | |||||||||||||||
Accrued expenses and other assets and liabilities, net | ( | ||||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Investing activities | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Business acquisitions, net of cash acquired | ( | ( | |||||||||||||||
Settlement of foreign exchange derivatives | |||||||||||||||||
Net proceeds from divestiture | |||||||||||||||||
Proceeds from plant closures | |||||||||||||||||
Other investing activities | ( | ||||||||||||||||
Net cash used by investing activities | ( | ( | ( | ||||||||||||||
Financing activities | |||||||||||||||||
Debt offering proceeds | |||||||||||||||||
Purchase of common shares for treasury | ( | ( | |||||||||||||||
Cash dividends paid | ( | ( | ( | ||||||||||||||
Repayment of long-term debt | ( | ( | ( | ||||||||||||||
Payments on withholding tax on share awards | ( | ( | ( | ||||||||||||||
Debt financing costs | ( | ( | |||||||||||||||
Other financing activities | ( | ||||||||||||||||
Net cash (used) provided by financing activities | ( | ( | |||||||||||||||
Effect of exchange rate changes on cash | ( | ( | ( | ||||||||||||||
(Decrease) increase in cash and cash equivalents | ( | ( | |||||||||||||||
Cash and cash equivalents at beginning of year | |||||||||||||||||
Cash and cash equivalents at end of year | $ | $ | $ | ||||||||||||||
Common Shares | Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Common Shares | Common Shares Held in Treasury | Common Shares | Additional Paid-in Capital | Retained Earnings | Common Shares Held in Treasury | Accumulated Other Comprehensive Loss (Income) | Total Avient Shareholders' Equity | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | ( | $ | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest activity | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | ( | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions/other | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | ( | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions/other | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared -- $ | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and exercise of awards | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | ( | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
(In millions) | Cumulative Translation Adjustment and Related Hedging Instruments | Pension and other post-retirement benefits | Cash Flow Hedges | Total | ||||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ( | $ | |||||||||||||||||||||
Translation Adjustments | ( | — | — | ( | ||||||||||||||||||||||
Unrealized gains on derivatives | — | |||||||||||||||||||||||||
Balance at December 31, 2021 | ( | ( | ( | |||||||||||||||||||||||
Translation Adjustments | ( | — | — | ( | ||||||||||||||||||||||
Unrealized gains on derivatives | — | |||||||||||||||||||||||||
Prior service credit | — | — | ||||||||||||||||||||||||
Balance at December 31, 2022 | ( | ( | ||||||||||||||||||||||||
Translation Adjustments | — | — | ||||||||||||||||||||||||
Unrealized losses on derivatives | ( | — | ( | |||||||||||||||||||||||
Amortization of prior service credit | — | ( | — | ( | ||||||||||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | $ | $ | ( |
(In millions) | Preliminary Allocation as of 9/1/2022 | Measurement Period Adjustments | Final Allocation | ||||||||||||||
Cash and cash equivalents | $ | — | $ | ||||||||||||||
Accounts receivable | |||||||||||||||||
Inventories | ( | ||||||||||||||||
Other current assets | |||||||||||||||||
Property | ( | ||||||||||||||||
Intangible assets: | |||||||||||||||||
Indefinite-lived trade names | — | ||||||||||||||||
Customer relationships | |||||||||||||||||
Patents, technology, and other | — | ||||||||||||||||
Goodwill | |||||||||||||||||
Other non-current assets | ( | ||||||||||||||||
Accounts payable | — | ||||||||||||||||
Accrued expenses and other current liabilities | |||||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Noncontrolling interests | |||||||||||||||||
Other non-current liabilities | ( | ||||||||||||||||
Total purchase price consideration | $ | $ | $ |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Sales | $ | $ | |||||||||
Income from continuing operations before income taxes |
(In millions) | 2023 | 2022 | 2021 | ||||||||||||||
Sales | $ | $ | $ | ||||||||||||||
Cost of sales | ( | ( | |||||||||||||||
Selling and administrative expense | ( | ( | ( | ||||||||||||||
Pre-tax gain on sale | |||||||||||||||||
Income from discontinued operations before income taxes | ( | ||||||||||||||||
Income tax benefit (expense) | ( | ( | |||||||||||||||
Income from discontinued operations, net of income taxes | $ | ( | $ | $ |
(In millions) | Specialty Engineered Materials | Color, Additives and Inks | Total | ||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | ||||||||||||||
Acquisition of businesses | |||||||||||||||||
Currency translation | ( | ( | |||||||||||||||
Balance at December 31, 2022 | |||||||||||||||||
Acquisition of businesses | |||||||||||||||||
Currency translation | |||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ |
As of December 31, 2023 | ||||||||||||||||||||||||||
(In millions) | Acquisition Cost | Accumulated Amortization | Currency Translation | Net | ||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | |||||||||||||||||||||
Patents, technology and other | ( | |||||||||||||||||||||||||
Indefinite-lived trade names | — | |||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
As of December 31, 2022 | ||||||||||||||||||||||||||
(In millions) | Acquisition Cost | Accumulated Amortization | Currency Translation | Net | ||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | |||||||||||||||||||||
Patents, technology and other | ( | |||||||||||||||||||||||||
Indefinite-lived trade names | — | |||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ |
(In millions) | 2024 | 2025 | 2026 | 2027 | 2028 | ||||||||||||||||||||||||
Expected amortization expense | $ | $ | $ | $ | $ |
(In millions) | Workforce reductions | Plant closing and other | Total | ||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | ||||||||||||||
Restructuring costs | |||||||||||||||||
Payments, utilization and translation | ( | ( | ( | ||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ||||||||||||||
Restructuring costs | |||||||||||||||||
Payments, utilization and translation | ( | ( | ( | ||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ||||||||||||||
Restructuring costs | |||||||||||||||||
Payments, utilization and translation | ( | ( | ( | ||||||||||||||
Balance at December 31, 2023 | $ | $ | $ |
(In millions) | 2023 | 2022 | 2021 | ||||||||||||||
Cost of goods sold | $ | $ | $ | ||||||||||||||
Selling and administrative expenses | |||||||||||||||||
$ | $ | $ |
As of December 31, 2023 (in millions) | Principal Amount | Unamortized discount and debt issuance cost | Net Debt | Weighted average interest rate | |||||||||||||||||||
Senior secured revolving credit facility due 2026 | $ | $ | $ | % | |||||||||||||||||||
Senior secured term loan due 2029 | % | ||||||||||||||||||||||
% | |||||||||||||||||||||||
% | |||||||||||||||||||||||
Other Debt | |||||||||||||||||||||||
Total Debt | |||||||||||||||||||||||
Less short-term and current portion of long-term debt | |||||||||||||||||||||||
Total long-term debt, net of current portion | $ | $ | $ |
As of December 31, 2022 (in millions) | Principal Amount | Unamortized discount and debt issuance cost | Net Debt | Weighted average interest rate | |||||||||||||||||||
Senior secured revolving credit facility due 2026 | $ | $ | $ | % | |||||||||||||||||||
Senior secured term loan due 2026 | % | ||||||||||||||||||||||
Senior secured term loan due 2029 | % | ||||||||||||||||||||||
% | |||||||||||||||||||||||
% | |||||||||||||||||||||||
Other Debt | |||||||||||||||||||||||
Total Debt | |||||||||||||||||||||||
Less short-term and current portion of long-term debt | |||||||||||||||||||||||
Total long-term debt, net of current portion | $ | $ | $ |
(In millions) | ||||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Aggregate maturities | $ |
(In millions) | 2023 | 2022 | 2020 | |||||||||||||||||
Cost of sales | $ | $ | $ | |||||||||||||||||
Selling and administrative expense | ||||||||||||||||||||
Total operating lease cost | $ | $ | $ |
(In millions) | 2023 | |||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ | |||||||
Less amount of lease payment representing interest | ( | |||||||
Total present value of lease payments | $ |
(In millions) | 2023 | 2022 | ||||||||||||
Finished products | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Raw materials and supplies | ||||||||||||||
Inventories, net | $ | $ |
(In millions) | 2023 | 2022 | ||||||||||||
Land and land improvements | $ | $ | ||||||||||||
Buildings | ||||||||||||||
Machinery and equipment | ||||||||||||||
Property, gross | ||||||||||||||
Less accumulated depreciation | ( | ( | ||||||||||||
Property, net | $ | $ |
Accrued expenses and other current liabilities | Other non-current liabilities | |||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Employment costs | $ | $ | $ | $ | ||||||||||||||||||||||
Deferred compensation | ||||||||||||||||||||||||||
Restructuring costs | ||||||||||||||||||||||||||
Environmental liabilities | ||||||||||||||||||||||||||
Accrued taxes | ||||||||||||||||||||||||||
Accrued interest | ||||||||||||||||||||||||||
Dividends payable | ||||||||||||||||||||||||||
Unrecognized tax benefits | ||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||
Accrued capitalized software | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||
Projected benefit obligation - beginning of year | $ | $ | $ | $ | ||||||||||||||||||||||
Service cost | ||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Actuarial loss / (gain) | ( | ( | ( | |||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Projected benefit obligation - end of year | ||||||||||||||||||||||||||
Projected salary increases | ( | ( | ||||||||||||||||||||||||
Accumulated benefit obligation | $ | $ | $ | $ | ||||||||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||
Plan assets - beginning of year | $ | $ | $ | $ | ||||||||||||||||||||||
Actual return on plan assets | ( | |||||||||||||||||||||||||
Company contributions | ||||||||||||||||||||||||||
Benefits paid | ( | ( | ( | ( | ||||||||||||||||||||||
Other | ( | |||||||||||||||||||||||||
Plan assets - end of year | $ | $ | $ | $ | ||||||||||||||||||||||
Unfunded status at end of year | $ | ( | $ | ( | $ | ( | $ | ( |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Non-current assets | $ | $ | $ | $ | ||||||||||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||||||||||||||
Pension and other post-retirement benefits |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Projected benefit obligation | $ | $ | $ | $ | ||||||||||||||||||||||
Fair value of plan assets | ||||||||||||||||||||||||||
Accumulated benefit obligation | ||||||||||||||||||||||||||
Fair value of plan assets |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Discount rate | % | % | % | % | ||||||||||||||||||||||
Assumed health care cost trend rates at December 31: | ||||||||||||||||||||||||||
Health care cost trend rate assumed for next year | N/A | N/A | % | % | ||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | N/A | % | % | ||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Amortization of prior service cost | ( | ( | ||||||||||||||||||||||||||||||||||||
Mark-to-market actuarial net (gains) losses | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||||||||||||||
Net periodic (income) cost | $ | ( | $ | $ | $ | ( | $ | ( | $ | ( |
Pension Benefits | Health Care Benefits | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Discount rate* | % | % | % | % | % | % | ||||||||||||||||||||||||||||||||
Expected long-term return on plan assets* | % | % | % | |||||||||||||||||||||||||||||||||||
Assumed health care cost trend rates at December 31: | ||||||||||||||||||||||||||||||||||||||
Assumed health care cost trend rates at January 1: | N/A | N/A | N/A | % | % | % | ||||||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | N/A | N/A | % | % | % | ||||||||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | N/A | N/A |
Fair Value of Plan Assets at December 31, 2023 | ||||||||||||||||||||||||||
(In millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Investments (at Fair Value) | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||||||
Cash | $ | $ | $ | $ | ||||||||||||||||||||||
Bonds and notes | ||||||||||||||||||||||||||
Global equity | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
Investments measured at NAV: | ||||||||||||||||||||||||||
Common collective funds: | ||||||||||||||||||||||||||
United States equity | ||||||||||||||||||||||||||
International equity | ||||||||||||||||||||||||||
Global equity | ||||||||||||||||||||||||||
Fixed income | ||||||||||||||||||||||||||
Total common collective funds | $ | |||||||||||||||||||||||||
Total investments at fair value | $ |
Fair Value of Plan Assets at December 31, 2022 | ||||||||||||||||||||||||||
(In millions) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Investments (at Fair Value) | ||||||||||||||||||||||
Asset category | ||||||||||||||||||||||||||
Cash | $ | $ | $ | $ | ||||||||||||||||||||||
Bonds and notes | ||||||||||||||||||||||||||
Global equity | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
Investments measured at NAV: | ||||||||||||||||||||||||||
Common collective funds: | ||||||||||||||||||||||||||
United States equity | ||||||||||||||||||||||||||
International equity | ||||||||||||||||||||||||||
Global equity | ||||||||||||||||||||||||||
Fixed income | ||||||||||||||||||||||||||
Total common collective funds | $ | |||||||||||||||||||||||||
Total investments at fair value | $ |
(In millions) | Pension Benefits | Health Care Benefits | ||||||||||||
2024 | $ | $ | ||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
2029 through 2033 |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Retirement savings match | $ | $ | $ | |||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Balance at beginning of the year | $ | $ | $ | |||||||||||||||||
Environmental expenses | ||||||||||||||||||||
Net cash payments | ( | ( | ( | |||||||||||||||||
Currency translation and other | ( | |||||||||||||||||||
Balance at the end of year | $ | $ | $ |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Domestic | $ | ( | $ | ( | $ | ( | ||||||||||||||
International | ||||||||||||||||||||
Income from continuing operations, before income taxes | $ | $ | $ |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Current income tax expense (benefit): | ||||||||||||||||||||
Domestic | $ | $ | ( | $ | ||||||||||||||||
International | ||||||||||||||||||||
Total current income tax expense (benefit) | $ | $ | ( | $ | ||||||||||||||||
Deferred income tax expense (benefit): | ||||||||||||||||||||
Domestic | $ | ( | $ | $ | ( | |||||||||||||||
International | ( | ( | ||||||||||||||||||
Total deferred income tax (benefit) expense | $ | ( | $ | $ | ( | |||||||||||||||
Total income tax expense (benefit) | $ | $ | ( | $ |
2023 | 2022 | 2021 | ||||||||||||||||||
U.S. federal income tax rate | % | % | % | |||||||||||||||||
International tax rate differential: | ||||||||||||||||||||
Asia | ||||||||||||||||||||
Europe | ( | ( | ( | |||||||||||||||||
North and South America | ||||||||||||||||||||
Total international tax rate differential | ( | ( | ||||||||||||||||||
Net tax on GILTI and FDII | ( | |||||||||||||||||||
International tax on certain current and prior year earnings | ||||||||||||||||||||
Non-deductible acquisition related costs | ||||||||||||||||||||
Non-deductible interest | ||||||||||||||||||||
Research and development credit | ( | ( | ( | |||||||||||||||||
Capital losses | ( | ( | ( | |||||||||||||||||
State and local tax, net | ( | ( | ||||||||||||||||||
International permanent items | ( | |||||||||||||||||||
Net impact of uncertain tax positions | ( | |||||||||||||||||||
Changes in valuation allowances | ||||||||||||||||||||
Other | ||||||||||||||||||||
Effective income tax rate | % | ( | % | % |
(In millions) | 2023 | 2022 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Employment costs | ||||||||||||||
Environmental accruals | ||||||||||||||
Net operating loss carryforwards | ||||||||||||||
Operating leases | ||||||||||||||
Research and development | ||||||||||||||
Capitalized and carryforward interest | ||||||||||||||
Financial Derivatives | ||||||||||||||
Other, net | ||||||||||||||
Gross deferred tax assets | $ | $ | ||||||||||||
Valuation allowances | ( | ( | ||||||||||||
Total deferred tax assets, net of valuation allowances | $ | $ | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property, plant and equipment | $ | ( | $ | ( | ||||||||||
Goodwill and intangibles | ( | ( | ||||||||||||
Operating leases | ( | ( | ||||||||||||
Other, net | ( | ( | ||||||||||||
Total deferred tax liabilities | $ | ( | $ | ( | ||||||||||
Net deferred tax (liabilities) assets | $ | ( | $ | ( | ||||||||||
Consolidated Balance Sheets: | ||||||||||||||
Non-current deferred income tax assets | $ | $ | ||||||||||||
Non-current deferred income tax liabilities | $ | ( | $ | ( |
Unrecognized Tax Benefits | ||||||||||||||||||||
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Balance as of January 1, | $ | $ | $ | |||||||||||||||||
Increases as a result of positions taken during current year | ||||||||||||||||||||
Increases as a result of positions taken for prior years | ||||||||||||||||||||
Balance related to acquired businesses | ||||||||||||||||||||
Reductions for tax positions of prior years | ( | ( | ||||||||||||||||||
Decreases as a result of lapse of statute of limitations | ( | ( | ( | |||||||||||||||||
Other, net | ( | |||||||||||||||||||
Balance as of December 31, | $ | $ | $ |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Stock appreciation rights | $ | $ | $ | |||||||||||||||||
Performance shares | ||||||||||||||||||||
Restricted stock units | ||||||||||||||||||||
Total share-based compensation | $ | $ | $ |
2023 | 2022 | 2021 | ||||||||||||||||||
Expected volatility | ||||||||||||||||||||
Expected dividends | ||||||||||||||||||||
Expected term (in years) | ||||||||||||||||||||
Risk-free rate | ||||||||||||||||||||
Value of SARs granted | $ | $ | $ |
(In millions, except per share data) | Shares | Weighted-Average Exercise Price per Share | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic value | ||||||||||||||||||||||
Outstanding as of January 1, 2023 | $ | $ | ||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Forfeited or expired | ( | |||||||||||||||||||||||||
Outstanding as of December 31, 2023 | $ | $ | ||||||||||||||||||||||||
Vested and exercisable as of December 31, 2023 | $ | $ | ||||||||||||||||||||||||
(In millions) Year Ended December 31, 2023 | Total Sales | Operating Income | Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
Color, Additives and Inks | $ | $ | $ | $ | ||||||||||||||||||||||
Specialty Engineered Materials | ||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||
Total from continuing operations | $ | $ | $ | $ |
Year Ended December 31, 2022 | Total Sales | Operating Income | Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
Color, Additives and Inks | $ | $ | $ | $ | ||||||||||||||||||||||
Specialty Engineered Materials | ||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||
Total from continuing operations | $ | $ | $ | $ |
Year Ended December 31, 2021 | Total Sales | Operating Income | Depreciation and Amortization | Capital Expenditures | ||||||||||||||||||||||
Color, Additives and Inks | $ | $ | $ | $ | ||||||||||||||||||||||
Specialty Engineered Materials | ||||||||||||||||||||||||||
Corporate | ( | |||||||||||||||||||||||||
Total from continuing operations | $ | $ | $ | $ |
(In millions) | 2023 | 2022 | 2021 | |||||||||||||||||
Sales: | ||||||||||||||||||||
United States and Canada | $ | $ | $ | |||||||||||||||||
Latin America | ||||||||||||||||||||
Europe | ||||||||||||||||||||
Asia | ||||||||||||||||||||
Total Sales | $ | $ | $ | |||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Color, Additives and Inks | $ | $ | ||||||||||||||||||
Specialty Engineered Materials | ||||||||||||||||||||
Corporate | ||||||||||||||||||||
Total Assets | $ | $ | ||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Property, net: | ||||||||||||||||||||
United States and Canada | $ | $ | ||||||||||||||||||
Latin America | ||||||||||||||||||||
Europe | ||||||||||||||||||||
Asia | ||||||||||||||||||||
Total Long-lived Assets | $ | $ |
(In millions) | Balance Sheet Location | 2023 | 2022 | ||||||||||||||
Cross Currency Swaps (Net Investment Hedge) | Other non-current liabilities | $ | $ | ||||||||||||||
1. | Avient’s management is responsible for establishing and maintaining adequate internal control over financial reporting. | ||||
2. | Under the supervision of and with participation of Avient’s management, including the Chief Executive Officer and the Chief Financial Officer, we conducted an evaluation of the effectiveness of internal control over financial reporting as of December 31, 2023 based on the guidelines established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013 Framework). Management believes that the 2013 Framework is a suitable framework for its evaluation of financial reporting because it is free from bias, permits reasonably consistent qualitative and quantitative measurements of Avient’s internal control over financial reporting, is sufficiently complete so that those relevant factors that would alter a conclusion about the effectiveness of Avient’s internal control over financial reporting are not omitted and is relevant to an evaluation of internal control over financial reporting. | ||||
3. | Based on the results of our evaluation, management has concluded that such internal control over financial reporting was effective as of December 31, 2023. There were no material weaknesses in internal control over financial reporting identified by management. The results of management's assessment were reviewed with our Audit Committee. | ||||
4. | Ernst & Young LLP, who audited the consolidated financial statements of Avient for the year ended December 31, 2023, also issued an attestation report on Avient’s internal control over financial reporting under Auditing Standard No. 2201 of the Public Company Accounting Oversight Board. This attestation report is set forth on page 31 of this Annual Report on Form 10-K and is incorporated by reference into this Item 9A. |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (1) | Weighted-average exercise price of outstanding options, warrants and rights (2) | Number of securities remaining available for future issuance under equity compensation plans (3) | |||||||||||||||||
Equity compensation plans approved by security holders | 3,215,173 | $40.18 | 3,410,395 | |||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
Total | 3,215,173 | $40.18 | 3,410,395 |
Exhibit No. | Exhibit Description | ||||
101 .INS** | Inline XBRL Instance Document | ||||
101 .SCH** | Inline XBRL Taxonomy Extension Schema Document | ||||
101 .CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101 .LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101 .PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101 .DEF** | Inline XBRL Taxonomy Definition Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
+ | Indicates management contract or compensatory plan, contract or arrangement in which one or more directors or executive officers of the Registrant may be participants |
† | Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be provided to the Securities and Exchange Commission upon request. |
** | Filed herewith. |
AVIENT CORPORATION | |||||||||||||||||
February 20, 2024 | BY: | /S/ JAMIE A. BEGGS | |||||||||||||||
Jamie A. Beggs Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Signature and Title | ||||||||||||||
/S/ ASHISH K. KHANDPUR | President and Chief Executive Officer (Principal Executive Officer) | February 20, 2024 | ||||||||||||
Ashish K. Khandpur | ||||||||||||||
/S/ JAMIE A. BEGGS | Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | February 20, 2024 | ||||||||||||
Jamie A. Beggs | ||||||||||||||
/S/ ROBERT E. ABERNATHY | Director | February 20, 2024 | ||||||||||||
Robert E. Abernathy | ||||||||||||||
/S/ RICHARD H. FEARON | Director (Non-Executive Chairman of Board) | February 20, 2024 | ||||||||||||
Richard H. Fearon | ||||||||||||||
/S/ GREGORY J. GOFF | Director | February 20, 2024 | ||||||||||||
Gregory J. Goff | ||||||||||||||
/S/ NEIL GREEN | Director | February 20, 2024 | ||||||||||||
Neil Green | ||||||||||||||
/S/ WILLIAM R. JELLISON | Director | February 20, 2024 | ||||||||||||
William R. Jellison | ||||||||||||||
/S/ SANDRA BEACH LIN | Director | February 20, 2024 | ||||||||||||
Sandra Beach Lin | ||||||||||||||
/S/ KIM ANN MINK | Director | February 20, 2024 | ||||||||||||
Kim Ann Mink | ||||||||||||||
/S/ ERNEST NICOLAS | Director | February 20, 2024 | ||||||||||||
Ernest Nicolas | ||||||||||||||
/S/ KERRY J. PREETE | Director | February 20, 2024 | ||||||||||||
Kerry J. Preete | ||||||||||||||
/S/ PATRICIA VERDUIN | Director | February 20, 2024 | ||||||||||||
Patricia Verduin | ||||||||||||||
/S/ WILLIAM A. WULFSOHN | Director | February 20, 2024 | ||||||||||||
William A. Wulfsohn |
SCHEDULE OF EXECUTIVE OFFICERS AND OTHERS WITH MANAGEMENT CONTINUITY AGREEMENTS | ||||||||||||||||||||
Title | Name | Years / Comp* | Excise Tax Gross Up? | |||||||||||||||||
President and Chief Executive Officer | Ashish K. Khandpur | 3 | N | |||||||||||||||||
Special Advisor | Robert M. Patterson | 3 | Y | |||||||||||||||||
Senior Vice President, Chief Financial Officer | Jamie A. Beggs | 2 | N | |||||||||||||||||
Senior Vice President, Chief Human Resources Officer | Kristen A. Gajewski | 2 | N | |||||||||||||||||
Senior Vice President, President, Color, Additives and Inks, EMEA | Michael A. Garratt | 2 | N | |||||||||||||||||
Senior Vice President, Global Operations and Process Improvement | M. John Midea, Jr. | 2 | N | |||||||||||||||||
Senior Vice President, President of Color, Additives and Inks, Americas and Asia | Woon Keat Moh | 2 | N | |||||||||||||||||
Senior Vice President, President of Specialty Engineered Materials | Christopher L. Pederson | 2 | N | |||||||||||||||||
Senior Vice President, Chief Technology Officer | Vinod Purayath | 2 | N | |||||||||||||||||
Senior Vice President, Mergers and Acquisitions | Joel R. Rathbun | 2 | N |
Performance Period | Allocation of Performance Units | ||||
Performance Period #1: January 1, 2024 to December 31, 2024 | 25% | ||||
Performance Period #2: January 1, 2025 to December 31, 2025 | 25% | ||||
Performance Period #3: January 1, 2026 to December 31, 2026 | 25% | ||||
Performance Period #4: January 1, 2024 to December 31, 2026 | 25% |
2024 – 2026 Performance Units – Adjusted EPS Goals (in US$) | ||||||||||||||
Performance Period | Percent of Opportunity | Threshold (50% Payout) | Target (100% Payout) | Maximum (200% Payout) | ||||||||||
Performance Period #1: January 1, 2024 to December 31, 2024 | 25% | $[___] | $[___] | $[___] | ||||||||||
Performance Period #2: January 1, 2025 to December 31, 2025 | 25% | $[___] | $[___] | $[___] | ||||||||||
Performance Period #3: January 1, 2026 to December 31, 2026 | 25% | $[___] | $[___] | $[___] | ||||||||||
Performance Period #4: January 1, 2024 to December 31, 2026 | 25% | $[___] | $[___] | $[___] |
Exhibit 21.1 | ||||||||
SUBSIDIARIES OF THE COMPANY | ||||||||
Name | Formation Jurisdiction | |||||||
Altona Properties Pty Ltd. (37.4% owned) | Australia | |||||||
Auseon Limited | Australia | |||||||
Avient Argentina S.A. | Argentina | |||||||
Avient Austria GmbH | Austria | |||||||
Avient Belgium S.A. | Belgium | |||||||
Avient Brasil Ltda. | Brazil | |||||||
Avient Canada ULC | Canada | |||||||
Avient Canada-Australia S.à r.l | Luxembourg | |||||||
Avient Chile SpA | Chile | |||||||
Avient China Co., Ltd. | China | |||||||
Avient Colombia S.A.S. | Colombia | |||||||
Avient Colorant Solutions MX, S. de R.L. de C.V. | Mexico | |||||||
Avient Colorants Belgium SA | Belgium | |||||||
Avient Colorants Brasil Ltda. | Brazil | |||||||
Avient Colorants Canada Inc. | Canada | |||||||
Avient Colorants France | France | |||||||
Avient Colorants FZE | United Arab Emirates | |||||||
Avient Colorants Germany GmbH | Germany | |||||||
Avient Colorants Guangzhou Ltd. | China | |||||||
Avient Colorants Ireland Ltd. | Ireland | |||||||
Avient Colorants Italy Srl | Italy | |||||||
Avient Colorants Malaysia Sdn. Bhd. (60% owned) | Malaysia | |||||||
Avient Colorants MX, S.A. de C.V. | Mexico | |||||||
Avient Colorants Netherlands B.V. | Netherlands | |||||||
Avient Colorants Poland Sp. z.o.o. | Poland | |||||||
Avient Colorants (RUS) LLC | Russia | |||||||
Avient Colorants Shanghai Ltd. | China | |||||||
Avient Colorants Singapore Pte. Ltd. | Singapore | |||||||
Avient Colorants Spain S.A. | Spain | |||||||
Avient Colorants Sweden AB | Sweden | |||||||
Avient Colorants Switzerland AG | Switzerland | |||||||
Avient Colorants (Thailand) Ltd. | Thailand | |||||||
Avient Colorants UK Ltd. | United Kingdom | |||||||
Avient Colorants USA LLC | Delaware | |||||||
Avient de Mexico S.A. de C.V. | Mexico | |||||||
Avient Deutschland GmbH | Germany | |||||||
Avient ECCOH High Performance Solutions GmbH | Germany | |||||||
Avient Engineered Films, LLC | Virginia | |||||||
Avient Espana S.L.U. | Spain | |||||||
Avient Europe, Inc. (duly incorporated with Avient Europe S.à r.l.) | Delaware | |||||||
Avient Europe Finance S.à r.l | Luxembourg | |||||||
Avient Europe S.à r.l (duly incorporated with Avient Europe, Inc.) | Luxembourg |
Avient Finance Ltd. | Cyprus | |||||||
Avient Finland OY | Finland | |||||||
Avient Funding Corporation | Delaware | |||||||
Avient Global S.à r.l. | Luxembourg | |||||||
Avient Guatemala S.A. | Guatemala | |||||||
Avient High Performance Polyethylenes B.V. (f/k/a DSM High Performance Polyethylenes BV) | Netherlands | |||||||
Avient Hong Kong Holding Limited | Hong Kong | |||||||
Avient ICD Participations B.V. (f/k/a DSM ICD Participations BV) | Netherlands | |||||||
Avient Intellectual Property Ltd. | Cyprus | |||||||
Avient International Finance Unlimited Company | Ireland | |||||||
Avient International Real Estate Corporation | Ohio | |||||||
Avient International S.à r.l. | Luxembourg | |||||||
Avient International Trading (Shanghai) Co., Ltd. | China | |||||||
Avient Japan K.K. | Japan | |||||||
Avient Korea, Ltd. | Korea | |||||||
Avient Limited | Cyprus | |||||||
Avient LLC | Delaware | |||||||
Avient Luxembourg S.à r.l. | Luxembourg | |||||||
Avient Material Solutions CR s.r.o. | Czech Republic | |||||||
Avient Material Solutions UK Limited | United Kingdom | |||||||
Avient New Zealand Limited | New Zealand | |||||||
Avient Pakistan (Private) Limited | Pakistan | |||||||
Avient Protective Materials B.V. (f/k/a DSM Protective Materials BV) | Netherlands | |||||||
Avient Protective Materials International B.V. (f/k/a DSM Protective Materials International BV) | Netherlands | |||||||
Avient Protective Materials LLC (f/k/a DSM Protective Materials LLC) | Delaware | |||||||
Avient Protective Materials Services B.V. (f/k/a DPM Services BV) | Netherlands | |||||||
Avient S.à r.l. | Luxembourg | |||||||
Avient Saudi Industries Co. Ltd. | Saudi Arabia | |||||||
Avient Singapore Pte Ltd | Singapore | |||||||
Avient South Africa (PTY) Ltd. | South Africa | |||||||
Avient Sweden A.B. | Sweden | |||||||
Avient Switzerland GmbH | Switzerland | |||||||
Avient Taiwan Co., Ltd. | Taiwan | |||||||
Avient (Thailand) Co., Ltd. | Thailand | |||||||
Avient Th. Bergmann GmbH | Germany | |||||||
Avient Turkey Mühendislik Polimerleri Sanayi ve Ticaret A.S. | Turkey | |||||||
Avient Turkey Renklendirici ve Katki Maddeleri Sanayi ve Ticaret Anonim Sirketi | Turkey | |||||||
Avient UK Finance Limited | United Kingdom | |||||||
Avient Vietnam Company Limited | Vietnam | |||||||
Braspenco Indústria de Compostos de Plásticos Ltda. | Brazil | |||||||
Burton Rubber Company | Delaware | |||||||
Butler Brothers, Inc. (49% owned) | Minnesota | |||||||
Chromatics, Inc. | Connecticut | |||||||
Clariant Masterbatches (Saudi Arabia) Ltd. (53% owned) | Saudi Arabia |
Colorant Chromatics AB | Finland | |||||||
Colorant Chromatics AG | Switzerland | |||||||
Colorant Chromatics Europe B.V. | Netherlands | |||||||
Colorant Chromatics Trading (Shanghai), Ltd. | China | |||||||
Colorant GmbH | Germany | |||||||
ColorMatrix Asia Limited | Hong Kong | |||||||
ColorMatrix-Brazil, LLC | Ohio | |||||||
ColorMatrix Corporation, The | Ohio | |||||||
ColorMatrix Europe BV | Netherlands | |||||||
ColorMatrix Europe Limited | United Kingdom | |||||||
ColorMatrix Group, Inc. | Delaware | |||||||
ColorMatrix Holdings, Inc. | Delaware | |||||||
ColorMatrix Plastic Colorants (Suzhou) Co. Ltd. | China | |||||||
ColorMatrix Russia LLC | Russia | |||||||
ColorMatrix South Africa (Pty) Ltd. | South Africa | |||||||
ColorMatrix UK Holdings Limited | United Kingdom | |||||||
ColorMatrix UK Limited | United Kingdom | |||||||
COMPTEK Kunststoffverarbeitung GmbH | Germany | |||||||
Conexus, LLC | Nevada | |||||||
Cubic Tech Corporation | Arizona | |||||||
Fiber-Line Asia Pacific B.V. | Netherlands | |||||||
Fiber-Line Asia Pacific (Changzhou) Co., Ltd. | China | |||||||
Fiber-Line Asia Pacific (Shanghai) Co., Ltd. | China | |||||||
Fiber-Line Holding B.V. | Netherlands | |||||||
Fiber-Line International B.V. | Netherlands | |||||||
Fiber-Line, LLC | Delaware | |||||||
Fiber-Line Management, Inc. | Delaware | |||||||
Franklin-Burlington Plastics, Inc. | Delaware | |||||||
Glasforms, Inc. | California | |||||||
GLS Hong Kong Limited | Hong Kong | |||||||
GLS International, Inc. | Illinois | |||||||
GLS Thermoplastic Alloys (Suzhou) Co., Ltd. | China | |||||||
GLS Trading (Suzhou) Co., Ltd. | China | |||||||
GSDI Specialty Dispersions, Inc. | Ohio | |||||||
Hanna France S.à r.l. | France | |||||||
Hanna-Itasca Company | Delaware | |||||||
Hanna Proprietary Limited | Delaware | |||||||
Hansand Steamship Company (33% owned) | Delaware | |||||||
IQAP Czech, s.r.o. | Czech Republic | |||||||
IQAP Masterbatch Group, S.L. | Spain | |||||||
Kimberly Iron (14% owned) | Michigan | |||||||
Laconian Holding Company | Missouri | |||||||
L. E. Carpenter & Company | Delaware | |||||||
MAG International (50% owned) | Delaware | |||||||
Magenta Master Fibers S.r.l. | Italy |
Magenta Master Fibers (Shanghai) Co., Ltd. | China | |||||||
Magna Colours Holdings Limited | United Kingdom | |||||||
Magna Colours (India) Private Limited (49% owned) | India | |||||||
Magna Colours Limited | United Kingdom | |||||||
M.A. Hanna Asia Holding Company | Delaware | |||||||
M.A. Hanna Export Services Corp. | Barbados | |||||||
M.A. Hanna Plastic Group, Inc. | Michigan | |||||||
NEU Specialty Engineered Materials, LLC | Ohio | |||||||
Nippon Dyneema Co. Ltd. (50% owned) | Japan | |||||||
O’Sullivan Plastics, LLC | Nevada | |||||||
Paramont Coal Company (50% owned) | Virginia | |||||||
Pilot Knob Pellet Co. (50% owned) | Missouri | |||||||
PlastiComp Europe GmbH | Germany | |||||||
PlastiComp, Inc. | Minnesota | |||||||
POL Development, Inc. | Ohio | |||||||
POL Laconian de Mexico Holding Company, S de R.L. de C.V. | Mexico | |||||||
POL Luxembourg Holding Company, S.a r.l | Luxembourg | |||||||
POL Mexico Holdings, LLC | Missouri | |||||||
PolyOne Company Australia Limited, The | Australia | |||||||
PolyOne Europe Logistics S.A. | Belgium | |||||||
PolyOne France S.A.S. | France | |||||||
PolyOne Hungary, Ltd. | Hungary | |||||||
PolyOne International Ltd. | British Virgin Islands | |||||||
Polyone Italy S.r.l. | Italy | |||||||
PolyOne Japan K.K. | Japan | |||||||
PolyOne Management (Shanghai) Co. Ltd. | China | |||||||
PolyOne Poland Manufacturing, Sp.z.o.o. | Poland | |||||||
PolyOne Polimeks Plastik Tic. ve San. A.Ş | Turkey | |||||||
PolyOne Polymer (Tianjin) Co., Ltd. | China | |||||||
PolyOne Polymers India Pvt. Ltd. | India | |||||||
PolyOne-Shanghai China (a/k/a PolyOne (Shanghai) Co., Ltd.) | China | |||||||
PolyOne Shenzhen Co. Ltd. | China | |||||||
PolyOne Polymer (Suzhou) Co., Ltd. | China | |||||||
PolyOne Tekno Ticaret Mühendislik Plastikleri San. ve Tic. A.S. | Turkey | |||||||
PolyOne Termoplásticos do Brasil Ltda. | Brazil | |||||||
PT Avient Colorants Indonesia | Indonesia | |||||||
RA Products, Inc. | Michigan | |||||||
Regalite Plastics, LLC | Massachusetts | |||||||
Rutland DCC Inc Manufacturing Private Limited (50 % owned) | India | |||||||
Rutland Europe Limited | United Kingdom | |||||||
Rutland Group, Inc. | Delaware | |||||||
Rutland Holding Company | Delaware | |||||||
Rutland Intermediate Holding Company | Delaware | |||||||
Rutland International Limited | United Kingdom | |||||||
Rutland Plastics, Inc. | Florida |
Seola ApS | Denmark | |||||||
Servicios Factoria Barbastro, S.A. (50% owned) | Spain | |||||||
Shandong ICD High Performance Fibre Co., Ltd. (92% owned) | China | |||||||
Shandong ICD Trading Co., Ltd. | China | |||||||
Shanghai Colorant Chromatics Co., Ltd. | China | |||||||
Shawnee Holdings, LLC | Virginia | |||||||
SilCoTec, Inc. | Indiana | |||||||
Sociedad Quimica Alemana S.A. | Peru | |||||||
Spartech, S.A.S. | France | |||||||
Uniplen Indústria de Polimeros Ltda. | Brazil |
1) | Registration Statement (Form S-8 No. 333-271843) pertaining to the Avient Corporation 2020 Equity and Incentive Compensation Plan; | ||||||||||
2) | Registration Statement (Form S-8 No. 333-238246) pertaining to the PolyOne Corporation 2020 Equity and Incentive Compensation Plan; | ||||||||||
3) | Registration Statement (Form S-8 No. 333-231236) pertaining to the PolyOne Supplemental Retirement Benefit Plan (As Amended and Restated Effective January 1, 2014); | ||||||||||
4) | Registration Statement (Form S-8 No. 333-217879) pertaining to the PolyOne Corporation 2017 Equity and Incentive Compensation Plan; | ||||||||||
5) | Registration Statement (Form S-8 No. 333-205919) pertaining to the Amended and Restated PolyOne Corporation 2010 Equity and Performance Incentive Plan; | ||||||||||
6) | Registration Statement (Form S-8 No. 333-181787) pertaining to the PolyOne Corporation 2010 Equity and Performance Incentive Plan; | ||||||||||
7) | Registration Statement (Form S-8 No. 333-166775) pertaining to the PolyOne Corporation 2010 Equity and Performance Incentive Plan; | ||||||||||
8) | Registration Statement (Form S-8 No. 333-157486) pertaining to the PolyOne Retirement Savings Plan; | ||||||||||
9) | Registration Statement (Form S-8 No. 333-47796) pertaining to Post-Effective Amendment No. 3 on Form S-8 to Form S-4 pertaining to the Geon Company 1993 Incentive Stock Plan, the Geon Company 1995 Incentive Stock Plan, the Geon Company 1998 Interim Stock Award Plan, the Geon Company 1999 Incentive Stock Plan, the PolyOne Corporation Deferred Compensation Plan for Non-Employee Directors and the M.A. Hanna Company Long-Term Incentive Plan; and | ||||||||||
10) | Registration Statement (Form S-8 No. 333-141029) pertaining to the PolyOne Retirement Savings Plan and the DH Compounding Company Savings and Retirement Plan and Trust |
/s/ Ashish K. Khandpur | |||||
Ashish K. Khandpur President and Chief Executive Officer |
/s/ Jamie A. Beggs | |||||
Jamie A. Beggs Senior Vice President and Chief Financial Officer |
/s/ Ashish K. Khandpur | |||||
Ashish K. Khandpur President and Chief Executive Officer |
/s/ Jamie A. Beggs | |||||
Jamie A. Beggs Senior Vice President and Chief Financial Officer |
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Audit Information |
12 Months Ended |
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Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 42 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Statement of Comprehensive Income [Abstract] | |||
Net income | $ 76.2 | $ 703.4 | $ 230.6 |
Other comprehensive (loss) income, net of tax: | |||
Translation adjustments and related hedging instruments | (5.3) | (38.7) | (75.2) |
Cash flow hedges | 0.0 | 2.3 | 3.2 |
Pension and postretirement benefits | (6.3) | 6.2 | 0.0 |
Total other comprehensive loss | (11.6) | (30.2) | (72.0) |
Total comprehensive income | 64.6 | 673.2 | 158.6 |
Comprehensive (income) loss attributable to noncontrolling interests | (0.5) | (0.3) | 0.2 |
Comprehensive income attributable to Avient common shareholders | $ 64.1 | $ 672.9 | $ 158.8 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Common shares, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 400,000,000.0 | 400,000,000.0 |
Common shares, issued (in shares) | 122,200,000 | 122,200,000 |
Treasury stock, shares (in shares) | 31,000,000.0 | 31,300,000 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
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Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share of common stock (in usd per share) | $ 1.0000 | $ 0.960 | $ 0.875 |
DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 — DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business We are a premier formulator of specialized and sustainable materials solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Our products include specialty engineered materials, performance fibers, advanced composites, and color and additive systems. We are also a highly specialized developer and manufacturer of performance enhancing additives, liquid colorants, and fluoropolymer and silicone colorants. Headquartered in Avon Lake, Ohio, we have employees at sales, and manufacturing across North America, South America, Europe, the Middle East, Asia, and Africa. We provide value to our customers through our ability to link our knowledge of polymers and formulation technology with our manufacturing and supply chain to provide value added solutions to designers, assemblers and processors of plastics. When used in these notes to the consolidated financial statements, the terms “we,” “us,” “our,” “Avient” and the “Company” mean Avient Corporation and its consolidated subsidiaries. Our operations are reported in two reportable segments: Color, Additives and Inks and Specialty Engineered Materials. See Note 15, Segment Information, for more information. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Avient and its subsidiaries. All majority-owned affiliates over which we have control are consolidated. Transactions with related parties, including joint ventures, are in the ordinary course of business. Historical information has been retrospectively adjusted to reflect the classification of discontinued operations. Discontinued operations are further discussed in Note 3, Discontinued Operations. Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates. Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of less than three months to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. Allowance for Doubtful Accounts We evaluate the collectability of receivables based on a combination of factors, each of which are adjusted if specific circumstances change. We reserve for amounts determined to be uncollectible based on a specific customer’s inability to meet its financial obligation to us. We also record a general reserve based on the age of receivables past due, current conditions and forecasted information, the credit risk of specific customers, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance. Inventories Raw materials and finished goods are carried at lower of cost or market using either the weighted average cost or the first-in, first-out (FIFO) method. Inventory reserves totaled $34.5 million and $32.1 million at December 31, 2023 and 2022, respectively. Long-lived Assets Property, plant and equipment is carried at cost, net of depreciation and amortization that is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from to 15 years for machinery and equipment and up to 40 years for buildings. We depreciate certain assets associated with closing manufacturing locations over a shortened life (through the cease-use date). We expense repair and maintenance costs as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balance is removed from the respective account, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the accompanying Consolidated Statements of Income. We account for operating and finance leases under the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842. Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The useful lives range up to 25 years. We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future cash flows or appraised values. No such impairments were recognized during 2023, 2022 or 2021. Goodwill and Indefinite Lived Intangible Assets In accordance with the provisions of FASB ASC Topic 350, Intangibles — Goodwill and Other, we assess the fair value of goodwill on an annual basis or at an interim date if potential impairment indicators are present. Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested for impairment, quantitatively or qualitatively, at the reporting unit level. The Company's reporting units are at a level below the Company's reportable operating segments. Goodwill is allocated to the reporting units based on the estimated fair value at the date of acquisition. Our annual measurement date for testing impairment of goodwill and indefinite-lived intangible assets is October 1. We test our goodwill either quantitatively or qualitatively for impairment. For our quantitative approach, we use an income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs, and estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by considering the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. Indefinite-lived intangible assets primarily consist of the Dyneema, GLS, ColorMatrix, Gordon Composites, and Fiber-Line trade names. Indefinite-lived intangible assets are tested, quantitatively or qualitatively, for impairment annually at the same time we test goodwill for impairment. For our quantitative approach, the implied fair value of indefinite-lived intangible assets is determined based on significant unobservable inputs, as summarized below. The fair value of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps: (1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is determined based on current market conditions. This fair value is then compared with the carrying value of the trade name. A qualitative approach for both goodwill and indefinite-lived intangible assets can be performed if the last quantitative test exceeded certain thresholds. During our qualitative approach, we assess whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we determine it is more likely than not that the fair value is less than carrying value, a quantitative impairment test is performed for each asset, as described above. Litigation Reserves FASB ASC Topic 450, Contingencies, requires that we accrue for loss contingencies associated with outstanding litigation, claims and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We recognize expense associated with professional fees related to litigation claims and assessments as incurred. Refer to Note 12, Commitments and Contingencies, for further information. Derivative Financial Instruments FASB ASC Topic 815, Derivative and Hedging, requires that all derivative financial instruments, such as foreign exchange contracts, be recognized in the financial statements and measured at fair value, regardless of the purpose or intent in holding them. We are exposed to foreign currency changes and to changes in cash flows due to changes in our contractually specified interest rates (e.g., SOFR) in the normal course of business. We have established policies and procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into these instruments for trading purposes or speculation. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, in accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, we assess at inception whether the financial instruments used in the hedging transaction are highly effective at offsetting changes in either the fair values or cash flows of the underlying exposures. If highly effective, any subsequent test may be done qualitatively. The net interest payments accrued each month for effective instruments designated as a hedge are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). Instruments not designated as hedges are adjusted to fair value at each period end, with the resulting gains and losses recognized in the accompanying Consolidated Statements of Income immediately. In 2022, we entered into foreign currency derivatives associated with the APM Acquisition that were not initially designated as hedges. Refer to Note 16, Derivatives and Hedging, for more information. Pension and Other Post-retirement Plans We account for our pensions and other post-retirement benefits in accordance with FASB ASC Topic 715, Compensation — Retirement Benefits. We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur. Refer to Note 11, Employee Benefit Plans, for more information. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) in 2023, 2022 and 2021 were as follows:
Fair Value of Financial Instruments FASB ASC Topic 820, Fair Value Measurements and Disclosures, requires disclosures of the fair value of financial instruments. The estimated fair values of financial instruments were principally based on market prices where such prices were available and, where unavailable, fair values were estimated based on market prices of similar instruments. Foreign Currency Translation Revenues and expenses are translated at average currency exchange rates during the related period. Assets and liabilities of foreign subsidiaries are translated using the exchange rate at the end of the period. The resulting translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses resulting from foreign currency transactions, including intercompany transactions that are not considered long-term investments, are included in Other income (expense), net. Revenue Recognition We recognize revenue once control of the product is transferred to the customer, which typically occurs when products are shipped from our facilities. Shipping and Handling Costs Shipping and handling costs are included in Cost of sales. Research and Development Expense Research and development costs of $90.3 million in 2023, $84.9 million in 2022 and $83.2 million in 2021 are charged to expense as incurred. Environmental Costs We expense costs that are associated with managing hazardous substances and pollution in ongoing operations on a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable. Share-Based Compensation We account for share-based compensation under the provisions of FASB ASC Topic 718, Compensation - Stock Compensation, which requires us to estimate the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying Consolidated Statements of Income. As of December 31, 2023, we had one active share-based employee compensation plan, which is described more fully in Note 14, Share-Based Compensation. Income Taxes Deferred income tax liabilities and assets are determined based upon the differences between the financial reporting and tax basis of assets and liabilities and are measured using the tax rate and laws currently in effect. In accordance with FASB ASC Topic 740, Income Taxes, we evaluate our deferred income taxes to determine whether a valuation allowance should be established against the deferred tax assets or whether the valuation allowance should be reduced based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. See Note 13, Income Taxes, for additional detail.
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BUSINESS COMBINATIONS |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | Note 2 — BUSINESS COMBINATIONS Acquisition of APM On September 1, 2022, the Company completed the acquisition of the DSM Protective Materials business, including the Dyneema® brand, the World's Strongest Fiber™. The ultra-light specialty fiber is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection and outdoor sports. The acquired business is collectively referred to as APM, and the acquisition is referred to as the APM Acquisition. The APM Acquisition enhances Avient's materials offerings of composites and engineered fibers, and results are recognized within the Specialty Engineered Materials segment. Total consideration paid by the Company to complete the APM Acquisition was $1.4 billion, net of cash acquired. The APM Acquisition was accounted for under the acquisition method of accounting in accordance with FASB ASC Topic 805. As of December 31, 2023, the purchase accounting for the APM Acquisition was complete. Measurement period adjustments since our preliminary estimates reported in our third quarter 2022 Form 10-Q are reflected in the table below. Measurement period adjustments recorded to the Consolidated Statements of Income were not material for the year ended December 31, 2023.
Finite-lived intangible assets acquired have a useful life range of 17 to 20 years. Goodwill of $406.8 million resulting from the acquisition was recorded to the Specialty Engineered Materials segment. The goodwill recognized is primarily attributable to intangible assets that do not qualify for separate recognition and the deferred tax impact of applying purchase accounting. Goodwill is not deductible for tax purposes. Had the APM Acquisition occurred on January 1, 2021, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows:
The unaudited pro forma financial information has been calculated after applying our accounting policies and adjusting the historical results with pro forma adjustments that assume the APM Acquisition occurred on January 1, 2021. These unaudited pro forma results do not represent financial results realized, nor are they intended to be a projection of future results. The pro forma income from continuing operations before income taxes for the years ended December 31, 2022 and 2021 gives effect to intangible amortization from the purchase price allocation and changes to interest expense resulting from the financing transactions associated with the APM Acquisition and sale of the Distribution business.
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DISCONTINUED OPERATIONS |
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DISCONTINUED OPERATIONS | Note 3 — DISCONTINUED OPERATIONS On November 1, 2022, Avient sold its Distribution business to an affiliate of H.I.G. Capital for $950.0 million in cash consideration, subject to a customary working capital adjustment. Total proceeds were $935.5 million, of which $7.3 million was received in the year ended December 31, 2023. The results of the Distribution business are classified as discontinued operations for all years presented. The sale resulted in the recognition of an after-tax gain of $550.1 million, which is reflected within the line of the Consolidated Statements of Income. The following table summarizes the major line items constituting pretax income of discontinued operations associated with the Distribution business segment for the years ended December 31, 2023, 2022 and 2021.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | Note 4 — GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill by segment were as follows:
Indefinite and finite-lived intangible assets consisted of the following:
Amortization of finite-lived intangible assets included in continuing operations for the years ended December 31, 2023, 2022 and 2021 was $79.8 million, $63.6 million and $57.5 million, respectively. We expect finite-lived intangibles amortization expense for the next five years as follows:
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EMPLOYEE SEPARATION AND RESTRUCTURING COSTS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS | Note 5 — EMPLOYEE SEPARATION AND RESTRUCTURING COSTS We are engaged in a restructuring program associated with our integration of Clariant Color. These actions are expected to enable us to better serve customers, improve efficiency and deliver cost savings. We expect that the restructuring plan will be primarily implemented by the end of 2024 and anticipate that we will incur approximately $75.0 million of charges in connection with the restructuring plan. As of December 31, 2023, $60.3 million has been incurred. A summary of the Clariant Color integration restructuring is shown below:
Additional charges, primarily personnel reductions, taken throughout 2023 due to slowing global demand resulted in costs of $18.3 million recorded. Cash payments of $14.2 million were made in relation to these reductions throughout 2023. Total restructuring costs included in the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 are shown in the table below, and are primarily associated with the Clariant Color integration.
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FINANCING ARRANGEMENTS |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCING ARRANGEMENTS | Note 6 — FINANCING ARRANGEMENTS For each of the periods presented, total debt consisted of the following:
On August 16, 2023, the Company refinanced its senior secured term loans by amending its Credit Agreement (the Term Loan Amendment). Pursuant to the Term Loan Amendment, Avient incurred a new tranche of Senior Secured Term Loan due 2029 in an aggregate principal amount of $731.6 million. The proceeds, together with $102.3 million of cash on hand, were used to settle all of the outstanding principal of previous tranches of senior secured term loans. The amendment aligned the maturity date for all of the Company’s term loan debt to August 29, 2029. The amendment also aligned and reduced the interest rates per annum, which now are either (i) Adjusted Term SOFR (as defined in the Term Loan Amendment) plus 2.50%, or (ii) a Base Rate (as defined in the Term Loan Amendment) plus 1.50%. We recognized $1.9 million related to the write-off of unamortized issuance costs and discounts within Interest expense, net for the year ended December 31, 2023 as a result of the amendment. The Company maintains a senior secured revolving credit facility (the Revolving Credit Facility), which matures on October 26, 2026 and provides a maximum borrowing facility size of $500.0 million, subject to a borrowing base with advances against certain U.S. and international accounts receivable, inventory and other assets as specified in the agreement. As of December 31, 2023, we had no borrowings outstanding under our Revolving Credit Facility, which had remaining availability of $199.7 million. The agreements governing our Revolving Credit Facility and our senior secured term loan, and the indentures and credit agreements governing other debt contain a number of customary financial and restrictive covenants that, among other things, limit our ability to: sell or otherwise transfer assets, including in a spin-off, incur additional debt or liens, consolidate or merge with any entity or transfer or sell all or substantially all of our assets, pay dividends or make certain other restricted payments, make investments, enter into transactions with affiliates, create dividend or other payment restrictions with respect to subsidiaries, make capital investments and alter the business we conduct. As of December 31, 2023, we were in compliance with all covenants. The estimated fair value of Avient’s debt instruments at December 31, 2023 and 2022 was $2,113.7 million and $2,153.1 million, respectively, compared to carrying values of $2,080.0 million and $2,178.9 million as of December 31, 2023 and 2022, respectively. The fair value of Avient’s debt instruments was estimated using prevailing market interest rates on debt with similar creditworthiness, terms and maturities and represent Level 2 measurements within the fair value hierarchy. Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows:
Included in Interest expense, net for the years ended December 31, 2023, 2022 and 2021 was interest income of $49.8 million, $34.0 million, and $17.5 million, respectively. Total interest paid on debt, net of the impact of hedging (see Note 16, Derivatives and Hedging), was $106.3 million in 2023, $69.4 million in 2022 and $72.6 million in 2021.
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LEASING ARRANGEMENTS |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASING ARRANGEMENTS | Note 7 — LEASING ARRANGEMENTS We lease certain manufacturing facilities, warehouse space, machinery and equipment, vehicles and information technology equipment under operating leases. The majority of our leases are operating leases. Finance leases are immaterial to our consolidated financial statements. Operating lease assets and obligations are reflected within Operating lease assets, net, Current operating lease obligations, and Non-current operating lease obligations, respectively. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost from continued operations recognized within our Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 were as follows:
We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. We evaluate renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of December 31, 2023 and 2022 was 5.6 years and 5.7 years, respectively. The non-cash net increase in operating lease liabilities was $18.1 million, $13.8 million and $8.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. The discount rate implicit within our leases is generally not determinable and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for our leases is determined based on lease term and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2023 and 2022 were 5.0% and 4.8%, respectively. Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2023 are as follows: Maturity Analysis of Lease Liabilities:
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INVENTORIES, NET |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | Note 8 — INVENTORIES, NET Components of Inventories, net as of December 31, 2023 and 2022 are as follows:
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PROPERTY, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, NET | Note 9 — PROPERTY, NET Components of Property, net as of December 31, 2023 and 2022 are as follows:
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OTHER BALANCE SHEET LIABILITIES |
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Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER BALANCE SHEET LIABILITIES | Note 10 — OTHER BALANCE SHEET LIABILITIES Other current and non-current liabilities as of December 31, 2023 and 2022 consist of the following:
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EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | Note 11 — EMPLOYEE BENEFIT PLANS All U.S. qualified defined benefit pension plans are frozen, no longer accrue benefits and are closed to new participants. We have foreign pension plans that accrue benefits. The plans generally provide benefit payments using a formula that is based upon employee compensation and length of service. The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension and post-retirement health care benefit plans.
Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows:
As of December 31, 2023 and 2022, we had plans with total projected and accumulated benefit obligations in excess of the related plan assets as follows:
Weighted-average assumptions used to determine benefit obligations at December 31:
The following table summarizes the components of net periodic benefit cost or gain that was recognized during each of the years in the three-year period ended December 31, 2023.
In 2023, we recognized a $3.8 million mark-to-market gain that was primarily the result of actual asset returns that were higher than our assumed returns. Partially offsetting the higher asset returns was the decrease in our year end discount rate from 4.74% to 4.52%. In 2022, we recognized a $28.5 million mark-to-market loss that was primarily the result of actual asset returns that were lower than our assumed returns. Partially offsetting the lower asset returns was an increase in our year end discount rate from 2.69% to 4.74%. In 2021, we recognized a $9.4 million mark-to-market and curtailment loss that was primarily the result of actual asset returns that were lower than our assumed returns. Partially offsetting the lower asset returns was an increase in our year end discount rate from 2.47% to 2.69%. Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
*The mark-to-market component of net periodic costs is determined based on discount rates as of year-end and actual asset returns during the year. The expected long-term rate of return on pension assets was determined after considering the forward looking long-term asset returns by asset category and the expected investment portfolio mix. Our pension investment strategy is to diversify the portfolio among asset categories to enhance the portfolio’s risk-adjusted return as well as insulate it from exposure to changes in interest rates. Our asset mix considers the duration of plan liabilities, historical and expected returns of the investments, and the funded status of the plan. The pension asset allocation is reviewed and actively managed based on the funded status of the plan. Based on the current funded status of the plan, our pension asset investment allocation guidelines are weighted heavily to fixed income securities. The plan keeps a minimal amount of cash available to fund benefit payments. See the following table for the plans' asset allocation. The fair values of pension plan assets at December 31, 2023 and 2022, by asset category, are as follows:
Pension Plan Assets Other assets are primarily insurance contracts for international plans. The U.S. equity common collective funds are predominately invested in equity securities actively traded in public markets. The international and global equity common collective funds have broadly diversified investments across economic sectors and focus on low volatility, long-term investments. The fixed income common collective funds consist primarily of publicly traded United States fixed interest obligations (principally investment grade bonds and government securities). Level 1 assets are valued based on quoted market prices. Level 2 investments are valued based on quoted market prices and/or other market data for the same or comparable instruments and transactions of the underlying fixed income investments. The insurance contracts included in the other asset category are valued at the transacted price. Common collective funds are valued at the net asset value of units held by the fund at year-end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The estimated future benefit payments for our pension and health care plans are as follows:
We currently estimate that employer contributions will be $7.6 million to all qualified and non-qualified pension plans and $0.5 million to all healthcare benefit plans in 2024. The Company sponsors various voluntary retirement savings plans (RSP). Under the provisions of the plans, eligible employees receive defined Company contributions and are eligible for Company matching contributions based on their eligible earnings contributed to the plan. In addition, we may make discretionary contributions to the plans for eligible employees based on a specific percentage of each employee’s compensation. Following are our contributions to the RSP:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | Note 12 — COMMITMENTS AND CONTINGENCIES We have been notified by federal and state environmental agencies and by private parties that we may be a potentially responsible party (PRP) in connection with the environmental investigation and remediation of certain sites. While government agencies frequently assert that PRPs are jointly and severally liable at these sites, in our experience, the interim and final allocations of liability costs are generally made based on the relative contribution of waste. We may also initiate corrective and preventive environmental projects of our own to support safe and lawful activities at our operations. We believe that compliance with current governmental regulations at all levels will not have a material adverse effect on our financial position, results of operations or cash flows. In September 2007, the United States District Court for the Western District of Kentucky (Court) in the case of Westlake Vinyls, Inc. v. Goodrich Corporation, et al., held that Avient must pay the remediation costs at the former Goodrich Corporation Calvert City facility (now largely owned and operated by Westlake Vinyls, Inc. (Westlake Vinyls)), together with certain defense costs of Goodrich Corporation. The rulings also provided that Avient can seek indemnification for contamination attributable to Westlake Vinyls. Following the rulings, the parties to the litigation agreed to settle all claims regarding past environmental costs incurred at the site. The settlement agreement provides a mechanism to pursue allocation of future remediation costs at the Calvert City site to Westlake Vinyls. We continue to pursue available insurance coverage related to this matter and are in current litigation to recover previously incurred costs. It is reasonably possible that insurance recoveries could result in a material benefit to our Consolidated Statements of Income in a future period, though the amounts, if any, nor the timing are currently known. The environmental obligation at the site arose as a result of an agreement between The B.F. Goodrich Company (n/k/a Goodrich Corporation) and our predecessor, The Geon Company, at the time of the initial public offering in 1993. Under the agreement, The Geon Company agreed to indemnify Goodrich Corporation for certain environmental costs at the site. Neither Avient nor The Geon Company ever operated the facility. Since 2009, Avient, along with respondents Westlake Vinyls and Goodrich Corporation, has worked with the United States Environmental Protection Agency (USEPA) to address the remedial activities at the site. The USEPA issued its Record of Decision (ROD) in September 2018. In April 2019, the respondents signed an Administrative Settlement Agreement and Order on Consent with the USEPA to conduct the remedial actions at the site. In February 2020, three companies signed the agreed Consent Decree and remedial action Work Plan, which received Federal Court approval in January 2021. In August 2023, the Company received construction bids for components of the remedial action and we updated our accruals to align to the selected bid costs. We are currently in the process of remedial action for a portion of the site, while continuing to progress through remedial design for other portions of the site. As we have progressed through remedial design and action, additional charges have been recognized to reflect the actual costs of completion. As of December 31, 2023, we had accrued $148.9 million for this matter. Total environmental accruals of $157.2 million and $118.3 million are reflected within and Other non-current liabilities in our Consolidated Balance Sheets as of December 31, 2023 and December 31, 2022, respectively. These undiscounted accruals represent our best estimate of probable future costs that we can reasonably estimate, based upon currently available information and technology and how the remedy will be implemented. It is reasonably possible that we could incur additional costs in excess of the amount accrued, which could be material to our Consolidated Statements of Income. However, such additional costs cannot currently be estimated as they are dependent upon the results of future testing and findings during the execution of remedial design and remedial action, the ultimate remedial action undertaken, changes in regulations, technology development, new information, newly discovered conditions and other factors that are not currently known. The following table details the changes in the environmental accrued liabilities:
The environmental expenses noted in the table above, primarily related to the ongoing remedial action at Calvert City, are included in Cost of sales as are insurance recoveries received for previously incurred environmental costs. We received insurance recoveries of $1.7 million, $8.3 million, and $4.5 million in 2023, 2022 and 2021, respectively. Such insurance recoveries are recognized as income when realization of the proceeds is deemed as probable. Avient is subject to a broad range of claims, administrative and legal proceedings such as lawsuits that relate to contractual allegations, tax audits, product claims, personal injuries, and employment related matters. Although it is not possible to predict with certainty the outcome or cost of these matters, the Company believes our current reserves are appropriate and these matters will not have a material adverse effect on the consolidated financial statements.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | Note 13 — INCOME TAXES The Company is subject to taxation in the U.S. and numerous international jurisdictions. In determining the effective income tax rate, the Company analyzes various factors, including annual earnings, the laws of taxing jurisdictions in which the earnings were generated, the impact of state and local income taxes, the ability to use tax credits, net operating loss carryforwards, and available planning alternatives. Discrete items, including the effect of changes in tax laws, statutory tax rates, and valuation allowances or other non-recurring tax adjustments are reflected in the period in which they occur as an addition to or reduction from, the tax provision. We recognize tax on global intangible low-taxed income (GILTI) and the deduction of foreign-derived intangible income (FDII) as a period expense in the period in which the tax is incurred. In January 2019, the Organization for Economic Co-operation and Development (OECD) announced further work in continuation of its Base Erosion and Profit Shifting project, focusing on two "pillars." Pillar One provides a framework for the reallocation of certain residual profits of multinational enterprises to market jurisdictions where goods or services are used or consumed. Pillar Two consists of two interrelated rules referred to as Global Anti-Base Erosion ("GloBe") Rules, which operate to impose a minimum tax rate of 15% calculated on a jurisdictional basis for companies with revenue above €750 million. Certain European jurisdictions are in the process of enacting legislation to adopt GloBE rules with effective dates beginning in 2024. As a result of the transition rules, Avient does not currently expect there to be a material impact to its financial statements. The Company will continue to monitor legislative and regulatory developments in this area. Income from continuing operations, before income taxes is summarized below based on the geographic location of the operation to which such earnings are attributable. Income (loss) from continuing operations, before income taxes consists of the following:
A summary of income tax expense (benefit) from continuing operations is as follows:
A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant reconciling items is included below for the years ended December 31, 2023, 2022 and 2021.
The effective tax rates for all periods differed from the applicable U.S. federal income tax rate as a result of permanent items, state and local income taxes, differences in international tax rates and certain other items. Permanent items primarily consist of income or expense not taxable or deductible. Significant or other items impacting the effective income tax rate are described below. 2023 Significant items The consolidated effective income tax rate from continuing operations was 12.6%, which was lower than the U.S. federal rate of 21%. This lower rate was primarily driven by the recognition of tax benefits of 7.5% associated with tax impairments of investments in affiliates, driven in part from European restructuring actions. Further, we recognized a 5.4% tax benefit from federal and state capital losses associated with an international affiliate's tax status change in 2022. Finally, we recognized tax benefits from the reduction of uncertain tax positions as well as the U.S. R&D tax credit, which reduced the tax rate, 5.3% and 3.7%, respectively. Partially offsetting these benefits were non-deductible foreign interest, 5.3%, tax associated with foreign income repatriation, 3.9%, and an increase of our valuation allowance which impacted the rate 3.6%. 2022 Significant items We recognized a net tax benefit of 88.1% in 2022 from federal and state capital loss deductions associated with an international affiliate's tax status change. We also recognized a tax benefit of 5.5% associated with earnings in foreign jurisdictions with statutory rates below the U.S. federal income tax rate. Further, the state and local tax benefit was 4.0%, driven by a U.S. tax loss. Offsetting these benefits in 2022 were the tax impact of international permanent items of 12.1%, which primarily included an unfavorable tax effect of withholding taxes. We also increased our valuation allowance, which impacted the rate 15.4%, for deferred tax assets that are unlikely to create income tax benefits before their expiration. Further, uncertain tax positions increased, which impacted the rate 12.9%, primarily associated with European restructuring charges which are not expected to realize and a tax effect of non-deductible foreign interest of 2.9%. 2021 Significant items For 2021, changes in valuation allowances, which impacted the rate 2.6%, related to losses in jurisdictions for which we do not expect to be able to realize the associated tax benefit. We also recognized uncertain tax positions, which impacted the rate 1.0%, primarily associated with European restructuring actions taken in 2021. Components of our deferred tax assets (liabilities) as of December 31, 2023 and 2022 were as follows:
As of December 31, 2023, we had gross state net operating loss carryforwards of $23.6 million that expire between 2024 and 2037 or that have indefinite carryforward periods. Various international subsidiaries have gross net operating loss carryforwards totaling $270.7 million that expire between 2024 and 2040 or that have indefinite carryforward periods. As of December 31, 2023, no tax provision has been made on approximately $89.8 million of undistributed earnings of certain non-U.S. subsidiaries as these amounts continue to be indefinitely reinvested consistent with our policy. Additionally, no deferred income taxes were recorded on taxable outside basis differences as it was not practicable to determine the tax provision impact. Tax on certain foreign earnings as of December 31, 2023 and 2022 is included in the Other, net deferred tax liabilities line in the table above are $9.2 million and $7.4 million, respectively. We made worldwide income tax payments of $156.4 million, $109.7 million and $102.1 million in 2023, 2022, and 2021, respectively. We received refunds of $5.2 million, $29.4 million and $12.6 million in 2023, 2022, and 2021, respectively. The Company records tax provisions for uncertain tax positions in accordance with FASB ASC Topic 740, Income Taxes. A reconciliation of unrecognized tax benefits is as follows:
We recognize interest and penalties related to uncertain tax positions in the tax provision. As of December 31, 2023 and 2022, we had $2.5 million and $1.5 million accrued for interest and penalties, respectively. Expected tax settlements during the next twelve months are expected to be immaterial to our unrecognized tax benefit accruals. If all unrecognized tax benefits were recognized, the net impact on the tax provision would be a benefit of $16.3 million. The Company is currently being audited by U.S. federal, state and international taxing jurisdictions. With limited exceptions, we are no longer subject to U.S. federal, state and international tax examinations for periods preceding 2017.
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SHARE-BASED COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | Note 14 — SHARE-BASED COMPENSATION Share-based compensation cost recognized in the accompanying Consolidated Statements of Income includes compensation cost for share-based payment awards based on the grant date fair value estimated in accordance with the provision of FASB ASC Topic 718, Compensation — Stock Compensation. Share-based compensation expense is based on awards expected to vest and therefore has been reduced for estimated forfeitures. Equity and Performance Incentive Plans In May 2020, our shareholders approved the Avient Corporation 2020 Equity and Incentive Compensation Plan (2020 Plan). This plan reserved 2.5 million common shares for the award of a variety of share-based compensation alternatives, including non-qualified stock options, incentive stock options, restricted stock, restricted stock units (RSUs), performance shares, performance units and stock appreciation rights (SARs). It is anticipated that all share-based grants and awards that are earned and exercised will be issued from Avient common shares that are held in treasury. In May 2023, our shareholders voted to approve an amendment and restatement of the 2020 Plan (Amended 2020 Plan). The Amended 2020 Plan increases the number of common shares available for awards under the 2020 plan by 2.5 million common shares. Share-based compensation is included in Selling and administrative expense. A summary of compensation expense by type of award follows:
Stock Appreciation Rights During the years ended December 31, 2023, 2022 and 2021, the total number of SARs granted was 0.5 million, 0.4 million and 0.5 million, respectively. Awards vest in one-third increments upon the later of the attainment of time-based vesting over a three-year service period and stock price targets. Awards granted in 2023, 2022 and 2021 are subject to an appreciation cap of 200% of the base price. SARs have contractual terms of ten years from the date of the grant. The SARs were valued using a Monte Carlo simulation method as the vesting is dependent on the achievement of certain stock price targets. The SARs have time and market-based vesting conditions but vest no earlier than their three year graded vesting schedule. The expected term is an output from the Monte Carlo model and is derived from employee exercise assumptions that are based on Avient historical exercise experience. The expected volatility was determined based on the average weekly volatility for our common shares for the contractual life of the awards. The expected dividend assumption was determined based upon Avient's dividend yield at the time of grant. The risk-free rate of return was based on available yields on U.S. Treasury bills of the same duration as the contractual life of the awards. Forfeitures were estimated at 3% per year based on our historical experience. The following is a summary of the weighted average assumptions related to the grants issued during 2023, 2022 and 2021:
A summary of SAR activity for 2023 is presented below:
The total intrinsic value of SARs exercised during 2023, 2022 and 2021 was $0.7 million, $2.4 million and $22.9 million, respectively. As of December 31, 2023, there was $3.7 million of total unrecognized compensation cost related to SARs, which is expected to be recognized over the weighted average remaining vesting period of 23 months. Restricted Stock Units RSUs represent contingent rights to receive one common share at a future date provided certain vesting criteria are met. During 2023, 2022 and 2021, the total number of RSUs granted were 0.3 million, 0.2 million and 0.2 million, respectively. In 2023, 0.3 million RSUs vested. These RSUs, which generally vest on the third anniversary of the grant date, were granted to executives and other key employees. Compensation expense is measured on the grant date using the quoted market price of our common shares and is recognized on a straight-line basis over the requisite service period. As of December 31, 2023, 0.6 million RSUs remain unvested with a weighted-average grant date fair value of $42.92. Unrecognized compensation cost for RSUs at December 31, 2023 was $12.1 million, which is expected to be recognized over the weighted average remaining vesting period of 27 months.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | Note 15 — SEGMENT INFORMATION Operating income is the primary measure that is reported to our chief operating decision maker (CODM) for purposes of allocating resources to the segments and assessing their performance. Operating income at the segment level does not include: corporate general and administrative expenses that are not allocated to segments; intersegment sales and profit eliminations; charges related to specific strategic initiatives such as the consolidation of operations; restructuring activities, including employee separation costs resulting from personnel reduction programs, plant closure and phase-in costs; executive separation agreements; share-based compensation costs; asset impairments; environmental remediation costs, along with related gains from insurance recoveries, and other liabilities for facilities no longer owned or closed in prior year; actuarial gains and losses associated with our pension and other post-retirement benefit plans; and certain other items that are not included in the measure of segment profit or loss that is reported to and reviewed by our CODM. These costs are included in Corporate. Segment assets are primarily customer receivables, inventories, net property, plant and equipment, intangible assets and goodwill. Corporate assets and liabilities primarily include cash, debt, pension and other employee benefits, environmental liabilities, assets held for sale, and other unallocated corporate assets and liabilities. The accounting policies of each segment are consistent with those described in Note 1, Description of Business and Summary of Significant Accounting Policies. Avient has two reportable segments: (1) Color, Additives and Inks and (2) Specialty Engineered Materials. The following is a description of each reportable segment. Color, Additives and Inks Color, Additives and Inks is a leading formulator of specialized custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks. Color and additive solutions include an innovative array of colors, special effects and performance-enhancing and sustainable solutions. When combined with polymer resins, our solutions help customers achieve differentiated specialized colors and effects targeted at the demands of today’s highly design-oriented consumer and industrial end markets. Our additive concentrates encompass a wide variety of performance and process enhancing characteristics and are commonly categorized by the function that they perform, including UV light stabilization and blocking, antimicrobial, anti-static, blowing or foaming, antioxidant, lubricant, oxygen and visible light blocking and productivity enhancement. Of growing importance is our portfolio of additives that enable our customers to achieve their sustainability goals, regarding improved recyclability, reduced energy use, light weighting, and renewable energy applications. Our colorant and additives concentrates are used in a broad range of polymers, including those used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable markets. We also provide custom-formulated liquid systems that meet a variety of customer needs and chemistries, including polyester, vinyl, natural rubber and latex, polyurethane and silicone. Our offerings also include proprietary inks and latexes for diversified markets such as recreational and athletic apparel, construction and filtration, outdoor furniture and healthcare. Our liquid polymer coatings and additives are largely based on vinyl and are used in a variety of markets, including consumer, packaging, healthcare, industrial, transportation, building and construction, wire and cable, textiles and appliances. Color, Additives and Inks has manufacturing, sales and service facilities located throughout North America, South America, Asia, Europe, Middle East, and Africa. Specialty Engineered Materials Specialty Engineered Materials is a leading formulator of specialty and sustainable polymer formulations, services and solutions for designers, assemblers and processors of thermoplastic materials across a wide variety of markets and end-use applications. Our product portfolio, which we believe to be one of the most diverse in our industry, includes specialty formulated high-performance polymer materials that are manufactured using thermoplastic resins and elastomers, which are then combined with advanced polymer additives, reinforcement, filler, colorant and/or biomaterial technologies. We also have what we believe is the broadest composite platform of solutions, which include a full range of thermoset and thermoplastic composites, reinforced with glass, carbon, aramid, and ultrahigh molecular weight polyethylene fibers. These solutions meet a wide variety of unique customer requirements for sustainability, in particular light weighting. Our technical and market expertise enables us to expand the performance range and structural properties of traditional engineering-grade thermoplastic resins to meet evolving customer needs. Specialty Engineered Materials has manufacturing, sales and service facilities located throughout North America, Europe, and Asia. Our product development and application reach is further enhanced by the capabilities of our Innovation Centers in the United States, Germany, The Netherlands and China, which produce and evaluate prototype and sample parts to help assess end-use performance and guide product development. Our manufacturing capabilities are targeted at meeting our customers’ demand for speed, flexibility and critical quality. On September 1, 2022, the Company completed the acquisition of APM, including the Dyneema® brand, the World's Strongest Fiber™. The ultra-light specialty fiber is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection and outdoor sports. The APM Acquisition enhances Avient's materials offerings of composites and engineered fibers, and results are recognized within the Specialty Engineered Materials segment. Financial information by reportable segment is as follows:
Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and the majority of our assets are located in these same geographic areas. The following is a summary of sales and long-lived assets based on the geographic areas where the sales originated and where the assets are located:
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DERIVATIVES AND HEDGING |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING | Note 16 — DERIVATIVES AND HEDGING We are exposed to market risks, such as changes in foreign currency exchange rates and interest rates. To manage the volatility related to these exposures we may enter into various derivative transactions. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, we assess both at inception and at least quarterly thereafter, whether the financial instruments used in the hedging transaction are effective at offsetting changes in either the fair values or cash flows of the underlying exposures. In accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), that ongoing assessment will be done qualitatively for highly effective relationships. Net Investment Hedge As a means of mitigating the impact of currency fluctuations on our euro investments in foreign entities, we have executed cross currency swaps, in which we pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars related to our future obligations to exchange euros for U.S. dollars. We currently hold cross currency swaps with a combined notional amount of €1,467.2 million, maturing in May 2025 and €900.0 million maturing in August 2027. These cross currency swaps effectively convert a portion of our U.S. dollar denominated fixed-rate debt to euro denominated fixed-rate debt. Included in Interest expense, net within the Consolidated Statements of Income are benefits of $38.8 million and $30.3 million for the years ended December 31, 2023 and 2022, respectively, related to net interest payments received from counterparties. We received cash proceeds of $132.1 million related to the settlement of prior cross-currency swap positions during the year ended December 31, 2022. We designated the cross currency swaps as net investment hedges of our net investment in our European operations under ASU 2017-12 and applied the spot method to these hedges. The changes in fair value of the derivative instruments that are designated and qualify as hedges of net investments in foreign operations are recognized within Accumulated Other Comprehensive Income (Loss) (AOCI) to offset the changes in the values of the net investment being hedged. For the years ended December 31, 2023 and 2022, a loss of $96.1 million and a gain of $21.6 million, respectively, were recognized within translation adjustments in AOCI, net of tax. Derivatives Not Initially Designated for Hedge Accounting On April 20, 2022, we executed forward starting cross currency swaps, pursuant to which we will pay fixed-rate interest in euros and receive fixed-rate interest in U.S. dollars with a combined notional amount of €900.0 million, as a means of mitigating the impact of currency fluctuations on our future euro investments in foreign entities related to the APM Acquisition. Additionally, we entered into foreign currency forward contracts with an aggregate notional amount of €350 million, to mitigate the impact of currency fluctuations on the euro-denominated purchase price for the APM Acquisition. In conjunction with the closing of the APM Acquisition, we completed the initial exchange of U.S. dollars for euros as part of the cross-currency swaps and designated these instruments as a net investment hedge against the acquired euro net assets of APM. Changes in the fair value of the cross-currency swaps prior to designation as a net investment hedge and foreign exchange forward contracts were recorded in earnings directly. Beginning September 1, 2022, changes in the fair value of these instruments are recognized in AOCI and offset the changes in our euro net assets. The amount of expense recognized within Other income, net in our Consolidated Statements of Income was $37.3 million for the year ended December 31, 2022, which resulted in a $38.8 million cash payment during 2022. All of our derivative assets and liabilities measured at fair value are classified as Level 2 within the fair value hierarchy. We determine the fair value of our derivatives based on valuation methods, which project future cash flows and discount the future amounts present value using market based observable inputs, including interest rate curves and foreign currency rates. The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets as of December 31, 2023 and 2022 is as follows:
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DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
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Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation and Basis Of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Avient and its subsidiaries. All majority-owned affiliates over which we have control are consolidated. Transactions with related parties, including joint ventures, are in the ordinary course of business. Historical information has been retrospectively adjusted to reflect the classification of discontinued operations.
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Use of Estimates | Use of Estimates Preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and notes. Actual results could differ from these estimates.
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Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments purchased with a maturity of less than three months to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value.
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We evaluate the collectability of receivables based on a combination of factors, each of which are adjusted if specific circumstances change. We reserve for amounts determined to be uncollectible based on a specific customer’s inability to meet its financial obligation to us. We also record a general reserve based on the age of receivables past due, current conditions and forecasted information, the credit risk of specific customers, economic conditions and historical experience. In estimating the allowance, we take into consideration the existence of credit insurance.
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Inventories | Inventories Raw materials and finished goods are carried at lower of cost or market using either the weighted average cost or the first-in, first-out (FIFO) method.
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Long-lived Assets | Long-lived Assets Property, plant and equipment is carried at cost, net of depreciation and amortization that is computed using the straight-line method over the estimated useful lives of the assets, which generally ranges from to 15 years for machinery and equipment and up to 40 years for buildings. We depreciate certain assets associated with closing manufacturing locations over a shortened life (through the cease-use date). We expense repair and maintenance costs as incurred. We capitalize replacements and improvements that increase the estimated useful life of an asset. We retain fully depreciated assets in property and accumulated depreciation accounts until we remove them from service. In the case of sale, retirement or disposal, the asset cost and related accumulated depreciation balance is removed from the respective account, and the resulting net amount, less any proceeds, is included as a component of income from continuing operations in the accompanying Consolidated Statements of Income.
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Leases | We account for operating and finance leases under the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842.
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Finite-lived Intangible Assets | Finite-lived intangible assets, which consist primarily of customer relationships, patents and technology are amortized over their estimated useful lives. The useful lives range up to 25 years.
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Impairment or Disposal of Long-Lived Assets | We assess the recoverability of long-lived assets when events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected future undiscounted cash flows associated with the asset. We measure the amount of impairment of long-lived assets as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined based on projected discounted future cash flows or appraised values. |
Goodwill and Indefinite Lived Intangible Assets | Goodwill and Indefinite Lived Intangible Assets In accordance with the provisions of FASB ASC Topic 350, Intangibles — Goodwill and Other, we assess the fair value of goodwill on an annual basis or at an interim date if potential impairment indicators are present. Goodwill is the excess of the purchase price paid over the fair value of the net assets of the acquired business. Goodwill is tested for impairment, quantitatively or qualitatively, at the reporting unit level. The Company's reporting units are at a level below the Company's reportable operating segments. Goodwill is allocated to the reporting units based on the estimated fair value at the date of acquisition. Our annual measurement date for testing impairment of goodwill and indefinite-lived intangible assets is October 1. We test our goodwill either quantitatively or qualitatively for impairment. For our quantitative approach, we use an income approach to estimate the fair value of our reporting units. The income approach uses a reporting unit’s projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs, and estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements. We validate our estimates of fair value under the income approach by considering the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. Indefinite-lived intangible assets primarily consist of the Dyneema, GLS, ColorMatrix, Gordon Composites, and Fiber-Line trade names. Indefinite-lived intangible assets are tested, quantitatively or qualitatively, for impairment annually at the same time we test goodwill for impairment. For our quantitative approach, the implied fair value of indefinite-lived intangible assets is determined based on significant unobservable inputs, as summarized below. The fair value of the trade names is calculated using a “relief from royalty” methodology. This approach involves two steps: (1) estimating reasonable royalty rates for the trade name and (2) applying this royalty rate to a net sales stream and discounting the resulting cash flows to determine fair value using a weighted-average cost of capital that is determined based on current market conditions. This fair value is then compared with the carrying value of the trade name. A qualitative approach for both goodwill and indefinite-lived intangible assets can be performed if the last quantitative test exceeded certain thresholds. During our qualitative approach, we assess whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we determine it is more likely than not that the fair value is less than carrying value, a quantitative impairment test is performed for each asset, as described above.
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Litigation Reserves | Litigation Reserves FASB ASC Topic 450, Contingencies, requires that we accrue for loss contingencies associated with outstanding litigation, claims and assessments for which management has determined it is probable that a loss contingency exists and the amount of loss can be reasonably estimated. We recognize expense associated with professional fees related to litigation claims and assessments as incurred.
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Derivative Financial Instruments | Derivative Financial Instruments FASB ASC Topic 815, Derivative and Hedging, requires that all derivative financial instruments, such as foreign exchange contracts, be recognized in the financial statements and measured at fair value, regardless of the purpose or intent in holding them. We are exposed to foreign currency changes and to changes in cash flows due to changes in our contractually specified interest rates (e.g., SOFR) in the normal course of business. We have established policies and procedures that manage this exposure through the use of financial instruments. By policy, we do not enter into these instruments for trading purposes or speculation. We formally assess, designate and document, as a hedge of an underlying exposure, the qualifying derivative instrument that will be accounted for as an accounting hedge at inception. Additionally, in accordance with ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, we assess at inception whether the financial instruments used in the hedging transaction are highly effective at offsetting changes in either the fair values or cash flows of the underlying exposures. If highly effective, any subsequent test may be done qualitatively. The net interest payments accrued each month for effective instruments designated as a hedge are reflected in net income as adjustments of interest expense and the remaining change in the fair value of the derivatives is recorded as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). Instruments not designated as hedges are adjusted to fair value at each period end, with the resulting gains and losses recognized in the accompanying Consolidated Statements of Income immediately.
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Pension and Other Post-Retirement Plans | Pension and Other Post-retirement Plans We account for our pensions and other post-retirement benefits in accordance with FASB ASC Topic 715, Compensation — Retirement Benefits. We immediately recognize actuarial gains and losses in our operating results in the year in which the gains or losses occur.
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Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Foreign Currency Translation | Foreign Currency Translation Revenues and expenses are translated at average currency exchange rates during the related period. Assets and liabilities of foreign subsidiaries are translated using the exchange rate at the end of the period. The resulting translation adjustments are recorded as accumulated other comprehensive income or loss. Gains and losses resulting from foreign currency transactions, including intercompany transactions that are not considered long-term investments, are included in Other income (expense), net.
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Revenue Recognition | Revenue Recognition We recognize revenue once control of the product is transferred to the customer, which typically occurs when products are shipped from our facilities.
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Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in Cost of sales.
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Research and Development Expense | Research and Development Expense Research and development costs of $90.3 million in 2023, $84.9 million in 2022 and $83.2 million in 2021 are charged to expense as incurred.
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Environmental Costs | Environmental Costs We expense costs that are associated with managing hazardous substances and pollution in ongoing operations on a current basis. Costs associated with environmental contamination are accrued when it becomes probable that a liability has been incurred and our proportionate share of the cost can be reasonably estimated. Any such provision is recognized using the Company's best estimate of the amount of loss incurred, or at the lower end of an estimated range, when a single best estimate is not determinable. In some cases, the Company recovers a portion of the costs relating to these obligations from insurers or other third parties, and the recovery is recognized when realization of the proceeds is deemed as probable.
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Share-Based Compensation | Share-Based Compensation We account for share-based compensation under the provisions of FASB ASC Topic 718, Compensation - Stock Compensation, which requires us to estimate the fair value of share-based awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the accompanying Consolidated Statements of Income.
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Income Taxes | Income Taxes Deferred income tax liabilities and assets are determined based upon the differences between the financial reporting and tax basis of assets and liabilities and are measured using the tax rate and laws currently in effect. In accordance with FASB ASC Topic 740, Income Taxes, we evaluate our deferred income taxes to determine whether a valuation allowance should be established against the deferred tax assets or whether the valuation allowance should be reduced based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard.
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DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) in 2023, 2022 and 2021 were as follows:
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BUSINESS COMBINATIONS (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation |
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Schedule of Pro Forma Information Sales and Income from Continuing Operations | Had the APM Acquisition occurred on January 1, 2021, sales and income from continuing operations before income taxes on a pro forma basis would have been as follows:
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DISCONTINUED OPERATIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The following table summarizes the major line items constituting pretax income of discontinued operations associated with the Distribution business segment for the years ended December 31, 2023, 2022 and 2021.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill and Changes in Carrying Amount of Goodwill by Operating Segment | Changes in the carrying amount of goodwill by segment were as follows:
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Schedule of Indefinite-Lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following:
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Schedule of Finite-lived Intangible Assets | Indefinite and finite-lived intangible assets consisted of the following:
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | We expect finite-lived intangibles amortization expense for the next five years as follows:
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EMPLOYEE SEPARATION AND RESTRUCTURING COSTS (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Integration Restructuring | A summary of the Clariant Color integration restructuring is shown below:
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Schedule of Restructuring Charges Income Statement Line Item and by Activity and Expected to Be Incurred | Total restructuring costs included in the Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 are shown in the table below, and are primarily associated with the Clariant Color integration.
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FINANCING ARRANGEMENTS (Tables) |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Debt | For each of the periods presented, total debt consisted of the following:
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Schedule of Maturities of Long-term Debt | Aggregate maturities of the principal amount of debt for the next five years and thereafter are as follows:
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LEASING ARRANGEMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost | The components of lease cost from continued operations recognized within our Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 were as follows:
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Schedule of Maturity of Lease Liabilities | Future minimum lease payments under non-cancelable operating leases with initial lease terms longer than one year as of December 31, 2023 are as follows: Maturity Analysis of Lease Liabilities:
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INVENTORIES, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Inventories, Net | Components of Inventories, net as of December 31, 2023 and 2022 are as follows:
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PROPERTY, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Property, Net | Components of Property, net as of December 31, 2023 and 2022 are as follows:
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OTHER BALANCE SHEET LIABILITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Components Of Other Liabilities | Other current and non-current liabilities as of December 31, 2023 and 2022 consist of the following:
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EMPLOYEE BENEFIT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Benefit Obligation, Change in Plan Assets and Components of Funded Status | The following tables present the change in benefit obligation, change in plan assets and components of funded status for defined benefit pension and post-retirement health care benefit plans.
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Schedule of Amounts Included In Consolidated Balance Sheets | Amounts included in the accompanying Consolidated Balance Sheets as of December 31 are as follows:
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Schedule of Projected and Accumulated Benefit Obligations in Excess of Plan Assets | As of December 31, 2023 and 2022, we had plans with total projected and accumulated benefit obligations in excess of the related plan assets as follows:
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Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost and Benefit Obligation | Weighted-average assumptions used to determine benefit obligations at December 31:
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
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Schedule of Components of Net Period Benefit Cost or Gain | The following table summarizes the components of net periodic benefit cost or gain that was recognized during each of the years in the three-year period ended December 31, 2023.
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Schedule of Fair Values of Pension Plan Assets | The fair values of pension plan assets at December 31, 2023 and 2022, by asset category, are as follows:
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Schedule of Estimated Future Benefit Payments | The estimated future benefit payments for our pension and health care plans are as follows:
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Schedule of Contributions to the Retirement Savings Plan | Following are our contributions to the RSP:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Exit Costs by Cost | The following table details the changes in the environmental accrued liabilities:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income (Loss) Before Income Taxes | Income (loss) from continuing operations, before income taxes consists of the following:
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Schedule of Income Tax Expense (Benefit) | A summary of income tax expense (benefit) from continuing operations is as follows:
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Schedule of Reconciliation Between Effective Income Tax Rate and U.S. Statutory Rate | A reconciliation of the applicable U.S. federal statutory tax rate to the consolidated effective income tax rate from continuing operations along with a description of significant reconciling items is included below for the years ended December 31, 2023, 2022 and 2021.
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Schedule of Components of Deferred Tax Assets and (Liabilities) | Components of our deferred tax assets (liabilities) as of December 31, 2023 and 2022 were as follows:
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Schedule of Changes in Unrecognized Tax Benefits |
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SHARE-BASED COMPENSATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compensation Expense | Share-based compensation is included in Selling and administrative expense. A summary of compensation expense by type of award follows:
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Schedule of Assumptions Related To Grants | The following is a summary of the weighted average assumptions related to the grants issued during 2023, 2022 and 2021:
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Schedule of Stock Appreciation Rights | A summary of SAR activity for 2023 is presented below:
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SEGMENT INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Information by Reportable Segment | Financial information by reportable segment is as follows:
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Schedule of Revenue and Long-Lived Assets | Our sales are primarily to customers in the United States, Canada, Mexico, Europe, South America and Asia, and the majority of our assets are located in these same geographic areas. The following is a summary of sales and long-lived assets based on the geographic areas where the sales originated and where the assets are located:
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DERIVATIVES AND HEDGING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative financial instruments recognized in the Consolidated Balance Sheets as of December 31, 2023 and 2022 is as follows:
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DESCRIPTION Of BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023
USD ($)
segment
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
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Accounting Policies [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Inventory allowance | $ 34,500,000 | $ 32,100,000 | |
Impairment of long-lived assets | 0 | 0 | $ 0 |
Research and development costs | $ 90,300,000 | $ 84,900,000 | $ 83,200,000 |
Minimum | Machinery and equipment | |||
Accounting Policies [Line Items] | |||
Property and equipment useful lives | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Finite-lived intangible asset useful life | 25 years | ||
Maximum | Machinery and equipment | |||
Accounting Policies [Line Items] | |||
Property and equipment useful lives | 15 years | ||
Maximum | Buildings | |||
Accounting Policies [Line Items] | |||
Property and equipment useful lives | 40 years |
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Sep. 01, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||||
Business acquisitions, net of cash acquired | $ 0.0 | $ 1,426.1 | $ 47.6 | |
Goodwill | $ 1,719.3 | $ 1,671.9 | $ 1,284.8 | |
Maximum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset, weighted average lives (years) | 25 years | |||
APM Acquisition | ||||
Business Acquisition [Line Items] | ||||
Business acquisitions, net of cash acquired | $ 1,400.0 | |||
Goodwill | $ 277.1 | $ 406.8 | ||
APM Acquisition | Minimum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset, weighted average lives (years) | 17 years | |||
APM Acquisition | Maximum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset, weighted average lives (years) | 20 years |
BUSINESS COMBINATIONS - Schedule of Pro Forma Information Sales and Income from Continuing Operations (Details) - APM Acquisition - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||
Sales | $ 3,653.0 | $ 3,712.0 |
Income from continuing operations before income taxes | $ 162.0 | $ 133.5 |
DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | 24 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2023 |
Nov. 01, 2022 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from divestiture | $ 7.3 | $ 928.2 | $ 0.0 | ||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | (Loss) income from discontinued operations, net of income taxes | ||||
Distribution Business | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | $ 950.0 | ||||
Net proceeds from divestiture | $ 7.3 | $ 935.5 | |||
Gain (loss) on sale of business, net of tax | $ 550.1 |
DISCONTINUED OPERATIONS - Schedule of Discontinued Operations (Details) - Distribution Business - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Statement Information | |||
Sales | $ 0.0 | $ 1,331.7 | $ 1,503.3 |
Cost of sales | 0.0 | (1,191.9) | (1,347.5) |
Selling and administrative expense | (0.9) | (41.9) | (54.7) |
Pre-tax gain on sale | 0.0 | 717.0 | 0.0 |
Income from discontinued operations before income taxes | (0.9) | 814.9 | 101.1 |
Income tax benefit (expense) | 0.8 | (194.6) | (22.1) |
Income from discontinued operations, net of income taxes | $ (0.1) | $ 620.3 | $ 79.0 |
GOODWILL AND INTANGIBLE ASSETS -Schedule of Goodwill and Changes in Carrying Amount of Goodwill by Operating Segment (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 1,671.9 | $ 1,284.8 |
Acquisition of businesses | 10.3 | 396.5 |
Currency translation | 37.1 | (9.4) |
Goodwill, Ending Balance | 1,719.3 | 1,671.9 |
Specialty Engineered Materials | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 652.2 | 236.3 |
Acquisition of businesses | 10.3 | 396.5 |
Currency translation | 20.0 | 19.4 |
Goodwill, Ending Balance | 682.5 | 652.2 |
Color, Additives and Inks | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 1,019.7 | 1,048.5 |
Acquisition of businesses | 0.0 | 0.0 |
Currency translation | 17.1 | (28.8) |
Goodwill, Ending Balance | $ 1,036.8 | $ 1,019.7 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Indefinite and Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (412.9) | $ (333.1) |
Indefinite-lived Intangible Assets [Line Items] | ||
Acquisition Cost | 1,936.0 | 1,905.7 |
Currency Translation | 67.7 | 25.0 |
Net | 1,590.8 | 1,597.6 |
Indefinite-lived trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Acquisition Cost | 368.0 | 368.0 |
Currency Translation | 25.2 | 15.6 |
Net | 393.2 | 383.6 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 726.2 | 695.9 |
Accumulated Amortization | (199.8) | (164.3) |
Currency Translation | 20.0 | 5.9 |
Net | 546.4 | 537.5 |
Patents, technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Cost | 841.8 | 841.8 |
Accumulated Amortization | (213.1) | (168.8) |
Currency Translation | 22.5 | 3.5 |
Net | $ 651.2 | $ 676.5 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of other finite-lived intangible assets | $ 79.8 | $ 63.6 | $ 57.5 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 77.3 |
2025 | 77.3 |
2026 | 76.6 |
2027 | 74.5 |
2028 | $ 74.0 |
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 26.4 | $ 38.1 | $ 14.7 |
Workforce reductions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 18.3 | ||
Cash payments | 14.2 | ||
Clariant Color Acquisition Integration, Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost of restructuring | 75.0 | ||
Cost incurred | 60.3 | ||
Restructuring costs | 8.1 | 32.9 | 12.0 |
Clariant Color Acquisition Integration, Restructuring Plan | Workforce reductions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 6.9 | $ 30.8 | $ 7.7 |
EMPLOYEE SEPARATION AND RESTRUCTURING COSTS - Income Statement (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 26.4 | $ 38.1 | $ 14.7 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales, Selling and administrative expense | ||
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 11.9 | 31.1 | 14.5 |
Selling and administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 14.5 | $ 7.0 | $ 0.2 |
FINANCING ARRANGEMENTS - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
2024 | $ 9.5 | |
2025 | 659.6 | |
2026 | 7.8 | |
2027 | 7.7 | |
2028 | 7.7 | |
Thereafter | 1,418.2 | |
Principal Amount | $ 2,110.5 | $ 2,216.3 |
LEASING ARRANGEMENTS - Schedule of Lease Cost (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 31.4 | $ 28.9 | $ 29.4 |
Cost of sales | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | 19.7 | 18.8 | 20.1 |
Selling and administrative expense | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 11.6 | $ 10.1 | $ 9.3 |
LEASING ARRANGEMENTS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | |||
Weighted average remaining lease term | 5 years 7 months 6 days | 5 years 8 months 12 days | |
Non-cash net increase in operating lease liability | $ 18.1 | $ 13.8 | $ 8.3 |
Weighted average discount rate | 5.00% | 4.80% |
LEASING ARRANGEMENTS - Schedule of Maturity of Lease Liabilities (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2024 | $ 20.3 |
2025 | 13.8 |
2026 | 10.1 |
2027 | 8.2 |
2028 | 4.8 |
Thereafter | 12.3 |
Total | 69.5 |
Less amount of lease payment representing interest | (9.7) |
Total present value of lease payments | $ 59.8 |
INVENTORIES, NET - Schedule of Components of Inventories, Net (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 166.0 | $ 157.7 |
Work in process | 19.8 | 22.7 |
Raw materials and supplies | 161.2 | 192.3 |
Inventories, net | $ 347.0 | $ 372.7 |
PROPERTY, NET - Schedule of Components of Property, Net (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,919.4 | $ 1,861.0 |
Less accumulated depreciation | (890.5) | (811.8) |
Property, net | 1,028.9 | 1,049.2 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 98.5 | 103.5 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | 439.8 | 432.2 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, gross | $ 1,381.1 | $ 1,325.3 |
PROPERTY, NET - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 109.0 | $ 98.9 | $ 85.5 |
OTHER BALANCE SHEET LIABILITIES - Schedule Of Components Of Other Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Accrued expenses and other current liabilities | ||
Employment costs | $ 119.8 | $ 123.4 |
Deferred compensation | 0.0 | 0.0 |
Restructuring costs | 35.0 | 36.7 |
Environmental liabilities | 32.1 | 27.4 |
Accrued taxes | 45.5 | 121.5 |
Accrued interest | 33.6 | 35.5 |
Dividends payable | 23.5 | 22.5 |
Unrecognized tax benefits | 3.0 | 0.6 |
Derivatives | 0.0 | 0.0 |
Accrued capitalized software | 10.0 | 0.0 |
Other | 12.7 | 28.2 |
Total | 315.2 | 395.8 |
Other non-current liabilities | ||
Employment costs | 12.6 | 8.9 |
Deferred compensation | 31.7 | 25.3 |
Restructuring costs | 0.0 | 0.0 |
Environmental liabilities | 125.1 | 90.9 |
Accrued taxes | 0.0 | 0.0 |
Accrued interest | 0.0 | 0.0 |
Dividends payable | 0.0 | 0.0 |
Unrecognized tax benefits | 16.4 | 26.3 |
Derivatives | 199.1 | 68.6 |
Accrued capitalized software | 0.0 | 0.0 |
Other | 9.5 | 15.5 |
Total | $ 394.4 | $ 235.5 |
EMPLOYEE BENEFIT PLANS - Schedule of Amounts Included In Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and other post-employment benefits | $ 67.2 | $ 67.2 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 45.1 | 31.0 |
Accrued expenses and other liabilities | 5.1 | 5.7 |
Pension and other post-employment benefits | 63.3 | 62.5 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-current assets | 0.0 | 0.0 |
Accrued expenses and other liabilities | 0.5 | 1.3 |
Pension and other post-employment benefits | $ 3.9 | $ 4.7 |
EMPLOYEE BENEFIT PLANS - Schedule of Projected and Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 92.9 | $ 91.5 |
Fair value of plan assets | 24.5 | 23.3 |
Accumulated benefit obligation | 86.6 | 80.2 |
Fair value of plan assets | 23.8 | 17.7 |
Health Care Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 4.4 | 5.9 |
Fair value of plan assets | 0.0 | 0.0 |
Accumulated benefit obligation | 4.4 | 5.9 |
Fair value of plan assets | $ 0.0 | $ 0.0 |
EMPLOYEE BENEFIT PLANS - Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost and Benefit Obligation (Details) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Discount rate | ||||
Discount rate | 4.52% | 4.74% | 2.69% | 2.47% |
Pension Benefits | ||||
Discount rate | ||||
Discount rate | 4.52% | 4.74% | ||
Health Care Benefits | ||||
Discount rate | ||||
Discount rate | 4.87% | 5.17% | ||
Assumed health care cost trend rates at December 31: | ||||
Health care cost trend rate assumed for next year | 6.00% | 5.93% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 3.99% | 4.13% | ||
Year that the rate reaches the ultimate trend rate | 2059 | 2054 |
EMPLOYEE BENEFIT PLANS - Schedule of Components of Net Period Benefit Cost or Gain (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 3.1 | $ 4.1 | $ 4.7 |
Interest cost | 19.6 | 14.1 | 14.2 |
Expected return on plan assets | (25.5) | (22.4) | (26.9) |
Amortization of prior service cost | (0.1) | 0.0 | 0.0 |
Mark-to-market actuarial net (gains) losses | (2.8) | 31.4 | 11.9 |
Other | 0.0 | 0.0 | (0.6) |
Net periodic (income) cost | (5.7) | 27.2 | 3.3 |
Health Care Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0.0 | 0.0 | 0.1 |
Interest cost | 0.3 | 0.4 | 0.5 |
Expected return on plan assets | 0.0 | 0.0 | 0.0 |
Amortization of prior service cost | (6.3) | 0.0 | 0.0 |
Mark-to-market actuarial net (gains) losses | (1.0) | (2.9) | (1.6) |
Other | 0.0 | 0.0 | (0.3) |
Net periodic (income) cost | $ (7.0) | $ (2.4) | $ (1.3) |
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Mark-to-market loss (gain) net on pension plans | $ 3.8 | $ 28.5 | $ 9.4 | |
Discount rate | 4.52% | 4.74% | 2.69% | 2.47% |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.52% | 4.74% | ||
Employer contributions to defined benefit plans | $ 7.6 | |||
Health Care Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.87% | 5.17% | ||
Employer contributions to defined benefit plans | $ 0.5 |
EMPLOYEE BENEFIT PLANS - Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.74% | 2.69% | 2.47% |
Expected long-term return on plan assets | 6.73% | 4.39% | 4.86% |
Health Care Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5.17% | 2.85% | 2.66% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Assumed health care cost trend rates at December 31: | |||
Assumed health care cost trend rates at January 1: | 5.93% | 6.44% | 6.24% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.08% | 4.08% | 4.04% |
Year that the rate reaches the ultimate trend rate | 2055 | 2065 | 2066 |
EMPLOYEE BENEFIT PLANS - Schedule of Estimated Future Benefit Payments (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | $ 40.2 |
2025 | 39.0 |
2026 | 37.8 |
2027 | 36.7 |
2028 | 36.4 |
2029 through 2033 | 163.3 |
Health Care Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2024 | 0.5 |
2025 | 0.5 |
2026 | 0.4 |
2027 | 0.4 |
2028 | 0.3 |
2029 through 2033 | $ 1.3 |
EMPLOYEE BENEFIT PLANS - Schedule of Contributions to the Retirement Savings Plan (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Retirement Benefits [Abstract] | |||
Retirement savings match | $ 11.9 | $ 12.7 | $ 10.7 |
COMMITMENTS AND CONTINGENCIES- Narrative (Details) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Feb. 29, 2020
company
|
|
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies, number of companies negotiating consent decree | company | 3 | ||||
Accrued probable future environmental expenditures | $ 157.2 | $ 118.3 | $ 124.5 | $ 119.7 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities, Other non-current liabilities | Accrued expenses and other current liabilities, Other non-current liabilities | |||
Insurance recoveries | $ 1.7 | $ 8.3 | $ 4.5 | ||
Calvert City | |||||
Loss Contingencies [Line Items] | |||||
Accrued probable future environmental expenditures | $ 148.9 |
COMMITMENTS AND CONTINGENCIES - Schedule Of Changes In Environmental Accrued Liabilities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at beginning of the year | $ 118.3 | $ 124.5 | $ 119.7 |
Environmental expenses | 69.6 | 24.1 | 23.0 |
Net cash payments | (30.7) | (30.2) | (18.2) |
Currency translation and other | 0.0 | (0.1) | 0.0 |
Balance at the end of year | $ 157.2 | $ 118.3 | $ 124.5 |
INCOME TAXES - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ (2.7) | $ (82.4) | $ (22.1) |
International | 90.0 | 146.2 | 225.6 |
Income from continuing operations before income taxes | $ 87.3 | $ 63.8 | $ 203.5 |
INCOME TAXES - Schedule of Income Tax Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Current income tax expense (benefit): | |||
Domestic | $ 18.5 | $ (76.2) | $ 23.4 |
International | 53.8 | 56.4 | 50.8 |
Total current income tax expense (benefit) | 72.3 | (19.8) | 74.2 |
Deferred income tax expense (benefit): | |||
Domestic | (35.8) | 2.6 | (26.8) |
International | (25.5) | (2.1) | 4.5 |
Total deferred income tax (benefit) expense | (61.3) | 0.5 | (22.3) |
Total income tax expense (benefit) | $ 11.0 | $ (19.3) | $ 51.9 |
INCOME TAXES - Schedule of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance as of January 1, | $ 25.4 | $ 19.8 | $ 9.5 |
Increases as a result of positions taken during current year | 1.9 | 10.6 | 5.9 |
Increases as a result of positions taken for prior years | 0.4 | 0.4 | 0.2 |
Balance related to acquired businesses | 0.0 | 0.0 | 5.4 |
Reductions for tax positions of prior years | (10.7) | (4.3) | 0.0 |
Decreases as a result of lapse of statute of limitations | (0.6) | (0.6) | (1.5) |
Other, net | 0.5 | (0.5) | 0.3 |
Balance as of December 31, | $ 16.9 | $ 25.4 | $ 19.8 |
SHARE-BASED COMPENSATION- Schedule of Compensation Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 13.2 | $ 13.2 | $ 11.2 |
Stock appreciation rights | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 6.1 | 5.9 | 5.2 |
Performance shares | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | 0.2 | 0.2 | 0.2 |
Restricted stock units | |||
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Total share-based compensation | $ 6.9 | $ 7.1 | $ 5.8 |
SHARE-BASED COMPENSATION -Schedule of Assumptions Related to Grants (Details) - Stock appreciation rights - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Share-Based Compensation Arrangement By Share-based Payment Award [Line Items] | |||
Expected volatility | 35.00% | 33.00% | 34.00% |
Expected dividends | 2.30% | 1.80% | 2.01% |
Expected term | 6 years 4 months 24 days | 6 years 10 months 24 days | 6 years 10 months 24 days |
Risk-free rate | 3.82% | 1.98% | 1.19% |
Value of SARs granted (in usd per share) | $ 13.28 | $ 14.91 | $ 11.72 |
SEGMENT INFORMATION - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2023
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
DERIVATIVES AND HEDGING - Narrative (Details) € in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
EUR (€)
|
Apr. 20, 2022
EUR (€)
|
|
Derivative [Line Items] | ||||
Cash payment | $ 38.8 | |||
Cross Currency Swaps | ||||
Derivative [Line Items] | ||||
Notional amount | € | € 900.0 | |||
Cross Currency Swaps | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Cash proceeds received from settlement | 132.1 | |||
Gain (loss) in recognized within translation adjustments in AOCI | $ (96.1) | 21.6 | ||
Cross Currency Swaps | Net Investment Hedging | Interest Expense, Net | ||||
Derivative [Line Items] | ||||
Conversion gains | $ 38.8 | 30.3 | ||
Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Notional amount | € | € 350.0 | |||
Expense recognized within other income, net | $ 37.3 | |||
May 2025 | Cross Currency Swaps | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | € | € 1,467.2 | |||
August 2027 | Cross Currency Swaps | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | € | € 900.0 |
DERIVATIVES AND HEDGING - Schedule of Fair Value of Derivatives (Details) - USD ($) $ in Millions |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Net Investment Hedging | Cross Currency Swaps | Designated as Hedging Instrument | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities | $ 199.1 | $ 68.6 |
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