10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-32190

NEWMARKET CORPORATION

(Exact name of registrant as specified in its charter)

Virginia		20-0812170
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
330 South Fourth Street		23219-4350
Richmond,	Virginia
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code - (804) 788-5000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, with no par value	NEU	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐ No  x

Number of shares of common stock, without par value, outstanding as of June 30, 2020: 10,923,999

NEWMARKET CORPORATION

INDEX

	Page Number
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements (unaudited)
Consolidated Statements of Income - Second Quarter and Six Months Ended June 30, 2020 and June 30, 2019	4
Consolidated Statements of Comprehensive Income - Second Quarter and Six Months Ended June 30, 2020 and June 30, 2019	5
Condensed Consolidated Balance Sheets - June 30, 2020 and December 31, 2019	6
Consolidated Statements of Shareholders' Equity - Second Quarter and Six Months Ended June 30, 2020 and June 30, 2019	7
Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 2020 and June 30, 2019	8
Notes to Condensed Consolidated Financial Statements	9
Financial Statement Presentation	9
Net Sales	9
Segment Information	10
Pension Plans and Other Postretirement Benefits	11
Earnings Per Share	12
Inventories	12
Intangibles (Net of Amortization) and Goodwill	12
Long-term Debt	13
Commitments and Contingencies	14
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss	15
Fair Value Measurements	15
Recent Accounting Pronouncements	16
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	23
ITEM 4. Controls and Procedures	23
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings	24
ITEM 1A. Risk Factors	24
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	24
ITEM 6. Exhibits	24
SIGNATURES	25

3

PART I. FINANCIAL INFORMATION

ITEM 1.  Financial Statements

NEWMARKET CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in thousands, except per-share amounts)	Second Quarter Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033
Cost of goods sold	314,126		392,584		692,636		776,331
Gross profit	96,738		170,833		277,645		323,702
Selling, general, and administrative expenses	35,432		35,021		71,147		71,794
Research, development, and testing expenses	33,549		37,137		69,055		70,361
Operating profit	27,757		98,675		137,443		181,547
Interest and financing expenses, net	7,005		7,741		14,109		15,753
Other income (expense), net	6,516		5,757		14,012		11,705
Income before income tax expense	27,268		96,691		137,346		177,499
Income tax expense	4,919		22,517		29,456		41,120
Net income	$	22,349	$	74,174	$	107,890	$	136,379
Earnings per share - basic and diluted	$	2.05	$	6.63	$	9.78	$	12.20
Cash dividends declared per share	$	1.90	$	1.75	$	3.80	$	3.50

See accompanying Notes to Condensed Consolidated Financial Statements

4

NEWMARKET CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands)	Second Quarter Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net income	$	22,349	$	74,174	$	107,890	$	136,379
Other comprehensive income (loss):
Pension plans and other postretirement benefits:
Amortization of prior service cost (credit) included in net periodic benefit cost (income), net of income tax expense (benefit) of $(171) in second quarter 2020, $(186) in second quarter 2019, $(341) in six months 2020, and $(371) in six months 2019	(531)		(601)		(1,062)		(1,202)
Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), net of income tax expense (benefit) of $396 in second quarter 2020, $251 in second quarter 2019, $793 in six months 2020, and $505 in six months 2019	1,260		834		2,527		1,675
Total pension plans and other postretirement benefits	729		233		1,465		473
Foreign currency translation adjustments, net of income tax expense (benefit) of $(151) in second quarter 2020, $114 in second quarter 2019, $(992) in six months 2020, and $7 in six months 2019	(1,038)		(4,366)		(15,369)		580
Other comprehensive income (loss)	(309)		(4,133)		(13,904)		1,053
Comprehensive income	$	22,040	$	70,041	$	93,986	$	137,432

See accompanying Notes to Condensed Consolidated Financial Statements

5

NEWMARKET CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share amounts)	June 30, 2020		December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	102,064	$	144,397
Trade and other accounts receivable, less allowance for credit losses	297,862		335,826
Inventories	354,821		365,938
Prepaid expenses and other current assets	35,277		33,237
Total current assets	790,024		879,398
Property, plant, and equipment, net	639,344		635,439
Intangibles (net of amortization) and goodwill	130,903		131,880
Prepaid pension cost	139,481		133,848
Operating lease right-of-use assets	55,935		60,505
Deferred charges and other assets	43,450		44,062
Total assets	$	1,799,137	$	1,885,132
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	127,401	$	178,773
Accrued expenses	62,004		77,350
Dividends payable	18,530		19,217
Income taxes payable	3,508		10,632
Operating lease liabilities	12,592		14,036
Other current liabilities	9,948		8,887
Total current liabilities	233,983		308,895
Long-term debt	690,292		642,941
Operating lease liabilities-noncurrent	42,942		46,792
Other noncurrent liabilities	196,635		203,406
Total liabilities	1,163,852		1,202,034
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock and paid-in capital (with no par value; authorized shares - 80,000,000; issued and outstanding shares - 10,923,999 at June 30, 2020 and 11,188,549 at December 31, 2019)	281		1,965
Accumulated other comprehensive loss	(176,652)		(162,748)
Retained earnings	811,656		843,881
Total shareholders' equity	635,285		683,098
Total liabilities and shareholders’ equity	$	1,799,137	$	1,885,132

See accompanying Notes to Condensed Consolidated Financial Statements

6

NEWMARKET CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share and per-share amounts)	Common Stock and Paid-in Capital			Accumulated Other Comprehensive Loss		Retained Earnings		Total Shareholders’ Equity
	Shares	Amount
Balance at March 31, 2019	11,188,126	$	431	$	(176,130)	$	713,895	$	538,196
Net income						74,174		74,174
Other comprehensive income (loss)				(4,133)				(4,133)
Cash dividends ($1.75 per share)						(19,579)		(19,579)
Stock-based compensation		518						518
Balance at June 30, 2019	11,188,126	$	949	$	(180,263)	$	768,490	$	589,176
Balance at March 31, 2020	10,938,744	$	0	$	(176,343)	$	815,592	$	639,249
Net income						22,349		22,349
Other comprehensive income (loss)				(309)				(309)
Cash dividends ($1.90 per share)						(20,756)		(20,756)
Repurchases of common stock	(14,745)	(133)				(5,529)		(5,662)
Tax withholdings related to stock-based compensation		(8)						(8)
Stock-based compensation		422						422
Balance at June 30, 2020	10,923,999	$	281	$	(176,652)	$	811,656	$	635,285
Balance at December 31, 2018	11,184,482	$	0	$	(181,316)	$	671,223	$	489,907
Net income						136,379		136,379
Other comprehensive income (loss)				1,053				1,053
Cash dividends ($3.50 per share)						(39,158)		(39,158)
Stock-based compensation	3,644	949				46		995
Balance at June 30, 2019	11,188,126	$	949	$	(180,263)	$	768,490	$	589,176
Balance at December 31, 2019	11,188,549	$	1,965	$	(162,748)	$	843,881	$	683,098
Net income						107,890		107,890
Other comprehensive income (loss)				(13,904)				(13,904)
Cash dividends ($3.80 per share)						(41,916)		(41,916)
Repurchases of common stock	(267,128)	(1,760)				(98,240)		(100,000)
Tax withholdings related to stock-based compensation	(1,547)	(641)						(641)
Stock-based compensation	4,125	717				41		758
Balance at June 30, 2020	10,923,999	$	281	$	(176,652)	$	811,656	$	635,285

See accompanying Notes to Condensed Consolidated Financial Statements

7

NEWMARKET CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)	Six Months Ended June 30,
	2020		2019
Cash and cash equivalents at beginning of year	$	144,397	$	73,040
Cash flows from operating activities:
Net income	107,890		136,379
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	42,356		43,716
Deferred income tax expense	3,322		4,154
Working capital changes	(60,072)		(27,079)
Cash pension and postretirement contributions	(5,152)		(4,869)
Other, net	5,953		(1,685)
Cash provided from (used in) operating activities	94,297		150,616
Cash flows from investing activities:
Capital expenditures	(40,088)		(23,219)
Other, net	(927)		0
Cash provided from (used in) investing activities	(41,015)		(23,219)
Cash flows from financing activities:
Net borrowings (repayments) under revolving credit facility	47,059		(87,296)
Dividends paid	(41,916)		(39,158)
Repurchases of common stock	(100,000)		0
Other, net	2,217		(1,233)
Cash provided from (used in) financing activities	(92,640)		(127,687)
Effect of foreign exchange on cash and cash equivalents	(2,975)		469
(Decrease) increase in cash and cash equivalents	(42,333)		179
Cash and cash equivalents at end of period	$	102,064	$	73,219

See accompanying Notes to Condensed Consolidated Financial Statements

8

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Financial Statement Presentation

In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair presentation of, in all material respects, our consolidated financial position as of June 30, 2020 and December 31, 2019, and our consolidated results of operations, comprehensive income, and changes in shareholders' equity for the second quarter and six months ended June 30, 2020 and June 30, 2019, and our cash flows for the six months ended June 30, 2020 and June 30, 2019. All adjustments are of a normal, recurring nature, unless otherwise disclosed. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the NewMarket Corporation Annual Report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report), as filed with the Securities and Exchange Commission (SEC). The results of operations for the six month period ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020. The December 31, 2019 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Unless the context otherwise indicates, all references to “we,” “us,” “our,” the “company,” and “NewMarket” are to NewMarket Corporation and its consolidated subsidiaries.

We adopted Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020. ASU 2016-13 mandates a methodology be utilized that determines expected credit losses on financial instruments instead of the former methodology that delayed recognition until a probable loss had been incurred.

We record our accounts receivable at amortized cost and at the net amount expected to be collected. Our accounts receivable are predominantly trade receivables and are derived through the sale of petroleum additives products. Our customers primarily consist of global, national, and independent oil companies. We maintain an allowance for credit losses for expected losses resulting from our customers not making required payments. We determine the adequacy of the allowance by periodically evaluating each customer’s receivable balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. The allowance for credit losses was not material at June 30, 2020 or December 31, 2019.

2. Net Sales

Our revenues are primarily derived from the manufacture and sale of petroleum additives products. We sell petroleum additives products across the world to customers located in the North America, Latin America, Asia Pacific, and Europe/Middle East/Africa/India regions. Our customers primarily consist of global, national, and independent oil companies. Our contracts generally include one performance obligation, which is providing petroleum additives products. The performance obligation is satisfied at a point in time when products are shipped, delivered, or consumed by the customer, depending on the underlying contracts.

In limited cases, we collect funds in advance of shipping product to our customers and recognizing the related revenue. These prepayments from customers are recorded as a contract liability to our customer until we recognize the revenue. Some of our contracts include variable consideration in the form of rebates or business development funds. We regularly review both rebates and business development funds and make adjustments when necessary, recognizing the full amount of any adjustment in the period identified.

9

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 3.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Net sales
United States	$	119,928	$	188,031	$	301,772	$	360,045
China	57,442		62,115		103,240		121,408
Europe, Middle East, Africa, India	130,944		178,593		321,567		346,912
Asia Pacific, except China	66,759		80,301		146,172		162,830
Other foreign	35,791		54,377		97,530		108,838
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

3. Segment Information

The tables below show our consolidated segment results. The “All other” category includes the operations of the antiknock compounds business, as well as certain contracted manufacturing and services associated with Ethyl Corporation (Ethyl).

Net Sales by Segment

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives
Lubricant additives	$	343,418	$	462,659	$	807,104	$	899,879
Fuel additives	65,285		98,165		158,971		193,624
Total	408,703		560,824		966,075		1,093,503
All other	2,161		2,593		4,206		6,530
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

Segment Operating Profit

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives	$	33,061	$	102,992	$	146,732	$	190,855
All other	(399)		(342)		(64)		169
Segment operating profit	32,662		102,650		146,668		191,024
Corporate, general, and administrative expenses	(5,467)		(4,275)		(9,698)		(9,369)
Interest and financing expenses, net	(7,005)		(7,741)		(14,109)		(15,753)
Other income (expense), net	7,078		6,057		14,485		11,597
Income before income tax expense	$	27,268	$	96,691	$	137,346	$	177,499

10

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

4. Pension Plans and Other Postretirement Benefits

The table below shows cash contributions made during the six months ended June 30, 2020, as well as the remaining cash contributions we expect to make during the year ending December 31, 2020, for our domestic and foreign pension plans and domestic postretirement benefit plan.

(in thousands)	Actual Cash Contributions for Six Months Ended June 30, 2020		Expected Remaining Cash Contributions for Year Ending December 31, 2020
Domestic plans
Pension benefits	$	1,447	$	2,893
Postretirement benefits	894		1,788
Foreign plans
Pension benefits	2,811		2,676

The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan. The service cost component of net periodic benefit cost (income) is reflected in cost of goods sold; selling, general, and administrative expenses; or research, development, and testing expenses, to reflect where other compensation costs arising from services rendered by the pertinent employee are recorded on the Consolidated Statements of Income. The remaining components of net periodic benefit cost (income) are recorded in other income (expense), net on the Consolidated Statements of Income.

	Domestic
	Pension Benefits				Postretirement Benefits
	Second Quarter Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	4,198	$	3,624	$	217	$	194
Interest cost	3,509		3,686		346		389
Expected return on plan assets	(9,306)		(8,657)		(241)		(244)
Amortization of prior service cost (credit)	67		(19)		(757)		(757)
Amortization of actuarial net (gain) loss	1,316		854		0		0
Net periodic benefit cost (income)	$	(216)	$	(512)	$	(435)	$	(418)

	Domestic
	Pension Benefits				Postretirement Benefits
	Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	8,395	$	7,247	$	434	$	388
Interest cost	7,017		7,371		691		778
Expected return on plan assets	(18,611)		(17,314)		(482)		(488)
Amortization of prior service cost (credit)	133		(38)		(1,514)		(1,514)
Amortization of actuarial net (gain) loss	2,632		1,707		0		0
Net periodic benefit cost (income)	$	(434)	$	(1,027)	$	(871)	$	(836)

11

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	Foreign
	Pension Benefits
	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	2,061	$	1,618	$	4,207	$	3,258
Interest cost	929		1,206		1,913		2,427
Expected return on plan assets	(2,334)		(2,327)		(4,795)		(4,680)
Amortization of prior service cost (credit)	(10)		(10)		(21)		(21)
Amortization of actuarial net (gain) loss	339		235		692		474
Net periodic benefit cost (income)	$	985	$	722	$	1,996	$	1,458

5. Earnings Per Share

We had 19,858 shares of nonvested restricted stock at June 30, 2020 and 22,536 shares of nonvested restricted stock at June 30, 2019 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive.

The nonvested restricted stock is considered a participating security since the restricted stock contains nonforfeitable rights to dividends. As such, we use the two-class method to compute basic and diluted earnings per share for all periods presented since this method yields the most dilutive result. The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands, except per-share amounts)	2020		2019		2020		2019
Earnings per share numerator:
Net income attributable to common shareholders before allocation of earnings to participating securities	$	22,349	$	74,174	$	107,890	$	136,379
Earnings allocated to participating securities	42		147		154		211
Net income attributable to common shareholders after allocation of earnings to participating securities	$	22,307	$	74,027	$	107,736	$	136,168
Earnings per share denominator:
Weighted-average number of shares of common stock outstanding - basic and diluted	10,904		11,166		11,020		11,166
Earnings per share - basic and diluted	$	2.05	$	6.63	$	9.78	$	12.20

6.  Inventories

	June 30,		December 31,
(in thousands)	2020		2019
Finished goods and work-in-process	$	281,351	$	295,997
Raw materials	58,546		55,702
Stores, supplies, and other	14,924		14,239
	$	354,821	$	365,938

7. Intangibles (Net of Amortization) and Goodwill

The net carrying amount of intangibles and goodwill was $131 million at June 30, 2020 and $132 million at December 31, 2019. The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.

12

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	June 30, 2020				December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Formulas and technology	$	9,600	$	6,500	$	9,600	$	5,416
Contract	2,000		700		2,000		600
Customer bases	14,240		11,483		14,240		10,931
Goodwill	123,746				122,987
	$	149,586	$	18,683	$	148,827	$	16,947

All of the intangibles relate to the petroleum additives segment. The change in the gross carrying amount between December 31, 2019 and June 30, 2020 is due to foreign currency fluctuation, as well as the completion in May 2020 of the purchase of the remaining outstanding capital stock of Aditivos Mexicanos, S.A. de C.V. (AMSA), which we acquired in 2017. The prior noncontrolling interest represented by the outstanding capital stock of AMSA was not material. There is no accumulated goodwill impairment.

Amortization expense was (in thousands):

Second quarter ended June 30, 2020	$	1,009
Six months ended June 30, 2020	1,736
Second quarter ended June 30, 2019	1,052
Six months ended June 30, 2019	2,103

Estimated amortization expense for the remainder of 2020, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):

2020	$	1,171
2021	2,156
2022	1,423
2023	907
2024	390
2025	390

We amortize the contract over 10 years; customer bases over 4 to 20 years; and formulas and technology over 3 to 6 years.

8. Long-term Debt

(in thousands)	June 30, 2020		December 31, 2019
Senior notes - 4.10% due 2022 (net of related deferred financing costs)	$	348,555	$	348,263
Senior notes - 3.78% due 2029	250,000		250,000
Revolving credit facility	91,737		44,678
	$	690,292	$	642,941

Senior Notes - The outstanding 4.10% senior notes are unsecured, with an aggregate principal amount of $350 million and are registered under the Securities Act of 1933, as amended (Securities Act). The outstanding 3.78% senior notes are unsecured and were issued in a 2017 private placement with The Prudential Insurance Company of America and certain other purchasers. The 3.78% senior notes agreement was amended in March 2020 to conform the covenants under the agreement with those in the 2020 revolving credit facility. We were in compliance with all covenants under both issuances of the senior notes as of June 30, 2020 and December 31, 2019.

Revolving Credit Facility - On March 5, 2020, we entered into a Credit Agreement (the Credit Agreement) with a term of five years. The Credit Agreement provides for a $900 million, multicurrency revolving credit facility, with a $500 million sublimit

13

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

for multicurrency borrowings, a $50 million sublimit for letters of credit, and a $20 million sublimit for swingline loans. The Credit Agreement includes an expansion feature which allows us, subject to certain conditions, to request an increase in the aggregate amount of the revolving credit facility or obtain incremental term loans in an amount up to $425 million. Concurrent with entering into the Credit Agreement, we terminated our former revolving credit facility that we had entered into in 2017.

The obligations under the Credit Agreement are unsecured and are fully and unconditionally guaranteed by NewMarket. The revolving credit facility is available on a revolving basis until March 5, 2025.

Borrowings made under the revolving credit facility bear interest, at our option, at an annual rate equal to (1) the Alternate Base Rate (ABR) plus the Applicable Rate (as defined in the Credit Agreement) solely in the case of loans denominated in U.S. dollars to NewMarket, (2) the Adjusted LIBO Rate plus the Applicable Rate, or (3) the Adjusted EURIBO Rate plus the Applicable Rate. ABR is the greatest of (i) the rate of interest publicly announced by the Administrative Agent as its prime rate, (ii) the NYFRB Rate (as defined in the Credit Agreement) from time to time plus 0.5%, and (iii) the Adjusted LIBO Rate for a one month interest period plus 1%. The Adjusted LIBO Rate means the rate at which Eurocurrency deposits in the London interbank market for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other applicable mandatory costs. The Adjusted EURIBO Rate means the rate at which Eurocurrency deposits denominated in euro in the euro interbank markets for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other mandatory costs. The Applicable Rate ranges from 0.000% to 0.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the ABR. The Applicable Rate ranges from 0.875% to 1.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the Adjusted LIBO Rate or the Adjusted EURIBO rate. The Credit Agreement contains the Administrative Agent's customary LIBOR successor rate provisions, which apply in the event LIBOR is no longer generally adopted as the benchmark rate for syndicated loans.

The Credit Agreement contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the Credit Agreement) of no more than 3.75 to 1.00 except during an Increased Leverage Period (as defined in the Credit Agreement). We were in compliance with all covenants under the revolving credit facility in effect at June 30, 2020 and at December 31, 2019.

We paid financing costs in 2020 of approximately $1.3 million related to this revolving credit facility and carried over deferred financing costs from our previous revolving credit facility of approximately $1.2 million, resulting in total deferred financing costs of $2.5 million as of June 30, 2020, which we are amortizing over the term of the Credit Agreement.

The average interest rate for borrowings under the credit agreements was 1.5% during the first six months of 2020 and 3.0% during the full year of 2019.

The outstanding borrowings under the revolving credit facilities amounted to $92 million at June 30, 2020 and $45 million at December 31, 2019. Outstanding letters of credit amounted to $3 million at both June 30, 2020 and December 31, 2019 resulting in the unused portion of the credit facility in effect amounting to $806 million at June 30, 2020 and $803 million at December 31, 2019.

9. Commitments and Contingencies

Legal Matters

We are involved in legal proceedings that are incidental to our business and may include administrative or judicial actions. Some of these legal proceedings involve governmental authorities and relate to environmental matters. For further information, see Environmental below.

While it is not possible to predict or determine with certainty the outcome of any legal proceeding, we believe the outcome of any of these proceedings, or all of them combined, will not result in a material adverse effect on our consolidated results of operations, financial condition, or cash flows.

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NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Environmental

We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). While we believe we are currently adequately accrued for known environmental issues, it is possible that unexpected future costs could have a significant impact on our consolidated financial position, results of operations, and cash flows. Our total accruals for environmental remediation, dismantling, and decontamination were approximately $10 million at June 30, 2020 and $11 million at December 31, 2019. Of the total accrual, the current portion is included in accrued expenses and the noncurrent portion is included in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

Our more significant environmental sites include a former plant site in Louisiana (the Louisiana site) and a Houston, Texas plant site (the Texas site). Together, the amounts accrued on a discounted basis related to these sites represented approximately $7 million of the total accrual above at June 30, 2020 and $8 million at December 31, 2019, using discount rates ranging from 3% to 9% for both periods. The aggregate undiscounted amount for these sites was $9 million at June 30, 2020 and $10 million at December 31, 2019. Of the total accrued for these two sites, the amount related to remediation of groundwater and soil for the Louisiana site was $4 million at both June 30, 2020 and December 31, 2019. The amount related to remediation of groundwater and soil for the Texas site was $3 million at both June 30, 2020 and December 31, 2019.

10. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following:

(in thousands)	Pension Plans and Other Postretirement Benefits		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2018	$	(86,555)	$	(94,761)	$	(181,316)
Other comprehensive income (loss) before reclassifications	0		580		580
Amounts reclassified from accumulated other comprehensive loss (a)	473		0		473
Other comprehensive income (loss)	473		580		1,053
Balance at June 30, 2019	$	(86,082)	$	(94,181)	$	(180,263)
Balance at December 31, 2019	$	(69,795)	$	(92,953)	$	(162,748)
Other comprehensive income (loss) before reclassifications	0		(15,369)		(15,369)
Amounts reclassified from accumulated other comprehensive loss (a)	1,465		0		1,465
Other comprehensive income (loss)	1,465		(15,369)		(13,904)
Balance at June 30, 2020	$	(68,330)	$	(108,322)	$	(176,652)

(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information.

11. Fair Value Measurements

The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets, as well as the fair value, was $102 million at June 30, 2020 and $144 million at December 31, 2019. The fair value is categorized in Level 1 of the fair value hierarchy.

No material events occurred during the six months ended June 30, 2020 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis.

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NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Long-term debt – We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to the 4.10% senior notes. The estimated fair value of our long-term debt is shown in the table below and is based primarily on estimated current rates available to us for debt of the same remaining duration and adjusted for nonperformance risk and credit risk. The estimated fair value of our publicly-traded 4.10% senior notes included in long-term debt in the table below is based on the last quoted price closest to June 30, 2020. The fair value of our debt instruments is categorized as Level 2.

	June 30, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt	$	690,292	$	748,286	$	642,941	$	677,253

12. Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (ASU 2020-04), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We continue to evaluate the impact of ASU 2020-04 on our consolidated financial statements, but do not currently expect a significant impact.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This report contains forward-looking statements about future events and expectations within the meaning of the Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future results. When we use words in this document such as “anticipates,” “intends,” “plans,” “believes,” “estimates,” “projects,” “expects,” “should,” “could,” “may,” “will,” and similar expressions, we do so to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding future prospects of growth in the petroleum additives market, other trends in the petroleum additives market, our ability to maintain or increase our market share, and our future capital expenditure levels.

We believe our forward-looking statements are based on reasonable expectations and assumptions, within the bounds of what we know about our business and operations. However, we offer no assurance that actual results will not differ materially from our expectations due to uncertainties and factors that are difficult to predict and beyond our control.

Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden or sharp raw material price increases; competition from other manufacturers; current and future governmental regulations; the gain or loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters, terrorist attacks, and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from recent or future acquisitions, or our inability to successfully integrate recent or future acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the SEC, including the risk factors in Item 1A. “Risk Factors” of our 2019 Annual Report and Part II. Item 1A. "Risk Factors" of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, which is available to shareholders upon request.

You should keep in mind that any forward-looking statement made by us in this report or elsewhere speaks only as of the date on which we make it. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, any forward-looking statement made in this report or elsewhere, might not occur.

Overview

When comparing the results of the petroleum additives segment for the first six months of 2020 with the first six months of 2019, both net sales and operating profit decreased primarily resulting from the impact of COVID-19 on our financial results. Net sales decreased 11.7% primarily due to both lower lubricant additives and fuel additives product shipments, along with decreased selling prices and an unfavorable foreign currency impact. Petroleum additives operating profit was 23.1% lower reflecting lower product shipments and selling prices, as well as higher conversion costs, partially offset by improved raw material costs.

Our operations generate cash that is in excess of the needs of the business. We continue to invest in and manage the business for the long-term with the goal of helping our customers succeed in their marketplaces. Our investments continue to be in organizational talent, technology development and processes, and global infrastructure, consisting of technical centers, production capability, and geographic expansion.

Impact of COVID-19 Pandemic and Current Economic Environment

As we expected, the second quarter of the year was significantly impacted by the COVID-19 pandemic and the resulting government restrictions on the movement of people, goods, and services to combat the spread of the virus. With dramatically less travel and miles driven, and with less industrial production, specifically with automobile plant closures, global demand for both lubricant and fuel additives declined substantially. Shipments to customers in the second quarter were down 25.1% from the first quarter of the year. Our North America and Europe/Middle East/Africa/India (EMEAI) regions experienced the most significant decreases in shipments when compared to both the same quarter last year and the first quarter of 2020. While all three months of the 2020 second quarter reflected decreased shipments compared to the same 2019 months, our overall low

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point was in May. In June, we saw some improvement, particularly in North America, and in the Asia Pacific region where shipments were on par with June 2019.

At this point we cannot predict how long the downturn will last, though we have seen some signs of improvement. In addition to the increased shipments in June, we are seeing substantial improvements in miles driven in both North America and Western Europe, and vehicle production is resuming around the world. The pace of improvement will depend heavily on the rate at which government restrictions are lifted and remain lifted. We expect our regions will experience varying effects on demand, based on our product portfolio, our geographic coverage, and the differing government responses to the pandemic.

With only a very few government-ordered, short-term exceptions, all of our locations around the world, including our manufacturing as well as research and development facilities, have continued to operate safely without interruption, and we expect them to continue to do so. Raw material sourcing has not been significantly impacted and we do not expect that to change over the remaining months of the year. The transportation industry continues to operate and our products are currently being delivered to our customers. Delays in the transportation industry earlier in the year related to international shipments have improved.

Our financial position remains strong. We have sufficient access to capital if needed, including our new $900 million revolving credit facility we entered into in March 2020, and do not anticipate any issues with meeting the covenants for all our debt agreements. Our major capital projects are continuing to progress substantially as planned.

The chemical industry and our products are recognized as essential for transportation of goods and services. Our business continuity planning process focuses our efforts on managing through this challenging time and helping our customers do the same. As we are a global company and can leverage the knowledge and experience of our personnel in facilities across the world, we do not expect to experience negative impacts related to short-term travel and border restrictions. As we operate in the chemical industry, we continue to be focused on protecting the health and safety of our employees and have procedures in place at each of our operating facilities to help ensure their well-being.

While we do not know how long the current economic environment will continue, and the ultimate impact on our business will depend on many factors which are difficult to predict and substantially beyond our control, we believe this is a temporary situation as our products are essential for the operation of modern machinery and the transportation industry.

Results of Operations

Net Sales

Consolidated net sales for the second quarter of 2020 totaled $410.9 million, representing a decrease of $152.6 million, or 27.1%, from the second quarter of 2019. Consolidated net sales for the first six months of 2020 totaled $970.3 million, representing a decrease of $129.8 million, or 11.8%, from the first six months of 2019. The following table shows net sales by segment and product line.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Petroleum additives
Lubricant additives	$	343.4	$	462.6	$	807.1	$	899.9
Fuel additives	65.3		98.2		159.0		193.6
Total	408.7		560.8		966.1		1,093.5
All other	2.2		2.6		4.2		6.5
Net sales	$	410.9	$	563.4	$	970.3	$	1,100.0

Petroleum Additives Segment

The regions in which we operate include North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and the EMEAI region. While there is some fluctuation, the percentage of net sales generated in the regions remained fairly consistent when comparing the first six months of 2020 with the same period in 2019, as well as with the full year in 2019.

Petroleum additives net sales for the second quarter of 2020 were $408.7 million compared to $560.8 million for the second quarter of 2019, a decrease of 27.1%. Petroleum additives net sales for the first six months of 2020 were $966.1 million compared to $1.1 billion for the first six months of 2019, a decrease of 11.7%. For both the second quarter and six months comparative periods, the decreases were across all regions with the North America region representing approximately half of the petroleum additives decrease for both the second quarter and six months periods. Also during the second quarter, the

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EMEAI region represented approximately 30% of the petroleum additives decrease in net sales, with Latin America and Asia Pacific experiencing smaller reductions. For the six months comparative periods, EMEAI and Asia Pacific each represented approximately 20% to 25% of the decrease in petroleum additives net sales, with the Latin America region contributing a small reduction. The reductions across all regions for both the second quarter and six months periods were predominantly the result of the impact from the COVID-19 pandemic, including lower demand for petroleum additives products reflecting the restrictions across the world on the movement of people, goods, and services.

The following table details the approximate components of the decrease in petroleum additives net sales between the second quarter and first six months of 2020 and 2019.

(in millions)	Second Quarter		Six Months
Period ended June 30, 2019	$	560.8	$	1,093.5
Lubricant additives shipments	(103.1)		(74.6)
Fuel additives shipments	(22.1)		(23.1)
Selling prices	(23.9)		(23.5)
Foreign currency impact, net	(3.0)		(6.2)
Period ended June 30, 2020	$	408.7	$	966.1

When comparing both the second quarter and the six months periods of 2020 and 2019, petroleum additives shipments accounted for a $125.2 million decrease in net sales for the second quarter comparison and a $97.7 million decrease in net sales for the six month comparison. Lower selling prices, including an unfavorable foreign currency impact, also contributed to the decrease in net sales for both the second quarter and six months comparison periods due in part to lower volumes sold of higher priced products. The United States Dollar strengthened against most of the major currencies in which we transact, resulting in an unfavorable impact to net sales for both the second quarter and six months comparative periods. The unfavorable impact was predominantly from the Euro and the Chinese Renminbi.

On a worldwide basis, the volume of product shipments for petroleum additives decreased 24.4% when comparing the two second quarter periods and 9.6% when comparing the six months of 2020 and 2019. Shipments of lubricant additives decreased across all regions for both the second quarter and six months comparative periods. Fuel additives shipment volumes also decreased for both the second quarter and six months comparative periods. The decrease in fuel additives shipments was across all regions except for a small increase in the Latin America region. The reduction in shipment volumes substantially resulted from the impact of the COVID-19 pandemic.

All Other

The “All other” category includes the operations of the antiknock compounds business and certain contracted manufacturing and services.

Segment Operating Profit

NewMarket evaluates the performance of the petroleum additives business based on segment operating profit. NewMarket Services Corporation expenses are charged to NewMarket and each subsidiary pursuant to services agreements between the companies. Depreciation on segment property, plant, and equipment, as well as amortization of segment intangible assets and lease right-of-use assets, is included in segment operating profit.

The following table reports segment operating profit for the second quarter and six months ended June 30, 2020 and June 30, 2019.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Petroleum additives	$	33.1	$	103.0	$	146.7	$	190.9
All other	$	(0.4)	$	(0.3)	$	0.0	$	0.1

Petroleum Additives Segment

The petroleum additives segment operating profit decreased $69.9 million when comparing the second quarter of 2020 to the second quarter of 2019 and $44.1 million when comparing the first six months of 2020 to the first six months of 2019. Both comparative periods included the impact of the same factors that affected gross profit (see discussion below) including an unfavorable foreign currency translation impact.

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The operating profit margin was 8.1% for the second quarter of 2020 as compared to 18.4% for the second quarter of 2019 and was 15.2% for the first six months of 2020 as compared to 17.5% for the first six months of 2019. For the rolling four quarters ended June 30, 2020, the operating profit margin for petroleum additives was 15.4%. The impact of COVID-19 during the second quarter and six months periods of 2020 resulted in lower shipment volumes and reduced net sales. Together, these factors, along with others discussed below, had a significant unfavorable impact on our operating profit margin from historical margins. Operating profit margins remain a priority, and while they will fluctuate from quarter to quarter due to multiple factors, we believe the fundamentals of our business and industry as a whole are unchanged.

Petroleum additives gross profit decreased $74.9 million when comparing the two second quarter periods and $46.6 million when comparing the first six months of 2020 and 2019. Cost of goods sold as a percentage of net sales was 76.5% for the second quarter of 2020, up from 69.5% for the second quarter of 2019 and 71.4% for the first six months of 2020, up from 70.5% for the first six months of 2019.

When comparing both the second quarters and first six months of 2020 and 2019, the decrease in gross profit resulted from unfavorable impacts from product shipments and lower selling prices (both as discussed in the Net Sales section above), as well as unfavorable conversion costs, including an unfavorable foreign currency translation impact, which together contributed over 100% of the change in both comparative periods. These unfavorable factors were partially offset by lower raw material costs.

Petroleum additives selling, general, and administrative expenses (SG&A) for the second quarter of 2020 were $1.3 million, or 4.4%, lower as compared to the second quarter of 2019, and $1.3 million, or 2.1%, lower for the first six months of 2020 as compared to the same 2019 period. SG&A as a percentage of net sales was 7.2% for the second quarter of 2020, 5.5% for the second quarter of 2019, 6.2% for the first six months of 2020 and 5.6% for the first six months of 2019. Our SG&A costs are primarily personnel-related and include salaries, benefits, and other costs associated with our workforce. While personnel-related costs fluctuate from period to period, there were no significant changes in the drivers of these costs when comparing the periods.

Our investment in petroleum additives research, development, and testing (R&D) decreased $3.6 million when comparing the second quarter of 2020 with the second quarter of 2019 and decreased $1.3 million when comparing the first six months periods of 2020 and 2019. As a percentage of net sales, R&D was 8.2% for second quarter of 2020, 6.6% for the second quarter of 2019, 7.2% for the first six months of 2020, and 6.4% for the first six months of 2019. Our R&D investments reflect our efforts to support the development of solutions that meet our customers' needs, meet new and evolving standards, and support our expansion into new product areas. Our approach to R&D investment, as it is with SG&A, is one of purposeful spending on programs to support our current product base and to ensure that we develop products to support our customers' programs in the future. R&D investments include personnel-related costs, as well as costs for internal and external testing of our products.

The following discussion references certain captions on the Consolidated Statements of Income.

Interest and Financing Expenses

Interest and financing expenses were $7.0 million for the second quarter of 2020, $7.7 million for the second quarter of 2019, $14.1 million for the first six months of 2020 and $15.8 million for the first six months of 2019. The decrease for the second quarter comparison resulted primarily from a lower average interest rate, partially offset by higher outstanding debt during the 2020 period. The decrease for the six months comparison resulted from a lower average interest rate, as well as lower outstanding debt.

Other Income (Expense), Net

Other income (expense), net was income of $6.5 million for the second quarter of 2020, $5.8 million for the second quarter of 2019, $14.0 million for the first six months of 2020 and $11.7 million for the first six months of 2019. The amounts for both the 2020 and 2019 periods primarily reflect the components of net periodic benefit cost (income), except for service cost, from defined benefit pension and postretirement plans. See Note 4 for further information on total periodic benefit cost (income).

Income Tax Expense

Income tax expense was $4.9 million for the second quarter of 2020 and $22.5 million for the second quarter of 2019. The effective tax rate was 18.0% for the second quarter of 2020 and 23.3% for the second quarter of 2019. Income tax expense decreased $16.2 million due to the lower income before income tax expense with the remaining amount of the change resulting from the lower effective income tax rate.

Income tax expense was $29.5 million for the first six months of 2020 and $41.1 million for the first six months of 2019. The effective tax rate was 21.4% for the first six months of 2020 and 23.2% for the first six months of 2019. Income tax expense decreased $9.3 million due to the lower income before income tax expense. The lower effective tax rate resulted in a $2.3 million decrease in income tax.

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The decrease in the effective tax rate between both the second quarter and six months periods of 2020 and 2019 is primarily a result of a greater percentage of income being earned at our foreign locations in 2020, which are largely subject to tax rates lower than the U.S. tax rate, offset by a decrease in the foreign-derived intangible income tax benefit.

Cash Flows, Financial Condition, and Liquidity

Cash and cash equivalents at June 30, 2020 were $102.1 million, which was a decrease of $42.3 million since December 31, 2019.

Cash and cash equivalents held by our foreign subsidiaries amounted to $92.4 million at June 30, 2020 and $99.5 million at December 31, 2019. Periodically, we repatriate cash from our foreign subsidiaries to the United States through intercompany dividends and loans. We do not anticipate significant tax consequences from future distributions of foreign earnings.

A portion of our foreign cash balances is associated with earnings that we have asserted are indefinitely reinvested. We plan to use these indefinitely reinvested earnings to support growth outside of the United States through funding of operating expenses, capital expenditures, and other cash needs of our foreign subsidiaries.

We expect that cash from operations, together with borrowing available under our revolving credit facility, will continue to be sufficient to cover our operating needs and planned capital expenditures for at least the next twelve months.

Cash Flows – Operating Activities

Cash flows provided from operating activities for the first six months of 2020 were $94.3 million, which included the use of $60.1 million to fund higher working capital requirements. The $60.1 million excluded an unfavorable foreign currency impact to the components of working capital on the balance sheet.

The most significant changes in working capital included decreases in accounts receivable, inventory, accounts payable, and accrued expenses. The decrease in accounts receivable balances was primarily the result of lower sales, as well as slower customer payment when comparing June 30, 2020 with the end of 2019 due to the impacts of COVID-19. The change in inventory and accounts payable also resulted from the impact from COVID-19 due to reduced production and purchases reflecting decreased customer demand. The decrease in accrued expenses reflect normal payments for customer and personnel related costs.

Including cash and cash equivalents, as well as the impact of foreign currency on the balance sheet, we had total working capital of $556.0 million at June 30, 2020 and $570.5 million at December 31, 2019. The current ratio was 3.38 to 1 at June 30, 2020 and 2.85 to 1 at December 31, 2019.

Cash Flows – Investing Activities

Cash used in investing activities totaled $41.0 million during the first six months of 2020 and primarily represented capital expenditures. We currently expect that our total capital spending during 2020 will be in the $75 million to $85 million range and will include several improvements to our manufacturing and R&D infrastructure around the world. We expect to continue to finance capital spending through cash on hand and cash provided from operations, together with borrowing available under our $900 million revolving credit facility.

Cash Flows – Financing Activities

Cash used in financing activities during the first six months of 2020 amounted to $92.6 million. We paid dividends of $41.9 million and repurchased $100.0 million of our common stock. These were partially offset by additional borrowings of $47.1 million on our revolving credit facility.

Debt

Our long-term debt was $690.3 million at June 30, 2020 compared to $642.9 million at December 31, 2019.

On March 5, 2020, we entered into a $900 million revolving credit facility with a term of five years. Concurrently, we terminated our previous $850 million revolving credit facility. See Note 8 for additional information on the 4.10% senior notes, 3.78% senior notes, and revolving credit facility, including the unused portion of our revolving credit facility.

The 4.10% senior notes, 3.78% senior notes, and the revolving credit facility contain covenants, representations, and events of default that management considers typical of credit arrangements of this nature. The covenants under the 3.78% senior notes include negative covenants, certain financial covenants, and events of default which are substantially similar to the covenants and events of default in our revolving credit facility. The 3.78% senior notes agreement was amended in March 2020 to conform the covenants under the agreement with those in the 2020 revolving credit facility.

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The revolving credit facility contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the agreement) of no more than 3.75 to 1.00, except during an Increased Leverage Period (as defined in the agreement) at the end of each quarter.

At June 30, 2020, the Leverage Ratio was 1.83 under the revolving credit facility. We were in compliance with all covenants under the 4.10% senior notes, the 3.78% senior notes, and the revolving credit facility in effect at June 30, 2020 and December 31, 2019.

As a percentage of total capitalization (total long-term debt and shareholders’ equity), our total long-term debt percentage increased from 48.5% at December 31, 2019 to 52.1% at June 30, 2020. The change in the percentage resulted from the decrease in shareholders' equity along with the increase in long-term debt. The change in shareholders’ equity reflects stock repurchases, dividend payments, and the impact of foreign currency translation adjustments, offset by our earnings. Generally, we repay any outstanding long-term debt with cash from operations or refinancing activities.

Critical Accounting Policies and Estimates

This Form 10-Q and our 2019 Annual Report include discussions of our accounting policies, as well as methods and estimates used in the preparation of our financial statements. We also provided a discussion of Critical Accounting Policies and Estimates in our 2019 Annual Report.

There have been no significant changes in our critical accounting policies and estimates from those reported in our 2019 Annual Report.

Recent Accounting Pronouncements

For a full discussion of the significant recent accounting pronouncements which may impact our financial statements, see Note 12.

Outlook

Our stated goal is to provide a 10% compounded return per year for our shareholders over any five-year period (defined by earnings per share growth plus dividend yield), although we may not necessarily achieve a 10% return each year. We continue to have confidence in our customer-focused strategy and approach to the market. We believe the fundamentals of how we run our business - a long-term view, safety-first culture, customer-focused solutions, technology-driven product offerings, and world-class supply chain capability - will continue to be beneficial for all of our stakeholders over the long term.

We expect our petroleum additives segment will continue to experience significant impacts to its operating performance due to the current economic environment. Our global business will see varying effects on demand that will differ by region based on our product portfolio and geographic coverage. We expect the global market will begin to improve when government restrictions on the movement of people, goods, and services are eased, as modern transportation and machinery cannot function without our products. The rate of improvement will depend heavily on the rate at which these restrictions are lifted and the overall economic improvement. We expect that the petroleum additives market will grow in the 1% to 2% range annually for the foreseeable future with 2020 being an exception. We plan to exceed that growth rate over the long-term.

In the past several years we have made significant investments in our business as the industry fundamentals remain positive. These investments have been and will continue to be in organizational talent, technology development and processes, and global infrastructure, consisting of technical centers, production capability and geographic expansion. We intend to utilize these investments to improve our ability to deliver the solutions that our customers value, expand our global reach, and enhance our operating results. We will continue to invest in our capabilities to provide even better value, service, technology, and customer solutions.

Typically, our business generates significant amounts of cash beyond what is necessary for the expansion and growth of our current offerings. We regularly review our many internal opportunities to utilize excess cash from technological, geographic, production capability, and product line perspectives. We believe our capital spending is creating the capability we need to grow and support our customers worldwide, and our research and development investments are positioning us well to provide added value to our customers. Our primary focus in the acquisition area remains on the petroleum additives industry. It is our view that this industry segment will provide the greatest opportunity for solid returns on our investments while minimizing risk. We remain focused on this strategy and will evaluate any future opportunities. We will continue to evaluate all alternative uses of cash to enhance shareholder value, including stock repurchases and dividends.

22

ITEM 3.  Quantitative and Qualitative Disclosures About Market Risk

At June 30, 2020, there were no material changes in our market risk from the information provided in the 2019 Annual Report.

ITEM 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain a system of internal control over financial reporting to provide reasonable, but not absolute, assurance of the reliability of the financial records and the protection of assets. Under Rule 13a-15(b) of the Securities Exchange Act of 1934 (the Exchange Act), we carried out an evaluation, with the participation of our management, including our principal executive officer and our principal financial officer, of the effectiveness of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Exchange Act, as of the end of the period covered by this report. Based upon that evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level.

There has been no change in our internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act, that occurred during the quarter ended June 30, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

23

PART II.  OTHER INFORMATION

ITEM 1.  Legal Proceedings

There have been no material changes to our legal proceedings as disclosed in "Legal Proceedings" in Item 3 of Part I of the 2019 Annual Report

ITEM 1A.  Risk Factors

There were no material changes during the six months ended June 30, 2020 to the risk factors disclosed in Item 1A - Risk Factors in our 2019 Annual Report and updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

ITEM 2.  Unregistered Sales of Equity Securities and Use of Proceeds

On December 13, 2018, our Board of Directors approved a share repurchase program authorizing management to repurchase up to $500 million of NewMarket's outstanding common stock effective January 1, 2019 until December 31, 2021, as market conditions warrant and covenants under our existing debt agreements permit. We may conduct the share repurchase in the open market, in privately negotiated transactions, through block trades or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The repurchase program does not require NewMarket to acquire any specific number of shares and may be terminated or suspended at any time. At June 30, 2020, approximately $400 million remained available under the 2018 authorization. The following table outlines the purchases during the second quarter of 2020 under this authorization.

Issuer Purchases of Equity Securities

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1 to April 30	14,745	$	383.97	14,745	$	400,000,179
May 1 to May 31	—	0.00		0	400,000,179
June 1 to June 30	—	0.00		0	400,000,179
Total	14,745	$	383.97	14,745	$	400,000,179

ITEM 6.  Exhibits

Exhibit 3.1	Articles of Incorporation Amended and Restated effective April 27, 2012 (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 1-32190) filed April 30, 2012)
Exhibit 3.2	NewMarket Corporation Bylaws Amended and Restated effective August 6, 2015 (incorporated by reference to Exhibit 3.1 to Form 8-K (File No. 1- 32190) filed August 6, 2015)
Exhibit 31(a)	Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald
Exhibit 31(b)	Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti
Exhibit 32(a)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Thomas E. Gottwald
Exhibit 32(b)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Brian D. Paliotti
Exhibit 101	Inline XBRL Instance Document and Related Items (the instance document does not appear in the Interactive Data File because its Inline XBRL tags are embedded within the Inline XBRL document)
Exhibit 104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

24

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	NEWMARKET CORPORATION
	(Registrant)
Date: July 30, 2020	By: /s/ Brian D. Paliotti
	Brian D. Paliotti
	Vice President and
	Chief Financial Officer
	(Principal Financial Officer)
Date: July 30, 2020	By: /s/ William J. Skrobacz
	William J. Skrobacz
	Controller
	(Principal Accounting Officer)

25

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, Thomas E. Gottwald, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 of NewMarket Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2020
	By:	/s/ Thomas E. Gottwald
	Thomas E. Gottwald
	Chairman of the Board, President, and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, Brian D. Paliotti, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 of NewMarket Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: July 30, 2020
	By:	/s/ Brian D. Paliotti
	Brian D. Paliotti
	Vice President and Chief Financial Officer

EX-32.A

Exhibit 32(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NewMarket Corporation (the “Company”) for the period ending June 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas E. Gottwald, chief executive officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Thomas E. Gottwald
Thomas E. Gottwald
Chairman of the Board, President, and Chief Executive Officer
July 30, 2020

EX-32.B

Exhibit 32(b)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NewMarket Corporation (the “Company”) for the period ending June 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian D. Paliotti, chief financial officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Brian D. Paliotti
Brian D. Paliotti
Vice President and Chief Financial Officer
July 30, 2020

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2020 shares
Cover [Abstract]
Document Type	10-Q
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	1-32190
Entity Registrant Name	NEWMARKET CORPORATION
Entity Central Index Key	0001282637
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	20-0812170
Entity Address, Address Line One	330 South Fourth Street
Entity Address, City or Town	Richmond,
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23219-4350
City Area Code	804
Local Phone Number	788-5000
Title of 12(b) Security	Common Stock, with no par value
Trading Symbol	NEU
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Small Business Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	10,923,999

XML

Consolidated Statements Of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 410,864	$ 563,417	$ 970,281	$ 1,100,033
Cost of goods sold	314,126	392,584	692,636	776,331
Gross profit	96,738	170,833	277,645	323,702
Selling, general, and administrative expenses	35,432	35,021	71,147	71,794
Research, development, and testing expenses	33,549	37,137	69,055	70,361
Operating profit	27,757	98,675	137,443	181,547
Interest and financing expenses, net	7,005	7,741	14,109	15,753
Other income (expense), net	6,516	5,757	14,012	11,705
Income before income tax expense	27,268	96,691	137,346	177,499
Income tax expense	4,919	22,517	29,456	41,120
Net income	$ 22,349	$ 74,174	$ 107,890	$ 136,379
Earnings per share - basic and diluted (in dollars per share)	$ 2.05	$ 6.63	$ 9.78	$ 12.20
Cash dividends declared per share (in dollars per share)	$ 1.90	$ 1.75	$ 3.80	$ 3.50

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 22,349	$ 74,174	$ 107,890	$ 136,379
Pension plans and other postretirement benefits:
Amortization of prior service cost (credit) included in net periodic benefit cost (income), net of income tax expense (benefit) of $(171) in second quarter 2020, $(186) in second quarter 2019, $(341) in six months 2020, and $(371) in six months 2019	(531)	(601)	(1,062)	(1,202)
Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), net of income tax expense (benefit) of $396 in second quarter 2020, $251 in second quarter 2019, $793 in six months 2020, and $505 in six months 2019	1,260	834	2,527	1,675
Total pension plans and other postretirement benefits	729	233	1,465	473
Foreign currency translation adjustments, net of income tax expense (benefit) of $(151) in second quarter 2020, $114 in second quarter 2019, $(992) in six months 2020, and $7 in six months 2019	(1,038)	(4,366)	(15,369)	580
Other comprehensive income (loss)	(309)	(4,133)	(13,904)	1,053
Comprehensive income	22,040	70,041	93,986	137,432
Amortization of prior service cost (credit) included in net periodic benefit cost (income), income tax expense (benefit)	(171)	(186)	(341)	(371)
Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), income tax expense (benefit)	396	251	793	505
Foreign currency translation adjustments, income tax expense (benefit)	$ (151)	$ 114	$ (992)	$ 7

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 102,064	$ 144,397
Trade and other accounts receivable, less allowance for credit losses	297,862	335,826
Inventories	354,821	365,938
Prepaid expenses and other current assets	35,277	33,237
Total current assets	790,024	879,398
Property, plant, and equipment, net	639,344	635,439
Intangibles (net of amortization) and goodwill	130,903	131,880
Prepaid pension cost	139,481	133,848
Operating lease right-of-use assets	55,935	60,505
Deferred charges and other assets	43,450	44,062
Total assets	1,799,137	1,885,132
Current liabilities:
Accounts payable	127,401	178,773
Accrued expenses	62,004	77,350
Dividends payable	18,530	19,217
Income taxes payable	3,508	10,632
Operating lease liabilities	12,592	14,036
Other current liabilities	9,948	8,887
Total current liabilities	233,983	308,895
Long-term debt	690,292	642,941
Operating lease liabilities-noncurrent	42,942	46,792
Other noncurrent liabilities	196,635	203,406
Total liabilities	1,163,852	1,202,034
Commitments and contingencies (Note 9)
Shareholders’ equity:
Common stock and paid-in capital (with no par value; authorized shares - 80,000,000; issued and outstanding shares - 10,923,999 at June 30, 2020 and 11,188,549 at December 31, 2019)	281	1,965
Accumulated other comprehensive loss	(176,652)	(162,748)
Retained earnings	811,656	843,881
Total shareholders' equity	635,285	683,098
Total liabilities and shareholders’ equity	$ 1,799,137	$ 1,885,132
Common Stock, Shares Authorized	80,000,000	80,000,000
Common Stock, Shares, Issued	10,923,999	11,188,549
Common Stock, Shares, Outstanding	10,923,999	11,188,549
Common Stock, No Par Value	$ 0	$ 0

XML

Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock and Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]
Balance (in shares) at Dec. 31, 2018		11,184,482
Balance at Dec. 31, 2018	$ 489,907	$ 0	$ (181,316)	$ 671,223
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	136,379			136,379
Other comprehensive income (loss)	1,053		1,053
Cash dividends	(39,158)			(39,158)
Stock-based compensation (in shares)		3,644
Stock-based compensation	995	$ 949		46
Balance (in shares) at Jun. 30, 2019		11,188,126
Balance at Jun. 30, 2019	$ 589,176	$ 949	(180,263)	768,490
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in dollars per share)	$ 3.50
Balance (in shares) at Mar. 31, 2019		11,188,126
Balance at Mar. 31, 2019	$ 538,196	$ 431	(176,130)	713,895
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	74,174			74,174
Other comprehensive income (loss)	(4,133)		(4,133)
Cash dividends	(19,579)			(19,579)
Stock-based compensation	518	$ 518
Balance (in shares) at Jun. 30, 2019		11,188,126
Balance at Jun. 30, 2019	$ 589,176	$ 949	(180,263)	768,490
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in dollars per share)	$ 1.75
Balance (in shares) at Dec. 31, 2019	11,188,549	11,188,549
Balance at Dec. 31, 2019	$ 683,098	$ 1,965	(162,748)	843,881
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	107,890			107,890
Other comprehensive income (loss)	(13,904)		(13,904)
Cash dividends	(41,916)			(41,916)
Repurchases of common stock (in shares)		(267,128)
Repurchases of common stock	(100,000)	$ (1,760)		(98,240)
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		(1,547)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(641)	$ (641)
Stock-based compensation (in shares)		4,125
Stock-based compensation	$ 758	$ 717		41
Balance (in shares) at Jun. 30, 2020	10,923,999	10,923,999
Balance at Jun. 30, 2020	$ 635,285	$ 281	(176,652)	811,656
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in dollars per share)	$ 3.80
Balance (in shares) at Mar. 31, 2020		10,938,744
Balance at Mar. 31, 2020	$ 639,249	$ 0	(176,343)	815,592
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,349			22,349
Other comprehensive income (loss)	(309)		(309)
Cash dividends	(20,756)			(20,756)
Repurchases of common stock (in shares)		(14,745)
Repurchases of common stock	(5,662)	$ (133)		(5,529)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(8)	(8)
Stock-based compensation	$ 422	$ 422
Balance (in shares) at Jun. 30, 2020	10,923,999	10,923,999
Balance at Jun. 30, 2020	$ 635,285	$ 281	$ (176,652)	$ 811,656
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends (in dollars per share)	$ 1.90

XML

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Statement of Cash Flows [Abstract]
Cash and cash equivalents at beginning of year	$ 144,397	$ 73,040
Cash flows from operating activities:
Net income	107,890	136,379
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	42,356	43,716
Deferred income tax expense	3,322	4,154
Working capital changes	(60,072)	(27,079)
Cash pension and postretirement contributions	(5,152)	(4,869)
Other, net	5,953	(1,685)
Net Cash Provided by (Used in) Operating Activities	94,297	150,616
Cash flows from investing activities:
Capital expenditures	(40,088)	(23,219)
Other, net	(927)	0
Net Cash Provided by (Used in) Investing Activities	(41,015)	(23,219)
Cash flows from financing activities:
Net borrowings (repayments) under revolving credit facility	47,059	(87,296)
Dividends paid	(41,916)	(39,158)
Repurchases of common stock	(100,000)	0
Other, net	2,217	(1,233)
Net Cash Provided by (Used in) Financing Activities	(92,640)	(127,687)
Effect of foreign exchange on cash and cash equivalents	(2,975)	469
(Decrease) increase in cash and cash equivalents	(42,333)	179
Cash and cash equivalents at end of period	$ 102,064	$ 73,219

XML

Financial Statement Presentation

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Presentation

Financial Statement Presentation

In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair presentation of, in all material respects, our consolidated financial position as of June 30, 2020 and December 31, 2019, and our consolidated results of operations, comprehensive income, and changes in shareholders' equity for the second quarter and six months ended June 30, 2020 and June 30, 2019, and our cash flows for the six months ended June 30, 2020 and June 30, 2019. All adjustments are of a normal, recurring nature, unless otherwise disclosed. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the NewMarket Corporation Annual Report on Form 10-K for the year ended December 31, 2019 (2019 Annual Report), as filed with the Securities and Exchange Commission (SEC). The results of operations for the six month period ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year ending December 31, 2020. The December 31, 2019 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

Unless the context otherwise indicates, all references to “we,” “us,” “our,” the “company,” and “NewMarket” are to NewMarket Corporation and its consolidated subsidiaries.

We adopted Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020. ASU 2016-13 mandates a methodology be utilized that determines expected credit losses on financial instruments instead of the former methodology that delayed recognition until a probable loss had been incurred.

We record our accounts receivable at amortized cost and at the net amount expected to be collected. Our accounts receivable are predominantly trade receivables and are derived through the sale of petroleum additives products. Our customers primarily consist of global, national, and independent oil companies. We maintain an allowance for credit losses for expected losses resulting from our customers not making required payments. We determine the adequacy of the allowance by periodically evaluating each customer’s receivable balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. The allowance for credit losses was not material at June 30, 2020 or December 31, 2019.

XML

Net Sales

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Net Sales

Net Sales

Our revenues are primarily derived from the manufacture and sale of petroleum additives products. We sell petroleum additives products across the world to customers located in the North America, Latin America, Asia Pacific, and Europe/Middle East/Africa/India regions. Our customers primarily consist of global, national, and independent oil companies. Our contracts generally include one performance obligation, which is providing petroleum additives products. The performance obligation is satisfied at a point in time when products are shipped, delivered, or consumed by the customer, depending on the underlying contracts.

In limited cases, we collect funds in advance of shipping product to our customers and recognizing the related revenue. These prepayments from customers are recorded as a contract liability to our customer until we recognize the revenue. Some of our contracts include variable consideration in the form of rebates or business development funds. We regularly review both rebates and business development funds and make adjustments when necessary, recognizing the full amount of any adjustment in the period identified.

The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 3.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Net sales
United States	$	119,928	$	188,031	$	301,772	$	360,045
China	57,442		62,115		103,240		121,408
Europe, Middle East, Africa, India	130,944		178,593		321,567		346,912
Asia Pacific, except China	66,759		80,301		146,172		162,830
Other foreign	35,791		54,377		97,530		108,838
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

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Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

The tables below show our consolidated segment results. The “All other” category includes the operations of the antiknock compounds business, as well as certain contracted manufacturing and services associated with Ethyl Corporation (Ethyl).

Net Sales by Segment

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives
Lubricant additives	$	343,418	$	462,659	$	807,104	$	899,879
Fuel additives	65,285		98,165		158,971		193,624
Total	408,703		560,824		966,075		1,093,503
All other	2,161		2,593		4,206		6,530
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

Segment Operating Profit

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives	$	33,061	$	102,992	$	146,732	$	190,855
All other	(399)		(342)		(64)		169
Segment operating profit	32,662		102,650		146,668		191,024
Corporate, general, and administrative expenses	(5,467)		(4,275)		(9,698)		(9,369)
Interest and financing expenses, net	(7,005)		(7,741)		(14,109)		(15,753)
Other income (expense), net	7,078		6,057		14,485		11,597
Income before income tax expense	$	27,268	$	96,691	$	137,346	$	177,499

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Pension Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Pension Plans and Other Postretirement Benefits

Pension Plans and Other Postretirement Benefits

The table below shows cash contributions made during the six months ended June 30, 2020, as well as the remaining cash contributions we expect to make during the year ending December 31, 2020, for our domestic and foreign pension plans and domestic postretirement benefit plan.

(in thousands)	Actual Cash Contributions for Six Months Ended June 30, 2020		Expected Remaining Cash Contributions for Year Ending December 31, 2020
Domestic plans
Pension benefits	$	1,447	$	2,893
Postretirement benefits	894		1,788
Foreign plans
Pension benefits	2,811		2,676

The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan. The service cost component of net periodic benefit cost (income) is reflected in cost of goods sold; selling, general, and administrative expenses; or research, development, and testing expenses, to reflect where other compensation costs arising from services rendered by the pertinent employee are recorded on the Consolidated Statements of Income. The remaining components of net periodic benefit cost (income) are recorded in other income (expense), net on the Consolidated Statements of Income.

	Domestic
	Pension Benefits				Postretirement Benefits
	Second Quarter Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	4,198	$	3,624	$	217	$	194
Interest cost	3,509		3,686		346		389
Expected return on plan assets	(9,306)		(8,657)		(241)		(244)
Amortization of prior service cost (credit)	67		(19)		(757)		(757)
Amortization of actuarial net (gain) loss	1,316		854		0		0
Net periodic benefit cost (income)	$	(216)	$	(512)	$	(435)	$	(418)

	Domestic
	Pension Benefits				Postretirement Benefits
	Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	8,395	$	7,247	$	434	$	388
Interest cost	7,017		7,371		691		778
Expected return on plan assets	(18,611)		(17,314)		(482)		(488)
Amortization of prior service cost (credit)	133		(38)		(1,514)		(1,514)
Amortization of actuarial net (gain) loss	2,632		1,707		0		0
Net periodic benefit cost (income)	$	(434)	$	(1,027)	$	(871)	$	(836)

	Foreign
	Pension Benefits
	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	2,061	$	1,618	$	4,207	$	3,258
Interest cost	929		1,206		1,913		2,427
Expected return on plan assets	(2,334)		(2,327)		(4,795)		(4,680)
Amortization of prior service cost (credit)	(10)		(10)		(21)		(21)
Amortization of actuarial net (gain) loss	339		235		692		474
Net periodic benefit cost (income)	$	985	$	722	$	1,996	$	1,458

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Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

We had 19,858 shares of nonvested restricted stock at June 30, 2020 and 22,536 shares of nonvested restricted stock at June 30, 2019 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive.

The nonvested restricted stock is considered a participating security since the restricted stock contains nonforfeitable rights to dividends. As such, we use the two-class method to compute basic and diluted earnings per share for all periods presented since this method yields the most dilutive result. The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands, except per-share amounts)	2020		2019		2020		2019
Earnings per share numerator:
Net income attributable to common shareholders before allocation of earnings to participating securities	$	22,349	$	74,174	$	107,890	$	136,379
Earnings allocated to participating securities	42		147		154		211
Net income attributable to common shareholders after allocation of earnings to participating securities	$	22,307	$	74,027	$	107,736	$	136,168
Earnings per share denominator:
Weighted-average number of shares of common stock outstanding - basic and diluted	10,904		11,166		11,020		11,166
Earnings per share - basic and diluted	$	2.05	$	6.63	$	9.78	$	12.20

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Inventories

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories

	June 30,		December 31,
(in thousands)	2020		2019
Finished goods and work-in-process	$	281,351	$	295,997
Raw materials	58,546		55,702
Stores, supplies, and other	14,924		14,239
	$	354,821	$	365,938

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Intangibles (Net of Amortization) and Goodwill

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles (Net of Amortization) and Goodwill

Intangibles (Net of Amortization) and GoodwillThe net carrying amount of intangibles and goodwill was $131 million at June 30, 2020 and $132 million at December 31, 2019. The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.

	June 30, 2020				December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Formulas and technology	$	9,600	$	6,500	$	9,600	$	5,416
Contract	2,000		700		2,000		600
Customer bases	14,240		11,483		14,240		10,931
Goodwill	123,746				122,987
	$	149,586	$	18,683	$	148,827	$	16,947

All of the intangibles relate to the petroleum additives segment. The change in the gross carrying amount between December 31, 2019 and June 30, 2020 is due to foreign currency fluctuation, as well as the completion in May 2020 of the purchase of the remaining outstanding capital stock of Aditivos Mexicanos, S.A. de C.V. (AMSA), which we acquired in 2017. The prior noncontrolling interest represented by the outstanding capital stock of AMSA was not material. There is no accumulated goodwill impairment.

Amortization expense was (in thousands):

Second quarter ended June 30, 2020	$	1,009
Six months ended June 30, 2020	1,736
Second quarter ended June 30, 2019	1,052
Six months ended June 30, 2019	2,103

Estimated amortization expense for the remainder of 2020, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):

2020	$	1,171
2021	2,156
2022	1,423
2023	907
2024	390
2025	390

We amortize the contract over 10 years; customer bases over 4 to 20 years; and formulas and technology over 3 to 6 years.

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Long-term Debt

6 Months Ended

Jun. 30, 2020

Long-term Debt, Unclassified [Abstract]

Long-term Debt

Long-term Debt

(in thousands)	June 30, 2020		December 31, 2019
Senior notes - 4.10% due 2022 (net of related deferred financing costs)	$	348,555	$	348,263
Senior notes - 3.78% due 2029	250,000		250,000
Revolving credit facility	91,737		44,678
	$	690,292	$	642,941

Senior Notes - The outstanding 4.10% senior notes are unsecured, with an aggregate principal amount of $350 million and are registered under the Securities Act of 1933, as amended (Securities Act). The outstanding 3.78% senior notes are unsecured and were issued in a 2017 private placement with The Prudential Insurance Company of America and certain other purchasers. The 3.78% senior notes agreement was amended in March 2020 to conform the covenants under the agreement with those in the 2020 revolving credit facility. We were in compliance with all covenants under both issuances of the senior notes as of June 30, 2020 and December 31, 2019.

Revolving Credit Facility - On March 5, 2020, we entered into a Credit Agreement (the Credit Agreement) with a term of five years. The Credit Agreement provides for a $900 million, multicurrency revolving credit facility, with a $500 million sublimit

for multicurrency borrowings, a $50 million sublimit for letters of credit, and a $20 million sublimit for swingline loans. The Credit Agreement includes an expansion feature which allows us, subject to certain conditions, to request an increase in the aggregate amount of the revolving credit facility or obtain incremental term loans in an amount up to $425 million. Concurrent with entering into the Credit Agreement, we terminated our former revolving credit facility that we had entered into in 2017.

The obligations under the Credit Agreement are unsecured and are fully and unconditionally guaranteed by NewMarket. The revolving credit facility is available on a revolving basis until March 5, 2025.

Borrowings made under the revolving credit facility bear interest, at our option, at an annual rate equal to (1) the Alternate Base Rate (ABR) plus the Applicable Rate (as defined in the Credit Agreement) solely in the case of loans denominated in U.S. dollars to NewMarket, (2) the Adjusted LIBO Rate plus the Applicable Rate, or (3) the Adjusted EURIBO Rate plus the Applicable Rate. ABR is the greatest of (i) the rate of interest publicly announced by the Administrative Agent as its prime rate, (ii) the NYFRB Rate (as defined in the Credit Agreement) from time to time plus 0.5%, and (iii) the Adjusted LIBO Rate for a one month interest period plus 1%. The Adjusted LIBO Rate means the rate at which Eurocurrency deposits in the London interbank market for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other applicable mandatory costs. The Adjusted EURIBO Rate means the rate at which Eurocurrency deposits denominated in euro in the euro interbank markets for certain periods (as selected by NewMarket) are quoted, as adjusted for statutory reserve requirements for Eurocurrency liabilities and other mandatory costs. The Applicable Rate ranges from 0.000% to 0.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the ABR. The Applicable Rate ranges from 0.875% to 1.375% (depending on our Leverage Ratio or Credit Ratings) for loans bearing interest based on the Adjusted LIBO Rate or the Adjusted EURIBO rate. The Credit Agreement contains the Administrative Agent's customary LIBOR successor rate provisions, which apply in the event LIBOR is no longer generally adopted as the benchmark rate for syndicated loans.

The Credit Agreement contains financial covenants that require NewMarket to maintain a consolidated Leverage Ratio (as defined in the Credit Agreement) of no more than 3.75 to 1.00 except during an Increased Leverage Period (as defined in the Credit Agreement). We were in compliance with all covenants under the revolving credit facility in effect at June 30, 2020 and at December 31, 2019.

We paid financing costs in 2020 of approximately $1.3 million related to this revolving credit facility and carried over deferred financing costs from our previous revolving credit facility of approximately $1.2 million, resulting in total deferred financing costs of $2.5 million as of June 30, 2020, which we are amortizing over the term of the Credit Agreement.

The average interest rate for borrowings under the credit agreements was 1.5% during the first six months of 2020 and 3.0% during the full year of 2019.

The outstanding borrowings under the revolving credit facilities amounted to $92 million at June 30, 2020 and $45 million at December 31, 2019. Outstanding letters of credit amounted to $3 million at both June 30, 2020 and December 31, 2019 resulting in the unused portion of the credit facility in effect amounting to $806 million at June 30, 2020 and $803 million at December 31, 2019.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Matters

We are involved in legal proceedings that are incidental to our business and may include administrative or judicial actions. Some of these legal proceedings involve governmental authorities and relate to environmental matters. For further information, see Environmental below.

While it is not possible to predict or determine with certainty the outcome of any legal proceeding, we believe the outcome of any of these proceedings, or all of them combined, will not result in a material adverse effect on our consolidated results of operations, financial condition, or cash flows.

Environmental

We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). While we believe we are currently adequately accrued for known environmental issues, it is possible that unexpected future costs could have a significant impact on our consolidated financial position, results of operations, and cash flows. Our total accruals for environmental remediation, dismantling, and decontamination were approximately $10 million at June 30, 2020 and $11 million at December 31, 2019. Of the total accrual, the current portion is included in accrued expenses and the noncurrent portion is included in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

Our more significant environmental sites include a former plant site in Louisiana (the Louisiana site) and a Houston, Texas plant site (the Texas site). Together, the amounts accrued on a discounted basis related to these sites represented approximately $7 million of the total accrual above at June 30, 2020 and $8 million at December 31, 2019, using discount rates ranging from 3% to 9% for both periods. The aggregate undiscounted amount for these sites was $9 million at June 30, 2020 and $10 million at December 31, 2019. Of the total accrued for these two sites, the amount related to remediation of groundwater and soil for the Louisiana site was $4 million at both June 30, 2020 and December 31, 2019. The amount related to remediation of groundwater and soil for the Texas site was $3 million at both June 30, 2020 and December 31, 2019.

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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following:

(in thousands)	Pension Plans and Other Postretirement Benefits		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2018	$	(86,555)	$	(94,761)	$	(181,316)
Other comprehensive income (loss) before reclassifications	0		580		580
Amounts reclassified from accumulated other comprehensive loss (a)	473		0		473
Other comprehensive income (loss)	473		580		1,053
Balance at June 30, 2019	$	(86,082)	$	(94,181)	$	(180,263)
Balance at December 31, 2019	$	(69,795)	$	(92,953)	$	(162,748)
Other comprehensive income (loss) before reclassifications	0		(15,369)		(15,369)
Amounts reclassified from accumulated other comprehensive loss (a)	1,465		0		1,465
Other comprehensive income (loss)	1,465		(15,369)		(13,904)
Balance at June 30, 2020	$	(68,330)	$	(108,322)	$	(176,652)

(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets, as well as the fair value, was $102 million at June 30, 2020 and $144 million at December 31, 2019. The fair value is categorized in Level 1 of the fair value hierarchy.

No material events occurred during the six months ended June 30, 2020 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis.

Long-term debt – We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to the 4.10% senior notes. The estimated fair value of our long-term debt is shown in the table below and is based primarily on estimated current rates available to us for debt of the same remaining duration and adjusted for nonperformance risk and credit risk. The estimated fair value of our publicly-traded 4.10% senior notes included in long-term debt in the table below is based on the last quoted price closest to June 30, 2020. The fair value of our debt instruments is categorized as Level 2.

	June 30, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt	$	690,292	$	748,286	$	642,941	$	677,253

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Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting PronouncementsRecently Issued Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (ASU 2020-04), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We continue to evaluate the impact of ASU 2020-04 on our consolidated financial statements, but do not currently expect a significant impact.

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Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Long-Term Debt	We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to the 4.10% senior notes.
New Accounting Pronouncements Policy	We adopted Accounting Standard Update No. 2016-13, "Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments" (ASU 2016-13) on January 1, 2020. ASU 2016-13 mandates a methodology be utilized that determines expected credit losses on financial instruments instead of the former methodology that delayed recognition until a probable loss had been incurred. We record our accounts receivable at amortized cost and at the net amount expected to be collected. Our accounts receivable are predominantly trade receivables and are derived through the sale of petroleum additives products. Our customers primarily consist of global, national, and independent oil companies. We maintain an allowance for credit losses for expected losses resulting from our customers not making required payments. We determine the adequacy of the allowance by periodically evaluating each customer’s receivable balance, considering their financial condition and credit history, and considering current and forecasted economic conditions. The allowance for credit losses was not material at June 30, 2020 or December 31, 2019.

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Net Sales (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Net Sales by Geographic Area

The following table provides information on our net sales by geographic area. Information on net sales by segment is in Note 3.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Net sales
United States	$	119,928	$	188,031	$	301,772	$	360,045
China	57,442		62,115		103,240		121,408
Europe, Middle East, Africa, India	130,944		178,593		321,567		346,912
Asia Pacific, except China	66,759		80,301		146,172		162,830
Other foreign	35,791		54,377		97,530		108,838
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Net Sales by Segment

Net Sales by Segment

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives
Lubricant additives	$	343,418	$	462,659	$	807,104	$	899,879
Fuel additives	65,285		98,165		158,971		193,624
Total	408,703		560,824		966,075		1,093,503
All other	2,161		2,593		4,206		6,530
Net sales	$	410,864	$	563,417	$	970,281	$	1,100,033

Segment Operating Profit

Segment Operating Profit

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Petroleum additives	$	33,061	$	102,992	$	146,732	$	190,855
All other	(399)		(342)		(64)		169
Segment operating profit	32,662		102,650		146,668		191,024
Corporate, general, and administrative expenses	(5,467)		(4,275)		(9,698)		(9,369)
Interest and financing expenses, net	(7,005)		(7,741)		(14,109)		(15,753)
Other income (expense), net	7,078		6,057		14,485		11,597
Income before income tax expense	$	27,268	$	96,691	$	137,346	$	177,499

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Pension Plans and Other Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans

The table below shows cash contributions made during the six months ended June 30, 2020, as well as the remaining cash contributions we expect to make during the year ending December 31, 2020, for our domestic and foreign pension plans and domestic postretirement benefit plan.

(in thousands)	Actual Cash Contributions for Six Months Ended June 30, 2020		Expected Remaining Cash Contributions for Year Ending December 31, 2020
Domestic plans
Pension benefits	$	1,447	$	2,893
Postretirement benefits	894		1,788
Foreign plans
Pension benefits	2,811		2,676

Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans

The tables below present information on net periodic benefit cost (income) for our domestic and foreign pension plans and domestic postretirement benefit plan. The service cost component of net periodic benefit cost (income) is reflected in cost of goods sold; selling, general, and administrative expenses; or research, development, and testing expenses, to reflect where other compensation costs arising from services rendered by the pertinent employee are recorded on the Consolidated Statements of Income. The remaining components of net periodic benefit cost (income) are recorded in other income (expense), net on the Consolidated Statements of Income.

	Domestic
	Pension Benefits				Postretirement Benefits
	Second Quarter Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	4,198	$	3,624	$	217	$	194
Interest cost	3,509		3,686		346		389
Expected return on plan assets	(9,306)		(8,657)		(241)		(244)
Amortization of prior service cost (credit)	67		(19)		(757)		(757)
Amortization of actuarial net (gain) loss	1,316		854		0		0
Net periodic benefit cost (income)	$	(216)	$	(512)	$	(435)	$	(418)

	Domestic
	Pension Benefits				Postretirement Benefits
	Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	8,395	$	7,247	$	434	$	388
Interest cost	7,017		7,371		691		778
Expected return on plan assets	(18,611)		(17,314)		(482)		(488)
Amortization of prior service cost (credit)	133		(38)		(1,514)		(1,514)
Amortization of actuarial net (gain) loss	2,632		1,707		0		0
Net periodic benefit cost (income)	$	(434)	$	(1,027)	$	(871)	$	(836)

	Foreign
	Pension Benefits
	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Service cost	$	2,061	$	1,618	$	4,207	$	3,258
Interest cost	929		1,206		1,913		2,427
Expected return on plan assets	(2,334)		(2,327)		(4,795)		(4,680)
Amortization of prior service cost (credit)	(10)		(10)		(21)		(21)
Amortization of actuarial net (gain) loss	339		235		692		474
Net periodic benefit cost (income)	$	985	$	722	$	1,996	$	1,458

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

The following table illustrates the earnings allocation method utilized in the calculation of basic and diluted earnings per share.

	Second Quarter Ended June 30,				Six Months Ended June 30,
(in thousands, except per-share amounts)	2020		2019		2020		2019
Earnings per share numerator:
Net income attributable to common shareholders before allocation of earnings to participating securities	$	22,349	$	74,174	$	107,890	$	136,379
Earnings allocated to participating securities	42		147		154		211
Net income attributable to common shareholders after allocation of earnings to participating securities	$	22,307	$	74,027	$	107,736	$	136,168
Earnings per share denominator:
Weighted-average number of shares of common stock outstanding - basic and diluted	10,904		11,166		11,020		11,166
Earnings per share - basic and diluted	$	2.05	$	6.63	$	9.78	$	12.20

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Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventories

	June 30,		December 31,
(in thousands)	2020		2019
Finished goods and work-in-process	$	281,351	$	295,997
Raw materials	58,546		55,702
Stores, supplies, and other	14,924		14,239
	$	354,821	$	365,938

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Intangibles (Net of Amortization) and Goodwill (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Information Related to Intangible Assets and Goodwill

The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.

	June 30, 2020				December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangible assets
Formulas and technology	$	9,600	$	6,500	$	9,600	$	5,416
Contract	2,000		700		2,000		600
Customer bases	14,240		11,483		14,240		10,931
Goodwill	123,746				122,987
	$	149,586	$	18,683	$	148,827	$	16,947

Schedule Of Amortization Expense

Amortization expense was (in thousands):

Second quarter ended June 30, 2020	$	1,009
Six months ended June 30, 2020	1,736
Second quarter ended June 30, 2019	1,052
Six months ended June 30, 2019	2,103

Schedule Of Estimated Annual Amortization Expense Related To Intangible Assets

Estimated amortization expense for the remainder of 2020, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):

2020	$	1,171
2021	2,156
2022	1,423
2023	907
2024	390
2025	390

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Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2020

Long-term Debt, Unclassified [Abstract]

Schedule Of Long-Term Debt

(in thousands)	June 30, 2020		December 31, 2019
Senior notes - 4.10% due 2022 (net of related deferred financing costs)	$	348,555	$	348,263
Senior notes - 3.78% due 2029	250,000		250,000
Revolving credit facility	91,737		44,678
	$	690,292	$	642,941

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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss, Net of Tax

The balances of, and changes in, the components of accumulated other comprehensive loss, net of tax, consist of the following:

(in thousands)	Pension Plans and Other Postretirement Benefits		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balance at December 31, 2018	$	(86,555)	$	(94,761)	$	(181,316)
Other comprehensive income (loss) before reclassifications	0		580		580
Amounts reclassified from accumulated other comprehensive loss (a)	473		0		473
Other comprehensive income (loss)	473		580		1,053
Balance at June 30, 2019	$	(86,082)	$	(94,181)	$	(180,263)
Balance at December 31, 2019	$	(69,795)	$	(92,953)	$	(162,748)
Other comprehensive income (loss) before reclassifications	0		(15,369)		(15,369)
Amounts reclassified from accumulated other comprehensive loss (a)	1,465		0		1,465
Other comprehensive income (loss)	1,465		(15,369)		(13,904)
Balance at June 30, 2020	$	(68,330)	$	(108,322)	$	(176,652)

(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Estimated Fair Value Of Long-Term Debt

	June 30, 2020				December 31, 2019
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt	$	690,292	$	748,286	$	642,941	$	677,253

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Net Sales (Schedule of Net Sales by Geographical Area) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 410,864	$ 563,417	$ 970,281	$ 1,100,033
United States
Disaggregation of Revenue [Line Items]
Net sales	119,928	188,031	301,772	360,045
China
Disaggregation of Revenue [Line Items]
Net sales	57,442	62,115	103,240	121,408
Europe, Middle East, Africa, India [Member]
Disaggregation of Revenue [Line Items]
Net sales	130,944	178,593	321,567	346,912
Asia Pacfic excl China [Member]
Disaggregation of Revenue [Line Items]
Net sales	66,759	80,301	146,172	162,830
Other Foreign [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 35,791	$ 54,377	$ 97,530	$ 108,838

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Segment Information (Net Sales By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Information [Line Items]
Net sales	$ 410,864	$ 563,417	$ 970,281	$ 1,100,033
Operating Segments [Member] | Petroleum Additives [Member]
Segment Information [Line Items]
Net sales	408,703	560,824	966,075	1,093,503
Operating Segments [Member] | All Other [Member]
Segment Information [Line Items]
Net sales	2,161	2,593	4,206	6,530
Operating Segments [Member] | Lubricant Additives [Member] | Petroleum Additives [Member]
Segment Information [Line Items]
Net sales	343,418	462,659	807,104	899,879
Operating Segments [Member] | Fuel Additives [Member] | Petroleum Additives [Member]
Segment Information [Line Items]
Net sales	$ 65,285	$ 98,165	$ 158,971	$ 193,624

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Segment Information (Segment Operating Profit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Information [Line Items]
Segment operating profit	$ 27,757	$ 98,675	$ 137,443	$ 181,547
Corporate, general, and administrative expenses	(35,432)	(35,021)	(71,147)	(71,794)
Interest and financing expenses, net	(7,005)	(7,741)	(14,109)	(15,753)
Other income (expense), net	6,516	5,757	14,012	11,705
Income before income tax expense	27,268	96,691	137,346	177,499
Operating Segments [Member]
Segment Information [Line Items]
Segment operating profit	32,662	102,650	146,668	191,024
Operating Segments [Member] | Petroleum Additives [Member]
Segment Information [Line Items]
Segment operating profit	33,061	102,992	146,732	190,855
Operating Segments [Member] | All Other [Member]
Segment Information [Line Items]
Segment operating profit	(399)	(342)	(64)	169
Corporate, Non-Segment [Member]
Segment Information [Line Items]
Corporate, general, and administrative expenses	(5,467)	(4,275)	(9,698)	(9,369)
Interest and financing expenses, net	(7,005)	(7,741)	(14,109)	(15,753)
Other income (expense), net	$ 7,078	$ 6,057	$ 14,485	$ 11,597

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Pension Plans and Other Postretirement Benefits (Cash Contributions Made And Expected Remaining Contributions For Pension And Postretirement Benefit Plans) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Pension Plan [Member] | Domestic Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual Cash Contributions	$ 1,447
Expected Remaining Cash Contributions	2,893
Pension Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual Cash Contributions	2,811
Expected Remaining Cash Contributions	2,676
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Actual Cash Contributions	894
Expected Remaining Cash Contributions	$ 1,788

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Pension Plans and Other Postretirement Benefits (Net Periodic Benefit Cost (Income) For Pension And Postretirement Benefit Plans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Pension Plan [Member] | Domestic Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4,198	$ 3,624	$ 8,395	$ 7,247
Interest cost	3,509	3,686	7,017	7,371
Expected return on plan assets	(9,306)	(8,657)	(18,611)	(17,314)
Amortization of prior service cost (credit)	67	(19)	133	(38)
Amortization of actuarial net (gain) loss	1,316	854	2,632	1,707
Net periodic benefit cost (income)	(216)	(512)	(434)	(1,027)
Pension Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	2,061	1,618	4,207	3,258
Interest cost	929	1,206	1,913	2,427
Expected return on plan assets	(2,334)	(2,327)	(4,795)	(4,680)
Amortization of prior service cost (credit)	(10)	(10)	(21)	(21)
Amortization of actuarial net (gain) loss	339	235	692	474
Net periodic benefit cost (income)	985	722	1,996	1,458
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	217	194	434	388
Interest cost	346	389	691	778
Expected return on plan assets	(241)	(244)	(482)	(488)
Amortization of prior service cost (credit)	(757)	(757)	(1,514)	(1,514)
Amortization of actuarial net (gain) loss	0	0	0	0
Net periodic benefit cost (income)	$ (435)	$ (418)	$ (871)	$ (836)

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Anti-dilutive shares of nonvested restricted stock that were excluded from the calculation of diluted earnings per share (in shares)			19,858	22,536
Earnings per share numerator:
Net income attributable to common shareholders before allocation of earnings to participating securities	$ 22,349	$ 74,174	$ 107,890	$ 136,379
Earnings allocated to participating securities	42	147	154	211
Net income attributable to common shareholders after allocation of earnings to participating securities	$ 22,307	$ 74,027	$ 107,736	$ 136,168
Earnings per share denominator:
Weighted-average number of shares of common stock outstanding - basic and diluted (in shares)	10,904,000	11,166,000	11,020,000	11,166,000
Earnings per share - basic and diluted (in dollars per share)	$ 2.05	$ 6.63	$ 9.78	$ 12.20

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods and work-in-process	$ 281,351	$ 295,997
Raw materials	58,546	55,702
Stores, supplies, and other	14,924	14,239
Inventories	$ 354,821	$ 365,938

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Intangibles (Net of Amortization) and Goodwill (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Net carrying amount of intangibles and goodwill	$ 130,903,000	$ 131,880,000
Accumulated goodwill impairment	$ 0	$ 0
Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated economic life, in years	10 years
Minimum [Member] | Customer Bases [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated economic life, in years	4 years
Minimum [Member] | Formulas And Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated economic life, in years	3 years
Maximum [Member] | Customer Bases [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated economic life, in years	20 years
Maximum [Member] | Formulas And Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated economic life, in years	6 years

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Intangibles (Net of Amortization) and Goodwill (Schedule Of Information Related To Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, Accumulated Amortization	$ 18,683	$ 16,947
Goodwill, Gross Carrying Amount	123,746	122,987
Amortizing intangible assets and Goodwill, Gross Carrying Amount	149,586	148,827
Formulas And Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, Gross Carrying Amount	9,600	9,600
Amortizing intangible assets, Accumulated Amortization	6,500	5,416
Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, Gross Carrying Amount	2,000	2,000
Amortizing intangible assets, Accumulated Amortization	700	600
Customer Bases [Member]
Finite-Lived Intangible Assets [Line Items]
Amortizing intangible assets, Gross Carrying Amount	14,240	14,240
Amortizing intangible assets, Accumulated Amortization	$ 11,483	$ 10,931

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Intangibles (Net of Amortization) and Goodwill (Schedule Of Amortization Expense And Estimated Annual Amortization Expense Related To Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,009	$ 1,052	$ 1,736	$ 2,103
2020	1,171		1,171
2021	2,156		2,156
2022	1,423		1,423
2023	907		907
2024	390		390
2025	$ 390		$ 390

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Long-term Debt (Narrative) (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) maximumNumberOfLeverage	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Long-term debt	$ 690,292,000	$ 642,941,000
4.10% Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount of debt	$ 350,000,000
Senior notes, interest rate	4.10%	4.10%
Debt instruments maturity date	2022	2022
Long-term debt	$ 348,555,000	$ 348,263,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt Issuance Cost, Gross, Noncurrent	$ 2,500,000
Term of credit facility, years	5 years
Line of Credit Facility, Maximum Borrowing Capacity	$ 900,000,000
Line Of Credit Facility Potential Increase To Maximum Borrowing Capacity	425,000,000
Line of Credit Facility Financing Costs Carried Over	$ 1,200,000
Revolving credit facility, maturity date	Mar. 05, 2025
Average interest rate during the period	1.50%	3.00%
Long-term debt	$ 91,737,000	$ 44,678,000
Outstanding letters of credit	3,000,000	3,000,000
Unused portion of revolving credit facility	806,000,000	$ 803,000,000
Payments of Financing Costs	$ 1,300,000
Revolving Credit Facility Spread On NYFRB Rate	0.50%
Debt Instrument, Basis Spread on Variable Rate	1.00%
MaximumLeverageRatio | maximumNumberOfLeverage	3.75
Revolving Credit Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000,000
Revolving Credit Facility [Member] | Multicurrency Borrowings [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	500,000,000
Revolving Credit Facility [Member] | Swingline Loans [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000,000
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Alternate Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Applicable Rate	0.00%
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Alternate Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Applicable Rate	0.375%
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Adjusted Libo Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Applicable Rate	0.875%
Revolving Credit Facility [Member] | Loans Bearing Interest Based On Adjusted Libo Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Applicable Rate	1.375%
3.78% Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes, interest rate	3.78%	3.78%
Debt instruments maturity date	2029	2029
Long-term debt	$ 250,000,000	$ 250,000,000

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Long-term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 690,292	$ 642,941
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	91,737	44,678
4.10% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 348,555	$ 348,263
Senior notes, interest rate	4.10%	4.10%
Debt instruments maturity date	2022	2022
3.78% Senior Notes [Member]
Debt Instrument [Line Items]
Long-term debt	$ 250,000	$ 250,000
Senior notes, interest rate	3.78%	3.78%
Debt instruments maturity date	2029	2029

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Commitments and Contingencies (Environmental) (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Site Contingency [Line Items]
Accruals for environmental remediation, dismantling, and decontamination	$ 10	$ 11
Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member]
Site Contingency [Line Items]
Accruals for environmental remediation, dismantling, and decontamination	7	8
Accruals for environmental remediation, dismantling, and decontamination, undiscounted	9	10
Former TEL Plant Site, Louisiana [Member]
Site Contingency [Line Items]
Accrual for remediation of groundwater and soil	4	4
Houston, Texas Plant Site [Member]
Site Contingency [Line Items]
Accrual for remediation of groundwater and soil	$ 3	$ 3
Minimum [Member] | Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member]
Site Contingency [Line Items]
Discount rate	3.00%	3.00%
Maximum [Member] | Former TEL Plant Site Louisiana And Houston Texas Plant Site [Member]
Site Contingency [Line Items]
Discount rate	9.00%	9.00%

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Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss (Schedule of Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Pension Plans and Other Postretirement Benefits, Beginning Balance				$ (69,795)	$ (86,555)
Foreign Currency Translation Adjustments, Beginning Balance				(92,953)	(94,761)
Accumulated Other Comprehensive (Loss) Income, Beginning Balance				(162,748)	(181,316)
Other comprehensive income (loss) before reclassifications, Pension Plans and Other Postretirement Benefits				0	0
Other comprehensive income (loss) before reclassifications, Foreign Currency Translation Adjustments				(15,369)	580
Other comprehensive income (loss) before reclassifications, Accumulated Other Comprehensive (Loss) Income				(15,369)	580
Amounts reclassified from accumulated other comprehensive loss, Pension Plans and Other Postretirement Benefits	[1]			1,465	473
Amounts reclassified from accumulated other comprehensive loss, Foreign Currency Translation Adjustments				0	0
Amounts reclassified from accumulated other comprehensive loss, Accumulated Other Comprehensive (Loss) Income				1,465	473
Total pension plans and other postretirement benefits		$ 729	$ 233	1,465	473
Other comprehensive income (loss), Foreign Currency Translation Adjustments		(1,038)	(4,366)	(15,369)	580
Other comprehensive income (loss)		(309)	(4,133)	(13,904)	1,053
Pension Plans and Other Postretirement Benefits, Ending Balance		(68,330)	(86,082)	(68,330)	(86,082)
Foreign Currency Translation Adjustments, Ending Balance		(108,322)	(94,181)	(108,322)	(94,181)
Accumulated Other Comprehensive (Loss) Income, Ending Balance		$ (176,652)	$ (180,263)	$ (176,652)	$ (180,263)

[1] The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income). See Note 4 in this Quarterly Report on Form 10-Q and Note 17 in our 2019 Annual Report for further information.

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 102,064	$ 144,397
4.10% Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes, interest rate	4.10%	4.10%
Carrying Amount in Consolidated Balance Sheets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 102,000	$ 144,000
Fair Value, Inputs, Level 1 [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 102,000	$ 144,000

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Fair Value Measurements (Estimated Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term debt	$ 690,292	$ 642,941
Fair Value, Inputs, Level 2 [Member]
Debt Instrument [Line Items]
Long-term debt (excluding capital lease obligations), Fair Value	$ 748,286	$ 677,253