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 March 31, 2020

Commission file number 1-32737

KOPPERS HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	20-1878963
(State of incorporation)	(IRS Employer Identification No.)

436 Seventh Avenue

Pittsburgh, Pennsylvania 15219

(Address of principal executive offices)

(412) 227-2001

(Registrant’s telephone number, including area code)

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	KOP	The 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 ☒ 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 (§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 ☒ 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 ☒  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 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 ☒

Common Stock, par value $0.01 per share, outstanding at April 30, 2020 amounted to 20,981,686 shares.

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PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KOPPERS HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31,
	2020			2019
(Dollars in millions, except per share amounts)	(Unaudited)			(Unaudited)
Net sales	$	401.9		$	376.9
Cost of sales		340.3			301.8
Depreciation and amortization		13.5			13.6
Impairment and restructuring charges		(0.2	)		0.3
Selling, general and administrative expenses		34.7			36.9
Operating profit		13.6			24.3
Other income, net		0.5			0.5
Interest expense		14.0			16.2
Income from continuing operations before income taxes		0.1			8.6
Income tax provision		(1.8	)		(1.2	)
Income from continuing operations		1.9			9.8
(Loss) income from discontinued operations, net    of tax benefit (expense) of $0.8 and $(1.1)		(4.4	)		2.7
Net (loss) income		(2.5	)		12.5
Net (loss) income attributable to noncontrolling interests		(1.1	)		0.9
Net (loss) income attributable to Koppers	$	(1.4	)	$	11.6
Earnings (loss) per common share attributable to    Koppers common shareholders:
Basic -
Continuing operations	$	0.09		$	0.47
Discontinued operations		(0.16	)		0.09
(Loss) earnings per basic common share	$	(0.07	)	$	0.56
Diluted -
Continuing operations	$	0.09		$	0.47
Discontinued operations		(0.16	)		0.09
(Loss) earnings per diluted common share	$	(0.07	)	$	0.56
Comprehensive (loss) income	$	(51.0	)	$	20.7
Comprehensive (loss) income attributable to noncontrolling interests		(1.3	)		1.1
Comprehensive (loss) income attributable to Koppers	$	(49.7	)	$	19.6
Weighted average shares outstanding (in thousands):
Basic		20,852			20,575
Diluted		21,315			20,881

The accompanying notes are an integral part of these condensed consolidated financial statements.

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KOPPERS HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEET

	March 31, 2020			December 31, 2019
(Dollars in millions, except per share amounts)	(Unaudited)
Assets
Cash and cash equivalents	$	54.2		$	32.3
Accounts receivable, net of allowance of $2.4 and $2.6		176.8			161.7
Income tax receivable		4.2			1.1
Inventories, net		276.2			288.5
Assets of discontinued operations held for sale		67.5			17.1
Other current assets		26.0			18.8
Total current assets		604.9			519.5
Property, plant and equipment, net		355.4			358.8
Operating lease right-of-use assets		106.1			112.3
Goodwill		292.7			296.1
Intangible assets, net		161.7			168.4
Deferred tax assets		31.0			23.7
Non-current assets of discontinued operations held for sale		0.0			59.3
Other assets		21.3			26.5
Total assets	$	1,573.1		$	1,564.6
Liabilities
Accounts payable	$	155.6		$	162.8
Accrued liabilities		100.9			89.3
Current operating lease liabilities		21.5			22.0
Current maturities of long-term debt		10.2			10.2
Liabilities of discontinued operations held for sale		34.6			11.9
Total current liabilities		322.8			296.2
Long-term debt		943.0			891.0
Accrued postretirement benefits		46.5			46.6
Deferred tax liabilities		6.4			6.8
Operating lease liabilities		86.4			91.5
Non-current liabilities of discontinued operations held for sale		0.0			25.1
Other long-term liabilities		58.8			48.7
Total liabilities		1,463.9			1,405.9
Commitments and contingent liabilities (Note 18)
Equity
Senior Convertible Preferred Stock, $0.01 par value per share; 10,000,000    shares authorized; no shares issued		0.0			0.0
Common Stock, $0.01 par value per share; 80,000,000 shares authorized;    23,556,317 and 23,321,087 shares issued		0.2			0.2
Additional paid-in capital		224.7			221.9
Retained earnings		92.4			93.8
Accumulated other comprehensive loss		(126.1	)		(77.7	)
Treasury stock, at cost, 2,574,631 and 2,515,925 shares		(92.1	)		(90.9	)
Total Koppers shareholders’ equity		99.1			147.3
Noncontrolling interests		10.1			11.4
Total equity		109.2			158.7
Total liabilities and equity	$	1,573.1		$	1,564.6

The accompanying notes are an integral part of these condensed consolidated financial statements.

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KOPPERS HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)	(Unaudited)			(Unaudited)
Cash (used in) provided by operating activities:
Net (loss) income	$	(2.5	)	$	12.5
Adjustments to reconcile net cash (used in) provided by operating activities:
Depreciation and amortization		14.5			14.6
Change in derivative liability		8.4			(3.1	)
Stock-based compensation		2.5			2.9
Non-cash interest expense		0.7			0.6
Deferred income taxes		(1.9	)		0.4
Insurance proceeds		0.0			(1.4	)
Change in other liabilities		(5.0	)		(3.2	)
Other - net		4.2			(0.7	)
Changes in working capital:
Accounts receivable		(21.0	)		1.7
Inventories		8.6			(0.5	)
Accounts payable		(6.7	)		(30.1	)
Accrued liabilities		(11.8	)		(4.5	)
Other working capital		(7.2	)		(3.5	)
Net cash used in operating activities		(17.2	)		(14.3	)
Cash (used in) provided by investing activities:
Capital expenditures		(10.6	)		(11.0	)
Insurance proceeds received		0.0			1.4
Net cash provided by divestitures and asset sales		0.0			0.3
Net cash used in investing activities		(10.6	)		(9.3	)
Cash provided by (used in) financing activities:
Net increase in credit facility borrowings		54.1			34.0
Repayments of long-term debt		(2.6	)		(12.6	)
Issuances of Common Stock		0.2			0.3
Repurchases of Common Stock		(1.2	)		(0.9	)
Payment of debt issuance costs		(0.2	)		0.0
Net cash provided by financing activities		50.3			20.8
Effect of exchange rate changes on cash		(0.9	)		0.4
Change in cash and cash equivalents of discontinued operations held for sale		0.3			(2.2	)
Net increase (decrease) in cash and cash equivalents		21.9			(4.6	)
Cash and cash equivalents at beginning of period		32.3			37.4
Cash and cash equivalents at end of period	$	54.2		$	32.8
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	7.9		$	7.6
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	0.3		$	14.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

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KOPPERS HOLDINGS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of Koppers Holdings Inc.’s and its subsidiaries’ (“Koppers”, “Koppers Holdings”, the “Company”, “we” or “us”) financial position and interim results as of and for the periods presented have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Because our business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The Condensed Consolidated Balance Sheet as of December 31, 2019 has been summarized from the audited balance sheet contained in the Annual Report on Form 10-K as of and for the year ended December 31, 2019. Certain prior period amounts in the consolidated financial statements and notes to the consolidated financial statements have been reclassified to conform to the current period’s presentation as a result of reporting discontinued operations. See Note 4 – “Discontinued Operations.” 

The financial information included herein should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019.

COVID-19 Assessment

In March 2020, the World Health Organization categorized the current coronavirus disease (“COVID-19”) as a pandemic. COVID-19 continues to spread throughout the United States and other countries across the world, and the duration and severity of its effects are currently unknown. While we expect the effects of the pandemic to continue to negatively impact our results of operations, cash flows and financial position, the current level of uncertainty over the economic and operational impacts of COVID-19 means the related financial impact cannot be reasonably estimated at this time. Our condensed consolidated financial statements presented herein reflect certain estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented.

Such estimates and assumptions affect, among other things, our goodwill, long-lived asset and identifiable intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes; the allowance for doubtful accounts; and measurement of cash incentive plans. Due to COVID-19, we determined that a goodwill impairment evaluation triggering event occurred during the three months ended March 31, 2020. After performing an interim review of impairment as of March 31, 2020, our reporting units continue to have estimated fair values greater than their respective carrying values. Events and changes in circumstances arising after March 31, 2020, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods.

2. New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 is meant to simplify accounting for income taxes by removing certain exceptions to the principles in Topic 740 and amends existing guidance to facilitate consistent application. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

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3. Plant Closures and Divestitures

Over the past six years, we have been restructuring our Carbon Materials and Chemicals (“CMC”) segment in order to concentrate our facilities in regions where we believe we hold key competitive advantages to better serve our global customers. These closure activities include:

• In February 2020, we entered into a definitive agreement to sell Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) to Fangda Carbon New Material Co., Ltd and C-Chem Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. Refer to “Note 4 – Discontinued Operations” for more details.

• The cessation of naphthalene refining activities at our Follansbee, West Virginia coal tar distillation facility in the fourth quarter of 2018 subsequent to the commissioning of a new naphthalene refining plant in Stickney, Illinois. In August 2019, we ceased remaining production activities at the plant.

• In September 2018, we sold our UK-based specialty chemicals business

• In November 2016, we sold our 30-percent interest in Tangshan Kailuan Koppers Carbon Chemical Company Limited (“TKK”) located in the Hebei Province in China.

• In July 2016, we discontinued coal tar distillation activities at our CMC plant located in Clairton, Pennsylvania. In October 2018, we sold the facility and as part of the transaction, we transferred cash to the buyer and the buyer assumed decommissioning, demolition and site restoration responsibilities.

• In March 2016, we discontinued production at our 60-percent owned CMC plant located in Tangshan, China.

• In February 2016, we ceased coal tar distillation and specialty pitch operations at both of our United Kingdom CMC facilities. In July 2016, we sold substantially all of our CMC tar distillation properties and assets in the United Kingdom.

• In April 2014, we ceased coal tar distillation activities at our CMC facility located in Uithoorn, the Netherlands.

Other closure and divestiture activity relates to our Railroad Utility Products and Services (“RUPS”) segment. These activities include:

• In August 2019, we sold our utility pole treatment plant located in Blackstone, Virginia.

• In August 2015, we closed a crosstie treating plant located in Green Spring, West Virginia.

• In July 2015, we sold the assets of our 50 percent interest in KSA Limited Partnership, a concrete crosstie manufacturer.

In addition, in 2011, we ceased carbon black production at our CMC facility located in Kurnell, Australia. Costs associated with this closure are included in (loss) income from discontinued operations on the consolidated statement of operations and comprehensive (loss) income.

Details of the restructuring activities and related reserves are as follows:

	Severance and employee benefits			Asset Retirement			Other			Total
(Dollars in millions)
Reserve at December 31, 2018	$	1.7		$	3.6		$	2.8		$	8.1
Accrual		0.0			3.4			3.0			6.4
Cost charged against assets		0.0			0.0			(3.0	)		(3.0	)
Reversal of accrued charges		(0.3	)		(0.1	)		0.0			(0.4	)
Cash paid		(0.5	)		(6.2	)		(0.3	)		(7.0	)
Currency translation		0.0			0.0			(0.1	)		(0.1	)
Reserve at December 31, 2019	$	0.9		$	0.7		$	2.4		$	4.0
Reversal of accrued charges		(0.2	)		0.0			0.0			(0.2	)
Reserve at March 31, 2020	$	0.7		$	0.7		$	2.4		$	3.8

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4. Discontinued Operations

On February 18, 2020, we entered into a definitive agreement to sell KJCC to Fangda Carbon New Material Co., Ltd and C-Chem Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. KJCC is located in China and is a 75 percent-owned coal tar distillation company which is part of our CMC segment. The sales price is $107.0 million, subject to adjustment for cash, debt and working capital at closing, which is expected to occur four to six months after signing due to required regulatory approvals in China and achievement of other customary closing conditions. At closing, we estimate the gain on the sale of KJCC will be approximately $45 million and net cash proceeds to Koppers will be approximately $65 million, after noncontrolling interest, taxes and expenses. The sale of KJCC represents a strategic shift that will have a major effect on our operations and financial results and is, therefore, classified as discontinued operations in our consolidated financial statements and notes, which have been restated accordingly.

Net sales and operating (loss) profit from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net sales	$	9.9		$	58.0
Operating (loss) profit		(5.1	)		4.1

The cash flows related to KJCC have not been restated in the consolidated statement of cash flows. Net cash inflows and outflows from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net cash (used in) provided by operating activities	$	(0.2	)	$	13.1
Net cash used in investing activities		(0.1	)		(0.7	)
Net cash used in financing activities		0.0			(10.1	)
Effect of exchange rate changes on cash		0.0			(0.1	)
Net (decrease) increase in cash and cash equivalents		(0.3	)		2.2

Assets Held for Sale

Assets and liabilities (the “disposal group”) are classified as held for sale when, among other items, the sale of the asset is probable and the completed sale is expected to occur within one year. Upon classification as held for sale, such assets are no longer depreciated or depleted, and a measurement for impairment is performed to determine if there is any excess of carrying value over fair value less costs to sell. Subsequent changes to estimated fair value less the cost to sell will impact the measurement of assets held for sale if the fair value is determined to be less than the carrying value of the assets.

The agreement to sell KJCC met all of the criteria to classify its assets and liabilities as held for sale in the first quarter of 2020. As part of the required evaluation under the held for sale guidance, we determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded.

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The following represents the carrying amount of assets and liabilities, by major class, classified as held for sale on the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Assets
Cash and cash equivalents	$	0.4	$	0.7
Accounts receivable		1.4		2.2
Income tax receivable		0.8		0.8
Inventories, net		5.5		10.6
Property, plant and equipment, net		54.8		0.0
Operating lease right-of-use assets		1.1		0.0
Other current assets		3.5		2.8
Total current assets held for sale		67.5		17.1
Property, plant and equipment, net		0.0		56.6
Operating lease right-of-use assets		0.0		1.2
Other assets		0.0		1.5
Total non-current assets held for sale		0.0		59.3
Total assets held for sale	$	67.5	$	76.4
Liabilities
Accounts payable	$	4.3	$	7.1
Accrued liabilities		5.8		4.7
Current operating lease liabilities		1.0		0.1
Deferred tax liabilities		0.6		0.0
Other current liabilities		22.9		0.0
Total current liabilities held for sale		34.6		11.9
Deferred tax liabilities		0.0		0.6
Operating lease liabilities		0.0		1.1
Other long-term liabilities		0.0		23.4
Total non-current liabilities held for sale		0.0		25.1
Total liabilities held for sale	$	34.6	$	37.0

The above amounts are excluded from the respective balance sheet footnotes as of March 31, 2020 and December 31, 2019. We have incurred aggregated deal costs related to this divestiture of $1.0 million during the three months ended March 31, 2020, which are included in (loss) income from discontinued operations on the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income.

5. Fair Value Measurements

Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2020 and December 31, 2019 are as follows:

	March 31, 2020				December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash	$	54.2	$	54.2	$	32.3	$	32.3
Investments and other assets(a)		1.2		1.2		1.2		1.2
Financial liabilities:
Total debt	$	950.9	$	963.4	$	896.2	$	911.9

(a) Excludes equity method investments.

Cash and cash equivalents – The carrying value approximates fair value because of the short maturity of those instruments.

Investments and other assets – Represents the broker-quoted cash surrender value on universal life insurance policies. This asset is classified as Level 2 in the valuation hierarchy and is measured from values received from financial institutions.

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Debt – The fair value of our long-term debt is estimated based on the market prices for the same or similar issuances or on the current rates offered to us for debt of the same remaining maturities (Level 2). The fair value of our Credit Facility approximates carrying value due to the variable rate nature of this instrument.

6. Comprehensive (Loss) Income and Equity

Total comprehensive (loss) income for the three months ended March 31, 2020 and 2019 is summarized in the table below:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net (loss) income	$	(2.5	)	$	12.5
Changes in other comprehensive (loss) income:
Currency translation adjustment		(23.3	)		1.8
Unrealized (loss) gain on cash flow hedges, net    of tax benefit (expense) of $11.3 and $(2.8)		(25.4	)		6.2
Unrecognized pension net loss, net of tax    (expense) of $(0.1)		0.2			0.2
Total comprehensive (loss) income		(51.0	)		20.7
Comprehensive (loss) income attributable to    noncontrolling interests		(1.3	)		1.1
Comprehensive (loss) income attributable to Koppers	$	(49.7	)	$	19.6

Amounts reclassified from accumulated other comprehensive loss to net (loss) income consist of amounts shown for changes in or amortization of unrecognized pension net loss. This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost as disclosed in “Note 13 – Pensions and Post-Retirement Benefit Plans.” Other amounts reclassified from accumulated other comprehensive loss include amounts related to derivative financial instruments, net of tax, of $(1.1) million for the three ended March 31, 2020, and $(0.6) million for the three months ended March 31, 2019.

The following tables present the change in equity for the three months ended March 31, 2020 and 2019, respectively:

(Dollars in millions)	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests			Total Equity
Balance at December 31,   2019	$	0.2	$	221.9	$	93.8		$	(77.7	)	$	(90.9	)	$	11.4		$	158.7
Net loss		0.0		0.0		(1.4	)		0.0			0.0			(1.1	)		(2.5	)
Issuance of common stock		0.0		0.2		0.0			0.0			0.0			0.0			0.2
Employee stock plans		0.0		2.5		0.0			0.0			0.0			0.0			2.5
Other comprehensive (loss) income
Currency translation       adjustment		0.0		0.0		0.0			(23.2	)		0.0			(0.2	)		(23.3	)
Unrealized loss on       cash flow hedges		0.0		0.0		0.0			(25.4	)		0.0			0.0			(25.4	)
Unrecognized pension       net loss		0.0		0.0		0.0			0.2			0.0			0.0			0.2
Repurchases of common   stock		0.0		0.0		0.0			0.0			(1.2	)		0.0			(1.2	)
Balance at March 31, 2020	$	0.2	$	224.7	$	92.4		$	(126.1	)	$	(92.1	)	$	10.1		$	109.2

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(Dollars in millions)	Common Stock		Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests		Total Equity
Balance at December 31,   2018	$	0.2	$	206.0		$	27.2	$	(87.2	)	$	(90.0	)	$	10.8	$	67.0
Net income		0.0		0.0			11.6		0.0			0.0			0.9		12.5
Issuance of common stock		0.0		0.3			0.0		0.0			0.0			0.0		0.3
Employee stock plans		0.0		2.9			0.0		0.0			0.0			0.0		2.9
Other comprehensive income
Currency translation       adjustment		0.0		0.0			0.0		1.5			0.0			0.3		1.8
Unrealized gain on       cash flow hedges		0.0		0.0			0.0		6.2			0.0			0.0		6.2
Unrecognized pension       net loss		0.0		0.0			0.0		0.2			0.0			0.0		0.2
Repurchases of common   stock		0.0		(0.2	)		0.1		0.1			(0.8	)		0.0		(0.8	)
Balance at March 31, 2019	$	0.2	$	209.0		$	38.9	$	(79.2	)	$	(90.8	)	$	12.0	$	90.1

7. Earnings per Common Share

The computation of basic earnings per common share for the periods presented is based upon the weighted average number of common shares outstanding during the periods. The computation of diluted earnings per common share includes the effect of non-vested nonqualified stock options and restricted stock units assuming such options and stock units were outstanding common shares at the beginning of the period. The effect of antidilutive securities is excluded from the computation of diluted loss per common share, if any.

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions, except share amounts, in thousands)
Net (loss) income attributable to Koppers	$	(1.4	)	$	11.6
(Loss) income from discontinued operations		(4.4	)		2.7
Non-controlling loss (income) from discontinued operations		1.1			(0.9	)
Income from continuing operations attributable to Koppers	$	1.9		$	9.8
Weighted average common shares outstanding:
Basic		20,852			20,575
Effect of dilutive securities		463			306
Diluted		21,315			20,881
Earnings per common share – continuing operations:
Basic earnings per common share	$	0.09		$	0.47
Diluted earnings per common share		0.09			0.47
Other data:
Antidilutive securities excluded from computation of    diluted earnings per common share		682			534

8. Stock-based Compensation

We have outstanding stock-based compensation awards that were granted under the amended and restated 2005 Long-Term Incentive Plan (the “2005 LTIP”), the 2018 Long-Term Incentive Plan (the “2018 LTIP”) and the 2020 Long-Term Incentive Plan (the “2020 LTIP”). The 2005 LTIP, the 2018 LTIP and the 2020 LTIP are collectively referred to as the “LTIP”. On May 6, 2020, the 2020 LTIP was approved by our shareholders and the 2018 LTIP was frozen. Similar to the 2018 LTIP, the 2020 LTIP provides for the grant to eligible persons of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance awards, dividend equivalents and other stock-based awards, which are collectively referred to as the “awards.”

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Restricted Stock Units and Performance Stock Units

Under the LTIP, the board of directors grants restricted stock units and performance stock units to certain employee participants (collectively, the “stock units”). Compensation expense for non-vested stock units is recorded over the vesting period based on the fair value at the date of grant. The fair value of restricted stock units is the market price of the underlying common stock on the date of grant and the fair value of performance stock units is determined using a Monte Carlo valuation model. For grants to most employees, the restricted stock units vest in four equal annual installments. Restricted stock units that have one-year vesting periods are also issued under the LTIP to members of the board of directors in connection with annual director compensation and, from time to time, are issued to employees in connection with employee compensation with vesting periods of typically two years or less.

Performance stock units have vesting based upon a market condition. These performance stock units have multi-year performance objectives and a three-year period for vesting (if the applicable performance objective is achieved). The applicable performance objective is based on our total shareholder return relative to the Standard & Poor’s SmallCap 600 Materials Index. The number of performance stock units granted represents the target award and participants have the ability to earn between zero and 200 percent of the target award based upon actual performance. If minimum performance criteria are not achieved, no performance stock units will vest. We have the discretion to settle the award in cash rather than shares, although we currently expect that all awards will be settled by the issuance of shares.

We calculated the fair value of the performance stock unit awards on the date of grant using the assumptions listed below:

	March 2020 Grant			March 2019 Grant			May 2018 Grant			March 2018 Grant
Grant date price per share of   performance award	$	19.63		$	26.63		$	39.10		$	41.60
Expected dividend yield per   share		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		45.60	%		39.00	%		39.40	%		39.40	%
Risk-free interest rate		0.72	%		2.50	%		2.35	%		2.35	%
Look-back period in years		2.83			2.82			2.84			2.84
Grant date fair value per share	$	11.56		$	40.30		$	44.29		$	47.12

Dividends declared, if any, on our common stock during the period prior to vesting of the stock units are credited at equivalent value as additional stock units and become payable as additional common shares upon vesting. In the event of termination of employment, other than retirement, death or disability, any non-vested stock units are forfeited, including additional stock units credited from dividends. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the stock units over the service period will result. There are special vesting provisions for the stock units related to a change in control. 

The following table shows a summary of the performance stock units as of March 31, 2020:

Performance Period	Minimum Shares		Target Shares		Maximum Shares
2018 – 2020		0		119,630		239,260
2019 – 2021		0		195,047		285,950
2020 – 2022		0		231,128		462,256

Performance stock units for the 2017 – 2019 performance period vested in March 2020 at 100 percent of the target share amount of 110,262.

The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2020:

	Restricted Stock Units			Performance Stock Units			Total Stock Units			Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2019		343,012			445,186			788,198		$	40.18
Granted		295,873			232,481			528,354		$	16.09
Vested		(102,369	)		(110,168	)		(212,537	)	$	47.19
Forfeited		(23,129	)		(21,694	)		(44,823	)	$	34.21
Non-vested at March 31, 2020		513,387			545,805			1,059,192		$	27.01

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Stock Options

Stock options to most executive officers vest and become exercisable in four equal annual installments. The stock options have a term of ten years. In the event of termination of employment, other than retirement, death or disability, any non-vested options are forfeited. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the options over the service period will result. There are special vesting provisions for the stock options related to a change in control.

Compensation expense for non-vested stock options is recorded over the vesting period based on the fair value at the date of grant. We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below:

	March 2020 Grant			March 2019 Grant			March 2018 Grant			March 2017 Grant
Grant date price per share of stock   option award	$	19.63		$	26.63		$	41.60		$	44.10
Expected dividend yield per share		0.00	%		0.00	%		0.00	%		0.00	%
Expected life in years		6.40			6.14			5.73			5.77
Expected volatility		42.85	%		39.44	%		37.05	%		39.70	%
Risk-free interest rate		0.87	%		2.53	%		2.67	%		2.13	%
Grant date fair value per share of option awards	$	8.42		$	11.29		$	16.38		$	17.90

We do not expect to declare any dividends for the foreseeable future. The expected life in years is based on historical exercise data of options previously granted by us. Expected volatility is based on the historical volatility of our common stock and the historical volatility of certain other similar public companies. The risk-free interest rate is based on U.S. Treasury bill rates for the expected life of the option.

The following table shows a summary of the status and activity of stock options for the three months ended March 31, 2020:

	Options			Weighted Average Exercise Price per Option		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2019		966,849		$	28.45
Granted		187,701		$	19.63
Expired		(5,129	)	$	31.28
Forfeited		(12,280	)	$	31.03
Outstanding at March 31, 2020		1,137,141		$	26.96		6.42	$	0.0
Exercisable at March 31, 2020		771,153		$	27.29		5.12	$	0.0

Stock Compensation Expense

Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2020 and 2019 is as follows:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Stock-based compensation expense recognized:
Selling, general and administrative expenses	$	2.5	$	2.9
Less related income tax benefit		0.8		0.9
Decrease in net income attributable to Koppers	$	1.7	$	2.0

As of March 31, 2020, total future compensation expense related to non-vested stock-based compensation arrangements totaled $23.0 million and the weighted-average period over which this expense is expected to be recognized is approximately 32 months.

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9. Segment Information

We have three reportable segments: Railroad and Utility Products and Services, Performance Chemicals and Carbon Materials and Chemicals. Our reportable segments contain multiple aggregated business units since management believes the long-term financial performance of these business units is affected by similar economic conditions.

The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes.

Our RUPS segment sells treated and untreated wood products, manufactured products and services primarily to the railroad and public utility markets. Railroad products and services include procuring and treating items such as crossties, switch ties and various types of lumber used for railroad bridges and crossings and the manufacture of rail joint bars. The segment also manufactures treated wood utility transmission and distribution poles for utility and cooperative utility companies and treated wood pilings used for construction applications. In addition, RUPS operates a railroad services business that conducts engineering, design, repair and inspection services for railroad bridges as well as a business related to the recovery of used crossties.

Our PC segment develops, manufactures, and markets wood preservation chemicals and wood treatment technologies and services a diverse range of end-markets including infrastructure, residential and commercial construction, and agriculture.

Our CMC segment is primarily a manufacturer of creosote, carbon pitch, naphthalene, phthalic anhydride and carbon black feedstock. Creosote is used in the treatment of wood and carbon black feedstock is used in the production of carbon black. Carbon pitch is used in the production of aluminum and steel in electric arc furnaces. Naphthalene is used for the production of phthalic anhydride and as a surfactant in the production of concrete. Phthalic anhydride is used in the production of plasticizers, polyester resins and alkyd paints.

We evaluate performance and determine resource allocations based on a number of factors, including operating profit or loss from operations and earnings before interest, taxes, depreciation and amortization (“EBITDA”). Operating profit does not include other loss, interest expense, income taxes or operating costs of Koppers Holdings Inc.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. Intersegment transactions are eliminated in consolidation.

Contract Balances

The timing of revenue recognition in accordance with ASC 606, “Revenue from Contracts with Customers”, results in both billed accounts receivable and unbilled receivables, both classified as accounts receivable, net of allowance within the condensed consolidated balance sheet. Contract assets of $5.6 million and $5.1 million are recorded within accounts receivable in our RUPS segment, net of allowance within the consolidated balance sheet as of March 31, 2020 and December 31, 2019, respectively.

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The following table sets forth certain sales and operating data, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Revenues from external customers:
Railroad and Utility Products and Services	$	190.0		$	166.1
Performance Chemicals		111.4			99.0
Carbon Materials and Chemicals(a)		100.5			111.8
Total	$	401.9		$	376.9
Intersegment revenues:
Railroad and Utility Products and Services	$	0.0		$	0.3
Performance Chemicals		3.2			3.1
Carbon Materials and Chemicals		18.0			17.9
Total	$	21.2		$	21.3
Depreciation and amortization expense:
Railroad and Utility Products and Services	$	4.9		$	4.8
Performance Chemicals		4.5			4.9
Carbon Materials and Chemicals(b)		4.1			3.9
Total	$	13.5		$	13.6
Operating profit (loss):
Railroad and Utility Products and Services	$	9.2		$	8.7
Performance Chemicals		4.1			12.8
Carbon Materials and Chemicals(c)		0.7			3.3
Corporate		(0.4	)		(0.5	)
Total	$	13.6		$	24.3

(a) Revenue excludes KJCC discontinued operations of $9.9 million and $58.0 million for the three months ended March 31, 2020 and 2019, respectively.

(b) Depreciation and amortization expense excludes KJCC discontinued operations of $1.0 million for the three months ended March 31, 2020 and 2019.

(c) Operating profit (loss) excludes KJCC discontinued operations of $(5.1) million and $4.1 million for the three months ended March 31, 2020 and 2019, respectively.

The following table sets forth revenues for significant product lines, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Railroad and Utility Products and Services:
Railroad treated products	$	112.0	$	88.6
Utility poles		61.9		54.5
Rail joints		6.4		8.3
Railroad infrastructure services		6.0		8.8
Other products		3.7		5.9
Total		190.0		166.1
Performance Chemicals:
Wood preservative products		107.6		96.4
Other products		3.8		2.6
Total		111.4		99.0
Carbon Materials and Chemicals:
Pitch and related products		50.2		62.8
Creosote and distillates		15.2		15.9
Phthalic anhydride and other chemicals		23.5		21.0
Naphthalene		5.0		6.4
Other products		6.6		5.8
Total		100.5		111.8
Total	$	401.9	$	376.9

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The following table sets forth tangible and intangible assets allocated to each of our segments as of the dates indicated:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Segment assets:
Railroad and Utility Products and Services	$	572.4	$	562.2
Performance Chemicals		468.5		457.7
Carbon Materials and Chemicals(a)		485.5		502.1
All other		46.7		42.6
Total(a)	$	1,573.1	$	1,564.6
Goodwill:
Railroad and Utility Products and Services	$	120.2	$	120.7
Performance Chemicals		172.5		175.4
Total	$	292.7	$	296.1

(a) The Carbon Materials and Chemicals segment includes $67.5 million and $76.4 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

10. Income Taxes

Effective Tax Rate

The income tax provision for interim periods is comprised of an estimated annual effective income tax rate applied to current year ordinary income and tax associated with discrete items. These discrete items generally relate to excess stock compensation deductions, changes in tax laws, adjustments to unrecognized tax benefits and changes of estimated tax to the actual liability determined upon filing tax returns. To determine the annual effective tax rate, management is required to make estimates of annual pretax income in each domestic and foreign jurisdiction in which we conduct business. Entities that have historical pre-tax losses and current year estimated pre-tax losses that are not projected to generate a future benefit are excluded from the estimated annual effective income tax rate.

The estimated annual effective income tax rate, excluding discrete items discussed above, was 30.7 percent and 31.4 percent for the three months ended March 31, 2020 and 2019, respectively. The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to:

	March 31,			March 31,
	2020			2019
Federal income tax rate		21.0	%		21.0	%
Foreign earnings taxed at different rates		4.3			1.3
Nondeductible expenses		2.3			1.4
GILTI inclusion, net of foreign tax credits		2.3			(0.9	)
State income taxes, net of federal tax benefit		1.0			0.7
Change in tax contingency reserves		0.2			0.2
Interest expense deduction limitation		0.0			8.1
Other		(0.4	)		(0.4	)
Estimated annual effective income tax rate		30.7	%		31.4	%

In reaction to the effects of the COVID-19 pandemic, on March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. This legislation provides stimulus and relief for affected entities and individuals and broadly provides tax payment relief and significant business incentives, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. Among its many provisions, the CARES Act modifies the limitation on the interest expense deduction for tax years beginning in 2019 and 2020. This modification increases the allowable business interest expense deduction from 30% of adjusted taxable income to 50% of adjusted taxable income.

This modification impacts both our 2019 and 2020 income tax provisions and we have included the net impact in the three months ended March 31, 2020 income tax provision. We have recorded a benefit of $1.0 million for a recalculation of our 2019 tax provision and benefit of $1.9 million for the release of a valuation allowance that was recorded for interest expense deduction limitations that were previously not expected to be realized. Other provisions of the CARES Act do not have a material impact to our income tax provision.

Income taxes as a percentage of pretax income were lower than the estimated annual effective income tax rate due to discrete items for the three months ended March 31, 2020. Discrete items included in income taxes for the three months ended March 31, 2020 were a net benefit of $1.8 million. Discrete items included the benefits due to the enactment of the CARES Act, which was offset by a tax deduction reduction for vested stock awards.

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Income taxes as a percentage of pretax income were (14.1) percent for the three months ended March 31, 2019. This is lower than the estimated annual effective income tax rate due to discrete items. Discrete items included in income taxes for the three months ended March 31, 2019 were a net benefit of $3.8 million. Discrete items were primarily related to the reversal of various unrecognized tax benefits due to audit closures.

During the year, management regularly updates estimates of pre-tax income and income tax expense based on changes in pre-tax income projections by taxable jurisdiction, repatriation of foreign earnings, unrecognized tax benefits and other tax matters. To the extent that actual results vary from these estimates, the actual annual effective income tax rate at the end of the year could be materially different from the estimated annual effective income tax rate for the three months ended March 31, 2020.

Unrecognized Tax Benefits

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction, individual U.S. state jurisdictions and non-U.S. jurisdictions. With few exceptions, we are no longer subject to U.S. federal, U.S. state, or non-U.S. income tax examinations by tax authorities for years prior to 2016.

Unrecognized tax benefits totaled $2.1 million as of March 31, 2020 and December 31, 2019. As of March 31, 2020 and December 31, 2019, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate, was approximately $2.1 million and $2.0 million as of March 31, 2020 and December 31, 2019, respectively. We recognize interest expense and any related penalties from unrecognized tax benefits in income tax expense. As of March 31, 2020 and December 31, 2019, we had accrued approximately $0.9 million and $0.8 million for interest and penalties, respectively.

We do not anticipate material changes to the amount of unrecognized tax benefits within the next twelve months.

11. Inventories

Net inventories as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Raw materials	$	235.1	$	232.0
Work in process		9.2		12.0
Finished goods		94.6		107.8
	$	338.9	$	351.8
Less revaluation to LIFO		62.7		63.3
Net(a)	$	276.2	$	288.5

(a) Net inventories excludes $5.5 million and $10.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

12. Property, Plant and Equipment

Property, plant and equipment as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Land	$	14.4	$	15.0
Buildings		69.3		70.5
Machinery and equipment		731.5		732.4
	$	815.2	$	817.9
Less accumulated depreciation		459.8		459.1
Net(a)	$	355.4	$	358.8

(a) Net Property, plant, and equipment excludes $54.8 million and $56.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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13. Pensions and Post-Retirement Benefit Plans

We maintain a number of defined benefit and defined contribution plans to provide retirement benefits for employees in the United States, as well as employees outside the United States These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), local statutory law or as determined by the board of directors. The defined benefit pension plans generally provide benefits based upon years of service and compensation. Pension plans are funded except for three domestic non-qualified defined benefit pension plans for certain key executives.

In the United States, all qualified and two of the non-qualified defined benefit pension plans for salaried and hourly employees have been closed to new participants and have been frozen. Accordingly, these pension plans no longer accrue additional years of service or recognize future increases in compensation for benefit purposes.

The defined contribution plans generally provide retirement assets to employee participants based upon employer and employee contributions to the participant’s individual investment account. We also provide retiree medical insurance coverage to certain U.S. employees and a life insurance benefit to most U.S. employees. For salaried employees, the retiree medical and retiree insurance plans have been closed to new participants.

The following table provides the components of net periodic benefit cost for the pension plans for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Service cost	$	0.3		$	0.4
Interest cost		1.6			2.0
Expected return on plan assets		(2.0	)		(2.0	)
Amortization of net loss		0.4			0.4
Net periodic benefit cost	$	0.3		$	0.8
Defined contribution plan expense	$	1.6		$	1.6

14. Debt

Debt as of March 31, 2020 and December 31, 2019 was as follows:

	Weighted Average Interest Rate			Maturity	March 31, 2020		December 31, 2019
(Dollars in millions)
Term Loan		4.47	%	2024	$	80.0	$	82.5
Revolving Credit Facility		4.47	%	2024		383.1		329.0
Other loans		6.04	%	2021		0.3		0.4
Senior Notes due 2025		6.00	%	2025		500.0		500.0
Debt						963.4		911.9
Less short-term debt and current maturities of    long-term debt						10.2		10.2
Less unamortized debt issuance costs						10.2		10.7
Long-term debt					$	943.0	$	891.0

Credit Facility

On February 26, 2020, we entered into the Fourth Amendment and amended our $600.0 million senior secured revolving credit facility and our $100.0 million secured term loan facility (collectively, the Credit Facility”) to, among other things: (1) revise the LIBOR replacement language in the Credit Facility, (2) revise certain provisions regarding mandatory prepayments of the term loan facility with proceeds of equity issuances and associated definitions, (3) remove the step downs in the maximum total secured leverage ratio and maximum total leverage ratio which would otherwise occur at the time of a first equity issuance, and (4) revise certain provisions regarding disposition of assets by certain subsidiaries of Koppers Inc. All other material terms, conditions and covenants with respect to the Credit Facility remain unchanged.

The secured term loan has a quarterly amortization of $2.5 million and the interest rate on the Credit Facility is variable and is based on LIBOR. 

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Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets of Koppers Inc., Koppers Holdings Inc. and their material domestic subsidiaries. The Credit Facility contains certain covenants for Koppers Inc. and its restricted subsidiaries that limit capital expenditures, additional indebtedness, liens, dividends, investments or acquisitions. In addition, such covenants give rise to events of default upon the failure by Koppers Inc. and its restricted subsidiaries to meet certain financial ratios.

As of March 31, 2020, we had $129.9 million of unused revolving credit availability for working capital purposes after restrictions from certain letter of credit commitments and other covenants. As of March 31, 2020, $7.5 million of commitments were utilized by outstanding letters of credit.

Senior Notes due 2025

The 2025 Notes are senior obligations of Koppers Inc., are unsecured and are guaranteed by Koppers Holdings Inc. and certain of Koppers Inc.’s domestic subsidiaries. The 2025 Notes pay interest semi-annually in arrears on February 15 and August 15 and will mature on February 15, 2025 unless earlier redeemed or repurchased. On or after February 15, 2020, we are entitled to redeem all or a portion of the 2025 Senior Notes at a redemption price of 104.5 percent of principal value, declining to a redemption price of 101.5 percent on or after February 15, 2022 until the redemption price is equivalent to the principal value on April 15, 2023.

The indenture governing the 2025 Senior Notes includes customary covenants that restrict, among other things, the ability of Koppers Inc. and its restricted subsidiaries to incur additional debt, pay dividends or make certain other restricted payments, incur liens, merge or sell all or substantially all of the assets of Koppers Inc. or its subsidiaries or enter into various transactions with affiliates.

15. Asset Retirement Obligations

We recognize asset retirement obligations for the removal and disposal of residues; dismantling of certain tanks required by governmental authorities; cleaning and dismantling costs for owned railcars; cleaning costs for leased railcars and barges; and site demolition, when required by governmental authorities or by contract. The following table reflects changes in the carrying values of asset retirement obligations:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Asset retirement obligation at beginning of year	$	20.7		$	27.0
Accretion expense		0.3			1.5
Revision in estimated cash flows		0.2			4.7
Cash expenditures		(1.7	)		(12.5	)
Currency translation		(0.1	)		0.0
Balance at end of period	$	19.4		$	20.7

16. Leases

We adopted the provisions of ASU 2016-02 and ASU 2018-10 on January 1, 2019 and recognized lease obligations and associated right-of-use assets for existing non-cancelable leases. We have non-cancelable operating leases primarily associated with railcars, office and manufacturing facilities, storage tanks, ships, production equipment and vehicles. Many of our leases include both lease (e.g., fixed rent) and non-lease components (e.g., maintenance and services). For certain asset classes such as railcars, storage tanks and ships, we have separated the lease and non-lease components based on the estimated stand-alone price for each component. For the remaining asset classes, we have elected the practical expedient to account for these components as a single lease component. Upon adoption, we elected other practical expedients as well, including retaining our current classification of existing leases upon adoption and excluding leases expiring within twelve months.

Many of our leases include one or more options to renew. We evaluate renewal options at the lease commencement date and regularly thereafter to determine if we are reasonably certain to exercise the option, in which case we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available to determine the present value of the lease payments.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Operating lease costs were $7.8 million and $8.0 million and variable lease costs were $1.0 million and $0.9 million during the three months ended March 31, 2020 and 2019, respectively.

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The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2020:  

(Dollars in millions)
2020	$	22.4
2021		25.4
2022		21.7
2023		15.9
2024		13.8
Thereafter		43.7
Total lease payments	$	142.9
Less: Interest		(35.0	)
Present value of lease liabilities	$	107.9

Supplemental consolidated balance sheet information related to leases is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	106.1		$	112.3
Current operating lease liabilities	$	21.5		$	22.0
Operating lease liabilities		86.4			91.5
Total operating lease liabilities	$	107.9		$	113.5
Weighted average remaining lease term, in years		6.8		$	7.1
Weighted average discount rate		7.7	%		7.7	%

17. Derivative Financial Instruments

We utilize derivative instruments to manage exposures to risks that have been identified and measured and are capable of being controlled. The primary risks managed by us by using derivative instruments are commodity price risk associated with copper and foreign currency exchange risk associated with a number of currencies, principally the U.S. dollar, the Canadian dollar, the New Zealand dollar, the Euro and British pounds. Swap contracts on copper are used to manage the price risk associated with forecasted purchases of materials used in our manufacturing processes. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of copper through 2022. We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances and foreign currency denominated sales. Generally, we enter into master netting arrangements with the counterparties and offset net derivative positions with the same counterparties. Currently, our agreements do not require cash collateral.

ASC Topic 815-10, “Derivatives and Hedging,” requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. Derivative instruments’ fair value is determined using significant other observable inputs, or Level 2 in the fair value hierarchy. In accordance with ASC Topic 815-10, we designate certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive (loss) income and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

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For those commodity swaps which are not designated as cash flow hedges, the fair value of the commodity swap is recognized as an asset or liability in the consolidated balance sheet and the related gain or loss on the derivative is reported in current earnings. These amounts are classified in cost of sales in the consolidated statement of operations.

As of March 31, 2020 and December 31, 2019, we had outstanding copper swap contracts of the following amounts:

	Units Outstanding (in Pounds)				Net Fair Value - (Liability) Asset
	March 31, 2020		December 31, 2019		March 31, 2020			December 31, 2019
(Amounts in millions)
Cash flow hedges		73.7		56.5	$	(28.9	)	$	4.5
Not designated as hedges		16.5		16.6		(6.1	)		1.7
Total		90.2		73.1	$	(35.0	)	$	6.2

As of March 31, 2020 and December 31, 2019, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	0.0		$	2.1
Other assets		0.0			4.1
Accrued liabilities		(19.3	)		0.0
Other long-term liabilities		(15.7	)		0.0
Net (liability) asset on balance sheet	$	(35.0	)	$	6.2
Accumulated other comprehensive (loss) gain, net of tax	$	(22.2	)	$	3.3

Based upon contracts outstanding at March 31, 2020, in the next twelve months we estimate that $11.7 million of unrealized losses, net of tax, related to commodity price hedging will be reclassified from comprehensive (loss) income into earnings.

See “Note 6 – Comprehensive (Loss) Income and Equity”, for amounts recorded in comprehensive (loss) income and for amounts reclassified from accumulated other comprehensive loss to net (loss) income for the periods specified below. For the three months ended March 31, 2020 and 2019, the (loss) gain from contracts not designated as hedges is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
(Loss) gain from contracts not designated as hedges	$	(8.0	)	$	3.1

The fair value associated with forward contracts related to foreign currency that are not designated as hedges are immediately charged to earnings. These amounts are classified in cost of sales in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income.

As of March 31, 2020 and December 31, 2019, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	1.6		$	0.3
Accrued liabilities		(0.3	)		(0.5	)
Net asset (liability) on balance sheet	$	1.3		$	(0.2	)

As of March 31, 2020 and December 31, 2019, the net currency units outstanding for these contracts were:

	March 31, 2020		December 31, 2019
(In millions)
British Pounds		GBP 3.7		GBP 3.7
New Zealand Dollars		NZD 16.0		NZD 16.0
United States Dollars		USD 2.8		USD 6.2
Euro		EUR 1.2		EUR 1.2

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18. Commitments and Contingent Liabilities

We are involved in litigation and various proceedings relating to environmental laws and regulations, product liability and other matters. Certain of these matters are discussed below. The ultimate resolution of these contingencies is subject to significant uncertainty and should we fail to prevail in any of these legal matters or should several of these legal matters be resolved against us in the same reporting period, these legal matters could, individually or in the aggregate, be material to the consolidated financial statements.

Legal Proceedings

Coal Tar Pitch Cases. Koppers Inc. is one of several defendants in lawsuits filed in two states in which the plaintiffs claim they suffered a variety of illnesses (including cancer) as a result of exposure to coal tar pitch sold by the defendants. There were 64 plaintiffs in 34 cases pending as of March 31, 2020 and as of December 31, 2019. As of March 31, 2020, there were 33 cases pending in the Court of Common Pleas of Allegheny County, Pennsylvania, and one case pending in the Circuit Court of Knox County, Tennessee.

The plaintiffs in all 34 pending cases seek to recover compensatory damages. Plaintiffs in 29 of those cases also seek to recover punitive damages. The plaintiffs in the 33 cases filed in Pennsylvania seek unspecified damages in excess of the court’s minimum jurisdictional limit. The plaintiff in the Tennessee state court case seeks damages of $15 million. The other defendants in these lawsuits vary from case to case and include companies such as Beazer East, Inc. (“Beazer East”), Honeywell International Inc., Graftech International Holdings, Dow Chemical Company, UCAR Carbon Company, Inc., and SGL Carbon Corporation. Discovery is proceeding in these cases. No trial dates have been set in any of these cases.

We have not provided a reserve for the coal tar pitch lawsuits because, at this time, we cannot reasonably determine the probability of a loss, and the amount of loss, if any, cannot be reasonably estimated. The timing of resolution of these cases cannot be reasonably determined. Although Koppers Inc. is vigorously defending these cases, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations.

Environmental and Other Litigation Matters

We are subject to federal, state, local and foreign laws and regulations and potential liabilities relating to the protection of the environment and human health and safety including, among other things, the cleanup of contaminated sites, the treatment, storage and disposal of wastes, the discharge of effluent into waterways, the emission of substances into the air and various health and safety matters. We expect to incur substantial costs for ongoing compliance with such laws and regulations. We may also face governmental or third-party claims, or otherwise incur costs, relating to cleanup of, or for injuries resulting from, contamination at sites associated with past and present operations. We accrue for environmental liabilities when a determination can be made that a liability is probable and reasonably estimable.

Environmental and Other Liabilities Retained or Assumed by Others. We have agreements with former owners of certain of our operating locations under which the former owners retained, assumed and/or agreed to indemnify us against certain environmental and other liabilities. The most significant of these agreements was entered into at Koppers Inc.’s formation on December 29, 1988 (the “Acquisition”). Under the related asset purchase agreement between Koppers Inc. and Beazer East, subject to certain limitations, Beazer East retained the responsibility for and agreed to indemnify Koppers Inc. against certain liabilities, damages, losses and costs, including, with certain limited exceptions, liabilities under and costs to comply with environmental laws to the extent attributable to acts or omissions occurring prior to the Acquisition and liabilities related to products sold by Beazer East prior to the Acquisition (the “Indemnity”).

Beazer Limited, the parent company of Beazer East, unconditionally guaranteed Beazer East’s performance of the Indemnity pursuant to a guarantee (the “Guarantee”).

The Indemnity provides different mechanisms, subject to certain limitations, by which Beazer East is obligated to indemnify Koppers Inc. with regard to certain environmental, product and other liabilities and imposes certain conditions on Koppers Inc. before receiving such indemnification, including, in some cases, certain limitations regarding the time period as to which claims for indemnification can be brought. In July 2004, Koppers Inc. and Beazer East agreed to amend the environmental indemnification provisions of the December 29, 1988 asset purchase agreement to extend the indemnification period for pre-closing environmental liabilities, subject to the following paragraph, and agreed to share toxic tort litigation defense arising from any sites acquired from Beazer East.

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Qualified expenditures under the Indemnity are not subject to a monetary limit. Qualified expenditures under the Indemnity include (i) environmental cleanup liabilities required by third parties, such as investigation, remediation and closure costs, relating to pre-December 29, 1988 (“Pre-Closing”) acts or omissions of Beazer East or its predecessors; (ii) environmental claims by third parties for personal injuries, property damages and natural resources damages relating to Pre-Closing acts or omissions of Beazer East or its predecessors; (iii) punitive damages for the acts or omissions of Beazer East and its predecessors without regard to the date of the alleged conduct and (iv) product liability claims for products sold by Beazer East or its predecessors without regard to the date of the alleged conduct. The indemnification period ended July 14, 2019 (the “Claim Deadline”) and Beazer East may now tender certain third-party claims described in sections (i) and (ii) above to Koppers Inc. However, to the extent the third-party claims described in sections (i) and (ii) above were tendered to Beazer East by the Claim Deadline, Beazer East will continue to be required to pay the costs arising from such claims under the Indemnity. Furthermore, the Claim Deadline did not change the provisions of the Indemnity with respect to indemnification for non-environmental claims, such as product liability claims, which claims may continue to be tendered by Koppers Inc. to Beazer East.

The Indemnity provides for the resolution of issues between Koppers Inc. and Beazer East by an arbitrator on an expedited basis upon the request of either party. The arbitrator could be asked, among other things, to make a determination regarding the allocation of environmental responsibilities between Koppers Inc. and Beazer East. Arbitration decisions under the Indemnity are final and binding on the parties.

Contamination has been identified at most manufacturing and other sites of our subsidiaries. One site currently owned and operated by Koppers Inc. in the United States is listed on the National Priorities List promulgated under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”). Currently, at the properties acquired from Beazer East (which includes the National Priorities List site and all but one of the sites permitted under the Resource Conservation and Recovery Act (“RCRA”)), a significant portion of all investigative, cleanup and closure activities are being conducted and paid for by Beazer East pursuant to the terms of the Indemnity. In addition, other of Koppers Inc.’s sites are or have been operated under RCRA and various other environmental permits, and remedial and closure activities are being conducted at some of these sites.

To date, the parties that retained, assumed and/or agreed to indemnify us against the liabilities referred to above, including Beazer East, have performed their obligations in all material respects. We believe that, for the last three years ended December 31, 2019, amounts paid by Beazer East as a result of its environmental remediation obligations under the Indemnity have averaged, in total, approximately $10.5 million per year. Periodically, issues have arisen between Koppers Inc. and Beazer East and/or other indemnitors that have been resolved without arbitration. Koppers Inc. and Beazer East engage in discussions from time to time that involve, among other things, the allocation of environmental costs related to certain operating and closed facilities.

If for any reason (including disputed coverage or financial incapability) one or more of such parties fail to perform their obligations and we are held liable for or otherwise required to pay all or part of such liabilities without reimbursement, the imposition of such liabilities on us could have a material adverse effect on our business, financial condition, cash flows and results of operations. Furthermore, we could be required to record a contingent liability on our balance sheet with respect to such matters, which could result in a negative impact to our business, financial condition, cash flows and results of operations.

Domestic Environmental Matters. On June 4, 2018, Koppers Inc. received a letter from the U.S. Environmental Protection Agency ("EPA") concerning potential violations of the Clean Water Act observed during inspections and review of Spill Prevention, Control and Countermeasure Plans and Facility Response Plans at our facilities in Follansbee, WV; Green Spring, WV; and Clairton, PA. In addition, the EPA reviewed one facility’s compliance with an earlier consent order regarding above ground storage tank integrity testing. In December 2019, the EPA presented Koppers Inc. with a proposed penalty of $2.8 million regarding the alleged violations and we are currently in discussions with the EPA to resolve the matter. Accordingly we have accrued our estimated liability of the probable penalty as of March 31, 2020.

Koppers Inc. has been named as one of the potentially responsible parties (“PRPs”) at the Portland Harbor CERCLA site located on the Willamette River in Oregon. Koppers Inc. operated a coal tar pitch terminal near the site. Koppers Inc. has responded to an EPA information request and has executed a PRP agreement which outlines a private process to develop an allocation of past and future costs among more than 80 parties to the site. Koppers Inc. believes it is a de minimis contributor at the site.

The EPA issued its Record of Decision (“ROD”) in January 2017 for the Portland Harbor CERCLA site. The selected remedy includes a combination of sediment removal, capping, enhanced and monitored natural recovery and riverbank improvements. The ROD does not determine who is responsible for remediation costs. The net present value and undiscounted costs of the selected remedy as estimated in the ROD are approximately $1.1 billion and $1.7 billion, respectively. Responsibility for implementing and funding that work will be decided in the separate private allocation process which is ongoing.   

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Additionally, Koppers Inc. is involved in two separate natural resource damages assessments at the Portland Harbor site. An assessment is intended to identify damages to natural resources caused by the releases of hazardous substances to the Willamette River and to serve as the foundation to estimate liabilities for settlements of natural resource damages claims or litigation to recover from those who do not settle with the trustee groups. One of the natural resource damage assessments was filed in January 2017 by the Yakama Nation in Oregon federal court. Yakama Nation seeks recovery for future response costs and the costs of assessing injury to natural resources and recovery for past costs of overseeing investigations conducted on the site. Following the most recent court rulings, the Yakama Nation case has been stayed pending completion of the private allocation process for the Portland Harbor CERCLA site.

In September 2009, Koppers Inc. received a general notice letter notifying it that it may be a PRP at the Newark Bay CERCLA site. In January 2010, Koppers Inc. submitted a response to the general notice letter asserting that Koppers Inc. is a de minimis party at this site.

We have accrued the estimated costs of participating in the PRP group at the Portland Harbor and Newark Bay CERCLA sites and estimated de minimis settlement amounts at the sites totaling $2.2 million at March 31, 2020. The actual cost could be materially higher as there has not been a determination of how those costs will be allocated among the PRPs at the sites. Accordingly, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations.

There are two plant sites related to the Performance Chemicals business and one plant site related to the Utility and Industrial Products business in the United States where we have recorded environmental remediation liabilities for soil and groundwater contamination which occurred prior to our acquisition of the businesses. As of March 31, 2020, our estimated environmental remediation liability for these acquired sites totals $4.3 million.  

Foreign Environmental Matters. On October 10, 2019, the New South Wales Environment Protection Authority (“NSW EPA”) filed a proceeding against one of our Australian subsidiaries, Koppers Carbon Materials & Chemicals Pty. Ltd. (“KCMC”), in relation to an incident which occurred at our Mayfield, Australia plant on October 20, 2018. The NSW EPA alleged that KCMC committed an offense under Australian law by failing to maintain its plant and equipment in a proper and efficient working condition. The NSW EPA alleged that KCMC did not properly maintain a valve which failed and released heated coal tar pitch into a bunded area on our site and released fumes into the atmosphere. The first hearing on the proceeding was held on November 22, 2019 in the Land and Environment Court of New South Wales and we entered a guilty plea with respect to the allegations. The maximum fine for the proceeding is $1.0 million AUD (approximately $0.7 million) plus legal costs incurred by the NSW EPA. The Land and Environment Court also has the authority to order KCMC to make certain improvements to its operations at the site of the incident. The Land and Environment Court is expected to enter a final order and assess a fine within the next three to four months. We have accrued our estimated liability associated with the matter as of March 31, 2020. We also continue to meet and correspond with the NSW EPA to discuss and present relevant information related to inquiries regarding other incidents at the facility, primarily related to odor complaints. We currently cannot estimate the potential penalties, fines or other expenditures, if any, that may result from these NSW EPA inquiries and, therefore, we cannot determine if the ultimate outcome of this matter will have a material impact on our financial position, results of operations or cash flows.

There is one plant site related to the Performance Chemicals business located in Australia where we have recorded an environmental remediation liability for soil and groundwater contamination which occurred prior to the acquisition of the business. As of March 31, 2020, our estimated environmental remediation liability for this acquired site totals $1.2 million.

Environmental Reserves Rollforward. The following table reflects changes in the accrued liability for environmental matters, of which $2.7 million and $2.8 million are classified as current liabilities at March 31, 2020 and December 31, 2019, respectively:

	Period ended
	March 31, 2020			December 31, 2019
(Dollars in millions)
Balance at beginning of year	$	9.5		$	10.1
Expense		0.0			0.5
Reversal of reserves		0.0			(0.8	)
Cash expenditures		0.0			(0.3	)
Currency translation		(0.2	)		0.0
Balance at end of period	$	9.3		$	9.5

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ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report and any documents incorporated herein by reference contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, acquisitions, restructuring, declines in the value of Koppers assets and the effect of any related impairment charges, profitability and anticipated expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,” “should,” “continue,” “plans,” “potential,” “intends,” “likely,” or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in press releases, written statements or documents filed with the Securities and Exchange Commission, or in Koppers communications and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding expectations with respect to sales, earnings, cash flows, operating efficiencies, restructurings, product introduction or expansion, the benefits of acquisitions and divestitures, joint ventures or other matters as well as financings and debt reduction, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements, include, among other things, the impact of changes in commodity prices, such as oil and copper, on product margins; general economic and business conditions; the length and extent of economic contraction as a result of the coronavirus (COVID-19) pandemic; disruption in the U.S. and global financial markets; potential difficulties in protecting our intellectual property; the ratings on our debt and our ability to repay or refinance our outstanding indebtedness as it matures; our ability to operate within the limits of our debt covenants; potential impairment of our goodwill and/or long-lived assets; demand for Koppers goods and services; competitive conditions; interest rate and foreign currency rate fluctuations; availability and costs of key raw materials and unfavorable resolution of claims against us, as well as those discussed more fully elsewhere in this report and in documents filed with the Securities and Exchange Commission by Koppers, particularly our latest annual report on Form 10-K and subsequent filings. We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report and the documents incorporated by reference herein may not in fact occur. Any forward-looking statements in this report speak only as of the date of this report, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited financial statements and related notes included in Item 1 of this Part I as well as the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Overview

We are a leading integrated global provider of treated wood products, wood preservation chemicals, and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end-markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. We serve our customers through a comprehensive global manufacturing and distribution network, with manufacturing facilities located in North America, South America, Australasia, China and Europe.

We operate three principal businesses: Railroad and Utility Products and Services (“RUPS”), Performance Chemicals (“PC”) and Carbon Materials and Chemicals (“CMC”).

Through our RUPS business, we believe that we are the largest supplier of wood crossties to the Class I railroads in North America. Our other treated wood products include utility poles for the electric and telephone utility industries in the United States and Australia and construction pilings. We also provide rail joint bar products as well as various services to the railroad industry.

Through our PC business, we believe that we are the global leader in developing, manufacturing and marketing wood preservation chemicals and wood treatment technologies for use in the pressure treating of lumber for residential, industrial and agricultural applications.

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Our CMC business processes coal tar into a variety of products, including creosote, carbon pitch, carbon black feedstock, naphthalene and phthalic anhydride, which are intermediate materials necessary in the pressure treatment of wood, the production of aluminum, the production of carbon black, the production of high-strength concrete, and the production of plasticizers and specialty chemicals, respectively.

Outlook

Trend Overview

Our businesses and results of operations are affected by various competitive and other factors including (i) the impact of global economic conditions on demand for our products, including the impact of imported products from competitors in certain regions where we operate; (ii) raw material pricing and availability, in particular the cost and availability of hardwood lumber for railroad crossties and softwood lumber for utility poles, scrap copper prices, and the cost and amount of coal tar available in global markets, which is negatively affected by reductions in blast furnace steel production; (iii) volatility in oil prices, which impacts the cost of coal tar and certain other raw materials, as well as selling prices and margins for certain of our products including carbon black feedstock, phthalic anhydride, and naphthalene; (iv) competitive conditions in global carbon pitch markets; and (v) changes in foreign exchange rates.

Effects of COVID-19 on our operations

Our quarterly operating results may fluctuate due to a variety of factors that are outside of our control, including from the effects of the current pandemic. The COVID-19 outbreak began to have a global effect in the first quarter of 2020 and is having a significant impact on global markets driven by supply chain and production disruptions, workforce restrictions, reduced spending and other factors. These events negatively impacted our financial performance in the first quarter of 2020 and are expected to negatively impact our financial performance in future periods. During the COVID-19 pandemic, substantially all of our global businesses have continued to operate within a critical infrastructure sector (as established by the Cybersecurity & Infrastructure Security Agency of the U.S. Department of Homeland Security, as well as other governments worldwide), and as a result, we have been able to meet the demand of our customers in the various markets we serve. Our operations were curtailed in two locations, China and New Zealand, after government restrictions required the temporary closure of operations. As of the date of this filing, these operations have returned to service. Our remaining 31 facilities, principally in the United States, Canada, the United Kingdom, Australia and Denmark, were permitted to continue to operate. Our focus during this period has been on the following key priorities:

• Protecting the health and safety of employees, customers and supply chain partners through rapid deployment of new safety measures, including frequent communication and guidance to all employees on effective hygiene and disinfection, social distancing, limited and remote access and use of face masks.

• Providing critical products and ongoing support to customers by communicating frequently, understanding their changing business needs and ensuring key raw materials are multi-sourced when possible.

• Maintaining adequate liquidity and financial flexibility by launching several cost-reduction initiatives and contingency plans to raise and conserve cash in all aspects of our operations and utilizing available federal relief such as the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which we continue to evaluate.

The full extent to which COVID-19 will adversely impact our business depends on future developments, which are highly uncertain and unpredictable, including new information concerning the severity of the outbreak and the effectiveness of actions globally to contain or mitigate its effects. Our condensed consolidated financial statements and discussion and analysis of financial condition and results of operations reflect estimates and assumptions made by us as of March 31, 2020. Events and changes in circumstances arising after March 31, 2020, including those resulting from the impacts of COVID-19, will be reflected in our estimates for future periods.

Refer to the Liquidity section of Management’s Discussion and Analysis for the impact of the global pandemic on our liquidity.

Railroad and Utility Products and Services

We provide our customers with treated and untreated wood products, rail joint bars and services primarily for the railroad markets in the United States and Canada. We also operate a railroad services business that conducts engineering, design, repair and inspection services primarily for railroad bridges in the U.S. and Canada. In addition, we supply treated utility poles for the utility sector in the United States and Australia. The primary end-markets for RUPS is the North American railroad industry, which has an installed base of approximately 700 million wood crossties, and the investor-owned utility industry which utilizes wooden distribution and transmission poles. Both crossties and utility poles require periodic replacement.

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Historically, North American demand for crossties had been in the range of 22-25 million crossties annually. However, the crosstie replacement market has been significantly lower in recent years. According to the Railway Tie Association (“RTA”), the estimated total crosstie installations in 2019 were approximately 20 million, of which 15 million were for Class I railroads. For 2020, RTA forecasted a slight increase in demand to 20.5 million crossties, with 15 million for Class I railroads. The key drivers for the projected relatively flat crosstie demand levels include reduced heavy-haul loads because of the continuing secular shift from coal to natural gas, lower agricultural shipments due to lower crop yields, manufacturing constraints related to a less optimistic economic outlook, and uncertainties from ongoing trade tensions.  The RTA has not yet provided a forecast that incorporates the potential effects of COVID-19.

For distribution poles, nearly half of the installed base is 40-plus years old and the demand has historically been in the range of two to three million poles annually. On an overall basis, we believe that the rate at which utilities purchase utility poles will grow as they continue replacement programs within their service territories. As a whole, utilities need to maintain their infrastructure to avoid interruptions in service as large sections of the population are currently impacted by stay-at-home orders related to the COVID-19 pandemic. Given that backdrop, we anticipate that 2020 will be a relatively stable to slightly higher from a demand standpoint. Longer term, we are evaluating opportunities to potentially expand our market presence in the U.S. as well as certain overseas markets.

The supply of untreated crossties can vary at times based upon weather conditions in addition to other factors. We have a nationwide wood procurement team that maintains close working relationships with a network of sawmills. We procure untreated crossties, either on behalf of our customers, or for our own inventory for future treating. We also procure switch ties and various other types of lumber used for railroad bridges and crossings. Untreated crossties go through a six- to nine-month air seasoning process before they are ready to be pressure treated. After the air seasoning process is complete, the crossties are pressure treated using creosote-only treatment or a combined creosote and borate treatment. During any given year, there is a seasonal effect in the winter and spring months on our crosstie business depending on weather conditions for harvesting lumber and crosstie installation.

For the past several years, the major companies in the rail industry substantially reduced both operating and capital spending from peak spending levels, which had a negative impact on sales of various products and services that we provide to that industry. Current year revenues and profitability reflect an increase year-over-year due to a slight rise in demand as capital budgets have now stabilized for most North American Class I railroads. We currently supply all seven of the North American Class I railroads and have long-standing relationships with these customers. Approximately 70 percent of our North American sales are under long-term contracts and we believe that we are positioned to maintain or grow our current market position.

According to the Association of American Railroads (“AAR”), railroads are facing multiple challenges that include fundamental long-term structural changes as a result of the continued decline of coal markets, growth in the domestic intermodal and chemical sectors, evolution of consumer purchasing practices, and disruptions stemming from trade uncertainty. In the recent past, the Class I railroads were highly dependent on the oil and gas and coal mining industries. Currently, the railroads are more correlated to commodity prices, interest rates and trade relations. The AAR reported that rail traffic trended down in recent months. For the three months ended March 31, 2020, total U.S. carload traffic decreased 6.3 percent from the prior year while intermodal units were lower by 8.6 percent from the prior year, and on a combined basis, U.S. traffic for carloads and intermodal units was 7.5 percent lower than the prior year.

According to the AAR, rail traffic has been negatively impacted by continuing weakness in coal markets, trade disputes and related uncertainties, and the COVID-19 pandemic. With respect to the effects of COVID-19, U.S. carloads of autos and auto parts were down as auto production has largely been suspended and lower consumer spending has begun to shrink demand.  In addition, the recent collapse in worldwide oil prices has also severely affected rail shipments of petroleum products, fracking sand and steel products.

In terms of raw material, while forestry has generally been deemed essential during the COVID-19 outbreak, new construction is not considered essential in many areas.  While this has impacted some of the sawmills, we have not experienced a noticeable impact to date as there are sawmills continuing to produce poles and crossties to maintain their operations and cash flow.  According to the RTA, the outlook is favorable for the adequate availability of logs over the current six to twelve-month period. To the extent that demand remains as forecasted, we can build our untreated tie inventory and have higher levels of dry crosstie inventory ready for future treatment.

To date, all but one of our Class I customers have indicated that they expect to maintain their tie replacement programs for 2020; however these plans may change due to highly uncertain and unpredictable economic environment. From a long-term perspective, we believe there remains a need for sustained investment in infrastructure and capacity expansion. We believe that with our vertical integration capabilities in wood treatment and strong customer relationships, we will ultimately benefit from increased demand.

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Strategic Initiatives and Integration Synergies

As part of optimizing our business, we continue to evaluate a number of opportunities to improve efficiencies in our operational processes, people and facilities. With 17 North American RUPS treating facilities operating at less than full utilization, our goal is to either capture more volume through the existing facilities or consolidate our operating footprint.

Performance Chemicals

The largest geographic market for wood treating chemicals sold by our PC business is in North America, and the largest application for our products is the residential remodeling market. We also have a market presence in Europe, South America, Australia, New Zealand and Africa. We believe that PC is the largest global manufacturer and supplier of water-based wood preservatives and wood specialty additives to treaters that supply pressure treated wood products to large retailers and independent lumber dealers. These retailers and dealers, in turn, serve the residential, agricultural and industrial pressure-treated wood market. Our primary products are copper-based wood preservatives, including micronized copper azole (“MicroPro®”) and micronized pigments (“MicroShades®”). Applications for these products include decking, fencing, utility poles, construction lumber and other outdoor structures.

In North America, we are vertically integrated due to our manufacturing capabilities for copper compounds for our copper-based wood preservatives. We believe our vertical integration is part of our proprietary processes and reflects an important competitive advantage.

As most of the products sold by PC are copper-based products, changes in the price and availability of copper can have a significant impact on product pricing and margins. We attempt to moderate the variability in copper pricing over time by entering into hedging transactions for the majority of our copper needs, which primarily range from six months up to 36 months. These hedges typically match expected customer purchases and receive hedge accounting treatment. From time to time, we enter into forward transactions based upon long-term forecasted needs of copper. These forward positions are typically marked to market.

Product demand for our PC business has historically been closely associated with consumer spending on home repair and remodeling projects, and therefore, trends in existing home sales serve as a leading indicator. Overall, the market for existing homes are beginning to show more negative signals. According to the National Association of Realtors® (“NAR”), total existing-home sales in March dropped 8.5 percent from February; however, overall sales increased year-over-year for the ninth straight month, up 0.8 percent from a year ago. Due to the COVID-19 outbreak, existing home sales slowed in March and more temporary interruptions to home sales are expected in the near term.  While sales have declined, the NAR reports that home prices remain strong for the time being.

According to the Leading Indicator of Remodeling Activity (“LIRA”) reported by the Joint Center for Housing Studies of Harvard University, national spending for home renovations and repairs are expected to decline at least through the first quarter of 2021 due to impacts from the COVID-19 pandemic. Prior to the pandemic, the LIRA pointed to a healthy rebound in home remodeling spending with annual growth of 3.9 percent by the first quarter of 2021, but the latest data incorporating both actual and forecasted impacts of the economic shutdown point to spending declines this year with further worsening into 2021. With the unprecedented changes to the U.S. economy since mid-March, LIRA projects that home remodeling expenditures will decrease as much as 1.2 percent in 2020 compared with annual gains of five percent to seven percent in recent years. The current environment of low interest rates may help mitigate declines to home improvement expenditures over the next six to twelve months.

The Conference Board Consumer Confidence Index® deteriorated further in April, following a sharp decline in March. The Index now stands at 86.9, down from 118.8 in March. Consumer confidence weakened significantly in April, driven by a sharp contraction in economic activity and a surge in unemployment claims brought about by the COVID-19 outbreak. In general, consumers were less optimistic about their financial prospects. The uncertainty of the economic effects of COVID-19 will likely cause expectations to fluctuate in the months ahead.

Carbon Materials and Chemicals

The primary products produced by CMC are creosote, which is a registered pesticide in the United States and used primarily in the pressure treatment of railroad crossties, and carbon pitch, which is sold primarily to the aluminum industry for the production of carbon anodes used in the smelting of aluminum. We have reduced capacity in our CMC plants in North America and Europe over the past several years to levels required to meet creosote demand in North America for the treatment of railroad crossties. The CMC business currently supplies our North American RUPS business with the majority of its creosote requirements.

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On February 18, 2020, we entered into a definitive agreement to sell Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) to Fangda Carbon New Material Co., Ltd and C-Chem Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. KJCC is a 75 percent-owned coal tar distillation company which is part of our CMC segment. On April 16, 2020, the pending divestiture reached a key milestone by filing for antitrust approval with China’s State Administration for Market Regulation of China (SAMR) and a decision is anticipated to be issued by June 2020. In 2019, KJCC’s sales totaled $127.4 million and its operating profit totaled $5.9 million. The sales price is $107.0 million, subject to adjustment for cash, debt and working capital at closing, which is expected to occur in four to six months from signing due to required regulatory approvals in China and achievement of other closing conditions. At closing, we estimate the gain on the sale of KJCC will be approximately $45 million and net cash proceeds to Koppers will be approximately $65 million, after noncontrolling interest, taxes and expenses. The results of KJCC are reflected as a discontinued operation in the consolidated financial statements and the supporting footnotes.

In the third quarter of 2019, we ceased remaining production activities at our Follansbee, West Virginia. As a result of recent initiatives to reduce capacity, we expect additional restructuring and related charges to earnings of approximately $2 million to $5 million through 2021. The overall expected future cash requirements for the CMC plant closures are estimated to be approximately $14 million through 2021.

While the sale of carbon pitch remains a significant portion of our sales volume, the reduction of aluminum smelting capacity in the United States, Australia and Western Europe has led to sharply lower demand for carbon pitch over the past several years. Accordingly, we have experienced significantly lower sales volumes due to the reduction in aluminum production in parts of the world where the majority of our production facilities are located. However, beginning in 2018, aluminum production in the United States increased to some extent as tariffs have been imposed on certain imported steel and aluminum products that has stimulated restarts of previously idled capacity. This development has resulted in additional demand for carbon pitch in the United States that can likely only be sustained through a continuation of current trade policy.

The availability of coal tar, the primary raw material for our CMC business, is linked to levels of metallurgical coke production. As the global steel industry, excluding Asia, has reduced the production of steel using metallurgical coke, the volumes of coal tar have also been reduced. For the past decade, the coal tar distillation industry has operated in an excess capacity mode, which further increased the competition for a limited amount of coal tar in North America. Over the past three years we have consolidated our operating footprint and significantly lowered production levels at the same time that we added distribution assets to move finished products from Europe to the United States more efficiently. In addition, we entered into several new long-term supply agreements starting in 2017 to further lower our exposure to coal tar availability risk and volatile end markets. As a result, our raw material needs in North America have been significantly less than historically required.

For the external markets served by our CMC business, we expect that North America and Europe will be significantly impacted by the COVID-19 pandemic. Carbon pitch and phthalic anhydride markets have begun to soften due to declines in demand as manufacturing activity in North America and Europe significantly slowed. In addition, end market pricing for some products has been under pressure in certain regions due to the significant fall in worldwide oil prices. Globally, coal tar raw material supply remains constrained due to reductions in blast furnace steel capacity.  

Seasonality and Effects of Weather on Operations

Our quarterly operating results fluctuate due to a variety of factors that are outside of our control, including inclement weather conditions, which in the past have affected operating results. Operations at some of our facilities have at times been reduced during the winter months. Moreover, demand for some of our products declines during periods of inclement weather. As a result of the foregoing, we anticipate that we may experience material fluctuations in quarterly operating results. Historically, our operating results have been significantly lower in the first and fourth calendar quarters as compared to the second and third calendar quarters.

Results of Operations – Comparison of Three Months Ended March 31, 2020 and 2019

Consolidated Results

Net sales for the three months ended March 31, 2020 and 2019 are summarized by segment in the following table:

	Three Months Ended March 31,
	2020		2019		Net Change
(Dollars in millions)
Railroad and Utility Products and Services	$	190.0	$	166.1		14	%
Performance Chemicals		111.4		99.0		13	%
Carbon Materials and Chemicals		100.5		111.8		-10	%
	$	401.9	$	376.9		7	%

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RUPS net sales increased by $23.9 million or 14 percent compared to the prior year period. The sales increase was primarily due to volume increases in the Class I and commercial crosstie markets as well as the domestic and Australian utility pole markets, along with price increases in the commercial crosstie market in the current year period. Sales of crossties increased by $23.5 million in the current year period. These increases were offset, in part, by volume decreases in our maintenance of way businesses and an unfavorable impact from foreign currency translation in the current year period of $1.0 million from our Australian pole business.

PC net sales increased by $12.4 million or 13 percent compared to the prior year period. The sales increase was due primarily to higher demand for copper-based preservatives in North America due to new customer wins and higher organic volumes as well as favorable weather and optimistic demand leading into the first quarter. The business experienced these positive drivers despite the COVID-19 pandemic. These increases were partially offset by a decrease in sales volumes of non-copper based preservatives in Europe as well as an unfavorable impact from foreign currency translation in the current year period of $1.9 million.

CMC net sales decreased by $11.3 million or 10 percent compared to the prior year period due mainly to lower sales prices for carbon pitch in Australia, Europe and North America along with reduced sales volumes of carbon pitch in North America. These unfavorable drivers were primarily due to reduced demand as a result of an oversupply in the aluminum market. Foreign currency translation also had an unfavorable impact on sales in the current year period of $3.4 million. Favorable offsetting factors in the current year period included increased volumes for phthalic anhydride in North America and carbon pitch and carbon black feedstock in Australia.

Cost of sales as a percentage of net sales was 85 percent for the quarter ended March 31, 2020 compared to 80 percent in the prior year quarter. Gross margin at PC was unfavorably impacted by a net amount of $11.1 million due to changes in unrealized gains and losses from our copper swap contracts. Lower gross margins for CMC in the current year period were a result of lower sales volumes and prices for carbon pitch in North America and Europe.

Depreciation and amortization charges for the quarter ended March 31, 2020 were consistent with the prior year period.

Impairment and restructuring charges for the quarter ended March 31, 2020 were consistent with the prior year period.

Selling, general and administrative expenses for the quarter ended March 31, 2020 were $2.2 million lower when compared to the prior year period due mainly to a decrease of $1.3 million for performance based employee incentive expense and $1.2 million for travel and facility related costs. These decreases were partially offset by a slight increase of for certain consulting, legal and professional service costs in the current year period.

Interest expense for the quarter ended March 31, 2020 was $2.2 million lower when compared to the prior year period primarily due to our lower average debt level each quarter since our elevated cash needs for stock buybacks and major capital projects in the second half of 2018.

Income tax benefit for the quarter ended March 31, 2020 was $1.8 million as compared to an income tax benefit of $1.2 million in the prior year period. Both years included benefits related to discrete tax items which significantly influenced the tax provision. In 2020, we recognized net tax benefits of $1.8 million principally related to provisions of the CARES Act and, in 2019, we recognized net tax benefits of $3.8 million principally related to the reversal of unrecognized tax benefits due to audit closures.   

Discontinued operations for the three months ended March 31, 2020 resulted in a loss of $4.4 million compared to income of $2.7 million in the prior year period due primarily to a year-over-year reduction in sales of $48.1 million attributable to the economic effects of COVD-19 on our KJCC operations in the current year period.

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Segment Results.

Segment operating profit for the three months ended March 31, 2020 and 2019 is summarized by segment in the following table:

	Three Months Ended March 31,
	2020			2019			% Change
(Dollars in millions)
Operating profit (loss):
Railroad and Utility Products and Services	$	9.2		$	8.7			6	%
Performance Chemicals		4.1			12.8			-68	%
Carbon Materials and Chemicals		0.7			3.3			-79	%
Corporate		(0.4	)		(0.5	)		20	%
	$	13.6		$	24.3			-44	%
Operating profit as a percentage of net sales:
Railroad and Utility Products and Services		4.8	%		5.2	%		-0.4	%
Performance Chemicals		3.7	%		12.9	%		-9.2	%
Carbon Materials and Chemicals		0.7	%		3.0	%		-2.3	%
		3.4	%		6.4	%		-3.0	%

RUPS operating profit increased by $0.5 million compared to the prior year period. Operating profit as a percentage of net sales decreased to 4.8 percent from an operating profit of 5.2 percent in the prior year period. Operating profit as a percentage of net sales for the three months ended March 31, 2020 was negatively impacted by higher overhead costs and an unfavorable sales mix on gross margin in the current year period.

PC operating profit decreased by $8.7 million compared to the prior year period. Operating profit as a percentage of net sales decreased to 3.7 percent from 12.9 percent in the prior year period. The current year period was unfavorably impacted by a net amount of $11.1 million due to changes in unrealized gains and losses from our copper swap contracts. Excluding the effect of unrealized losses from our copper swap contracts, our operating profit as a percentage of net sales would have been 10.9 percent in the current year period. Lower year-over-year raw material prices and higher absorption on higher production volumes partially offset our unrealized coppers swap contract losses for the quarter ended March 31, 2020.

CMC operating profit decreased by $2.6 million compared to the prior year period. Operating profit as a percentage of net sales decreased to 0.7 percent from an operating profit of 3.0 percent in the prior year period. Operating profit for the quarter ended March 31, 2020 was negatively affected primarily by lower sales prices for carbon pitch in Australia, Europe and North America along with reduced sales volumes of carbon pitch in North America. These unfavorable drivers were primarily due to reduced demand as a result of an oversupply in the aluminum market. The global drop in crude oil prices also had an unfavorable impact on pricing and inventory write-downs within the segment during the current year period. Favorable offsetting factors in the current year period included increased volumes for phthalic anhydride in North America and carbon pitch and carbon black feedstock in Australia.

Cash Flow

Net cash used in operating activities for the three months ended March 31, 2020 was $17.2 million compared to net cash used in operating activities of $14.3 million in the prior year period. The net increase of $2.9 million in cash used in operations was due primarily to higher working capital usage of $1.2 million compared to the prior year period, mainly due to unfavorable timing of payments in the current year period. In addition, the change in income and certain operating activities of $1.7 million from the prior year period had an unfavorable result on cash provided by operations in the current year period. These negative impacts were partially offset by a net favorable impact on cash from a reduction in inventory in the current year period relative to the prior year end.

Net cash used in investing activities for the three months ended March 31, 2020 was $10.6 million compared to net cash used in investing activities of $9.3 million in the prior year period. Capital expenditures were consistent with the prior year period. The net increase in cash used for investing activities of $1.3 million is primarily due to the cash provided by insurance proceeds for capital expenditures of $1.4 million in the prior year period.

Net cash provided by financing activities was $50.3 million for the three months ended March 31, 2020 compared to $20.8 million of net cash provided by financing activities in the prior year period. The cash provided by financing activities in the three months ended March 31, 2020 reflected net borrowings of debt of $51.5 million partially offset by repurchases of common stock of $1.2 million. The cash provided by financing activities in the prior year period reflected net borrowings of $21.4 million partially offset by repurchases of common stock of $0.9 million.

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Liquidity and Capital Resources

We have a $600.0 million senior secured revolving credit facility and a $100.0 million secured term loan facility (collectively, the “Credit Facility”) with a maturity date of May 2024. The interest rate on the Credit Facility is variable and is based on LIBOR. On February 26, 2020, we entered into the Fourth Amendment and amended the Credit Facility to, among other things: (1) revise the LIBOR replacement language in the Credit Facility, (2) revise certain provisions regarding mandatory prepayments of the term loan facility with proceeds of equity issuances and associated definitions, (3) remove the step downs in the maximum total secured leverage ratio and maximum total leverage ratio which would otherwise occur at the time of a first equity issuance, and (4) revise certain provisions regarding disposition of assets by certain subsidiaries of Koppers Inc.

Restrictions on Dividends to Koppers Holdings

Koppers Holdings depends on the dividends from the earnings of Koppers Inc. and its subsidiaries to generate the funds necessary to meet its financial obligations, including the payment of any declared dividend of Koppers Holdings. The Credit Facility prohibits Koppers Inc. from making dividend payments to Koppers Holdings unless (1) such dividend payments are permitted by the indenture governing Koppers Inc.’s $500 million Senior Notes due 2025 (the “2025 Notes”), (2) no event of default or potential default has occurred or is continuing under our Credit Facility, and (3) we are in pro forma compliance with our fixed charge coverage ratio covenant after giving effect to such dividend. The indenture governing the 2025 Notes restricts Koppers Inc.’s ability to finance our payment of dividends if (1) a default has occurred or would result from such financing, (2) Koppers Inc., or a restricted subsidiary of Koppers Inc. which is not a guarantor under the indenture, is not able to incur additional indebtedness (as defined in the indenture), and (3) the sum of all restricted payments (as defined in the indenture) have exceeded the permitted amount (which we refer to as the “basket”) at such point in time.

The basket is governed by a formula based on the sum of a beginning amount, plus or minus a percentage of Koppers Inc.’s consolidated net income (as defined in the indenture), plus the net proceeds of Koppers Inc.’s qualified stock issuance or conversions of debt to qualified stock, plus the net proceeds from the sale of or a reduction in an investment (as defined in the indenture) or the value of the assets of an unrestricted subsidiary which is designated a restricted subsidiary. At March 31, 2020, the basket totaled $164.8 million. Notwithstanding such restrictions, the indenture governing the 2025 Notes permits an additional aggregate amount of $0.30 per share each fiscal quarter to finance dividends on the capital stock of Koppers Holdings, whether or not there is any basket availability, provided that at the time of such payment, no default in the indenture has occurred or would result from financing the dividends.

In addition, certain required coverage ratios in Koppers Inc.’s Credit Facility may restrict the ability of Koppers Inc. to pay dividends. Koppers Holdings last declared a dividend in November 2014 and does not expect to declare any dividends for the foreseeable future.

Liquidity

Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets of Koppers Inc., Koppers Holdings and their material domestic subsidiaries.

The Credit Facility contains certain covenants for Koppers Inc. and its restricted subsidiaries that limit capital expenditures, additional indebtedness, liens, dividends and investments or acquisitions. In addition, such covenants give rise to events of default upon the failure by Koppers Inc. and its restricted subsidiaries to meet certain financial ratios.

As of March 31, 2020, we had $129.9 million of unused revolving credit availability for working capital purposes after restrictions by various debt covenants and certain letter of credit commitments. As of March 31, 2020, $7.5 million of commitments were utilized by outstanding letters of credit.

The following table summarizes our estimated liquidity as of March 31, 2020 (dollars in millions):

Cash and cash equivalents(1)	$	54.2
Amount available under Credit Facility		129.9
Total estimated liquidity	$	184.1

(1) Cash includes approximately $53.0 million held by foreign subsidiaries.

Our estimated liquidity was $254.6 million at December 31, 2019.

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Our remaining need for cash in the next twelve months relates primarily to contractual obligations which include debt service, pension plan funding, purchase commitments and operating leases, as well as working capital, capital maintenance programs and the funding of plant consolidation and rationalizations. We may also use cash to pursue other potential strategic acquisitions or voluntary pension plan contributions. Capital expenditures in 2020, excluding acquisitions, if any, are expected to total approximately $55 to $65 million and are expected to be funded by cash from operations.

Debt Covenants

The covenants under the Credit Facility may restrict the availability to borrow or may restrict the ability of Koppers Inc. to pay dividends. The Credit Facility’s covenants include the following financial ratios:

◾ The fixed charge coverage ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, is not permitted to be less than 1.10. The fixed charge coverage ratio at March 31, 2020 was 2.31.

◾ The total secured leverage ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, is not permitted to exceed 3.00. The total secured leverage ratio at March 31, 2020 was 2.25.

◾ The total leverage ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, is not permitted to exceed 5.25. The total leverage ratio at March 31, 2020 was 4.63.

We are currently in compliance with all covenants governing the Credit Facility. Our continued ability to meet those financial ratios can be affected by events beyond our control, however, excluding possible acquisitions, we currently expect that our net cash flows from operating activities and funds available from our Credit Facility will be sufficient to provide for our working capital needs and capital spending requirements over the next twelve months.

Effects of COVID-19 on our Liquidity

As of March 31, 2020, we are in compliance with our debt covenant metrics and had $184.1 million of liquidity to fund our operations. Our estimates and assumptions as of the date of this report indicate that we should remain in compliance with our debt covenants and we have identified actions we can implement to help maintain compliance if the impact of COVID-19 has a more pronounced impact on the economy, our business and our ability to generate cash flow and profits than estimated. These impacts are highly uncertain and unpredictable, and include the severity of the outbreak and the effectiveness of actions globally to contain or mitigate its effects. Accordingly, the financial effects of the pandemic on our business may have an adverse effect on the determination of, and compliance with, our debt covenants over the next twelve months. In the event we do not maintain compliance with our debt covenants, we may be required to pursue additional sources of financing to meet our financial obligations. Obtaining such financing is not guaranteed and is largely dependent upon market conditions and other factors. Further actions may be required to improve our cash position, including but not limited to, monetizing assets, implementing cost reductions including employee furloughs, and foregoing capital expenditures and other discretionary expenses.

Legal Matters

The information set forth in Note 18 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

Recently Issued Accounting Guidance

The information set forth in Note 2 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

Critical Accounting Policies

There have been no material changes to our critical accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019.

Environmental and Other Matters

The information set forth in Note 18 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of this Part I is incorporated herein by reference.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There are no material changes to the disclosure on this matter made in our Annual Report on Form 10-K for the year ended December 31, 2019.

ITEM 4. CONTROLS AND PROCEDURES

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer and utilizing the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework (2013), have evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures were effective as of the end of the period covered by this report. There were no changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal controls over financial reporting despite the fact that a portion of our employees are working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 outbreak on our internal controls over financial reporting to minimize the impact on their design and operating effectiveness.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The information set forth in Note 18 to the Condensed Consolidated Financial Statements of Koppers Holdings Inc. included in Item 1 of Part I of this report is incorporated herein by reference.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this Quarterly Report on Form 10-Q, including the factors discussed below, carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, any of which could materially affect our business, financial condition or future results.  Those risk factors are not the only risks facing us. Additional risks and uncertainties not currently known or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Health concerns arising from the outbreak of a health epidemic or pandemic, including the currently ongoing COVID-19 pandemic, may have an adverse affect on our business, operating results and financial condition.

The recent outbreak of COVID-19 is a global situation that is rapidly evolving. The COVID-19 pandemic is having a significant impact on global markets as a result of supply chain and production disruptions, workforce restrictions, reduced spending and other factors. Our operating results are subject to fluctuations based on general economic conditions, and the extent to which the COVID-19 pandemic ultimately may impact our business will depend on future developments, such as the ultimate geographic spread of the disease and the duration of the outbreak and business closures or business disruptions for us, our suppliers and our customers, all of which are highly uncertain and cannot be predicted with confidence. These same uncertainties exist with respect to any additional future outbreak of COVID-19 and any other health epidemic or pandemic that may arise in the future.

Any resulting financial distress of our customers due to deterioration in economic conditions could result in reduced sales and decreased collectability of accounts receivable, which would negatively impact our results of operations. The COVID-19 pandemic or any other health epidemic or pandemic also could have a material impact on our ability to obtain the raw materials and parts that we need in order to manufacture our products as our suppliers face disruptions in their businesses or closures. If our suppliers fail to meet our manufacturing needs, it would delay our production and shipments to customers and negatively affect our operations.

U.S. and international governmental responses to the COVID-19 pandemic have included “shelter in place”, “stay at home” and similar types of orders. These orders exempt certain individuals and businesses needed to maintain continuity of operations of critical infrastructure sectors as determined by the federal government. Although most of our operations have been considered essential and exempt, and therefore have been able to continue to operate without interruption, our operations in China and New Zealand were temporarily curtailed. If any of the applicable exemptions are amended or revoked in the future or if additional restrictions that impact us are implemented in response to COVID-19 or any other health epidemic or pandemic, it could adversely impact our business, operating results and financial condition. Furthermore, to the extent that any of these exemptions do not extend to our key suppliers and customers, this also would adversely impact us in turn.

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In addition, our operations or the operations of our customers or suppliers could be disrupted if any of our or their employees were suspected of having contracted COVID-19 or any similar significant virus since such an occurrence could require us or our business partners to quarantine some number of employees, take actions to disinfect facilities or otherwise cause operations to be idled.

The ultimate impact of the current COVID-19 pandemic on general economic conditions, our business and our ability to generate cash flow and profits remains unable to be quantified given the uncertainties existing with respect to the extent and timing of the potential future spread or mitigation of COVID-19 and the imposition or relaxation of protective measures. To the extent the current COVID-19 pandemic or any other future health epidemic or pandemic adversely affects our business and financial results, it also may have the effect of heightening many of the other risks described in the risk factors included in the Annual Report on Form 10-K for the year ended December 31, 2019.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

10.42	Fourth Amendment to Credit Agreement, dated as of February 26, 2020, by and among Koppers Inc., as Borrower, the Guarantors party thereto, the Lenders party thereto and PNC Bank, National Association, as Administrative Agent (Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on February 27, 2020 (Commission File No. 001-32727)).
10.43	Koppers Holdings Inc. 2020 Long Term Incentive Plan (Incorporated by reference to Exhibit 99.1 to our Registration Statement on Form S-8 filed on May 6, 2020 (File No. 333-238041).
31.1*	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

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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.

	KOPPERS HOLDINGS INC. (REGISTRANT)
Date: May 7, 2020	By:	/s/    MICHAEL J. ZUGAY
		Michael J. Zugay Chief Financial Officer
		(Principal Financial Officer and Duly Authorized Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Leroy M. Ball, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Koppers Holdings Inc.;

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 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-5(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 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: May 7, 2020

/S/ LEROY M. BALL, JR.

Leroy M. Ball, Jr.

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Michael J. Zugay, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Koppers Holdings Inc.;

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 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-5(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 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: May 7, 2020

/s/ MICHAEL J. ZUGAY

Michael J. Zugay

Chief Financial Officer

EX-32.1

Exhibit 32.1

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 of Koppers Holdings Inc. (the “Company”) on Form 10-Q for the quarter ending March 31, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned hereby certifies in his capacity as an officer of the Company, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 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, as amended; and

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

/s/ LEROY M. BALL, JR.	/S/ MICHAEL J. ZUGAY
Leroy M. Ball, Jr.	Michael J. Zugay
President and Chief Executive Officer	Chief Financial Officer
May 7, 2020	May 7, 2020

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Plant Closures and Divestitures - Additional Information (Detail)	Nov. 30, 2016	Mar. 31, 2016	Jul. 31, 2015
Carbon Materials and Chemicals [Member] | Discontinued Operations Disposed Of By Means Other Than Sale [Member] | China [Member]
Restructuring Cost and Reserve [Line Items]
Percentage of operations in Tangshan, China owned by the company		60.00%
Tangshan Koppers Kailuan Carbon Chemical Company Limited [Member]
Restructuring Cost and Reserve [Line Items]
Ownership percentage	30.00%
KSA Limited Partnership [Member]
Restructuring Cost and Reserve [Line Items]
Ownership percentage			50.00%

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Discontinued Operations - Schedule of Net cash Inflows and Outflows From Discontinued Operations (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]
Net cash (used in) provided by operating activities	$ (0.2)	$ 13.1
Net cash used in investing activities	(0.1)	(0.7)
Net cash used in financing activities	0.0	(10.1)
Effect of exchange rate changes on cash	0.0	(0.1)
Net (decrease) increase in cash and cash equivalents	$ (0.3)	$ 2.2

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Segment Information - Summary of Tangible and Intangible Assets by Segments (Detail) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Segment Reporting Asset Reconciling Item [Line Items]
Assets	[1]	$ 1,573.1	$ 1,564.6
Goodwill		292.7	296.1
Railroad and Utility Products and Services [Member] | Operating Segments [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets		572.4	562.2
Goodwill		120.2	120.7
Performance Chemicals [Member] | Operating Segments [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets		468.5	457.7
Goodwill		172.5	175.4
Carbon Materials and Chemicals [Member] | Operating Segments [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets		485.5	502.1
All Other [Member] | Operating Segments [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets		$ 46.7	$ 42.6

[1]   (a) The Carbon Materials and Chemicals segment includes $67.5 million and $76.4 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Condensed Consolidated Balance Sheet - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents		$ 54.2	$ 32.3
Accounts receivable, net of allowance of $2.4 and $2.6		176.8	161.7
Income tax receivable		4.2	1.1
Inventories, net	[1]	276.2	288.5
Assets of discontinued operations held for sale		67.5	17.1
Other current assets		26.0	18.8
Total current assets		604.9	519.5
Property, plant and equipment, net	[2]	355.4	358.8
Operating lease right-of-use assets		106.1	112.3
Goodwill		292.7	296.1
Intangible assets, net		161.7	168.4
Deferred tax assets		31.0	23.7
Non-current assets of discontinued operations held for sale		0.0	59.3
Other assets		21.3	26.5
Total assets	[3]	1,573.1	1,564.6
Liabilities
Accounts payable		155.6	162.8
Accrued liabilities		100.9	89.3
Current operating lease liabilities		21.5	22.0
Current maturities of long-term debt		10.2	10.2
Liabilities of discontinued operations held for sale		34.6	11.9
Total current liabilities		322.8	296.2
Long-term debt		943.0	891.0
Accrued postretirement benefits		46.5	46.6
Deferred tax liabilities		6.4	6.8
Operating lease liabilities		86.4	91.5
Non-current liabilities of discontinued operations held for sale		0.0	25.1
Other long-term liabilities		58.8	48.7
Total liabilities		1,463.9	1,405.9
Commitments and contingent liabilities (Note 18)
Equity
Senior Convertible Preferred Stock, $0.01 par value per share; 10,000,000 shares authorized; no shares issued		0.0	0.0
Common Stock, $0.01 par value per share; 80,000,000 shares authorized; 23,556,317 and 23,321,087 shares issued		0.2	0.2
Additional paid-in capital		224.7	221.9
Retained earnings		92.4	93.8
Accumulated other comprehensive loss		(126.1)	(77.7)
Treasury stock, at cost, 2,574,631 and 2,515,925 shares		(92.1)	(90.9)
Total Koppers shareholders’ equity		99.1	147.3
Noncontrolling interests		10.1	11.4
Total equity		109.2	158.7
Total liabilities and equity		$ 1,573.1	$ 1,564.6

[1] Net inventories excludes $5.5 million and $10.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

[2] Net Property, plant, and equipment excludes $54.8 million and $56.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

[3]   (a) The Carbon Materials and Chemicals segment includes $67.5 million and $76.4 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Segment Information - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) Segment	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	3
Railroad and Utility Products and Services [Member]
Segment Reporting Information [Line Items]
Contract with customer, asset, net, current | $	$ 5.6	$ 5.1

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Inventories - Components of Net Inventories (Detail) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials		$ 235.1	$ 232.0
Work in process		9.2	12.0
Finished goods		94.6	107.8
Inventories, gross		338.9	351.8
Less revaluation to LIFO		62.7	63.3
Net	[1]	$ 276.2	$ 288.5

[1] Net inventories excludes $5.5 million and $10.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Changes And Error Corrections [Abstract]

New Accounting Pronouncements

2. New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 is meant to simplify accounting for income taxes by removing certain exceptions to the principles in Topic 740 and amends existing guidance to facilitate consistent application. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Schedule of Net Sales and Operating (Loss) Profit from Discontinued Operations

Net sales and operating (loss) profit from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net sales	$	9.9		$	58.0
Operating (loss) profit		(5.1	)		4.1

Schedule of Net cash Inflows and Outflows From Discontinued Operations

The cash flows related to KJCC have not been restated in the consolidated statement of cash flows. Net cash inflows and outflows from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net cash (used in) provided by operating activities	$	(0.2	)	$	13.1
Net cash used in investing activities		(0.1	)		(0.7	)
Net cash used in financing activities		0.0			(10.1	)
Effect of exchange rate changes on cash		0.0			(0.1	)
Net (decrease) increase in cash and cash equivalents		(0.3	)		2.2

Schedule of Carrying Amount of Assets and Liabilities by Major Class Classified as Held for Sale

The following represents the carrying amount of assets and liabilities, by major class, classified as held for sale on the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Assets
Cash and cash equivalents	$	0.4	$	0.7
Accounts receivable		1.4		2.2
Income tax receivable		0.8		0.8
Inventories, net		5.5		10.6
Property, plant and equipment, net		54.8		0.0
Operating lease right-of-use assets		1.1		0.0
Other current assets		3.5		2.8
Total current assets held for sale		67.5		17.1
Property, plant and equipment, net		0.0		56.6
Operating lease right-of-use assets		0.0		1.2
Other assets		0.0		1.5
Total non-current assets held for sale		0.0		59.3
Total assets held for sale	$	67.5	$	76.4
Liabilities
Accounts payable	$	4.3	$	7.1
Accrued liabilities		5.8		4.7
Current operating lease liabilities		1.0		0.1
Deferred tax liabilities		0.6		0.0
Other current liabilities		22.9		0.0
Total current liabilities held for sale		34.6		11.9
Deferred tax liabilities		0.0		0.6
Operating lease liabilities		0.0		1.1
Other long-term liabilities		0.0		23.4
Total non-current liabilities held for sale		0.0		25.1
Total liabilities held for sale	$	34.6	$	37.0

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

17. Derivative Financial Instruments

We utilize derivative instruments to manage exposures to risks that have been identified and measured and are capable of being controlled. The primary risks managed by us by using derivative instruments are commodity price risk associated with copper and foreign currency exchange risk associated with a number of currencies, principally the U.S. dollar, the Canadian dollar, the New Zealand dollar, the Euro and British pounds. Swap contracts on copper are used to manage the price risk associated with forecasted purchases of materials used in our manufacturing processes. Generally, we will not hedge cash flow exposures for durations longer than 36 months and we have hedged certain volumes of copper through 2022. We enter into foreign currency forward contracts to manage foreign currency risk associated with our receivable and payable balances and foreign currency denominated sales. Generally, we enter into master netting arrangements with the counterparties and offset net derivative positions with the same counterparties. Currently, our agreements do not require cash collateral.

ASC Topic 815-10, “Derivatives and Hedging,” requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. Derivative instruments’ fair value is determined using significant other observable inputs, or Level 2 in the fair value hierarchy. In accordance with ASC Topic 815-10, we designate certain of our commodity swaps as cash flow hedges of forecasted purchases of commodities. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive (loss) income and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

For those commodity swaps which are not designated as cash flow hedges, the fair value of the commodity swap is recognized as an asset or liability in the consolidated balance sheet and the related gain or loss on the derivative is reported in current earnings. These amounts are classified in cost of sales in the consolidated statement of operations.

As of March 31, 2020 and December 31, 2019, we had outstanding copper swap contracts of the following amounts:

	Units Outstanding (in Pounds)				Net Fair Value - (Liability) Asset
	March 31, 2020		December 31, 2019		March 31, 2020			December 31, 2019
(Amounts in millions)
Cash flow hedges		73.7		56.5	$	(28.9	)	$	4.5
Not designated as hedges		16.5		16.6		(6.1	)		1.7
Total		90.2		73.1	$	(35.0	)	$	6.2

As of March 31, 2020 and December 31, 2019, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	0.0		$	2.1
Other assets		0.0			4.1
Accrued liabilities		(19.3	)		0.0
Other long-term liabilities		(15.7	)		0.0
Net (liability) asset on balance sheet	$	(35.0	)	$	6.2
Accumulated other comprehensive (loss) gain, net of tax	$	(22.2	)	$	3.3

Based upon contracts outstanding at March 31, 2020, in the next twelve months we estimate that $11.7 million of unrealized losses, net of tax, related to commodity price hedging will be reclassified from comprehensive (loss) income into earnings.

See “Note 6 – Comprehensive (Loss) Income and Equity”, for amounts recorded in comprehensive (loss) income and for amounts reclassified from accumulated other comprehensive loss to net (loss) income for the periods specified below. For the three months ended March 31, 2020 and 2019, the (loss) gain from contracts not designated as hedges is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
(Loss) gain from contracts not designated as hedges	$	(8.0	)	$	3.1

The fair value associated with forward contracts related to foreign currency that are not designated as hedges are immediately charged to earnings. These amounts are classified in cost of sales in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income.

As of March 31, 2020 and December 31, 2019, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	1.6		$	0.3
Accrued liabilities		(0.3	)		(0.5	)
Net asset (liability) on balance sheet	$	1.3		$	(0.2	)

As of March 31, 2020 and December 31, 2019, the net currency units outstanding for these contracts were:

	March 31, 2020		December 31, 2019
(In millions)
British Pounds		GBP 3.7		GBP 3.7
New Zealand Dollars		NZD 16.0		NZD 16.0
United States Dollars		USD 2.8		USD 6.2
Euro		EUR 1.2		EUR 1.2

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Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

9. Segment Information

We have three reportable segments: Railroad and Utility Products and Services, Performance Chemicals and Carbon Materials and Chemicals. Our reportable segments contain multiple aggregated business units since management believes the long-term financial performance of these business units is affected by similar economic conditions.

The reportable segments are each managed separately because they manufacture and distribute distinct products with different production processes.

Our RUPS segment sells treated and untreated wood products, manufactured products and services primarily to the railroad and public utility markets. Railroad products and services include procuring and treating items such as crossties, switch ties and various types of lumber used for railroad bridges and crossings and the manufacture of rail joint bars. The segment also manufactures treated wood utility transmission and distribution poles for utility and cooperative utility companies and treated wood pilings used for construction applications. In addition, RUPS operates a railroad services business that conducts engineering, design, repair and inspection services for railroad bridges as well as a business related to the recovery of used crossties.

Our PC segment develops, manufactures, and markets wood preservation chemicals and wood treatment technologies and services a diverse range of end-markets including infrastructure, residential and commercial construction, and agriculture.

Our CMC segment is primarily a manufacturer of creosote, carbon pitch, naphthalene, phthalic anhydride and carbon black feedstock. Creosote is used in the treatment of wood and carbon black feedstock is used in the production of carbon black. Carbon pitch is used in the production of aluminum and steel in electric arc furnaces. Naphthalene is used for the production of phthalic anhydride and as a surfactant in the production of concrete. Phthalic anhydride is used in the production of plasticizers, polyester resins and alkyd paints.

We evaluate performance and determine resource allocations based on a number of factors, including operating profit or loss from operations and earnings before interest, taxes, depreciation and amortization (“EBITDA”). Operating profit does not include other loss, interest expense, income taxes or operating costs of Koppers Holdings Inc.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019. Intersegment transactions are eliminated in consolidation.

Contract Balances

The timing of revenue recognition in accordance with ASC 606, “Revenue from Contracts with Customers”, results in both billed accounts receivable and unbilled receivables, both classified as accounts receivable, net of allowance within the condensed consolidated balance sheet. Contract assets of $5.6 million and $5.1 million are recorded within accounts receivable in our RUPS segment, net of allowance within the consolidated balance sheet as of March 31, 2020 and December 31, 2019, respectively.

The following table sets forth certain sales and operating data, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Revenues from external customers:
Railroad and Utility Products and Services	$	190.0		$	166.1
Performance Chemicals		111.4			99.0
Carbon Materials and Chemicals(a)		100.5			111.8
Total	$	401.9		$	376.9
Intersegment revenues:
Railroad and Utility Products and Services	$	0.0		$	0.3
Performance Chemicals		3.2			3.1
Carbon Materials and Chemicals		18.0			17.9
Total	$	21.2		$	21.3
Depreciation and amortization expense:
Railroad and Utility Products and Services	$	4.9		$	4.8
Performance Chemicals		4.5			4.9
Carbon Materials and Chemicals(b)		4.1			3.9
Total	$	13.5		$	13.6
Operating profit (loss):
Railroad and Utility Products and Services	$	9.2		$	8.7
Performance Chemicals		4.1			12.8
Carbon Materials and Chemicals(c)		0.7			3.3
Corporate		(0.4	)		(0.5	)
Total	$	13.6		$	24.3

(a) Revenue excludes KJCC discontinued operations of $9.9 million and $58.0 million for the three months ended March 31, 2020 and 2019, respectively.

(b) Depreciation and amortization expense excludes KJCC discontinued operations of $1.0 million for the three months ended March 31, 2020 and 2019.

(c) Operating profit (loss) excludes KJCC discontinued operations of $(5.1) million and $4.1 million for the three months ended March 31, 2020 and 2019, respectively.

The following table sets forth revenues for significant product lines, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Railroad and Utility Products and Services:
Railroad treated products	$	112.0	$	88.6
Utility poles		61.9		54.5
Rail joints		6.4		8.3
Railroad infrastructure services		6.0		8.8
Other products		3.7		5.9
Total		190.0		166.1
Performance Chemicals:
Wood preservative products		107.6		96.4
Other products		3.8		2.6
Total		111.4		99.0
Carbon Materials and Chemicals:
Pitch and related products		50.2		62.8
Creosote and distillates		15.2		15.9
Phthalic anhydride and other chemicals		23.5		21.0
Naphthalene		5.0		6.4
Other products		6.6		5.8
Total		100.5		111.8
Total	$	401.9	$	376.9

The following table sets forth tangible and intangible assets allocated to each of our segments as of the dates indicated:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Segment assets:
Railroad and Utility Products and Services	$	572.4	$	562.2
Performance Chemicals		468.5		457.7
Carbon Materials and Chemicals(a)		485.5		502.1
All other		46.7		42.6
Total(a)	$	1,573.1	$	1,564.6
Goodwill:
Railroad and Utility Products and Services	$	120.2	$	120.7
Performance Chemicals		172.5		175.4
Total	$	292.7	$	296.1

(a) The Carbon Materials and Chemicals segment includes $67.5 million and $76.4 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2020 and December 31, 2019 are as follows:

	March 31, 2020				December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash	$	54.2	$	54.2	$	32.3	$	32.3
Investments and other assets(a)		1.2		1.2		1.2		1.2
Financial liabilities:
Total debt	$	950.9	$	963.4	$	896.2	$	911.9

(a) Excludes equity method investments.

Cash and cash equivalents – The carrying value approximates fair value because of the short maturity of those instruments.

Investments and other assets – Represents the broker-quoted cash surrender value on universal life insurance policies. This asset is classified as Level 2 in the valuation hierarchy and is measured from values received from financial institutions.

Debt – The fair value of our long-term debt is estimated based on the market prices for the same or similar issuances or on the current rates offered to us for debt of the same remaining maturities (Level 2). The fair value of our Credit Facility approximates carrying value due to the variable rate nature of this instrument.

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Pensions and Post-Retirement Benefit Plans

3 Months Ended

Mar. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Pensions and Post-Retirement Benefit Plans

13. Pensions and Post-Retirement Benefit Plans

We maintain a number of defined benefit and defined contribution plans to provide retirement benefits for employees in the United States, as well as employees outside the United States These plans are maintained and contributions are made in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”), local statutory law or as determined by the board of directors. The defined benefit pension plans generally provide benefits based upon years of service and compensation. Pension plans are funded except for three domestic non-qualified defined benefit pension plans for certain key executives.

In the United States, all qualified and two of the non-qualified defined benefit pension plans for salaried and hourly employees have been closed to new participants and have been frozen. Accordingly, these pension plans no longer accrue additional years of service or recognize future increases in compensation for benefit purposes.

The defined contribution plans generally provide retirement assets to employee participants based upon employer and employee contributions to the participant’s individual investment account. We also provide retiree medical insurance coverage to certain U.S. employees and a life insurance benefit to most U.S. employees. For salaried employees, the retiree medical and retiree insurance plans have been closed to new participants.

The following table provides the components of net periodic benefit cost for the pension plans for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Service cost	$	0.3		$	0.4
Interest cost		1.6			2.0
Expected return on plan assets		(2.0	)		(2.0	)
Amortization of net loss		0.4			0.4
Net periodic benefit cost	$	0.3		$	0.8
Defined contribution plan expense	$	1.6		$	1.6

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Results of Segment Operations

The following table sets forth certain sales and operating data, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Revenues from external customers:
Railroad and Utility Products and Services	$	190.0		$	166.1
Performance Chemicals		111.4			99.0
Carbon Materials and Chemicals(a)		100.5			111.8
Total	$	401.9		$	376.9
Intersegment revenues:
Railroad and Utility Products and Services	$	0.0		$	0.3
Performance Chemicals		3.2			3.1
Carbon Materials and Chemicals		18.0			17.9
Total	$	21.2		$	21.3
Depreciation and amortization expense:
Railroad and Utility Products and Services	$	4.9		$	4.8
Performance Chemicals		4.5			4.9
Carbon Materials and Chemicals(b)		4.1			3.9
Total	$	13.5		$	13.6
Operating profit (loss):
Railroad and Utility Products and Services	$	9.2		$	8.7
Performance Chemicals		4.1			12.8
Carbon Materials and Chemicals(c)		0.7			3.3
Corporate		(0.4	)		(0.5	)
Total	$	13.6		$	24.3

(a) Revenue excludes KJCC discontinued operations of $9.9 million and $58.0 million for the three months ended March 31, 2020 and 2019, respectively.

(b) Depreciation and amortization expense excludes KJCC discontinued operations of $1.0 million for the three months ended March 31, 2020 and 2019.

(c) Operating profit (loss) excludes KJCC discontinued operations of $(5.1) million and $4.1 million for the three months ended March 31, 2020 and 2019, respectively.

Schedule of Segment Revenues for Significant Product Lines

The following table sets forth revenues for significant product lines, net of all intersegment transactions, for our segments for the periods indicated:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Railroad and Utility Products and Services:
Railroad treated products	$	112.0	$	88.6
Utility poles		61.9		54.5
Rail joints		6.4		8.3
Railroad infrastructure services		6.0		8.8
Other products		3.7		5.9
Total		190.0		166.1
Performance Chemicals:
Wood preservative products		107.6		96.4
Other products		3.8		2.6
Total		111.4		99.0
Carbon Materials and Chemicals:
Pitch and related products		50.2		62.8
Creosote and distillates		15.2		15.9
Phthalic anhydride and other chemicals		23.5		21.0
Naphthalene		5.0		6.4
Other products		6.6		5.8
Total		100.5		111.8
Total	$	401.9	$	376.9

Summary of Tangible and Intangible Assets by Segments

The following table sets forth tangible and intangible assets allocated to each of our segments as of the dates indicated:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Segment assets:
Railroad and Utility Products and Services	$	572.4	$	562.2
Performance Chemicals		468.5		457.7
Carbon Materials and Chemicals(a)		485.5		502.1
All other		46.7		42.6
Total(a)	$	1,573.1	$	1,564.6
Goodwill:
Railroad and Utility Products and Services	$	120.2	$	120.7
Performance Chemicals		172.5		175.4
Total	$	292.7	$	296.1

(a) The Carbon Materials and Chemicals segment includes $67.5 million and $76.4 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Pensions and Post-Retirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2020

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost for Pension Plans

The following table provides the components of net periodic benefit cost for the pension plans for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Service cost	$	0.3		$	0.4
Interest cost		1.6			2.0
Expected return on plan assets		(2.0	)		(2.0	)
Amortization of net loss		0.4			0.4
Net periodic benefit cost	$	0.3		$	0.8
Defined contribution plan expense	$	1.6		$	1.6

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Stock-based Compensation - Summary of Status and Activity of Non-Vested Stock Units (Detail)	3 Months Ended
	Mar. 31, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested, Beginning Balance	788,198
Granted	528,354
Vested	(212,537)
Forfeited	(44,823)
Non-vested, Ending Balance	1,059,192
Beginning Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares	$ 40.18
Granted, Weighted Average Grant Date Fair Value per Unit | $ / shares	16.09
Vested, Weighted Average Grant Date Fair Value per Unit | $ / shares	47.19
Forfeited, Weighted Average Grant Date Fair Value per Unit | $ / shares	34.21
Ending Balance, Non-vested, Weighted Average Grant Date Fair Value per Unit | $ / shares	$ 27.01
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested, Beginning Balance	343,012
Granted	295,873
Vested	(102,369)
Forfeited	(23,129)
Non-vested, Ending Balance	513,387
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested, Beginning Balance	445,186
Granted	232,481
Vested	(110,168)
Forfeited	(21,694)
Non-vested, Ending Balance	545,805

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Earnings per Common Share - Schedule of Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net (loss) income attributable to Koppers	$ (1.4)	$ 11.6
(Loss) income from discontinued operations	(4.4)	2.7
Non-controlling loss (income) from discontinued operations	1.1	(0.9)
Income from continuing operations attributable to Koppers	$ 1.9	$ 9.8
Weighted average common shares outstanding:
Basic	20,852	20,575
Effect of dilutive securities	463	306
Diluted	21,315	20,881
Earnings per common share – continuing operations:
Basic earnings per common share	$ 0.09	$ 0.47
Diluted earnings per common share	$ 0.09	$ 0.47
Other data:
Antidilutive securities excluded from computation of diluted earnings per common share	682	534

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Leases - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease costs	$ 7.8	$ 8.0
Variable lease costs	$ 1.0	$ 0.9

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Commitments and Contingent Liabilities - Changes in Accrued Liability for Environmental Matters (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Balance at beginning of year	$ 9.5	$ 10.1
Expense	0.0	0.5
Reversal of reserves	0.0	(0.8)
Cash expenditures	(0.0)	(0.3)
Currency translation	(0.2)	0.0
Balance at end of period	$ 9.3	$ 9.5

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Inventories - Components of Net Inventories (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Koppers (Jiangsu) Carbon Chemical Company Limited [Member]
Inventory [Line Items]
Discontinued operations assets held for sale	$ 5.5	$ 10.6

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Leases - Schedule of Supplemental Consolidated Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Operating leases:
Operating lease right-of-use assets	$ 106.1	$ 112.3	$ 112.3
Current operating lease liabilities	21.5	22.0	22.0
Operating lease liabilities	86.4	$ 91.5	91.5
Total operating lease liabilities	$ 107.9		$ 113.5
Weighted average remaining lease term, in years	6 years 9 months 18 days		7 years 1 month 6 days
Weighted average discount rate	7.70%		7.70%

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Derivative Financial Instruments - Schedule of (Loss) Gain from Contract Not Designated as Hedges (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Hedges [Member]
Derivative [Line Items]
(Loss) gain from contracts not designated as hedges	$ (8.0)	$ 3.1

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Pensions and Post-Retirement Benefit Plans - Components of Net Periodic Benefit Cost for Pension Plans (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Postemployment Benefits [Abstract]
Service cost	$ 0.3	$ 0.4
Interest cost	1.6	2.0
Expected return on plan assets	(2.0)	(2.0)
Amortization of net loss	0.4	0.4
Net periodic benefit cost	0.3	0.8
Defined contribution plan expense	$ 1.6	$ 1.6

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Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

12. Property, Plant and Equipment

Property, plant and equipment as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Land	$	14.4	$	15.0
Buildings		69.3		70.5
Machinery and equipment		731.5		732.4
	$	815.2	$	817.9
Less accumulated depreciation		459.8		459.1
Net(a)	$	355.4	$	358.8

(a) Net Property, plant, and equipment excludes $54.8 million and $56.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Stock-based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

8. Stock-based Compensation

We have outstanding stock-based compensation awards that were granted under the amended and restated 2005 Long-Term Incentive Plan (the “2005 LTIP”), the 2018 Long-Term Incentive Plan (the “2018 LTIP”) and the 2020 Long-Term Incentive Plan (the “2020 LTIP”). The 2005 LTIP, the 2018 LTIP and the 2020 LTIP are collectively referred to as the “LTIP”. On May 6, 2020, the 2020 LTIP was approved by our shareholders and the 2018 LTIP was frozen. Similar to the 2018 LTIP, the 2020 LTIP provides for the grant to eligible persons of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance awards, dividend equivalents and other stock-based awards, which are collectively referred to as the “awards.”

Restricted Stock Units and Performance Stock Units

Under the LTIP, the board of directors grants restricted stock units and performance stock units to certain employee participants (collectively, the “stock units”). Compensation expense for non-vested stock units is recorded over the vesting period based on the fair value at the date of grant. The fair value of restricted stock units is the market price of the underlying common stock on the date of grant and the fair value of performance stock units is determined using a Monte Carlo valuation model. For grants to most employees, the restricted stock units vest in four equal annual installments. Restricted stock units that have one-year vesting periods are also issued under the LTIP to members of the board of directors in connection with annual director compensation and, from time to time, are issued to employees in connection with employee compensation with vesting periods of typically two years or less.

Performance stock units have vesting based upon a market condition. These performance stock units have multi-year performance objectives and a three-year period for vesting (if the applicable performance objective is achieved). The applicable performance objective is based on our total shareholder return relative to the Standard & Poor’s SmallCap 600 Materials Index. The number of performance stock units granted represents the target award and participants have the ability to earn between zero and 200 percent of the target award based upon actual performance. If minimum performance criteria are not achieved, no performance stock units will vest. We have the discretion to settle the award in cash rather than shares, although we currently expect that all awards will be settled by the issuance of shares.

We calculated the fair value of the performance stock unit awards on the date of grant using the assumptions listed below:

	March 2020 Grant			March 2019 Grant			May 2018 Grant			March 2018 Grant
Grant date price per share of   performance award	$	19.63		$	26.63		$	39.10		$	41.60
Expected dividend yield per   share		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		45.60	%		39.00	%		39.40	%		39.40	%
Risk-free interest rate		0.72	%		2.50	%		2.35	%		2.35	%
Look-back period in years		2.83			2.82			2.84			2.84
Grant date fair value per share	$	11.56		$	40.30		$	44.29		$	47.12

Dividends declared, if any, on our common stock during the period prior to vesting of the stock units are credited at equivalent value as additional stock units and become payable as additional common shares upon vesting. In the event of termination of employment, other than retirement, death or disability, any non-vested stock units are forfeited, including additional stock units credited from dividends. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the stock units over the service period will result. There are special vesting provisions for the stock units related to a change in control. 

The following table shows a summary of the performance stock units as of March 31, 2020:

Performance Period	Minimum Shares		Target Shares		Maximum Shares
2018 – 2020		0		119,630		239,260
2019 – 2021		0		195,047		285,950
2020 – 2022		0		231,128		462,256

Performance stock units for the 2017 – 2019 performance period vested in March 2020 at 100 percent of the target share amount of 110,262.

The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2020:

	Restricted Stock Units			Performance Stock Units			Total Stock Units			Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2019		343,012			445,186			788,198		$	40.18
Granted		295,873			232,481			528,354		$	16.09
Vested		(102,369	)		(110,168	)		(212,537	)	$	47.19
Forfeited		(23,129	)		(21,694	)		(44,823	)	$	34.21
Non-vested at March 31, 2020		513,387			545,805			1,059,192		$	27.01

Stock Options

Stock options to most executive officers vest and become exercisable in four equal annual installments. The stock options have a term of ten years. In the event of termination of employment, other than retirement, death or disability, any non-vested options are forfeited. In the event of termination of employment due to retirement, death or disability, pro-rata vesting of the options over the service period will result. There are special vesting provisions for the stock options related to a change in control.

Compensation expense for non-vested stock options is recorded over the vesting period based on the fair value at the date of grant. We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below:

	March 2020 Grant			March 2019 Grant			March 2018 Grant			March 2017 Grant
Grant date price per share of stock   option award	$	19.63		$	26.63		$	41.60		$	44.10
Expected dividend yield per share		0.00	%		0.00	%		0.00	%		0.00	%
Expected life in years		6.40			6.14			5.73			5.77
Expected volatility		42.85	%		39.44	%		37.05	%		39.70	%
Risk-free interest rate		0.87	%		2.53	%		2.67	%		2.13	%
Grant date fair value per share of option awards	$	8.42		$	11.29		$	16.38		$	17.90

We do not expect to declare any dividends for the foreseeable future. The expected life in years is based on historical exercise data of options previously granted by us. Expected volatility is based on the historical volatility of our common stock and the historical volatility of certain other similar public companies. The risk-free interest rate is based on U.S. Treasury bill rates for the expected life of the option.

The following table shows a summary of the status and activity of stock options for the three months ended March 31, 2020:

	Options			Weighted Average Exercise Price per Option		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2019		966,849		$	28.45
Granted		187,701		$	19.63
Expired		(5,129	)	$	31.28
Forfeited		(12,280	)	$	31.03
Outstanding at March 31, 2020		1,137,141		$	26.96		6.42	$	0.0
Exercisable at March 31, 2020		771,153		$	27.29		5.12	$	0.0

Stock Compensation Expense

Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2020 and 2019 is as follows:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Stock-based compensation expense recognized:
Selling, general and administrative expenses	$	2.5	$	2.9
Less related income tax benefit		0.8		0.9
Decrease in net income attributable to Koppers	$	1.7	$	2.0

As of March 31, 2020, total future compensation expense related to non-vested stock-based compensation arrangements totaled $23.0 million and the weighted-average period over which this expense is expected to be recognized is approximately 32 months.

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Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

4. Discontinued Operations

On February 18, 2020, we entered into a definitive agreement to sell KJCC to Fangda Carbon New Material Co., Ltd and C-Chem Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. KJCC is located in China and is a 75 percent-owned coal tar distillation company which is part of our CMC segment. The sales price is $107.0 million, subject to adjustment for cash, debt and working capital at closing, which is expected to occur four to six months after signing due to required regulatory approvals in China and achievement of other customary closing conditions. At closing, we estimate the gain on the sale of KJCC will be approximately $45 million and net cash proceeds to Koppers will be approximately $65 million, after noncontrolling interest, taxes and expenses. The sale of KJCC represents a strategic shift that will have a major effect on our operations and financial results and is, therefore, classified as discontinued operations in our consolidated financial statements and notes, which have been restated accordingly.

Net sales and operating (loss) profit from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net sales	$	9.9		$	58.0
Operating (loss) profit		(5.1	)		4.1

The cash flows related to KJCC have not been restated in the consolidated statement of cash flows. Net cash inflows and outflows from discontinued operations for the three months ended March 31, 2020 and 2019 consist of the following amounts:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net cash (used in) provided by operating activities	$	(0.2	)	$	13.1
Net cash used in investing activities		(0.1	)		(0.7	)
Net cash used in financing activities		0.0			(10.1	)
Effect of exchange rate changes on cash		0.0			(0.1	)
Net (decrease) increase in cash and cash equivalents		(0.3	)		2.2

Assets Held for Sale

Assets and liabilities (the “disposal group”) are classified as held for sale when, among other items, the sale of the asset is probable and the completed sale is expected to occur within one year. Upon classification as held for sale, such assets are no longer depreciated or depleted, and a measurement for impairment is performed to determine if there is any excess of carrying value over fair value less costs to sell. Subsequent changes to estimated fair value less the cost to sell will impact the measurement of assets held for sale if the fair value is determined to be less than the carrying value of the assets.

The agreement to sell KJCC met all of the criteria to classify its assets and liabilities as held for sale in the first quarter of 2020. As part of the required evaluation under the held for sale guidance, we determined that the approximate fair value less costs to sell the operations exceeded the carrying value of the net assets and no impairment charge was recorded.

The following represents the carrying amount of assets and liabilities, by major class, classified as held for sale on the Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Assets
Cash and cash equivalents	$	0.4	$	0.7
Accounts receivable		1.4		2.2
Income tax receivable		0.8		0.8
Inventories, net		5.5		10.6
Property, plant and equipment, net		54.8		0.0
Operating lease right-of-use assets		1.1		0.0
Other current assets		3.5		2.8
Total current assets held for sale		67.5		17.1
Property, plant and equipment, net		0.0		56.6
Operating lease right-of-use assets		0.0		1.2
Other assets		0.0		1.5
Total non-current assets held for sale		0.0		59.3
Total assets held for sale	$	67.5	$	76.4
Liabilities
Accounts payable	$	4.3	$	7.1
Accrued liabilities		5.8		4.7
Current operating lease liabilities		1.0		0.1
Deferred tax liabilities		0.6		0.0
Other current liabilities		22.9		0.0
Total current liabilities held for sale		34.6		11.9
Deferred tax liabilities		0.0		0.6
Operating lease liabilities		0.0		1.1
Other long-term liabilities		0.0		23.4
Total non-current liabilities held for sale		0.0		25.1
Total liabilities held for sale	$	34.6	$	37.0

The above amounts are excluded from the respective balance sheet footnotes as of March 31, 2020 and December 31, 2019. We have incurred aggregated deal costs related to this divestiture of $1.0 million during the three months ended March 31, 2020, which are included in (loss) income from discontinued operations on the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income.

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Summary of Income Taxes Reconciled with Federal Statutory Rate

The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to:

	March 31,			March 31,
	2020			2019
Federal income tax rate		21.0	%		21.0	%
Foreign earnings taxed at different rates		4.3			1.3
Nondeductible expenses		2.3			1.4
GILTI inclusion, net of foreign tax credits		2.3			(0.9	)
State income taxes, net of federal tax benefit		1.0			0.7
Change in tax contingency reserves		0.2			0.2
Interest expense deduction limitation		0.0			8.1
Other		(0.4	)		(0.4	)
Estimated annual effective income tax rate		30.7	%		31.4	%

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Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments

Debt as of March 31, 2020 and December 31, 2019 was as follows:

	Weighted Average Interest Rate			Maturity	March 31, 2020		December 31, 2019
(Dollars in millions)
Term Loan		4.47	%	2024	$	80.0	$	82.5
Revolving Credit Facility		4.47	%	2024		383.1		329.0
Other loans		6.04	%	2021		0.3		0.4
Senior Notes due 2025		6.00	%	2025		500.0		500.0
Debt						963.4		911.9
Less short-term debt and current maturities of    long-term debt						10.2		10.2
Less unamortized debt issuance costs						10.2		10.7
Long-term debt					$	943.0	$	891.0

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Stock-based Compensation - Summary of Performance Stock Units (Detail) - shares	Mar. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	1,059,192	788,198
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	545,805	445,186
Minimum [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	0
Minimum [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	0
Minimum [Member] | 2020 - 2022 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	0
Target Shares [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	119,630
Target Shares [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	195,047
Target Shares [Member] | 2020 - 2022 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	231,128
Maximum [Member] | 2018 - 2020 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	239,260
Maximum [Member] | 2019 - 2021 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	285,950
Maximum [Member] | 2020 - 2022 [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	462,256

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Comprehensive Income and Equity - Schedule of Change in Equity (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 158.7	$ 67.0
Net loss	(2.5)	12.5
Issuance of common stock	0.2	0.3
Employee stock plans	2.5	2.9
Other comprehensive (loss) income
Currency translation adjustment	(23.3)	1.8
Unrealized loss on cash flow hedges	(25.4)	6.2
Unrecognized pension net loss	0.2	0.2
Repurchases of common stock	(1.2)	(0.8)
Balance	109.2	90.1
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	0.2	0.2
Net loss	0.0	0.0
Issuance of common stock	0.0	0.0
Employee stock plans	0.0	0.0
Other comprehensive (loss) income
Currency translation adjustment	0.0	0.0
Unrealized loss on cash flow hedges	0.0	0.0
Unrecognized pension net loss	0.0	0.0
Repurchases of common stock	(0.0)	(0.0)
Balance	0.2	0.2
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	221.9	206.0
Net loss	0.0	0.0
Issuance of common stock	0.2	0.3
Employee stock plans	2.5	2.9
Other comprehensive (loss) income
Currency translation adjustment	0.0	0.0
Unrealized loss on cash flow hedges	0.0	0.0
Unrecognized pension net loss	0.0	0.0
Repurchases of common stock	(0.0)	(0.2)
Balance	224.7	209.0
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	93.8	27.2
Net loss	(1.4)	11.6
Issuance of common stock	0.0	0.0
Employee stock plans	0.0	0.0
Other comprehensive (loss) income
Currency translation adjustment	0.0	0.0
Unrealized loss on cash flow hedges	0.0	0.0
Unrecognized pension net loss	0.0	0.0
Repurchases of common stock	(0.0)	0.1
Balance	92.4	38.9
Accumulated Other Comprehensive (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(77.7)	(87.2)
Net loss	0.0	0.0
Issuance of common stock	0.0	0.0
Employee stock plans	0.0	0.0
Other comprehensive (loss) income
Currency translation adjustment	(23.2)	1.5
Unrealized loss on cash flow hedges	(25.4)	6.2
Unrecognized pension net loss	0.2	0.2
Repurchases of common stock	(0.0)	0.1
Balance	(126.1)	(79.2)
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(90.9)	(90.0)
Net loss	0.0	0.0
Issuance of common stock	0.0	0.0
Employee stock plans	0.0	0.0
Other comprehensive (loss) income
Currency translation adjustment	0.0	0.0
Unrealized loss on cash flow hedges	0.0	0.0
Unrecognized pension net loss	0.0	0.0
Repurchases of common stock	(1.2)	(0.8)
Balance	(92.1)	(90.8)
Noncontrolling Interests [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	11.4	10.8
Net loss	(1.1)	0.9
Issuance of common stock	0.0	0.0
Employee stock plans	0.0	0.0
Other comprehensive (loss) income
Currency translation adjustment	(0.2)	0.3
Unrealized loss on cash flow hedges	0.0	0.0
Unrecognized pension net loss	0.0	0.0
Repurchases of common stock	(0.0)	(0.0)
Balance	$ 10.1	$ 12.0

XML

Property, Plant and Equipment - Property, Plant and Equipment (Detail) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 815.2	$ 817.9
Less accumulated depreciation		459.8	459.1
Net	[1]	355.4	358.8
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		14.4	15.0
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		69.3	70.5
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 731.5	$ 732.4

[1] Net Property, plant, and equipment excludes $54.8 million and $56.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

XML

Derivative Financial Instruments - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Maximum period hedged in cash flow hedge	36 months
Unrealized losses, reclassification period	12 months
Unrealized losses, net of tax benefit, expected to be reclassified from other comprehensive income into earnings	$ 11.7

XML

Derivative Financial Instruments - Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts (Detail) - Forward Contracts [Member] - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Not designated net fair value - net liability	$ 1.3	$ (0.2)
Other Current Assets [Member]
Derivative [Line Items]
Not designated gross derivative assets	1.6	0.3
Accrued Liabilities [Member]
Derivative [Line Items]
Not designated gross derivative liability	$ (0.3)	$ (0.5)

XML

Debt - Schedule of Long-Term Debt Instruments (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt	$ 963.4	$ 911.9
Less short-term debt and current maturities of long-term debt	10.2	10.2
Less unamortized debt issuance costs	10.2	10.7
Long-term debt	$ 943.0	891.0
Term Loan [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	4.47%
Debt, Maturity	2024
Debt	$ 80.0	82.5
Senior Secured Credit Facilities [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	4.47%
Debt, Maturity	2024
Debt	$ 383.1	329.0
Committed Loan Facility Agreements [Member] | Other Loans [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	6.04%
Debt, Maturity	2021
Debt	$ 0.3	0.4
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate	6.00%
Debt, Maturity	2025
Debt	$ 500.0	$ 500.0

XML

Leases - Summary of Amount and Timing of Cash Flows From Operating Leases (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
2020	$ 22.4
2021	25.4
2022	21.7
2023	15.9
2024	13.8
Thereafter	43.7
Total lease payments	142.9
Less: Interest	(35.0)
Present value of lease liabilities	$ 107.9	$ 113.5

XML

Plant Closures and Divestitures - Summary of Restructuring Activities and Related Reserves (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	$ 4.0	$ 8.1
Accrual		6.4
Cost charged against assets		(3.0)
Reversal of accrued charges	(0.2)	(0.4)
Cash paid		(7.0)
Currency translation		(0.1)
Reserve, Ending Balance	3.8	4.0
Severance and Employee Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	0.9	1.7
Accrual		0.0
Cost charged against assets		(0.0)
Reversal of accrued charges	(0.2)	(0.3)
Cash paid		(0.5)
Currency translation		0.0
Reserve, Ending Balance	0.7	0.9
Asset Retirement [Member]
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	0.7	3.6
Accrual		3.4
Cost charged against assets		(0.0)
Reversal of accrued charges	(0.0)	(0.1)
Cash paid		(6.2)
Currency translation		0.0
Reserve, Ending Balance	0.7	0.7
Other [Member]
Restructuring Cost and Reserve [Line Items]
Reserve, Beginning Balance	2.4	2.8
Accrual		3.0
Cost charged against assets		(3.0)
Reversal of accrued charges	(0.0)	(0.0)
Cash paid		(0.3)
Currency translation		(0.1)
Reserve, Ending Balance	$ 2.4	$ 2.4

XML

Discontinued Operations - Schedule of Carrying Amount of Assets and Liabilities by Major Class Classified as Held for Sale (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 0.4	$ 0.7
Accounts receivable	1.4	2.2
Income tax receivable	0.8	0.8
Inventories, net	5.5	10.6
Property, plant and equipment, net	54.8	0.0
Operating lease right-of-use assets	1.1	0.0
Other current assets	3.5	2.8
Total current assets held for sale	67.5	17.1
Property, plant and equipment, net	0.0	56.6
Operating lease right-of-use assets	0.0	1.2
Other assets	0.0	1.5
Total non-current assets held for sale	0.0	59.3
Total assets held for sale	67.5	76.4
Liabilities
Accounts payable	4.3	7.1
Accrued liabilities	5.8	4.7
Current operating lease liabilities	1.0	0.1
Deferred tax liabilities	0.6	0.0
Other current liabilities	22.9	0.0
Total current liabilities held for sale	34.6	11.9
Deferred tax liabilities	0.0	0.6
Operating lease liabilities	0.0	1.1
Other long-term liabilities	0.0	23.4
Total non-current liabilities held for sale	0.0	25.1
Total liabilities held for sale	$ 34.6	$ 37.0

XML

Income Taxes - Summary of Income Taxes Reconciled with Federal Statutory Rate (Detail)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Federal income tax rate	21.00%	21.00%
Foreign earnings taxed at different rates	4.30%	1.30%
Nondeductible expenses	2.30%	1.40%
GILTI inclusion, net of foreign tax credits	2.30%	(0.90%)
State income taxes, net of federal tax benefit	1.00%	0.70%
Change in tax contingency reserves	0.20%	0.20%
Interest expense deduction limitation	0.00%	8.10%
Other	(0.40%)	(0.40%)
Estimated annual effective income tax rate	30.70%	31.40%

XML

Plant Closures and Divestitures

3 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Plant Closures and Divestitures

3. Plant Closures and Divestitures

Over the past six years, we have been restructuring our Carbon Materials and Chemicals (“CMC”) segment in order to concentrate our facilities in regions where we believe we hold key competitive advantages to better serve our global customers. These closure activities include:

• In February 2020, we entered into a definitive agreement to sell Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) to Fangda Carbon New Material Co., Ltd and C-Chem Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. Refer to “Note 4 – Discontinued Operations” for more details.

• The cessation of naphthalene refining activities at our Follansbee, West Virginia coal tar distillation facility in the fourth quarter of 2018 subsequent to the commissioning of a new naphthalene refining plant in Stickney, Illinois. In August 2019, we ceased remaining production activities at the plant.

• In September 2018, we sold our UK-based specialty chemicals business

• In November 2016, we sold our 30-percent interest in Tangshan Kailuan Koppers Carbon Chemical Company Limited (“TKK”) located in the Hebei Province in China.

• In July 2016, we discontinued coal tar distillation activities at our CMC plant located in Clairton, Pennsylvania. In October 2018, we sold the facility and as part of the transaction, we transferred cash to the buyer and the buyer assumed decommissioning, demolition and site restoration responsibilities.

• In March 2016, we discontinued production at our 60-percent owned CMC plant located in Tangshan, China.

• In February 2016, we ceased coal tar distillation and specialty pitch operations at both of our United Kingdom CMC facilities. In July 2016, we sold substantially all of our CMC tar distillation properties and assets in the United Kingdom.

• In April 2014, we ceased coal tar distillation activities at our CMC facility located in Uithoorn, the Netherlands.

Other closure and divestiture activity relates to our Railroad Utility Products and Services (“RUPS”) segment. These activities include:

• In August 2019, we sold our utility pole treatment plant located in Blackstone, Virginia.

• In August 2015, we closed a crosstie treating plant located in Green Spring, West Virginia.

• In July 2015, we sold the assets of our 50 percent interest in KSA Limited Partnership, a concrete crosstie manufacturer.

In addition, in 2011, we ceased carbon black production at our CMC facility located in Kurnell, Australia. Costs associated with this closure are included in (loss) income from discontinued operations on the consolidated statement of operations and comprehensive (loss) income.

Details of the restructuring activities and related reserves are as follows:

	Severance and employee benefits			Asset Retirement			Other			Total
(Dollars in millions)
Reserve at December 31, 2018	$	1.7		$	3.6		$	2.8		$	8.1
Accrual		0.0			3.4			3.0			6.4
Cost charged against assets		0.0			0.0			(3.0	)		(3.0	)
Reversal of accrued charges		(0.3	)		(0.1	)		0.0			(0.4	)
Cash paid		(0.5	)		(6.2	)		(0.3	)		(7.0	)
Currency translation		0.0			0.0			(0.1	)		(0.1	)
Reserve at December 31, 2019	$	0.9		$	0.7		$	2.4		$	4.0
Reversal of accrued charges		(0.2	)		0.0			0.0			(0.2	)
Reserve at March 31, 2020	$	0.7		$	0.7		$	2.4		$	3.8

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	KOP
Entity Registrant Name	KOPPERS HOLDINGS INC.
Entity Central Index Key	0001315257
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		20,981,686
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	1-32737
Entity Tax Identification Number	20-1878963
Entity Address, Address Line One	436 Seventh Avenue
Entity Address, City or Town	Pittsburgh
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15219
City Area Code	412
Local Phone Number	227-2001
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	PA

XML

Segment Information - Schedule of Segment Revenues for Significant Product Lines (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ 401.9	$ 376.9
Railroad and Utility Products and Services [Member]
Segment Reporting Information [Line Items]
Net sales	190.0	166.1
Railroad and Utility Products and Services [Member] | Railroad Treated Products [Member]
Segment Reporting Information [Line Items]
Net sales	112.0	88.6
Railroad and Utility Products and Services [Member] | Utility Poles [Member]
Segment Reporting Information [Line Items]
Net sales	61.9	54.5
Railroad and Utility Products and Services [Member] | Rail Joints [Member]
Segment Reporting Information [Line Items]
Net sales	6.4	8.3
Railroad and Utility Products and Services [Member] | Railroad Infrastructure Services [Member]
Segment Reporting Information [Line Items]
Net sales	6.0	8.8
Railroad and Utility Products and Services [Member] | Other Products [Member]
Segment Reporting Information [Line Items]
Net sales	3.7	5.9
Performance Chemicals [Member]
Segment Reporting Information [Line Items]
Net sales	111.4	99.0
Performance Chemicals [Member] | Other Products [Member]
Segment Reporting Information [Line Items]
Net sales	3.8	2.6
Performance Chemicals [Member] | Wood Preservative Products [Member]
Segment Reporting Information [Line Items]
Net sales	107.6	96.4
Carbon Materials and Chemicals [Member]
Segment Reporting Information [Line Items]
Net sales	100.5	111.8
Carbon Materials and Chemicals [Member] | Other Products [Member]
Segment Reporting Information [Line Items]
Net sales	6.6	5.8
Carbon Materials and Chemicals [Member] | Pitch and Related Products [Member]
Segment Reporting Information [Line Items]
Net sales	50.2	62.8
Carbon Materials and Chemicals [Member] | Phthalic Anhydride and Other Chemicals [Member]
Segment Reporting Information [Line Items]
Net sales	23.5	21.0
Carbon Materials and Chemicals [Member] | Creosote and Distillates [Member]
Segment Reporting Information [Line Items]
Net sales	15.2	15.9
Carbon Materials and Chemicals [Member] | Naphthalene [Member]
Segment Reporting Information [Line Items]
Net sales	$ 5.0	$ 6.4

XML

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Accounts receivable, allowance	$ 2.4	$ 2.6
Senior Convertible Preferred Stock, par value	$ 0.01	$ 0.01
Senior Convertible Preferred Stock, shares authorized	10,000,000	10,000,000
Senior Convertible Preferred Stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	80,000,000	80,000,000
Common Stock, shares issued	23,556,317	23,321,087
Treasury stock, shares	2,574,631	2,515,925

XML

Stock-based Compensation - Schedule of Stock-Based Compensation Expense Recognized (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock-based compensation expense recognized:
Less related income tax benefit	$ 0.8	$ 0.9
Decrease in net income attributable to Koppers	1.7	2.0
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense recognized:
Stock-based compensation expense	$ 2.5	$ 2.9

XML

Plant Closures and Divestitures (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Summary of Restructuring Activities and Related Reserves

Details of the restructuring activities and related reserves are as follows:

	Severance and employee benefits			Asset Retirement			Other			Total
(Dollars in millions)
Reserve at December 31, 2018	$	1.7		$	3.6		$	2.8		$	8.1
Accrual		0.0			3.4			3.0			6.4
Cost charged against assets		0.0			0.0			(3.0	)		(3.0	)
Reversal of accrued charges		(0.3	)		(0.1	)		0.0			(0.4	)
Cash paid		(0.5	)		(6.2	)		(0.3	)		(7.0	)
Currency translation		0.0			0.0			(0.1	)		(0.1	)
Reserve at December 31, 2019	$	0.9		$	0.7		$	2.4		$	4.0
Reversal of accrued charges		(0.2	)		0.0			0.0			(0.2	)
Reserve at March 31, 2020	$	0.7		$	0.7		$	2.4		$	3.8

XML

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

16. Leases

We adopted the provisions of ASU 2016-02 and ASU 2018-10 on January 1, 2019 and recognized lease obligations and associated right-of-use assets for existing non-cancelable leases. We have non-cancelable operating leases primarily associated with railcars, office and manufacturing facilities, storage tanks, ships, production equipment and vehicles. Many of our leases include both lease (e.g., fixed rent) and non-lease components (e.g., maintenance and services). For certain asset classes such as railcars, storage tanks and ships, we have separated the lease and non-lease components based on the estimated stand-alone price for each component. For the remaining asset classes, we have elected the practical expedient to account for these components as a single lease component. Upon adoption, we elected other practical expedients as well, including retaining our current classification of existing leases upon adoption and excluding leases expiring within twelve months.

Many of our leases include one or more options to renew. We evaluate renewal options at the lease commencement date and regularly thereafter to determine if we are reasonably certain to exercise the option, in which case we include the renewal period in our lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available to determine the present value of the lease payments.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease expense is recognized in the period in which the obligation for those payments is incurred. Operating lease costs were $7.8 million and $8.0 million and variable lease costs were $1.0 million and $0.9 million during the three months ended March 31, 2020 and 2019, respectively.

The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2020:  

(Dollars in millions)
2020	$	22.4
2021		25.4
2022		21.7
2023		15.9
2024		13.8
Thereafter		43.7
Total lease payments	$	142.9
Less: Interest		(35.0	)
Present value of lease liabilities	$	107.9

Supplemental consolidated balance sheet information related to leases is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	106.1		$	112.3
Current operating lease liabilities	$	21.5		$	22.0
Operating lease liabilities		86.4			91.5
Total operating lease liabilities	$	107.9		$	113.5
Weighted average remaining lease term, in years		6.8		$	7.1
Weighted average discount rate		7.7	%		7.7	%

XML

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Summary of Amount and Timing of Cash Flows From Operating Leases

The following table presents information about the amount and timing of cash flows arising from our operating leases as of March 31, 2020:  

(Dollars in millions)
2020	$	22.4
2021		25.4
2022		21.7
2023		15.9
2024		13.8
Thereafter		43.7
Total lease payments	$	142.9
Less: Interest		(35.0	)
Present value of lease liabilities	$	107.9

Schedule of Supplemental Consolidated Balance Sheet Information Related to Leases

Supplemental consolidated balance sheet information related to leases is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	106.1		$	112.3
Current operating lease liabilities	$	21.5		$	22.0
Operating lease liabilities		86.4			91.5
Total operating lease liabilities	$	107.9		$	113.5
Weighted average remaining lease term, in years		6.8		$	7.1
Weighted average discount rate		7.7	%		7.7	%

XML

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Options And Performance Award Fair Value Assumptions

We calculated the fair value of stock options on the date of grant using the Black-Scholes-Merton model and the assumptions listed below:

	March 2020 Grant			March 2019 Grant			March 2018 Grant			March 2017 Grant
Grant date price per share of stock   option award	$	19.63		$	26.63		$	41.60		$	44.10
Expected dividend yield per share		0.00	%		0.00	%		0.00	%		0.00	%
Expected life in years		6.40			6.14			5.73			5.77
Expected volatility		42.85	%		39.44	%		37.05	%		39.70	%
Risk-free interest rate		0.87	%		2.53	%		2.67	%		2.13	%
Grant date fair value per share of option awards	$	8.42		$	11.29		$	16.38		$	17.90

Summary of Performance Stock Units

The following table shows a summary of the performance stock units as of March 31, 2020:

Performance Period	Minimum Shares		Target Shares		Maximum Shares
2018 – 2020		0		119,630		239,260
2019 – 2021		0		195,047		285,950
2020 – 2022		0		231,128		462,256

Summary of Status and Activity of Non-Vested Stock Awards

The following table shows a summary of the status and activity of non-vested stock units for the three months ended March 31, 2020:

	Restricted Stock Units			Performance Stock Units			Total Stock Units			Weighted Average Grant Date Fair Value per Unit
Non-vested at December 31, 2019		343,012			445,186			788,198		$	40.18
Granted		295,873			232,481			528,354		$	16.09
Vested		(102,369	)		(110,168	)		(212,537	)	$	47.19
Forfeited		(23,129	)		(21,694	)		(44,823	)	$	34.21
Non-vested at March 31, 2020		513,387			545,805			1,059,192		$	27.01

Summary of Status and Activity of Stock Options

The following table shows a summary of the status and activity of stock options for the three months ended March 31, 2020:

	Options			Weighted Average Exercise Price per Option		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2019		966,849		$	28.45
Granted		187,701		$	19.63
Expired		(5,129	)	$	31.28
Forfeited		(12,280	)	$	31.03
Outstanding at March 31, 2020		1,137,141		$	26.96		6.42	$	0.0
Exercisable at March 31, 2020		771,153		$	27.29		5.12	$	0.0

Schedule of Stock-based Compensation Expense Recognized

Total stock-based compensation expense recognized under our LTIP and employee stock purchase plan for the three months ended March 31, 2020 and 2019 is as follows:

	Three Months Ended March 31,
	2020		2019
(Dollars in millions)
Stock-based compensation expense recognized:
Selling, general and administrative expenses	$	2.5	$	2.9
Less related income tax benefit		0.8		0.9
Decrease in net income attributable to Koppers	$	1.7	$	2.0

Performance Stock Units [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Options And Performance Award Fair Value Assumptions

We calculated the fair value of the performance stock unit awards on the date of grant using the assumptions listed below:

	March 2020 Grant			March 2019 Grant			May 2018 Grant			March 2018 Grant
Grant date price per share of   performance award	$	19.63		$	26.63		$	39.10		$	41.60
Expected dividend yield per   share		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		45.60	%		39.00	%		39.40	%		39.40	%
Risk-free interest rate		0.72	%		2.50	%		2.35	%		2.35	%
Look-back period in years		2.83			2.82			2.84			2.84
Grant date fair value per share	$	11.56		$	40.30		$	44.29		$	47.12

XML

Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2020

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Land	$	14.4	$	15.0
Buildings		69.3		70.5
Machinery and equipment		731.5		732.4
	$	815.2	$	817.9
Less accumulated depreciation		459.8		459.1
Net(a)	$	355.4	$	358.8

(a) Net Property, plant, and equipment excludes $54.8 million and $56.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

XML

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

Effective Tax Rate

The income tax provision for interim periods is comprised of an estimated annual effective income tax rate applied to current year ordinary income and tax associated with discrete items. These discrete items generally relate to excess stock compensation deductions, changes in tax laws, adjustments to unrecognized tax benefits and changes of estimated tax to the actual liability determined upon filing tax returns. To determine the annual effective tax rate, management is required to make estimates of annual pretax income in each domestic and foreign jurisdiction in which we conduct business. Entities that have historical pre-tax losses and current year estimated pre-tax losses that are not projected to generate a future benefit are excluded from the estimated annual effective income tax rate.

The estimated annual effective income tax rate, excluding discrete items discussed above, was 30.7 percent and 31.4 percent for the three months ended March 31, 2020 and 2019, respectively. The estimated annual effective income tax rate differs from the U.S. federal statutory tax rate due to:

	March 31,			March 31,
	2020			2019
Federal income tax rate		21.0	%		21.0	%
Foreign earnings taxed at different rates		4.3			1.3
Nondeductible expenses		2.3			1.4
GILTI inclusion, net of foreign tax credits		2.3			(0.9	)
State income taxes, net of federal tax benefit		1.0			0.7
Change in tax contingency reserves		0.2			0.2
Interest expense deduction limitation		0.0			8.1
Other		(0.4	)		(0.4	)
Estimated annual effective income tax rate		30.7	%		31.4	%

In reaction to the effects of the COVID-19 pandemic, on March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. This legislation provides stimulus and relief for affected entities and individuals and broadly provides tax payment relief and significant business incentives, and makes certain technical corrections to the 2017 Tax Cuts and Jobs Act. Among its many provisions, the CARES Act modifies the limitation on the interest expense deduction for tax years beginning in 2019 and 2020. This modification increases the allowable business interest expense deduction from 30% of adjusted taxable income to 50% of adjusted taxable income.

This modification impacts both our 2019 and 2020 income tax provisions and we have included the net impact in the three months ended March 31, 2020 income tax provision. We have recorded a benefit of $1.0 million for a recalculation of our 2019 tax provision and benefit of $1.9 million for the release of a valuation allowance that was recorded for interest expense deduction limitations that were previously not expected to be realized. Other provisions of the CARES Act do not have a material impact to our income tax provision.

Income taxes as a percentage of pretax income were lower than the estimated annual effective income tax rate due to discrete items for the three months ended March 31, 2020. Discrete items included in income taxes for the three months ended March 31, 2020 were a net benefit of $1.8 million. Discrete items included the benefits due to the enactment of the CARES Act, which was offset by a tax deduction reduction for vested stock awards.

Income taxes as a percentage of pretax income were (14.1) percent for the three months ended March 31, 2019. This is lower than the estimated annual effective income tax rate due to discrete items. Discrete items included in income taxes for the three months ended March 31, 2019 were a net benefit of $3.8 million. Discrete items were primarily related to the reversal of various unrecognized tax benefits due to audit closures.

During the year, management regularly updates estimates of pre-tax income and income tax expense based on changes in pre-tax income projections by taxable jurisdiction, repatriation of foreign earnings, unrecognized tax benefits and other tax matters. To the extent that actual results vary from these estimates, the actual annual effective income tax rate at the end of the year could be materially different from the estimated annual effective income tax rate for the three months ended March 31, 2020.

Unrecognized Tax Benefits

We and our subsidiaries file income tax returns in the U.S. federal jurisdiction, individual U.S. state jurisdictions and non-U.S. jurisdictions. With few exceptions, we are no longer subject to U.S. federal, U.S. state, or non-U.S. income tax examinations by tax authorities for years prior to 2016.

Unrecognized tax benefits totaled $2.1 million as of March 31, 2020 and December 31, 2019. As of March 31, 2020 and December 31, 2019, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate, was approximately $2.1 million and $2.0 million as of March 31, 2020 and December 31, 2019, respectively. We recognize interest expense and any related penalties from unrecognized tax benefits in income tax expense. As of March 31, 2020 and December 31, 2019, we had accrued approximately $0.9 million and $0.8 million for interest and penalties, respectively.

We do not anticipate material changes to the amount of unrecognized tax benefits within the next twelve months.

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Comprehensive Income and Equity

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Comprehensive Income and Equity

6. Comprehensive (Loss) Income and Equity

Total comprehensive (loss) income for the three months ended March 31, 2020 and 2019 is summarized in the table below:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net (loss) income	$	(2.5	)	$	12.5
Changes in other comprehensive (loss) income:
Currency translation adjustment		(23.3	)		1.8
Unrealized (loss) gain on cash flow hedges, net    of tax benefit (expense) of $11.3 and $(2.8)		(25.4	)		6.2
Unrecognized pension net loss, net of tax    (expense) of $(0.1)		0.2			0.2
Total comprehensive (loss) income		(51.0	)		20.7
Comprehensive (loss) income attributable to    noncontrolling interests		(1.3	)		1.1
Comprehensive (loss) income attributable to Koppers	$	(49.7	)	$	19.6

Amounts reclassified from accumulated other comprehensive loss to net (loss) income consist of amounts shown for changes in or amortization of unrecognized pension net loss. This component of accumulated other comprehensive loss is included in the computation of net periodic pension cost as disclosed in “Note 13 – Pensions and Post-Retirement Benefit Plans.” Other amounts reclassified from accumulated other comprehensive loss include amounts related to derivative financial instruments, net of tax, of $(1.1) million for the three ended March 31, 2020, and $(0.6) million for the three months ended March 31, 2019.

The following tables present the change in equity for the three months ended March 31, 2020 and 2019, respectively:

(Dollars in millions)	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests			Total Equity
Balance at December 31,   2019	$	0.2	$	221.9	$	93.8		$	(77.7	)	$	(90.9	)	$	11.4		$	158.7
Net loss		0.0		0.0		(1.4	)		0.0			0.0			(1.1	)		(2.5	)
Issuance of common stock		0.0		0.2		0.0			0.0			0.0			0.0			0.2
Employee stock plans		0.0		2.5		0.0			0.0			0.0			0.0			2.5
Other comprehensive (loss) income
Currency translation       adjustment		0.0		0.0		0.0			(23.2	)		0.0			(0.2	)		(23.3	)
Unrealized loss on       cash flow hedges		0.0		0.0		0.0			(25.4	)		0.0			0.0			(25.4	)
Unrecognized pension       net loss		0.0		0.0		0.0			0.2			0.0			0.0			0.2
Repurchases of common   stock		0.0		0.0		0.0			0.0			(1.2	)		0.0			(1.2	)
Balance at March 31, 2020	$	0.2	$	224.7	$	92.4		$	(126.1	)	$	(92.1	)	$	10.1		$	109.2

(Dollars in millions)	Common Stock		Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests		Total Equity
Balance at December 31,   2018	$	0.2	$	206.0		$	27.2	$	(87.2	)	$	(90.0	)	$	10.8	$	67.0
Net income		0.0		0.0			11.6		0.0			0.0			0.9		12.5
Issuance of common stock		0.0		0.3			0.0		0.0			0.0			0.0		0.3
Employee stock plans		0.0		2.9			0.0		0.0			0.0			0.0		2.9
Other comprehensive income
Currency translation       adjustment		0.0		0.0			0.0		1.5			0.0			0.3		1.8
Unrealized gain on       cash flow hedges		0.0		0.0			0.0		6.2			0.0			0.0		6.2
Unrecognized pension       net loss		0.0		0.0			0.0		0.2			0.0			0.0		0.2
Repurchases of common   stock		0.0		(0.2	)		0.1		0.1			(0.8	)		0.0		(0.8	)
Balance at March 31, 2019	$	0.2	$	209.0		$	38.9	$	(79.2	)	$	(90.8	)	$	12.0	$	90.1

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Pensions and Post-Retirement Benefit Plans - Additional Information (Detail)	Mar. 31, 2020 Plan
Defined Benefit Plan Disclosure [Line Items]
Number of domestic non-qualified defined benefit plans	3
Salaried and Hourly Employees [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of domestic non-qualified defined benefit plans	2

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Derivative Financial Instruments - Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet (Detail) - Copper Swap Contracts [Member] - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Net Fair Value - (Liability) Asset	$ (35.0)	$ 6.2
Accumulated other comprehensive (loss) gain, net of tax	(22.2)	3.3
Other Current Assets [Member]
Derivative [Line Items]
Net Fair Value - (Liability) Asset	0.0	2.1
Other Assets [Member]
Derivative [Line Items]
Net Fair Value - (Liability) Asset	0.0	4.1
Accrued Liabilities [Member]
Derivative [Line Items]
Net Fair Value - (Liability) Asset	(19.3)	0.0
Other Long-term Liabilities [Member]
Derivative [Line Items]
Net Fair Value - (Liability) Asset	$ (15.7)	$ 0.0

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Commitments and Contingent Liabilities - Additional Information (Detail) $ in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020 USD ($) State Plaintiff Case site Party Plant	Dec. 31, 2019 USD ($) Plaintiff Case	Oct. 10, 2019 USD ($)	Oct. 10, 2019 AUD ($)	Dec. 31, 2018 USD ($)
Loss Contingencies [Line Items]
Number of states with new claims filed | State	2
Number of plaintiffs | Plaintiff	64	64
Environmental remediation and regulation liability	$ 9.3	$ 9.5			$ 10.1
Accrued liability for environmental matters, current	2.7	2.8
Environment Protection Authority [Member]
Loss Contingencies [Line Items]
Reserve for legal proceedings	2.8
Portland Harbor and Newark Bay CERCLA sites [Member]
Loss Contingencies [Line Items]
Costs of participating in PRP group	$ 2.2
Beazer East [Member]
Loss Contingencies [Line Items]
Sites listed on National Priorities List | site	1
Compensatory Damages [Member]
Loss Contingencies [Line Items]
Number of cases | Case	34
Punitive Damages [Member]
Loss Contingencies [Line Items]
Number of cases | Case	29
Indemnification Agreement [Member] | Beazer East [Member]
Loss Contingencies [Line Items]
Environmental remediation costs paid by others, per year		$ 10.5
Coal Tar Pitch Cases [Member]
Loss Contingencies [Line Items]
Number of cases | Case	34	34
Pennsylvania [Member]
Loss Contingencies [Line Items]
Number of cases | Case	33
Pennsylvania [Member] | Coal Tar Pitch Cases [Member]
Loss Contingencies [Line Items]
Number of cases | Case	33
Tennessee [Member] | Coal Tar Pitch Cases [Member]
Loss Contingencies [Line Items]
Number of cases | Case	1
Compensatory damages	$ 15.0
Oregon [Member]
Loss Contingencies [Line Items]
Number of potential responsible parties | Party	80
Oregon [Member] | Environment Protection Authority [Member]
Loss Contingencies [Line Items]
Net present value of selected remedy estimation	$ 1,100.0
Undiscounted cost of selected remedy estimation	1,700.0
United States [Member]
Loss Contingencies [Line Items]
Environmental remediation and regulation liability	$ 4.3
United States [Member] | Performance Chemicals [Member]
Loss Contingencies [Line Items]
Number of plant sites | Plant	2
United States [Member] | Utility and Industrial Products [Member]
Loss Contingencies [Line Items]
Number of plant sites | Plant	1
New South Wales [Member] | Environment Protection Authority [Member]
Loss Contingencies [Line Items]
Reserve for legal proceedings			$ 0.7	$ 1.0
Australia [Member] | Performance Chemicals [Member]
Loss Contingencies [Line Items]
Environmental remediation and regulation liability	$ 1.2

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Asset Retirement Obligations - Schedule of Changes in Carrying Values of Asset Retirement Obligations (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation at beginning of year	$ 20.7	$ 27.0
Accretion expense	0.3	1.5
Revision in estimated cash flows	0.2	4.7
Cash expenditures	(1.7)	(12.5)
Currency translation	(0.1)	0.0
Balance at end of period	$ 19.4	$ 20.7

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Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	1,059,192		788,198
Future compensation expense related to non-vested stock-based compensation arrangements		$ 23.0
Future compensation expense, weighted-average expected period of recognition in months		32 months
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares outstanding	513,387		343,012
Restricted Stock Units (RSUs) [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period	1 year
Restricted Stock Units (RSUs) [Member] | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period	4 years
Restricted Stock Units (RSUs) [Member] | Employee [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period	2 years
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting performance stock units if minimum performance criteria are not achieved	0
Stock options, term in years	3 years
Number of shares outstanding	545,805		445,186
Performance Stock Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target award earned by participants	200.00%
Performance Stock Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of target award earned by participants	0.00%
Performance Stock Units [Member] | Target Shares [Member] | 2017 - 2019 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	100.00%
Number of shares outstanding	110,262
Employee Stock Option [Member] | Grants in March 2015 and Thereafter [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, term in years	10 years
Employee Stock Option [Member] | Executive Officer [Member] | Grants in March 2015 and Thereafter [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based awards, vesting period	4 years

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Comprehensive Income and Equity - Schedule of Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity [Abstract]
Tax benefit (expense), unrealized (loss) gain on cash flow hedges	$ 11.3	$ (2.8)
Tax expense, unrecognized pension net loss	$ (0.1)

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Stock-based Compensation - Stock Options Fair Value Assumptions (Detail)	3 Months Ended
	Mar. 31, 2020 $ / shares
March 2020 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of stock option award	$ 19.63
Expected dividend yield per share	0.00%
Expected life in years	6 years 4 months 24 days
Expected volatility	42.85%
Risk-free interest rate	0.87%
Grant date fair value per share of option awards	$ 8.42
March 2019 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of stock option award	$ 26.63
Expected dividend yield per share	0.00%
Expected life in years	6 years 1 month 20 days
Expected volatility	39.44%
Risk-free interest rate	2.53%
Grant date fair value per share of option awards	$ 11.29
March 2018 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of stock option award	$ 41.60
Expected dividend yield per share	0.00%
Expected life in years	5 years 8 months 23 days
Expected volatility	37.05%
Risk-free interest rate	2.67%
Grant date fair value per share of option awards	$ 16.38
March 2017 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of stock option award	$ 44.10
Expected dividend yield per share	0.00%
Expected life in years	5 years 9 months 7 days
Expected volatility	39.70%
Risk-free interest rate	2.13%
Grant date fair value per share of option awards	$ 17.90

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Segment Information - Summary of Tangible and Intangible Assets by Segments ((Parenthetical)) (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Segment Reporting Asset Reconciling Item [Line Items]
Fair value	$ 67.5	$ 76.4
Discontinued Operations, Held-for-sale [Member] | Carbon Materials and Chemicals [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Fair value	$ 67.5	$ 76.4

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Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
(Loss) income from discontinued operations, tax benefit (expense)	$ 0.8	$ (1.1)

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Segment Information - Summary of Results of Segment Operations (Detail) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Revenues from external customers:
Net sales		$ 401.9	$ 376.9
Depreciation and amortization expense		13.5	13.6
Operating profit (loss)		13.6	24.3
Railroad and Utility Products and Services [Member]
Revenues from external customers:
Net sales		190.0	166.1
Performance Chemicals [Member]
Revenues from external customers:
Net sales		111.4	99.0
Carbon Materials and Chemicals [Member]
Revenues from external customers:
Net sales		100.5	111.8
Operating Segments [Member] | Railroad and Utility Products and Services [Member]
Revenues from external customers:
Net sales		190.0	166.1
Depreciation and amortization expense		4.9	4.8
Operating profit (loss)		9.2	8.7
Operating Segments [Member] | Performance Chemicals [Member]
Revenues from external customers:
Net sales		111.4	99.0
Depreciation and amortization expense		4.5	4.9
Operating profit (loss)		4.1	12.8
Operating Segments [Member] | Carbon Materials and Chemicals [Member]
Revenues from external customers:
Net sales	[1]	100.5	111.8
Depreciation and amortization expense	[2]	4.1	3.9
Operating profit (loss)	[3]	0.7	3.3
Intersegment [Member]
Revenues from external customers:
Net sales		21.2	21.3
Intersegment [Member] | Railroad and Utility Products and Services [Member]
Revenues from external customers:
Net sales		0.0	0.3
Intersegment [Member] | Performance Chemicals [Member]
Revenues from external customers:
Net sales		3.2	3.1
Intersegment [Member] | Carbon Materials and Chemicals [Member]
Revenues from external customers:
Net sales		18.0	17.9
Corporate, Non-Segment [Member]
Revenues from external customers:
Operating profit (loss)		$ (0.4)	$ (0.5)

[1]   (a) Revenue excludes KJCC discontinued operations of $9.9 million and $58.0 million for the three months ended March 31, 2020 and 2019, respectively.

[2] Depreciation and amortization expense excludes KJCC discontinued operations of $1.0 million for the three months ended March 31, 2020 and 2019.

[3] Operating profit (loss) excludes KJCC discontinued operations of $(5.1) million and $4.1 million for the three months ended March 31, 2020 and 2019, respectively.

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Basis of Presentation

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of Koppers Holdings Inc.’s and its subsidiaries’ (“Koppers”, “Koppers Holdings”, the “Company”, “we” or “us”) financial position and interim results as of and for the periods presented have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Because our business is seasonal, results for interim periods are not necessarily indicative of those that may be expected for a full year. The Condensed Consolidated Balance Sheet as of December 31, 2019 has been summarized from the audited balance sheet contained in the Annual Report on Form 10-K as of and for the year ended December 31, 2019. Certain prior period amounts in the consolidated financial statements and notes to the consolidated financial statements have been reclassified to conform to the current period’s presentation as a result of reporting discontinued operations. See Note 4 – “Discontinued Operations.” 

The financial information included herein should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019.

COVID-19 Assessment

In March 2020, the World Health Organization categorized the current coronavirus disease (“COVID-19”) as a pandemic. COVID-19 continues to spread throughout the United States and other countries across the world, and the duration and severity of its effects are currently unknown. While we expect the effects of the pandemic to continue to negatively impact our results of operations, cash flows and financial position, the current level of uncertainty over the economic and operational impacts of COVID-19 means the related financial impact cannot be reasonably estimated at this time. Our condensed consolidated financial statements presented herein reflect certain estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented.

Such estimates and assumptions affect, among other things, our goodwill, long-lived asset and identifiable intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes; the allowance for doubtful accounts; and measurement of cash incentive plans. Due to COVID-19, we determined that a goodwill impairment evaluation triggering event occurred during the three months ended March 31, 2020. After performing an interim review of impairment as of March 31, 2020, our reporting units continue to have estimated fair values greater than their respective carrying values. Events and changes in circumstances arising after March 31, 2020, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods.

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Comprehensive Income and Equity - Schedule of Comprehensive Income (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity [Abstract]
Net (loss) income	$ (2.5)	$ 12.5
Changes in other comprehensive (loss) income:
Currency translation adjustment	(23.3)	1.8
Unrealized (loss) gain on cash flow hedges, net of tax benefit (expense) of $11.3 and $(2.8)	(25.4)	6.2
Unrecognized pension net loss, net of tax (expense) of $(0.1)	0.2	0.2
Total comprehensive (loss) income	(51.0)	20.7
Comprehensive (loss) income attributable to noncontrolling interests	(1.3)	1.1
Comprehensive (loss) income attributable to Koppers	$ (49.7)	$ 19.6

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Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Changes in Accrued Liability for Environmental Matters

The following table reflects changes in the accrued liability for environmental matters, of which $2.7 million and $2.8 million are classified as current liabilities at March 31, 2020 and December 31, 2019, respectively:

	Period ended
	March 31, 2020			December 31, 2019
(Dollars in millions)
Balance at beginning of year	$	9.5		$	10.1
Expense		0.0			0.5
Reversal of reserves		0.0			(0.8	)
Cash expenditures		0.0			(0.3	)
Currency translation		(0.2	)		0.0
Balance at end of period	$	9.3		$	9.5

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Discontinued Operations - Schedule of Net Sales and Operating Loss Profit from Discontinued Operations (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Discontinued Operations And Disposal Groups [Abstract]
Net sales	$ 9.9	$ 58.0
Operating (loss) profit	$ (5.1)	$ 4.1

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

18. Commitments and Contingent Liabilities

We are involved in litigation and various proceedings relating to environmental laws and regulations, product liability and other matters. Certain of these matters are discussed below. The ultimate resolution of these contingencies is subject to significant uncertainty and should we fail to prevail in any of these legal matters or should several of these legal matters be resolved against us in the same reporting period, these legal matters could, individually or in the aggregate, be material to the consolidated financial statements.

Legal Proceedings

Coal Tar Pitch Cases. Koppers Inc. is one of several defendants in lawsuits filed in two states in which the plaintiffs claim they suffered a variety of illnesses (including cancer) as a result of exposure to coal tar pitch sold by the defendants. There were 64 plaintiffs in 34 cases pending as of March 31, 2020 and as of December 31, 2019. As of March 31, 2020, there were 33 cases pending in the Court of Common Pleas of Allegheny County, Pennsylvania, and one case pending in the Circuit Court of Knox County, Tennessee.

The plaintiffs in all 34 pending cases seek to recover compensatory damages. Plaintiffs in 29 of those cases also seek to recover punitive damages. The plaintiffs in the 33 cases filed in Pennsylvania seek unspecified damages in excess of the court’s minimum jurisdictional limit. The plaintiff in the Tennessee state court case seeks damages of $15 million. The other defendants in these lawsuits vary from case to case and include companies such as Beazer East, Inc. (“Beazer East”), Honeywell International Inc., Graftech International Holdings, Dow Chemical Company, UCAR Carbon Company, Inc., and SGL Carbon Corporation. Discovery is proceeding in these cases. No trial dates have been set in any of these cases.

We have not provided a reserve for the coal tar pitch lawsuits because, at this time, we cannot reasonably determine the probability of a loss, and the amount of loss, if any, cannot be reasonably estimated. The timing of resolution of these cases cannot be reasonably determined. Although Koppers Inc. is vigorously defending these cases, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations.

Environmental and Other Litigation Matters

We are subject to federal, state, local and foreign laws and regulations and potential liabilities relating to the protection of the environment and human health and safety including, among other things, the cleanup of contaminated sites, the treatment, storage and disposal of wastes, the discharge of effluent into waterways, the emission of substances into the air and various health and safety matters. We expect to incur substantial costs for ongoing compliance with such laws and regulations. We may also face governmental or third-party claims, or otherwise incur costs, relating to cleanup of, or for injuries resulting from, contamination at sites associated with past and present operations. We accrue for environmental liabilities when a determination can be made that a liability is probable and reasonably estimable.

Environmental and Other Liabilities Retained or Assumed by Others. We have agreements with former owners of certain of our operating locations under which the former owners retained, assumed and/or agreed to indemnify us against certain environmental and other liabilities. The most significant of these agreements was entered into at Koppers Inc.’s formation on December 29, 1988 (the “Acquisition”). Under the related asset purchase agreement between Koppers Inc. and Beazer East, subject to certain limitations, Beazer East retained the responsibility for and agreed to indemnify Koppers Inc. against certain liabilities, damages, losses and costs, including, with certain limited exceptions, liabilities under and costs to comply with environmental laws to the extent attributable to acts or omissions occurring prior to the Acquisition and liabilities related to products sold by Beazer East prior to the Acquisition (the “Indemnity”).

Beazer Limited, the parent company of Beazer East, unconditionally guaranteed Beazer East’s performance of the Indemnity pursuant to a guarantee (the “Guarantee”).

The Indemnity provides different mechanisms, subject to certain limitations, by which Beazer East is obligated to indemnify Koppers Inc. with regard to certain environmental, product and other liabilities and imposes certain conditions on Koppers Inc. before receiving such indemnification, including, in some cases, certain limitations regarding the time period as to which claims for indemnification can be brought. In July 2004, Koppers Inc. and Beazer East agreed to amend the environmental indemnification provisions of the December 29, 1988 asset purchase agreement to extend the indemnification period for pre-closing environmental liabilities, subject to the following paragraph, and agreed to share toxic tort litigation defense arising from any sites acquired from Beazer East.

Qualified expenditures under the Indemnity are not subject to a monetary limit. Qualified expenditures under the Indemnity include (i) environmental cleanup liabilities required by third parties, such as investigation, remediation and closure costs, relating to pre-December 29, 1988 (“Pre-Closing”) acts or omissions of Beazer East or its predecessors; (ii) environmental claims by third parties for personal injuries, property damages and natural resources damages relating to Pre-Closing acts or omissions of Beazer East or its predecessors; (iii) punitive damages for the acts or omissions of Beazer East and its predecessors without regard to the date of the alleged conduct and (iv) product liability claims for products sold by Beazer East or its predecessors without regard to the date of the alleged conduct. The indemnification period ended July 14, 2019 (the “Claim Deadline”) and Beazer East may now tender certain third-party claims described in sections (i) and (ii) above to Koppers Inc. However, to the extent the third-party claims described in sections (i) and (ii) above were tendered to Beazer East by the Claim Deadline, Beazer East will continue to be required to pay the costs arising from such claims under the Indemnity. Furthermore, the Claim Deadline did not change the provisions of the Indemnity with respect to indemnification for non-environmental claims, such as product liability claims, which claims may continue to be tendered by Koppers Inc. to Beazer East.

The Indemnity provides for the resolution of issues between Koppers Inc. and Beazer East by an arbitrator on an expedited basis upon the request of either party. The arbitrator could be asked, among other things, to make a determination regarding the allocation of environmental responsibilities between Koppers Inc. and Beazer East. Arbitration decisions under the Indemnity are final and binding on the parties.

Contamination has been identified at most manufacturing and other sites of our subsidiaries. One site currently owned and operated by Koppers Inc. in the United States is listed on the National Priorities List promulgated under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”). Currently, at the properties acquired from Beazer East (which includes the National Priorities List site and all but one of the sites permitted under the Resource Conservation and Recovery Act (“RCRA”)), a significant portion of all investigative, cleanup and closure activities are being conducted and paid for by Beazer East pursuant to the terms of the Indemnity. In addition, other of Koppers Inc.’s sites are or have been operated under RCRA and various other environmental permits, and remedial and closure activities are being conducted at some of these sites.

To date, the parties that retained, assumed and/or agreed to indemnify us against the liabilities referred to above, including Beazer East, have performed their obligations in all material respects. We believe that, for the last three years ended December 31, 2019, amounts paid by Beazer East as a result of its environmental remediation obligations under the Indemnity have averaged, in total, approximately $10.5 million per year. Periodically, issues have arisen between Koppers Inc. and Beazer East and/or other indemnitors that have been resolved without arbitration. Koppers Inc. and Beazer East engage in discussions from time to time that involve, among other things, the allocation of environmental costs related to certain operating and closed facilities.

If for any reason (including disputed coverage or financial incapability) one or more of such parties fail to perform their obligations and we are held liable for or otherwise required to pay all or part of such liabilities without reimbursement, the imposition of such liabilities on us could have a material adverse effect on our business, financial condition, cash flows and results of operations. Furthermore, we could be required to record a contingent liability on our balance sheet with respect to such matters, which could result in a negative impact to our business, financial condition, cash flows and results of operations.

Domestic Environmental Matters. On June 4, 2018, Koppers Inc. received a letter from the U.S. Environmental Protection Agency ("EPA") concerning potential violations of the Clean Water Act observed during inspections and review of Spill Prevention, Control and Countermeasure Plans and Facility Response Plans at our facilities in Follansbee, WV; Green Spring, WV; and Clairton, PA. In addition, the EPA reviewed one facility’s compliance with an earlier consent order regarding above ground storage tank integrity testing. In December 2019, the EPA presented Koppers Inc. with a proposed penalty of $2.8 million regarding the alleged violations and we are currently in discussions with the EPA to resolve the matter. Accordingly we have accrued our estimated liability of the probable penalty as of March 31, 2020.

Koppers Inc. has been named as one of the potentially responsible parties (“PRPs”) at the Portland Harbor CERCLA site located on the Willamette River in Oregon. Koppers Inc. operated a coal tar pitch terminal near the site. Koppers Inc. has responded to an EPA information request and has executed a PRP agreement which outlines a private process to develop an allocation of past and future costs among more than 80 parties to the site. Koppers Inc. believes it is a de minimis contributor at the site.

The EPA issued its Record of Decision (“ROD”) in January 2017 for the Portland Harbor CERCLA site. The selected remedy includes a combination of sediment removal, capping, enhanced and monitored natural recovery and riverbank improvements. The ROD does not determine who is responsible for remediation costs. The net present value and undiscounted costs of the selected remedy as estimated in the ROD are approximately $1.1 billion and $1.7 billion, respectively. Responsibility for implementing and funding that work will be decided in the separate private allocation process which is ongoing.   

Additionally, Koppers Inc. is involved in two separate natural resource damages assessments at the Portland Harbor site. An assessment is intended to identify damages to natural resources caused by the releases of hazardous substances to the Willamette River and to serve as the foundation to estimate liabilities for settlements of natural resource damages claims or litigation to recover from those who do not settle with the trustee groups. One of the natural resource damage assessments was filed in January 2017 by the Yakama Nation in Oregon federal court. Yakama Nation seeks recovery for future response costs and the costs of assessing injury to natural resources and recovery for past costs of overseeing investigations conducted on the site. Following the most recent court rulings, the Yakama Nation case has been stayed pending completion of the private allocation process for the Portland Harbor CERCLA site.

In September 2009, Koppers Inc. received a general notice letter notifying it that it may be a PRP at the Newark Bay CERCLA site. In January 2010, Koppers Inc. submitted a response to the general notice letter asserting that Koppers Inc. is a de minimis party at this site.

We have accrued the estimated costs of participating in the PRP group at the Portland Harbor and Newark Bay CERCLA sites and estimated de minimis settlement amounts at the sites totaling $2.2 million at March 31, 2020. The actual cost could be materially higher as there has not been a determination of how those costs will be allocated among the PRPs at the sites. Accordingly, an unfavorable resolution of these matters may have a material adverse effect on our business, financial condition, cash flows and results of operations.

There are two plant sites related to the Performance Chemicals business and one plant site related to the Utility and Industrial Products business in the United States where we have recorded environmental remediation liabilities for soil and groundwater contamination which occurred prior to our acquisition of the businesses. As of March 31, 2020, our estimated environmental remediation liability for these acquired sites totals $4.3 million.  

Foreign Environmental Matters. On October 10, 2019, the New South Wales Environment Protection Authority (“NSW EPA”) filed a proceeding against one of our Australian subsidiaries, Koppers Carbon Materials & Chemicals Pty. Ltd. (“KCMC”), in relation to an incident which occurred at our Mayfield, Australia plant on October 20, 2018. The NSW EPA alleged that KCMC committed an offense under Australian law by failing to maintain its plant and equipment in a proper and efficient working condition. The NSW EPA alleged that KCMC did not properly maintain a valve which failed and released heated coal tar pitch into a bunded area on our site and released fumes into the atmosphere. The first hearing on the proceeding was held on November 22, 2019 in the Land and Environment Court of New South Wales and we entered a guilty plea with respect to the allegations. The maximum fine for the proceeding is $1.0 million AUD (approximately $0.7 million) plus legal costs incurred by the NSW EPA. The Land and Environment Court also has the authority to order KCMC to make certain improvements to its operations at the site of the incident. The Land and Environment Court is expected to enter a final order and assess a fine within the next three to four months. We have accrued our estimated liability associated with the matter as of March 31, 2020. We also continue to meet and correspond with the NSW EPA to discuss and present relevant information related to inquiries regarding other incidents at the facility, primarily related to odor complaints. We currently cannot estimate the potential penalties, fines or other expenditures, if any, that may result from these NSW EPA inquiries and, therefore, we cannot determine if the ultimate outcome of this matter will have a material impact on our financial position, results of operations or cash flows.

There is one plant site related to the Performance Chemicals business located in Australia where we have recorded an environmental remediation liability for soil and groundwater contamination which occurred prior to the acquisition of the business. As of March 31, 2020, our estimated environmental remediation liability for this acquired site totals $1.2 million.

Environmental Reserves Rollforward. The following table reflects changes in the accrued liability for environmental matters, of which $2.7 million and $2.8 million are classified as current liabilities at March 31, 2020 and December 31, 2019, respectively:

	Period ended
	March 31, 2020			December 31, 2019
(Dollars in millions)
Balance at beginning of year	$	9.5		$	10.1
Expense		0.0			0.5
Reversal of reserves		0.0			(0.8	)
Cash expenditures		0.0			(0.3	)
Currency translation		(0.2	)		0.0
Balance at end of period	$	9.3		$	9.5

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Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

14. Debt

Debt as of March 31, 2020 and December 31, 2019 was as follows:

	Weighted Average Interest Rate			Maturity	March 31, 2020		December 31, 2019
(Dollars in millions)
Term Loan		4.47	%	2024	$	80.0	$	82.5
Revolving Credit Facility		4.47	%	2024		383.1		329.0
Other loans		6.04	%	2021		0.3		0.4
Senior Notes due 2025		6.00	%	2025		500.0		500.0
Debt						963.4		911.9
Less short-term debt and current maturities of    long-term debt						10.2		10.2
Less unamortized debt issuance costs						10.2		10.7
Long-term debt					$	943.0	$	891.0

Credit Facility

On February 26, 2020, we entered into the Fourth Amendment and amended our $600.0 million senior secured revolving credit facility and our $100.0 million secured term loan facility (collectively, the Credit Facility”) to, among other things: (1) revise the LIBOR replacement language in the Credit Facility, (2) revise certain provisions regarding mandatory prepayments of the term loan facility with proceeds of equity issuances and associated definitions, (3) remove the step downs in the maximum total secured leverage ratio and maximum total leverage ratio which would otherwise occur at the time of a first equity issuance, and (4) revise certain provisions regarding disposition of assets by certain subsidiaries of Koppers Inc. All other material terms, conditions and covenants with respect to the Credit Facility remain unchanged.

The secured term loan has a quarterly amortization of $2.5 million and the interest rate on the Credit Facility is variable and is based on LIBOR. 

Borrowings under the Credit Facility are secured by a first priority lien on substantially all of the assets of Koppers Inc., Koppers Holdings Inc. and their material domestic subsidiaries. The Credit Facility contains certain covenants for Koppers Inc. and its restricted subsidiaries that limit capital expenditures, additional indebtedness, liens, dividends, investments or acquisitions. In addition, such covenants give rise to events of default upon the failure by Koppers Inc. and its restricted subsidiaries to meet certain financial ratios.

As of March 31, 2020, we had $129.9 million of unused revolving credit availability for working capital purposes after restrictions from certain letter of credit commitments and other covenants. As of March 31, 2020, $7.5 million of commitments were utilized by outstanding letters of credit.

Senior Notes due 2025

The 2025 Notes are senior obligations of Koppers Inc., are unsecured and are guaranteed by Koppers Holdings Inc. and certain of Koppers Inc.’s domestic subsidiaries. The 2025 Notes pay interest semi-annually in arrears on February 15 and August 15 and will mature on February 15, 2025 unless earlier redeemed or repurchased. On or after February 15, 2020, we are entitled to redeem all or a portion of the 2025 Senior Notes at a redemption price of 104.5 percent of principal value, declining to a redemption price of 101.5 percent on or after February 15, 2022 until the redemption price is equivalent to the principal value on April 15, 2023.

The indenture governing the 2025 Senior Notes includes customary covenants that restrict, among other things, the ability of Koppers Inc. and its restricted subsidiaries to incur additional debt, pay dividends or make certain other restricted payments, incur liens, merge or sell all or substantially all of the assets of Koppers Inc. or its subsidiaries or enter into various transactions with affiliates.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Company's Financial Instruments

Carrying amounts and the related estimated fair values of our financial instruments as of March 31, 2020 and December 31, 2019 are as follows:

	March 31, 2020				December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents, including restricted cash	$	54.2	$	54.2	$	32.3	$	32.3
Investments and other assets(a)		1.2		1.2		1.2		1.2
Financial liabilities:
Total debt	$	950.9	$	963.4	$	896.2	$	911.9

(a) Excludes equity method investments.

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Estimated annual effective income tax rate	30.70%	31.40%
Percentage of allowable business interest expense deduction from adjusted taxable income	50.00%		30.00%
Effective income tax rate reconciliation, prior year income taxes, amount	$ 1.0
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount	1.9
Net tax benefit included in income taxes, discrete items	1.8	$ (3.8)
Income taxes as a percentage of pretax income		(14.10%)
Net tax benefit included in income taxes, discrete items	(1.8)	$ 3.8
Unrecognized tax benefits	2.1		$ 2.1
Unrecognized tax benefits with impact on the effective tax rate	2.1		2.0
Accrued interest expense and penalties	$ 0.9		$ 0.8

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Condensed Consolidated Statement of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net sales	$ 401.9	$ 376.9
Cost of sales	340.3	301.8
Depreciation and amortization	13.5	13.6
Impairment and restructuring charges	(0.2)	0.3
Selling, general and administrative expenses	34.7	36.9
Operating profit	13.6	24.3
Other income, net	0.5	0.5
Interest expense	14.0	16.2
Income from continuing operations before income taxes	0.1	8.6
Income tax provision	(1.8)	(1.2)
Income from continuing operations	1.9	9.8
(Loss) income from discontinued operations, net of tax benefit (expense) of $0.8 and $(1.1)	(4.4)	2.7
Net (loss) income	(2.5)	12.5
Net (loss) income attributable to noncontrolling interests	(1.1)	0.9
Net (loss) income attributable to Koppers	$ (1.4)	$ 11.6
Basic -
Continuing operations	$ 0.09	$ 0.47
Discontinued operations	(0.16)	0.09
(Loss) earnings per basic common share	(0.07)	0.56
Diluted -
Continuing operations	0.09	0.47
Discontinued operations	(0.16)	0.09
(Loss) earnings per diluted common share	$ (0.07)	$ 0.56
Comprehensive (loss) income	$ (51.0)	$ 20.7
Comprehensive (loss) income attributable to noncontrolling interests	(1.3)	1.1
Comprehensive (loss) income attributable to Koppers	$ (49.7)	$ 19.6
Weighted average shares outstanding (in thousands):
Basic	20,852	20,575
Diluted	21,315	20,881

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Segment Information - Summary of Results of Segment Operations (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Net sales	$ 9.9	$ 58.0
Depreciation and amortization expense	1.0	1.0
Operating (loss) profit	$ (5.1)	$ 4.1

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Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash (used in) provided by operating activities:
Net (loss) income	$ (2.5)	$ 12.5
Adjustments to reconcile net cash (used in) provided by operating activities:
Depreciation and amortization	14.5	14.6
Change in derivative liability	8.4	(3.1)
Stock-based compensation	2.5	2.9
Non-cash interest expense	0.7	0.6
Deferred income taxes	(1.9)	0.4
Insurance proceeds	(0.0)	(1.4)
Change in other liabilities	(5.0)	(3.2)
Other - net	4.2	(0.7)
Changes in working capital:
Accounts receivable	(21.0)	1.7
Inventories	8.6	(0.5)
Accounts payable	(6.7)	(30.1)
Accrued liabilities	(11.8)	(4.5)
Other working capital	(7.2)	(3.5)
Net cash used in operating activities	(17.2)	(14.3)
Cash (used in) provided by investing activities:
Capital expenditures	(10.6)	(11.0)
Insurance proceeds received	0.0	1.4
Net cash provided by divestitures and asset sales	0.0	0.3
Net cash used in investing activities	(10.6)	(9.3)
Cash provided by (used in) financing activities:
Net increase in credit facility borrowings	54.1	34.0
Repayments of long-term debt	(2.6)	(12.6)
Issuances of Common Stock	0.2	0.3
Repurchases of Common Stock	(1.2)	(0.9)
Payment of debt issuance costs	(0.2)	(0.0)
Net cash provided by financing activities	50.3	20.8
Effect of exchange rate changes on cash	(0.9)	0.4
Change in cash and cash equivalents of discontinued operations held for sale	0.3	(2.2)
Net increase (decrease) in cash and cash equivalents	21.9	(4.6)
Cash and cash equivalents at beginning of period	32.3	37.4
Cash and cash equivalents at end of period	54.2	32.8
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	7.9	7.6
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0.3	$ 14.3

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Copper Swap Contracts

As of March 31, 2020 and December 31, 2019, we had outstanding copper swap contracts of the following amounts:

	Units Outstanding (in Pounds)				Net Fair Value - (Liability) Asset
	March 31, 2020		December 31, 2019		March 31, 2020			December 31, 2019
(Amounts in millions)
Cash flow hedges		73.7		56.5	$	(28.9	)	$	4.5
Not designated as hedges		16.5		16.6		(6.1	)		1.7
Total		90.2		73.1	$	(35.0	)	$	6.2

Schedule of Fair Value of Outstanding Copper Swap Contracts Recorded in Balance Sheet

As of March 31, 2020 and December 31, 2019, the fair value of the outstanding copper swap contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	0.0		$	2.1
Other assets		0.0			4.1
Accrued liabilities		(19.3	)		0.0
Other long-term liabilities		(15.7	)		0.0
Net (liability) asset on balance sheet	$	(35.0	)	$	6.2
Accumulated other comprehensive (loss) gain, net of tax	$	(22.2	)	$	3.3

Schedule of (Loss) Gain from Contract Not Designated as Hedges

For the three months ended March 31, 2020 and 2019, the (loss) gain from contracts not designated as hedges is as follows:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
(Loss) gain from contracts not designated as hedges	$	(8.0	)	$	3.1

Schedule of Fair Value of Outstanding Foreign Currency Forward Contracts

As of March 31, 2020 and December 31, 2019, the fair value of outstanding foreign currency forward contracts is recorded in the balance sheet as follows:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Other current assets	$	1.6		$	0.3
Accrued liabilities		(0.3	)		(0.5	)
Net asset (liability) on balance sheet	$	1.3		$	(0.2	)

Summary of Net Currency Units Outstanding

As of March 31, 2020 and December 31, 2019, the net currency units outstanding for these contracts were:

	March 31, 2020		December 31, 2019
(In millions)
British Pounds		GBP 3.7		GBP 3.7
New Zealand Dollars		NZD 16.0		NZD 16.0
United States Dollars		USD 2.8		USD 6.2
Euro		EUR 1.2		EUR 1.2

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Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Feb. 18, 2020
Schedule Of Equity Method Investments [Line Items]
Net Cash Provided by (Used in) Discontinued Operations	$ (0.3)	$ 2.2
Impairment charge	0.0
Aggregate disvestiture cost	1.0
Koppers (Jiangsu) Carbon Chemical Company Limited [Member]
Schedule Of Equity Method Investments [Line Items]
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	107.0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	45.0
Net Cash Provided by (Used in) Discontinued Operations	$ 65.0
Koppers (Jiangsu) Carbon Chemical Company Limited [Member] | Minimum [Member]
Schedule Of Equity Method Investments [Line Items]
Expected period for sales adjustment	4 months
Koppers (Jiangsu) Carbon Chemical Company Limited [Member] | Maximum [Member]
Schedule Of Equity Method Investments [Line Items]
Expected period for sales adjustment	6 months
Koppers (Jiangsu) Carbon Chemical Company Limited [Member] | Carbon Materials and Chemicals [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership percentage			75.00%

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Fair Value Measurements - Schedule of Company's Financial Instruments (Detail) - USD ($) $ in Millions		Mar. 31, 2020	Dec. 31, 2019
Fair Value [Member]
Financial assets:
Cash and cash equivalents, including restricted cash		$ 54.2	$ 32.3
Investments and other assets	[1]	1.2	1.2
Financial liabilities:
Total debt		950.9	896.2
Carrying Value [Member]
Financial assets:
Cash and cash equivalents, including restricted cash		54.2	32.3
Investments and other assets	[1]	1.2	1.2
Financial liabilities:
Total debt		$ 963.4	$ 911.9

[1] Excludes equity method investments.

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Comprehensive Income and Equity (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Comprehensive Income

Total comprehensive (loss) income for the three months ended March 31, 2020 and 2019 is summarized in the table below:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions)
Net (loss) income	$	(2.5	)	$	12.5
Changes in other comprehensive (loss) income:
Currency translation adjustment		(23.3	)		1.8
Unrealized (loss) gain on cash flow hedges, net    of tax benefit (expense) of $11.3 and $(2.8)		(25.4	)		6.2
Unrecognized pension net loss, net of tax    (expense) of $(0.1)		0.2			0.2
Total comprehensive (loss) income		(51.0	)		20.7
Comprehensive (loss) income attributable to    noncontrolling interests		(1.3	)		1.1
Comprehensive (loss) income attributable to Koppers	$	(49.7	)	$	19.6

Schedule of Change in Equity

The following tables present the change in equity for the three months ended March 31, 2020 and 2019, respectively:

(Dollars in millions)	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests			Total Equity
Balance at December 31,   2019	$	0.2	$	221.9	$	93.8		$	(77.7	)	$	(90.9	)	$	11.4		$	158.7
Net loss		0.0		0.0		(1.4	)		0.0			0.0			(1.1	)		(2.5	)
Issuance of common stock		0.0		0.2		0.0			0.0			0.0			0.0			0.2
Employee stock plans		0.0		2.5		0.0			0.0			0.0			0.0			2.5
Other comprehensive (loss) income
Currency translation       adjustment		0.0		0.0		0.0			(23.2	)		0.0			(0.2	)		(23.3	)
Unrealized loss on       cash flow hedges		0.0		0.0		0.0			(25.4	)		0.0			0.0			(25.4	)
Unrecognized pension       net loss		0.0		0.0		0.0			0.2			0.0			0.0			0.2
Repurchases of common   stock		0.0		0.0		0.0			0.0			(1.2	)		0.0			(1.2	)
Balance at March 31, 2020	$	0.2	$	224.7	$	92.4		$	(126.1	)	$	(92.1	)	$	10.1		$	109.2

(Dollars in millions)	Common Stock		Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive (Loss)			Treasury Stock			Noncontrolling Interests		Total Equity
Balance at December 31,   2018	$	0.2	$	206.0		$	27.2	$	(87.2	)	$	(90.0	)	$	10.8	$	67.0
Net income		0.0		0.0			11.6		0.0			0.0			0.9		12.5
Issuance of common stock		0.0		0.3			0.0		0.0			0.0			0.0		0.3
Employee stock plans		0.0		2.9			0.0		0.0			0.0			0.0		2.9
Other comprehensive income
Currency translation       adjustment		0.0		0.0			0.0		1.5			0.0			0.3		1.8
Unrealized gain on       cash flow hedges		0.0		0.0			0.0		6.2			0.0			0.0		6.2
Unrecognized pension       net loss		0.0		0.0			0.0		0.2			0.0			0.0		0.2
Repurchases of common   stock		0.0		(0.2	)		0.1		0.1			(0.8	)		0.0		(0.8	)
Balance at March 31, 2019	$	0.2	$	209.0		$	38.9	$	(79.2	)	$	(90.8	)	$	12.0	$	90.1

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New Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Changes And Error Corrections [Abstract]

New Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 is meant to simplify accounting for income taxes by removing certain exceptions to the principles in Topic 740 and amends existing guidance to facilitate consistent application. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. The update is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. We adopted the standard as of January 1, 2020 and there was no material impact on our financial statements.

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Asset Retirement Obligations

3 Months Ended

Mar. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

15. Asset Retirement Obligations

We recognize asset retirement obligations for the removal and disposal of residues; dismantling of certain tanks required by governmental authorities; cleaning and dismantling costs for owned railcars; cleaning costs for leased railcars and barges; and site demolition, when required by governmental authorities or by contract. The following table reflects changes in the carrying values of asset retirement obligations:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Asset retirement obligation at beginning of year	$	20.7		$	27.0
Accretion expense		0.3			1.5
Revision in estimated cash flows		0.2			4.7
Cash expenditures		(1.7	)		(12.5	)
Currency translation		(0.1	)		0.0
Balance at end of period	$	19.4		$	20.7

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Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Earnings per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions, except share amounts, in thousands)
Net (loss) income attributable to Koppers	$	(1.4	)	$	11.6
(Loss) income from discontinued operations		(4.4	)		2.7
Non-controlling loss (income) from discontinued operations		1.1			(0.9	)
Income from continuing operations attributable to Koppers	$	1.9		$	9.8
Weighted average common shares outstanding:
Basic		20,852			20,575
Effect of dilutive securities		463			306
Diluted		21,315			20,881
Earnings per common share – continuing operations:
Basic earnings per common share	$	0.09		$	0.47
Diluted earnings per common share		0.09			0.47
Other data:
Antidilutive securities excluded from computation of    diluted earnings per common share		682			534

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Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Components of Net Inventories

Net inventories as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Raw materials	$	235.1	$	232.0
Work in process		9.2		12.0
Finished goods		94.6		107.8
	$	338.9	$	351.8
Less revaluation to LIFO		62.7		63.3
Net(a)	$	276.2	$	288.5

(a) Net inventories excludes $5.5 million and $10.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Changes in Carrying Values of Asset Retirement Obligations

The following table reflects changes in the carrying values of asset retirement obligations:

	March 31, 2020			December 31, 2019
(Dollars in millions)
Asset retirement obligation at beginning of year	$	20.7		$	27.0
Accretion expense		0.3			1.5
Revision in estimated cash flows		0.2			4.7
Cash expenditures		(1.7	)		(12.5	)
Currency translation		(0.1	)		0.0
Balance at end of period	$	19.4		$	20.7

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Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventories

11. Inventories

Net inventories as of March 31, 2020 and December 31, 2019 are summarized in the table below:

	March 31, 2020		December 31, 2019
(Dollars in millions)
Raw materials	$	235.1	$	232.0
Work in process		9.2		12.0
Finished goods		94.6		107.8
	$	338.9	$	351.8
Less revaluation to LIFO		62.7		63.3
Net(a)	$	276.2	$	288.5

(a) Net inventories excludes $5.5 million and $10.6 million of discontinued operations assets held for sale related to our KJCC business at March 31, 2020 and December 31, 2019, respectively.

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Earnings per Common Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings per Common Share

7. Earnings per Common Share

The computation of basic earnings per common share for the periods presented is based upon the weighted average number of common shares outstanding during the periods. The computation of diluted earnings per common share includes the effect of non-vested nonqualified stock options and restricted stock units assuming such options and stock units were outstanding common shares at the beginning of the period. The effect of antidilutive securities is excluded from the computation of diluted loss per common share, if any.

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2020			2019
(Dollars in millions, except share amounts, in thousands)
Net (loss) income attributable to Koppers	$	(1.4	)	$	11.6
(Loss) income from discontinued operations		(4.4	)		2.7
Non-controlling loss (income) from discontinued operations		1.1			(0.9	)
Income from continuing operations attributable to Koppers	$	1.9		$	9.8
Weighted average common shares outstanding:
Basic		20,852			20,575
Effect of dilutive securities		463			306
Diluted		21,315			20,881
Earnings per common share – continuing operations:
Basic earnings per common share	$	0.09		$	0.47
Diluted earnings per common share		0.09			0.47
Other data:
Antidilutive securities excluded from computation of    diluted earnings per common share		682			534

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Property, Plant and Equipment - Property, Plant and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Assets of discontinued operations held for sale	$ 67.5	$ 76.4
Koppers (Jiangsu) Carbon Chemical Company Limited [Member]
Property, Plant and Equipment [Line Items]
Assets of discontinued operations held for sale	$ 54.8	$ 56.6

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Derivative Financial Instruments - Schedule of Outstanding Copper Swap Contracts (Detail) - Copper Swap Contracts [Member] £ in Millions, $ in Millions	Mar. 31, 2020 USD ($)	Mar. 31, 2020 GBP (£)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 GBP (£)
Derivatives Fair Value [Line Items]
Copper Swap Contracts Units Outstanding | £		£ 90.2		£ 73.1
Net Fair Value - (Liability) Asset | $	$ (35.0)		$ 6.2
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivatives Fair Value [Line Items]
Copper Swap Contracts Units Outstanding | £		73.7		56.5
Net Fair Value - (Liability) Asset | $	(28.9)		4.5
Not Designated as Hedging Instrument
Derivatives Fair Value [Line Items]
Copper Swap Contracts Units Outstanding | £		£ 16.5		£ 16.6
Net Fair Value - (Liability) Asset | $	$ (6.1)		$ 1.7

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Derivative Financial Instruments - Summary of Net Currency Units Outstanding (Detail)	Mar. 31, 2020 USD ($)	Mar. 31, 2020 GBP (£)	Mar. 31, 2020 NZD ($)	Mar. 31, 2020 EUR (€)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 GBP (£)	Dec. 31, 2019 NZD ($)	Dec. 31, 2019 EUR (€)
Offsetting [Abstract]
Net currency units outstanding	$ 2,800,000	£ 3,700,000	$ 16,000,000	€ 1,200,000	$ 6,200,000	£ 3,700,000	$ 16,000,000	€ 1,200,000

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Debt - Additional Information (Detail) - USD ($)			3 Months Ended
	Feb. 15, 2022	Feb. 26, 2020	Mar. 31, 2020
Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Letters of credit, amount outstanding			$ 7,500,000
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes, payment terms			The 2025 Notes pay interest semi-annually in arrears on February 15 and August 15 and will mature on February 15, 2025 unless earlier redeemed or repurchased.
Debt instrument, redemption price percentage			104.50%
Debt maturity date			Feb. 15, 2025
6.00 percent Senior Notes due 2025 [Member] | Senior Notes [Member] | Scenario, Forecast [Member]
Debt Instrument [Line Items]
Debt instrument, redemption price percentage	101.50%
Senior Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility		$ 600,000,000.0
Revolving credit facility, variable interest rate basis		LIBOR
Secured Term Loan Facility [Member]
Debt Instrument [Line Items]
Secured term loan		$ 100,000,000.0
Quarterly amortization		$ 2,500,000
Revolving Credit Facility [Member] | Senior Secured Credit Facilities [Member]
Debt Instrument [Line Items]
Debt instrument, unused borrowing capacity			$ 129,900,000

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Stock-based Compensation - Summary of Status and Activity of Stock Options (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options, Outstanding at December 31, 2019 | shares	966,849
Options, Granted | shares	187,701
Options, Expired | shares	(5,129)
Options, Forfeited | shares	(12,280)
Options, Outstanding at March 31, 2020 | shares	1,137,141
Options, Exercisable at March 31, 2020 | shares	771,153
Weighted Average Exercise Price per Option, Outstanding at December 31, 2019 | $ / shares	$ 28.45
Weighted Average Exercise Price per Option, Granted | $ / shares	19.63
Weighted Average Exercise Price per Option, Expired | $ / shares	31.28
Weighted Average Exercise Price per Option, Forfeited | $ / shares	31.03
Weighted Average Exercise Price per Option, Outstanding at March 31, 2020 | $ / shares	26.96
Weighted Average Exercise Price per Option, Outstanding at March 31, 2020 | $ / shares	$ 27.29
Weighted Average Remaining Contractual Term, Outstanding at March 31, 2020	6 years 5 months 1 day
Weighted Average Remaining Contractual Term, Exercisable at March 31, 2020	5 years 1 month 13 days
Aggregate Intrinsic Value, Outstanding at March 31, 2020 | $	$ 0.0
Aggregate Intrinsic Value, Exercisable at March 31, 2020 | $	$ 0.0

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Stock-based Compensation - Performance Award Fair Value Assumptions (Detail)	3 Months Ended
	Mar. 31, 2020 $ / shares
March 2020 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 19.63
Expected dividend yield per share	0.00%
Expected volatility	42.85%
Risk-free interest rate	0.87%
Grant date fair value per share	$ 8.42
March 2020 Grant [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 19.63
Expected dividend yield per share	0.00%
Expected volatility	45.60%
Risk-free interest rate	0.72%
Look-back period in years	2 years 9 months 29 days
Grant date fair value per share	$ 11.56
March 2019 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 26.63
Expected dividend yield per share	0.00%
Expected volatility	39.44%
Risk-free interest rate	2.53%
Grant date fair value per share	$ 11.29
March 2019 Grant [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 26.63
Expected dividend yield per share	0.00%
Expected volatility	39.00%
Risk-free interest rate	2.50%
Look-back period in years	2 years 9 months 25 days
Grant date fair value per share	$ 40.30
May 2018 Grant [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 39.10
Expected dividend yield per share	0.00%
Expected volatility	39.40%
Risk-free interest rate	2.35%
Look-back period in years	2 years 10 months 2 days
Grant date fair value per share	$ 44.29
March 2018 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 41.60
Expected dividend yield per share	0.00%
Expected volatility	37.05%
Risk-free interest rate	2.67%
Grant date fair value per share	$ 16.38
March 2018 Grant [Member] | Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date price per share of performance award	$ 41.60
Expected dividend yield per share	0.00%
Expected volatility	39.40%
Risk-free interest rate	2.35%
Look-back period in years	2 years 10 months 2 days
Grant date fair value per share	$ 47.12

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Comprehensive Income and Equity - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity [Abstract]
Income (loss) related to derivative instrument	$ (1.1)	$ (0.6)