10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021

or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to __________

Commission File Number 1-584

FERRO CORPORATION

(Exact name of registrant as specified in its charter)

OH (State or other jurisdiction of incorporation or organization)	34-0217820 (I.R.S. Employer Identification No.)
6060 Parkland Boulevard Suite 250 Mayfield Heights, OH (Address of principal executive offices)	44124 (Zip Code)
216-875-5600 (Registrant’s telephone number, including area code)

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

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 x NO o

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

Large Accelerated Filer	x	Accelerated Filer	o
Non-accelerated Filer	o	Smaller Reporting Company	o
		Emerging Growth Company	o

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o NO x

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, par value $1.00	FOE	NYSE

At June 30, 2021, there were 82,704,290 shares of Ferro Common Stock, par value $1.00, outstanding.

TABLE OF CONTENTS

		Page
PART I
Item 1. Financial Statements (Unaudited)	3
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures about Market Risk	36
Item 4. Controls and Procedures	37
PART II
Item 1. Legal Proceedings	38
Item 1A. Risk Factors	38
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3. Defaults Upon Senior Securities	38
Item 4. Mine Safety Disclosures	38
Item 5. Other Information	39
Item 6. Exhibits	39
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

2

PART I — FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

Ferro Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share amounts)	2021		2020		2021		2020
Net sales	$	294,331	$	204,801	$	582,689	$	457,127
Cost of sales		199,496		141,057		392,751		312,645
Gross profit		94,835		63,744		189,938		144,482
Selling, general and administrative expenses		59,026		50,541		112,864		106,587
Restructuring and impairment charges		1,970		8,619		7,154		9,784
Other expense (income):
Interest expense		5,006		6,177		14,443		11,707
Interest earned		(52)		(307)		(649)		(561)
Foreign currency losses (gains), net		3,209		1,143		4,367		(172)
Loss on extinguishment of debt		—		—		1,981		—
Miscellaneous income, net		(253)		(703)		(2,353)		(2,166)
Income (loss) before income taxes		25,929		(1,726)		52,131		19,303
Income tax expense		8,502		200		16,146		5,317
Income (loss) from continuing operations		17,427		(1,926)		35,985		13,986
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Net income (loss)		15,891		(5,164)		124,291		10,969
Less: Net income attributable to noncontrolling interests		382		376		819		386
Net income (loss) attributable to Ferro Corporation common shareholders	$	15,509	$	(5,540)	$	123,472	$	10,583
Earnings (loss) per share attributable to Ferro Corporation common shareholders:
Basic earnings:
Continuing operations	$	0.21	$	(0.03)	$	0.43	$	0.17
Discontinued operations		(0.02)		(0.04)		1.07		(0.04)
	$	0.19	$	(0.07)	$	1.50	$	0.13
Diluted earnings:
Continuing operations	$	0.20	$	(0.03)	$	0.42	$	0.16
Discontinued operations		(0.02)		(0.04)		1.06		(0.04)
	$	0.18	$	(0.07)	$	1.48	$	0.12

See accompanying notes to condensed consolidated financial statements.

3

Ferro Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Net income (loss)	$	15,891	$	(5,164)	$	124,291	$	10,969
Other comprehensive income (loss), net of income tax:
Foreign currency translation gain (loss)		687		3,857		(60,414)		(14,509)
Cash flow hedging instruments, unrealized income (loss)		1,283		(1,560)		8,069		(10,600)
Postretirement benefit liabilities income		(1)		—		129		—
Other comprehensive income (loss), net of income tax		1,969		2,297		(52,216)		(25,109)
Total comprehensive income (loss)		17,860		(2,867)		72,075		(14,140)
Less: Comprehensive income (loss) attributable to noncontrolling interests		(157)		340		206		256
Comprehensive income (loss) attributable to Ferro Corporation	$	18,017	$	(3,207)	$	71,869	$	(14,396)

See accompanying notes to condensed consolidated financial statements.

4

Ferro Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

	June 30,		December 31,
(Dollars in thousands)	2021		2020
ASSETS
Current assets
Cash and cash equivalents	$	143,717	$	174,077
Accounts receivable, net		162,375		137,008
Inventories		260,237		260,332
Other receivables		64,240		72,272
Other current assets		20,988		18,261
Current assets held-for-sale		—		307,854
Total current assets		651,557		969,804
Other assets
Property, plant and equipment, net		332,197		330,045
Goodwill		174,005		175,351
Intangible assets, net		112,545		119,500
Deferred income taxes		110,735		115,962
Operating leased assets		13,817		15,446
Other non-current assets		25,825		80,618
Non-current assets held-for-sale		—		154,207
Total assets	$	1,420,681	$	1,960,933
LIABILITIES AND EQUITY
Current liabilities
Loans payable and current portion of long-term debt	$	8,871	$	8,839
Accounts payable		136,303		135,296
Accrued payrolls		28,366		27,166
Accrued expenses and other current liabilities		150,463		124,770
Current liabilities held-for-sale		—		107,545
Total current liabilities		324,003		403,616
Other liabilities
Long-term debt, less current portion		354,729		791,509
Postretirement and pension liabilities		165,951		181,610
Operating leased non-current liabilities		8,588		10,064
Other non-current liabilities		55,118		62,050
Non-current liabilities held-for-sale		—		71,149
Total liabilities		908,389		1,519,998
Equity
Ferro Corporation shareholders’ equity:
Common stock, par value $1 per share; 300.0 million shares authorized; 93.4 million shares issued; 82.7 million and 82.4 million shares outstanding at June 30, 2021, and December 31, 2020, respectively		93,436		93,436
Paid-in capital		289,285		293,682
Retained earnings		428,287		304,815
Accumulated other comprehensive loss		(141,313)		(89,710)
Common shares in treasury, at cost		(165,689)		(172,256)
Total Ferro Corporation shareholders’ equity		504,006		429,967
Noncontrolling interests		8,286		10,968
Total equity		512,292		440,935
Total liabilities and equity	$	1,420,681	$	1,960,933

See accompanying notes to condensed consolidated financial statements.

5

Ferro Corporation and Subsidiaries

Condensed Consolidated Statements of Equity

	Ferro Corporation Shareholders
	Common Shares									Accumulated
	in Treasury									Other		Non-
				Common		Paid-in		Retained		Comprehensive		controlling		Total
(In thousands)	Shares	Amount		Stock		Capital		Earnings		Loss		Interests		Equity
Balances at December 31, 2020	11,065	$	(172,256)	$	93,436	$	293,682	$	304,815	$	(89,710)	$	10,968	$	440,935
Net income (loss)	—		—		—		—		107,963		—		437		108,400
Other comprehensive income (loss)	—		—		—		—		—		(54,111)		(74)		(54,185)
Change in ownership interest	—		—		—		(2,530)		—		—		(2,888)		(5,418)
Stock-based compensation transactions	(255)		5,154		—		(2,614)		—		—		—		2,540
Balances at March 31, 2021	10,810	$	(167,102)	$	93,436	$	288,538	$	412,778	$	(143,821)	$	8,443	$	492,272
Net income (loss)	—		—		—		—		15,509		—		382		15,891
Other comprehensive income (loss)	—		—		—		—		—		2,508		(539)		1,969
Stock-based compensation transactions	(79)		1,413		—		747		—		—		—		2,160
Balances at June 30, 2021	10,731	$	(165,689)	$	93,436	$	289,285	$	428,287	$	(141,313)	$	8,286	$	512,292

	Ferro Corporation Shareholders
	Common Shares									Accumulated
	in Treasury									Other		Non-
				Common		Paid-in		Retained		Comprehensive		controlling		Total
(In thousands)	Shares	Amount		Stock		Capital		Earnings		Loss		Interests		Equity
Balances at December 31, 2019	11,431	$	(180,243)	$	93,436	$	294,543	$	262,016	$	(109,376)	$	9,826	$	370,202
Net income (loss)	—		—		—		—		16,123		—		10		16,133
Other comprehensive income (loss)	—		—		—		—		—		(27,312)		(94)		(27,406)
Stock-based compensation transactions	(238)		5,332		—		(2,723)		—		—		—		2,609
Balances at March 31, 2020	11,193	$	(174,911)	$	93,436	$	291,820	$	278,139	$	(136,688)	$	9,742	$	361,538
Net income (loss)	—		—		—		—		(5,540)		—		376		(5,164)
Other comprehensive income (loss)	—		—		—		—		—		2,333		(36)		2,297
Stock-based compensation transactions	(8)		159		—		1,825		—		—		—		1,984
Balances at June 30, 2020	11,185	$	(174,752)	$	93,436	$	293,645	$	272,599	$	(134,355)	$	10,082	$	360,655

See accompanying notes to condensed consolidated financial statements.

6

Ferro Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Cash flows from operating activities
Net cash used in operating activities	$	(46,410)	$	(104,561)
Cash flows from investing activities
Capital expenditures for property, plant and equipment and other long-lived assets		(20,574)		(14,982)
Collections of financing receivables		59,326		62,580
Proceeds from sale of businesses, net		415,230		—
Business acquisitions, net of cash acquired		(2,200)		—
Other investing activities		236		778
Net cash provided by investing activities		452,018		48,376
Cash flows from financing activities
Net borrowings (payments) under loans payable		(112)		11,420
Principal payments on term loan facility - Amended Credit Facility		(439,100)		(4,100)
Proceeds from revolving credit facility - Amended Credit Facility		50,000		360,000
Principal payments on revolving credit facility - Amended Credit Facility		(50,000)		(343,383)
Other financing activities		(3,551)		(1,418)
Net cash provided by (used in) financing activities		(442,763)		22,519
Effect of exchange rate changes on cash and cash equivalents		(1,405)		(505)
Decrease in cash and cash equivalents		(38,560)		(34,171)
Cash and cash equivalents at beginning of period		182,277		104,402
Cash and cash equivalents at end of period		143,717		70,231
Less: Cash and cash equivalents of discontinued operations at end of period		—		8,200
Cash and cash equivalents of continuing operations at end of period	$	143,717	$	62,031
Cash paid during the period for:
Interest	$	16,438	$	16,736
Income taxes	$	12,751	$	7,722

See accompanying notes to condensed consolidated financial statements.

7

Ferro Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

1.    Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Ferro Corporation (“Ferro,” “we,” “us” or “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. These statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020.

We produce our products primarily in the Europe, Middle East and Africa (“EMEA”) region, the Americas region and the Asia Pacific region.

Operating results for the three and six months ended June 30, 2021, are not necessarily indicative of the results expected in subsequent quarters or for the full year ending December 31, 2021.

During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. As further discussed in Note 4, we entered into a definitive agreement to sell our Tile Coatings business, which has historically been included in the Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Throughout this Quarterly Report on Form 10-Q, with the exception of the statements of cash flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

On February 25, 2021, we completed the sale of our Tile Coatings business to Pigments Spain, S.L., a company of the Esmalglass-Itaca-Fritta group, which is a portfolio company of certain Lone Star Funds.

Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the balance sheet presentation of assets as held for sale in relation to the Tile Coatings business transaction. Additional reclassification relates to the disclosure of revenue disaggregation by geographic regions. As of January 1, 2021, the United States and Latin America regions were combined into the Americas region.

Pending Merger

On May 11, 2021, Ferro, PMHC II Inc., a Delaware corporation (“Prince”) and PMHC Fortune Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Prince (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Ferro (the “Merger”), with Ferro continuing as the surviving corporation in the Merger and as a direct or indirect wholly owned subsidiary of Prince. The board of directors of Ferro has approved the Merger Agreement.

On the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), and as a result of the Merger, each share of common stock of Ferro (“Ferro Common Stock”) that is issued and outstanding immediately prior to the Effective Time (other than (i) shares of Ferro Common Stock held by Ferro as treasury stock or held directly by Prince or any subsidiary of Prince (including Merger Sub) immediately prior to the Effective Time (which will be canceled without payment of any consideration), (ii) shares of Ferro Common Stock for which dissenters rights have been properly exercised and perfected and not withdrawn and (iii) shares of restricted stock) will be converted into the right to receive $22.00 in cash, without interest (the “Merger Consideration”).

Pursuant to the Merger Agreement, as of the Effective Time, each option to acquire shares of Ferro Common Stock, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such option, multiplied by (B) the excess, if any, of the Merger Consideration over the applicable per share exercise price of such option.

8

In addition, pursuant to the Merger Agreement, as of the Effective Time, (i) each outstanding share of Ferro restricted stock, each restricted share unit (other than performance share units), deferred share unit, phantom share unit or similar stock right, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such right, multiplied by (B) the Merger Consideration, and (ii) each Ferro performance-based share unit, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such performance-based share unit, calculated based on the greater of (x) actual performance achieved in accordance with the terms of such performance-based share unit and the Merger Agreement and (y) target level performance over the entire performance period applicable with respect to such performance-based share unit, multiplied by (B) the Merger Consideration.

Ferro and Prince have agreed to use their respective reasonable best efforts to consummate the Merger, including making filings with and seeking approvals from certain governmental entities necessary in connection with the Merger, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). In furtherance thereof, Prince has agreed to accept certain divestitures or restrictions on the assets of Prince, Ferro and their respective subsidiaries, if and to the extent necessary to obtain such approvals, subject to certain specified limitations set forth in the Merger Agreement.

Consummation of the Merger is subject to certain customary conditions, including (i) the adoption of the Merger Agreement by the holders of two-thirds of the outstanding shares of Ferro Common Stock, (ii) the absence of any law prohibiting or order preventing the consummation of the Merger, (iii) the receipt of certain regulatory approvals, including expiration or termination of any applicable waiting period under the HSR Act, (iv) the absence of a material adverse effect with respect to Ferro, and (v) compliance in all material respects on the part of each of Ferro and Prince with such party’s covenants under the Merger Agreement. The obligation of each party to consummate the Merger is also conditioned upon the other party’s representations and warranties being true and correct, subject to certain materiality exceptions.

2.    Recent Accounting Pronouncements

Recently Adopted Accounting Standards

This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company.

New Accounting Standards Not Yet Adopted

We are currently evaluating the impact on our financial statements of the following ASUs:

Standard	Description
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, issued March, 2020	Provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU are effective for all entities through December 31, 2022.

No other new accounting pronouncements issued had, or are expected to have, a material impact on the Company’s consolidated financial statements.

9

3. Revenue

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	92,569	$	72,046	$	30,294	$	194,909
Color Solutions		37,958		50,014		11,450		99,422
Total net sales	$	130,527	$	122,060	$	41,744	$	294,331

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	51,071	$	58,868	$	21,733	$	131,672
Color Solutions		27,874		36,145		9,110		73,129
Total net sales	$	78,945	$	95,013	$	30,843	$	204,801

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	179,941	$	139,964	$	59,826	$	379,731
Color Solutions		77,000		103,868		22,090		202,958
Total net sales	$	256,941	$	243,832	$	81,916	$	582,689

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	126,928	$	116,690	$	43,489	$	287,107
Color Solutions		65,763		85,851		18,406		170,020
Total net sales	$	192,691	$	202,541	$	61,895	$	457,127

4.    Discontinued Operations

During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. We entered into a definitive agreement to sell our Tile Coatings business, which has historically been a part of our Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented.

On February 25, 2021, we completed the sale of our Tile Coatings business to Pigments Spain, S.L., a company of the Esmalglass-Itaca-Fritta group (the “Buyer”), which is a portfolio company of certain Lone Star Funds, for $460.0 million in cash, subject to post-closing adjustments. The transaction resulted in net proceeds of approximately $415.2 million after expenses and a gain of $100.1 million, which is recorded within Income from discontinued operations, net of income taxes in our consolidated statement of operations for the quarter ended March 31, 2021. We entered into a Transition Services Agreement (“TSA”) with the Buyer, which is designed to facilitate an orderly transfer of business operations. The services provided under the TSA will terminate at various points in times between six to twelve months from the completion of the sale. Except for customary post-closing adjustments and transition services, we have no continuing involvement with the Buyer subsequent to the completion of the sale.

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The table below summarizes results for the Tile Coatings business for the three and six months ended June 30, 2021 and 2020, which are reflected in our consolidated statements of operations as discontinued operations, net of income taxes. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Net sales	$	—	$	75,254	$	83,579	$	190,004
Cost of sales		—		59,073		60,634		145,975
Gross profit		—		16,181		22,945		44,029
Selling, general and administrative expenses		—		15,542		20,327		34,350
Restructuring and impairment charges		—		1,758		303		2,037
Interest expense		—		2,517		1,682		4,748
Interest earned		—		(129)		(189)		(153)
Foreign currency losses (gains), net		—		(804)		363		4,961
Gain on sale of business, net		—		—		(100,057)		—
Miscellaneous expense, net		—		705		251		1,247
Income (loss) from discontinued operations before income taxes		—		(3,408)		100,265		(3,161)
Income tax expense (benefit)		1,536		(170)		11,959		(144)
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests		—		67		64		44
Net income (loss) attributable to Tile Coatings business	$	(1,536)	$	(3,305)	$	88,242	$	(3,061)

The following table summarizes the assets and liabilities which are classified as held-for-sale at December 31, 2020:

	December 31,
(Dollars in thousands)	2020
Cash and cash equivalents	$	8,200
Accounts receivable, net		211,548
Inventories		84,239
Other receivables		1,630
Other current assets		2,237
Current assets held-for-sale		307,854
Property, plant and equipment, net		93,430
Intangible assets, net		42,126
Deferred income taxes		12,267
Other non-current assets		6,384
Non-current assets held-for-sale		154,207
Total assets held-for-sale	$	462,061
Loans payable and current portion of long-term debt	$	3,927
Accounts payable		85,308
Accrued payrolls		5,946
Accrued expenses and other current liabilities		12,364
Current liabilities held-for-sale		107,545
Long-term debt, less current portion		56,359
Postretirement and pension liabilities		8,119
Other non-current liabilities		6,671
Non-current liabilities held-for-sale		71,149
Total liabilities held-for-sale	$	178,694

11

The following table summarizes cash flow data relating to discontinued operations for the six months ended June 30, 2021 and 2020:

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Capital expenditures	$	(1,074)	$	(1,909)
Gain on sale of discontinued operations		(100,057)		—
Non-cash operating activities - restructuring and impairment charges		—		1,070
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end		—		507

5.    Inventories

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Raw materials	$	75,348	$	81,344
Work in process		45,566		48,770
Finished goods		139,323		130,218
Total inventories	$	260,237	$	260,332

In the production of some of our products, we use precious metals, which we obtain from financial institutions under consignment agreements with terms of one year or less. The financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign. These fees were $0.8 million and $0.6 million for the three months ended June 30, 2021 and 2020, respectively, and $1.4 million and $1.7 million for the six months ended June 30, 2021 and 2020, respectively. We had on-hand precious metals owned by participants in our precious metals consignment program of $100.7 million at June 30, 2021, and $87.2 million at December 31, 2020, measured at fair value based on market prices for identical assets.

6.    Property, Plant and Equipment

Property, plant and equipment is reported net of accumulated depreciation of $452.4 million at June 30, 2021 and $456.3 million at December 31, 2020. As discussed in Note 4, the assets of our Tile Coatings business were classified as held-for-sale under ASC Topic 360; Property, Plant, and Equipment. As such, additional accumulated depreciation of $135.3 million at December 31, 2020 was classified as Non-current assets held for sale.

Unpaid capital expenditure liabilities, which are non-cash investing activities, were $1.1 million at June 30, 2021 and $0.3 million at June 30, 2020.

7. Goodwill and Other Intangible Assets

Details and activity in the Company’s goodwill by segment follow:

	Functional		Color
(Dollars in thousands)	Coatings		Solutions		Total
Goodwill, net at December 31, 2020	$	123,570	$	51,781	$	175,351
Foreign currency adjustments		(1,061)		(285)		(1,346)
Goodwill, net at June 30, 2021	$	122,509	$	51,496	$	174,005

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Goodwill, gross	$	232,472	$	233,818
Accumulated impairment		(58,467)		(58,467)
Goodwill, net	$	174,005	$	175,351

Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. As of June 30, 2021, the Company is not aware of any events or circumstances that occurred which would require a goodwill impairment test.

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Amortizable intangible assets consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Gross amortizable intangible assets:
Patents	$	5,540	$	5,589
Land rights		3,209		3,173
Technology/know-how and other		116,455		116,015
Customer relationships		66,944		68,142
Total gross amortizable intangible assets		192,148		192,919
Accumulated amortization:
Patents		(5,518)		(5,566)
Land rights		(1,693)		(1,630)
Technology/know-how and other		(66,116)		(61,104)
Customer relationships		(19,290)		(18,317)
Total accumulated amortization		(92,617)		(86,617)
Amortizable intangible assets, net	$	99,531	$	106,302

Indefinite-lived intangible assets consisted of the following:

Z

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Indefinite-lived intangibles assets:
Trade names and trademarks	$	13,014	$	13,198

8.    Debt

Loans payable and current portion of long-term debt consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Current portion of long-term debt	$	8,871	$	8,839
Loans payable and current portion of long-term debt	$	8,871	$	8,839

Long-term debt consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Term loan facility, net of unamortized issuance costs, maturing 2024(1)	$	356,978	$	793,731
Finance lease obligations		2,733		2,911
Other notes		3,889		3,706
Total long-term debt		363,600		800,348
Current portion of long-term debt		(8,871)		(8,839)
Long-term debt, less current portion	$	354,729	$	791,509

(1)The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $1.4 million at June 30, 2021 and $3.7 million at December 31, 2020.

Amended Credit Facility

On April 25, 2018, the Company entered into an amendment (the “Amended Credit Facility”) to its existing credit facility (the “Credit Facility”), which Amended Credit Facility (a) provided a new revolving facility (the “2018 Revolving Facility”), which replaced the Company’s existing revolving facility, (b) repriced the (“Tranche B-1 Loans”), and (c) provided new tranches of term loans (“Tranche B-2 Loans” and “Tranche B-3 Loans”) denominated in U.S. dollars. On May 4, 2020, the Company entered into an amendment (Third Amendment to Credit Agreement) to the Amended Credit Facility, which added an approval to Section 7.2.8 Permitted Dispositions for the Tile Coatings Business Disposition. The Amended Credit Facility will be used for ongoing working capital requirements and general corporate purposes. The Tranche B-2 Loans are borrowed by the Company and the Tranche B-3 Loans are borrowed on a joint and several basis by Ferro GmbH and Ferro Europe Holdings LLC.

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The Amended Credit Facility consists of a $500 million secured revolving line of credit with a maturity of February 14, 2023, a $355 million secured term loan facility with a maturity of February 14, 2024, a $235 million secured term loan facility with a maturity of February 14, 2024 and a $230 million secured term loan facility with a maturity of February 14, 2024. The term loans are payable in equal quarterly installments in an amount equal to 0.25% of the original principal amount of the term loans, with the remaining balance due on the maturity date thereof. In addition, the Company is required, on an annual basis, to make a prepayment in an amount equal to a portion of the Company’s excess cash flow, as calculated pursuant to the Amended Credit Facility, which prepayment will be applied first to the term loans until they are paid in full, and then to the revolving loans.

Subject to the satisfaction of certain conditions, the Company can request additional commitments under the revolving line of credit or term loans in the aggregate principal amount of up to $250 million to the extent that existing or new lenders agree to provide such additional commitments and/or term loans. The Company can also raise certain additional debt or credit facilities subject to satisfaction of certain covenant levels.

Certain of the Company’s U.S. subsidiaries have guaranteed the Company’s obligations under the Amended Credit Facility and such obligations are secured by (a) substantially all of the personal property of the Company and the U.S. subsidiary guarantors and (b) a pledge of 100% of the stock of certain of the Company’s U.S. subsidiaries and 65% of the stock of certain of the Company’s direct foreign subsidiaries. The Tranche B-3 Loans are guaranteed by the Company, the U.S. subsidiary guarantors and a cross-guaranty by the borrowers of the Tranche B-3 Loans and are secured by the collateral securing the revolving loans and the other term loans, in addition to a pledge of the equity interests of Ferro GmbH.

Interest Rate – Term Loans: The interest rates applicable to the term loans will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable margin.

The base rate for term loans will be the highest of (i) the federal funds rate plus 0.50%, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00% or (iv) 0.00%. The applicable margin for base rate loans is 1.25%.

The LIBOR rate for term loans shall not be less than 0.0% and the applicable margin for LIBOR rate term loans is 2.25%.

For LIBOR rate term loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration.

At June 30, 2021, the Company had borrowed $155.1 million under the Tranche B-1 Loans at an interest rate of 2.40%, $102.7 million under the Tranche B-2 Loans at an interest rate of 2.40%, and $100.5 million under the Tranche B-3 Loans at an interest rate of 2.40%. At June 30, 2021, there were no additional borrowings available under the Tranche B-1 Loans, Tranche B-2 Loans, or Tranche B-3 Loans. In connection with these borrowings, we entered into swap agreements in the second quarter of 2018. At June 30, 2021, the effective interest rate for all tranches of the term loan facility, inclusive of hedging activities, was 4.83%.

Interest Rate – Revolving Credit Line: The interest rates applicable to loans under the 2018 Revolving Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable variable margin. The variable margin will be based on the ratio of (a) the Company’s total consolidated net debt outstanding (as defined in the Amended Credit Agreement) at such time to (b) the Company’s consolidated EBITDA (as defined in the Amended Credit Agreement) computed for the period of four consecutive fiscal quarters most recently ended.

The base rate for revolving loans will be the highest of (i) the federal funds rate plus 0.50%, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00% or (iv) 0.00%. The applicable margin for base rate loans will vary between 0.50% to 1.50%.

The LIBOR rate for revolving loans shall not be less than 0% and the applicable margin for LIBOR rate revolving loans will vary between 1.50% and 2.50%.

For LIBOR rate revolving loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration.

At June 30, 2021, there were no borrowings under the 2018 Revolving Credit Facility. After reductions for outstanding letters of credit secured by these facilities, we had $495.8 million of additional borrowings available under the revolving credit facilities at June 30, 2021.

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The Amended Credit Facility contains customary restrictive covenants including, but not limited to, limitations on use of loan proceeds, limitations on the Company’s ability to pay dividends and repurchase stock, limitations on acquisitions and dispositions, and limitations on certain types of investments. The Amended Credit Facility also contains standard provisions relating to conditions of borrowing and customary events of default, including the non-payment of obligations by the Company and the bankruptcy of the Company.

Specific to the 2018 Revolving Facility, the Company is subject to a financial covenant regarding the Company’s maximum leverage ratio. If an event of default occurs, all amounts outstanding under the Amended Credit Facility agreement may be accelerated and become immediately due and payable. At June 30, 2021, we were in compliance with the covenants of the Amended Credit Facility.

As noted in Note 4, on February 25, 2021, we completed the sale of our Tile Coatings business. Proceeds from the close of the transaction, in addition to current cash balances, were used to pay down our term loan facility in the amount of $435.0 million on February 25, 2021. The debt pay-down reduced outstanding amounts of the Tranche B-1 Loans, Tranche B-2 Loans, and Tranche B-3 Loans, by $188.3 million, $124.7 million and $122.0 million, respectively. In conjunction with the prepayment of debt, we recorded a charge of $2.0 million in connection with the write-off of unamortized issuance costs, which is recorded within Loss on extinguishment of debt in our consolidated statement of operations for the six months ended June 30, 2021.

Receivable Sales Programs

We have several international programs to sell without recourse trade accounts receivable to financial institutions. During the third quarter of 2020, these programs were amended to include a domestic program. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. The Company continues to service the receivables sold in exchange for a fee. The servicing fee for the three and six months ended June 30, 2021, was immaterial. The program, whose maximum capacity is €85 million, is scheduled to expire on December 31, 2023. Generally, at the transfer date, the Company receives cash equal to approximately 80% of the value of the sold receivable. Cash proceeds at the transfer date from these arrangements are reflected in operating activities in our consolidated statement of cash flows. The proceeds from the deferred purchase price are reflected in investing activities.

The outstanding principal amount of receivables sold under this program, which has not yet been collected from the customer, was $45.1 million at June 30, 2021 and $24.5 million at December 31, 2020. The carrying amount of deferred purchase price was $9.9 million at June 30, 2021 and $9.8 million at December 31, 2020 and is recorded in Other receivables. Trade accounts receivable collected from customers to be remitted to financial institutions were $44.5 million at June 30, 2021 and $36.0 million at December 31, 2020 recorded in Accrued expenses and other current liabilities.

Activity from these programs for the six months ended June 30, 2021 and 2020 is detailed below:

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Trade accounts receivable sold to financial institutions	$	312,676	$	91,048
Cash proceeds from financial institutions (1)		250,927		58,794

(1)Excluded from the table above, in the six months ended June 30, 2020, our Tile Coatings business received cash proceeds from financial institutions of $47.3 million. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations.

Other Financing Arrangements

We maintain other lines of credit to provide global flexibility for our short-term liquidity requirements. These facilities are uncommitted lines for our international operations and totaled $25.0 million and $28.1 million at June 30, 2021 and December 31, 2020, respectively. The unused portions of these lines provided additional liquidity of $25.0 million at June 30, 2021 and December 31, 2020.

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9.    Financial Instruments

The following financial instrument assets (liabilities) are presented at their respective carrying amount, fair value and classification within the fair value hierarchy:

	June 30, 2021
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	143,717	$	143,717	$	143,717	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(356,978)		(356,149)		—		(356,149)		—
Other long-term notes payable		(3,889)		(2,342)		—		(2,342)		—
Cross currency swaps		495		495		—		495		—
Interest rate swaps		(19,385)		(19,385)		—		(19,385)		—
Foreign currency forward contracts, net		(3,454)		(3,454)		—		(3,454)		—

	December 31, 2020
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	174,077	$	174,077	$	174,077	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(793,731)		(783,143)		—		(783,143)		—
Other long-term notes payable		(3,706)		(1,887)		—		(1,887)		—
Cross currency swaps		(5,162)		(5,162)		—		(5,162)		—
Interest rate swaps		(24,694)		(24,694)		—		(24,694)		—
Foreign currency forward contracts, net		2,019		2,019		—		2,019		—

(1)The carrying value of the term loan facility is net of unamortized debt issuance costs of $1.4 million and $3.7 million for the period ended June 30, 2021, and December 31, 2020, respectively.

The fair value of cash and cash equivalents are based on the fair values of identical assets. The fair value of loans payable is based on the present value of expected future cash flows and approximate their carrying amounts due to the short periods to maturity. The fair value of the term loan facility is based on market price information and is measured using the last available bid price of the instrument on a secondary market. The fair value of revolving credit facility and other long-term notes payable are based on the present value of expected future cash flows and interest rates that would be currently available to the Company for issuance of similar types of debt instruments with similar terms and remaining maturities adjusted for the Company's performance risk. The fair values of our interest rate swaps and cross currency swaps are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair value of the foreign currency forward contracts are based on market prices for comparable contracts.

Derivative Instruments

The Company may use derivative instruments to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, on net investments in certain foreign subsidiaries and on certain existing assets and liabilities. However, the Company may choose not to hedge in countries where it is not economically feasible to enter into hedging arrangements or where hedging inefficiencies exist, such as timing of transactions.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is recorded as a component of Accumulated other comprehensive loss (“AOCL”) and reclassified into earnings in the same period during which the hedged transaction affects earnings.

The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt.

During the second quarter of 2018, the Company entered into variable to fixed interest rate swaps with a maturity date of February 14, 2024. The notional amount is $309.6 million at June 30, 2021. These swaps are hedging risk associated with the Tranche B-1, B-2 and B-3 Loans. These interest rate swaps are designated as cash flow hedges. As of June 30, 2021, the Company expects it will reclassify net losses of approximately $8.4 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of these derivatives.

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The Company has converted a U.S. dollar denominated, variable rate debt obligation into a Euro fixed rate obligation using receive-float, pay-fixed cross currency swaps in the second quarter of 2018. These swaps are hedging currency and interest rate risk associated with the Tranche B-3 Loan. These cross-currency swaps are designated as cash flow hedges. In conjunction with the pay-down of debt discussed in Note 8, we terminated all cross-currency swaps, except for one, which we de-designated and re-designated to hedge the remaining Tranche B-3 Loan after the interest rate swaps. Due to the original designation layering, the other comprehensive loss from the cross-currency swap at re-designation and the other comprehensive loss from the terminated cross-currency swaps were written-off as the interest payments were deemed remote. The Company paid counterparties $3.5 million to settle the terminated derivatives, resulting in a net $4.5 million being reclassified from AOCL to Interest expense as a result of this remote transaction. The remaining notional amount is $38.7 million at June 30, 2021, with a maturity date of February 14, 2024. As of June 30, 2021, the Company expects it will reclassify net losses of approximately $0.1 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of this derivative.

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the three months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	(385)	$	(1,934)	$	(1,841)	$	(824)	Interest expense
Cross currency swaps		(388)		(3,902)		(113)		851	Interest expense
					$	(1,954)	$	27	Total Interest expense
Cross currency swaps						(433)		(4,204)	Foreign currency losses (gains), net
					$	(433)	$	(4,204)	Total Foreign currency losses (gains), net

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the six months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	1,053	$	(14,808)	$	(3,613)	$	(1,322)	Interest expense
Cross currency swaps		2,308		1,356		(123)		2,019	Interest expense
					$	(3,736)	$	697	Total Interest expense
Cross currency swaps						2,494		(582)	Foreign currency losses (gains), net
					$	2,494	$	(582)	Total Foreign currency losses (gains), net

The total amounts of expense and the respective line items in which the effect of cash flow hedges is presented in the condensed consolidated statement of operations for the three and six months ended June 30, 2021 and 2020, are as follows:

	Three months ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Interest expense	$	5,006	$	6,177	$	14,443	$	11,707
Foreign currency losses (gains), net		3,209		1,143		4,367		(172)

Net Investment Hedges. For derivatives that are designated and qualify as net investment hedges, the gain or loss on the derivative is reported as a component of the currency translation adjustment in AOCL. These cross-currency swaps are designated as hedges of our net investment in European operations. Time value is excluded from the assessment of effectiveness and the amount of interest paid or received on the swaps will be recognized as an adjustment to interest expense in earnings over the life of the swaps.

In the second quarter of 2018, the Company entered into cross currency swap agreements under which we pay variable rate interest in Euros and receive variable rate interest in U.S. dollars. The net investment hedge was terminated in the fourth quarter of 2020. These swaps were hedging risk associated with the net investment in Euro denominated operations due to fluctuating exchange rates and were designated as net investment hedges. The changes in the fair value of these designated cross-currency swaps were recognized in AOCL.

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The amount of gain (loss) on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the three months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	(1,569)	$	—	$	612	Interest expense

The amount of gain on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the six months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	1,090	$	—	$	1,392	Interest expense

Derivatives Not Designated as Hedging Instruments

Foreign Currency Forward Contracts. We manage foreign currency risks principally by entering into forward contracts to mitigate the impact of currency fluctuations on transactions. These forward contracts are not formally designated as hedges. Gains and losses on these foreign currency forward contracts are netted with gains and losses from currency fluctuations on transactions arising from international trade and reported as Foreign currency losses (gains), net in the condensed consolidated statements of operations. We recognized net gains of $0.2 million and net losses of $6.1 million in the three and six months ended June 30, 2021, respectively, and net gains of $0.1 million and $0.4 million in the three and six months ended June 30, 2020, respectively, arising from the change in fair value of our financial instruments, which partially offset the related net gains and losses on international trade transactions. The notional amount of foreign currency forward contracts was $776.7 million at June 30, 2021 and $494.2 million at December 31, 2020.

The following table presents the effect on our condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020, respectively, of our foreign currency forward contracts:

	Amount of Gain (Loss)				Amount of Gain (Loss)
	Recognized in Earnings				Recognized in Earnings
	Three Months Ended				Six Months Ended
	June 30,				June 30,				Location of Gain (Loss) in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Foreign currency forward contracts	$	(1,280)	$	142	$	(7,546)	$	410	Foreign currency losses (gains), net

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Location and Fair Value Amount of Derivative Instruments

The following table presents the fair values of our derivative instruments on our condensed consolidated balance sheets. All derivatives are reported on a gross basis.

	June 30,		December 31,
(Dollars in thousands)	2021		2020		Balance Sheet Location
Asset derivatives:
Cross currency swaps	$	9	$	9	Other current assets
Cross currency swaps		486		—	Other non-current assets
Foreign currency forward contracts		1,118		2,649	Other current assets
Liability derivatives:
Interest rate swaps	$	(8,415)	$	(8,436)	Accrued expenses and other current liabilities
Interest rate swaps		(10,970)		(16,258)	Other non-current liabilities
Cross currency swaps		—		(67)	Accrued expenses and other current liabilities
Cross currency swaps		—		(5,104)	Other non-current liabilities
Foreign currency forward contracts		(4,572)		(630)	Accrued expenses and other current liabilities

10.    Income Taxes

Income tax expense for the six months ended June 30, 2021 was $16.1 million, or 31.0% of pre-tax income. Income tax expense for the six months ended June 30, 2020 was $5.3 million, or 27.5% of pre-tax income. The tax expense during the six months ended June 30, 2021 and June 30, 2020, as a percentage of pre-tax income, is higher than the U.S. federal statutory income tax rate of 21% primarily as a result of foreign statutory rate differences.

11.    Contingent Liabilities

We have recorded environmental liabilities of $5.7 million at June 30, 2021 and December 31, 2020, for costs associated with the remediation of certain of our current or former properties that have been contaminated. The balance at June 30, 2021 and December 31, 2020, were primarily comprised of liabilities related to a non-operating facility in Brazil, and for retained environmental obligations related to a site in the United States that was part of the sale of our North American and Asian metal powders product line in 2013. These costs include, but are not limited to, legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring, and related activities. The ultimate liability could be affected by numerous uncertainties, including the extent of contamination found, the required period of monitoring, the ultimate cost of required remediation, and other circumstances.

In November 2017, Suffolk County Water Authority filed a complaint, Suffolk County Water Authority v. The Dow Chemical Company et al., against the Company and a number of other companies in the U.S. Federal Court for the Eastern District of New York with regard to the product 1,4 dioxane. The plaintiff alleges, among other things, that the Suffolk County water supply is contaminated with 1,4 dioxane and that the defendants are liable for unspecified costs of cleanup and remediation of the water supply, among other damages. The Company has not manufactured 1,4 dioxane since 2008, denies the allegations related to liability for the plaintiff’s claims, and is vigorously defending this proceeding. Since December 2018, additional complaints were filed in the same court by 25 other New York municipal water suppliers and in New York State Supreme Court by one water supplier against the Company and others making substantially similar allegations regarding the contamination of their respective water supplies with 1,4 dioxane. The Company is likewise vigorously defending these additional actions. The Company currently does not expect the outcome of these proceedings to have a material adverse impact on its consolidated financial condition, results of operations, or cash flows, net of any insurance coverage. However, it is not possible to predict the ultimate outcome of these proceedings due to the unpredictable nature of litigation.

In addition to the proceedings described above, the Company and its consolidated subsidiaries are subject from time to time to various claims, lawsuits, investigations, and proceedings related to products, services, contracts, environmental, health and safety, employment, intellectual property, and other matters, including with respect to divested businesses. The outcome of such matters is unpredictable, our assessment of them may change, and resolution of them could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. We do not currently expect the resolution of such matters to materially affect the consolidated financial position, results of operations, or cash flows of the Company.

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12.    Retirement Benefits

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the three months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Three Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	3	$	333	$	294	$	—	$	—
Interest cost		1,881		2,388		343		343		68		133
Expected return on plan assets		(3,824)		(3,708)		(116)		(116)		—		—
Amortization of prior service cost		—		—		(21)		(4)		—		—
Net periodic benefit (credit) cost	$	(1,943)	$	(1,317)	$	539	$	517	$	68	$	133

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the six months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Six Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	6	$	672	$	579	$	—	$	1
Interest cost		3,761		4,775		678		673		136		265
Expected return on plan assets		(7,648)		(7,416)		(230)		(228)		—		—
Amortization of prior service cost		—		—		(41)		(9)		—		—
Net periodic benefit (credit) cost	$	(3,887)	$	(2,635)	$	1,079	$	1,015	$	136	$	266

Interest cost, expected return on plan assets and amortization of prior service cost are recorded in Miscellaneous income, net on the condensed consolidated statement of operations.

13.    Stock-Based Compensation

On May 3, 2018, our shareholders approved the 2018 Omnibus Incentive Plan (the “Plan”), which was adopted by the Board of Directors on February 22, 2018. The Plan’s purpose is to promote the Company’s long-term financial interests and growth by attracting, retaining and motivating high-quality key employees and directors, motivating such employees and directors to achieve the Company’s short- and long-range performance goals and objectives, and thereby align their interests with those of the Company’s shareholders. The Plan reserves 4,500,000 shares of common stock to be issued for grants of several different types of long-term incentives including stock options, stock appreciation rights, restricted awards, performance awards, other common stock-based awards, and dividend equivalent rights.

The Plan replaced the 2013 Omnibus Incentive Plan (the “Previous Plan”), and no future grants may be made under the Previous Plan. However, any outstanding awards or grants made under the Previous Plan will continue until the end of their specified terms.

In the first half of 2021, our Board of Directors granted 0.3 million stock options, 0.2 million performance share units, and 0.2 million restricted share units under the Plan.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following table details the weighted-average grant-date fair values and the assumptions used for estimating the fair values of stock option grants made during the six months ended June 30, 2021:

	Stock Options
Weighted-average grant-date fair value	$	5.94
Expected life, in years		6.0
Risk-free interest rate		0.76	%
Expected volatility		40.39	%

The weighted-average grant date fair value of our performance share units granted in the six months ended June 30, 2021, was $16.00. We measure the fair value of performance share units based on the closing market price of our common stock on the date of the grant. These shares are evaluated each reporting period for respective attainment rates against the performance criteria.

20

The weighted-average grant date fair value of our restricted share units granted in the six months ended June 30, 2021, was $15.07. We measure the fair value of restricted share units based on the closing market price of our common stock on the date of the grant. The restricted share units vest over three years.

We recognized stock-based compensation expense of $2.7 million and $5.1 million for the three and six months ended June 30, 2021, respectively, and $2.7 million and $5.5 million for the three and six months ended June 30, 2020, respectively. At June 30, 2021, unearned compensation cost related to the unvested portion of all stock-based compensation awards was approximately $11.9 million and is expected to be recognized over the remaining vesting period of the respective grants, through the first quarter of 2024.

14.    Restructuring and Optimization Programs

Total restructuring charges were $2.0 million and $7.2 million for the three and six months ended June 30, 2021, respectively, and $8.6 million and $9.8 million for the three and six months ended June 30, 2020, respectively. As discussed in Note 4, our Tile Coatings business was classified as held-for-sale during the fourth quarter of 2019. As such, there were additional restructuring charges of $0.3 million for the six months ended June 30, 2021 and $1.7 million and $2.0 million for the three and six months ended June 30, 2020, respectively, classified as Net income from discontinued operations, net of income taxes.

Organizational Optimization Plan

In conjunction with the sale of the Tile Coatings business, discussed in Note 4, we developed our Organizational Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. As a result of these actions, the Company expects to incur total charges of approximately $5.7 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized throughout the remainder of 2021. Charges associated with the program were $1.0 million and $3.1 million for the three and six months ended June 30, 2021, respectively.

Americas Manufacturing Optimization Plan

In the second quarter of 2019, we developed our Americas Manufacturing Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. The Americas Manufacturing Optimization Plan is focused on the construction of a new manufacturing center of excellence located in Villagran, Mexico. We are in the process of consolidating two plants located in the United States and two sites in Latin America into the expanded Villagran location. As a result of these actions, the Company expects to incur total charges of approximately $9.5 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized within the next 12 months. Charges associated with the program were $0.7 million and $2.4 million for the three and six months ended June 30, 2021, respectively, and $0.8 million and $1.0 million for the three and six months ended June 30, 2020, respectively.

Global Optimization Plan

The program involves our global operations and certain functions and initiatives to increase operational efficiencies, some of which is associated with integration of our acquisitions. Actions associated with the Global Optimization Plan were substantially completed, and as such, we do not anticipate material charges related to this plan for the remainder of 2021. Charges associated with the program were $0.3 million and $1.7 million for the three and six months ended June 30, 2021, respectively, and $7.8 million and $8.8 million for the three and six months ended June 30, 2020, respectively.

The charges associated with these programs are further summarized below.

	Employee		Other
(Dollars in thousands)	Severance		Costs		Total
Balances at December 31, 2020	$	5,510	$	4,460	$	9,970
Restructuring charges		5,439		1,715		7,154
Cash payments		(6,005)		(1,025)		(7,030)
Balances at June 30, 2021	$	4,944	$	5,150	$	10,094

We expect to make cash payments to settle the remaining liability for employee severance benefits and other costs over the next twelve months, except where legal or contractual obligations would require it to extend beyond that period.

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15.    Earnings Per Share

Details of the calculation of basic and diluted earnings per share are shown below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share amounts)	2021		2020		2021		2020
Basic earnings per share computation:
Income (loss) from continuing operations	$	17,427	$	(1,926)	$	35,985	$	13,986
Less: Net income attributable to noncontrolling interests from continuing operations		382		309		755		342
Net income (loss) attributable to Ferro Corporation from continuing operations		17,045		(2,235)		35,230		13,644
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests from discontinued operations		—		67		64		44
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.21	$	(0.03)	$	0.43	$	0.17
Diluted earnings per share computation:
Net income (loss) attributable to Ferro Corporation from continuing operations	$	17,045	$	(2,235)	$	35,230	$	13,644
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Assumed exercise of stock options		562		543		478		799
Assumed satisfaction of restricted stock unit conditions		123		93		169		109
Assumed satisfaction of performance share unit conditions		159		45		128		200
Weighted-average diluted shares outstanding		83,509		82,927		83,356		83,279
Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.20	$	(0.03)	$	0.42	$	0.16

The number of anti-dilutive shares were 2.1 million and 2.2 million for the three and six months ended June 30, 2021, respectively, and 2.7 million and 2.3 million for the three and six months ended June 30, 2020, respectively. These shares are excluded from the calculation of diluted earnings per share due to their anti-dilutive impact.

16.    Share Repurchase Programs

The Company’s Board of Directors has approved share repurchase programs under which the Company is authorized to repurchase up to $150 million of the Company’s outstanding shares of common stock on the open market, including through a Rule 10b5-1 plan, or in privately negotiated transactions.

The timing and amount of shares to be repurchased will be determined by the Company, based on evaluation of market and business conditions, share price, and other factors, including limitations contained in the Merger Agreement with Prince. The share repurchase programs do not obligate the Company to repurchase any dollar amount or number of common shares, and may be suspended or discontinued at any time.

As of June 30, 2021, $46.2 million remains authorized under the programs for the repurchase of common stock.

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17.    Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, were as follows:

	Three Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at March 31, 2020		$	1,206	$	(115,847)	$	(22,047)	$	(136,688)
Other comprehensive income (loss) before reclassifications, before tax			—		3,388		(5,836)		(2,448)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		4,177		4,177
Current period other comprehensive income (loss), before tax			—		3,388		(1,659)		1,729
Tax effect			—		(505)		(99)		(604)
Current period other comprehensive income (loss), net of tax			—		3,893		(1,560)		2,333
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at March 31, 2021		$	3,329	$	(131,509)	$	(15,641)	$	(143,821)
Other comprehensive income (loss) before reclassifications, before tax			—		1,564		(773)		791
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			(1)		—		—		(1)
Cash flow hedge income (loss), before tax			—		—		2,387		2,387
Current period other comprehensive income (loss), before tax			(1)		1,564		1,614		3,177
Tax effect			—		338		331		669
Current period other comprehensive income (loss), net of tax			(1)		1,226		1,283		2,508
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

	Six Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at December 31, 2019		$	1,206	$	(97,575)	$	(13,007)	$	(109,376)
Other comprehensive income (loss) before reclassifications, before tax			—		(14,449)		(13,452)		(27,901)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		(115)		(115)
Current period other comprehensive income (loss), before tax			—		(14,449)		(13,567)		(28,016)
Tax effect			—		(70)		(2,967)		(3,037)
Current period other comprehensive income (loss), net of tax			—		(14,379)		(10,600)		(24,979)
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at December 31, 2020		$	3,199	$	(70,482)	$	(22,427)	$	(89,710)
Other comprehensive income (loss) before reclassifications, before tax			—		(76,466)		3,361		(73,105)
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			129		—		—		129
Currency translation reclassification to income on divestiture			—		17,305		—		17,305
Amount reclassification to income (remote transaction)			—		—		4,509		4,509
Cash flow hedge income (loss), before tax			—		—		1,242		1,242
Current period other comprehensive income (loss), before tax			129		(59,161)		9,112		(49,920)
Tax effect			—		640		1,043		1,683
Current period other comprehensive income (loss), net of tax			129		(59,801)		8,069		(51,603)
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

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18.    Reporting for Segments

Net sales to external customers by segment are presented in the table below. Sales between segments were not material.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	194,909	$	131,672	$	379,731	$	287,107
Color Solutions		99,422		73,129		202,958		170,020
Total net sales	$	294,331	$	204,801	$	582,689	$	457,127

Each segment’s gross profit and reconciliation to income before income taxes are presented in the table below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	59,521	$	36,119	$	121,397	$	83,936
Color Solutions		36,692		26,985		70,360		60,772
Other cost of sales		(1,378)		640		(1,819)		(226)
Total gross profit		94,835		63,744		189,938		144,482
Selling, general and administrative expenses		59,026		50,541		112,864		106,587
Restructuring and impairment charges		1,970		8,619		7,154		9,784
Other expense, net		7,910		6,310		17,789		8,808
Income (loss) before income taxes	$	25,929	$	(1,726)	$	52,131	$	19,303

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

Overview

Net sales for the three months ended June 30, 2021, increased by $89.5 million, or 43.7%, compared with the prior-year same period. Net sales increased by $63.2 million in Functional Coatings and $26.3 million in Color Solutions. During the three months ended June 30, 2021, gross profit increased $31.1 million, or 48.8%, compared with the prior-year same period; as a percentage of net sales, it increased approximately 110 basis points to 32.2%. Our total gross profit for the second quarter of 2021 was $94.8 million, compared with $63.7 million for the three months ended June 30, 2020. The increase in gross profit was attributable to higher gross profit in Functional Coatings of $23.4 million and in Color Solutions of $9.7 million.

For the three months ended June 30, 2021, selling, general and administrative (“SG&A”) expenses increased $8.5 million, or 16.8%, compared with the prior-year same period. As a percentage of net sales, it decreased approximately 460 basis points to 20.1%.

For the three months ended June 30, 2021, net income was $15.9 million, compared with net loss of $5.2 million for the prior-year same period, and net income attributable to common shareholders was $15.5 million, compared with net loss attributable to common shareholders of $5.5 million for the prior-year same period. Income from continuing operations was $17.4 million for the three months ended June 30, 2021, compared with loss from continuing operations of $1.9 million for the prior-year same period.

Outlook

Ferro continued to experience higher demand across all business segments in the quarter as customer markets recover. The impact of the COVID pandemic through the remainder of 2021 is unknown, even with the rollout of vaccines. Ferro expects to continue to benefit from strategic actions taken prior to and during the pandemic to optimize our business, invest in technology platforms, align with macrotrends, and focus on higher-margin, higher-growth markets, all of which contributed to gross margin expansion in the second quarter of 2021.

Ferro provides products and services that are essential to our customers as they innovate to address trends in their markets and develop next generation products. We sell our products and services in multiple markets and geographies around the world, which limits exposure to any one industry or region. In addition, we serve a diverse set of industries, including automotive, construction, appliances, healthcare, food and beverage, information technology, energy and defense. COVID-related behavior changes have accelerated demand for certain products, especially those in industries supporting mobility, entertainment and personal technology, smart appliances, construction, and sustainable product packaging.

Ferro continues to maintain protocols for the safety and well-being of our personnel. We monitor the impact of the outbreak of COVID-19 on our business, including how it may impact our customers, employees, supply chain and distribution network and take action, as appropriate, to address these circumstances. In some areas around the world, government mandates have been lifted and economic conditions have improved in certain sectors of the economy relative to 2020. Recently, some regions have experienced increasing numbers of COVID-19 cases, and if this continues and if public authorities intensify efforts to contain the spread of COVID-19, normal business activity may be further disrupted, and economic conditions could weaken.

In 2021, following the completion of the sale of our Tile Coatings Business, we are transitioning to a smaller, more agile and more streamlined global business with a more coherent and focused portfolio aligned with evolving megatrends. On May 11, 2021, Ferro announced that it has entered into a definitive agreement to be acquired by Prince International Corporation, a portfolio company of American Securities LLC. The transaction is expected to close in the first quarter of 2022.

We will continue to refine our manufacturing footprint, optimize logistics and streamline sourcing and procurement in our operations around the world.

Foreign currency rates may continue to be volatile through 2021 and changes in interest rates could adversely impact reported results. We continue to expect cash flow from operating activities to be positive for 2021.

Factors that could adversely affect our future performance include those described under the heading “Risk Factors” in Item 1A of Part I of the Annual Report on Form 10-K for the year ended December 31, 2020.

‎

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Results of Operations - Consolidated

Comparison of the three months ended June 30, 2021 and 2020

For the three months ended June 30, 2021, net income from continuing operations was $17.4 million, compared with net loss of $1.9 million for the three months ended June 30, 2020. For the three months ended June 30, 2021, net income attributable to common shareholders was $15.5 million, or earnings per share of $0.19, compared with net loss of $5.5 million, or loss per share of $0.07, for the three months ended June 30, 2020.

Net Sales

	Three Months Ended
	June 30,
(Dollars in thousands)	2021			2020			$ Change		% Change
Net sales	$	294,331		$	204,801		$	89,530	43.7	%
Cost of sales		199,496			141,057			58,439	41.4	%
Gross profit	$	94,835		$	63,744		$	31,091	48.8	%
Gross profit as a % of net sales		32.2	%		31.1	%

Net sales increased by $89.5 million, or 43.7%, for the three months ended June 30, 2021, compared with the prior-year same period, driven by higher sales in Functional Coatings and Color Solutions of $63.2 million and $26.3 million, respectively. The increase in net sales was driven by favorable volume and mix of $78.0 million, favorable foreign currency impacts of $9.5 million and higher product pricing of $2.0 million.

Gross Profit

Gross profit increased $31.1 million, or 48.8%, for the three months ended June 30, 2021, compared with the prior-year same period. As a percentage of net sales, gross profit increased approximately 110 basis points to 32.2%. The increase in gross profit was primarily attributable to an increase in Functional Coatings and Color Solutions of $23.4 million and $9.7 million, respectively. The increase in gross profit was primarily driven by favorable sales volume and mix of $20.1 million, favorable manufacturing costs of $4.2 million, favorable foreign currency impacts of $3.6 million, higher product pricing of $2.0 million and lower raw material costs of $1.2 million.

Geographic Revenues

The following table presents our sales on the basis of where sales originated.

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Geographic Revenues on a sales origination basis
EMEA	$	130,527	$	78,945	$	51,582	65.3	%
United States		122,060		95,013		27,047	28.5	%
Asia Pacific		41,744		30,843		10,901	35.3	%
Net sales	$	294,331	$	204,801	$	89,530	43.7	%

The increase in net sales of $89.5 million, compared with the prior-year same period, was driven by increases in sales from all regions. The increase in sales from EMEA was attributable to higher sales in Functional Coatings and Color Solutions of $41.5 million and $10.1 million, respectively. The increase in sales from the Americas was attributable to higher sales in Color Solutions and Functional Coatings of $13.9 million and $13.1 million, respectively. The increase in sales from Asia Pacific was attributable to higher sales in Functional Coatings and Color Solutions of $8.6 million and $2.3 million, respectively.

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Selling, General and Administrative (“SG&A”) Expenses

The following table includes SG&A component changes between 2021 and 2020.

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Personnel expenses (excluding R&D personnel expenses)	$	22,266	$	19,779		2,487	12.6	%
Research and development expenses		7,932		8,331		(399)	(4.8)	%
Business development		7,599		5,303		2,296	43.3	%
Incentive compensation		1,883		1,971		(88)	(4.5)	%
Stock-based compensation		2,085		2,183		(98)	(4.5)	%
Intangible asset amortization		1,712		1,411		301	21.3	%
Pension and other postretirement benefits		333		183		150	82.0	%
Bad debt		13		(40)		53	NM	%
All other expenses		15,203		11,420		3,783	33.1	%
Selling, general and administrative expenses	$	59,026	$	50,541	$	8,485	16.8	%

SG&A expenses were $8.5 million higher in the three months ended June 30, 2021, compared with the prior-year same period. The higher SG&A expenses compared to the prior-year same period are primarily driven by other expense, primarily associated with consulting and professional fees, higher personnel expenses and business development costs.

The following table presents SG&A expenses attributable to sales, research and development and operations costs as strategic services and other SG&A costs as functional services.

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Strategic services	$	23,674	$	21,495	$	2,179	10.1	%
Functional services		31,384		24,892		6,492	26.1	%
Incentive compensation		1,883		1,971		(88)	(4.5)	%
Stock-based compensation		2,085		2,183		(98)	(4.5)	%
Selling, general and administrative expenses	$	59,026	$	50,541	$	8,485	16.8	%

Restructuring and Impairment Charges

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Employee severance	$	1,590	$	7,174	$	(5,584)	(77.8)	%
Other restructuring costs		380		1,445		(1,065)	(73.7)	%
Restructuring and impairment charges	$	1,970	$	8,619	$	(6,649)	(77.1)	%

Restructuring and impairment charges decreased in the three months ended June 30, 2021, compared with the prior-year same period. The decrease primarily relates to previously disclosed plans being substantially completed with any remaining costs expected to be recognized within the next 12 months. Refer to Note 14 to the consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for a discussion of our optimization plans and related costs.

Interest Expense

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Interest expense	$	5,397	$	6,383	$	(986)	(15.4)	%
Amortization of bank fees		498		866		(368)	(42.5)	%
Interest swap amortization		(316)		(316)		—	—	%
Interest capitalization		(573)		(756)		183	(24.2)	%
Interest expense	$	5,006	$	6,177	$	(1,171)	(19.0)	%

27

Interest expense decreased in the three months ended June 30, 2021, compared with the prior-year same period. The decrease in interest expense was primarily due to a decrease in the average long-term debt balance, partially offset by higher average interest rate during the three months ended June 30, 2021, compared with the prior-year same period.

Income Tax Expense

Income tax expense for the three months ended June 30, 2021 was $8.5 million, or 32.8% of pre-tax income. Income tax expense for the three months ended June 30, 2020 was $0.2 million, or (11.6%) of pre-tax loss. The tax expense for the three months ended June 30, 2021, as a percentage of pre-tax income, is higher than the U.S. federal statutory income tax rate of 21% primarily as a result of foreign statutory rate differences. The tax expense during the three months ended June 30, 2020, as a percentage of pre-tax loss, is lower than the U.S. federal statutory income tax rate of 21% primarily as a result of tax rate changes enacted during 2020.

Results of Operations - Segment Information

Comparison of the three months ended June 30, 2021 and 2020

Functional Coatings

	Three Months Ended											Change due to
	June 30,												Volume /
(Dollars in thousands)	2021			2020			$ Change		% Change		Price		Mix		Currency		Other
Segment net sales	$	194,909		$	131,672		$	63,237	48.0	%	$	1,403	$	55,739	$	6,095	$	—
Segment gross profit		59,521			36,119			23,402	64.8	%		1,403		12,128		2,054		7,817
Gross profit as a % of segment net sales		30.5	%		27.4	%

Net sales increased compared with the prior-year same period, primarily driven by higher sales in porcelain enamel, decoration, automotive, industrial, and electronics products of $17.1 million, $16.9 million, $13.0 million, $8.8 million and $7.4 million, respectively. The increase in net sales was driven by favorable volume and mix of $55.7 million, foreign currency impacts of $6.1 million and increased product pricing of $1.4 million. Gross profit increased from the prior-year same period primarily due to favorable volume and mix of $12.1 million, favorable manufacturing costs of $6.1 million, favorable foreign currency impacts of $2.1 million, favorable raw material costs of $1.7 million and increased product pricing of $1.4 million.

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Segment net sales by Region
EMEA	$	92,569	$	51,071	$	41,498	81.3	%
Americas		72,046		58,868		13,178	22.4	%
Asia Pacific		30,294		21,733		8,561	39.4	%
Total	$	194,909	$	131,672	$	63,237	48.0	%

The net sales increase of $63.2 million was primarily driven by higher sales from all regions. The increase in sales from EMEA was primarily attributable to higher sales of decoration, industrial, porcelain enamel, automotive and electronics products of $11.9 million, $9.4 million, $8.2 million, $6.7 million and $5.3 million, respectively. The increase in sales from the Americas was primarily attributable to higher sales of porcelain enamel, automotive, electronics and decoration products of $7.0 million, $3.5 million, $1.4 million and $1.3 million, respectively. The increase in sales from Asia Pacific was primarily attributable to higher sales of decoration, automotive, porcelain enamel and electronics products of $3.7 million, $2.8 million, $1.9 million and $0.7 million, respectively, partially offset by lower sales of industrial products of $0.5 million.

Color Solutions

	Three Months Ended											Change due to
	June 30,												Volume /
(Dollars in thousands)	2021			2020			$ Change		% Change		Price		Mix		Currency		Other
Segment net sales	$	99,422		$	73,129		$	26,293	36.0	%	$	589	$	22,281	$	3,423	$	—
Segment gross profit		36,692			26,985			9,707	36.0	%		589		7,926		1,568		(376)
Gross profit as a % of segment net sales		36.9	%		36.9	%

28

Net sales increased compared with the prior-year same period, primarily driven by higher sales of pigment, surface technology and dispersions and colorants products of $19.8 million, $4.3 million and $2.2 million, respectively. The increase in net sales was driven by favorable volume and mix of $22.3 million, favorable foreign currency impacts of $3.4 million and increased product pricing of $0.6 million. Gross profit increased from the prior-year same period, primarily due to favorable sales volume and mix of $7.9 million, favorable foreign currency impacts of $1.6 million, increased product pricing of $0.6 million and favorable manufacturing costs of $0.1 million, partially offset by unfavorable raw material costs of $0.5 million.

	Three Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Segment net sales by Region
EMEA	$	37,958	$	27,874	$	10,084	36.2	%
Americas		50,014		36,145		13,869	38.4	%
Asia Pacific		11,450		9,110		2,340	25.7	%
Total	$	99,422	$	73,129	$	26,293	36.0	%

The net sales increase of $26.3 million was driven by higher sales from all regions. The increase in sales from the Americas was primarily driven by increased sales of pigment, surface technology and dispersions and colorants products of $7.6 million, $5.2 million and $1.1 million, respectively. The increase in sales from EMEA was primarily attributable to higher sales of pigment and dispersions and colorants products of $9.0 million and $1.1 million, respectively. The increase in sales from Asia Pacific was attributable to increased sales of pigment products of $3.2 million, partially offset by lower sales of surface technology of $0.9 million, respectively.

Comparison of the six months ended June 30, 2021 and 2020

For the six months ended June 30, 2021, net income from continuing operations was $36.0 million, compared with $14.0 million for the six months ended June 30, 2020. For the six months ended June 30, 2021, net income attributable to common shareholders was $123.5 million, or earnings per share of $1.50, compared with net income attributable to common shareholders of $10.6 million, or earnings per share of $0.13, for the six months ended June 30, 2020.

Net Sales

	Six Months Ended
	June 30,
(Dollars in thousands)	2021			2020			$ Change		% Change
Net sales	$	582,689		$	457,127		$	125,562	27.5	%
Cost of sales		392,751			312,645			80,106	25.6	%
Gross profit	$	189,938		$	144,482		$	45,456	31.5	%
Gross profit as a % of net sales		32.6	%		31.6	%

Net sales increased by $125.6 million, or 27.5%, for the six months ended June 30, 2021, compared with the prior-year same period, driven by higher sales in Functional Coatings and Color Solutions of $92.6 million and $33.0 million, respectively. The increase in net sales was driven by favorable volume and mix of $102.6 million, favorable foreign currency impacts of $18.8 million and higher product pricing of $4.2 million.

Gross Profit

Gross profit increased $45.5 million, or 31.5%, for the six months ended June 30, 2021, compared with the prior-year same period. As a percentage of net sales, gross profit increased approximately 100 basis points to 32.6%. The increase in gross profit was primarily attributable to an increase in Functional Coatings of $37.5 million and in Color Solutions of $9.6 million. The increase in gross profit was primarily driven by favorable sales volume and mix of $29.7 million, favorable foreign currency impacts of $6.5 million, higher product pricing of $4.2 million, lower raw material costs of $3.4 million and favorable manufacturing costs of $1.7 million.

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Geographic Revenues

The following table presents our sales on the basis of where sales originated.

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Geographic Revenues on a sales origination basis
EMEA	$	256,941	$	192,691	$	64,250	33.3	%
Americas		243,832		202,541		41,291	20.4	%
Asia Pacific		81,916		61,895		20,021	32.3	%
Net sales	$	582,689	$	457,127	$	125,562	27.5	%

The increase in net sales of $125.6 million, compared with the prior-year same period, was driven by increases in sales from all regions. The increase in sales from EMEA was attributable to higher sales in Functional Coatings and Color Solutions of $53.0 million and $11.3 million, respectively. The increase in sales from the Americas was attributable to higher sales in Functional Coatings and Color Solutions of $23.3 million and $18.0 million, respectively. The increase in sales from Asia Pacific was attributable to higher sales in Functional Coatings and Color Solutions of $16.3 million and $3.7 million, respectively.

Selling, General and Administrative (“SG&A”) Expenses

The following table includes SG&A component changes between 2021 and 2020.

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Personnel expenses (excluding R&D personnel expenses)	$	44,612	$	42,528	$	2,084	4.9	%
Research and development expenses		17,115		18,418		(1,303)	(7.1)	%
Business development		11,247		5,838		5,409	92.7	%
Incentive compensation		4,000		4,091		(91)	(2.2)	%
Stock-based compensation		4,715		4,942		(227)	(4.6)	%
Intangible asset amortization		3,062		3,089		(27)	(0.9)	%
Pension and other postretirement benefits		672		341		331	97.1	%
Bad debt		42		96		(54)	(56.3)	%
All other expenses		27,399		27,244		155	0.6	%
Selling, general and administrative expenses	$	112,864	$	106,587	$	6,277	5.9	%

SG&A expenses were $6.3 million higher in the six months ended June 30, 2021, compared with the prior-year same period. The higher SG&A expenses compared to the prior-year same period are primarily driven by higher business development costs and personnel expenses, partially offset by lower research and development expenses.

The following table presents SG&A expenses attributable to sales, research and development and operations costs as strategic services and other SG&A costs as functional services.

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Strategic services	$	48,128	$	47,111	$	1,017	2.2	%
Functional services		56,021		50,443		5,578	11.1	%
Incentive compensation		4,000		4,091		(91)	(2.2)	%
Stock-based compensation		4,715		4,942		(227)	(4.6)	%
Selling, general and administrative expenses	$	112,864	$	106,587	$	6,277	5.9	%

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Restructuring and Impairment Charges

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Employee severance	$	5,439	$	7,832	$	(2,393)	(30.6)	%
Other restructuring costs		1,715		1,952		(237)	(12.1)	%
Restructuring and impairment charges	$	7,154	$	9,784	$	(2,630)	(26.9)	%

Restructuring and impairment charges decreased in the six months ended June 30, 2021, compared with the prior-year same period. The decrease primarily relates to previously disclosed plans being substantially completed with any remaining costs expected to be recognized within the next 12 months. Refer to Note 14 to the consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for a discussion of our optimization plans and related costs.

Interest Expense

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Interest expense	$	15,122	$	12,229	$	2,893	23.7	%
Amortization of bank fees		1,102		1,795		(693)	(38.6)	%
Interest swap amortization		(632)		(632)		—	—	%
Interest capitalization		(1,149)		(1,685)		536	(31.8)	%
Interest expense	$	14,443	$	11,707	$	2,736	23.4	%

Interest expense increased in the six months ended June 30, 2021, compared with the prior-year same period. The increase in interest expense was primarily due to incremental interest expense recognized associated with the termination of certain cross-currency swap instruments and higher average interest rate, partially offset by a decrease in the average long-term debt balance during the six months ended June 30, 2021, compared with the prior-year same period.

Income Tax Expense

Income tax expense for the six months ended June 30, 2021 was $16.1 million, or 31.0% of pre-tax income. Income tax expense for the six months ended June 30, 2020 was $5.3 million, or 27.5% of pre-tax income. The tax expense for the six months ended June 30, 2021 and June 30, 2020, as a percentage of pre-tax income, is higher than the U.S. federal statutory income tax rate of 21% primarily as a result of foreign statutory rate differences.

Results of Operations - Segment Information

Comparison of the six months ended June 30, 2021 and 2020

Functional Coatings

	Six Months Ended											Change due to
	June 30,												Volume /
(Dollars in thousands)	2021			2020			$ Change		% Change		Price		Mix		Currency		Other
Segment net sales	$	379,731		$	287,107		$	92,624	32.3	%	$	3,980	$	76,756	$	11,888	$	—
Segment gross profit		121,397			83,936			37,461	44.6	%		3,980		22,691		3,984		6,806
Gross profit as a % of segment net sales		32.0	%		29.2	%

Net sales increased compared with the prior-year same period, primarily driven by higher sales in porcelain enamel, automotive, decoration, electronics and industrial products of $26.9 million, $19.8 million, $16.5 million, $14.8 million and $14.6 million, respectively. The increase in net sales was driven by favorable volume and mix of $76.7 million, foreign currency impacts of $11.9 million and increased product pricing of $4.0 million. Gross profit increased from the prior-year same period primarily due to favorable volume and mix of $22.7 million, favorable manufacturing costs of $4.3 million, increased product pricing of $4.0 million, favorable foreign currency impacts of $4.0 million and favorable raw material costs of $2.5 million.

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	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Segment net sales by Region
EMEA	$	179,941	$	126,928	$	53,013	41.8	%
Americas		139,964		116,690		23,274	19.9	%
Asia Pacific		59,826		43,489		16,337	37.6	%
Total	$	379,731	$	287,107	$	92,624	32.3	%

The net sales increase of $92.6 million was primarily driven by higher sales from all regions. The increase in sales from EMEA was primarily attributable to higher sales of porcelain enamel, industrial, decoration, automotive and electronics products of $12.2 million, $12.2 million, $11.1 million, $9.5 million and $8.0 million, respectively. The increase in sales from the Americas was primarily attributable to higher sales of porcelain enamel, electronics, automotive and decoration products of $10.8 million, $5.7 million, $5.5 million and $1.5 million, respectively. The increase in sales from Asia Pacific was primarily attributable to increased sales of automotive, decoration, porcelain enamel, industrial and electronics products of $4.8 million, $3.9 million, $3.9 million, $2.6 million and $1.1 million, respectively.

Color Solutions

	Six Months Ended											Change due to
	June 30,												Volume /
(Dollars in thousands)	2021			2020			$ Change		% Change		Price		Mix		Currency		Other
Segment net sales	$	202,958		$	170,020		$	32,938	19.4	%	$	192	$	25,839	$	6,907	$	—
Segment gross profit		70,360			60,772			9,588	15.8	%		192		7,016		2,557		(177)
Gross profit as a % of segment net sales		34.7	%		35.7	%

Net sales increased compared with the prior-year same period, primarily driven by higher sales of pigment, surface technology and dispersions and colorants products of $23.6 million, $6.3 million and $3.0 million, respectively. The increase in net sales was driven by favorable volume and mix of $25.8 million, favorable foreign currency impacts of $6.9 million and increased product pricing of $0.2 million. Gross profit increased from the prior-year same period, primarily due to favorable sales volume and mix of $7.0 million, favorable foreign currency impacts of $2.6 million, favorable raw material costs of $0.9 million and increased product pricing of $0.2 million, partially offset by unfavorable manufacturing costs of $1.1 million.

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Segment net sales by Region
EMEA	$	77,000	$	65,763	$	11,237	17.1	%
Americas		103,868		85,851		18,017	21.0	%
Asia Pacific		22,090		18,406		3,684	20.0	%
Total	$	202,958	$	170,020	$	32,938	19.4	%

The net sales increase of $32.9 million was driven by higher sales from all regions. The increase in sales from the Americas was primarily driven by increased sales of pigment, surface technology and dispersions and colorants products of $8.4 million, $8.0 million and $1.6 million, respectively. The increase in sales from EMEA was primarily attributable to higher sales of pigment and dispersions and colorants products of $9.8 million and $1.4 million, respectively. The increase in sales from Asia Pacific was attributable to increased sales of pigment products of $5.4 million, partially offset by lower sales of surface technology of $1.7 million.

Summary of Cash Flows for the six months ended June 30, 2021 and 2020

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change
Net cash used in operating activities	$	(46,410)	$	(104,561)	$	58,151
Net cash provided by investing activities		452,018		48,376		403,642
Net cash provided by (used in) financing activities		(442,763)		22,519		(465,282)
Effect of exchange rate changes on cash and cash equivalents		(1,405)		(505)		(900)
Decrease in cash and cash equivalents	$	(38,560)	$	(34,171)	$	(4,389)

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The following table includes details of net cash provided by operating activities.

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020		$ Change
Cash flows from operating activities:
Net income	$	124,291	$	10,969	$	113,322
Loss (gain) on sale of assets		(98,746)		506		(99,252)
Depreciation and amortization		19,817		20,854		(1,037)
Interest amortization		1,102		1,795		(693)
Restructuring and impairment		124		6,916		(6,792)
Loss on extinguishment of debt		1,981		—		1,981
Accounts receivable		(96,052)		(51,017)		(45,035)
Inventories		(9,183)		(34,771)		25,588
Accounts payable		7,696		(45,089)		52,785
Other current asset, liabilities and adjustments, net		2,560		(14,724)		17,284
Net cash used in operating activities	$	(46,410)	$	(104,561)	$	58,151

Cash flows from operating activities. Cash flows from operating activities increased $58.2 million during the six months ended June 30, 2021 compared with the prior-year same period. The increase in cash from operating activities was primarily due to lower cash outflows for net working capital of $33.3 million and an increase in net income, net of the gain on the sale of the Tile Coatings business.

Cash flows used in investing activities. Cash flows from investing activities increased $403.6 million during the six months ended June 30, 2021 compared with the prior-year same period. The increase in cash from investing activities was primarily due to the proceeds from the sale of the Tile Coatings business of $415.2 million, partially offset by higher cash outflows for capital expenditures of $5.6 million and lower collection of financing receivables of $3.3 million in the six months ended June 30, 2021, compared to the prior-year same period.

Cash flows from financing activities. Cash flows from financing activities decreased $465.3 million during the six months ended June 30, 2021 compared with the prior-year same period. The decrease in cash from financing activities was primarily due to increased principal payments on the Amended Credit Facility of $435.0 million, decreased net proceeds from the revolving credit facilities of $16.6 million and decreased net proceeds from loans payable of $11.5 million compared to the prior-year same period.

Capital Resources and Liquidity

Refer to Note 8 to the consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for a discussion of major debt instruments that were outstanding during 2021.

Off Balance Sheet Arrangements

Consignment and Customer Arrangements for Precious Metals.  We use precious metals, primarily silver, in the production of some of our products. We obtain precious metals from financial institutions under consignment agreements. The financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign and the period of consignment. These fees were $0.8 million and $0.6 million for the three months ended June 30, 2021 and 2020, respectively, and $1.4 million and $1.7 million for the six months ended June 30, 2021 and 2020, respectively. We had on hand precious metals owned by participants in our precious metals program of $100.7 million at June 30, 2021, and $87.2 million at December 31, 2020, measured at fair value based on market prices for identical assets.

The consignment agreements under our precious metals program involve short-term commitments that typically mature within 30 to 90 days of each transaction and are typically renewed on an ongoing basis. As a result, the Company relies on the continued willingness of financial institutions to participate in these arrangements to maintain this source of liquidity. On occasion, we have been required to deliver cash collateral. While no deposits were outstanding at June 30, 2021, or December 31, 2020, we may be required to furnish cash collateral in the future based on the quantity and market value of the precious metals under consignment and the amount of collateral-free lines provided by the financial institutions. The amount of cash collateral required is subject to review by the financial institutions and can be changed at any time at their discretion, based in part on their assessment of our creditworthiness.

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Bank Guarantees and Standby Letters of Credit

At June 30, 2021, the Company and its subsidiaries had bank guarantees and standby letters of credit issued by financial institutions that totaled $4.8 million. These agreements primarily relate to Ferro’s insurance programs, foreign energy purchase contracts and foreign tax payments.

Liquidity Requirements

Our primary sources of liquidity are available cash and cash equivalents, available lines of credit under the revolving credit facility, and cash flows from operating activities. As of June 30, 2021, we had $143.7 million of cash and cash equivalents. Cash generated in the U.S. is generally used to pay down amounts outstanding under our revolving credit facility and for general corporate purposes, including acquisitions. If needed, we could repatriate the majority of cash held by foreign subsidiaries without the need to accrue and pay U.S. income taxes. We do not anticipate a liquidity need requiring such repatriation of these funds to the U.S.

On February 25, 2021, we completed the sale of our Tile Coatings business to Pigments Spain, S.L., a company of the Esmalglass-Itaca-Fritta group (the “Buyer”), which is a portfolio company of certain Lone Star Funds, for $460.0 million in cash, subject to post-closing adjustments. The transaction resulted in net proceeds of approximately $415.2 million after expenses. Proceeds from the close of the transaction, in addition to current cash balances, were used to pay down our term loan facility in the amount of $435.0 million on February 25, 2021. The debt pay-down reduced outstanding amounts of the Tranche B-1 Loans, Tranche B-2 Loans, and Tranche B-3 Loans, by $188.3 million, $124.7 million and $122.0 million, respectively. In conjunction with the prepayment of debt, we recorded a charge of $2.0 million in connection with the write-off of unamortized issuance costs, which is recorded within Loss on extinguishment of debt in our consolidated statement of operations for the six months ended June 30, 2021.

Our liquidity requirements and uses primarily include debt service, purchase commitments, labor costs, working capital requirements, restructuring expenditures, acquisition costs, capital investments, strategic optimization plans, precious metals cash collateral requirements, and postretirement obligations. We expect to meet these requirements in the long term through cash provided by operating activities and availability under existing credit facilities or other financing arrangements. Cash flows provided by operating activities are primarily driven by earnings before non-cash charges and changes in working capital needs. As of June 30, 2021, we had liquidity of approximately $664.5 million, consisting of cash and availability under our various credit facilities, primarily our revolving credit facility.

The 2018 Revolving Facility subjects us to a customary financial covenant regarding the Company’s maximum leverage ratio. This covenant under our Amended Credit Facility restricts the amount of our borrowings, reducing our flexibility to fund ongoing operations and strategic initiatives.

As of June 30, 2021, we were in compliance with our maximum leverage ratio covenant of 4.00x as our actual ratio was 1.38, providing $149.3 million of EBITDA cushion on the leverage ratio, as defined within the Amended Credit Facility. To the extent that economic conditions in key markets deteriorate or we are unable to meet our business projections and EBITDA, as defined within the Amended Credit Facility, falls below approximately $78 million for the most recently ended trailing four quarters, based on reasonably consistent net debt levels with those as of June 30, 2021, we could become unable to maintain compliance with our leverage ratio covenant. In such case, our lenders could demand immediate payment of outstanding amounts and we would need to seek alternate financing sources to pay off such debts and to fund our ongoing operations. Such financing may not be available on favorable terms, if at all.

Difficulties experienced in global capital markets could affect the ability or willingness of counterparties to perform under our various lines of credit, forward contracts, and precious metals program. These counterparties are major, reputable, multinational institutions, all having investment-grade credit ratings. Accordingly, we do not anticipate counterparty default. However, an interruption in access to external financing could adversely affect our business prospects and financial condition.

We assess on an ongoing basis our portfolio of businesses, as well as our financial and capital structure, to ensure that we have sufficient capital and liquidity to meet our strategic objectives. As part of this process, from time to time we evaluate the possible divestiture of businesses that are not critical to our core strategic objectives and, where appropriate, pursue the sale of such businesses and assets. We also evaluate and pursue acquisition opportunities that we believe will enhance our strategic position. Generally, we publicly announce divestiture and acquisition transactions only when we have entered into a material definitive agreement or closed on those transactions.

34

Critical Accounting Policies and Their Application

There were no material changes to our critical accounting policies described in “Critical Accounting Policies” within Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2020.

Impact of Newly Issued Accounting Pronouncements

Refer to Note 2 to the condensed consolidated financial statements under Item 1 of this Quarterly Report on Form 10-Q for a discussion of accounting standards we recently adopted or will be required to adopt.

Risk Factors

Certain statements contained here and in future filings with the SEC reflect the Company’s expectations with respect to future performance and constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to a variety of uncertainties, unknown risks and other factors concerning the Company’s operations and business environment, which are difficult to predict and are beyond the control of the Company. Factors that could adversely affect our future financial performance include those described under the heading “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2020.

35

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our exposure to instruments that are sensitive to fluctuations in interest rates and foreign currency exchange rates.

Our exposure to interest rate risk arises from our debt portfolio. We manage this risk by controlling the mix of fixed-rate versus variable-rate debt after considering the interest rate environment and expected future cash flows. To reduce our exposure to interest rate changes on variable-rate debt, we have entered into interest rate swap agreements. These swaps effectively convert a portion of our variable-rate debt to a fixed rate. Our objective is to limit variability in earnings, cash flows and overall borrowing costs caused by changes in interest rates, while preserving operating flexibility.

We operate internationally and enter into transactions denominated in foreign currencies. These transactions expose us to gains and losses arising from exchange rate movements between the dates foreign currencies are recorded and the dates they are settled. We manage this risk by entering into forward currency contracts in an effort to substantially offset these gains and losses.

The notional amounts, carrying amounts of assets (liabilities), and fair values associated with our exposure to these market risks and sensitivity analysis about potential gains (losses) resulting from hypothetical changes in market rates are presented in the table below.

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Variable-rate debt:
Carrying amount(1)	$	356,978	$	793,731
Fair value		356,149		783,143
Increase in annual interest expense from 1% increase in interest rates		100		2,626
Decrease in annual interest expense from 1% decrease in interest rates		(100)		(2,626)
Fixed-rate debt:
Carrying amount		3,889		3,706
Fair value		2,342		1,887
Change in fair value from 1% increase in interest rates		NM		NM
Change in fair value from 1% decrease in interest rates		NM		NM
Interest rate swaps:
Notional amount		309,624		311,220
Carrying amount and fair value		(19,385)		(24,694)
Change in fair value from 1% increase in interest rates		7,074		8,407
Change in fair value from 1% decrease in interest rates		(4,074)		(3,131)
Cross currency swaps:
Notional amount		38,700		223,675
Carrying amount and fair value		495		(5,162)
Change in fair value from 10% appreciation of U.S. dollar		(4,048)		(24,475)
Change in fair value from 10% depreciation of U.S. dollar		4,048		24,475
Foreign currency forward contracts:
Notional amount		776,659		494,187
Carrying amount and fair value		(3,454)		2,019
Change in fair value from 10% appreciation of U.S. dollar		(6,885)		(2,810)
Change in fair value from 10% depreciation of U.S. dollar		8,415		3,435

(1)The carrying value of the term loan facility is net of unamortized debt issuance costs of $1.4 million and $3.7 million for the period ended June 30, 2021 and December 31, 2020, respectively.

36

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Ferro is committed to maintaining disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to its management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(b) of the Exchange Act, Ferro has carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures. The evaluation examined those disclosure controls and procedures as of June 30, 2021, the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that the disclosure controls and procedures were effective as of June 30, 2021.

Changes in Internal Control over Financial Reporting

During the second quarter of 2021, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not observed any material impact to our internal controls over financial reporting despite the fact that many of our employees are working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to minimize the impact on their design and operating effectiveness.

37

PART II — OTHER INFORMATION

Item 1.  Legal Proceedings

In November 2017, Suffolk County Water Authority filed a complaint, Suffolk County Water Authority v. The Dow Chemical Company et al., against the Company and a number of other companies in the U.S. Federal Court for the Eastern District of New York with regard to the product 1,4 dioxane. The plaintiff alleges, among other things, that the Suffolk County water supply is contaminated with 1,4 dioxane and that the defendants are liable for unspecified costs of cleanup and remediation of the water supply, among other damages. The Company has not manufactured 1,4 dioxane since 2008, denies the allegations related to liability for the plaintiff’s claims, and is vigorously defending this proceeding. Since December 2018, additional complaints were filed in the same court by 25 other New York water suppliers against the Company and others making substantially similar allegations regarding the contamination of their respective water supplies with 1,4 dioxane. An additional complaint also was filed by the Hicksville Water District against the Company and others in New York State Supreme Court making substantially similar allegations and seeking damages of $900 million. The Company is likewise vigorously defending these additional actions. The Company currently does not expect the outcome of these proceedings to have a material adverse impact on its consolidated financial condition, results of operations, or cash flows, net of any insurance coverage. However, it is not possible to predict the ultimate outcome of these proceedings due to the unpredictable nature of litigation.

In addition to the proceedings described above, the Company and its consolidated subsidiaries are subject from time to time to various claims, lawsuits, investigations, and proceedings related to products, services, contracts, environmental, health and safety, employment, intellectual property, and other matters, including with respect to divested businesses. The outcome of such matters is unpredictable, our assessment of them may change, and resolution of them could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. We do not currently expect the resolution of such matters to materially affect the consolidated financial position, results of operations, or cash flows of the Company.

Item 1A.  Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A to our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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

Our Board of Directors have not declared any dividends on common stock during 2021 or 2020. The Company’s Amended Credit Facility restricts the amount of dividends we can pay on our common stock. Any future dividends declared would be at the discretion of our Board of Directors and would depend on our financial condition, results of operations, cash flows, contractual obligations, the terms our financing agreements at the time a dividend is considered, and other relevant factors.

The following table summarizes purchases of our common stock by the Company and affiliated purchasers during the three months ended June 30, 2021:

				Total Amount of		Maximum Dollar
				Shares Purchased		Amount that May
	Total Number			as Part of Publicly		Yet Be Purchased
	of Shares	Average Price		Announced Plans		Under the Plans
(Dollars in thousands, except for per share amounts)	Purchased	Paid per Share		or Programs		or Programs
April 1, 2021 to April 30, 2021	—	$	—	$	—	$	46,192,535
May 1, 2021 to May 31, 2021	—	$	—	$	—	$	46,192,535
June 1, 2021 to June 30, 2021	—	$	—	$	—	$	46,192,535
Total	—			$	—

Item 3.  Defaults Upon Senior Securities

Not applicable.

Item 4.  Mine Safety Disclosures

Not applicable.

38

Item 5.  Other Information

Not applicable.

Item 6.  Exhibits

The exhibits listed in the attached Exhibit Index are the exhibits required by Item 601 of Regulation S-K.

39

SIGNATURES

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

		FERRO CORPORATION (Registrant)
Date:	August 4, 2021
		/s/ Peter T. Thomas
		Peter T. Thomas
		Chairman, President and Chief Executive Officer (Principal Executive Officer)
Date:	August 4, 2021
		/s/ Benjamin J. Schlater
		Benjamin J. Schlater
		Group Vice President and Chief Financial Officer (Principal Financial Officer)

40

EXHIBIT INDEX

The following exhibits are filed with this report or are incorporated here by reference to a prior filing in accordance with Rule 12b-32 under the Securities and Exchange Act of 1934.

Exhibit:

2	Plan of acquisition, reorganization, arrangement or successor:
2.1	Agreement and Plan Merger, dated as of May 11, 2021, by and among Ferro Corporation, PMHC II Inc. and PMHC Fortune Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to Ferro Corporation’s Current Report on Form 8-K, filed May 11, 2021).
3	Articles of incorporation and by-laws:
3.1	Eleventh Amended Articles of Incorporation of Ferro Corporation (incorporated by reference to Exhibit 4.1 to Ferro Corporation’s Registration Statement on Form S‑3, filed March 5, 2008).
3.2	Certificate of Amendment to the Eleventh Amended Articles of Incorporation of Ferro Corporation filed December 29, 1994 (incorporated by reference to Exhibit 4.2 to Ferro Corporation’s Registration Statement on Form S‑3, filed March 5, 2008).
3.3	Certificate of Amendment to the Eleventh Amended Articles of Incorporation of Ferro Corporation filed on June 23, 1998 (incorporated by reference to Exhibit 4.3 to Ferro Corporation’s Registration Statement on Form S‑3, filed March 5, 2008).
3.4	Certificate of Amendment to the Eleventh Amended Articles of Incorporation of Ferro Corporation filed on October 17, 2011 (incorporated by reference to Exhibit 3.1 to Ferro Corporation’s Current Report on Form 8-K, filed October 17, 2011).
3.5	Certificate of Amendment to the Eleventh Amended Articles of Incorporation of Ferro Corporation filed on April 25, 2014 (incorporated by reference to Exhibit 3.5 to Ferro’s Quarterly Report on Form 10-Q, for the quarter ended June 30, 2014).
3.6	Ferro Corporation Amended and Restated Code of Regulations (incorporated by reference to Exhibit 3.1 to Ferro Corporation's current Report on Form 8-K filed December 12, 2016).
31	Certifications:
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a).
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a).
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. 1350.
32.2		Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350.
101		Inline XBRL Documents:
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Schema Document
101.CAL		Inline XBRL Calculation Linkbase Document
101.LAB		Inline XBRL Labels Linkbase Document
101.PRE		Inline XBRL Presentation Linkbase Document
101.DEF		Inline XBRL Definition Linkbase Document
104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in Inline XBRL and contained in Exhibit 101.

41

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(a)/15d-14(a)

I, Peter T. Thomas, certify that:

1. I have reviewed this report on Form 10-Q of Ferro Corporation;

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

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

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

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

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting 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.

/s/   Peter T. Thomas                                                

Peter T. Thomas

Chairman, President and Chief Executive Officer

(Principal Executive Officer)

Date: August 4, 2021

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(a)/15d-14(a)

I, Benjamin J. Schlater, certify that:

1. I have reviewed this report on Form 10-Q of Ferro Corporation;

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

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

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

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

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting 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.

/s/   Benjamin J. Schlater

Benjamin J. Schlater

Group Vice President and Chief Financial Officer

(Principal Financial Officer)

Date: August 4, 2021

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. 1350

In connection with the Form 10-Q (the “Report”) of Ferro Corporation (the “Company”) for the period ending June 30, 2021, I, Peter T. Thomas, Chairman, President and Chief Executive Officer of the Company, certify that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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/   Peter T. Thomas                                                

Peter T. Thomas

Chairman, President and Chief Executive Officer

(Principal Executive Officer)

Date: August 4, 2021

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. 1350

In connection with the Form 10-Q (the “Report”) of Ferro Corporation (the “Company”) for the period ending June 30, 2021, I, Benjamin J. Schlater,  Group Vice President and Chief Financial Officer of the Company, certify that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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/   Benjamin J. Schlater

Benjamin J. Schlater

Group Vice President and Chief Financial Officer

Date: August 4, 2021

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2021 shares
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-584
Entity Registrant Name	FERRO CORPORATION
Entity Incorporation State Country Code	OH
Entity Tax Identification Number	34-0217820
Entity Address Address Line One	6060 Parkland Boulevard
Entity Address Address Line Two	Suite 250
Entity Address City Or Town	Mayfield Heights
Entity Address State Or Province	OH
Entity Address Postal Zip Code	44124
City Area Code	216
Local Phone Number	875-5600
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	FOE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	82,704,290
Amendment Flag	false
Entity Central Index Key	0000035214

XML

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Condensed Consolidated Statements Of Operations [Abstract]
Net sales	$ 294,331	$ 204,801	$ 582,689	$ 457,127
Cost of sales	199,496	141,057	392,751	312,645
Gross profit	94,835	63,744	189,938	144,482
Selling, general and administrative expenses	59,026	50,541	112,864	106,587
Restructuring and impairment charges	1,970	8,619	7,154	9,784
Other expense (income):
Interest expense	5,006	6,177	14,443	11,707
Interest earned	(52)	(307)	(649)	(561)
Foreign currency losses (gains), net	3,209	1,143	4,367	(172)
Loss on extinguishment of debt			1,981
Miscellaneous income, net	(253)	(703)	(2,353)	(2,166)
Income (loss) before income taxes	25,929	(1,726)	52,131	19,303
Income tax expense	8,502	200	16,146	5,317
Income (loss) from continuing operations	17,427	(1,926)	35,985	13,986
Income (loss) from discontinued operations, net of income taxes	(1,536)	(3,238)	88,306	(3,017)
Net income (loss)	15,891	(5,164)	124,291	10,969
Less: Net income attributable to noncontrolling interests	382	376	819	386
Net income (loss) attributable to Ferro Corporation common shareholders	$ 15,509	$ (5,540)	$ 123,472	$ 10,583
Basic earnings:
Continuing operations	$ 0.21	$ (0.03)	$ 0.43	$ 0.17
Discontinued operations	(0.02)	(0.04)	1.07	(0.04)
Basic earnings	0.19	(0.07)	1.50	0.13
Diluted earnings:
Continuing operations	0.20	(0.03)	0.42	0.16
Discontinued operations	(0.02)	(0.04)	1.06	(0.04)
Diluted earnings	$ 0.18	$ (0.07)	$ 1.48	$ 0.12

XML

Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 15,891	$ (5,164)	$ 124,291	$ 10,969
Other comprehensive income (loss), net of income tax:
Foreign currency translation gain (loss)	687	3,857	(60,414)	(14,509)
Cash flow hedging instruments, unrealized income (loss)	1,283	(1,560)	8,069	(10,600)
Postretirement benefit liabilities income	(1)		129
Other comprehensive income (loss), net of income tax	1,969	2,297	(52,216)	(25,109)
Total comprehensive income (loss)	17,860	(2,867)	72,075	(14,140)
Less: Comprehensive income (loss) attributable to noncontrolling interests	(157)	340	206	256
Comprehensive income (loss) attributable to Ferro Corporation	$ 18,017	$ (3,207)	$ 71,869	$ (14,396)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 143,717	$ 174,077
Accounts receivable, net	162,375	137,008
Inventories	260,237	260,332
Other receivables	64,240	72,272
Other current assets	20,988	18,261
Current assets held-for-sale		307,854
Total current assets	651,557	969,804
Other assets
Property, plant and equipment, net	332,197	330,045
Goodwill	174,005	175,351
Intangible assets, net	112,545	119,500
Deferred income taxes	110,735	115,962
Operating leased assets	13,817	15,446
Other non-current assets	25,825	80,618
Non-current assets held-for-sale		154,207
Total assets	1,420,681	1,960,933
Current liabilities
Loans payable and current portion of long-term debt	8,871	8,839
Accounts payable	136,303	135,296
Accrued payrolls	28,366	27,166
Accrued expenses and other current liabilities	150,463	124,770
Current liabilities held-for-sale		107,545
Total current liabilities	324,003	403,616
Other liabilities
Long-term debt, less current portion	354,729	791,509
Postretirement and pension liabilities	165,951	181,610
Operating leased non-current liabilities	8,588	10,064
Other non-current liabilities	55,118	62,050
Non-current liabilities held-for-sale		71,149
Total liabilities	908,389	1,519,998
Ferro Corporation shareholders' equity:
Common stock, par value $1 per share; 300.0 million shares authorized; 93.4 million shares issued; 82.7 million and 82.4 million shares outstanding at June 30, 2021, and December 31, 2020, respectively	93,436	93,436
Paid-in capital	289,285	293,682
Retained earnings	428,287	304,815
Accumulated other comprehensive loss	(141,313)	(89,710)
Common shares in treasury, at cost	(165,689)	(172,256)
Total Ferro Corporation shareholders' equity	504,006	429,967
Noncontrolling interests	8,286	10,968
Total equity	512,292	440,935
Total liabilities and equity	$ 1,420,681	$ 1,960,933

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	300,000,000.0	300,000,000.0
Common stock, shares issued	93,400,000	93,400,000
Common stock, shares outstanding	82,700,000	82,400,000

XML

Condensed Consolidated Statements Of Equity - USD ($) shares in Thousands, $ in Thousands	Common Shares in Treasury [Member]	Common Stock [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Non-controlling Interests [Member]	Total
Beginning Balances at Dec. 31, 2019	$ (180,243)	$ 93,436	$ 294,543	$ 262,016	$ (109,376)	$ 9,826	$ 370,202
Beginning Balances, shares at Dec. 31, 2019	11,431
Net income (loss)				16,123		10	16,133
Other comprehensive income (loss)					(27,312)	(94)	(27,406)
Stock-based compensation transactions	$ 5,332		(2,723)				2,609
Stock-based compensation transactions, shares	(238)
Ending Balances at Mar. 31, 2020	$ (174,911)	93,436	291,820	278,139	(136,688)	9,742	361,538
Ending Balances, shares at Mar. 31, 2020	11,193
Beginning Balances at Dec. 31, 2019	$ (180,243)	93,436	294,543	262,016	(109,376)	9,826	370,202
Beginning Balances, shares at Dec. 31, 2019	11,431
Net income (loss)							10,969
Other comprehensive income (loss)							(25,109)
Ending Balances at Jun. 30, 2020	$ (174,752)	93,436	293,645	272,599	(134,355)	10,082	360,655
Ending Balances, shares at Jun. 30, 2020	11,185
Beginning Balances at Mar. 31, 2020	$ (174,911)	93,436	291,820	278,139	(136,688)	9,742	361,538
Beginning Balances, shares at Mar. 31, 2020	11,193
Net income (loss)				(5,540)		376	(5,164)
Other comprehensive income (loss)					2,333	(36)	2,297
Stock-based compensation transactions	$ 159		1,825				1,984
Stock-based compensation transactions, shares	(8)
Ending Balances at Jun. 30, 2020	$ (174,752)	93,436	293,645	272,599	(134,355)	10,082	360,655
Ending Balances, shares at Jun. 30, 2020	11,185
Beginning Balances at Dec. 31, 2020	$ (172,256)	93,436	293,682	304,815	(89,710)	10,968	440,935
Beginning Balances, shares at Dec. 31, 2020	11,065
Net income (loss)				107,963		437	108,400
Other comprehensive income (loss)					(54,111)	(74)	(54,185)
Change in ownership interest			(2,530)			(2,888)	(5,418)
Stock-based compensation transactions	$ 5,154		(2,614)				2,540
Stock-based compensation transactions, shares	(255)
Ending Balances at Mar. 31, 2021	$ (167,102)	93,436	288,538	412,778	(143,821)	8,443	492,272
Ending Balances, shares at Mar. 31, 2021	10,810
Beginning Balances at Dec. 31, 2020	$ (172,256)	93,436	293,682	304,815	(89,710)	10,968	440,935
Beginning Balances, shares at Dec. 31, 2020	11,065
Net income (loss)							124,291
Other comprehensive income (loss)							(52,216)
Ending Balances at Jun. 30, 2021	$ (165,689)	93,436	289,285	428,287	(141,313)	8,286	512,292
Ending Balances, shares at Jun. 30, 2021	10,731
Beginning Balances at Mar. 31, 2021	$ (167,102)	93,436	288,538	412,778	(143,821)	8,443	492,272
Beginning Balances, shares at Mar. 31, 2021	10,810
Net income (loss)				15,509		382	15,891
Other comprehensive income (loss)					2,508	(539)	1,969
Stock-based compensation transactions	$ 1,413		747				2,160
Stock-based compensation transactions, shares	(79)
Ending Balances at Jun. 30, 2021	$ (165,689)	$ 93,436	$ 289,285	$ 428,287	$ (141,313)	$ 8,286	$ 512,292
Ending Balances, shares at Jun. 30, 2021	10,731

XML

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net cash used in operating activities	$ (46,410)	$ (104,561)
Cash flows from investing activities
Capital expenditures for property, plant and equipment and other long-lived assets	(20,574)	(14,982)
Collections of financing receivables	59,326	62,580
Proceeds from sale of businesses, net	415,230
Business acquisitions, net of cash acquired	(2,200)
Other investing activities	236	778
Net cash provided by investing activities	452,018	48,376
Cash flows from financing activities
Net borrowings (payments) under loans payable	(112)	11,420
Principal payments on term loan facility - Amended Credit Facility	(439,100)	(4,100)
Proceeds from revolving credit facility - Amended Credit Facility	50,000	360,000
Principal payments on revolving credit facility - Amended Credit Facility	(50,000)	(343,383)
Other financing activities	(3,551)	(1,418)
Net cash provided by (used in) financing activities	(442,763)	22,519
Effect of exchange rate changes on cash and cash equivalents	(1,405)	(505)
Decrease in cash and cash equivalents	(38,560)	(34,171)
Cash and cash equivalents at beginning of period	182,277	104,402
Cash and cash equivalents at end of period	143,717	70,231
Less: Cash and cash equivalents of discontinued operations at end of period		8,200
Cash and cash equivalents of continuing operations at end of period	143,717	62,031
Cash paid during the period for:
Interest	16,438	16,736
Income taxes	$ 12,751	$ 7,722

XML

Basis Of Presentation

6 Months Ended

Jun. 30, 2021

Basis Of Presentation [Abstract]

Basis Of Presentation

1.    Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Ferro Corporation (“Ferro,” “we,” “us” or “the Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. These statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020.

We produce our products primarily in the Europe, Middle East and Africa (“EMEA”) region, the Americas region and the Asia Pacific region.

Operating results for the three and six months ended June 30, 2021, are not necessarily indicative of the results expected in subsequent quarters or for the full year ending December 31, 2021.

During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. As further discussed in Note 4, we entered into a definitive agreement to sell our Tile Coatings business, which has historically been included in the Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented. Throughout this Quarterly Report on Form 10-Q, with the exception of the statements of cash flows and unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

On February 25, 2021, we completed the sale of our Tile Coatings business to Pigments Spain, S.L., a company of the Esmalglass-Itaca-Fritta group, which is a portfolio company of certain Lone Star Funds.

Certain reclassifications have been made to the prior year financial statements to conform to current year classifications. The reclassification relates to the balance sheet presentation of assets as held for sale in relation to the Tile Coatings business transaction. Additional reclassification relates to the disclosure of revenue disaggregation by geographic regions. As of January 1, 2021, the United States and Latin America regions were combined into the Americas region.

Pending Merger

On May 11, 2021, Ferro, PMHC II Inc., a Delaware corporation (“Prince”) and PMHC Fortune Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Prince (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Ferro (the “Merger”), with Ferro continuing as the surviving corporation in the Merger and as a direct or indirect wholly owned subsidiary of Prince. The board of directors of Ferro has approved the Merger Agreement.

On the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), and as a result of the Merger, each share of common stock of Ferro (“Ferro Common Stock”) that is issued and outstanding immediately prior to the Effective Time (other than (i) shares of Ferro Common Stock held by Ferro as treasury stock or held directly by Prince or any subsidiary of Prince (including Merger Sub) immediately prior to the Effective Time (which will be canceled without payment of any consideration), (ii) shares of Ferro Common Stock for which dissenters rights have been properly exercised and perfected and not withdrawn and (iii) shares of restricted stock) will be converted into the right to receive $22.00 in cash, without interest (the “Merger Consideration”).

Pursuant to the Merger Agreement, as of the Effective Time, each option to acquire shares of Ferro Common Stock, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such option, multiplied by (B) the excess, if any, of the Merger Consideration over the applicable per share exercise price of such option.

In addition, pursuant to the Merger Agreement, as of the Effective Time, (i) each outstanding share of Ferro restricted stock, each restricted share unit (other than performance share units), deferred share unit, phantom share unit or similar stock right, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such right, multiplied by (B) the Merger Consideration, and (ii) each Ferro performance-based share unit, whether vested or unvested, that is outstanding immediately prior to the Effective Time will be converted into the right to receive an amount in cash (less any applicable withholding taxes) equal to (A) the number of shares of Ferro Common Stock subject to such performance-based share unit, calculated based on the greater of (x) actual performance achieved in accordance with the terms of such performance-based share unit and the Merger Agreement and (y) target level performance over the entire performance period applicable with respect to such performance-based share unit, multiplied by (B) the Merger Consideration.

Ferro and Prince have agreed to use their respective reasonable best efforts to consummate the Merger, including making filings with and seeking approvals from certain governmental entities necessary in connection with the Merger, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”). In furtherance thereof, Prince has agreed to accept certain divestitures or restrictions on the assets of Prince, Ferro and their respective subsidiaries, if and to the extent necessary to obtain such approvals, subject to certain specified limitations set forth in the Merger Agreement.

Consummation of the Merger is subject to certain customary conditions, including (i) the adoption of the Merger Agreement by the holders of two-thirds of the outstanding shares of Ferro Common Stock, (ii) the absence of any law prohibiting or order preventing the consummation of the Merger, (iii) the receipt of certain regulatory approvals, including expiration or termination of any applicable waiting period under the HSR Act, (iv) the absence of a material adverse effect with respect to Ferro, and (v) compliance in all material respects on the part of each of Ferro and Prince with such party’s covenants under the Merger Agreement. The obligation of each party to consummate the Merger is also conditioned upon the other party’s representations and warranties being true and correct, subject to certain materiality exceptions.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

2.    Recent Accounting Pronouncements

Recently Adopted Accounting Standards

This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company.

New Accounting Standards Not Yet Adopted

We are currently evaluating the impact on our financial statements of the following ASUs:

Standard	Description
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, issued March, 2020	Provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU are effective for all entities through December 31, 2022.

No other new accounting pronouncements issued had, or are expected to have, a material impact on the Company’s consolidated financial statements.

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Revenue

6 Months Ended

Jun. 30, 2021

Revenue [Abstract]

Revenue

3. Revenue

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	92,569	$	72,046	$	30,294	$	194,909
Color Solutions		37,958		50,014		11,450		99,422
Total net sales	$	130,527	$	122,060	$	41,744	$	294,331

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	51,071	$	58,868	$	21,733	$	131,672
Color Solutions		27,874		36,145		9,110		73,129
Total net sales	$	78,945	$	95,013	$	30,843	$	204,801

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	179,941	$	139,964	$	59,826	$	379,731
Color Solutions		77,000		103,868		22,090		202,958
Total net sales	$	256,941	$	243,832	$	81,916	$	582,689

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	126,928	$	116,690	$	43,489	$	287,107
Color Solutions		65,763		85,851		18,406		170,020
Total net sales	$	192,691	$	202,541	$	61,895	$	457,127

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Discontinued Operations

6 Months Ended

Jun. 30, 2021

Discontinued Operations [Abstract]

Discontinued Operations

4.    Discontinued Operations

During the fourth quarter of 2019, substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets. We entered into a definitive agreement to sell our Tile Coatings business, which has historically been a part of our Performance Coatings reportable segment. Therefore, the associated operating results, net of income tax, have been classified as discontinued operations in the accompanying consolidated statements of operations for all periods presented.

On February 25, 2021, we completed the sale of our Tile Coatings business to Pigments Spain, S.L., a company of the Esmalglass-Itaca-Fritta group (the “Buyer”), which is a portfolio company of certain Lone Star Funds, for $460.0 million in cash, subject to post-closing adjustments. The transaction resulted in net proceeds of approximately $415.2 million after expenses and a gain of $100.1 million, which is recorded within Income from discontinued operations, net of income taxes in our consolidated statement of operations for the quarter ended March 31, 2021. We entered into a Transition Services Agreement (“TSA”) with the Buyer, which is designed to facilitate an orderly transfer of business operations. The services provided under the TSA will terminate at various points in times between six to twelve months from the completion of the sale. Except for customary post-closing adjustments and transition services, we have no continuing involvement with the Buyer subsequent to the completion of the sale.

The table below summarizes results for the Tile Coatings business for the three and six months ended June 30, 2021 and 2020, which are reflected in our consolidated statements of operations as discontinued operations, net of income taxes. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Net sales	$	—	$	75,254	$	83,579	$	190,004
Cost of sales		—		59,073		60,634		145,975
Gross profit		—		16,181		22,945		44,029
Selling, general and administrative expenses		—		15,542		20,327		34,350
Restructuring and impairment charges		—		1,758		303		2,037
Interest expense		—		2,517		1,682		4,748
Interest earned		—		(129)		(189)		(153)
Foreign currency losses (gains), net		—		(804)		363		4,961
Gain on sale of business, net		—		—		(100,057)		—
Miscellaneous expense, net		—		705		251		1,247
Income (loss) from discontinued operations before income taxes		—		(3,408)		100,265		(3,161)
Income tax expense (benefit)		1,536		(170)		11,959		(144)
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests		—		67		64		44
Net income (loss) attributable to Tile Coatings business	$	(1,536)	$	(3,305)	$	88,242	$	(3,061)

The following table summarizes the assets and liabilities which are classified as held-for-sale at December 31, 2020:

	December 31,
(Dollars in thousands)	2020
Cash and cash equivalents	$	8,200
Accounts receivable, net		211,548
Inventories		84,239
Other receivables		1,630
Other current assets		2,237
Current assets held-for-sale		307,854
Property, plant and equipment, net		93,430
Intangible assets, net		42,126
Deferred income taxes		12,267
Other non-current assets		6,384
Non-current assets held-for-sale		154,207
Total assets held-for-sale	$	462,061
Loans payable and current portion of long-term debt	$	3,927
Accounts payable		85,308
Accrued payrolls		5,946
Accrued expenses and other current liabilities		12,364
Current liabilities held-for-sale		107,545
Long-term debt, less current portion		56,359
Postretirement and pension liabilities		8,119
Other non-current liabilities		6,671
Non-current liabilities held-for-sale		71,149
Total liabilities held-for-sale	$	178,694

The following table summarizes cash flow data relating to discontinued operations for the six months ended June 30, 2021 and 2020:

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Capital expenditures	$	(1,074)	$	(1,909)
Gain on sale of discontinued operations		(100,057)		—
Non-cash operating activities - restructuring and impairment charges		—		1,070
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end		—		507

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Inventories

6 Months Ended

Jun. 30, 2021

Inventories [Abstract]

Inventories

5.    Inventories

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Raw materials	$	75,348	$	81,344
Work in process		45,566		48,770
Finished goods		139,323		130,218
Total inventories	$	260,237	$	260,332

In the production of some of our products, we use precious metals, which we obtain from financial institutions under consignment agreements with terms of one year or less. The financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign. These fees were $0.8 million and $0.6 million for the three months ended June 30, 2021 and 2020, respectively, and $1.4 million and $1.7 million for the six months ended June 30, 2021 and 2020, respectively. We had on-hand precious metals owned by participants in our precious metals consignment program of $100.7 million at June 30, 2021, and $87.2 million at December 31, 2020, measured at fair value based on market prices for identical assets.

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Property, Plant And Equipment

6 Months Ended

Jun. 30, 2021

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

6.    Property, Plant and Equipment

Property, plant and equipment is reported net of accumulated depreciation of $452.4 million at June 30, 2021 and $456.3 million at December 31, 2020. As discussed in Note 4, the assets of our Tile Coatings business were classified as held-for-sale under ASC Topic 360; Property, Plant, and Equipment. As such, additional accumulated depreciation of $135.3 million at December 31, 2020 was classified as Non-current assets held for sale.

Unpaid capital expenditure liabilities, which are non-cash investing activities, were $1.1 million at June 30, 2021 and $0.3 million at June 30, 2020.

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Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill And Other Intangible Assets [Abstract]

Goodwill And Other Intangible Assets

7. Goodwill and Other Intangible Assets

Details and activity in the Company’s goodwill by segment follow:

	Functional		Color
(Dollars in thousands)	Coatings		Solutions		Total
Goodwill, net at December 31, 2020	$	123,570	$	51,781	$	175,351
Foreign currency adjustments		(1,061)		(285)		(1,346)
Goodwill, net at June 30, 2021	$	122,509	$	51,496	$	174,005

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Goodwill, gross	$	232,472	$	233,818
Accumulated impairment		(58,467)		(58,467)
Goodwill, net	$	174,005	$	175,351

Goodwill is tested for impairment at the reporting unit level on an annual basis in the fourth quarter, and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying value. As of June 30, 2021, the Company is not aware of any events or circumstances that occurred which would require a goodwill impairment test.

Amortizable intangible assets consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Gross amortizable intangible assets:
Patents	$	5,540	$	5,589
Land rights		3,209		3,173
Technology/know-how and other		116,455		116,015
Customer relationships		66,944		68,142
Total gross amortizable intangible assets		192,148		192,919
Accumulated amortization:
Patents		(5,518)		(5,566)
Land rights		(1,693)		(1,630)
Technology/know-how and other		(66,116)		(61,104)
Customer relationships		(19,290)		(18,317)
Total accumulated amortization		(92,617)		(86,617)
Amortizable intangible assets, net	$	99,531	$	106,302

Indefinite-lived intangible assets consisted of the following:

Z

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Indefinite-lived intangibles assets:
Trade names and trademarks	$	13,014	$	13,198

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Debt

6 Months Ended

Jun. 30, 2021

Debt [Abstract]

Debt

8.    Debt

Loans payable and current portion of long-term debt consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Current portion of long-term debt	$	8,871	$	8,839
Loans payable and current portion of long-term debt	$	8,871	$	8,839

Long-term debt consisted of the following:

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Term loan facility, net of unamortized issuance costs, maturing 2024(1)	$	356,978	$	793,731
Finance lease obligations		2,733		2,911
Other notes		3,889		3,706
Total long-term debt		363,600		800,348
Current portion of long-term debt		(8,871)		(8,839)
Long-term debt, less current portion	$	354,729	$	791,509

(1)The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $1.4 million at June 30, 2021 and $3.7 million at December 31, 2020.

Amended Credit Facility

On April 25, 2018, the Company entered into an amendment (the “Amended Credit Facility”) to its existing credit facility (the “Credit Facility”), which Amended Credit Facility (a) provided a new revolving facility (the “2018 Revolving Facility”), which replaced the Company’s existing revolving facility, (b) repriced the (“Tranche B-1 Loans”), and (c) provided new tranches of term loans (“Tranche B-2 Loans” and “Tranche B-3 Loans”) denominated in U.S. dollars. On May 4, 2020, the Company entered into an amendment (Third Amendment to Credit Agreement) to the Amended Credit Facility, which added an approval to Section 7.2.8 Permitted Dispositions for the Tile Coatings Business Disposition. The Amended Credit Facility will be used for ongoing working capital requirements and general corporate purposes. The Tranche B-2 Loans are borrowed by the Company and the Tranche B-3 Loans are borrowed on a joint and several basis by Ferro GmbH and Ferro Europe Holdings LLC.

The Amended Credit Facility consists of a $500 million secured revolving line of credit with a maturity of February 14, 2023, a $355 million secured term loan facility with a maturity of February 14, 2024, a $235 million secured term loan facility with a maturity of February 14, 2024 and a $230 million secured term loan facility with a maturity of February 14, 2024. The term loans are payable in equal quarterly installments in an amount equal to 0.25% of the original principal amount of the term loans, with the remaining balance due on the maturity date thereof. In addition, the Company is required, on an annual basis, to make a prepayment in an amount equal to a portion of the Company’s excess cash flow, as calculated pursuant to the Amended Credit Facility, which prepayment will be applied first to the term loans until they are paid in full, and then to the revolving loans.

Subject to the satisfaction of certain conditions, the Company can request additional commitments under the revolving line of credit or term loans in the aggregate principal amount of up to $250 million to the extent that existing or new lenders agree to provide such additional commitments and/or term loans. The Company can also raise certain additional debt or credit facilities subject to satisfaction of certain covenant levels.

Certain of the Company’s U.S. subsidiaries have guaranteed the Company’s obligations under the Amended Credit Facility and such obligations are secured by (a) substantially all of the personal property of the Company and the U.S. subsidiary guarantors and (b) a pledge of 100% of the stock of certain of the Company’s U.S. subsidiaries and 65% of the stock of certain of the Company’s direct foreign subsidiaries. The Tranche B-3 Loans are guaranteed by the Company, the U.S. subsidiary guarantors and a cross-guaranty by the borrowers of the Tranche B-3 Loans and are secured by the collateral securing the revolving loans and the other term loans, in addition to a pledge of the equity interests of Ferro GmbH.

Interest Rate – Term Loans: The interest rates applicable to the term loans will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable margin.

The base rate for term loans will be the highest of (i) the federal funds rate plus 0.50%, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00% or (iv) 0.00%. The applicable margin for base rate loans is 1.25%.

The LIBOR rate for term loans shall not be less than 0.0% and the applicable margin for LIBOR rate term loans is 2.25%.

For LIBOR rate term loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration.

At June 30, 2021, the Company had borrowed $155.1 million under the Tranche B-1 Loans at an interest rate of 2.40%, $102.7 million under the Tranche B-2 Loans at an interest rate of 2.40%, and $100.5 million under the Tranche B-3 Loans at an interest rate of 2.40%. At June 30, 2021, there were no additional borrowings available under the Tranche B-1 Loans, Tranche B-2 Loans, or Tranche B-3 Loans. In connection with these borrowings, we entered into swap agreements in the second quarter of 2018. At June 30, 2021, the effective interest rate for all tranches of the term loan facility, inclusive of hedging activities, was 4.83%.

Interest Rate – Revolving Credit Line: The interest rates applicable to loans under the 2018 Revolving Credit Facility will be, at the Company’s option, equal to either a base rate or a LIBOR rate plus, in both cases, an applicable variable margin. The variable margin will be based on the ratio of (a) the Company’s total consolidated net debt outstanding (as defined in the Amended Credit Agreement) at such time to (b) the Company’s consolidated EBITDA (as defined in the Amended Credit Agreement) computed for the period of four consecutive fiscal quarters most recently ended.

The base rate for revolving loans will be the highest of (i) the federal funds rate plus 0.50%, (ii) the syndication agent’s prime rate, (iii) the daily LIBOR rate plus 1.00% or (iv) 0.00%. The applicable margin for base rate loans will vary between 0.50% to 1.50%.

The LIBOR rate for revolving loans shall not be less than 0% and the applicable margin for LIBOR rate revolving loans will vary between 1.50% and 2.50%.

For LIBOR rate revolving loans, the Company may choose to set the duration on individual borrowings for periods of one, two, three or six months, with the interest rate based on the applicable LIBOR rate for the corresponding duration.

At June 30, 2021, there were no borrowings under the 2018 Revolving Credit Facility. After reductions for outstanding letters of credit secured by these facilities, we had $495.8 million of additional borrowings available under the revolving credit facilities at June 30, 2021.

The Amended Credit Facility contains customary restrictive covenants including, but not limited to, limitations on use of loan proceeds, limitations on the Company’s ability to pay dividends and repurchase stock, limitations on acquisitions and dispositions, and limitations on certain types of investments. The Amended Credit Facility also contains standard provisions relating to conditions of borrowing and customary events of default, including the non-payment of obligations by the Company and the bankruptcy of the Company.

Specific to the 2018 Revolving Facility, the Company is subject to a financial covenant regarding the Company’s maximum leverage ratio. If an event of default occurs, all amounts outstanding under the Amended Credit Facility agreement may be accelerated and become immediately due and payable. At June 30, 2021, we were in compliance with the covenants of the Amended Credit Facility.

As noted in Note 4, on February 25, 2021, we completed the sale of our Tile Coatings business. Proceeds from the close of the transaction, in addition to current cash balances, were used to pay down our term loan facility in the amount of $435.0 million on February 25, 2021. The debt pay-down reduced outstanding amounts of the Tranche B-1 Loans, Tranche B-2 Loans, and Tranche B-3 Loans, by $188.3 million, $124.7 million and $122.0 million, respectively. In conjunction with the prepayment of debt, we recorded a charge of $2.0 million in connection with the write-off of unamortized issuance costs, which is recorded within Loss on extinguishment of debt in our consolidated statement of operations for the six months ended June 30, 2021.

Receivable Sales Programs

We have several international programs to sell without recourse trade accounts receivable to financial institutions. During the third quarter of 2020, these programs were amended to include a domestic program. These transactions are treated as a sale and are accounted for as a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. The Company continues to service the receivables sold in exchange for a fee. The servicing fee for the three and six months ended June 30, 2021, was immaterial. The program, whose maximum capacity is €85 million, is scheduled to expire on December 31, 2023. Generally, at the transfer date, the Company receives cash equal to approximately 80% of the value of the sold receivable. Cash proceeds at the transfer date from these arrangements are reflected in operating activities in our consolidated statement of cash flows. The proceeds from the deferred purchase price are reflected in investing activities.

The outstanding principal amount of receivables sold under this program, which has not yet been collected from the customer, was $45.1 million at June 30, 2021 and $24.5 million at December 31, 2020. The carrying amount of deferred purchase price was $9.9 million at June 30, 2021 and $9.8 million at December 31, 2020 and is recorded in Other receivables. Trade accounts receivable collected from customers to be remitted to financial institutions were $44.5 million at June 30, 2021 and $36.0 million at December 31, 2020 recorded in Accrued expenses and other current liabilities.

Activity from these programs for the six months ended June 30, 2021 and 2020 is detailed below:

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Trade accounts receivable sold to financial institutions	$	312,676	$	91,048
Cash proceeds from financial institutions (1)		250,927		58,794

(1)Excluded from the table above, in the six months ended June 30, 2020, our Tile Coatings business received cash proceeds from financial institutions of $47.3 million. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations.

Other Financing Arrangements

We maintain other lines of credit to provide global flexibility for our short-term liquidity requirements. These facilities are uncommitted lines for our international operations and totaled $25.0 million and $28.1 million at June 30, 2021 and December 31, 2020, respectively. The unused portions of these lines provided additional liquidity of $25.0 million at June 30, 2021 and December 31, 2020.

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Financial Instruments

6 Months Ended

Jun. 30, 2021

Financial Instruments [Abstract]

Financial Instruments

9.    Financial Instruments

The following financial instrument assets (liabilities) are presented at their respective carrying amount, fair value and classification within the fair value hierarchy:

	June 30, 2021
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	143,717	$	143,717	$	143,717	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(356,978)		(356,149)		—		(356,149)		—
Other long-term notes payable		(3,889)		(2,342)		—		(2,342)		—
Cross currency swaps		495		495		—		495		—
Interest rate swaps		(19,385)		(19,385)		—		(19,385)		—
Foreign currency forward contracts, net		(3,454)		(3,454)		—		(3,454)		—

	December 31, 2020
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	174,077	$	174,077	$	174,077	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(793,731)		(783,143)		—		(783,143)		—
Other long-term notes payable		(3,706)		(1,887)		—		(1,887)		—
Cross currency swaps		(5,162)		(5,162)		—		(5,162)		—
Interest rate swaps		(24,694)		(24,694)		—		(24,694)		—
Foreign currency forward contracts, net		2,019		2,019		—		2,019		—

(1)The carrying value of the term loan facility is net of unamortized debt issuance costs of $1.4 million and $3.7 million for the period ended June 30, 2021, and December 31, 2020, respectively.

The fair value of cash and cash equivalents are based on the fair values of identical assets. The fair value of loans payable is based on the present value of expected future cash flows and approximate their carrying amounts due to the short periods to maturity. The fair value of the term loan facility is based on market price information and is measured using the last available bid price of the instrument on a secondary market. The fair value of revolving credit facility and other long-term notes payable are based on the present value of expected future cash flows and interest rates that would be currently available to the Company for issuance of similar types of debt instruments with similar terms and remaining maturities adjusted for the Company's performance risk. The fair values of our interest rate swaps and cross currency swaps are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair value of the foreign currency forward contracts are based on market prices for comparable contracts.

Derivative Instruments

The Company may use derivative instruments to partially offset its business exposure to foreign currency and interest rate risk on expected future cash flows, on net investments in certain foreign subsidiaries and on certain existing assets and liabilities. However, the Company may choose not to hedge in countries where it is not economically feasible to enter into hedging arrangements or where hedging inefficiencies exist, such as timing of transactions.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges. For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is recorded as a component of Accumulated other comprehensive loss (“AOCL”) and reclassified into earnings in the same period during which the hedged transaction affects earnings.

The Company utilizes interest rate swaps to limit exposure to market fluctuations on floating-rate debt.

During the second quarter of 2018, the Company entered into variable to fixed interest rate swaps with a maturity date of February 14, 2024. The notional amount is $309.6 million at June 30, 2021. These swaps are hedging risk associated with the Tranche B-1, B-2 and B-3 Loans. These interest rate swaps are designated as cash flow hedges. As of June 30, 2021, the Company expects it will reclassify net losses of approximately $8.4 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of these derivatives.

The Company has converted a U.S. dollar denominated, variable rate debt obligation into a Euro fixed rate obligation using receive-float, pay-fixed cross currency swaps in the second quarter of 2018. These swaps are hedging currency and interest rate risk associated with the Tranche B-3 Loan. These cross-currency swaps are designated as cash flow hedges. In conjunction with the pay-down of debt discussed in Note 8, we terminated all cross-currency swaps, except for one, which we de-designated and re-designated to hedge the remaining Tranche B-3 Loan after the interest rate swaps. Due to the original designation layering, the other comprehensive loss from the cross-currency swap at re-designation and the other comprehensive loss from the terminated cross-currency swaps were written-off as the interest payments were deemed remote. The Company paid counterparties $3.5 million to settle the terminated derivatives, resulting in a net $4.5 million being reclassified from AOCL to Interest expense as a result of this remote transaction. The remaining notional amount is $38.7 million at June 30, 2021, with a maturity date of February 14, 2024. As of June 30, 2021, the Company expects it will reclassify net losses of approximately $0.1 million, currently recorded in AOCL, into interest expense in earnings within the next twelve months. However, the actual amount reclassified could vary due to future changes in the fair value of this derivative.

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the three months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	(385)	$	(1,934)	$	(1,841)	$	(824)	Interest expense
Cross currency swaps		(388)		(3,902)		(113)		851	Interest expense
					$	(1,954)	$	27	Total Interest expense
Cross currency swaps						(433)		(4,204)	Foreign currency losses (gains), net
					$	(433)	$	(4,204)	Total Foreign currency losses (gains), net

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the six months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	1,053	$	(14,808)	$	(3,613)	$	(1,322)	Interest expense
Cross currency swaps		2,308		1,356		(123)		2,019	Interest expense
					$	(3,736)	$	697	Total Interest expense
Cross currency swaps						2,494		(582)	Foreign currency losses (gains), net
					$	2,494	$	(582)	Total Foreign currency losses (gains), net

The total amounts of expense and the respective line items in which the effect of cash flow hedges is presented in the condensed consolidated statement of operations for the three and six months ended June 30, 2021 and 2020, are as follows:

	Three months ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Interest expense	$	5,006	$	6,177	$	14,443	$	11,707
Foreign currency losses (gains), net		3,209		1,143		4,367		(172)

Net Investment Hedges. For derivatives that are designated and qualify as net investment hedges, the gain or loss on the derivative is reported as a component of the currency translation adjustment in AOCL. These cross-currency swaps are designated as hedges of our net investment in European operations. Time value is excluded from the assessment of effectiveness and the amount of interest paid or received on the swaps will be recognized as an adjustment to interest expense in earnings over the life of the swaps.

In the second quarter of 2018, the Company entered into cross currency swap agreements under which we pay variable rate interest in Euros and receive variable rate interest in U.S. dollars. The net investment hedge was terminated in the fourth quarter of 2020. These swaps were hedging risk associated with the net investment in Euro denominated operations due to fluctuating exchange rates and were designated as net investment hedges. The changes in the fair value of these designated cross-currency swaps were recognized in AOCL.

The amount of gain (loss) on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the three months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	(1,569)	$	—	$	612	Interest expense

The amount of gain on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the six months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	1,090	$	—	$	1,392	Interest expense

Derivatives Not Designated as Hedging Instruments

Foreign Currency Forward Contracts. We manage foreign currency risks principally by entering into forward contracts to mitigate the impact of currency fluctuations on transactions. These forward contracts are not formally designated as hedges. Gains and losses on these foreign currency forward contracts are netted with gains and losses from currency fluctuations on transactions arising from international trade and reported as Foreign currency losses (gains), net in the condensed consolidated statements of operations. We recognized net gains of $0.2 million and net losses of $6.1 million in the three and six months ended June 30, 2021, respectively, and net gains of $0.1 million and $0.4 million in the three and six months ended June 30, 2020, respectively, arising from the change in fair value of our financial instruments, which partially offset the related net gains and losses on international trade transactions. The notional amount of foreign currency forward contracts was $776.7 million at June 30, 2021 and $494.2 million at December 31, 2020.

The following table presents the effect on our condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020, respectively, of our foreign currency forward contracts:

	Amount of Gain (Loss)				Amount of Gain (Loss)
	Recognized in Earnings				Recognized in Earnings
	Three Months Ended				Six Months Ended
	June 30,				June 30,				Location of Gain (Loss) in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Foreign currency forward contracts	$	(1,280)	$	142	$	(7,546)	$	410	Foreign currency losses (gains), net

Location and Fair Value Amount of Derivative Instruments

The following table presents the fair values of our derivative instruments on our condensed consolidated balance sheets. All derivatives are reported on a gross basis.

	June 30,		December 31,
(Dollars in thousands)	2021		2020		Balance Sheet Location
Asset derivatives:
Cross currency swaps	$	9	$	9	Other current assets
Cross currency swaps		486		—	Other non-current assets
Foreign currency forward contracts		1,118		2,649	Other current assets
Liability derivatives:
Interest rate swaps	$	(8,415)	$	(8,436)	Accrued expenses and other current liabilities
Interest rate swaps		(10,970)		(16,258)	Other non-current liabilities
Cross currency swaps		—		(67)	Accrued expenses and other current liabilities
Cross currency swaps		—		(5,104)	Other non-current liabilities
Foreign currency forward contracts		(4,572)		(630)	Accrued expenses and other current liabilities

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Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Taxes [Abstract]
Income Taxes	10.    Income TaxesIncome tax expense for the six months ended June 30, 2021 was $16.1 million, or 31.0% of pre-tax income. Income tax expense for the six months ended June 30, 2020 was $5.3 million, or 27.5% of pre-tax income. The tax expense during the six months ended June 30, 2021 and June 30, 2020, as a percentage of pre-tax income, is higher than the U.S. federal statutory income tax rate of 21% primarily as a result of foreign statutory rate differences.

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Contingent Liabilities

6 Months Ended

Jun. 30, 2021

Contingent Liabilities [Abstract]

Contingent Liabilities

11.    Contingent Liabilities

We have recorded environmental liabilities of $5.7 million at June 30, 2021 and December 31, 2020, for costs associated with the remediation of certain of our current or former properties that have been contaminated. The balance at June 30, 2021 and December 31, 2020, were primarily comprised of liabilities related to a non-operating facility in Brazil, and for retained environmental obligations related to a site in the United States that was part of the sale of our North American and Asian metal powders product line in 2013. These costs include, but are not limited to, legal and consulting fees, site studies, the design and implementation of remediation plans, post-remediation monitoring, and related activities. The ultimate liability could be affected by numerous uncertainties, including the extent of contamination found, the required period of monitoring, the ultimate cost of required remediation, and other circumstances.

In November 2017, Suffolk County Water Authority filed a complaint, Suffolk County Water Authority v. The Dow Chemical Company et al., against the Company and a number of other companies in the U.S. Federal Court for the Eastern District of New York with regard to the product 1,4 dioxane. The plaintiff alleges, among other things, that the Suffolk County water supply is contaminated with 1,4 dioxane and that the defendants are liable for unspecified costs of cleanup and remediation of the water supply, among other damages. The Company has not manufactured 1,4 dioxane since 2008, denies the allegations related to liability for the plaintiff’s claims, and is vigorously defending this proceeding. Since December 2018, additional complaints were filed in the same court by 25 other New York municipal water suppliers and in New York State Supreme Court by one water supplier against the Company and others making substantially similar allegations regarding the contamination of their respective water supplies with 1,4 dioxane. The Company is likewise vigorously defending these additional actions. The Company currently does not expect the outcome of these proceedings to have a material adverse impact on its consolidated financial condition, results of operations, or cash flows, net of any insurance coverage. However, it is not possible to predict the ultimate outcome of these proceedings due to the unpredictable nature of litigation.

In addition to the proceedings described above, the Company and its consolidated subsidiaries are subject from time to time to various claims, lawsuits, investigations, and proceedings related to products, services, contracts, environmental, health and safety, employment, intellectual property, and other matters, including with respect to divested businesses. The outcome of such matters is unpredictable, our assessment of them may change, and resolution of them could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. We do not currently expect the resolution of such matters to materially affect the consolidated financial position, results of operations, or cash flows of the Company.

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Retirement Benefits

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Retirement Benefits

12.    Retirement Benefits

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the three months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Three Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	3	$	333	$	294	$	—	$	—
Interest cost		1,881		2,388		343		343		68		133
Expected return on plan assets		(3,824)		(3,708)		(116)		(116)		—		—
Amortization of prior service cost		—		—		(21)		(4)		—		—
Net periodic benefit (credit) cost	$	(1,943)	$	(1,317)	$	539	$	517	$	68	$	133

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the six months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Six Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	6	$	672	$	579	$	—	$	1
Interest cost		3,761		4,775		678		673		136		265
Expected return on plan assets		(7,648)		(7,416)		(230)		(228)		—		—
Amortization of prior service cost		—		—		(41)		(9)		—		—
Net periodic benefit (credit) cost	$	(3,887)	$	(2,635)	$	1,079	$	1,015	$	136	$	266

Interest cost, expected return on plan assets and amortization of prior service cost are recorded in Miscellaneous income, net on the condensed consolidated statement of operations.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2021

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13.    Stock-Based Compensation

On May 3, 2018, our shareholders approved the 2018 Omnibus Incentive Plan (the “Plan”), which was adopted by the Board of Directors on February 22, 2018. The Plan’s purpose is to promote the Company’s long-term financial interests and growth by attracting, retaining and motivating high-quality key employees and directors, motivating such employees and directors to achieve the Company’s short- and long-range performance goals and objectives, and thereby align their interests with those of the Company’s shareholders. The Plan reserves 4,500,000 shares of common stock to be issued for grants of several different types of long-term incentives including stock options, stock appreciation rights, restricted awards, performance awards, other common stock-based awards, and dividend equivalent rights.

The Plan replaced the 2013 Omnibus Incentive Plan (the “Previous Plan”), and no future grants may be made under the Previous Plan. However, any outstanding awards or grants made under the Previous Plan will continue until the end of their specified terms.

In the first half of 2021, our Board of Directors granted 0.3 million stock options, 0.2 million performance share units, and 0.2 million restricted share units under the Plan.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following table details the weighted-average grant-date fair values and the assumptions used for estimating the fair values of stock option grants made during the six months ended June 30, 2021:

	Stock Options
Weighted-average grant-date fair value	$	5.94
Expected life, in years		6.0
Risk-free interest rate		0.76	%
Expected volatility		40.39	%

The weighted-average grant date fair value of our performance share units granted in the six months ended June 30, 2021, was $16.00. We measure the fair value of performance share units based on the closing market price of our common stock on the date of the grant. These shares are evaluated each reporting period for respective attainment rates against the performance criteria.

The weighted-average grant date fair value of our restricted share units granted in the six months ended June 30, 2021, was $15.07. We measure the fair value of restricted share units based on the closing market price of our common stock on the date of the grant. The restricted share units vest over three years.

We recognized stock-based compensation expense of $2.7 million and $5.1 million for the three and six months ended June 30, 2021, respectively, and $2.7 million and $5.5 million for the three and six months ended June 30, 2020, respectively. At June 30, 2021, unearned compensation cost related to the unvested portion of all stock-based compensation awards was approximately $11.9 million and is expected to be recognized over the remaining vesting period of the respective grants, through the first quarter of 2024.

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Restructuring And Optimization Programs

6 Months Ended

Jun. 30, 2021

Restructuring And Optimization Programs [Abstract]

Restructuring And Optimization Programs

14.    Restructuring and Optimization Programs

Total restructuring charges were $2.0 million and $7.2 million for the three and six months ended June 30, 2021, respectively, and $8.6 million and $9.8 million for the three and six months ended June 30, 2020, respectively. As discussed in Note 4, our Tile Coatings business was classified as held-for-sale during the fourth quarter of 2019. As such, there were additional restructuring charges of $0.3 million for the six months ended June 30, 2021 and $1.7 million and $2.0 million for the three and six months ended June 30, 2020, respectively, classified as Net income from discontinued operations, net of income taxes.

Organizational Optimization Plan

In conjunction with the sale of the Tile Coatings business, discussed in Note 4, we developed our Organizational Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. As a result of these actions, the Company expects to incur total charges of approximately $5.7 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized throughout the remainder of 2021. Charges associated with the program were $1.0 million and $3.1 million for the three and six months ended June 30, 2021, respectively.

Americas Manufacturing Optimization Plan

In the second quarter of 2019, we developed our Americas Manufacturing Optimization Plan and initiated a program across the organization with the objective of realigning the business and lowering our cost structure. The Americas Manufacturing Optimization Plan is focused on the construction of a new manufacturing center of excellence located in Villagran, Mexico. We are in the process of consolidating two plants located in the United States and two sites in Latin America into the expanded Villagran location. As a result of these actions, the Company expects to incur total charges of approximately $9.5 million, substantially all of which will be for anticipated severance costs. The remaining activities of the program are expected to be recognized within the next 12 months. Charges associated with the program were $0.7 million and $2.4 million for the three and six months ended June 30, 2021, respectively, and $0.8 million and $1.0 million for the three and six months ended June 30, 2020, respectively.

Global Optimization Plan

The program involves our global operations and certain functions and initiatives to increase operational efficiencies, some of which is associated with integration of our acquisitions. Actions associated with the Global Optimization Plan were substantially completed, and as such, we do not anticipate material charges related to this plan for the remainder of 2021. Charges associated with the program were $0.3 million and $1.7 million for the three and six months ended June 30, 2021, respectively, and $7.8 million and $8.8 million for the three and six months ended June 30, 2020, respectively.

The charges associated with these programs are further summarized below.

	Employee		Other
(Dollars in thousands)	Severance		Costs		Total
Balances at December 31, 2020	$	5,510	$	4,460	$	9,970
Restructuring charges		5,439		1,715		7,154
Cash payments		(6,005)		(1,025)		(7,030)
Balances at June 30, 2021	$	4,944	$	5,150	$	10,094

We expect to make cash payments to settle the remaining liability for employee severance benefits and other costs over the next twelve months, except where legal or contractual obligations would require it to extend beyond that period.

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Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

15.    Earnings Per Share

Details of the calculation of basic and diluted earnings per share are shown below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share amounts)	2021		2020		2021		2020
Basic earnings per share computation:
Income (loss) from continuing operations	$	17,427	$	(1,926)	$	35,985	$	13,986
Less: Net income attributable to noncontrolling interests from continuing operations		382		309		755		342
Net income (loss) attributable to Ferro Corporation from continuing operations		17,045		(2,235)		35,230		13,644
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests from discontinued operations		—		67		64		44
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.21	$	(0.03)	$	0.43	$	0.17
Diluted earnings per share computation:
Net income (loss) attributable to Ferro Corporation from continuing operations	$	17,045	$	(2,235)	$	35,230	$	13,644
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Assumed exercise of stock options		562		543		478		799
Assumed satisfaction of restricted stock unit conditions		123		93		169		109
Assumed satisfaction of performance share unit conditions		159		45		128		200
Weighted-average diluted shares outstanding		83,509		82,927		83,356		83,279
Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.20	$	(0.03)	$	0.42	$	0.16

The number of anti-dilutive shares were 2.1 million and 2.2 million for the three and six months ended June 30, 2021, respectively, and 2.7 million and 2.3 million for the three and six months ended June 30, 2020, respectively. These shares are excluded from the calculation of diluted earnings per share due to their anti-dilutive impact.

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Share Repurchase Programs

6 Months Ended

Jun. 30, 2021

Share Repurchase Programs [Abstract]

Share Repurchase Programs

16.    Share Repurchase Programs

The Company’s Board of Directors has approved share repurchase programs under which the Company is authorized to repurchase up to $150 million of the Company’s outstanding shares of common stock on the open market, including through a Rule 10b5-1 plan, or in privately negotiated transactions.

The timing and amount of shares to be repurchased will be determined by the Company, based on evaluation of market and business conditions, share price, and other factors, including limitations contained in the Merger Agreement with Prince. The share repurchase programs do not obligate the Company to repurchase any dollar amount or number of common shares, and may be suspended or discontinued at any time.

As of June 30, 2021, $46.2 million remains authorized under the programs for the repurchase of common stock.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

17.    Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, were as follows:

	Three Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at March 31, 2020		$	1,206	$	(115,847)	$	(22,047)	$	(136,688)
Other comprehensive income (loss) before reclassifications, before tax			—		3,388		(5,836)		(2,448)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		4,177		4,177
Current period other comprehensive income (loss), before tax			—		3,388		(1,659)		1,729
Tax effect			—		(505)		(99)		(604)
Current period other comprehensive income (loss), net of tax			—		3,893		(1,560)		2,333
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at March 31, 2021		$	3,329	$	(131,509)	$	(15,641)	$	(143,821)
Other comprehensive income (loss) before reclassifications, before tax			—		1,564		(773)		791
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			(1)		—		—		(1)
Cash flow hedge income (loss), before tax			—		—		2,387		2,387
Current period other comprehensive income (loss), before tax			(1)		1,564		1,614		3,177
Tax effect			—		338		331		669
Current period other comprehensive income (loss), net of tax			(1)		1,226		1,283		2,508
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

	Six Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at December 31, 2019		$	1,206	$	(97,575)	$	(13,007)	$	(109,376)
Other comprehensive income (loss) before reclassifications, before tax			—		(14,449)		(13,452)		(27,901)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		(115)		(115)
Current period other comprehensive income (loss), before tax			—		(14,449)		(13,567)		(28,016)
Tax effect			—		(70)		(2,967)		(3,037)
Current period other comprehensive income (loss), net of tax			—		(14,379)		(10,600)		(24,979)
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at December 31, 2020		$	3,199	$	(70,482)	$	(22,427)	$	(89,710)
Other comprehensive income (loss) before reclassifications, before tax			—		(76,466)		3,361		(73,105)
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			129		—		—		129
Currency translation reclassification to income on divestiture			—		17,305		—		17,305
Amount reclassification to income (remote transaction)			—		—		4,509		4,509
Cash flow hedge income (loss), before tax			—		—		1,242		1,242
Current period other comprehensive income (loss), before tax			129		(59,161)		9,112		(49,920)
Tax effect			—		640		1,043		1,683
Current period other comprehensive income (loss), net of tax			129		(59,801)		8,069		(51,603)
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

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Reporting For Segments

6 Months Ended

Jun. 30, 2021

Reporting For Segments [Abstract]

Reporting For Segments

18.    Reporting for Segments

Net sales to external customers by segment are presented in the table below. Sales between segments were not material.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	194,909	$	131,672	$	379,731	$	287,107
Color Solutions		99,422		73,129		202,958		170,020
Total net sales	$	294,331	$	204,801	$	582,689	$	457,127

Each segment’s gross profit and reconciliation to income before income taxes are presented in the table below:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	59,521	$	36,119	$	121,397	$	83,936
Color Solutions		36,692		26,985		70,360		60,772
Other cost of sales		(1,378)		640		(1,819)		(226)
Total gross profit		94,835		63,744		189,938		144,482
Selling, general and administrative expenses		59,026		50,541		112,864		106,587
Restructuring and impairment charges		1,970		8,619		7,154		9,784
Other expense, net		7,910		6,310		17,789		8,808
Income (loss) before income taxes	$	25,929	$	(1,726)	$	52,131	$	19,303

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Recent Accounting Pronouncements (Policy)

6 Months Ended

Jun. 30, 2021

Recent Accounting Pronouncements [Abstract]

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

This section provides a description of new accounting pronouncements ("Accounting Standard Update" or "ASU") issued by the Financial Accounting Standards Board ("FASB") that are applicable to the Company.

New Accounting Standards Not Yet Adopted

New Accounting Standards Not Yet Adopted

We are currently evaluating the impact on our financial statements of the following ASUs:

Standard	Description
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, issued March, 2020	Provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU are effective for all entities through December 31, 2022.

No other new accounting pronouncements issued had, or are expected to have, a material impact on the Company’s consolidated financial statements.

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Revenue (Tables)

6 Months Ended

Jun. 30, 2021

Revenue [Abstract]

Revenues Disaggregated By Geography And Reportable Segment

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	92,569	$	72,046	$	30,294	$	194,909
Color Solutions		37,958		50,014		11,450		99,422
Total net sales	$	130,527	$	122,060	$	41,744	$	294,331

Revenues disaggregated by geography and reportable segment for the three months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	51,071	$	58,868	$	21,733	$	131,672
Color Solutions		27,874		36,145		9,110		73,129
Total net sales	$	78,945	$	95,013	$	30,843	$	204,801

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2021, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	179,941	$	139,964	$	59,826	$	379,731
Color Solutions		77,000		103,868		22,090		202,958
Total net sales	$	256,941	$	243,832	$	81,916	$	582,689

Revenues disaggregated by geography and reportable segment for the six months ended June 30, 2020, follow:

(Dollars in thousands)	EMEA		Americas		Asia Pacific		Total
Functional Coatings	$	126,928	$	116,690	$	43,489	$	287,107
Color Solutions		65,763		85,851		18,406		170,020
Total net sales	$	192,691	$	202,541	$	61,895	$	457,127

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations [Abstract]

Summary Of Discontinued Operations

The table below summarizes results for the Tile Coatings business for the three and six months ended June 30, 2021 and 2020, which are reflected in our consolidated statements of operations as discontinued operations, net of income taxes. Interest expense has been allocated to the discontinued operations based on the ratio of net assets of the business to consolidated net assets excluding debt.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Net sales	$	—	$	75,254	$	83,579	$	190,004
Cost of sales		—		59,073		60,634		145,975
Gross profit		—		16,181		22,945		44,029
Selling, general and administrative expenses		—		15,542		20,327		34,350
Restructuring and impairment charges		—		1,758		303		2,037
Interest expense		—		2,517		1,682		4,748
Interest earned		—		(129)		(189)		(153)
Foreign currency losses (gains), net		—		(804)		363		4,961
Gain on sale of business, net		—		—		(100,057)		—
Miscellaneous expense, net		—		705		251		1,247
Income (loss) from discontinued operations before income taxes		—		(3,408)		100,265		(3,161)
Income tax expense (benefit)		1,536		(170)		11,959		(144)
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests		—		67		64		44
Net income (loss) attributable to Tile Coatings business	$	(1,536)	$	(3,305)	$	88,242	$	(3,061)

The following table summarizes the assets and liabilities which are classified as held-for-sale at December 31, 2020:

	December 31,
(Dollars in thousands)	2020
Cash and cash equivalents	$	8,200
Accounts receivable, net		211,548
Inventories		84,239
Other receivables		1,630
Other current assets		2,237
Current assets held-for-sale		307,854
Property, plant and equipment, net		93,430
Intangible assets, net		42,126
Deferred income taxes		12,267
Other non-current assets		6,384
Non-current assets held-for-sale		154,207
Total assets held-for-sale	$	462,061
Loans payable and current portion of long-term debt	$	3,927
Accounts payable		85,308
Accrued payrolls		5,946
Accrued expenses and other current liabilities		12,364
Current liabilities held-for-sale		107,545
Long-term debt, less current portion		56,359
Postretirement and pension liabilities		8,119
Other non-current liabilities		6,671
Non-current liabilities held-for-sale		71,149
Total liabilities held-for-sale	$	178,694

The following table summarizes cash flow data relating to discontinued operations for the six months ended June 30, 2021 and 2020:

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Capital expenditures	$	(1,074)	$	(1,909)
Gain on sale of discontinued operations		(100,057)		—
Non-cash operating activities - restructuring and impairment charges		—		1,070
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end		—		507

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventories [Abstract]

Inventories

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Raw materials	$	75,348	$	81,344
Work in process		45,566		48,770
Finished goods		139,323		130,218
Total inventories	$	260,237	$	260,332

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Goodwill And Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill And Other Intangible Assets [Abstract]

Details And Activity Of Goodwill By Segment

	Functional		Color
(Dollars in thousands)	Coatings		Solutions		Total
Goodwill, net at December 31, 2020	$	123,570	$	51,781	$	175,351
Foreign currency adjustments		(1,061)		(285)		(1,346)
Goodwill, net at June 30, 2021	$	122,509	$	51,496	$	174,005

Schedule Of Impairment Of Goodwill

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Goodwill, gross	$	232,472	$	233,818
Accumulated impairment		(58,467)		(58,467)
Goodwill, net	$	174,005	$	175,351

Details Of Amortizable Intangible Assets

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Gross amortizable intangible assets:
Patents	$	5,540	$	5,589
Land rights		3,209		3,173
Technology/know-how and other		116,455		116,015
Customer relationships		66,944		68,142
Total gross amortizable intangible assets		192,148		192,919
Accumulated amortization:
Patents		(5,518)		(5,566)
Land rights		(1,693)		(1,630)
Technology/know-how and other		(66,116)		(61,104)
Customer relationships		(19,290)		(18,317)
Total accumulated amortization		(92,617)		(86,617)
Amortizable intangible assets, net	$	99,531	$	106,302

Schedule Of Indefinite-Lived Intangible Assets

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Indefinite-lived intangibles assets:
Trade names and trademarks	$	13,014	$	13,198

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt [Abstract]

Loans Payable And Current Portion Of Long-Term Debt

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Current portion of long-term debt	$	8,871	$	8,839
Loans payable and current portion of long-term debt	$	8,871	$	8,839

Summary Of Long-Term Debt

	June 30,		December 31,
(Dollars in thousands)	2021		2020
Term loan facility, net of unamortized issuance costs, maturing 2024(1)	$	356,978	$	793,731
Finance lease obligations		2,733		2,911
Other notes		3,889		3,706
Total long-term debt		363,600		800,348
Current portion of long-term debt		(8,871)		(8,839)
Long-term debt, less current portion	$	354,729	$	791,509

(1)The carrying value of the term loan facility, maturing 2024, is net of unamortized debt issuance costs of $1.4 million at June 30, 2021 and $3.7 million at December 31, 2020.

Schedule Of Trade Accounts Receivable In International Receivable Sales Programs

	Six Months Ended
	June 30,
(Dollars in thousands)	2021		2020
Trade accounts receivable sold to financial institutions	$	312,676	$	91,048
Cash proceeds from financial institutions (1)		250,927		58,794

(1)Excluded from the table above, in the six months ended June 30, 2020, our Tile Coatings business received cash proceeds from financial institutions of $47.3 million. Refer to Note 4 for additional discussion of the Tile Coatings business and its classification as discontinued operations.

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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Financial Instruments Assets (Liabilities) Measured At Fair Value

	June 30, 2021
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	143,717	$	143,717	$	143,717	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(356,978)		(356,149)		—		(356,149)		—
Other long-term notes payable		(3,889)		(2,342)		—		(2,342)		—
Cross currency swaps		495		495		—		495		—
Interest rate swaps		(19,385)		(19,385)		—		(19,385)		—
Foreign currency forward contracts, net		(3,454)		(3,454)		—		(3,454)		—

	December 31, 2020
	Carrying		Fair Value
(Dollars in thousands)	Amount		Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	174,077	$	174,077	$	174,077	$	—	$	—
Term loan facility - Amended Credit Facility (1)		(793,731)		(783,143)		—		(783,143)		—
Other long-term notes payable		(3,706)		(1,887)		—		(1,887)		—
Cross currency swaps		(5,162)		(5,162)		—		(5,162)		—
Interest rate swaps		(24,694)		(24,694)		—		(24,694)		—
Foreign currency forward contracts, net		2,019		2,019		—		2,019		—

(1)The carrying value of the term loan facility is net of unamortized debt issuance costs of $1.4 million and $3.7 million for the period ended June 30, 2021, and December 31, 2020, respectively.

Schedule Of Gain (Loss) Recognized In AOCI And The Amount Of Gain (Loss) Reclassified Into Earnings

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the three months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	(385)	$	(1,934)	$	(1,841)	$	(824)	Interest expense
Cross currency swaps		(388)		(3,902)		(113)		851	Interest expense
					$	(1,954)	$	27	Total Interest expense
Cross currency swaps						(433)		(4,204)	Foreign currency losses (gains), net
					$	(433)	$	(4,204)	Total Foreign currency losses (gains), net

The amount of gain (loss) recognized in AOCL and the amount of loss (gain) reclassified into earnings for the six months ended June 30, 2021 and 2020, follow:

					Amount of Loss (Gain)
	Amount of Gain (Loss)				Reclassified from				Location of Gain (Loss)
	Recognized in AOCL				AOCL into Income				Reclassified from
(Dollars in thousands)	2021		2020		2021		2020		AOCL into Income
Interest rate swaps	$	1,053	$	(14,808)	$	(3,613)	$	(1,322)	Interest expense
Cross currency swaps		2,308		1,356		(123)		2,019	Interest expense
					$	(3,736)	$	697	Total Interest expense
Cross currency swaps						2,494		(582)	Foreign currency losses (gains), net
					$	2,494	$	(582)	Total Foreign currency losses (gains), net

Effect On Derivative Instruments On Consolidated Statements Of Operations

	Three months ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Interest expense	$	5,006	$	6,177	$	14,443	$	11,707
Foreign currency losses (gains), net		3,209		1,143		4,367		(172)

Gain (Loss) On Net Investment Hedges Recognized In AOCI, Amount Reclassified Into Earnings And Gain Recognized In Income On Derivative

The amount of gain (loss) on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the three months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	(1,569)	$	—	$	612	Interest expense

The amount of gain on net investment hedges recognized in AOCL and the amount of gain recognized in income on derivative (amount excluded from effectiveness testing) for the six months ended June 30, 2021 and 2020, follow:

					Amount of Gain
					Recognized in Income on
	Amount of Gain (Loss)				Derivative (Amount Excluded				Location of Gain
	Recognized in AOCL				from Effectiveness Testing)				in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Cross currency swaps	$	—	$	1,090	$	—	$	1,392	Interest expense

Fair Value Of Derivative Instruments On Consolidated Balance Sheets

	June 30,		December 31,
(Dollars in thousands)	2021		2020		Balance Sheet Location
Asset derivatives:
Cross currency swaps	$	9	$	9	Other current assets
Cross currency swaps		486		—	Other non-current assets
Foreign currency forward contracts		1,118		2,649	Other current assets
Liability derivatives:
Interest rate swaps	$	(8,415)	$	(8,436)	Accrued expenses and other current liabilities
Interest rate swaps		(10,970)		(16,258)	Other non-current liabilities
Cross currency swaps		—		(67)	Accrued expenses and other current liabilities
Cross currency swaps		—		(5,104)	Other non-current liabilities
Foreign currency forward contracts		(4,572)		(630)	Accrued expenses and other current liabilities

Not Designated as Hedging Instrument [Member]

Effect On Derivative Instruments On Consolidated Statements Of Operations

	Amount of Gain (Loss)				Amount of Gain (Loss)
	Recognized in Earnings				Recognized in Earnings
	Three Months Ended				Six Months Ended
	June 30,				June 30,				Location of Gain (Loss) in Earnings
(Dollars in thousands)	2021		2020		2021		2020
Foreign currency forward contracts	$	(1,280)	$	142	$	(7,546)	$	410	Foreign currency losses (gains), net

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Retirement Benefits (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Net Periodic Benefit Cost (Credit)

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the three months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Three Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	3	$	333	$	294	$	—	$	—
Interest cost		1,881		2,388		343		343		68		133
Expected return on plan assets		(3,824)		(3,708)		(116)		(116)		—		—
Amortization of prior service cost		—		—		(21)		(4)		—		—
Net periodic benefit (credit) cost	$	(1,943)	$	(1,317)	$	539	$	517	$	68	$	133

Net periodic benefit cost (credit) of our U.S. pension plans (including our unfunded nonqualified plans), non-U.S. pension plans, and postretirement health care and life insurance benefit plans for the six months ended June 30, 2021 and 2020, respectively, follow:

	U.S. Pension Plans				Non-U.S. Pension Plans				Other Benefit Plans
	Six Months Ended June 30,
(Dollars in thousands)	2021		2020		2021		2020		2021		2020
Service cost	$	—	$	6	$	672	$	579	$	—	$	1
Interest cost		3,761		4,775		678		673		136		265
Expected return on plan assets		(7,648)		(7,416)		(230)		(228)		—		—
Amortization of prior service cost		—		—		(41)		(9)		—		—
Net periodic benefit (credit) cost	$	(3,887)	$	(2,635)	$	1,079	$	1,015	$	136	$	266

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Stock-Based Compensation [Abstract]

Details Of Weighted-Average Grant-Date Fair Values And Assumptions Used For Estimating Fair Values

	Stock Options
Weighted-average grant-date fair value	$	5.94
Expected life, in years		6.0
Risk-free interest rate		0.76	%
Expected volatility		40.39	%

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Restructuring And Optimization Programs (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring And Optimization Programs [Abstract]

Summary Of Accruals Related To Restructuring And Optimization Programs

	Employee		Other
(Dollars in thousands)	Severance		Costs		Total
Balances at December 31, 2020	$	5,510	$	4,460	$	9,970
Restructuring charges		5,439		1,715		7,154
Cash payments		(6,005)		(1,025)		(7,030)
Balances at June 30, 2021	$	4,944	$	5,150	$	10,094

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Calculations Of Basic And Diluted Earnings Per Share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share amounts)	2021		2020		2021		2020
Basic earnings per share computation:
Income (loss) from continuing operations	$	17,427	$	(1,926)	$	35,985	$	13,986
Less: Net income attributable to noncontrolling interests from continuing operations		382		309		755		342
Net income (loss) attributable to Ferro Corporation from continuing operations		17,045		(2,235)		35,230		13,644
Income (loss) from discontinued operations, net of income taxes		(1,536)		(3,238)		88,306		(3,017)
Less: Net income attributable to noncontrolling interests from discontinued operations		—		67		64		44
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.21	$	(0.03)	$	0.43	$	0.17
Diluted earnings per share computation:
Net income (loss) attributable to Ferro Corporation from continuing operations	$	17,045	$	(2,235)	$	35,230	$	13,644
Net income (loss) attributable to Ferro Corporation from discontinued operations		(1,536)		(3,305)		88,242		(3,061)
Total	$	15,509	$	(5,540)	$	123,472	$	10,583
Weighted-average common shares outstanding		82,665		82,246		82,581		82,171
Assumed exercise of stock options		562		543		478		799
Assumed satisfaction of restricted stock unit conditions		123		93		169		109
Assumed satisfaction of performance share unit conditions		159		45		128		200
Weighted-average diluted shares outstanding		83,509		82,927		83,356		83,279
Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$	0.20	$	(0.03)	$	0.42	$	0.16

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Loss [Abstract]

Changes In Accumulated Other Comprehensive Loss By Component, Net Of Tax

	Three Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at March 31, 2020		$	1,206	$	(115,847)	$	(22,047)	$	(136,688)
Other comprehensive income (loss) before reclassifications, before tax			—		3,388		(5,836)		(2,448)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		4,177		4,177
Current period other comprehensive income (loss), before tax			—		3,388		(1,659)		1,729
Tax effect			—		(505)		(99)		(604)
Current period other comprehensive income (loss), net of tax			—		3,893		(1,560)		2,333
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at March 31, 2021		$	3,329	$	(131,509)	$	(15,641)	$	(143,821)
Other comprehensive income (loss) before reclassifications, before tax			—		1,564		(773)		791
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			(1)		—		—		(1)
Cash flow hedge income (loss), before tax			—		—		2,387		2,387
Current period other comprehensive income (loss), before tax			(1)		1,564		1,614		3,177
Tax effect			—		338		331		669
Current period other comprehensive income (loss), net of tax			(1)		1,226		1,283		2,508
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

	Six Months Ended June 30,
		Postretirement		Foreign		Net Gain (Loss)
		Benefit Liability		Currency		on Cash Flow
(Dollars in thousands)		Adjustments		Items		Hedges		Total
Balances at December 31, 2019		$	1,206	$	(97,575)	$	(13,007)	$	(109,376)
Other comprehensive income (loss) before reclassifications, before tax			—		(14,449)		(13,452)		(27,901)
Reclassification to earnings:
Cash flow hedge income (loss), before tax			—		—		(115)		(115)
Current period other comprehensive income (loss), before tax			—		(14,449)		(13,567)		(28,016)
Tax effect			—		(70)		(2,967)		(3,037)
Current period other comprehensive income (loss), net of tax			—		(14,379)		(10,600)		(24,979)
Balances at June 30, 2020		$	1,206	$	(111,954)	$	(23,607)	$	(134,355)
Balances at December 31, 2020		$	3,199	$	(70,482)	$	(22,427)	$	(89,710)
Other comprehensive income (loss) before reclassifications, before tax			—		(76,466)		3,361		(73,105)
Reclassification to earnings:
Postretirement benefit liabilities income (loss), before tax			129		—		—		129
Currency translation reclassification to income on divestiture			—		17,305		—		17,305
Amount reclassification to income (remote transaction)			—		—		4,509		4,509
Cash flow hedge income (loss), before tax			—		—		1,242		1,242
Current period other comprehensive income (loss), before tax			129		(59,161)		9,112		(49,920)
Tax effect			—		640		1,043		1,683
Current period other comprehensive income (loss), net of tax			129		(59,801)		8,069		(51,603)
Balances at June 30, 2021		$	3,328	$	(130,283)	$	(14,358)	$	(141,313)

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Reporting For Segments (Tables)

6 Months Ended

Jun. 30, 2021

Reporting For Segments [Abstract]

Net Sales To External Customers By Segment

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	194,909	$	131,672	$	379,731	$	287,107
Color Solutions		99,422		73,129		202,958		170,020
Total net sales	$	294,331	$	204,801	$	582,689	$	457,127

Segment's Gross Profit And Reconciliations To Income Before Income Taxes

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands)	2021		2020		2021		2020
Functional Coatings	$	59,521	$	36,119	$	121,397	$	83,936
Color Solutions		36,692		26,985		70,360		60,772
Other cost of sales		(1,378)		640		(1,819)		(226)
Total gross profit		94,835		63,744		189,938		144,482
Selling, general and administrative expenses		59,026		50,541		112,864		106,587
Restructuring and impairment charges		1,970		8,619		7,154		9,784
Other expense, net		7,910		6,310		17,789		8,808
Income (loss) before income taxes	$	25,929	$	(1,726)	$	52,131	$	19,303

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Basis Of Presentation (Details)	May 11, 2021 $ / shares
Basis Of Presentation [Abstract]
Cash will be receive from share of restricted stock converted into the right	$ 22.00

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Revenue (Revenues Disaggregated By Geography And Reportable Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Total net sales	$ 294,331	$ 204,801	$ 582,689	$ 457,127
Functional Coatings [Member]
Disaggregation of Revenue [Line Items]
Total net sales	194,909	131,672	379,731	287,107
Color Solutions [Member]
Disaggregation of Revenue [Line Items]
Total net sales	99,422	73,129	202,958	170,020
EMEA [Member]
Disaggregation of Revenue [Line Items]
Total net sales	130,527	78,945	256,941	192,691
EMEA [Member] | Functional Coatings [Member]
Disaggregation of Revenue [Line Items]
Total net sales	92,569	51,071	179,941	126,928
EMEA [Member] | Color Solutions [Member]
Disaggregation of Revenue [Line Items]
Total net sales	37,958	27,874	77,000	65,763
Americas [Member]
Disaggregation of Revenue [Line Items]
Total net sales	122,060	95,013	243,832	202,541
Americas [Member] | Functional Coatings [Member]
Disaggregation of Revenue [Line Items]
Total net sales	72,046	58,868	139,964	116,690
Americas [Member] | Color Solutions [Member]
Disaggregation of Revenue [Line Items]
Total net sales	50,014	36,145	103,868	85,851
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Total net sales	41,744	30,843	81,916	61,895
Asia Pacific [Member] | Functional Coatings [Member]
Disaggregation of Revenue [Line Items]
Total net sales	30,294	21,733	59,826	43,489
Asia Pacific [Member] | Color Solutions [Member]
Disaggregation of Revenue [Line Items]
Total net sales	$ 11,450	$ 9,110	$ 22,090	$ 18,406

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Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Feb. 25, 2021	Mar. 31, 2021	Jun. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds after expenses			$ 415,230
Tile Coatings [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash from sale of business	$ 460,000
Net proceeds after expenses		$ 415,200
Discontinued Operations [Member] | Tile Coatings [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gains on sale of discontinued operations		$ 100,100	$ 100,057

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Discontinued Operations (Summary Of Statements Of Operations As Discontinued Operations) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Income (loss) from discontinued operations, net of income taxes	$ (1,536)		$ (3,238)	$ 88,306	$ (3,017)
Less: Net income attributable to noncontrolling interests	382		376	819	386
Net income (loss) attributable to Tile Coatings business	15,509		(5,540)	123,472	10,583
Discontinued Operations [Member] | Tile Coatings [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net sales			75,254	83,579	190,004
Cost of sales			59,073	60,634	145,975
Gross profit			16,181	22,945	44,029
Selling, general and administrative expenses			15,542	20,327	34,350
Restructuring and impairment charges			1,758	303	2,037
Interest expense			2,517	1,682	4,748
Interest earned			(129)	(189)	(153)
Foreign currency losses (gains), net			(804)	363	4,961
Gain on sale of business, net		$ (100,100)		(100,057)
Miscellaneous expense, net			705	251	1,247
Income (loss) from discontinued operations before income taxes			(3,408)	100,265	(3,161)
Income tax expense (benefit)	1,536		(170)	11,959	(144)
Income (loss) from discontinued operations, net of income taxes	(1,536)		(3,238)	88,306	(3,017)
Less: Net income attributable to noncontrolling interests			67	64	44
Net income (loss) attributable to Tile Coatings business	$ (1,536)		$ (3,305)	$ 88,242	$ (3,061)

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Discontinued Operations (Summary Of Assets And Liabilities Classified As Held-For-Sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents			$ 8,200
Current assets held-for-sale		$ 307,854
Deferred income taxes	$ 110,735	115,962
Non-current assets held-for-sale		154,207
Current liabilities held-for-sale		107,545
Non-current liabilities held-for-sale		71,149
Tile Coatings [Member] | Discontinued Operations, Held-For-Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash equivalents		8,200
Accounts receivable, net		211,548
Inventories		84,239
Other receivables		1,630
Other current assets		2,237
Current assets held-for-sale		307,854
Property, plant and equipment, net		93,430
Intangible assets, net		42,126
Deferred income taxes		12,267
Other non-current assets		6,384
Non-current assets held-for-sale		154,207
Total assets held-for-sale		462,061
Loans payable and current portion of long-term debt		3,927
Accounts payable		85,308
Accrued payrolls		5,946
Accrued expenses and other current liabilities		12,364
Current liabilities held-for-sale		107,545
Long-term debt, less current portion		56,359
Postretirement and pension liabilities		8,119
Other non-current liabilities		6,671
Non-current liabilities held-for-sale		71,149
Total liabilities held-for-sale		$ 178,694

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Discontinued Operations (Summary Of Cash Flow Data Related To Discontinued Operations) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Non-cash operating activities - restructuring and impairment charges			$ 1,070
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end		$ 1,100	300
Tile Coatings [Member] | Discontinued Operations [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Capital expenditures		(1,074)	(1,909)
Gain on sale of discontinued operations	$ (100,100)	$ (100,057)
Non-cash investing activities - capital expenditures, consisting of unpaid capital expenditure liabilities at period end			$ 507

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Inventories (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Inventories [Abstract]
Terms of precious metals consignment agreements, maximum			1 year
Fees under precious metals consignment agreements	$ 0.8	$ 0.6	$ 1.4	$ 1.7
Fair value of precious metals on hand under consignment agreements	$ 100.7		$ 100.7		$ 87.2

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Inventories (Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventories [Abstract]
Raw materials	$ 75,348	$ 81,344
Work in process	45,566	48,770
Finished goods	139,323	130,218
Total inventories	$ 260,237	$ 260,332

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Property, Plant And Equipment (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment net of accumulated depreciation	$ 452.4		$ 456.3
Unpaid capital expenditure liabilities	$ 1.1	$ 0.3
Discontinued Operations, Held-For-Sale [Member] | Tile Coatings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment net of accumulated depreciation			$ 135.3

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Goodwill And Other Intangible Assets (Details And Activity Of Goodwill By Segment) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill, net at beginning	$ 175,351
Foreign currency adjustments	(1,346)
Goodwill, net at ending	174,005
Functional Coatings [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill, net at beginning	123,570
Foreign currency adjustments	(1,061)
Goodwill, net at ending	122,509
Color Solutions [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill, net at beginning	51,781
Foreign currency adjustments	(285)
Goodwill, net at ending	$ 51,496

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Goodwill And Other Intangible Assets (Schedule Of Impairment Of Goodwill) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill And Other Intangible Assets [Abstract]
Goodwill, gross	$ 232,472	$ 233,818
Accumulated impairment	(58,467)	(58,467)
Goodwill, net	$ 174,005	$ 175,351

XML

Goodwill And Other Intangible Assets (Details Of Amortizable Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amortization Of Intangible Assets [Line Items]
Total gross amortizable intangible assets	$ 192,148	$ 192,919
Total accumulated amortization	(92,617)	(86,617)
Amortizable intangible assets, net	99,531	106,302
Patents [Member]
Amortization Of Intangible Assets [Line Items]
Total gross amortizable intangible assets	5,540	5,589
Total accumulated amortization	(5,518)	(5,566)
Land Rights [Member]
Amortization Of Intangible Assets [Line Items]
Total gross amortizable intangible assets	3,209	3,173
Total accumulated amortization	(1,693)	(1,630)
Technology/Know-how And Other [Member]
Amortization Of Intangible Assets [Line Items]
Total gross amortizable intangible assets	116,455	116,015
Total accumulated amortization	(66,116)	(61,104)
Customer Relationships [Member]
Amortization Of Intangible Assets [Line Items]
Total gross amortizable intangible assets	66,944	68,142
Total accumulated amortization	$ (19,290)	$ (18,317)

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Goodwill And Other Intangible Assets (Schedule Of Indefinite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Trade Names and Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 13,014	$ 13,198

XML

Debt (Narrative) (Details)		6 Months Ended
	Feb. 25, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 EUR (€)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Additional commitments under the revolving line of credit or term loans		$ 250,000,000
Long-term debt		363,600,000		$ 800,348,000
Loss on extinguishment of debt		1,981,000
Accrued expenses and other current liabilities		44,500,000		36,000,000.0
Other Financing Arrangements [Member]
Debt Instrument [Line Items]
Maximum available in form of cash or letters of credit		25,000,000.0		28,100,000
Borrowings available		$ 25,000,000.0		25,000,000.0
Receivable Sales Programs [Member]
Debt Instrument [Line Items]
Debt amount issued | €			€ 85,000,000
Maturity date		Dec. 31, 2023
Outstanding amount		$ 45,100,000		24,500,000
Pecentage of cash receivable of sold receivable		80.00%
Other receivables		$ 9,900,000		$ 9,800,000
Tranche B-1 Loans [Member]
Debt Instrument [Line Items]
Pay down amount	$ 188,300,000
Tranche B-2 Loans [Member]
Debt Instrument [Line Items]
Pay down amount	124,700,000
Tranche B-3 Loans [Member]
Debt Instrument [Line Items]
Pay down amount	122,000,000.0
Tranche B-1, B-2, And B-3 [Member]
Debt Instrument [Line Items]
Pay down amount	$ 435,000,000.0
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.00%
Rate		1.50%	1.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt Instrument [Line Items]
Rate		2.50%	2.50%
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Rate		0.50%	0.50%
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Rate		1.50%	1.50%
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Amended Credit Facility [Member]
Debt Instrument [Line Items]
Borrowings available		$ 495,800,000
2018 Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Borrowings under revolving line of credit		$ 0
Secured Debt [Member] | Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
Rate		2.25%	2.25%
Secured Debt [Member] | Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.00%
Secured Debt [Member] | Secured Term Loan Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Rate		1.25%	1.25%
Secured Debt [Member] | Secured Term Loan Facility [Member] | Federal Funds Effective Swap Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
Secured Debt [Member] | Tranche B-1 Loans [Member]
Debt Instrument [Line Items]
Debt stated interest rate		2.40%	2.40%
Long-term debt		$ 155,100,000
Secured Debt [Member] | Tranche B-2 Loans [Member]
Debt Instrument [Line Items]
Debt stated interest rate		2.40%	2.40%
Long-term debt		$ 102,700,000
Secured Debt [Member] | Tranche B-3 Loans [Member]
Debt Instrument [Line Items]
Debt stated interest rate		2.40%	2.40%
Long-term debt		$ 100,500,000
Secured Debt [Member] | Tranche B-1, B-2, And B-3 [Member]
Debt Instrument [Line Items]
Additional borrowings available under the term loan facility		$ 0
Rate		4.83%	4.83%
Secured Debt [Member] | Amended Credit Facility [Member]
Debt Instrument [Line Items]
Equal quarterly installments in an amount equal to percentage of the original principal amount of the term loans		0.25%
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Revolving Line Of Credit 500 Million [Member]
Debt Instrument [Line Items]
Debt facility amount		$ 500,000,000
Maturity date		Feb. 14, 2023
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $355 Million [Member]
Debt Instrument [Line Items]
Debt amount issued		$ 355,000,000
Maturity date		Feb. 14, 2024
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $235 Million [Member]
Debt Instrument [Line Items]
Debt amount issued		$ 235,000,000
Maturity date		Feb. 14, 2024
Secured Debt [Member] | Amended Credit Facility [Member] | Secured Term Loan Facility $230 Million [Member]
Debt Instrument [Line Items]
Debt amount issued		$ 230,000,000
Maturity date		Feb. 14, 2024
U.S. Subsidiaries [Member]
Debt Instrument [Line Items]
Stock pledged as collateral, percentage		100.00%
Foreign Subsidiaries [Member]
Debt Instrument [Line Items]
Stock pledged as collateral, percentage		65.00%

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Debt (Loans Payable And Current Portion Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Current portion of long-term debt	$ 8,871	$ 8,839
Current portion of long-term debt [Member]
Short-term Debt [Line Items]
Current portion of long-term debt	8,871	8,839
Loans Payable And Current Portion Of Long Term Debt [Member]
Short-term Debt [Line Items]
Current portion of long-term debt	$ 8,871	$ 8,839

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Debt (Summary Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total long-term debt	$ 363,600	$ 800,348
Current portion of long-term debt	(8,871)	(8,839)
Long-term debt, less current portion	354,729	791,509
Term Loan Facility, Net Of Unamortized Issuance Costs, Maturing 2024 [Member]
Debt Instrument [Line Items]
Total long-term debt	356,978	793,731
Unamortized debt issuance costs	1,400	3,700
Finance Lease Obligations [Member]
Debt Instrument [Line Items]
Total long-term debt	2,733	2,911
Other Notes [Member]
Debt Instrument [Line Items]
Total long-term debt	$ 3,889	$ 3,706

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Debt (Schedule Of Trade Accounts Receivable In International Receivable Sales Programs) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Trade accounts receivable sold to financial institutions	$ 312,676	$ 91,048
Cash proceeds from financial institutions	250,927	$ 58,794
Discontinued Operations, Held-For-Sale [Member] | Tile Coating Systems [Member]
Debt Instrument [Line Items]
Cash proceeds from financial institutions	$ 47,300

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Financial Instruments (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Gain (loss) from the change in fair value of financial instruments	$ 0.2	$ 0.1	$ (6.1)	$ 0.4
Payments to settle derivatives termination			3.5
Amount reclassified from AOCL to Interest expense of remote transaction			4.5
Notional amount	776.7		$ 776.7		$ 494.2
Interest Rate Swaps [Member] | Cash Flow Hedging [Member]
Derivative, maturity date			Feb. 14, 2024
Notional amount	309.6		$ 309.6
Net loss to be reclassified during next 12 months, net	8.4		$ 8.4
Cross Currency Swaps [Member] | Cash Flow Hedging [Member]
Derivative, maturity date			Feb. 14, 2024
Notional amount	38.7		$ 38.7
Net gain to be reclassified during next 12 months, net	$ 0.1		$ 0.1

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Financial Instruments (Financial Instruments Assets (Liabilities) Measured At Fair Value) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Financial Instruments And Fair Value Measurements [Line Items]
Cash and cash equivalents, Carrying Amount	$ 143,717	$ 174,077	$ 62,031
Long-term debt, Carrying Amount	(363,600)	(800,348)
Cash and cash equivalents, Fair Value	143,717	174,077
Cross Currency Swaps [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Cross currency swaps-assets, Carrying Amount	495
Cross currency swaps-liabilities, Carrying Amount		(5,162)
Cross currency swaps, Fair Value		(5,162)
Cross currency swaps, Fair Value	495
Interest Rate Swaps [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Interest rate swaps-liabilities, Carrying Amount	(19,385)	(24,694)
Interest rate swaps-liabilities, Fair Value	(19,385)	(24,694)
Foreign Currency Forward Contracts [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Foreign currency forward contracts, net, Carrying amount		2,019
Foreign currency forward contracts, net, Carrying amount	(3,454)
Foreign currency forward contracts, net, Fair Value		2,019
Foreign currency forward contracts, net, Fair Value	(3,454)
Term Loan Facility - Amended Credit Facility [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Long-term debt, Carrying Amount	(356,978)	(793,731)
Long-term debt, Fair Value	(356,149)	(783,143)
Unamortized debt issuance costs	1,400	3,700
Other Long-Term Notes Payable [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Long-term debt, Carrying Amount	(3,889)	(3,706)
Long-term debt, Fair Value	(2,342)	(1,887)
Level 1 [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Cash and cash equivalents, Fair Value	143,717	174,077
Level 2 [Member] | Cross Currency Swaps [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Cross currency swaps, Fair Value		(5,162)
Cross currency swaps, Fair Value	495
Level 2 [Member] | Interest Rate Swaps [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Interest rate swaps-liabilities, Fair Value	(19,385)	(24,694)
Level 2 [Member] | Foreign Currency Forward Contracts [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Foreign currency forward contracts, net, Fair Value		2,019
Foreign currency forward contracts, net, Fair Value	(3,454)
Level 2 [Member] | Term Loan Facility - Amended Credit Facility [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Long-term debt, Fair Value	(356,149)	(783,143)
Level 2 [Member] | Other Long-Term Notes Payable [Member]
Financial Instruments And Fair Value Measurements [Line Items]
Long-term debt, Fair Value	$ (2,342)	$ (1,887)

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Financial Instruments (Schedule Of Gain (Loss) Recognized In AOCI And The Amount Of Gain (Loss) Reclassified Into Earnings) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest Expense [Member]
Amount of Loss (Gain) Reclassified from AOCL into Income	$ (1,954)	$ 27	$ (3,736)	$ 697
Foreign Currency Losses (Gains), Net [Member]
Amount of Loss (Gain) Reclassified from AOCL into Income	(433)	(4,204)	2,494	(582)
Interest Rate Swaps [Member] | Interest Expense [Member]
Amount of Gain (Loss) Recognized in AOCL	(385)	(1,934)	1,053	(14,808)
Amount of Loss (Gain) Reclassified from AOCL into Income	(1,841)	(824)	(3,613)	(1,322)
Cross Currency Swaps [Member] | Interest Expense [Member]
Amount of Gain (Loss) Recognized in AOCL	(388)	(3,902)	2,308	1,356
Amount of Loss (Gain) Reclassified from AOCL into Income	(113)	851	(123)	2,019
Cross Currency Swaps [Member] | Foreign Currency Losses (Gains), Net [Member]
Amount of Loss (Gain) Reclassified from AOCL into Income	$ (433)	$ (4,204)	$ 2,494	$ (582)

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Financial Instruments (Effect On Derivative Instruments On Consolidated Statements Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ 5,006	$ 6,177	$ 14,443	$ 11,707
Foreign currency losses (gains), net	3,209	1,143	4,367	(172)
Foreign Currency Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency losses (gains), net	$ (1,280)	$ 142	$ (7,546)	$ 410

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Financial Instruments (Gain (Loss) On Net Investment Hedges Recognized In AOCI, Amount Reclassified Into Earnings And Gain Recognized In Income On Derivative) (Details) - Cross Currency Swaps [Member] - Net Investment Hedging [Member] - Interest Expense [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Amount of Gain (Loss) Recognized in AOCL		$ (1,569)		$ 1,090
Amount of Gain Recognized in Income of Derivative (Amount Excluded from Effectiveness Testing)		$ 612		$ 1,392

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Financial Instruments (Fair Value Of Derivative Instruments On Consolidated Balance Sheets) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other Current Assets [Member] | Cross Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	$ 9	$ 9
Other Current Assets [Member] | Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	1,118	2,649
Other Assets [Member] | Cross Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives	486
Accrued Expenses And Other Current Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	(8,415)	(8,436)
Accrued Expenses And Other Current Liabilities [Member] | Cross Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives		(67)
Accrued Expenses And Other Current Liabilities [Member] | Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	(4,572)	(630)
Other Non-Current Liabilities [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives	$ (10,970)	(16,258)
Other Non-Current Liabilities [Member] | Cross Currency Swaps [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives		$ (5,104)

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Taxes [Abstract]
Income tax expense	$ 8,502	$ 200	$ 16,146	$ 5,317
Percentage of pre-tax income	31.00%	27.50%	31.00%	27.50%
U.S. federal statutory income tax rate			21.00%	21.00%

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Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Contingent Liabilities [Abstract]
Undiscounted remediation liability associated with environmentally contaminated non-operating facility	$ 5.7	$ 5.7

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Retirement Benefits (Net Periodic Benefit Cost (Credit)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 3		$ 6
Interest cost	$ 1,881	2,388	$ 3,761	4,775
Expected return on plan assets	(3,824)	(3,708)	(7,648)	(7,416)
Net periodic benefit (credit) cost	(1,943)	(1,317)	(3,887)	(2,635)
Non-U.S. Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	333	294	672	579
Interest cost	343	343	678	673
Expected return on plan assets	(116)	(116)	(230)	(228)
Amortization of prior service cost	(21)	(4)	(41)	(9)
Net periodic benefit (credit) cost	539	517	1,079	1,015
Other Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost				1
Interest cost	68	133	136	265
Net periodic benefit (credit) cost	$ 68	$ 133	$ 136	$ 266

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Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	May 03, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved under plan					4,500,000
Recognized stock-based compensation expense	$ 2.7	$ 2.7	$ 5.1	$ 5.5
Unearned compensation cost related to the unvested portion of all stock-based awards	$ 11.9		$ 11.9
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share based compensation units granted			300,000
Weighted-average grant-date fair value			$ 5.94
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share based compensation units granted			200,000
Weighted-average grant-date fair value			$ 16.00
Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share based compensation units granted			200,000
Weighted average grant date fair value	$ 15.07		$ 15.07
Vesting period			3 years

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Stock-Based Compensation (Details Of Weighted-Average Grant-Date Fair Values And Assumptions Used For Estimating Fair Values) (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value	$ 5.94
Expected life, in years	6 years
Risk-free interest rate	0.76%
Expected volatility	40.39%

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Restructuring And Optimization Programs (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total restructuring charges	$ 2.0	$ 8.6	$ 7.2	$ 9.8
Period expected for cash payments for employee benefits and other costs			12 months
Organizational Optimization Plan [Member]
Total restructuring charges	1.0		$ 3.1
Total expected restructuring charges	5.7		5.7
Americas Manufacturing Optimization Plan [Member]
Additional restructuring charges	0.7	0.8	2.4	1.0
Total expected restructuring charges	9.5		9.5
Global Optimization Plan [Member]
Total restructuring charges	$ 0.3	7.8	1.7	8.8
Discontinued Operations, Held-For-Sale [Member] | Tile Coating Systems [Member]
Additional restructuring charges		$ 1.7	$ 0.3	$ 2.0

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Restructuring And Optimization Programs (Summary Of Accruals Related To Restructuring And Optimization Programs) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 9,970
Restructuring charges	7,154
Cash payments	(7,030)
Ending balance	10,094
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	5,510
Restructuring charges	5,439
Cash payments	(6,005)
Ending balance	4,944
Other Costs [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance	4,460
Restructuring charges	1,715
Cash payments	(1,025)
Ending balance	$ 5,150

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Earnings Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share	2.1	2.7	2.2	2.3

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Earnings Per Share (Calculations Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic earnings per share computation:
Income (loss) from continuing operations	$ 17,427	$ (1,926)	$ 35,985	$ 13,986
Less: Net income attributable to noncontrolling interests from continuing operations	382	309	755	342
Net income (loss) attributable to Ferro Corporation from continuing operations	17,045	(2,235)	35,230	13,644
Income (loss) from discontinued operations, net of income taxes	(1,536)	(3,238)	88,306	(3,017)
Less: Net income attributable to noncontrolling interests from discontinued operations		67	64	44
Net income (loss) attributable to Ferro Corporation from discontinued operations	(1,536)	(3,305)	88,242	(3,061)
Total	$ 15,509	$ (5,540)	$ 123,472	$ 10,583
Weighted-average common shares outstanding	82,665	82,246	82,581	82,171
Basic earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$ 0.21	$ (0.03)	$ 0.43	$ 0.17
Diluted earnings per share computation:
Net income (loss) attributable to Ferro Corporation from continuing operations	$ 17,045	$ (2,235)	$ 35,230	$ 13,644
Net income (loss) attributable to Ferro Corporation from discontinued operations	(1,536)	(3,305)	88,242	(3,061)
Total	$ 15,509	$ (5,540)	$ 123,472	$ 10,583
Weighted-average common shares outstanding	82,665	82,246	82,581	82,171
Assumed exercise of stock options	562	543	478	799
Assumed satisfaction of restricted stock unit conditions	123	93	169	109
Assumed satisfaction of performance share unit conditions	159	45	128	200
Weighted-average diluted shares outstanding	83,509	82,927	83,356	83,279
Diluted earnings (loss) per share from continuing operations attributable to Ferro Corporation common shareholders	$ 0.20	$ (0.03)	$ 0.42	$ 0.16

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Share Repurchase Programs (Narrative) (Details) $ in Millions	Jun. 30, 2021 USD ($)
Share Repurchase Programs [Abstract]
Stock Repurchase Program, Authorized Amount	$ 150.0
Stock repurchase program, remaining authorized amount	$ 46.2

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Accumulated Other Comprehensive Loss (Changes In Accumulated Other Comprehensive Loss by Component, Net of Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balances			$ 429,967
Reclassification to earnings: Amount reclassification to income (remote transaction)			4,500
Ending Balances	$ 504,006		504,006
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balances	(143,821)	$ (136,688)	(89,710)	$ (109,376)
Other comprehensive income (loss) before reclassifications, before tax	791	(2,448)	(73,105)	(27,901)
Reclassification to earnings: Postretirement benefit liabilities income (loss), before tax	(1)		129
Reclassification to earnings: Currency translation reclassification to income on divestiture			17,305
Reclassification to earnings: Amount reclassification to income (remote transaction)			4,509
Reclassification to earnings: Cash flow hedge income (loss), before tax	2,387	4,177	1,242	(115)
Current period other comprehensive income (loss), before tax	3,177	1,729	(49,920)	(28,016)
Tax effect	669	(604)	1,683	(3,037)
Current period other comprehensive income (loss), net of tax	2,508	2,333	(51,603)	(24,979)
Ending Balances	(141,313)	(134,355)	(141,313)	(134,355)
Postretirement Benefit Liability Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balances	3,329	1,206	3,199	1,206
Other comprehensive income (loss) before reclassifications, before tax
Reclassification to earnings: Postretirement benefit liabilities income (loss), before tax	(1)		129
Reclassification to earnings: Currency translation reclassification to income on divestiture
Reclassification to earnings: Amount reclassification to income (remote transaction)
Reclassification to earnings: Cash flow hedge income (loss), before tax
Current period other comprehensive income (loss), before tax	(1)		129
Tax effect
Current period other comprehensive income (loss), net of tax	(1)		129
Ending Balances	3,328	1,206	3,328	1,206
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balances	(131,509)	(115,847)	(70,482)	(97,575)
Other comprehensive income (loss) before reclassifications, before tax	1,564	3,388	(76,466)	(14,449)
Reclassification to earnings: Postretirement benefit liabilities income (loss), before tax
Reclassification to earnings: Currency translation reclassification to income on divestiture			17,305
Reclassification to earnings: Amount reclassification to income (remote transaction)
Reclassification to earnings: Cash flow hedge income (loss), before tax
Current period other comprehensive income (loss), before tax	1,564	3,388	(59,161)	(14,449)
Tax effect	338	(505)	640	(70)
Current period other comprehensive income (loss), net of tax	1,226	3,893	(59,801)	(14,379)
Ending Balances	(130,283)	(111,954)	(130,283)	(111,954)
Net Gain (Loss) On Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balances	(15,641)	(22,047)	(22,427)	(13,007)
Other comprehensive income (loss) before reclassifications, before tax	(773)	(5,836)	3,361	(13,452)
Reclassification to earnings: Postretirement benefit liabilities income (loss), before tax
Reclassification to earnings: Currency translation reclassification to income on divestiture
Reclassification to earnings: Amount reclassification to income (remote transaction)			4,509
Reclassification to earnings: Cash flow hedge income (loss), before tax	2,387	4,177	1,242	(115)
Current period other comprehensive income (loss), before tax	1,614	(1,659)	9,112	(13,567)
Tax effect	331	(99)	1,043	(2,967)
Current period other comprehensive income (loss), net of tax	1,283	(1,560)	8,069	(10,600)
Ending Balances	$ (14,358)	$ (23,607)	$ (14,358)	$ (23,607)

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Reporting For Segments (Net Sales To External Customers By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Total net sales	$ 294,331	$ 204,801	$ 582,689	$ 457,127
Functional Coatings [Member]
Segment Reporting Information [Line Items]
Total net sales	194,909	131,672	379,731	287,107
Color Solutions [Member]
Segment Reporting Information [Line Items]
Total net sales	$ 99,422	$ 73,129	$ 202,958	$ 170,020

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Reporting For Segments (Segment's Gross Profit And Reconciliations To Income Before Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total gross profit	$ 94,835	$ 63,744	$ 189,938	$ 144,482
Selling, general and administrative expenses	59,026	50,541	112,864	106,587
Restructuring and impairment charges	1,970	8,619	7,154	9,784
Other expense, net	7,910	6,310	17,789	8,808
Income (loss) before income taxes	25,929	(1,726)	52,131	19,303
Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total gross profit	94,835	63,744	189,938	144,482
Functional Coatings [Member] | Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total gross profit	59,521	36,119	121,397	83,936
Color Solutions [Member] | Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total gross profit	36,692	26,985	70,360	60,772
Other Cost Of Sales [Member] | Operating Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total gross profit	$ (1,378)	$ 640	$ (1,819)	$ (226)