0001140361-16-063821.txt : 20160506 0001140361-16-063821.hdr.sgml : 20160506 20160506160145 ACCESSION NUMBER: 0001140361-16-063821 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 63 CONFORMED PERIOD OF REPORT: 20160403 FILED AS OF DATE: 20160506 DATE AS OF CHANGE: 20160506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MINERALS TECHNOLOGIES INC CENTRAL INDEX KEY: 0000891014 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INORGANIC CHEMICALS [2810] IRS NUMBER: 251190717 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11430 FILM NUMBER: 161627887 BUSINESS ADDRESS: STREET 1: 622 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-6707 BUSINESS PHONE: 212-878-1800 MAIL ADDRESS: STREET 1: 622 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10017-6707 10-Q 1 form10q.htm MINERALS TECHNOLOGIES INC. 10-Q 4-3-2016

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

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

For the quarterly period ended April 3, 2016

or

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

Commission File Number 1-11430
--
MINERALS TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
 
            DELAWARE
 
25-1190717
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

622 Third Avenue, New York, NY  10017-6707
(Address of principal executive offices, including zip code)

(212) 878-1800
(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 ☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).
 
YES ☒ NO ☐
 
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
 
Large Accelerated Filer ☒
Accelerated Filer ☐
Non- accelerated Filer ☐
Smaller Reporting Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
YES☐ NO ☒
    
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
 
Class
Common Stock, $0.10 par value
Outstanding at April 25, 2016
34,827,203
 


MINERALS TECHNOLOGIES INC.
INDEX TO FORM 10-Q

 
Page No.
PART I.    FINANCIAL INFORMATION
 
   
Item 1.
Financial Statements:
 
   
 
3
   
 
4
   
 
5
     
 
6
   
 
7
   
 
18
   
Item 2.
19
   
Item 3.
28
     
Item 4.
28
     
PART II.    OTHER INFORMATION
 
   
Item 1.
29
   
Item 1A.
31
     
Item 2.
31
     
Item 3.
31
     
Item 4.
31
     
Item 5.
31
   
Item 6.
32
   
33
 
PART 1.  FINANCIAL INFORMATION

ITEM 1. Financial Statements

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(in millions, except per share data)
 
Product sales
 
$
384.4
   
$
394.7
 
Service revenue
   
25.8
     
58.6
 
Total net sales
   
410.2
     
453.3
 
                 
Cost of goods sold
   
277.6
     
292.9
 
Cost of service revenue
   
19.9
     
43.8
 
Total cost of sales
   
297.5
     
336.7
 
                 
Production margin
   
112.7
     
116.6
 
                 
Marketing and administrative expenses
   
46.7
     
47.4
 
Research and development expenses
   
5.9
     
5.9
 
Acquisition related transaction and integration costs
   
1.6
     
3.4
 
Restructuring and other charges
   
0.9
     
-
 
                 
Income from operations
   
57.6
     
59.9
 
                 
Interest expense, net
   
(14.1
)
   
(15.4
)
Other non-operating income (deductions), net
   
1.7
     
3.2
 
Total non-operating deductions, net
   
(12.4
)
   
(12.2
)
                 
Income before provision for taxes and equity in earnings
   
45.2
     
47.7
 
                 
Provision for taxes on income
   
10.7
     
12.1
 
Equity in earnings of affiliates, net of tax
   
0.3
     
0.4
 
                 
Consolidated net income
   
34.8
     
36.0
 
                 
Less:
               
Net income attributable to non-controlling interests
   
0.9
     
0.9
 
Net income attributable to Minerals Technologies Inc. (MTI)
 
$
33.9
   
$
35.1
 
                 
Earnings per share:
               
Basic earnings per share attributable to MTI
 
$
0.97
   
$
1.01
 
                 
Diluted earnings per share attributable to MTI
 
$
0.97
   
$
1.01
 
                 
Cash dividends declared per common share
 
$
0.05
   
$
0.05
 
                 
Shares used in computation of earnings per share:
               
Basic
   
34.8
     
34.7
 
Diluted
   
34.9
     
34.9
 
 
See accompanying Notes to Condensed Consolidated Financial Statements.
 
3

MINERALS TECHNOLOGIES INC.  AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Consolidated net income
 
$
34.8
   
$
36.0
 
Other comprehensive income (loss), net of tax:
               
Foreign currency translation adjustments
   
9.9
     
(27.8
)
Pension and postretirement plan adjustments
   
1.3
     
1.4
 
Total other comprehensive income (loss), net of tax
   
11.2
     
(26.4
)
Total comprehensive income including non-controlling interests
   
46.0
     
9.6
 
Comprehensive (income) loss attributable to non-controlling interest
   
(1.2
)
   
1.0
 
Comprehensive income attributable to MTI
 
$
44.8
   
$
10.6
 
 
See accompanying Notes to Condensed Consolidated Financial Statements.
 
4

MINERALS TECHNOLOGIES INC.  AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS

   
Apr. 3,
2016*
   
Dec. 31,
2015**
 
(millions of dollars)
 
ASSETS
           
             
Current assets:
           
Cash and cash equivalents
 
$
211.9
   
$
229.4
 
Short-term investments, at cost which approximates market
   
3.5
     
2.6
 
Accounts receivable, net
   
365.6
     
348.7
 
Inventories
   
197.2
     
194.9
 
Prepaid expenses and other current assets
   
29.8
     
28.0
 
Total current assets
   
808.0
     
803.6
 
                 
Property, plant and equipment
   
2,193.6
     
2,167.3
 
Less accumulated depreciation and depletion
   
(1,091.1
)
   
(1,063.0
)
Property, plant and equipment, net
   
1,102.5
     
1,104.3
 
Goodwill
   
781.3
     
781.2
 
Intangible assets
   
210.6
     
212.7
 
Other assets and deferred charges
   
79.0
     
78.2
 
Total assets
 
$
2,981.4
   
$
2,980.0
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Current liabilities:
               
Short-term debt
 
$
5.8
   
$
6.5
 
Current maturities of long-term debt
   
3.2
     
3.1
 
Accounts payable
   
159.8
     
152.4
 
Other current liabilities
   
145.5
     
156.6
 
Total current liabilities
   
314.3
     
318.6
 
                 
Long-term debt, net of unamortized discount
   
1,217.7
     
1,255.3
 
Deferred income taxes
   
252.1
     
252.0
 
Other non-current liabilities
   
217.9
     
216.4
 
Total liabilities
   
2,002.0
     
2,042.3
 
                 
Shareholders' equity:
               
Common stock
   
4.8
     
4.8
 
Additional paid-in capital
   
387.4
     
387.6
 
Retained earnings
   
1,324.9
     
1,292.7
 
Accumulated other comprehensive loss
   
(169.9
)
   
(180.9
)
Less common stock held in treasury
   
(596.0
)
   
(593.7
)
                 
Total  MTI shareholders' equity
   
951.2
     
910.5
 
Non-controlling interest
   
28.2
     
27.2
 
Total shareholders' equity
   
979.4
     
937.7
 
                 
Total liabilities and shareholders' equity
 
$
2,981.4
   
$
2,980.0
 
 
*
Unaudited
**
Condensed from audited financial statements

See accompanying Notes to Condensed Consolidated Financial Statements.
 
5

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Operating Activities:
           
             
Consolidated net income
 
$
34.8
   
$
36.0
 
                 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation, depletion and amortization
   
24.5
     
23.7
 
Other non-cash items
   
2.9
     
1.6
 
Net changes in operating assets and liabilities
   
(20.4
)
   
(41.7
)
Net cash provided by operating activities
   
41.8
     
19.6
 
                 
Investing Activities:
               
                 
Purchases of property, plant and equipment, net
   
(15.7
)
   
(24.2
)
Net purchases of short-term investments
   
(0.6
)
   
(1.7
)
Net cash used in investing activities
   
(16.3
)
   
(25.9
)
                 
Financing Activities:
               
                 
Proceeds from issuance of long-term debt
   
1.2
     
2.5
 
Repayment of long-term debt
   
(40.1
)
   
(40.0
)
Net issuance (repayment) of short-term debt
   
(0.7
)
   
0.4
 
Purchase of common shares for treasury
   
(2.4
)
   
-
 
Proceeds from issuance of stock under option plan
   
0.5
     
0.8
 
Excess tax benefits related to stock incentive programs
   
-
     
0.1
 
Dividends paid to non-controlling interest
   
(0.1
)
   
(0.2
)
Cash dividends paid
   
(1.7
)
   
(1.8
)
Net cash used in financing activities
   
(43.3
)
   
(38.2
)
                 
Effect of exchange rate changes on cash and cash equivalents
   
0.3
     
(11.2
)
                 
Net decrease in cash and cash equivalents
   
(17.5
)
   
(55.7
)
Cash and cash equivalents at beginning of period
   
229.4
     
249.6
 
Cash and cash equivalents at end of period
 
$
211.9
   
$
193.9
 
                 
Supplemental disclosure of cash flow information:
               
Interest paid
 
$
16.6
   
$
19.9
 
Income taxes paid
 
$
5.1
   
$
13.5
 

See accompanying Notes to Condensed Consolidated Financial Statements.
 
6

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Note 1. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we”, or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted.  Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included.  The results for the three-month periods ended April 3, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

Company Operations

The Company is a resource- and technology-based company that develops, produces and markets worldwide a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services.
 
The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.

- The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc.

- The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products.

- The Performance Materials segment is a leading supplier of bentonite and bentonite-related products.  This segment also supplies chromite and leonardite and operates more than 25 mining or production facilities worldwide.

- The Construction Technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide.  It serves customers engaged in a broad range of construction projects, including site remediation, concrete waterproofing for underground structures, liquid containment on projects ranging from landfills to flood control, and drilling applications including foundation, slurry wall, tunneling, water well, and horizontal drilling.

-  The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry.  This segment offers a range of patented and unpatented technologies, products and services for all phases of oil and gas production, refining, and storage throughout the world.
 
Use of Estimates

 The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.  Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities.  Actual results could differ from those estimates.
 
Recently Issued Accounting Standards
 
        Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification.  The Company considers the applicability and impact of all ASUs.  ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
 
7

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Revenue from Contracts with Customers

        In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.  The Company expects to complete this analysis by the fourth quarter of 2016.

Inventory – Simplifying the Measurement of Inventory

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.  The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Investments – Equity Method and Joint Ventures

In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.  ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Stock Compensation – Improvements to Employee Share-Based Payment Accounting

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient – expected term (nonpublic only); and (7) intrinsic value (nonpublic only).  The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.
 
8

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Note 2. Earnings Per Share (EPS)

Basic earnings per share are based upon the weighted average number of common shares outstanding during the period.  Diluted earnings per share are based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.

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

   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(in millions, except per share data)
 
             
Net income attributable to MTI
 
$
33.9
   
$
35.1
 
                 
Weighted average shares outstanding
   
34.8
     
34.7
 
Dilutive effect of stock options and stock units
   
0.1
     
0.2
 
Weighted average shares outstanding, adjusted
   
34.9
     
34.9
 
                 
Basic earnings (Loss) per share attributable to MTI
 
$
0.97
   
$
1.01
 
                 
Diluted earnings (Loss) per share attributable to MTI
 
$
0.97
   
$
1.01
 
 
Options to purchase 375,644 shares and 245,128 shares of common stock for the three-month periods ended April 3, 2016 and March 29, 2015, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares.

Note 3. Restructuring Charges

During 2014, the Company announced a restructuring program that will result in a 10% permanent reduction of its workforce.  The reductions include elimination of duplicate corporate functions, deployment of our shared service model, and consolidation and alignment of various corporate functions and regional locations across the Company.
 
At April 3, 2016, we had $6.1 million included within accrued liabilities within our Condensed Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these workforce reduction initiatives.  The Company expects to pay these amounts by the end of December 2016.
 
The following table is a reconciliation of our restructuring liability balance as of April 3, 2016:

   
(millions of dollars)
 
Restructuring liability, December 31, 2015
 
$
7.9
 
Additional provisions
   
0.9
 
Cash payments
   
(2.7
)
Restructuring liability,  April 3, 2016
 
$
6.1
 

Note 4. Income Taxes

As of April 3, 2016, the Company had approximately $4.2 million of total unrecognized income tax benefits. Included in this amount were a total of $1.6 million of unrecognized income tax benefits that, if recognized, would affect the Company’s effective tax rate.  While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company.
 
9

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
The Company’s accounting policy is to recognize interest and penalties accrued relating to unrecognized income tax benefits as part of its provision for income taxes.  The Company had a net increase of approximately $0.1 million during the three months ended April 3, 2016, and had an accrued balance of $1.0 million of interest and penalties as of April 3, 2016.

The Company operates in multiple taxing jurisdictions, both within and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings.  The Company, with a few exceptions (none of which are material), is no longer subject to income tax examinations by tax authorities for years prior to 2010.

Provision for taxes was $10.7 million as compared to $12.1 million in the prior year.  The effective tax rate was 23.7% as compared to 25.4% in prior year.  The lower effective tax rate was primarily due to a change in the mix of earnings.

Note 5. Inventories
 
The following is a summary of inventories by major category:

   
Apr. 3,
2016
   
Dec. 31,
2015
 
   
(millions of dollars)
 
Raw materials
 
$
73.7
   
$
73.4
 
Work-in-process
   
5.4
     
5.4
 
Finished goods
   
88.2
     
86.1
 
Packaging and supplies
   
29.9
     
30.0
 
Total inventories
 
$
197.2
   
$
194.9
 

Note 6. Goodwill and Other Intangible Assets

Goodwill and other intangible assets with indefinite lives are not amortized, but instead are assessed for impairment, at least annually.  The carrying amount of goodwill was $781.3 million, and $781.2 million as of April 3, 2016 and December 31, 2015, respectively.  The net change in goodwill since December 31, 2015 was attributable to the effect of foreign exchange.

Acquired intangible assets subject to amortization as of April 3, 2016 and December 31, 2015 were as follows:

 
Apr. 3, 2016
   
Dec. 31, 2015
 
   
Gross
Carrying
Amount
   
 
Accumulated
Amortization
   
Gross
Carrying
Amount
   
 
Accumulated
Amortization
 
   
(millions of dollars)
 
Tradenames
 
$
199.8
   
$
10.8
   
$
199.8
   
$
9.3
 
Technology
   
18.8
     
2.8
     
18.8
     
2.5
 
Patents and trademarks
   
6.4
     
4.5
     
6.4
     
4.4
 
Customer relationships
   
4.5
     
0.8
     
4.5
     
0.6
 
   
$
229.5
   
$
18.9
   
$
229.5
   
$
16.8
 

 The weighted average amortization period for acquired intangible assets subject to amortization is approximately 28 years.  Estimated amortization expense is $8.1 million for 2016, $7.9 million for 2017-2020, and $172.9 million thereafter.
 
10

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Note 7. Long-Term Debt and Commitments

The following is a summary of long-term debt:
 
   
Apr. 3,
2016
   
Dec. 31,
2015
 
   
(millions of dollars)
 
Term Loan Facility due May 9, 2021, net of unamortized discount  and deferred financing costs of $30.3 and $30.9, respectively
 
$
1,207.7
   
$
1,246.4
 
                 
China Loan Facilities
   
13.2
     
12.0
 
                 
Total
 
$
1,220.9
   
$
1,258.4
 
                 
Less: Current maturities
   
3.2
     
3.1
 
Long-term debt
 
$
1,217.7
   
$
1,255.3
 
 
On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for a $1,560 million senior secured term loan facility (the “Term Facility”) and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”).

On June 23, 2015, the Company entered into an amendment to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility.  As amended, the Term Facility has a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. The maturity date for loans under the Term Facility was not changed by the amendment.  The loans outstanding under the Term Facility will mature on May 9, 2021 and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May 9, 2019.  After the amendment, loans under the variable rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 3.00% per annum. Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%.  Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.75% per annum.  Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds.  The variable rate tranche of the Term Facility was issued at par and has a 1% required amortization per year.  The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors.

The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to $15 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, 5.25 to 1.00 for the four fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00.  During the first three months of 2016, the Company repaid $40 million on its Term Facility.  As of April 3, 2016, there were no loans and $12.2 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report.

The Company has four committed loan facilities for the funding of new manufacturing facilities in China, for a combined 94.8 million RMB and $1.8 million.  As of April 3, 2016, on a combined basis, $13.2 million is outstanding.  Principal will be repaid in accordance with the payment schedules ending in 2019. The Company repaid $0.1 million on these loans in the first quarter to 2016.

As of April 3, 2016, the Company had $37.2 million in uncommitted short-term bank credit lines, of which approximately $5.8 million was in use.
 
11

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Note 8. Benefit Plans

The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis.  The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. Disclosures for the U.S. plans have been combined with those outside of the U.S. as the international plans do not have significantly different assumptions, and together represent less than 25% of our total benefit obligation.

Components of Net Periodic Benefit Cost

   
Pension Benefits
 
   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Service cost
 
$
2.3
   
$
2.6
 
Interest cost
   
3.4
     
3.9
 
Expected return on plan assets
   
(4.6
)
   
(5.1
)
Amortization:
               
Prior service cost
   
0.2
     
0.3
 
Recognized net actuarial loss
   
2.6
     
2.8
 
Net periodic benefit cost
 
$
3.9
   
$
4.5
 

    Other Benefits  
   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Service cost
 
$
0.1
   
$
0.1
 
Interest cost
   
0.1
     
0.1
 
Amortization:
               
Prior service cost
   
(0.8
)
   
(0.8
)
Recognized net actuarial (gain)/loss
           
-
 
Net periodic benefit cost
 
$
(0.6
)
 
$
(0.6
)

Amortization amounts of prior service costs and recognized net actuarial losses are recorded, net of tax, as increases to accumulated other comprehensive income.

Employer Contributions

The Company expects to contribute approximately $11.0 million to its pension plans and $0.6 million to its other postretirement benefit plans in 2016. As of April 3, 2016, $0.8 million has been contributed to the pension plans and approximately $0.1 million has been contributed to the other postretirement benefit plans.

Note 9. Comprehensive Income

The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss) attributable to the Company:

 
Three Months Ended
 
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)
 
Apr. 3,
2016
   
Mar. 29,
2015
 
 
(millions of dollars)
 
Amortization of pension items:
           
Pre-tax amount
 
$
2.0
   
$
2.3
 
Tax
   
(0.7
)
   
(0.9
)
Net of tax
 
$
1.3
   
$
1.4
 
 
12

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
The pre-tax amounts in the table above are included within the components of net periodic pension benefit cost (see Note 8 to the Condensed Consolidated Financial Statements) and the tax amounts are included within provision for taxes on income line within Condensed Consolidated Statements of Income.

The major components of accumulated other comprehensive income, net of related tax, attributable to MTI are as follows:

   
Foreign Currency
 Translation
 Adjustment
   
Unrecognized
Pension Costs
   
Net Gain on
 Cash Flow
 Hedges
   
Total
 
   
(millions of dollars)
 
                         
Balance as of December 31, 2015
 
$
(108.7
)
 
$
(74.8
)
 
$
2.6
   
$
(180.9
)
                                 
Other comprehensive income (loss) before reclassifications
   
9.7
     
-
     
-
     
9.7
 
Amounts reclassified from AOCI
   
-
     
1.3
     
-
     
1.3
 
Net current period other comprehensive income (loss)
   
9.7
     
1.3
     
-
     
11.0
 
Balance as of April 3, 2016
 
$
(99.0
)
 
$
(73.5
)
 
$
2.6
   
$
(169.9
)
 
Note 10. Accounting for Asset Retirement Obligations

         The Company records asset retirement obligations for situations in which the Company will be required to incur costs to retire tangible long-lived assets.  The fair value of the liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.

         The Company also records liabilities related to land reclamation as a part of asset retirement obligations.  The Company mines various minerals using a surface mining process that requires the removal of overburden.  In certain areas and under various governmental regulations, the Company is obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity.  The obligation is adjusted to reflect the passage of time, mining activities, and changes in estimated future cash outflows.

        The following is a reconciliation of asset retirement obligations as of April 3, 2016:

   
(millions of dollars)
 
Asset retirement liability, December 31, 2015
 
$
21.4
 
Accretion expense
   
0.4
 
Payments
   
(0.2
)
Foreign currency translation
   
0.2
 
Asset retirement liability,  April 3, 2016
 
$
21.8
 

         The asset retirement costs are capitalized as part of the carrying amount of the associated asset.  The current portion of the liability of approximately $1.9 million is included in other current liabilities and the long-term portion of the liability of approximately $19.9 million is included in other non-current liabilities in the Condensed Consolidated Balance Sheet as of April 3, 2016.

Note 11. Contingencies

We are party to a number of lawsuits arising in the normal course of our business.

On May 8, 2013, Armada (Singapore) PTE Limited, an ocean shipping company now in bankruptcy ("Armada") filed a case in federal court in the Northern District of Illinois against AMCOL and certain of its subsidiaries ( Armada (Singapore) PTE Limited v. AMCOL International Corp., et al., United States District Court for the Northern District of Illinois , Case No. 13 CV 3455).  We acquired AMCOL and its subsidiaries on May 9, 2014. A co-defendant is Ashapura Minechem Limited, a company located in Mumbai, India (“AML”).  During the relevant time period, 2008-2010, AMCOL owned slightly over 20% of the outstanding AML stock through December 2009, after which it owned approximately 19%.  In 2008, AML entered into two contracts of affreightment (“COA”) with Armada for over 60 ship loads of bauxite from India to China.  After one shipment, AML made no further shipments, which led Armada to file arbitrations in London against AML, one for each COA. AML did not appear in the London arbitrations and default awards of approximately $70 million were entered.  The litigation filed by Armada against AMCOL and AML relates to these awards, which AML has not paid.  The substance of the allegations by Armada is that AML and AMCOL engaged in illegal conduct to thwart Armada’s efforts to collect the arbitration award.  The counts in the complaint include both violations of the Illinois Fraudulent Transfer laws as well as federal RICO violations.  The lawsuit seeks money damages, as well as injunctive relief.  The litigation is in the discovery phase. Discovery is currently scheduled to last into the fourth quarter of 2016.  We have accrued an estimate of potential damages for the Armada lawsuit, the amount of which was not material to our financial position, results of operations or cash flows.
 
13

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Certain of the Company's subsidiaries are among numerous defendants in a number of cases seeking damages for exposure to silica or to asbestos containing materials.  The Company currently has 5 pending silica cases and 15 pending asbestos cases. Of the five pending silica cases, one involves claims by 25 plaintiffs.  To date, 1,490 silica cases and 47 asbestos cases have been dismissed, not including any lawsuits against AMCOL or American Colloid Company dismissed prior to our acquisition of AMCOL.  Two new asbestos cases and no new silica cases were filed in the first quarter of 2016. One asbestos case was dismissed during the quarter.  In addition, during the first quarter of 2016 we learned that 25 silica cases in West Virginia had been dismissed previously.

Most of these claims do not provide adequate information to assess their merits, the likelihood that the Company will be found liable, or the magnitude of such liability, if any. Additional claims of this nature may be made against the Company or its subsidiaries.  At this time management anticipates that the amount of the Company's liability, if any, and the cost of defending such claims, will not have a material effect on its financial position or results of operations.

The Company has settled only one silica lawsuit, for a nominal amount, and no asbestos lawsuits to date (not including any that may have been settled by AMCOL prior to completion of the acquisition).  We are unable to state an amount or range of amounts claimed in any of the lawsuits because state court pleading practices do not require identifying the amount of the claimed damage. The aggregate cost to the Company for the legal defense of these cases since inception continues to be insignificant.  The majority of the costs of defense for these cases, excluding cases against AMCOL or American Colloid, are reimbursed by Pfizer Inc. pursuant to the terms of certain agreements entered into in connection with the Company's initial public offering in 1992. Of the 15 pending asbestos cases all except four allege liability based on products sold largely or entirely prior to the initial public offering, and for which the Company is therefore entitled to indemnification pursuant to such agreements.  The four exceptions pertain to a pending asbestos case against American Colloid Company, and three for which no period of alleged exposure has been stated by plaintiffs.  Our experience has been that the Company is not liable to plaintiffs in any of these lawsuits and the Company does not expect to pay any settlements or jury verdicts in these lawsuits.

Environmental Matters

On April 9, 2003, the Connecticut Department of Environmental Protection issued an administrative consent order relating to our Canaan, Connecticut, plant where both our Refractories segment and Specialty Minerals segment have operations.  We agreed to the order, which includes provisions requiring investigation and remediation of contamination associated with historic use of polychlorinated biphenyls ("PCBs") and mercury at a portion of the site.  We have completed the required investigations and submitted several reports characterizing the contamination and assessing site-specific risks.  We are awaiting regulators’ approval of the risk assessment report, which will form the basis for a proposal by the Company concerning eventual remediation.

We believe that the most likely form of overall site remediation will be to leave the existing contamination in place (with some limited soil removal), encapsulate it, and monitor the effectiveness of the encapsulation.  We anticipate that a substantial portion of the remediation cost will be borne by the United States based on its involvement at the site from 1942 – 1964, as historic documentation indicates that PCBs and mercury were first used at the facility at a time of U.S. government ownership for production of materials needed by the military.  Pursuant to a Consent Decree entered on October 24, 2014, the United States paid the Company $2.3 million in the 4th quarter of 2014 to resolve the Company’s claim for response costs for investigation and initial remediation activities at this facility through October 24, 2014.  Contribution by the United States to any future costs of investigation or additional remediation has, by agreement, been left unresolved.  Though the cost of the likely remediation remains uncertain pending completion of the phased remediation decision process, we have estimated that the Company’s share of the cost of the encapsulation and limited soil removal described above would approximate $0.4 million, which has been accrued as of April 3, 2016.
 
14

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
The Company is evaluating options for upgrading the wastewater treatment facilities at its Adams, Massachusetts plant.  This work has been undertaken pursuant to an administrative Consent Order originally issued by the Massachusetts Department of Environmental Protection (“DEP”) on June 18, 2002.  This order was amended on June 1, 2009 and on June 2, 2010.  The amended Order includes the investigation by January 1, 2022 of options for ensuring that the facility's wastewater treatment ponds will not result in unpermitted discharge to groundwater.  Additional requirements of the amendment include the submittal by July 1, 2022 of a plan for closure of a historic lime solids disposal area.  Preliminary engineering reviews completed in 2005 indicate that the estimated cost of wastewater treatment upgrades to operate this facility beyond 2024 may be between $6 million and $8 million.  The Company estimates that the remaining remediation costs would approximate $0.4 million, which has been accrued as of April 3, 2016.

The Company and its subsidiaries are not party to any other material pending legal proceedings, other than routine litigation incidental to their businesses.

Note 12. Non-controlling interests

The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests:

   
Equity Attributable to MTI
       
   
 
 
Common
Stock
   
 
Additional
Paid-in
Capital
   
 
 
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
 
 
Treasury
Stock
   
 
 
Non-controlling
Interests
   
 
 
 
Total
 
   
(millions of dollars)
 
Balance as of December 31, 2015
 
$
4.8
   
$
387.6
   
$
1,292.7
   
$
(180.9
)
 
$
(593.7
)
 
$
27.2
   
$
937.7
 
                                                         
Net income
   
-
     
-
     
33.9
     
-
     
-
     
0.9
     
34.8
 
Other comprehensive income (loss)
   
-
     
-
     
-
     
11.0
     
-
     
0.2
     
11.2
 
Dividends declared
   
-
     
-
     
(1.7
)
   
-
     
-
     
-
     
(1.7
)
Dividends to non-controlling interest
   
-
     
-
     
-
     
-
     
-
     
(0.1
)
   
(0.1
)
Purchase of treasury stock
   
-
     
-
     
-
     
-
     
(2.3
)
   
-
     
(2.3
)
Issuance of shares pursuant to employee stock compensation plans
   
-
     
0.5
     
-
     
-
     
-
     
-
     
0.5
 
Income tax benefit arising from employee stock compensation plans
   
-
     
(0.6
)
   
-
     
-
     
-
     
-
     
(0.6
)
Stock based compensation
   
-
     
(0.1
)
   
-
     
-
     
-
     
-
     
(0.1
)
Balance as of April 3, 2016
 
$
4.8
   
$
387.4
   
$
1,324.9
   
$
(169.9
)
 
$
(596.0
)
 
$
28.2
   
$
979.4
 

The income attributable to non-controlling interests for the three-month periods ended April 3, 2016 and March 29, 2015 was from continuing operations.  The remainder of income was attributable to MTI.
 
15

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
Note 13. Segment and Related Information
 
The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.  See Note 1 to the Condensed Consolidated Financial Statements.  Segment information is as follows:
 
   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Net Sales
           
Specialty Minerals
 
$
155.6
   
$
154.0
 
Refractories
   
69.2
     
73.9
 
Performance Materials
   
119.0
     
127.9
 
Construction Technologies
   
40.6
     
38.9
 
Energy Services
   
25.8
     
58.6
 
Total
 
$
410.2
   
$
453.3
 
                 
Income from Operations
               
Specialty Minerals
 
$
25.7
   
$
23.1
 
Refractories
   
6.8
     
8.3
 
Performance Materials
   
23.8
     
23.8
 
Construction Technologies
   
4.4
     
4.1
 
Energy Services
   
(0.1
)
   
5.8
 
Total
 
$
60.6
   
$
65.1
 

        A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows:

   
Income from operations before
 provision for taxes on income
 
   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
 
(millions of dollars)
 
Income from operations for reportable segments
 
$
60.6
   
$
65.1
 
Acquisition Related Transaction and Integration Costs
   
(1.6
)
   
(3.4
)
Unallocated corporate expenses
   
(1.4
)
   
(1.8
)
Consolidated income from operations
   
57.6
     
59.9
 
Non-operating deductions, net
   
(12.4
)
   
(12.2
)
                 
Income from continuing operations before provision for taxes on income
 
$
45.2
   
$
47.7
 
 
16

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
The Company's sales by product category are as follows:

   
Three Months Ended
 
   
Apr. 3,
2016
   
Mar. 29,
2015
 
   
(millions of dollars)
 
Paper PCC
 
$
103.2
   
$
105.2
 
Specialty PCC
   
16.7
     
16.5
 
Talc
   
15.0
     
13.8
 
Ground Calcium Carbonate
   
20.7
     
18.5
 
Refractory Products
   
53.4
     
58.3
 
Metallurgical Products
   
15.8
     
15.6
 
Metalcasting
   
60.0
     
65.2
 
Household, Personal Care and Specialty Products
   
45.3
     
41.8
 
Basic Minerals and Other Products
   
13.7
     
20.9
 
Environmental Products
   
13.4
     
11.4
 
Building Materials and Other Products
   
27.2
     
27.5
 
Energy Services
   
25.8
     
58.6
 
Total
 
$
410.2
   
$
453.3
 
 
17

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
The Board of Directors and Shareholders
Minerals Technologies Inc.:
 
We have reviewed the accompanying condensed consolidated balance sheet of Minerals Technologies Inc. and subsidiaries as of April 3, 2016, the related condensed consolidated statements of income and comprehensive income for the three-month periods ended April 3, 2016 and March 29, 2015, and the related condensed consolidated statements of cash flows for the three-month periods ended April 3, 2016 and March 29, 2015.  These condensed consolidated financial statements are the responsibility of the Company's management.

We conducted our review in accordance with the standards of the Public Company Accounting Oversight Board (United States).  A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the condensed consolidated financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Minerals Technologies Inc. and subsidiaries as of December 31, 2015, and the related consolidated statements of income, comprehensive income, shareholders’ equity, and cash flows for the year then ended (not presented herein); and in our report dated February 19, 2016, we expressed an unqualified opinion on those consolidated financial statements.  In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2015, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ KPMG LLP

New York, New York
May 6, 2016
 
18

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

Executive Summary

Consolidated sales for the first quarter of 2016 were $410.2 million as compared with $453.3 million in the prior year, down 10%.  Weak market conditions in the oil and gas sector led to reduced sales in our Energy Services segment by $31 million, or 7% of consolidated sales.  Foreign exchange had an unfavorable impact on sales of $17.4 million, or 4%.  Income from operations was $57.6 million as compared with $59.9 million in the prior year, a decrease of 4%.  Net income was $33.9 million as compared to $35.1 million in the first quarter of 2015.
 
Diluted earnings from continuing operations in the first quarter ended April 3, 2016 were $0.97 per share.  Included in pre-tax income and earnings per share were $1.6 million acquisition integration costs and $0.9 million of restructuring charges which reduced earnings by $0.05 per share.

The Company continued to advance the execution of its growth strategies of geographic expansion and new product innovation and development.  Our businesses in China grew 15 percent over prior year and our long-term targets in the region remain on track. We presently have three additional satellites under construction in China with a total annual capacity of 215,000 tons.  The Company continued to see progress in its major growth strategy of developing and commercializing new products. We recently a new signed a commercial agreement for FulFill® high filler technology with a major papermaker in China.  We now have twenty-five commercial contracts for FulFill® globally.
          
         Long term debt as of April 3, 2016 was $1,217.7 million.  During the first quarter of 2016, we repaid $40.0 million of our long-term debt.  Cash, cash equivalents and short-term investments were $215.4 million as of April 3, 2016.  Our intention continues to be to use excess cash flow primarily to repay debt and to de-lever as quickly as possible.

Outlook

Looking forward, we remain cautious about the state of the global economy and the impact it will have on our product lines.

The Company will continue to focus on innovation and new product development and other opportunities for sales growth in 2016 from its existing businesses, as follows:

· Develop multiple high-filler technologies under the FulFill® platform of products, to increase the fill rate in freesheet paper and continue to progress with commercial discussions and full-scale paper machine trials.
· Develop products and processes for waste management and recycling opportunities to reduce the environmental impact of the paper mill, reduce energy consumption and improve the sustainability of the papermaking process, including our New YieldTM products.
· Further penetration into the packaging segment of the paper industry.
· Increase our sales of PCC for paper by further penetration of the markets for paper filling at both freesheet and groundwood mills, particularly in emerging markets.
· Expand the Company's PCC coating product line using the satellite model.
· Increase our presence and gain penetration of our bentonite based foundry customers for the Metalcasting industry in emerging markets, such as China and India.
· Increase our presence and market share in global pet care products, particularly in emerging markets.
· Deploy new products in pet care such as lightweight litter.
· Promote the Company's expertise in crystal engineering, especially in helping papermakers customize PCC morphologies for specific paper applications.
· Expand PCC produced for paper filling applications by working with industry partners to develop new methods to increase the ratio of PCC for fiber substitutions.
· Develop unique calcium carbonate and talc products used in the manufacture of novel biopolymers, a new market opportunity.
· Deploy new talc and GCC products in paint, coating and packaging applications.
· Deploy value-added formulations of refractory materials that not only reduce costs but improve performance.
 
19

· Expand our solid core wire product line into BRIC, Middle Eastern and other Asian countries.
· Deploy our laser measurement technologies into new applications.
· Expand our refractory maintenance model to other steel makers globally.
· Increase our presence and market share in Asia and in the global powdered detergent market.
· Continue the development of our proprietary Enersol® products for agricultural applications worldwide.
· Pursue opportunities for our products in environmental and building and construction markets in the Middle East, Asia Pacific and South America regions.
· Increase our presence and market share for geosynthetic clay liners within the Environmental Products product line.
· Increase our presence and market penetration in filtration and well testing within the Energy Services segment.
· Increase global market share in the floating production storage and offloading (FPSO) in filtration.
· Deploy operational excellence principles into all aspects of the organization, including system infrastructure and lean principles.
· Continue to explore selective small bolt-on type acquisitions to fit our core competencies in minerals and fine particle technology.

However, there can be no assurance that we will achieve success in implementing any one or more of these opportunities.

Results of Operations

Three months ended April 3, 2016 as compared with three months ended March 29, 2015

Consolidated Income Statement Review

   
Three Months Ended,
   
Growth
 
   
Apr. 3
2016
   
Mar. 29
2015
   
$
   
%
 
   
(Dollars in millions)
 
Net sales
 
$
410.2
   
$
453.3
   
$
(43.1
)
   
-9.5
%
Cost of sales
   
297.5
     
336.7
     
(39.2
)
   
-11.6
%
Production margin
   
112.7
     
116.6
     
(3.9
)
   
-3.3
%
Production margin %
   
27.5
%
   
25.7
%
               
                                 
Marketing and administrative expenses
   
46.7
     
47.4
     
(0.7
)
   
-1.5
%
Research and development expenses
   
5.9
     
5.9
     
-
     
0.0
%
Acquisition related transaction and integration costs
   
1.6
     
3.4
     
(1.8
)
   
-52.9
%
Restructuring and other charges
   
0.9
     
-
     
0.9
     
100.0
%
                     
-
         
Income from operations
   
57.6
     
59.9
     
(2.3
)
   
-3.8
%
Operating margin %
   
14.0
%
   
13.2
%
               
                                 
Interest expense, net
   
(14.1
)
   
(15.4
)
   
1.3
     
-8.4
%
Other non-operating income (deductions), net
   
1.7
     
3.2
     
(1.5
)
   
-46.9
%
Total non-operating deductions, net
   
(12.4
)
   
(12.2
)
   
(0.2
)
   
1.6
%
                                 
Income before provision for taxes and equity in earnings
   
45.2
     
47.7
     
(2.5
)
   
-5.2
%
Provision for taxes on income
   
10.7
     
12.1
     
(1.4
)
   
-11.6
%
Effective tax rate
   
23.7
%
   
25.4
%
               
                                 
Equity in earnings of affiliates, net of tax
   
0.3
     
0.4
     
(0.1
)
   
-25.0
%
                                 
Net income
   
34.8
     
36.0
     
(1.2
)
   
-3.3
%
                                 
Net income attributable to non-controlling interests
   
0.9
     
0.9
     
-
     
0.0
%
Net income attributable to Minerals Technologies Inc. (MTI)
   
33.9
     
35.1
     
(1.2
)
   
-3.4
%
 
20

Net Sales

   
Three Months Ended
Apr. 3, 2016
           
Three Months Ended
Mar. 29, 2015
 
       
Net Sales
    
% of Total
Sales
    
%
Growth
      
Net Sales
    
% of Total
Sales
 
   
(Dollars in millions)
 
U.S.
 
$
244.2
     
59.5
%
   
-8.8
%
 
$
267.9
     
59.1
%
International
   
166.0
     
40.5
%
   
-10.5
%
   
185.4
     
40.9
%
Total sales
 
$
410.2
     
100.0
%
   
-9.5
%
 
$
453.3
     
100.0
%
                                         
Specialty Minerals Segment
 
$
155.6
     
37.9
%
   
1.0
%
 
$
154.0
     
34.0
%
Refractories Segment
   
69.2
     
16.9
%
   
-6.4
%
   
73.9
     
16.3
%
Performance Materials Segment
   
119.0
     
29.0
%
   
-7.0
%
   
127.9
     
28.2
%
Construction Technologies Segment
   
40.6
     
9.9
%
   
4.4
%
   
38.9
     
8.6
%
Energy Services Segment
   
25.8
     
6.3
%
   
-56.0
%
   
58.6
     
12.9
%
Total sales
 
$
410.2
     
100.0
%
   
-9.5
%
 
$
453.3
     
100.0
%

Total sales decreased $43.1 million or 10% from the previous year to $410.2 million.  The aforementioned weak market conditions in the oil and gas sector and the effects of foreign exchange had a combined unfavorable impact on our sales of over $50 million, or 11 percentage points.
 
Approximately $244.2 million of sales were generated within the United States and $166.0 million of sales originated in international regions.
 
Operating Costs and Expenses

Cost of sales was $297.5 million, a decrease of 12% from prior year and was 72.5% of sales compared with 74.3% of sales in the prior year. Gross margins improved 8% to 27.5% due to lower variable manufacturing costs, including productivity gains of over 5%. These factors more than offset the impact of weak market conditions in the Energy Services and Refractories Segments,

Marketing and administrative costs were $46.7 million as compared to $47.4 million in prior year.
 
Research and development expenses were $5.9 million during both the three months ended April 3, 2016 and March 29, 2015.
 
The Company incurred a charge of $1.6 million and $3.4 million for acquisition-related transaction and integration costs during the three months ended April 3, 2016 and March 29, 2015, respectively.  In addition, there were $0.9 million of restructuring charges recorded within the Energy Services segment during the three months ended April 3, 2016.

Income from Operations

The Company recorded income from operations of $57.6 million as compared to $59.9 million in the comparable prior year period.  Operating income was 14.0% of sales in the first quarter of 2016 compared with 13.2% of sales in 2015, as lower manufacturing costs, including productivity gains, helped to offset the impact of lower sales.

Non-Operating Income (Deductions)
 
During the first quarter of 2016, non-operating deductions were primarily comprised of $14.1 million of interest expense and $2.4 million in foreign exchange gains as compared to $15.4 million of interest expense and $3.5 million of foreign exchange gains in the prior year.
 
21

Provision for Taxes on Income
 
Provision for taxes on income was $10.7 million as compared to $12.1 million in prior year.  The effective tax rate was 23.7% as compared to 25.4% in prior year.  The reduction in the effective tax rate during 2016 was primarily due to a change in the mix of earnings.

Income from Continuing Operations, Net of Tax
 
Income from continuing operations, net of tax, was $34.8 million during the three months ended April 3, 2016 and included a $1.6 million charge, net of tax, relating to acquisition integration costs and restructuring.

Segment Review

        The following discussions highlight the operating results for each of our five segments.

Specialty Minerals Segment

   
Three Months Ended
             
 
Specialty Minerals Segment
 
Apr. 3,
2016
   
Mar. 29,
2015
   
 
Growth
 
   
(millions of dollars)
             
Net Sales
                       
Paper PCC
 
$
103.2
   
$
105.2
   
$
(2.0
)
   
-1.9
%
Specialty PCC
   
16.7
     
16.5
     
0.2
     
1.2
%
PCC Products
 
$
119.9
   
$
121.7
   
$
(1.8
)
   
-1.5
%
                                 
Talc
 
$
15.0
   
$
13.8
   
$
1.2
     
8.7
%
Ground Calcium Carbonate
   
20.7
     
18.5
     
2.2
     
11.9
%
Processed Minerals Products
 
$
35.7
   
$
32.3
   
$
3.4
     
10.5
%
                                 
Total net sales
 
$
155.6
   
$
154.0
   
$
1.6
     
1.0
%
                                 
Income from operations
 
$
25.7
   
$
23.1
   
$
2.6
     
11.3
%
% of net sales
   
16.5
%
   
15.0
%
               
 
Worldwide net sales in the Specialty Minerals segment were $155.6 million, an increase of $1.6 million or 1% compared to the prior year.  Foreign exchange had an unfavorable impact on current year sales of $5.7 million or 4%.

Worldwide net sales of PCC products, which are primarily used in the manufacturing process of the paper industry, decreased 1.5 % to $119.9 million from $121.7 million in the prior year.  Paper PCC sales decreased 2% to $103.2 million primarily due to the unfavorable impact of foreign exchange.  Paper PCC sales in China increased 45 percent over prior year due to the startup of three new facilities since the first quarter of 2015.  Sales of Specialty PCC increased 1% over the prior year.

Net sales of Processed Minerals products increased 11% to $35.7 million.  Talc sales increased 9% and Ground Calcium Carbonate sales increased 12% primarily due to increased volumes.

 Income from operations for the Specialty Minerals segment was a record for the first quarter and increased 11% over prior year to $25.7 million. Income from operations as a percentage of sales improved due to improved profitability in the Processed Minerals product line and good cost and expense control.  Foreign exchange had an unfavorable impact on Specialty Minerals operating income of $1.4 million, or 6 percent.
 
22

Refractories  Segment

   
Three Months Ended
             
 
Refractories Segment
 
Apr. 3,
2016
   
Mar. 29,
2015
   
 
Growth
 
   
(millions of dollars)
             
Net Sales
                       
Refractory Products
 
$
53.4
   
$
58.3
   
$
(4.9
)
   
-8.4
%
Metallurgical Products
   
15.8
     
15.6
     
0.2
     
1.3
%
Total net sales
 
$
69.2
   
$
73.9
   
$
(4.7
)
   
-6.4
%
                                 
Income from operations
 
$
6.8
   
$
8.3
   
$
(1.5
)
   
-18.1
%
% of net sales
   
9.8
%
   
11.2
%
               

        Net sales in the Refractories segment decreased 6.4% to $69.2 million from $73.9 million in the prior year.   Foreign exchange had an unfavorable impact on sales of $2.6 million or 4 %.  Sales of refractory products and systems to steel and other industrial applications decreased 8 % to $53.4 million primarily due to lower volumes and the unfavorable impact of foreign exchange.  Sales of metallurgical products increased 1% to $15.8 million due to volume increases.

        Income from operations decreased to $6.8 million from $8.3 million in the prior year and represented 10.0% of sales.
 
Performance Materials Segment

   
Three Months Ended
             
 
Performance Materials Segment
 
Apr. 3,
2016
   
Mar. 29,
2015
   
Growth
 
   
(millions of dollars)
             
Net Sales
                       
Metalcasting
 
$
60.0
   
$
65.2
   
$
(5.2
)
   
-8.0
%
Household, Personal Care and Specialty Products
   
45.3
     
41.8
     
3.5
     
8.4
%
Basic Minerals and Other Products
   
13.7
     
20.9
     
(7.2
)
   
-34.4
%
Total net sales
 
$
119.0
   
$
127.9
   
$
(8.9
)
   
-7.0
%
                                 
Income from operations
 
$
23.8
   
$
23.8
                 
% of net sales
   
20.0
%
   
18.6
%
               

Net sales in the Performance Materials segment decreased 7.0% to $119.0 million from $127.9 million in the prior year.  Foreign exchange had an unfavorable impact on sales of $5.6 million or 4%. Weakness in the agricultural sector affected sales in the Metalcasting product line. Sales in Household, Personal Care and Specialty Products increased 8 percent due to strong Pet Care, Personal Care and Fabric Care sales. Basic minerals and Other Products decreased $7.2 million or 34% from prior year due to lower drilling and iron ore pelletizing sales from continued weak oil and gas drilling activity and lower steel production in the U.S.

Income from operations was $23.8 million and 20.0% of sales as compared to 18.6% of sales in the prior year.
 
23

Construction Technologies Segment

   
Three Months Ended
             
 
Construction Technologies Segment
 
Apr. 3,
2016
   
Mar. 29,
2015
   
 
Growth
 
   
(millions of dollars)
             
Net Sales
                       
Environmental Products
 
$
13.4
   
$
11.4
   
$
2.0
     
17.5
%
Building Materials and Other Products
   
27.2
     
27.5
     
(0.3
)
   
-1.1
%
Total net sales
 
$
40.6
   
$
38.9
   
$
1.7
     
4.4
%
                                 
Income from operations
 
$
4.4
   
$
4.1
   
$
0.3
     
7.3
%
% of net sales
   
10.8
%
   
10.5
%
               
 
        Net sales in the Construction Technologies segment increased 4.4% to $40.6 million from $38.9 million in the prior year.  Environmental Products increased 18% to $13.4 million due to higher volumes.  Foreign exchange had an unfavorable impact on sales of $1.4 million or 4%.

        Income from operations was $4.4 million, increased 7.3% over prior year and represented 10.8% of sales.

Energy Services Segment

   
Three Months Ended
             
Energy Services Segment
 
Apr. 3,
2016
   
Mar. 29,
2015
   
 
Growth
 
   
(millions of dollars)
             
                         
Net Sales
 
$
25.8
   
$
58.6
   
$
(32.8
)
   
-56.0
%
                                 
Income (loss)  from operations
 
$
(0.1
)
 
$
5.8
   
$
(5.9
)
   
*
 
% of net sales
   
-0.4
%
   
9.9
%
               

*Percentage not meaningful
 
Net sales in the Energy Services segment decreased 56.0% to $25.8 million from $58.6 million in the prior year.  The exit from the Coiled Tubing service line in August 2015 reduced sales by $8.9 million, or 15 percent.  Foreign exchange had an unfavorable impact on sales of $2.2 million, or 4 percent.  This segment continues to experience pressure in all product lines due to weak market conditions in the oil and gas sector.
     
Loss from operations was $0.1 million during the three months ended April 3, 2016.  Included in the loss from operations in the first quarter of 2016 were restructuring charges of $0.8 million.  The segment continues to aggressively reduce costs to offset the significant overcapacity in U.S. onshore oil and gas services caused by the oil price decline.

Liquidity and Capital Resources

        Cash provided from continuing operations during the three months ended April 3, 2016, was approximately $41.8 million.  Cash flows provided from operations during the first three months of 2016 were principally used to fund capital expenditures, to repay debt, to repurchase shares of our common stock, and to pay the Company's dividend to common shareholders.  Our intention is to use excess cash flow primarily to repay debt and to de-lever as quickly as possible.  During the first quarter of 2016, the Company repaid $40 million in principal amount of its long-term debt.  The aggregate maturities of long-term debt are as follows:  remainder of 2016 - $3.0 million; 2017 - $6.2 million; 2018 - $2.2 million; 2019 - $1.7 million; 2020 - $-- million; thereafter - $1,238.0 million. 
 
24

On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for the $1.560 billion senior secured term loan facility (the “Term Facility”)  and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”). The net proceeds of the Term Facility, together with the Company’s cash on hand, were used as cash consideration for the acquisition of AMCOL and to refinance certain existing indebtedness of the Company (including the Company’s 3.46% Series A Senior Notes due October 7, 2020 and 4.13% Series B Senior Notes due October 7, 2023) and AMCOL and to pay fees and expenses in connection with the foregoing.  Loans under the Revolving Facility will be used for working capital and other general corporate purposes of the Company and its subsidiaries.

On June 23, 2015, the Company entered into an amendment to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility.  As amended, the Term Facility has a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. The maturity date for loans under the Term Facility was not changed by the amendment.  The loans outstanding under the Term Facility will mature on May 9, 2021 and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May 9, 2019.  After the amendment, loans under the variable rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 3.00% per annum. Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%.   Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.75% per annum.  Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds.  The variable rate tranche of the Term Facility was issued at par and has a 1% required amortization per year.  The fixed rate tranche of the Term Facility was issued at a 0.25% discount.   The Company will pay certain fees under the credit agreement, including customary annual administration fees.  The loans under the fixed rate tranche of the Term Facility are subject to prepayment premiums in the event of certain prepayments prior to the third anniversary of the effective date of the amendment. The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors.

The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions.  In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to $15 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, 5.25 to 1.00 for the four fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00.  As of April 3, 2016, there were no loans and $12.2 million in letters of credit outstanding under the Revolving Facility.  The Company is in compliance with all the covenants associated with this Revolving Facility as of the end of the period covered by this report.

The Company has four committed loan facilities for the funding of new manufacturing facilities in China, for a combined 94.8 million RMB and $1.8 million.  As of April 3, 2016, on a combined basis, $13.2 million is outstanding.  Principal will be repaid in accordance with the payment schedules ending in 2019. The Company repaid $1.1 million on these loans in the first quarter to 2016.

As of April 3, 2016, the Company had $37.1 million in uncommitted short-term bank credit lines, of which approximately $5.8 million was in use. The credit lines are primarily outside the U.S. and are generally one year in term at competitive market rates at large well- established institutions.  The Company typically uses its available credit lines to fund working capital requirements or local capital spending needs. We anticipate that capital expenditures for 2016 should be between $80.0 million and $90.0 million, principally related to the construction of PCC plants and other opportunities that meet our strategic growth objectives. We expect to meet our other long-term financing requirements from internally generated funds, committed and uncommitted bank credit lines and, where appropriate, project financing of certain satellite plants. 
 
On April 5, 2016, the Company entered into a floating to fixed interest rate swap for an initial aggregate notional amount of $300 million to limit exposure to interest rate increases related to a portion of the Company’s floating rate indebtedness. This swap agreement hedge a portion of contractual floating rate interest through the expiration of the agreements in May 2021. As a result of the agreement, the Company’s effective fixed interest rate on the notional amount floating rate indebtedness will be 4.25%.

 On September 16, 2015, the Company's Board of Directors authorized the Company’s management to repurchase, at its discretion, up to $150 million of the Company’s shares over a two-year period commencing October 3, 2015.  As of April 3, 2016, 49,098 shares have been repurchased under this program for $2.4 million, or an average price of approximately $48.37 per share.
 
25

 The Company is required to make future payments under various contracts, including debt agreements and lease agreements.  The Company also has commitments to fund its pension plans and provide payments for other postretirement benefit plans.  During the three months ended April 3, 2016, there were no material changes in the Company’s contractual obligations.  For an in-depth discussion of the Company’s contractual obligations, see “Liquidity and Capital Resources” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Cautionary Statement for “Safe Harbor” Purposes under the Private Securities Litigation Reform Act of 1995

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company.  This report contains statements that the Company believes may be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, particularly statements relating to the Company’s objectives, plans or goals, future actions, future performance or results of current and anticipated products, sales efforts, expenditures, and financial results.  From time to time, the Company also provides forward-looking statements in other publicly-released materials, both written and oral.  Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues and financial performance, and are not limited to describing historical or current facts.  They can be identified by the use of words such as “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning.

Forward-looking statements are necessarily based on assumptions, estimates and limited information available at the time they are made.  A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements.  Many of these risks and uncertainties are difficult to predict or are beyond the Company’s control.  Consequently, no forward-looking statement can be guaranteed.  Actual future results may vary materially.  Significant factors affecting the expectations and forecasts are set forth under “Item 1A — Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and in Exhibit 99 to this Quarterly Report on Form 10-Q.
 
The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that arise after the date hereof.  Investors should refer to the Company's subsequent filings under the Securities Exchange Act of 1934 for further disclosures.

Recently Issued Accounting Standards
 
        Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification.
 
        The Company considers the applicability and impact of all ASUs.  ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
          
Revenue from Contracts with Customers

        In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.  The Company expects to complete this analysis by the fourth quarter of 2016.
 
26

Inventory – Simplifying the Measurement of Inventory
 
In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.
 
Leases
 
In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.  The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Investments – Equity Method and Joint Ventures
 
In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.  ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.
 
Stock Compensation – Improvements to Employee Share-Based Payment Accounting
 
In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient – expected term (nonpublic only); and (7) intrinsic value (nonpublic only).  The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.

On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, valuation of receivables, valuation of inventories, valuation of long-lived assets, pension plan assumptions, stock-based compensation assumptions, valuation of product liability and asset retirement obligation, income taxes, income tax valuation allowances and litigation and environmental liabilities.  We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that can not readily be determined from other sources.  There can be no assurance that actual results will not differ from those estimates.
 
27

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk represents the risk of loss that may impact our financial position, results of operations or cash flows due to adverse changes in market prices and foreign currency and interest rates.  We are exposed to market risk because of changes in foreign currency exchange rates as measured against the U.S. dollar.  We do not anticipate that near-term changes in exchange rates will have a material impact on our future earnings or cash flows.  However, there can be no assurance that a sudden and significant decline in the value of foreign currencies would not have a material adverse effect on our financial condition and results of operations.  Our long-term bank debt bears interest at variable rates; therefore our results of operations would be affected by interest rate changes to the extent of such outstanding bank debt.  An immediate 10 percent change in interest rates would have a material effect on our results of operations over the next fiscal year.  A one-percent change in interest rates would result in $4.4 million in incremental interest charges on an annual basis.

We do not enter into derivatives or other financial instruments for trading or speculative purposes.  When appropriate, we enter into derivative financial instruments, such as forward exchange contracts, hedges and interest rate swaps, to mitigate the impact of foreign exchange rate movements and interest rate movements on our operating results.  The counterparties are major financial institutions.  Such forward exchange contracts, hedges and interest rate swaps would not subject us to additional risk from exchange rate or interest rate movements because gains and losses on these contracts would offset losses and gains on the assets, liabilities, and transactions being hedged.

The Company had no significant derivative financial instruments outstanding at April 3, 2016.  On April 5, 2016, the Company entered into a floating to fixed interest rate swap for an initial aggregate notional amount of $300 million to limit exposure to interest rate increases related to a portion of the Company’s floating rate indebtedness. This swap agreement hedge a portion of contractual floating rate interest through the expiration of the agreements in May 2021. As a result of the agreement, the Company’s effective fixed interest rate on the notional amount floating rate indebtedness will be 4.25%.

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, and under the supervision and with participation of the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, pursuant to Exchange Act Rule 13a-15(b).  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report the Company’s disclosure controls and procedures were effective.

The Company is in the process of implementing a global enterprise resource planning (“ERP”) system for the businesses acquired from AMCOL.  As of April 3, 2016, most of the domestic locations of the acquired businesses were implemented on the new system.  The worldwide implementation is expected to be completed over the next eighteen months and involves changes in the systems that include internal controls.  Although the transition has proceeded to date without material adverse effects, the possibility exists that our migration to the new ERP system could adversely affect the Company’s internal controls over financial reporting and procedures.  We are reviewing each system as it is being implemented and the controls affected by the implementation of the new systems, and are making appropriate changes to the affected internal controls as we implement the new systems.  We believe that the controls as modified are appropriate and functioning effectively.

Changes in Internal Control Over Financial Reporting

Except as described above, there were no changes in the Company's internal control over financial reporting during the quarter ended April 3, 2016  that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
 
28

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

The Company and its subsidiaries are the subject of various pending legal actions in the ordinary course of their businesses. Except as described below, none of such legal proceedings are material.

Armada Litigation

On May 8, 2013, Armada (Singapore) PTE Limited, an ocean shipping company now in bankruptcy ("Armada") filed a case in federal court in the Northern District of Illinois against AMCOL and certain of its subsidiaries ( Armada (Singapore) PTE Limited v. AMCOL International Corp., et al., United States District Court for the Northern District of Illinois , Case No. 13 CV 3455).  We acquired AMCOL and its subsidiaries on May 9, 2014. A co-defendant is Ashapura Minechem Limited, a company located in Mumbai, India (“AML”).  During the relevant time period, 2008-2010, AMCOL owned slightly over 20% of the outstanding AML stock through December 2009, after which it owned approximately 19%.  In 2008, AML entered into two contracts of affreightment (“COA”) with Armada for over 60 ship loads of bauxite from India to China.  After one shipment, AML made no further shipments, which led Armada to file arbitrations in London against AML, one for each COA. AML did not appear in the London arbitrations and default awards of approximately $70 million were entered.  The litigation filed by Armada against AMCOL and AML relates to these awards, which AML has not paid.  The substance of the allegations by Armada is that AML and AMCOL engaged in illegal conduct to thwart Armada’s efforts to collect the arbitration award.  The counts in the complaint include both violations of the Illinois Fraudulent Transfer laws as well as federal RICO violations.  The lawsuit seeks money damages, as well as injunctive relief.  The litigation is in the discovery phase. Discovery is currently scheduled to last into the fourth quarter of 2016.  We have accrued an estimate of potential damages for the Armada lawsuit, the amount of which was not material to our financial position, results of operations or cash flows.

Silica and Asbestos Litigation

Certain of the Company's subsidiaries are among numerous defendants in a number of cases seeking damages for exposure to silica or to asbestos containing materials.  The Company currently has 5 pending silica cases and 15 pending asbestos cases. Of the five pending silica cases, one involves claims by 25 plaintiffs.  To date, 1,490 silica cases and 47 asbestos cases have been dismissed, not including any lawsuits against AMCOL or American Colloid Company dismissed prior to our acquisition of AMCOL.  Two new asbestos cases and no new silica cases were filed in the first quarter of 2016. One asbestos case was dismissed during the quarter.  In addition, during the first quarter of 2016 we learned that 25 silica cases in West Virginia had been dismissed previously.

Most of these claims do not provide adequate information to assess their merits, the likelihood that the Company will be found liable, or the magnitude of such liability, if any. Additional claims of this nature may be made against the Company or its subsidiaries.  At this time management anticipates that the amount of the Company's liability, if any, and the cost of defending such claims, will not have a material effect on its financial position or results of operations.

The Company has settled only one silica lawsuit, for a nominal amount, and no asbestos lawsuits to date (not including any that may have been settled by AMCOL prior to completion of the acquisition).  We are unable to state an amount or range of amounts claimed in any of the lawsuits because state court pleading practices do not require identifying the amount of the claimed damage. The aggregate cost to the Company for the legal defense of these cases since inception continues to be insignificant.  The majority of the costs of defense for these cases, excluding cases against AMCOL or American Colloid, are reimbursed by Pfizer Inc. pursuant to the terms of certain agreements entered into in connection with the Company's initial public offering in 1992. Of the 15 pending asbestos cases all except four allege liability based on products sold largely or entirely prior to the initial public offering, and for which the Company is therefore entitled to indemnification pursuant to such agreements.  The four exceptions pertain to a pending asbestos case against American Colloid Company, and three for which no period of alleged exposure has been stated by plaintiffs.  Our experience has been that the Company is not liable to plaintiffs in any of these lawsuits and the Company does not expect to pay any settlements or jury verdicts in these lawsuits.
 
29

Environmental Matters

On April 9, 2003, the Connecticut Department of Environmental Protection issued an administrative consent order relating to our Canaan, Connecticut, plant where both our Refractories segment and Specialty Minerals segment have operations.  We agreed to the order, which includes provisions requiring investigation and remediation of contamination associated with historic use of polychlorinated biphenyls ("PCBs") and mercury at a portion of the site.  We have completed the required investigations and submitted several reports characterizing the contamination and assessing site-specific risks.  We are awaiting regulators’ approval of the risk assessment report, which will form the basis for a proposal by the Company concerning eventual remediation.

We believe that the most likely form of overall site remediation will be to leave the existing contamination in place (with some limited soil removal), encapsulate it, and monitor the effectiveness of the encapsulation.  We anticipate that a substantial portion of the remediation cost will be borne by the United States based on its involvement at the site from 1942 – 1964, as historic documentation indicates that PCBs and mercury were first used at the facility at a time of U.S. government ownership for production of materials needed by the military.  Pursuant to a Consent Decree entered on October 24, 2014, the United States paid the Company $2.3 million in the 4th quarter of 2014 to resolve the Company’s claim for response costs for investigation and initial remediation activities at this facility through October 24, 2014.  Contribution by the United States to any future costs of investigation or additional remediation has, by agreement, been left unresolved.  Though the cost of the likely remediation remains uncertain pending completion of the phased remediation decision process, we have estimated that the Company’s share of the cost of the encapsulation and limited soil removal described above would approximate $0.4 million, which has been accrued as of April 3, 2016.

The Company is evaluating options for upgrading the wastewater treatment facilities at its Adams, Massachusetts plant.  This work has been undertaken pursuant to an administrative Consent Order originally issued by the Massachusetts Department of Environmental Protection (“DEP”) on June 18, 2002.  This order was amended on June 1, 2009 and on June 2, 2010.  The amended Order includes the investigation by January 1, 2022 of options for ensuring that the facility's wastewater treatment ponds will not result in unpermitted discharge to groundwater.  Additional requirements of the amendment include the submittal by July 1, 2022 of a plan for closure of a historic lime solids disposal area.  Preliminary engineering reviews completed in 2005 indicate that the estimated cost of wastewater treatment upgrades to operate this facility beyond 2024 may be between $6 million and $8 million.  The Company estimates that the remaining remediation costs would approximate $0.4 million, which has been accrued as of April 3, 2016.
 
30

ITEM 1A. Risk Factors

       For a description of Risk Factors, see Exhibit 99 attached to this report.  There have been no material changes to our risk factors from those disclosed in our 2015 Annual Report on Form 10-K.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
Issuer Purchases of Equity Securities:

       
Period
 
 
 
 
 
 
 
Total Number of
Shares Purchased
   
 
 
 
 
 
 
Average Price
Paid Per Share
   
Total
Number of
Shares
Purchased
as Part of
the Publicly
Announced
Program
   
 
 
 
Dollar Value of
Shares that May
Yet be Purchased
Under the
Program
 
                           
January 1 - January 31
     
-
     
-
     
-
   
$
150,000,000
 
February 1 - Februray 28
     
34,098
   
$
46.02
     
34,098
   
$
148,430,786
 
February 29 - April 3
     
15,000
   
$
53.71
     
49,098
   
$
147,625,076
 
Total
     
49,098
   
$
48.37
                 
 
On September 16, 2015, the Company's Board of Directors authorized the Company’s management to repurchase, at its discretion, up to $150 million of the Company’s shares over a two-year period commencing October 3, 2015.  As of April 3, 2016, 49,098 shares have been repurchased under this program for $2.4 million.

ITEM 3. Default Upon Senior Securities

    Not applicable.
 
ITEM 4. Mine Safety Disclosures
 
The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this Quarterly Report on Form 10-Q.

ITEM 5. Other Information
 
None
 
31

ITEM 6. Exhibits

Exhibit No.
 
Exhibit Title
     
3.1
 
By-Laws of Minerals Technologies Inc., as amended and restated effective March 16, 2016 (incorporated by reference to the Exhibit 3.1 filed with the Company’s Current Report on form 8-K filed on March 17, 2016).
10.1
 
Sixth Amendment to Employment Agreement, dated November 27, 2016, by and between Joseph C. Muscari and the Company (incorporated by reference to the Exhibit 10.1 filed with the Company’s Current Report on form 8-K filed on February 1, 2016).
 
Letter Regarding Unaudited Interim Financial Information.
 
Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal executive officer.
 
Rule 13a-14(a)/15d-14(a) Certification executed by the Company's principal financial officer.
 
Section 1350 Certifications.
 
Information concerning Mine Safety Violations
 
Risk Factors
101.INS
 
XBRL Instance Document
101.SCH
 
XBRL Taxonomy Extension Schema
101.CAL
 
XBRL Taxonomy Extension Calculation Linkbase
101.DEF
 
XBRL Taxonomy Extension Definition Linkbase
101.LAB
 
XBRL Taxonomy Extension Label Linkbase
101.PRE
 
XBRL Taxonomy Extension Presentation Linkbase
 
32

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

   
Minerals Technologies Inc.
     
 
By:
/s/Douglas T. Dietrich
   
Douglas T. Dietrich
   
Senior Vice President, Finance and Treasury,
   
Chief Financial Officer
     
May 6, 2016
   
 
 
33

EX-15 2 ex15.htm EXHIBIT 15

EXHIBIT 15

ACCOUNTANTS' ACKNOWLEDGEMENT

Board of Directors
Minerals Technologies Inc.:

Re:   Registration Statement Nos. 333-160002, 33-59080, 333-62739 , 333-138245 and 333-206244

With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated May 6, 2016, related to our review of interim financial information.
 
Pursuant to Rule 436 under the Securities Act of 1933, such report is not considered a part of a registration statement prepared or certified by an independent registered public accounting firm, or a report prepared or certified by an independent registered public accounting firm within the meaning of Sections 7 and 11 of the Act.

/s/ KPMG LLP

New York, New York
May 6, 2016
 
 

EX-31.1 3 ex31_1.htm EXHIBIT 31.1

EXHIBIT 31.1
 
RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Joseph C. Muscari, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Minerals Technologies Inc.;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter ( the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
 (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: May 6, 2016
By:
/s/Joseph C. Muscari
 
   
Joseph C. Muscari
 
   
Chairman of the Board
 
   
and Chief Executive Officer
 

 

EX-31.2 4 ex31_2.htm EXHIBIT 31.2

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Douglas T. Dietrich, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Minerals Technologies Inc.;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
 (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
 (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
 (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter ( the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
 
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
 
Date: May 6, 2016
By:
/s/Douglas T. Dietrich
 
   
Douglas T. Dietrich
 
   
Senior Vice President, Finance and Treasury,
 
   
Chief Financial Officer
 
 
 

EX-32 5 ex32.htm EXHIBIT 32

EXHIBIT 32

SECTION 1350 CERTIFICATIONS
 
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18, United States Code), each of the undersigned officers of Minerals Technologies Inc., a Delaware corporation (the "Company"), does hereby certify that:
 
The Quarterly Report on Form 10-Q for the quarter ended April 3, 2016 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  May 6, 2016
By:
/s/Joseph C. Muscari
   
Joseph C. Muscari
   
Chairman of the Board
and Chief Executive Officer

Date:  May 6, 2016
By:
/s/Douglas T. Dietrich
   
Douglas T. Dietrich
   
Senior Vice President, Finance and Treasury,
   
Chief Financial Officer
 
The foregoing certification is being furnished solely pursuant to Exchange Act Rule 13a-14(b); is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section; and is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act of 1934.
 
 

EX-95 6 ex95.htm EXHIBIT 95

Exhibit 95

Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K contain certain reporting requirements regarding coal or other mine safety.  The Company, through its subsidiaries Specialty Minerals Inc., Barretts Minerals Inc., and American Colloid Company, operates fourteen mines in the United States.  The operation of our mines is subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”).  MSHA inspects our mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act.

The following table sets forth the required information with respect to each mine for which we are the operator for the period January 1, 2016 to April 3, 2016:

Mine
Section 104(a) S&S
Section
104(b)
Section
104(d)
Section
110(b)(2)
Section
107(a)
Proposed
Assessments
Fatalities
 
(A)
(B)
(C)
(D)
(E)
(F)
(G)
Lucerne Valley, CA
0
0
0
0
0
$0
0
Canaan, CT
6
0
0
0
0
$49,919
0
Adams, MA
3
0
0
0
0
$4,350
0
Barretts Mill, Dillon, MT
1
0
0
0
0
$890
0
Regal Mine, Dillon, MT
0
0
0
0
0
$400
0
Treasure Mine, Dillon, MT
0
0
0
0
0
$200
0
Belle/Colony Mine, WY
0
0
0
0
0
$826
0
Belle Fourche Mill, SD
0
0
0
0
0
$0
0
Colony East, WY
3
0
0
0
0
$1,443
0
Colony West, WY
1
0
0
0
0
$1,298
0
Gascoyne, ND
1
0
0
0
0
$262
0
Lovell, WY
1
0
0
0
0
$0
0
Sandy Ridge, AL
3
0
0
0
0
$0
0
Yellowtail, WY
0
0
0
0
0
$0
0

(A) The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under section 104 of the Mine Act for which we received a citation from MSHA.

(B) The total number of orders issued under section 104(b) of the Mine Act.

(C) The total number of citations and orders for unwarrantable failure of the Company to comply with mandatory health or safety standards under section 104(d) of the Mine Act.

(D) The total number of flagrant violations under section 110(b)(2) of the Mine Act.

(E) The total number of imminent danger orders issued under section 107(a) of the Mine Act.

(F) The total dollar value of proposed assessments from MSHA under the Mine Act.

(G) The total number of mining-related fatalities, other than fatalities determined by MSHA to be unrelated to mining activity.
 


During the period January 1, 2016 to April 3, 2016, we did not receive any written notice from MSHA, with respect to any mine for which we are the operator, of (A) a pattern of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of mine health and safety hazards under section 104(e) of the Mine Act or (B) the potential to have such a pattern.

The following table sets forth the required information with respect to legal actions before the Federal Mine Safety and Health Review Commission involving each mine for which we are the operator for the period January 1, 2016 to April 3, 2016:

Mine
Legal Actions Pending As Of Last Day Of Period
Legal Actions Initiated During Period
Legal Actions Resolved During Period
Lucerne Valley, CA
0
0
0
Canaan, CT
11
1
0
Adams, MA
42
0
4
Barretts Mill, Dillon, MT
0
0
0
Regal Mine, Dillon, MT
0
0
0
Treasure Mine, Dillon, MT
0
0
0
Belle/Colony Mine, WY
0
0
0
Belle Fourche Mill, SD
0
0
0
Colony East, WY
0
0
1
Colony West, WY
0
0
1
Gascoyne, ND
0
0
0
Lovell, WY
0
0
0
Sandy Ridge, AL
0
0
0
Yellowtail, WY
0
0
0
 

1 Of the one legal action pending as of the last day of the period, the action is a contest of proposed penalties, as referenced in Subpart C of 29 CFR Part 2700.
2 Of the total four legal actions pending as of the last day of the period, one action is a contest of citations and orders, as referenced in Subpart B of 29 CFR Part 2700; three actions are contests of proposed penalties, as referenced in Subpart C of 29 CFR Part 2700.
 
 

EX-99 7 ex99.htm EXHIBIT 99

EXHIBIT 99
 
RISK FACTORS

Our business faces significant risks.  Set forth below are all risks that we believe are material at this time.  Our business, financial condition and results of operations could be materially adversely affected by any of these risks.  These risks should be read in conjunction with the other information in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and this Quarterly Report on Form 10-Q.

· Worldwide general economic, business, and industry conditions have had, and may continue to have, an adverse effect on the Company’s results.
 
The global economic instability of the past few years has caused, among other things, declining consumer and business confidence, volatile raw material prices, instability in credit markets, high unemployment, fluctuating interest and exchange rates, and other challenges.  The Company’s business and operating results have been and may continue to be adversely affected by these global economic conditions.  The Company’s customers and potential customers may experience deterioration of their businesses, cash flow shortages, and difficulty obtaining financing.  As discussed below, the industries we serve have in the past been adversely affected by the uncertain global economic climate due to the cyclical nature of their businesses.  As a result, existing or potential customers may reduce or delay their growth and investments and their plans to purchase products, and may not be able to fulfill their obligations in a timely fashion.  Further, suppliers could experience similar conditions, which could affect their ability to fulfill their obligations to the Company.  Adversity within capital markets may also impact the Company’s results of operations by negatively affecting the amount of expense the Company records for its pension and other postretirement benefit plans.  Actuarial valuations used to calculate income or expense for the plans reflect assumptions about financial market and other economic conditions – the most significant of which are the discount rate and the expected long-term rate of return on plan assets.  Such actuarial valuations may change based on changes in key economic indicators.  Global economic markets remain uncertain, and there can be no assurance that market conditions will improve in the near future.  Future weakness in the global economy could materially and adversely affect our business and operating results.
 
· Our customers’ businesses are cyclical or have changing regional demands.  Our operations are subject to these trends and we may not be able to mitigate these risks.
 
·
Our Performance Materials segment’s sales are predominantly derived from the metalcasting market.  The metalcasting market is dependent upon the demand for castings for automobile components, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components.  Many of these types of equipment are sensitive to fluctuations in demand during periods of recession or tough economies, which ultimately may affect the demand for our construction technologies and performance materials segments’ products and services.
 
· In the paper industry, which is served by our Paper PCC product line, production levels for uncoated freesheet within North America and Europe, our two largest markets are projected to continue to decrease.  The reduced demand for premium writing paper products has also caused the paper industry to experience a number of recent bankruptcies and paper mill closures, including among our customers.
 
· Our Refractories segment primarily serves the steel industry.  North American and European steel production continues to be affected by global volatility and overcapacity in the market.
 
· Demand for our Energy Services segment’s products and services is affected by the level of exploration, development, and production activity of, and the corresponding capital spending by, oil and natural gas companies, which are heavily influenced by the benchmark price of these commodities.  Oil and natural gas prices decreased significantly in 2014 and 2015, with West Texas Intermediate (WTI) oil spot prices declining from a high of $108 per barrel in June 2014 to a low of $26 per barrel in February 2016.  This has caused oil and natural gas companies to reduce their capital expenditures and production and exploration activities.  This has the effect of decreasing the demand and increasing competition for the services we provide.  In addition, the performance of our Energy Services segment is affected by changes in technologies, locations of customers’ targeted reserves, and competition in various geographic markets.
 

· Our Construction Technologies segment’s sales are predominantly derived from the commercial construction and infrastructure markets.  In addition, our Processed Minerals and Specialty PCC product lines are affected by the domestic building and construction markets, as well as the automotive market.
 
Demand for our products is subject to trends in these markets.  During periods of economic slowdown, our customers often reduce their capital expenditures and defer or cancel pending projects.  Such developments occur even amongst customers that are not experiencing financial difficulties.  In addition, these trends could cause our customers to face liquidity issues or bankruptcy, which could deteriorate the aging of our accounts receivable, increase our bad debt exposure and possibly trigger impairment of assets or realignment of our businesses.  The Company has taken steps to reduce its exposure to variations in its customers' businesses, including by diversifying its portfolio of products and services; through geographic expansion, and by structuring most of its long-term satellite PCC contracts to provide a degree of protection against declines in the quantity of product purchased, since the price per ton of PCC generally rises as the number of tons purchased declines.  In addition, many of the Company's product lines lower its customers' costs of production or increase their productivity, which should encourage them to use its products.  However, there can be no assurance that these efforts will mitigate the risks of our dependence on these industries.  Continued weakness in the industries we serve has had, and may in the future have, an adverse effect on sales of our products and our results of operations.  A continued or renewed economic downturn in one or more of the industries or geographic regions that the Company serves, or in the worldwide economy, could cause actual results of operations to differ materially from historical and expected results.
 
· The Company’s results could be adversely affected if it is unable to effectively achieve and implement its growth initiatives.
 
Sales and income growth of the Company depends upon a number of uncertain events, including the outcome of the Company's strategies of increasing its penetration into geographic markets such as the BRIC (Brazil, Russia, India, China) countries and other Asian and Eastern European countries; increasing its penetration into product markets such as the market for papercoating pigments and the market for groundwood paper pigments; increasing sales to existing PCC customers by increasing the amount of PCC used per ton of paper produced; developing, introducing and selling new products such as the FulFill® family of products for the paper industry.  Difficulties, delays or failure of any of these strategies could affect the future growth rate of the Company.  Our strategy also anticipates growth through future acquisitions.  However, our ability to identify and consummate any future acquisitions on terms that are favorable to us may be limited by the number of attractive acquisition targets, internal demands on our resources and our ability to obtain financing.  Our success in integrating newly acquired businesses will depend upon our ability to retain key personnel, avoid diversion of management’s attention from operational matters, and integrate general and administrative services.  In addition, future acquisitions could result in the incurrence of additional debt, costs and contingent liabilities.  Integration of acquired operations may take longer, or be more costly or disruptive to our business, than originally anticipated, and it is also possible that expected synergies from future acquisitions may not materialize.  We also may incur costs and divert management attention with regard to potential acquisitions that are never consummated.
 
· Servicing the Company’s debt will require a significant amount of cash.  This could reduce the Company’s flexibility to respond to changing business and economic conditions or fund capital expenditures or working capital needs. Our ability to generate cash depends on many factors beyond our control.
 
At April 3, 2016, the Company had outstanding borrowings of $1.2 billion pursuant to our senior secured credit facility, largely incurred to finance the acquisition of AMCOL.  This financing will require a significant amount of cash to make interest payments.  Further, the interest rate on our borrowings under our senior secured credit facility are based on LIBOR interest rates, which could result in higher interest expense in the event of an increase in interest rates.  Our ability to pay interest on our debt and to satisfy our other debt obligations will depend in part upon our future financial and operating performance and upon our ability to renew or refinance borrowings.  Prevailing economic conditions and financial, business, competitive, regulatory and other factors, many of which are beyond our control, will affect our ability to make these payments.  We cannot guarantee that our business will generate sufficient cash flow from operations or that future borrowings will be available to us in an amount sufficient to enable us to fund our liquidity needs.  If we are unable to generate sufficient cash flow to meet our debt service obligations, we will have to pursue one or more alternatives, such as reducing or delaying capital or other expenditures, refinancing debt, selling assets, or raising equity capital.  Further, the requirement to make significant interest payments may reduce the Company’s flexibility to respond to changing business and economic conditions or fund capital expenditure or working capital needs and may increase the Company’s vulnerability to adverse economic conditions.
 

· Our senior secured credit facility contains various covenants that limit our ability to take certain actions and our revolving credit facility, if used, also requires us to meet financial maintenance tests, failure to comply with which could have a material adverse effect on us.
 
The agreement governing our senior secured credit facility contains a number of significant covenants that, among other things, limit our ability to: incur additional debt or liens, consolidate or merge with any other person, alter the business we conduct, make investments, use the proceeds of asset sales or sale/leaseback transactions, enter into hedging arrangements, pay dividends or make certain other restricted payments, create dividend or other payment restrictions with respect to subsidiaries, and enter into transactions with affiliates.  In addition, our revolving credit facility, if used, requires us to comply with specific financial ratios, including a maximum net leverage ratio, under which we are required to achieve specific financial results.  Our ability to comply with these provisions may be affected by events beyond our control.  A breach of any of these covenants would result in a default under the agreements.  In the event of any default, our lenders could elect to declare all amounts borrowed under the agreements, together with accrued interest thereon, to be due and payable.  In such an event, we cannot assure you that we would have sufficient assets to pay debt then outstanding under the agreements governing our debt.  Any future refinancing of the senior secured credit facility is likely to contain similar restrictive covenants.
 
· The Company’s sales of PCC could be adversely affected by our failure to renew or extend long term sales contracts for our satellite operations.
 
The Company's sales of PCC to paper customers are typically pursuant to long-term evergreen agreements, initially ten years in length, with paper mills where the Company operates satellite PCC plants.  Sales pursuant to these contracts represent a significant portion of our worldwide Paper PCC sales, which were $423.3 million in 2015, or approximately 24% of the Company’s net sales.  The terms of many of these agreements have been extended or renewed in the past, often in connection with an expansion of the satellite plant.  However, failure of a number of the Company's customers to renew or extend existing agreements on terms as favorable to the Company as those currently in effect, or at all, could have a substantial adverse effect on the Company's results of operations, and could also result in impairment of the assets associated with the PCC plant.
 
· The Company’s sales could be adversely affected by consolidation in customer industries, principally paper, foundry and steel.
 
Several consolidations in the paper industry have taken place in recent years and such consolidation could continue in the future.  These consolidations could result in partial or total closure of some paper mills where the Company operates PCC satellites.  Such closures would reduce the Company's sales of PCC, except to the extent that they resulted in shifting paper production and associated purchases of PCC to another location served by the Company.  Similarly, consolidations have occurred in the foundry and steel industries.  Such consolidations in the major industries we serve concentrate purchasing power in the hands of a smaller number of manufacturers, enabling them to increase pressure on suppliers, such as the Company.  This increased pressure could have an adverse effect on the Company's results of operations in the future.
 
· The Company is subject to stringent regulation in the areas of environmental, health and safety, and tax, and may incur unanticipated costs or liabilities arising out of claims for various legal, environmental and tax matters or product stewardship issues.
 
The Company’s operations are subject to international, federal, state and local governmental environmental, health and safety, tax and other laws and regulations.  We have expended, and may be required to expend in the future, substantial funds for compliance with such laws and regulations.  In addition, future events, such as changes to or modifications of interpretations of existing laws and regulations, or enforcement polices, or further investigation or evaluation of the potential environmental impacts of operations or health hazards of certain products, may affect our mining rights or give rise to additional compliance and other costs that could have a material adverse effect on the Company.  Further, certain of our customers are subject to various federal and international laws and regulations relating to environmental and health and safety matters, especially our Energy Services customers who are subject to drilling permits, waste water disposal and other regulations.  To the extent that these laws and regulations affecting our customers change, demand for our products and services could also change and thereby affect our financial results.  State, national, and international governments and agencies have been evaluating climate-related legislation and regulation that would restrict emissions of greenhouse gases in areas in which we conduct business, and some such legislation and regulation have already been enacted or adopted.  Enactment of climate-related legislation or adoption of regulation that restrict emissions of greenhouse gases in areas in which we conduct business could have an adverse effect on our operations or demand for our products.  Our manufacturing processes, particularly the manufacturing process for PCC, use a significant amount of energy and, should energy prices increase as a result of such legislation or regulation, we may not be able to pass these increased costs on to purchasers of our products.  We cannot predict if or when currently proposed or additional laws and regulations regarding climate change or other environmental or health and safety concerns will be enacted or adopted.  Moreover, changes in tax regulation and international tax treaties could reduce the financial performance of our foreign operations.
 

The Company is currently a party in various litigation matters and tax and environmental proceedings and faces risks arising from various unasserted litigation matters, including, but not limited to, product liability, patent infringement, antitrust claims, and claims for third party property damage or personal injury stemming from alleged environmental torts.  Failure to appropriately manage safety, human health, product liability and environmental risks associated with the Company’s products and production processes could adversely impact the Company’s employees and other stakeholders, the Company’s reputation and its results of operations.  Public perception of the risks associated with the Company’s products and production processes could impact product acceptance and influence the regulatory environment in which the Company operates.  While the Company has procedures and controls to manage these risks, carries liability insurance, which it believes to be appropriate to its businesses, and has provided reserves for current matters, which it believes to be adequate, an unanticipated liability, arising out of a current matter or proceeding or from the other risks described above, could have a material adverse effect on the Company’s financial condition or results of operations.
 
· Delays or failures in new product development could adversely affect the Company’s operations.
 
The Company’s future business success will depend in part upon its ability to maintain and enhance its technological capabilities, to respond to changing customer needs, and to successfully anticipate or respond to technological changes on a cost-effective and timely basis.  The Company is engaged in a continuous effort to develop new products and processes in all of its product lines.  Difficulties, delays or failures in the development, testing, production, marketing or sale of such new products could cause actual results of operations to differ materially from our expected results.
 
· The Company’s ability to compete is dependent upon its ability to defend its intellectual property against inappropriate disclosure and infringement.
 
The Company's ability to compete is based in part upon proprietary knowledge, both patented and unpatented.  The Company's ability to achieve anticipated results depends in part on its ability to defend its intellectual property against inappropriate disclosure as well as against infringement.  In addition, development by the Company's competitors of new products or technologies that are more effective or less expensive than those the Company offers could have a material adverse effect on the Company's financial condition or results of operations.
 
· The Company’s operations could be impacted by the increased risks of doing business abroad.
 
The Company does business in many areas internationally.  Approximately 42% of our sales in 2015 were derived from outside the United States and we have significant production facilities which are located outside of the United States.  We have in recent years expanded our operations in emerging markets, and we plan to continue to do so in the future, particularly in China, India, Brazil, and Eastern Europe.  Some of our operations are located in areas that have experienced political or economic instability, including Indonesia, Malaysia, Nigeria, Egypt, Saudi Arabia, Brazil, Thailand, China and South Africa.  As the Company expands its operations overseas, it faces increased risks of doing business abroad, including inflation, fluctuation in interest rates, changes in applicable laws and regulatory requirements, export and import restrictions, tariffs, nationalization, expropriation, limits on repatriation of funds, civil unrest, terrorism, unstable governments and legal systems, and other factors.  Many of these risks are beyond our control and can lead to sudden, and potentially prolonged, changes in demand for our products, difficulty in enforcing agreements, and losses in the realizability of our assets.  Adverse developments in any of the areas in which we do business could cause actual results to differ materially from historical and expected results.  In addition, a significant portion of our raw material purchases and sales outside the United States are denominated in foreign currencies, and liabilities for non-U.S. operating expenses and income taxes are denominated in local currencies.  Accordingly, reported sales, net earnings, cash flows and fair values have been and, in the future, will be affected by changes in foreign currency exchange rates.  Our overall success as a global business depends, in part, upon our ability to succeed in differing legal, regulatory, economic, social and political conditions.  We cannot assure you that we will implement policies and strategies that will be effective in each location where we do business.
 
· The Company’s operations are dependent on the availability of raw materials and access to ore reserves at its mining operations.  Increases in costs of raw materials, energy, or shipping could adversely affect our financial results.
 

The Company depends in part on having an adequate supply of raw materials for its manufacturing operations, particularly lime and carbon dioxide for the PCC product line, and magnesia and alumina for its Refractory operations.  Purchase prices and availability of these critical raw materials are subject to volatility.  At any given time, we may be unable to obtain an adequate supply of these critical raw materials on a timely basis, on price and other terms, or at all.  While most such raw materials are readily available, the Company purchases approximately 45% of its magnesia requirements from sources in China.  The majority of magnesia requirements were purchased from other countries.  The price and availability of magnesia have fluctuated in the past and they may fluctuate in the future.  Price increases for certain other of our raw materials, including petrochemical products, as well as increases in energy prices, have also affected our business.  Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal.  We use diesel fuel to operate our mining and processing equipment and our freight costs are heavily dependent upon fuel prices and surcharges.  Energy costs also affect the cost of raw materials.  On a combined basis, these factors represent a large exposure to petrochemical and energy products which may be subject to significant price fluctuations.  The contracts pursuant to which we construct and operate our satellite PCC plants generally adjust pricing to reflect the pass-through of increases in costs resulting from inflation, including energy.  However, there is a time lag before such price adjustments can be implemented.  The Company and its customers will typically negotiate reasonable price adjustments in order to recover these escalating costs, but there can be no assurance that we will be able to recover increasing costs through such negotiations.
 
The Company also depends on having adequate access to ore reserves of appropriate quality at its mining operations. There are numerous uncertainties inherent in estimating ore reserves including subjective judgments and determinations that are based on available geological, technical, contract and economic information.
 
The Company relies on shipping bulk cargos of bentonite from the United States, Turkey and China to customers, as well as our own subsidiaries, and we are sensitive to our ability to recover these shipping costs.  In the last few years, bulk cargo shipping rates have been very volatile, and, to a lesser extent, the availability of bulk cargo containers has been suspect.  If we cannot secure our container requirements or offset additional shipping costs with price increases to customers, our profitability could be impacted.  We are also subject to other shipping risks.  In particular, rail service interruptions have affected our ability to ship, and the availability of rail service, and our ability to recover increased rail costs, may be beyond our control.
 
· The Company operates in very competitive industries, which could adversely affect our profitability.
 
The Company has many competitors.  Some of our principal competitors have greater financial and other resources than we have.  Accordingly, these competitors may be better able to withstand economic downturns and changes in conditions within the industries in which we operate and may have significantly greater operating and financial flexibility than we do.  We also face competition for some of our products from alternative products, and some of the competition we face comes from competitors in lower-cost production countries like China and India. As a result of the competitive environment in the markets in which we operate, we currently face and will continue to face pressure on the sales prices of our products from competitors, which could reduce profit margins.
 
· Production facilities are subject to operating risks and capacity limitations that may adversely affect the Company’s financial condition or results of operations.
 
The Company is dependent on the continued operation of its production facilities.  Production facilities are subject to hazards associated with the manufacturing, handling, storage, and transportation of chemical materials and products, including pipeline leaks and ruptures, explosions, fires, inclement weather and natural disasters, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, and environmental risks.  We maintain property, business interruption and casualty insurance but such insurance may not cover all risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered.  We may incur losses beyond the limits, or outside the coverage, of our insurance policies.  Further, from time to time, we may experience capacity limitations in our manufacturing operations.  In addition, if we are unable to effectively forecast our customers’ demand, it could affect our ability to successfully manage operating capacity limitations.  These hazards, limitations, disruptions in supply and capacity constraints could adversely affect financial results.
 

· Operating Results for some of our segments are seasonal.
 
Our Energy Services and Construction Technologies segments are affected by seasonal weather patterns.  A majority of our Energy Services revenues are derived from the Gulf of Mexico and surrounding states, which are susceptible to hurricanes that typically occur June 1st through November 30th.  In addition, it is affected by customers’ demands for natural gas.  Natural gas is affected by weather patterns as colder winters increase the demand for natural gas to heat homes and warmer summers increase the demand for natural gas to fuel generators providing electricity to run air conditioners.  Actual or threatened hurricanes or changes in the demand for natural gas can result in volatile demand for services provided by our Energy Services segment.  Our Construction Technologies segment is affected by weather patterns which determine the feasibility of construction activities.  Typically, less construction activity occurs in winter months and thus this segment’s revenues tend to be greatest in the second and third quarters when weather patterns in our geographic markets are more conducive to construction activities.  Our Processed Minerals product line is subject to similar seasonal patterns.
 
 

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width: 100%;"><tr><td valign="bottom" style="border-top: medium none; border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none;">&#160;</td><td valign="bottom" style="border-top: medium none; vertical-align: bottom; padding-bottom: 2px; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-top: medium none; vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Apr. 3,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="border-top: medium none; border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left;">&#160;</td><td valign="bottom" style="border-top: medium none; vertical-align: bottom; padding-bottom: 2px; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="border-top: medium none; 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border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; 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width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; 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border-bottom: medium none; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; 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font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">As of April 3, 2016, the Company had approximately $4.2 million of total unrecognized income tax benefits. 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font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The Company operates in multiple taxing jurisdictions, both within and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings.&#160; The Company, with a few exceptions (none of which are material), is no longer subject to income tax examinations by tax authorities for years prior to 2010.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">Provision for taxes was $10.7 million as compared to $12.1 million in the prior year.&#160; The effective tax rate was 23.7% as compared to 25.4% in prior year.&#160; The lower effective tax rate was primarily due to a change in the mix of earnings.</div></div> 5100000 13500000 20400000 41700000 210600000 212700000 14100000 15400000 16600000 19900000 86100000 88200000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; 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border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">0.9</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">34.8</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 23%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other comprehensive income (loss)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">0.2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(1.7</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(0.1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(0.1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 23%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Purchase of treasury stock</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(2.3</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; margin-left: 18pt;">Recently Issued Accounting Standards</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB&#8217;s Accounting Standards Codification.&#160; The Company considers the applicability and impact of all ASUs.&#160; ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;</div><div style="margin-left: 18pt; font-style: italic;">Revenue from Contracts with Customers</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2014, the FASB issued ASU No. 2014-09, &#8220;Revenue from Contracts with Customers&#8221; which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity&#8217;s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company&#8217;s consolidated financial statements and related disclosures.&#160; The Company expects to complete this analysis by the fourth quarter of 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; margin-left: 18pt;">Inventory &#8211; Simplifying the Measurement of Inventory</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In July 2015, the FASB issued ASU No. 2015-11, &#8220;Inventory (Topic 330): Simplifying the Measurement of Inventory.&#8221; Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company&#8217;s financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; margin-left: 18pt;">Leases</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.&#160; The Company is currently evaluating the impact of this ASU on the Company&#8217;s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company&#8217;s financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 18pt;">Investments &#8211; Equity Method and Joint Ventures</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In March 2016, the FASB issued ASU 2016-07, &#8220;Simplifying the Transition to the Equity Method of Accounting&#8221;, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.&#160; ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. 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The Company is currently evaluating the impact of this ASU on the Company&#8217;s consolidated financial statements and related disclosures.</div></div> -12400000 -12200000 5 59900000 57600000 23800000 23800000 4400000 4100000 25700000 5800000 8300000 6800000 -100000 23100000 60600000 65100000 -1300000 -1400000 11200000 -26400000 0 0 200000 0 11000000 0 0 0 9700000 9700000 900000 700000 -27800000 9900000 79000000 78200000 145500000 156600000 216400000 217900000 1600000 2900000 1700000 3200000 11000000 1300000 0 9700000 -1000000 1200000 2400000 0 100000 200000 2700000 1700000 1800000 15700000 24200000 1700000 600000 <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; width: 45pt; align: right;">Note 8.</td><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; text-align: justify; width: auto;">Benefit Plans</td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis.&#160; The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. 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vertical-align: bottom; padding-bottom: 2px; text-align: left;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; padding-bottom: 2px; margin-left: 9pt; border-left: medium none; text-indent: -9pt;">&#160;</td><td colspan="7" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">(millions of dollars)</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Amortization of pension items:</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 18pt; text-indent: -9pt;">Pre-tax amount</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1.4</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr></table></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows:</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; border-top: medium none; font-family: 'Times New Roman'; border-right: medium none; border-bottom: medium none; border-left: medium none; width: 90%;"><tr><td valign="bottom" style="border-right: medium none; 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font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Apr. 3,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Mar. 29,</div>2015</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; margin-left: 9pt; border-left: medium none; 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border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.6</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Interest cost</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; 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border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Expected return on plan assets</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(4.6</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; 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border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.6</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.8</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; 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font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Gross <div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Carrying</div></div>Amount</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Accumulated</div>Amortization</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; 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border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">229.5</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">18.9</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; 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border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">16.8</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr></table></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests:</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; 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vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%;">&#160;</td><td colspan="2" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; text-indent: -7.2pt;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Additional</div>Paid-in</div>Capital</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; 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font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Accumulated</div>Other</div>Comprehensive</div>Income (Loss)</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%;">&#160;</td><td colspan="2" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; text-indent: -7.2pt;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; text-indent: -7.2pt;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Treasury</div>Stock</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%;">&#160;</td><td colspan="2" style="vertical-align: middle; white-space: nowrap; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; text-indent: -7.2pt;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; 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text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">0.2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; 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border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(1.7</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 23%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; 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border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; 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border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(2.3</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(2.3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; 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background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">0.5</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 8%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">0.5</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 23%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; 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border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.6</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(180.9</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: middle; 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padding-bottom: 4px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Balance as of April 3, 2016</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(99.0</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Three Months Ended</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: middle; padding-bottom: 2px; width: 66%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Apr. 3,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; 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vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: middle; width: 66%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Diluted earnings (Loss) per share attributable to MTI</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">73.4</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Work-in-process</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">5.4</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">5.4</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; 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vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">194.9</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr></table></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; 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padding-bottom: 2px; text-align: left;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Apr. 3,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; text-align: left;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none;">&#160;</td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; 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font-family: 'Times New Roman';">15.6</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Metalcasting</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">60.0</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">65.2</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Household, Personal Care and Specialty Products</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">41.8</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Basic Minerals and Other Products</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13.7</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">20.9</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Environmental Products</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">453.3</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr></table></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The following is a summary of long-term debt:</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">&#160;</div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; border-top: medium none; font-family: 'Times New Roman'; border-right: medium none; border-bottom: medium none; border-left: medium none; width: 100%;"><tr><td valign="bottom" style="border-top: medium none; border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none;">&#160;</td><td valign="bottom" style="border-top: medium none; 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text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none; 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vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; padding-bottom: 2px; border-left: medium none; width: 76%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Less: Current maturities</div></td><td valign="bottom" style="vertical-align: bottom; 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font-family: 'Times New Roman';">453.3</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: bottom; border-left: medium none; width: 66%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 66%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center; margin-left: 7.2pt; text-indent: -7.2pt;">Income from Operations</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 66%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Specialty Minerals</div></td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">25.7</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; 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background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 25.2pt; text-indent: -7.2pt;">Total</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">60.6</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">65.1</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows:</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; border-top: medium none; font-family: 'Times New Roman'; border-right: medium none; border-bottom: medium none; border-left: medium none; width: 90%;"><tr><td valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 2px; margin-left: 9pt; border-left: medium none; width: 66%; text-indent: -9pt;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; border-left: medium none; width: 1%;">&#160;</td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: middle; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Income from operations before</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">&#160;provision for taxes on income</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; 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font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; margin-left: 9pt; border-left: medium none; width: 66%; background-color: #ffffff; text-indent: -9pt;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;">&#160;</td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; 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border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">45.2</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">47.7</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; 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font-family: 'Times New Roman';">15.0</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-left: medium none; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td><td valign="bottom" style="vertical-align: bottom; border-bottom: medium none; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13.8</div></td><td nowrap="nowrap" valign="bottom" style="border-right: medium none; vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;">&#160;</td></tr><tr><td valign="bottom" style="border-right: medium none; vertical-align: middle; border-left: medium none; width: 76%; background-color: #ffffff;"><div style="font-size: 10pt; 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width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; width: 45pt; align: right;">Note 1.</td><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; text-align: left; width: auto;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Basis of Presentation and</font> Summary of Significant Accounting Policies</td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the &#8220;Company&#8221;, &#8220;MTI&#8221;, &#8220;we&#8221;, or &#8220;us&#8221;) in accordance with the rules and regulations of the United States Securities and Exchange Commission.&#160; Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted.&#160; Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.&#160; In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included.&#160; The results for the three-month periods ended April 3, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Company Operations</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">The Company is a resource- and technology-based company that develops, produces and markets worldwide a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services.</div><div>&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-indent: 18pt;">The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">- </font>The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc.</div><div><br /></div><div style="text-align: justify; 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font-family: 'Times New Roman';">The Construction Technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide.&#160; It serves customers engaged in a broad range of construction projects, including site remediation, concrete waterproofing for underground structures, liquid containment on projects ranging from landfills to flood control, and drilling applications including foundation, slurry wall, tunneling, water well, and horizontal drilling.</font></div><div><br /></div><div style="text-align: justify; text-indent: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">-</font>&#160;&#160;<font style="font-size: 10pt; font-family: 'Times New Roman';">The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry.&#160; This segment offers a range of patented and unpatented technologies, products and services for all phases of oil and gas production, refining, and storage throughout the world.</font></div><div>&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; margin-left: 18pt;">Use of Estimates</div><div><br /></div><div style="text-align: justify; text-indent: 18pt;">&#160;<font style="font-size: 10pt; font-family: 'Times New Roman';">The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.&#160; Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities.&#160; Actual results could differ from those estimates.</font></div><div>&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; margin-left: 18pt;">Recently Issued Accounting Standards</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB&#8217;s Accounting Standards Codification.&#160; The Company considers the applicability and impact of all ASUs.&#160; ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;</div><div style="margin-left: 18pt; font-style: italic;">Revenue from Contracts with Customers</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;In May 2014, the FASB issued ASU No. 2014-09, &#8220;Revenue from Contracts with Customers&#8221; which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity&#8217;s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company&#8217;s consolidated financial statements and related disclosures.&#160; The Company expects to complete this analysis by the fourth quarter of 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; margin-left: 18pt;">Inventory &#8211; Simplifying the Measurement of Inventory</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In July 2015, the FASB issued ASU No. 2015-11, &#8220;Inventory (Topic 330): Simplifying the Measurement of Inventory.&#8221; Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company&#8217;s financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; margin-left: 18pt;">Leases</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In February 2016, the FASB issued ASU 2016-02, &#8220;Leases&#8221;, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.&#160; The Company is currently evaluating the impact of this ASU on the Company&#8217;s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company&#8217;s financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 18pt;">Investments &#8211; Equity Method and Joint Ventures</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; text-indent: 18pt;">In March 2016, the FASB issued ASU 2016-07, &#8220;Simplifying the Transition to the Equity Method of Accounting&#8221;, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.&#160; ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. 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Document and Entity Information - shares
3 Months Ended
Apr. 03, 2016
Apr. 25, 2016
Document and Entity Information [Abstract]    
Entity Registrant Name MINERALS TECHNOLOGIES INC  
Entity Central Index Key 0000891014  
Current Fiscal Year End Date --12-31  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   34,827,203
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q1  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Apr. 03, 2016  
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract]    
Product sales $ 384.4 $ 394.7
Service revenue 25.8 58.6
Total net sales 410.2 453.3
Cost of goods sold 277.6 292.9
Cost of service revenue 19.9 43.8
Total cost of sales 297.5 336.7
Production margin 112.7 116.6
Marketing and administrative expenses 46.7 47.4
Research and development expenses 5.9 5.9
Acquisition related transaction and integration costs 1.6 3.4
Restructuring and other charges 0.9 0.0
Income from operations 57.6 59.9
Interest expense, net (14.1) (15.4)
Other non-operating income (deductions), net 1.7 3.2
Total non-operating deductions, net (12.4) (12.2)
Income before provision for taxes and equity in earnings 45.2 47.7
Provision for taxes on income 10.7 12.1
Equity in earnings of affiliates, net of tax 0.3 0.4
Consolidated net income 34.8 36.0
Less: Net income attributable to non-controlling interests 0.9 0.9
Net income attributable to Minerals Technologies Inc. (MTI) $ 33.9 $ 35.1
Earnings per share:    
Basic earnings per share attributable to MTI (in dollars per share) $ 0.97 $ 1.01
Diluted earnings per share attributable to MTI (in dollars per share) 0.97 1.01
Cash dividends declared per common share (in dollars per share) $ 0.05 $ 0.05
Shares used in computation of earnings per share:    
Basic (in shares) 34.8 34.7
Diluted (in shares) 34.9 34.9
XML 16 R3.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]    
Consolidated net income $ 34.8 $ 36.0
Other comprehensive income (loss), net of tax:    
Foreign currency translation adjustments 9.9 (27.8)
Pension and postretirement plan adjustments 1.3 1.4
Total other comprehensive income (loss), net of tax 11.2 (26.4)
Total comprehensive income including non-controlling interests 46.0 9.6
Comprehensive (income) loss attributable to non-controlling interest (1.2) 1.0
Comprehensive income attributable to MTI $ 44.8 $ 10.6
XML 17 R4.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Apr. 03, 2016
[1]
Dec. 31, 2015
[2]
Current assets:    
Cash and cash equivalents $ 211.9 $ 229.4
Short-term investments, at cost which approximates market 3.5 2.6
Accounts receivable, net 365.6 348.7
Inventories 197.2 194.9
Prepaid expenses and other current assets 29.8 28.0
Total current assets 808.0 803.6
Property, plant and equipment 2,193.6 2,167.3
Less accumulated depreciation and depletion (1,091.1) (1,063.0)
Property, plant and equipment, net 1,102.5 1,104.3
Goodwill 781.3 781.2
Intangible assets 210.6 212.7
Other assets and deferred charges 79.0 78.2
Total assets 2,981.4 2,980.0
Current liabilities:    
Short-term debt 5.8 6.5
Current maturities of long-term debt 3.2 3.1
Accounts payable 159.8 152.4
Other current liabilities 145.5 156.6
Total current liabilities 314.3 318.6
Long-term debt, net of unamortized discount 1,217.7 1,255.3
Deferred income taxes 252.1 252.0
Other non-current liabilities 217.9 216.4
Total liabilities 2,002.0 2,042.3
Shareholders' equity:    
Common stock 4.8 4.8
Additional paid-in capital 387.4 387.6
Retained earnings 1,324.9 1,292.7
Accumulated other comprehensive loss (169.9) (180.9)
Less common stock held in treasury (596.0) (593.7)
Total MTI shareholders' equity 951.2 910.5
Non-controlling interest 28.2 27.2
Total shareholders' equity 979.4 937.7
Total liabilities and shareholders' equity $ 2,981.4 $ 2,980.0
[1] Unaudited
[2] Condensed from audited financial statements
XML 18 R5.htm IDEA: XBRL DOCUMENT v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Operating Activities:    
Consolidated net income $ 34.8 $ 36.0
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 24.5 23.7
Other non-cash items 2.9 1.6
Net changes in operating assets and liabilities (20.4) (41.7)
Net cash provided by operating activities 41.8 19.6
Investing Activities:    
Purchases of property, plant and equipment, net (15.7) (24.2)
Net purchases of short-term investments (0.6) (1.7)
Net cash used in investing activities (16.3) (25.9)
Financing Activities:    
Proceeds from issuance of long-term debt 1.2 2.5
Repayment of long-term debt (40.1) (40.0)
Net issuance (repayment) of short-term debt (0.7) 0.4
Purchase of common shares for treasury (2.4) 0.0
Proceeds from issuance of stock under option plan 0.5 0.8
Excess tax benefits related to stock incentive programs 0.0 0.1
Dividends paid to non-controlling interest (0.1) (0.2)
Cash dividends paid (1.7) (1.8)
Net cash used in financing activities (43.3) (38.2)
Effect of exchange rate changes on cash and cash equivalents 0.3 (11.2)
Net decrease in cash and cash equivalents (17.5) (55.7)
Cash and cash equivalents at beginning of period 229.4 [1] 249.6
Cash and cash equivalents at end of period 211.9 [2] 193.9
Supplemental disclosure of cash flow information:    
Interest paid 16.6 19.9
Income taxes paid $ 5.1 $ 13.5
[1] Condensed from audited financial statements
[2] Unaudited
XML 19 R6.htm IDEA: XBRL DOCUMENT v3.4.0.3
Basis of Presentation and Summary of Significant Accounting Policies
3 Months Ended
Apr. 03, 2016
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies
Note 1.Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we”, or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted.  Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included.  The results for the three-month periods ended April 3, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

Company Operations

The Company is a resource- and technology-based company that develops, produces and markets worldwide a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services.
 
The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.

- The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc.

- The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products.

- The Performance Materials segment is a leading supplier of bentonite and bentonite-related products.  This segment also supplies chromite and leonardite and operates more than 25 mining or production facilities worldwide.

- The Construction Technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide.  It serves customers engaged in a broad range of construction projects, including site remediation, concrete waterproofing for underground structures, liquid containment on projects ranging from landfills to flood control, and drilling applications including foundation, slurry wall, tunneling, water well, and horizontal drilling.

-  The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry.  This segment offers a range of patented and unpatented technologies, products and services for all phases of oil and gas production, refining, and storage throughout the world.
 
Use of Estimates

 The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.  Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities.  Actual results could differ from those estimates.
 
Recently Issued Accounting Standards
 
        Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification.  The Company considers the applicability and impact of all ASUs.  ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
 
Revenue from Contracts with Customers

        In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.  The Company expects to complete this analysis by the fourth quarter of 2016.

Inventory – Simplifying the Measurement of Inventory

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.  The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Investments – Equity Method and Joint Ventures

In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.  ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Stock Compensation – Improvements to Employee Share-Based Payment Accounting

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient – expected term (nonpublic only); and (7) intrinsic value (nonpublic only).  The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.
XML 20 R7.htm IDEA: XBRL DOCUMENT v3.4.0.3
Earnings Per Share (EPS)
3 Months Ended
Apr. 03, 2016
Earnings Per Share (EPS) [Abstract]  
Earnings Per Share (EPS)
Note 2.Earnings Per Share (EPS)

Basic earnings per share are based upon the weighted average number of common shares outstanding during the period.  Diluted earnings per share are based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.

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

  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(in millions, except per share data)
 
       
Net income attributable to MTI
 
$
33.9
  
$
35.1
 
         
Weighted average shares outstanding
  
34.8
   
34.7
 
Dilutive effect of stock options and stock units
  
0.1
   
0.2
 
Weighted average shares outstanding, adjusted
  
34.9
   
34.9
 
         
Basic earnings (Loss) per share attributable to MTI
 
$
0.97
  
$
1.01
 
         
Diluted earnings (Loss) per share attributable to MTI
 
$
0.97
  
$
1.01
 
 
Options to purchase 375,644 shares and 245,128 shares of common stock for the three-month periods ended April 3, 2016 and March 29, 2015, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares.
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Restructuring Charges
3 Months Ended
Apr. 03, 2016
Restructuring Charges [Abstract]  
Restructuring Charges
Note 3.Restructuring Charges

During 2014, the Company announced a restructuring program that will result in a 10% permanent reduction of its workforce.  The reductions include elimination of duplicate corporate functions, deployment of our shared service model, and consolidation and alignment of various corporate functions and regional locations across the Company.
 
At April 3, 2016, we had $6.1 million included within accrued liabilities within our Condensed Consolidated Balance Sheets for cash expenditures needed to satisfy remaining obligations under these workforce reduction initiatives.  The Company expects to pay these amounts by the end of December 2016.
 
The following table is a reconciliation of our restructuring liability balance as of April 3, 2016:

  
(millions of dollars)
 
Restructuring liability, December 31, 2015
 
$
7.9
 
Additional provisions
  
0.9
 
Cash payments
  
(2.7
)
Restructuring liability,  April 3, 2016
 
$
6.1
 
XML 22 R9.htm IDEA: XBRL DOCUMENT v3.4.0.3
Income Taxes
3 Months Ended
Apr. 03, 2016
Income Taxes [Abstract]  
Income Taxes
Note 4.Income Taxes

As of April 3, 2016, the Company had approximately $4.2 million of total unrecognized income tax benefits. Included in this amount were a total of $1.6 million of unrecognized income tax benefits that, if recognized, would affect the Company’s effective tax rate.  While it is expected that the amount of unrecognized tax benefits will change in the next 12 months, the Company does not expect the change to have a significant impact on the results of operations or the financial position of the Company.
 
The Company’s accounting policy is to recognize interest and penalties accrued relating to unrecognized income tax benefits as part of its provision for income taxes.  The Company had a net increase of approximately $0.1 million during the three months ended April 3, 2016, and had an accrued balance of $1.0 million of interest and penalties as of April 3, 2016.

The Company operates in multiple taxing jurisdictions, both within and outside the U.S. In certain situations, a taxing authority may challenge positions that the Company has adopted in its income tax filings.  The Company, with a few exceptions (none of which are material), is no longer subject to income tax examinations by tax authorities for years prior to 2010.

Provision for taxes was $10.7 million as compared to $12.1 million in the prior year.  The effective tax rate was 23.7% as compared to 25.4% in prior year.  The lower effective tax rate was primarily due to a change in the mix of earnings.
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Inventories
3 Months Ended
Apr. 03, 2016
Inventories [Abstract]  
Inventories
Note 5.Inventories
 
The following is a summary of inventories by major category:

  
Apr. 3,
2016
  
Dec. 31,
2015
 
  
(millions of dollars)
 
Raw materials
 
$
73.7
  
$
73.4
 
Work-in-process
  
5.4
   
5.4
 
Finished goods
  
88.2
   
86.1
 
Packaging and supplies
  
29.9
   
30.0
 
Total inventories
 
$
197.2
  
$
194.9
 
XML 24 R11.htm IDEA: XBRL DOCUMENT v3.4.0.3
Goodwill and Other Intangible Assets
3 Months Ended
Apr. 03, 2016
Goodwill and Other Intangible Assets [Abstract]  
Goodwill and Other Intangible Assets
Note 6.Goodwill and Other Intangible Assets

Goodwill and other intangible assets with indefinite lives are not amortized, but instead are assessed for impairment, at least annually.  The carrying amount of goodwill was $781.3 million, and $781.2 million as of April 3, 2016 and December 31, 2015, respectively.  The net change in goodwill since December 31, 2015 was attributable to the effect of foreign exchange.

Acquired intangible assets subject to amortization as of April 3, 2016 and December 31, 2015 were as follows:

 
Apr. 3, 2016
  
Dec. 31, 2015
 
  
Gross
Carrying
Amount
  
 
Accumulated
Amortization
  
Gross
Carrying
Amount
  
 
Accumulated
Amortization
 
  
(millions of dollars)
 
Tradenames
 
$
199.8
  
$
10.8
  
$
199.8
  
$
9.3
 
Technology
  
18.8
   
2.8
   
18.8
   
2.5
 
Patents and trademarks
  
6.4
   
4.5
   
6.4
   
4.4
 
Customer relationships
  
4.5
   
0.8
   
4.5
   
0.6
 
  
$
229.5
  
$
18.9
  
$
229.5
  
$
16.8
 

 The weighted average amortization period for acquired intangible assets subject to amortization is approximately 28 years.  Estimated amortization expense is $8.1 million for 2016, $7.9 million for 2017-2020, and $172.9 million thereafter.
XML 25 R12.htm IDEA: XBRL DOCUMENT v3.4.0.3
Long-Term Debt and Commitments
3 Months Ended
Apr. 03, 2016
Long-Term Debt and Commitments [Abstract]  
Long-Term Debt and Commitments
Note 7.Long-Term Debt and Commitments

The following is a summary of long-term debt:
 
  
Apr. 3,
2016
  
Dec. 31,
2015
 
  
(millions of dollars)
 
Term Loan Facility due May 9, 2021, net of unamortized discount  and deferred financing costs of $30.3 and $30.9, respectively
 
$
1,207.7
  
$
1,246.4
 
         
China Loan Facilities
  
13.2
   
12.0
 
         
Total
 
$
1,220.9
  
$
1,258.4
 
         
Less: Current maturities
  
3.2
   
3.1
 
Long-term debt
 
$
1,217.7
  
$
1,255.3
 
 
On May 9, 2014, in connection with the acquisition of AMCOL International Corporation (“AMCOL”), the Company entered into a credit agreement providing for a $1,560 million senior secured term loan facility (the “Term Facility”) and a $200 million senior secured revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Facilities”).

On June 23, 2015, the Company entered into an amendment to the credit agreement to reprice the $1.378 billion then outstanding on the Term Facility.  As amended, the Term Facility has a $1.078 billion floating rate tranche and a $300 million fixed rate tranche. The maturity date for loans under the Term Facility was not changed by the amendment.  The loans outstanding under the Term Facility will mature on May 9, 2021 and the loans outstanding (if any) and commitments under the Revolving Facility will mature and terminate, as the case may be, on May 9, 2019.  After the amendment, loans under the variable rate tranche of the Term Facility bear interest at a rate equal to an adjusted LIBOR rate (subject to a floor of 0.75%) plus an applicable margin equal to 3.00% per annum. Loans under the fixed rate tranche of the Term Facility bear interest at a rate of 4.75%.  Loans under the Revolving Facility will bear interest at a rate equal to an adjusted LIBOR rate plus an applicable margin equal to 1.75% per annum.  Such rates are subject to decrease by up to 25 basis points in the event that, and for so long as, the Company’s net leverage ratio (as defined in the credit agreement) is less than certain thresholds.  The variable rate tranche of the Term Facility was issued at par and has a 1% required amortization per year.  The obligations of the Company under the Facilities are unconditionally guaranteed jointly and severally by, subject to certain exceptions, all material domestic subsidiaries of the Company (the “Guarantors”) and secured, subject to certain exceptions, by a security interest in substantially all of the assets of the Company and the Guarantors.

The credit agreement contains certain customary affirmative and negative covenants that limit or restrict the ability of the Company and its restricted subsidiaries to enter into certain transactions or take certain actions. In addition, the credit agreement contains a financial covenant that requires the Company, if on the last day of any fiscal quarter loans or letters of credit were outstanding under the Revolving Facility (excluding up to $15 million of letters of credit), to maintain a maximum net leverage ratio (as defined in the credit agreement) of, initially, 5.25 to 1.00 for the four fiscal quarter period preceding such day. Such maximum net leverage ratio requirement is subject to decrease during the duration of the facility to a minimum level (when applicable) of 3.50 to 1.00.  During the first three months of 2016, the Company repaid $40 million on its Term Facility.  As of April 3, 2016, there were no loans and $12.2 million in letters of credit outstanding under the Revolving Facility. The Company is in compliance with all the covenants associated with the Revolving Facility as of the end of the period covered by this report.

The Company has four committed loan facilities for the funding of new manufacturing facilities in China, for a combined 94.8 million RMB and $1.8 million.  As of April 3, 2016, on a combined basis, $13.2 million is outstanding.  Principal will be repaid in accordance with the payment schedules ending in 2019. The Company repaid $0.1 million on these loans in the first quarter to 2016.

As of April 3, 2016, the Company had $37.2 million in uncommitted short-term bank credit lines, of which approximately $5.8 million was in use.
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Benefit Plans
3 Months Ended
Apr. 03, 2016
Benefit Plans [Abstract]  
Benefit Plans
Note 8.Benefit Plans

The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis.  The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. Disclosures for the U.S. plans have been combined with those outside of the U.S. as the international plans do not have significantly different assumptions, and together represent less than 25% of our total benefit obligation.

Components of Net Periodic Benefit Cost

  
Pension Benefits
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Service cost
 
$
2.3
  
$
2.6
 
Interest cost
  
3.4
   
3.9
 
Expected return on plan assets
  
(4.6
)
  
(5.1
)
Amortization:
        
Prior service cost
  
0.2
   
0.3
 
Recognized net actuarial loss
  
2.6
   
2.8
 
Net periodic benefit cost
 
$
3.9
  
$
4.5
 

  Other Benefits 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Service cost
 
$
0.1
  
$
0.1
 
Interest cost
  
0.1
   
0.1
 
Amortization:
        
Prior service cost
  
(0.8
)
  
(0.8
)
Recognized net actuarial (gain)/loss
      
-
 
Net periodic benefit cost
 
$
(0.6
)
 
$
(0.6
)

Amortization amounts of prior service costs and recognized net actuarial losses are recorded, net of tax, as increases to accumulated other comprehensive income.

Employer Contributions

The Company expects to contribute approximately $11.0 million to its pension plans and $0.6 million to its other postretirement benefit plans in 2016. As of April 3, 2016, $0.8 million has been contributed to the pension plans and approximately $0.1 million has been contributed to the other postretirement benefit plans.
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Comprehensive Income
3 Months Ended
Apr. 03, 2016
Comprehensive Income [Abstract]  
Comprehensive Income
Note 9.Comprehensive Income

The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss) attributable to the Company:

 
Three Months Ended
 
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)
 
Apr. 3,
2016
  
Mar. 29,
2015
 
 
(millions of dollars)
 
Amortization of pension items:
      
Pre-tax amount
 
$
2.0
  
$
2.3
 
Tax
  
(0.7
)
  
(0.9
)
Net of tax
 
$
1.3
  
$
1.4
 
 
The pre-tax amounts in the table above are included within the components of net periodic pension benefit cost (see Note 8 to the Condensed Consolidated Financial Statements) and the tax amounts are included within provision for taxes on income line within Condensed Consolidated Statements of Income.

The major components of accumulated other comprehensive income, net of related tax, attributable to MTI are as follows:

  
Foreign Currency
 Translation
 Adjustment
  
Unrecognized
Pension Costs
  
Net Gain on
 Cash Flow
 Hedges
  
Total
 
  
(millions of dollars)
 
             
Balance as of December 31, 2015
 
$
(108.7
)
 
$
(74.8
)
 
$
2.6
  
$
(180.9
)
                 
Other comprehensive income (loss) before reclassifications
  
9.7
   
-
   
-
   
9.7
 
Amounts reclassified from AOCI
  
-
   
1.3
   
-
   
1.3
 
Net current period other comprehensive income (loss)
  
9.7
   
1.3
   
-
   
11.0
 
Balance as of April 3, 2016
 
$
(99.0
)
 
$
(73.5
)
 
$
2.6
  
$
(169.9
)
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Accounting for Asset Retirement Obligations
3 Months Ended
Apr. 03, 2016
Accounting for Asset Retirement Obligations [Abstract]  
Accounting for Asset Retirement Obligations
Note 10.Accounting for Asset Retirement Obligations

         The Company records asset retirement obligations for situations in which the Company will be required to incur costs to retire tangible long-lived assets.  The fair value of the liability for an asset retirement obligation is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.

         The Company also records liabilities related to land reclamation as a part of asset retirement obligations.  The Company mines various minerals using a surface mining process that requires the removal of overburden.  In certain areas and under various governmental regulations, the Company is obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity.  The obligation is adjusted to reflect the passage of time, mining activities, and changes in estimated future cash outflows.

        The following is a reconciliation of asset retirement obligations as of April 3, 2016:

  
(millions of dollars)
 
Asset retirement liability, December 31, 2015
 
$
21.4
 
Accretion expense
  
0.4
 
Payments
  
(0.2
)
Foreign currency translation
  
0.2
 
Asset retirement liability,  April 3, 2016
 
$
21.8
 

         The asset retirement costs are capitalized as part of the carrying amount of the associated asset.  The current portion of the liability of approximately $1.9 million is included in other current liabilities and the long-term portion of the liability of approximately $19.9 million is included in other non-current liabilities in the Condensed Consolidated Balance Sheet as of April 3, 2016.
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Contingencies
3 Months Ended
Apr. 03, 2016
Contingencies [Abstract]  
Contingencies
Note 11.Contingencies

We are party to a number of lawsuits arising in the normal course of our business.

On May 8, 2013, Armada (Singapore) PTE Limited, an ocean shipping company now in bankruptcy ("Armada") filed a case in federal court in the Northern District of Illinois against AMCOL and certain of its subsidiaries ( Armada (Singapore) PTE Limited v. AMCOL International Corp., et al., United States District Court for the Northern District of Illinois , Case No. 13 CV 3455).  We acquired AMCOL and its subsidiaries on May 9, 2014. A co-defendant is Ashapura Minechem Limited, a company located in Mumbai, India (“AML”).  During the relevant time period, 2008-2010, AMCOL owned slightly over 20% of the outstanding AML stock through December 2009, after which it owned approximately 19%.  In 2008, AML entered into two contracts of affreightment (“COA”) with Armada for over 60 ship loads of bauxite from India to China.  After one shipment, AML made no further shipments, which led Armada to file arbitrations in London against AML, one for each COA. AML did not appear in the London arbitrations and default awards of approximately $70 million were entered.  The litigation filed by Armada against AMCOL and AML relates to these awards, which AML has not paid.  The substance of the allegations by Armada is that AML and AMCOL engaged in illegal conduct to thwart Armada’s efforts to collect the arbitration award.  The counts in the complaint include both violations of the Illinois Fraudulent Transfer laws as well as federal RICO violations.  The lawsuit seeks money damages, as well as injunctive relief.  The litigation is in the discovery phase. Discovery is currently scheduled to last into the fourth quarter of 2016.  We have accrued an estimate of potential damages for the Armada lawsuit, the amount of which was not material to our financial position, results of operations or cash flows.
 
Certain of the Company's subsidiaries are among numerous defendants in a number of cases seeking damages for exposure to silica or to asbestos containing materials.  The Company currently has 5 pending silica cases and 15 pending asbestos cases. Of the five pending silica cases, one involves claims by 25 plaintiffs.  To date, 1,490 silica cases and 47 asbestos cases have been dismissed, not including any lawsuits against AMCOL or American Colloid Company dismissed prior to our acquisition of AMCOL.  Two new asbestos cases and no new silica cases were filed in the first quarter of 2016. One asbestos case was dismissed during the quarter.  In addition, during the first quarter of 2016 we learned that 25 silica cases in West Virginia had been dismissed previously.

Most of these claims do not provide adequate information to assess their merits, the likelihood that the Company will be found liable, or the magnitude of such liability, if any. Additional claims of this nature may be made against the Company or its subsidiaries.  At this time management anticipates that the amount of the Company's liability, if any, and the cost of defending such claims, will not have a material effect on its financial position or results of operations.

The Company has settled only one silica lawsuit, for a nominal amount, and no asbestos lawsuits to date (not including any that may have been settled by AMCOL prior to completion of the acquisition).  We are unable to state an amount or range of amounts claimed in any of the lawsuits because state court pleading practices do not require identifying the amount of the claimed damage. The aggregate cost to the Company for the legal defense of these cases since inception continues to be insignificant.  The majority of the costs of defense for these cases, excluding cases against AMCOL or American Colloid, are reimbursed by Pfizer Inc. pursuant to the terms of certain agreements entered into in connection with the Company's initial public offering in 1992. Of the 15 pending asbestos cases all except four allege liability based on products sold largely or entirely prior to the initial public offering, and for which the Company is therefore entitled to indemnification pursuant to such agreements.  The four exceptions pertain to a pending asbestos case against American Colloid Company, and three for which no period of alleged exposure has been stated by plaintiffs.  Our experience has been that the Company is not liable to plaintiffs in any of these lawsuits and the Company does not expect to pay any settlements or jury verdicts in these lawsuits.

Environmental Matters

On April 9, 2003, the Connecticut Department of Environmental Protection issued an administrative consent order relating to our Canaan, Connecticut, plant where both our Refractories segment and Specialty Minerals segment have operations.  We agreed to the order, which includes provisions requiring investigation and remediation of contamination associated with historic use of polychlorinated biphenyls ("PCBs") and mercury at a portion of the site.  We have completed the required investigations and submitted several reports characterizing the contamination and assessing site-specific risks.  We are awaiting regulators’ approval of the risk assessment report, which will form the basis for a proposal by the Company concerning eventual remediation.

We believe that the most likely form of overall site remediation will be to leave the existing contamination in place (with some limited soil removal), encapsulate it, and monitor the effectiveness of the encapsulation.  We anticipate that a substantial portion of the remediation cost will be borne by the United States based on its involvement at the site from 1942 – 1964, as historic documentation indicates that PCBs and mercury were first used at the facility at a time of U.S. government ownership for production of materials needed by the military.  Pursuant to a Consent Decree entered on October 24, 2014, the United States paid the Company $2.3 million in the 4th quarter of 2014 to resolve the Company’s claim for response costs for investigation and initial remediation activities at this facility through October 24, 2014.  Contribution by the United States to any future costs of investigation or additional remediation has, by agreement, been left unresolved.  Though the cost of the likely remediation remains uncertain pending completion of the phased remediation decision process, we have estimated that the Company’s share of the cost of the encapsulation and limited soil removal described above would approximate $0.4 million, which has been accrued as of April 3, 2016.
 
The Company is evaluating options for upgrading the wastewater treatment facilities at its Adams, Massachusetts plant.  This work has been undertaken pursuant to an administrative Consent Order originally issued by the Massachusetts Department of Environmental Protection (“DEP”) on June 18, 2002.  This order was amended on June 1, 2009 and on June 2, 2010.  The amended Order includes the investigation by January 1, 2022 of options for ensuring that the facility's wastewater treatment ponds will not result in unpermitted discharge to groundwater.  Additional requirements of the amendment include the submittal by July 1, 2022 of a plan for closure of a historic lime solids disposal area.  Preliminary engineering reviews completed in 2005 indicate that the estimated cost of wastewater treatment upgrades to operate this facility beyond 2024 may be between $6 million and $8 million.  The Company estimates that the remaining remediation costs would approximate $0.4 million, which has been accrued as of April 3, 2016.

The Company and its subsidiaries are not party to any other material pending legal proceedings, other than routine litigation incidental to their businesses.
XML 30 R17.htm IDEA: XBRL DOCUMENT v3.4.0.3
Non-controlling interests
3 Months Ended
Apr. 03, 2016
Non-controlling interests [Abstract]  
Non-controlling interests
Note 12.Non-controlling interests

The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests:

  
Equity Attributable to MTI
    
  
 
 
Common
Stock
  
 
Additional
Paid-in
Capital
  
 
 
Retained
Earnings
  
Accumulated
Other
Comprehensive
Income (Loss)
  
 
 
Treasury
Stock
  
 
 
Non-controlling
Interests
  
 
 
 
Total
 
  
(millions of dollars)
 
Balance as of December 31, 2015
 
$
4.8
  
$
387.6
  
$
1,292.7
  
$
(180.9
)
 
$
(593.7
)
 
$
27.2
  
$
937.7
 
                             
Net income
  
-
   
-
   
33.9
   
-
   
-
   
0.9
   
34.8
 
Other comprehensive income (loss)
  
-
   
-
   
-
   
11.0
   
-
   
0.2
   
11.2
 
Dividends declared
  
-
   
-
   
(1.7
)
  
-
   
-
   
-
   
(1.7
)
Dividends to non-controlling interest
  
-
   
-
   
-
   
-
   
-
   
(0.1
)
  
(0.1
)
Purchase of treasury stock
  
-
   
-
   
-
   
-
   
(2.3
)
  
-
   
(2.3
)
Issuance of shares pursuant to employee stock compensation plans
  
-
   
0.5
   
-
   
-
   
-
   
-
   
0.5
 
Income tax benefit arising from employee stock compensation plans
  
-
   
(0.6
)
  
-
   
-
   
-
   
-
   
(0.6
)
Stock based compensation
  
-
   
(0.1
)
  
-
   
-
   
-
   
-
   
(0.1
)
Balance as of April 3, 2016
 
$
4.8
  
$
387.4
  
$
1,324.9
  
$
(169.9
)
 
$
(596.0
)
 
$
28.2
  
$
979.4
 

The income attributable to non-controlling interests for the three-month periods ended April 3, 2016 and March 29, 2015 was from continuing operations.  The remainder of income was attributable to MTI.
XML 31 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Related Information
3 Months Ended
Apr. 03, 2016
Segment and Related Information [Abstract]  
Segment and Related Information
Note 13.Segment and Related Information
 
The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services.  See Note 1 to the Condensed Consolidated Financial Statements.  Segment information is as follows:
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Net Sales
      
Specialty Minerals
 
$
155.6
  
$
154.0
 
Refractories
  
69.2
   
73.9
 
Performance Materials
  
119.0
   
127.9
 
Construction Technologies
  
40.6
   
38.9
 
Energy Services
  
25.8
   
58.6
 
Total
 
$
410.2
  
$
453.3
 
         
Income from Operations
        
Specialty Minerals
 
$
25.7
  
$
23.1
 
Refractories
  
6.8
   
8.3
 
Performance Materials
  
23.8
   
23.8
 
Construction Technologies
  
4.4
   
4.1
 
Energy Services
  
(0.1
)
  
5.8
 
Total
 
$
60.6
  
$
65.1
 

        A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows:

  
Income from operations before
 provision for taxes on income
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
 
(millions of dollars)
 
Income from operations for reportable segments
 
$
60.6
  
$
65.1
 
Acquisition Related Transaction and Integration Costs
  
(1.6
)
  
(3.4
)
Unallocated corporate expenses
  
(1.4
)
  
(1.8
)
Consolidated income from operations
  
57.6
   
59.9
 
Non-operating deductions, net
  
(12.4
)
  
(12.2
)
         
Income from continuing operations before provision for taxes on income
 
$
45.2
  
$
47.7
 
 
The Company's sales by product category are as follows:

  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Paper PCC
 
$
103.2
  
$
105.2
 
Specialty PCC
  
16.7
   
16.5
 
Talc
  
15.0
   
13.8
 
Ground Calcium Carbonate
  
20.7
   
18.5
 
Refractory Products
  
53.4
   
58.3
 
Metallurgical Products
  
15.8
   
15.6
 
Metalcasting
  
60.0
   
65.2
 
Household, Personal Care and Specialty Products
  
45.3
   
41.8
 
Basic Minerals and Other Products
  
13.7
   
20.9
 
Environmental Products
  
13.4
   
11.4
 
Building Materials and Other Products
  
27.2
   
27.5
 
Energy Services
  
25.8
   
58.6
 
Total
 
$
410.2
  
$
453.3
 
XML 32 R19.htm IDEA: XBRL DOCUMENT v3.4.0.3
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
3 Months Ended
Apr. 03, 2016
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]  
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we”, or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted.  Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included.  The results for the three-month periods ended April 3, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.
Use of Estimates
Use of Estimates

 The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.  Significant estimates include those related to revenue recognition, valuation of accounts receivable, valuation of inventories, valuation of long-lived assets, goodwill and other intangible assets, pension plan assumptions, valuation of product liability and asset retirement obligation, income tax, income tax valuation allowances, and litigation and environmental liabilities.  Actual results could differ from those estimates.
Recently Issued Accounting Standards
Recently Issued Accounting Standards
 
        Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification.  The Company considers the applicability and impact of all ASUs.  ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
 
Revenue from Contracts with Customers

        In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for the interim and annual periods beginning on or after December 15, 2017. The guidance permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.  The Company expects to complete this analysis by the fourth quarter of 2016.

Inventory – Simplifying the Measurement of Inventory

In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” Under this accounting guidance, inventory will be measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU No. 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017 with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases”, which requires lessees to recognize most leases on-balance sheet, thereby increasing their reported assets and liabilities, in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. ASU 2016-02 is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities.  The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures; however, the Company does not believe the adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Investments – Equity Method and Joint Ventures

In March 2016, the FASB issued ASU 2016-07, “Simplifying the Transition to the Equity Method of Accounting”, which eliminates the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting.  ASU 2016-07 is effective for all entities for interim and annual periods in fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements.

Stock Compensation – Improvements to Employee Share-Based Payment Accounting

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which is intended to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient – expected term (nonpublic only); and (7) intrinsic value (nonpublic only).  The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact of this ASU on the Company’s consolidated financial statements and related disclosures.
XML 33 R20.htm IDEA: XBRL DOCUMENT v3.4.0.3
Earnings Per Share (EPS) (Tables)
3 Months Ended
Apr. 03, 2016
Earnings Per Share (EPS) [Abstract]  
Schedule of basic and diluted earnings per share
The following table sets forth the computation of basic and diluted earnings per share:

  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(in millions, except per share data)
 
       
Net income attributable to MTI
 
$
33.9
  
$
35.1
 
         
Weighted average shares outstanding
  
34.8
   
34.7
 
Dilutive effect of stock options and stock units
  
0.1
   
0.2
 
Weighted average shares outstanding, adjusted
  
34.9
   
34.9
 
         
Basic earnings (Loss) per share attributable to MTI
 
$
0.97
  
$
1.01
 
         
Diluted earnings (Loss) per share attributable to MTI
 
$
0.97
  
$
1.01
 
XML 34 R21.htm IDEA: XBRL DOCUMENT v3.4.0.3
Restructuring Charges (Tables)
3 Months Ended
Apr. 03, 2016
Restructuring Charges [Abstract]  
Reconciliation of restructuring liability
The following table is a reconciliation of our restructuring liability balance as of April 3, 2016:

  
(millions of dollars)
 
Restructuring liability, December 31, 2015
 
$
7.9
 
Additional provisions
  
0.9
 
Cash payments
  
(2.7
)
Restructuring liability,  April 3, 2016
 
$
6.1
 
XML 35 R22.htm IDEA: XBRL DOCUMENT v3.4.0.3
Inventories (Tables)
3 Months Ended
Apr. 03, 2016
Inventories [Abstract]  
Inventories by major category
The following is a summary of inventories by major category:

  
Apr. 3,
2016
  
Dec. 31,
2015
 
  
(millions of dollars)
 
Raw materials
 
$
73.7
  
$
73.4
 
Work-in-process
  
5.4
   
5.4
 
Finished goods
  
88.2
   
86.1
 
Packaging and supplies
  
29.9
   
30.0
 
Total inventories
 
$
197.2
  
$
194.9
 
XML 36 R23.htm IDEA: XBRL DOCUMENT v3.4.0.3
Goodwill and Other Intangible Assets (Tables)
3 Months Ended
Apr. 03, 2016
Goodwill and Other Intangible Assets [Abstract]  
Acquired intangible assets subject to amortization
Acquired intangible assets subject to amortization as of April 3, 2016 and December 31, 2015 were as follows:

 
Apr. 3, 2016
  
Dec. 31, 2015
 
  
Gross
Carrying
Amount
  
 
Accumulated
Amortization
  
Gross
Carrying
Amount
  
 
Accumulated
Amortization
 
  
(millions of dollars)
 
Tradenames
 
$
199.8
  
$
10.8
  
$
199.8
  
$
9.3
 
Technology
  
18.8
   
2.8
   
18.8
   
2.5
 
Patents and trademarks
  
6.4
   
4.5
   
6.4
   
4.4
 
Customer relationships
  
4.5
   
0.8
   
4.5
   
0.6
 
  
$
229.5
  
$
18.9
  
$
229.5
  
$
16.8
 
XML 37 R24.htm IDEA: XBRL DOCUMENT v3.4.0.3
Long-Term Debt and Commitments (Tables)
3 Months Ended
Apr. 03, 2016
Long-Term Debt and Commitments [Abstract]  
Summary of long term debt
The following is a summary of long-term debt:
 
  
Apr. 3,
2016
  
Dec. 31,
2015
 
  
(millions of dollars)
 
Term Loan Facility due May 9, 2021, net of unamortized discount  and deferred financing costs of $30.3 and $30.9, respectively
 
$
1,207.7
  
$
1,246.4
 
         
China Loan Facilities
  
13.2
   
12.0
 
         
Total
 
$
1,220.9
  
$
1,258.4
 
         
Less: Current maturities
  
3.2
   
3.1
 
Long-term debt
 
$
1,217.7
  
$
1,255.3
 
XML 38 R25.htm IDEA: XBRL DOCUMENT v3.4.0.3
Benefit Plans (Tables)
3 Months Ended
Apr. 03, 2016
Benefit Plans [Abstract]  
Components of net periodic benefit cost
Components of Net Periodic Benefit Cost

  
Pension Benefits
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Service cost
 
$
2.3
  
$
2.6
 
Interest cost
  
3.4
   
3.9
 
Expected return on plan assets
  
(4.6
)
  
(5.1
)
Amortization:
        
Prior service cost
  
0.2
   
0.3
 
Recognized net actuarial loss
  
2.6
   
2.8
 
Net periodic benefit cost
 
$
3.9
  
$
4.5
 

  Other Benefits 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Service cost
 
$
0.1
  
$
0.1
 
Interest cost
  
0.1
   
0.1
 
Amortization:
        
Prior service cost
  
(0.8
)
  
(0.8
)
Recognized net actuarial (gain)/loss
      
-
 
Net periodic benefit cost
 
$
(0.6
)
 
$
(0.6
)
XML 39 R26.htm IDEA: XBRL DOCUMENT v3.4.0.3
Comprehensive Income (Tables)
3 Months Ended
Apr. 03, 2016
Comprehensive Income [Abstract]  
Reclassifications out of accumulated other comprehensive income, net of related tax
The following table summarizes the amounts reclassified out of accumulated other comprehensive income (loss) attributable to the Company:

 
Three Months Ended
 
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)
 
Apr. 3,
2016
  
Mar. 29,
2015
 
 
(millions of dollars)
 
Amortization of pension items:
      
Pre-tax amount
 
$
2.0
  
$
2.3
 
Tax
  
(0.7
)
  
(0.9
)
Net of tax
 
$
1.3
  
$
1.4
 
Accumulated other comprehensive income, net of related tax, attributable to MTI
The major components of accumulated other comprehensive income, net of related tax, attributable to MTI are as follows:

  
Foreign Currency
 Translation
 Adjustment
  
Unrecognized
Pension Costs
  
Net Gain on
 Cash Flow
 Hedges
  
Total
 
  
(millions of dollars)
 
             
Balance as of December 31, 2015
 
$
(108.7
)
 
$
(74.8
)
 
$
2.6
  
$
(180.9
)
                 
Other comprehensive income (loss) before reclassifications
  
9.7
   
-
   
-
   
9.7
 
Amounts reclassified from AOCI
  
-
   
1.3
   
-
   
1.3
 
Net current period other comprehensive income (loss)
  
9.7
   
1.3
   
-
   
11.0
 
Balance as of April 3, 2016
 
$
(99.0
)
 
$
(73.5
)
 
$
2.6
  
$
(169.9
)
XML 40 R27.htm IDEA: XBRL DOCUMENT v3.4.0.3
Accounting for Asset Retirement Obligations (Tables)
3 Months Ended
Apr. 03, 2016
Accounting for Asset Retirement Obligations [Abstract]  
Reconciliation of asset retirement obligations
The following is a reconciliation of asset retirement obligations as of April 3, 2016:

  
(millions of dollars)
 
Asset retirement liability, December 31, 2015
 
$
21.4
 
Accretion expense
  
0.4
 
Payments
  
(0.2
)
Foreign currency translation
  
0.2
 
Asset retirement liability,  April 3, 2016
 
$
21.8
 
XML 41 R28.htm IDEA: XBRL DOCUMENT v3.4.0.3
Non-controlling interests (Tables)
3 Months Ended
Apr. 03, 2016
Non-controlling interests [Abstract]  
Total equity, equity attributable to MTI, and equity attributable to noncontrolling interests
The following is a reconciliation of beginning and ending total equity, equity attributable to MTI, and equity attributable to non-controlling interests:

  
Equity Attributable to MTI
    
  
 
 
Common
Stock
  
 
Additional
Paid-in
Capital
  
 
 
Retained
Earnings
  
Accumulated
Other
Comprehensive
Income (Loss)
  
 
 
Treasury
Stock
  
 
 
Non-controlling
Interests
  
 
 
 
Total
 
  
(millions of dollars)
 
Balance as of December 31, 2015
 
$
4.8
  
$
387.6
  
$
1,292.7
  
$
(180.9
)
 
$
(593.7
)
 
$
27.2
  
$
937.7
 
                             
Net income
  
-
   
-
   
33.9
   
-
   
-
   
0.9
   
34.8
 
Other comprehensive income (loss)
  
-
   
-
   
-
   
11.0
   
-
   
0.2
   
11.2
 
Dividends declared
  
-
   
-
   
(1.7
)
  
-
   
-
   
-
   
(1.7
)
Dividends to non-controlling interest
  
-
   
-
   
-
   
-
   
-
   
(0.1
)
  
(0.1
)
Purchase of treasury stock
  
-
   
-
   
-
   
-
   
(2.3
)
  
-
   
(2.3
)
Issuance of shares pursuant to employee stock compensation plans
  
-
   
0.5
   
-
   
-
   
-
   
-
   
0.5
 
Income tax benefit arising from employee stock compensation plans
  
-
   
(0.6
)
  
-
   
-
   
-
   
-
   
(0.6
)
Stock based compensation
  
-
   
(0.1
)
  
-
   
-
   
-
   
-
   
(0.1
)
Balance as of April 3, 2016
 
$
4.8
  
$
387.4
  
$
1,324.9
  
$
(169.9
)
 
$
(596.0
)
 
$
28.2
  
$
979.4
 
XML 42 R29.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Related Information (Tables)
3 Months Ended
Apr. 03, 2016
Segment and Related Information [Abstract]  
Segment information
Segment information is as follows:
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Net Sales
      
Specialty Minerals
 
$
155.6
  
$
154.0
 
Refractories
  
69.2
   
73.9
 
Performance Materials
  
119.0
   
127.9
 
Construction Technologies
  
40.6
   
38.9
 
Energy Services
  
25.8
   
58.6
 
Total
 
$
410.2
  
$
453.3
 
         
Income from Operations
        
Specialty Minerals
 
$
25.7
  
$
23.1
 
Refractories
  
6.8
   
8.3
 
Performance Materials
  
23.8
   
23.8
 
Construction Technologies
  
4.4
   
4.1
 
Energy Services
  
(0.1
)
  
5.8
 
Total
 
$
60.6
  
$
65.1
 
Reconciliation of income from operations before provision for taxes on income
A reconciliation of the totals reported for the operating segments to the applicable line items in the condensed consolidated financial statements is as follows:

  
Income from operations before
 provision for taxes on income
 
  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
 
(millions of dollars)
 
Income from operations for reportable segments
 
$
60.6
  
$
65.1
 
Acquisition Related Transaction and Integration Costs
  
(1.6
)
  
(3.4
)
Unallocated corporate expenses
  
(1.4
)
  
(1.8
)
Consolidated income from operations
  
57.6
   
59.9
 
Non-operating deductions, net
  
(12.4
)
  
(12.2
)
         
Income from continuing operations before provision for taxes on income
 
$
45.2
  
$
47.7
 
Sales by product category
The Company's sales by product category are as follows:

  
Three Months Ended
 
  
Apr. 3,
2016
  
Mar. 29,
2015
 
  
(millions of dollars)
 
Paper PCC
 
$
103.2
  
$
105.2
 
Specialty PCC
  
16.7
   
16.5
 
Talc
  
15.0
   
13.8
 
Ground Calcium Carbonate
  
20.7
   
18.5
 
Refractory Products
  
53.4
   
58.3
 
Metallurgical Products
  
15.8
   
15.6
 
Metalcasting
  
60.0
   
65.2
 
Household, Personal Care and Specialty Products
  
45.3
   
41.8
 
Basic Minerals and Other Products
  
13.7
   
20.9
 
Environmental Products
  
13.4
   
11.4
 
Building Materials and Other Products
  
27.2
   
27.5
 
Energy Services
  
25.8
   
58.6
 
Total
 
$
410.2
  
$
453.3
 
XML 43 R30.htm IDEA: XBRL DOCUMENT v3.4.0.3
Basis of Presentation and Summary of Significant Accounting Policies (Details)
3 Months Ended
Apr. 03, 2016
Segment
Facility
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]  
Number of reportable segments | Segment 5
Minimum number of mining or production facilities | Facility 25
XML 44 R31.htm IDEA: XBRL DOCUMENT v3.4.0.3
Earnings Per Share (EPS) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Earnings Per Share (EPS) [Abstract]    
Net income attributable to MTI $ 33.9 $ 35.1
Weighted average shares outstanding (in shares) 34,800,000 34,700,000
Dilutive effect of stock options and stock units (in shares) 100,000 200,000
Weighted average shares outstanding, adjusted (in shares) 34,900,000 34,900,000
Basic earnings (Loss) per share attributable to MTI (in dollars per share) $ 0.97 $ 1.01
Diluted earnings (Loss) per share attributable to MTI (in dollars per share) $ 0.97 $ 1.01
Stock Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities not included in the weighted average commons shares outstanding calculation (in shares) 375,644 245,128
XML 45 R32.htm IDEA: XBRL DOCUMENT v3.4.0.3
Restructuring Charges (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Dec. 31, 2014
Restructuring Charges [Abstract]    
Reduction in workforce   10.00%
Restructuring Reserve [Roll Forward]    
Restructuring liability, beginning of period $ 7.9  
Additional provisions 0.9  
Cash payments (2.7)  
Restructuring liability, end of period $ 6.1  
XML 46 R33.htm IDEA: XBRL DOCUMENT v3.4.0.3
Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Income Taxes [Abstract]    
Amount of unrecognized tax benefits $ 4.2  
Unrecognized tax benefits that would impact effective tax rate 1.6  
Unrecognized tax benefits, net increase in penalties and interest expense 0.1  
Unrecognized tax benefits, accrued interest and penalties 1.0  
Provision for taxes on income $ 10.7 $ 12.1
Effective income tax rate 23.70% 25.40%
XML 47 R34.htm IDEA: XBRL DOCUMENT v3.4.0.3
Inventories (Details) - USD ($)
$ in Millions
Apr. 03, 2016
Dec. 31, 2015
Inventories [Abstract]    
Raw materials $ 73.7 $ 73.4
Work-in-process 5.4 5.4
Finished goods 88.2 86.1
Packaging and supplies 29.9 30.0
Total inventories $ 197.2 [1] $ 194.9 [2]
[1] Unaudited
[2] Condensed from audited financial statements
XML 48 R35.htm IDEA: XBRL DOCUMENT v3.4.0.3
Goodwill and Other Intangible Assets (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Dec. 31, 2015
Goodwill and Other Intangible Assets [Abstract]    
Goodwill $ 781.3 [1] $ 781.2 [2]
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 229.5 229.5
Accumulated Amortization 18.9 16.8
Tradenames [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 199.8 199.8
Accumulated Amortization 10.8 9.3
Technology [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 18.8 18.8
Accumulated Amortization 2.8 2.5
Patents and Trademarks [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 6.4 6.4
Accumulated Amortization 4.5 4.4
Customer Relationships [Member]    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 4.5 4.5
Accumulated Amortization $ 0.8 $ 0.6
Acquired Finite-Lived Intangible Assets [Member]    
Finite-Lived Intangible Assets [Line Items]    
Weighted average amortization period for acquired intangible assets subject to amortization 28 years  
Estimated amortization expense, 2016 $ 8.1  
Estimated amortization expense, 2017 7.9  
Estimated amortization expense, 2018 7.9  
Estimated amortization expense, 2019 7.9  
Estimated amortization expense, 2020 7.9  
Estimated amortization expense, thereafter $ 172.9  
[1] Unaudited
[2] Condensed from audited financial statements
XML 49 R36.htm IDEA: XBRL DOCUMENT v3.4.0.3
Long-Term Debt and Commitments (Details)
¥ in Millions, $ in Millions
3 Months Ended
Apr. 03, 2016
USD ($)
Loan
Mar. 29, 2015
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2015
CNY (¥)
Jun. 23, 2015
USD ($)
May. 09, 2014
USD ($)
Debt Instrument [Line Items]            
Debt $ 1,220.9   $ 1,258.4      
Less: Current maturities 3.2 [1]   3.1 [2]      
Long-term debt 1,217.7 [1]   1,255.3 [2]      
Maximum borrowing capacity 37.2          
Repayments of long-term debt 40.1 $ 40.0        
Uncommitted short-term bank credit lines, amount outstanding $ 5.8          
Minimum [Member]            
Debt Instrument [Line Items]            
Net leverage ratio 3.50          
Maximum [Member]            
Debt Instrument [Line Items]            
Net leverage ratio 5.25          
Term Loan Facility due May 9, 2021, net of unamortized discount and deferred financing costs of $30.3 and $30.9, respectively [Member]            
Debt Instrument [Line Items]            
Debt $ 1,207.7   1,246.4      
Long-term debt, unamortized discount and deferred financing costs $ 30.3   30.9      
Maturity date May 09, 2021          
Long-term debt, gross $ 0.0         $ 1,560.0
Maximum borrowing capacity         $ 1,378.0  
Repayments of long-term debt $ 40.0          
Term Loan Facility due May 9, 2021, net of unamortized discount and deferred financing costs of $30.3 and $30.9, respectively [Member] | LIBOR [Member] | Minimum [Member]            
Debt Instrument [Line Items]            
Facility variable interest rate 0.75%          
Term Loan Facility due May 9, 2021, net of unamortized discount and deferred financing costs of $30.3 and $30.9, respectively [Member] | LIBOR [Member] | Maximum [Member]            
Debt Instrument [Line Items]            
Facility variable interest rate 3.00%          
Term Loan Facility due May 9, 2021, net of unamortized discount and deferred financing costs of $30.3 and $30.9, respectively [Member] | Floating Rate Tranche [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity         1,078.0  
Amortization rate on notes 1.00%          
Term Loan Facility due May 9, 2021, net of unamortized discount and deferred financing costs of $30.3 and $30.9, respectively [Member] | Fixed Rate Tranche [Member]            
Debt Instrument [Line Items]            
Maximum borrowing capacity         $ 300.0  
Facility variable interest rate 4.75%          
China Loan Facilities [Member]            
Debt Instrument [Line Items]            
Debt $ 13.2   12.0      
Maturity date Dec. 31, 2019          
Debt instrument outstanding $ 13.2          
Maximum borrowing capacity     $ 1.8 ¥ 94.8    
Number of committed loan facilities | Loan 4          
Repayments of long-term debt $ 0.1          
Revolving Credit Facility [Member]            
Debt Instrument [Line Items]            
Maturity date May 09, 2019          
Maximum borrowing capacity           $ 200.0
Basis points related to debt 0.25%          
Letters of credit outstanding $ 12.2          
Revolving Credit Facility [Member] | LIBOR [Member]            
Debt Instrument [Line Items]            
Facility variable interest rate 1.75%          
Letter of Credit [Member]            
Debt Instrument [Line Items]            
Letters of credit outstanding $ 15.0          
[1] Unaudited
[2] Condensed from audited financial statements
XML 50 R37.htm IDEA: XBRL DOCUMENT v3.4.0.3
Benefit Plans (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Employer Contributions [Abstract]    
Maximum percentage of total benefit obligation for international pension plans 25.00%  
Pension Benefits [Member]    
Components of net periodic benefit cost [Abstract]    
Service cost $ 2.3 $ 2.6
Interest cost 3.4 3.9
Expected return on plan assets (4.6) (5.1)
Amortization [Abstract]    
Prior service cost 0.2 0.3
Recognized net actuarial (gain)/loss 2.6 2.8
Net periodic benefit cost 3.9 4.5
Employer Contributions [Abstract]    
Expected company contribution to its benefit plans 11.0  
Company contribution to benefit plans 0.8  
Other Benefits [Member]    
Components of net periodic benefit cost [Abstract]    
Service cost 0.1 0.1
Interest cost 0.1 0.1
Amortization [Abstract]    
Prior service cost (0.8) (0.8)
Recognized net actuarial (gain)/loss 0.0 0.0
Net periodic benefit cost (0.6) $ (0.6)
Employer Contributions [Abstract]    
Expected company contribution to its benefit plans 0.6  
Company contribution to benefit plans $ 0.1  
XML 51 R38.htm IDEA: XBRL DOCUMENT v3.4.0.3
Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net of tax $ (1.3)  
Pension Costs [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Net of tax (1.3)  
Pension Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Pre-tax amount 2.0 $ 2.3
Tax (0.7) (0.9)
Net of tax $ 1.3 $ 1.4
XML 52 R39.htm IDEA: XBRL DOCUMENT v3.4.0.3
Comprehensive Income, Accumulated Other Comprehensive Income, Net of Related Tax (Details)
$ in Millions
3 Months Ended
Apr. 03, 2016
USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Balance at beginning of period $ (180.9) [1]
Other comprehensive income (loss) before reclassifications 9.7
Amounts reclassified from AOCI 1.3
Net current period other comprehensive income (loss) 11.0
Balance at end of period (169.9) [2]
Foreign Currency Translation Adjustment [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Balance at beginning of period (108.7)
Other comprehensive income (loss) before reclassifications 9.7
Amounts reclassified from AOCI 0.0
Net current period other comprehensive income (loss) 9.7
Balance at end of period (99.0)
Unrecognized Pension Costs [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Balance at beginning of period (74.8)
Other comprehensive income (loss) before reclassifications 0.0
Amounts reclassified from AOCI 1.3
Net current period other comprehensive income (loss) 1.3
Balance at end of period (73.5)
Net Gain on Cash Flow Hedges [Member]  
Accumulated Other Comprehensive Income (Loss) [Line Items]  
Balance at beginning of period 2.6
Other comprehensive income (loss) before reclassifications 0.0
Amounts reclassified from AOCI 0.0
Net current period other comprehensive income (loss) 0.0
Balance at end of period $ 2.6
[1] Condensed from audited financial statements
[2] Unaudited
XML 53 R40.htm IDEA: XBRL DOCUMENT v3.4.0.3
Accounting for Asset Retirement Obligations (Details)
$ in Millions
3 Months Ended
Apr. 03, 2016
USD ($)
Accounting for Asset Retirement Obligations [Abstract]  
Asset retirement liability, beginning balance $ 21.4
Accretion expense 0.4
Payments (0.2)
Foreign currency translation 0.2
Asset retirement liability, ending balance 21.8
Asset retirement obligation current portion 1.9
Asset retirement obligation noncurrent portion $ 19.9
XML 54 R41.htm IDEA: XBRL DOCUMENT v3.4.0.3
Contingencies (Details)
$ in Millions
3 Months Ended
Apr. 03, 2016
USD ($)
Contract
Load
Case
Plaintiff
Oct. 24, 2014
USD ($)
Dec. 31, 2009
Loss Contingencies [Line Items]      
Number of contracts entered | Contract 2    
Number of ship loads | Load 60    
Default arbitration award | $ $ 70.0    
Site Contingency [Line Items]      
Consent decree paid by US government | $   $ 2.3  
AMCOL International Corporation [Member]      
Loss Contingencies [Line Items]      
Ownership interest 19.00%   20.00%
Administrative Consent Order for Contamination Associated with Historic Use of PCBs [Member]      
Site Contingency [Line Items]      
Location of plant Canaan, Connecticut    
Estimated accrued remediation cost | $ $ 0.4    
Administrative Consent Order for Installation of Groundwater Contamination System [Member]      
Site Contingency [Line Items]      
Location of plant Adams, Massachusetts plant    
Estimated accrued remediation cost | $ $ 0.4    
Estimated cost of wastewater treatment upgrades, lower range | $ 6.0    
Estimated cost of wastewater treatment upgrades, upper range | $ $ 8.0    
Silica Cases [Member]      
Loss Contingencies [Line Items]      
Number of pending cases 5    
Number of cases involved in claim 1    
Number of plaintiffs | Plaintiff 25    
Number of cases dismissed to date 1,490    
Number of new cases filed during the quarter 0    
Number of lawsuits settled 1    
Silica Cases [Member] | West Virginia [Member]      
Loss Contingencies [Line Items]      
Number of cases dismissed to date 25    
Asbestos Cases [Member]      
Loss Contingencies [Line Items]      
Number of pending cases 15    
Number of cases dismissed to date 47    
Number of new cases filed during the quarter 2    
Number of lawsuits settled 0    
Number of allege liability 4    
Number of cases with no alleged exposure 3    
Asbestos Cases [Member] | West Virginia [Member]      
Loss Contingencies [Line Items]      
Number of cases dismissed to date 1    
XML 55 R42.htm IDEA: XBRL DOCUMENT v3.4.0.3
Non-controlling interests (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Noncontrolling Interest [Line Items]    
Balance [1] $ 937.7  
Net income 34.8 $ 36.0
Other comprehensive income (loss) 11.2 $ (26.4)
Dividends declared (1.7)  
Dividends to non-controlling interest (0.1)  
Purchase of treasury stock (2.3)  
Issuance of shares pursuant to employee stock compensation plans 0.5  
Income tax benefit arising from employee stock compensation plans (0.6)  
Stock based compensation (0.1)  
Balance [2] 979.4  
Common Stock [Member]    
Noncontrolling Interest [Line Items]    
Balance 4.8  
Net income 0.0  
Other comprehensive income (loss) 0.0  
Dividends declared 0.0  
Dividends to non-controlling interest 0.0  
Purchase of treasury stock 0.0  
Issuance of shares pursuant to employee stock compensation plans 0.0  
Income tax benefit arising from employee stock compensation plans 0.0  
Stock based compensation 0.0  
Balance 4.8  
Additional Paid-in Capital [Member]    
Noncontrolling Interest [Line Items]    
Balance 387.6  
Net income 0.0  
Other comprehensive income (loss) 0.0  
Dividends declared 0.0  
Dividends to non-controlling interest 0.0  
Purchase of treasury stock 0.0  
Issuance of shares pursuant to employee stock compensation plans 0.5  
Income tax benefit arising from employee stock compensation plans (0.6)  
Stock based compensation (0.1)  
Balance 387.4  
Retained Earnings [Member]    
Noncontrolling Interest [Line Items]    
Balance 1,292.7  
Net income 33.9  
Other comprehensive income (loss) 0.0  
Dividends declared (1.7)  
Dividends to non-controlling interest 0.0  
Purchase of treasury stock 0.0  
Issuance of shares pursuant to employee stock compensation plans 0.0  
Income tax benefit arising from employee stock compensation plans 0.0  
Stock based compensation 0.0  
Balance 1,324.9  
Accumulated Other Comprehensive Income (Loss) [Member]    
Noncontrolling Interest [Line Items]    
Balance (180.9)  
Net income 0.0  
Other comprehensive income (loss) 11.0  
Dividends declared 0.0  
Dividends to non-controlling interest 0.0  
Purchase of treasury stock 0.0  
Issuance of shares pursuant to employee stock compensation plans 0.0  
Income tax benefit arising from employee stock compensation plans 0.0  
Stock based compensation 0.0  
Balance (169.9)  
Treasury Stock [Member]    
Noncontrolling Interest [Line Items]    
Balance (593.7)  
Net income 0.0  
Other comprehensive income (loss) 0.0  
Dividends declared 0.0  
Dividends to non-controlling interest 0.0  
Purchase of treasury stock (2.3)  
Issuance of shares pursuant to employee stock compensation plans 0.0  
Income tax benefit arising from employee stock compensation plans 0.0  
Stock based compensation 0.0  
Balance (596.0)  
Non-controlling Interests [Member]    
Noncontrolling Interest [Line Items]    
Balance 27.2  
Net income 0.9  
Other comprehensive income (loss) 0.2  
Dividends declared 0.0  
Dividends to non-controlling interest (0.1)  
Purchase of treasury stock 0.0  
Issuance of shares pursuant to employee stock compensation plans 0.0  
Income tax benefit arising from employee stock compensation plans 0.0  
Stock based compensation 0.0  
Balance $ 28.2  
[1] Condensed from audited financial statements
[2] Unaudited
XML 56 R43.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Related Information (Details)
$ in Millions
3 Months Ended
Apr. 03, 2016
USD ($)
Segment
Mar. 29, 2015
USD ($)
Segment Reporting Information [Line Items]    
Number of reportable segments | Segment 5  
Net Sales $ 410.2 $ 453.3
Income from Operations 57.6 59.9
Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 410.2 453.3
Income from Operations 60.6 65.1
Specialty Minerals [Member] | Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 155.6 154.0
Income from Operations 25.7 23.1
Refractories [Member] | Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 69.2 73.9
Income from Operations 6.8 8.3
Performance Materials [Member] | Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 119.0 127.9
Income from Operations 23.8 23.8
Construction Technologies [Member] | Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 40.6 38.9
Income from Operations 4.4 4.1
Energy Services [Member] | Reportable Segments [Member]    
Segment Reporting Information [Line Items]    
Net Sales 25.8 58.6
Income from Operations $ (0.1) $ 5.8
XML 57 R44.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Related Information, Reconciliation of Operating Income Before Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Income from operations before provision for taxes on income [Abstract]    
Acquisition Related Transaction and Integration Costs $ (1.6) $ (3.4)
Unallocated corporate expenses (1.4) (1.8)
Consolidated income from operations 57.6 59.9
Non-operating deductions, net (12.4) (12.2)
Income before provision for taxes and equity in earnings 45.2 47.7
Reportable Segments [Member]    
Income from operations before provision for taxes on income [Abstract]    
Consolidated income from operations $ 60.6 $ 65.1
XML 58 R45.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment and Related Information, Sales By Product Category (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2016
Mar. 29, 2015
Revenue from External Customer [Line Items]    
Net Sales $ 410.2 $ 453.3
Paper PCC [Member]    
Revenue from External Customer [Line Items]    
Net Sales 103.2 105.2
Specialty PCC [Member]    
Revenue from External Customer [Line Items]    
Net Sales 16.7 16.5
Talc [Member]    
Revenue from External Customer [Line Items]    
Net Sales 15.0 13.8
Ground Calcium Carbonate [Member]    
Revenue from External Customer [Line Items]    
Net Sales 20.7 18.5
Refractory Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 53.4 58.3
Metallurgical Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 15.8 15.6
Metalcasting [Member]    
Revenue from External Customer [Line Items]    
Net Sales 60.0 65.2
Household, Personal Care and Specialty Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 45.3 41.8
Basic Minerals and Other Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 13.7 20.9
Environmental Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 13.4 11.4
Building Materials and Other Products [Member]    
Revenue from External Customer [Line Items]    
Net Sales 27.2 27.5
Energy Services [Member]    
Revenue from External Customer [Line Items]    
Net Sales $ 25.8 $ 58.6
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