UNIVAR INC., 10-Q filed on 8/5/2019
Quarterly Report
v3.19.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2019
Jul. 25, 2019
Cover page.    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2019  
Document Transition Report false  
Entity File Number 001-37443  
Entity Registrant Name Univar Inc.  
Entity Address, Address Line One 3075 Highland Parkway, Suite 200  
Entity Address, City or Town  Downers Grove,  
Entity Incorporation, State or Country Code DE  
Entity Address, State or Province IL  
Entity Tax Identification Number 26-1251958  
Entity Address, Postal Zip Code 60515  
City Area Code 331  
Local Phone Number 777-6000  
Title of 12(b) Security Common Stock ($0.01 par value)  
Trading Symbol UNVR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   168,609,421
Amendment Flag false  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001494319  
Current Fiscal Year End Date --12-31  
v3.19.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6
Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5
Operating expenses:        
Warehousing, selling and administrative 280.8 240.9 534.2 481.9
Other operating expenses, net 63.8 11.0 228.6 24.6
Depreciation 39.7 30.9 72.9 62.3
Amortization 18.6 13.8 33.0 27.2
Total operating expenses 498.3 383.1 1,047.0 761.8
Operating income 79.0 117.4 26.7 225.3
Other (expense) income:        
Interest income 1.1 0.9 1.7 2.1
Interest expense (39.0) (32.9) (73.8) (69.0)
Loss on extinguishment of debt 0.0 0.0 (0.7) 0.0
Other (expense) income, net (5.6) (2.1) (11.7) 0.5
Total other expense (43.5) (34.1) (84.5) (66.4)
Income (loss) before income taxes 35.5 83.3 (57.8) 158.9
Income tax expense (benefit) from continuing operations 18.5 27.2 (4.8) 37.4
Net income (loss) from continuing operations 17.0 56.1 (53.0) 121.5
Net (loss) income from discontinued operations (0.7) 0.0 5.4 0.0
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5
Income (loss) per common share:        
Basic from continuing operations (in dollars per share) $ 0.10 $ 0.40 $ (0.33) $ 0.86
Basic from discontinued operations (in dollars per share) 0 0 0.03 0
Basic income (loss) per common share (in dollars per share) 0.10 0.40 (0.30) 0.86
Diluted from continuing operations (in dollars per share) 0.10 0.40 (0.33) 0.86
Diluted from discontinued operations (in dollars per share) 0 0 0.03 0
Diluted income (loss) per common share (in dollars per share) $ 0.10 $ 0.40 $ (0.30) $ 0.86
Weighted average common shares outstanding:        
Basic (in shares) 169.8 141.1 159.5 141.0
Diluted (in shares) 170.7 142.0 159.5 142.0
Outbound freight and handling        
Operating expenses:        
Outbound freight and handling $ 95.4 $ 86.5 $ 178.3 $ 165.8
v3.19.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Condensed Statement of Income Captions [Line Items]        
Net income (loss) $ 16.3 $ 56.1 $ (47.6) $ 121.5
Other comprehensive (loss) income, net of tax:        
Foreign currency translation 11.6 (55.8) 19.8 (63.0)
Pension and postretirement benefit adjustment 0.1 0.1 0.1 0.1
Derivative financial instruments (15.9) 0.3 (24.2) 9.4
Total other comprehensive loss, net of tax (4.2) (55.4) (7.5) (53.0)
Comprehensive income (loss) 12.1 0.7 (55.1) 68.5
Impact due to adoption of ASU 2018-02        
Other comprehensive (loss) income, net of tax:        
Impact due to adoption of ASUs [1] 0.0 0.0 (3.2) 0.0
Impact due to adoption of ASU 2017-12        
Other comprehensive (loss) income, net of tax:        
Impact due to adoption of ASUs [2] $ 0.0 $ 0.0 $ 0.0 $ 0.5
[1]
Adjusted due to the adoption of Accounting Standards Update (“ASU”) 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “Note 2: Significant accounting policies” for more information.
[2]
Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018.
v3.19.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 109.5 $ 121.6
Trade accounts receivable, net 1,544.4 1,094.7
Inventories 938.0 803.3
Prepaid expenses and other current assets 214.3 169.1
Total current assets 2,806.2 2,188.7
Property, plant and equipment, net 1,153.5 955.8
Goodwill 2,488.0 1,780.7
Intangible assets, net 381.0 238.1
Deferred tax assets 25.3 24.8
Other assets [1] 277.1 84.3
Total assets 7,131.1 5,272.4
Current liabilities:    
Short-term financing 3.2 8.1
Trade accounts payable 1,081.5 925.4
Current portion of long-term debt 19.0 21.7
Accrued compensation 86.6 93.6
Other accrued expenses 409.6 285.8
Total current liabilities 1,599.9 1,334.6
Long-term debt 3,117.1 2,350.4
Pension and other postretirement benefit liabilities 250.7 254.4
Deferred tax liabilities 118.8 42.9
Other long-term liabilities [1] 270.1 98.4
Total liabilities 5,356.6 4,080.7
Stockholders’ equity:    
Preferred stock, 200.0 million shares authorized at $0.01 par value with no shares issued or outstanding as of June 30, 2019 and December 31, 2018 0.0 0.0
Common stock, 2.0 billion shares authorized at $0.01 par value with 168.6 million and 141.7 million shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively 1.7 1.4
Additional paid-in capital 2,959.4 2,325.0
Accumulated deficit (805.9) (761.5)
Accumulated other comprehensive loss (380.7) (373.2)
Total stockholders’ equity 1,774.5 1,191.7
Total liabilities and stockholders’ equity $ 7,131.1 $ 5,272.4
[1]
Operating lease assets and operating lease liabilities are included in other assets and other long-term liabilities. Refer to “Note 18: Leasing” for more information.

v3.19.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized (in shares) 200,000,000 200,000,000
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, share issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares issued (in shares) 168,600,000 141,700,000
Common stock, shares outstanding (in shares) 168,600,000 141,700,000
v3.19.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Operating activities:    
Net income (loss) $ (47.6) $ 121.5
Adjustments to reconcile net (loss) income to net cash used by operating activities:    
Depreciation and amortization 105.9 89.5
Amortization of deferred financing fees and debt discount 4.8 3.9
Amortization of pension credit from accumulated other comprehensive loss 0.1 0.1
Loss on extinguishment of debt 0.7 0.0
Deferred income taxes (24.9) 5.0
Stock-based compensation expense 17.3 13.7
Other 3.0 1.1
Changes in operating assets and liabilities:    
Trade accounts receivable, net (153.8) (330.2)
Inventories 22.4 (51.6)
Prepaid expenses and other current assets (27.2) (25.1)
Trade accounts payable 10.4 206.5
Pensions and other postretirement benefit liabilities (12.7) (23.3)
Other, net (78.9) (60.1)
Net cash used by operating activities (180.5) (49.0)
Investing activities:    
Purchases of property, plant and equipment (45.4) (45.1)
Purchases of businesses, net of cash acquired (1,155.5) (20.4)
Proceeds from sale of property, plant and equipment 0.8 2.5
Proceeds from sale of business 640.0 0.0
Other (1.3) 0.0
Net cash used by investing activities (561.4) (63.0)
Financing activities:    
Proceeds from issuance of long-term debt 1,195.8 345.9
Payments on long-term debt and finance lease obligations (459.5) (553.5)
Short-term financing, net (6.9) (3.4)
Taxes paid related to net share settlements of stock-based compensation awards (2.8) (3.2)
Stock option exercises 5.7 1.1
Other 0.6 0.6
Net cash provided (used) by financing activities 732.9 (212.5)
Effect of exchange rate changes on cash and cash equivalents (3.1) (13.9)
Net decrease in cash and cash equivalents (12.1) (338.4)
Cash and cash equivalents at beginning of period 121.6 467.0
Cash and cash equivalents at end of period 109.5 128.6
Non-cash activities:    
Fair value of common stock issued for acquisition of business 649.3 0.0
Additions of property, plant and equipment included in trade accounts payable and other accrued expenses 6.3 4.6
Additions of property, plant and equipment under a finance lease obligation 2.9 10.5
Additions of assets under an operating lease obligation $ 8.9 $ 0.0
v3.19.2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Impact due to adoption of ASU [1] $ 0.8     $ 0.3 $ 0.5
Beginning balance (in shares) at Dec. 31, 2017   141.1      
Beginning balance at Dec. 31, 2017 1,090.1 $ 1.4 $ 2,301.3 (934.1) (278.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 121.5     121.5  
Foreign currency translation adjustment (63.0)       (63.0)
Pension and other postretirement benefits adjustment 0.1       0.1
Derivative financial instruments 9.4       9.4
Restricted stock units vested (in shares)   0.3      
Restricted stock units vested 0.0        
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)   (0.1)      
Tax withholdings related to net share settlements of stock-based compensation awards (3.2)   (3.2)    
Stock option exercises (in shares)   0.1      
Stock option exercises 1.1   1.1    
Employee stock purchase plan 0.5   0.5    
Stock-based compensation 13.7   13.7    
Ending balance (in shares) at Jun. 30, 2018   141.4      
Ending balance at Jun. 30, 2018 1,171.0 $ 1.4 2,313.4 (812.3) (331.5)
Beginning balance (in shares) at Mar. 31, 2018   141.3      
Beginning balance at Mar. 31, 2018 1,165.7 $ 1.4 2,308.8 (868.4) (276.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 56.1     56.1  
Foreign currency translation adjustment (55.8)       (55.8)
Pension and other postretirement benefits adjustment 0.1       0.1
Derivative financial instruments 0.3       0.3
Restricted stock units vested (in shares)   0.1      
Restricted stock units vested 0.0        
Tax withholdings related to net share settlements of stock-based compensation awards (0.5)   (0.5)    
Stock option exercises 0.3   0.3    
Employee stock purchase plan 0.5   0.5    
Stock-based compensation 4.3   4.3    
Ending balance (in shares) at Jun. 30, 2018   141.4      
Ending balance at Jun. 30, 2018 $ 1,171.0 $ 1.4 2,313.4 (812.3) (331.5)
Beginning balance (in shares) at Dec. 31, 2018 141.7 141.7      
Beginning balance at Dec. 31, 2018 $ 1,191.7 $ 1.4 2,325.0 (761.5) (373.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) (47.6)     (47.6)  
Foreign currency translation adjustment 19.8       19.8
Derivative financial instruments (24.2)       (24.2)
Common stock issued for the Nexeo acquisition (in shares)   27.9      
Common stock issued for the Nexeo acquisition $ 649.3 $ 0.3 649.0    
Stock Canceled During Period, Shares (1.5)        
Stock Canceled During The Period, Value $ (35.5)   (35.5)    
Restricted stock units vested (in shares)   0.3      
Restricted stock units vested 0.0        
Tax withholdings related to net share settlements of stock-based compensation awards (in shares)   (0.1)      
Tax withholdings related to net share settlements of stock-based compensation awards (2.8)   (2.8)    
Stock option exercises (in shares)   0.3      
Stock option exercises 5.7   5.7    
Employee stock purchase plan 0.6   0.6    
Stock-based compensation 17.3   17.3    
Other $ 0.1   0.1    
Ending balance (in shares) at Jun. 30, 2019 168.6 168.6      
Ending balance at Jun. 30, 2019 $ 1,774.5 $ 1.7 2,959.4 (805.9) (380.7)
Beginning balance (in shares) at Mar. 31, 2019   169.7      
Beginning balance at Mar. 31, 2019 1,781.0 $ 1.7 2,978.0 (822.2) (376.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 16.3     16.3  
Foreign currency translation adjustment 11.6       11.6
Derivative financial instruments $ (15.9)       (15.9)
Stock Canceled During Period, Shares (1.5)        
Stock Canceled During The Period, Value $ (35.5)   (35.5)    
Restricted stock units vested (in shares)   0.1      
Restricted stock units vested 0.0        
Tax withholdings related to net share settlements of stock-based compensation awards $ (0.8)   (0.8)    
Stock option exercises (in shares) 0.3        
Stock option exercises $ 5.7   5.7    
Employee stock purchase plan 0.6   0.6    
Stock-based compensation 11.3   11.3    
Other $ 0.1   0.1    
Ending balance (in shares) at Jun. 30, 2019 168.6 168.6      
Ending balance at Jun. 30, 2019 $ 1,774.5 $ 1.7 $ 2,959.4 $ (805.9) $ (380.7)
[1]
Adjusted due to the adoption of ASU 2014-09 “Revenue from Contracts with Customers” and ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018.

v3.19.2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Jan. 01, 2019
Derivative financial instruments, net of tax $5.3 $ 5.3 $ (0.2) $ 8.1 $ (3.4)  
Accounting Standards Update 2017-12          
Impact due to adoption of ASU's, net of tax ($0.3)         $ (0.3)
v3.19.2
Nature of operations
6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of operations
1. Nature of operations
Headquartered in Downers Grove, Illinois, Univar Inc. (“the Company” or “Univar”) is a leading global chemicals and ingredients distributor and provider of specialty chemicals. The Company’s operations are structured into four operating segments that represent the geographic areas under which the Company manages its business:
Univar USA (“USA”)
Univar Canada (“Canada”)
Univar Europe, the Middle East and Africa (“EMEA”)
Latin America (“LATAM”)
In 2019, the Company renamed its “Rest of World” segment “Latin America” which includes certain developing businesses in Latin America (including Brazil and Mexico) and the Asia-Pacific region.
v3.19.2
Significant accounting policies
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Significant accounting policies
2. Significant accounting policies
Basis of presentation
The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) as applicable to interim financial reporting. Unless otherwise indicated, all financial data presented in these condensed consolidated financial statements are expressed in US dollars. These condensed consolidated financial statements, in the Company’s opinion, include all adjustments consisting of normal recurring accruals necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, comprehensive income, cash flows and changes in stockholders’ equity. The results of operations for the periods presented are not necessarily indicative of the operating results that may be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are consolidated if the Company has a controlling financial interest, which may exist based on ownership of a majority of the voting interest, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”) or if otherwise required by US GAAP. The Company did not have any material interests in VIEs during the periods presented in these condensed consolidated financial statements. All intercompany balances and transactions are eliminated in consolidation.
The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ materially from these estimates.
Recently issued and adopted accounting pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases” (Topic 842), which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” On January 1, 2019, the Company adopted the new Accounting Standards Codification (“ASC”) Topic 842 (“new lease standard”) using the modified retrospective method. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the historical lease classification to carry forward. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet. The Company will recognize short-term lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company recognized the cumulative effect of initially applying the new lease standard as an adjustment to the 2019 opening balance sheet. The cumulative effect of the standard’s adoption also includes adjustments related to previously unrecognized finance leases. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows:
(in millions)
 
Balance at December 31, 2018
 
Adjustments due to ASU 2016-02
 
Balance at January 1, 2019
Assets
 
 
 
 
 
 
Property, plant and equipment, net
 
$
955.8

 
$
5.4

 
$
961.2

Other assets
 
84.3

 
166.8

 
251.1

Liabilities
 
 
 
 
 
 
Current portion of long-term debt
 
$
21.7

 
$
(4.5
)
 
$
17.2

Other accrued expenses
 
285.8

 
43.8

 
329.6

Long-term debt
 
2,350.4

 
9.9

 
2,360.3

Other long-term liabilities
 
98.4

 
123.0

 
221.4


In February 2018, the FASB issued ASU 2018-02 “Income Statement - Reporting Comprehensive Income” (Topic 220)  “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“AOCI”) which gave entities the option to reclassify certain tax effects the FASB refers to as having been stranded, resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company adopted the ASU as of January 1, 2019 and elected to reclassify $3.2 million of the stranded tax effects from accumulated other comprehensive loss to accumulated deficit.
The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Effective date
2018-16
 
Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 
January 1, 2019

Accounting pronouncements issued and not yet adopted
In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement” (Topic 820) - “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU amends the requirements related to fair value disclosures to include new disclosure requirements and eliminates or modifies certain historic disclosures. The ASU amendment was part of the FASB’s disclosure framework project that is designed to increase the effectiveness of companies’ disclosures to the users of the financial statements and footnotes. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company is currently determining the impact to the Company’s disclosure requirements, which will be reflected in the footnote disclosures subsequent to the ASU adoption on January 1, 2020.
In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General” (Subtopic 715-20) - “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU amends the requirements related to defined benefit pension and other postretirement plan disclosures to include new disclosure requirements and eliminates or clarifies certain historic disclosures. The ASU amendment was part of the FASB’s disclosure framework project that is designed to increase the effectiveness of companies’ disclosures to the users of the financial statements and footnotes. This guidance will be effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently determining the impact to the Company’s disclosure requirements, which will be reflected in the footnote disclosures subsequent to the ASU adoption on January 1, 2021.
The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Expected adoption date
2018-18
 
Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606
 
January 1, 2020
2018-17
 
Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities
 
January 1, 2020
2018-15
 
Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
 
January 1, 2020
2016-13
 
Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
 
January 1, 2020

v3.19.2
Business combinations
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Business combinations
3. Business combinations
2019 Acquisitions
Acquisition of Nexeo
On February 28, 2019, the Company completed its previously announced acquisition of 100% of the equity interest of Nexeo Solutions, Inc. (“Nexeo”), a leading global chemicals and plastics distributor. The acquisition expands and strengthens Univar’s presence in North America and provides expanded opportunities to create the largest North American sales force in chemical and ingredients distribution and the broadest product offering.
The total purchase price of the acquisition was $1,804.8 million, composed of $1,155.5 million of cash paid (net of cash acquired of $56.8 million) and $649.3 million of newly issued shares of Univar common stock, which represented approximately 27.9 million shares of Univar common stock, based on Univar’s closing stock price of $23.29 on February 27, 2019. Under the merger agreement, each share of Nexeo stock issued and outstanding converted into 0.305 shares of Univar common stock and $3.02 in cash. As part of the acquisition, approximately $936.3 million of Nexeo’s debt and other long-term liabilities were repaid by Univar using the proceeds from long-term debt issued on February 28, 2019.
The $1,155.5 million cash payments, along with acquisition related costs, were funded through the proceeds from $781.5 million of incremental Term B Loans, $309.3 million borrowings under the New Senior ABL Facility and $175.0 million borrowings under the ABL Term Loan. Refer to “Note 13: Debt” for more information.
During the three months ended June 30, 2019, the Company updated Nexeo’s purchase price allocation to reflect adjustments from an opening balance sheet review which included changes in cash and cash equivalents, inventories, assets held for sale, property, plant and equipment, net, other assets, goodwill, trade accounts payable, other accrued expenses, liabilities held for sale, deferred tax liabilities and other long-term liabilities. These adjustments included a $6.9 million increase to goodwill, with corresponding adjustments to the tangible assets and liabilities assumed as discussed above.
The initial accounting for this acquisition is considered preliminary, and is subject to adjustments on receipt of additional information relevant to the acquisition, including working capital adjustments, valuations for certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired and related deferred income taxes. Management has engaged a third-party valuation firm to assist in the valuation of certain Nexeo’s tangible and intangible assets. This valuation is in process and the preliminary values below are based on initial information that continues to be subject to the completion of the valuation and allocation of the assets acquired.
The preliminary purchase price allocation at February 28, 2019 is as follows:
(in millions)
 
 
Trade accounts receivable, net
 
$
286.9

Inventories
 
149.4

Prepaid expenses and other current assets
 
27.2

Assets held for sale
 
923.8

Property, plant and equipment, net
 
227.5

Goodwill
 
689.1

Intangible assets, net
 
173.9

Other assets
 
39.8

Trade accounts payable
 
(137.7
)
Other accrued expenses
 
(110.6
)
Liabilities held for sale
 
(283.8
)
Deferred tax liabilities
 
(110.7
)
Other long-term liabilities
 
(70.0
)
Purchase consideration, net of cash
 
$
1,804.8


Assets and liabilities held for sale are related to the Nexeo plastics distribution business (“Nexeo Plastics”). Nexeo Plastics was not aligned with the Company’s strategic objectives and, on March 29, 2019, the business was sold to an affiliate of One Rock Capital Partners, LLC for total proceeds of $640.0 million. Refer to “Note 4: Discontinued operations” for further information.
The Company recorded $689.1 million of goodwill which is primarily attributable to expected synergies from combining operations. The Company is in process of determining its allocation of goodwill to its USA, Canada and LATAM reporting units, as well as determining if goodwill is expected to be deductible for income tax purposes.
The Company assumed 50.0 million warrants, equivalent to 25.0 million Nexeo shares, with an estimated aggregate fair value of $26.0 million at the February 28, 2019 closing date. The warrants were converted into the right to receive, upon exercise, the merger consideration consisting of approximately 7.6 million shares of Univar common stock plus cash. The warrants have an exercise price of $27.80. These warrants will expire on June 9, 2021. The Company recorded the warrants as other long-term liabilities within the condensed consolidated balance sheet. Refer to “Note 15: Fair value measurements” for more information.
The amounts of net sales and net loss from continuing operations related to the Nexeo chemical distribution business, included in the Company’s condensed consolidated statements of operations from March 1, 2019 to June 30, 2019 are as follows:
(in millions)
 
 
Net sales
 
$
622.3

Net loss from continuing operations
 
(17.0
)

The following unaudited pro forma financial information combines the unaudited results of operations as if the acquisition of Nexeo had occurred at the beginning of the periods presented below. The unaudited pro forma results for all periods presented below exclude the results of operations related to Nexeo Plastics, as this divestiture was reflected as discontinued operations. Refer to “Note 4: Discontinued operations” for additional information.
The unaudited pro forma financial information is as follows:
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Net sales
 
$
2,584.6

 
$
2,906.4

 
$
5,070.6

 
$
5,588.5

Net income (loss) from continuing operations
 
19.2

 
71.9

 
(40.6
)
 
157.3


The pro forma financial information is for comparative purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2018.
The unaudited pro forma information is based upon accounting estimates and judgments the Company believes are reasonable. The unaudited pro forma information reflects adjustments directly attributed to the business combination including amortization on acquired intangible assets, interest expense, transaction and acquisition related costs and the related tax effects.
2018 Acquisitions
Acquisition of Earthoil
On May 31, 2018, the Company completed an acquisition of 100% of the equity interest in Earthoil Plantations Limited (“Earthoil”), a supplier of pure, organic, fair trade essential and cold-pressed vegetable seed oils used in the naturals, organic beauty, and personal care markets. The acquisition expands and strengthens Univar’s existing global natural beauty and personal care product line.
The total purchase price of the acquisition was $13.3 million. The purchase price allocation includes goodwill of $3.7 million and intangibles of $6.1 million.
The operating results subsequent to the acquisition date did not have a significant impact on the condensed consolidated financial statements of the Company. The accounting for this acquisition was complete as of June 30, 2019.
Acquisition of Kemetyl Industrial Chemicals
On January 4, 2018, the Company completed an acquisition of 100% of the equity interest in Kemetyl Norge Industri AS (“Kemetyl”) as well as a definitive asset purchase agreement with Kemetyl Aktiebolag. Kemetyl is among the leading distributors of chemical products in the Nordic region and provides bulk and specialty chemicals, such as isopropanol, glycols, metal salts, minerals and polyacrylamides, to customers in Sweden and Norway. The addition of Kemetyl will allow Univar to expand its leading position in the pharmaceutical industry.
The purchase price of these acquisitions was $8.9 million (net of cash acquired of $0.7 million). The purchase price allocation includes goodwill of $3.9 million and intangibles of $3.6 million.
The operating results subsequent to the acquisition date did not have a significant impact on the condensed consolidated financial statements of the Company. The accounting for these acquisitions was complete as of March 31, 2019.
v3.19.2
Discontinued operations
6 Months Ended
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
4. Discontinued operations
On March 29, 2019, the Company completed the sale of the plastics distribution business of Nexeo to an affiliate of One Rock Capital Partners, LLC for total proceeds of $650.0 million, including $10.0 million for estimated excess working capital recorded during the first quarter of 2019. During the three months ended June 30, 2019, the Company recorded working capital adjustments resulting in adjusted total proceeds of $640.0 million.
In connection with the transaction, the Company entered into a Transition Services Agreement (TSA), a Warehouse Service Agreement (WSA) and Real Property Agreements with One Rock Capital Partners, LLC which are designed to ensure and facilitate an orderly transfer of business operations. The services provided under the transitional arrangements will terminate at various times, between six and twenty-four months and can be renewed with a maximum of two twelve-month periods. The income and expense for the services will be reported as other operating expenses, net in the condensed consolidated statements of operations. The Real Property Agreements will have a maximum tenure of three years. These arrangements do not constitute significant continuing involvement in the plastics distribution business. 
The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the three and six months ended June 30, 2019, as presented in “Net (loss) income from discontinued operations” on the condensed consolidated statements of operations.
(in millions)
 
Three months ended June 30, 2019
 
Six months ended June 30, 2019
External sales
 
$

 
$
156.9

Cost of goods sold (exclusive of depreciation)
 

 
136.7

Outbound freight and handling
 

 
3.5

Warehousing, selling and administrative
 

 
7.9

Other expenses
 

 
1.4

Income from discontinued operations before income taxes
 
$

 
$
7.4

Income tax expense from discontinued operations (1)
 
0.7

 
2.0

Net (loss) income from discontinued operations
 
$
(0.7
)
 
$
5.4


 
(1)
The provision for income taxes for the three months ended June 30, 2019 includes an adjustment to the tax expense related to the one month operations reported as of March 31, 2019.
There were no significant non-cash operating activities from the Company’s discontinued operations related to the plastics distribution business.
v3.19.2
Revenue
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue
5. Revenue
The Company disaggregates revenues from contracts with customers by both geographic segments and revenue contract types. Geographic reportable segmentation is pertinent to understanding Univar’s revenues, as it aligns to how the Company reviews the financial performance of its operations. Revenue contract types are differentiated by the type of good or service Univar offers customers, since the contractual terms necessary for revenue recognition are unique to each of the identified revenue contract types.
The following table disaggregates external customer net sales by major stream:
(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Consolidated
 
 
Three months ended June 30, 2019
Chemical Distribution
 
$
1,515.6

 
$
225.1

 
$
457.5

 
$
114.6

 
$
2,312.8

Crop Sciences
 

 
167.1

 

 

 
167.1

Services
 
89.7

 
12.6

 
0.4

 
2.0

 
104.7

Total external customer net sales
 
$
1,605.3

 
$
404.8

 
$
457.9

 
$
116.6

 
$
2,584.6

(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Consolidated
 
 
Six months ended June 30, 2019
Chemical Distribution
 
$
2,763.1

 
$
436.8

 
$
940.9

 
$
207.2

 
$
4,348.0

Crop Sciences
 

 
217.6

 

 

 
217.6

Services
 
149.4

 
24.2

 
0.7

 
4.7

 
179.0

Total external customer net sales
 
$
2,912.5

 
$
678.6

 
$
941.6

 
$
211.9

 
$
4,744.6


Revenue is recognized when performance obligations under the terms of the contract are satisfied, which generally occurs when goods or services are transferred to a customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. Payment terms and conditions vary by regions where the Company performs business and contract types. The term between invoicing and when payment is due is generally one year or less. As of June 30, 2019, none of the Company’s contracts contained a significant financing component.
Revenue is recognized if the Company has a customer initiated request, the materials are properly segregated and designated as belonging to the customer, materials are ready to be transferred to the customer and Univar is unable to direct the materials to service another customer. In addition, the Company has certain contractual relationships designated as an agency relationship, which requires the Company to recognize revenues on a net basis.
Chemical Distribution
The Company generates revenue when control for products is transferred to customers. Certain customers may receive discounts off the transaction price, primarily due to price and volume incentives, or return product for non-conformance, which are accounted for as variable consideration. The Company estimates the change in the transaction price that is expected to be provided to customers based on historical experience, which impacts revenues recognized.
Crop Sciences
The Company generates revenue when control for products is transferred to customers. The amount of consideration recorded varies due to price movements and rights granted to customers to return product. Customer payment terms often extend through a growing season, which may be up to six months.
Transaction prices may move during an agricultural growing season and changes may affect the amount of consideration the Company will receive. Transaction prices are also affected by special offers or volume discounts. The Company estimates the expected changes in the transaction price based on the combination of historical experience and the impact of weather on the current agriculture season. The adjustments to the transaction price are recognized as variable consideration and impacts revenues recognized.
When customers are provided rights to return eligible products, the Company estimates the expected returns based on the combination of historical experience and the impact of weather on the current agriculture season, which affects the revenues recognized.
Services
The Company generates revenue from services as they are performed and economic value is transferred to customers. Univar’s services provided to customers are primarily related to waste management services and warehousing services. Waste management services is primarily related to plant maintenance, environmental contracting, environmental consulting and the collection and disposal of both hazardous and non-hazardous waste products. Warehousing services is primarily inclusive of blending, warehousing, logistics and distribution services for customers. Waste management and warehousing services are recognized over time as the performance obligations are satisfied.
Costs to obtain or fulfill contracts with customers
Univar expenses costs to obtain contracts when the contract term and benefit period is expected to be one year or less. Contract costs where the contract term and benefit period is expected to be more than a year are capitalized and amortized over the performance obligation period. Capitalized contract costs of $1.4 million and $5.1 million are included in other current assets and other assets as of June 30, 2019 within the condensed consolidated balance sheets.
Deferred revenue
Deferred revenues are recognized as a contract liability when customers provide Univar with consideration prior to the Company satisfying a performance obligation. The following table provides information pertaining to the deferred revenue balance and account activity:
(in millions)
 
 
Deferred revenue as of January 1, 2019
 
$
45.6

Deferred revenue as of June 30, 2019
 
6.4

Revenue recognized that was included in the deferred revenue balance at the beginning of the period
 
44.4


The deferred revenue balances are all expected to have a duration of one year or less and are recorded within the other accrued expenses line item of the condensed consolidated balance sheets.
v3.19.2
Other operating expenses, net
6 Months Ended
Jun. 30, 2019
Other Income and Expenses [Abstract]  
Other operating expenses, net
6. Other operating expenses, net
Other operating expenses, net consisted of the following:
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Acquisition and integration related expenses
 
$
32.6

 
$
1.0

 
$
109.7

 
$
1.4

Stock-based compensation expense
 
11.3

 
4.3

 
17.3

 
13.7

Restructuring charges
 
0.5

 

 
0.6

 
0.5

Other employee termination costs
 
6.2

 
4.4

 
19.1

 
6.8

Saccharin legal settlement
 

 

 
62.5

 

Other
 
13.2

 
1.3

 
19.4

 
2.2

Total other operating expenses, net
 
$
63.8

 
$
11.0

 
$
228.6

 
$
24.6


v3.19.2
Restructuring charges
6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring charges
7. Restructuring charges
Restructuring charges recorded relate to large, strategic initiatives aimed at streamlining the Company’s cost structure and improving its operations. These actions primarily result in workforce reductions, lease termination costs and other facility rationalization costs. Restructuring charges are recorded in other operating expenses, net in the condensed consolidated statement of operations.
2018 Restructuring
In 2018, the Company recorded restructuring charges of $3.2 million in USA, consisting of $3.1 million in employee termination costs and $0.1 million in other exit costs for employees impacted by a decision to consolidate departments. Additionally, the Company recorded restructuring charges of $0.9 million in Other, relating to employee termination costs. During the three months ended June 30, 2019, the Company recorded restructuring charges of $0.5 million in USA, consisting of $0.4 million in employee termination costs and $0.1 million in facility exit costs. During the six months ended June 30, 2019, the Company recorded restructuring charges of $0.8 million in USA, consisting of $0.6 million in employee termination costs, $0.1 million in facility exit costs, and $0.1 million
in other exit costs. The Company expects to incur approximately $4.1 million of additional employee termination and other exit costs over the next year and expects this program to be substantially completed by 2020.
Also during the year ended December 31, 2018, the Company recorded restructuring charges of $0.9 million in EMEA relating to employee termination costs. The Company reduced its estimate in the amount of $0.2 million within employee termination costs for this program during the six months ended June 30, 2019. The Company does not expect to incur material costs in the future related to this restructuring program. The actions associated with this program are expected to be completed by the end of 2019.
The cost information above does not contain any estimates for programs that may be developed and implemented in future periods.
The following table summarizes activity related to accrued liabilities associated with restructuring:
(in millions)
 
January 1, 2019
 
Charge to 
earnings
 
Cash
paid
 
Non-cash 
and other
 
June 30, 2019
Employee termination costs
 
$
4.2

 
$
0.4

 
$
(3.2
)
 
$

 
$
1.4

Facility exit costs
 
5.0

 
0.1

 
(0.1
)
 

 
5.0

Other exit costs
 
0.2

 
0.1

 

 

 
0.3

Total
 
$
9.4

 
$
0.6

 
$
(3.3
)
 
$

 
$
6.7


(in millions)
 
January 1, 2018
 
Charge to 
earnings
 
Cash 
paid
 
Non-cash 
and other
 
December 31, 2018
Employee termination costs
 
$
3.0

 
$
5.3

 
$
(3.4
)
 
$
(0.7
)
 
$
4.2

Facility exit costs
 
10.2

 
(0.7
)
 
(4.4
)
 
(0.1
)
 
5.0

Other exit costs
 
(0.5
)
 
0.2

 
(0.1
)
 
0.6

 
0.2

Total
 
$
12.7

 
$
4.8

 
$
(7.9
)
 
$
(0.2
)
 
$
9.4



Restructuring liabilities of $6.2 million and $5.9 million were classified as current in other accrued expenses in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. The long-term portion of restructuring liabilities of $0.5 million and $3.5 million were recorded in other long-term liabilities in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively, and primarily consists of facility exit costs that are expected to be paid within the next five years.
While the Company believes the recorded restructuring liabilities are adequate, revisions to current estimates may be recorded in future periods based on new information as it becomes available.
v3.19.2
Other (expense) income, net
6 Months Ended
Jun. 30, 2019
Other Income and Expenses [Abstract]  
Other (expense) income, net
8. Other (expense) income, net
Other (expense) income, net consisted of the following gains (losses):
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019

2018
 
2019
 
2018
Foreign currency transactions
 
$
(2.1
)

$
(4.2
)
 
$
(2.8
)
 
$
(4.3
)
Foreign currency denominated loans revaluation
 
(4.7
)

(2.6
)
 
0.5

 
(1.4
)
Undesignated foreign currency derivative instruments (1)
 
4.3


2.2

 
(5.6
)
 
0.9

Undesignated interest rate swap contracts (1)
 
(3.0
)
 

 
(2.8
)
 

Non-operating retirement benefits (2)
 
0.6

 
3.4

 
1.2

 
6.9

Other
 
(0.7
)

(0.9
)
 
(2.2
)
 
(1.6
)
Total other (expense) income, net
 
$
(5.6
)
 
$
(2.1
)
 
$
(11.7
)
 
$
0.5

 
(1)
Refer to “Note 16: Derivatives” for more information.
(2)
Refer to “Note 9: Employee benefit plans” for more information.
v3.19.2
Employee benefit plans
6 Months Ended
Jun. 30, 2019
Postemployment Benefits [Abstract]  
Employee benefit plans
9. Employee benefit plans
The following table summarizes the components of net periodic cost (benefit) recognized in the condensed consolidated statements of operations: 
 
 
Domestic - Defined Benefit Pension Plans
 

Three months ended
June 30,
 
Six months ended
June 30,
(in millions)

2019

2018
 
2019
 
2018
Service cost (1)
 
$

 
$

 
$

 
$

Interest cost (2)

6.8


6.8

 
13.6

 
13.6

Expected return on plan assets (2)

(6.3
)

(7.8
)
 
(12.6
)
 
(15.6
)
Net periodic cost (benefit)

$
0.5

 
$
(1.0
)
 
$
1.0

 
$
(2.0
)

 
 
Foreign - Defined Benefit Pension Plans
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Service cost (1)
 
$
0.6

 
$
0.7

 
$
1.2

 
$
1.4

Interest cost (2)
 
3.9

 
3.9

 
7.8

 
7.9

Expected return on plan assets (2)
 
(5.1
)
 
(6.4
)
 
(10.1
)
 
(12.9
)
Prior service cost (2)
 
0.1

 
0.1

 
0.1

 
0.1

Net periodic benefit
 
$
(0.5
)
 
$
(1.7
)
 
$
(1.0
)
 
$
(3.5
)
 
(1)
Service cost is included in warehouse, selling and administrative expenses.
(2)
These amounts are included in other (expense) income, net.
v3.19.2
Income taxes
6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income taxes
10. Income taxes
The Company’s tax provision for interim periods is determined using an estimate of the annual effective income tax rate, adjusted for discrete items, if any, that occur in the relevant period. Each quarter, an estimate of the annual effective income tax rate is updated should management revise its forecast of earnings based upon the Company’s operating results. If there is a change in the estimated effective annual income tax rate, a cumulative adjustment is made. The quarterly income tax provision and forecast estimate of the annual effective income tax rate may be subject to volatility due to several factors, including the complexity in forecasting jurisdictional earnings before income tax, the rate of realization of forecasting earnings or losses by quarter, acquisitions, divestitures, foreign currency gains and losses, pension gains and losses, and other factors.
The income tax expense of $18.5 million and income tax benefit of $4.8 million for the three and six months ended June 30, 2019, resulted in an effective income tax rate of 52.1% and 8.3%, respectively. Discrete tax benefits of $3.8 million and $14.0 million are included in the $18.5 million income tax expense and the $4.8 million income tax benefit for the three and six month period ended June 30, 2019. The Company’s effective income tax rate without discrete items was 52.3%, higher than the US federal statutory rate of 21.0% primarily due to the impact of non-deductible Nexeo related acquisition and integration costs, along with state taxes, foreign rate differential, non-deductible compensation and other expenses, and an increase in the valuation allowance on certain income tax attributes. The six months ended June 30, 2019 discrete tax benefit of $14.0 million is substantially attributable to the indirect effects of the Nexeo Plastics sale.
The income tax expense for the three and six months ended June 30, 2018 was $27.2 million and $37.4 million, and resulted in an effective income tax rate of 32.7% and 23.5%. The Company’s effective income tax rate for the three and six month period ended June 30, 2018 was higher than the US federal statutory rate of 21.0% primarily due to the addition of state taxes, and the higher tax rates incurred on the company’s earnings outside the US, including the overall net impact of the 2017 US Tax Cuts and Jobs Act on foreign net earnings. The increases in the effective income tax rate were partially offset by the release of valuation allowances on certain tax attributes. The Company’s effective income tax rate for the six month period ended June 30, 2018 was lower than its three month period effective income tax rate ended June 30, 2018 mainly due to the impact of the discrete tax benefits recorded in the previous quarter.
v3.19.2
Earnings per share
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Earnings per share
11. Earnings per share
The following table presents the basic and diluted earnings per share computations:
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions, except per share data)
 
2019
 
2018
 
2019
 
2018
Basic:
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
$
17.0

 
$
56.1

 
$
(53.0
)
 
$
121.5

Net (loss) income from discontinued operations
 
(0.7
)
 

 
5.4

 

Net income (loss)
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

Less: earnings allocated to participating securities
 

 
0.1

 

 
0.2

Earnings allocated to common shares outstanding
 
$
16.3

 
$
56.0

 
$
(47.6
)
 
$
121.3

 
 


 
 
 
 
 
 
Weighted average common shares outstanding
 
169.8

 
141.1

 
159.5

 
141.0

Basic income (loss) per common share from continuing operations
 
$
0.10

 
$
0.40

 
$
(0.33
)
 
$
0.86

Basic income per common share from discontinued operations
 

 

 
0.03

 

Basic income (loss) per common share (2)
 
$
0.10

 
$
0.40

 
$
(0.30
)
 
$
0.86

 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
$
17.0

 
$
56.1

 
$
(53.0
)
 
$
121.5

Net (loss) income from discontinued operations
 
(0.7
)
 

 
5.4

 

Net income (loss)
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

Less: earnings allocated to participating securities
 

 

 

 

Earnings allocated to common shares outstanding
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
169.8

 
141.1

 
159.5

 
141.0

Effect of dilutive securities: stock compensation plans (1)
 
0.9

 
0.9

 

 
1.0

Weighted average common shares outstanding – diluted
 
170.7

 
142.0

 
159.5

 
142.0

Diluted income (loss) per common share from continuing operations
 
$
0.10

 
$
0.40

 
$
(0.33
)
 
$
0.86

Diluted income per common share from discontinued operations
 

 

 
0.03

 

Diluted income (loss) per common share (2)
 
$
0.10

 
$
0.40

 
$
(0.30
)
 
$
0.86

 
(1)
Stock options to purchase 2.9 million and 1.5 million shares of common stock and restricted stock of nil were outstanding during the three months ended June 30, 2019 and 2018, respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Stock options to purchase 3.0 million and 1.4 million shares of common stock and restricted stock of 0.8 million and nil were outstanding during the six months ended June 30, 2019 and 2018, respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Diluted shares outstanding also did not include 7.6 million and 5.1 million shares of common stock issuable on the exercise of warrants because the warrants were out-of-the-money for the three and six months ended June 30, 2019.
(2)
As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not equal the earnings per share for any year-to-date period.
v3.19.2
Accumulated other comprehensive loss
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Accumulated other comprehensive loss
12. Accumulated other comprehensive loss
The following tables present the changes in accumulated other comprehensive loss by component, net of tax:
(in millions)
 
Cash flow hedges
 
Defined
benefit
pension items
 
Currency
translation
items
 
Total
Balance as of December 31, 2018
 
$
8.9

 
$
(1.1
)
 
$
(381.0
)
 
$
(373.2
)
Impact due to adoption of ASU 2018-02 (1)
 
1.5

 


 
(4.7
)
 
(3.2
)
Other comprehensive (loss) income before reclassifications
 
(18.6
)
 

 
19.8

 
1.2

Amounts reclassified from accumulated other comprehensive loss
 
(5.6
)
 
0.1

 

 
(5.5
)
Net current period other comprehensive (loss) income
 
$
(22.7
)
 
$
0.1

 
$
15.1

 
$
(7.5
)
Balance as of June 30, 2019
 
$
(13.8
)
 
$
(1.0
)
 
$
(365.9
)
 
$
(380.7
)
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2017
 
$
6.7

 
$
(1.2
)
 
$
(284.0
)
 
$
(278.5
)
Impact due to adoption of ASU 2017-12 (2)
 
0.5

 

 

 
0.5

Other comprehensive income (loss) before reclassifications
 
11.6

 

 
(63.0
)
 
(51.4
)
Amounts reclassified from accumulated other comprehensive loss
 
$
(2.2
)
 
$
0.1

 
$

 
$
(2.1
)
Net current period other comprehensive income (loss)
 
$
9.9

 
$
0.1

 
$
(63.0
)
 
$
(53.0
)
Balance as of June 30, 2018
 
$
16.6

 
$
(1.1
)
 
$
(347.0
)
 
$
(331.5
)

 
(1)
Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “Note 2: Significant accounting policies” for more information.
(2)
Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018.

The following is a summary of the amounts reclassified from accumulated other comprehensive loss to net (loss) income:
 
 
Three months ended June 30,
 
 
(in millions)
 
2019 (1)
 
2018 (1)
 
Location of impact on
  statement of operations  
Amortization of defined benefit pension items:
 
 
 
 
 
 
Prior service cost
 
$
0.1

 
$
0.1

 
Other (expense) income, net
Tax expense
 

 

 
Income tax expense (benefit)
Net of tax
 
$
0.1

 
$
0.1

 
 
Cash flow hedges:
 
 
 
 
 
 
Interest rate swap contracts
 
$
(3.7
)
 
$
(3.0
)
 
Interest expense
Tax expense
 
0.9

 
0.8

 
Income tax expense (benefit)
Net of tax
 
$
(2.8
)
 
$
(2.2
)
 
 
Total reclassifications for the period
 
$
(2.7
)
 
$
(2.1
)
 
 
 
 
Six months ended June 30,
 
 
(in millions)
 
2019 (1)
 
2018 (1)
 
Location of impact on
  statement of operations  
Amortization of defined benefit pension items:
 
 
 
 
 
 
Prior service cost
 
$
0.1

 
$
0.1

 
Other (expense) income, net
Tax expense
 

 

 
Income tax expense (benefit)
Net of tax
 
$
0.1

 
$
0.1

 
 
Cash flow hedges:
 
 
 
 
 
 
Interest rate swap contracts
 
$
(7.5
)
 
$
(3.0
)
 
Interest expense
Tax expense
 
1.9

 
0.8

 
Income tax expense (benefit)
Net of tax
 
$
(5.6
)
 
$
(2.2
)
 
 
Total reclassifications for the period
 
$
(5.5
)
 
$
(2.1
)
 
 
 
(1)
Amounts in parentheses indicate credits to net income in the condensed consolidated statement of operations.
v3.19.2
Debt
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt
13. Debt
Short-term financing
Short-term financing consisted of the following:
(in millions)
 
June 30, 2019
 
December 31, 2018
Amounts drawn under credit facilities
 
$
1.5

 
$
4.7

Bank overdrafts
 
1.7

 
3.4

Total short-term financing
 
$
3.2

 
$
8.1


As of June 30, 2019 and December 31, 2018, the Company had $142.0 million and $139.4 million in outstanding letters of credit, respectively.
Long-term debt
Long-term debt consisted of the following:
(in millions)
 
June 30, 2019
 
December 31, 2018
Senior Term Loan Facilities:




Term B Loan due 2024, variable interest rate of 4.65% and 4.77% at June 30, 2019 and December 31, 2018, respectively

$
1,438.0


$
1,747.8

Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at June 30, 2019
 
398.2

 

Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019
 
245.0

 

Asset Backed Loan (ABL) Facilities:




North American ABL Facility due 2024, variable interest rate of 3.98% at June 30, 2019

397.5



Canadian ABL Term Loan due 2022, variable interest rate of 4.21% at June 30, 2019
 
175.7

 

Euro ABL Facility due 2023, variable interest rate of 1.75% at June 30, 2019 and December 31, 2018
 
46.6

 
58.5

North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019)
 

 
134.7

Senior Unsecured Notes:




Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at June 30, 2019 and December 31, 2018

399.5


399.5

Finance lease obligations

66.2


54.8

Total long-term debt before discount

$
3,166.7


$
2,395.3

Less: unamortized debt issuance costs and discount on debt

(30.6
)

(23.2
)
Total long-term debt

$
3,136.1


$
2,372.1

Less: current maturities

(19.0
)

(21.7
)
Total long-term debt, excluding current maturities

$
3,117.1


$
2,350.4



The weighted average interest rate on long-term debt was 4.38% and 4.29% as of June 30, 2019 and December 31, 2018, respectively.
On April 3, 2019, using the proceeds from the sale of Nexeo Plastics, the Company repaid $448.8 million of its outstanding Euro and USD Term Loans due 2024. As a result of the prepayment of $309.8 million of the Term B Loan, €74.8 million of the Euro Term B-2 Loan and $55.0 million of the Term B-4 Loan, there are no mandatory principal payments required under the Senior Term Facilities until 2024.
On February 28, 2019, the Company and certain of its subsidiaries entered into the Fourth Amendment (the “Fourth Amendment”) to that certain credit agreement, dated July 1, 2015 (as amended prior to the Fourth Amendment, the “Credit Agreement” and as amended by the Fourth Amendment, the “Amended Credit Agreement”). Pursuant to the Fourth Amendment, Goldman Sachs Bank USA and the other lenders agreed to provide a new Term B-4 loan facility in an aggregate principal amount
of $300.0 million and a new Euro Term B-2 loan facility in an aggregate principal amount of €425.0 million (collectively, the “Incremental Term Loans”, and together with the Amended Credit Agreement, the “Senior Term Facilities”).
The interest rates applicable to the term loans under the Senior Term Facilities are based on, at the borrower’s option, (i) in the case of dollar denominated Term B-4 loan facility, a fluctuating rate of interest determined by reference to a base rate plus an applicable margin equal to 1.75% or a Eurocurrency rate plus an applicable margin equal to 2.75% (in each case with one 0.25% step down based on achievement of a specific leverage level) and (ii) in the case of Euro denominated Euro Term B-2 loan facility, a fluctuating rate of interest determined by reference to a EURIBOR rate plus an applicable margin equal to 2.75%. The Term B-4 loan and the Euro Term B-2 loan remaining balances are due on the maturity date of July 1, 2024. The Company can repay either loan in whole or part without penalty.
On February 28, 2019, the Company and certain of its US and Canadian subsidiaries entered into an Amended and Restated ABL Credit Agreement pursuant to which Bank of America N.A. and the other lenders party thereto agreed to provide for a five year senior secured ABL credit facility in an aggregate amount of $1.2 billion US dollars and $325.0 million Canadian dollars and a three year secured Canadian dollar ABL term loan facility (“ABL Term Loan”) in an aggregate principal amount of the Canadian dollar equivalent of $175.0 million (collectively, the “New Senior ABL Facility”). The New Senior ABL Facility amends and restates in full the ABL facility entered into by Univar on July 28, 2015. Under the two revolving tranches, the borrowers may request loan advances and make loan repayments until the maturity date of February 28, 2024. The maximum amount available to be borrowed under the New Senior ABL Facility will be determined by a borrowing base consisting of eligible inventory, eligible accounts receivable and cash of Univar and certain of its subsidiaries.
The interest rates applicable to the loans under the New Senior ABL Facility are based on, at the borrower’s option, (i) with respect to initial term loan facility under the New Senior ABL Facility, a fluctuating rate of interest determined by reference to either a prime rate plus an applicable margin ranging from 1.00% to 1.25% or a BA rate plus an applicable margin ranging from 2.00% to 2.25% and (ii) with respect to the US and Canadian revolving loans under the New Senior ABL Facility, a fluctuating rate of interest determined by reference to a base rate plus an applicable margin ranging from 0.25% to 0.50% or a Eurocurrency rate plus an applicable margin ranging from 1.25% to 1.50%. The applicable margin will be adjusted after the completion of each full fiscal quarter based upon the pricing grid in the New Senior ABL Facility. The ABL Term Loan is payable in quarterly installments of 25.0% of the aggregate initial principal amount commencing June 30, 2021 with a final amortization payment on February 28, 2022.
Assets pledged under the New Senior ABL Facility, Senior Term Facilities and the Euro ABL include $36.9 million of cash, $1,329.0 million of trade accounts receivable, net, $801.9 million of inventories, $147.7 million of prepaid expenses and other current assets and $958.3 million of property, plant and equipment, net.
As a result of the February 2019 amendment related to the New Senior ABL Facility, the Company recognized a loss on extinguishment of debt of $0.7 million during the six months ended June 30, 2019.
v3.19.2
Supplemental balance sheet information
6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental balance sheet information
14. Supplemental balance sheet information
Property, plant and equipment, net
(in millions)
 
June 30, 2019
 
December 31, 2018
Property, plant and equipment, at cost
 
$
2,193.5

 
$
1,925.9

Less: accumulated depreciation
 
(1,040.0
)
 
(970.1
)
Property, plant and equipment, net
 
$
1,153.5

 
$
955.8

Finance lease assets, net
Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets:
(in millions)
 
June 30, 2019
 
December 31, 2018
Finance lease assets, at cost
 
$
113.9

 
$
89.4

Less: accumulated depreciation
 
(49.7
)
 
(37.4
)
Finance lease assets, net
 
$
64.2

 
$
52.0


Intangible assets, net
The gross carrying amounts and accumulated amortization of the Company’s intangible assets were as follows:
 
 
June 30, 2019
 
December 31, 2018
(in millions)
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
1,025.9

 
$
(655.5
)
 
$
370.4

 
$
846.1

 
$
(620.3
)
 
$
225.8

Other
 
175.8

 
(165.2
)
 
10.6

 
175.1

 
(162.8
)
 
12.3

Total intangible assets
 
$
1,201.7

 
$
(820.7
)
 
$
381.0

 
$
1,021.2

 
$
(783.1
)
 
$
238.1


Other intangible assets consist of intellectual property trademarks, trade names, supplier relationships, non-compete agreements and exclusive distribution rights.
Other accrued expenses    
As of June 30, 2019 and December 31, 2018, there were no components within other accrued expenses that were greater than five percent of total current liabilities.
v3.19.2
Fair value measurements
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair value measurements
15. Fair value measurements
Items measured at fair value on a recurring basis
The following table presents the Company’s gross assets and liabilities measured on a recurring basis:
 
 
Level 2
 
Level 3
(in millions)
 
June 30, 2019
 
December 31, 2018
 
June 30, 2019
 
December 31, 2018
Financial current assets:
 
 
 
 
 
 
 
 
Forward currency contracts
 
$
2.4

 
$
0.3

 
$

 
$

Interest rate swap contracts
 

 
12.4

 

 

Financial non-current assets:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 

 
1.5

 

 

Financial current liabilities:
 
 
 
 
 
 
 
 
Forward currency contracts
 
0.2

 
0.2

 

 

Interest rate swap contracts
 
0.4

 

 

 

Financial non-current liabilities:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 
20.9

 

 

 

Warrant liability
 

 

 
23.4

 


The net amounts by legal entity related to forward currency contracts included in prepaid and other current assets were $2.4 million and $0.3 million as of June 30, 2019 and December 31, 2018, respectively. The net amounts related to forward currency contracts included in other accrued expenses were $0.2 million and $0.2 million as of June 30, 2019 and December 31, 2018, respectively.
The fair value of forward currency contracts is calculated by reference to current forward exchange rates for contracts with similar maturity profiles. The fair value of interest rate swaps is determined by estimating the net present value of amounts to be paid under the agreement offset by the net present value of the expected cash inflows based on market rates and associated yield curves. Based on these valuation methodologies, these derivative contracts are classified as Level 2 in the fair value hierarchy.
The warrant liability in the table above consisted of the fair value of warrants assumed in connection with the Nexeo acquisition. Refer to “Note 3: Business combinations” for more information. The fair value of the warrant liability is calculated using the Black-Scholes-Merton option valuation model. The fair value of the warrants was computed using the following assumptions: expected option life two years, volatility 26.07%, and risk-free interest rate of 1.75%. As the Company does not have sufficient historical volatility data, the expected volatility is based on the average historical data of a peer group of public companies over a period equal to the expected term of the stock options. The risk-free interest rate assumption was based on the US Treasury rates. Based on the valuation methodology, the warrant liability is classified as Level 3 in the fair value hierarchy.
The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consists of the warrant liability related to the Nexeo acquisition.
(in millions)
 
Warrant Liability
Fair value as of December 31, 2018
 
$

Additions
 
26.0

Fair value adjustments
 
(2.6
)
Fair value as of June 30, 2019
 
$
23.4


Fair value adjustments are recorded within other operating expenses, net in the condensed consolidated statement of operations.
Financial instruments not carried at fair value
The estimated fair value of financial instruments not carried at fair value in the condensed consolidated balance sheets were as follows:
 
 
June 30, 2019
 
December 31, 2018
(in millions)
 
Carrying 
Amount
 
Fair
Value
 
Carrying 
Amount
 
Fair
Value
Financial liabilities:
 
 
 
 
 
 
 
 
Long-term debt including current portion (Level 2)
 
$
3,136.1

 
$
3,173.9

 
$
2,372.1

 
$
2,314.3


The fair values of the long-term debt, including the current portions, were based on current market quotes for similar borrowings and credit risk adjusted for liquidity, margins and amortization, as necessary.
Fair value of other financial instruments
The carrying value of cash and cash equivalents, trade accounts receivable, net, trade accounts payable and short-term financing included in the condensed consolidated balance sheets approximate fair value due to their short-term nature.
v3.19.2
Derivatives
6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
16. Derivatives
Interest rate swaps
The objective of the designated interest rate swap contracts is to offset the variability of cash flows in LIBOR indexed debt interest payments attributable to changes in the aforementioned benchmark interest rate related to the USD Term B Loans and USA ABL Facility due 2024.
As of June 30, 2019 and December 31, 2018, the Company had designated interest rate swap contracts with a total notional amount of $1.8 billion and $2.0 billion, respectively. In March 2019 and December 2018, the Company entered into interest rate swap contracts with a total notional amount of $300.0 million and $500.0 million effective March 2019 and June 2019, respectively whereby a fixed rate of interest (weighted average of 2.27% and 2.73%, respectively) is paid and a variable rate of interest (three-month LIBOR) is received as calculated on the notional amount. In 2017, the Company entered into interest rate swap contracts with a remaining notional amount of $1.0 billion whereby a fixed rate of interest (weighted average of 1.70%) is paid and a variable rate of interest (three-month LIBOR) is received as calculated on the notional amount.
As of June 30, 2019, the designated interest rate swaps held by the Company continue to qualify for hedge accounting. The Company recognizes the changes in fair value of the interest rate swap contracts, whether it is due to effectiveness or ineffectiveness, in other comprehensive income and subsequently is reclassified to the income statement when the hedged item impacts earnings.
During the three and six months ended June 30, 2019, there were $3.7 million and $7.5 million in gains on our interest rate swap contracts that were reclassified to interest expense in the condensed consolidated statement of operations, respectively. As of June 30, 2019, the Company estimates that $0.1 million of derivative losses included in accumulated other comprehensive loss
will be reclassified into the condensed consolidated statement of operations within the next 12 months. The activity related to our cash flow hedges is included in “Note 12: Accumulated other comprehensive loss.”
In March 2019, the Company entered into an interest rate swap contract with a total notional amount of $200.0 million effective March 2019 which is not designated against long-term debt. The interest rate swap is used to manage interest rate risk. The Company does not apply hedge accounting for this interest rate swap contract. Changes in fair value of the interest rate swap contract is recognized directly in other (expense) income, net in the condensed consolidated statement of operations. Refer to “Note 8: Other (expense) income, net” for additional information.
The fair value of interest rate swaps is recorded either in prepaid expenses and other current assets, other assets, other accrued expenses or other long-term liabilities in the condensed consolidated balance sheets. As of June 30, 2019 and December 31, 2018 a current liability of $0.4 million was included in other accrued expenses and a current asset of $12.4 million was included in other current assets, respectively. As of June 30, 2019 a non-current liability of $20.9 million was included in other long-term liabilities. As of December 31, 2018, a non-current asset of $1.5 million was included in other assets.
Foreign currency derivatives
The Company uses forward currency contracts to hedge earnings from the effects of foreign exchange relating to certain of the Company’s monetary assets and liabilities denominated in a foreign currency. These derivative instruments are not formally designated as hedges by the Company and the terms of these instruments range from one to three months. Forward currency contracts are recorded at fair value in either prepaid expenses and other current assets or other accrued expenses in the condensed consolidated balance sheet, reflecting their short-term nature. The fair value adjustments and gains and losses are included in other (expense) income, net within the condensed consolidated statements of operations. Refer to “Note 8: Other (expense) income, net” for more information. On March 29, 2019, the Company entered into a €350.0 million forward currency contract to hedge foreign exchange risk related to the Euro Term B loan. On June 28, 2019, the Company entered into a new forward currency contract with a total notional amount of €350.0 million with a termination date of October 1, 2019 to replace its existing forward currency contract which has a termination date of July 1, 2019. The total notional amount of undesignated forward currency contracts were $910.7 million and $108.1 million as of June 30, 2019 and December 31, 2018, respectively.
Cash flows associated with derivative financial instruments are recognized in the operating section of the condensed consolidated statement of cash flows.
v3.19.2
Commitments and contingencies
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies
17. Commitments and contingencies
Litigation
In the ordinary course of business the Company is subject to pending or threatened claims, lawsuits, regulatory matters and administrative proceedings from time to time. Where appropriate the Company has recorded provisions in the condensed consolidated financial statements for these matters. The liabilities for injuries to persons or property are in some instances covered by liability insurance, subject to various deductibles and self-insured retentions.
The Company is not aware of any claims, lawsuits, regulatory matters or administrative proceedings, pending or threatened, that are material to its overall financial position, results of operations or cash flows. However, the Company cannot predict the outcome of any claims or litigation or the potential for future claims or litigation.
The Company is subject to liabilities from claims alleging personal injury from exposure to asbestos. The claims result primarily from an indemnification obligation related to Univar USA Inc.’s (“Univar”) 1986 purchase of McKesson Chemical Company from McKesson Corporation (“McKesson”). Univar is also a defendant in a small number of asbestos claims. As of June 30, 2019, there were fewer than 97 asbestos-related claims for which the Company has liability for defense and indemnity pursuant to the indemnification obligation. The volume of such cases has decreased in recent quarters. Historically, the vast majority of the claims against both McKesson and Univar have been dismissed without payment. The Company does incur costs in defending these claims. While the Company is unable to predict the outcome of these matters, it does not believe, based upon currently available facts, that the ultimate resolution of any of these matters will have a material effect on its overall financial position, results of operations or cash flows. However, the Company cannot predict the outcome of any present or future claims or litigation and adverse developments could negatively impact earnings or cash flows in a particular future period.
Merger-related Appraisal Litigation
In connection with the previously disclosed acquisition of Nexeo Solutions, Inc., on June 26, 2019, the Company reached an agreement with BCIM Strategic Value Master Fund, LP (“BCIM”) to resolve a dispute regarding the fair value of 5.0 million shares of Nexeo common stock, for which BCIM sought appraisal in a petition filed in the Delaware Court of Chancery, captioned BCIM Strategic Value Master Fund, LP v. Nexeo Solutions, Inc., No. 2019-0363-KSJM. The terms of the agreement, among other matters, provide that, in exchange for a release and dismissal of all asserted claims, the Company will make a cash payment of $63.5 million to BCIM and, as a result, BCIM will relinquish any and all rights to approximately $15.1 million in cash and
1.5 million shares of Univar common stock valued at $35.5 million in the custody of Equiniti, the transfer agent. With this resolution, this cash and shares were returned to the Company. At June 30, 2019, the $63.5 million due to BCIM is recorded as a current liability within other accrued expenses and the returned Univar common stock has been recorded as canceled in the condensed consolidated balance sheets. The period during which former holders of Nexeo common stock were eligible to seek appraisal has expired, and no other such claims are pending.
Environmental
The Company is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively “environmental remediation work”) at approximately 130 locations, some that are now or were previously Company-owned/occupied and some that were never Company-owned/occupied (“non-owned sites”).
The Company’s environmental remediation work at some sites is being conducted pursuant to governmental proceedings or investigations. At other sites, the Company, with appropriate state or federal agency oversight and approval, is conducting the environmental remediation work voluntarily. The Company is currently undergoing remediation efforts or is in the process of active review of the need for potential remediation efforts at approximately 108 current or formerly Company-owned/occupied sites. In addition, the Company may be liable for a share of the clean-up of approximately 22 non-owned sites. These non-owned sites are typically (a) locations of independent waste disposal or recycling operations with alleged or confirmed contaminated soil and/or groundwater to which the Company may have shipped waste products or drums for re-conditioning, or (b) contaminated non-owned sites near historical sites owned or operated by the Company or its predecessors from which contamination is alleged to have arisen.
In determining the appropriate level of environmental reserves, the Company considers several factors such as information obtained from investigatory studies; changes in the scope of remediation; the interpretation, application and enforcement of laws and regulations; changes in the costs of remediation programs; the development of alternative cleanup technologies and methods; and the relative level of the Company’s involvement at various sites for which the Company is allegedly associated. It is the Company’s policy to record appropriate liabilities on a case by case basis when remedial efforts or claims are probable and the costs are reasonable to estimate. The Company continually monitors its own sites and work with other potentially responsible parties to deploy feasible remediation techniques. The recorded liabilities are adjusted periodically as remediation progresses or other relevant information becomes available. The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as components of planned remediation activities are completed and the scope, timing and costs of remediation are changed. Given the uncertainties regarding laws, regulations, technology, information related to sites and potentially responsible parties, the Company does not believe it is possible to develop an estimate of the range of reasonably possible losses in excess of the recorded liabilities. Project lives vary, depending on the specific site and type of remediation project. Associated cash payments are expected to be paid from operating activities.
Changes in total environmental liabilities are as follows:
 
 
Six months ended June 30,
(in millions)
 
2019
 
2018
Environmental liabilities at beginning of period
 
$
83.5

 
$
89.2

Revised obligation estimates
 
8.2

 
5.0

Environmental payments
 
(8.9
)
 
(8.0
)
Foreign exchange
 

 
(0.1
)
Environmental liabilities at end of period
 
$
82.8

 
$
86.1


Environmental liabilities of $31.0 million and $32.1 million were classified as current in other accrued expenses in the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018, respectively. The long-term portion of environmental liabilities is recorded in other long-term liabilities in the condensed consolidated balance sheets.
Customs and International Trade Laws
On April 3, 2019, the Company reached a settlement in a previously disclosed case with the Department of Justice (the “DOJ”) regarding saccharin that allegedly transshipped from the Peoples Republic of China (“China”) through the Republic of China (“Taiwan”) and entered into commerce of the United States between 2007 and 2012. Under the settlement, the Company agreed to pay $62.5 million to fully resolve the matter. The Company does not admit any liability and the DOJ has dismissed the complaint in its entirety.
v3.19.2
Leasing
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leasing
18. Leasing
The Company engages in leasing transactions to meet the needs of the business. The determination to lease, rather than purchase, an asset is primarily contingent upon capital requirements, duration of the forecasted business investment, and asset availability.
The Company determines if an arrangement is a lease at inception and all arrangements deemed to be leases are subject to an assessment to determine the classification between finance and operating leases. Operating leases are included in other assets, other accrued expenses, and other long-term liabilities on the condensed consolidated balance sheet for the period ended June 30, 2019. Finance leases are included in property, plant and equipment, net, current portion of long-term debt, and long-term debt on the condensed consolidated balance sheets.
Right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term as of the commencement date. The Company’s lease agreements have terms that include both lease and non-lease components. Lease component fees are included in the present value of future minimum lease payments. Conversely, non-lease components are not subject to capitalization and are expensed as incurred. Certain lease agreements include rental payments based on the usage of the equipment or adjustments subject to a change in an index. To the extent the variability in the lease payments is known or subject to a minimum floor, the fees would be included in the present value of the future minimum lease payments. Conversely, variable fees that are not known or subject to a minimum floor are expensed as incurred. The contractual interest rate is used to calculate the present value of the future minimum lease payments. In the event an arrangement excludes a stated interest rate, the Company uses an incremental borrowing rate based on Company and contract specific information available as of the commencement date to determine the present value of future minimum lease payments. The valuation of the ROU asset also includes lease payments made in advance of the lease commencement date and initial direct costs incurred to secure the lease and is reduced for lease incentives.
The Company leases certain warehouses and distribution centers, office space, transportation equipment, and other machinery and equipment. Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the condensed consolidated balance sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.
To the extent the Company is reasonably certain to exercise, the lease term related to outstanding leases include renewal or termination options that are at the Company’s sole discretion. Certain leases also include options to purchase the leased property, which are deemed to be finance leases to the extent the Company is reasonably certain to exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term; unless there is either a transfer of title or purchase option the Company is reasonably certain to exercise, which would necessitate the asset or leasehold improvement to be depreciated over the standard property, plant and equipment estimated useful lives.
The Company has certain leasing agreements, related to leased vehicles available to our sales personnel, that contain guaranteed residual value terms, which are not expected to be triggered. The Company’s leasing portfolio does not contain any material restrictive covenants.
The Company has rental or sublease income that is primarily derived from operating leases with third parties for the usage of idled real estate assets.
Leases
(in millions)
 
Condensed Consolidated Balance Sheet Classifications
 
June 30, 2019
Assets
 
 
 
 
Operating lease assets
 
Other assets
 
$
177.4

Finance lease assets
 
Property, plant and equipment, net (1)
 
64.2

Total lease assets
 
 
 
$
241.6

Liabilities
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of operating lease liabilities
 
Other accrued expenses
 
$
52.2

Current portion of finance lease liabilities
 
Current portion of long-term debt
 
19.0

Noncurrent liabilities:
 
 
 
 
Operating lease liabilities
 
Other long-term liabilities
 
130.5

Finance lease liabilities
 
Long-term debt
 
47.2

Total lease liabilities
 
 
 
$
248.9

 
(1)
Finance lease right-of-use assets are recorded net of accumulated amortization of $49.7 million as of June 30, 2019.
Lease Cost
(in millions)
 
Three months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
4.0

 
$

 
$
4.0

Outbound freight and handling
 
1.9

 

 
1.9

Warehousing, selling and administrative
 
6.5

 

 
6.5

Depreciation
 

 
4.8

 
4.8

Interest expense
 

 
0.7

 
0.7

Total gross lease component cost
 
$
12.4

 
$
5.5

 
$
17.9

Variable lease costs
 
 
 
 
 
0.7

Short-term lease costs
 
 
 
 
 
9.0

Total gross lease costs
 
 
 
 
 
$
27.6

Sublease income (1)
 
 
 
 
 
0.6

Total net lease cost
 
 
 
 
 
$
27.0


(in millions)
 
Six months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
7.7

 
$

 
$
7.7

Outbound freight and handling
 
3.7

 

 
3.7

Warehousing, selling and administrative
 
13.9

 

 
13.9

Depreciation
 

 
9.4

 
9.4

Interest expense
 

 
1.3

 
1.3

Total gross lease component cost
 
$
25.3

 
$
10.7

 
$
36.0

Variable lease costs
 
 
 
 
 
0.9

Short-term lease costs
 
 
 
 
 
11.6

Total gross lease costs
 
 
 
 
 
$
48.5

Sublease income (1)
 
 
 
 
 
1.6

Total net lease cost
 
 
 
 
 
$
46.9

 
(1)
Sublease income for the three and six months ended June 30, 2019 excludes rental income from owned properties of $1.3 million and $1.5 million, respectively, which is included in net sales.
Maturity of Lease Liabilities
(in millions)
 
Operating Leases
 
Finance Leases
 
Total
2019
 
$
32.9

 
$
10.3

 
$
43.2

2020
 
51.7

 
18.5

 
70.2

2021
 
41.8

 
14.7

 
56.5

2022
 
32.1

 
11.4

 
43.5

2023
 
21.0

 
2.9

 
23.9

2024 and After
 
35.8

 
1.1

 
36.9

Total lease payments
 
$
215.3

 
$
58.9

 
$
274.2

Less: Interest
 
33.5

 
4.6

 
 
Present value of lease liabilities, excluding guaranteed residual values (1)
 
$
181.8

 
$
54.3

 
 
Plus: Present value of guaranteed residual values (1)
 
0.9

 
11.9

 
 
Present value of lease liabilities
 
$
182.7

 
$
66.2

 
 
 
(1)
The Company is not expected to have cash outflows related to the present value of guaranteed residual values. The Company’s current present value of lease liabilities includes guaranteed residual values related to leases in effect prior to the ASC 842 due to the Company’s practical expedient elections denoted within “Note 2: Significant accounting policies.” The gross value of the guaranteed residual values for operating and finance leases is $1.0 million and $13.1 million as of June 30, 2019, respectively.
Lease Term and Discount Rate
 
 
June 30, 2019
Weighted-average remaining lease term (years)
 
 
Operating leases
 
5.0

Finance leases
 
3.2

Weighted-average discount rate
 
 
Operating leases
 
4.99
%
Finance leases
 
4.35
%
Other Information
(in millions)
 
Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
 
Operating cash flows from operating leases
 
$
28.9

Operating cash flows from finance leases
 
1.3

Financing cash flows from finance leases
 
9.6


v3.19.2
Segments
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segments
19. Segments
Management monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Management evaluates performance on the basis of Adjusted EBITDA. Adjusted EBITDA is defined as consolidated net income (loss), plus the sum of: net (loss) income from discontinued operations, interest expense, net of interest income; income tax expense (benefit); depreciation; amortization; loss on extinguishment of debt; other operating expenses, net; and other (expense) income, net.
Transfer prices between operating segments are set on an arms-length basis in a similar manner to transactions with third parties. Corporate operating expenses that directly benefit segments have been allocated to the operating segments. Allocable operating expenses are identified through a review process by management. These costs are allocated to the operating segments on a basis that reasonably approximates the use of services. This is typically measured on a weighted distribution of margin, asset, headcount or time spent.
Other/Eliminations represents the elimination of inter-segment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively.
Financial information for the Company’s segments is as follows:
(in millions)

USA

Canada

EMEA

LATAM

Other/
Eliminations
(1)

Consolidated
 

Three months ended June 30, 2019
Net sales:












External customers

$
1,605.3


$
404.8


$
457.9


$
116.6


$

 
$
2,584.6

Inter-segment

23.4


1.7


1.0




(26.1
)
 

Total net sales

$
1,628.7


$
406.5


$
458.9


$
116.6


$
(26.1
)
 
$
2,584.6

Cost of goods sold (exclusive of depreciation)

1,254.6


338.0


348.7


92.1


(26.1
)
 
2,007.3

Outbound freight and handling

66.4


11.6


14.9


2.5



 
95.4

Warehousing, selling and administrative

180.1


23.1


57.1


12.6


7.9

 
280.8

Adjusted EBITDA

$
127.6


$
33.8


$
38.2


$
9.4


$
(7.9
)
 
$
201.1

Other operating expenses, net

 
 
 
 
 
 
 
 
 
 
63.8

Depreciation

 
 
 
 
 
 
 
 
 
 
39.7

Amortization

 
 
 
 
 
 
 
 
 
 
18.6

Interest expense, net

 
 
 
 
 
 
 
 
 
 
37.9

Other expense, net

 
 
 
 
 
 
 
 
 
 
5.6

Income tax expense

 
 
 
 
 
 
 
 
 
 
18.5

Net income from continuing operations
 
 
 
 
 
 
 
 
 
 
 
$
17.0

Net loss from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
$
(0.7
)
Net income

 
 
 
 
 
 
 
 
 
 
$
16.3

Total assets

$
5,600.9

 
$
1,715.1

 
$
1,030.1

 
$
317.1

 
$
(1,532.1
)
 
$
7,131.1




(in millions)

USA

Canada

EMEA

LATAM

Other/
Eliminations
(1)

Consolidated
 

Three months ended June 30, 2018
Net sales:












External customers

$
1,309.8


$
450.9


$
511.9


$
100.0


$


$
2,372.6

Inter-segment

37.9


2.2


1.2




(41.3
)


Total net sales

$
1,347.7


$
453.1


$
513.1


$
100.0


$
(41.3
)

$
2,372.6

Cost of goods sold (exclusive of depreciation)

1,056.9


384.2


394.9


77.4


(41.3
)

1,872.1

Outbound freight and handling

56.7


12.0


15.8


2.0




86.5

Warehousing, selling and administrative

136.9


22.3


62.3


11.5


7.9


240.9

Adjusted EBITDA

$
97.2


$
34.6


$
40.1


$
9.1


$
(7.9
)

$
173.1

Other operating expenses, net











11.0

Depreciation











30.9

Amortization











13.8

Interest expense, net











32.0

Other expense, net











2.1

Income tax expense











27.2

Net income
 










$
56.1

Total assets

$
3,310.1


$
1,758.6


$
1,017.3


$
220.6


$
(597.5
)

$
5,709.1



(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Other/
Eliminations
(1)
 
Consolidated
 
 
Six months ended June 30, 2019
Net sales:
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
2,912.5

 
$
678.6

 
$
941.6

 
$
211.9

 
$

 
$
4,744.6

Inter-segment
 
48.3

 
2.8

 
2.0

 

 
(53.1
)
 

Total net sales
 
$
2,960.8

 
$
681.4

 
$
943.6

 
$
211.9

 
$
(53.1
)
 
$
4,744.6

Cost of goods sold (exclusive of depreciation)
 
2,279.4

 
559.4

 
717.2

 
168.0

 
(53.1
)
 
3,670.9

Outbound freight and handling
 
122.0

 
21.3

 
30.5

 
4.5

 

 
178.3

Warehousing, selling and administrative
 
334.7

 
45.2

 
115.6

 
24.3

 
14.4

 
534.2

Adjusted EBITDA
 
$
224.7

 
$
55.5

 
$
80.3

 
$
15.1

 
$
(14.4
)
 
$
361.2

Other operating expenses, net
 
 
 
 
 
 
 
 
 
 
 
228.6

Depreciation
 
 
 
 
 
 
 
 
 
 
 
72.9

Amortization
 
 
 
 
 
 
 
 
 
 
 
33.0

Interest expense, net
 
 
 
 
 
 
 
 
 
 
 
72.1

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
 
 
 
0.7

Other expense, net
 
 
 
 
 
 
 
 
 
 
 
11.7

Income tax benefit
 
 
 
 
 
 
 
 
 
 
 
(4.8
)
Net loss from continuing operations
 
 
 
 
 
 
 
 
 
 
 
$
(53.0
)
Net income from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
$
5.4

Net loss
 
 
 
 
 
 
 
 
 
 
 
$
(47.6
)
Total assets
 
$
5,600.9

 
$
1,715.1

 
$
1,030.1

 
$
317.1

 
$
(1,532.1
)
 
$
7,131.1




(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Other/
Eliminations
(1)
 
Consolidated
 
 
Six months ended June 30, 2018
Net sales:
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
2,514.2

 
$
764.3

 
$
1,050.5

 
$
201.6

 
$

 
$
4,530.6

Inter-segment
 
73.0

 
4.2

 
2.6

 
0.1

 
(79.9
)
 

Total net sales
 
$
2,587.2

 
$
768.5

 
$
1,053.1

 
$
201.7

 
$
(79.9
)
 
$
4,530.6

Cost of goods sold (exclusive of depreciation)
 
2,017.5

 
637.2

 
810.9

 
157.8

 
(79.9
)
 
3,543.5

Outbound freight and handling
 
106.6

 
22.4

 
32.8

 
4.0

 

 
165.8

Warehousing, selling and administrative
 
274.7

 
44.8

 
124.6

 
23.0

 
14.8

 
481.9

Adjusted EBITDA
 
$
188.4

 
$
64.1

 
$
84.8

 
$
16.9

 
$
(14.8
)
 
$
339.4

Other operating expenses, net
 
 
 
 
 
 
 
 
 
 
 
24.6

Depreciation
 
 
 
 
 
 
 
 
 
 
 
62.3

Amortization
 
 
 
 
 
 
 
 
 
 
 
27.2

Interest expense, net
 
 
 
 
 
 
 
 
 
 
 
66.9

Other income, net
 
 
 
 
 
 
 
 
 
 
 
(0.5
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
37.4

Net income
 
 
 
 
 
 
 
 
 
 
 
$
121.5

Total assets
 
$
3,310.1

 
$
1,758.6

 
$
1,017.3

 
$
220.6

 
$
(597.5
)
 
$
5,709.1

(1)
Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively.
v3.19.2
Significant accounting policies (Policies)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
The condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) as applicable to interim financial reporting. Unless otherwise indicated, all financial data presented in these condensed consolidated financial statements are expressed in US dollars. These condensed consolidated financial statements, in the Company’s opinion, include all adjustments consisting of normal recurring accruals necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, comprehensive income, cash flows and changes in stockholders’ equity. The results of operations for the periods presented are not necessarily indicative of the operating results that may be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.
The condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. Subsidiaries are consolidated if the Company has a controlling financial interest, which may exist based on ownership of a majority of the voting interest, or based on the Company’s determination that it is the primary beneficiary of a variable interest entity (“VIE”) or if otherwise required by US GAAP. The Company did not have any material interests in VIEs during the periods presented in these condensed consolidated financial statements. All intercompany balances and transactions are eliminated in consolidation.
The preparation of condensed consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ materially from these estimates.
Recently issued and adopted accounting pronouncements and Accounting pronouncements issued but not yet adopted
Recently issued and adopted accounting pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 “Leases” (Topic 842), which supersedes the lease recognition requirements in ASC Topic 840, “Leases.” On January 1, 2019, the Company adopted the new Accounting Standards Codification (“ASC”) Topic 842 (“new lease standard”) using the modified retrospective method. The Company has elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the historical lease classification to carry forward. The Company also made an accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet. The Company will recognize short-term lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. The Company recognized the cumulative effect of initially applying the new lease standard as an adjustment to the 2019 opening balance sheet. The cumulative effect of the standard’s adoption also includes adjustments related to previously unrecognized finance leases. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows:
(in millions)
 
Balance at December 31, 2018
 
Adjustments due to ASU 2016-02
 
Balance at January 1, 2019
Assets
 
 
 
 
 
 
Property, plant and equipment, net
 
$
955.8

 
$
5.4

 
$
961.2

Other assets
 
84.3

 
166.8

 
251.1

Liabilities
 
 
 
 
 
 
Current portion of long-term debt
 
$
21.7

 
$
(4.5
)
 
$
17.2

Other accrued expenses
 
285.8

 
43.8

 
329.6

Long-term debt
 
2,350.4

 
9.9

 
2,360.3

Other long-term liabilities
 
98.4

 
123.0

 
221.4


In February 2018, the FASB issued ASU 2018-02 “Income Statement - Reporting Comprehensive Income” (Topic 220)  “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“AOCI”) which gave entities the option to reclassify certain tax effects the FASB refers to as having been stranded, resulting from the Tax Cuts and Jobs Act from AOCI to retained earnings. The Company adopted the ASU as of January 1, 2019 and elected to reclassify $3.2 million of the stranded tax effects from accumulated other comprehensive loss to accumulated deficit.
The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Effective date
2018-16
 
Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 
January 1, 2019

Accounting pronouncements issued and not yet adopted
In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement” (Topic 820) - “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The ASU amends the requirements related to fair value disclosures to include new disclosure requirements and eliminates or modifies certain historic disclosures. The ASU amendment was part of the FASB’s disclosure framework project that is designed to increase the effectiveness of companies’ disclosures to the users of the financial statements and footnotes. This guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within such fiscal years. Early adoption is permitted. The Company is currently determining the impact to the Company’s disclosure requirements, which will be reflected in the footnote disclosures subsequent to the ASU adoption on January 1, 2020.
In August 2018, the FASB issued ASU 2018-14 “Compensation - Retirement Benefits - Defined Benefit Plans - General” (Subtopic 715-20) - “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” The ASU amends the requirements related to defined benefit pension and other postretirement plan disclosures to include new disclosure requirements and eliminates or clarifies certain historic disclosures. The ASU amendment was part of the FASB’s disclosure framework project that is designed to increase the effectiveness of companies’ disclosures to the users of the financial statements and footnotes. This guidance will be effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently determining the impact to the Company’s disclosure requirements, which will be reflected in the footnote disclosures subsequent to the ASU adoption on January 1, 2021.
The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Expected adoption date
2018-18
 
Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606
 
January 1, 2020
2018-17
 
Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities
 
January 1, 2020
2018-15
 
Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
 
January 1, 2020
2016-13
 
Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
 
January 1, 2020

v3.19.2
Significant accounting policies (Tables)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The cumulative effect of the changes made to the January 1, 2019 condensed consolidated balance sheet for the adoption of ASU 2016-02 “Leases” (Topic 842) is as follows:
(in millions)
 
Balance at December 31, 2018
 
Adjustments due to ASU 2016-02
 
Balance at January 1, 2019
Assets
 
 
 
 
 
 
Property, plant and equipment, net
 
$
955.8

 
$
5.4

 
$
961.2

Other assets
 
84.3

 
166.8

 
251.1

Liabilities
 
 
 
 
 
 
Current portion of long-term debt
 
$
21.7

 
$
(4.5
)
 
$
17.2

Other accrued expenses
 
285.8

 
43.8

 
329.6

Long-term debt
 
2,350.4

 
9.9

 
2,360.3

Other long-term liabilities
 
98.4

 
123.0

 
221.4


The Company also adopted the following standard during 2019, which did not have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Effective date
2018-16
 
Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
 
January 1, 2019

Schedule of Prospective Adoption of New Accounting Pronouncements
The Company has not yet adopted the following standards, none of which is expected to have a material impact to the financial statements or financial statement disclosures:
Standard
 
 
 
Expected adoption date
2018-18
 
Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606
 
January 1, 2020
2018-17
 
Consolidation (Topic 810) - Targeted Improvements to Related Party Guidance for Variable Interest Entities
 
January 1, 2020
2018-15
 
Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
 
January 1, 2020
2016-13
 
Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
 
January 1, 2020

v3.19.2
Business combinations (Tables)
6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Preliminary Purchase Price Acquisition
The preliminary purchase price allocation at February 28, 2019 is as follows:
(in millions)
 
 
Trade accounts receivable, net
 
$
286.9

Inventories
 
149.4

Prepaid expenses and other current assets
 
27.2

Assets held for sale
 
923.8

Property, plant and equipment, net
 
227.5

Goodwill
 
689.1

Intangible assets, net
 
173.9

Other assets
 
39.8

Trade accounts payable
 
(137.7
)
Other accrued expenses
 
(110.6
)
Liabilities held for sale
 
(283.8
)
Deferred tax liabilities
 
(110.7
)
Other long-term liabilities
 
(70.0
)
Purchase consideration, net of cash
 
$
1,804.8


Business Acquisition, Pro Forma Information
The unaudited pro forma financial information is as follows:
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Net sales
 
$
2,584.6

 
$
2,906.4

 
$
5,070.6

 
$
5,588.5

Net income (loss) from continuing operations
 
19.2

 
71.9

 
(40.6
)
 
157.3


The amounts of net sales and net loss from continuing operations related to the Nexeo chemical distribution business, included in the Company’s condensed consolidated statements of operations from March 1, 2019 to June 30, 2019 are as follows:
(in millions)
 
 
Net sales
 
$
622.3

Net loss from continuing operations
 
(17.0
)

v3.19.2
Discontinued operations (Tables)
6 Months Ended
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Operating results of discontinued operations
The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the three and six months ended June 30, 2019, as presented in “Net (loss) income from discontinued operations” on the condensed consolidated statements of operations.
(in millions)
 
Three months ended June 30, 2019
 
Six months ended June 30, 2019
External sales
 
$

 
$
156.9

Cost of goods sold (exclusive of depreciation)
 

 
136.7

Outbound freight and handling
 

 
3.5

Warehousing, selling and administrative
 

 
7.9

Other expenses
 

 
1.4

Income from discontinued operations before income taxes
 
$

 
$
7.4

Income tax expense from discontinued operations (1)
 
0.7

 
2.0

Net (loss) income from discontinued operations
 
$
(0.7
)
 
$
5.4


 
(1)
The provision for income taxes for the three months ended June 30, 2019 includes an adjustment to the tax expense related to the one month operations reported as of March 31, 2019.
v3.19.2
Revenue (Tables)
6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates external customer net sales by major stream:
(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Consolidated
 
 
Three months ended June 30, 2019
Chemical Distribution
 
$
1,515.6

 
$
225.1

 
$
457.5

 
$
114.6

 
$
2,312.8

Crop Sciences
 

 
167.1

 

 

 
167.1

Services
 
89.7

 
12.6

 
0.4

 
2.0

 
104.7

Total external customer net sales
 
$
1,605.3

 
$
404.8

 
$
457.9

 
$
116.6

 
$
2,584.6

(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Consolidated
 
 
Six months ended June 30, 2019
Chemical Distribution
 
$
2,763.1

 
$
436.8

 
$
940.9

 
$
207.2

 
$
4,348.0

Crop Sciences
 

 
217.6

 

 

 
217.6

Services
 
149.4

 
24.2

 
0.7

 
4.7

 
179.0

Total external customer net sales
 
$
2,912.5

 
$
678.6

 
$
941.6

 
$
211.9

 
$
4,744.6


Schedule of Deferred Revenue The following table provides information pertaining to the deferred revenue balance and account activity:
(in millions)
 
 
Deferred revenue as of January 1, 2019
 
$
45.6

Deferred revenue as of June 30, 2019
 
6.4

Revenue recognized that was included in the deferred revenue balance at the beginning of the period
 
44.4


v3.19.2
Other operating expenses, net (Tables)
6 Months Ended
Jun. 30, 2019
Other Income and Expenses [Abstract]  
Schedule of Other Operating Expenses
Other operating expenses, net consisted of the following:
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Acquisition and integration related expenses
 
$
32.6

 
$
1.0

 
$
109.7

 
$
1.4

Stock-based compensation expense
 
11.3

 
4.3

 
17.3

 
13.7

Restructuring charges
 
0.5

 

 
0.6

 
0.5

Other employee termination costs
 
6.2

 
4.4

 
19.1

 
6.8

Saccharin legal settlement
 

 

 
62.5

 

Other
 
13.2

 
1.3

 
19.4

 
2.2

Total other operating expenses, net
 
$
63.8

 
$
11.0

 
$
228.6

 
$
24.6


v3.19.2
Restructuring charges (Tables)
6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Schedule of Accrued Liabilities
The following table summarizes activity related to accrued liabilities associated with restructuring:
(in millions)
 
January 1, 2019
 
Charge to 
earnings
 
Cash
paid
 
Non-cash 
and other
 
June 30, 2019
Employee termination costs
 
$
4.2

 
$
0.4

 
$
(3.2
)
 
$

 
$
1.4

Facility exit costs
 
5.0

 
0.1

 
(0.1
)
 

 
5.0

Other exit costs
 
0.2

 
0.1

 

 

 
0.3

Total
 
$
9.4

 
$
0.6

 
$
(3.3
)
 
$

 
$
6.7


(in millions)
 
January 1, 2018
 
Charge to 
earnings
 
Cash 
paid
 
Non-cash 
and other
 
December 31, 2018
Employee termination costs
 
$
3.0

 
$
5.3

 
$
(3.4
)
 
$
(0.7
)
 
$
4.2

Facility exit costs
 
10.2

 
(0.7
)
 
(4.4
)
 
(0.1
)
 
5.0

Other exit costs
 
(0.5
)
 
0.2

 
(0.1
)
 
0.6

 
0.2

Total
 
$
12.7

 
$
4.8

 
$
(7.9
)
 
$
(0.2
)
 
$
9.4


v3.19.2
Other (expense) income, net (Tables)
6 Months Ended
Jun. 30, 2019
Other Income and Expenses [Abstract]  
Schedule of Other income (expense), net
Other (expense) income, net consisted of the following gains (losses):
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019

2018
 
2019
 
2018
Foreign currency transactions
 
$
(2.1
)

$
(4.2
)
 
$
(2.8
)
 
$
(4.3
)
Foreign currency denominated loans revaluation
 
(4.7
)

(2.6
)
 
0.5

 
(1.4
)
Undesignated foreign currency derivative instruments (1)
 
4.3


2.2

 
(5.6
)
 
0.9

Undesignated interest rate swap contracts (1)
 
(3.0
)
 

 
(2.8
)
 

Non-operating retirement benefits (2)
 
0.6

 
3.4

 
1.2

 
6.9

Other
 
(0.7
)

(0.9
)
 
(2.2
)
 
(1.6
)
Total other (expense) income, net
 
$
(5.6
)
 
$
(2.1
)
 
$
(11.7
)
 
$
0.5

 
(1)
Refer to “Note 16: Derivatives” for more information.
(2)
Refer to “Note 9: Employee benefit plans” for more information.
v3.19.2
Employee benefit plans (Tables)
6 Months Ended
Jun. 30, 2019
Postemployment Benefits [Abstract]  
Components of Net Periodic Benefit Cost (Credit)
The following table summarizes the components of net periodic cost (benefit) recognized in the condensed consolidated statements of operations: 
 
 
Domestic - Defined Benefit Pension Plans
 

Three months ended
June 30,
 
Six months ended
June 30,
(in millions)

2019

2018
 
2019
 
2018
Service cost (1)
 
$

 
$

 
$

 
$

Interest cost (2)

6.8


6.8

 
13.6

 
13.6

Expected return on plan assets (2)

(6.3
)

(7.8
)
 
(12.6
)
 
(15.6
)
Net periodic cost (benefit)

$
0.5

 
$
(1.0
)
 
$
1.0

 
$
(2.0
)

 
 
Foreign - Defined Benefit Pension Plans
 
 
Three months ended
June 30,
 
Six months ended
June 30,
(in millions)
 
2019
 
2018
 
2019
 
2018
Service cost (1)
 
$
0.6

 
$
0.7

 
$
1.2

 
$
1.4

Interest cost (2)
 
3.9

 
3.9

 
7.8

 
7.9

Expected return on plan assets (2)
 
(5.1
)
 
(6.4
)
 
(10.1
)
 
(12.9
)
Prior service cost (2)
 
0.1

 
0.1

 
0.1

 
0.1

Net periodic benefit
 
$
(0.5
)
 
$
(1.7
)
 
$
(1.0
)
 
$
(3.5
)
 
(1)
Service cost is included in warehouse, selling and administrative expenses.
(2)
These amounts are included in other (expense) income, net.
v3.19.2
Earnings per share (Tables)
6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Summary of Computations of Basic and Diluted Earnings Per Share
The following table presents the basic and diluted earnings per share computations:
 
 
Three months ended June 30,
 
Six months ended June 30,
(in millions, except per share data)
 
2019
 
2018
 
2019
 
2018
Basic:
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
$
17.0

 
$
56.1

 
$
(53.0
)
 
$
121.5

Net (loss) income from discontinued operations
 
(0.7
)
 

 
5.4

 

Net income (loss)
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

Less: earnings allocated to participating securities
 

 
0.1

 

 
0.2

Earnings allocated to common shares outstanding
 
$
16.3

 
$
56.0

 
$
(47.6
)
 
$
121.3

 
 


 
 
 
 
 
 
Weighted average common shares outstanding
 
169.8

 
141.1

 
159.5

 
141.0

Basic income (loss) per common share from continuing operations
 
$
0.10

 
$
0.40

 
$
(0.33
)
 
$
0.86

Basic income per common share from discontinued operations
 

 

 
0.03

 

Basic income (loss) per common share (2)
 
$
0.10

 
$
0.40

 
$
(0.30
)
 
$
0.86

 
 
 
 
 
 
 
 
 
Diluted:
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
$
17.0

 
$
56.1

 
$
(53.0
)
 
$
121.5

Net (loss) income from discontinued operations
 
(0.7
)
 

 
5.4

 

Net income (loss)
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

Less: earnings allocated to participating securities
 

 

 

 

Earnings allocated to common shares outstanding
 
$
16.3

 
$
56.1

 
$
(47.6
)
 
$
121.5

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding
 
169.8

 
141.1

 
159.5

 
141.0

Effect of dilutive securities: stock compensation plans (1)
 
0.9

 
0.9

 

 
1.0

Weighted average common shares outstanding – diluted
 
170.7

 
142.0

 
159.5

 
142.0

Diluted income (loss) per common share from continuing operations
 
$
0.10

 
$
0.40

 
$
(0.33
)
 
$
0.86

Diluted income per common share from discontinued operations
 

 

 
0.03

 

Diluted income (loss) per common share (2)
 
$
0.10

 
$
0.40

 
$
(0.30
)
 
$
0.86

 
(1)
Stock options to purchase 2.9 million and 1.5 million shares of common stock and restricted stock of nil were outstanding during the three months ended June 30, 2019 and 2018, respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Stock options to purchase 3.0 million and 1.4 million shares of common stock and restricted stock of 0.8 million and nil were outstanding during the six months ended June 30, 2019 and 2018, respectively, but were not included in the calculation of diluted income per share as the impact of these awards would have been anti-dilutive. Diluted shares outstanding also did not include 7.6 million and 5.1 million shares of common stock issuable on the exercise of warrants because the warrants were out-of-the-money for the three and six months ended June 30, 2019.
(2)
As a result of changes in the number of shares outstanding during the year and rounding, the sum of the quarters’ earnings per share may not equal the earnings per share for any year-to-date period.
v3.19.2
Accumulated other comprehensive loss (Tables)
6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Loss by Component Net of Tax
The following tables present the changes in accumulated other comprehensive loss by component, net of tax:
(in millions)
 
Cash flow hedges
 
Defined
benefit
pension items
 
Currency
translation
items
 
Total
Balance as of December 31, 2018
 
$
8.9

 
$
(1.1
)
 
$
(381.0
)
 
$
(373.2
)
Impact due to adoption of ASU 2018-02 (1)
 
1.5

 


 
(4.7
)
 
(3.2
)
Other comprehensive (loss) income before reclassifications
 
(18.6
)
 

 
19.8

 
1.2

Amounts reclassified from accumulated other comprehensive loss
 
(5.6
)
 
0.1

 

 
(5.5
)
Net current period other comprehensive (loss) income
 
$
(22.7
)
 
$
0.1

 
$
15.1

 
$
(7.5
)
Balance as of June 30, 2019
 
$
(13.8
)
 
$
(1.0
)
 
$
(365.9
)
 
$
(380.7
)
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2017
 
$
6.7

 
$
(1.2
)
 
$
(284.0
)
 
$
(278.5
)
Impact due to adoption of ASU 2017-12 (2)
 
0.5

 

 

 
0.5

Other comprehensive income (loss) before reclassifications
 
11.6

 

 
(63.0
)
 
(51.4
)
Amounts reclassified from accumulated other comprehensive loss
 
$
(2.2
)
 
$
0.1

 
$

 
$
(2.1
)
Net current period other comprehensive income (loss)
 
$
9.9

 
$
0.1

 
$
(63.0
)
 
$
(53.0
)
Balance as of June 30, 2018
 
$
16.6

 
$
(1.1
)
 
$
(347.0
)
 
$
(331.5
)

 
(1)
Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “Note 2: Significant accounting policies” for more information.
(2)
Adjusted due to the adoption of ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018.
Summary of Amounts Reclassified From Accumulated Other Comprehensive Loss
The following is a summary of the amounts reclassified from accumulated other comprehensive loss to net (loss) income:
 
 
Three months ended June 30,
 
 
(in millions)
 
2019 (1)
 
2018 (1)
 
Location of impact on
  statement of operations  
Amortization of defined benefit pension items:
 
 
 
 
 
 
Prior service cost
 
$
0.1

 
$
0.1

 
Other (expense) income, net
Tax expense
 

 

 
Income tax expense (benefit)
Net of tax
 
$
0.1

 
$
0.1

 
 
Cash flow hedges:
 
 
 
 
 
 
Interest rate swap contracts
 
$
(3.7
)
 
$
(3.0
)
 
Interest expense
Tax expense
 
0.9

 
0.8

 
Income tax expense (benefit)
Net of tax
 
$
(2.8
)
 
$
(2.2
)
 
 
Total reclassifications for the period
 
$
(2.7
)
 
$
(2.1
)
 
 
 
 
Six months ended June 30,
 
 
(in millions)
 
2019 (1)
 
2018 (1)
 
Location of impact on
  statement of operations  
Amortization of defined benefit pension items:
 
 
 
 
 
 
Prior service cost
 
$
0.1

 
$
0.1

 
Other (expense) income, net
Tax expense
 

 

 
Income tax expense (benefit)
Net of tax
 
$
0.1

 
$
0.1

 
 
Cash flow hedges:
 
 
 
 
 
 
Interest rate swap contracts
 
$
(7.5
)
 
$
(3.0
)
 
Interest expense
Tax expense
 
1.9

 
0.8

 
Income tax expense (benefit)
Net of tax
 
$
(5.6
)
 
$
(2.2
)
 
 
Total reclassifications for the period
 
$
(5.5
)
 
$
(2.1
)
 
 
 
(1)
Amounts in parentheses indicate credits to net income in the condensed consolidated statement of operations.
v3.19.2
Debt (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Summary of Short Term Financing
Short-term financing consisted of the following:
(in millions)
 
June 30, 2019
 
December 31, 2018
Amounts drawn under credit facilities
 
$
1.5

 
$
4.7

Bank overdrafts
 
1.7

 
3.4

Total short-term financing
 
$
3.2

 
$
8.1


Schedule of Long Term Debt
Long-term debt consisted of the following:
(in millions)
 
June 30, 2019
 
December 31, 2018
Senior Term Loan Facilities:




Term B Loan due 2024, variable interest rate of 4.65% and 4.77% at June 30, 2019 and December 31, 2018, respectively

$
1,438.0


$
1,747.8

Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at June 30, 2019
 
398.2

 

Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019
 
245.0

 

Asset Backed Loan (ABL) Facilities:




North American ABL Facility due 2024, variable interest rate of 3.98% at June 30, 2019

397.5



Canadian ABL Term Loan due 2022, variable interest rate of 4.21% at June 30, 2019
 
175.7

 

Euro ABL Facility due 2023, variable interest rate of 1.75% at June 30, 2019 and December 31, 2018
 
46.6

 
58.5

North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019)
 

 
134.7

Senior Unsecured Notes:




Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at June 30, 2019 and December 31, 2018

399.5


399.5

Finance lease obligations

66.2


54.8

Total long-term debt before discount

$
3,166.7


$
2,395.3

Less: unamortized debt issuance costs and discount on debt

(30.6
)

(23.2
)
Total long-term debt

$
3,136.1


$
2,372.1

Less: current maturities

(19.0
)

(21.7
)
Total long-term debt, excluding current maturities

$
3,117.1


$
2,350.4


v3.19.2
Supplemental balance sheet information (Tables)
6 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Property, Plant and Equipment, Net
Property, plant and equipment, net
(in millions)
 
June 30, 2019
 
December 31, 2018
Property, plant and equipment, at cost
 
$
2,193.5

 
$
1,925.9

Less: accumulated depreciation
 
(1,040.0
)
 
(970.1
)
Property, plant and equipment, net
 
$
1,153.5

 
$
955.8

Lease cost, term, discount rate and other information
Finance lease assets, net
Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets:
(in millions)
 
June 30, 2019
 
December 31, 2018
Finance lease assets, at cost
 
$
113.9

 
$
89.4

Less: accumulated depreciation
 
(49.7
)
 
(37.4
)
Finance lease assets, net
 
$
64.2

 
$
52.0


Lease Term and Discount Rate
 
 
June 30, 2019
Weighted-average remaining lease term (years)
 
 
Operating leases
 
5.0

Finance leases
 
3.2

Weighted-average discount rate
 
 
Operating leases
 
4.99
%
Finance leases
 
4.35
%
Other Information
(in millions)
 
Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
 
Operating cash flows from operating leases
 
$
28.9

Operating cash flows from finance leases
 
1.3

Financing cash flows from finance leases
 
9.6


Lease Cost
(in millions)
 
Three months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
4.0

 
$

 
$
4.0

Outbound freight and handling
 
1.9

 

 
1.9

Warehousing, selling and administrative
 
6.5

 

 
6.5

Depreciation
 

 
4.8

 
4.8

Interest expense
 

 
0.7

 
0.7

Total gross lease component cost
 
$
12.4

 
$
5.5

 
$
17.9

Variable lease costs
 
 
 
 
 
0.7

Short-term lease costs
 
 
 
 
 
9.0

Total gross lease costs
 
 
 
 
 
$
27.6

Sublease income (1)
 
 
 
 
 
0.6

Total net lease cost
 
 
 
 
 
$
27.0


(in millions)
 
Six months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
7.7

 
$

 
$
7.7

Outbound freight and handling
 
3.7

 

 
3.7

Warehousing, selling and administrative
 
13.9

 

 
13.9

Depreciation
 

 
9.4

 
9.4

Interest expense
 

 
1.3

 
1.3

Total gross lease component cost
 
$
25.3

 
$
10.7

 
$
36.0

Variable lease costs
 
 
 
 
 
0.9

Short-term lease costs
 
 
 
 
 
11.6

Total gross lease costs
 
 
 
 
 
$
48.5

Sublease income (1)
 
 
 
 
 
1.6

Total net lease cost
 
 
 
 
 
$
46.9

 
(1)
Sublease income for the three and six months ended June 30, 2019 excludes rental income from owned properties of $1.3 million and $1.5 million, respectively, which is included in net sales
Schedule of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets
Intangible assets, net
The gross carrying amounts and accumulated amortization of the Company’s intangible assets were as follows:
 
 
June 30, 2019
 
December 31, 2018
(in millions)
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
1,025.9

 
$
(655.5
)
 
$
370.4

 
$
846.1

 
$
(620.3
)
 
$
225.8

Other
 
175.8

 
(165.2
)
 
10.6

 
175.1

 
(162.8
)
 
12.3

Total intangible assets
 
$
1,201.7

 
$
(820.7
)
 
$
381.0

 
$
1,021.2

 
$
(783.1
)
 
$
238.1


v3.19.2
Fair value measurements (Tables)
6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the Company’s gross assets and liabilities measured on a recurring basis:
 
 
Level 2
 
Level 3
(in millions)
 
June 30, 2019
 
December 31, 2018
 
June 30, 2019
 
December 31, 2018
Financial current assets:
 
 
 
 
 
 
 
 
Forward currency contracts
 
$
2.4

 
$
0.3

 
$

 
$

Interest rate swap contracts
 

 
12.4

 

 

Financial non-current assets:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 

 
1.5

 

 

Financial current liabilities:
 
 
 
 
 
 
 
 
Forward currency contracts
 
0.2

 
0.2

 

 

Interest rate swap contracts
 
0.4

 

 

 

Financial non-current liabilities:
 
 
 
 
 
 
 
 
Interest rate swap contracts
 
20.9

 

 

 

Warrant liability
 

 

 
23.4

 


Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Level 3)
The following table is a reconciliation of the fair value measurements that use significant unobservable inputs (Level 3), which consists of the warrant liability related to the Nexeo acquisition.
(in millions)
 
Warrant Liability
Fair value as of December 31, 2018
 
$

Additions
 
26.0

Fair value adjustments
 
(2.6
)
Fair value as of June 30, 2019
 
$
23.4


Estimated Fair Value of Financial Instruments Not Carried at Fair Value
The estimated fair value of financial instruments not carried at fair value in the condensed consolidated balance sheets were as follows:
 
 
June 30, 2019
 
December 31, 2018
(in millions)
 
Carrying 
Amount
 
Fair
Value
 
Carrying 
Amount
 
Fair
Value
Financial liabilities:
 
 
 
 
 
 
 
 
Long-term debt including current portion (Level 2)
 
$
3,136.1

 
$
3,173.9

 
$
2,372.1

 
$
2,314.3


v3.19.2
Commitments and contingencies (Tables)
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Changes in Total Environmental Liabilities
Changes in total environmental liabilities are as follows:
 
 
Six months ended June 30,
(in millions)
 
2019
 
2018
Environmental liabilities at beginning of period
 
$
83.5

 
$
89.2

Revised obligation estimates
 
8.2

 
5.0

Environmental payments
 
(8.9
)
 
(8.0
)
Foreign exchange
 

 
(0.1
)
Environmental liabilities at end of period
 
$
82.8

 
$
86.1


v3.19.2
Leasing (Tables)
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases
Leases
(in millions)
 
Condensed Consolidated Balance Sheet Classifications
 
June 30, 2019
Assets
 
 
 
 
Operating lease assets
 
Other assets
 
$
177.4

Finance lease assets
 
Property, plant and equipment, net (1)
 
64.2

Total lease assets
 
 
 
$
241.6

Liabilities
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of operating lease liabilities
 
Other accrued expenses
 
$
52.2

Current portion of finance lease liabilities
 
Current portion of long-term debt
 
19.0

Noncurrent liabilities:
 
 
 
 
Operating lease liabilities
 
Other long-term liabilities
 
130.5

Finance lease liabilities
 
Long-term debt
 
47.2

Total lease liabilities
 
 
 
$
248.9

 
(1)
Finance lease right-of-use assets are recorded net of accumulated amortization of $49.7 million as of June 30, 2019.
Lease cost, term, discount rate and other information
Finance lease assets, net
Included within property, plant and equipment, net are assets related to finance leases where the Company is the lessee. The below table summarizes the cost and accumulated depreciation related to these assets:
(in millions)
 
June 30, 2019
 
December 31, 2018
Finance lease assets, at cost
 
$
113.9

 
$
89.4

Less: accumulated depreciation
 
(49.7
)
 
(37.4
)
Finance lease assets, net
 
$
64.2

 
$
52.0


Lease Term and Discount Rate
 
 
June 30, 2019
Weighted-average remaining lease term (years)
 
 
Operating leases
 
5.0

Finance leases
 
3.2

Weighted-average discount rate
 
 
Operating leases
 
4.99
%
Finance leases
 
4.35
%
Other Information
(in millions)
 
Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
 
 
Operating cash flows from operating leases
 
$
28.9

Operating cash flows from finance leases
 
1.3

Financing cash flows from finance leases
 
9.6


Lease Cost
(in millions)
 
Three months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
4.0

 
$

 
$
4.0

Outbound freight and handling
 
1.9

 

 
1.9

Warehousing, selling and administrative
 
6.5

 

 
6.5

Depreciation
 

 
4.8

 
4.8

Interest expense
 

 
0.7

 
0.7

Total gross lease component cost
 
$
12.4

 
$
5.5

 
$
17.9

Variable lease costs
 
 
 
 
 
0.7

Short-term lease costs
 
 
 
 
 
9.0

Total gross lease costs
 
 
 
 
 
$
27.6

Sublease income (1)
 
 
 
 
 
0.6

Total net lease cost
 
 
 
 
 
$
27.0


(in millions)
 
Six months ended June 30, 2019
Condensed Consolidated Statement of Operations Classification
 
Operating Leases
 
Finance Leases
 
Total
Cost of goods sold (exclusive of depreciation)
 
$
7.7

 
$

 
$
7.7

Outbound freight and handling
 
3.7

 

 
3.7

Warehousing, selling and administrative
 
13.9

 

 
13.9

Depreciation
 

 
9.4

 
9.4

Interest expense
 

 
1.3

 
1.3

Total gross lease component cost
 
$
25.3

 
$
10.7

 
$
36.0

Variable lease costs
 
 
 
 
 
0.9

Short-term lease costs
 
 
 
 
 
11.6

Total gross lease costs
 
 
 
 
 
$
48.5

Sublease income (1)
 
 
 
 
 
1.6

Total net lease cost
 
 
 
 
 
$
46.9

 
(1)
Sublease income for the three and six months ended June 30, 2019 excludes rental income from owned properties of $1.3 million and $1.5 million, respectively, which is included in net sales
Finance lease maturity schedule
Maturity of Lease Liabilities
(in millions)
 
Operating Leases
 
Finance Leases
 
Total
2019
 
$
32.9

 
$
10.3

 
$
43.2

2020
 
51.7

 
18.5

 
70.2

2021
 
41.8

 
14.7

 
56.5

2022
 
32.1

 
11.4

 
43.5

2023
 
21.0

 
2.9

 
23.9

2024 and After
 
35.8

 
1.1

 
36.9

Total lease payments
 
$
215.3

 
$
58.9

 
$
274.2

Less: Interest
 
33.5

 
4.6

 
 
Present value of lease liabilities, excluding guaranteed residual values (1)
 
$
181.8

 
$
54.3

 
 
Plus: Present value of guaranteed residual values (1)
 
0.9

 
11.9

 
 
Present value of lease liabilities
 
$
182.7

 
$
66.2

 
 
 
(1)
The Company is not expected to have cash outflows related to the present value of guaranteed residual values. The Company’s current present value of lease liabilities includes guaranteed residual values related to leases in effect prior to the ASC 842 due to the Company’s practical expedient elections denoted within “Note 2: Significant accounting policies.” The gross value of the guaranteed residual values for operating and finance leases is $1.0 million and $13.1 million as of June 30, 2019, respectively
v3.19.2
Segments (Tables)
6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Financial Information for the Company's Segments
Financial information for the Company’s segments is as follows:
(in millions)

USA

Canada

EMEA

LATAM

Other/
Eliminations
(1)

Consolidated
 

Three months ended June 30, 2019
Net sales:












External customers

$
1,605.3


$
404.8


$
457.9


$
116.6


$

 
$
2,584.6

Inter-segment

23.4


1.7


1.0




(26.1
)
 

Total net sales

$
1,628.7


$
406.5


$
458.9


$
116.6


$
(26.1
)
 
$
2,584.6

Cost of goods sold (exclusive of depreciation)

1,254.6


338.0


348.7


92.1


(26.1
)
 
2,007.3

Outbound freight and handling

66.4


11.6


14.9


2.5



 
95.4

Warehousing, selling and administrative

180.1


23.1


57.1


12.6


7.9

 
280.8

Adjusted EBITDA

$
127.6


$
33.8


$
38.2


$
9.4


$
(7.9
)
 
$
201.1

Other operating expenses, net

 
 
 
 
 
 
 
 
 
 
63.8

Depreciation

 
 
 
 
 
 
 
 
 
 
39.7

Amortization

 
 
 
 
 
 
 
 
 
 
18.6

Interest expense, net

 
 
 
 
 
 
 
 
 
 
37.9

Other expense, net

 
 
 
 
 
 
 
 
 
 
5.6

Income tax expense

 
 
 
 
 
 
 
 
 
 
18.5

Net income from continuing operations
 
 
 
 
 
 
 
 
 
 
 
$
17.0

Net loss from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
$
(0.7
)
Net income

 
 
 
 
 
 
 
 
 
 
$
16.3

Total assets

$
5,600.9

 
$
1,715.1

 
$
1,030.1

 
$
317.1

 
$
(1,532.1
)
 
$
7,131.1




(in millions)

USA

Canada

EMEA

LATAM

Other/
Eliminations
(1)

Consolidated
 

Three months ended June 30, 2018
Net sales:












External customers

$
1,309.8


$
450.9


$
511.9


$
100.0


$


$
2,372.6

Inter-segment

37.9


2.2


1.2




(41.3
)


Total net sales

$
1,347.7


$
453.1


$
513.1


$
100.0


$
(41.3
)

$
2,372.6

Cost of goods sold (exclusive of depreciation)

1,056.9


384.2


394.9


77.4


(41.3
)

1,872.1

Outbound freight and handling

56.7


12.0


15.8


2.0




86.5

Warehousing, selling and administrative

136.9


22.3


62.3


11.5


7.9


240.9

Adjusted EBITDA

$
97.2


$
34.6


$
40.1


$
9.1


$
(7.9
)

$
173.1

Other operating expenses, net











11.0

Depreciation











30.9

Amortization











13.8

Interest expense, net











32.0

Other expense, net











2.1

Income tax expense











27.2

Net income
 










$
56.1

Total assets

$
3,310.1


$
1,758.6


$
1,017.3


$
220.6


$
(597.5
)

$
5,709.1



(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Other/
Eliminations
(1)
 
Consolidated
 
 
Six months ended June 30, 2019
Net sales:
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
2,912.5

 
$
678.6

 
$
941.6

 
$
211.9

 
$

 
$
4,744.6

Inter-segment
 
48.3

 
2.8

 
2.0

 

 
(53.1
)
 

Total net sales
 
$
2,960.8

 
$
681.4

 
$
943.6

 
$
211.9

 
$
(53.1
)
 
$
4,744.6

Cost of goods sold (exclusive of depreciation)
 
2,279.4

 
559.4

 
717.2

 
168.0

 
(53.1
)
 
3,670.9

Outbound freight and handling
 
122.0

 
21.3

 
30.5

 
4.5

 

 
178.3

Warehousing, selling and administrative
 
334.7

 
45.2

 
115.6

 
24.3

 
14.4

 
534.2

Adjusted EBITDA
 
$
224.7

 
$
55.5

 
$
80.3

 
$
15.1

 
$
(14.4
)
 
$
361.2

Other operating expenses, net
 
 
 
 
 
 
 
 
 
 
 
228.6

Depreciation
 
 
 
 
 
 
 
 
 
 
 
72.9

Amortization
 
 
 
 
 
 
 
 
 
 
 
33.0

Interest expense, net
 
 
 
 
 
 
 
 
 
 
 
72.1

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
 
 
 
0.7

Other expense, net
 
 
 
 
 
 
 
 
 
 
 
11.7

Income tax benefit
 
 
 
 
 
 
 
 
 
 
 
(4.8
)
Net loss from continuing operations
 
 
 
 
 
 
 
 
 
 
 
$
(53.0
)
Net income from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
$
5.4

Net loss
 
 
 
 
 
 
 
 
 
 
 
$
(47.6
)
Total assets
 
$
5,600.9

 
$
1,715.1

 
$
1,030.1

 
$
317.1

 
$
(1,532.1
)
 
$
7,131.1




(in millions)
 
USA
 
Canada
 
EMEA
 
LATAM
 
Other/
Eliminations
(1)
 
Consolidated
 
 
Six months ended June 30, 2018
Net sales:
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
2,514.2

 
$
764.3

 
$
1,050.5

 
$
201.6

 
$

 
$
4,530.6

Inter-segment
 
73.0

 
4.2

 
2.6

 
0.1

 
(79.9
)
 

Total net sales
 
$
2,587.2

 
$
768.5

 
$
1,053.1

 
$
201.7

 
$
(79.9
)
 
$
4,530.6

Cost of goods sold (exclusive of depreciation)
 
2,017.5

 
637.2

 
810.9

 
157.8

 
(79.9
)
 
3,543.5

Outbound freight and handling
 
106.6

 
22.4

 
32.8

 
4.0

 

 
165.8

Warehousing, selling and administrative
 
274.7

 
44.8

 
124.6

 
23.0

 
14.8

 
481.9

Adjusted EBITDA
 
$
188.4

 
$
64.1

 
$
84.8

 
$
16.9

 
$
(14.8
)
 
$
339.4

Other operating expenses, net
 
 
 
 
 
 
 
 
 
 
 
24.6

Depreciation
 
 
 
 
 
 
 
 
 
 
 
62.3

Amortization
 
 
 
 
 
 
 
 
 
 
 
27.2

Interest expense, net
 
 
 
 
 
 
 
 
 
 
 
66.9

Other income, net
 
 
 
 
 
 
 
 
 
 
 
(0.5
)
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
37.4

Net income
 
 
 
 
 
 
 
 
 
 
 
$
121.5

Total assets
 
$
3,310.1

 
$
1,758.6

 
$
1,017.3

 
$
220.6

 
$
(597.5
)
 
$
5,709.1

(1)
Other/Eliminations represents the elimination of intersegment transactions as well as unallocated corporate costs consisting of costs specifically related to parent company operations that do not directly benefit segments, either individually or collectively.
v3.19.2
Nature of Operations - Additional Information (Detail)
6 Months Ended
Jun. 30, 2019
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 4
v3.19.2
Significant accounting policies - Condensed consolidated balance sheet (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 31, 2017
Assets        
Property, plant and equipment, net $ 1,153.5 $ 961.2 $ 955.8  
Other assets 277.1 [1] 251.1 84.3 [1]  
Liabilities        
Current portion of long-term debt 19.0 17.2 21.7  
Other accrued expenses 409.6 329.6 285.8  
Long-term debt 3,117.1 2,360.3 2,350.4  
Other long-term liabilities $ 270.1 [1] 221.4 $ 98.4 [1]  
Impact due to adoption of ASU, net of tax [2]   0.0   $ 0.8
Accumulated deficit        
Liabilities        
Impact due to adoption of ASU, net of tax   3.2 [3]   0.3 [2]
AOCI        
Liabilities        
Impact due to adoption of ASU, net of tax   (3.2) [3]   $ 0.5 [2]
Accounting Standards Update 2016-02        
Assets        
Property, plant and equipment, net   5.4    
Other assets   166.8    
Liabilities        
Current portion of long-term debt   (4.5)    
Other accrued expenses   43.8    
Long-term debt   9.9    
Other long-term liabilities   $ 123.0    
[1]
Operating lease assets and operating lease liabilities are included in other assets and other long-term liabilities. Refer to “Note 18: Leasing” for more information.

[2]
Adjusted due to the adoption of ASU 2014-09 “Revenue from Contracts with Customers” and ASU 2017-12 “Targeted Improvements to Accounting for Hedging Activities” on January 1, 2018.

[3]
Adjusted due to the adoption of ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” on January 1, 2019. Refer to “Note 2: Significant accounting policies” for more information.
v3.19.2
Business combinations (Detail) - USD ($)
$ / shares in Units, $ in Millions
6 Months Ended
Feb. 28, 2019
May 31, 2018
Jan. 04, 2018
Jun. 30, 2019
Jun. 30, 2018
Mar. 29, 2019
Feb. 27, 2019
Dec. 31, 2018
Business Acquisition [Line Items]                
Cash payment for acquisition       $ 1,155.5 $ 20.4      
Equity interest in parent issued for acquisition       649.3 0.0      
Proceeds from long term debt used to fund acquisition       1,195.8 $ 345.9      
Goodwill acquired       (2,488.0)       $ (1,780.7)
Nexeo Solutions, Inc.                
Business Acquisition [Line Items]                
Percentage of equity interest acquired 100.00%              
Purchase price of acquisition $ 1,804.8              
Cash payment for acquisition 1,155.5              
Cash acquired from acquisition 56.8              
Equity interest in parent issued for acquisition $ 649.3              
Common stock issued (in shares) 27,900,000              
Closing price on date of issue (in usd per share)             $ 23.29  
Shares acquired per share of acquiree 0.305              
Cash consideration per share $ 3.02              
Debt repaid with proceeds of from issuance of debt $ 936.3              
Adjustment to increase goodwill       $ 6.9        
Goodwill acquired $ (689.1)              
Warrants assumed 50,000,000.0              
Assumption of warrants acquired (in shares) 25,000,000.0              
Aggregate fair value of unexercised warrants $ 26.0              
Conversion of warrants to rights to receive merger consideration (in shares)       7,600,000        
Exercise price of warrants       $ 27.80        
Earthoil Plantations Limited                
Business Acquisition [Line Items]                
Percentage of equity interest acquired   100.00%            
Purchase price of acquisition   $ 13.3            
Goodwill acquired   3.7            
Intangible assets acquired   $ 6.1            
Kemetyl Industrial Chemicals                
Business Acquisition [Line Items]                
Percentage of equity interest acquired     100.00%          
Purchase price of acquisition     $ 8.9          
Cash acquired from acquisition     0.7          
Goodwill acquired     3.9          
Intangible assets acquired     $ 3.6          
Nexeo Plastics                
Business Acquisition [Line Items]                
Proceeds from sale of plastics distribution business           $ 640.0    
Incremental Term B-4 loan facility | Nexeo Solutions, Inc.                
Business Acquisition [Line Items]                
Proceeds from long term debt used to fund acquisition 781.5              
North American ABL Facility | Nexeo Solutions, Inc.                
Business Acquisition [Line Items]                
Proceeds from long term debt used to fund acquisition 309.3              
North American ABL Term Loan | Nexeo Solutions, Inc.                
Business Acquisition [Line Items]                
Proceeds from long term debt used to fund acquisition $ 175.0              
v3.19.2
Business combinations - Preliminary purchase price allocation (Details) - USD ($)
$ in Millions
Jun. 30, 2019
Feb. 28, 2019
Dec. 31, 2018
Business Acquisition [Line Items]      
Goodwill $ 2,488.0   $ 1,780.7
Nexeo Solutions, Inc.      
Business Acquisition [Line Items]      
Trade accounts receivable, net   $ 286.9  
Inventories   149.4  
Prepaid expenses and other current assets   27.2  
Assets held for sale   923.8  
Property, plant and equipment, net   227.5  
Goodwill   689.1  
Intangible assets, net   173.9  
Other assets   39.8  
Trade accounts payable   (137.7)  
Other accrued expenses   (110.6)  
Liabilities held for sale   (283.8)  
Deferred tax liabilities   (110.7)  
Other long-term liabilities   (70.0)  
Purchase consideration, net of cash   $ 1,804.8  
v3.19.2
Business combinations - Continuing net sales and net income (Details) - Nexeo Solutions, Inc. - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Business Acquisition [Line Items]        
Net sales $ 622.3      
Net loss from continuing operations (17.0)      
Business Acquisition, Pro Forma Information [Abstract]        
Net sales 2,584.6 $ 2,906.4 $ 5,070.6 $ 5,588.5
Net income (loss) from continuing operations $ 19.2 $ 71.9 $ (40.6) $ 157.3
v3.19.2
Discontinued operations (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Mar. 29, 2019
Revenues [Abstract]      
External sales $ 0.0 $ 156.9  
Operating Costs and Expenses [Abstract]      
Cost of goods sold (exclusive of depreciation) 0.0 136.7  
Outbound freight and handling 0.0 3.5  
Warehousing, selling and administrative 0.0 7.9  
Other expenses 0.0 1.4  
Income from discontinued operations before income taxes 0.0 7.4  
Income tax expense from discontinued operations 0.7 2.0  
Net (loss) income from discontinued operations $ (0.7) $ 5.4  
Nexeo Plastics      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Total proceeds from sale before working capital adjustment     $ 650.0
Proceeds from sale of plastics distribution business     640.0
Estimated excess working capital     $ 10.0
v3.19.2
Revenue - Additional Information (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Other Current Assets  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Capitalized contract costs $ 1.4
Other Assets  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Capitalized contract costs $ 5.1
Crop Sciences  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Payment terms 6 months
Maximum  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Payment terms 1 year
v3.19.2
Revenue - Schedule of External Net Sales Disaggregated by Major Stream Type (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation of Revenue [Line Items]        
Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6
USA        
Disaggregation of Revenue [Line Items]        
Net sales 1,605.3 1,309.8 2,912.5 2,514.2
Canada        
Disaggregation of Revenue [Line Items]        
Net sales 404.8 450.9 678.6 764.3
EMEA        
Disaggregation of Revenue [Line Items]        
Net sales 457.9 511.9 941.6 1,050.5
LATAM        
Disaggregation of Revenue [Line Items]        
Net sales 116.6 $ 100.0 211.9 $ 201.6
Chemical Distribution        
Disaggregation of Revenue [Line Items]        
Net sales 2,312.8   4,348.0  
Chemical Distribution | USA        
Disaggregation of Revenue [Line Items]        
Net sales 1,515.6   2,763.1  
Chemical Distribution | Canada        
Disaggregation of Revenue [Line Items]        
Net sales 225.1   436.8  
Chemical Distribution | EMEA        
Disaggregation of Revenue [Line Items]        
Net sales 457.5   940.9  
Chemical Distribution | LATAM        
Disaggregation of Revenue [Line Items]        
Net sales 114.6   207.2  
Crop Sciences        
Disaggregation of Revenue [Line Items]        
Net sales 167.1   217.6  
Crop Sciences | USA        
Disaggregation of Revenue [Line Items]        
Net sales 0.0   0.0  
Crop Sciences | Canada        
Disaggregation of Revenue [Line Items]        
Net sales 167.1   217.6  
Crop Sciences | EMEA        
Disaggregation of Revenue [Line Items]        
Net sales 0.0   0.0  
Crop Sciences | LATAM        
Disaggregation of Revenue [Line Items]        
Net sales 0.0   0.0  
Services        
Disaggregation of Revenue [Line Items]        
Net sales 104.7   179.0  
Services | USA        
Disaggregation of Revenue [Line Items]        
Net sales 89.7   149.4  
Services | Canada        
Disaggregation of Revenue [Line Items]        
Net sales 12.6   24.2  
Services | EMEA        
Disaggregation of Revenue [Line Items]        
Net sales 0.4   0.7  
Services | LATAM        
Disaggregation of Revenue [Line Items]        
Net sales $ 2.0   $ 4.7  
v3.19.2
Revenue - Schedule of Deferred Revenue (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jan. 01, 2019
Revenue from Contract with Customer [Abstract]    
Deferred revenue $ 6.4 $ 45.6
Revenue recognized that was included in the deferred revenue balance at the beginning of the period $ 44.4  
v3.19.2
Other operating expenses, net (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Loss Contingencies [Line Items]        
Acquisition and integration related expenses $ 32.6 $ 1.0 $ 109.7 $ 1.4
Stock-based compensation expense 11.3 4.3 17.3 13.7
Restructuring charges 0.5 0.0 0.6 0.5
Other employee termination costs 6.2 4.4 19.1 6.8
Other 13.2 1.3 19.4 2.2
Total other operating expenses, net 63.8 11.0 228.6 24.6
Saccharin        
Loss Contingencies [Line Items]        
Litigation settlement expense $ 0.0 $ 0.0 $ 62.5 $ 0.0
v3.19.2
Restructuring charges - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   $ 0.6 $ 4.8
Restructuring liabilities, current $ 6.2 6.2 5.9
Restructuring liabilities, non-current 0.5 $ 0.5 3.5
Facility exit costs payment period   5 years  
Employee termination costs      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   $ 0.4 5.3
Facility exit costs      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   0.1 (0.7)
Other exit costs      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   0.1 0.2
Operating Segments | USA      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings 0.5 0.8 3.2
Operating Segments | Employee termination costs | USA      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings 0.4 0.6 3.1
Operating Segments | Employee termination costs | EMEA      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   (0.2) 0.9
Operating Segments | Facility exit costs | USA      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings 0.1 0.1  
Operating Segments | Other exit costs | USA      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings     0.1
Other | USA      
Restructuring Cost and Reserve [Line Items]      
Expected exit costs yet to be incurred $ 4.1 4.1  
Other | Employee termination costs      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings   $ 0.1  
Other | Other exit costs      
Restructuring Cost and Reserve [Line Items]      
Charge to earnings     $ 0.9
v3.19.2
Restructuring charges - Summary of Activity Related to Accrued Liabilities Associated with Redundancy and Restructuring (Detail) - USD ($)
$ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2019
Dec. 31, 2018
Restructuring Reserve [Roll Forward]    
Beginning balance $ 9.4 $ 12.7
Charge to earnings 0.6 4.8
Cash paid (3.3) (7.9)
Non-cash and other 0.0 (0.2)
Ending balance 6.7 9.4
Employee termination costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 4.2 3.0
Charge to earnings 0.4 5.3
Cash paid (3.2) (3.4)
Non-cash and other 0.0 (0.7)
Ending balance 1.4 4.2
Facility exit costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 5.0 10.2
Charge to earnings 0.1 (0.7)
Cash paid (0.1) (4.4)
Non-cash and other 0.0 (0.1)
Ending balance 5.0 5.0
Other exit costs    
Restructuring Reserve [Roll Forward]    
Beginning balance 0.2 (0.5)
Charge to earnings 0.1 0.2
Cash paid 0.0 (0.1)
Non-cash and other 0.0 0.6
Ending balance $ 0.3 $ 0.2
v3.19.2
Other (expense) income, net (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Other Income and Expenses [Abstract]        
Foreign currency transactions $ (2.1) $ (4.2) $ (2.8) $ (4.3)
Foreign currency denominated loans revaluation (4.7) (2.6) 0.5 (1.4)
Undesignated foreign currency derivative instruments 4.3 2.2 (5.6) 0.9
Undesignated interest rate swap contracts (3.0) 0.0 (2.8) 0.0
Non-operating retirement benefits 0.6 3.4 1.2 6.9
Other (0.7) (0.9) (2.2) (1.6)
Total other (expense) income, net $ (5.6) $ (2.1) $ (11.7) $ 0.5
v3.19.2
Employee benefit plans (Detail) - Pension Plan - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Domestic        
Defined Benefit Plan Disclosure [Line Items]        
Service cost $ 0.0 $ 0.0 $ 0.0 $ 0.0
Interest cost 6.8 6.8 13.6 13.6
Expected return on plan assets (6.3) (7.8) (12.6) (15.6)
Net periodic cost (benefit) 0.5 (1.0) 1.0 (2.0)
Foreign Plan        
Defined Benefit Plan Disclosure [Line Items]        
Service cost 0.6 0.7 1.2 1.4
Interest cost 3.9 3.9 7.8 7.9
Expected return on plan assets (5.1) (6.4) (10.1) (12.9)
Prior service cost 0.1 0.1 0.1 0.1
Net periodic cost (benefit) $ (0.5) $ (1.7) $ (1.0) $ (3.5)
v3.19.2
Income taxes (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Income tax expense (benefit) from continuing operations $ 18.5 $ 27.2 $ (4.8) $ 37.4
Effective tax rate 52.10% 32.70% 8.30% 23.50%
One time discreet tax benefit $ 3.8   $ 14.0  
Estimated effective tax rate 52.30%      
US federal statutory rate 21.00% 21.00%    
v3.19.2
Earnings Per Share - Summary of Computations of Basic and Diluted Earnings Per Share (Detail) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net Income (Loss)        
Net income (loss) from continuing operations $ 17.0 $ 56.1 $ (53.0) $ 121.5
Net (loss) income from discontinued operations (0.7) 0.0 5.4 0.0
Net income (loss) 16.3 56.1 (47.6) 121.5
Basic:        
Less: earnings allocated to participating securities 0.0 0.1 0.0 0.2
Earnings allocated to common shares outstanding $ 16.3 $ 56.0 $ (47.6) $ 121.3
Weighted average common shares outstanding (in shares) 169.8 141.1 159.5 141.0
Basic income (loss) from continuing operations (in dollars per share) $ 0.10 $ 0.40 $ (0.33) $ 0.86
Basic income per common share from discontinued operations (in dollars per share) 0 0 0.03 0
Basic income (loss) per common share (in dollars per share) $ 0.10 $ 0.40 $ (0.30) $ 0.86
Diluted:        
Less: earnings allocated to participating securities $ 0.0 $ 0.0 $ 0.0 $ 0.0
Earnings allocated to common shares outstanding $ 16.3 $ 56.1 $ (47.6) $ 121.5
Weighted average common shares outstanding (in shares) 169.8 141.1 159.5 141.0
Effect of dilutive securities: stock compensation plans (in shares) 0.9 0.9 0.0 1.0
Weighted average common shares outstanding - diluted (in shares) 170.7 142.0 159.5 142.0
Diluted income (loss) per common share from continuing operations( in dollars per share) $ 0.10 $ 0.40 $ (0.33) $ 0.86
Diluted income per common share from discontinued operations (in dollars per share) 0 0 0.03 0
Diluted income (loss) per common share (in dollars per share) $ 0.10 $ 0.40 $ (0.30) $ 0.86
v3.19.2
Earnings Per Share - Summary of Computations of Basic and Diluted Earnings Per Share Footnote (Detail) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Shares of stock issuable on the exercise of warrants 7,600,000   5,100,000  
Employee Stock Option | Common stock        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Share-based compensation awards purchased not included in calculation of diluted earnings per share (in shares) 2,900,000 1,500,000 3,000,000.0 1,400,000
Employee Stock Option | Restricted Stock        
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Share-based compensation awards purchased not included in calculation of diluted earnings per share (in shares)   0 800,000  
v3.19.2
Accumulated other comprehensive loss - Schedule of Changes in Accumulated Other Comprehensive Loss by Component Net of Tax (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance $ 1,191.7 $ 1,090.1
Other comprehensive (loss) income before reclassifications 1.2 (51.4)
Total reclassifications for the period (5.5) (2.1)
Net current period other comprehensive (loss) income (7.5) (53.0)
Ending balance 1,774.5 1,171.0
Cash flow hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 8.9 6.7
Other comprehensive (loss) income before reclassifications (18.6) 11.6
Total reclassifications for the period (5.6) (2.2)
Net current period other comprehensive (loss) income (22.7) 9.9
Ending balance (13.8) 16.6
Defined benefit pension items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (1.1) (1.2)
Other comprehensive (loss) income before reclassifications 0.0 0.0
Total reclassifications for the period 0.1 0.1
Net current period other comprehensive (loss) income 0.1 0.1
Ending balance (1.0) (1.1)
Currency translation items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (381.0) (284.0)
Other comprehensive (loss) income before reclassifications 19.8 (63.0)
Total reclassifications for the period 0.0 0.0
Net current period other comprehensive (loss) income 15.1 (63.0)
Ending balance (365.9) (347.0)
Accumulated other comprehensive loss    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (373.2) (278.5)
Ending balance (380.7) (331.5)
Accounting Standards Update 2018-02    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement (3.2)  
Accounting Standards Update 2018-02 | Cash flow hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement 1.5  
Accounting Standards Update 2018-02 | Defined benefit pension items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement  
Accounting Standards Update 2018-02 | Currency translation items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement $ (4.7)  
Accounting Standards Update 2017-12    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement   0.5
Accounting Standards Update 2017-12 | Cash flow hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement   0.5
Accounting Standards Update 2017-12 | Defined benefit pension items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement   0.0
Accounting Standards Update 2017-12 | Currency translation items    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Impact due to adoption of new accounting pronouncement   $ 0.0
v3.19.2
Accumulated other comprehensive loss - Summary of amounts reclassified from accumulated other comprehensive loss (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Prior service cost $ (5.6) $ (2.1) $ (11.7) $ 0.5
Income tax expense (18.5) (27.2) 4.8 (37.4)
Net income (loss) 16.3 56.1 (47.6) 121.5
Interest expense 39.0 32.9 73.8 69.0
Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Net income (loss) (2.7) (2.1) (5.5) (2.1)
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Prior service cost 0.1 0.1 0.1 0.1
Income tax expense 0.0 0.0 0.0 0.0
Net income (loss) 0.1 0.1 0.1 0.1
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Income tax expense 0.9 0.8 1.9 0.8
Net income (loss) (2.8) (2.2) (5.6) (2.2)
Interest rate swap contracts | Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]        
Interest expense $ (3.7) $ (3.0) $ (7.5) $ (3.0)
v3.19.2
Debt - Summary of Short Term Financing (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Amounts drawn under credit facilities $ 1.5 $ 4.7
Bank overdrafts 1.7 3.4
Total short-term financing $ 3.2 $ 8.1
v3.19.2
Debt - Additional Information (Detail)
€ in Millions
3 Months Ended 6 Months Ended
Apr. 03, 2019
USD ($)
Apr. 03, 2019
EUR (€)
Feb. 28, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Feb. 28, 2019
EUR (€)
Dec. 31, 2018
USD ($)
Debt Instrument [Line Items]                  
Letters of credit outstanding       $ 142,000,000.0   $ 142,000,000.0     $ 139,400,000
Weighted average interest rate on long-term debt       4.38%   4.38%     4.29%
Early repayment of debt $ 448,800,000                
Loss on extinguishment of debt       $ 0 $ 0 $ 700,000 $ 0    
Cash                  
Debt Instrument [Line Items]                  
Assets pledged under New Senior ABL Facility     $ 36,900,000            
Trade Accounts Receivable                  
Debt Instrument [Line Items]                  
Assets pledged under New Senior ABL Facility     1,329,000,000.0            
Inventories                  
Debt Instrument [Line Items]                  
Assets pledged under New Senior ABL Facility     801,900,000            
Prepaid Expenses and Other Current Assets                  
Debt Instrument [Line Items]                  
Assets pledged under New Senior ABL Facility     147,700,000            
Property, Plant and Equipment                  
Debt Instrument [Line Items]                  
Assets pledged under New Senior ABL Facility     $ 958,300,000            
Term B Loan due 2024, variable interest rate of 4.65% and 4.77% at June 30, 2019 and December 31, 2018, respectively                  
Debt Instrument [Line Items]                  
Early repayment of debt 309,800,000                
Aggregate principal amount       1,438,000,000.0   1,438,000,000.0     $ 1,747,800,000
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at June 30, 2019                  
Debt Instrument [Line Items]                  
Early repayment of debt | €   € 74.8              
Aggregate principal amount       398,200,000   398,200,000   € 425.0 0
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at June 30, 2019 | London Interbank Offered Rate (LIBOR)                  
Debt Instrument [Line Items]                  
Credit rate spread     2.75%            
Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019                  
Debt Instrument [Line Items]                  
Early repayment of debt $ 55,000,000.0                
Aggregate principal amount     $ 300,000,000.0 245,000,000.0   245,000,000.0     0
Margin step down based on leverage level     0.25%            
Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019 | Base Rate                  
Debt Instrument [Line Items]                  
Credit rate spread     1.75%            
Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019 | Eurocurrency Rate                  
Debt Instrument [Line Items]                  
Credit rate spread     2.75%            
Canadian ABL Term Loan due 2022, variable interest rate of 4.21% at June 30, 2019                  
Debt Instrument [Line Items]                  
Aggregate principal amount       $ 175,700,000   175,700,000     $ 0
New Senior ABL Facility, Term Loan                  
Debt Instrument [Line Items]                  
Loss on extinguishment of debt           $ 700,000      
New Senior ABL Facility, Term Loan | Base Rate | Minimum                  
Debt Instrument [Line Items]                  
Credit rate spread     1.00%            
New Senior ABL Facility, Term Loan | Base Rate | Maximum                  
Debt Instrument [Line Items]                  
Credit rate spread     1.25%            
New Senior ABL Facility, Term Loan | Prime Rate | Minimum                  
Debt Instrument [Line Items]                  
Credit rate spread     2.00%            
New Senior ABL Facility, Term Loan | Prime Rate | Maximum                  
Debt Instrument [Line Items]                  
Credit rate spread     2.25%            
New Senior ABL Facility | Eurocurrency Rate | Minimum                  
Debt Instrument [Line Items]                  
Credit rate spread     1.25%            
New Senior ABL Facility | Eurocurrency Rate | Maximum                  
Debt Instrument [Line Items]                  
Credit rate spread     1.50%            
New Senior ABL Facility | Prime Rate | Minimum                  
Debt Instrument [Line Items]                  
Credit rate spread     0.25%            
New Senior ABL Facility | Prime Rate | Maximum                  
Debt Instrument [Line Items]                  
Credit rate spread     0.50%            
New Senior ABL Facility | Canadian ABL Term Loan due 2022, variable interest rate of 4.21% at June 30, 2019                  
Debt Instrument [Line Items]                  
Debt Instrument, term     3 years            
Line of credit facility     $ 175,000,000.0            
New North American ABL Facility                  
Debt Instrument [Line Items]                  
Quarterly principal payment     25.00%            
Revolving Loan Tranche | New Senior ABL Facility                  
Debt Instrument [Line Items]                  
Debt Instrument, term     5 years            
United States Subsidiaries | Revolving Loan Tranche | New Senior ABL Facility                  
Debt Instrument [Line Items]                  
Line of credit facility     $ 1,200,000,000            
Canadian Subsidiaries | Revolving Loan Tranche | New Senior ABL Facility                  
Debt Instrument [Line Items]                  
Line of credit facility     $ 325,000,000.0            
v3.19.2
Debt - Schedule of Long Term Debt (Detail)
€ in Millions, $ in Millions
Jun. 30, 2019
USD ($)
Feb. 28, 2019
USD ($)
Feb. 28, 2019
EUR (€)
Jan. 01, 2019
USD ($)
Dec. 31, 2018
USD ($)
Debt Instrument [Line Items]          
Finance lease obligations $ 66.2        
Capital Lease Obligations         $ 54.8
Total long-term debt before discount 3,166.7       2,395.3
Less: unamortized debt issuance costs and discount on debt (30.6)       (23.2)
Total long-term debt 3,136.1       2,372.1
Less: current maturities (19.0)     $ (17.2) (21.7)
Total long-term debt, excluding current maturities 3,117.1     $ 2,360.3 2,350.4
Term B Loan due 2024, variable interest rate of 4.65% and 4.77% at June 30, 2019 and December 31, 2018, respectively          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 1,438.0       $ 1,747.8
Variable interest rate 4.65%       4.77%
Euro Term B-2 Loan due 2024, variable interest rate of 2.75% at June 30, 2019          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 398.2   € 425.0   $ 0.0
Variable interest rate 2.75%        
Term B-4 Loan due 2024, variable interest rate of 4.90% at June 30, 2019          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 245.0 $ 300.0     0.0
Variable interest rate 4.90%        
North American ABL Facility due 2024, variable interest rate of 3.98% at June 30, 2019          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 397.5       0.0
Variable interest rate 3.98%        
Canadian ABL Term Loan due 2022, variable interest rate of 4.21% at June 30, 2019          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 175.7       0.0
Variable interest rate 4.21%        
Euro ABL Facility due 2023, variable interest rate of 1.75% at June 30, 2019 and December 31, 2018          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 46.6       $ 58.5
Variable interest rate 1.75%       1.75%
North American ABL Facility due 2020, variable interest rate of 4.19% at December 31, 2018 (amended February 2019)          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 0.0       $ 134.7
Variable interest rate         4.19%
Senior Unsecured Notes due 2023, fixed interest rate of 6.75% at June 30, 2019 and December 31, 2018          
Debt Instrument [Line Items]          
Long-term debt excluding capital lease obligation $ 399.5       $ 399.5
Fixed interest rate 6.75%       6.75%
v3.19.2
Supplemental balance sheet information - Summary of Property, Plant and Equipment, Net (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Jan. 01, 2019
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Property, plant and equipment, at cost $ 2,193.5   $ 1,925.9
Less: accumulated depreciation (1,040.0)   (970.1)
Property, plant and equipment, net $ 1,153.5 $ 961.2 $ 955.8
v3.19.2
Supplemental balance sheet information - Summary of Cost and Accumulated Depreciation Related to Capital Lease Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finance lease assets, at cost $ 113.9  
Financing lease assets, at cost, before adoption of ASU 2016-02   $ 89.4
Less: accumulated depreciation (49.7)  
Less: accumulated depreciation, before adoption of ASU 2016-02   (37.4)
Finance lease assets, net $ 64.2  
Financing lease assets, net, before adoption of ASU 2016-02   $ 52.0
v3.19.2
Supplemental balance sheet information - Schedule of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross $ 1,201.7 $ 1,021.2
Accumulated Amortization (820.7) (783.1)
Net 381.0 238.1
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross 1,025.9 846.1
Accumulated Amortization (655.5) (620.3)
Net 370.4 225.8
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross 175.8 175.1
Accumulated Amortization (165.2) (162.8)
Net $ 10.6 $ 12.3
v3.19.2
Fair value measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Level 2 | Forward currency contracts | Financial current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets $ 2.4 $ 0.3
Level 2 | Forward currency contracts | Financial current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.2 0.2
Level 2 | Interest rate swap contracts | Financial current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0.0 12.4
Level 2 | Interest rate swap contracts | Financial non-current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0.0 1.5
Level 2 | Interest rate swap contracts | Financial current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.4 0.0
Level 2 | Interest rate swap contracts | Financial non-current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 20.9 0.0
Level 2 | Warrant liability | Financial non-current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.0 0.0
Level 3 | Forward currency contracts | Financial current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0.0 0.0
Level 3 | Forward currency contracts | Financial current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.0 0.0
Level 3 | Interest rate swap contracts | Financial current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0.0 0.0
Level 3 | Interest rate swap contracts | Financial non-current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets 0.0 0.0
Level 3 | Interest rate swap contracts | Financial current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.0 0.0
Level 3 | Interest rate swap contracts | Financial non-current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities 0.0 0.0
Level 3 | Warrant liability | Financial non-current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities $ 23.4 $ 0.0
v3.19.2
Fair value measurements - Additional Information (Detail)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Prepaid Expenses and Other Current Assets    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Forward currency contract asset fair value $ 2.4 $ 0.3
Other accrued expenses    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Forward currency contract liability fair value $ 0.2 $ 0.2
Measurement Input, Expected Term | Warrant liability    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Expected option life 2 years  
Measurement Input, Price Volatility | Warrant liability    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Expected volatility rate 0.2607  
Measurement Input, Risk Free Interest Rate | Warrant liability    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Expected volatility rate 0.0175  
v3.19.2
Fair value measurements - Reconciliation of Fair Value Measurements that Use Significant Unobservable Inputs (Level 3) (Detail) - Warrant Liability
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Fair value beginning balance $ 0.0
Additions 26.0
Fair value adjustments (2.6)
Fair value ending balance $ 23.4
v3.19.2
Fair value measurements - Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Detail) - USD ($)
$ in Millions
Jun. 30, 2019
Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt including current portion, carrying amount $ 3,136.1 $ 2,372.1
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt including current portion, carrying amount 3,136.1 2,372.1
Long-term debt including current portion, fair value $ 3,173.9 $ 2,314.3
v3.19.2
Derivatives (Detail)
€ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 28, 2019
EUR (€)
Mar. 31, 2019
USD ($)
Mar. 29, 2019
EUR (€)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial current assets              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Assets $ 0 $ 0       $ 12,400,000  
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial non-current liabilities              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Liabilities 20,900,000 20,900,000       0  
Interest rate swap contracts | Level 2 | Fair Value, Measurements, Recurring | Financial non-current assets              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Assets 0 $ 0       1,500,000  
Undesignated Forward Currency Contracts | Minimum              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative instruments term   1 month          
Undesignated Forward Currency Contracts | Maximum              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Derivative instruments term   3 months          
Interest rate swap contracts              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Net unrealized gain (loss) reclassified to earnings 3,700,000 $ 7,500,000          
Estimated losses included in AOCI to be reclassified with the next 12 months 100,000 100,000          
Interest rate swap contracts | Designated as Hedging Instrument | Cash Flow Hedging              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Notional amount       $ 300,000,000.0   $ 500,000,000.0 $ 1,000,000,000.0
Fixed interest rate (weighted average)           2.73% 1.70%
Interest rate swap contracts | Undesignated Forward Currency Contracts              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Notional amount       $ 200,000,000.0      
Interest rate swap contracts | Undesignated Forward Currency Contracts | Cash Flow Hedging              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Fixed interest rate (weighted average)       2.27%      
Forward currency contracts | Undesignated Forward Currency Contracts              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Notional amount 910,700,000 910,700,000 € 350.0   € 350.0 $ 108,100,000  
Term B Loan Due 2022 | Interest rate swap contracts | Designated as Hedging Instrument | Cash Flow Hedging              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Notional amount $ 1,800,000,000 $ 1,800,000,000       $ 2,000,000,000.0  
v3.19.2
Commitments and contingencies - Additional Information (Detail)
shares in Millions, $ in Millions
6 Months Ended
Jun. 26, 2019
USD ($)
shares
Jun. 30, 2019
USD ($)
site
location
claim
Dec. 31, 2018
USD ($)
Other Commitments [Line Items]      
Number of locations impacted by environmental laws and regulations | location   130  
Number of company owned/occupied sites requiring environmental remediation work | site   108  
Number of non owned sites liable for a share of clean-up | site   22  
Accrued environmental loss contingencies, current   $ 31.0 $ 32.1
Payments for legal settlements   $ 62.5  
Maximum      
Other Commitments [Line Items]      
Number of asbestos-related claims (fewer than) | claim   97  
BCIM Strategic Value Master Fund, LP | Nexeo Solutions, Inc.      
Other Commitments [Line Items]      
Number of shares of Nexeo Solutions, Inc. common stock | shares 5.0    
Amount paid to BCIM $ 63.5    
Amount received from exchange agent $ 15.1    
Number of Univar shares canceled (in shares) | shares 1.5    
Value of Univar shares canceled $ 35.5    
v3.19.2
Commitments and contingencies - Changes in Total Environmental Liabilities (Detail) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Accrual for Environmental Loss Contingencies [Roll Forward]    
Environmental liabilities at beginning of period $ 83.5 $ 89.2
Revised obligation estimates 8.2 5.0
Environmental payments (8.9) (8.0)
Foreign exchange 0.0 (0.1)
Environmental liabilities at end of period $ 82.8 $ 86.1
v3.19.2
Leasing - Assets and liabilities, lessee (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Assets  
Operating lease assets $ 177.4
Finance lease assets 64.2
Total lease assets 241.6
Current liabilities:  
Current portion of operating lease liabilities 52.2
Current portion of finance lease liabilities 19.0
Liabilities, Noncurrent [Abstract]  
Operating lease liabilities 130.5
Finance lease liabilities 47.2
Total lease liabilities 248.9
Finance lease right-of-use assets accumulated amortization $ 49.7
v3.19.2
Leasing - Lease cost in income statement (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2019
Lessee, Lease, Description [Line Items]    
Operating Leases $ 12.4 $ 25.3
Finance Leases 5.5 10.7
Total 17.9 36.0
Depreciation 4.8 9.4
Operating Lease, Expense 0.0 0.0
Interest expense 0.7 1.3
Variable lease costs 0.7 0.9
Short-term lease costs 9.0 11.6
Total gross lease costs 27.6 48.5
Sublease income 0.6 1.6
Total net lease cost 27.0 46.9
Rental income from properties 1.3 1.5
Cost of goods sold (exclusive of depreciation)    
Lessee, Lease, Description [Line Items]    
Operating Leases 4.0 7.7
Finance Leases 0.0 0.0
Total 4.0 7.7
Outbound freight and handling    
Lessee, Lease, Description [Line Items]    
Operating Leases 1.9 3.7
Finance Leases 0.0 0.0
Total 1.9 3.7
Warehousing, selling and administrative    
Lessee, Lease, Description [Line Items]    
Operating Leases 6.5 13.9
Finance Leases 0.0 0.0
Total $ 6.5 $ 13.9
v3.19.2
Leasing - Maturity of lease obligations (Details)
$ in Millions
Jun. 30, 2019
USD ($)
Operating Leases  
2019 $ 32.9
2020 51.7
2021 41.8
2022 32.1
2023 21.0
2024 and After 35.8
Total lease payments 215.3
Less: Interest 33.5
Present value of lease liabilities, excluding guaranteed residual values 181.8
Plus: Present value of guaranteed residual values 0.9
Present value of lease liabilities 182.7
Gross value of guaranteed residual value 1.0
Finance Leases  
2019 10.3
2020 18.5
2021 14.7
2022 11.4
2023 2.9
2024 and After 1.1
Total lease payments 58.9
Less: Interest 4.6
Present value of lease liabilities, excluding guaranteed residual values 54.3
Plus: Present value of guaranteed residual values 11.9
Present value of lease liabilities 66.2
Gross value of guaranteed residual value 13.1
Total  
2019 43.2
2020 70.2
2021 56.5
2022 43.5
2023 23.9
2024 and After 36.9
Total lease payments $ 274.2
v3.19.2
Leasing - Lease term and discount rate (Details)
Jun. 30, 2019
Weighted-average remaining lease term (years)  
Operating leases 5 years
Finance leases 3 years 2 months 12 days
Weighted-average discount rate  
Operating leases 4.99%
Finance leases 4.35%
v3.19.2
Leasing - Other information (Details)
$ in Millions
6 Months Ended
Jun. 30, 2019
USD ($)
Leases [Abstract]  
Operating cash flows from operating leases $ 28.9
Operating cash flows from finance leases 1.3
Financing cash flows from finance leases $ 9.6
v3.19.2
Segments (Detail) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Segment Reporting Information [Line Items]          
Net sales $ 2,584.6 $ 2,372.6 $ 4,744.6 $ 4,530.6  
Cost of goods sold (exclusive of depreciation) 2,007.3 1,872.1 3,670.9 3,543.5  
Warehousing, selling and administrative 280.8 240.9 534.2 481.9  
Adjusted EBITDA 201.1 173.1 361.2 339.4  
Other operating expenses, net 63.8 11.0 228.6 24.6  
Depreciation 39.7 30.9 72.9 62.3  
Amortization 18.6 13.8 33.0 27.2  
Interest expense, net 37.9 32.0 72.1 66.9  
Loss on extinguishment of debt 0.0 0.0 0.7 0.0  
Other expense (income), net 5.6 2.1 11.7 (0.5)  
Income tax expense 18.5 27.2 (4.8) 37.4  
Net income (loss) from continuing operations 17.0 56.1 (53.0) 121.5  
Net (loss) income from discontinued operations (0.7) 0.0 5.4 0.0  
Net income (loss) 16.3 56.1 (47.6) 121.5  
Total assets 7,131.1 5,709.1 7,131.1 5,709.1 $ 5,272.4
USA          
Segment Reporting Information [Line Items]          
Net sales 1,605.3 1,309.8 2,912.5 2,514.2  
Canada          
Segment Reporting Information [Line Items]          
Net sales 404.8 450.9 678.6 764.3  
EMEA          
Segment Reporting Information [Line Items]          
Net sales 457.9 511.9 941.6 1,050.5  
LATAM          
Segment Reporting Information [Line Items]          
Net sales 116.6 100.0 211.9 201.6  
Inter-segment | USA          
Segment Reporting Information [Line Items]          
Net sales 23.4 37.9 48.3 73.0  
Inter-segment | Canada          
Segment Reporting Information [Line Items]          
Net sales 1.7 2.2 2.8 4.2  
Inter-segment | EMEA          
Segment Reporting Information [Line Items]          
Net sales 1.0 1.2 2.0 2.6  
Inter-segment | LATAM          
Segment Reporting Information [Line Items]          
Net sales 0.0 0.0 0.0 0.1  
Operating Segments | USA          
Segment Reporting Information [Line Items]          
Net sales 1,628.7 1,347.7 2,960.8 2,587.2  
Cost of goods sold (exclusive of depreciation) 1,254.6 1,056.9 2,279.4 2,017.5  
Warehousing, selling and administrative 180.1 136.9 334.7 274.7  
Adjusted EBITDA 127.6 97.2 224.7 188.4  
Total assets 5,600.9 3,310.1 5,600.9 3,310.1  
Operating Segments | Canada          
Segment Reporting Information [Line Items]          
Net sales 406.5 453.1 681.4 768.5  
Cost of goods sold (exclusive of depreciation) 338.0 384.2 559.4 637.2  
Warehousing, selling and administrative 23.1 22.3 45.2 44.8  
Adjusted EBITDA 33.8 34.6 55.5 64.1  
Total assets 1,715.1 1,758.6 1,715.1 1,758.6  
Operating Segments | EMEA          
Segment Reporting Information [Line Items]          
Net sales 458.9 513.1 943.6 1,053.1  
Cost of goods sold (exclusive of depreciation) 348.7 394.9 717.2 810.9  
Warehousing, selling and administrative 57.1 62.3 115.6 124.6  
Adjusted EBITDA 38.2 40.1 80.3 84.8  
Total assets 1,030.1 1,017.3 1,030.1 1,017.3  
Operating Segments | LATAM          
Segment Reporting Information [Line Items]          
Net sales 116.6 100.0 211.9 201.7  
Cost of goods sold (exclusive of depreciation) 92.1 77.4 168.0 157.8  
Warehousing, selling and administrative 12.6 11.5 24.3 23.0  
Adjusted EBITDA 9.4 9.1 15.1 16.9  
Total assets 317.1 220.6 317.1 220.6  
Other/ Eliminations          
Segment Reporting Information [Line Items]          
Net sales (26.1) (41.3) (53.1) (79.9)  
Cost of goods sold (exclusive of depreciation) (26.1) (41.3) (53.1) (79.9)  
Warehousing, selling and administrative 7.9 7.9 14.4 14.8  
Adjusted EBITDA (7.9) (7.9) (14.4) (14.8)  
Total assets (1,532.1) (597.5) (1,532.1) (597.5)  
Outbound freight and handling          
Segment Reporting Information [Line Items]          
Outbound freight and handling 95.4 86.5 178.3 165.8  
Outbound freight and handling | Operating Segments | USA          
Segment Reporting Information [Line Items]          
Outbound freight and handling 66.4 56.7 122.0 106.6  
Outbound freight and handling | Operating Segments | Canada          
Segment Reporting Information [Line Items]          
Outbound freight and handling 11.6 12.0 21.3 22.4  
Outbound freight and handling | Operating Segments | EMEA          
Segment Reporting Information [Line Items]          
Outbound freight and handling 14.9 15.8 30.5 32.8  
Outbound freight and handling | Operating Segments | LATAM          
Segment Reporting Information [Line Items]          
Outbound freight and handling 2.5 2.0 4.5 4.0  
Outbound freight and handling | Other/ Eliminations          
Segment Reporting Information [Line Items]          
Outbound freight and handling $ 0.0 $ 0.0 $ 0.0 $ 0.0