TRINSEO S.A., 10-K filed on 2/28/2020
Annual Report
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Document and Entity Information - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Feb. 24, 2020
Jun. 30, 2019
Cover [Abstract]        
Document Type   10-K    
Document Annual Report   true    
Document Period End Date   Dec. 31, 2019    
Document Transition Report   false    
Entity File Number   001-36473    
Entity Registrant Name   Trinseo S.A.    
Entity Incorporation, State or Country Code   N4    
Entity Tax Identification Number 00-0000000      
Entity Address, Address Line One   1000 Chesterbrook Boulevard, Suite 300    
Entity Address, Address Line Two   Berwyn    
Entity Address, City or Town   Berwyn, PA 19312    
Entity Address, State or Province   PA    
Entity Address, Postal Zip Code   19312    
City Area Code   610    
Local Phone Number   240-3200    
Title of 12(b) Security   Ordinary Shares, par value $0.01 per share    
Trading Symbol   tse    
Security Exchange Name   NYSE    
Entity Well-known Seasoned Issuer   Yes    
Entity Voluntary Filers   No    
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 Public Float       $ 1,691,486,980
Entity Common Stock, Shares Outstanding     38,320,508  
Document Fiscal Year Focus   2019    
Document Fiscal Period Focus   FY    
Entity Central Index Key   0001519061    
Current Fiscal Year End Date   --12-31    
Amendment Flag   false    
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Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 456.2 $ 452.3
Accounts receivable, net of allowance 570.8 648.1
Inventories 438.2 510.4
Other current assets 25.9 20.5
Total current assets 1,491.1 1,631.3
Investments in unconsolidated affiliates 188.1 179.1
Property, plant and equipment, net 625.8 592.1
Other assets    
Goodwill 67.7 69.0
Other intangible assets, net 191.5 191.1
Right of use assets - operating 71.4  
Deferred income tax assets 67.5 26.7
Deferred charges and other assets 55.7 37.5
Total other assets 453.8 324.3
Total assets 2,758.8 2,726.8
Current liabilities    
Short-term borrowings and current portion of long-term debt 11.1 7.0
Accounts payable 343.0 354.2
Current lease liabilities - operating 14.1  
Income taxes payable 5.0 16.0
Accrued expenses and other current liabilities 154.4 159.8
Total current liabilities 527.6 537.0
Noncurrent liabilities    
Long-term debt, net of unamortized deferred financing fees 1,162.6 1,160.8
Noncurrent lease liabilities - operating 58.0  
Deferred income tax liabilities 41.5 45.4
Other noncurrent obligations 300.2 214.9
Total noncurrent liabilities 1,562.3 1,421.1
Commitments and contingencies (Note 15)
Shareholders' equity    
Ordinary shares, $0.01 nominal value, 50,000.0 shares authorized (December 31, 2019: 48.8 shares issued and 39.0 shares outstanding; December 31, 2018: 48.8 shares issued and 41.6 shares outstanding) 0.5 0.5
Additional paid-in-capital 574.7 575.4
Treasury shares, at cost (December 31, 2019: 9.8 shares; December 31, 2018: 7.2 shares) (524.9) (418.1)
Retained earnings 781.0 753.2
Accumulated other comprehensive loss (162.4) (142.3)
Total shareholders' equity 668.9 768.7
Total liabilities and shareholders' equity $ 2,758.8 $ 2,726.8
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
Condensed Consolidated Balance Sheets    
Ordinary shares, nominal value $ 0.01 $ 0.01
Ordinary shares, shares authorized 50,000,000,000.0 50,000,000,000.0
Ordinary shares, shares issued 48,800,000 48,800,000
Ordinary shares, shares outstanding 39,000,000.0 41,600,000
Treasury stock, shares 9,800,000 7,200,000
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Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Condensed Consolidated Statements of Operations      
Net sales $ 3,775.8 $ 4,622.8 $ 4,448.1
Cost of sales 3,446.9 4,094.0 3,807.8
Gross profit 328.9 528.8 640.3
Selling, general and administrative expenses 300.0 258.5 239.0
Equity in earnings of unconsolidated affiliates 119.0 144.1 123.7
Operating income 147.9 414.4 525.0
Interest expense, net 39.3 46.4 70.1
Loss on extinguishment of long-term debt   0.2 65.3
Other expense (income), net 4.0 3.5 (21.5)
Income before income taxes 104.6 364.3 411.1
Provision for income taxes 12.6 71.8 82.8
Net income $ 92.0 $ 292.5 $ 328.3
Weighted average shares- basic 40.3 42.8 43.8
Net income per share- basic $ 2.28 $ 6.83 $ 7.49
Weighted average shares- diluted 40.7 43.7 45.0
Net income per share- diluted $ 2.26 $ 6.70 $ 7.30
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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Condensed Consolidated Statements of Comprehensive Income (Loss)      
Net income $ 92.0 $ 292.5 $ 328.3
Other comprehensive income (loss), net of tax      
Cumulative translation adjustments 5.1 (17.3) 24.5
Net gain on cash flow hedges post adoption (8.3) 15.0  
Net gain (loss) on cash flow hedges prior to adoption     (18.4)
Pension and other postretirement benefit plans:      
Prior service credit arising during period (net of tax of $0, $0.2, and $0)   0.7  
Net gain (loss) arising during period (net of tax of: $(8.9), $0.3, and $10.8) (19.0) 1.8 31.8
Amounts reclassified from accumulated other comprehensive income (loss) 2.1 3.1 (13.3)
Total other comprehensive income (loss), net of tax (20.1) 3.3 24.6
Comprehensive income $ 71.9 $ 295.8 $ 352.9
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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Condensed Consolidated Statements of Comprehensive Income (Loss)      
Prior service credit arising during period, tax $ 0.0 $ 0.2 $ 0.0
Net loss arising during period, tax (benefit) expense $ (8.9) $ 0.3 $ 10.8
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Condensed Consolidated Statements of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Ordinary Shares
Additional Paid-In Capital
Treasury Shares
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Total
Balance at beginning of period at Dec. 31, 2016 $ 0.5 $ 573.7 $ (217.5) $ (170.2) $ 261.2 $ 447.7
Balance at beginning of period, shares at Dec. 31, 2016 44.3   4.5      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income         328.3 328.3
Other comprehensive income (loss)       24.6   24.6
Stock-based compensation   5.1 $ 17.5     22.6
Stock-based compensation, shares 0.5   (0.5)      
Purchase of treasury shares     $ (86.8)     (86.8)
Purchase of treasury shares, shares (1.4)   1.4      
Dividends on ordinary shares         (61.6) (61.6)
Balance at end of period at Dec. 31, 2017 $ 0.5 578.8 $ (286.8) (145.6) 527.9 674.8
Balance at end of period, shares at Dec. 31, 2017 43.4   5.4      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income         292.5 292.5
Other comprehensive income (loss)       3.3   3.3
Stock-based compensation   (3.4) $ 13.7     10.3
Stock-based compensation, shares 0.4   (0.4)      
Purchase of treasury shares     $ (145.0)     (145.0)
Purchase of treasury shares, shares (2.2)   2.2      
Dividends on ordinary shares         (67.2) (67.2)
Balance at end of period at Dec. 31, 2018 $ 0.5 575.4 $ (418.1) (142.3) 753.2 $ 768.7
Balance at end of period, shares at Dec. 31, 2018 41.6   7.2     41.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income         92.0 $ 92.0
Other comprehensive income (loss)       (20.1)   (20.1)
Stock-based compensation   (0.7) $ 9.6     8.9
Stock-based compensation, shares 0.2   (0.2)      
Purchase of treasury shares     $ (116.4)     (116.4)
Purchase of treasury shares, shares (2.8)   2.8      
Dividends on ordinary shares         (64.2) (64.2)
Balance at end of period at Dec. 31, 2019 $ 0.5 $ 574.7 $ (524.9) $ (162.4) $ 781.0 $ 668.9
Balance at end of period, shares at Dec. 31, 2019 39.0   9.8     39.0
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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical)) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Condensed Consolidated Statement of Stockholders' Equity      
Dividends on ordinary shares $ 1.60 $ 1.56 $ 1.38
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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities      
Net income $ 92.0 $ 292.5 $ 328.3
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 136.0 130.2 110.6
Amortization of deferred financing fees, issuance discount, and excluded component of hedging instruments (0.5) 0.6 5.1
Deferred income tax (37.4) 5.3 14.8
Share-based compensation expense 13.5 15.8 13.8
Earnings of unconsolidated affiliates, net of dividends (9.0) (26.6) 5.3
Unrealized net (gain) loss on foreign exchange forward contracts 3.0 (0.9) 2.6
Loss on extinguishment of long-term debt   0.2 65.3
Gain on sale of businesses and other assets (0.7) (1.0) (10.5)
Impairment charges 0.2 1.9 4.3
Gain on bargain purchase (4.7)    
Pension curtailment and settlement (gain) loss 0.8 0.6 (21.6)
Changes in assets and liabilities      
Accounts receivable 66.6 21.2 (51.8)
Inventories 70.7 (16.0) (80.2)
Accounts payable and other current liabilities (1.7) (43.8) 9.3
Income taxes payable (10.9) (19.7) 9.9
Other assets, net (0.2) (4.4) (4.5)
Other liabilities, net 4.8 10.6 (9.4)
Cash provided by operating activities 322.5 366.5 391.3
Cash flows from investing activities      
Capital expenditures (110.1) (121.4) (147.4)
Net cash received (paid) for asset and business acquisitions, net of cash acquired 0.1   (82.3)
Proceeds from capital expenditures subsidy   1.0  
Proceeds from the sale of businesses and other assets 0.7 1.7 46.2
Distributions from unconsolidated affiliates     0.9
Cash used in investing activities (109.3) (118.7) (182.6)
Cash flows from financing activities      
Deferred financing fees   (0.6) (21.5)
Short term borrowings, net (10.6) (0.3) (0.3)
Purchase of treasury shares (119.7) (142.9) (88.9)
Dividends paid (65.7) (66.0) (58.0)
Proceeds from exercise of option awards 0.9 2.8 9.3
Withholding taxes paid on restricted share units (4.6) (8.2) (0.3)
Prepayment penalty on long-term debt     (53.0)
Cash used in financing activities (206.7) (222.2) (253.0)
Effect of exchange rates on cash (1.4) (6.1) 12.0
Net change in cash, cash equivalents and restricted cash 5.1 19.5 (32.3)
Cash, cash equivalents and restricted cash, beginning of period 452.3 432.8 465.1
Cash, cash equivalents and restricted cash, end of period 457.4 452.3 $ 432.8
Restricted cash $ (1.2) $ (0.0)  
Restricted Cash and Cash Equivalents, Current, Asset, Statement of Financial Position [Extensible List] Other Assets, Current Other Assets, Current Other Assets, Current
Cash and cash equivalents, end of period $ 456.2 $ 452.3 $ 432.8
Supplemental disclosure of cash flow information      
Cash paid for income taxes, net of refunds 66.3 85.2 75.0
Cash paid for interest, net of amounts capitalized 39.7 50.7 63.3
Accrual for property, plant and equipment 17.2 10.2 15.6
2020 Senior Credit Facility      
Adjustments to reconcile net income to net cash provided by operating activities      
Loss on extinguishment of long-term debt     0.8
2021 Term Loan B      
Cash flows from financing activities      
Repayments of Term Loans     (492.5)
2024 Term Loan B      
Adjustments to reconcile net income to net cash provided by operating activities      
Loss on extinguishment of long-term debt   0.2  
Cash flows from financing activities      
Net proceeds from issuance of Term Loan B   696.5 700.0
Repayments of Term Loans $ (7.0) $ (703.5) (1.8)
2025 Senior Notes      
Cash flows from financing activities      
Net proceeds from issuance of Senior Notes     500.0
2022 Senior Notes      
Adjustments to reconcile net income to net cash provided by operating activities      
Loss on extinguishment of long-term debt     64.5
Cash flows from financing activities      
Repayments of Senior Notes     $ (746.0)
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Organization and Business Activities
12 Months Ended
Dec. 31, 2019
Basis of Presentation  
Organization and Business Activities

NOTE 1—ORGANIZATION AND BUSINESS ACTIVITIES

Organization

On June 3, 2010, Bain Capital Everest Manager Holding SCA, an affiliate of Bain Capital (which is referred to as “the former Parent”), was formed through investment funds advised or managed by Bain Capital. Dow Europe Holding B.V. (together with The Dow Chemical Company, “Dow”) retained an indirect ownership interest in the former Parent. Trinseo S.A. (“Trinseo,” and together with its subsidiaries, the “Company”) was also formed on June 3, 2010, incorporated under the existing laws of the Grand Duchy of Luxembourg. At that time, all ordinary shares of Trinseo were owned by the former Parent. On June 17, 2010, Trinseo acquired 100% of the former Styron business from Dow (the “Acquisition”), at which time the Company commenced operations. During the year ended December 31, 2016, the former Parent sold 37,269,567 ordinary shares of the Company in a series of secondary offerings to the market. As such, the former Parent no longer holds an ownership interest in the Company.

Business Activities

The Company is a leading global materials company engaged in the manufacturing and marketing of synthetic rubber, latex binders, and plastics, including various specialty and technologically differentiated products. The Company develops synthetic rubber, latex binders, and plastics products that are incorporated into a wide range of products throughout the world, including tires and other products for automotive applications, carpet and artificial turf backing, coated paper and packaging board, food packaging, appliances, medical devices, consumer electronics and construction applications, among others.

The Company’s operations are located in Europe, North America, and Asia Pacific, supplemented by Americas Styrenics, a styrenics joint venture with Chevron Phillips Chemical Company LP. Refer to Note 5 for further information regarding the Company’s investment in Americas Styrenics.

The Company has significant manufacturing and production operations around the world, which allow service to its global customer base. As of December 31, 2019, the Company’s production facilities included 32 manufacturing plants (which included a total of 77 production units) at 24 sites across 12 countries, including its joint venture. Additionally, as of December 31, 2019, the Company operated 10 research and development (“R&D”) facilities globally, including mini plants, development centers, and pilot coaters.

The Company’s Chief Executive Officer, who is the chief operating decision maker, manages the Company’s operations under six segments, Latex Binders, Synthetic Rubber, Performance Plastics, Polystyrene, Feedstocks, and Americas Styrenics.

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Basis of Presentation and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Basis of Presentation  
Basis of Presentation and Summary of Significant Accounting Policies

NOTE 2—BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements of the Company contain the accounts of all entities that are controlled and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. A VIE is defined as a legal entity that has equity investors that do not have sufficient equity at risk for the entity to support its activities without additional subordinated financial support or, as a group, the holders of the equity at risk lack (i) the power to direct the entity’s activities or (ii) the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity. A VIE is required to be consolidated by a company if that company is the primary beneficiary. Refer to Note 11 for further discussion of the Company’s Accounts Receivable Securitization Facility, which qualifies as a VIE and is consolidated within the Company’s financial statements.

All intercompany balances and transactions are eliminated. Joint ventures over which the Company has the ability to exercise significant influence that are not consolidated are accounted for by the equity method.

Use of Estimates in Financial Statement Preparation

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ from these estimates.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company uses major financial institutions with high credit ratings to engage in transactions involving cash equivalents. The Company minimizes credit risk in its receivables by selling products to a diversified portfolio of customers in a variety of markets located throughout the world.

The Company performs ongoing evaluations of its customers’ credit and generally does not require collateral. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of specific customers to meet their financial obligations, representing its best estimate of probable credit losses in existing trade accounts receivable. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on historical experience.

Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued and other current liabilities, approximate fair value due to their generally short maturities.

The estimated fair values of the Company’s 2024 Term Loan B and 2025 Senior Notes and, when outstanding, borrowings under its 2022 Revolving Facility and Accounts Receivable Securitization Facility (all of which are defined in Note 11) are determined using Level 2 inputs within the fair value hierarchy. The carrying amounts of borrowings under the 2022 Revolving Facility and Accounts Receivable Securitization Facility approximate fair value as these borrowings bear interest based on prevailing variable market rates.

At times, the Company manages its exposure to changes in foreign currency exchange rates, where possible, by entering into foreign exchange forward contracts. Additionally, the Company manages its exposure to variability in interest payments associated with its variable rate debt by entering into interest rate swap agreements. When outstanding, all derivatives, whether designated in hedging relationships or not, are required to be recorded on the consolidated balance sheets at fair value. The fair value of the derivatives is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. The fair value of derivatives also considers the credit default risk of the parties involved.

If the derivative is not designated for hedge accounting treatment, changes in the fair value of the underlying instrument and settlements are recognized in earnings. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative and the hedged item are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative will be recorded in accumulated other comprehensive income or loss (“AOCI”) and will be recognized in the consolidated statements of operations when the hedged item affects earnings or it becomes probable that the forecasted transaction will not occur. If the derivative is designated as a net investment hedge, to the extent it is deemed to be effective, the change in the fair value of the derivative will be recorded within the cumulative translation adjustment account as a component of AOCI and the resulting gains or losses will be recognized in the consolidated statements of operations when the hedged net investment is either sold or substantially liquidated.

As of December 31, 2019 and 2018, the Company had certain foreign exchange forward contracts outstanding that were not designated for hedge accounting treatment and certain foreign exchange forward contracts and interest rate swap agreements that were designated as cash flow hedges. As of December 31, 2019 and 2018, the Company also had certain fixed-for-fixed cross currency swaps (“CCS”) outstanding, which swap U.S. dollar principal and interest payments on the Company’s 2025 Senior Notes for euro-denominated payments. The Company’s CCS have been

designated as a hedge of its net investment in certain European subsidiaries. The CCS were initially designated as a hedge effective September 1, 2017 and were subsequently re-designated as a net investment hedge in conjunction with the Company’s adoption of new hedge accounting guidance effective April 1, 2018.

Forward contracts, interest rate swaps, and cross currency swaps are entered into with a limited number of counterparties, each of which allows for net settlement of all contracts through a single payment in a single currency in the event of a default on or termination of any one contract. The Company records these derivative instruments on a net basis, by counterparty within the consolidated balance sheets.

The Company presents the cash receipts and payments from hedging activities in the same category as the cash flows from the items subject to hedging relationships. As the items subject to economic hedging relationships are the Company’s operating assets and liabilities, the related cash flows are classified within operating activities in the consolidated statements of cash flows.

Refer to Notes 12 and 13 for further information on the Company’s derivative instruments and their fair value measurements.

Foreign Currency Translation

For the majority of the Company’s subsidiaries, the local currency has been identified as the functional currency. For remaining subsidiaries, the U.S. dollar has been identified as the functional currency due to the significant influence of the U.S. dollar on their operations. Gains and losses resulting from the translation of various functional currencies into U.S. dollars are recorded within the cumulative translation adjustment account as a component of AOCI in the consolidated balance sheets. The Company translates asset and liability balances at exchange rates in effect at the end of the period and income and expense transactions at the average exchange rates in effect during the period. Gains and losses resulting from foreign currency transactions are recorded within “Other expense (income), net” in the consolidated statements of operations.

For the years ended December 31, 2019 and 2018, the Company recognized net foreign exchange transaction losses of $6.2 million and $15.8 million, respectively, while for the year ended December 31, 2017, the Company recognized a net foreign exchange transaction gain of $20.6 million. These amounts exclude the impacts of foreign exchange forward contracts discussed above.

Environmental Matters

Accruals for environmental matters are recorded when it is considered probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress, or as additional technical or legal information become available. Accruals for environmental liabilities are recorded within “Other noncurrent obligations” in the consolidated balance sheets at undiscounted amounts. As of December 31, 2019 and 2018, there were no accruals for environmental liabilities recorded.

Environmental costs are capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction or normal operation of a long-lived asset. Any costs related to environmental contamination treatment and clean-ups are charged to expense. Estimated future incremental operations, maintenance, and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable.

Cash and Cash Equivalents

Cash and cash equivalents generally include time deposits or highly liquid investments with original maturities of three months or less and no material liquidity fee or redemption gate restrictions.

Inventories

Inventories are stated at the lower of cost or net realizable value (“NRV”), with cost being determined on the first-in, first-out (“FIFO”) method. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for excess or obsolete inventory, and will write-down the excess or obsolete inventory value to its NRV, if applicable.

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and less impairment, if applicable, and are depreciated over their estimated useful lives using the straight-line method.

Expenditures for maintenance and repairs are recorded in the consolidated statements of operations as incurred. Expenditures that significantly increase asset value, extend useful asset lives or adapt property to a new or different use are capitalized. These expenditures include planned major maintenance activity, or turnaround activities, that increase the Company’s manufacturing plants’ output and improve production efficiency as compared to pre-turnaround operations. As of December 31, 2019 and 2018, $23.1 million and $15.1 million, respectively, of the Company’s net costs related to turnaround activities were capitalized within “Deferred charges and other assets” in the consolidated balance sheets, and are being amortized over the period until the next scheduled turnaround.

The Company periodically evaluates actual experience to determine whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property, plant and equipment. Engineering and other costs directly related to the construction of property, plant and equipment are capitalized as construction in progress until construction is complete and such property, plant and equipment is ready and available to perform its specifically assigned function. The Company also capitalizes interest as a component of the cost of capital assets constructed for its own use. Upon retirement or other disposal, the asset cost and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds, is charged or credited to income.

Impairment and Disposal of Long-Lived Assets

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on a discounted cash flow analysis utilizing market participant assumptions.

Long-lived assets to be disposed of by sale are classified as held-for-sale and are reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of in a manner other than by sale are classified as held-and-used until they are disposed. Refer to Note 20 for information on the Company’s assets classified as held-for-sale as of December 31, 2019.

Goodwill and Other Intangible Assets

The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The Company utilizes a market approach and an income approach (under the discounted cash flow method) to calculate the fair value of its reporting units. When supportable, the Company employs the qualitative assessment of goodwill impairment prescribed by Accounting Standards Codification (“ASC”) 350. The annual impairment assessment is completed using a measurement date of October 1. No goodwill impairment losses were recorded in the years ended December 31, 2019, 2018, and 2017.

Finite-lived intangible assets, such as developed technology, customer relationships, manufacturing capacity rights, and computer software for internal use are amortized on a straight-line basis over their estimated useful life and are reviewed for impairment or obsolescence if events or changes in circumstances indicate that their carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. No intangible asset impairment losses were recorded in the years ended December 31, 2019, 2018, and 2017.

Acquired developed technology is recorded at fair value upon acquisition and is amortized using the straight-line method over the estimated useful life ranging from 9 years to 15 years. The Company determines amortization periods for developed technology based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit and competitive advantage related to existing processes and procedures at the date of acquisition. Significant changes to any of these factors may result in a reduction in the useful life of these assets.

Customer relationships are recorded at fair value upon acquisition and are amortized using the straight-line method over the estimated useful life of 19 years. The Company determines amortization periods for customer relationships based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit and customer retention rates. Significant changes to any of these factors may result in a reduction in the useful life of these assets.

Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates in which the Company has the ability to exercise significant influence (generally, 20% to 50%-owned companies) are accounted for using the equity method. Investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recorded whenever a decline in fair value of an investment in an unconsolidated affiliate below its carrying amount is determined to be other-than-temporary.

The Company uses the cumulative earnings approach for presenting distributions received from equity method investees in the consolidated statements of cash flows.

Deferred Financing Fees

Capitalized fees and costs incurred in connection with the Company’s recognized debt liabilities are presented in the consolidated balance sheets as a direct reduction from the carrying value of those debt liabilities, consistent with debt discounts. Deferred financing fees related to the Company’s revolving debt facilities are included within “Deferred charges and other assets” in the consolidated balance sheets.

Deferred financing fees on the Company’s term loan and senior note financing arrangements are amortized using the effective interest method over the term of the respective agreement. Deferred financing fees on the Company’s revolving facilities and the Accounts Receivable Securitization Facility are amortized using the straight-line method over the term of the respective facility. Amortization of deferred financing fees is recorded in “Interest expense, net” within the consolidated statements of operations.

Restricted Cash and Cash Equivalents

Restrictions on the Company’s cash and cash equivalents are primarily related to customs requirements. As of December 31, 2019 and 2018, the Company had restricted cash and cash equivalents of $1.2 million and $0.0 million, respectively, included within “Other current assets” in the consolidated balance sheets.

Sales

Sales are recognized at a point when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services when the Company’s related performance obligation is satisfied under the terms of the contract. Standard terms of delivery are included in contracts of sale, order confirmation documents, and invoices. Sales and other taxes that the Company collects concurrent with sales-producing activities are excluded from “Net sales” and included as a component of “Cost of sales” in the consolidated statements of operations. Additionally, freight and any directly related costs of transporting finished products to customers are accounted for as fulfilment costs and are also included within “Cost of sales.”

The amount of net sales recognized varies with changes in returns, rebates, cash sales incentives, and other allowances offered to customers based on the Company's experience. For arrangements where the period between customer payment and transfer of goods/services is determined to be one year or less at contract inception, the Company applies the practical expedient exception available under ASC 606 and does not adjust the promised amount of consideration under the contract for the effects of a significant financing component. Additionally, the Company’s incremental costs of obtaining contracts are expensed as incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less, and are included within “Selling, general and administrative expenses” in the consolidated statements of operations, pursuant to the practical expedient in ASC 606.

Cost of Sales

The Company classifies the costs of manufacturing and distributing its products as cost of sales. Manufacturing costs include raw materials, utilities, packaging, employee salary and benefits and fixed manufacturing costs associated with production. Fixed manufacturing costs include such items as plant site operating costs and overhead, production planning, depreciation and amortization, repairs and maintenance, environmental, and engineering costs. Distribution costs include shipping and handling costs. Freight and any directly related costs of transporting finished products to customers are also included within cost of sales. As discussed above, inventory costs are recorded within cost of sales utilizing the FIFO method.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses are generally charged to expense as incurred. SG&A expenses are the cost of services performed by the marketing and sales functions (including sales managers, field sellers, marketing research, marketing communications and promotion and advertising materials) and by administrative functions (including product management, R&D, business management, customer invoicing, human resources, information technology, legal and finance services, such as accounting and tax). Salary and benefit costs, including share-based compensation, for these sales personnel and administrative staff are included within SG&A expenses. R&D expenses include the cost of services performed by the R&D function, including technical service and development, process research including pilot plant operations, and product development. The Company also includes restructuring charges within SG&A expenses.

Total R&D costs included in SG&A expenses were $54.6 million, $56.0 million, and $54.3 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company expenses promotional and advertising costs as incurred to SG&A expenses. Total promotional and advertising expenses were $1.8 million, $1.6 million, and $1.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Restructuring charges included within SG&A expenses were $18.6 million, $9.3 million, and $8.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Refer to Note 20 for further information.

Pension and Postretirement Benefits Plans

The Company has several defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company also provides certain health care and life insurance benefits to retired employees in the United States. The U.S.-based plan provides health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits.

Accounting for defined benefit pension plans and other postretirement benefit plans, and any curtailments and settlements thereof, requires various assumptions, including, but not limited to, discount rates, expected rates of return on plan assets and future compensation growth rates. The Company evaluates these assumptions at least once each year, or as facts and circumstances dictate, and makes changes as conditions warrant.

A settlement is a transaction that is an irrevocable action that relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and that eliminates significant risks related to the obligation and the assets used to effect the settlement. When a settlement occurs, the Company does not record settlement gains or losses during interim periods when the cost of all settlements in a year is less than or equal to the sum of the service cost and interest cost components of net periodic benefit cost for the plan in that year.

Income Taxes

The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when

changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets.

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision is made for income taxes on unremitted earnings of subsidiaries and affiliates, unless such earnings are deemed to be indefinitely invested.

The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The current portion of uncertain income taxes positions is recorded in “Income taxes payable,” while the long-term portion is recorded in “Other noncurrent obligations” in the consolidated balance sheets.

Share-based Compensation

Refer to Note 17 for detailed discussion regarding the Company’s share-based compensation award programs. In connection with the Company’s initial public offering (“IPO”), the Company’s board of directors approved the 2014 Omnibus Plan. Since that time, certain equity grants have been awarded, comprised of restricted share units (“RSUs”), options to purchase shares (“option awards”), and performance share units (“PSUs”). Share-based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest. The Company’s policy election is to recognize forfeitures as incurred, rather than estimating forfeitures in advance.

Compensation costs for the RSUs are measured at the grant date based on the fair value of the award and are recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. Dividend equivalents accumulate on RSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated RSUs vest.

Compensation costs for the option awards are measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate service period utilizing graded vesting. The fair value for option awards is computed using the Black-Scholes pricing model, which uses inputs and assumptions determined as of the date of grant.

Compensation costs for the PSUs are measured at the grant date based on the fair value of the award, which is computed using a Monte Carlo valuation model, and is recognized ratably as expense over the applicable vesting term. Dividend equivalents accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated PSUs vest.

Treasury Shares

The Company may, from time to time, repurchase its ordinary shares at prevailing market rates. Share repurchases are recorded at cost in “Treasury shares” within shareholders’ equity in the consolidated balance sheets. It is the Company’s policy that, as RSUs, PSUs, and option awards vest or are exercised, ordinary shares will be issued from the existing pool of treasury shares on a first-in-first-out basis. Refer to Note 17 for details of vesting for RSUs and PSUs as well as the exercises of option awards.

Recent Accounting Guidance

In February 2016, the FASB issued guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize on the consolidated balance sheets lease liabilities and corresponding right-of-use assets (“ROU”) for all leases with terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The new guidance must be adopted using a modified retrospective transition, applying the new standard to all leases existing at the date of initial application. The Company adopted the standard effective January 1, 2019, and as a result, the Company recorded ROU assets and lease liabilities of $73.0 million and $72.4 million, respectively, on the consolidated balance sheet as of January 1, 2019. The Company’s adoption of this standard did not result in a cumulative

effect adjustment being recorded to opening retained earnings as of January 1, 2019 and did not have a material impact on the Company’s consolidated statements of operations or cash flows. Refer to Note 23 for new disclosure requirements in effect as a result of this adoption.

In August 2018, the FASB issued guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension plans or other postretirement plans. Under the guidance, the Company is required to disclose reasons for significant gains and losses related to changes in the benefit obligation for the period. The Company adopted this guidance during the fourth quarter of 2019 on a retrospective basis, which did not result in material impact on its consolidated financial statements. Refer to Note 16 for new disclosure requirements in effect as a result of this adoption.

In August 2018, the FASB issued guidance which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard update is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company will adopt the new guidance prospectively to eligible costs incurred on or after the date first applied. The Company does not anticipate that adoption of this guidance will have a material impact on its consolidated financial statements, barring significant future cloud computing transactions.

In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The amended guidance includes removal of certain exceptions to the general principles of ASC 740, Income Taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. This guidance is effective for public business entities for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the timing and impacts of adopting this guidance on its consolidated financial statements.

v3.19.3.a.u2
Net Sales
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Net Sales

NOTE 3—NET SALES

The following table provides disclosure of net sales to external customers by primary geographical market (based on the location where the sales originated), by segment for the years ended December 31, 2019, 2018, and 2017.

Latex

Synthetic

Performance

 

Year Ended

Binders

Rubber

Plastics

Polystyrene

Feedstocks

Total

 

December 31, 2019

United States

$

263.7

$

$

305.9

$

$

10.7

$

580.3

Europe

 

388.5

 

441.3

 

735.9

 

448.8

 

148.8

 

2,163.3

Asia-Pacific

 

239.3

 

 

238.2

 

360.6

 

96.6

 

934.7

Rest of World

 

11.3

 

 

86.2

 

 

 

97.5

Total

$

902.8

$

441.3

$

1,366.2

$

809.4

$

256.1

$

3,775.8

December 31, 2018

United States

$

288.2

$

$

326.4

$

0.2

$

12.5

$

627.3

Europe

 

459.4

 

572.5

 

931.2

 

607.8

 

211.7

 

2,782.6

Asia-Pacific

 

306.6

 

 

226.2

 

409.1

 

162.4

1,104.3

Rest of World

 

14.8

 

93.8

 

 

 

108.6

Total

$

1,069.0

$

572.5

$

1,577.6

$

1,017.1

$

386.6

$

4,622.8

December 31, 2017

United States

$

290.9

$

$

297.4

$

1.0

$

13.4

$

602.7

Europe

 

468.5

 

582.8

 

866.3

 

571.7

 

199.6

 

2,688.9

Asia-Pacific

 

320.6

 

 

167.4

 

368.7

 

194.7

 

1,051.4

Rest of World

 

17.1

 

 

88.0

 

 

 

105.1

Total

$

1,097.1

$

582.8

$

1,419.1

$

941.4

$

407.7

$

4,448.1

For all material contracts with customers, control is transferred and sales are recognized at a point in time when the Company satisfies the performance obligations according to the terms of the contract, and when title and the risk of loss is passed to the customer. Title and risk of loss varies by region and customer and is determined based upon the purchase order received from the customer and the applicable contractual terms or jurisdictional standards. The

Company receives cash equal to the invoice price for most product sales, subject to cash sales incentives with certain customers, with payment terms generally ranging from 10 to 90 days (with an approximate weighted-average of 58 days as of December 31, 2019), also varying by segment and region.

Certain of the Company’s contracts with customers contain multiple performance obligations, most commonly due to the sale of multiple distinct products. The transaction price within these contracts is allocated between these separate and distinct products based on their stand-alone selling prices, as defined within the contract. The Company’s products are typically sold at observable stand-alone sales values, which are used to determine the estimated stand-alone selling price. The stand-alone selling prices of the Company’s products are generally based, in part, on the current or forecasted costs of key raw materials, but are often subject to a predetermined lag period for the pass through of these costs. As such, contracts with customers typically include provisions that allow for the changes in stand-alone selling prices to reflect the pass through of changes in raw material costs, often using pricing formulas that utilize commodity indices.

In cases where the Company’s transaction price is considered variable at the point of revenue recognition, the ‘most likely amount’ method is used to estimate the effect of any related uncertainty. In formulating this estimate, the Company considers all historical, current, and forecasted information that is reasonably available to identify a reasonable number of possible consideration amounts. Once the transaction price, including impacts of variable consideration, is estimated, revenue is recognized only to the extent that it is probable that a subsequent change in the estimate would not result in a significant revenue reversal. Furthermore, if the Company is not able to rely on observable stand-alone selling prices, the ‘expected cost plus a margin approach’ is utilized to estimate the stand-alone selling price of each performance obligation, primarily utilizing historical experience. During the year ended December 31, 2019, the impact of recognizing changes in selling prices related to prior periods was immaterial.

v3.19.3.a.u2
Acquisitions and Divestitures
12 Months Ended
Dec. 31, 2019
Acquisitions and Divestitures  
Acquisitions and Divestitures

NOTE 4—ACQUISITIONS AND DIVESTITURES

Acquisition of API Plastics

In July 2017, the Company acquired 100% of the equity interest of API Applicazioni Plastiche Industriali S.p.A (“API Plastics”) a privately held company that manufactures soft-touch polymers and bioplastics, such as thermoplastic elastomers (“TPEs”). The gross purchase price for the acquisition was $90.6 million, inclusive of $8.4 million of cash acquired, yielding a net purchase price of $82.3 million, which was paid for in the year ended December 31, 2017. Of the total consideration for the transaction, the Company allocated $28.3 million to goodwill, based on the expected future cash flows of the acquired business. The Company finalized the purchase price allocation for API Plastics during the third quarter of 2018, which is described in further detail in its Form 10-K filed on February 28, 2019.

Acquisition of Latex Binders Assets in Germany

On October 1, 2019, the Company completed the acquisition from Dow of its latex binder production facilities and related infrastructure in Rheinmünster, Germany. The transaction includes full ownership and operational control of latex production facilities, site infrastructure, and service contracts, as well as certain employees transferring from Dow to Trinseo. This acquisition provides Trinseo with manufacturing assets supporting its strategy to grow its Latex Binders business in applications serving the coatings, adhesives, specialty paper, and sealants markets. The transaction, which is being accounted for as a business combination, did not require any upfront cash outlay from Trinseo. The Company assumed net liabilities of $2.0 million as well as employees transferred in connection with the acquisition, as detailed in the table below. In exchange for the net liabilities assumed, Trinseo received net cash of $6.7 million.

The Company allocated the purchase price of the acquisition, which was represented by the value of the pension liabilities assumed net of cash and net assets received in connection with the transaction, to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. There was an excess in the aggregate fair value of the identifiable net assets acquired over the purchase price, which was recorded as a bargain purchase gain of $4.7 million during the fourth quarter of 2019. There were no intangible assets identified in conjunction with this acquisition.

The Company calculated the fair value of the assets acquired and certain liabilities assumed using the market, cost, and income approaches (or a combination thereof). Fair values of assets and certain liabilities were determined based on Level 3 inputs including comparable asset sale information, discount rates, anticipated useful lives and depreciation

curves, and estimated future cash flows. The fair value of pension liabilities assumed was determined in accordance with ASC 715 using key inputs including, but not limited to, discount rates, expected rates of return on plan assets, and future compensation growth rates. The various inputs used in the asset and pension valuations require management judgment.

The purchase price allocation is based upon preliminary information and is subject to change if additional information about the facts and circumstances that existed at the acquisition date become available. Additional information is being gathered to finalize these preliminary measurements, particularly with respect to property, plant and equipment, inventory, deferred income taxes and pension liabilities. Further adjustments may be necessary as a result of the Company’s ongoing assessment of additional information related to the fair value of assets acquired and liabilities assumed, including the bargain purchase gain, during the measurement period.

The following table summarizes the preliminary fair value measurement of the assets acquired and liabilities assumed as of the date of acquisition:

October 1,

    

2019

Inventories

$

3.9

Property, plant, and equipment

48.2

Right-of-use-assets - operating

0.3

Total fair value of assets acquired

52.4

Accrued expenses and other current liabilities

(0.6)

Noncurrent lease liabilities - operating

(0.3)

Deferred income tax liabilities

(2.0)

Other noncurrent obligations(1)

(51.5)

Total fair value of liabilities assumed

$

(54.4)

Net liabilities assumed

$

(2.0)

Net cash received

$

6.7

Bargain purchase gain(2)

$

4.7

(1)Relates primarily to pension liabilities of $44.5 million and unfavorable leasehold interest of $7.0 million. The unfavorable leasehold interest is being amortized over its estimated remaining useful life of 18 years.
(2)The bargain purchase gain is included within “Other expense (income), net” in the consolidated statement of operations for the year ended December 31, 2019.

During the year ended December 31, 2019, $2.2 million of expense was incurred related to jurisdictional asset transfer taxes expected to be paid in conjunction with this acquisition, which were included within “Other expense (income), net” in the consolidated statement of operations. Furthermore, during the year ended December 31, 2019, transaction and integration costs related to advisory and professional fees incurred in conjunction with the acquisition were $1.6 million, and are included within “Selling, general and administrative expenses” in the consolidated statement of operations. Pro forma results of operations information have not been presented as the effect of the acquisition is not material. The operating results of the acquisition are included within the Company’s consolidated statement of operations since the acquisition date of October 1, 2019 and were not material for the year ended December 31, 2019.

Divestiture of Brazil Business

During the second quarter of 2016, the Company signed a definitive agreement to sell Trinseo do Brasil Comercio de Produtos Quimicos Ltda. (“Trinseo Brazil”), its primary operating entity in Brazil which included both a latex binders and PC & Compounding business. Under the agreement of sale, which closed on October 1, 2016, Trinseo Brazil was sold to a single counterparty, for a selling price that is subject to certain contingent consideration payments, which could be paid by the buyer over a five-year period subsequent to the closing date, based on the results of the Trinseo Brazil latex binders business during that time. During the year ended December 31, 2017, the Company received $1.7 million in proceeds from the sale of these businesses. During the years ended December 31, 2019 and 2018, the Company recognized $0.7 million and $1.0 million, respectively, of consideration earned for the performance of the transferred

latex binders business, of which $0.7 million and $0.5 million, respectively, was received in cash.

v3.19.3.a.u2
Investments in Unconsolidated Affiliates
12 Months Ended
Dec. 31, 2019
Investments in Unconsolidated Affiliates  
Investments in Unconsolidated Affiliates

NOTE 5—INVESTMENTS IN UNCONSOLIDATED AFFILIATES

During the year ended December 31, 2019, the Company had one joint venture: Americas Styrenics, a styrene and polystyrene joint venture with Chevron Phillips Chemical Company LP. Previously, the Company also had a 50% share in Sumika Styron Polycarbonate Limited (“Sumika Styron Polycarbonate,” a PC joint venture with Sumitomo Chemical Company Limited), until the sale of the Company’s investment in the joint venture during the first quarter of 2017, as discussed further below. Investments held in unconsolidated affiliates are accounted for by the equity method. The results of Americas Styrenics are included within its own reporting segment. The results of Sumika Styron Polycarbonate were included within the Performance Plastics segment prior to the sale of this investment.

Equity in earnings from unconsolidated affiliates was $119.0 million, $144.1 million, and $123.7 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Both of the unconsolidated affiliates are privately held companies; therefore, quoted market prices for their equity interests are not available. The summarized financial information of the Company’s unconsolidated affiliates is shown below. This table includes summarized financial information for Sumika Styron Polycarbonate through the date of sale in January 2017.

December 31,

 

2019

2018

 

Current assets

    

$

326.6

    

$

373.4

Noncurrent assets

 

247.7

 

236.2

Total assets

$

574.3

$

609.6

Current liabilities

$

158.8

$

167.2

Noncurrent liabilities

 

18.5

 

17.4

Total liabilities

$

177.3

$

184.6

Year Ended

 

December 31, 

 

    

2019

    

2018

    

2017

 

Sales

$

1,486.1

    

$

1,825.7

$

1,798.1

Gross profit

$

243.2

$

310.2

$

244.3

Net income

$

192.5

$

260.2

$

196.3

There were no sales to unconsolidated affiliates for the year ended December 31, 2019 and 2018. Sales to unconsolidated affiliates for the year ended December 31, 2017 were $3.6 million. Purchases from unconsolidated affiliates were $81.9 million, $91.5 million, and $78.8 million for the years ended December 31, 2019, 2018, and 2017, respectively.

As of December 31, 2019 and 2018, respectively, $0.1 million and $0.1 million due from unconsolidated affiliates was included in “Accounts receivable, net of allowance” and $6.3 million and $5.4 million due to unconsolidated affiliates was included in “Accounts payable” in the consolidated balance sheets.

Americas Styrenics

As of December 31, 2019 and 2018, respectively, the Company’s investment in Americas Styrenics was $188.1 million and $179.1 million, which was $10.3 million, and $33.3 million less than the Company’s 50% share of Americas Styrenics’ underlying net assets. These amounts represent the difference between the book value of assets contributed to the joint venture at the time of formation (May 1, 2008) and the Company’s 50% share of the total recorded value of the joint venture’s assets and certain adjustments to conform with the Company’s accounting policies. This difference is being amortized over a weighted-average remaining useful life of the contributed assets of approximately 1.5 years as of December 31, 2019. The Company received dividends from Americas Styrenics of $110.0 million, $117.5 million, and $120.0 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Sumika Styron Polycarbonate

On January 31, 2017, the Company completed the sale of its 50% share in Sumika Styron Polycarbonate to Sumitomo Chemical Company Limited for total sales proceeds of $42.1 million. As a result, the Company recorded a gain on sale of $9.3 million during the year ended December 31, 2017, which was included within “Other expense (income), net” in the consolidated statement of operations and was allocated entirely to the Performance Plastics segment. In addition, the parties have entered into a long-term agreement to continue sourcing PC resin from Sumika Styron Polycarbonate to the Company’s Performance Plastics segment.

Due to the sale in January 2017, the Company no longer had an investment in Sumika Styron Polycarbonate as of December 31, 2017. The Company received dividends from Sumika Styron Polycarbonate of $9.8 million for the year ended December 31, 2017.

v3.19.3.a.u2
Accounts Receivable
12 Months Ended
Dec. 31, 2019
Accounts Receivable [Abstract]  
Accounts Receivable

NOTE 6—ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:

December 31,

 

2019

2018

 

Trade receivables

    

$

455.0

    

$

535.4

Non-income tax receivables

 

63.4

 

74.6

Other receivables

 

57.7

 

44.2

Less: allowance for doubtful accounts

 

(5.3)

 

(6.1)

Total

$

570.8

$

648.1

For the years ended December 31, 2019, 2018, and 2017, the Company recognized bad debt expense (benefit) of $(0.7) million, $0.6 million, and $1.5 million, respectively.

v3.19.3.a.u2
Inventories
12 Months Ended
Dec. 31, 2019
Inventories  
Inventories

NOTE 7—INVENTORIES

Inventories consisted of the following:

December 31,

    

2019

2018

Finished goods

    

$

210.8

    

$

269.8

Raw materials and semi-finished goods

 

190.1

 

205.8

Supplies

 

37.3

 

34.8

Total

$

438.2

$

510.4

v3.19.3.a.u2
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

NOTE 8—PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

Estimated Useful

December 31,

 

Lives (Years)

2019

2018

 

Land

    

N/A

    

$

53.0

    

$

26.0

Land and waterway improvements

 

1 - 20

 

26.9

 

18.4

Buildings

 

10 - 50

 

110.7

 

97.0

Machinery and equipment

 

3 - 10

 

955.5

 

912.9

Leasehold interests

 

9 - 40

 

41.6

 

40.9

Other property

 

1 - 20

 

47.4

 

34.8

(1)

Construction in process

N/A

 

56.4

 

52.7

Property, plant and equipment

 

1,291.5

 

1,182.7

Less: accumulated depreciation

 

(665.7)

 

(590.6)

Property, plant and equipment, net

$

625.8

$

592.1

(1)This prior year amount has been reclassified within the table to conform to the current year presentation.

Year Ended

 

December 31,

 

2019

2018

2017

 

Depreciation expense

    

$

96.9

    

$

95.7

    

$

77.9

Capitalized interest

$

3.0

$

3.6

$

5.0

v3.19.3.a.u2
Goodwill
12 Months Ended
Dec. 31, 2019
Goodwill.  
Goodwill and Intangible Assets

NOTE 9—GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table shows the annual changes in the carrying amount of goodwill, by segment, from December 31, 2017 through December 31, 2019:

Latex

Synthetic

Performance

Americas

 

    

Binders

    

Rubber

    

Plastics

    

Polystyrene

    

Feedstocks

    

Styrenics

    

Total

 

Balance at December 31, 2017

    

$

16.5

$

11.7

$

39.6

$

4.7

$

$

$

72.5

Foreign currency impact

 

(0.6)

(0.4)

(2.3)

(0.2)

(3.5)

Balance at December 31, 2018

$

15.9

$

11.3

$

37.3

$

4.5

$

$

$

69.0

Foreign currency impact

 

(0.3)

(0.3)

(0.6)

(0.1)

 

(1.3)

Balance at December 31, 2019

$

15.6

$

11.0

$

36.7

$

4.4

$

$

$

67.7

Goodwill impairment testing is performed annually as of October 1. In 2019, the Company performed its annual impairment test for goodwill and determined that the estimated fair value of each reporting unit was in excess of the carrying value indicating that none of the Company’s goodwill was impaired. The Company concluded there were no goodwill impairments or triggering events for the years ended December 31, 2019, 2018, and 2017.

 

Other Intangible Assets

The following table provides information regarding the Company’s other intangible assets as of December 31, 2019 and 2018:

December 31, 2019

December 31, 2018

 

Estimated Useful

Gross Carrying

Accumulated

Gross Carrying

Accumulated

 

   

Life (Years)

   

Amount

   

Amortization

   

Net

   

Amount

   

Amortization

   

Net

 

Developed technology

9 - 15

$

188.6

$

(117.2)

$

71.4

$

192.3

$

(105.6)

$

86.7

Customer Relationships

 

19

 

13.8

 

(1.8)

 

12.0

 

14.1

 

(1.1)

 

13.0

Manufacturing Capacity Rights

 

6

 

22.1

 

(20.0)

 

2.1

 

21.8

 

(16.8)

 

5.0

Software

 

5 - 10

 

119.2

 

(50.0)

 

69.2

 

101.9

 

(35.3)

 

66.6

Software in development

 

N/A

 

34.7

 

 

34.7

 

17.2

 

 

17.2

Other

 

3

 

4.3

 

(2.2)

 

2.1

 

3.9

 

(1.3)

 

2.6

Total

$

382.7

$

(191.2)

$

191.5

$

351.2

$

(160.1)

$

191.1

Amortization expense related to finite-lived intangible assets totaled $33.0 million, $29.7 million, and $27.0 million, for the years ended December 31, 2019, 2018, and 2017, respectively.

The following table details the Company’s estimated amortization expense for the next five years, excluding any amortization expense related to software currently in development:

Estimated Amortization Expense for the Next Five Years

 

2020

2021

2022

2023

2024

 

$

30.6

    

$

26.6

    

$

25.7

    

$

25.3

    

$

24.9

v3.19.3.a.u2
Accounts Payable
12 Months Ended
Dec. 31, 2019
Payables and Accruals [Abstract]  
Accounts Payable

NOTE 10—ACCOUNTS PAYABLE

Accounts payable consisted of the following:

December 31,

 

2019

2018

 

Trade payables

    

$

304.6

    

$

319.9

Other payables

 

38.4

 

34.3

Total

$

343.0

$

354.2

v3.19.3.a.u2
Debt
12 Months Ended
Dec. 31, 2019
Debt  
Debt

NOTE 11—DEBT

Refer to discussion below for details and definitions of the Company’s debt facilities. The Company was in compliance with all debt related covenants as of December 31, 2019 and 2018.

December 31, 2019

   

Interest Rate as of
December 31, 2019

   

Maturity Date

   

Carrying Amount

   

Unamortized Deferred Financing Fees(1)

    

Total Debt, Less Unamortized Deferred Financing Fees

   

Senior Credit Facility

2024 Term Loan B

3.799%

September 2024

$

684.3

$

(13.7)

$

670.6

2022 Revolving Facility(2)

Various

September 2022

2025 Senior Notes

5.375%

September 2025

500.0

(7.3)

492.7

Accounts Receivable Securitization Facility(3)

Various

September 2021

Other indebtedness

Various

Various

10.4

10.4

Total debt

$

1,194.7

$

(21.0)

$

1,173.7

Less: current portion(4)

(11.1)

Total long-term debt, net of unamortized deferred financing fees

$

1,162.6

December 31, 2018

Interest Rate as of December 31, 2018

    

Maturity
Date

    

Carrying
Amount

    

Unamortized Deferred
Financing Fees
(1)

    

Total Debt, Less
Unamortized
Deferred
Financing Fees

    

Senior Credit Facility

    

2024 Term Loan B

4.522%

September 2024

$

691.3

$

(16.2)

$

675.1

2022 Revolving Facility(2)

Various

September 2022

2025 Senior Notes

5.375%

September 2025

500.0

(8.4)

491.6

Accounts Receivable Securitization Facility(3)

Various

September 2021

 

Other indebtedness

Various

Various

 

1.1

1.1

Total debt

$

1,192.4

$

(24.6)

$

1,167.8

Less: current portion

 

(7.0)

Total long-term debt, net of unamortized deferred financing fees

$

1,160.8

(1)This caption does not include unamortized deferred financing fees of $2.6 million and $3.6 million as of December 31, 2019 and 2018, respectively, related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the consolidated balance sheets.
(2)The Company had $361.0 million (net of $14.0 million outstanding letters of credit) of funds available for borrowing under this facility as of December 31, 2019. Additionally, the Company is required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum.
(3)As of December 31, 2019, the Company had $137.6 million of accounts receivable available to support this facility, based on the pool of eligible accounts receivable. In regard to outstanding borrowings, fixed interest charges are 1.95% plus variable commercial paper rates, while for available, but undrawn commitments, fixed charges are 1.00%.
(4)As of December 31, 2019 and 2018, the current portion of long-term debt is primarily related to $7.0 million of scheduled future principal payments on the 2024 Term Loan B.

Total interest expense, net recognized during the years ended December 31, 2019, 2018, and 2017, was $39.3 million, $46.4 million, and $70.1 million, respectively, of which $4.7 million, $4.5 million, and $5.1 million,

respectively, represented amortization of deferred financing fees and debt discounts. Total accrued interest on outstanding debt as of December 31, 2019 and 2018 was $4.4 million, excluding the impact of the CCS (see Note 12). Accrued interest is recorded within “Accrued expenses and other current liabilities” on the consolidated balance sheets.

 

2020 Senior Credit Facility

On May 5, 2015, Trinseo Materials Operating S.C.A. and Trinseo Materials Finance, Inc. (together, the “Issuers” or the “Borrowers”), both wholly-owned subsidiaries of the Company, entered into a senior secured credit agreement, which provided senior secured financing of up to $825.0 million (the “2020 Senior Credit Facility”). The 2020 Senior Credit Facility provided for senior secured financing consisting of a (i) $325.0 million revolving credit facility, with a $25.0 million swingline subfacility and a $35.0 million letter of credit subfacility (the “2020 Revolving Facility”) maturing in May 2020 and (ii) $500.0 million senior secured term loan B facility maturing in November 2021 (the “2021 Term Loan B”).

In September 2017, upon completion of the refinancing transactions discussed below, the Company terminated the 2020 Senior Credit Facility. Prior to this termination, the Company had no outstanding borrowings under the 2020 Revolving Facility and had $490.0 million outstanding under the 2021 Term Loan B, excluding the unamortized original issue discount. As a result of this termination, the Company recognized a $0.8 million loss on extinguishment of long-term debt during the year ended December 31, 2017, comprised entirely of the write-off of a portion of the existing unamortized deferred financing fees and unamortized original issue discount related to the 2021 Term Loan B. The remaining unamortized deferred financing fees and unamortized original issue discount for both the 2020 Revolving Facility and 2021 Term Loan B remain capitalized and are being amortized along with new deferred financing fees over the life of the new facilities, as discussed in further detail below.

Senior Credit Facility

On September 6, 2017, the Issuers entered into a new senior secured credit agreement (the “Credit Agreement”), which provides senior secured financing of up to $1,075.0 million (the “Senior Credit Facility”). The Senior Credit Facility provides for senior secured financing consisting of a (i) $375.0 million revolving credit facility, with a $25.0 million swingline subfacility and a $35.0 million letter of credit subfacility maturing in September 2022 (the “2022 Revolving Facility”) and a (ii) $700.0 million senior secured term loan B facility maturing in September 2024 (the “2024 Term Loan B”). Amounts under the 2022 Revolving Facility are available in U.S. dollars and euros.

Fees incurred in connection with the issuance of the 2024 Term Loan B were $12.3 million. A portion of the 2024 Term Loan B met the criteria for modification accounting; thus, $1.2 million of these fees were expensed and included within “Other expense (income), net” in the consolidated statement of operations. The remaining $11.1 million of fees were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheets. The capitalized fees are being amortized along with the remaining $8.1 million of unamortized deferred financing fees from the 2021 Term Loan B (defined above) over the seven-year term of the 2024 Term Loan B using the effective interest method.

Fees incurred in connection with the issuance of the 2022 Revolving Facility were $0.8 million, which were capitalized and recorded within “Deferred charges and other assets” on the consolidated balance sheets, and are being amortized along with the remaining $4.0 million of unamortized deferred financing fees from the 2020 Revolving Facility over the five-year term of the 2022 Revolving Facility using the straight-line method.

As of December 31, 2019, the 2024 Term Loan B bears an interest rate of the London Interbank Offered Rate (“LIBOR”) plus 2.00%, subject to a 0.00% LIBOR floor, which has been the effective rate since May 22, 2018, when the Issuers repriced the interest rate from the initial rate of LIBOR plus 2.50%, subject to a 0.00% LIBOR floor. The repricing did not affect any of the other terms of the 2024 Term Loan B; however, as a result of the repricing, the Company recognized a $0.2 million loss on extinguishment of long-term debt during the year ended December 31, 2018, comprised entirely of the write-off of a portion of the existing unamortized deferred financing fees related to the 2024 Term Loan B. Fees incurred in connection with the repricing were $1.1 million, of which $0.5 million were expensed and included within “Other expense (income), net” in the consolidated statement of operations during the year ended December 31, 2018 and the remaining $0.6 million were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the consolidated balance sheets. The capitalized fees associated with the

repricing are being amortized along with the remaining unamortized deferred financing fees related to the 2024 Term Loan B over its original seven-year term.

The 2024 Term Loan B requires scheduled quarterly payments in amounts equal to 0.25% of the original principal amount of the 2024 Term Loan B, with the balance to be paid at maturity. As of December 31, 2019 and 2018, $7.0 million of the scheduled future payments related to this facility were classified as current debt on the Company’s consolidated balance sheets.

Loans under the 2022 Revolving Facility, at the Borrowers’ option, may be maintained as (a) LIBOR loans, which bear interest at a rate per annum equal to LIBOR plus the applicable margin (as defined in the Credit Agreement), if applicable, or (b) base rate loans which bear interest at a rate per annum equal to the base rate plus the applicable margin (as defined in the Credit Agreement).

The Senior Credit Facility is collateralized by a security interest in substantially all of the assets of the Borrowers, and the guarantors thereunder, including Trinseo Materials S.à r.l., certain Luxembourg subsidiaries and certain foreign subsidiaries organized in the United States, The Netherlands, Hong Kong, Singapore, Ireland, Germany, and Switzerland.

The Senior Credit Facility requires the Borrowers and their restricted subsidiaries to comply with customary affirmative, negative, and financial covenants, including limitations on their abilities to incur liens; make certain loans and investments; incur additional debt (including guarantees or other contingent obligations); merge, consolidate liquidate or dissolve; transfer or sell assets; pay dividends and other distributions to shareholders or make certain other restricted payments; enter into transactions with affiliates; restrict any restricted subsidiary from paying dividends or making other distributions or agree to certain negative pledge clauses; materially alter the business they conduct; prepay certain other indebtedness; amend certain material documents; and change their fiscal year.

The 2022 Revolving Facility contains a financial covenant that requires compliance with a springing first lien net leverage ratio test. If the outstanding balance under the 2022 Revolving Facility exceeds 30% of the $375.0 million borrowing capacity (excluding undrawn letters of credit up to $10.0 million and cash collateralized letters of credit) at a quarter end, then the Borrowers’ first lien net leverage ratio may not exceed 2.00 to 1.00.

2022 Senior Notes

On May 5, 2015, the Issuers executed an indenture pursuant to which they issued $300.0 million aggregate principal amount of 6.750% senior notes due May 1, 2022 (the “USD Notes”) and €375.0 million aggregate principal amount of 6.375% senior notes due May 1, 2022 (the “Euro Notes,” and together with the USD Notes, the “2022 Senior Notes”).

On September 7, 2017, using the net proceeds from the issuance of the 2024 Term Loan B discussed above, together with the net proceeds from the issuance of the 2025 Senior Notes (defined and discussed below), and available cash, the Company redeemed all outstanding borrowings under the 2022 Senior Notes, totaling $746.0 million in USD-equivalent principal, together with a total combined call premium of $53.0 million (with a redemption price of approximately 106.572% on the USD Notes and a redemption price of approximately 107.459% on the Euro Notes), and accrued and unpaid interest thereon of $17.0 million.

As a result of this redemption, the Company recorded a loss on extinguishment of long-term debt of $64.5 million during the year ended December 31, 2017, which was comprised of the $53.0 million call premium and the write-off of $11.5 million of unamortized deferred financing fees related to the 2022 Senior Notes.

2025 Senior Notes

On August 29, 2017, the Issuers executed an indenture (the “Indenture”) pursuant to which they issued $500.0 million aggregate principal amount of 5.375% senior notes due 2025 (the “2025 Senior Notes”) in a 144A private transaction exempt from the registration requirements of the Securities Act of 1933, as amended. Interest on the 2025 Senior Notes is payable semi-annually on May 3 and November 3 of each year, commencing on May 3, 2018. The 2025 Senior Notes mature on September 1, 2025.

Fees and expenses incurred in connection with the issuance of the 2025 Senior Notes in 2017 were $9.7 million, which were capitalized and recorded within “Long-term debt, net of unamortized deferred financing fees” on the

consolidated balance sheets, and are being amortized over the eight-year term of the 2025 Senior Notes using the effective interest method.

At any time prior to September 1, 2020, the Issuers may redeem the 2025 Senior Notes in whole or in part, at their option, at a redemption price equal to 100% of the principal amount of such notes plus the relevant applicable premium as of, and accrued and unpaid interest to, but not including, the redemption date. At any time and from time to time after September 1, 2020, the Issuers may redeem the 2025 Senior Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set forth below plus accrued and unpaid interest, if any, on the notes redeemed to, but not including, the redemption date:

12-month period commencing September 1 in Year 

Percentage

2020

 

102.688

%  

2021

 

101.792

%  

2022

100.896

%  

2023 and thereafter

 

100.000

%  

At any time prior to September 1, 2020, the Issuers may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price equal to 105.375%, plus accrued and unpaid interest to, but not including, the redemption date, with the aggregate gross proceeds from certain equity offerings.

The 2025 Senior Notes are the Issuers’ senior unsecured obligations and rank equally in right of payment with all of the Issuers’ existing and future indebtedness that is not expressly subordinated in right of payment thereto. The 2025 Senior Notes will be senior in right of payment to any future indebtedness that is expressly subordinated in right of payment thereto and effectively junior to (a) the Issuers’ existing and future secured indebtedness, including the Company’s Accounts Receivable Securitization Facility (defined below) and the Issuers’ Senior Credit Facility, to the extent of the value of the collateral securing such indebtedness and (b) all existing and future liabilities of the Issuers’ non-guarantor subsidiaries.

The Indenture contains customary covenants that, among other things, limit the Issuers’ and certain of their subsidiaries’ ability to incur additional indebtedness and guarantee indebtedness; pay dividends on, redeem or repurchase capital shares; make investments; prepay certain indebtedness; create liens; enter into transactions with the Issuers’ affiliates; designate the Issuers’ subsidiaries as Unrestricted Subsidiaries (as defined in the Indenture); and consolidate, merge, or transfer all or substantially all of the Issuers’ assets. The covenants are subject to a number of exceptions and qualifications. Certain of these covenants will be suspended during any period of time that (1) the 2025 Senior Notes have investment grade ratings (as defined in the Indenture) and (2) no default has occurred and is continuing under the Indenture. In the event that the 2025 Senior Notes are downgraded to below an investment grade rating, the Issuers and certain subsidiaries will again be subject to the suspended covenants with respect to future events.

Accounts Receivable Securitization Facility

In 2010, Styron Receivable Funding Ltd. (“SRF”), a VIE in which the Company is the primary beneficiary, executed an agreement for an accounts receivable securitization facility (the “Accounts Receivable Securitization Facility”). As of December 31, 2019, the Accounts Receivable Securitization Facility permits borrowings by two of the Company’s subsidiaries, Trinseo Europe GmbH (“TE”) and Trinseo Export GmbH (“Trinseo Export”), up to a total of $150.0 million and matures in September 2021.

Under the Accounts Receivable Securitization Facility, TE and Trinseo Export sell their accounts receivable to SRF. In turn, SRF may utilize these receivables as collateral to borrow from commercial paper conduits in exchange for cash. The Company has agreed to continue servicing the receivables for SRF. If utilized as collateral by SRF, the conduits have a first priority perfected security interest in such receivables and, as a result, the receivables will not be available to the creditors of the Company or its other subsidiaries.

v3.19.3.a.u2
Derivative Instruments
12 Months Ended
Dec. 31, 2019
Derivative Instruments [Abstract]  
Derivative Instruments

NOTE 12—DERIVATIVE INSTRUMENTS

The Company’s ongoing business operations expose it to various risks, including fluctuating foreign exchange rates and interest rate risk. To manage these risks, the Company periodically enters into derivative financial instruments, such as foreign exchange forward contracts and interest rate swap agreements. The Company does not hold or enter into financial instruments for trading or speculative purposes. All derivatives are recorded in the consolidated balance sheets at fair value. Refer to Note 13 for fair value disclosures related to these instruments.

Foreign Exchange Forward Contracts

Certain subsidiaries have assets and liabilities denominated in currencies other than their respective functional currencies, which creates foreign exchange risk. The Company’s principal strategy in managing its exposure to changes in foreign currency exchange rates is to naturally hedge the foreign currency-denominated liabilities on its balance sheet against corresponding assets of the same currency, such that any changes in liabilities due to fluctuations in exchange rates are offset by changes in their corresponding foreign currency assets. In order to further reduce this exposure, the Company also uses foreign exchange forward contracts to economically hedge the impact of the variability in exchange rates on assets and liabilities denominated in certain foreign currencies. These derivative contracts are not designated for hedge accounting treatment.

As of December 31, 2019, the Company had open foreign exchange forward contracts with a notional U.S. dollar equivalent absolute value of $500.3 million. The following table displays the notional amounts of the most significant net foreign exchange hedge positions outstanding as of December 31, 2019:

December 31, 

Buy / (Sell) 

    

2019

Euro

$

(346.4)

Chinese Yuan

$

(48.3)

Swiss Franc

$

35.4

Indonesian Rupiah

$

(18.5)

Korean Won

$

(12.2)

Open foreign exchange forward contracts as of December 31, 2019 have maturities occurring over a period of two months.

Foreign Exchange Cash Flow Hedges

The Company also enters into forward contracts with the objective of managing the currency risk associated with forecasted U.S. dollar-denominated raw materials purchases by one of its subsidiaries whose functional currency is the euro. By entering into these forward contracts, which are designated as cash flow hedges, the Company buys a designated amount of U.S. dollars and sells euros at the prevailing market rate to mitigate the risk associated with the fluctuations in the euro-to-U.S. dollar foreign currency exchange rate. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective, and reclassified to cost of sales in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur.

Open foreign exchange cash flow hedges as of December 31, 2019 have maturities occurring over a period of 12 months and had a net notional U.S. dollar equivalent of $84.0 million.

Interest Rate Swaps

On September 6, 2017, the Company issued the 2024 Term Loan B, which currently bears an interest rate of the London Interbank Offered Rate (“LIBOR”) plus 2.00%, subject to a 0.00% LIBOR floor. In order to reduce the variability in interest payments associated with the Company’s variable rate debt, during 2017 the Company entered into certain interest rate swap agreements to convert a portion of these variable rate borrowings into a fixed rate obligation. These interest rate swap agreements are designated as cash flow hedges, and as such, the contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective, and reclassified to interest expense in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur.

As of December 31, 2019, the Company had open interest rate swap agreements with a net notional U.S. dollar equivalent of $200.0 million, which had an effective date of September 29, 2017 and mature in September 2022. Under the terms of the swap agreements, the Company is required to pay the counterparties a stream of fixed interest payments at a rate of 1.81%, and in turn, receives variable interest payments based on one-month LIBOR (1.80% as of December 31, 2019) from the counterparties.

Net Investment Hedge

Through August 31, 2017, the Company had designated a portion (€280.0 million) of the original principal amount of the Company’s previous €375.0 million Euro Notes as a hedge of the foreign currency exposure of the Issuers’ net investment in certain European subsidiaries. Effective September 1, 2017, the Company de-designated the Euro Notes as a net investment hedge of the Issuers’ net investment in certain European subsidiaries, as the Euro Notes were redeemed on September 7, 2017 (refer to Note 11 for further information). Through the date of de-designation, this hedge was deemed to be highly effective, and changes in the Euro Notes’ carrying value resulting from fluctuations in the euro exchange rate were recorded as a cumulative foreign currency translation loss of $24.1 million within AOCI as of December 31, 2017.

On August 29, 2017, the Issuers executed an indenture pursuant to which they issued the $500.0 million 5.375% 2025 Senior Notes. Subsequently, on September 1, 2017, the Company entered into certain fixed-for-fixed cross currency swaps (“CCS”), swapping USD principal and interest payments on its 2025 Senior Notes for euro-denominated payments. Under the terms of the CCS, the Company has notionally exchanged $500.0 million at an interest rate of 5.375% for €420.0 million at a weighted average interest rate of 3.45% for approximately five years.

On September 1, 2017, the Company designated the full notional amount of the CCS (€420.0 million) as a hedge of its net investment in certain European subsidiaries under the forward method, with all changes in the fair value of the CCS recorded as a component of AOCI, as the CCS were deemed to be highly effective hedges. A cumulative foreign currency translation loss of $38.0 million was recorded within AOCI related to the CCS through March 31, 2018.

Effective April 1, 2018, in conjunction with the adoption of new hedge accounting guidance, the Company elected as an accounting policy to re-designate the CCS as a net investment hedge (and any future similar hedges) under the spot method. As such, changes in the fair value of the CCS that are included in the assessment of effectiveness (changes due to spot foreign exchange rates) are recorded as cumulative foreign currency translation within OCI, and will remain in AOCI until either the sale or substantially complete liquidation of the subsidiary. As of December 31, 2019, no gains or losses have been reclassified from AOCI into income related to the sale or substantially complete liquidation of the relevant subsidiaries. As an additional accounting policy election applied to similar hedges under this new standard, the initial value of any component excluded from the assessment of effectiveness is recognized in income using a systematic and rational method over the life of the hedging instrument. Any difference between the change in the fair value of the excluded component and amounts recognized in income under that systematic and rational method is recognized in AOCI. Prior to April 1, 2018, no components were excluded from the assessment of effectiveness for any of the Company’s existing net investment hedges.

As of April 1, 2018, the initial excluded component value related to the CCS was $23.6 million, which the Company elected to amortize as a reduction of “Interest expense, net” in the consolidated statements of operations using the straight-line method over the remaining term of the CCS. Additionally, the accrual of periodic USD and euro-denominated interest receipts and payments under the terms of the CCS are being recognized within “Interest expense, net” in the consolidated statements of operations.

On February 26, 2020, the Company settled its existing CCS and replaced it with a new CCS arrangement that carried substantially the same terms (the “2020 CCS”) as the existing CCS. Upon settlement of the existing CCS, the Company realized net cash proceeds of $51.6 million. Under the 2020 CCS, the Company notionally exchanged $500.0 million at an interest rate of 5.375% for €459.3 million at a weighted average interest rate of 3.672% for approximately 2.7 years, with a final maturity of November 3, 2022. The cash flows under the 2020 CCS are aligned with the Company’s principal and interest obligations on its 5.375% 2025 Senior Notes. The 2020 CCS was executed at an exchange rate of 1.09 USD per euro. The Company does not expect to record any significant gains or losses within the consolidated statements of operations as a result of the above settlement.

Summary of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments, including those not designated for hedge accounting treatment, on the consolidated statements of operations for the years ended December 31, 2019, 2018, and 2017:

Location and Amount of Gain (Loss) Recognized in
Statements of Operations

Year Ended

Year Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2017

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

Total amount of income and expense line items presented in the statements of operations in which the effects of derivative instruments are recorded

$

3,446.9

$

39.3

$

4.0

$

4,094.0

$

46.4

$

3.5

$

3,807.8

$

70.1

$

(21.5)

Effects of cash flow hedge instruments:

Foreign exchange cash flow hedges

Amount of gain (loss) reclassified from AOCI into income

$

6.7

$

$

$

(6.0)

$

$

$

(2.0)

$

$

Interest rate swaps

Amount of gain (loss) reclassified from AOCI into income

$

$

0.9

$

$

$

0.3

$

$

$

(0.3)

$

Effects of net investment hedge instruments:

Cross currency swaps (CCS)

Amount of gain excluded from effectiveness testing

$

$

15.8

$

$

$

11.8

$

$

$

$

Effects of derivatives not designated as hedge instruments:

Foreign exchange forward contracts

Amount of gain (loss) recognized in income

$

$

$

8.0

$

$

$

21.0

$

$

$

(19.2)

The following table presents the effect of cash flow and net investment hedge accounting on AOCI for the years ended December 31, 2019, 2018, and 2017:

Gain (Loss) Recognized in AOCI on Balance Sheets

Year Ended

December 31, 

2019

2018

2017

Designated as Cash Flow Hedges

Foreign exchange cash flow hedges

  

$

(2.2)

  

$

13.3

  

$

(21.3)

Interest rate swaps

(6.1)

1.7

2.9

Total

$

(8.3)

$

15.0

$

(18.4)

Designated as Net Investment Hedges

Euro Notes

$

$

$

38.6

Cross currency swaps (CCS)

$

17.9

$

23.7

$

(17.5)

Total

$

17.9

$

23.7

$

21.1

The Company recorded gains of $8.0 million and $21.0 million during the years ended December 31, 2019 and 2018, respectively, and losses of $19.2 million during the year ended December 31, 2017 from settlements and changes

in the fair value of outstanding forward contracts (not designated as hedges). The gains and losses from these forward contracts offset net foreign exchange transaction losses of $6.2 million and $15.8 million during the years ended December 31, 2019 and 2018, respectively, and gains of $20.6 million during the year ended December 31, 2017, which resulted from the remeasurement of the Company’s foreign currency denominated assets and liabilities. The cash settlements of these foreign exchange forward contracts are included within operating activities in the consolidated statements of cash flows.

The Company expects to reclassify in the next 12 months an approximate $0.1 million net loss from AOCI into earnings related to the Company’s outstanding foreign exchange cash flow hedges and interest rate swaps as of December 31, 2019 based on current foreign exchange rates.

The following tables summarize the net unrealized gains and losses and balance sheet classification of outstanding derivatives recorded in the consolidated balance sheets:

December 31, 2019

   

Foreign

Foreign

Exchange

Exchange

Interest

Cross

Balance Sheet

Forward

Cash Flow

Rate

Currency

Classification

    

Contracts

Hedges

Swaps

Swaps

Total

Asset Derivatives:

Accounts receivable, net of allowance

$

1.1

$

$

$

8.6

$

9.7

Deferred charges and other assets

19.2

19.2

Gross derivative asset position

1.1

27.8

28.9

Less: Counterparty netting

(0.4)

(0.4)

Net derivative asset position

$

0.7

$

$

$

27.8

$

28.5

Liability Derivatives:

Accounts payable

$

(5.7)

$

(0.5)

$

(0.4)

$

$

(6.6)

Other noncurrent obligations

(1.0)

(1.0)

Gross derivative liability position

(5.7)

(0.5)

(1.4)

(7.6)

Less: Counterparty netting

0.5

0.5

Net derivative liability position

$

(5.2)

$

(0.5)

$

(1.4)

$

$

(7.1)

Total net derivative position

$

(4.5)

$

(0.5)

$

(1.4)

$

27.8

$

21.4

December 31, 2018

   

Foreign

Foreign

 

Exchange

Exchange

Interest

Cross

Balance Sheet

Forward

Cash Flow

Rate

Currency

 

Classification

    

Contracts

    

Hedges

    

Swaps

    

Swaps

    

Total

     

Asset Derivatives:

Accounts receivable, net of allowance

$

0.6

$

1.9

$

1.5

$

8.1

$

12.1

Deferred charges and other assets

3.2

3.2

Gross derivative asset position

0.6

1.9

4.7

8.1

15.3

Less: Counterparty netting

(0.5)

(0.5)

Net derivative asset position

$

0.1

$

1.9

$

4.7

$

8.1

$

14.8

Liability Derivatives:

Accounts payable

$

(2.1)

$

$

$

$

(2.1)

Other noncurrent obligations

(3.4)

(3.4)

Gross derivative liability position

(2.1)

(3.4)

(5.5)

Less: Counterparty netting

0.5

0.5

Net derivative liability position

$

(1.6)

$

$

$

(3.4)

$

(5.0)

Total net derivative position

$

(1.5)

$

1.9

$

4.7

$

4.7

$

9.8

Forward contracts, interest rate swaps, and cross currency swaps are entered into with a limited number of counterparties, each of which allows for net settlement of all contracts through a single payment in a single currency in

the event of a default on or termination of any one contract. As such, in accordance with the Company’s accounting policy, these derivative instruments are recorded on a net basis by counterparty within the consolidated balance sheets.

Refer to Notes 13 and 21 for further information regarding the fair value of the Company’s derivative instruments and the related changes in AOCI.

v3.19.3.a.u2
Fair Value Measurements
12 Months Ended
Dec. 31, 2019
Fair Value Measurements  
Fair Value Measurements

NOTE 13—FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date.

Level 1—Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3—Valuation is based upon other unobservable inputs that are significant to the fair value measurement.

 

The following tables summarize the basis used to measure certain assets and liabilities at fair value on a recurring basis in the consolidated balance sheets at December 31, 2019 and 2018:

December 31, 2019

 

Quoted Prices in Active Markets for Identical Items

Significant Other Observable Inputs

Significant Unobservable Inputs

 

Assets (Liabilities) at Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

 

Foreign exchange forward contracts—Assets

    

$

    

$

0.7

    

$

    

$

0.7

Foreign exchange forward contracts—(Liabilities)

 

 

(5.2)

 

 

(5.2)

Foreign exchange cash flow hedges—(Liabilities)

(0.5)

(0.5)

Interest rate swaps—(Liabilities)

(1.4)

(1.4)

Cross currency swaps—Assets

27.8

27.8

Total fair value

$

$

21.4

$

$

21.4

December 31, 2018

 

Quoted Prices in Active Markets for Identical Items

Significant Other Observable Inputs

Significant Unobservable Inputs

 

Assets (Liabilities) at Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

 

Foreign exchange forward contracts—Assets

$

    

$

0.1

    

$

    

$

0.1

Foreign exchange forward contracts—(Liabilities)

(1.6)

(1.6)

Foreign exchange cash flow hedges—Assets

    

    

1.9

1.9

Interest rate swaps—Assets

4.7

4.7

Cross currency swaps—Assets

8.1

8.1

Cross currency swaps—(Liabilities)

(3.4)

(3.4)

Total fair value

$

$

9.8

$

$

9.8

The Company uses an income approach to value its derivative instruments, utilizing discounted cash flow techniques, considering the terms of the contract and observable market information available as of the reporting date, such as interest rate yield curves and currency spot and forward rates. Significant inputs to the valuation for these derivative instruments are obtained from broker quotations or from listed or over-the-counter market data, and are classified as Level 2 in the fair value hierarchy.

Fair Value of Debt Instruments

The following table presents the estimated fair value of the Company’s outstanding debt not carried at fair value as of December 31, 2019 and 2018:

    

As of

As of

 

    

December 31, 2019

    

December 31, 2018

 

2025 Senior Notes

$

503.7

$

438.3

2024 Term Loan B

686.4

658.9

Total fair value

$

1,190.1

$

1,097.2

The fair value of the Company’s debt facilities above (each Level 2 securities) is determined using over-the-counter market quotes and benchmark yields received from independent vendors.

There were no other significant financial instruments outstanding as of December 31, 2019 and 2018.

v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Provision for Income Taxes  
Income Taxes

NOTE 14—INCOME TAXES

Income before income taxes earned within and outside the United States is shown below:

Year Ended

 

December 31,

 

2019

2018

2017

 

United States

    

$

115.3

    

$

147.0

    

$

138.0

Outside of the United States

 

(10.7)

 

217.3

 

273.1

Income before income taxes

$

104.6

$

364.3

$

411.1

The provision for income taxes is composed of:

Year Ended

Year Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2017

 

Current

Deferred

Total

Current

Deferred

Total

Current

Deferred

Total

 

U.S. federal

    

$

16.9

    

$

5.2

    

$

22.1

    

$

22.8

    

$

5.9

    

$

28.7

    

$

33.5

    

$

6.9

    

$

40.4

U.S. state and other

    

 

2.8

    

 

0.9

    

 

3.7

    

 

4.1

    

 

1.0

    

 

5.1

    

 

4.8

    

 

    

 

4.8

Non-U.S.

    

 

30.3

    

 

(43.5)

    

 

(13.2)

    

 

39.6

    

 

(1.6)

    

 

38.0

    

 

29.7

    

 

7.9

    

 

37.6

Total

    

$

50.0

    

$

(37.4)

    

$

12.6

    

$

66.5

    

$

5.3

    

$

71.8

    

$

68.0

    

$

14.8

    

$

82.8

 

The effective tax rate on pre-tax income differs from the U.S. statutory rate due to the following:

Year Ended December 31,

 

   

2019

   

2018

   

2017

   

Taxes at U.S. statutory rate(1)

   

$

22.0

   

$

76.5

   

$

143.9

   

State and local income taxes

   

 

3.2

   

 

4.3

   

 

3.4

   

Non U.S. statutory rates, including credits

   

 

(8.8)

   

 

(39.7)

(2)

 

(97.4)

(2)

U.S. tax effect of foreign earnings and dividends

   

 

(1.5)

   

 

(2.8)

   

 

(1.6)

   

Unremitted earnings

   

 

5.2

   

 

2.2

   

 

6.6

   

Change in valuation allowances(3)

   

 

45.0

   

 

29.9

   

 

34.0

   

Uncertain tax positions

   

 

4.0

   

 

1.3

   

 

(10.7)

   

Withholding taxes

   

 

4.4

   

 

3.7

   

 

2.9

   

U.S. manufacturing deduction

   

 

   

 

   

 

(3.6)

   

Share-based compensation

   

 

(1.0)

   

 

(1.9)

   

 

(1.1)

   

Non-deductible interest

   

 

2.1

   

 

2.2

   

 

2.9

   

Non-deductible other expenses

   

 

0.3

   

 

1.5

   

 

1.2

   

Provision to return adjustments

   

 

3.4

   

 

(3.1)

   

 

(0.3)

   

Swiss Tax Reform(3)

(65.0)

Other—net(4)

   

 

(0.7)

   

 

(2.3)

(2)

 

2.6

(2)

Total provision for income taxes

   

$

12.6

   

$

71.8

   

$

82.8

   

Effective tax rate

   

 

12

%

 

20

%

 

20

%

(1)The U.S. statutory rate has been used as management believes it is more meaningful to the Company. The U.S. statutory rate was 21%, 21%, and 35%, respectively, for the years ended December 31, 2019, 2018, and 2017.
(2)These prior year amounts have been reclassified within the table to conform to the current year presentation.
(3)The year ended December 31, 2019 includes a $65.0 million one-time deferred tax benefit recorded as a result of changes in the Swiss federal and cantonal tax rules, which were enacted on August 6, 2019 and October 25, 2019, respectively. This one-time benefit was partially offset by a $25.3 million valuation allowance for the portion of the cantonal deferred tax asset that more likely than not will expire before utilization. See discussion below for further information.
(4)Included in “Other-net” for the year ended December 31, 2017 is $3.1 million of one-time income tax expense related to the revaluation of the Company’s U.S. federal deferred tax assets and liabilities at the new U.S. federal corporate income tax rate of 21% in accordance with the enactment of the “Tax Cuts and Jobs Act” signed into law on December 22, 2017.

In addition to the footnoted items above, the decrease in provision for income taxes was partially offset by a lower proportion of income before taxes attributable to non-U.S. jurisdictions, including losses not anticipated to provide a tax benefit for the Company in the future.

Deferred income taxes reflect temporary differences between the valuation of assets and liabilities for financial and tax reporting:

December 31,

 

2019

2018

 

Deferred

Deferred

Deferred

Deferred

 

Tax

Tax

Tax

Tax

 

Assets

Liabilities

Assets

Liabilities

 

Tax loss and credit carryforwards

    

$

185.9

    

$

    

$

157.8

    

$

Unremitted earnings

 

 

24.6

 

 

19.4

Unconsolidated affiliates

 

 

11.8

 

 

5.9

Other accruals and reserves

 

3.3

 

 

0.7

 

Property, plant and equipment

 

 

22.5

 

 

26.1

Goodwill and other intangible assets(1)

 

65.1

 

 

 

0.9

Deferred financing fees

 

5.4

 

 

7.7

 

Employee benefits

 

43.2

 

 

35.0

 

 

302.9

 

58.9

 

201.2

 

52.3

Valuation allowance

 

(218.0)

 

 

(167.6)

 

Total

$

84.9

$

58.9

$

33.6

$

52.3

(1)Includes the impact of Swiss federal and cantonal tax reform of $4.2 million and $62.4 million, respectively, as of December 31, 2019, measured at period-end exchange rates. See discussion below for further information.

As of December 31, 2019 and 2018, all undistributed earnings of foreign subsidiaries and affiliates are expected to be repatriated.

Operating loss carryforwards amounted to $748.4 million in 2019 and $601.7 million in 2018. As of December 31, 2019, $51.4 million of the operating loss carryforwards were subject to expiration in 2020 through 2024, and $697.0 million of the operating loss carryforwards expire in years beyond 2024 or have an indefinite carryforward period. The Company had valuation allowances which were related to the realization of recorded tax benefits on tax loss carryforwards, as well as other net deferred tax assets, primarily from subsidiaries in Luxembourg, Switzerland and China, of $218.0 million as of December 31, 2019 and $167.6 million as of December 31, 2018.

Swiss federal and cantonal tax reform was enacted on August 6, 2019 and October 25, 2019, respectively, and includes measures such as, the elimination of certain preferential tax regimes and implementation of new tax rates at both the federal and cantonal levels. It also includes transitional relief measures which may provide for future tax deductions. As a result of both the federal and cantonal law changes, the Company recorded a $65.0 million one-time deferred tax benefit for the year ended December 31, 2019, of which $61.6 million was related to cantonal tax law changes. The Company believes it is more likely than not that a portion of the $61.6 million deferred tax benefit recorded as a result of these cantonal tax law changes, will not be realized during the utilization period provided by the legislation, spanning 2025 through 2029. This is based on the Company’s estimate of future taxable income in Switzerland, which was determined using management’s judgment and assumptions about various factors, such as: historical experience and results, cyclicality of the business, and future industry and macroeconomic conditions and trends possible during the aforementioned utilization period. As a result, the Company recorded a $25.3 million valuation allowance as of December 31, 2019.

For the years presented, a reconciliation of the beginning and ending amount of the unrecognized tax benefits is as follows:

Balance as of December 31, 2016

    

$

16.1

Increases related to current year tax positions

 

Increases related to prior year tax positions

 

0.9

Decreases related to prior year tax positions

 

(8.0)

Settlement of uncertain tax positions

(0.7)

Decreases due to expiration of statues of limitations

(1.3)

Balance as of December 31, 2017

$

7.0

Increases related to current year tax positions

 

Increases related to prior year tax positions

 

0.5

Decreases related to prior year tax positions

(0.3)

Settlement of uncertain tax positions

Decreases due to expiration of statues of limitations

(0.9)

Balance as of December 31, 2018

$

6.3

Increases related to current year tax positions

 

0.6

Increases related to prior year tax positions

3.8

Decreases related to prior year tax positions

Settlement of uncertain tax positions

(1.3)

Decrease due to expiration of statutes of limitations

(0.4)

Balance as of December 31, 2019

$

9.0

In regard to unrecognized tax benefits, the Company recognized expense related to interest and penalties of $0.8 million and $0.2 million during the years ended December 31, 2019 and 2018, respectively, whereas the Company recognized a benefit related to interest and penalties of $2.4 million during the year ended December 31, 2017. Interest and penalties related to unrecognized tax benefits was included as a component of income tax expense in the consolidated statements of operations. As of December 31, 2019 and 2018, the Company had $1.9 million and $1.0 million, respectively, accrued for interest and penalties. To the extent that the unrecognized tax benefits are recognized in the future, $8.3 million will impact the Company’s effective tax rate.

As of December 31, 2019, the Company anticipates that it is reasonably possible that less than $0.1 million of unrecognized tax benefits, including the impact relating to accrued interest and penalties, could be realized within the next 12 months due to the expiration of the statute of limitations in certain jurisdictions.

During the year ended December 31, 2017, the Company recorded a previously unrecognized tax benefit in the amount of $8.5 million, including interest and penalties, upon completion of the 2010 through 2013 audit with the German taxing authority.

Tax years that remain subject to examination for the Company’s major tax jurisdictions are shown below.

Major Tax Jurisdictions

Earliest Open Year

United States: Federal income tax

2014

Germany

2014

Switzerland

2014

Netherlands

2017

Luxembourg

2011

China

2009

Hong Kong

2006

Indonesia

2014

Italy

2010

v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure  
Commitments and Contingencies

NOTE 15—COMMITMENTS AND CONTINGENCIES

Environmental Matters

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law, existing technologies and other information. Pursuant to the terms of the Acquisition, the pre-closing environmental conditions were retained by Dow and the Company has been indemnified by Dow from and against all environmental liabilities incurred or relating to the predecessor periods. There are several properties which the Company now owns on which Dow has been conducting investigation, monitoring, or remediation to address historical contamination. Those properties include Allyn’s Point, Connecticut, Dalton, Georgia, and Livorno, Italy. There are other properties with historical contamination that are owned by Dow that the Company leases for its operations, including its facilities in Midland, Michigan, Schkopau, Germany, and Terneuzen, The Netherlands. No environmental claims have been asserted or threatened against the Company, and the Company is not a potentially responsible party at any Superfund sites. As of December 31, 2019 and 2018, the Company had no accrued obligations for environmental remediation and restoration costs.

Inherent uncertainties exist in the Company’s potential environmental liabilities primarily due to unknown conditions, whether future claims may fall outside the scope of the indemnity, changing governmental regulations and legal standards regarding liability, and evolving technologies for handling site remediation and restoration. In connection with the Company’s existing indemnification, the possibility is considered remote that environmental remediation costs will have a material adverse impact on the consolidated financial statements over the next 12 months.

Purchase Commitments

In the normal course of business, the Company has certain raw material purchase contracts where it is required to purchase certain minimum volumes at current market prices. These commitments range from one to three years. The following table presents the fixed and determinable portion (based on current pricing indexes) of the minimum obligation under the Company’s purchase commitments as of December 31, 2019:

Annual Commitment

2020

2021

2022

2023

2024

Thereafter

Total

$

1,038.8

$

90.5

$

67.0

$

$

$

$

1,196.3

In certain raw material purchase contracts, the Company has the right to purchase less than the required minimums and pay a liquidated damages fee, or, in case of a permanent plant shutdown, to terminate the contracts. In such cases, these obligations would be less than the obligations shown in the table above.

The Company has service agreements with Dow, some of which contain fixed annual fees. Refer to Note 18 for further information.

Litigation Matters

From time to time, the Company may be subject to various legal claims and proceedings incidental to the normal conduct of business, relating to such matters as product liability, antitrust/competition, past waste disposal practices and release of chemicals into the environment. While it is impossible at this time to determine with certainty the ultimate outcome of these routine claims, the Company does not believe that the ultimate resolution of these claims will have a material adverse effect on the Company’s results of operations, financial condition or cash flow. Legal costs, including those legal costs expected to be incurred in connection with a loss contingency, are expensed as incurred.

European Commission Request for Information

On June 6, 2018, Trinseo Europe GmbH, a subsidiary of the Company, received a Request for Information in the form of a letter from the European Commission Directorate General for Competition (the “European Commission”) related to styrene monomer commercial activity in the European Economic Area. The Company subsequently commenced an internal investigation into these commercial activities and discovered instances of inappropriate activity. On October 28, 2019, a supplemental request for information was received from the European Commission. This request was limited to historical employment, entity, and organizational structures, along with certain financial, styrene

purchasing, and styrene market information, as well as certain spot styrene purchase contracts. The Company has provided this information and continues to fully cooperate with the European Commission.

Notwithstanding the delivery of the Company’s response to the European Commission, this matter remains open with the European Commission. Based on its findings, the European Commission may decide to: (i) require further information; (ii) conduct unannounced raids of the Company’s premises; (iii) adopt decisions imposing fines, interim measures to halt immediately any anti-competitive behavior, orders for the Company to cease anti-competitive activities, and/or certain behavioral or structural commitments from the Company; or (iv) take no further action. As a result of the above factors, the Company is unable to predict the ultimate outcome of this matter or estimate the range of reasonably possible losses that could be incurred. However, any potential losses incurred could be material to the Company’s results of operations, balance sheet, and cash flows for the period in which they are resolved or become probable and reasonably estimable.

v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits
12 Months Ended
Dec. 31, 2019
Pension Plans and Other Postretirement Benefits  
Pension Plans and Other Postretirement Benefits

NOTE 16—PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Defined Benefit Pension Plans

Many of the Company’s employees are participants in various defined benefit pension plans which are administered and sponsored by the Company and are primarily in Germany, Switzerland, The Netherlands, Belgium, China, Indonesia, Taiwan, and Japan.

Company employees who were not previously associated with the acquired pension and postretirement plans are not eligible for enrollment in a number of these plans. Pension benefits are typically based on length of service and the employee’s final average compensation.

Other Postretirement Benefits

The Company provides certain health care and life insurance benefits to Dow-heritage employees in the United States when they retire.

In the U.S., the plan provides for health care benefits, including hospital, physicians’ services, drug and major medical expense coverage. In general, the plan applies to employees hired by Dow before January 1, 2008 and transferred to the Company in connection with the Acquisition, and who are at least 50 years old with 10 years of service. The plan allows for spouse coverage as well. If an employee was hired on or before January 1, 1993, the coverage extends past age 65. For employees hired after January 1, 1993 but before January 1, 2008, coverage ends at age 65. The Company reserves the right to modify the provisions of the plan at any time, including the right to terminate, and does not guarantee the continuation of the plan or its provisions.

Assumptions

The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs are provided below:

Pension Plan Obligations

Net Periodic Benefit Costs

 

December 31,

December 31,

 

    

2019

    

2018

    

2017

    

2019

    

2018

    

2017

 

Discount rate for projected benefit obligation

 

1.03

%  

1.86

%  

1.79

%  

1.86

%  

1.80

%  

1.65

%  

Discount rate for service cost

N/A

N/A

N/A

1.79

%  

1.72

%  

1.64

%  

Discount rate for interest cost

N/A

N/A

N/A

1.59

%  

1.53

%  

1.42

%  

Rate of increase in future compensation levels

 

2.81

%  

2.80

%  

2.81

%  

2.80

%  

2.83

%  

2.61

%  

Expected long-term rate of return on plan assets

N/A

N/A

N/A

1.57

%  

1.54

%  

1.44

%  

The weighted-average assumptions used to determine other postretirement benefit (“OPEB”) obligations and net periodic benefit costs are provided below:

OPEB Obligations

Net Periodic Benefit Costs

 

December 31,

December 31,

 

    

2019

    

2018

    

2017

    

2019

    

2018

    

2017

 

Discount rate for accumulated postretirement benefit obligation

3.48

%  

4.38

%  

3.68

%  

4.38

%  

3.68

%  

4.16

%

Discount rate for service cost

N/A

N/A

N/A

4.42

%  

3.70

%  

4.18

%  

Discount rate for interest cost

N/A

N/A

N/A

4.14

%  

3.46

%  

3.81

%  

Initial health care cost trend rate

 

6.70

%  

6.70

%  

6.70

%  

6.70

%  

6.70

%  

6.70

%

Ultimate health care cost trend rate

 

5.00

%  

5.00

%  

5.00

%  

5.00

%  

5.00

%  

5.00

%

Year ultimate trend rate to be reached

 

2025

2024

2023

2024

2023

2022

The Company determines the discount rate used to measure plan liabilities as of the December 31 measurement date for the pension and postretirement benefit plans. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits. The Company uses a full yield curve approach in the estimation of the future service and interest cost components of net periodic benefit cost for its defined benefit pension and other postretirement benefit plans by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows.

The expected long-term rate of return on plan assets is determined by performing a detailed analysis of key economic and market factors impacting historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for each plan. The historical experience with the pension fund asset performance is also considered.

The net periodic benefit costs for the pension and other postretirement benefit plans for the years ended December 31, 2019, 2018, and 2017 were as follows:

Defined Benefit Pension Plans

Other Postretirement Benefit Plans

 

December 31,

December 31,

 

2019

2018

2017

2019

2018

2017

 

Net periodic benefit cost(1)

    

    

    

    

    

    

Service cost

$

13.1

$

12.3

$

20.5

$

0.1

$

0.2

$

0.2

Interest cost

 

5.1

 

4.9

 

4.9

 

0.2

 

0.2

 

0.3

Expected return on plan assets

 

(2.2)

 

(2.1)

 

(1.7)

 

 

 

Amortization of prior service cost (credit)

 

(1.1)

 

(1.1)

 

(2.0)

 

 

0.1

 

0.1

Amortization of net (gain) loss

 

3.3

 

4.1

 

5.6

 

(0.2)

 

 

(0.1)

Settlement and curtailment (gain) loss

 

0.8

 

0.6

 

(21.9)

(2)

 

 

 

Net periodic benefit cost

$

19.0

$

18.7

$

5.4

$

0.1

$

0.5

$

0.5

Amounts recognized in other comprehensive income (loss)

Net (gain) loss

$

27.9

$

(0.6)

$

(42.6)

$

0.1

$

(1.3)

$

(0.1)

Amortization of prior service (cost) credit

 

1.1

 

1.1

 

2.0

 

 

(0.1)

 

(0.1)

Amortization of net gain (loss)

 

(3.3)

 

(4.1)

 

(5.6)

 

0.2

 

 

0.1

Settlement and curtailment gain (loss)

 

(0.8)

 

(0.6)

 

21.9

(2)

 

 

 

Prior service credit

 

 

(0.5)

 

 

 

(0.4)

 

Total recognized in other comprehensive income (loss)

 

24.9

 

(4.7)

 

(24.3)

 

0.3

 

(1.8)

 

(0.1)

Net periodic benefit cost

 

19.0

 

18.7

 

5.4

 

0.1

 

0.5

 

0.5

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

43.9

$

14.0

$

(18.9)

$

0.4

$

(1.3)

$

0.4

(1)Service cost related to the Company’s defined benefit pension plans and other postretirement plans is included within “Cost of sales” and “Selling, general and administrative expenses,” whereas all other components of net periodic benefit cost are included within “Other expense (income), net” in the consolidated statements of operations.
(2)Approximately $21.6 million of this amount related to a curtailment gain on certain of the Company’s pension plans in Europe recorded during the year ended December 31, 2017, which was recorded within “Other expense (income), net” in the consolidated statements of operations. This curtailment was triggered by a plan amendment under which participants will not receive incremental benefits under the existing plan for service provided subsequent to December 31, 2017. Previous participants in the curtailed pension plan became eligible to participate in a new multi-employer plan starting on January 1, 2018.

The changes in the pension benefit obligations, the fair value of plan assets, and the funded status of all significant plans for the years ended December 31, 2019 and 2018 were as follows:

Defined Benefit

Other Postretirement

 

Pension Plans

Benefit Plans

 

December 31,

December 31,

 

2019

2018

2019

2018

 

Change in projected benefit obligations

    

    

    

    

Benefit obligation at beginning of period

$

321.9

$

321.7

$

5.8

$

7.1

Service cost

 

13.1

 

12.3

 

0.1

 

0.2

Interest cost

 

5.1

 

4.9

 

0.2

 

0.2

Plan participants’ contributions

 

1.9

 

1.8

 

 

Actuarial changes in assumptions and experience (1)

 

45.7

 

(0.4)

 

0.1

 

(1.3)

Benefits paid from fund

 

0.1

 

(0.7)

 

 

Benefit payments by employer

 

(2.3)

 

(2.3)

 

 

Acquisitions

 

44.5

 

 

 

Plan amendments

(0.5)

(0.4)

Curtailments

 

(3.8)

 

 

 

Settlements

 

(7.2)

 

(3.8)

 

 

Other

 

(0.1)

 

1.6

 

 

Currency impact

 

(2.7)

 

(12.7)

 

 

Benefit obligation at end of period

$

416.2

$

321.9

$

6.2

$

5.8

Change in plan assets

Fair value of plan assets at beginning of period

$

138.5

$

140.1

$

$

Actual return on plan assets

 

16.3

 

2.4

 

 

Settlements

 

(7.2)

 

(3.8)

 

 

Employer contributions

 

5.7

 

5.9

 

 

Plan participants’ contributions

 

1.9

 

1.8

 

 

Benefits paid

 

(2.2)

 

(3.0)

 

 

Currency impact

 

(1.2)

 

(4.9)

 

 

Fair value of plan assets at end of period

 

151.8

 

138.5

 

 

Funded status at end of period

$

(264.4)

$

(183.4)

$

(6.2)

$

(5.8)

(1)The actuarial loss for the year ended December 31, 2019 was primarily due to the decrease in discount rates during the year, while the actuarial gain for the year ended December 31, 2018 was primarily due to an increase in discount rates during the year.

The net amounts recognized in the consolidated balance sheets as of December 31, 2019 and 2018 were as follows:

Defined Benefit

Other Postretirement

 

Pension Plans

Benefit Plans

 

December 31,

December 31,

 

2019

2018

2019

2018

 

Net amounts recognized in the balance sheets as of December 31

    

    

    

    

Current liabilities

$

(5.8)

$

(2.7)

$

(0.1)

$

Noncurrent liabilities

 

(258.6)

 

(180.7)

 

(6.1)

 

(5.8)

Net amounts recognized in the balance sheet

$

(264.4)

$

(183.4)

$

(6.2)

$

(5.8)

Accumulated benefit obligation at the end of the period

$

380.6

$

293.7

$

6.2

$

5.8

Pretax amounts recognized in AOCI as of December 31

Net prior service cost (credit)

$

(3.7)

$

(4.8)

$

(0.1)

$

(0.2)

Net loss (gain)

 

84.3

 

60.5

 

(1.9)

 

(2.1)

Total at end of period

$

80.6

$

55.7

$

(2.0)

$

(2.3)

The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:

    

    

    

    

    

    

2025

    

 

through

 

2020

2021

2022

2023

2024

2029

Total

 

Defined benefit pension plans

$

17.6

$

5.8

$

7.1

$

9.9

$

8.6

$

61.3

$

110.3

Other postretirement benefit plans

 

0.1

 

0.1

 

0.1

 

0.2

 

0.3

 

2.1

 

2.9

Total

$

17.7

$

5.9

$

7.2

$

10.1

$

8.9

$

63.4

$

113.2

The Company estimates it will make cash contributions, including benefit payments for unfunded plans, of $7.8 million in 2020 to the defined benefit pension plans.

The following information relates to pension plans with projected and accumulated benefit obligations in excess of the fair value of plan assets as of December 31, 2019 and 2018:

Projected Benefit Obligation

December 31,

 

Exceeds the Fair Value of Plan Assets 

2019

2018

 

Projected benefit obligations

    

$

319.9

    

$

239.7

Fair value of plan assets

$

55.5

$

56.3

Accumulated Benefit Obligation

December 31,

 

Exceeds the Fair Value of Plan Assets

2019

2018

 

Accumulated benefit obligations

    

$

289.1

    

$

210.8

Fair value of plan assets

$

55.5

$

50.3

Plan Assets

As of December 31, 2019 and 2018, plan assets totaled $151.8 million and $138.5 million, respectively, consisting of investments in insurance contracts. Investments in the pension plan insurance were valued utilizing unobservable inputs, which are contractually determined based on cash surrender values, returns, fees, and the present value of the future cash flows of the contracts.

Insurance contracts are classified as Level 3 investments. Changes in the fair value of these Level 3 investments during the years ended December 31, 2019 and 2018 are included in the “Change in plan assets” table above.

Concentration of Risk

The Company mitigates the credit risk of investments by establishing guidelines with investment managers that limit investment in any single issue or issuer to an amount that is not material to the portfolio being managed. These guidelines are monitored for compliance both by the Company and external managers. Credit risk related to derivative activity is mitigated by utilizing multiple counterparties and through collateral support agreements.

Supplemental Employee Retirement Plan

The Company established a non-qualified supplemental employee retirement plan in 2010. The net benefit costs recognized for this plan during the years ended December 31, 2019, 2018, and 2017 were $0.3 million, $0.8 million, and $1.1 million, respectively. This plan was concluded in 2019 and all remaining benefit payments were completed during the year ended December 31, 2019. There were no benefit obligations under this plan as of December 31, 2019 and there were $15.5 million of benefit obligations as of December 31, 2018. As of December 31, 2019 and 2018, the amounts of net loss included in AOCI were $0.0 million and $0.3 million, respectively, with $0.3 million and $0.5 million amortized from AOCI into net periodic benefit costs during the years ended December 31, 2019 and 2018, respectively.

Defined Contribution Plans

The Company also offers defined contribution plans to eligible employees in the U.S. and in other countries, including Hong Kong, Korea, The Netherlands, Indonesia, Taiwan, and the United Kingdom. The defined contribution plans are comprised of a non-discretionary elective matching contribution component as well as a discretionary non-elective contribution component. Employees participate in the non-discretionary component by contributing a portion of their eligible compensation to the plan, which is partially matched by the Company. Non-elective contributions are made at the discretion of the Company and are based on a combination of eligible employee compensation and performance award targets. During the years ended December 31, 2019, 2018, and 2017, the Company contributed $11.1 million, $7.9 million, and $8.4 million, respectively, to the defined contribution plans.

Multiemployer Plans

The Company also has a multiemployer plan in The Netherlands for a closed population of employees. The Company’s contributions to the plan are generally determined as a percentage of the participants’ salaries. During the years ended December 31, 2019 and 2018, the Company recorded expense of $4.3 million and $4.5 million, respectively, related to the plan, and made contributions of $4.2 million and $3.8 million, respectively, to the plan.

v3.19.3.a.u2
Share-Based Compensation
12 Months Ended
Dec. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation

NOTE 17—SHARE-BASED COMPENSATION

Summary of Share-based Compensation Expense

Share-based compensation expense, which is recorded within “Selling, general and administrative expenses” in the consolidated statements of operations, was as follows for the years ended December 31, 2019, 2018, and 2017. Share amounts in the tables below are in whole numbers, unless otherwise indicated.

As of

 

December 31, 2019

Year Ended December 31,

Unrecognized

Weighted

2019

2018

2017

Compensation Cost

Average Years

 

2014 Omnibus Plan Awards

RSUs

$

7.5

$

8.8

$

8.6

$

8.6

1.8

Option Awards

3.1

4.4

4.1

1.4

1.3

PSUs

2.9

2.6

1.1

3.3

2.0

Total share-based compensation expense

$

13.5

$

15.8

$

13.8

2014 Omnibus Plan

In connection with the IPO, the Company’s board of directors approved the 2014 Omnibus Plan, adopted on May 28, 2014 and amended on June 19, 2019, under which 5.3 million ordinary shares is the maximum number that may be delivered upon satisfaction of awards granted. Following the IPO, all equity-based awards granted by the Company have been granted under the 2014 Omnibus Plan, which provides for awards of share options, share appreciation rights, restricted shares, unrestricted shares, share units, performance awards, cash awards and other awards convertible into or otherwise based on ordinary shares of the Company. Since the IPO, the board of directors of the Company has approved equity award grants for certain directors, executives, and employees, including RSUs, option awards, and PSUs.

Restricted Share Units

The RSUs granted to executives and employees vest in full on the third anniversary of the date of grant, generally subject to the employee remaining continuously employed by the Company through the vesting date. RSUs granted to directors of the Company vest in full on the first anniversary of the date of grant. Upon a termination of employment due to an employee’s death or retirement or a termination of employment by the Company without cause in connection with a restructuring or redundancy or due to the employee’s disability prior to the vesting date, the RSUs will vest in full or in part, depending on the type of termination. In the event employment is terminated for cause, all unvested RSUs will be forfeited. When RSUs vest, shares are issued from the existing pool of treasury shares.

Compensation cost for RSUs is measured at grant date based on the fair value of the award and is recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. Prior to November 2016, dividend and dividend equivalents did not accumulate on unvested RSUs. In November 2016, the board of directors approved an amendment to all outstanding RSUs, entitling each award holder to an amount equal to any cash dividend paid by the Company upon one ordinary share for each RSU held by the award holder (“dividend equivalents”). The dividend equivalents earned on the RSUs only include dividends paid after this amendment and the award holders have no right to receive the dividend equivalents unless and until the associated RSUs vest. The dividend equivalents are payable in cash and do not accrue interest. The impact of this amendment is immaterial to the consolidated financial statements.

The following table summarizes the activity for RSUs during the year ended December 31, 2019:

    

    

Weighted-Average

Grant Date

Restricted Share Units

Shares

Fair Value per Share

Unvested, December 31, 2018

 

492,149

$

48.82

Granted

 

236,156

 

48.63

Vested

 

(319,580)

 

33.98

Forfeited

 

(94,397)

 

62.45

Unvested, December 31, 2019

 

314,328

$

59.67

The following table summarizes the weighted-average grant date fair value per share of RSUs granted during the years ended December 31, 2019, 2018, and 2017 as well as the total fair value of awards vested during those periods:

Restricted Share Units

    

Weighted-Average Grant Date

    

Total Fair Value

Fair Value per Share

of Awards Vested

of Grants during Period

during Period

Year Ended December 31, 2019

 

$

48.63

$

10.9

Year Ended December 31, 2018

$

79.18

$

7.4

Year Ended December 31, 2017

$

70.85

$

1.3

Option Awards

The option awards, which contain an exercise term of nine years from the date of grant, vest in three equal annual installments beginning on the first anniversary of the date of grant, generally subject to the employee remaining continuously employed on the applicable vesting date. Upon a termination of employment due to the employee’s death or retirement or a termination of employment by the Company without cause in connection with a restructuring or redundancy or due to the employee’s disability prior to a vesting date, the option awards will vest in full or will continue to vest on the original vesting schedule, depending on the type of termination. In the event employment is terminated for cause, all vested and unvested option awards will be forfeited. When option awards are exercised, shares are issued from the existing pool of treasury shares.

Compensation cost for option awards is measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate service period utilizing graded vesting. The following table summarizes the activity for option awards during the year ended December 31, 2019:

    

    

Weighted-Average

Weighted-Average

Aggregate

Exercise Price

Contractual

Intrinsic

Option Awards

Shares

per share

Term (years)

Value

Outstanding as of December 31, 2018

 

934,338

$

46.72

Granted

237,071

51.00

Exercised

(40,263)

23.82

Forfeited

(27,220)

60.19

Expired

(6,214)

58.64

Outstanding as of December 31, 2019

1,097,712

$

48.08

6.1

$

6.2

Exercisable as of December 31, 2019

688,131

$

38.91

5.3

$

6.2

Expected to vest as of December 31, 2019

409,581

$

63.49

7.5

$

During the years ended December 31, 2019, 2018, and 2017, the total intrinsic value of option awards exercised was $0.7 million, $6.7 million, and $21.4 million, respectively. The fair value for option awards is computed using the Black-Scholes pricing model, whose inputs and assumptions are determined as of the date of grant. Determining the fair value of the option awards requires considerable judgment, including estimating the expected term of said awards and the expected volatility of the price of the Company’s ordinary shares.

Since the Company’s equity interests were privately held prior to the IPO in June 2014, there is limited publicly traded history of the Company’s ordinary shares. Until such time that the Company can determine expected volatility based solely on the publicly traded history of its ordinary shares, expected volatility used in the Black-Scholes model for option awards granted is based on a combination of the Company’s historical volatility and similar companies’ shares that are publicly traded. The expected term of option awards represents the period of time that option awards granted are expected to be outstanding. For all grants of option awards presented herein, the simplified method was used to calculate the expected term, given the Company’s limited historical exercise data. The risk-free interest rate for the periods within the expected term of option awards is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is estimated based on historical and expected dividend activity.

The following are the weighted-average assumptions used within the Black-Scholes pricing model for grants during the years ended December 31, 2019, 2018, and 2017:

Year Ended

December 31, 

    

2019

2018

 

2017

 

Expected term (in years)

 

5.50

5.50

5.50

Expected volatility

 

36.00

%

32.00

%

35.00

%

Risk-free interest rate

 

2.53

%

2.71

%

2.19

%

Dividend yield

2.00

%  

2.00

%  

2.00

%  

Utilizing the above assumptions, the weighted-average grant date fair value per option award granted in the years ended December 31, 2019, 2018, and 2017 was $15.40, $22.29, and $20.61, respectively.

Performance Share Units

PSUs, which are granted to executives, cliff vest on the third anniversary of the date of grant, generally subject to the executive remaining continuously employed by the Company through the vesting date and achieving certain performance conditions. The number of the PSUs that vest upon completion of the service period can range from 0% to 200% of the original grant, subject to certain limitations, contingent upon the Company’s total shareholder return during the performance period relative to a pre-defined set of industry peer companies. Upon a termination of employment due to the executive’s death or retirement, or termination in connection with a change in control or other factors prior to the vesting date, the PSUs will vest in full or in part, depending on the type of termination and the achievement of the performance conditions. Dividend equivalents accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. When PSUs vest, shares will be issued from the existing pool of treasury shares.

The following table summarizes the activity for PSUs during the year ended December 31, 2019:

    

    

Weighted-Average

Grant Date

Performance Share Units

Shares

Fair Value per Share

Unvested, December 31, 2018

 

116,362

$

82.10

Granted

 

117,053

 

54.01

Vested

 

 

Forfeited

 

(97,158)

 

66.93

Unvested, December 31, 2019

 

136,257

$

68.78

The fair value for PSU awards is computed using a Monte Carlo valuation model, whose inputs and assumptions are determined as of the date of grant. Determining the fair value of the PSU awards requires considerable judgment, including estimating the expected volatility of the price of the Company’s ordinary shares, the correlation between the Company’s share price and that of its peer companies, and the expected rate of interest. The expected volatility for each grant is determined based on the historical volatility of the Company’s ordinary shares. The expected term of PSU awards represents the length of the performance period. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for a duration equivalent to the performance period. The share price is the closing price of the Company’s ordinary shares on the grant date.

The following are the weighted-average assumptions used within the Monte Carlo valuation model for grants during the years ended December 31, 2019 and 2018:

Year Ended

December 31, 

2019

2018

 

2017

Expected term (in years)

3.00

3.00

3.00

Expected volatility

 

36.40

%

35.03

%

39.00

%

Risk-free interest rate

 

2.58

%

2.55

%

1.56

%

Share Price

$

50.95

$

79.42

$

71.45

Utilizing the above assumptions, the total grant date fair value for PSU awards granted in the years ended December 31, 2019, 2018 and 2017 was $6.3 million, $6.1 million and $3.9 million, respectively.

v3.19.3.a.u2
Related Party and Dow Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions  
Related Party and Dow Transactions

NOTE 18—RELATED PARTY AND DOW TRANSACTIONS

Dow Transactions

The Company has entered into certain agreements with Dow, including the Second Amended and Restated Master Outsourcing Services Agreement, which was modified on June 1, 2013 (“SAR MOSA”), site and operating services agreements, and supply agreements.

The SAR MOSA provides for ongoing worldwide services from Dow in areas such as information technology, enterprise resource planning, finance, environmental health and safety, training, customer service, marketing and sales support, supply chain and certain sourcing and transactional procurement services. This agreement is effective through December 31, 2020, with automatic two-year renewals, barring six-months’ notice of non-renewal provided by either party. The Company has the ability to terminate all or a portion of the services under the SAR MOSA, subject to payment of termination charges, with certain ‘highly integrated’ services following a separate process for evaluation and termination. Either party may terminate for cause or for material breach which is not cured. Dow has the right to terminate the agreement in the event of failure by the Company to pay for the services or in the event of a change of control, as defined in the agreement. During 2018, the Company began efforts to insource, and in some cases outsource to other vendors, certain information technology, procurement, supply chain, and enterprise resource planning services and systems currently provided by Dow. During 2019 and 2018, the Company incurred $68.1 million and $26.1 million, respectively, in costs related to its transition of these services away from Dow and expects to incur further significant costs related to transitioning additional services away from Dow in 2020. The Company has transitioned the majority of the services under the SAR MOSA that were previously provided by Dow as of December 31, 2019, and nearly all of the remaining services under the agreement will be transitioned in the first half of 2020. Based on this transition, the Company’s estimated remaining minimum obligation under the SAR MOSA was approximately $5.0 million as of December 31, 2019.

In addition, the Company entered into various site service agreements with Dow, as amended June 1, 2013 (the “Second Amended and Restated Site Services Agreements,” or “SAR SSAs”). Under the SAR SSAs, general site services are provided at specific facilities co-located with Dow including utilities, site administration, environmental health and safety, site maintenance and supply chain. Conversely, the Company entered into similar agreements with Dow, where at Company-owned sites, it provides such services to Dow. These agreements generally have 25-year terms from the date amended, with options to renew. These agreements may be terminated at any time by agreement of the parties, or, by either party, for cause, including a bankruptcy, liquidation or similar proceeding by the other party, or under certain circumstances for a material breach which is not cured. In addition, the Company may terminate for convenience any services that Dow has agreed to provide that are identified in any site services agreement as “terminable” with 12 months’ prior notice to Dow, dependent upon whether the service is highly integrated into Dow operations. Highly integrated services are agreed to be nonterminable. With respect to “nonterminable” services that Dow has agreed to provide to the Company, such as electricity and steam, the Company generally cannot terminate such

services prior to the termination date unless the Company experiences a production unit shut down for which Dow is provided with 15 months’ prior notice, or upon payment of a shutdown fee. Upon expiration or termination, the Company would be obligated to pay a monthly fee to Dow, which obligation extends for a period of 45 (in the case of expiration) to 60 months (in the case of termination) following the respective event of each site services agreement. The agreements under which Dow receives services from the Company may be terminated under the same circumstances and conditions.

The following tables detail expenses incurred during the years ended December 31, 2019, 2018, and 2017 under the SAR MOSA and SAR SSAs by financial statement line item:

Year Ended December 31, 2019

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

26.2

$

160.8

    

$

187.0

Selling, general, and administrative expenses

 

8.2

3.4

 

11.6

Total

$

34.4

$

164.2

$

198.6

Year Ended December 31, 2018

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

39.1

    

$

206.9

    

$

246.0

Selling, general, and administrative expenses

 

8.5

 

3.9

 

12.4

Total

$

47.6

$

210.8

$

258.4

Year Ended December 31, 2017

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

39.8

    

$

179.2

    

$

219.0

Selling, general, and administrative expenses

 

9.3

 

4.1

 

13.4

Total

$

49.1

$

183.3

$

232.4

The Company has transactions in the normal course of business with Dow and its affiliates. For the years ended December 31, 2019, 2018, and 2017, sales to Dow and its affiliated companies were approximately $80.0 million, $248.4 million, and $235.2 million, respectively. For the years ended December 31, 2019, 2018, and 2017, purchases from Dow and its affiliated companies were approximately $985.9 million, $1,410.6 million, and $1,357.2 million, respectively. Amounts presented represent transactions with Dow and do not include transactions with DuPont companies, noting the entities separated in 2019.

v3.19.3.a.u2
Segments
12 Months Ended
Dec. 31, 2019
Segments  
Segments

NOTE 19—SEGMENTS

The Company operates under six segments: Latex Binders, Synthetic Rubber, Performance Plastics, Polystyrene, Feedstocks, and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (“SB latex”) and other latex polymers and binders, primarily for coated paper and packaging board, carpet and artificial turf backings, as well as a number of performance latex binders applications, such as adhesive, building and construction and the technical textile paper market. The Synthetic Rubber segment produces synthetic rubber products used predominantly in high-performance tires, impact modifiers and technical rubber products, such as conveyer belts, hoses, seals and gaskets. The Performance Plastics segment includes a variety of highly engineered compounds and blends, the Company’s acrylonitrile-butadiene-styrene (“ABS”), styrene-acrylonitrile (“SAN”), and polycarbonate (“PC”) businesses, and the Company’s soft-touch polymers and bioplastics business, which includes TPEs. The Polystyrene segment includes a variety of general purpose polystyrenes (“GPPS”) and polystyrene that has been modified with polybutadiene rubber to increase its impact resistant properties (“HIPS”). The Feedstocks segment includes the Company’s production and procurement of styrene monomer outside of North America, which is used as a key raw material in many of the Company’s products, including polystyrene, SB latex, ABS resins, and solution styrene- butadiene rubber (“SSBR”). Lastly, the Americas Styrenics segment consists solely of the operations of the Company’s 50%-owned joint venture, Americas Styrenics, a producer of both styrene monomer and polystyrene in North America.

The following table provides disclosure of the Company’s segment Adjusted EBITDA, which is used to measure segment operating performance and is defined below, for the years ended December 31, 2019, 2018, and 2017. Asset and

intersegment sales information by reporting segment is not regularly reviewed or included with the Company’s reporting to the chief operating decision maker. Therefore, this information has not been disclosed below. Refer to Note 3 for the Company’s net sales to external customers by segment for the years ended December 31, 2019, 2018, and 2017.

Latex

Synthetic

Performance

Americas

Corporate

 

Year Ended

Binders

Rubber

Plastics

Polystyrene

Feedstocks

Styrenics

Unallocated

Total

 

December 31, 2019

  

Equity in earnings of unconsolidated affiliates

$

$

$

$

$

$

119.0

$

$

119.0

Adjusted EBITDA(1)

 

80.8

40.7

135.1

54.6

7.0

119.0

Investment in unconsolidated affiliates

 

 

 

 

 

188.1

 

 

188.1

Depreciation and amortization

 

25.8

44.4

28.8

10.9

12.8

13.3

 

136.0

Capital expenditures(2)

21.4

26.1

26.6

4.1

8.1

23.8

110.1

December 31, 2018

Equity in earnings of unconsolidated affiliates

$

$

$

$

$

$

144.1

$

$

144.1

Adjusted EBITDA(1)

 

110.4

 

77.0

 

188.9

 

33.7

 

107.1

 

144.1

Investment in unconsolidated affiliates

 

 

 

 

 

 

179.1

 

 

179.1

Depreciation and amortization

 

24.9

 

43.9

 

28.7

 

11.6

 

12.1

 

 

9.0

 

130.2

Capital expenditures(2)

17.2

26.8

55.1

3.4

13.2

5.7

121.4

December 31, 2017

Equity in earnings of unconsolidated affiliates

$

$

$

0.8

$

$

$

122.9

$

$

123.7

Adjusted EBITDA(1)

 

138.5

 

83.3

 

230.9

 

48.2

 

110.5

 

122.9

Investment in unconsolidated affiliates

 

 

 

 

 

 

152.5

 

 

152.5

Depreciation and amortization

23.6

 

35.7

 

20.0

 

9.8

 

12.6

 

 

8.9

 

110.6

(1)The Company’s primary measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring; acquisition related costs and benefits and other items. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. Other companies in the industry may define segment Adjusted EBITDA differently than the Company, and as a result, it may be difficult to use segment Adjusted EBITDA, or similarly-named financial measures, that other companies may use to compare the performance of those companies to the Company’s segment performance.
(2)In 2018, capital expenditure information began being reviewed and included with the Company’s reporting to the chief operating decision maker, thus it has been presented above by reportable segment for the years ended December 31, 2019 and 2018.

The reconciliation of income before income taxes to segment Adjusted EBITDA is as follows:

Year Ended December 31,

 

    

2019

    

2018

2017

 

Income before income taxes

$

104.6

$

364.3

$

411.1

Interest expense, net

 

39.3

 

46.4

 

70.1

Depreciation and amortization

 

136.0

 

130.2

 

110.6

Corporate Unallocated(3)

85.4

88.0

91.8

Adjusted EBITDA Addbacks(4)

 

71.9

 

32.3

 

50.7

Segment Adjusted EBITDA

$

437.2

$

661.2

$

734.3

(3)

Corporate unallocated includes corporate overhead costs and certain other income and expenses.

(4)

Adjusted EBITDA addbacks for the years ended December 31, 2019, 2018, and 2017 are as follows:

Year Ended December 31,

    

2019

    

2018

2017

Loss on extinguishment of long-term debt (Note 11)

$

$

0.2

$

65.3

Net gain on disposition of businesses and assets (Note 4)

(0.7)

(1.0)

(9.7)

Restructuring and other charges (Note 20)

18.1

8.2

6.0

Acquisition transaction and integration net costs (benefit) (Note 4)

(0.9)

0.6

4.7

Asset impairment charges or write-offs(a)

1.5

4.3

Other items(b)

55.4

22.8

(19.9)

Total Adjusted EBITDA Addbacks

$

71.9

$

32.3

$

50.7

(a)Asset impairment charges for the years ended December 31, 2018 and 2017 primarily relate to the impairment of certain corporate long-lived assets and certain long-lived assets in the Performance Plastics segment, respectively.
(b)Other items for the years ended December 31, 2019 and 2018 primarily relate to advisory and professional fees incurred in conjunction with the Company’s initiative to transition business services from Dow, including certain administrative services such as accounts payable, logistics, finance, and IT services. Also included within other items for the year ended December 31, 2019 are fees incurred in conjunction with certain of the Company’s strategic initiatives. Other items for the year ended December 31, 2018 are primarily related to fees incurred in conjunction with the Company’s 2024 Term Loan B repricing completed in the second quarter of 2018. Other items for the year ended December 31, 2017 are primarily related to a curtailment gain recorded on certain of the Company’s pension plans in Europe (refer to Note 16 for further information), offset by fees incurred in conjunction with the Company’s debt refinancing which was completed during the third quarter of 2017.

Geographic Information

As of December 31, 2019, the Company operates 32 manufacturing plants (which include a total of 77 production units) at 24 sites in 12 countries, inclusive of its joint venture. It also operates 10 R&D facilities globally, including technology and innovation development centers. Sales are attributed to geographic areas based on the location where sales originated; long-lived assets are attributed to geographic areas based on asset location. The Company is incorporated under the existing laws of the Grand Duchy of Luxembourg, as discussed in Note 1, which therefore represents its country of domicile. The Company has no existing long-lived assets or sales generated from this country.

As of and for the Year Ended

 

December 31,

2019

2018

2017

 

United States

    

    

    

    

    

    

Sales to external customers

$

580.3

$

627.3

$

602.7

Long-lived assets

 

44.9

 

38.6

 

43.2

Right-of-use assets - operating

10.4

Europe

Sales to external customers

$

2,163.3

$

2,782.6

$

2,688.9

Long-lived assets

 

457.7

 

424.8

 

449.3

Right-of-use assets - operating

55.1

Asia-Pacific

Sales to external customers

$

934.7

$

1,104.3

$

1,051.4

Long-lived assets

 

123.2

 

128.7

 

134.4

Right-of-use assets - operating

5.9

Rest of World

Sales to external customers

$

97.5

$

108.6

$

105.1

Long-lived assets

 

 

 

0.1

Right-of-use assets - operating

Total

Sales to external customers(1)

$

3,775.8

$

4,622.8

$

4,448.1

Long-lived assets(2)

 

625.8

 

592.1

 

627.0

Right-of-use assets - operating(3)

71.4

(1)Sales to external customers in Germany represented approximately 9%, 9%, and 10% of the total for the years ended December 31, 2019, 2018, and 2017, respectively. Sales to external customers in Hong Kong represented approximately 13% of the total for each of the years ended December 31, 2019, 2018, and 2017. Sales to external customers in China represented approximately 6%, 6%, and 7% of the total for the years ended December 31, 2019, 2018, and 2017, respectively.
(2)Long-lived assets in Germany represented approximately 46%, 43%, and 45% of the total as of December 31, 2019, 2018, and 2017, respectively. Long-lived assets in The Netherlands represented approximately 17%, 19%, and 15% of the total as of December 31, 2019, 2018, and 2017, respectively. Long-lived assets consist of property, plant and equipment, net. Long-lived assets in China represented approximately 12%, 13%, and 13% of the total as of December 31, 2019, 2018, and 2017, respectively. Amounts include right-of-use assets for finance leases.
(3)The Company began recognizing operating lease ROU assets on its consolidated balance sheets during the first quarter of 2019 in conjunction with its adoption of the new lease accounting standard, as discussed further in Note 2. Operating lease ROU assets in The Netherlands represented approximately 61% of the total as of December 31, 2019. ROU assets in the United States represented approximately 15% of the total as of December 31, 2019. Operating lease ROU assets in Germany represented approximately 7% of the total as of December 31, 2019.

.

v3.19.3.a.u2
Restructuring
12 Months Ended
Dec. 31, 2019
Restructuring  
Restructuring

NOTE 20—RESTRUCTURING

Refer to the narrative below for discussion of the Company’s restructuring activities included in the tables below. Restructuring charges are included within “Selling, general and administrative expenses” in the consolidated statements of operations. The following table provides detail of the Company’s restructuring charges for the years ended December 31, 2019, 2018, and 2017:

Cumulative

Year Ended December 31,

Life-to-date

2019

2018

    

2017

    

Charges

    

Segment

Corporate Restructuring Program

Accelerated depreciation

$

0.4

$

$

$

0.4

Employee termination benefits

17.0

17.0

Contract terminations

0.4

0.4

Corporate Program Subtotal

$

17.8

$

$

$

17.8

N/A(1)

Synthetic Rubber Restructuring

Employee termination benefits

$

$

5.5

$

$

5.5

Synthetic Rubber Subtotal

$

$

5.5

$

$

5.5

Synthetic Rubber

Terneuzen Compounding Restructuring

Asset impairment/accelerated depreciation

$

$

1.1

$

2.0

$

3.1

Employee termination benefits

(0.3)

0.5

0.5

0.7

Contract terminations

(0.3)

0.6

0.3

Decommissioning and other

0.6

0.6

0.2

2.0

Terneuzen Subtotal

$

0.3

$

1.9

$

3.3

$

6.1

Performance Plastics

Livorno Plant Restructuring

Asset impairment/accelerated depreciation

$

$

0.4

$

$

14.7

Employee termination benefits

0.8

5.4

Contract terminations

0.3

Decommissioning and other

0.5

0.7

2.3

4.2

Livorno Subtotal

$

0.5

$

1.1

$

3.1

$

24.6

Latex Binders

Allyn's Point Restructuring

Asset impairment/accelerated depreciation

$

$

$

$

7.3

Employee termination benefits

0.8

Decommissioning and other

0.8

0.4

2.9

Allyn's Point Subtotal

$

$

0.8

$

0.4

$

11.0

Latex Binders

Other Restructurings

1.2

Various

Total Restructuring Charges

$

18.6

$

9.3

$

8.0

(1)As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated.

The following tables provide a rollforward of the liability balances associated with the Company’s restructuring activities as of December 31, 2019 and 2018. Employee termination benefit and contract termination charges are recorded within “Accrued expenses and other current liabilities” in the consolidated balance sheets. The liability balance as of December 31, 2019 primarily represents activity related to the corporate restructuring program. No other individual restructuring activity had a material liability balance as of December 31, 2019 or 2018.

    

Balance at

    

    

    

Balance at

 

    

December 31, 2018

    

Expenses 

    

Deductions(1)

    

December 31, 2019

  

Employee termination benefits

$

6.4

$

16.7

$

(5.9)

$

17.2

Contract terminations

0.3

0.4

0.7

Decommissioning and other

 

 

1.1

 

(1.1)

 

Total

$

6.7

$

18.2

$

(7.0)

$

17.9

    

Balance at

    

    

    

Balance at

    

December 31, 2017

    

Expenses

    

Deductions(1)

    

December 31, 2018

Employee termination benefits

$

1.4

$

6.0

$

(1.0)

$

6.4

Contract terminations

 

0.6

 

(0.3)

 

 

0.3

Decommissioning and other

 

 

2.1

 

(2.1)

 

Total

$

2.0

$

7.8

$

(3.1)

$

6.7

(1)Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement.

Corporate Restructuring Program

In November 2019, the Company announced a corporate restructuring program associated with the Company’s shift to a global functional structure and business excellence initiatives to drive greater focus on business process optimization and efficiency. The corporate restructuring program is expected to be substantially completed by the end of the first half of 2020. In connection with this restructuring plan, during the fourth quarter of 2019, the Company incurred employee termination benefit charges of $17.0 million, inclusive of a share-based compensation benefit of $1.1 million, and contract termination charges of $0.4 million, which will predominantly be paid in 2020. The Company also incurred accelerated depreciation charges of $0.4 million during the fourth quarter of 2019. The Company expects to incur incremental employee termination benefit charges of $1.5 million, inclusive of pension charges of approximately $0.5 million, as well as contract termination charges of $2.6 million and accelerated depreciation charges of $2.4 million through the end of 2020, the majority of which are expected to be paid during 2020.

Synthetic Rubber Restructuring

In December 2018, the Company announced a reduction in force within its Synthetic Rubber segment in order to more closely align the cost structure of the Synthetic Rubber segment with the current tire market environment. The Company, however, remains committed to providing innovative technologies and solutions to serve the performance tire market. As a result of this restructuring action, during the fourth quarter of 2018, the Company incurred employee termination benefit charges of $5.5 million, which were paid during 2019.

Terneuzen Compounding Restructuring

In March 2017, the Company announced plans to upgrade its production capability for compounded resins with the construction of a new state-of-the art compounding facility to replace its existing compounding facility in Terneuzen, The Netherlands. As of December 31, 2019, the new facility is complete, noting certain ongoing quality assurance activities. Substantive production at the prior facility ceased and decommissioning activities began during the second quarter of 2019, which are expected to continue through 2020. The Company estimates it will incur decommissioning and other charges of approximately $0.7 million in 2020, the majority of which are expected to be paid during the first half of the year.

Livorno Plant Restructuring

In August 2016, the Company announced its plan to cease manufacturing activities at its latex binders manufacturing facility in Livorno, Italy. This was a result of declining demand for graphical paper and is expected to provide improved asset utilization, as well as cost reductions within the Company’s European latex binders business. Production at the facility ceased in October 2016, followed by decommissioning activities which began in the fourth quarter of 2016.

In September 2018, the Company entered into a preliminary agreement to sell the land where the former facility is located. This land sale closed on January 10, 2020, for a total purchase price of $12.5 million. Note that $1.3 million of the purchase price was received as a prepayment in 2018, and is recorded within “Accrued expenses and other current liabilities” on the consolidated balance sheets as of the years ended December 31, 2019 and 2018. The remaining

purchase price was received in January 2020. The Company expects to record a net gain on sale of less than $1.0 million during the first quarter of 2020.

This land sale was considered probable to close within one year following the balance sheet date as of both December 31, 2019 and 2018. As such, the land is recorded as held-for-sale within “Other current assets” at a value of $11.8 million and $12.0 million, respectively (adjusted for foreign currency impact), and the deferred tax liability associated with that land is recorded as held-for-sale within “Accrued expenses and other current liabilities” at a value of $2.8 million and $2.9 million, respectively (adjusted for foreign currency impact), on the Company’s consolidated balance sheets.

Allyn’s Point Plant Shutdown

In September 2015, the Company approved the plan to close its Allyn’s Point latex binders manufacturing facility in Gales Ferry, Connecticut. This restructuring plan was a strategic business decision to improve the results of the overall Latex Binders segment due to continuing declines in the coated paper industry in North America. Production at the facility ceased at the end of 2015, followed by decommissioning activities which began in 2016. The Company expects to incur a limited amount of decommissioning costs associated with this plant shutdown in 2020, which will be expensed as incurred.

v3.19.3.a.u2
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2019
Shareholders' Equity.  
Accumulated Other Comprehensive Income (Loss)

NOTE 21—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The components of accumulated other comprehensive income (loss), net of income taxes, consisted of:

    

Cumulative

    

Pension & Other

    

Translation

Postretirement Benefit

Cash Flow

Years Ended December 31, 2019, 2018, and 2017

Adjustments

    

Plans, Net

    

Hedges, Net

    

Total

Balance at December 31, 2016

$

(119.0)

$

(63.5)

$

12.3

$

(170.2)

Other comprehensive income (loss)

 

24.5

 

31.8

(20.7)

 

35.6

Amounts reclassified from AOCI to net income(1)

(13.3)

2.3

(11.0)

Balance at December 31, 2017

$

(94.5)

$

(45.0)

$

(6.1)

$

(145.6)

Other comprehensive income (loss)

 

(17.3)

 

2.5

9.3

 

(5.5)

Amounts reclassified from AOCI to net income(1)

3.1

5.7

8.8

Balance at December 31, 2018

$

(111.8)

$

(39.4)

$

8.9

$

(142.3)

Other comprehensive income (loss)

 

5.1

 

(19.0)

 

(0.7)

 

(14.6)

Amounts reclassified from AOCI to net income(1)

2.1

(7.6)

(5.5)

Balance at December 31, 2019

$

(106.7)

$

(56.3)

$

0.6

$

(162.4)

(1)The following is a summary of amounts reclassified from AOCI to net income for the years ended December 31, 2019, 2018, and 2017:

Amount Reclassified from AOCI

AOCI Components

    

Year Ended December 31,

Statement of Operations

2019

    

2018

    

2017

    

Classification

Cash flow hedging items

Foreign exchange cash flow hedges

$

(6.7)

$

6.0

$

2.0

Cost of sales

Interest rate swaps

(0.9)

(0.3)

0.3

Interest expense, net

Total before tax

(7.6)

5.7

2.3

Tax effect

Provision for income taxes

Total, net of tax

$

(7.6)

$

5.7

$

2.3

Amortization of pension and other postretirement benefit plan items

Curtailment and settlement (gain) loss

$

0.8

$

0.6

$

(21.9)

(a)

Prior service credit

(1.1)

(1.0)

(1.9)

(b)

Net actuarial loss

3.4

4.6

6.4

(b)

Total before tax

3.1

4.2

(17.4)

Tax effect

(1.0)

(1.1)

4.1

Provision for income taxes

Total, net of tax

$

2.1

$

3.1

$

(13.3)

(a)The amount for the year ended December 31, 2017 primarily relates to the curtailment of certain of the Company’s pension plans in Europe. Refer to Note 16 for further information.
(b)These AOCI components are included in the computation of net periodic benefit costs. Refer to Note 16 for further information.

...

v3.19.3.a.u2
Earnings Per Share
12 Months Ended
Dec. 31, 2019
Earnings Per Share  
Earnings Per Share

NOTE 22—EARNINGS PER SHARE

Basic earnings per ordinary share (“basic EPS”) is computed by dividing net income available to ordinary shareholders by the weighted-average number of the Company’s ordinary shares outstanding for the applicable period. Diluted earnings per ordinary share (“diluted EPS”) is calculated using net income available to ordinary shareholders divided by diluted weighted-average ordinary shares outstanding during each period, which includes unvested RSUs, option awards, and PSUs. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential ordinary shares would have an anti-dilutive effect.

The following table presents basic EPS and diluted EPS for the years ended December 31, 2019, 2018, and 2017.

Year Ended

 

December 31,

 

(in millions, except per share data)

    

2019

    

2018

2017

 

Earnings:

Net income

$

92.0

$

292.5

$

328.3

Shares:

Weighted average ordinary shares outstanding

 

40.3

 

42.8

 

43.8

Dilutive effect of RSUs, option awards, and PSUs(1)

 

0.4

 

0.9

 

1.2

Diluted weighted average ordinary shares outstanding

 

40.7

 

43.7

 

45.0

Income per share:

Income per share—basic

$

2.28

$

6.83

$

7.49

Income per share—diluted

$

2.26

$

6.70

$

7.30

(1)Refer to Note 17 for discussion of RSUs, option awards, and PSUs granted to certain Company directors and employees. The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per
share were 0.6 million, 0.4 million, and 0.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.

..

v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Lessee Disclosure [Abstract]  
Leases

NOTE 23 – LEASES

As discussed in Note 2, effective January 1, 2019, the Company adopted accounting guidance, Topic 842, issued by the FASB related to leases that outlines a comprehensive lease accounting model and supersedes the prior lease guidance. The Company adopted this guidance using the modified retrospective approach and elected the optional transition method. As a result, comparative prior periods in the Company’s financial statements are not adjusted for the impacts of the new standard. The Company’s accounting policy and practical expedient elections related to accounting for leases, including those elected as a result of the adoption of Topic 842, are summarized as follows:

Package of practical expedients – The Company did not reassess whether expired or existing contracts contain a lease, did not reassess the classification of expired or existing leases, and did not reassess whether lease initial direct costs would qualify for capitalization under the new lease accounting standards.
Lease and non-lease components as lessee – For leases across all asset classes in which the Company is a lessee (discussed below), the Company did not separate non-lease components from lease components and instead accounted for these items as a single lease component.
Portfolio approach – The Company elected to utilize the portfolio approach under which it did not have to consider the components to apply lease accounting. Specifically, the Company leveraged the portfolio approach in determining the discount rate within multiple asset classes, and in determining the lease term considerations for immaterial asset classes, including, but not limited to, motor vehicles and plant, office, and information technology equipment.
Land easements – The Company did not reassess whether existing or expired land easements that were not previously accounted for as leases are or contain a lease under the new lease accounting standards.
Use of hindsight and short-term lease exemption – The Company did not elect to utilize either the practical expedient related to the use of hindsight or the election to exclude short-term leases from balance sheet presentation.

The Company's ROU assets and lease liabilities are classified on its consolidated balance sheets as follows:

As of

December 31, 

2019

Location on Balance Sheet

Operating lease ROU assets

$

71.4

Right-of-use assets - operating

Finance lease ROU assets

7.9

Property, plant, and equipment, net of accumulated depreciation

Operating lease liabilities - current portion

14.1

Current lease liabilities - operating

Operating lease liabilities - noncurrent portion

58.0

Noncurrent lease liabilities - operating

Finance lease liabilities - current portion

2.6

Short-term borrowings and current portion of long-term debt

Finance lease liabilities - noncurrent portion

5.3

Long-term debt, net of unamortized deferred financing fees

The components of the Company's lease costs are classified on its consolidated statements of operations as follows:

Year Ended

December 31, 

2019

Finance lease cost:

Amortization of lease ROU assets

$

0.8

Interest on lease liabilities

0.1

Operating lease cost

18.2

Variable lease cost

0.2

Total lease cost

$

19.3

The table below shows the cash and non-cash activity related to the Company’s lease liabilities during the period:

Year Ended

December 31, 

2019

Cash paid related to lease liabilities:

Operating cash flows from operating leases

$

17.0

Operating cash flows from finance leases

0.1

Financing cash flows from finance leases

0.8

Non-cash lease liability activity(1):

ROU assets obtained in exchange for new operating lease liabilities

$

86.2

ROU assets obtained in exchange for new finance lease liabilities

8.8

(1)Amounts include the impact of adopting the new lease accounting standard effective January 1, 2019.

As of December 31, 2019, the maturities of the Company's operating and finance lease liabilities were as follows:

Maturity of lease liabilities by year

2020

2021

2022

2023

2024

Thereafter

Total Lease Payments

Less Imputed Interest

Lease Liability

Operating Leases

$

16.1

$

10.6

$

8.8

$

8.4

$

6.7

$

35.3

$

85.9

$

(13.8)

$

72.1

Finance Leases

$

2.8

$

2.8

$

2.3

$

0.1

$

0.1

$

0.3

$

8.4

$

(0.5)

$

7.9

Total

$

18.9

$

13.4

$

11.1

$

8.5

$

6.8

$

35.6

$

94.3

$

(14.3)

$

80.0

As of December 31, 2019, the weighted average remaining lease term of the Company's operating and finance leases was 9.2 and 3.8 years, respectively, and the weighted average discount rate used to determine the lease liability for operating and finance leases was 4.7% and 3.1%, respectively.

As of December 31, 2019, the Company has additional operating leases that have not yet commenced of $3.2 million. These leases are expected to commence in the first quarter of 2020 with lease terms of 0.5 to 5.0 years.

Disclosures related to periods prior to adoption of Topic 842

As discussed above, the Company adopted Topic 842 effective January 1, 2019 using a modified retrospective approach. As required, the following disclosure is provided for periods prior to adoption. The Company’s total future

minimum annual rentals in effect at December 31, 2018 for noncancelable operating leases, which were accounted for under the previous leasing standard, ASC 840, were as follows:

Annual Commitment

2019

2020

2021

2022

2023

Thereafter

Total

$

17.5

$

14.4

$

9.0

$

10.6

$

5.4

$

16.0

$

72.9

..........................

v3.19.3.a.u2
Selected Quarterly Financial Data
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data

NOTE 24—SELECTED QUARTERLY FINANCIAL DATA (Unaudited)

    

First

    

Second

    

Third

    

Fourth

 

(in millions, except per share data)

Quarter

Quarter

Quarter

Quarter

 

2019

Net sales

$

1,013.1

$

951.8

$

922.1

$

888.8

Gross profit

 

97.4

 

86.2

 

85.2

 

60.0

Equity in earnings of unconsolidated affiliates

 

32.2

 

40.3

 

25.7

 

20.8

Operating income (loss)

 

60.8

 

55.1

 

43.3

 

(11.2)

(2)

Income before income taxes

 

46.6

 

43.7

 

31.8

 

(17.5)

(2)

Net income

 

35.8

 

28.0

 

22.5

(1)

 

5.7

(2) (3)

Net income per share- basic

$

0.87

$

0.69

$

0.56

(1)

$

0.14

(2) (3)

Net income per share- diluted

$

0.86

$

0.68

$

0.56

(1)

$

0.14

(2) (3)

2018

Net sales

$

1,121.6

$

1,236.6

$

1,199.7

$

1,065.0

Gross profit

 

175.2

 

162.7

 

131.6

 

59.3

Equity in earnings of unconsolidated affiliates

 

45.5

 

33.2

 

34.5

 

30.8

Operating income

 

156.3

 

134.2

 

106.1

 

17.7

Income before income taxes

 

145.2

 

118.7

 

93.9

 

6.4

Net income (loss)

 

120.3

 

98.3

 

74.7

 

(0.9)

Net income (loss) per share- basic

$

2.77

$

2.28

$

1.75

$

(0.02)

Net income (loss) per share- diluted

$

2.71

$

2.24

$

1.72

$

(0.02)

(1)Includes a $7.4 million deferred tax benefit related to the re-measurement of the Company’s deferred tax assets and liabilities in Switzerland due to changes in Swiss Federal tax rules, which were enacted in August 2019. Refer to Note 14 for more information.
(2)Includes $17.8 million of expense related to the Company’s corporate restructuring program. Refer to Note 20 for further information.
(3)Includes a net $24.1 million tax benefit, which primarily related to a $32.7 million benefit recorded in connection with the re-measurement of the Company’s deferred tax assets and liabilities in Switzerland due to changes in Swiss Cantonal and Federal tax rules enacted in 2019. This is partially offset by a $6.2 million charge recorded to increase the Company’s reserves for uncertain tax positions. Refer to Note 14 for more information.

.

v3.19.3.a.u2
Schedule II-Financial Statement Schedule Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2019
Valuation and Qualifying Accounts [Abstract]  
Schedule II-Financial Statement Schedule Valuation and Qualifying Accounts

TRINSEO S.A.

SCHEDULE II—FINANCIAL STATEMENT SCHEDULE

VALUATION AND QUALIFYING ACCOUNTS

(In Millions)

    

Balance at

    

Charged to

    

Deduction

    

Currency

    

Balance at

 

Beginning of

Cost and

from

Translation

End of

 

the Period

Expense

Reserves

Adjustments

the Period

 

Allowance for doubtful accounts:

Year ended December 31, 2019

$

6.1

$

(0.7)

$

(0.2)

(a)  

$

0.1

$

5.3

Year ended December 31, 2018

 

5.6

 

0.6

(0.4)

(a)  

0.3

 

6.1

Year ended December 31, 2017

 

3.1

 

1.5

 

(0.1)

(a)  

 

1.1

 

5.6

Tax valuation allowances:

Year ended December 31, 2019

$

167.6

$

50.4

$

$

$

218.0

Year ended December 31, 2018

 

149.6

19.5

(0.9)

(0.6)

 

167.6

Year ended December 31, 2017

 

112.6

 

35.6

1.4

 

149.6

(a)Amounts written off, net of recoveries.
v3.19.3.a.u2
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Basis of Presentation  
Basis of Presentation

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements of the Company contain the accounts of all entities that are controlled and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. A VIE is defined as a legal entity that has equity investors that do not have sufficient equity at risk for the entity to support its activities without additional subordinated financial support or, as a group, the holders of the equity at risk lack (i) the power to direct the entity’s activities or (ii) the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity. A VIE is required to be consolidated by a company if that company is the primary beneficiary. Refer to Note 11 for further discussion of the Company’s Accounts Receivable Securitization Facility, which qualifies as a VIE and is consolidated within the Company’s financial statements.

All intercompany balances and transactions are eliminated. Joint ventures over which the Company has the ability to exercise significant influence that are not consolidated are accounted for by the equity method.

Use of Estimates in Financial Statement Preparation

Use of Estimates in Financial Statement Preparation

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual amounts could differ from these estimates.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company uses major financial institutions with high credit ratings to engage in transactions involving cash equivalents. The Company minimizes credit risk in its receivables by selling products to a diversified portfolio of customers in a variety of markets located throughout the world.

The Company performs ongoing evaluations of its customers’ credit and generally does not require collateral. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of specific customers to meet their financial obligations, representing its best estimate of probable credit losses in existing trade accounts receivable. A specific reserve for doubtful receivables is recorded against the amount due from these customers. For all other customers, the Company recognizes reserves for doubtful receivables based on historical experience.

Financial Instruments

Financial Instruments

The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued and other current liabilities, approximate fair value due to their generally short maturities.

The estimated fair values of the Company’s 2024 Term Loan B and 2025 Senior Notes and, when outstanding, borrowings under its 2022 Revolving Facility and Accounts Receivable Securitization Facility (all of which are defined in Note 11) are determined using Level 2 inputs within the fair value hierarchy. The carrying amounts of borrowings under the 2022 Revolving Facility and Accounts Receivable Securitization Facility approximate fair value as these borrowings bear interest based on prevailing variable market rates.

At times, the Company manages its exposure to changes in foreign currency exchange rates, where possible, by entering into foreign exchange forward contracts. Additionally, the Company manages its exposure to variability in interest payments associated with its variable rate debt by entering into interest rate swap agreements. When outstanding, all derivatives, whether designated in hedging relationships or not, are required to be recorded on the consolidated balance sheets at fair value. The fair value of the derivatives is determined from sources independent of the Company, including the financial institutions which are party to the derivative instruments. The fair value of derivatives also considers the credit default risk of the parties involved.

If the derivative is not designated for hedge accounting treatment, changes in the fair value of the underlying instrument and settlements are recognized in earnings. If the derivative is designated as a fair value hedge, changes in the fair value of the derivative and the hedged item are recognized in earnings. If the derivative is designated as a cash flow hedge, the effective portion of the change in the fair value of the derivative will be recorded in accumulated other comprehensive income or loss (“AOCI”) and will be recognized in the consolidated statements of operations when the hedged item affects earnings or it becomes probable that the forecasted transaction will not occur. If the derivative is designated as a net investment hedge, to the extent it is deemed to be effective, the change in the fair value of the derivative will be recorded within the cumulative translation adjustment account as a component of AOCI and the resulting gains or losses will be recognized in the consolidated statements of operations when the hedged net investment is either sold or substantially liquidated.

As of December 31, 2019 and 2018, the Company had certain foreign exchange forward contracts outstanding that were not designated for hedge accounting treatment and certain foreign exchange forward contracts and interest rate swap agreements that were designated as cash flow hedges. As of December 31, 2019 and 2018, the Company also had certain fixed-for-fixed cross currency swaps (“CCS”) outstanding, which swap U.S. dollar principal and interest payments on the Company’s 2025 Senior Notes for euro-denominated payments. The Company’s CCS have been

designated as a hedge of its net investment in certain European subsidiaries. The CCS were initially designated as a hedge effective September 1, 2017 and were subsequently re-designated as a net investment hedge in conjunction with the Company’s adoption of new hedge accounting guidance effective April 1, 2018.

Forward contracts, interest rate swaps, and cross currency swaps are entered into with a limited number of counterparties, each of which allows for net settlement of all contracts through a single payment in a single currency in the event of a default on or termination of any one contract. The Company records these derivative instruments on a net basis, by counterparty within the consolidated balance sheets.

The Company presents the cash receipts and payments from hedging activities in the same category as the cash flows from the items subject to hedging relationships. As the items subject to economic hedging relationships are the Company’s operating assets and liabilities, the related cash flows are classified within operating activities in the consolidated statements of cash flows.

Refer to Notes 12 and 13 for further information on the Company’s derivative instruments and their fair value measurements.

Foreign Currency Translation

Foreign Currency Translation

For the majority of the Company’s subsidiaries, the local currency has been identified as the functional currency. For remaining subsidiaries, the U.S. dollar has been identified as the functional currency due to the significant influence of the U.S. dollar on their operations. Gains and losses resulting from the translation of various functional currencies into U.S. dollars are recorded within the cumulative translation adjustment account as a component of AOCI in the consolidated balance sheets. The Company translates asset and liability balances at exchange rates in effect at the end of the period and income and expense transactions at the average exchange rates in effect during the period. Gains and losses resulting from foreign currency transactions are recorded within “Other expense (income), net” in the consolidated statements of operations.

For the years ended December 31, 2019 and 2018, the Company recognized net foreign exchange transaction losses of $6.2 million and $15.8 million, respectively, while for the year ended December 31, 2017, the Company recognized a net foreign exchange transaction gain of $20.6 million. These amounts exclude the impacts of foreign exchange forward contracts discussed above.

Environmental Matters

Environmental Matters

Accruals for environmental matters are recorded when it is considered probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. These accruals are adjusted periodically as assessment and remediation efforts progress, or as additional technical or legal information become available. Accruals for environmental liabilities are recorded within “Other noncurrent obligations” in the consolidated balance sheets at undiscounted amounts. As of December 31, 2019 and 2018, there were no accruals for environmental liabilities recorded.

Environmental costs are capitalized in recognition of legal asset retirement obligations resulting from the acquisition, construction or normal operation of a long-lived asset. Any costs related to environmental contamination treatment and clean-ups are charged to expense. Estimated future incremental operations, maintenance, and management costs directly related to remediation are accrued when such costs are probable and reasonably estimable.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents generally include time deposits or highly liquid investments with original maturities of three months or less and no material liquidity fee or redemption gate restrictions.

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value (“NRV”), with cost being determined on the first-in, first-out (“FIFO”) method. NRV is calculated as the estimated selling price less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for excess or obsolete inventory, and will write-down the excess or obsolete inventory value to its NRV, if applicable.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are carried at cost less accumulated depreciation and less impairment, if applicable, and are depreciated over their estimated useful lives using the straight-line method.

Expenditures for maintenance and repairs are recorded in the consolidated statements of operations as incurred. Expenditures that significantly increase asset value, extend useful asset lives or adapt property to a new or different use are capitalized. These expenditures include planned major maintenance activity, or turnaround activities, that increase the Company’s manufacturing plants’ output and improve production efficiency as compared to pre-turnaround operations. As of December 31, 2019 and 2018, $23.1 million and $15.1 million, respectively, of the Company’s net costs related to turnaround activities were capitalized within “Deferred charges and other assets” in the consolidated balance sheets, and are being amortized over the period until the next scheduled turnaround.

The Company periodically evaluates actual experience to determine whether events and circumstances have occurred that may warrant revision of the estimated useful lives of property, plant and equipment. Engineering and other costs directly related to the construction of property, plant and equipment are capitalized as construction in progress until construction is complete and such property, plant and equipment is ready and available to perform its specifically assigned function. The Company also capitalizes interest as a component of the cost of capital assets constructed for its own use. Upon retirement or other disposal, the asset cost and related accumulated depreciation are removed from the accounts and the net amount, less any proceeds, is charged or credited to income.

Impairment and Disposal of Long-Lived Assets

Impairment and Disposal of Long-Lived Assets

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. When undiscounted future cash flows are not expected to be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value based on a discounted cash flow analysis utilizing market participant assumptions.

Long-lived assets to be disposed of by sale are classified as held-for-sale and are reported at the lower of carrying amount or fair value less cost to sell, and depreciation is ceased. Long-lived assets to be disposed of in a manner other than by sale are classified as held-and-used until they are disposed. Refer to Note 20 for information on the Company’s assets classified as held-for-sale as of December 31, 2019.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Company records goodwill when the purchase price of a business acquisition exceeds the estimated fair value of net identified tangible and intangible assets acquired. Goodwill is tested for impairment at the reporting unit level annually, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit has more likely than not declined below its carrying value. The Company utilizes a market approach and an income approach (under the discounted cash flow method) to calculate the fair value of its reporting units. When supportable, the Company employs the qualitative assessment of goodwill impairment prescribed by Accounting Standards Codification (“ASC”) 350. The annual impairment assessment is completed using a measurement date of October 1. No goodwill impairment losses were recorded in the years ended December 31, 2019, 2018, and 2017.

Finite-lived intangible assets, such as developed technology, customer relationships, manufacturing capacity rights, and computer software for internal use are amortized on a straight-line basis over their estimated useful life and are reviewed for impairment or obsolescence if events or changes in circumstances indicate that their carrying amount may not be recoverable. If impaired, intangible assets are written down to fair value based on discounted cash flows. No intangible asset impairment losses were recorded in the years ended December 31, 2019, 2018, and 2017.

Acquired developed technology is recorded at fair value upon acquisition and is amortized using the straight-line method over the estimated useful life ranging from 9 years to 15 years. The Company determines amortization periods for developed technology based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit and competitive advantage related to existing processes and procedures at the date of acquisition. Significant changes to any of these factors may result in a reduction in the useful life of these assets.

Customer relationships are recorded at fair value upon acquisition and are amortized using the straight-line method over the estimated useful life of 19 years. The Company determines amortization periods for customer relationships based on its assessment of various factors impacting estimated useful lives and timing and extent of estimated cash flows of the acquired assets. This includes estimates of expected period of future economic benefit and customer retention rates. Significant changes to any of these factors may result in a reduction in the useful life of these assets.

Investments in Unconsolidated Affiliates

Investments in Unconsolidated Affiliates

Investments in unconsolidated affiliates in which the Company has the ability to exercise significant influence (generally, 20% to 50%-owned companies) are accounted for using the equity method. Investments are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. An impairment loss is recorded whenever a decline in fair value of an investment in an unconsolidated affiliate below its carrying amount is determined to be other-than-temporary.

The Company uses the cumulative earnings approach for presenting distributions received from equity method investees in the consolidated statements of cash flows.

Deferred Financing Fees

Deferred Financing Fees

Capitalized fees and costs incurred in connection with the Company’s recognized debt liabilities are presented in the consolidated balance sheets as a direct reduction from the carrying value of those debt liabilities, consistent with debt discounts. Deferred financing fees related to the Company’s revolving debt facilities are included within “Deferred charges and other assets” in the consolidated balance sheets.

Deferred financing fees on the Company’s term loan and senior note financing arrangements are amortized using the effective interest method over the term of the respective agreement. Deferred financing fees on the Company’s revolving facilities and the Accounts Receivable Securitization Facility are amortized using the straight-line method over the term of the respective facility. Amortization of deferred financing fees is recorded in “Interest expense, net” within the consolidated statements of operations.

Restricted Cash and Cash Equivalents

Restricted Cash and Cash Equivalents

Restrictions on the Company’s cash and cash equivalents are primarily related to customs requirements. As of December 31, 2019 and 2018, the Company had restricted cash and cash equivalents of $1.2 million and $0.0 million, respectively, included within “Other current assets” in the consolidated balance sheets.

Sales

Sales

Sales are recognized at a point when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services when the Company’s related performance obligation is satisfied under the terms of the contract. Standard terms of delivery are included in contracts of sale, order confirmation documents, and invoices. Sales and other taxes that the Company collects concurrent with sales-producing activities are excluded from “Net sales” and included as a component of “Cost of sales” in the consolidated statements of operations. Additionally, freight and any directly related costs of transporting finished products to customers are accounted for as fulfilment costs and are also included within “Cost of sales.”

The amount of net sales recognized varies with changes in returns, rebates, cash sales incentives, and other allowances offered to customers based on the Company's experience. For arrangements where the period between customer payment and transfer of goods/services is determined to be one year or less at contract inception, the Company applies the practical expedient exception available under ASC 606 and does not adjust the promised amount of consideration under the contract for the effects of a significant financing component. Additionally, the Company’s incremental costs of obtaining contracts are expensed as incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less, and are included within “Selling, general and administrative expenses” in the consolidated statements of operations, pursuant to the practical expedient in ASC 606.

Cost of Sales

Cost of Sales

The Company classifies the costs of manufacturing and distributing its products as cost of sales. Manufacturing costs include raw materials, utilities, packaging, employee salary and benefits and fixed manufacturing costs associated with production. Fixed manufacturing costs include such items as plant site operating costs and overhead, production planning, depreciation and amortization, repairs and maintenance, environmental, and engineering costs. Distribution costs include shipping and handling costs. Freight and any directly related costs of transporting finished products to customers are also included within cost of sales. As discussed above, inventory costs are recorded within cost of sales utilizing the FIFO method.

Selling, General and Administrative Expenses

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses are generally charged to expense as incurred. SG&A expenses are the cost of services performed by the marketing and sales functions (including sales managers, field sellers, marketing research, marketing communications and promotion and advertising materials) and by administrative functions (including product management, R&D, business management, customer invoicing, human resources, information technology, legal and finance services, such as accounting and tax). Salary and benefit costs, including share-based compensation, for these sales personnel and administrative staff are included within SG&A expenses. R&D expenses include the cost of services performed by the R&D function, including technical service and development, process research including pilot plant operations, and product development. The Company also includes restructuring charges within SG&A expenses.

Total R&D costs included in SG&A expenses were $54.6 million, $56.0 million, and $54.3 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company expenses promotional and advertising costs as incurred to SG&A expenses. Total promotional and advertising expenses were $1.8 million, $1.6 million, and $1.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Restructuring charges included within SG&A expenses were $18.6 million, $9.3 million, and $8.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Refer to Note 20 for further information.

Pension and Postretirement Benefits Plans

Pension and Postretirement Benefits Plans

The Company has several defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company also provides certain health care and life insurance benefits to retired employees in the United States. The U.S.-based plan provides health care benefits, including hospital, physicians’ services, drug and major medical expense coverage, and life insurance benefits.

Accounting for defined benefit pension plans and other postretirement benefit plans, and any curtailments and settlements thereof, requires various assumptions, including, but not limited to, discount rates, expected rates of return on plan assets and future compensation growth rates. The Company evaluates these assumptions at least once each year, or as facts and circumstances dictate, and makes changes as conditions warrant.

A settlement is a transaction that is an irrevocable action that relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and that eliminates significant risks related to the obligation and the assets used to effect the settlement. When a settlement occurs, the Company does not record settlement gains or losses during interim periods when the cost of all settlements in a year is less than or equal to the sum of the service cost and interest cost components of net periodic benefit cost for the plan in that year.

Income Taxes

Income Taxes

The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when

changes are enacted. For each tax jurisdiction in which the Company operates, deferred tax assets and liabilities are offset against one another and are presented as a single noncurrent amount within the consolidated balance sheets.

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Provision is made for income taxes on unremitted earnings of subsidiaries and affiliates, unless such earnings are deemed to be indefinitely invested.

The Company recognizes the financial statement effects of uncertain income tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. The Company accrues for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Interest accrued related to unrecognized tax and income tax related penalties are included in the provision for income taxes. The current portion of uncertain income taxes positions is recorded in “Income taxes payable,” while the long-term portion is recorded in “Other noncurrent obligations” in the consolidated balance sheets.

Share-based Compensation

Share-based Compensation

Refer to Note 17 for detailed discussion regarding the Company’s share-based compensation award programs. In connection with the Company’s initial public offering (“IPO”), the Company’s board of directors approved the 2014 Omnibus Plan. Since that time, certain equity grants have been awarded, comprised of restricted share units (“RSUs”), options to purchase shares (“option awards”), and performance share units (“PSUs”). Share-based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest. The Company’s policy election is to recognize forfeitures as incurred, rather than estimating forfeitures in advance.

Compensation costs for the RSUs are measured at the grant date based on the fair value of the award and are recognized ratably as expense over the applicable vesting term. The fair value of RSUs is equal to the fair market value of the Company’s ordinary shares based on the closing price on the date of grant. Dividend equivalents accumulate on RSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated RSUs vest.

Compensation costs for the option awards are measured at the grant date based on the fair value of the award and is recognized as expense over the appropriate service period utilizing graded vesting. The fair value for option awards is computed using the Black-Scholes pricing model, which uses inputs and assumptions determined as of the date of grant.

Compensation costs for the PSUs are measured at the grant date based on the fair value of the award, which is computed using a Monte Carlo valuation model, and is recognized ratably as expense over the applicable vesting term. Dividend equivalents accumulate on PSUs during the vesting period, are payable in cash, and do not accrue interest. Award holders have no right to receive the dividend equivalents unless and until the associated PSUs vest.

Treasury Shares Policy Text Block

Treasury Shares

The Company may, from time to time, repurchase its ordinary shares at prevailing market rates. Share repurchases are recorded at cost in “Treasury shares” within shareholders’ equity in the consolidated balance sheets. It is the Company’s policy that, as RSUs, PSUs, and option awards vest or are exercised, ordinary shares will be issued from the existing pool of treasury shares on a first-in-first-out basis. Refer to Note 17 for details of vesting for RSUs and PSUs as well as the exercises of option awards.

Recent Accounting Guidance

Recent Accounting Guidance

In February 2016, the FASB issued guidance related to leases that outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize on the consolidated balance sheets lease liabilities and corresponding right-of-use assets (“ROU”) for all leases with terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The new guidance must be adopted using a modified retrospective transition, applying the new standard to all leases existing at the date of initial application. The Company adopted the standard effective January 1, 2019, and as a result, the Company recorded ROU assets and lease liabilities of $73.0 million and $72.4 million, respectively, on the consolidated balance sheet as of January 1, 2019. The Company’s adoption of this standard did not result in a cumulative

effect adjustment being recorded to opening retained earnings as of January 1, 2019 and did not have a material impact on the Company’s consolidated statements of operations or cash flows. Refer to Note 23 for new disclosure requirements in effect as a result of this adoption.

In August 2018, the FASB issued guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension plans or other postretirement plans. Under the guidance, the Company is required to disclose reasons for significant gains and losses related to changes in the benefit obligation for the period. The Company adopted this guidance during the fourth quarter of 2019 on a retrospective basis, which did not result in material impact on its consolidated financial statements. Refer to Note 16 for new disclosure requirements in effect as a result of this adoption.

In August 2018, the FASB issued guidance which aligns the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This standard update is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company will adopt the new guidance prospectively to eligible costs incurred on or after the date first applied. The Company does not anticipate that adoption of this guidance will have a material impact on its consolidated financial statements, barring significant future cloud computing transactions.

In December 2019, the FASB issued guidance that simplifies the accounting for income taxes. The amended guidance includes removal of certain exceptions to the general principles of ASC 740, Income Taxes, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. This guidance is effective for public business entities for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the timing and impacts of adopting this guidance on its consolidated financial statements.

v3.19.3.a.u2
Net Sales (Tables)
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue [Table Text Block]

The following table provides disclosure of net sales to external customers by primary geographical market (based on the location where the sales originated), by segment for the years ended December 31, 2019, 2018, and 2017.

Latex

Synthetic

Performance

 

Year Ended

Binders

Rubber

Plastics

Polystyrene

Feedstocks

Total

 

December 31, 2019

United States

$

263.7

$

$

305.9

$

$

10.7

$

580.3

Europe

 

388.5

 

441.3

 

735.9

 

448.8

 

148.8

 

2,163.3

Asia-Pacific

 

239.3

 

 

238.2

 

360.6

 

96.6

 

934.7

Rest of World

 

11.3

 

 

86.2

 

 

 

97.5

Total

$

902.8

$

441.3

$

1,366.2

$

809.4

$

256.1

$

3,775.8

December 31, 2018

United States

$

288.2

$

$

326.4

$

0.2

$

12.5

$

627.3

Europe

 

459.4

 

572.5

 

931.2

 

607.8

 

211.7

 

2,782.6

Asia-Pacific

 

306.6

 

 

226.2

 

409.1

 

162.4

1,104.3

Rest of World

 

14.8

 

93.8

 

 

 

108.6

Total

$

1,069.0

$

572.5

$

1,577.6

$

1,017.1

$

386.6

$

4,622.8

December 31, 2017

United States

$

290.9

$

$

297.4

$

1.0

$

13.4

$

602.7

Europe

 

468.5

 

582.8

 

866.3

 

571.7

 

199.6

 

2,688.9

Asia-Pacific

 

320.6

 

 

167.4

 

368.7

 

194.7

 

1,051.4

Rest of World

 

17.1

 

 

88.0

 

 

 

105.1

Total

$

1,097.1

$

582.8

$

1,419.1

$

941.4

$

407.7

$

4,448.1

v3.19.3.a.u2
Acquisitions and Divestitures (Tables)
12 Months Ended
Dec. 31, 2019
Latex Binder Production Facilities In Rheinmunster Germany [Member]  
Business Acquisition [Line Items]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

October 1,

    

2019

Inventories

$

3.9

Property, plant, and equipment

48.2

Right-of-use-assets - operating

0.3

Total fair value of assets acquired

52.4

Accrued expenses and other current liabilities

(0.6)

Noncurrent lease liabilities - operating

(0.3)

Deferred income tax liabilities

(2.0)

Other noncurrent obligations(1)

(51.5)

Total fair value of liabilities assumed

$

(54.4)

Net liabilities assumed

$

(2.0)

Net cash received

$

6.7

Bargain purchase gain(2)

$

4.7

(1)Relates primarily to pension liabilities of $44.5 million and unfavorable leasehold interest of $7.0 million. The unfavorable leasehold interest is being amortized over its estimated remaining useful life of 18 years.
(2)The bargain purchase gain is included within “Other expense (income), net” in the consolidated statement of operations for the year ended December 31, 2019.
v3.19.3.a.u2
Investments in Unconsolidated Affiliates (Tables)
12 Months Ended
Dec. 31, 2019
Investments in Unconsolidated Affiliates  
Summarized Financial Information of Unconsolidated Affiliates

December 31,

 

2019

2018

 

Current assets

    

$

326.6

    

$

373.4

Noncurrent assets

 

247.7

 

236.2

Total assets

$

574.3

$

609.6

Current liabilities

$

158.8

$

167.2

Noncurrent liabilities

 

18.5

 

17.4

Total liabilities

$

177.3

$

184.6

Year Ended

 

December 31, 

 

    

2019

    

2018

    

2017

 

Sales

$

1,486.1

    

$

1,825.7

$

1,798.1

Gross profit

$

243.2

$

310.2

$

244.3

Net income

$

192.5

$

260.2

$

196.3

v3.19.3.a.u2
Accounts Receivable (Tables)
12 Months Ended
Dec. 31, 2019
Accounts Receivable [Abstract]  
Schedule of Accounts Receivable

December 31,

 

2019

2018

 

Trade receivables

    

$

455.0

    

$

535.4

Non-income tax receivables

 

63.4

 

74.6

Other receivables

 

57.7

 

44.2

Less: allowance for doubtful accounts

 

(5.3)

 

(6.1)

Total

$

570.8

$

648.1

v3.19.3.a.u2
Inventories (Tables)
12 Months Ended
Dec. 31, 2019
Inventories  
Schedule of Inventories

December 31,

    

2019

2018

Finished goods

    

$

210.8

    

$

269.8

Raw materials and semi-finished goods

 

190.1

 

205.8

Supplies

 

37.3

 

34.8

Total

$

438.2

$

510.4

v3.19.3.a.u2
Property, Plant and Equipment (Tables)
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment

Estimated Useful

December 31,

 

Lives (Years)

2019

2018

 

Land

    

N/A

    

$

53.0

    

$

26.0

Land and waterway improvements

 

1 - 20

 

26.9

 

18.4

Buildings

 

10 - 50

 

110.7

 

97.0

Machinery and equipment

 

3 - 10

 

955.5

 

912.9

Leasehold interests

 

9 - 40

 

41.6

 

40.9

Other property

 

1 - 20

 

47.4

 

34.8

(1)

Construction in process

N/A

 

56.4

 

52.7

Property, plant and equipment

 

1,291.5

 

1,182.7

Less: accumulated depreciation

 

(665.7)

 

(590.6)

Property, plant and equipment, net

$

625.8

$

592.1

(1)This prior year amount has been reclassified within the table to conform to the current year presentation.
Schedule of Other Items Related to Property Plant and Equipment

Year Ended

 

December 31,

 

2019

2018

2017

 

Depreciation expense

    

$

96.9

    

$

95.7

    

$

77.9

Capitalized interest

$

3.0

$

3.6

$

5.0

v3.19.3.a.u2
Goodwill (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill.  
Changes in Carrying Amount of Goodwill, by Segment

Latex

Synthetic

Performance

Americas

 

    

Binders

    

Rubber

    

Plastics

    

Polystyrene

    

Feedstocks

    

Styrenics

    

Total

 

Balance at December 31, 2017

    

$

16.5

$

11.7

$

39.6

$

4.7

$

$

$

72.5

Foreign currency impact

 

(0.6)

(0.4)

(2.3)

(0.2)

(3.5)

Balance at December 31, 2018

$

15.9

$

11.3

$

37.3

$

4.5

$

$

$

69.0

Foreign currency impact

 

(0.3)

(0.3)

(0.6)

(0.1)

 

(1.3)

Balance at December 31, 2019

$

15.6

$

11.0

$

36.7

$

4.4

$

$

$

67.7

Schedule of Other Intangible Assets

December 31, 2019

December 31, 2018

 

Estimated Useful

Gross Carrying

Accumulated

Gross Carrying

Accumulated

 

   

Life (Years)

   

Amount

   

Amortization

   

Net

   

Amount

   

Amortization

   

Net

 

Developed technology

9 - 15

$

188.6

$

(117.2)

$

71.4

$

192.3

$

(105.6)

$

86.7

Customer Relationships

 

19

 

13.8

 

(1.8)

 

12.0

 

14.1

 

(1.1)

 

13.0

Manufacturing Capacity Rights

 

6

 

22.1

 

(20.0)

 

2.1

 

21.8

 

(16.8)

 

5.0

Software

 

5 - 10

 

119.2

 

(50.0)

 

69.2

 

101.9

 

(35.3)

 

66.6

Software in development

 

N/A

 

34.7

 

 

34.7

 

17.2

 

 

17.2

Other

 

3

 

4.3

 

(2.2)

 

2.1

 

3.9

 

(1.3)

 

2.6

Total

$

382.7

$

(191.2)

$

191.5

$

351.2

$

(160.1)

$

191.1

Estimated Amortization Expense for Next Five Years

Estimated Amortization Expense for the Next Five Years

 

2020

2021

2022

2023

2024

 

$

30.6

    

$

26.6

    

$

25.7

    

$

25.3

    

$

24.9

v3.19.3.a.u2
Accounts Payable (Tables)
12 Months Ended
Dec. 31, 2019
Payables and Accruals [Abstract]  
Schedule of Accounts Payable

December 31,

 

2019

2018

 

Trade payables

    

$

304.6

    

$

319.9

Other payables

 

38.4

 

34.3

Total

$

343.0

$

354.2

v3.19.3.a.u2
Debt (Tables)
12 Months Ended
Dec. 31, 2019
Debt  
Schedule of Debt [Table Text Block]

December 31, 2019

   

Interest Rate as of
December 31, 2019

   

Maturity Date

   

Carrying Amount

   

Unamortized Deferred Financing Fees(1)

    

Total Debt, Less Unamortized Deferred Financing Fees

   

Senior Credit Facility

2024 Term Loan B

3.799%

September 2024

$

684.3

$

(13.7)

$

670.6

2022 Revolving Facility(2)

Various

September 2022

2025 Senior Notes

5.375%

September 2025

500.0

(7.3)

492.7

Accounts Receivable Securitization Facility(3)

Various

September 2021

Other indebtedness

Various

Various

10.4

10.4

Total debt

$

1,194.7

$

(21.0)

$

1,173.7

Less: current portion(4)

(11.1)

Total long-term debt, net of unamortized deferred financing fees

$

1,162.6

December 31, 2018

Interest Rate as of December 31, 2018

    

Maturity
Date

    

Carrying
Amount

    

Unamortized Deferred
Financing Fees
(1)

    

Total Debt, Less
Unamortized
Deferred
Financing Fees

    

Senior Credit Facility

    

2024 Term Loan B

4.522%

September 2024

$

691.3

$

(16.2)

$

675.1

2022 Revolving Facility(2)

Various

September 2022

2025 Senior Notes

5.375%

September 2025

500.0

(8.4)

491.6

Accounts Receivable Securitization Facility(3)

Various

September 2021

 

Other indebtedness

Various

Various

 

1.1

1.1

Total debt

$

1,192.4

$

(24.6)

$

1,167.8

Less: current portion

 

(7.0)

Total long-term debt, net of unamortized deferred financing fees

$

1,160.8

(1)This caption does not include unamortized deferred financing fees of $2.6 million and $3.6 million as of December 31, 2019 and 2018, respectively, related to the Company’s revolving facilities, which are included within “Deferred charges and other assets” on the consolidated balance sheets.
(2)The Company had $361.0 million (net of $14.0 million outstanding letters of credit) of funds available for borrowing under this facility as of December 31, 2019. Additionally, the Company is required to pay a quarterly commitment fee in respect of any unused commitments under this facility equal to 0.375% per annum.
(3)As of December 31, 2019, the Company had $137.6 million of accounts receivable available to support this facility, based on the pool of eligible accounts receivable. In regard to outstanding borrowings, fixed interest charges are 1.95% plus variable commercial paper rates, while for available, but undrawn commitments, fixed charges are 1.00%.
(4)As of December 31, 2019 and 2018, the current portion of long-term debt is primarily related to $7.0 million of scheduled future principal payments on the 2024 Term Loan B.
Redemption Price as Percentage of Principal Amount to Applicable Date of Redemption

12-month period commencing September 1 in Year 

Percentage

2020

 

102.688

%  

2021

 

101.792

%  

2022

100.896

%  

2023 and thereafter

 

100.000

%  

v3.19.3.a.u2
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments [Abstract]  
Notional Amounts of Most Significant Net Foreign Exchange Hedge Positions Outstanding

December 31, 

Buy / (Sell) 

    

2019

Euro

$

(346.4)

Chinese Yuan

$

(48.3)

Swiss Franc

$

35.4

Indonesian Rupiah

$

(18.5)

Korean Won

$

(12.2)

Schedule of Effect of Derivative Instruments on Statements of Operations

Location and Amount of Gain (Loss) Recognized in
Statements of Operations

Year Ended

Year Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2017

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

  

Cost of
sales

  

Interest expense, net

  

Other expense (income), net

Total amount of income and expense line items presented in the statements of operations in which the effects of derivative instruments are recorded

$

3,446.9

$

39.3

$

4.0

$

4,094.0

$

46.4

$

3.5

$

3,807.8

$

70.1

$

(21.5)

Effects of cash flow hedge instruments:

Foreign exchange cash flow hedges

Amount of gain (loss) reclassified from AOCI into income

$

6.7

$

$

$

(6.0)

$

$

$

(2.0)

$

$

Interest rate swaps

Amount of gain (loss) reclassified from AOCI into income

$

$

0.9

$

$

$

0.3

$

$

$

(0.3)

$

Effects of net investment hedge instruments:

Cross currency swaps (CCS)

Amount of gain excluded from effectiveness testing

$

$

15.8

$

$

$

11.8

$

$

$

$

Effects of derivatives not designated as hedge instruments:

Foreign exchange forward contracts

Amount of gain (loss) recognized in income

$

$

$

8.0

$

$

$

21.0

$

$

$

(19.2)

Schedule of Effect of Hedges on AOCI

Gain (Loss) Recognized in AOCI on Balance Sheets

Year Ended

December 31, 

2019

2018

2017

Designated as Cash Flow Hedges

Foreign exchange cash flow hedges

  

$

(2.2)

  

$

13.3

  

$

(21.3)

Interest rate swaps

(6.1)

1.7

2.9

Total

$

(8.3)

$

15.0

$

(18.4)

Designated as Net Investment Hedges

Euro Notes

$

$

$

38.6

Cross currency swaps (CCS)

$

17.9

$

23.7

$

(17.5)

Total

$

17.9

$

23.7

$

21.1

Net Unrealized Gains and Losses and Balance Sheet Classifications of Outstanding Derivatives

December 31, 2019

   

Foreign

Foreign

Exchange

Exchange

Interest

Cross

Balance Sheet

Forward

Cash Flow

Rate

Currency

Classification

    

Contracts

Hedges

Swaps

Swaps

Total

Asset Derivatives:

Accounts receivable, net of allowance

$

1.1

$

$

$

8.6

$

9.7

Deferred charges and other assets

19.2

19.2

Gross derivative asset position

1.1

27.8

28.9

Less: Counterparty netting

(0.4)

(0.4)

Net derivative asset position

$

0.7

$

$

$

27.8

$

28.5

Liability Derivatives:

Accounts payable

$

(5.7)

$

(0.5)

$

(0.4)

$

$

(6.6)

Other noncurrent obligations

(1.0)

(1.0)

Gross derivative liability position

(5.7)

(0.5)

(1.4)

(7.6)

Less: Counterparty netting

0.5

0.5

Net derivative liability position

$

(5.2)

$

(0.5)

$

(1.4)

$

$

(7.1)

Total net derivative position

$

(4.5)

$

(0.5)

$

(1.4)

$

27.8

$

21.4

December 31, 2018

   

Foreign

Foreign

 

Exchange

Exchange

Interest

Cross

Balance Sheet

Forward

Cash Flow

Rate

Currency

 

Classification

    

Contracts

    

Hedges

    

Swaps

    

Swaps

    

Total

     

Asset Derivatives:

Accounts receivable, net of allowance

$

0.6

$

1.9

$

1.5

$

8.1

$

12.1

Deferred charges and other assets

3.2

3.2

Gross derivative asset position

0.6

1.9

4.7

8.1

15.3

Less: Counterparty netting

(0.5)

(0.5)

Net derivative asset position

$

0.1

$

1.9

$

4.7

$

8.1

$

14.8

Liability Derivatives:

Accounts payable

$

(2.1)

$

$

$

$

(2.1)

Other noncurrent obligations

(3.4)

(3.4)

Gross derivative liability position

(2.1)

(3.4)

(5.5)

Less: Counterparty netting

0.5

0.5

Net derivative liability position

$

(1.6)

$

$

$

(3.4)

$

(5.0)

Total net derivative position

$

(1.5)

$

1.9

$

4.7

$

4.7

$

9.8

v3.19.3.a.u2
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Measurements  
Schedule of Assets and Liabilities at Fair Value on Recurring Basis

December 31, 2019

 

Quoted Prices in Active Markets for Identical Items

Significant Other Observable Inputs

Significant Unobservable Inputs

 

Assets (Liabilities) at Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

 

Foreign exchange forward contracts—Assets

    

$

    

$

0.7

    

$

    

$

0.7

Foreign exchange forward contracts—(Liabilities)

 

 

(5.2)

 

 

(5.2)

Foreign exchange cash flow hedges—(Liabilities)

(0.5)

(0.5)

Interest rate swaps—(Liabilities)

(1.4)

(1.4)

Cross currency swaps—Assets

27.8

27.8

Total fair value

$

$

21.4

$

$

21.4

December 31, 2018

 

Quoted Prices in Active Markets for Identical Items

Significant Other Observable Inputs

Significant Unobservable Inputs

 

Assets (Liabilities) at Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

    

Total

 

Foreign exchange forward contracts—Assets

$

    

$

0.1

    

$

    

$

0.1

Foreign exchange forward contracts—(Liabilities)

(1.6)

(1.6)

Foreign exchange cash flow hedges—Assets

    

    

1.9

1.9

Interest rate swaps—Assets

4.7

4.7

Cross currency swaps—Assets

8.1

8.1

Cross currency swaps—(Liabilities)

(3.4)

(3.4)

Total fair value

$

$

9.8

$

$

9.8

Estimated Fair Value of Outstanding Debt Not Carried at Fair Value

    

As of

As of

 

    

December 31, 2019

    

December 31, 2018

 

2025 Senior Notes

$

503.7

$

438.3

2024 Term Loan B

686.4

658.9

Total fair value

$

1,190.1

$

1,097.2

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Provision for Income Taxes  
Income (Loss) before Income Taxes Earned within and outside the United States

Year Ended

 

December 31,

 

2019

2018

2017

 

United States

    

$

115.3

    

$

147.0

    

$

138.0

Outside of the United States

 

(10.7)

 

217.3

 

273.1

Income before income taxes

$

104.6

$

364.3

$

411.1

Provision for (Benefit from) Income Taxes

Year Ended

Year Ended

Year Ended

December 31, 2019

December 31, 2018

December 31, 2017

 

Current

Deferred

Total

Current

Deferred

Total

Current

Deferred

Total

 

U.S. federal

    

$

16.9

    

$

5.2

    

$

22.1

    

$

22.8

    

$

5.9

    

$

28.7

    

$

33.5

    

$

6.9

    

$

40.4

U.S. state and other

    

 

2.8

    

 

0.9

    

 

3.7

    

 

4.1

    

 

1.0

    

 

5.1

    

 

4.8

    

 

    

 

4.8

Non-U.S.

    

 

30.3

    

 

(43.5)

    

 

(13.2)

    

 

39.6

    

 

(1.6)

    

 

38.0

    

 

29.7

    

 

7.9

    

 

37.6

Total

    

$

50.0

    

$

(37.4)

    

$

12.6

    

$

66.5

    

$

5.3

    

$

71.8

    

$

68.0

    

$

14.8

    

$

82.8

Schedule of Effective Tax Rate

Year Ended December 31,

 

   

2019

   

2018

   

2017

   

Taxes at U.S. statutory rate(1)

   

$

22.0

   

$

76.5

   

$

143.9

   

State and local income taxes

   

 

3.2

   

 

4.3

   

 

3.4

   

Non U.S. statutory rates, including credits

   

 

(8.8)

   

 

(39.7)

(2)

 

(97.4)

(2)

U.S. tax effect of foreign earnings and dividends

   

 

(1.5)

   

 

(2.8)

   

 

(1.6)

   

Unremitted earnings

   

 

5.2

   

 

2.2

   

 

6.6

   

Change in valuation allowances(3)

   

 

45.0

   

 

29.9

   

 

34.0

   

Uncertain tax positions

   

 

4.0

   

 

1.3

   

 

(10.7)

   

Withholding taxes

   

 

4.4

   

 

3.7

   

 

2.9

   

U.S. manufacturing deduction

   

 

   

 

   

 

(3.6)

   

Share-based compensation

   

 

(1.0)

   

 

(1.9)

   

 

(1.1)

   

Non-deductible interest

   

 

2.1

   

 

2.2

   

 

2.9

   

Non-deductible other expenses

   

 

0.3

   

 

1.5

   

 

1.2

   

Provision to return adjustments

   

 

3.4

   

 

(3.1)

   

 

(0.3)

   

Swiss Tax Reform(3)

(65.0)

Other—net(4)

   

 

(0.7)

   

 

(2.3)

(2)

 

2.6

(2)

Total provision for income taxes

   

$

12.6

   

$

71.8

   

$

82.8

   

Effective tax rate

   

 

12

%

 

20

%

 

20

%

(1)The U.S. statutory rate has been used as management believes it is more meaningful to the Company. The U.S. statutory rate was 21%, 21%, and 35%, respectively, for the years ended December 31, 2019, 2018, and 2017.
(2)These prior year amounts have been reclassified within the table to conform to the current year presentation.
(3)The year ended December 31, 2019 includes a $65.0 million one-time deferred tax benefit recorded as a result of changes in the Swiss federal and cantonal tax rules, which were enacted on August 6, 2019 and October 25, 2019, respectively. This one-time benefit was partially offset by a $25.3 million valuation allowance for the portion of the cantonal deferred tax asset that more likely than not will expire before utilization. See discussion below for further information.
(4)Included in “Other-net” for the year ended December 31, 2017 is $3.1 million of one-time income tax expense related to the revaluation of the Company’s U.S. federal deferred tax assets and liabilities at the new U.S. federal corporate income tax rate of 21% in accordance with the enactment of the “Tax Cuts and Jobs Act” signed into law on December 22, 2017.
Schedule of Temporary Differences Comprising Deferred Income Taxes

December 31,

 

2019

2018

 

Deferred

Deferred

Deferred

Deferred

 

Tax

Tax

Tax

Tax

 

Assets

Liabilities

Assets

Liabilities

 

Tax loss and credit carryforwards

    

$

185.9

    

$

    

$

157.8

    

$

Unremitted earnings

 

 

24.6

 

 

19.4

Unconsolidated affiliates

 

 

11.8

 

 

5.9

Other accruals and reserves

 

3.3

 

 

0.7

 

Property, plant and equipment

 

 

22.5

 

 

26.1

Goodwill and other intangible assets(1)

 

65.1

 

 

 

0.9

Deferred financing fees

 

5.4

 

 

7.7

 

Employee benefits

 

43.2

 

 

35.0

 

 

302.9

 

58.9

 

201.2

 

52.3

Valuation allowance

 

(218.0)

 

 

(167.6)

 

Total

$

84.9

$

58.9

$

33.6

$

52.3

(1)Includes the impact of Swiss federal and cantonal tax reform of $4.2 million and $62.4 million, respectively, as of December 31, 2019, measured at period-end exchange rates. See discussion below for further information.
Schedule of Reconciliation of Unrecognized Tax Benefits

Balance as of December 31, 2016

    

$

16.1

Increases related to current year tax positions

 

Increases related to prior year tax positions

 

0.9

Decreases related to prior year tax positions

 

(8.0)

Settlement of uncertain tax positions

(0.7)

Decreases due to expiration of statues of limitations

(1.3)

Balance as of December 31, 2017

$

7.0

Increases related to current year tax positions

 

Increases related to prior year tax positions

 

0.5

Decreases related to prior year tax positions

(0.3)

Settlement of uncertain tax positions

Decreases due to expiration of statues of limitations

(0.9)

Balance as of December 31, 2018

$

6.3

Increases related to current year tax positions

 

0.6

Increases related to prior year tax positions

3.8

Decreases related to prior year tax positions

Settlement of uncertain tax positions

(1.3)

Decrease due to expiration of statutes of limitations

(0.4)

Balance as of December 31, 2019

$

9.0

Summary of Income Tax Examinations [Table Text Block]

Major Tax Jurisdictions

Earliest Open Year

United States: Federal income tax

2014

Germany

2014

Switzerland

2014

Netherlands

2017

Luxembourg

2011

China

2009

Hong Kong

2006

Indonesia

2014

Italy

2010

v3.19.3.a.u2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure  
Schedule of Fixed and Determinable Portion of Obligation under Purchase Commitments (in millions)

Annual Commitment

2020

2021

2022

2023

2024

Thereafter

Total

$

1,038.8

$

90.5

$

67.0

$

$

$

$

1,196.3

v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Net Periodic Benefit Costs

Defined Benefit Pension Plans

Other Postretirement Benefit Plans

 

December 31,

December 31,

 

2019

2018

2017

2019

2018

2017

 

Net periodic benefit cost(1)

    

    

    

    

    

    

Service cost

$

13.1

$

12.3

$

20.5

$

0.1

$

0.2

$

0.2

Interest cost

 

5.1

 

4.9

 

4.9

 

0.2

 

0.2

 

0.3

Expected return on plan assets

 

(2.2)

 

(2.1)

 

(1.7)

 

 

 

Amortization of prior service cost (credit)

 

(1.1)

 

(1.1)

 

(2.0)

 

 

0.1

 

0.1

Amortization of net (gain) loss

 

3.3

 

4.1

 

5.6

 

(0.2)

 

 

(0.1)

Settlement and curtailment (gain) loss

 

0.8

 

0.6

 

(21.9)

(2)

 

 

 

Net periodic benefit cost

$

19.0

$

18.7

$

5.4

$

0.1

$

0.5

$

0.5

Amounts recognized in other comprehensive income (loss)

Net (gain) loss

$

27.9

$

(0.6)

$

(42.6)

$

0.1

$

(1.3)

$

(0.1)

Amortization of prior service (cost) credit

 

1.1

 

1.1

 

2.0

 

 

(0.1)

 

(0.1)

Amortization of net gain (loss)

 

(3.3)

 

(4.1)

 

(5.6)

 

0.2

 

 

0.1

Settlement and curtailment gain (loss)

 

(0.8)

 

(0.6)

 

21.9

(2)

 

 

 

Prior service credit

 

 

(0.5)

 

 

 

(0.4)

 

Total recognized in other comprehensive income (loss)

 

24.9

 

(4.7)

 

(24.3)

 

0.3

 

(1.8)

 

(0.1)

Net periodic benefit cost

 

19.0

 

18.7

 

5.4

 

0.1

 

0.5

 

0.5

Total recognized in net periodic benefit cost and other comprehensive income (loss)

$

43.9

$

14.0

$

(18.9)

$

0.4

$

(1.3)

$

0.4

(1)Service cost related to the Company’s defined benefit pension plans and other postretirement plans is included within “Cost of sales” and “Selling, general and administrative expenses,” whereas all other components of net periodic benefit cost are included within “Other expense (income), net” in the consolidated statements of operations.
(2)Approximately $21.6 million of this amount related to a curtailment gain on certain of the Company’s pension plans in Europe recorded during the year ended December 31, 2017, which was recorded within “Other expense (income), net” in the consolidated statements of operations. This curtailment was triggered by a plan amendment under which participants will not receive incremental benefits under the existing plan for service provided subsequent to December 31, 2017. Previous participants in the curtailed pension plan became eligible to participate in a new multi-employer plan starting on January 1, 2018.

Schedule of Changes in Pension Benefit Obligations and Fair Value of Plan Assets and Funded Status of All Significant Plans

Defined Benefit

Other Postretirement

 

Pension Plans

Benefit Plans

 

December 31,

December 31,

 

2019

2018

2019

2018

 

Change in projected benefit obligations

    

    

    

    

Benefit obligation at beginning of period

$

321.9

$

321.7

$

5.8

$

7.1

Service cost

 

13.1

 

12.3

 

0.1

 

0.2

Interest cost

 

5.1

 

4.9

 

0.2

 

0.2

Plan participants’ contributions

 

1.9

 

1.8

 

 

Actuarial changes in assumptions and experience (1)

 

45.7

 

(0.4)

 

0.1

 

(1.3)

Benefits paid from fund

 

0.1

 

(0.7)

 

 

Benefit payments by employer

 

(2.3)

 

(2.3)

 

 

Acquisitions

 

44.5

 

 

 

Plan amendments

(0.5)

(0.4)

Curtailments

 

(3.8)

 

 

 

Settlements

 

(7.2)

 

(3.8)

 

 

Other

 

(0.1)

 

1.6

 

 

Currency impact

 

(2.7)

 

(12.7)

 

 

Benefit obligation at end of period

$

416.2

$

321.9

$

6.2

$

5.8

Change in plan assets

Fair value of plan assets at beginning of period

$

138.5

$

140.1

$

$

Actual return on plan assets

 

16.3

 

2.4

 

 

Settlements

 

(7.2)

 

(3.8)

 

 

Employer contributions

 

5.7

 

5.9

 

 

Plan participants’ contributions

 

1.9

 

1.8

 

 

Benefits paid

 

(2.2)

 

(3.0)

 

 

Currency impact

 

(1.2)

 

(4.9)

 

 

Fair value of plan assets at end of period

 

151.8

 

138.5

 

 

Funded status at end of period

$

(264.4)

$

(183.4)

$

(6.2)

$

(5.8)

(1)The actuarial loss for the year ended December 31, 2019 was primarily due to the decrease in discount rates during the year, while the actuarial gain for the year ended December 31, 2018 was primarily due to an increase in discount rates during the year.
Schedule of Net Amounts Recognized in Balance Sheet

Defined Benefit

Other Postretirement

 

Pension Plans

Benefit Plans

 

December 31,

December 31,

 

2019

2018

2019

2018

 

Net amounts recognized in the balance sheets as of December 31

    

    

    

    

Current liabilities

$

(5.8)

$

(2.7)

$

(0.1)

$

Noncurrent liabilities

 

(258.6)

 

(180.7)

 

(6.1)

 

(5.8)

Net amounts recognized in the balance sheet

$

(264.4)

$

(183.4)

$

(6.2)

$

(5.8)

Accumulated benefit obligation at the end of the period

$

380.6

$

293.7

$

6.2

$

5.8

Pretax amounts recognized in AOCI as of December 31

Net prior service cost (credit)

$

(3.7)

$

(4.8)

$

(0.1)

$

(0.2)

Net loss (gain)

 

84.3

 

60.5

 

(1.9)

 

(2.1)

Total at end of period

$

80.6

$

55.7

$

(2.0)

$

(2.3)

Schedule of Estimated Future Benefit Payments, Reflecting Expected Future Service

    

    

    

    

    

    

2025

    

 

through

 

2020

2021

2022

2023

2024

2029

Total

 

Defined benefit pension plans

$

17.6

$

5.8

$

7.1

$

9.9

$

8.6

$

61.3

$

110.3

Other postretirement benefit plans

 

0.1

 

0.1

 

0.1

 

0.2

 

0.3

 

2.1

 

2.9

Total

$

17.7

$

5.9

$

7.2

$

10.1

$

8.9

$

63.4

$

113.2

Schedule of Pension Plans with Projected and Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

Projected Benefit Obligation

December 31,

 

Exceeds the Fair Value of Plan Assets 

2019

2018

 

Projected benefit obligations

    

$

319.9

    

$

239.7

Fair value of plan assets

$

55.5

$

56.3

Accumulated Benefit Obligation

December 31,

 

Exceeds the Fair Value of Plan Assets

2019

2018

 

Accumulated benefit obligations

    

$

289.1

    

$

210.8

Fair value of plan assets

$

55.5

$

50.3

Defined Benefit Pension Plans  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Weighted-average Assumptions on Pension Plan Obligations, Other Postretirement Benefit ("OPEB") and Net Periodic Benefit Costs

Pension Plan Obligations

Net Periodic Benefit Costs

 

December 31,

December 31,

 

    

2019

    

2018

    

2017

    

2019

    

2018

    

2017

 

Discount rate for projected benefit obligation

 

1.03

%  

1.86

%  

1.79

%  

1.86

%  

1.80

%  

1.65

%  

Discount rate for service cost

N/A

N/A

N/A

1.79

%  

1.72

%  

1.64

%  

Discount rate for interest cost

N/A

N/A

N/A

1.59

%  

1.53

%  

1.42

%  

Rate of increase in future compensation levels

 

2.81

%  

2.80

%  

2.81

%  

2.80

%  

2.83

%  

2.61

%  

Expected long-term rate of return on plan assets

N/A

N/A

N/A

1.57

%  

1.54

%  

1.44

%  

Other Postretirement Plans  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Weighted-average Assumptions on Pension Plan Obligations, Other Postretirement Benefit ("OPEB") and Net Periodic Benefit Costs

OPEB Obligations

Net Periodic Benefit Costs

 

December 31,

December 31,

 

    

2019

    

2018

    

2017

    

2019

    

2018

    

2017

 

Discount rate for accumulated postretirement benefit obligation

3.48

%  

4.38

%  

3.68

%  

4.38

%  

3.68

%  

4.16

%

Discount rate for service cost

N/A

N/A

N/A

4.42

%  

3.70

%  

4.18

%  

Discount rate for interest cost

N/A

N/A

N/A

4.14

%  

3.46

%  

3.81

%  

Initial health care cost trend rate

 

6.70

%  

6.70

%  

6.70

%  

6.70

%  

6.70

%  

6.70

%

Ultimate health care cost trend rate

 

5.00

%  

5.00

%  

5.00

%  

5.00

%  

5.00

%  

5.00

%

Year ultimate trend rate to be reached

 

2025

2024

2023

2024

2023

2022

v3.19.3.a.u2
Share-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Share-Based Compensation Expense and Unrecognized Compensation Cost

As of

 

December 31, 2019

Year Ended December 31,

Unrecognized

Weighted

2019

2018

2017

Compensation Cost

Average Years

 

2014 Omnibus Plan Awards

RSUs

$

7.5

$

8.8

$

8.6

$

8.6

1.8

Option Awards

3.1

4.4

4.1

1.4

1.3

PSUs

2.9

2.6

1.1

3.3

2.0

Total share-based compensation expense

$

13.5

$

15.8

$

13.8

Schedule of Option Awards Activity

    

    

Weighted-Average

Weighted-Average

Aggregate

Exercise Price

Contractual

Intrinsic

Option Awards

Shares

per share

Term (years)

Value

Outstanding as of December 31, 2018

 

934,338

$

46.72

Granted

237,071

51.00

Exercised

(40,263)

23.82

Forfeited

(27,220)

60.19

Expired

(6,214)

58.64

Outstanding as of December 31, 2019

1,097,712

$

48.08

6.1

$

6.2

Exercisable as of December 31, 2019

688,131

$

38.91

5.3

$

6.2

Expected to vest as of December 31, 2019

409,581

$

63.49

7.5

$

Restricted Share Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Restricted Stock, RSU and PSU Award Activity

    

    

Weighted-Average

Grant Date

Restricted Share Units

Shares

Fair Value per Share

Unvested, December 31, 2018

 

492,149

$

48.82

Granted

 

236,156

 

48.63

Vested

 

(319,580)

 

33.98

Forfeited

 

(94,397)

 

62.45

Unvested, December 31, 2019

 

314,328

$

59.67

Summary of Weighted-average Grant Date Fair Value per Share

Restricted Share Units

    

Weighted-Average Grant Date

    

Total Fair Value

Fair Value per Share

of Awards Vested

of Grants during Period

during Period

Year Ended December 31, 2019

 

$

48.63

$

10.9

Year Ended December 31, 2018

$

79.18

$

7.4

Year Ended December 31, 2017

$

70.85

$

1.3

Option Awards  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Weighted-average Assumptions

Year Ended

December 31, 

    

2019

2018

 

2017

 

Expected term (in years)

 

5.50

5.50

5.50

Expected volatility

 

36.00

%

32.00

%

35.00

%

Risk-free interest rate

 

2.53

%

2.71

%

2.19

%

Dividend yield

2.00

%  

2.00

%  

2.00

%  

Performance Share Units  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary of Restricted Stock, RSU and PSU Award Activity

    

    

Weighted-Average

Grant Date

Performance Share Units

Shares

Fair Value per Share

Unvested, December 31, 2018

 

116,362

$

82.10

Granted

 

117,053

 

54.01

Vested

 

 

Forfeited

 

(97,158)

 

66.93

Unvested, December 31, 2019

 

136,257

$

68.78

Summary of Weighted-average Assumptions

Year Ended

December 31, 

2019

2018

 

2017

Expected term (in years)

3.00

3.00

3.00

Expected volatility

 

36.40

%

35.03

%

39.00

%

Risk-free interest rate

 

2.58

%

2.55

%

1.56

%

Share Price

$

50.95

$

79.42

$

71.45

v3.19.3.a.u2
Related Party And Dow Transactions (Tables)
12 Months Ended
Dec. 31, 2019
Related Party Transactions  
Schedule of Related Party Expenses

Year Ended December 31, 2019

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

26.2

$

160.8

    

$

187.0

Selling, general, and administrative expenses

 

8.2

3.4

 

11.6

Total

$

34.4

$

164.2

$

198.6

Year Ended December 31, 2018

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

39.1

    

$

206.9

    

$

246.0

Selling, general, and administrative expenses

 

8.5

 

3.9

 

12.4

Total

$

47.6

$

210.8

$

258.4

Year Ended December 31, 2017

Financial Statement Line Item

    

SAR MOSA

    

SAR SSAs

    

Total

Cost of sales

    

$

39.8

    

$

179.2

    

$

219.0

Selling, general, and administrative expenses

 

9.3

 

4.1

 

13.4

Total

$

49.1

$

183.3

$

232.4

v3.19.3.a.u2
Segments (Tables)
12 Months Ended
Dec. 31, 2019
Segments  
Schedule of Segment Reporting Information, by Segment [Table Text Block]

Latex

Synthetic

Performance

Americas

Corporate

 

Year Ended

Binders

Rubber

Plastics

Polystyrene

Feedstocks

Styrenics

Unallocated

Total

 

December 31, 2019

  

Equity in earnings of unconsolidated affiliates

$

$

$

$

$

$

119.0

$

$

119.0

Adjusted EBITDA(1)

 

80.8

40.7

135.1

54.6

7.0

119.0

Investment in unconsolidated affiliates

 

 

 

 

 

188.1

 

 

188.1

Depreciation and amortization

 

25.8

44.4

28.8

10.9

12.8

13.3

 

136.0

Capital expenditures(2)

21.4

26.1

26.6

4.1

8.1

23.8

110.1

December 31, 2018

Equity in earnings of unconsolidated affiliates

$

$

$

$

$

$

144.1

$

$

144.1

Adjusted EBITDA(1)

 

110.4

 

77.0

 

188.9

 

33.7

 

107.1

 

144.1

Investment in unconsolidated affiliates

 

 

 

 

 

 

179.1

 

 

179.1

Depreciation and amortization

 

24.9

 

43.9

 

28.7

 

11.6

 

12.1

 

 

9.0

 

130.2

Capital expenditures(2)

17.2

26.8

55.1

3.4

13.2

5.7

121.4

December 31, 2017

Equity in earnings of unconsolidated affiliates

$

$

$

0.8

$

$

$

122.9

$

$

123.7

Adjusted EBITDA(1)

 

138.5

 

83.3

 

230.9

 

48.2

 

110.5

 

122.9

Investment in unconsolidated affiliates

 

 

 

 

 

 

152.5

 

 

152.5

Depreciation and amortization

23.6

 

35.7

 

20.0

 

9.8

 

12.6

 

 

8.9

 

110.6

(1)The Company’s primary measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring; acquisition related costs and benefits and other items. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. Other companies in the industry may define segment Adjusted EBITDA differently than the Company, and as a result, it may be difficult to use segment Adjusted EBITDA, or similarly-named financial measures, that other companies may use to compare the performance of those companies to the Company’s segment performance.
(2)In 2018, capital expenditure information began being reviewed and included with the Company’s reporting to the chief operating decision maker, thus it has been presented above by reportable segment for the years ended December 31, 2019 and 2018.
Reconciliation of IBT to Adjusted EBITDA

Year Ended December 31,

 

    

2019

    

2018

2017

 

Income before income taxes

$

104.6

$

364.3

$

411.1

Interest expense, net

 

39.3

 

46.4

 

70.1

Depreciation and amortization

 

136.0

 

130.2

 

110.6

Corporate Unallocated(3)

85.4

88.0

91.8

Adjusted EBITDA Addbacks(4)

 

71.9

 

32.3

 

50.7

Segment Adjusted EBITDA

$

437.2

$

661.2

$

734.3

(3)

Corporate unallocated includes corporate overhead costs and certain other income and expenses.

(4)

Adjusted EBITDA addbacks for the years ended December 31, 2019, 2018, and 2017 are as follows:

Year Ended December 31,

    

2019

    

2018

2017

Loss on extinguishment of long-term debt (Note 11)

$

$

0.2

$

65.3

Net gain on disposition of businesses and assets (Note 4)

(0.7)

(1.0)

(9.7)

Restructuring and other charges (Note 20)

18.1

8.2

6.0

Acquisition transaction and integration net costs (benefit) (Note 4)

(0.9)

0.6

4.7

Asset impairment charges or write-offs(a)

1.5

4.3

Other items(b)

55.4

22.8

(19.9)

Total Adjusted EBITDA Addbacks

$

71.9

$

32.3

$

50.7

(a)Asset impairment charges for the years ended December 31, 2018 and 2017 primarily relate to the impairment of certain corporate long-lived assets and certain long-lived assets in the Performance Plastics segment, respectively.
(b)Other items for the years ended December 31, 2019 and 2018 primarily relate to advisory and professional fees incurred in conjunction with the Company’s initiative to transition business services from Dow, including certain administrative services such as accounts payable, logistics, finance, and IT services. Also included within other items for the year ended December 31, 2019 are fees incurred in conjunction with certain of the Company’s strategic initiatives. Other items for the year ended December 31, 2018 are primarily related to fees incurred in conjunction with the Company’s 2024 Term Loan B repricing completed in the second quarter of 2018. Other items for the year ended December 31, 2017 are primarily related to a curtailment gain recorded on certain of the Company’s pension plans in Europe (refer to Note 16 for further information), offset by fees incurred in conjunction with the Company’s debt refinancing which was completed during the third quarter of 2017.

Schedule of Sales Attributed to Geographical Areas Based on Location of Sales and Long-lived Assets Attributed to Geographical Areas Based on Asset Location

As of and for the Year Ended

 

December 31,

2019

2018

2017

 

United States

    

    

    

    

    

    

Sales to external customers

$

580.3

$

627.3

$

602.7

Long-lived assets

 

44.9

 

38.6

 

43.2

Right-of-use assets - operating

10.4

Europe

Sales to external customers

$

2,163.3

$

2,782.6

$

2,688.9

Long-lived assets

 

457.7

 

424.8

 

449.3

Right-of-use assets - operating

55.1

Asia-Pacific

Sales to external customers

$

934.7

$

1,104.3

$

1,051.4

Long-lived assets

 

123.2

 

128.7

 

134.4

Right-of-use assets - operating

5.9

Rest of World

Sales to external customers

$

97.5

$

108.6

$

105.1

Long-lived assets

 

 

 

0.1

Right-of-use assets - operating

Total

Sales to external customers(1)

$

3,775.8

$

4,622.8

$

4,448.1

Long-lived assets(2)

 

625.8

 

592.1

 

627.0

Right-of-use assets - operating(3)

71.4

(1)Sales to external customers in Germany represented approximately 9%, 9%, and 10% of the total for the years ended December 31, 2019, 2018, and 2017, respectively. Sales to external customers in Hong Kong represented approximately 13% of the total for each of the years ended December 31, 2019, 2018, and 2017. Sales to external customers in China represented approximately 6%, 6%, and 7% of the total for the years ended December 31, 2019, 2018, and 2017, respectively.
(2)Long-lived assets in Germany represented approximately 46%, 43%, and 45% of the total as of December 31, 2019, 2018, and 2017, respectively. Long-lived assets in The Netherlands represented approximately 17%, 19%, and 15% of the total as of December 31, 2019, 2018, and 2017, respectively. Long-lived assets consist of property, plant and equipment, net. Long-lived assets in China represented approximately 12%, 13%, and 13% of the total as of December 31, 2019, 2018, and 2017, respectively. Amounts include right-of-use assets for finance leases.
(3)The Company began recognizing operating lease ROU assets on its consolidated balance sheets during the first quarter of 2019 in conjunction with its adoption of the new lease accounting standard, as discussed further in Note 2. Operating lease ROU assets in The Netherlands represented approximately 61% of the total as of December 31, 2019. ROU assets in the United States represented approximately 15% of the total as of December 31, 2019. Operating lease ROU assets in Germany represented approximately 7% of the total as of December 31, 2019.
v3.19.3.a.u2
Restructuring (Tables)
12 Months Ended
Dec. 31, 2019
Restructuring  
Detail of Restructuring Charges

Cumulative

Year Ended December 31,

Life-to-date

2019

2018

    

2017

    

Charges

    

Segment

Corporate Restructuring Program

Accelerated depreciation

$

0.4

$

$

$

0.4

Employee termination benefits

17.0

17.0

Contract terminations

0.4

0.4

Corporate Program Subtotal

$

17.8

$

$

$

17.8

N/A(1)

Synthetic Rubber Restructuring

Employee termination benefits

$

$

5.5

$

$

5.5

Synthetic Rubber Subtotal

$

$

5.5

$

$

5.5

Synthetic Rubber

Terneuzen Compounding Restructuring

Asset impairment/accelerated depreciation

$

$

1.1

$

2.0

$

3.1

Employee termination benefits

(0.3)

0.5

0.5

0.7

Contract terminations

(0.3)

0.6

0.3

Decommissioning and other

0.6

0.6

0.2

2.0

Terneuzen Subtotal

$

0.3

$

1.9

$

3.3

$

6.1

Performance Plastics

Livorno Plant Restructuring

Asset impairment/accelerated depreciation

$

$

0.4

$

$

14.7

Employee termination benefits

0.8

5.4

Contract terminations

0.3

Decommissioning and other

0.5

0.7

2.3

4.2

Livorno Subtotal

$

0.5

$

1.1

$

3.1

$

24.6

Latex Binders

Allyn's Point Restructuring

Asset impairment/accelerated depreciation

$

$

$

$

7.3

Employee termination benefits

0.8

Decommissioning and other

0.8

0.4

2.9

Allyn's Point Subtotal

$

$

0.8

$

0.4

$

11.0

Latex Binders

Other Restructurings

1.2

Various

Total Restructuring Charges

$

18.6

$

9.3

$

8.0

(1)As this was identified as a corporate-related activity, the charges related to this restructuring program were not allocated to a specific segment, but rather included within corporate unallocated.
Rollforward of Liability Balances

    

Balance at

    

    

    

Balance at

 

    

December 31, 2018

    

Expenses 

    

Deductions(1)

    

December 31, 2019

  

Employee termination benefits

$

6.4

$

16.7

$

(5.9)

$

17.2

Contract terminations

0.3

0.4

0.7

Decommissioning and other

 

 

1.1

 

(1.1)

 

Total

$

6.7

$

18.2

$

(7.0)

$

17.9

    

Balance at

    

    

    

Balance at

    

December 31, 2017

    

Expenses

    

Deductions(1)

    

December 31, 2018

Employee termination benefits

$

1.4

$

6.0

$

(1.0)

$

6.4

Contract terminations

 

0.6

 

(0.3)

 

 

0.3

Decommissioning and other

 

 

2.1

 

(2.1)

 

Total

$

2.0

$

7.8

$

(3.1)

$

6.7

(1)Includes primarily payments made against the existing accrual, as well as immaterial impacts of foreign currency remeasurement.
v3.19.3.a.u2
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2019
Shareholders' Equity.  
Components of AOCI, Net of Income Taxes

    

Cumulative

    

Pension & Other

    

Translation

Postretirement Benefit

Cash Flow

Years Ended December 31, 2019, 2018, and 2017

Adjustments

    

Plans, Net

    

Hedges, Net

    

Total

Balance at December 31, 2016

$

(119.0)

$

(63.5)

$

12.3

$

(170.2)

Other comprehensive income (loss)

 

24.5

 

31.8

(20.7)

 

35.6

Amounts reclassified from AOCI to net income(1)

(13.3)

2.3

(11.0)

Balance at December 31, 2017

$

(94.5)

$

(45.0)

$

(6.1)

$

(145.6)

Other comprehensive income (loss)

 

(17.3)

 

2.5

9.3

 

(5.5)

Amounts reclassified from AOCI to net income(1)

3.1

5.7

8.8

Balance at December 31, 2018

$

(111.8)

$

(39.4)

$

8.9

$

(142.3)

Other comprehensive income (loss)

 

5.1

 

(19.0)

 

(0.7)

 

(14.6)

Amounts reclassified from AOCI to net income(1)

2.1

(7.6)

(5.5)

Balance at December 31, 2019

$

(106.7)

$

(56.3)

$

0.6

$

(162.4)

(1)The following is a summary of amounts reclassified from AOCI to net income for the years ended December 31, 2019, 2018, and 2017:
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Amount Reclassified from AOCI

AOCI Components

    

Year Ended December 31,

Statement of Operations

2019

    

2018

    

2017

    

Classification

Cash flow hedging items

Foreign exchange cash flow hedges

$

(6.7)

$

6.0

$

2.0

Cost of sales

Interest rate swaps

(0.9)

(0.3)

0.3

Interest expense, net

Total before tax

(7.6)

5.7

2.3

Tax effect

Provision for income taxes

Total, net of tax

$

(7.6)

$

5.7

$

2.3

Amortization of pension and other postretirement benefit plan items

Curtailment and settlement (gain) loss

$

0.8

$

0.6

$

(21.9)

(a)

Prior service credit

(1.1)

(1.0)

(1.9)

(b)

Net actuarial loss

3.4

4.6

6.4

(b)

Total before tax

3.1

4.2

(17.4)

Tax effect

(1.0)

(1.1)

4.1

Provision for income taxes

Total, net of tax

$

2.1

$

3.1

$

(13.3)

(a)The amount for the year ended December 31, 2017 primarily relates to the curtailment of certain of the Company’s pension plans in Europe. Refer to Note 16 for further information.
(b)These AOCI components are included in the computation of net periodic benefit costs. Refer to Note 16 for further information.
v3.19.3.a.u2
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2019
Earnings Per Share  
Schedule of Earnings per Share Basic and Diluted

Year Ended

 

December 31,

 

(in millions, except per share data)

    

2019

    

2018

2017

 

Earnings:

Net income

$

92.0

$

292.5

$

328.3

Shares:

Weighted average ordinary shares outstanding

 

40.3

 

42.8

 

43.8

Dilutive effect of RSUs, option awards, and PSUs(1)

 

0.4

 

0.9

 

1.2

Diluted weighted average ordinary shares outstanding

 

40.7

 

43.7

 

45.0

Income per share:

Income per share—basic

$

2.28

$

6.83

$

7.49

Income per share—diluted

$

2.26

$

6.70

$

7.30

(1)Refer to Note 17 for discussion of RSUs, option awards, and PSUs granted to certain Company directors and employees. The number of anti-dilutive shares that have been excluded in the computation of diluted earnings per
share were 0.6 million, 0.4 million, and 0.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.

..

v3.19.3.a.u2
Leases (Tables)
12 Months Ended
Dec. 31, 2019
Lessee Disclosure [Abstract]  
Schedule of ROU Assets and Lease Liabilities

As of

December 31, 

2019

Location on Balance Sheet

Operating lease ROU assets

$

71.4

Right-of-use assets - operating

Finance lease ROU assets

7.9

Property, plant, and equipment, net of accumulated depreciation

Operating lease liabilities - current portion

14.1

Current lease liabilities - operating

Operating lease liabilities - noncurrent portion

58.0

Noncurrent lease liabilities - operating

Finance lease liabilities - current portion

2.6

Short-term borrowings and current portion of long-term debt

Finance lease liabilities - noncurrent portion

5.3

Long-term debt, net of unamortized deferred financing fees

Schedule of Lease Costs

Year Ended

December 31, 

2019

Finance lease cost:

Amortization of lease ROU assets

$

0.8

Interest on lease liabilities

0.1

Operating lease cost

18.2

Variable lease cost

0.2

Total lease cost

$

19.3

Schedule of Cash and Non-cash Activity Related To Lease Liabilities

Year Ended

December 31, 

2019

Cash paid related to lease liabilities:

Operating cash flows from operating leases

$

17.0

Operating cash flows from finance leases

0.1

Financing cash flows from finance leases

0.8

Non-cash lease liability activity(1):

ROU assets obtained in exchange for new operating lease liabilities

$

86.2

ROU assets obtained in exchange for new finance lease liabilities

8.8

(1)Amounts include the impact of adopting the new lease accounting standard effective January 1, 2019.
Schedule of Maturity of Operating Lease Liabilities ASC842

Maturity of lease liabilities by year

2020

2021

2022

2023

2024

Thereafter

Total Lease Payments

Less Imputed Interest

Lease Liability

Operating Leases

$

16.1

$

10.6

$

8.8

$

8.4

$

6.7

$

35.3

$

85.9

$

(13.8)

$

72.1

Finance Leases

$

2.8

$

2.8

$

2.3

$

0.1

$

0.1

$

0.3

$

8.4

$

(0.5)

$

7.9

Total

$

18.9

$

13.4

$

11.1

$

8.5

$

6.8

$

35.6

$

94.3

$

(14.3)

$

80.0

Schedule of Maturity of Finance Lease Liabilities

Maturity of lease liabilities by year

2020

2021

2022

2023

2024

Thereafter

Total Lease Payments

Less Imputed Interest

Lease Liability

Operating Leases

$

16.1

$

10.6

$

8.8

$

8.4

$

6.7

$

35.3

$

85.9

$

(13.8)

$

72.1

Finance Leases

$

2.8

$

2.8

$

2.3

$

0.1

$

0.1

$

0.3

$

8.4

$

(0.5)

$

7.9

Total

$

18.9

$

13.4

$

11.1

$

8.5

$

6.8

$

35.6

$

94.3

$

(14.3)

$

80.0

Schedule of Future Minimum Rental Payments under Operating Leases ASC840

Annual Commitment

2019

2020

2021

2022

2023

Thereafter

Total

$

17.5

$

14.4

$

9.0

$

10.6

$

5.4

$

16.0

$

72.9

v3.19.3.a.u2
Selected Quarterly Financial Data (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Selected Quarterly Financial Data

    

First

    

Second

    

Third

    

Fourth

 

(in millions, except per share data)

Quarter

Quarter

Quarter

Quarter

 

2019

Net sales

$

1,013.1

$

951.8

$

922.1

$

888.8

Gross profit

 

97.4

 

86.2

 

85.2

 

60.0

Equity in earnings of unconsolidated affiliates

 

32.2

 

40.3

 

25.7

 

20.8

Operating income (loss)

 

60.8

 

55.1

 

43.3

 

(11.2)

(2)

Income before income taxes

 

46.6

 

43.7

 

31.8

 

(17.5)

(2)

Net income

 

35.8

 

28.0

 

22.5

(1)

 

5.7

(2) (3)

Net income per share- basic

$

0.87

$

0.69

$

0.56

(1)

$

0.14

(2) (3)

Net income per share- diluted

$

0.86

$

0.68

$

0.56

(1)

$

0.14

(2) (3)

2018

Net sales

$

1,121.6

$

1,236.6

$

1,199.7

$

1,065.0

Gross profit

 

175.2

 

162.7

 

131.6

 

59.3

Equity in earnings of unconsolidated affiliates

 

45.5

 

33.2

 

34.5

 

30.8

Operating income

 

156.3

 

134.2

 

106.1

 

17.7

Income before income taxes

 

145.2

 

118.7

 

93.9

 

6.4

Net income (loss)

 

120.3

 

98.3

 

74.7

 

(0.9)

Net income (loss) per share- basic

$

2.77

$

2.28

$

1.75

$

(0.02)

Net income (loss) per share- diluted

$

2.71

$

2.24

$

1.72

$

(0.02)

(1)Includes a $7.4 million deferred tax benefit related to the re-measurement of the Company’s deferred tax assets and liabilities in Switzerland due to changes in Swiss Federal tax rules, which were enacted in August 2019. Refer to Note 14 for more information.
(2)Includes $17.8 million of expense related to the Company’s corporate restructuring program. Refer to Note 20 for further information.
(3)Includes a net $24.1 million tax benefit, which primarily related to a $32.7 million benefit recorded in connection with the re-measurement of the Company’s deferred tax assets and liabilities in Switzerland due to changes in Swiss Cantonal and Federal tax rules enacted in 2019. This is partially offset by a $6.2 million charge recorded to increase the Company’s reserves for uncertain tax positions. Refer to Note 14 for more information.

.

v3.19.3.a.u2
Organization and Business Activities (Details)
12 Months Ended
Dec. 31, 2019
site
country
facility
Plant
Dec. 31, 2019
division
country
site
facility
Dec. 31, 2019
segment
country
site
facility
Dec. 31, 2019
site
item
country
facility
Dec. 31, 2016
shares
Jun. 17, 2010
Organization and Business Activities            
Shares sold by former parent | shares         37,269,567  
Number of manufacturing plants | Plant 32          
Number of production units | item       77    
Number of sites | site 24 24 24 24    
Number of countries | country 12 12 12 12    
Number of research and development facilities | facility 10 10 10 10    
Number of operating segments   6 6      
Styron Holdcos [Member]            
Organization and Business Activities            
Business acquisition, ownership percentage           100.00%
v3.19.3.a.u2
Basis of Presentation and Policies - Financial Instruments and Foreign Currency (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Basis of Presentation      
Foreign exchange transaction gains (losses) $ (6.2) $ (15.8) $ 20.6
v3.19.3.a.u2
Basis of Presentation and Policies - Environment, Property, Intangibles, Investment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Accrual environmental liabilities $ 0 $ 0  
Net capitalized turnaround costs 23,100 15,100  
Impairment losses on goodwill 0 0 $ 0
Impairment loss on intangible asset $ 0 $ 0 $ 0
Customer Relationships [Member]      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life 19 years 19 years  
Minimum | Developed Technology [Member]      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life 9 years 9 years  
Maximum | Developed Technology [Member]      
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]      
Estimated useful life 15 years 15 years  
v3.19.3.a.u2
Basis of Presentation and Policies - Restricted cash, SG&A, Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]        
Restricted cash $ 1.2 $ 1.2 $ 0.0  
Revenue, Practical Expedient, Financing Component [true false]   true    
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]   true    
Restructuring charges $ 17.8 $ 18.2 7.8  
Selling, General and Administrative Expenses        
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]        
Research and development costs   54.6 56.0 $ 54.3
Promotional and advertising expenses   1.8 1.6 1.5
Restructuring charges   $ 18.6 $ 9.3 $ 8.0
v3.19.3.a.u2
Basis of Presentation - Recent Accounting Guidance (Details) - USD ($)
$ in Millions
Jan. 01, 2019
Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Lease, Practical Expedients, Package [true false] true  
Lease, Practical Expedient, Lessor Single Lease Component [true false] true  
Lease, Practical Expedient, Land Easement [true false] true  
Operating Lease, Right-of-Use Asset   $ 71.4
Operating Lease, Liability   $ 72.1
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Operating Lease, Right-of-Use Asset $ 73.0  
Operating Lease, Liability $ 72.4  
v3.19.3.a.u2
Net Sales (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disaggregation of Revenue [Line Items]                      
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]                 true    
Revenue, Practical Expedient, Financing Component [true false]                 true    
Net sales $ 888.8 $ 922.1 $ 951.8 $ 1,013.1 $ 1,065.0 $ 1,199.7 $ 1,236.6 $ 1,121.6 $ 3,775.8 $ 4,622.8 $ 4,448.1
Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     4,448.1
Minimum                      
Disaggregation of Revenue [Line Items]                      
Product sales payment terms                 10 days    
Maximum                      
Disaggregation of Revenue [Line Items]                      
Product sales payment terms                 90 days    
Weighted Average [Member]                      
Disaggregation of Revenue [Line Items]                      
Product sales payment terms                 58 days    
Latex Binders Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 $ 902.8 1,069.0  
Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     1,097.1
Synthetic Rubber Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 441.3 572.5  
Synthetic Rubber Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     582.8
Performance Plastics Segment [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,366.2 1,577.6  
Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     1,419.1
Polystyrene [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 809.4 1,017.1  
Polystyrene [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     941.4
Feedstocks [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 256.1 386.6  
Feedstocks [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     407.7
United States [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 580.3 627.3  
United States [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     602.7
United States [Member] | Latex Binders Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 263.7 288.2  
United States [Member] | Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     290.9
United States [Member] | Performance Plastics Segment [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 305.9 326.4  
United States [Member] | Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     297.4
United States [Member] | Polystyrene [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                   0.2  
United States [Member] | Polystyrene [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     1.0
United States [Member] | Feedstocks [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 10.7 12.5  
United States [Member] | Feedstocks [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     13.4
Europe [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 2,163.3 2,782.6  
Europe [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     2,688.9
Europe [Member] | Latex Binders Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 388.5 459.4  
Europe [Member] | Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     468.5
Europe [Member] | Synthetic Rubber Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 441.3 572.5  
Europe [Member] | Synthetic Rubber Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     582.8
Europe [Member] | Performance Plastics Segment [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 735.9 931.2  
Europe [Member] | Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     866.3
Europe [Member] | Polystyrene [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 448.8 607.8  
Europe [Member] | Polystyrene [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     571.7
Europe [Member] | Feedstocks [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 148.8 211.7  
Europe [Member] | Feedstocks [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     199.6
Asia-Pacific [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 934.7 1,104.3  
Asia-Pacific [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     1,051.4
Asia-Pacific [Member] | Latex Binders Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 239.3 306.6  
Asia-Pacific [Member] | Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     320.6
Asia-Pacific [Member] | Performance Plastics Segment [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 238.2 226.2  
Asia-Pacific [Member] | Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     167.4
Asia-Pacific [Member] | Polystyrene [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 360.6 409.1  
Asia-Pacific [Member] | Polystyrene [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     368.7
Asia-Pacific [Member] | Feedstocks [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 96.6 162.4  
Asia-Pacific [Member] | Feedstocks [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     194.7
Rest of World [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 97.5 108.6  
Rest of World [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     105.1
Rest of World [Member] | Latex Binders Segment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 11.3 14.8  
Rest of World [Member] | Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     17.1
Rest of World [Member] | Performance Plastics Segment [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                 $ 86.2 $ 93.8  
Rest of World [Member] | Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Disaggregation of Revenue [Line Items]                      
Net sales                     $ 88.0
v3.19.3.a.u2
Acquisitions and Divestitures - Acquisition (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended 24 Months Ended
Oct. 01, 2019
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2019
Jul. 31, 2017
Business Acquisition [Line Items]              
Purchase price, net of cash acquired     $ (0.1)   $ 82.3    
Goodwill   $ 67.7 67.7 $ 69.0 72.5 $ 67.7  
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Bargain purchase gain     $ 4.7        
Customer Relationships [Member]              
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Estimated useful life     19 years 19 years      
Developed Technology [Member] | Minimum              
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Estimated useful life     9 years 9 years      
Developed Technology [Member] | Maximum              
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Estimated useful life     15 years 15 years      
Other [Member]              
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Estimated useful life     3 years     3 years  
Latex Binder Production Facilities In Rheinmunster Germany [Member]              
Business Acquisition [Line Items]              
Cash acquired $ 6.7            
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Inventories 3.9            
Property, plant, and equipment 48.2            
Right of use assets - operating 0.3            
Total fair value of assets acquired 52.4            
Accrued expenses and other current liabilities (0.6)            
Noncurrent lease liabilities - operating (0.3)            
Deferred income tax liabilities (2.0)            
Other noncurrent obligations (51.5)            
Total fair value of liabilities assumed (54.4)            
Net identifiable assets acquired (2.0)            
Net cash received 6.7            
Bargain purchase gain 4.7 $ 4.7          
Pension and other post-retirement plan liabilities 44.5            
Unfavorable leasehold interest $ 7.0            
Jurisdictional asset transfer taxes     $ 2.2        
Acquisition costs     $ 1.6        
Latex Binder Production Facilities In Rheinmunster Germany [Member] | Other [Member]              
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]              
Estimated useful life 18 years            
API Applicazioni Plastiche Industriali S.p.A. [Member]              
Business Acquisition [Line Items]              
Equity interest acquired             100.00%
Gross purchase price         90.6    
Cash acquired         8.4    
Purchase price, net of cash acquired         82.3    
Goodwill         $ 28.3    
v3.19.3.a.u2
Acquisitions and Divestitures - Divestitures (Details) - Brazil Latex and Automotive Businesses [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jun. 30, 2016
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disclosures by disposal group        
Period subsequent to closing contingent consideration payments may be made by buyer 5 years      
Proceeds received   $ 0.7 $ 1.0  
Cash proceeds   $ 0.7 $ 0.5 $ 1.7
v3.19.3.a.u2
Investments in Unconsolidated Affiliates (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
item
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
item
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jan. 31, 2017
Investments in Unconsolidated Affiliates                        
Number of joint ventures | item 1               1      
Equity in earnings of unconsolidated affiliates | $ $ 20.8 $ 25.7 $ 40.3 $ 32.2 $ 30.8 $ 34.5 $ 33.2 $ 45.5 $ 119.0 $ 144.1 $ 123.7  
Americas Styrenics                        
Investments in Unconsolidated Affiliates                        
Percentage of ownership underlying net assets 50.00%               50.00%      
Sumika Styron Polycarbonate                        
Investments in Unconsolidated Affiliates                        
Percentage of ownership underlying net assets                       50.00%
v3.19.3.a.u2
Investments in Unconsolidated Affiliates - Summarized Financial Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Summarized Financial Information, Assets      
Current assets $ 326.6 $ 373.4  
Noncurrent assets 247.7 236.2  
Total assets 574.3 609.6  
Summarized Financial Information, Liabilities      
Current liabilities 158.8 167.2  
Noncurrent liabilities 18.5 17.4  
Total liabilities 177.3 184.6  
Summarized Financial Information, Net Income      
Sales 1,486.1 1,825.7 $ 1,798.1
Gross profit 243.2 310.2 244.3
Net income 192.5 260.2 196.3
Sales to unconsolidated affiliates 0.0 0.0 3.6
Purchases from unconsolidated affiliates 81.9 91.5 $ 78.8
Accounts receivable due from unconsolidated affiliates 0.1 0.1  
Accounts payable due to unconsolidated affiliate $ 6.3 $ 5.4  
v3.19.3.a.u2
Investments in Unconsolidated Affiliates - Detail (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Investments in Unconsolidated Affiliates        
Investments in unconsolidated affiliates   $ 188.1 $ 179.1 $ 152.5
Americas Styrenics        
Investments in Unconsolidated Affiliates        
Investments in unconsolidated affiliates   188.1 179.1  
Investment in unconsolidated affiliates-difference between carrying amount and underlying equity   $ 10.3 33.3  
Percentage of ownership underlying net assets   50.00%    
Amortized weighted average remaining useful life   1.5    
Dividends received from operating activities   $ 110.0 $ 117.5 120.0
Sumika Styron Polycarbonate        
Investments in Unconsolidated Affiliates        
Percentage of ownership underlying net assets 50.00%      
Sales proceeds $ 42.1      
Gain on sale       9.3
Dividends received from operating and investing activities       $ 9.8
v3.19.3.a.u2
Accounts Receivable (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accounts Receivable [Abstract]      
Trade receivables $ 455.0 $ 535.4  
Non-income tax receivables 63.4 74.6  
Other receivables 57.7 44.2  
Less: allowance for doubtful accounts (5.3) (6.1)  
Total 570.8 648.1  
Recognized bad debt expense $ (0.7) $ 0.6 $ 1.5
v3.19.3.a.u2
Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Inventories    
Finished goods $ 210.8 $ 269.8
Raw materials and semi-finished goods 190.1 205.8
Supplies 37.3 34.8
Total $ 438.2 $ 510.4
v3.19.3.a.u2
Property, Plant and Equipment (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 1,291.5 $ 1,182.7  
Less: accumulated depreciation (665.7) (590.6)  
Property, plant and equipment, net 625.8 592.1  
Depreciation expense 96.9 95.7 $ 77.9
Capitalized interest 3.0 3.6 $ 5.0
Land [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 53.0 26.0  
Land and Waterway Improvements [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 26.9 18.4  
Land and Waterway Improvements [Member] | Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 1 year    
Land and Waterway Improvements [Member] | Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 20 years    
Buildings [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 110.7 97.0  
Buildings [Member] | Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 10 years    
Buildings [Member] | Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 50 years    
Machinery and Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 955.5 912.9  
Machinery and Equipment [Member] | Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 3 years    
Machinery and Equipment [Member] | Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 10 years    
Leasehold Interests [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 41.6 40.9  
Leasehold Interests [Member] | Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 9 years    
Leasehold Interests [Member] | Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 40 years    
Other Property [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 47.4 34.8  
Other Property [Member] | Minimum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 1 year    
Other Property [Member] | Maximum      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 20 years    
Construction in Process [Member]      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 56.4 $ 52.7  
v3.19.3.a.u2
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Goodwill [Roll Forward]      
Beginning Balance $ 69.0 $ 72.5  
Foreign currency impact (1.3) 3.5  
Ending Balance 67.7 69.0 $ 72.5
Impairment of goodwill 0.0 0.0 0.0
Latex Binders Segment      
Goodwill [Roll Forward]      
Beginning Balance 15.9 16.5  
Foreign currency impact (0.3) 0.6  
Ending Balance 15.6 15.9 16.5
Synthetic Rubber Segment      
Goodwill [Roll Forward]      
Beginning Balance 11.3 11.7  
Foreign currency impact (0.3) 0.4  
Ending Balance 11.0 11.3 11.7
Performance Plastics Segment [Member]      
Goodwill [Roll Forward]      
Beginning Balance 37.3 39.6  
Foreign currency impact (0.6) 2.3  
Ending Balance 36.7 37.3 39.6
Basic Plastics Segment [Member]      
Goodwill [Roll Forward]      
Beginning Balance 4.5 4.7  
Foreign currency impact (0.1) 0.2  
Ending Balance $ 4.4 $ 4.5 $ 4.7
v3.19.3.a.u2
Goodwill and Intangible Assets - Other Intangible Assets Table (Details) - USD ($)
$ in Millions
12 Months Ended 24 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Other Intangible Assets      
Gross Carrying Amount $ 382.7 $ 351.2 $ 382.7
Accumulated Amortization (191.2) (160.1) (191.2)
Net 191.5 191.1 191.5
Developed Technology [Member]      
Other Intangible Assets      
Gross Carrying Amount 188.6 192.3 188.6
Accumulated Amortization (117.2) (105.6) (117.2)
Net $ 71.4 $ 86.7 71.4
Developed Technology [Member] | Maximum      
Other Intangible Assets      
Estimated Useful Life (Years) 15 years 15 years  
Developed Technology [Member] | Minimum      
Other Intangible Assets      
Estimated Useful Life (Years) 9 years 9 years  
Customer Relationships [Member]      
Other Intangible Assets      
Estimated Useful Life (Years) 19 years 19 years  
Gross Carrying Amount $ 13.8 $ 14.1 13.8
Accumulated Amortization (1.8) (1.1) (1.8)
Net $ 12.0 $ 13.0 12.0
Manufacturing Capacity Rights [Member]      
Other Intangible Assets      
Estimated Useful Life (Years) 6 years 6 years  
Gross Carrying Amount $ 22.1 $ 21.8 22.1
Accumulated Amortization (20.0) (16.8) (20.0)
Net 2.1 5.0 2.1
Software [Member]      
Other Intangible Assets      
Gross Carrying Amount 119.2 101.9 119.2
Accumulated Amortization (50.0) (35.3) (50.0)
Net $ 69.2 $ 66.6 69.2
Software [Member] | Maximum      
Other Intangible Assets      
Estimated Useful Life (Years) 10 years 10 years  
Software [Member] | Minimum      
Other Intangible Assets      
Estimated Useful Life (Years) 5 years 5 years  
Software in Development [Member]      
Other Intangible Assets      
Gross Carrying Amount $ 34.7 $ 17.2 34.7
Net $ 34.7 17.2 $ 34.7
Other [Member]      
Other Intangible Assets      
Estimated Useful Life (Years) 3 years   3 years
Gross Carrying Amount $ 4.3 3.9 $ 4.3
Accumulated Amortization (2.2) (1.3) (2.2)
Net $ 2.1 $ 2.6 $ 2.1
v3.19.3.a.u2
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Goodwill.      
Amortization expense related to finite-lived intangible assets $ 33.0 $ 29.7 $ 27.0
Estimated Amortization Expense, 2020 30.6    
Estimated Amortization Expense, 2021 26.6    
Estimated Amortization Expense, 2022 25.7    
Estimated Amortization Expense, 2023 25.3    
Estimated Amortization Expense, 2024 $ 24.9    
v3.19.3.a.u2
Accounts Payable (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Payables and Accruals [Abstract]    
Trade payables $ 304.6 $ 319.9
Other payables 38.4 34.3
Total $ 343.0 $ 354.2
v3.19.3.a.u2
Debt - Schedule of Debt (Details)
€ in Millions, $ in Millions
12 Months Ended
May 22, 2018
May 21, 2018
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 01, 2017
USD ($)
Aug. 31, 2017
EUR (€)
Aug. 29, 2017
USD ($)
May 05, 2015
USD ($)
Debt Instruments                  
Carrying amount     $ 1,194.7 $ 1,192.4          
Unamortized deferred financing fees     (21.0) (24.6)          
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent     1,173.7 1,167.8          
Less: current portion     (11.1) (7.0)          
Total long-term debt, net of unamortized deferred financing fees     1,162.6 1,160.8          
Accounts receivable available to support facility     137.6            
Interest and Debt Expense [Abstract]                  
Interest expense, net     39.3 46.4 $ 70.1        
Amortization of deferred financing fees, issuance discount, and excluded component of hedging instrument     4.7 4.5 $ 5.1        
Accrued interest on outstanding debt     4.4 4.4          
Senior Credit Facility [Member]                  
Debt Instruments                  
Unamortized deferred financing fees     (2.6) $ (3.6)          
Maximum borrowing capacity     $ 1,075.0            
2024 Term Loan B                  
Debt Instruments                  
Interest rate at end of period (as a percent)     3.799% 4.522%          
Carrying amount     $ 684.3 $ 691.3          
Unamortized deferred financing fees     (13.7) (16.2)          
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent     670.6 675.1          
Less: current portion     $ (7.0) $ (7.0)          
Debt instrument, margin rate     2.00%            
2024 Term Loan B | LIBOR [Member]                  
Debt Instruments                  
Debt instrument, margin rate 2.00% 2.50%              
2022 Revolving Facility                  
Debt Instruments                  
Funds available for borrowings     $ 361.0            
Letters of credit, amount outstanding     $ 14.0            
Commitment fee (as a percent)     0.375%            
Maximum borrowing capacity     $ 375.0            
2025 Senior Notes                  
Debt Instruments                  
Interest rate at end of period (as a percent)     5.375% 5.375%          
Interest rate           5.375%   5.375%  
Carrying amount     $ 500.0 $ 500.0          
Unamortized deferred financing fees     (7.3) (8.4)          
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent     $ 492.7 491.6   $ 500.0   $ 500.0  
Accounts Receivable Securitization Facility [Member]                  
Debt Instruments                  
Interest rate     1.95%            
Commitment fee (as a percent)     1.00%            
Maximum borrowing capacity     $ 150.0            
Other Indebtedness [Member]                  
Debt Instruments                  
Carrying amount     10.4 1.1          
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent     $ 10.4 $ 1.1          
2020 Senior Credit Facility                  
Debt Instruments                  
Maximum borrowing capacity                 $ 825.0
2020 Revolving Facility                  
Debt Instruments                  
Maximum borrowing capacity                 325.0
2021 Term Loan B                  
Debt Instruments                  
Maximum borrowing capacity                 $ 500.0
USD Notes                  
Debt Instruments                  
Interest rate                 6.75%
Euro Notes                  
Debt Instruments                  
Interest rate                 6.375%
Total Debt, Less Unamortized Deferred Financing Fees, Current and Noncurrent | €             € 375.0    
v3.19.3.a.u2
Debt - Senior Credit Facility (Details)
$ in Millions
12 Months Ended
May 22, 2018
May 21, 2018
Sep. 06, 2017
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
May 05, 2015
USD ($)
Debt Instruments                
Loss on extinguishment of debt         $ 0.2 $ 65.3    
Current portion       $ 11.1 7.0      
2020 Senior Credit Facility                
Debt Instruments                
Maximum borrowing capacity               $ 825.0
Loss on extinguishment of debt           0.8    
2020 Revolving Facility                
Debt Instruments                
Maximum borrowing capacity               325.0
Swingline subfacility capacity               25.0
Letter of credit capacity               35.0
Line of credit             $ 0.0  
Unamortized deferred financing fees     $ 4.0          
2021 Term Loan B                
Debt Instruments                
Maximum borrowing capacity               $ 500.0
Amount outstanding             $ 490.0  
Unamortized deferred financing fees     8.1          
Senior Credit Facility [Member]                
Debt Instruments                
Maximum borrowing capacity       1,075.0        
2022 Revolving Facility                
Debt Instruments                
Maximum borrowing capacity       375.0        
Swingline subfacility capacity       25.0        
Letter of credit capacity       $ 35.0        
Capitalization of issuance costs     $ 0.8          
Amortization period     5 years          
Percentage of Revolving Facility borrowing capacity covenant trigger       30.00%        
Undrawn letters of credit       $ 10.0        
2022 Revolving Facility | Maximum                
Debt Instruments                
Net leverage ratio       2.00        
2024 Term Loan B                
Debt Instruments                
Loss on extinguishment of debt         0.2      
Debt instrument issued       $ 700.0        
Debt repricing costs incurred     $ 12.3   1.1      
Debt issuance fees expensed         0.5 $ 1.2    
Capitalization of issuance costs     $ 11.1   0.6      
Amortization period     7 years 7 years        
Debt instrument, margin rate       2.00%        
Variable rate floor (as a percent)       0.00%        
Principal payable per quarter, as a percent       0.25%        
Current portion       $ 7.0 $ 7.0      
LIBOR [Member] | 2024 Term Loan B                
Debt Instruments                
Debt instrument, margin rate 2.00% 2.50%            
Variable rate floor (as a percent) 0.00% 0.00%            
v3.19.3.a.u2
Debt - Senior Notes (Details)
12 Months Ended
Sep. 07, 2017
USD ($)
Aug. 29, 2017
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2019
USD ($)
Sep. 01, 2017
May 05, 2015
EUR (€)
May 05, 2015
USD ($)
Debt Instruments                
Call premium       $ 53,000,000.0        
Loss on extinguishment of debt     $ 200,000 65,300,000        
Unamortized deferred financing fees     24,600,000   $ 21,000,000.0      
2022 Senior Notes                
Debt Instruments                
Redemption of Senior Notes $ 746,000,000.0              
Call premium 53,000,000.0              
Accrued and unpaid interest $ 17,000,000.0              
Loss on extinguishment of debt       64,500,000        
Write-off of unamortized deferred financing fees       $ 11,500,000        
Euro Notes                
Debt Instruments                
Debt instrument issued | €             € 375,000,000.0  
Debt instrument, stated interest rate             6.375% 6.375%
Debt instrument, redemption price percentage 107.459%              
USD Notes                
Debt Instruments                
Debt instrument issued               $ 300,000,000.0
Debt instrument, stated interest rate             6.75% 6.75%
Debt instrument, redemption price percentage 106.572%              
2025 Senior Notes                
Debt Instruments                
Debt instrument issued   $ 500,000,000.0            
Debt instrument, stated interest rate   5.375%       5.375%    
Unamortized deferred financing fees     $ 8,400,000   $ 7,300,000      
Capitalization of issuance costs   $ 9,700,000            
Amortization period   8 years            
2025 Senior Notes | Period prior to September 1, 2020                
Debt Instruments                
Debt instrument, redemption price percentage   100.00%            
Aggregate principal amount that may be redeemed, as a percent   40.00%            
Redemption price, as percentage of principal   105.375%            
2025 Senior Notes | 12-month period commencing September 1, 2020                
Debt Instruments                
Debt instrument, redemption price percentage   102.688%            
2025 Senior Notes | 12-month period commencing September 1, 2021                
Debt Instruments                
Debt instrument, redemption price percentage   101.792%            
2025 Senior Notes | 12-month period commencing September 1, 2022                
Debt Instruments                
Debt instrument, redemption price percentage   100.896%            
2025 Senior Notes | 12-Month period commencing September 1, 2023 and thereafter                
Debt Instruments                
Debt instrument, redemption price percentage   100.00%            
v3.19.3.a.u2
Debt - Accounts Receivable Securitization Facility and Other (Details) - Accounts Receivable Securitization Facility [Member]
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
item
Debt Instruments  
Number of subsidiaries participating | item 2
Maximum borrowing capacity | $ $ 150.0
v3.19.3.a.u2
Derivative Instruments (Details)
€ in Millions, $ in Millions
12 Months Ended
Feb. 26, 2020
USD ($)
May 22, 2018
May 21, 2018
Sep. 01, 2017
EUR (€)
Dec. 31, 2019
USD ($)
item
Feb. 26, 2020
EUR (€)
Feb. 26, 2020
USD ($)
Dec. 31, 2018
USD ($)
Apr. 01, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 01, 2017
USD ($)
Aug. 31, 2017
EUR (€)
Aug. 29, 2017
USD ($)
May 05, 2015
Derivative Instruments                              
Derivative term       5 years                      
Total debt         $ 1,173.7     $ 1,167.8              
Initial excluded component value                 $ 23.6            
Subsequent Event [Member]                              
Derivative Instruments                              
Exchange rate           1.09 1.09                
Cash Flow Hedges                              
Derivative Instruments                              
Derivative contracts, notional amount         $ 84.0                    
Derivative term         12 months                    
Net Investment Hedges                              
Derivative Instruments                              
Cumulative translation adjustment, net of tax                     $ 24.1        
Foreign Exchange Forward Contracts                              
Derivative Instruments                              
Derivative term         2 months                    
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         $ 500.3                    
Foreign Exchange Forward Contracts | Designated as Hedging Instrument                              
Derivative Instruments                              
Number of subsidiaries participating | item         1                    
Cross Currency Swap                              
Derivative Instruments                              
Derivative contracts, notional amount | €       € 420.0                      
Cross currency swap weighted average interest rate (as a percent)       3.45%                      
Cumulative translation adjustment, net of tax                   $ 38.0          
Cross Currency Swap | Subsequent Event [Member]                              
Derivative Instruments                              
Derivative contracts, notional amount | €           € 459.3                  
Derivative term 2 years 8 months 12 days                            
Cross currency swap weighted average interest rate (as a percent) 3.672%                            
Cash proceeds $ 51.6                            
Interest Rate Swap                              
Derivative Instruments                              
Derivative contracts, notional amount         $ 200.0                    
Fixed interest rate per agreement (as a percent)         1.81%                    
LIBOR rate at end of period (as a percent)         1.80%                    
Euro Notes                              
Derivative Instruments                              
Total debt | €                         € 375.0    
Interest rate                             6.375%
Euro Notes | Net Investment Hedges                              
Derivative Instruments                              
Total debt | €                         € 280.0    
2025 Senior Notes                              
Derivative Instruments                              
Total debt         $ 492.7     491.6       $ 500.0   $ 500.0  
Interest rate       5.375%               5.375%   5.375%  
2025 Senior Notes | Subsequent Event [Member]                              
Derivative Instruments                              
Total debt             $ 500.0                
Interest rate           5.375% 5.375%                
2024 Term Loan B                              
Derivative Instruments                              
Total debt         $ 670.6     $ 675.1              
Debt instrument, margin rate         2.00%                    
Variable rate floor (as a percent)         0.00%                    
2024 Term Loan B | LIBOR [Member]                              
Derivative Instruments                              
Debt instrument, margin rate   2.00% 2.50%                        
Variable rate floor (as a percent)   0.00% 0.00%                        
Euro [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         $ 346.4                    
Swiss Franc [Member] | Foreign Exchange Forward Contracts | Buy | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         35.4                    
Chinese Yuan [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         48.3                    
Indonesian Rupiah [Member] | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         18.5                    
Korea (South), Won | Foreign Exchange Forward Contracts | Sell | Not Designated as Hedging Instruments - Economic                              
Derivative Instruments                              
Derivative contracts, notional amount         $ 12.2                    
v3.19.3.a.u2
Derivative Instruments - Income Statements (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Cost of sales $ 3,446.9 $ 4,094.0 $ 3,807.8
Interest expense, net 39.3 46.4 70.1
Other expense (income), net 4.0 3.5 (21.5)
Cost of Sales      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Cost of sales 3,446.9 4,094.0 3,807.8
Interest Expense, Net      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Interest expense, net (39.3) (46.4) (70.1)
Other Expense (Income), Net      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Other expense (income), net (4.0) (3.5) 21.5
Foreign Exchange Forward Contracts | Cost of Sales      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Amount of gain (loss) reclassified from AOCI into income, foreign exchange cash flow hedges 6.7 (6.0) (2.0)
Foreign Exchange Forward Contracts | Other Expense (Income), Net      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Amount of gain recognized in income, not designated 8.0 21.0 (19.2)
Cross Currency Swap | Interest Expense, Net      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Amount of gain excluded from effectiveness testing 15.8 11.8  
Interest Rate Swap | Interest Expense, Net      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Amount of gain (loss) reclassified from AOCI into income, interest rate cash flow hedges $ 0.9 $ 0.3 $ (0.3)
v3.19.3.a.u2
Derivative Instruments - Effect on AOCI (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative Instruments      
Gain (Loss) Recognized in AOCI, Cash flow hedges - post adoption $ (8.3) $ 15.0  
Net gain (loss) on cash flow hedges prior to adoption     $ (18.4)
Gain (Loss) Recognized in AOCI, Net investment hedges 17.9 23.7 21.1
Foreign Exchange Forward Contracts      
Derivative Instruments      
Gain (Loss) Recognized in AOCI, Cash flow hedges - post adoption (2.2) 13.3  
Net gain (loss) on cash flow hedges prior to adoption     (21.3)
Cross Currency Swap      
Derivative Instruments      
Gain (Loss) Recognized in AOCI, Net investment hedges 17.9 23.7 (17.5)
Debt Instrument Hedge      
Derivative Instruments      
Gain (Loss) Recognized in AOCI, Net investment hedges     38.6
Interest Rate Swap      
Derivative Instruments      
Gain (Loss) Recognized in AOCI, Cash flow hedges - post adoption $ (6.1) $ 1.7  
Net gain (loss) on cash flow hedges prior to adoption     $ 2.9
v3.19.3.a.u2
Derivative Instruments - Gains and Losses text (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Foreign exchange transaction gains (losses) $ (6.2) $ (15.8) $ 20.6
Cash Flow Hedges      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Reclassification expected during next 12 months (0.1)    
Foreign Exchange Forward Contracts      
Derivative, Gain (Loss) on Derivative, Net [Abstract]      
Gain (loss) from settlements and changes in fair value $ 8.0 $ 21.0 $ (19.2)
v3.19.3.a.u2
Derivative Instruments - Financial Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Derivatives, Financial Assets and Liabilities    
Gross derivative asset position $ 28.9 $ 15.3
Counterparty netting, derivative assets (0.4) (0.5)
Net derivative asset position 28.5 14.8
Gross derivative liability position (7.6) (5.5)
Counterparty netting, derivative liabilities 0.5 0.5
Net derivative liability position (7.1) (5.0)
Total net derivative position 21.4 9.8
Accounts Receivable    
Derivatives, Financial Assets and Liabilities    
Derivative assets 9.7 12.1
Deferred Charges and Other Assets    
Derivatives, Financial Assets and Liabilities    
Derivative assets 19.2 3.2
Accounts Payable    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (6.6) (2.1)
Other Noncurrent Obligations    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (1.0) (3.4)
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments - Economic    
Derivatives, Financial Assets and Liabilities    
Gross derivative asset position 1.1 0.6
Counterparty netting, derivative assets (0.4) (0.5)
Net derivative asset position 0.7 0.1
Gross derivative liability position (5.7) (2.1)
Counterparty netting, derivative liabilities 0.5 0.5
Net derivative liability position (5.2) (1.6)
Total net derivative position (4.5) (1.5)
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments - Economic | Accounts Receivable    
Derivatives, Financial Assets and Liabilities    
Derivative assets 1.1 0.6
Foreign Exchange Forward Contracts | Not Designated as Hedging Instruments - Economic | Accounts Payable    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (5.7) (2.1)
Foreign Exchange Forward Contracts | Designated as Hedging Instrument    
Derivatives, Financial Assets and Liabilities    
Gross derivative asset position   1.9
Net derivative asset position   1.9
Gross derivative liability position (0.5)  
Net derivative liability position (0.5)  
Total net derivative position (0.5) 1.9
Foreign Exchange Forward Contracts | Designated as Hedging Instrument | Accounts Receivable    
Derivatives, Financial Assets and Liabilities    
Derivative assets   1.9
Foreign Exchange Forward Contracts | Designated as Hedging Instrument | Accounts Payable    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (0.5)  
Interest Rate Swap    
Derivatives, Financial Assets and Liabilities    
Gross derivative asset position   4.7
Net derivative asset position   4.7
Gross derivative liability position (1.4)  
Net derivative liability position (1.4)  
Total net derivative position (1.4) 4.7
Interest Rate Swap | Accounts Receivable    
Derivatives, Financial Assets and Liabilities    
Derivative assets   1.5
Interest Rate Swap | Deferred Charges and Other Assets    
Derivatives, Financial Assets and Liabilities    
Derivative assets   3.2
Interest Rate Swap | Accounts Payable    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (0.4)  
Interest Rate Swap | Other Noncurrent Obligations    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value (1.0)  
Cross Currency Swap    
Derivatives, Financial Assets and Liabilities    
Gross derivative asset position 27.8 8.1
Net derivative asset position 27.8 8.1
Gross derivative liability position   (3.4)
Net derivative liability position   (3.4)
Total net derivative position 27.8 4.7
Cross Currency Swap | Accounts Receivable    
Derivatives, Financial Assets and Liabilities    
Derivative assets 8.6 8.1
Cross Currency Swap | Deferred Charges and Other Assets    
Derivatives, Financial Assets and Liabilities    
Derivative assets $ 19.2  
Cross Currency Swap | Other Noncurrent Obligations    
Derivatives, Financial Assets and Liabilities    
Liabilities at fair value   $ (3.4)
v3.19.3.a.u2
Fair Value Measurements - Assets and Liabilities at Fair Value, Recurring (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value Measurements    
Total net derivative position $ 21.4 $ 9.8
Interest Rate Swap    
Fair Value Measurements    
Total net derivative position (1.4) 4.7
Cross Currency Swap    
Fair Value Measurements    
Total net derivative position 27.8 4.7
Designated as Hedging Instrument | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Total net derivative position (0.5) 1.9
Not Designated as Hedging Instruments - Economic | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Total net derivative position (4.5) (1.5)
Recurring    
Fair Value Measurements    
Total net derivative position 21.4 9.8
Recurring | Interest Rate Swap    
Fair Value Measurements    
Assets at fair value   4.7
Liabilities at fair value (1.4)  
Recurring | Cross Currency Swap    
Fair Value Measurements    
Assets at fair value 27.8 8.1
Liabilities at fair value   (3.4)
Recurring | Significant Other Observable Inputs (Level 2)    
Fair Value Measurements    
Total net derivative position 21.4 9.8
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swap    
Fair Value Measurements    
Assets at fair value   4.7
Liabilities at fair value (1.4)  
Recurring | Significant Other Observable Inputs (Level 2) | Cross Currency Swap    
Fair Value Measurements    
Assets at fair value 27.8 8.1
Liabilities at fair value   (3.4)
Recurring | Designated as Hedging Instrument | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Assets at fair value   1.9
Liabilities at fair value (0.5)  
Recurring | Designated as Hedging Instrument | Significant Other Observable Inputs (Level 2) | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Assets at fair value   1.9
Liabilities at fair value (0.5)  
Recurring | Not Designated as Hedging Instruments - Economic | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Assets at fair value 0.7 0.1
Liabilities at fair value (5.2) (1.6)
Recurring | Not Designated as Hedging Instruments - Economic | Significant Other Observable Inputs (Level 2) | Foreign Exchange Forward Contracts    
Fair Value Measurements    
Assets at fair value 0.7 0.1
Liabilities at fair value $ (5.2) $ (1.6)
v3.19.3.a.u2
Fair Value Measurements - Items not at Fair Value (Details) - Significant Other Observable Inputs (Level 2) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value of Debt Instruments    
Total fair value of long term debt $ 1,190.1 $ 1,097.2
2025 Senior Notes    
Fair Value of Debt Instruments    
Total fair value of long term debt 503.7 438.3
2024 Term Loan B    
Fair Value of Debt Instruments    
Total fair value of long term debt $ 686.4 $ 658.9
v3.19.3.a.u2
Income Taxes - Income (Loss) Earned by location (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Provision for Income Taxes                      
United States                 $ 115.3 $ 147.0 $ 138.0
Outside of the United States                 (10.7) 217.3 273.1
Income before income taxes $ (17.5) $ 31.8 $ 43.7 $ 46.6 $ 6.4 $ 93.9 $ 118.7 $ 145.2 $ 104.6 $ 364.3 $ 411.1
v3.19.3.a.u2
Income Taxes - Provision for (Benefit from) Income Taxes (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax [Line Items]        
Current $ (24.1) $ 50.0 $ 66.5 $ 68.0
Deferred   (37.4) 5.3 14.8
Total Provision for (benefit from) income taxes   12.6 71.8 82.8
U.S. Federal [Member]        
Income Tax [Line Items]        
Current   16.9 22.8 33.5
Deferred   5.2 5.9 6.9
Total Provision for (benefit from) income taxes   22.1 28.7 40.4
U.S. State and Other [Member]        
Income Tax [Line Items]        
Current   2.8 4.1 4.8
Deferred   0.9 1.0  
Total Provision for (benefit from) income taxes   3.7 5.1 4.8
Non - U.S. [Member]        
Income Tax [Line Items]        
Current   30.3 39.6 29.7
Deferred   (43.5) (1.6) 7.9
Total Provision for (benefit from) income taxes   $ (13.2) $ 38.0 $ 37.6
v3.19.3.a.u2
Income Taxes - Effective Tax Rate (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Provision for Income Taxes      
Taxes at U.S. statutory rate $ 22.0 $ 76.5 $ 143.9
State and local income taxes 3.2 4.3 3.4
Non U.S. statutory rates, including credits (8.8) (39.7) (97.4)
U.S. tax effect of foreign earnings and dividends (1.5) (2.8) (1.6)
Unremitted earnings 5.2 2.2 6.6
Change in valuation allowances 45.0 29.9 34.0
Uncertain tax positions 4.0 1.3 (10.7)
Withholding taxes 4.4 3.7 2.9
U.S. manufacturing deduction     (3.6)
Share-based compensation (1.0) (1.9) (1.1)
Non-deductible interest 2.1 2.2 2.9
Non-deductible other expenses 0.3 1.5 1.2
Provision to return adjustments 3.4 (3.1) (0.3)
Swiss tax reform (65.0)    
Other-net (0.7) (2.3) 2.6
Provision for income taxes $ 12.6 $ 71.8 $ 82.8
Effective tax rate 12.00% 20.00% 20.00%
Tax expense related to Tax Cuts and Jobs Act     $ 3.1
U.S. federal corporate income tax rate 21.00% 21.00% 35.00%
Valuation allowance, provision against tax benefit expected to expire $ 25.3    
v3.19.3.a.u2
Income Taxes - Deferred Tax Assets and Liabilities, Loss cfwds, Tax reform (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Deferred Tax Assets, Net of Valuation Allowance [Abstract]    
Tax loss and credit carry forwards $ 185.9 $ 157.8
Other accruals and reserves 3.3 0.7
Goodwill and other intangible assets 65.1  
Deferred financing fees 5.4 7.7
Employee benefits 43.2 35.0
Deferred tax assets, gross 302.9 201.2
Valuation allowance (218.0) (167.6)
Deferred tax assets, net 84.9 33.6
Deferred Tax Liabilities, Gross [Abstract]    
Unremitted earnings 24.6 19.4
Unconsolidated affiliates 11.8 5.9
Property, plant and equipment 22.5 26.1
Goodwill and other intangible assets   0.9
Deferred tax liabilities, gross 58.9 52.3
Deferred tax liabilities, net 58.9 52.3
Impact of Swiss federal tax reform 4.2  
Impact of Swiss cantonal tax reform 62.4  
Operating loss carryforwards 748.4 $ 601.7
Swiss tax reform 65.0  
Swiss tax reform, cantonal tax law portion 61.6  
Valuation allowance, provision against tax benefit expected to expire 25.3  
2020 thru 2024    
Deferred Tax Liabilities, Gross [Abstract]    
Operating loss carryforwards 51.4  
Beyond 2024    
Deferred Tax Liabilities, Gross [Abstract]    
Operating loss carryforwards $ 697.0  
v3.19.3.a.u2
Income Taxes - Unrecognized Tax Benefits, etc. (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]        
Beginning Balance   $ 6.3 $ 7.0 $ 16.1
Increases related to current year tax positions $ 6.2 0.6    
Increases related to prior year tax positions   3.8 0.5 0.9
Decreases related to prior year tax positions     (0.3) (8.0)
Settlement of uncertain tax positions   (1.3)   (0.7)
Decreases due to expiration of statutes of limitations   (0.4) (0.9) (1.3)
Ending Balance 9.0 9.0 6.3 7.0
Recognized interest and penalties   0.8   (2.4)
Accrued interest and penalties 1.9 1.9 1.0  
Impact of effective tax rate recognized 8.3 8.3    
Tax benefit recorded, including interest and penalties       $ 8.5
Maximum        
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]        
Recognized interest and penalties     $ 0.2  
Current unrecognized tax benefits that may be realized within the next 12 months $ 0.1 $ 0.1    
v3.19.3.a.u2
Commitments and Contingencies (Details)
item in Millions, $ in Millions
Dec. 31, 2019
USD ($)
item
Dec. 31, 2018
USD ($)
Commitments and Contingencies Disclosure    
Accrued obligations for environmental remediation and restoration costs | $ $ 0.0 $ 0.0
Environmental claims asserted | item 0  
v3.19.3.a.u2
Commitments and Contingencies - Purchase Commitments (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]  
2020 $ 1,038.8
2021 90.5
2022 67.0
Total $ 1,196.3
Maximum  
Loss Contingencies [Line Items]  
Purchase commitment period 3 years
Minimum  
Loss Contingencies [Line Items]  
Purchase commitment period 1 year
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits (Detail) - Other Postretirement Plans
12 Months Ended
Dec. 31, 2019
age
Defined Benefit Plan Disclosure [Line Items]  
Insurance coverage age limit 65
Years of service 10 years
Minimum  
Defined Benefit Plan Disclosure [Line Items]  
Insurance coverage age limit 50
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Assumptions (Details)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate for benefit obligation 1.03% 1.86% 1.79%
Pension Plan Obligations, Rate of increase in future compensation levels 2.81% 2.80% 2.81%
Net Periodic Benefit Costs, Discount rate 1.86% 1.80% 1.65%
Discount rate for service cost 1.79% 1.72% 1.64%
Discount rate for interest cost 1.59% 1.53% 1.42%
Net Periodic Benefit Costs, Rate of increase in future compensation levels 2.80% 2.83% 2.61%
Net Periodic Benefit Costs, Expected long-term rate of return on plan assets 1.57% 1.54% 1.44%
Other Postretirement Plans      
Defined Benefit Plan Disclosure [Line Items]      
Discount rate for benefit obligation 3.48% 4.38% 3.68%
Other Postretirement Benefit Obligations, Initial health care cost trend rate 6.70% 6.70% 6.70%
Other Postretirement Benefit Obligations, Ultimate health care cost trend rate 5.00% 5.00% 5.00%
Other Postretirement Benefit Obligations, Year ultimate trend rate to be reached 2025 2024 2023
Net Periodic Benefit Costs, Discount rate 4.38% 3.68% 4.16%
Discount rate for service cost 4.42% 3.70% 4.18%
Discount rate for interest cost 4.14% 3.46% 3.81%
Net Periodic Benefit Costs, Initial health care cost trend rate 6.70% 6.70% 6.70%
Net Periodic Benefit Costs, Ultimate health care cost trend rate 5.00% 5.00% 5.00%
Net Periodic Benefit Costs, Year ultimate trend rate to be reached 2024 2023 2022
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Net Periodic Benefit Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Net periodic benefit cost      
Net settlement loss $ 0.8 $ 0.6 $ (21.6)
Defined benefit curtailment gain     21.6
Interest cost, Statements of Operations location us-gaap:OtherNonoperatingIncomeExpense    
Expected return, Statements of Operations location us-gaap:OtherNonoperatingIncomeExpense    
Amortization of prior service credit, Statements of Operations location us-gaap:OtherNonoperatingIncomeExpense    
Amortization of gain (loss), Statements of Operations location us-gaap:OtherNonoperatingIncomeExpense    
Net settlement and curtailment loss, Statements of Operations location us-gaap:OtherNonoperatingIncomeExpense    
Defined Benefit Pension Plans      
Net periodic benefit cost      
Service cost $ 13.1 12.3 20.5
Interest cost 5.1 4.9 4.9
Expected return on plan assets (2.2) (2.1) (1.7)
Amortization of prior service cost (credit) (1.1) (1.1) (2.0)
Amortization of net (gain) loss 3.3 4.1 5.6
Net settlement loss 0.8 0.6 (21.9)
Net periodic benefit cost 19.0 18.7 5.4
Amounts recognized in other comprehensive income (loss)      
Net loss (gain) 27.9 (0.6) (42.6)
Amortization of prior service (cost) credit 1.1 1.1 2.0
Amortization of net gain (loss) (3.3) (4.1) (5.6)
Settlement and curtailment gain (0.8) (0.6) 21.9
Prior service credit   (0.5)  
Total recognized in other comprehensive income (loss) 24.9 (4.7) (24.3)
Net periodic benefit cost 19.0 18.7 5.4
Total recognized in net periodic benefit cost and other comprehensive income (loss) 43.9 14.0 (18.9)
Other Postretirement Plans      
Net periodic benefit cost      
Service cost 0.1 0.2 0.2
Interest cost 0.2 0.2 0.3
Amortization of prior service cost (credit)   0.1 0.1
Amortization of net (gain) loss (0.2)   (0.1)
Net periodic benefit cost 0.1 0.5 0.5
Amounts recognized in other comprehensive income (loss)      
Net loss (gain) 0.1 (1.3) (0.1)
Amortization of prior service (cost) credit   (0.1) (0.1)
Amortization of net gain (loss) 0.2   0.1
Prior service credit   (0.4)  
Total recognized in other comprehensive income (loss) 0.3 (1.8) (0.1)
Net periodic benefit cost 0.1 0.5 0.5
Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 0.4 $ (1.3) $ 0.4
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Changes in Benefit Obligations, Fair Value, Funded Status (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Pension Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period $ 321.9 $ 321.7  
Service cost 13.1 12.3 $ 20.5
Interest cost 5.1 4.9 4.9
Plan participants' contributions 1.9 1.8  
Actuarial changes in assumptions and experience 45.7 (0.4)  
Benefits paid (refunded) 0.1 (0.7)  
Benefit payments by employer (2.3) (2.3)  
Acquisitions 44.5    
Plan amendments   (0.5)  
Curtailments (3.8)    
Settlements (7.2) (3.8)  
Other (0.1) 1.6  
Currency impact (2.7) (12.7)  
Benefit obligation at end of period 416.2 321.9 321.7
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Fair value of plan assets at beginning of period 138.5 140.1  
Actual return on plan assets 16.3 2.4  
Settlements (7.2) (3.8)  
Employer contributions 5.7 5.9  
Plan participants' contributions 1.9 1.8  
Benefits paid (2.2) (3.0)  
Currency impact (1.2) (4.9)  
Fair value of plan assets at end of period 151.8 138.5 140.1
Funded status at end of period (264.4) (183.4)  
Other Postretirement Plans      
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Benefit obligation at beginning of period 5.8 7.1  
Service cost 0.1 0.2 0.2
Interest cost 0.2 0.2 0.3
Actuarial changes in assumptions and experience 0.1 (1.3)  
Plan amendments   (0.4)  
Benefit obligation at end of period 6.2 5.8 $ 7.1
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]      
Funded status at end of period $ (6.2) $ (5.8)  
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Net Amounts Recognized (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Pension Plans    
Net amounts recognized in the balance sheets at December 31    
Current liabilities $ (5.8) $ (2.7)
Noncurrent liabilities (258.6) (180.7)
Cash contributions and benefit payments to unfunded plans 5.7 5.9
Net amounts recognized in the balance sheet (264.4) (183.4)
Accumulated benefit obligation at the end of the period 380.6 293.7
Net prior service cost (credit) (3.7) (4.8)
Net loss (gain) 84.3 60.5
Total at end of period 80.6 55.7
Other Postretirement Plans    
Net amounts recognized in the balance sheets at December 31    
Current liabilities (0.1)  
Noncurrent liabilities (6.1) (5.8)
Net amounts recognized in the balance sheet (6.2) (5.8)
Accumulated benefit obligation at the end of the period 6.2 5.8
Net prior service cost (credit) (0.1) (0.2)
Net loss (gain) (1.9) (2.1)
Total at end of period $ (2.0) $ (2.3)
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Future Benefits, Contribution (Detail)
$ in Millions
Dec. 31, 2019
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
2018 $ 17.7
2019 5.9
2020 7.2
2021 10.1
2022 8.9
2023 through 2027 63.4
Total 113.2
Estimated contributions to defined benefit pension plans 7.8
Defined Benefit Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
2018 17.6
2019 5.8
2020 7.1
2021 9.9
2022 8.6
2023 through 2027 61.3
Total 110.3
Other Postretirement Plans  
Defined Benefit Plan Disclosure [Line Items]  
2018 0.1
2019 0.1
2020 0.1
2021 0.2
2022 0.3
2023 through 2027 2.1
Total $ 2.9
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Benefit Obligations in Excess of Fair Value (Detail) - Defined Benefit Pension Plans - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Projected Benefit Obligation Exceeds the Fair Value of Plan Assets    
Projected benefit obligations $ 319.9 $ 239.7
Fair value of plan assets 55.5 56.3
Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets    
Accumulated benefit obligations 289.1 210.8
Fair value of plan assets $ 55.5 $ 50.3
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Supplemental (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Supplemental Employee Retirement Plan      
Estimated future benefit payments $ 113.2    
Supplemental Employee Retirement Plan [Member]      
Supplemental Employee Retirement Plan      
Benefit obligations 0.0 $ 15.5  
Amounts of net loss included in AOCI 0.0 0.3  
Net benefit costs recognized 0.3 0.8 $ 1.1
Amortization from AOCI into net periodic benefit costs $ 0.3 $ 0.5  
v3.19.3.a.u2
Pension Plans and Other Postretirement Benefits - Defined Contribution and Multiemployer Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]      
Contribution made to defined contribution plans $ 11.1 $ 7.9 $ 8.4
Trinseo Netherlands Multiemployer Plan [Member]      
Defined Contribution Plan Disclosure [Line Items]      
Contribution made to defined contribution plans   3.8  
Benefit expense 4.3 $ 4.5  
Multiemployer Plan, Contributions by Employer $ 4.2    
v3.19.3.a.u2
Share-Based Compensation - Summary of Expense (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation expense $ 13.5 $ 15.8 $ 13.8
Restricted Share Units      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation expense 7.5 8.8 8.6
Unrecognized compensation cost $ 8.6    
Weighted-average period of recognition 1 year 9 months 18 days    
Option Awards      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation expense $ 3.1 4.4 4.1
Unrecognized compensation cost, options $ 1.4    
Weighted-average period of recognition 1 year 3 months 18 days    
Performance Share Units      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation expense $ 2.9 $ 2.6 $ 1.1
Unrecognized compensation cost $ 3.3    
Weighted-average period of recognition 2 years    
v3.19.3.a.u2
Share-Based Compensation - RSUs (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Nov. 30, 2016
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jun. 19, 2019
2014 Omnibus Incentive Plan [Member]          
Stock-based Compensation          
Number of shares authorized         5,300,000
Restricted Share Units          
Other-than-Options, FV Activity          
Granted, Weighted-Average Grant Date Fair Value per Share   $ 48.63 $ 79.18 $ 70.85  
Total Fair Value of Awards Vested during Period   $ 10.9 $ 7.4 $ 1.3  
Restricted Share Units | 2014 Omnibus Incentive Plan [Member]          
Stock-based Compensation          
Number of shares worth of dividends attributable to each RSU 1        
Other-than-Options, Shares Activity          
Unvested Shares, Beginning Balance   492,149      
Granted, Shares   236,156      
Vested, Shares   (319,580)      
Forfeited, Shares   (94,397)      
Unvested Shares, Ending Balance   314,328 492,149    
Other-than-Options, FV Activity          
Unvested Weighted-Average Grant Date Fair Value per Share, Beginning Balance   $ 48.82      
Granted, Weighted-Average Grant Date Fair Value per Share   48.63      
Vested, Weighted-Average Grant Date Fair Value per Share   33.98      
Forfeited, Weighted-Average Grant Date Fair Value per Share   62.45      
Unvested Weighted-Average Grant Date Fair Value per Share, Ending Balance   $ 59.67 $ 48.82    
v3.19.3.a.u2
Share-Based Compensation - Options and PSUs (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
item
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
Stock-based Compensation      
Number of vesting installments | item 3    
Options Outstanding Roll Forward      
Options, Outstanding, Number, Beginning Balance | shares 934,338    
Granted, Options | shares 237,071    
Exercised, Options | shares (40,263)    
Forfeited, Options | shares (27,220)    
Expired, Options | shares (6,214)    
Options, Outstanding, Number, Ending Balance | shares 1,097,712 934,338  
Options, Weighted Average Exercise Price Rollforward      
Options, Weighted Average Exercise Price, Beginning Balance $ 46.72    
Options granted, Weighted average exercise price 51.00    
Options exercised, Weighted average exercise price 23.82    
Options forfeited, Weighted average exercise price 60.19    
Options expired, Weighted average exercise price 58.64    
Options, Weighted Average Exercise Price, Ending Balance $ 48.08 $ 46.72  
Options, Additional Disclosures      
Options exercisable | shares 688,131    
Options expected to vest | shares 409,581    
Options exercisable, Weighted average exercise price $ 38.91    
Options expected to vest, Weighted average exercise price $ 63.49    
Options outstanding, Weighted average contractual term 6 years 1 month 6 days    
Options exercisable, Weighted average contractual term 5 years 3 months 18 days    
Options expected to vest, Weighted average contractual term 7 years 6 months    
Options outstanding, intrinsic value | $ $ 6.2    
Options exercisable, intrinsic value | $ 6.2    
Proceeds from exercise of option awards | $ 0.9 $ 2.8 $ 9.3
Options exercised, intrinsic value | $ $ 0.7 $ 6.7 $ 21.4
Fair Value Assumptions      
Expected term (in years)     3 years
Expected volatility     39.00%
Risk-free interest rate     1.56%
Share Price     $ 71.45
Options granted, Weighted average grant date fair value $ 15.40 $ 22.29 $ 20.61
Option Awards      
Stock-based Compensation      
Exercise term (in years) 9 years    
Options, Additional Disclosures      
Unrecognized compensation cost, options | $ $ 1.4    
Fair Value Assumptions      
Expected term (in years) 5 years 6 months 5 years 6 months 5 years 6 months
Expected volatility 36.00% 32.00% 35.00%
Risk-free interest rate 2.53% 2.71% 2.19%
Dividend yield 2.00% 2.00% 2.00%
Performance Share Units      
Fair Value Assumptions      
Expected term (in years) 3 years 3 years  
Expected volatility 36.40% 35.03%  
Risk-free interest rate 2.58% 2.55%  
Share Price $ 50.95 $ 79.42  
Other-than-Options, Shares Activity      
Unvested Shares, Beginning Balance | shares 116,362    
Granted, Shares | shares 117,053    
Forfeited, Shares | shares (97,158)    
Unvested Shares, Ending Balance | shares 136,257 116,362  
Other-than-Options, FV Activity      
Unvested Weighted-Average Grant Date Fair Value per Share, Beginning Balance $ 82.10    
Granted, Weighted-Average Grant Date Fair Value per Share 54.01    
Forfeited, Weighted-Average Grant Date Fair Value per Share 66.93    
Unvested Weighted-Average Grant Date Fair Value per Share, Ending Balance $ 68.78 $ 82.10  
Total grant date fair value | $ $ 6.3 $ 6.1 $ 3.9
Performance Share Units | Minimum      
Fair Value Assumptions      
Vesting percentage 0.00%    
Performance Share Units | Maximum      
Fair Value Assumptions      
Vesting percentage 200.00%    
v3.19.3.a.u2
Related Party Transactions (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Related Party Transactions        
Expenses from transactions $ 198.6 $ 258.4 $ 232.4  
Related party sales 0.0 0.0 3.6  
Related party purchases $ 81.9 91.5 78.8  
Shares sold by former parent       37,269,567
Second Amended and Restated Master Outsourcing Services Agreement ("SAR MOSA") [Member]        
Related Party Transactions        
Related party agreement renewal period (in years) 2 years      
Notice period for nonrenewal (in months) 6 months      
Loss on termination of agreement $ 68.1 26.1    
Contractual obligation 5.0      
Expenses from transactions $ 34.4 47.6 49.1  
Second Amended and Restated Site Services Agreements ("SAR SSAs") [Member]        
Related Party Transactions        
Notice period for nonrenewal (in months) 12 months      
Related party agreement term (in years) 25 years      
Notice period for nonrenewal, nonterminable (in months) 15 months      
Expenses from transactions $ 164.2 210.8 183.3  
Cost of Sales        
Related Party Transactions        
Expenses from transactions 187.0 246.0 219.0  
Cost of Sales | Second Amended and Restated Master Outsourcing Services Agreement ("SAR MOSA") [Member]        
Related Party Transactions        
Expenses from transactions 26.2 39.1 39.8  
Cost of Sales | Second Amended and Restated Site Services Agreements ("SAR SSAs") [Member]        
Related Party Transactions        
Expenses from transactions 160.8 206.9 179.2  
Selling, General and Administrative Expenses        
Related Party Transactions        
Expenses from transactions 11.6 12.4 13.4  
Selling, General and Administrative Expenses | Second Amended and Restated Master Outsourcing Services Agreement ("SAR MOSA") [Member]        
Related Party Transactions        
Expenses from transactions 8.2 8.5 9.3  
Selling, General and Administrative Expenses | Second Amended and Restated Site Services Agreements ("SAR SSAs") [Member]        
Related Party Transactions        
Expenses from transactions 3.4 3.9 4.1  
Dow [Member]        
Related Party Transactions        
Related party sales 80.0 248.4 235.2  
Related party purchases $ 985.9 $ 1,410.6 $ 1,357.2  
Minimum | Second Amended and Restated Site Services Agreements ("SAR SSAs") [Member]        
Related Party Transactions        
Contractual commitments period (in months) 45 months      
Maximum | Second Amended and Restated Site Services Agreements ("SAR SSAs") [Member]        
Related Party Transactions        
Contractual commitments period (in months) 60 months      
v3.19.3.a.u2
Segments - Reconciliation of Segment Reporting to Consolidated (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
division
Dec. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jan. 31, 2017
Segment Reporting Information [Line Items]                            
Number of operating segments                 6   6      
Sales to external customers $ 888.8 $ 922.1 $ 951.8 $ 1,013.1 $ 1,065.0 $ 1,199.7 $ 1,236.6 $ 1,121.6   $ 3,775.8   $ 4,622.8 $ 4,448.1  
Equity in earnings of unconsolidated affiliates 20.8 $ 25.7 $ 40.3 $ 32.2 30.8 $ 34.5 $ 33.2 $ 45.5   119.0   144.1 123.7  
Adjusted EBITDA                   437.2   661.2 734.3  
Investment in unconsolidated affiliates $ 188.1       179.1       $ 188.1 188.1 $ 188.1 179.1 152.5  
Depreciation and amortization                   136.0   130.2 110.6  
Capital expenditures                   $ 110.1   121.4 147.4  
Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         4,448.1  
Americas Styrenics                            
Segment Reporting Information [Line Items]                            
Percentage of ownership underlying net assets 50.00%               50.00% 50.00% 50.00%      
Investment in unconsolidated affiliates $ 188.1       179.1       $ 188.1 $ 188.1 $ 188.1 179.1    
Sumika Styron Polycarbonate                            
Segment Reporting Information [Line Items]                            
Percentage of ownership underlying net assets                           50.00%
Corporate Unallocated [Member]                            
Segment Reporting Information [Line Items]                            
Depreciation and amortization                   13.3   9.0 8.9  
Capital expenditures                   23.8   5.7    
Latex Binders Segment                            
Segment Reporting Information [Line Items]                            
Sales to external customers                   902.8   1,069.0    
Latex Binders Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         1,097.1  
Latex Binders Segment | Operating Segments [Member]                            
Segment Reporting Information [Line Items]                            
Adjusted EBITDA                   80.8   110.4 138.5  
Depreciation and amortization                   25.8   24.9 23.6  
Capital expenditures                   21.4   17.2    
Synthetic Rubber Segment                            
Segment Reporting Information [Line Items]                            
Sales to external customers                   441.3   572.5    
Synthetic Rubber Segment | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         582.8  
Synthetic Rubber Segment | Operating Segments [Member]                            
Segment Reporting Information [Line Items]                            
Adjusted EBITDA                   40.7   77.0 83.3  
Depreciation and amortization                   44.4   43.9 35.7  
Capital expenditures                   26.1   26.8    
Performance Plastics Segment [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                   1,366.2   1,577.6    
Performance Plastics Segment [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         1,419.1  
Performance Plastics Segment [Member] | Operating Segments [Member]                            
Segment Reporting Information [Line Items]                            
Equity in earnings of unconsolidated affiliates                         0.8  
Adjusted EBITDA                   135.1   188.9 230.9  
Depreciation and amortization                   28.8   28.7 20.0  
Capital expenditures                   26.6   55.1    
Polystyrene [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                   809.4   1,017.1    
Polystyrene [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         941.4  
Basic Plastics Segment [Member]                            
Segment Reporting Information [Line Items]                            
Adjusted EBITDA                   54.6   33.7 48.2  
Depreciation and amortization                   10.9   11.6 9.8  
Capital expenditures                   4.1   3.4    
Feedstocks [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                   256.1   386.6    
Adjusted EBITDA                   7.0   107.1 110.5  
Depreciation and amortization                   12.8   12.1 12.6  
Capital expenditures                   8.1   13.2    
Feedstocks [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member]                            
Segment Reporting Information [Line Items]                            
Sales to external customers                         407.7  
Americas Styrenics [Member] | Operating Segments [Member]                            
Segment Reporting Information [Line Items]                            
Equity in earnings of unconsolidated affiliates                   119.0   144.1 122.9  
Adjusted EBITDA                   119.0   144.1 122.9  
Investment in unconsolidated affiliates $ 188.1       $ 179.1       $ 188.1 $ 188.1 $ 188.1 $ 179.1 $ 152.5  
v3.19.3.a.u2
Segments - Recon. of Net Income to Segment Adjusted EBITDA (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]                      
Income before income taxes $ (17.5) $ 31.8 $ 43.7 $ 46.6 $ 6.4 $ 93.9 $ 118.7 $ 145.2 $ 104.6 $ 364.3 $ 411.1
Interest expense, net                 (39.3) (46.4) (70.1)
Depreciation and amortization                 136.0 130.2 110.6
Corporate Unallocated                 85.4 88.0 91.8
Adjusted EBITDA addbacks                 71.9 32.3 50.7
Adjusted EBITDA                 437.2 661.2 734.3
Loss on extinguishment of long-term debt                   0.2 65.3
Net (gain) loss on disposition of businesses and assets                 (0.7) (1.0) (9.7)
Restructuring and other charges                 18.1 8.2 6.0
Acquisition transactions and integration net costs (benefit)                 (0.9) 0.6 4.7
Asset impairment charges or write-offs                   1.5 4.3
Other items                 55.4 22.8 (19.9)
Income from settlement of value added tax liabilities $ 32.7 $ 7.4                  
Fees for secondary offering                 198.6 258.4 232.4
Corporate Unallocated [Member]                      
Segment Reporting Information [Line Items]                      
Interest expense, net                 (39.3) (46.4) (70.1)
Depreciation and amortization                 $ 13.3 $ 9.0 $ 8.9
v3.19.3.a.u2
Segments - Sales and Long-lived Assets Attributed to Geographical Areas (Detail)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
country
facility
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
item
country
site
facility
Plant
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Number of manufacturing plants | Plant                 32    
Number of production units | item                 77    
Number of sites | site                 24    
Number of countries | country 12               12    
Number of research and development facilities | facility 10               10    
Sales to external customers $ 888.8 $ 922.1 $ 951.8 $ 1,013.1 $ 1,065.0 $ 1,199.7 $ 1,236.6 $ 1,121.6 $ 3,775.8 $ 4,622.8 $ 4,448.1
Long-lived assets 625.8       592.1       625.8 592.1 627.0
Right of use assets - operating 71.4               71.4    
United States [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                 580.3 627.3  
Long-lived assets 44.9       38.6       44.9 38.6 43.2
Right of use assets - operating 10.4               10.4    
Europe [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                 2,163.3 2,782.6  
Long-lived assets 457.7       424.8       457.7 424.8 449.3
Right of use assets - operating 55.1               55.1    
Asia-Pacific [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                 934.7 1,104.3  
Long-lived assets 123.2       $ 128.7       123.2 128.7 134.4
Right of use assets - operating $ 5.9               5.9    
Rest of World [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                 $ 97.5 $ 108.6  
Long-lived assets                     0.1
Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                     4,448.1
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | United States [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                     602.7
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Europe [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                     2,688.9
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Asia-Pacific [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                     1,051.4
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Rest of World [Member]                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Sales to external customers                     $ 105.1
v3.19.3.a.u2
Segments - Concentration of Risk (Details) - Geographic Concentration Risk [Member]
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
China [Member] | Sales Revenue, Net [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 6.00% 6.00% 7.00%
China [Member] | Long-lived Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 12.00% 13.00% 13.00%
Germany [Member] | Sales Revenue, Net [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 9.00% 9.00% 10.00%
Germany [Member] | Long-lived Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 46.00% 43.00% 45.00%
Germany [Member] | Right Of Use Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 7.00%    
Hong Kong [Member] | Sales Revenue, Net [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 13.00% 13.00% 13.00%
Netherlands [Member] | Long-lived Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 17.00% 19.00% 15.00%
Netherlands [Member] | Right Of Use Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 61.00%    
United States [Member] | Right Of Use Assets [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 15.00%    
v3.19.3.a.u2
Restructuring (Details) - USD ($)
$ in Millions
1 Months Ended 3 Months Ended 12 Months Ended
Nov. 30, 2019
Mar. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         $ 18.6 $ 9.3 $ 8.0  
Restructuring Reserve [Roll Forward]                
Accrued charges/Balance at beginning of period   $ 17.9     6.7 2.0    
Expenses     $ 17.8   18.2 7.8    
Payments/Deductions         (7.0) (3.1)    
Accrued charges/Balance at end of period     17.9 $ 6.7 17.9 6.7 2.0  
Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         17.8      
Cumulative life-to-date charges     17.8   17.8      
Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Expected restructuring charges     0.7   0.7      
Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Land held for sale     11.8 12.0 11.8 12.0   $ 12.5
Deferred taxes on land held for sale     2.8 2.9 2.8 2.9    
Prepayment received on sale of property           1.3    
Livorno Plant Restructuring | Subsequent Event [Member]                
Restructuring Cost and Reserve [Line Items]                
Gain on sale of land   1.0            
Other Restructurings                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges             1.2  
Asset Impairment And Accelerated Depreciation [Member] | Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         0.4      
Cumulative life-to-date charges     0.4   0.4      
Accelerated Depreciation | Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges     0.4          
Expected restructuring charges     2.4   2.4      
Employee Termination Benefit Charges                
Restructuring Reserve [Roll Forward]                
Accrued charges/Balance at beginning of period   17.2     6.4 1.4    
Expenses         16.7 6.0    
Payments/Deductions         (5.9) (1.0)    
Accrued charges/Balance at end of period     17.2 6.4 17.2 6.4 1.4  
Employee Termination Benefit Charges | Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges $ 17.0       17.0      
Cumulative life-to-date charges     17.0   17.0      
Expected restructuring charges     1.5   1.5      
Employee Termination Benefit Charges | Synthetic Rubber Restructuring [Member]                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges       5.5        
Share-Based Compensation Benefit [Member] | Corporate Restructuring Program                
Restructuring Reserve [Roll Forward]                
Deductions (1.1)              
Pension Benefits [Member] | Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Expected restructuring charges     0.5   0.5      
Contract Termination                
Restructuring Reserve [Roll Forward]                
Accrued charges/Balance at beginning of period   $ 0.7     0.3 0.6    
Expenses         0.4 (0.3)    
Accrued charges/Balance at end of period     0.7 $ 0.3 0.7 0.3 0.6  
Contract Termination | Corporate Restructuring Program                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges $ 0.4       0.4      
Cumulative life-to-date charges     0.4   0.4      
Expected restructuring charges     2.6   2.6      
Decommissioning and Other Charges                
Restructuring Reserve [Roll Forward]                
Expenses         1.1 2.1    
Payments/Deductions         (1.1) (2.1)    
Synthetic Rubber Segment | Synthetic Rubber Restructuring [Member]                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           5.5    
Cumulative life-to-date charges     5.5   5.5      
Synthetic Rubber Segment | Employee Termination Benefit Charges | Synthetic Rubber Restructuring [Member]                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           5.5    
Cumulative life-to-date charges     5.5   5.5      
Performance Plastics Segment [Member] | Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         0.3 1.9 3.3  
Cumulative life-to-date charges     6.1   6.1      
Performance Plastics Segment [Member] | Asset Impairment And Accelerated Depreciation [Member] | Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           1.1 2.0  
Cumulative life-to-date charges     3.1   3.1      
Performance Plastics Segment [Member] | Employee Termination Benefit Charges | Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         (0.3) 0.5 0.5  
Cumulative life-to-date charges     0.7   0.7      
Performance Plastics Segment [Member] | Contract Termination | Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           (0.3) 0.6  
Cumulative life-to-date charges     0.3   0.3      
Performance Plastics Segment [Member] | Decommissioning and Other Charges | Terneuzen Plant Modernization                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         0.6 0.6 0.2  
Cumulative life-to-date charges     2.0   2.0      
Latex Binders Segment | Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         0.5 1.1 3.1  
Cumulative life-to-date charges     24.6   24.6      
Latex Binders Segment | Allyn's Point Plant Shutdown [Member]                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           0.8 0.4  
Cumulative life-to-date charges     11.0   11.0      
Latex Binders Segment | Asset Impairment And Accelerated Depreciation [Member] | Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           0.4    
Cumulative life-to-date charges     14.7   14.7      
Latex Binders Segment | Asset Impairment And Accelerated Depreciation [Member] | Allyn's Point Plant Shutdown [Member]                
Restructuring Cost and Reserve [Line Items]                
Cumulative life-to-date charges     7.3   7.3      
Latex Binders Segment | Employee Termination Benefit Charges | Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges             0.8  
Cumulative life-to-date charges     5.4   5.4      
Latex Binders Segment | Employee Termination Benefit Charges | Allyn's Point Plant Shutdown [Member]                
Restructuring Cost and Reserve [Line Items]                
Cumulative life-to-date charges     0.8   0.8      
Latex Binders Segment | Contract Termination | Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Cumulative life-to-date charges     0.3   0.3      
Latex Binders Segment | Decommissioning and Other Charges | Livorno Plant Restructuring                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges         0.5 0.7 2.3  
Cumulative life-to-date charges     4.2   4.2      
Latex Binders Segment | Decommissioning and Other Charges | Allyn's Point Plant Shutdown [Member]                
Restructuring Cost and Reserve [Line Items]                
Restructuring Charges           $ 0.8 $ 0.4  
Cumulative life-to-date charges     $ 2.9   $ 2.9      
v3.19.3.a.u2
Accumulated Other Comprehensive Income (Loss) - Components (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period $ 768.7 $ 674.8 $ 447.7
Balance at end of period 668.9 768.7 674.8
Cumulative Translation Adjustments      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period (111.8) (94.5) (119.0)
Other comprehensive income (loss) 5.1 (17.3) 24.5
Balance at end of period (106.7) (111.8) (94.5)
Pension and Other Postretirement Benefit Plans, Net      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period (39.4) (45.0) (63.5)
Other comprehensive income (loss) (19.0) 2.5 31.8
Amounts reclassified from AOCI to net income 2.1 3.1 13.3
Balance at end of period (56.3) (39.4) (45.0)
Accumulated Gain Loss Net Cash Flow Hedge Parent      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period 8.9    
Other comprehensive income (loss) (0.7) 9.3  
Amounts reclassified from AOCI to net income (7.6) 5.7  
Balance at end of period 0.6 8.9  
Accumulated Gain Loss from Cash Flow Hedges, pre-adoption      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period   (6.1) 12.3
Other comprehensive income (loss)     (20.7)
Amounts reclassified from AOCI to net income     (2.3)
Balance at end of period     (6.1)
Accumulated Other Comprehensive Income (Loss)      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Balance at beginning of period (142.3) (145.6) (170.2)
Other comprehensive income (loss) (14.6) (5.5) 35.6
Amounts reclassified from AOCI to net income (5.5) 8.8 11.0
Balance at end of period $ (162.4) $ (142.3) $ (145.6)
v3.19.3.a.u2
Accumulated Other Comprehensive Income (Loss) - Reclassification (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Cost of sales                 $ 3,446.9 $ 4,094.0 $ 3,807.8
Interest expense, net                 39.3 46.4 70.1
Net settlement loss                 0.8 0.6 (21.6)
Income before income taxes $ 17.5 $ (31.8) $ (43.7) $ (46.6) $ (6.4) $ (93.9) $ (118.7) $ (145.2) (104.6) (364.3) (411.1)
Provision for (benefit from) income taxes                 12.6 71.8 82.8
Net income $ (5.7) $ (22.5) $ (28.0) $ (35.8) $ 0.9 $ (74.7) $ (98.3) $ (120.3) (92.0) (292.5) (328.3)
Pension and Other Postretirement Benefit Plans, Net | Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net actuarial loss                 (3.4) (4.6) (6.4)
Income before income taxes                 (3.1) (4.2) 17.4
Provision for (benefit from) income taxes                 1.0 1.1 (4.1)
Net income                 (2.1) (3.1) 13.3
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net settlement loss                 0.8 0.6 (21.9)
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Prior service credit                 1.1 1.0 1.9
Accumulated Gain Loss Net Cash Flow Hedge Parent | Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Cost of sales                 6.7 (6.0)  
Interest expense, net                 0.9 0.3  
Income before income taxes                 7.6 (5.7)  
Net income                 $ 7.6 $ (5.7)  
Accumulated Gain Loss from Cash Flow Hedges, pre-adoption | Reclassification out of Accumulated Other Comprehensive Income [Member]                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Cost of sales                     (2.0)
Interest expense, net                     (0.3)
Income before income taxes                     (2.3)
Net income                     $ (2.3)
v3.19.3.a.u2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Earnings:                      
Net income (loss) $ 5.7 $ 22.5 $ 28.0 $ 35.8 $ (0.9) $ 74.7 $ 98.3 $ 120.3 $ 92.0 $ 292.5 $ 328.3
Shares:                      
Weighted average ordinary shares outstanding                 40.3 42.8 43.8
Dilutive effect of RSUs and option awards                 0.4 0.9 1.2
Diluted weighted average ordinary shares outstanding                 40.7 43.7 45.0
Income (loss) per share:                      
Income per share- basic $ 0.14 $ 0.56 $ 0.69 $ 0.87 $ (0.02) $ 1.75 $ 2.28 $ 2.77 $ 2.28 $ 6.83 $ 7.49
Income per share- diluted $ 0.14 $ 0.56 $ 0.68 $ 0.86 $ (0.02) $ 1.72 $ 2.24 $ 2.71 $ 2.26 $ 6.70 $ 7.30
Anti-dilutive shares excluded                 0.6 0.4 0.2
v3.19.3.a.u2
Leases (Details) - USD ($)
$ in Millions
Jan. 01, 2019
Dec. 31, 2019
Lessee Disclosure [Abstract]    
Lease, Practical Expedients, Package [true false] true  
Lease, Practical Expedient, Lessor Single Lease Component [true false] true  
Lease, Practical Expedient, Land Easement [true false] true  
Assets and Liabilities, Lessee [Abstract]    
Operating Lease, Right-of-Use Asset   $ 71.4
Finance Lease, Right-of-Use Asset   $ 7.9
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]   Property, Plant and Equipment, Net
Operating lease liabilities - current portion   $ 14.1
Operating lease liabilities - noncurrent portion   58.0
Finance lease liabilities - current portion   $ 2.6
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]   Debt Current Excluding Operating Lease Obligations
Finance lease liabilities - noncurrent portion   $ 5.3
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]   Long-term Debt, Excluding Current Maturities
v3.19.3.a.u2
Leases - Costs and SCF (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Lease, Cost [Abstract]  
Finance Lease, Right-of-Use Asset, Amortization $ 0.8
Finance Lease, Interest Expense 0.1
Operating lease cost 18.2
Variable Lease, Cost 0.2
Total lease cost 19.3
Operating Lease, Payments 17.0
Finance Lease, Interest Payment on Liability 0.1
Finance Lease, Principal Payments 0.8
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability 86.2
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability $ 8.8
v3.19.3.a.u2
Leases - Maturities, etc. (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2020 $ 16.1  
2021 10.6  
2022 8.8  
2023 8.4  
2024 6.7  
Thereafter 35.3  
Total payments due 85.9  
Less Imputed interest (13.8)  
Operating lease liability $ 72.1  
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent  
Finance Lease, Liability, Payment, Due [Abstract]    
2020 $ 2.8  
2021 2.8  
2022 2.3  
2023 0.1  
2024 0.1  
Thereafter 0.3  
Total payments due 8.4  
Less Imputed interest (0.5)  
Finance lease liability $ 7.9  
Finance Lease, Liability, Statement of Financial Position [Extensible List] tse:DebtCurrentExcludingOperatingLeaseObligations us-gaap:LongTermDebtNoncurrent  
Contractual Obligation, Fiscal Year Maturity [Abstract]    
Operating Lease, Weighted Average Remaining Lease Term 9 years 2 months 12 days  
Finance Lease, Weighted Average Remaining Lease Term 3 years 9 months 18 days  
Operating Lease, Weighted Average Discount Rate, Percent 4.70%  
Finance Lease, Weighted Average Discount Rate, Percent 3.10%  
Operating leases not yet commenced $ 3.2  
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity, prior to adoption [Abstract]    
2019   $ 17.5
2020   14.4
2021   9.0
2022   10.6
2023   5.4
Thereafter   16.0
Total   $ 72.9
Leases, Operating And Finance, Combined [Member]    
Contractual Obligation, Fiscal Year Maturity [Abstract]    
2020 18.9  
2021 13.4  
2022 11.1  
2023 8.5  
2024 6.8  
Thereafter 35.6  
Contractual Obligation, Total 94.3  
Less imputed interest (14.3)  
Lease liability $ 80.0  
Minimum    
Contractual Obligation, Fiscal Year Maturity [Abstract]    
Future operating lease term 6 months  
Maximum    
Contractual Obligation, Fiscal Year Maturity [Abstract]    
Future operating lease term 5 years  
v3.19.3.a.u2
Selected Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]                      
Net sales $ 888.8 $ 922.1 $ 951.8 $ 1,013.1 $ 1,065.0 $ 1,199.7 $ 1,236.6 $ 1,121.6 $ 3,775.8 $ 4,622.8 $ 4,448.1
Gross profit 60.0 85.2 86.2 97.4 59.3 131.6 162.7 175.2 328.9 528.8 640.3
Equity in earnings of unconsolidated affiliates 20.8 25.7 40.3 32.2 30.8 34.5 33.2 45.5 119.0 144.1 123.7
Operating Income (11.2) 43.3 55.1 60.8 17.7 106.1 134.2 156.3 147.9 414.4 525.0
Income before income taxes (17.5) 31.8 43.7 46.6 6.4 93.9 118.7 145.2 104.6 364.3 411.1
Net income $ 5.7 $ 22.5 $ 28.0 $ 35.8 $ (0.9) $ 74.7 $ 98.3 $ 120.3 $ 92.0 $ 292.5 $ 328.3
Net income per share- basic $ 0.14 $ 0.56 $ 0.69 $ 0.87 $ (0.02) $ 1.75 $ 2.28 $ 2.77 $ 2.28 $ 6.83 $ 7.49
Net income per share- diluted $ 0.14 $ 0.56 $ 0.68 $ 0.86 $ (0.02) $ 1.72 $ 2.24 $ 2.71 $ 2.26 $ 6.70 $ 7.30
Calculated under Revenue Guidance in Effect before Topic 606 [Member]                      
Selected Quarterly Financial Information [Abstract]                      
Net sales                     $ 4,448.1
v3.19.3.a.u2
Selected Quarterly Financial Data - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Selected Quarterly Financial Information [Abstract]          
Increases related to current year tax positions $ 6.2   $ 0.6    
Restructuring charges 17.8   18.2 $ 7.8  
Current Income Tax Expense (Benefit) (24.1)   $ 50.0 $ 66.5 $ 68.0
Income from settlement of value added tax liabilities $ 32.7 $ 7.4      
v3.19.3.a.u2
Schedule II - Financial Statement Schedule Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
SEC Schedule, 12-09, Allowance, Credit Loss [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of the Period $ 6.1 $ 5.6 $ 3.1
Additions, Charged to Cost and Expense (0.7) 0.6 1.5
Deduction from Reserves (0.2) (0.4) (0.1)
Currency Translation Adjustments 0.1 0.3 1.1
Balance at End of the Period 5.3 6.1 5.6
Amounts written off, net of recoveries 0.2 0.4 0.1
Valuation Allowance of Deferred Tax Assets [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of the Period 167.6 149.6 112.6
Additions, Charged to Cost and Expense 50.4 19.5 35.6
Deduction from Reserves   (0.9)  
Currency Translation Adjustments   (0.6) 1.4
Balance at End of the Period $ 218.0 167.6 $ 149.6
Amounts written off, net of recoveries   $ 0.9