ORION ENGINEERED CARBONS S.A., 10-Q filed on 5/6/2021
Quarterly Report
v3.21.1
Cover - shares
 3 Months Ended
Mar. 31, 2021
May 04, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
Document Transition Report false  
Entity Registrant Name ORION ENGINEERED CARBONS S.A.  
Entity Incorporation, State or Country Code N4  
Entity File Number 001-36563  
Entity Tax Identification Number 00-0000000  
Entity Address, Address Line One 4501 Magnolia Cove Drive Suite 106  
Entity Address, City or Town Houston,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 77345  
City Area Code 281  
Local Phone Number 318-2959  
Title of 12(b) Security Common Shares, no par value  
Trading Symbol OEC  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   60,590,526
Entity Central Index Key 0001609804  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
v3.21.1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Net sales $ 360,077 $ 336,007
Cost of sales 257,557 245,815
Gross profit 102,520 90,193
Selling, general and administrative expenses 52,353 44,519
Research and development costs 4,760 4,956
Other expenses, net 2,554 3,175
Income from operations 42,853 37,543
Interest and other financial expense, net 9,959 9,610
Reclassification of actuarial losses from AOCI 1,228 2,398
Pre-tax income before equity in earnings of affiliated companies 31,666 25,534
Income tax expense 8,274 7,635
Equity in earnings of affiliated companies, net of tax 146 133
Net income $ 23,538 $ 18,032
Weighted-average shares outstanding:    
Basic (in shares) 60,648 60,276
Diluted (in shares) 60,812 61,391
Earnings/(loss) per share:    
Basic (in USD per share) $ 0.39 $ 0.30
Diluted (in USD per share) $ 0.39 $ 0.29
v3.21.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement of Comprehensive Income [Abstract]    
Net income $ 23,538 $ 18,032
Other comprehensive income (loss), net of tax    
Foreign currency translation adjustments (5,095) (24,071)
Unrealized net gains/(losses) on hedges of a net investment in a foreign operation 70 36
Unrealized net gains/(losses) on cash flow hedges 1,089 (656)
Gains on defined benefit plans 1,209 1,847
Other comprehensive loss (2,728) (22,844)
Comprehensive income/(loss) $ 20,810 $ (4,811)
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets    
Cash and cash equivalents $ 62,632 $ 64,869
Accounts receivable, net of expected credit losses of $7,955 and $6,632 257,697 234,796
Other current financial assets 2,978 3,630
Inventories, net 157,504 141,461
Income tax receivables 11,415 11,249
Prepaid expenses and other current assets 45,334 44,452
Total current assets 537,560 500,456
Property, plant and equipment, net 605,069 610,530
Right-of-use assets 92,794 85,639
Goodwill 80,721 84,480
Intangible assets, net 42,974 46,772
Investment in equity method affiliates 5,528 5,637
Deferred income tax assets 58,028 52,563
Other financial assets 699 761
Other assets 2,438 2,956
Total non-current assets 888,249 889,337
Total assets 1,425,809 1,389,793
Current liabilities    
Accounts payable 141,529 131,250
Current portion of long term debt and other financial liabilities 107,843 82,618
Current portion of employee benefit plan obligation 948 1,118
Accrued liabilities 39,424 49,176
Income taxes payable 28,228 23,906
Other current liabilities 38,700 36,676
Total current liabilities 356,672 324,745
Long-term debt, net 637,127 655,826
Employee benefit plan obligation 79,930 83,310
Deferred income tax liabilities 44,619 38,770
Other liabilities 104,614 106,131
Total non-current liabilities 866,290 884,036
Commitments and contingencies
Stockholders' equity    
Common stock, Authorized: 65,035,579 and 65,035,579 shares with no par value, Issued - 60,992,259 and 60,729,289 shares with no par value, Outstanding - 60,487,117 and 60,224,147 shares 85,323 85,323
Less 401,733 and 505,142 shares of common treasury stock, at cost (7,345) (8,515)
Additional paid-in capital 68,356 68,502
Retained earnings 107,945 84,407
Accumulated other comprehensive loss (51,432) (48,705)
Total stockholders' equity 202,846 181,013
Total liabilities and stockholders' equity $ 1,425,809 $ 1,389,793
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - shares
Mar. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Common stock, shares authorized (in shares) 65,035,579 65,035,579
Common stock, shares issued (in shares) 60,992,259 60,992,259
Common stock, shares outstanding (in shares) 60,590,526 60,487,117
Treasury stock, cost (in shares) 401,733 505,142
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities:    
Net income $ 23,538 $ 18,032
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:    
Depreciation of property, plant and equipment and amortization of intangible assets and right of use assets 25,627 23,845
Amortization of debt issuance costs 539 501
Share-based incentive compensation 1,060 (1,139)
Deferred tax (benefit)/provision (2,068) (1,865)
Foreign currency transactions 3,641 1,219
Reclassification of actuarial losses from AOCI 1,228 2,398
Other operating non-cash items 204 360
Changes in operating assets and liabilities, net of effects of businesses acquired:    
Trade receivables (30,535) (31,097)
Inventories (19,845) (11,681)
Trade payables 11,383 4,391
Other provisions (7,946) (11,365)
Income tax liabilities 4,206 12,016
Other assets and liabilities (9,226) (711)
Net cash provided by operating activities 1,805 4,905
Cash flows from investing activities:    
Acquisition of intangible assets and property, plant and equipment (27,227) (50,851)
Net cash used in investing activities (27,227) (50,851)
Cash flows from financing activities:    
Repayments of long-term debt (2,072) (2,006)
Cash inflows related to current financial liabilities 35,465 109,813
Cash outflows related to current financial liabilities (7,734) 0
Dividends paid to shareholders 0 (12,045)
Taxes paid for shares issued under net settlement feature (36) (1,202)
Net cash provided by financing activities 25,623 94,560
Increase/(decrease) in cash, cash equivalents and restricted cash 202 48,614
Cash, cash equivalents and restricted cash at the beginning of the period 67,865 68,231
Effect of exchange rate changes on cash (2,572) (6,630)
Cash, cash equivalents and restricted cash at the end of the period 65,495 110,215
Less restricted cash at the end of the period 2,863 2,675
Cash and cash equivalents at the end of the period $ 62,632 $ 107,540
v3.21.1
Consolidated Statements of Changes in Stockholders’ Equity of Orion Engineered Carbons S.A. (Unaudited) - USD ($)
$ in Thousands
Total
Common stock
Treasury shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Beginning balance (in shares) at Dec. 31, 2019   60,224,147        
Beginning balance at Dec. 31, 2019 $ 186,013 $ 85,032 $ (8,515) $ 65,562 $ 78,296 $ (34,362)
Increase (Decrease) in Stockholders' Equity            
Net income 18,032       18,032  
Other comprehensive loss, net of tax (22,844)         (22,844)
Dividends paid - $0.20 per share (12,045)       (12,045)  
Share based compensation (2,632)     (2,632)    
Issuance of stock under equity compensation plans (in shares)   262,970        
Issuance of stock under equity compensation plans 291 $ 291        
Ending balance (in shares) at Mar. 31, 2020   60,487,117        
Ending balance at Mar. 31, 2020 $ 166,815 $ 85,323 (8,515) 62,930 84,283 (57,206)
Beginning balance (in shares) at Dec. 31, 2020 60,487,117 60,487,117        
Beginning balance at Dec. 31, 2020 $ 181,013 $ 85,323 (8,515) 68,502 84,407 (48,705)
Increase (Decrease) in Stockholders' Equity            
Net income 23,538       23,538  
Other comprehensive loss, net of tax (2,728)         (2,728)
Share based compensation 1,024     1,024    
Issuance of stock under equity compensation plans (in shares)   103,409        
Issuance of stock under equity compensation plans $ 0 $ 0 1,170 (1,170)    
Ending balance (in shares) at Mar. 31, 2021 60,590,526 60,590,526        
Ending balance at Mar. 31, 2021 $ 202,846 $ 85,323 $ (7,345) $ 68,356 $ 107,945 $ (51,432)
v3.21.1
Consolidated Statements of Changes in Stockholders’ Equity of Orion Engineered Carbons S.A. (Unaudited) (Parenthetical)
$ in Thousands
 3 Months Ended
Mar. 31, 2020
USD ($)
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends paid (in dollars per share) | $ / shares $ 0.20
Issuance of stock under equity compensation plans | $ $ 291
v3.21.1
Organization, Description of the Business and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Organization, Description of the Business and Summary of Significant Accounting Policies Organization, Description of the Business and Summary of Significant Accounting Policies    
Orion Engineered Carbons S.A.’s unaudited condensed consolidated financial information includes Orion Engineered Carbons S.A. and its subsidiaries (“Orion” or the “Company”). The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for annual financial statements. These financial statements should be read in conjunction with the Consolidated Financial Statements included in our Annual Report in Form 10-K for the fiscal year ended December 31, 2020.
The accompanying unaudited Condensed Consolidated Financial Statements include all adjustments that are necessary for the fair presentation of our results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year.

Summary of Significant Accounting Policies
Adoption of accounting standards
In January 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We adopted this standard on January 1, 2021. The adoption of this standard did not materially impact our Consolidated Financial Statements.
v3.21.1
Recent Accounting Pronouncements Not Yet Adopted
 3 Months Ended
Mar. 31, 2021
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Not Yet Adopted Recent Accounting Pronouncements Not Yet Adopted
Reference Rate Reform (Topic 848)—In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), a new standard. In January 2021, FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refines the scope of ASC 848 and clarifies some of its guidance as part of the Board’s monitoring of global reference rate reform. This guidance permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022.
The Company will adopt this guidance prospectively and will elect certain optional expedients through the end of the hedging relationship. This will enable the Company to update its assessments of effectiveness, probability, and hedged risk in order to continue hedge accounting for the designated hedges that reference a rate expected to be discontinued as a result of the reference rate reform without requiring de-designation of current hedging relationships. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements and it will continue to evaluate the guidance to determine the timing and extent to which it will apply accounting relief provided by the guidance.
v3.21.1
Leases
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The company’s right-of-use assets (“ROU”) assets and lease liabilities related to operating and finance leases reflected in the Consolidated Balance Sheets are as follows:
March 31, 2021December 31, 2020
(In thousands)
ROU Assets
Operating leases $24,863 $25,321 
Finance leases67,931 60,318 
Total$92,794 $85,639 
Lease Liabilities(1)
Operating leases
Current$6,268 $7,215 
Long-term19,395 18,999 
25,664 26,214 
Finance leases
Current3,019 4,862 
Long-term65,346 55,526 
68,365 60,388 
Total$94,028 $86,603 
(1) In the Consolidated Balance Sheets are reflected
v3.21.1
Inventories
 3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories, net of obsolete, unmarketable and slow-moving reserves are as follows:
March 31, 2021December 31, 2020
(In thousands)
Raw materials, consumables and supplies, net$62,850 $57,011 
Work in process184 322 
Finished goods, net94,469 84,128 
Total$157,504 $141,461 
v3.21.1
Accounts Receivable
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
The company had the following accounts receivable as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(In thousands)
Accounts receivable$263,374 $240,590 
Expected credit losses(5,676)(5,794)
Accounts receivable, net of expected credit losses$257,697 $234,796 
v3.21.1
Debt and Other Obligations
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
The Company had the following debt arrangements in place as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(In thousands)
Current
Term loan$8,261 $8,479 
Deferred debt issuance costs - term loan(1,424)(1,500)
Other short-term debt and obligations101,006 75,640 
Current portion of long term debt and other financial liabilities107,843 82,618 
Non-current
Term loan640,289 659,502 
Deferred debt issuance costs - term loan(3,162)(3,676)
Long-term debt, net637,127 655,826 
Total $744,970 $738,444 
Discussion related to Other short-term debt and obligations is as follows:
(a) Revolving credit facility
To fund operating activities and generally safeguard the Company’s liquidity, the Company has entered into a revolving credit facility (“RCF”) of €250 million ($293 million). As of March 31, 2021, the total commitment of $293 million is split between a $94 million RCF tranche and $199 million of bilateral ancillary facilities established directly with several banks under the RCF. As of March 31, 2021, and December 31, 2020, no RCF borrowings, as defined in the Credit Agreement, had been drawn. However, as of March 31, 2021 and December 31, 2020, $83.0 million and $70.3 million, respectively, of drawings under ancillary facilities reduced the overall amount available under the RCF to $210 million and $236.5 million, respectively.
(b) Local bank loans and other short-term borrowings
As of March 31, 2021, the Company had partially drawn its uncommitted local credit line in Korea by $4.4 million and in Brazil by $1.7 million (December 31, 2020: $4.6 million and $0.8 million, respectively).
Repurchase Agreement—On March 3, 2021 we entered in to a repurchase agreement to sell European Emission Allowance (“EUA”) certificates. Under the agreement, we sold 260 thousand EUA certificates for €10.04 million cash to a counterparty. The counterparty has
an obligation to resell, and we have the obligation to purchase, the same or substantially the same EUA certificates at December 22, 2021 for €10.06 million. The difference between the consideration received and the amount of consideration to be paid is recognized as interest expense. At March 31, 2021, the amount outstanding is
v3.21.1
Financial Instruments and Fair Value Measurement
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurement Financial Instruments and Fair Value Measurement
The Company measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is 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. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the following fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole:
•Level 1—Unadjusted quoted market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
•Level 2—Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices such as quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves), and market-corroborated inputs.
•Level 3—Unobservable inputs for the asset or liability.
For financial assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization at the end of each reporting period.
The following table shows the fair value measurement at March 31, 2021 and December 31, 2020. All measurements are based on observable inputs such as interest rates and are classified as Level 2 within the fair value hierarchy:
Fair Value HierarchyMarch 31, 2021December 31, 2020
(In thousands)
Receivables from hedges / derivatives$4 $195 
Prepaid expenses and other current assets Level 24 195 
Liabilities from derivatives$15,044 $23,127 
Other current liabilitiesLevel 22,838 296 
Other liabilities (non-current)Level 212,206 22,831 
Term loanLevel 2$648,550 $667,980 
Local bank loansLevel 2$101,006 $75,640 
See Note L. Accounting for Derivative Instruments and Hedging Activities, included in our Annual Report in Form 10-K for the year ended December 31, 2020, for additional information relating to our derivatives instruments.
v3.21.1
Employee Benefit Plans
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Provisions for pensions are established to cover benefit plans for retirement, disability and surviving dependents’ pensions. The benefit obligations vary depending on the legal, tax and economic circumstances in the various countries in which the Company operates. Generally, the level of benefit depends on the length of service and the remuneration.
Net periodic defined benefit pension benefit costs include the following:
Three Months Ended March 31,
20212020
(In thousands)
Service cost$321 $303 
Interest cost257 295 
Amortization of actuarial loss1,228 2,398 
Net periodic pension cost$1,806 $2,996 
Service costs were recorded within income from operations under selling, general and administrative expenses, interest cost in interest and other financial expense, net.
The actuarial losses associated with the pension obligations recorded in prior years in accumulated other comprehensive income exceeding 10% of the defined benefit obligation are recorded ratably over the current year through profit and loss separately from income from operations and amounted to $1.2 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively.
v3.21.1
Restructuring Expenses
 3 Months Ended
Mar. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Expenses Restructuring Expenses
During 2016, the Company ceased operations at its plant in Ambes, France as part of the restructuring of its Rubber business segment. Details of restructuring activities and the related reserves for this facility were as follows:
Personnel
expenses		Demolition and
Removal costs		Ground
remediation
costs		OtherTotal
(In thousands)
Provision at January 1, 2021$3,559 $229 $4,251 $— $8,039 
Charges(322)— — — (322)
Cost charged against liabilities (assets)— — — — — 
Cash paid(43)— — — (43)
Foreign currency translation adjustment(153)(10)(189)— (352)
Provision at March 31, 2021$3,041 $219 $4,062 $— $7,321 
Provision at January 1, 2020$3,400 $561 $488 $317 $4,765 
Charges— — — — — 
Cost charged against liabilities (assets)— — — — — 
Cash paid(514)(402)(252)(263)(1,432)
Foreign currency translation adjustment(81)(11)(14)(6)(113)
Provision at March 31, 2020$2,805 $147 $221 $48 $3,221 
v3.21.1
Accumulated Other Comprehensive Income/(Loss)
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income/(Loss) Accumulated Other Comprehensive Income/(Loss)
Comprehensive income (loss) combines net income (loss) and other comprehensive income items, which are reported as components of stockholders’ equity in the accompanying Consolidated Balance Sheets.
Changes in each component of Accumulated other comprehensive income (loss) (“AOCI”), net of tax, are as follows for the three months ended March 31, 2021 and 2020.
Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2021$(26,543)$(13,485)$(8,676)$(48,705)
Other comprehensive loss before reclassifications(4,693)803 — (3,890)
Income tax effects before reclassifications(402)(276)— (679)
Amounts reclassified from AOCI— — 1,228 1,228 
Income tax effects on reclassifications— — (394)(394)
Currency translation AOCI— 632 375 1,007 
Balance at March 31, 2021$(31,638)$(12,327)$(7,467)$(51,432)

Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2020$(12,281)$(10,891)$(11,189)$(34,362)
Other comprehensive income/(loss) before reclassifications(22,735)(1,241)— (23,976)
Income tax effects before reclassifications(1,336)426 — (910)
Amounts reclassified from AOCI— — 2,398 2,398 
Income tax effects on reclassifications— — (776)(776)
Currency translation AOCI— 195 225 420 
Balance at March 31, 2020$(36,353)$(11,511)$(9,342)$(57,206)
The amounts reclassified out of AOCI and into the Condensed Consolidated Statement of Operations for the three months ended March 31, 2021 and 2020 are as follows:
Affected Line Item in the Condensed Consolidated
Statements of Operations		Three Months Ended March 31,
20212020
(In thousands)
Amortization of actuarial lossesReclassification of actuarial losses from AOCI$1,228 $2,398 
Total before tax1,228 2,398 
Tax impact(394)(776)
Total after tax$834 $1,623 
The amounts recorded in prior years in AOCI exceeding 10% of the defined benefit obligation are recorded ratably as reclassification of actuarial losses over the current year through profit and loss separately from income from operations and amounted to $1.2 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively.
v3.21.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per ShareBasic earnings per share (“EPS”) is computed by dividing net income attributable to Orion by the weighted average number of common stock outstanding during the period. Diluted EPS equals net income attributable to Orion divided by the weighted average number of common stock outstanding during the period, adjusted for the dilutive effect of our stock–based and other equity compensation awards.
The following table reflects the income and share data used in the basic and diluted EPS computations:
Three Months Ended March 31,
20212020
Net income for the period - attributable to ordinary equity holders of the parent (in thousands)$23,538 $18,032 
Weighted average number of ordinary shares (in thousands of shares)60,648 60,276 
Basic EPS$0.39 $0.30 
Dilutive effect of share based payments (in thousands of shares)164 1,115 
Weighted average number of diluted ordinary shares (in thousands of shares)60,812 61,391 
Diluted EPS$0.39 $0.29 
v3.21.1
Income Taxes
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company records its tax provision or benefit on an interim basis using an estimated annual effective tax rate. This rate is applied to the current period ordinary income to determine the income tax provision or benefit allocated to the interim period. Losses from jurisdictions for which no benefit can be recognized, and the income tax effects of unusual and infrequent items are excluded from the estimated annual effective tax rate and are recognized in the impacted interim period as discrete items. Valuation allowances are provided against the future tax benefits that arise from the losses in jurisdictions for which no benefit can be recognized. The estimated annual effective tax rate may be significantly impacted by nondeductible expenses and the Company’s projected earnings mix by tax jurisdiction. Adjustments to the estimated annual effective income tax rate are recognized in the period when such estimates are revised.
Income tax expense for the three months ended March 31, 2021 amounted to $8.3 million compared to $7.6 million for the three months ended March 31, 2020, reflecting the income during this current period.
Our effective income tax rate for the three months ended March 31, 2021, was 26.0%, compared with 29.8% for the corresponding period of 2020. The decrease in our effective tax rate was primarily attributable to the positive effects of discrete tax items from a deferred tax gain of $0.7 million due to the reassessment of recoverability of deferred tax assets in Brazil and the U.S.
Our effective income tax rate for the three months ended March 31, 2020 was 29.8%, compared with 33.4% for the corresponding period of 2019. The decrease in our effective tax rate was primarily attributable to the discrete tax gain of $0.7 million due to the refund of prior year taxes in connection with the land sale in South Korea during 2018, offset by the unfavorable deferred tax expense of $0.8 million due to the revaluation of the realizability of deferred tax assets and the earnings mix by geography and tax jurisdiction.
The effective income tax rate for the three months ended March 31, 2021 varied from the German overall tax rate of 32.0%, due to the Company’s reassessment of the recoverability of deferred tax assets and its projected earnings mix by geography and tax jurisdiction.
The effective income tax rate of 29.8% for the three months ended March 31, 2020 varied from the German overall tax rate of 32.0%, due to the Company’s reassessment of the recoverability of deferred tax assets and its projected earnings mix by geography and tax jurisdiction.
The effective income tax rate of 26.0% for the three months ended March 31, 2021 deviated from the estimated annual tax rate of 28.2% for 2021, due to the impact of discrete tax items.
The effective tax rate of 29.8% for the three months ended March 31, 2020 deviated from the estimated annual tax rate of 29.2% for 2020, due to the impact of discrete tax items.
v3.21.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Environmental Matters
EPA Action
During 2008 and 2009, the U.S. Environmental Protection Agency (“EPA”) contacted all U.S. carbon black producers as part of an industry-wide EPA initiative, requesting extensive and comprehensive information under Section 114 of the U.S. Clean Air Act. The EPA used that information to determine, for each facility, that either: (i) the facility has been in compliance with the Clean Air Act; (ii) violations have occurred and enforcement litigation may be undertaken; or (iii) violations have occurred and a settlement of an enforcement case is appropriate. In response to information requests received by the Company’s U.S. facilities, the Company furnished information to the EPA on each of its U.S. facilities. EPA subsequently sent notices under Section 113(a) of the Clean Air Act in 2010 alleging violations of Prevention of Significant Deterioration (“PSD”) and Title V permitting requirements under the Clean Air Act at the Company’s Belpre (Ohio) facility. In October 2012, the Company received a corresponding notice and finding of violation (a “NOV”) alleging the failure to obtain PSD and Title V permits reflecting Best Available Control Technology (“BACT”) at several units of the Company’s Ivanhoe
(Louisiana) facility, and in January 2013 the Company also received a NOV issued by the EPA for its facility in Borger (Texas) alleging the failure to obtain PSD and Title V permits reflecting BACT during the years 1996 to 2008. A comparable NOV for the Company’s U.S. facility in Orange (Texas) was issued by the EPA in February 2013; and EPA issued an additional NOV in March 2016 alleging more recent non-PSD air emissions violations primarily at the dryers and the incinerator of the Orange facility.
In 2013, Orion began discussions with the EPA and the U.S. Department of Justice about a potential settlement to resolve the NOVs received, which ultimately led to a consent decree executed between Orion Engineered Carbons LLC (for purpose of this note M. “Orion”) and the United States (on behalf of the EPA), as well as the Louisiana Department of Environmental Quality. The consent decree (the “EPA CD”) became effective on June 7, 2018. The EPA CD resolves and settles the EPA’s claims of noncompliance set forth in the NOVs and in a respective complaint filed in court against Orion by the United States immediately prior to the filing of the consent decree.
All five U.S. carbon black producers have settled with the U.S. government.

Under Orion’s EPA CD, Orion is installing certain pollution control technology in order to further reduce emissions at its four U.S. manufacturing facilities in Ivanhoe (Louisiana), Belpre (Ohio), Borger (Texas), and Orange (Texas) over approximately five years. The EPA CD also requires the continuous monitoring of emissions reductions that Orion will need to comply with over a number of years. Orion has commenced the installation works for its Ivanhoe and Orange facilities. While the construction at Orange has been completed according to schedule despite COVID-19 related impacts, the construction at the Ivanhoe facility has been subject to COVID-19-related delays, and as a result we have declared force majeure with respect to the EPA CD and requested an extension of the timeline for completion of installations. The EPA has not confirmed our extension request but has deferred judgment on it at this time. In line with EPA’s respective request, Orion continues to provide regular updates to the EPA on the Ivanhoe installation works timeline and respective COVID-19 related impacts and mitigation measures.

Under the EPA CD, Orion can choose either its Belpre or Borger facilities as the next site for installation of pollution control equipment with comparable effectiveness. We expect the capital expenditures for installation of pollution control equipment in the remaining Orion facilities to decrease due to economies of scale and synergies from prior installations. We also expect that the third and fourth plants will require significantly less costly pollution control equipment given the requirements of the EPA CD. We estimate the installations of monitoring and pollution control equipment at all four Orion plants in the U.S. will require capital expenditures in an approximate range between $230 million to $270 million of which approximately $133 million has been spent to date. To narrow this range, the Company is pursuing further scope design and estimation efforts. However, the actual total capital expenditures we might need to incur to fulfill the requirements of the EPA CD remain uncertain. The EPA CD allows some flexibility for Orion to choose among different technology solutions for reducing emissions and the locations where these solutions are implemented. The solutions Orion ultimately chooses to implement at its facilities other than Ivanhoe (Louisiana) and Orange (Texas), may differ in scope and operation from those it currently anticipates (including those discussed in the next paragraph) and, for any and all of its still affected three facilities, factors, such as timing, locations, target levels, changing cost estimates and local regulations, could cause actual capital expenditures to exceed or be lower than current expectations or affect Orion’s ability to meet the agreed target emission levels or target dates for installing required equipment as anticipated or at all. Orion also agreed to and paid a civil penalty of $0.8 million and agreed to perform environmental mitigation projects totaling $0.6 million. Noncompliance with applicable emissions limits could lead to further penalty payments to the EPA.
As part of Orion’s compliance plan under the EPA CD, in April 2018 Orion signed a contract with Haldor Topsoe group to install its SNOXTM emissions control technology to remove SO2, NOx and dust particles from tail gases at Orion’s Ivanhoe, Louisiana Carbon Black production plant. The SNOXTM technology has not been used previously in the carbon black industry.
Orion’s Share Purchase Agreement with Evonik in connection with the acquisition of the carbon black business line from Evonik Industries AG, completed on July 29, 2011 (“Acquisition), provides for a partial indemnity from Evonik against various exposures, including, but not limited to, capital investments, fines and costs arising in connection with Clean Air Act violations that occurred prior to July 29, 2011. Except for certain less relevant allegations contained in the second NOV received for the Company’s facility in Orange (Texas) in March 2016, all of the other allegations made by the EPA with regard to all four of the Company’s U.S. facilities - as discussed above - relate to alleged violations before July 29, 2011. The indemnity provides for a recovery from Evonik of a share of the costs (including fines), expenses (including reasonable attorney’s fees, but excluding costs for maintenance and control in the ordinary course of business and any internal cost of monitoring the remedy), liabilities, damages and losses suffered and is subject to various contractual provisions including provisions set forth in the Share Purchase Agreement with Evonik, such as a de minimis clause, a basket, overall caps (which apply to all covered exposures and all covered environmental exposures, in the aggregate), damage mitigation and cooperation requirements, as well as a statute of limitations provision. Due to the cost-sharing and cap provisions in Evonik’s indemnity, the Company expects that substantial costs it has already incurred and will incur in this EPA enforcement initiative and the EPA CD likely will substantially exceed the scope of the indemnity. In addition, Evonik signaled that it is not honoring Orion’s claims under the indemnity. In June 2019, Orion initiated arbitration proceedings to enforce its rights against Evonik. Evonik in turn has submitted certain counterclaims related to a tax indemnity and cost reimbursement against Orion, which counterclaims we do not believe to be material. Although Orion believes that it is entitled to the indemnity and that its rights thereunder are enforceable, there is no assurance that the Company will be able to recover costs or expenditures incurred under the indemnity as it expects or at all.
Pledges and guarantees
The Company has pledged the majority of its assets (amongst others shares in affiliates, bank accounts and receivables) within the different regions excluding China as collateral under the Credit Agreement. As of March 31, 2021, the Company had guarantees totaling $18.8 million issued by various financial institutions.
v3.21.1
Financial Information by Segment
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Financial Information by Segment Financial Information by Segment
Segment information
We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. We manage our business in
two operating segments, Rubber Carbon Black and Specialty Carbon Black.
•Rubber carbon black—Used in the reinforcement of rubber in tires and mechanical rubber goods.
•Specialties—Used as pigments and performance additives in coatings, polymers, printing and special applications.
The CEO, CFO and certain other senior management members, together, are the chief operating decision maker (“CODM”). Discrete financial information is available for each of the segments, and the CODM uses operating results of each operating segments for performance evaluation and resource allocation.
Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define segment Adjusted EBITDA as Income from operations before depreciation and amortization, adjusted for acquisition related expenses, restructuring expenses, consulting fees related to Company strategy, share of profit or loss of joint venture and certain other items.
The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.
The following table shows the percent of revenue recognized in each of the Company’s reportable segment:
Three Months Ended March 31,
20212020
Rubber60 %64 %
Specialty40 %36 %
Adjustment items are not allocated to the individual segments as they are managed on a group basis.
Segment reconciliation for the three months ended March 31, 2021 and 2020:
RubberSpecialtiesCorporateTotal segments
(In thousands)
2021
Net sales from external customers$215,918 $144,159 $— $360,077 
Adjusted EBITDA$31,171 $39,680 $— $70,851 
Corporate charges— — (2,225)(2,225)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(14,291)(11,336)— (25,627)
Excluding equity in earnings of affiliated companies, net of tax(146)— — (146)
Interest and other financial expense, net(9,959)(9,959)
Reclassification of actuarial losses from AOCI(1,228)(1,228)
Pre-tax income before equity in earnings of affiliated companies31,666 
2020
Net sales from external customers$216,228 $119,779 $— $336,007 
Adjusted EBITDA$35,768 $28,076 $— $63,844 
Corporate charges— — (2,323)(2,323)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(15,293)(8,552)— (23,845)
Excluding equity in earnings of affiliated companies, net of tax(133)— — (133)
Interest and other financial expense, net(9,610)(9,610)
Reclassification of actuarial losses from AOCI(2,398)(2,398)
Pre-tax income before equity in earnings of affiliated companies25,534 
The sales information noted above relates to external customers only. “Corporate” includes income and expense that cannot be directly allocated to the business segments or are managed on corporate level and includes finance income and expenses, taxes and items with less bearing on the underlying core business.
v3.21.1
Organization, Description of the Business and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Adoption of accounting standards, and Recent accounting pronouncements not yet adopted
Adoption of accounting standards
In January 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-01, Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The amendments in this update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments in this update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We adopted this standard on January 1, 2021. The adoption of this standard did not materially impact our Consolidated Financial Statements.
Recent Accounting Pronouncements Not Yet Adopted
Reference Rate Reform (Topic 848)—In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04), a new standard. In January 2021, FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refines the scope of ASC 848 and clarifies some of its guidance as part of the Board’s monitoring of global reference rate reform. This guidance permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, for computing variation margin settlements, and for calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022.
The Company will adopt this guidance prospectively and will elect certain optional expedients through the end of the hedging relationship. This will enable the Company to update its assessments of effectiveness, probability, and hedged risk in order to continue hedge accounting for the designated hedges that reference a rate expected to be discontinued as a result of the reference rate reform without requiring de-designation of current hedging relationships. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements and it will continue to evaluate the guidance to determine the timing and extent to which it will apply accounting relief provided by the guidance.
v3.21.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Lease, Cost
The company’s right-of-use assets (“ROU”) assets and lease liabilities related to operating and finance leases reflected in the Consolidated Balance Sheets are as follows:
March 31, 2021December 31, 2020
(In thousands)
ROU Assets
Operating leases $24,863 $25,321 
Finance leases67,931 60,318 
Total$92,794 $85,639 
Lease Liabilities(1)
Operating leases
Current$6,268 $7,215 
Long-term19,395 18,999 
25,664 26,214 
Finance leases
Current3,019 4,862 
Long-term65,346 55,526 
68,365 60,388 
Total$94,028 $86,603 
(1) In the Consolidated Balance Sheets are reflected
v3.21.1
Inventories (Tables)
 3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventory, Net
Inventories, net of obsolete, unmarketable and slow-moving reserves are as follows:
March 31, 2021December 31, 2020
(In thousands)
Raw materials, consumables and supplies, net$62,850 $57,011 
Work in process184 322 
Finished goods, net94,469 84,128 
Total$157,504 $141,461 
v3.21.1
Accounts Receivable (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of accounts receivables
The company had the following accounts receivable as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(In thousands)
Accounts receivable$263,374 $240,590 
Expected credit losses(5,676)(5,794)
Accounts receivable, net of expected credit losses$257,697 $234,796 
v3.21.1
Debt and Other Obligations (Tables)
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Debt Arrangements
The Company had the following debt arrangements in place as of March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
(In thousands)
Current
Term loan$8,261 $8,479 
Deferred debt issuance costs - term loan(1,424)(1,500)
Other short-term debt and obligations101,006 75,640 
Current portion of long term debt and other financial liabilities107,843 82,618 
Non-current
Term loan640,289 659,502 
Deferred debt issuance costs - term loan(3,162)(3,676)
Long-term debt, net637,127 655,826 
Total $744,970 $738,444 
Discussion related to Other short-term debt and obligations is as follows:
(a) Revolving credit facility
To fund operating activities and generally safeguard the Company’s liquidity, the Company has entered into a revolving credit facility (“RCF”) of €250 million ($293 million). As of March 31, 2021, the total commitment of $293 million is split between a $94 million RCF tranche and $199 million of bilateral ancillary facilities established directly with several banks under the RCF. As of March 31, 2021, and December 31, 2020, no RCF borrowings, as defined in the Credit Agreement, had been drawn. However, as of March 31, 2021 and December 31, 2020, $83.0 million and $70.3 million, respectively, of drawings under ancillary facilities reduced the overall amount available under the RCF to $210 million and $236.5 million, respectively.
(b) Local bank loans and other short-term borrowings
As of March 31, 2021, the Company had partially drawn its uncommitted local credit line in Korea by $4.4 million and in Brazil by $1.7 million (December 31, 2020: $4.6 million and $0.8 million, respectively).
v3.21.1
Financial Instruments and Fair Value Measurement (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements All measurements are based on observable inputs such as interest rates and are classified as Level 2 within the fair value hierarchy:
Fair Value HierarchyMarch 31, 2021December 31, 2020
(In thousands)
Receivables from hedges / derivatives$4 $195 
Prepaid expenses and other current assets Level 24 195 
Liabilities from derivatives$15,044 $23,127 
Other current liabilitiesLevel 22,838 296 
Other liabilities (non-current)Level 212,206 22,831 
Term loanLevel 2$648,550 $667,980 
Local bank loansLevel 2$101,006 $75,640 
v3.21.1
Employee Benefit Plans (Tables)
 3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs Net periodic defined benefit pension benefit costs include the following:
Three Months Ended March 31,
20212020
(In thousands)
Service cost$321 $303 
Interest cost257 295 
Amortization of actuarial loss1,228 2,398 
Net periodic pension cost$1,806 $2,996 
v3.21.1
Restructuring Expenses (Tables)
 3 Months Ended
Mar. 31, 2021
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Activities and Related Reserves Details of restructuring activities and the related reserves for this facility were as follows:
Personnel
expenses		Demolition and
Removal costs		Ground
remediation
costs		OtherTotal
(In thousands)
Provision at January 1, 2021$3,559 $229 $4,251 $— $8,039 
Charges(322)— — — (322)
Cost charged against liabilities (assets)— — — — — 
Cash paid(43)— — — (43)
Foreign currency translation adjustment(153)(10)(189)— (352)
Provision at March 31, 2021$3,041 $219 $4,062 $— $7,321 
Provision at January 1, 2020$3,400 $561 $488 $317 $4,765 
Charges— — — — — 
Cost charged against liabilities (assets)— — — — — 
Cash paid(514)(402)(252)(263)(1,432)
Foreign currency translation adjustment(81)(11)(14)(6)(113)
Provision at March 31, 2020$2,805 $147 $221 $48 $3,221 
v3.21.1
Accumulated Other Comprehensive Income/(Loss) (Tables)
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Schedule of Changes in AOCI, Net of Tax Changes in each component of Accumulated other comprehensive income (loss) (“AOCI”), net of tax, are as follows for the three months ended March 31, 2021 and 2020.
Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2021$(26,543)$(13,485)$(8,676)$(48,705)
Other comprehensive loss before reclassifications(4,693)803 — (3,890)
Income tax effects before reclassifications(402)(276)— (679)
Amounts reclassified from AOCI— — 1,228 1,228 
Income tax effects on reclassifications— — (394)(394)
Currency translation AOCI— 632 375 1,007 
Balance at March 31, 2021$(31,638)$(12,327)$(7,467)$(51,432)

Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2020$(12,281)$(10,891)$(11,189)$(34,362)
Other comprehensive income/(loss) before reclassifications(22,735)(1,241)— (23,976)
Income tax effects before reclassifications(1,336)426 — (910)
Amounts reclassified from AOCI— — 2,398 2,398 
Income tax effects on reclassifications— — (776)(776)
Currency translation AOCI— 195 225 420 
Balance at March 31, 2020$(36,353)$(11,511)$(9,342)$(57,206)
Schedule of Amounts Reclassified out of AOCI
The amounts reclassified out of AOCI and into the Condensed Consolidated Statement of Operations for the three months ended March 31, 2021 and 2020 are as follows:
Affected Line Item in the Condensed Consolidated
Statements of Operations		Three Months Ended March 31,
20212020
(In thousands)
Amortization of actuarial lossesReclassification of actuarial losses from AOCI$1,228 $2,398 
Total before tax1,228 2,398 
Tax impact(394)(776)
Total after tax$834 $1,623 
v3.21.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted EPS
The following table reflects the income and share data used in the basic and diluted EPS computations:
Three Months Ended March 31,
20212020
Net income for the period - attributable to ordinary equity holders of the parent (in thousands)$23,538 $18,032 
Weighted average number of ordinary shares (in thousands of shares)60,648 60,276 
Basic EPS$0.39 $0.30 
Dilutive effect of share based payments (in thousands of shares)164 1,115 
Weighted average number of diluted ordinary shares (in thousands of shares)60,812 61,391 
Diluted EPS$0.39 $0.29 
v3.21.1
Financial Information by Segment (Tables)
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Schedule of the Relative Size of Revenue Recognized in each Reportable Segment
The following table shows the percent of revenue recognized in each of the Company’s reportable segment:
Three Months Ended March 31,
20212020
Rubber60 %64 %
Specialty40 %36 %
Schedule of Segment Reconciliation
Segment reconciliation for the three months ended March 31, 2021 and 2020:
RubberSpecialtiesCorporateTotal segments
(In thousands)
2021
Net sales from external customers$215,918 $144,159 $— $360,077 
Adjusted EBITDA$31,171 $39,680 $— $70,851 
Corporate charges— — (2,225)(2,225)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(14,291)(11,336)— (25,627)
Excluding equity in earnings of affiliated companies, net of tax(146)— — (146)
Interest and other financial expense, net(9,959)(9,959)
Reclassification of actuarial losses from AOCI(1,228)(1,228)
Pre-tax income before equity in earnings of affiliated companies31,666 
2020
Net sales from external customers$216,228 $119,779 $— $336,007 
Adjusted EBITDA$35,768 $28,076 $— $63,844 
Corporate charges— — (2,323)(2,323)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(15,293)(8,552)— (23,845)
Excluding equity in earnings of affiliated companies, net of tax(133)— — (133)
Interest and other financial expense, net(9,610)(9,610)
Reclassification of actuarial losses from AOCI(2,398)(2,398)
Pre-tax income before equity in earnings of affiliated companies25,534 
v3.21.1
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
ROU Assets    
Operating leases $ 24,863 $ 25,321
Finance leases 67,931 60,318
Operating and finance lease, net carrying amount 92,794 85,639
Operating leases    
Current 6,268 7,215
Long-term 19,395 18,999
Operating lease 25,664 26,214
Finance leases    
Current 3,019 4,862
Long-term 65,346 55,526
Finance leases 68,365 60,388
Operating and finance lease, liability $ 94,028 $ 86,603
v3.21.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials, consumables and supplies, net $ 62,850 $ 57,011
Work in process 184 322
Finished goods, net 94,469 84,128
Total $ 157,504 $ 141,461
v3.21.1
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Receivables [Abstract]    
Accounts receivable $ 263,374 $ 240,590
Expected credit losses (5,676) (5,794)
Accounts receivable, net of expected credit losses $ 257,697 $ 234,796
v3.21.1
Debt and Other Obligations - Schedule of Debt Arrangements (Details)
$ in Thousands
Mar. 31, 2021
USD ($)
Mar. 31, 2021
EUR (€)
Dec. 31, 2020
USD ($)
Current      
Other short-term debt and obligations $ 101,006   $ 75,640
Current portion of long term debt and other financial liabilities 107,843   82,618
Non-current      
Long-term debt, net 637,127   655,826
Total 744,970   738,444
Total Ancillary Facilities      
Non-current      
Amount outstanding 83,000   70,300
Remaining borrowing capacity 210,000   236,500
Revolving Credit Facility      
Non-current      
Maximum borrowing capacity 293,000 € 250,000,000  
Revolving Credit Facility | RCF Bank Group      
Non-current      
Maximum borrowing capacity 94,000    
Revolving Credit Facility | Total Ancillary Facilities      
Non-current      
Maximum borrowing capacity 199,000    
Line of Credit | Korea      
Current      
Other short-term debt and obligations 4,400   4,600
Line of Credit | Brazil      
Current      
Other short-term debt and obligations 1,700   800
Term Loan Facility | Term Loan      
Current      
Term loan 8,261   8,479
Deferred debt issuance costs - term loan (1,424)   (1,500)
Non-current      
Term loan 640,289   659,502
Deferred debt issuance costs - term loan $ (3,162)   $ (3,676)
v3.21.1
Debt and Other Obligations - Narrative (Details)
€ in Thousands, $ in Millions
Mar. 03, 2021
EUR (€)
emissionsCertificate
Dec. 22, 2021
EUR (€)
Mar. 31, 2021
USD ($)
Debt Instrument [Line Items]      
Number of emission allowance certificates sold | emissionsCertificate 260,000    
Proceeds from sale of emissions certificate € 10,040    
Interest payable | $     $ 11.8
Forecast      
Debt Instrument [Line Items]      
Emissions certificates, repurchase obligation amount   € 10,060  
v3.21.1
Financial Instruments and Fair Value Measurement - Narrative (Details) - Fair Value, Inputs, Level 2 - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Receivables from hedges / derivatives $ 4 $ 195
Prepaid expenses and other current assets 4 195
Liabilities from derivatives 15,044 23,127
Other current liabilities 2,838 296
Other liabilities (non-current) 12,206 22,831
Term loan    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of loans 648,550 667,980
Local bank loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of loans $ 101,006 $ 75,640
v3.21.1
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]    
Service cost $ 321 $ 303
Interest cost 257 295
Amortization of actuarial loss 1,228 2,398
Net periodic pension cost 1,806 2,996
Reclassification out of Accumulated Other Comprehensive Income | Accumulated defined benefit plans adjustment, net gain (loss) attributable to parent    
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]    
Amortization of actuarial loss $ 1,228 $ 2,398
v3.21.1
Employee Benefit Plans - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]    
Actuarial losses as a percentage of defined benefit obligations 10.00%  
Amortization of actuarial loss $ 1,228 $ 2,398
Reclassification out of Accumulated Other Comprehensive Income | Accumulated defined benefit plans adjustment, net gain (loss) attributable to parent    
Defined Benefit Plan Disclosure [Line Items]    
Amortization of actuarial loss $ 1,228 $ 2,398
v3.21.1
Restructuring Expenses - Schedule of Restructuring Activities and Related Reserves (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Restructuring Reserve    
Beginning Provision $ 8,039 $ 4,765
Charges (322) 0
Cost charged against liabilities (assets) 0 0
Cash paid (43) (1,432)
Foreign currency translation adjustment (352) (113)
Ending Provision 7,321 3,221
Personnel expenses    
Restructuring Reserve    
Beginning Provision 3,559 3,400
Charges (322) 0
Cost charged against liabilities (assets) 0 0
Cash paid (43) (514)
Foreign currency translation adjustment (153) (81)
Ending Provision 3,041 2,805
Demolition and Removal costs    
Restructuring Reserve    
Beginning Provision 229 561
Charges 0 0
Cost charged against liabilities (assets) 0 0
Cash paid 0 (402)
Foreign currency translation adjustment (10) (11)
Ending Provision 219 147
Ground remediation costs    
Restructuring Reserve    
Beginning Provision 4,251 488
Charges 0 0
Cost charged against liabilities (assets) 0 0
Cash paid 0 (252)
Foreign currency translation adjustment (189) (14)
Ending Provision 4,062 221
Other    
Restructuring Reserve    
Beginning Provision 0 317
Charges 0 0
Cost charged against liabilities (assets) 0 0
Cash paid 0 (263)
Foreign currency translation adjustment 0 (6)
Ending Provision $ 0 $ 48
v3.21.1
Accumulated Other Comprehensive Income/(Loss) - Schedule of Changes in AOCI, Net of Tax (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
AOCI Attributable to Parent, Net of Tax    
Beginning balance $ 181,013 $ 186,013
Other comprehensive income/(loss) before reclassifications (3,890) (23,976)
Income tax effects before reclassifications (679) (910)
Amounts reclassified from AOCI 1,228 2,398
Income tax effects on reclassifications (394) (776)
Currency translation AOCI 1,007 420
Ending balance 202,846 166,815
Accumulated other comprehensive loss    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (48,705) (34,362)
Ending balance (51,432) (57,206)
Currency Translation Adjustments    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (26,543) (12,281)
Other comprehensive income/(loss) before reclassifications (4,693) (22,735)
Income tax effects before reclassifications (402) (1,336)
Amounts reclassified from AOCI 0 0
Income tax effects on reclassifications 0 0
Currency translation AOCI 0 0
Ending balance (31,638) (36,353)
Hedging Activities Adjustments    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (13,485) (10,891)
Other comprehensive income/(loss) before reclassifications 803 (1,241)
Income tax effects before reclassifications (276) 426
Amounts reclassified from AOCI 0 0
Income tax effects on reclassifications 0 0
Currency translation AOCI 632 195
Ending balance (12,327) (11,511)
Pension and Other Postretirement Benefit Liability Adjustment    
AOCI Attributable to Parent, Net of Tax    
Beginning balance (8,676) (11,189)
Other comprehensive income/(loss) before reclassifications 0 0
Income tax effects before reclassifications 0 0
Amounts reclassified from AOCI 1,228 2,398
Income tax effects on reclassifications (394) (776)
Currency translation AOCI 375 225
Ending balance $ (7,467) $ (9,342)
v3.21.1
Accumulated Other Comprehensive Income/(Loss) - Schedule of Amounts Reclassified out of AOCI (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Reclassification of actuarial losses from AOCI $ 1,228 $ 2,398
Pre-tax income before equity in earnings of affiliated companies 31,666 25,534
Tax impact (8,274) (7,635)
Net income 23,538 18,032
Reclassification out of Accumulated Other Comprehensive Income    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Pre-tax income before equity in earnings of affiliated companies 1,228 2,398
Tax impact (394) (776)
Net income 834 1,623
Reclassification out of Accumulated Other Comprehensive Income | Accumulated defined benefit plans adjustment, net gain (loss) attributable to parent    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Reclassification of actuarial losses from AOCI $ 1,228 $ 2,398
v3.21.1
Accumulated Other Comprehensive Income/(Loss) - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Actuarial losses as a percentage of defined benefit obligations 10.00%  
Amortization of actuarial loss $ (1,228) $ (2,398)
Accumulated defined benefit plans adjustment, net gain (loss) attributable to parent | Reclassification out of Accumulated Other Comprehensive Income    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Amortization of actuarial loss $ (1,228) $ (2,398)
v3.21.1
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Earnings Per Share [Abstract]    
Net income for the period - attributable to ordinary equity holders of the parent (in thousands) $ 23,538 $ 18,032
Weighted average number of ordinary shares (in thousands of shares) (in shares) 60,648 60,276
Basic EPS (in USD per share) $ 0.39 $ 0.30
Dilutive effect of share based payments (in thousands of shares) (in shares) 164 1,115
Weighted average number of diluted ordinary shares (in thousands of shares) (in shares) 60,812 61,391
Diluted EPS (in USD per share) $ 0.39 $ 0.29
v3.21.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Mar. 31, 2019
Income Tax Contingency [Line Items]      
Income tax expense $ 8,274 $ 7,635  
Effective tax rate 26.00% 29.80% 33.40%
Net discrete tax expense (gain) $ 700 $ 700  
Deferred tax expense, valuation deferred tax assets   $ 800  
Effective Income Tax Rate Reconciliation, Percent 28.20% 29.20%  
GERMANY      
Income Tax Contingency [Line Items]      
Effective tax rate 32.00%    
v3.21.1
Commitments and Contingencies - Narrative (Details)
$ in Millions
 3 Months Ended 39 Months Ended
Mar. 31, 2021
USD ($)
defendant
facility
Mar. 31, 2021
USD ($)
Loss Contingencies [Line Items]    
Guarantee obligation carrying amount $ 18.8 $ 18.8
U.S.    
Loss Contingencies [Line Items]    
Number of facilities owned | facility 4  
Number of facilities, capital expenditures could exceed or be lower than current expectations | facility 3  
Settled with the U.S. government | Unfavorable Regulatory Action    
Loss Contingencies [Line Items]    
Number of carbon black producers (defendants) | defendant 5  
Period to install pollution control technology 5 years  
Civil penalty $ 0.8  
Cost of environmental mitigation projects 0.6  
Settled with the U.S. government | Unfavorable Regulatory Action | U.S.    
Loss Contingencies [Line Items]    
Capital expenditures for installments, payments   133.0
Settled with the U.S. government | Unfavorable Regulatory Action | U.S. | Minimum    
Loss Contingencies [Line Items]    
Estimated capital expenditures to be incurred for installments 230.0 230.0
Settled with the U.S. government | Unfavorable Regulatory Action | U.S. | Maximum    
Loss Contingencies [Line Items]    
Estimated capital expenditures to be incurred for installments $ 270.0 $ 270.0
v3.21.1
Financial Information by Segment - Narrative (Details)
 3 Months Ended
Mar. 31, 2021
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.21.1
Financial Information by Segment -Schedule of the Relative Size of Revenue Recognized in each Reportable Segment (Details) - Revenue generated - Product Concentration Risk
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Rubber    
Segment Reporting Information [Line Items]    
Concentration risk percentage 60.00% 64.00%
Specialty    
Segment Reporting Information [Line Items]    
Concentration risk percentage 40.00% 36.00%
v3.21.1
Financial Information by Segment - Schedule of Segment Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Segment Reporting Information [Line Items]    
Net sales from external customers $ 360,077 $ 336,007
Adjusted EBITDA 70,851 63,844
Corporate charges (2,225) (2,323)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment (25,627) (23,845)
Excluding equity in earnings of affiliated companies, net of tax (146) (133)
Interest and other financial expense, net (9,959) (9,610)
Reclassification of actuarial losses from AOCI (1,228) (2,398)
Pre-tax income before equity in earnings of affiliated companies 31,666 25,534
Operating segments | Rubber    
Segment Reporting Information [Line Items]    
Net sales from external customers 215,918 216,228
Adjusted EBITDA 31,171 35,768
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment (14,291) (15,293)
Excluding equity in earnings of affiliated companies, net of tax (146) (133)
Operating segments | Specialties    
Segment Reporting Information [Line Items]    
Net sales from external customers 144,159 119,779
Adjusted EBITDA 39,680 28,076
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment (11,336) (8,552)
Corporate    
Segment Reporting Information [Line Items]    
Corporate charges (2,225) (2,323)
Interest and other financial expense, net (9,959) (9,610)
Reclassification of actuarial losses from AOCI $ (1,228) $ (2,398)