ORION ENGINEERED CARBONS S.A., 10-K filed on 2/18/2021
Annual Report
v3.20.4
Document and Entity Information - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2020
Feb. 09, 2021
Jun. 30, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Document Transition Report false    
Entity File Number 001-36563    
Entity Registrant Name ORION ENGINEERED CARBONS S.A.    
Entity Incorporation, State or Country Code N4    
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 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    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 0.6
Entity Common Stock, Shares Outstanding (in shares)   60,511,870  
Documents Incorporated by Reference Portions of the Registrant's definitive proxy statement for the 2021 annual meeting of shareholders.    
Entity Central Index Key 0001609804    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.20.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Net sales $ 1,136,383 $ 1,476,353 $ 1,578,203
Cost of sales 844,034 1,086,644 1,148,232
Gross profit 292,348 389,708 429,971
Selling, general and administrative expenses 176,140 206,886 231,918
Research and development costs 20,201 19,874 20,320
Other expenses, net 14,066 12,169 6,061
Restructuring income 0 0 40,253
Restructuring expenses 7,559 3,628 15,620
Income from operations 74,382 147,151 196,305
Interest and other financial expense, net 38,671 27,572 28,642
Reclassification of actuarial losses from AOCI 9,916 0 0
Income from operations before income tax expense and equity in earnings of affiliated companies 25,795 119,579 167,663
Income tax expense 8,132 33,216 46,944
Equity in earnings of affiliated companies, net of tax 493 558 591
Net income $ 18,156 $ 86,920 $ 121,310
Weighted-average shares outstanding (in thousands of shares):      
Basic (in shares) 60,430 59,986 59,567
Diluted (in shares) 61,407 61,300 61,049
Earnings per share (USD per share):      
Basic (in USD per share) $ 0.30 $ 1.45 $ 2.04
Diluted (in USD per share) $ 0.30 $ 1.42 $ 1.99
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]      
Net income $ 18,156 $ 86,920 $ 121,310
Other comprehensive loss, net of tax      
Foreign currency translation adjustments (14,262) (1,632) (10,096)
Unrealized net gains/(losses) on hedges of a net investment in a foreign operation (133) 27  
Unrealized net gains/(losses) on hedges of a net investment in a foreign operation     (269)
Unrealized net losses on cash flow hedges (2,461) (4,772)  
Unrealized net losses on cash flow hedges     (4,077)
Gains/(losses) on defined benefit plans 2,513 (8,358) 134
Other comprehensive loss (14,343) (14,734) (14,308)
Comprehensive income $ 3,813 $ 72,186 $ 107,002
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 64,869 $ 63,726
Accounts receivable, net of expected credit losses 234,796 212,565
Other current financial assets 3,630 11,347
Inventories, net 141,461 164,799
Income tax receivables 11,249 17,924
Prepaid expenses and other current assets 44,452 37,358
Total current assets 500,456 507,718
Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization 610,530 534,054
Operating lease right-of-use assets 85,639 27,532
Goodwill 84,480 77,341
Intangible assets, net 46,772 50,596
Investment in equity method affiliates 5,637 5,232
Deferred income tax assets 52,563 48,720
Other financial assets 761 2,501
Other assets 2,956 3,701
Total non-current assets 889,337 749,676
Total assets 1,389,793 1,257,394
Current liabilities    
Accounts payable 131,250 156,298
Current portion of long term debt and other financial liabilities 82,618 36,410
Current portion of employee benefit plan obligation 1,118 908
Accrued liabilities 49,176 44,931
Income taxes payable 23,906 14,154
Other current liabilities 36,676 32,509
Total current liabilities 324,745 285,211
Long-term debt, net 655,826 630,261
Employee benefit plan obligation 83,310 71,901
Deferred income tax liabilities 38,770 43,308
Other liabilities 106,131 40,701
Commitments and contingencies 0 0
Total non-current liabilities 884,036 786,171
Stockholders' equity    
Common stock 85,323 85,032
Less 505,142 and 505,142 shares of common treasury stock, at cost (8,515) (8,515)
Additional paid-in capital 68,502 65,562
Retained earnings 84,407 78,296
Accumulated other comprehensive loss (48,705) (34,362)
Total stockholders' equity 181,013 186,013
Total liabilities and stockholders' equity $ 1,389,793 $ 1,257,394
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Reserve for doubtful accounts $ 5,794 $ 6,632
Common stock, shares authorized (in shares) 65,035,579 65,035,579
Common stock, shares issued (in shares) 60,992,259 60,729,289
Common stock, shares outstanding (in shares) 60,487,117 60,224,147
Treasury stock, cost (in shares) 505,142 505,142
v3.20.4
Consolidated Statements of Cash Flows
$ in Thousands
12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Cash flows from operating activities:      
Net income $ 18,156 $ 86,920 $ 121,310
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation of property, plant and equipment and amortization of intangible assets 96,526 96,713 98,156
Amortization of debt issuance costs 2,071 2,082 2,220
Share-based incentive compensation 4,434 9,438 13,919
Deferred tax (benefit)/provision (12,146) 15,826 (3,634)
Foreign currency transactions (4,900) 1,052 2,782
Reclassification of actuarial losses from AOCI 9,916 0 0
Other operating non-cash items 118 1,813 1,165
Changes in operating assets and liabilities, net of effects of businesses acquired:      
(Increase)/decrease in trade receivables (16,501) 45,412 (39,680)
(Increase)/decrease in inventories 29,951 16,413 (31,406)
Increase/(decrease) in trade payables (18,732) (12,036) 5,444
Increase/(decrease) in provisions 2,308 (10,375) (4,427)
Increase/(decrease) in tax liabilities 16,398 (7,254) 4,843
Increase/(decrease) in other assets and liabilities (2,320) (14,497) (48,707)
Net cash provided by operating activities 125,278 231,507 121,985
Cash flows from investing activities:      
Cash paid for the acquisition of intangible assets and property, plant and equipment (144,939) (155,848) (116,157)
Acquisition of businesses, net of cash and cash equivalents acquired 0 0 (36,571)
Cash received from the disposal of intangible assets and property, plant and equipment 0 0 64,672
Net cash used in investing activities (144,939) (155,848) (88,056)
Cash flows from financing activities:      
Payments for debt issue costs 0 (1,721) (741)
Repayments of long-term debt (8,190) (8,036) (8,288)
Cash inflows related to current financial liabilities 206,076 96,956 48,963
Cash outflows related to current financial liabilities (171,095) (101,303) (26,370)
Dividends paid to shareholders (12,045) (48,033) (47,665)
Repurchase of common stock 0 0 (4,926)
Taxes paid for shares issued under net settlement feature (1,202) (6,475) (4,741)
Net cash provided by/(used in) financing activities 13,543 (68,612) (43,768)
Increase (decrease) in cash, cash equivalents and restricted cash (6,118) 7,047 (9,839)
Cash, cash equivalents and restricted cash at the beginning of the period 68,231 61,604 75,213
Effect of exchange rate changes on cash 5,753 (420) (3,770)
Cash, cash equivalents and restricted cash at the end of the period 67,865 68,231 61,604
Less restricted cash at the end of the period 2,996 4,505 4,588
Cash and cash equivalents at the end of the period 64,869 63,726 57,016
Cash paid for interest, net (20,769) (20,399) (24,367)
Cash paid for income taxes (7,930) (24,106) (60,228)
Supplemental disclosure of non-cash activity:      
Liabilities under build-to-suit lease 0 0 28,657
Liabilities for leasing - current 14,005 6,254 0
Liabilities for leasing - non-current $ 52,593 $ 26,280 $ 0
v3.20.4
Consolidated Statements of Changes in Stockholders’ Equity - 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, 2017   59,320,214        
Beginning balance at Dec. 31, 2017 $ 95,305 $ 83,770 $ (3,773) $ 102,529 $ (81,901) $ (5,320)
Increase (Decrease) in Stockholders' Equity            
Net income 121,310       121,310  
Other comprehensive loss, net of tax (14,308)         (14,308)
Distributions from additional paid-in capital (47,665)     (47,665)    
Share buyback (4,926)   (4,926)      
Share buyback (in shares)   (206,501)        
Share based compensation 8,680     8,680    
Issuance of stock under equity compensation plans (in shares)   404,785        
Issuance of stock under equity compensation plans 500 $ 484 16      
Ending balance (in shares) at Dec. 31, 2018   59,518,498        
Ending balance at Dec. 31, 2018 158,896 $ 84,254 (8,683) 63,544 39,409 (19,628)
Increase (Decrease) in Stockholders' Equity            
Net income 86,920       86,920  
Other comprehensive loss, net of tax (14,734)         (14,734)
Dividends paid - $0.80 per share (48,033)       (48,033)  
Share based compensation 2,018     2,018    
Issuance of stock under equity compensation plans (in shares)   705,649        
Issuance of stock under equity compensation plans $ 946 $ 778 168      
Ending balance (in shares) at Dec. 31, 2019 60,224,147 60,224,147        
Ending balance at Dec. 31, 2019 $ 186,013 $ 85,032 (8,515) 65,562 78,296 (34,362)
Increase (Decrease) in Stockholders' Equity            
Net income 18,156       18,156  
Other comprehensive loss, net of tax (14,343)         (14,343)
Dividends paid - $0.80 per share (12,045)       (12,045)  
Share based compensation 2,941     2,941    
Issuance of stock under equity compensation plans (in shares)   262,970        
Issuance of stock under equity compensation plans $ 291 $ 291 0      
Ending balance (in shares) at Dec. 31, 2020 60,487,117 60,487,117        
Ending balance at Dec. 31, 2020 $ 181,013 $ 85,323 $ (8,515) $ 68,502 $ 84,407 $ (48,705)
v3.20.4
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (Unaudited) - $ / shares
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]      
Dividends paid and Distributions from additional paid-in capital (in dollars per share) $ 0.20 $ 0.80 $ 0.80
v3.20.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies    Orion’s audited consolidated financial statements are comprised of Orion Engineered Carbons S.A. and its subsidiaries (“Orion”, “Company”, “we”, and “our”). The Company's fiscal year comprises the period from January 1, 2020 to December 31, 2020.
Principles of consolidation
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and are prepared in US Dollars, the presentation currency of the Company. The consolidated financial statements include the accounts of Orion and its wholly-owned subsidiaries and majority-owned and controlled U.S. and non-U.S. subsidiaries. Additionally, Orion considers consolidation of entities over which control is achieved through means other than voting rights, of which there were none in the periods presented. Intercompany transactions have been eliminated in consolidation.
Use of estimates and assumptions
We make estimates and use judgments and assumptions in the preparation of our consolidated financial statements that affect the timing and amount of assets, liabilities, equity, revenues and expenses recorded and disclosed. The more significant estimates and judgments relate to revenue recognition, asset impairment, income taxes, inventories, goodwill, pension benefits, and environmental liabilities. Actual outcomes could differ from our estimates, resulting in changes in revenues or costs that could have a material impact on the Company’s results of operations, financial position, or cash flows.
Foreign currency translation
The functional currency of the majority of the Company’s foreign subsidiaries is the local currency in which the subsidiary operates. The results of operations for foreign subsidiaries are translated from these functional currencies into U.S. dollars using the average monthly currency exchange rates. Assets and liabilities are translated into U.S. dollars using exchange rates at the balance sheet dates, and we record the resulting foreign currency translation adjustments as a separate component of Accumulated other comprehensive loss in equity. Foreign currency transaction gains and losses are recorded, as incurred, as Interest and other financial expense, net in the consolidated statements of operations.
Revenue recognition
The Company recognizes revenue when a performance obligation has been satisfied by transferring a good or a service to a customer. Revenue is only recognized when control is transferred to the customer. The amount of revenue, the transaction price, is contractually specified between the parties and is measured at the amount expected to be received less value-added tax, if applicable, and any trade discounts and volume rebates granted. We also give our customers a limited right to return product that has been damaged, does not satisfy their specifications, or other specific reasons. Payment terms on product sales to our customers typically range from 30 to 90 days. Although certain exceptions exist where standard payment terms are exceeded, these instances are infrequent and do not exceed one year and therefore we do not consider there to be a significant financing component associated with the contract.
Shipping and handling costs incurred in connection with the satisfaction of performance obligations are accounted for as fulfillment activities and recorded as sales revenue. Shipping and handling costs are expensed in the period incurred and included in Cost of sales within the Consolidated Statements of Operations.
The Company records a provision for warranty costs, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period.
Cost of sales
Cost of Sales consists of the raw and packaging materials, direct manufacturing costs, depreciation, inspection costs, inbound freight cost and shipping, internal handling costs and other overhead expenses necessary to manufacture the products.
Selling and administrative expenses
Selling and administrative expenses consist of salaries and other compensation benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations.
Research and development costs
Research and development costs include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred.
Income taxes
Our business operations are global in nature, and we are subject to taxes in numerous jurisdictions. Tax laws and tax rates vary substantially in these jurisdictions and are subject to change based on the political and economic climate in those countries. We file our tax returns in accordance with our interpretations of each jurisdiction’s tax laws.
Significant judgment is required in determining our worldwide provision for income taxes and recording the related tax assets and liabilities. In the ordinary course of our business, there are operational decisions, transactions, facts and circumstances, and calculations which make the ultimate tax determination uncertain. Furthermore, our tax positions are periodically subject to challenge by taxing authorities throughout the world. We have recorded reserves for taxes and associated interest and penalties that may become payable in future years as a result of audits by tax authorities. Any significant impact as a result of changes in underlying facts, law, tax rates, tax audit, or review could lead to adjustments to our income tax expense, our effective tax rate, and/or our cash flow. Current income tax receivables and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. They are calculated based on the tax rates and tax laws that are enacted on the reporting date.
Deferred tax assets and liabilities are determined based on the estimated future tax effects of differences between financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets are recognized to the extent that realization of those assets is considered to be more likely than not. They are measured using statutory tax rates that are expected to apply to taxable income in the jurisdictions and years when the asset is realized or the liability is settled, based on tax rates that are enacted at the reporting date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
A valuation allowance is established for deferred taxes when it is more likely than not that all or a portion of the deferred tax assets will not be realized.
Orion records benefits for uncertain tax positions based on the assessment of whether the position is more likely than not to be sustained by taxing authorities. If the threshold is not met, no tax benefit of the uncertain tax position is recognized. If the threshold is met, the tax benefit that is recognized is the largest amount that is greater than 50% likely of being realized upon ultimate settlement. The analysis presumes the taxing authorities' full knowledge of the positions taken and all relevant facts, but does not consider the time value of money. The Company also accrues for interest and penalties on its uncertain tax positions and included such charges in its income tax provision in the Consolidated Statements of Operations.
Cash, cash equivalents and restricted cash
Cash and cash equivalents comprise bank balances, checks and cash on hand. They include all highly liquid investments with a maturity of three months or less at date of acquisition.
Restricted cash comprises cash which is not available for immediate use and may not be utilized for any purpose until a certain event or events take place. A designation for short-term or long-term restricted cash is made based on the expected time of release or distribution.
Cash, cash equivalents and restricted cash are as follows:
December 31
20202019
(In thousands)
Cash and cash equivalents$64,869 $63,726 
Restricted cash included in current and non-current assets2,996 4,505 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$67,865 $68,231 
Restrictions result from mandatory and voluntary pledges to secure certain guarantee amounts.
Accounts and notes receivables
Accounts receivable are amounts due from customers for merchandise sold or services performed in the ordinary course of business and are carried at transaction price net of allowance for credit losses. Generally, interest is not charged on past due amounts. We monitor and evaluate collectability of receivables on an ongoing basis and consider whether an allowance for credit loss is necessary. Allowance for credit losses is measured using historical loss rates for the respective risk categories and incorporating forward-looking estimates. The corresponding expense for the credit loss allowance is reflected in Selling, general and administrative expenses. Accounts receivable are charged off when the accounts are deemed to no longer be collectible. Accounts receivables in China may at certain times be settled with the receipt of bank issued non-interest-bearing notes.
Financial instruments
Orion’s financial instruments consist primarily of cash and cash equivalents, trade receivables, loans, miscellaneous financial assets, term loan, local bank loans, trade payables and derivative instruments. The carrying values of Orion’s financial instruments approximate fair value with the exception of variable rate long-term debt, which is recorded at amortized cost. The fair values of the Company’s financial instruments are based on quoted market prices, if such prices are available. In situations where quoted market prices are not available, the Company relies on valuation models to derive fair value. Such valuation takes into account the ability of the financial counterparty to perform and the Company’s own credit risk.
The Company uses derivative financial instruments primarily for purposes of hedging the exposures to fluctuations in foreign currency exchange and interest rates, which exist as part of its ongoing business operations. Orion does not enter into derivative contracts for speculative purposes, nor does it hold or issue any derivative contracts for trading purposes. All derivatives are recognized on the Consolidated Balance Sheets at fair value. Where the Company has a legal right to offset derivative settlements under a master netting agreement with a counterparty, derivatives with that counterparty are presented on a net basis. The changes in the fair value of derivatives are recorded in Interest and other financial expense, net in the Statement of Operations or AOCI, depending on whether the instrument is designated as part of a hedge transaction and, if designated as part of a hedge transaction, the type of hedge transaction. The gains or losses on derivative instruments reported in AOCI are reclassified to earnings in the period in which earnings are affected by the underlying hedged item. The ineffective portion of all hedges is recognized in earnings during the period in which the ineffectiveness occurs.
In accordance with Orion’s risk management strategy, the Company may enter into certain derivative instruments that may not be designated as hedges for hedge accounting purposes. Although these derivatives are not designated as hedges, the Company believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The Company records the gains or losses from changes in the fair value of derivative instruments that are not designated as hedges in Interest and other financial expense, net in the Statement of Operations. Cash movements associated with these instruments are presented in the Consolidated Statements of Cash Flows as Cash Flows from Operating Activities because the derivatives are designed to mitigate risk to the Company’s cash flow from operations. The cash flows related to the principal amount of outstanding debt instruments are presented in the Cash Flows from Financing Activities section of the Consolidated Statements of Cash Flows.
Inventories
We value inventory at the lower of cost or net realizable value, with cost determined utilizing the average cost method. We periodically evaluate the net realizable value of inventories based primarily upon their age, but also upon assumptions of future usage in production, customer demand and market conditions. Inventories have been reduced to the lower of cost or net realizable value by allowances for slow moving or obsolete goods. If actual circumstances are less favorable than those projected by management in its evaluation of the net realizable value of inventories, additional write-downs may be required.
Investments
The Company has an investment in DGW (Kommanditgesellschaft Deutsche Gasrußwerke GmbH & Co) and DGW GmbH (Kommanditgesellschaft Deutsche Gasrußwerke GmbH & Co) which is accounted for using the equity method as the Company has the ability to exert significant influence over the affiliates’ operating and financial policies.
Intangible assets and goodwill
We record tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. We use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets requires the use of significant judgment with regard to assumptions used in the valuation model. We estimate the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the fair value of the assets at the dates of acquisition.
Definite-lived intangible assets, which are comprised of trademarks, customer relationships and developed technologies, are amortized over their estimated useful lives and are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets.
Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized and is subject to impairment testing annually, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value.
Intangible assets with finite useful lives, which are comprised of trademarks, customer relationships and developed technologies, are amortized on a straight line basis over their estimated useful lives of 3-15 years. The useful lives of intangibles related to customer relationships acquired in business combinations are estimated on the basis of contractual arrangements and the probability of a continuing relationship.
If events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, it is tested for impairment, see below in this note under “Impairment test“. The useful lives of intangible assets with finite useful lives are re-assessed annually.
Asset Impairment
Intangible Assets and Goodwill
Intangible assets with finite lives are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets.
Goodwill is tested for impairment at the reporting unit level annually or more frequently if triggering events occur or as deemed necessary. A reporting unit, for the purpose of the impairment test, is at or below the operating segment level, and constitutes a business for which discrete financial information is available and regularly reviewed by segment management. Specialty Carbon Black and Rubber Carbon Black which are considered separate reporting units, carried our goodwill balances as of December 31, 2020.
Our annual measurement date for testing impairment is as of September 30, 2020. For the purpose of the goodwill impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, an additional quantitative evaluation is performed. Alternatively, we may elect to proceed directly to the quantitative goodwill impairment test. If based on the quantitative evaluation the fair value of the reporting unit is less than its carrying amount, a goodwill impairment loss would result. The goodwill impairment loss would be the amount by which the carrying value of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The fair value of a reporting unit is based on discounted estimated future cash flows. The fair value is also benchmarked against the value calculated from a market approach using the guideline public company method. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures and discount rates over an estimate of the remaining operating period at the reporting unit level. Based on our most recent annual goodwill impairment test performed as of September 30, 2020, the fair values of the Specialty Carbon Black and Rubber Carbon Black reporting units were in excess of their carrying values.
Long-lived Assets
The Company assesses long-lived assets such as property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Long-lived assets to be held and used are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include significant decreases in the market value of an asset, significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life.
To test for impairment of assets, Orion generally uses a probability-weighted estimate of the future undiscounted net cash flows of the related assets over their remaining lives to determine if the value of the asset is recoverable. Long-lived assets are grouped with other assets and liabilities at the lowest level for which independent identifiable cash flows are determinable.
An asset impairment is recognized when the carrying value of the asset is not recoverable based on the analysis described above, in which case the asset is written down to its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets. If the asset does not have a readily determinable market value, a discounted cash flow model may be used to determine the fair value of the asset. In circumstances when an asset does not have separate identifiable cash flows, an impairment charge is recorded when the Company no longer intends to use the asset. An impairment loss may not be reversed if the fair value of the impaired asset or asset group increases subsequently.
Property, plant and equipment
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation of property, plant and equipment is calculated using the straight-line method over the expected useful lives of the related assets. The depreciable lives for Buildings, Plant and machinery as well as Furniture, fixtures and office equipment are between 5 and 50 years, 3 and 25 years, and 3 and 25 years, respectively. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are removed from the Consolidated Balance Sheets and resulting gains or losses are included in other expenses, net in the Consolidated Statements of Operations.
Expenditures for repairs and maintenance are charged to expenses as incurred. Expenditures for major renewals and improvements, which significantly extend the useful lives of the existing property, plant and equipment, are capitalized and depreciated.
Asset retirement obligations
Orion estimates incremental costs for special handling, removal and disposal of materials that may or will give rise to conditional asset retirement obligations (“ARO”) and then discounts the expected costs back to the current year using a credit adjusted risk free rate.
Orion recognizes ARO liabilities and costs when the timing and/or settlement can be reasonably estimated. The ARO reserves were $1.7 million and $2.9 million as of December 31, 2020 and 2019, respectively, and are included in Accrued liabilities (current) and Other Liabilities (non-current) on the Consolidated Balance Sheets.
Leases
We determine if an arrangement is a lease at inception of a contract. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components and have elected to account for these as a single lease component related to our other operating facilities.
Leases with an initial term of 12 months or less are not recorded on the Balance Sheet and lease expense is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term.
Please see Note C. Leases for additional information.
Pension benefit plans
Our defined benefit pension obligations are measured in accordance with the projected unit credit method. The calculations and the resulting amounts recorded in our consolidated financial statements are affected by assumptions including the discount rate, expected long-term rate of return on plan assets, the annual rate of change in compensation for plan-eligible employees, mortality tables, and other factors. We evaluate the assumptions used on an annual basis. The Company recognizes the total actuarial gains or losses recorded in accumulated other comprehensive income exceeding 10% of the defined benefit obligation in the following year through profit and loss separately from its income from operations.
Defined contribution obligations arise from commitments and state pension schemes (statutory pension insurance). We account for our contributions to a defined contribution plan on an accrual basis. An asset or liability may result from advance payments or payments due, respectively, to a defined contribution fund.
Stock-based compensation
Orion recognizes stock-based compensation cost measured at the grant date based on the fair value of the award, and recognizes these costs as expense over the service period, which generally represents the vesting period, includes an estimate of the awards that will be forfeited and also includes an estimate of awards that expect to vest based on the anticipated achievement of performance conditions. Fair value of awards is determined by using a Monte-Carlo simulation.
Awards can be classified as either equity or liability-settled dependent on the Company's obligation to the counterparty and the intended settlement method. The overarching principle focuses on whether an equity relationship is created through the award. Orion classifies its awards as equity settled. Once earned and vested, certain awards can be settled in one share of Company common stock per vested award (or, at the Company’s election, cash equal to the fair market value thereof). Certain awards are settled for cash at fair market value to cover wage taxes or as a substitute for share transfer restrictions.
When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms not been modified, if those original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based compensation transaction, or is otherwise beneficial to the employee as measured at the date of modification. Any modifications are accounted for as a new award, which might result in a lower amount of compensation cost than the grant date fair value of the original award or a greater amount of compensation costs than the sum of the grant date fair value of the original award plus the incremental fair value.
Environmental provisionsWe accrue for environmental remediation costs and other obligations when it is probable that a liability has been incurred and we can reasonably estimate the amount. The amount accrued reflects our assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. We do not reduce its estimated liability for possible recoveries from insurance carriers. Proceeds from insurance carriers are recorded when realized by either the receipt of cash or a contractual agreement. We determine the timing and amount of any liability based upon assumptions regarding future events. Inherent uncertainties exist in such evaluations primarily due to unknown conditions and other circumstances, changing governmental regulations and legal standards regarding liability, and evolving technologies. We adjust these liabilities periodically as remediation efforts progress or as additional technical or legal information becomes available.
Restructuring expenses
Restructuring expenses could include both termination benefits and asset write downs. We estimate accruals for termination benefits based on various factors including length of service, contract provisions, local legal requirements, projected final service dates, and salary levels. We also analyze the carrying value of long-lived assets and record estimated accelerated depreciation through the anticipated end of the useful life of the assets affected by the restructuring or record an asset impairment. In all likelihood, this accelerated depreciation will result in reducing the net book value of those assets to zero at the date operations cease. While we believe that changes to our estimates are unlikely, the accuracy of our estimates depends on the successful completion of numerous actions. Changes in our estimates could increase our restructuring costs to such an extent that it could have a material impact on the Company’s results of operations, financial position, or cash flows. Other events, such as negotiations with unions and works councils, may also delay the resulting cost savings.
Concentrations of credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, derivative instruments and undrawn amounts under the Revolving Credit Facility (“RCF”).
Our cash in demand deposit accounts may exceed federally insured limits and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Credit risk is mitigated as we place the cash mainly with our defined core banks which are major financial institutions with investment grade long-term credit ratings.
Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our Rubber Carbon Black segment. During 2020, sales to our ten largest customers within our Rubber Carbon Black segment accounted for approximately 66% of total consolidated segment sales. Sales to our ten largest customers within our Specialty Carbon Black segment accounted for approximately 25% of total consolidated segment sales. Sales to our top ten customers on a total consolidated basis accounted for approximately 39% of our consolidated net sales. A default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers of specific industries which can be affected by a downturn in the economy. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers including considerations of future macroeconomic expectations. An allowance is recorded in our consolidated financial statements for these estimated amounts. The concentration of customer credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion.
If a counterparty fails to fulfill its performance obligations under a derivative contract, our exposure will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a payment risk for the Company. We minimize counterparty credit or repayment risk by entering into these transactions with major financial institutions of investment grade credit rating. See Note K-”Financial Instruments and Fair Value Measurements” for additional information on our derivative contracts.
If an RCF lender fails to fulfill its performance obligations, with respect to making funds available, under the credit agreement, Orion’s credit risk comprises a potential cash shortage/refinancing risk amounting to the respective bank's commitment amount. With regard to the allocation of the total RCF amount all the lenders ins the syndicate carry investment grade long-term credit ratings. See Note H-”Debt and Other Obligations” for additional information on our revolving credit facility
We believe there is no significant concentration of risk as of December 31 ,2020.
v3.20.4
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2020
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
Recently Adopted Accounting Standards
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance as of January 1, 2021. The adoption of this guidance will not have a material impact on the Company's financial statements.
In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (ASU 2019-11). The amendments in this update represents changes to clarify, correct errors in, or improve the codification, and make the codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-11 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period after the issuance of ASU 2019-11 as long as the entity has adopted the amendments in ASU No. 2016-13. The Company adopted ASU 2019-11 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s financial statements.
In August 2018, the FASB issued ASU No 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance changes the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. It eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. The guidance is effective for financial statements issued for fiscal years ending after December 15, 2020 for public business entities and fiscal years ending after December 15, 2021 for all other entities. Early adoption is permitted. Entities will apply the amendments retrospectively. The Company adopted ASU No 2018-14 as of January 1, 2020. The adoption of this guidance did not have a significant impact on the Company's financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Measurement of Financial Losses on Credit Instruments. The standard introduces a new "expected loss" impairment model that applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables and other financial assets. Entities are required to estimate expected credit losses over the life of financial assets and record an allowance against the assets’ amortized cost basis to present them at the amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company adopted this standard on January 1, 2020. The adoption of this standard did not materially impact the Company’s consolidated financial statements.
Recently Issued Accounting Standards Not Yet Adopted
In March 2020, the 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). The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements.
In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), 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. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements.
v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
Orion has entered into lease contracts as a lessee and is not acting as a lessor. The vast majority of Orion’s lease contracts are for operating lease assets such as rail cars, company cars, offices and office equipment.
The recorded right-of-use assets as of December 31, 2020 amounted to $85.6 million, and the corresponding lease liabilities amounted to $86.6 million, of which $12.1 million were recorded within other current liabilities and $74.5 million as other liabilities in our Consolidated Balance Sheets.    
The weighted remaining average minimum lease period is 20.6 years.
The undiscounted minimum lease payments are due in and reconcile to the discounted lease liabilities as follows:

December 31, 2020
(In thousands)
Next 12 months$12,077 
1 to 2 years10,890 
2 to 3 years9,976 
3 to 4 years8,330 
4 to 5 years7,212 
More than 5 years78,216 
Total undiscounted minimum lease payments$126,701 
Discount(40,099)
Lease liability (current and non-current)$86,603 

The weighted average discount rate applied to the lease liabilities is 4.01%.
In September 2020, Orion commenced a district heating project with the utilities provider of its Cologne, Germany neighbor city of Hürth. The power plant is operated by Orion on a finance lease over a period of 25 years. During the third quarter of 2020, Orion recorded a right-of-use asset and a respective lease liability in an amount of $54.8 million.
Finance lease costs for the years ended December 31, 2020 and 2019 were $2.3 million and $0.6 million, respectively, and aggregated depreciation expenses of the right-of-use assets were $1.4 million, and $0.5 million, respectively. Interest on lease liabilities of $0.9 million and $0.1 million were recorded for the years ended December 31, 2020 and 2019, respectively. Cash paid for amounts included in the measurement of lease liabilities from finance leases was $1.9 million and $0.6 million for the years ended December 31, 2020 and 2019, respectively.
Operating lease costs for the years ended December 31, 2020 and 2019 amounted in total to $11.6 million and $12.5 million, respectively, and were recorded as operating expenses under cost of sales, selling, general and administrative expenses and under research and development cost. Cash paid for amounts included in the measurement of lease liabilities from operating leases was $8.1 million and $8.6 million for the years ended December 31, 2020 and 2019, respectively,
v3.20.4
Inventories
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories, net of obsolete, unmarketable and slow moving reserve, are as follows:
December 31
20202019
(In thousands)
Raw materials, consumables and supplies, net$57,011 $69,168 
Work in process322 148 
Finished goods, net84,128 95,483 
Total$141,461 $164,799 
Orion periodically reviews inventories for both obsolescence and loss in value. In this review, Orion makes assumptions about the future demand for and the future market value of the inventory and, based on these assumptions, estimates the amount of obsolete, unmarketable or slow moving inventory. The inventory reserve for obsolete, unmarketable and slow moving assets as of December 31, 2020 and 2019 amounted to $12.7 million and $6.7 million, respectively.
In the periods ended December 31, 2020, 2019 and 2018, $9.0 million, $6.0 million and $1.9 million, respectively, were recognized as an expense for damaged and lost inventories.
v3.20.4
Property, Plant and Equipment, and right-of-use assets
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, and right-of-use assets Property, Plant and Equipment, and right-of-use assets
Property, plant and equipment consists of the following:
December 31,
20202019
(In thousands)
Land$35,000 $33,654 
Land rights and buildings101,931 94,157 
Plant and machinery833,235 725,203 
Other equipment, furniture and fixtures37,564 30,965 
Prepayments and construction in progress176,323 138,374 
Total property, plant and equipment1,184,054 1,022,354 
Less: accumulated depreciation573,524 488,300 
Net property, plant and equipment$610,530 $534,054 
Depreciation expense was $81.0 million, $75.3 million and $78.2 million for fiscal years ending December 31, 2020, 2019 and 2018, respectively.
Property, plant and equipment amounts include remeasurements due to the finalization of purchase price accounting in the third quarter of 2019 related to the acquisition of SN2A (see Note I. Business Combinations, Goodwill and Intangible Assets).
The value of right-of-use assets as of December 31, 2020 was $101.5 million. With accumulated depreciation of $15.8 million, the net carrying amount is $85.6 million as of December 31, 2020. Depreciation expense for right-of-use assets was $7.3 million and $8.5 million for fiscal years 2020 and 2019
v3.20.4
Prepaid and other assets
12 Months Ended
Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaid and other assets Prepaid and other assets
December 31
20202019
TotalThereof currentThereof non‑currentTotalThereof currentThereof non‑current
(In thousands)
Miscellaneous other receivables$42,116 $41,777 $339 $36,531 $36,189 $342 
Prepaid expenses5,292 2,674 2,617 4,529 1,170 3,359 
Total$47,408 $44,452 $2,956 $41,059 $37,358 $3,701 
Miscellaneous other receivables were primarily VAT ($23.0 million and $21.5 million as at December 31, 2020 and 2019, respectively), advance payments ($2.9 million and $1.2 million as of December 31, 2020, and 2019, respectively), down payments ($2.3 million and $3.1 million as of December 31, 2020 and 2019, respectively), refundable environmental taxes prepaid ($0.9 million and $3.2 million as of December 31, 2020 and 2019, respectively) and guarantee deposits ($1.4 million and $1.4 million as of December 31, 2020 and 2019, respectively).
Prepaid expenses primarily include other unamortized transaction costs of $3.0 million and $3.4 million as of December 31, 2020 and 2019, respectively, (of which $2.3 million and $2.8 million, respectively, are non-current) incurred in connection with the revolving credit facility that has not been drawn by the respective reporting dates.
v3.20.4
Accounts Receivable
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
The company accounts receivable are as follows:
December 31
20202019
(In thousands)
Accounts receivable$240,590 $219,197 
Expected credit losses(5,794)(6,632)
Accounts receivable, net of expected credit losses$234,796 $212,565 
The company allowance for credit losses are as follows:
20202019
(In thousands)
Allowance for credit losses as of January 1,$(6,632)$(5,081)
Credit loss expense(3,965)(3,703)
Credit loss income and utilization4,924 1,209 
Foreign currency translation effects(120)943 
Allowance for credit losses as of December 31,$(5,794)$(6,632)
v3.20.4
Debt and Other Obligations
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
The company arrangements are as follows:
December 31
20202019
(In thousands)
Current
Term loan$8,479 $8,057 
Deferred debt issuance costs-term loan
(1,500)(1,409)
Other short-term debt and obligations75,640 29,762 
Current portion of long-term debt and other financial liabilities82,618 36,410 
Non-current
Term loan659,502 634,994 
Deferred debt issuance costs-term loan(3,676)(4,733)
Other long-term debt and obligations— — 
Long-term debt, net655,826 630,261 
Total $738,444 $666,671 

(a) Term Loan
In 2014, Orion entered into an $895.0 million term loan credit facility (“Credit Agreement”), which was allocated to a term loan facility denominated in U.S. dollars of $358.0 million and a term loan facility denominated in Euros of €399.0 million with both having an original maturity date of July 25, 2021 (the “Term Loans”). Initial interest was calculated based on three-month EURIBOR (for the euro denominated loan), or three-month USD-LIBOR (for the U.S. dollar denominated loan) plus a 3.75% - 4.00% margin depending on the Company’s net leverage ratio. For both EURIBOR and USD-LIBOR, a floor of 1.0% applied. At least 1.0% of the principal amount is required to be repaid per annum.
Orion repriced the Term Loans during the years 2016 to 2018, achieving a significant reduction of both interest margins to currently 2.00% for the U.S. dollar term loan and 2.25% for the Euro term loan. In addition, the interest margin is no longer linked to Orion's net leverage ratio and the EURIBOR and USD-LIBOR floors were eliminated. The duration of both Term Loans was extended to July 25, 2024. Other provisions of the Credit Agreement relating to the Term Loans remained unchanged.
Transaction costs incurred directly in connection with the Term Loans reduce their carrying amount and are amortized as finance costs over the term of the loans. Transaction costs incurred in connection with the subsequent modifications of the Term Loan were directly expensed as incurred as the modified terms were not substantially different. In connection with the repricing described above further transaction costs of $0.7 million in 2018 were incurred and directly expensed. For the years ended December 31, 2020, 2019 and 2018 an amount of $1.4 million, $1.4 million and $1.4 million, respectively, related to capitalized transaction costs was amortized and recognized as finance costs in this regard.
In May 2018, Orion entered into a $235.0 million cross currency swap to synthetically convert its U.S. dollar liabilities into euro liabilities. This swap transaction impacts both principal and interest payments associated with debt service and results in a further annual interest payments savings of approximately $4.7 million. The swap became effective on May 15, 2018 and will expire on July 25, 2024, in line with maturity of the term loan. As part of our financial risk strategy, on December 30, 2020, we exited $38.0 million and $30 million in cross currency swaps, with maturity dates of 2024 and 2021, respectively, at a loss of approximately $6.3 million.
A portion of the U.S. dollar-denominated term loan was designated as a hedge of the net investment in a foreign operation to reduce the Company's foreign currency exposure. Since January 1, 2015 the Company had designated $180.0 million of the total U.S. dollar-denominated term loan held by a Germany based subsidiary as the hedging instrument to hedge the change in net assets of a U.S. subsidiary, which is held by a Germany based subsidiary, to manage foreign currency risk. Due to the new hedging approach and the new cross currency swap as described above, hedge accounting for the net investment hedge was discontinued on May 15, 2018. An unrealized loss of $2.2 million remains within other comprehensive income until it is recycled through profit and loss upon divestment of the hedged item.
The carrying value of the Term Loans as of December 31, 2020 includes the nominal amount of the Term Loans plus accrued unpaid interest less deferred debt issuance costs - term loan of $5.2 million (December 31, 2019: $6.1 million).
(b) Revolving credit facility
To fund operating activities and generally safeguard the Company’s liquidity, the Company has entered into an RCF.
In 2014, the Company entered into a €115.0 million multicurrency revolving credit facility with an original maturity date of July 25, 2019. Interest is calculated based on EURIBOR (for euro drawings), and USD-LIBOR (for U.S. Dollar drawings) plus 2.5% - 3.0% margin (depending on leverage ratio). Transaction costs in the amount of $3.3 million originally incurred in connection with the RCF were recorded as deferred expenses and amortized as finance costs on a straight-line basis over the term of the facility (until July 25, 2019).
An amendment to the RCF entered into in May 2017 (i) reduced the commitment fee paid on the unused commitments from 40% of the Applicable Rate (as defined in the Credit Agreement) to 35% of the Applicable Rate, (ii) extended the maturity date for the RCF to April 25, 2021 and (iii) increased the aggregate amount of revolving credit commitments to €175.0 million. All other terms of the Credit Agreement remained unchanged. Transaction costs in conjunction with the RCF of $2.3 million related to the 2017 amendment to the Credit Agreement are recorded as deferred expenses and amortized as finance costs on a straight-line basis over the term of the facility (until April 25, 2021).
In April 2019, the Company entered into an amendment to the RCF, effective April 10, 2019, which:
(i) extended the maturity date for the RCF by three years to April 25, 2024,
(ii) increased the aggregate amount of revolving credit commitments in Euro by €75.0 million to EUR €250.0 million, and
(iii) reduced revolving credit interest expense using a revised pricing grid with lower Applicable Rates (credit spreads). As of December 31, 2020, the Company’s net leverage ratio was 3.4x, which corresponds to an Applicable Margin of 2.70.
All other terms of the RCF remained substantially unchanged, including the commitment fee, which remains at 35% of applicable margin. As of December 31, 2020 and 2019, no RCF borrowings, as defined in the Credit Agreement, had been drawn, while $70.3 million and $28.6 million, respectively, in borrowings under ancillary facilities reduced the overall amount available under the RCF to $236.5 million. Letters of credit can be issued for the amount available under the RCF and ancillary facilities. The weighted average interest rates on short term borrowings as of December 31, 2020 and 2019 were 2.48% and 2.51%, respectively.
For the years ended December 31, 2020, 2019 and 2018 transaction costs of $0.6 million, $0.7 million and $0.8 million. respectively, were amortized. Unamortized transaction costs that were incurred in conjunction with the RCF in July 2014, the amendment on May 30, 2017 and the amendment on April 2, 2019, amount to $3.0 million as of December 31, 2020. Unamortized transaction costs as of December 31, 2019 amounted to $3.4 million and were incurred in conjunction with the RCF in July 2014 and the amendment on May 30, 2017.
(c) Local bank loans and other short term borrowings
As of December 31, 2020, the Company had partly drawn its uncommitted local credit lines in Korea of $4.6 million and Brazil amounting to $0.8 million. Neither facility had any borrowings as of December 31, 2019.
The Company had also established ancillary credit facilities by converting the commitments of select lenders under the €250.0 million RCF into bilateral credit agreements (usually overdraft facilities). Borrowings under ancillary lines reduce availability under the RCF but do not count toward debt drawn under the RCF for the purposes of determining whether the financial covenant under the Credit Agreement must be tested.
As of December 31, 2020, the ancillary facilities had $70.3 million (as of December 31, 2019: $26.4 million) outstanding. The general terms of these ancillary credit facilities are linked to the terms in the RCF.
During the second quarter 2020, the Company established two additional ancillary facilities in an aggregate amount of €40 million (bringing the number of RCF banks with whom ancillary facilities have been established to six out of ten banks and total ancillary borrowings to €170 million). Since June 30, 2020, the Company had converted 68% of its RCF into ancillary capacity, resulting in an ability to borrow the full amount of commitments under the RCF at any net leverage level. Using exchange rates applicable as of December 31, 2020 , the €250 million RCF amounted to approximately $307 million.
By converting the existing RCF commitments of select bank group participants, Orion has established local ancillary credit facilities for OEC GmbH and OEC LLC. As of December 31, 2020, the OEC GmbH facility had $43.5 million (prior year: $26.4 million) outstanding and the OEC LLC facility had $26.8 million (prior year: $2.2 million) outstanding.
Future Years Payment Schedule
The following table shows the residual terms of our Term Loan and its impact on our cash flows based on the agreed maturity date, the repayment schedule, and the total interest amounts. Implied three months Euro forward interest rates and implied U.S Dollar forward interest rates as applicable on December 31, 2020 were used to calculate the repayment amounts.

InterestScheduled RepaymentTotal
(In millions)
2021$15.0 $8.5 $23.5 
202214.9 8.5 23.3 
202315.1 8.5 23.6 
20248.9 642.5 651.4 
Total$53.9 $668.0 $721.8 
Covenant Compliance
The Credit Agreement contains certain non-financial covenants that, among other things, limit the Company’s ability and the ability of certain of its subsidiaries to (i) incur additional debt, (ii) pay dividends, repurchase shares or make certain other restricted payments or investments, (iii) incur liens, (iv) sell assets, (v) to pay dividends or to make other payments to the Company, (vi) enter into affiliate transactions, (vii) engage in sale and leaseback transactions, and (viii) consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets. These covenants are subject to significant exceptions and qualifications.
In addition, there is one financial covenant under the Credit Agreement, the First Lien Leverage Ratio (“FLLR”), defined as Consolidated First Lien Debt divided by Consolidated Adjusted EBITDA for the trailing twelve months (“TTM”). The FLLR is not permitted to exceed 5.5x TTM EBITDA and is tested each quarter RCF utilization exceeds 35%, as defined in the Credit Agreement (the “Covenant Trigger”). Notably, not all debt counts toward RCF utilization for purposes of calculating the Covenant Trigger, namely, term debt, debt drawn under ancillary credit facility lines and debt drawn under any uncommitted local credit lines are excluded. FLLR, Consolidated First Lien Debt and Consolidated Adjusted EBITDA have the meanings given to them in the Credit Agreement.
v3.20.4
Business Combination, Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Business Combination, Goodwill and Intangible Assets Business Combinations, Goodwill and Intangible Assets
Business Combination
On October 31, 2018, the acquisition for 100% of shares of the acetylene carbon black manufacturer Société du Noir d'Acétylène de l'Aubette, SAS (“SN2A”) from LyondellBasell Industries Holdings B.V. was completed. The acquisition was accounted for as a business combination. The acquisition had an aggregate purchase price of $36.8 million.
This acquisition is expected to strengthen the Company's position in the Specialty Carbon Black market by adding acetylene carbon black to its product portfolio. In finalizing the purchase price accounting during the third quarter of 2019, the previously disclosed purchase price allocation as of the closing date was updated to reflect adjustments existing at the acquisition date and identified during the measurement period under ASC 805 - Business Combinations.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition:
(in thousands)
Assets
Cash$213 
Other current assets176 
Accounts receivables1,578 
Inventories924 
Property, plant and equipment5,317 
Intangible assets12,766 
Total assets acquired$20,974 
Liabilities
Current liabilities$2,488 
Deferred tax liabilities4,716 
Total liabilities assumed$7,204 
Net assets acquired$13,770 
Consideration:
Cash consideration paid$36,784 
Goodwill$23,014 
The acquisition was accounted for using the acquisition method. Tangible and identifiable intangible assets acquired and liabilities assumed were recorded at fair value as of the acquisition date.
During the quarter ended September 30, 2019, we completed the purchase accounting for the acquisition of SN2A and we reduced the total fair value of intangible assets acquired from $44.3 million to $12.8 million based on an improved understanding of the allocation of future expected cash flows since the date of acquisition including an adjustment to the applied discount rate aligned to target specific considerations. In addition, we reduced the fair value of acquired property, plant and equipment from $5.8 million to $5.3 million due to third party appraisals and we reduced the related deferred tax liabilities from $13.7 million by $9.0 million to $4.7 million accordingly to reflect the impact of changes in fair values of the tangible and intangible assets. These changes resulted in $23.0 million of goodwill being recorded and allocated to our Specialty Carbon Black Segment. We also recorded a reduction in depreciation and amortization expense of $1.0 million and an increase in net income of $0.7 million respectively, in the third quarter of fiscal 2019 related to prior periods as a result of the changes in fair values of tangible and intangible assets and the associated deferred tax liabilities.
The fair values of identifiable assets and liabilities acquired were developed with the assistance of a third-party valuation firm. The fair value of acquired property, plant and equipment is valued at its "value-in-use" as there are no known plans to dispose of any assets. The fair value of acquired identifiable intangible assets was determined using the "income approach" on an individual asset basis. The key assumptions used in the calculation of the discounted cash flows include projected revenues, gross margin, operating expenses, and discount rate. The valuations and the underlying assumptions have been deemed reasonable by the Company’s management. There are inherent uncertainties and management judgment required in these determinations.
Goodwill
The carrying amount of goodwill attributable to each reportable segment for period ended December 31, 2020 is as follows:     
GoodwillRubberSpecialtyTotal
(In thousands)
Balance as of January 1, 2019$31,550 $23,996 $55,546 
Goodwill recorded in SN2A acquisition— 23,014 23,014 
Foreign currency impact(595)(624)(1,220)
Balance as of December 31, 2019$30,955 $46,385 $77,341 
Foreign currency impact2,857 4,282 7,139 
Balance as of December 31, 2020$33,812 $50,667 $84,480 
Qualitative impairment testing performed during the fiscal year for the Rubber and Specialty reporting units did not indicate a goodwill impairment.
Intangible Assets
The following table provides information regarding Orion's intangible assets:
December 31,
20202019
Gross Carrying ValueAccumulated AmortizationNet Intangible AssetsGross Carrying ValueAccumulated AmortizationNet Intangible Assets
(In thousands)
Developed technology and patents$69,419 $46,229 $23,189 $62,870 $37,402 $25,468 
Customer relationships83,055 75,985 7,070 76,531 69,514 7,017 
Trademarks21,106 13,142 7,964 19,322 10,764 8,558 
Long-term contracts8,156 1,260 6,896 7,430 630 6,800 
Other intangible assets53,845 52,192 1,653 52,708 49,955 2,753 
Total intangible assets$235,581 $188,809 $46,772 $218,862 $168,266 $50,596 
Intangible assets are amortized over their estimated useful lives, which range from 3 to 15 years. The weighted average amortization period for all intangible assets as of December 31, 2020 and 2019 was 9.8 years and 8.4 years, respectively. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $8.2 million, $12.9 million and $20.0 million, respectively, and is included in Cost of sales and Selling, general and administrative expenses in the Consolidated Statements of Operations.
Intangible assets include remeasurements due to the purchase price adjustment in the third quarter of 2019 of SN2A acquisition (see Note I.Business Combinations, Goodwill and Intangible Assets”
The estimated aggregate amortization expense for intangible assets for the fiscal years ending December 31, 2021 to 2025 and thereafter are as follows:
Year(In thousands)
2021$7,899 
20227,251 
20236,882 
20246,812 
20256,748 
Thereafter11,180 
Total aggregated amortization$46,772 
v3.20.4
Accruals and Other Liabilities
12 Months Ended
Dec. 31, 2020
Other Liabilities Disclosure [Abstract]  
Accruals and Other Liabilities Accruals and Other Liabilities
Current accrued liabilities consist of the following:
December 31
20202019
(In thousands)
Accrued employee compensation$21,635 $24,746 
Accrued liabilities for sales and procurement6,968 3,274 
Accrued liabilities for restructuring8,039 4,765 
Other accrued liabilities12,535 12,145 
Total$49,176 $44,931 
Other current liabilities consist of the following:
December 31
20202019
(In thousands)
Employee related liabilities$6,581 $4,787 
Customer down payments922 1,018 
Liabilities for environmental tax385 4,824 
Liabilities for withholding tax155 1,417 
Liabilities for VAT675 555 
Liabilities for property tax785 — 
Liabilities for outstanding invoices7,112 5,902 
Liabilities for leases12,077 7,598 
Other current liabilities7,983 6,407 
Total$36,676 $32,509 
Other long-term liabilities consist of the following:
December 31
20202019
(In thousands)
Employee related liabilities$5,855 $5,740 
Liabilities for asset retirement obligation1,666 2,938 
Environmental protection liabilities1,250 1,240 
Liabilities for leases74,526 21,463 
Other non-current liabilities22,833 9,320 
Total$106,131 $40,701 
For the years ended December 31, 2020 and 2019 no liabilities for ARO's were settled.
v3.20.4
Financial Instruments and Fair Value Measurement
12 Months Ended
Dec. 31, 2020
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, including cash flow and present value methods, 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.
The FASB authoritative guidance on fair value measurements defines fair value, provides a framework for measuring fair value, and requires certain disclosures about fair value measurements. The required disclosures focus on the inputs used to measure fair value. The guidance establishes the following hierarchy for categorizing these inputs:
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. There were no transfers of assets measured at fair value between Level 1 and Level 2 and there were no Level 3 investments during fiscal 2020 or 2019.
The following table shows the fair value measurement based on observable inputs such as interest rates and are classified as Level 2 within the fair value hierarchy:
December 31
DerivativeFair Value Hierarchy20202019
(In thousands)
Receivables from hedges/ derivatives$195 $8,436 
Prepaid expenses and other current assets FX hedges Level 2195 8,434 
Other financial assets (non-current)Level 2— 
Liabilities from derivatives$23,127 $9,425 
Other current liabilitiesFX hedgesLevel 2296 109 
Other liabilities (non-current) Cross currency and interest rate swapsLevel 222,831 9,316 
Term loanLevel 2$667,980 $643,051 
Local bank loansLevel 2$75,640 $29,762 
At both December 31, 2020 and 2019, the fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and short term borrowings and variable rate debt approximated their carrying values due to the short-term nature of these instruments.
See Note L-Accounting for Derivative Instruments and Hedging Activities for additional information related to derivatives and fair value.
v3.20.4
Accounting for Derivative Instruments and Hedging Activities
12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Accounting for Derivative Instruments and Hedging Activities Accounting for Derivative Instruments and Hedging Activities
Risk management
The Company’s business operations are exposed to changes in interest rates, foreign currency exchange rates and commodity prices because the Company finances certain operations through long and short-term borrowings, denominates transactions in a variety of foreign currencies and purchases certain commoditized raw materials. Changes in these rates and prices may have an impact on future cash flows and earnings. The Company manages these risks through normal operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments.
The Company has policies governing the use of derivative instruments and does not enter into financial instruments for trading or speculative purposes.
By using derivative instruments, the Company is subject to credit and market risk. If a counterparty fails to fulfill its performance obligations under a derivative contract, the Company’s credit risk will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a payment risk for the Company. The Company minimizes counterparty credit (or repayment) risk by entering into transactions with major financial institutions of investment grade credit rating. The Company’s exposure to market risk is not hedged in a manner that completely eliminates the effects of changing market conditions on earnings or cash flow. No significant concentration of credit risk existed as of December 31, 2020 and 2019.
Cash flow hedge
The Company has designated, as of November 28, 2014 the entire interest rate caps entered in 2014 and denominated in Euro with an initial nominal amount of €375.0 million against the Term Loan tranches denominated in Euro with an initial nominal amount of
€399.0 million, as well as the entire interest rate caps entered in 2014 and denominated in USD with an initial nominal amount of $350.0 million against Term Loan tranches denominated in USD with an initial nominal amount of $358.0 million with respect to quarterly interest payments exceeding a three months EURIBOR rate of 1.0% and a three months USD-LIBOR rate of 2.5% respectively. On November 14, 2017 the Company acquired floored forward interest rate swaps to hedge interest rate risk on current Euro-denominated term loan financing. On May 15, 2018 the Company entered into a $235.0 million cross-currency swap to hedge interest rate risk on current USD-denominated term loan financing which replaced the USD-denominated Caps terminated on May 14, 2018. In December 2020, the Company unwound $38.0 million of the $235.0 million cross currency swap maturing in 2024 at a realized loss of approximately $2.4 million. In a separate transaction occurring in December 2020, the Company unwound a $30 million swap maturing in 2021 at a realized loss of approximately $3.9 million.
The Company designated the Euro-denominated interest rate caps, the Euro-denominated interest rate swap at closing in November 2017 and the cross-currency swaps at closing in May 2018 in the same manner. The Company has performed a hedge effectiveness test based on the critical terms match method (prospectively) and the dollar offset test (retrospectively), both on designation date and as of December 31, 2020, which confirmed hedge effectiveness.
Net Investment Hedge
For net investment hedges, changes in the fair value of the effective portion of the derivatives’ gains or losses are reported as foreign currency translation gains or losses in AOCI while changes in the ineffective portion are reported in earnings. Effectiveness is assessed based on the hypothetical derivative method. The gains or losses on derivative instruments reported in AOCI are reclassified to earnings in the period in which earnings are affected by the underlying item, such as a disposal or substantial liquidations of the entities being hedged.
To reduce the Company's foreign currency exposure a portion of the U.S. Dollar denominated Term Loan was designated as a hedge of net investment in a foreign operation. Since January 1, 2015, the Company had designated $180.0 million of the total USD denominated term loan held by a Germany-based subsidiary as the hedging instrument to hedge the change in net assets of a US subsidiary, which is held by a Germany-based subsidiary, to manage foreign currency risk. Due to the new hedging approach and the new cross currency swap as described above, hedge accounting for the net investment hedge was discontinued on May 15, 2018. An unrealized loss of $2.2 million remains within other comprehensive income until it is recycled through profit and loss upon divestment of the hedged item.
See Note K-”Financial Instruments and Fair Value Measurement” for additional information related to derivatives and fair value.
v3.20.4
Employee Benefit Plans
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Provisions are established to cover defined 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.
In 2020 and 2019, Germany accounted for approximately 93.3% and 91.8%, respectively, of provisions for projected defined benefit pension plan obligations. There are also defined contribution pension plans in Germany and the United States for which the Company makes regular contributions to off-balance sheet pension funds managed by third party insurance companies.
In South Korea, the company’s pension plan provides, at the option of employees for either projected benefit or defined contribution benefits. Plan assets relating to this plan reduce the pension provision disclosed.
Obligations and Funded Status
The following provides information about projected benefit obligations, plan assets, the funded status and weighted-average assumptions of the defined benefit pension plan:
Change in Projected Benefit ObligationDecember 31
20202019
(In thousands)
Present value of projected benefit obligation at the beginning of the year$79,389 $67,623 
Actuarial (gain)/ loss4,926 11,983 
Service cost561 588 
Interest cost1,185 1,694 
Benefits paid(1,680)(1,346)
Other— — 
Curtailments, settlements, special and contractual termination benefits— — 
Currency translation6,878 (1,153)
Present value of projected benefit obligation at the end of the year$91,259 $79,389 
Based on the weighted Macaulay method the projected benefit obligation has a duration of 21.0 years (prior year: 21.0 years).
Change in Plan AssetsDecember 31
20202019
(In thousands)
Fair value of plan assets at the beginning of the year$6,580 $6,391 
Actual return on plan assets125 119 
Employer contributions275 552 
Actuarial gain/(loss)— — 
Benefits paid(525)(277)
Settlement— — 
Other adjustments— — 
Currency translation377 (205)
Fair value of plan assets at the end of the year$6,831 $6,580 
The plan assets are held by Orion Engineered Carbons Co. Ltd. Korea, Bupyeong-gu, South Korea, and relate to qualifying insurance policies. These insurance policies do not have a quoted market price. The actual return on plan assets amounted to $0.1 million and $0.1 million for the years ended December 31, 2020 and 2019, respectively.
Net Funded Status December 31
20202019
(In thousands)
Projected benefit obligation$91,259 $79,389 
Fair value of plan assets6,831 6,580 
Net funded status$84,428 $72,809 

Amount Recognized in the Consolidated Balance Sheets December 31
20202019
(In thousands)
Non-current assets$— $— 
Current liabilities1,118 908 
Non-current liabilities83,310 71,901 
Net liability recognized - pension plans$84,428 $72,809 
Pension Assumptions and Strategy
The assumptions in the table below were used in the actuarial valuation of the underlying the obligations:
AssumptionsDecember 31
20202019
Discount rate0.6 %1.0 %
Expected long-term rate of return on plan assets2.0 %2.0 %
Rate of compensation/salary increase3.0 %3.0 %
Future pension increase1.5 %1.5 %
MortalityHeubeck
2018G
Heubeck
2018G
Mortality is based on Heubeck guidelines, the generally accepted biometric calculation bases for the balance sheet valuation of pension obligations in Germany. A 0.5% increase or decrease in the discount rate or in the future pension increase would have impacted the projected benefit obligation as follows:
SensitivitiesDecember 31, 2020
Discount rateFuture pension increase
0.5% decrease0.5% increase0.5% decrease0.5% increase
(In thousands)
Impact on projected benefit obligation$8,779 $(7,612)$(11,527)$12,797 

Net Periodic Pension Cost (Benefit)
Years Ended December 31,
202020192018
(In thousands)
Service cost$561 $588 $604 
Interest cost1,185 1,694 1,758 
Expected return on plan assets(125)(119)(174)
Past service cost/(income) and other adjustments— — 253 
Net periodic pension cost$1,621 $2,163 $2,441 
Effective at the end of 2013, all defined benefit plans in Germany were modified to close access to new participants and freeze benefits accrued under these plans at December 31, 2013 levels. Interest expense on the frozen obligation relating to these plans will continue to accrue. In addition, one program during the year ended December 31, 2016 ceased due to the closure of our Ambès (France) plant.
The total expected defined benefit pension contribution amounts to $1.7 million in 2020.
The Company paid $12.5 million, $13.9 million and $12.8 million for the years ended December 31, 2020, 2019 and 2018, respectively, for state defined contribution pension schemes (statutory pension insurance) in Germany and other countries. This amount is also recognized as personnel expenses.
Estimated Future Benefit Payments
The Company expects that the following benefit payments will be made to plan participants in the years from 2021 to 2030:
Benefit payments(In thousands)
2021$1,579 
2022$1,990 
2023$2,116 
2024$2,814 
2025$2,551 
2026 - 2030$14,251 
The Company does not anticipate making funding contributions to the Pension Plan in 2021.
Amounts Recognized in Accumulated Other Comprehensive (Income)/Loss
Overall net actuarial loss amounted to $5.3 million and comprises $4.9 million pension-related and $0.4 million other personnel-related costs.
Amounts recognized in AOCI as of December 31, 2020 and 2019 related to the Company's defined benefit pension plan were as follows:
Accumulated Other Comprehensive (Income) / LossDecember 31
20202019
(In thousands)
Net actuarial (gain) loss$4,926 $11,983 
Net prior service cost— — 
Balance in accumulated other comprehensive (income) / loss
$4,926 $11,983 
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2021:
2021
(In thousands)
Net actuarial (gain) loss$4,999 
Prior service cost (credit)— 
Net amount recognized$4,999 
Plan Assets
The fair value (all Level 2) of Orion's pension plan assets as of December 31, 2020 and 2019, by asset category, is as follows:
December 31
20202019
(In thousands)
Other securities
6,831 6,580 
Total pension plan assets
$6,831 $6,580 

Defined Contribution Plans
We provide tax-qualified retirement contribution plans in the United States for the benefit of all full-time employees. The plans are designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis. For the years ended December 31, 2020, 2019 and 2018 the Company contributions to the Employee Savings Plans were $2.6 million, $2.9 million and $2.9 million, respectively.
v3.20.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
On an annual basis since 2015, the Company has implemented a long-term incentive plan ("LTIP") which grants awards to employees and officers selected by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Performance-based Restricted Stock Unit (“PSU”) awards are earned based on achievement against one or more performance metrics established by the Compensation Committee in respect of a specified performance period. Earned PSUs range from zero to a specified maximum percentage of a participant’s target award based on the achievement of applicable performance metrics, and are subject to vesting terms based on continued employment. All PSUs are granted under, and are subject to the terms and conditions of, the Company’s 2014 Omnibus Incentive Compensation Plan (the “Omnibus Plan”).
The Company also issues Restricted Stock Units (“RSU”) in certain instances, under the LTIP plans, as sign-on incentives and one-time grants for employees who are non-participants in the LTIP plans. These RSUs vest ratably over a three-year period and vesting occurs on the anniversary of the hire date related to the sign-on grants and the grant date for the grants to employees who are non-participants in the LTIP plans.
Under the LTIP plans, the PSU vesting period is three years with cliff vesting occurring on December 31 of the second full year subsequent to the date of the grant. For example, if a PSU grant was issued in June 2020 the PSUs would fully vest on December 31, 2022 with no ratable vesting during the vesting period. The RSUs vesting period is ratably over three years starting on January 1 in the year of the grant. For example, the employee would earn one third of the RSU on December 31 starting in the year of the grant and the remaining two thirds each December 31 for 2 years immediately subsequent to the year of the grant.
In April 2018, the Compensation Committee established a stock compensation plan for the Board of Directors under the existing Omnibus Incentive Compensation Plan.
The following table provides detail as to expenses recorded within operating income with respect to stock based compensation:
Years Ended December 31,
202020192018
(In thousands)
2015 Plan
$— $— $777 
2016 Plan
— 1,083 4,566 
2017 Plan
— 3,016 5,052 
Stock compensation plan for Board of Directors
400 561 563 
2018 Plan
2,094 3,435 2,961 
Individual RSU incentive544 453 — 
2019 Plan
871 891 — 
2020 Plan525 — — 
Total expenses$4,434 $9,438 $13,919 
In the following table summarizes the activity of our PSUs within year ended December 31, 2020:
Period granted
Performance period
PSUs outstanding at January 1,
PSUs grantedPerformance based adjustmentPSUs settledPSUs forfeitedPSUs outstanding at December 31,PSUs expected to vestWeighted average grant date fair value
20172017 - 2019418,252 — (40,087)(378,165)— — — $24.89 
20182018 - 2020355,766 — (351,406)— (4,360)— — $39.24 
20192019 - 2021229,727 1,278 — — (20,253)210,753 102,217 $11.48 
20202020 - 2022— 289,628 — — (2,029)287,599 202,766 $11.60 
Total 20201,003,745 290,906 (391,493)(378,165)(26,642)498,352 304,984 
Total 20191,594,990 332,891 299,499 (977,106)(246,529)1,003,745 917,255 
Total 20181,610,894 450,977 110,215 (557,337)(19,759)1,594,990 1,556,011 
In the following table summarizes the activity of our RSUs within year ended December 31, 2020:
Period grantedVesting periodRSUs outstanding January 1,RSUs grantedPerformance based adjustmentRSUs settledRSUs forfeitedRSUs outstanding at December 31,RSUs expected to vestWeighted average grant date fair value
Individual RSU incentive:
20182018 - 202123,878 — — — — 23,878 23,878 $25.81 
20192019 - 202245,257 — — — — 45,257 45,257 $15.89 
20202020-2023— 19,000 — — — 19,000 19,000 $12.78 
LTIP Plans:
20192019 - 2021128,447 1,278 — — (8,057)121,669 121,770 $14.74 
20202020 - 2022— 162,652 — — (2,029)160,623 155,825 $12.51 
Total 2020197,582 182,930 — — (10,086)370,427 365,730 
Total 201935,817 219,197 — (11,939)(45,493)197,582 197,582 
Total 2018— 35,817 — — — 35,817 35,817 
Certain members of our Board of Directors receive compensation in form of restricted shares (“RSs”) in accordance with the 2014 Non-employee Director Plan. Under this plan 78,656 RSs are currently outstanding. The RSs will vest and become non-forfeitable on the first anniversary of the grant date.
As of December 31, 2020, we had unrecognized compensation cost of $5.1 million, based on the target amounts, related to unvested PSUs, RSUs and RSs, which is expected to be recognized over a weighted average period of 1.5 years. The closing price of the Company's shares and therefore the intrinsic value of one PSU or RSU outstanding was $17.14 as of December 31, 2020, $19.30 as of December 31, 2019 and $25.28 as of December 31, 2018. Total intrinsic value of PSUs and RSUs amounted to $14.9 million, $23.2 million and $41.2 million as of December 31, 2020, 2019, and 2018 respectively.
The following table lists the inputs to the valuation model used for calculating the grant date fair values under the 2020, 2019 and 2018 Plans:
2020 Plan PSU2019 Plan PSU2018 Plan PSU
Expected term (in years)333
Dividend yield (%)—%4.65%1.94%
Expected volatility OEC (%)60.84%33.30%30.22%
Expected volatility peer group (%)33.22%17.62%20.09%
Correlation 0.72270.52050.3659
Risk-free interest rate (%)0.14%1.83%1.46%
Model usedMonte CarloMonte CarloMonte Carlo
Weighted average fair value of PSUs granted$11.60$11.48$39.24
In March 2020, 378,165 PSUs (including a performance adjustment reduction of 40,087 PSUs) were settled for the 2017 Plan. In April 2019, 977,106 PSUs (including performance adjustment of 299,499 PSUs) were exercised for the 2016 Plan. In April 2018, 557,337 PSUs (including performance adjustment of 110,215 PSUs) were exercised for the 2015 Plan. The expected term of share awards represents the weighted average period the share awards are expected to remain outstanding. The remaining contractual terms of share units outstanding is December 2021 for the 2019 Plan and December 2022 for the 2020 Plan.
The Company used a combination of historical and implied volatility of its traded shares, or blended volatility, in deriving the expected volatility assumption. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of stock options. The dividend yield assumption is based on the Company's history.
Stock-based compensation expense is comprised of the following line items:
Years Ended December 31,
202020192018
(In thousands)
Cost of sales
$299 $139 $55 
Selling expenses
462 1,412 2,711 
General and administrative expenses
3,408 7,364 10,394 
Research and development costs
265 523 759 
Stock-based compensation expense
$4,434 $9,438 $13,919 
The assumption for estimating expected forfeitures is based on previous experience and based on a 3% rate per year. Actual forfeitures are recorded as they occur. For the full year 2020 expenses recorded in prior years for 2018 and 2019 Plan were partially reversed as the performance condition for the EBITDA and ROCE metrics are no longer expected to be met.
v3.20.4
Restructuring Expenses
12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring Expenses Restructuring Expenses
Details of all restructuring activities and the related reserves for December 31, 2020, 2019 and 2018 were as follows:
Personnel
expenses
Demolition and
Removal costs
Ground
remediation
costs
OtherTotal
(In thousands)
Provision at January 1, 2018$646 $2,824 $4,317 $930 $8,717 
Charges7,586 1,978 2,919 3,137 15,620 
Cost charged against liabilities (assets)(324)(14)(833)(8)(1,180)
Cash paid(5,825)(2,182)(3,259)(3,202)(14,468)
Foreign currency translation adjustment252 (64)(206)(13)(32)
Provision at December 31, 20182,334 2,541 2,939 844 8,658 
Charges2,801 268 3,080 
Cost charged against liabilities (assets)— — — — — 
Cash paid(1,727)(1,953)(2,610)(508)(6,798)
Foreign currency translation adjustment(9)(36)(109)(20)(175)
Provision at December 31, 20193,400 561 488 317 4,765 
Charges3,228 146 4,185 — 7,559 
Cost charged against liabilities (assets)— — — — — 
Cash paid(3,219)(476)(449)(315)(4,460)
Foreign currency translation adjustment150 (1)28 (2)174 
Provision at December 31, 2020$3,559 $229 $4,251 $ $8,039 
Orion's reserves for restructuring of its Rubber segment in 2020 are reflected in accrued liabilities on the Consolidated Balance Sheets.
In 2016, the Company ceased operations at its plant in Ambes, France as part of the restructuring of it Rubber business segment. Expenses related to the closing include personnel costs, demolition, removal costs and remediation costs and were $6.5 million, none and $3.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Total estimated and recognized costs and total costs remaining as of December 31, 2020 are $42.4 million and $8.0 million, respectively.
The restructuring of the South Korean footprint concluded in the second quarter of 2018 resulting in cessation of production at the Bupyeong plant and the sale of the land to a third party. Restructuring income of $40.3 million reflects the proceeds of the land sale less the remaining book value of the land. Restructuring expenses comprise required costs for land restoration of $7.2 million and cost to consolidate the two South Korean production sites into one remaining site, including in particular personnel related termination costs of $4.4 million incurred in fiscal year 2018.
In the periods ending December 31, 2020 and 2019 restructuring expense, net amounted to $7.6 million and $3.6 million, respectively. For the year ended December 31, 2018 restructuring income, net was $24.6 million.
v3.20.4
Accumulated Other Comprehensive Income (Loss)
12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
Changes in each component of AOCI, net of tax, are as follows for fiscal 2020, 2019 and 2018:

Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2018$(554)$(1,801)$(2,965)$(5,320)
Other comprehensive income/(loss) before reclassifications(8,918)(6,349)198 (15,069)
Income tax effects before reclassifications(1,178)1,719 (64)477 
Currency translation AOCI— 284 — 284 
Balance at December 31, 2018(10,650)(6,147)(2,831)(19,628)
Other comprehensive income (loss) before reclassifications(1,454)(7,283)(12,288)(21,026)
Income tax effects before reclassifications(177)2,454 4,020 6,297 
Currency translation AOCI— 85 (90)(5)
Balance at December 31, 2019(12,281)(10,891)(11,189)(34,362)
Other comprehensive income (loss) before reclassifications(13,098)(2,640)(5,336)(21,074)
Income tax effects before reclassifications(1,164)699 1,751 1,285 
Amounts reclassified from AOCI— — 9,916 9,916 
Income tax effects on reclassifications— — (3,253)(3,253)
Currency translation AOCI— (653)(564)(1,217)
Balance at December 31,2020$(26,543)$(13,485)$(8,676)$(48,705)
The amounts reclassified out of AOCI and into the Consolidated Statement of Operations for the fiscal year ended December 31, 2020 are presented in the table below. There were no reclassifications in 2019 and 2018.
Years Ended December 31,
2020
(In thousands)
Amortization of actuarial losses (gains)(recorded in interest and other finance expense, net)$9,916 
Total before tax9,916 
Tax impact(3,253)
Total after tax$6,663 
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 $9.9 million,for the year end December 31, 2020.
v3.20.4
Earnings Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit for the year (numerator) attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares arising from exercising all dilutive ordinary shares (denominator).
The following table reflects the income and share data used in the basic and diluted EPS computations:
Years Ended December 31,
202020192018
Net income for the period - attributable to ordinary equity holders of the parent (in thousands)$18,156 $86,920 $121,310 
Weighted average number of ordinary shares (in thousands of shares)60,430 59,986 59,567 
Basic EPS$0.30 $1.45 $2.04 
Dilutive effect of share based payments (in thousands of shares)977 1,313 1,482 
Weighted average number of diluted ordinary shares (in thousands of shares)61,407 61,300 61,049 
Diluted EPS$0.30 $1.42 $1.99 
In 2018, repurchases of treasury shares were taken into account on a daily basis. In 2018, 2019 and 2020 new shares were generated and transferred for settlement of stock based compensation ("2015 Plan",”2016 Plan", "RSU Plan", and “2017 Plan”), which was also included in the weighted number of shares. The dilutive effect of the share-based payment transaction is the weighted number of shares considering the grant date, forfeitures and executions during the respective fiscal years. The effect is determined by using the treasury stock method.
v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Tax provision (benefit) for income taxes consisted of the following:
Years Ended December 31,
202020192018
(In thousands)
Current
Domestic (1)
$16,267 $16,250 $9,166 
Foreign4,011 1,140 41,412 
Total20,279 17,390 50,578 
Deferred
Domestic (1)
$(4,875)$7,412 $6,164 
Foreign(7,271)8,414 (9,798)
Total(12,146)15,826 (3,634)
Provision for income taxes$8,132 $33,216 $46,944 
(1) Domestic refers to Germany.
Income before income taxes for fiscal years 2020, 2019 and 2018 is as follows:
Years Ended December 31,
202020192018
(In thousands)
Domestic (1)
$25,556 $112,427 $115,594 
Foreign732 7,710 52,660 
Income before income taxes$26,288 $120,137 $168,254 
(1) Domestic refers to Germany.
A corporate income tax rate of 15.00% was used to calculate the current and deferred taxes for the German entities. A solidarity surcharge of 0.825% (calculated as 5.5% on the corporate income tax rate) and a trade tax rate of 16.18%, for the years ended December 31, 2020, 2019 and 2018, respectively, were also reflected in the calculation. As a result, the overall tax rate for the German entities was 32.00%, for the years ended December 31, 2020, 2019 and 2018 respectively. The current and deferred taxes for the non-German entities were calculated using their respective country-specific tax rates.
The following tax reconciliation shows the difference between the expected income taxes using the German overall tax rate of 32.0% and the effective income taxes in the income statement, for the years ended December 31, 2020, 2019 and 2018, respectively. The German tax rate is applied because the primary operating entity located in Germany holds all non-German operations.
Years Ended December 31,
202020192018
(In thousands)
Income before income taxes$26,288 $120,137 $168,254 
Expected income tax thereon8,412 38,444 53,841 
Tax rate differential(1,412)(3,517)(6,695)
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes(1,311)450 (204)
Change in the tax rate and tax laws(118)115 (802)
Income taxes for prior years(1,205)(3,247)876 
Tax on non-deductible interest expenses1,051 1,232 1,096 
Taxes on other non-deductible expenses, and non-deductible taxes2,755 745 (893)
Effects of changes in permanent differences— (45)96 
Tax effect on tax-free income(169)(898)(532)
Other tax effects130 (63)161 
Effective income taxes as reported$8,132 $33,216 $46,944 
Effective tax rate30.93 %27.65 %27.90 %

The U.S. tax reform enacted in December 2017 reduced the corporate income tax rate from 35.0% to 21.0% in the U.S..
Other non-deductible expenses and non-deductible taxes which are non-creditable in the U.S. were $0.9 million, $2.3 million and $1.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Non-deductible taxes include taxes from Brazil which is a disregarded entity for U.S. tax purposes.
Tax rate differential for the year ended December 31, 2018 are mainly driven by a benefit $6.3 million from taxable income resulting from a land sale completed in Korea during 2018.
Income taxes for prior year ended December 31, 2019 are mainly driven by result of the conclusion of a tax audit in Poland.
The favorable tax effect from income taxes for prior years was mainly driven by return to provision adjustments from tax return filings in 2020. The amounts accrued for the return to provision adjustments were released accordingly in 2020.
Tax effect from changes in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes for the year ended December 31, 2020 included the impact from lower pre-tax earnings attributed to the economic downturn from COVID-19. Also included was a benefit from the favorable change of the valuation allowance related to U.S. tax credits of $3.6 million.
The unfavorable tax effect from other non-deductible expenses and non-deductible taxes were mainly driven by non-deductible expenses in connection with the Company’s LTIP.
Income tax expense recognized in the Consolidated Statements of Operations were $8.1 million in 2020, $33.2 million in 2019 and $46.9 million in 2018. Tax expense/(benefit) recognized directly in equity were $(1.1) million in 2020, $6.2 million in 2019 and $0.3 million in 2018.
Significant components of deferred income taxes were as follows:
Deferred tax assetsDecember 31
20202019
(In thousands)
Assets
   Intangible assets$241 $197 
   Property, plant and equipment5,851 8,363 
   Financial assets11,138 7,004 
   Inventories3,368 2,817 
   Receivables, other assets3,365 3,212 
Liabilities
   Provisions24,710 20,662 
   Liabilities32,810 41,434 
Other
Loss carryforwards39,753 39,595 
Interest carryforwards11,227 9,967 
Tax credits4,265 3,185 
Other— 2,028 
Total deferred tax assets (gross)136,729 138,463 
Valuation allowance(42,669)(41,994)
Total deferred tax assets (net)$94,060 $96,468 

Deferred tax liabilitiesDecember 31
20202019
(In thousands)
Assets
   Intangible assets$3,717 $3,673 
   Property, plant and equipment36,426 33,040 
   Financial assets3,153 7,649 
   Receivables, other assets12,553 11,883 
Liabilities
   Provisions7,882 8,203 
   Liabilities5,947 12,568 
Other10,589 14,039 
Total deferred tax liabilities$80,267 $91,057 
The following table illustrates the gross and net deferred tax positions after the application of jurisdictional netting.
Net deferred tax positionDecember 31
20202019
(In thousands)
Deferred tax assets
Gross deferred tax assets$94,060 $96,468 
Net deferred tax assets52,563 48,720 
Deferred tax liabilities
Gross deferred tax liabilities80,267 91,057 
Net deferred tax liabilities38,770 43,308 
Net deferred tax asset / (liability) positions$13,793 $5,412 
Management assesses the recoverability of deferred tax assets. The assessment depends on future taxable profits being generated during the periods in which tax measurement differences reverse and tax loss carryforwards can be claimed. Orion expects that sufficient taxable income will be available to recover deferred tax assets.
As of December 31, 2020 and 2019, certain loss carryforwards were subject to restrictions with respect to the offsetting of losses. No deferred tax assets were recorded on these loss carryforwards if it is not likely that they will be utilized by future taxable income.
The following tax loss and interest carryforwards were recognized as of December 31, 2020 and 2019 (gross amounts):
December 31
20202019
(In thousands)
Corporate income tax loss carryforwards $147,270 $149,237 
Interest carryforwards for tax purposes35,338 31,463 
Total$182,608 $180,700 
The change between the recognized tax loss and interest carryforwards as of December 31, 2020 compared to 2019 is mainly driven by the taxable income of our German Tax Group and other German entities.
No deferred tax assets were recognized for the following items (gross amounts):
December 31
20202019
(In thousands)
Deductible temporary differences$46,287 $41,994 
Corporate income tax loss carryforwards 115,078 107,110 
Interest carryforwards for tax purposes35,338 31,463 
Total$196,703 $180,567 
The following table provides detail surrounding the expiration dates of the gross amount of tax loss carryforwards and tax credits:
Net operating loss carryforwards Tax Credits
(In thousands)
2021 to 2027$— $— 
2028 and thereafter45,458 — 
Indefinite carryforwards101,812 4,265 
Total$147,270 $4,265 
As of December 31, 2020, the company's net operating loss carryforwards primarily relate to net operating losses which are due to expire at various dates, but not later than 2036.
No deferred taxes were recognized on a taxable temporary difference of $12.6 million (prior years: 2019: $14.8 million, 2018: $11.8 million) in connection with subsidiaries.
Deferred tax liabilities amounting $0.8 million, (2019: $1.7 million, 2018: $1.8 million) were recognized for subsidiaries for which a dividend distribution is expected.
We are not aware of any events which would cause temporary differences, for which a deferred tax liability has not been recognized.
Tax uncertainties
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the following fiscal years:
20202019
(In thousands)
Balance at beginning of the year$11,616 $14,771 
Additions based on tax positions related to the current year146 246 
Additions for tax positions of prior year1,263 — 
Reductions of tax positions of prior year— (3,401)
Reductions related to settlements— — 
Reductions from lapse of statute of limitations— — 
Balance at end of the year$13,025 $11,616 
We recognize interest related to unrecognized tax benefits and penalties as income tax expense. During 2020 we accrued no penalties and interest of $1.1 million to the unrecognized tax benefits (noted above). As of December 31, 2020, we had $5.1 million of accrued penalties and interest. We recognized no liabilities for penalties and accrued interest of $0.5 million during 2019 and had an accrual of $4.0 million as of December 31, 2019 for penalties and interest while we recognized no liabilities for penalties and accrued $0.5 million interest during 2018. We accrued penalties and interest in total $3.4 million as of December 31, 2018.
Orion and certain subsidiaries are under audit in several jurisdictions, and in particular in Germany for periods 2011-2017. A further change in unrecognized tax benefits may occur within the next twelve months related to the potential settlement of one or more of these audits or the lapse of applicable statutes of limitations. The estimated range of the impact on unrecognized tax benefits cannot be determined at this time.
v3.20.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Other Long-Term Commitments
To safeguard the supply of raw materials, contractual purchase commitments under long-term supply agreements for raw materials, primarily oil and gas, are in place with the following maturities:
MaturityDecember 31, 2020
(In thousands)
2021$125,358 
2022 to 202577,029 
2026 and thereafter— 
Total$202,387 
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. The 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 the 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 Q. “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 consent decree 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 will install 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 the 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 $123.1 million has been incurred to date. To narrow this range, the Company pursues further scope design and estimation efforts. However, the actual total capital expenditures we might need to incur in order 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 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 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 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 exceed the scope of the indemnity in the tens of millions of US dollars. 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.
See “Item 1A. Risk-Factors-Risks Related to Indebtedness, Currency Exposure and Other Financial Matters-Our agreements with Evonik in connection with the Acquisition require us to indemnify Evonik with respect to certain aspects of our business and require Evonik to indemnify us for certain retained liabilities. We cannot offer assurance that we will be able to enforce claims under these indemnities as we expect.”
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. The current principal amounts of the outstanding term loans under the Credit Agreement as of December 31, 2020 are $277.7 million (U.S. Dollar Term Loan), and €390.3 million (Euro Term Loan).
As of December 31, 2020, the Company had thirteen guarantees totaling $17.6 million issued by various financial institutions.
v3.20.4
Financial Information by Segment & Geographic Area
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Financial Information by Segment & Geographic Area Financial Information by Segment & Geographic Area
Segment information
The Company’s business is organized by its two carbon black product types. For corporate management purposes and all periods presented, the Company had Rubber Carbon Black and Specialty Carbon Black as reportable operating segments. Rubber carbon black is used in the reinforcement of rubber in tires and mechanical rubber goods, Specialty carbon black products are used as pigments and performance additives in coatings, polymers, printing and special applications.
The following table shows the relative size of the revenue recognized in each of the Company’s reportable segment:
202020192018
Rubber61 %66 %65 %
Specialty39 %34 %35 %
The senior management team, which is comprised of the CEO, CFO and certain other senior management members, is the chief operating decision maker (“CODM”). The senior management team monitors the operating segments’ results separately in order to facilitate decisions regarding the allocation of resources and determine the segments’ performance. Orion uses Adjusted EBITDA as the segments' performance measure. The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.
Adjustments are not allocated to the individual segments as they are managed on a group basis.
Segment reconciliation for the years ended December 31, 2020, 2019 and 2018:
RubberSpecialtiesCorporateTotal segments
(In thousands)
2020
Net sales from external customers$691,174 $445,208 $ $1,136,383 
Adjusted EBITDA$90,127 $109,916 $ $200,043 
Corporate charges— — (28,643)(28,643)
Depreciation and amortization of intangible assets and property, plant and equipment(56,968)(39,558)— (96,526)
Excluding equity in earnings of affiliated companies, net of tax(493)— — (493)
Income from operations before income tax expense and finance costs32,667 70,358 (28,643)74,382 
Interest and other financial expense, net— — (38,671)(38,671)
Reclassification of actuarial losses from AOCI— — (9,916)(9,916)
Income tax expense— — (8,132)(8,132)
Equity in earnings of affiliated companies, net of tax493 — — 493 
Net income$18,156 
Assets$789,290 $466,943 $133,561 $1,389,793 
Total expenditures for additions to long-lived assets$111,499 $27,286 $— $138,785 
2019
Net sales from external customers$967,899 $508,454 $ $1,476,353 
Adjusted EBITDA$145,170 $122,167 $ $267,337 
Corporate charges— — (22,916)(22,916)
Depreciation and amortization of intangible assets and property, plant and equipment(58,645)(38,067)— (96,713)
Excluding equity in earnings of affiliated companies, net of tax(558)— — (558)
Income from operations before income tax expense and finance costs85,967 84,100 (22,916)147,151 
Interest and other financial expense, net— — (27,572)(27,572)
Income tax expense— — (33,216)(33,216)
Equity in earnings of affiliated companies, net of tax558 — — 558 
Net income$86,920 
Assets$696,516 $417,834 $143,043 $1,257,394 
Total expenditures for additions to long-lived assets$132,556 $26,147 $— $158,703 
2018
Net sales from external customers$1,032,818 $545,385 $ $1,578,203 
Adjusted EBITDA$144,887 $149,255 $ $294,142 
Corporate charges— — 910 910 
Depreciation and amortization of intangible assets and property, plant and equipment(57,127)(41,029)— (98,156)
Excluding equity in earnings of affiliated companies, net of tax(591)— — (591)
Income from operations before income tax expense and finance costs87,169 108,226 910 196,305 
Interest and other financial expense, net— — (28,642)(28,642)
Income tax expense— — (46,944)(46,944)
Equity in earnings of affiliated companies, net of tax591 — — 591 
Net income$121,310 
Assets$685,243 $436,337 $151,442 $1,273,022 
Total expenditures for additions to long-lived assets$67,885 $43,171 $— $111,057 
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.
Income from operations before income taxes and finance costs of the segment 'Corporate’ comprises the following:
202020192018
(In thousands)
Restructuring expenses/(income)$7,559 $3,628 $(24,633)
Consulting fees related to Company strategy— 1,280 4,804 
Extraordinary expense items related to COVID-193,866 — — 
Long Term Incentive Plan4,434 9,438 13,919 
EPA-related expenses5,228 3,992 2,703 
Other non-operating7,556 4,578 2,297 
Expenses/(income) from operations before income taxes and finance costs$28,643 $22,916 $(910)

Geographic information
Net salesYears Ended December 31,
202020192018
(In thousands)
Germany$486,452 $593,769 $628,709 
United States289,482 394,349 401,935 
South Korea173,452 241,235 279,016 
Brazil64,823 94,541 95,611 
China60,145 63,149 75,638 
South Africa33,998 54,746 56,373 
Other19,486 23,601 24,293 
Rest of Europe (1)
8,547 10,964 16,628 
Total$1,136,383 $1,476,353 $1,578,203 
(1) Only a holding company is located in Luxembourg, accordingly no revenue is generated in the country of domicile.
For the year ended December 31, 2020, one customer accounted for 10% or more revenue in the Rubber segment and amounted to $170.3 million. Revenue from the largest customer in the Rubber segment for the year ended December 31, 2019 was $195.6 million and for the year ended December 31, 2018 was $201.7 million. Another customer had 10% or more revenue for the periods 2019 and 2018 amounting to $104.1 million and $96.8 million, respectively.
Long-lived tangible assets(1)
December 31
20202019
(In thousands)
Germany$147,878 $81,388 
Sweden27,85626,419
Italy60,46343,547
Poland12,93312,148
Rest of Europe (2)
10,7276,179
Subtotal Europe259,857169,681
United States258,181220,200
South Korea120,551112,303
South Africa13,07615,983
Brazil17,16623,662
China27,23519,655
Other103100
Total$696,169 $561,585 
(1) Long-lived assets include property. plant and equipment, net and Operating lease right-of-use assets
(2) Only a holding company is located in Luxembourg, accordingly no revenue is generated in the country of domicile.
v3.20.4
Related Parties
12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Related Parties Related Parties    
As of December 31, 2020, related parties included one joint venture of Orion that is accounted for using the equity method, "Deutsche Gaßrußwerke" (DGW), and one shareholder of more than 10%.
Related parties include key management personnel having authority and responsibility for planning, directing and monitoring the activities of the Company directly or indirectly and their close family members.
In the normal course of business Orion from time to time receives services from, or sells products to, related unconsolidated parties, in transactions that are either not material or approved in accordance with our Related Party Transaction Approval Policy.
December 31,
20202019
(In thousands)
Trade receivables from DGW KG$— $537 
Trade payables to DGW KG$11,800 $17,671 

Years Ended December 31,
202020192018
(In thousands)
Purchased carbon black products from DGW KG$68,849 $89,404 $93,536 
Sales and services provided to DGW KG$1,639 $2,724 $6,464 
v3.20.4
Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited) Quarterly Financial Information (Unaudited)
Unaudited financial results by quarter for fiscal 2020 and 2019 are summarized below:
Quarters EndedYear Ended
March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2020
(In thousands, except per share amounts)
Net sales$336,007 $202,648 $282,036 $315,692 $1,136,383 
Gross profit$90,193 $33,944 $79,182 $89,030 $292,348 
Income from operations$37,543 $(12,879)$24,147 $25,571 $74,382 
Income from operations before income tax expense and equity in earnings of affiliated companies$25,534 $(23,810)$11,106 $12,966 $25,795 
Net income$18,032 $(17,780)$8,997 $8,906 $18,156 
Earnings per Share (USD per share), basic$0.30 $(0.30)$0.15 $0.15 $0.30 
Earnings per Share (USD per share), diluted$0.29 $(0.29)$0.15 $0.15 $0.30 
Quarters EndedYear Ended
March 31, 2019June 30, 2019September 30, 2019December 31, 2019December 31, 2019
(In thousands, except per share amounts)
Net sales$384,714 $399,016 $370,195 $322,428 $1,476,353 
Gross profit$97,969 $104,038 $98,714 $88,987 $389,708 
Income from operations$34,699 $41,470 $38,386 $32,596 $147,151 
Income from operations before income tax expense and equity in earnings of affiliated companies$28,256 $33,904 $31,886 $25,533 $119,579 
Net income$18,954 $24,748 $24,253 $18,965 $86,920 
Earnings per Share (USD per share), basic$0.32 $0.41 $0.40 $0.32 $1.45 
Earnings per Share (USD per share), diluted$0.32 $0.40 $0.39 $0.31 $1.42 
v3.20.4
Subsequent Events
12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsThe Company has evaluated events from December 31, 2020 through the date the financial statements were issued. There were no subsequent events that need disclosure.
v3.20.4
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Adoption of accounting standards / Recent accounting pronouncements Orion’s audited consolidated financial statements are comprised of Orion Engineered Carbons S.A. and its subsidiaries (“Orion”, “Company”, “we”, and “our”). The Company's fiscal year comprises the period from January 1, 2020 to December 31, 2020. Recent Accounting Pronouncements
Recently Adopted Accounting Standards
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted this guidance as of January 1, 2021. The adoption of this guidance will not have a material impact on the Company's financial statements.
In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (ASU 2019-11). The amendments in this update represents changes to clarify, correct errors in, or improve the codification, and make the codification easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-11 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted in any interim period after the issuance of ASU 2019-11 as long as the entity has adopted the amendments in ASU No. 2016-13. The Company adopted ASU 2019-11 as of January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s financial statements.
In August 2018, the FASB issued ASU No 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. The guidance changes the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. It eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. The guidance is effective for financial statements issued for fiscal years ending after December 15, 2020 for public business entities and fiscal years ending after December 15, 2021 for all other entities. Early adoption is permitted. Entities will apply the amendments retrospectively. The Company adopted ASU No 2018-14 as of January 1, 2020. The adoption of this guidance did not have a significant impact on the Company's financial statements.
In June 2016, the FASB issued ASU No. 2016-13, Measurement of Financial Losses on Credit Instruments. The standard introduces a new "expected loss" impairment model that applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables and other financial assets. Entities are required to estimate expected credit losses over the life of financial assets and record an allowance against the assets’ amortized cost basis to present them at the amount expected to be collected. The new standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company adopted this standard on January 1, 2020. The adoption of this standard did not materially impact the Company’s consolidated financial statements.
Recently Issued Accounting Standards Not Yet Adopted
In March 2020, the 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). The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements.
In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), 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. The Company is currently evaluating the potential impact the adoption of this standard will have on its financial statements.
Principles of consolidation
Principles of consolidation
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and are prepared in US Dollars, the presentation currency of the Company. The consolidated financial statements include the accounts of Orion and its wholly-owned subsidiaries and majority-owned and controlled U.S. and non-U.S. subsidiaries. Additionally, Orion considers consolidation of entities over which control is achieved through means other than voting rights, of which there were none in the periods presented. Intercompany transactions have been eliminated in consolidation.
Use of estimates
Use of estimates and assumptions
We make estimates and use judgments and assumptions in the preparation of our consolidated financial statements that affect the timing and amount of assets, liabilities, equity, revenues and expenses recorded and disclosed. The more significant estimates and judgments relate to revenue recognition, asset impairment, income taxes, inventories, goodwill, pension benefits, and environmental liabilities. Actual outcomes could differ from our estimates, resulting in changes in revenues or costs that could have a material impact on the Company’s results of operations, financial position, or cash flows.
Foreign currency translation Foreign currency translationThe functional currency of the majority of the Company’s foreign subsidiaries is the local currency in which the subsidiary operates. The results of operations for foreign subsidiaries are translated from these functional currencies into U.S. dollars using the average monthly currency exchange rates. Assets and liabilities are translated into U.S. dollars using exchange rates at the balance sheet dates, and we record the resulting foreign currency translation adjustments as a separate component of Accumulated other comprehensive loss in equity. Foreign currency transaction gains and losses are recorded, as incurred, as Interest and other financial expense, net in the consolidated statements of operations.
Revenue recognition / Cost of sales
Revenue recognition
The Company recognizes revenue when a performance obligation has been satisfied by transferring a good or a service to a customer. Revenue is only recognized when control is transferred to the customer. The amount of revenue, the transaction price, is contractually specified between the parties and is measured at the amount expected to be received less value-added tax, if applicable, and any trade discounts and volume rebates granted. We also give our customers a limited right to return product that has been damaged, does not satisfy their specifications, or other specific reasons. Payment terms on product sales to our customers typically range from 30 to 90 days. Although certain exceptions exist where standard payment terms are exceeded, these instances are infrequent and do not exceed one year and therefore we do not consider there to be a significant financing component associated with the contract.
Shipping and handling costs incurred in connection with the satisfaction of performance obligations are accounted for as fulfillment activities and recorded as sales revenue. Shipping and handling costs are expensed in the period incurred and included in Cost of sales within the Consolidated Statements of Operations.
The Company records a provision for warranty costs, based on historical trends of warranty costs incurred as a percentage of sales, which management has determined to be a reasonable estimate of the probable losses to be incurred for warranty claims in a period.
Cost of sales
Cost of Sales consists of the raw and packaging materials, direct manufacturing costs, depreciation, inspection costs, inbound freight cost and shipping, internal handling costs and other overhead expenses necessary to manufacture the products.
Selling and administrative expenses
Selling and administrative expenses
Selling and administrative expenses consist of salaries and other compensation benefits of sales and office personnel, general office expenses and other expenses not directly related to manufacturing operations.
Research and development costs
Research and development costs
Research and development costs include salaries, equipment and material expenditures, and contractor fees and are expensed as incurred.
Income taxes
Income taxes
Our business operations are global in nature, and we are subject to taxes in numerous jurisdictions. Tax laws and tax rates vary substantially in these jurisdictions and are subject to change based on the political and economic climate in those countries. We file our tax returns in accordance with our interpretations of each jurisdiction’s tax laws.
Significant judgment is required in determining our worldwide provision for income taxes and recording the related tax assets and liabilities. In the ordinary course of our business, there are operational decisions, transactions, facts and circumstances, and calculations which make the ultimate tax determination uncertain. Furthermore, our tax positions are periodically subject to challenge by taxing authorities throughout the world. We have recorded reserves for taxes and associated interest and penalties that may become payable in future years as a result of audits by tax authorities. Any significant impact as a result of changes in underlying facts, law, tax rates, tax audit, or review could lead to adjustments to our income tax expense, our effective tax rate, and/or our cash flow. Current income tax receivables and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. They are calculated based on the tax rates and tax laws that are enacted on the reporting date.
Deferred tax assets and liabilities are determined based on the estimated future tax effects of differences between financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred tax assets are recognized to the extent that realization of those assets is considered to be more likely than not. They are measured using statutory tax rates that are expected to apply to taxable income in the jurisdictions and years when the asset is realized or the liability is settled, based on tax rates that are enacted at the reporting date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
A valuation allowance is established for deferred taxes when it is more likely than not that all or a portion of the deferred tax assets will not be realized.
Orion records benefits for uncertain tax positions based on the assessment of whether the position is more likely than not to be sustained by taxing authorities. If the threshold is not met, no tax benefit of the uncertain tax position is recognized. If the threshold is met, the tax benefit that is recognized is the largest amount that is greater than 50% likely of being realized upon ultimate settlement. The analysis presumes the taxing authorities' full knowledge of the positions taken and all relevant facts, but does not consider the time value of money. The Company also accrues for interest and penalties on its uncertain tax positions and included such charges in its income tax provision in the Consolidated Statements of Operations.
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash
Cash and cash equivalents comprise bank balances, checks and cash on hand. They include all highly liquid investments with a maturity of three months or less at date of acquisition.
Restricted cash comprises cash which is not available for immediate use and may not be utilized for any purpose until a certain event or events take place. A designation for short-term or long-term restricted cash is made based on the expected time of release or distribution.
Accounts and notes receivables Accounts and notes receivablesAccounts receivable are amounts due from customers for merchandise sold or services performed in the ordinary course of business and are carried at transaction price net of allowance for credit losses. Generally, interest is not charged on past due amounts. We monitor and evaluate collectability of receivables on an ongoing basis and consider whether an allowance for credit loss is necessary. Allowance for credit losses is measured using historical loss rates for the respective risk categories and incorporating forward-looking estimates. The corresponding expense for the credit loss allowance is reflected in Selling, general and administrative expenses. Accounts receivable are charged off when the accounts are deemed to no longer be collectible. Accounts receivables in China may at certain times be settled with the receipt of bank issued non-interest-bearing notes.
Financial instruments
Financial instruments
Orion’s financial instruments consist primarily of cash and cash equivalents, trade receivables, loans, miscellaneous financial assets, term loan, local bank loans, trade payables and derivative instruments. The carrying values of Orion’s financial instruments approximate fair value with the exception of variable rate long-term debt, which is recorded at amortized cost. The fair values of the Company’s financial instruments are based on quoted market prices, if such prices are available. In situations where quoted market prices are not available, the Company relies on valuation models to derive fair value. Such valuation takes into account the ability of the financial counterparty to perform and the Company’s own credit risk.
The Company uses derivative financial instruments primarily for purposes of hedging the exposures to fluctuations in foreign currency exchange and interest rates, which exist as part of its ongoing business operations. Orion does not enter into derivative contracts for speculative purposes, nor does it hold or issue any derivative contracts for trading purposes. All derivatives are recognized on the Consolidated Balance Sheets at fair value. Where the Company has a legal right to offset derivative settlements under a master netting agreement with a counterparty, derivatives with that counterparty are presented on a net basis. The changes in the fair value of derivatives are recorded in Interest and other financial expense, net in the Statement of Operations or AOCI, depending on whether the instrument is designated as part of a hedge transaction and, if designated as part of a hedge transaction, the type of hedge transaction. The gains or losses on derivative instruments reported in AOCI are reclassified to earnings in the period in which earnings are affected by the underlying hedged item. The ineffective portion of all hedges is recognized in earnings during the period in which the ineffectiveness occurs.
In accordance with Orion’s risk management strategy, the Company may enter into certain derivative instruments that may not be designated as hedges for hedge accounting purposes. Although these derivatives are not designated as hedges, the Company believes that such instruments are closely correlated with the underlying exposure, thus managing the associated risk. The Company records the gains or losses from changes in the fair value of derivative instruments that are not designated as hedges in Interest and other financial expense, net in the Statement of Operations. Cash movements associated with these instruments are presented in the Consolidated Statements of Cash Flows as Cash Flows from Operating Activities because the derivatives are designed to mitigate risk to the Company’s cash flow from operations. The cash flows related to the principal amount of outstanding debt instruments are presented in the Cash Flows from Financing Activities section of the Consolidated Statements of Cash Flows.
Inventories InventoriesWe value inventory at the lower of cost or net realizable value, with cost determined utilizing the average cost method. We periodically evaluate the net realizable value of inventories based primarily upon their age, but also upon assumptions of future usage in production, customer demand and market conditions. Inventories have been reduced to the lower of cost or net realizable value by allowances for slow moving or obsolete goods. If actual circumstances are less favorable than those projected by management in its evaluation of the net realizable value of inventories, additional write-downs may be required.
Investments
Investments
The Company has an investment in DGW (Kommanditgesellschaft Deutsche Gasrußwerke GmbH & Co) and DGW GmbH (Kommanditgesellschaft Deutsche Gasrußwerke GmbH & Co) which is accounted for using the equity method as the Company has the ability to exert significant influence over the affiliates’ operating and financial policies.
Intangible assets and goodwill
Intangible assets and goodwill
We record tangible and intangible assets acquired and liabilities assumed in business combinations under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. We use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination. The determination of the fair value of intangible assets requires the use of significant judgment with regard to assumptions used in the valuation model. We estimate the fair value of identifiable acquisition-related intangible assets principally based on projections of cash flows that will arise from these assets. The projected cash flows are discounted to determine the fair value of the assets at the dates of acquisition.
Definite-lived intangible assets, which are comprised of trademarks, customer relationships and developed technologies, are amortized over their estimated useful lives and are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets.
Goodwill is comprised of the purchase price of business acquisitions in excess of the fair value assigned to the net tangible and identifiable intangible assets acquired. Goodwill is not amortized and is subject to impairment testing annually, or when events or changes in the business environment indicate that the carrying value of the reporting unit may exceed its fair value.
Intangible assets with finite useful lives, which are comprised of trademarks, customer relationships and developed technologies, are amortized on a straight line basis over their estimated useful lives of 3-15 years. The useful lives of intangibles related to customer relationships acquired in business combinations are estimated on the basis of contractual arrangements and the probability of a continuing relationship.
If events or changes in circumstances indicate that the carrying amount of an intangible asset may not be recoverable, it is tested for impairment, see below in this note under “Impairment test“. The useful lives of intangible assets with finite useful lives are re-assessed annually.
Asset Impairment
Intangible Assets and Goodwill
Intangible assets with finite lives are reviewed for impairment when indication of potential impairment exists, such as a significant reduction in cash flows associated with the assets.
Goodwill is tested for impairment at the reporting unit level annually or more frequently if triggering events occur or as deemed necessary. A reporting unit, for the purpose of the impairment test, is at or below the operating segment level, and constitutes a business for which discrete financial information is available and regularly reviewed by segment management. Specialty Carbon Black and Rubber Carbon Black which are considered separate reporting units, carried our goodwill balances as of December 31, 2020.
Our annual measurement date for testing impairment is as of September 30, 2020. For the purpose of the goodwill impairment test, we first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an initial qualitative assessment identifies that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, an additional quantitative evaluation is performed. Alternatively, we may elect to proceed directly to the quantitative goodwill impairment test. If based on the quantitative evaluation the fair value of the reporting unit is less than its carrying amount, a goodwill impairment loss would result. The goodwill impairment loss would be the amount by which the carrying value of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The fair value of a reporting unit is based on discounted estimated future cash flows. The fair value is also benchmarked against the value calculated from a market approach using the guideline public company method. The assumptions used to estimate fair value include management’s best estimates of future growth rates, operating cash flows, capital expenditures and discount rates over an estimate of the remaining operating period at the reporting unit level. Based on our most recent annual goodwill impairment test performed as of September 30, 2020, the fair values of the Specialty Carbon Black and Rubber Carbon Black reporting units were in excess of their carrying values.
Long-lived Assets
The Company assesses long-lived assets such as property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Long-lived assets to be held and used are assessed for possible impairment by comparing their carrying values with their associated undiscounted, future net cash flows. Events that can trigger assessments for possible impairments include significant decreases in the market value of an asset, significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life.
To test for impairment of assets, Orion generally uses a probability-weighted estimate of the future undiscounted net cash flows of the related assets over their remaining lives to determine if the value of the asset is recoverable. Long-lived assets are grouped with other assets and liabilities at the lowest level for which independent identifiable cash flows are determinable.
An asset impairment is recognized when the carrying value of the asset is not recoverable based on the analysis described above, in which case the asset is written down to its fair value. Any write-downs are treated as permanent reductions in the carrying amount of the assets. If the asset does not have a readily determinable market value, a discounted cash flow model may be used to determine the fair value of the asset. In circumstances when an asset does not have separate identifiable cash flows, an impairment charge is recorded when the Company no longer intends to use the asset. An impairment loss may not be reversed if the fair value of the impaired asset or asset group increases subsequently.
Property, plant and equipment
Property, plant and equipment
Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation of property, plant and equipment is calculated using the straight-line method over the expected useful lives of the related assets. The depreciable lives for Buildings, Plant and machinery as well as Furniture, fixtures and office equipment are between 5 and 50 years, 3 and 25 years, and 3 and 25 years, respectively. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are removed from the Consolidated Balance Sheets and resulting gains or losses are included in other expenses, net in the Consolidated Statements of Operations.
Expenditures for repairs and maintenance are charged to expenses as incurred. Expenditures for major renewals and improvements, which significantly extend the useful lives of the existing property, plant and equipment, are capitalized and depreciated.
Asset retirement obligations
Asset retirement obligations
Orion estimates incremental costs for special handling, removal and disposal of materials that may or will give rise to conditional asset retirement obligations (“ARO”) and then discounts the expected costs back to the current year using a credit adjusted risk free rate.
Orion recognizes ARO liabilities and costs when the timing and/or settlement can be reasonably estimated.
Leases
Leases
We determine if an arrangement is a lease at inception of a contract. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense. We have lease agreements which require payments for lease and non-lease components and have elected to account for these as a single lease component related to our other operating facilities.
Leases with an initial term of 12 months or less are not recorded on the Balance Sheet and lease expense is recognized in the Consolidated Statements of Operations on a straight-line basis over the lease term.
Pension benefit plans
Pension benefit plans
Our defined benefit pension obligations are measured in accordance with the projected unit credit method. The calculations and the resulting amounts recorded in our consolidated financial statements are affected by assumptions including the discount rate, expected long-term rate of return on plan assets, the annual rate of change in compensation for plan-eligible employees, mortality tables, and other factors. We evaluate the assumptions used on an annual basis. The Company recognizes the total actuarial gains or losses recorded in accumulated other comprehensive income exceeding 10% of the defined benefit obligation in the following year through profit and loss separately from its income from operations.
Defined contribution obligations arise from commitments and state pension schemes (statutory pension insurance). We account for our contributions to a defined contribution plan on an accrual basis. An asset or liability may result from advance payments or payments due, respectively, to a defined contribution fund.
Stock-based compensation
Stock-based compensation
Orion recognizes stock-based compensation cost measured at the grant date based on the fair value of the award, and recognizes these costs as expense over the service period, which generally represents the vesting period, includes an estimate of the awards that will be forfeited and also includes an estimate of awards that expect to vest based on the anticipated achievement of performance conditions. Fair value of awards is determined by using a Monte-Carlo simulation.
Awards can be classified as either equity or liability-settled dependent on the Company's obligation to the counterparty and the intended settlement method. The overarching principle focuses on whether an equity relationship is created through the award. Orion classifies its awards as equity settled. Once earned and vested, certain awards can be settled in one share of Company common stock per vested award (or, at the Company’s election, cash equal to the fair market value thereof). Certain awards are settled for cash at fair market value to cover wage taxes or as a substitute for share transfer restrictions.
When the terms of an equity-settled award are modified, the minimum expense recognized is the expense had the terms not been modified, if those original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based compensation transaction, or is otherwise beneficial to the employee as measured at the date of modification. Any modifications are accounted for as a new award, which might result in a lower amount of compensation cost than the grant date fair value of the original award or a greater amount of compensation costs than the sum of the grant date fair value of the original award plus the incremental fair value.
Environmental provisions Environmental provisionsWe accrue for environmental remediation costs and other obligations when it is probable that a liability has been incurred and we can reasonably estimate the amount. The amount accrued reflects our assumptions about remediation requirements at the contaminated site, the nature of the remedy, the outcome of discussions with regulatory agencies and other potentially responsible parties at multi-party sites, and the number and financial viability of other potentially responsible parties. We do not reduce its estimated liability for possible recoveries from insurance carriers. Proceeds from insurance carriers are recorded when realized by either the receipt of cash or a contractual agreement. We determine the timing and amount of any liability based upon assumptions regarding future events. Inherent uncertainties exist in such evaluations primarily due to unknown conditions and other circumstances, changing governmental regulations and legal standards regarding liability, and evolving technologies. We adjust these liabilities periodically as remediation efforts progress or as additional technical or legal information becomes available.
Restructuring expenses
Restructuring expenses
Restructuring expenses could include both termination benefits and asset write downs. We estimate accruals for termination benefits based on various factors including length of service, contract provisions, local legal requirements, projected final service dates, and salary levels. We also analyze the carrying value of long-lived assets and record estimated accelerated depreciation through the anticipated end of the useful life of the assets affected by the restructuring or record an asset impairment. In all likelihood, this accelerated depreciation will result in reducing the net book value of those assets to zero at the date operations cease. While we believe that changes to our estimates are unlikely, the accuracy of our estimates depends on the successful completion of numerous actions. Changes in our estimates could increase our restructuring costs to such an extent that it could have a material impact on the Company’s results of operations, financial position, or cash flows. Other events, such as negotiations with unions and works councils, may also delay the resulting cost savings.
Concentrations of credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, derivative instruments and undrawn amounts under the Revolving Credit Facility (“RCF”).
Our cash in demand deposit accounts may exceed federally insured limits and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Credit risk is mitigated as we place the cash mainly with our defined core banks which are major financial institutions with investment grade long-term credit ratings.
Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our Rubber Carbon Black segment. During 2020, sales to our ten largest customers within our Rubber Carbon Black segment accounted for approximately 66% of total consolidated segment sales. Sales to our ten largest customers within our Specialty Carbon Black segment accounted for approximately 25% of total consolidated segment sales. Sales to our top ten customers on a total consolidated basis accounted for approximately 39% of our consolidated net sales. A default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers of specific industries which can be affected by a downturn in the economy. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers including considerations of future macroeconomic expectations. An allowance is recorded in our consolidated financial statements for these estimated amounts. The concentration of customer credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion.
If a counterparty fails to fulfill its performance obligations under a derivative contract, our exposure will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a payment risk for the Company. We minimize counterparty credit or repayment risk by entering into these transactions with major financial institutions of investment grade credit rating. See Note K-”Financial Instruments and Fair Value Measurements” for additional information on our derivative contracts.
If an RCF lender fails to fulfill its performance obligations, with respect to making funds available, under the credit agreement, Orion’s credit risk comprises a potential cash shortage/refinancing risk amounting to the respective bank's commitment amount. With regard to the allocation of the total RCF amount all the lenders ins the syndicate carry investment grade long-term credit ratings. See Note H-”Debt and Other Obligations” for additional information on our revolving credit facility
We believe there is no significant concentration of risk as of December 31 ,2020.
Concentrations of credit risk
Concentrations of credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, accounts receivable, derivative instruments and undrawn amounts under the Revolving Credit Facility (“RCF”).
Our cash in demand deposit accounts may exceed federally insured limits and could be negatively impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. Credit risk is mitigated as we place the cash mainly with our defined core banks which are major financial institutions with investment grade long-term credit ratings.
Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our Rubber Carbon Black segment. During 2020, sales to our ten largest customers within our Rubber Carbon Black segment accounted for approximately 66% of total consolidated segment sales. Sales to our ten largest customers within our Specialty Carbon Black segment accounted for approximately 25% of total consolidated segment sales. Sales to our top ten customers on a total consolidated basis accounted for approximately 39% of our consolidated net sales. A default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers of specific industries which can be affected by a downturn in the economy. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers including considerations of future macroeconomic expectations. An allowance is recorded in our consolidated financial statements for these estimated amounts. The concentration of customer credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion.
If a counterparty fails to fulfill its performance obligations under a derivative contract, our exposure will equal the fair value of the derivative. Generally, when the fair value of a derivative contract is positive, the counterparty owes the Company, thus creating a payment risk for the Company. We minimize counterparty credit or repayment risk by entering into these transactions with major financial institutions of investment grade credit rating. See Note K-”Financial Instruments and Fair Value Measurements” for additional information on our derivative contracts.
If an RCF lender fails to fulfill its performance obligations, with respect to making funds available, under the credit agreement, Orion’s credit risk comprises a potential cash shortage/refinancing risk amounting to the respective bank's commitment amount. With regard to the allocation of the total RCF amount all the lenders ins the syndicate carry investment grade long-term credit ratings. See Note H-”Debt and Other Obligations” for additional information on our revolving credit facility
We believe there is no significant concentration of risk as of December 31 ,2020.
v3.20.4
Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
Cash, cash equivalents and restricted cash are as follows:
December 31
20202019
(In thousands)
Cash and cash equivalents$64,869 $63,726 
Restricted cash included in current and non-current assets2,996 4,505 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$67,865 $68,231 
Schedule of Restricted Cash
Cash, cash equivalents and restricted cash are as follows:
December 31
20202019
(In thousands)
Cash and cash equivalents$64,869 $63,726 
Restricted cash included in current and non-current assets2,996 4,505 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$67,865 $68,231 
v3.20.4
Leases (Tables)
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Schedule of Minimum Lease Payments
The undiscounted minimum lease payments are due in and reconcile to the discounted lease liabilities as follows:

December 31, 2020
(In thousands)
Next 12 months$12,077 
1 to 2 years10,890 
2 to 3 years9,976 
3 to 4 years8,330 
4 to 5 years7,212 
More than 5 years78,216 
Total undiscounted minimum lease payments$126,701 
Discount(40,099)
Lease liability (current and non-current)$86,603 
v3.20.4
Inventories (Tables)
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventory, Net
Inventories, net of obsolete, unmarketable and slow moving reserve, are as follows:
December 31
20202019
(In thousands)
Raw materials, consumables and supplies, net$57,011 $69,168 
Work in process322 148 
Finished goods, net84,128 95,483 
Total$141,461 $164,799 
v3.20.4
Property, Plant and Equipment, and right-of-use assets (Tables)
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment
Property, plant and equipment consists of the following:
December 31,
20202019
(In thousands)
Land$35,000 $33,654 
Land rights and buildings101,931 94,157 
Plant and machinery833,235 725,203 
Other equipment, furniture and fixtures37,564 30,965 
Prepayments and construction in progress176,323 138,374 
Total property, plant and equipment1,184,054 1,022,354 
Less: accumulated depreciation573,524 488,300 
Net property, plant and equipment$610,530 $534,054 
v3.20.4
Prepaid and other assets (Tables)
12 Months Ended
Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid and Other Assets
December 31
20202019
TotalThereof currentThereof non‑currentTotalThereof currentThereof non‑current
(In thousands)
Miscellaneous other receivables$42,116 $41,777 $339 $36,531 $36,189 $342 
Prepaid expenses5,292 2,674 2,617 4,529 1,170 3,359 
Total$47,408 $44,452 $2,956 $41,059 $37,358 $3,701 
v3.20.4
Accounts Receivable (Tables)
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Schedule of accounts receivable
The company accounts receivable are as follows:
December 31
20202019
(In thousands)
Accounts receivable$240,590 $219,197 
Expected credit losses(5,794)(6,632)
Accounts receivable, net of expected credit losses$234,796 $212,565 
Accounts receivable, expected credit loss
The company allowance for credit losses are as follows:
20202019
(In thousands)
Allowance for credit losses as of January 1,$(6,632)$(5,081)
Credit loss expense(3,965)(3,703)
Credit loss income and utilization4,924 1,209 
Foreign currency translation effects(120)943 
Allowance for credit losses as of December 31,$(5,794)$(6,632)
v3.20.4
Debt and Other Obligations (Tables)
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Debt Arrangements
The company arrangements are as follows:
December 31
20202019
(In thousands)
Current
Term loan$8,479 $8,057 
Deferred debt issuance costs-term loan
(1,500)(1,409)
Other short-term debt and obligations75,640 29,762 
Current portion of long-term debt and other financial liabilities82,618 36,410 
Non-current
Term loan659,502 634,994 
Deferred debt issuance costs-term loan(3,676)(4,733)
Other long-term debt and obligations— — 
Long-term debt, net655,826 630,261 
Total $738,444 $666,671 
Schedule of Maturities of Long-term Debt
The following table shows the residual terms of our Term Loan and its impact on our cash flows based on the agreed maturity date, the repayment schedule, and the total interest amounts. Implied three months Euro forward interest rates and implied U.S Dollar forward interest rates as applicable on December 31, 2020 were used to calculate the repayment amounts.

InterestScheduled RepaymentTotal
(In millions)
2021$15.0 $8.5 $23.5 
202214.9 8.5 23.3 
202315.1 8.5 23.6 
20248.9 642.5 651.4 
Total$53.9 $668.0 $721.8 
v3.20.4
Business Combination, Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition:
(in thousands)
Assets
Cash$213 
Other current assets176 
Accounts receivables1,578 
Inventories924 
Property, plant and equipment5,317 
Intangible assets12,766 
Total assets acquired$20,974 
Liabilities
Current liabilities$2,488 
Deferred tax liabilities4,716 
Total liabilities assumed$7,204 
Net assets acquired$13,770 
Consideration:
Cash consideration paid$36,784 
Goodwill$23,014 
Schedule of Goodwill
GoodwillRubberSpecialtyTotal
(In thousands)
Balance as of January 1, 2019$31,550 $23,996 $55,546 
Goodwill recorded in SN2A acquisition— 23,014 23,014 
Foreign currency impact(595)(624)(1,220)
Balance as of December 31, 2019$30,955 $46,385 $77,341 
Foreign currency impact2,857 4,282 7,139 
Balance as of December 31, 2020$33,812 $50,667 $84,480 
Schedule of Intangible Assets
The following table provides information regarding Orion's intangible assets:
December 31,
20202019
Gross Carrying ValueAccumulated AmortizationNet Intangible AssetsGross Carrying ValueAccumulated AmortizationNet Intangible Assets
(In thousands)
Developed technology and patents$69,419 $46,229 $23,189 $62,870 $37,402 $25,468 
Customer relationships83,055 75,985 7,070 76,531 69,514 7,017 
Trademarks21,106 13,142 7,964 19,322 10,764 8,558 
Long-term contracts8,156 1,260 6,896 7,430 630 6,800 
Other intangible assets53,845 52,192 1,653 52,708 49,955 2,753 
Total intangible assets$235,581 $188,809 $46,772 $218,862 $168,266 $50,596 
Schedule of Future Amortization Expense
The estimated aggregate amortization expense for intangible assets for the fiscal years ending December 31, 2021 to 2025 and thereafter are as follows:
Year(In thousands)
2021$7,899 
20227,251 
20236,882 
20246,812 
20256,748 
Thereafter11,180 
Total aggregated amortization$46,772 
v3.20.4
Accruals and Other Liabilities (Tables)
12 Months Ended
Dec. 31, 2020
Other Liabilities Disclosure [Abstract]  
Schedule of Current Accrued Liabilities and Other Current Liabilities
Current accrued liabilities consist of the following:
December 31
20202019
(In thousands)
Accrued employee compensation$21,635 $24,746 
Accrued liabilities for sales and procurement6,968 3,274 
Accrued liabilities for restructuring8,039 4,765 
Other accrued liabilities12,535 12,145 
Total$49,176 $44,931 
Other current liabilities consist of the following:
December 31
20202019
(In thousands)
Employee related liabilities$6,581 $4,787 
Customer down payments922 1,018 
Liabilities for environmental tax385 4,824 
Liabilities for withholding tax155 1,417 
Liabilities for VAT675 555 
Liabilities for property tax785 — 
Liabilities for outstanding invoices7,112 5,902 
Liabilities for leases12,077 7,598 
Other current liabilities7,983 6,407 
Total$36,676 $32,509 
Schedule of Other Long-term Liabilities
Other long-term liabilities consist of the following:
December 31
20202019
(In thousands)
Employee related liabilities$5,855 $5,740 
Liabilities for asset retirement obligation1,666 2,938 
Environmental protection liabilities1,250 1,240 
Liabilities for leases74,526 21,463 
Other non-current liabilities22,833 9,320 
Total$106,131 $40,701 
v3.20.4
Financial Instruments and Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements
The following table shows the fair value measurement based on observable inputs such as interest rates and are classified as Level 2 within the fair value hierarchy:
December 31
DerivativeFair Value Hierarchy20202019
(In thousands)
Receivables from hedges/ derivatives$195 $8,436 
Prepaid expenses and other current assets FX hedges Level 2195 8,434 
Other financial assets (non-current)Level 2— 
Liabilities from derivatives$23,127 $9,425 
Other current liabilitiesFX hedgesLevel 2296 109 
Other liabilities (non-current) Cross currency and interest rate swapsLevel 222,831 9,316 
Term loanLevel 2$667,980 $643,051 
Local bank loansLevel 2$75,640 $29,762 
v3.20.4
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations
Change in Projected Benefit ObligationDecember 31
20202019
(In thousands)
Present value of projected benefit obligation at the beginning of the year$79,389 $67,623 
Actuarial (gain)/ loss4,926 11,983 
Service cost561 588 
Interest cost1,185 1,694 
Benefits paid(1,680)(1,346)
Other— — 
Curtailments, settlements, special and contractual termination benefits— — 
Currency translation6,878 (1,153)
Present value of projected benefit obligation at the end of the year$91,259 $79,389 
Schedule of Changes in Fair Value of Plan Assets
Change in Plan AssetsDecember 31
20202019
(In thousands)
Fair value of plan assets at the beginning of the year$6,580 $6,391 
Actual return on plan assets125 119 
Employer contributions275 552 
Actuarial gain/(loss)— — 
Benefits paid(525)(277)
Settlement— — 
Other adjustments— — 
Currency translation377 (205)
Fair value of plan assets at the end of the year$6,831 $6,580 
Schedule of Net Funded Status
Net Funded Status December 31
20202019
(In thousands)
Projected benefit obligation$91,259 $79,389 
Fair value of plan assets6,831 6,580 
Net funded status$84,428 $72,809 
Schedule of Amounts Recognized in Balance Sheet
Amount Recognized in the Consolidated Balance Sheets December 31
20202019
(In thousands)
Non-current assets$— $— 
Current liabilities1,118 908 
Non-current liabilities83,310 71,901 
Net liability recognized - pension plans$84,428 $72,809 
Schedule of Assumptions Used
The assumptions in the table below were used in the actuarial valuation of the underlying the obligations:
AssumptionsDecember 31
20202019
Discount rate0.6 %1.0 %
Expected long-term rate of return on plan assets2.0 %2.0 %
Rate of compensation/salary increase3.0 %3.0 %
Future pension increase1.5 %1.5 %
MortalityHeubeck
2018G
Heubeck
2018G
Mortality is based on Heubeck guidelines, the generally accepted biometric calculation bases for the balance sheet valuation of pension obligations in Germany. A 0.5% increase or decrease in the discount rate or in the future pension increase would have impacted the projected benefit obligation as follows:
SensitivitiesDecember 31, 2020
Discount rateFuture pension increase
0.5% decrease0.5% increase0.5% decrease0.5% increase
(In thousands)
Impact on projected benefit obligation$8,779 $(7,612)$(11,527)$12,797 
Schedule of Net Benefit Costs
Years Ended December 31,
202020192018
(In thousands)
Service cost$561 $588 $604 
Interest cost1,185 1,694 1,758 
Expected return on plan assets(125)(119)(174)
Past service cost/(income) and other adjustments— — 253 
Net periodic pension cost$1,621 $2,163 $2,441 
Schedule of Expected Benefit Payments
The Company expects that the following benefit payments will be made to plan participants in the years from 2021 to 2030:
Benefit payments(In thousands)
2021$1,579 
2022$1,990 
2023$2,116 
2024$2,814 
2025$2,551 
2026 - 2030$14,251 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Amounts recognized in AOCI as of December 31, 2020 and 2019 related to the Company's defined benefit pension plan were as follows:
Accumulated Other Comprehensive (Income) / LossDecember 31
20202019
(In thousands)
Net actuarial (gain) loss$4,926 $11,983 
Net prior service cost— — 
Balance in accumulated other comprehensive (income) / loss
$4,926 $11,983 
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2021:
2021
(In thousands)
Net actuarial (gain) loss$4,999 
Prior service cost (credit)— 
Net amount recognized$4,999 
Schedule of Allocation of Plan Assets
The fair value (all Level 2) of Orion's pension plan assets as of December 31, 2020 and 2019, by asset category, is as follows:
December 31
20202019
(In thousands)
Other securities
6,831 6,580 
Total pension plan assets
$6,831 $6,580 
v3.20.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense
The following table provides detail as to expenses recorded within operating income with respect to stock based compensation:
Years Ended December 31,
202020192018
(In thousands)
2015 Plan
$— $— $777 
2016 Plan
— 1,083 4,566 
2017 Plan
— 3,016 5,052 
Stock compensation plan for Board of Directors
400 561 563 
2018 Plan
2,094 3,435 2,961 
Individual RSU incentive544 453 — 
2019 Plan
871 891 — 
2020 Plan525 — — 
Total expenses$4,434 $9,438 $13,919 
Summary of Activity of PSUs
In the following table summarizes the activity of our PSUs within year ended December 31, 2020:
Period granted
Performance period
PSUs outstanding at January 1,
PSUs grantedPerformance based adjustmentPSUs settledPSUs forfeitedPSUs outstanding at December 31,PSUs expected to vestWeighted average grant date fair value
20172017 - 2019418,252 — (40,087)(378,165)— — — $24.89 
20182018 - 2020355,766 — (351,406)— (4,360)— — $39.24 
20192019 - 2021229,727 1,278 — — (20,253)210,753 102,217 $11.48 
20202020 - 2022— 289,628 — — (2,029)287,599 202,766 $11.60 
Total 20201,003,745 290,906 (391,493)(378,165)(26,642)498,352 304,984 
Total 20191,594,990 332,891 299,499 (977,106)(246,529)1,003,745 917,255 
Total 20181,610,894 450,977 110,215 (557,337)(19,759)1,594,990 1,556,011 
Summary of Activity of RSUs
In the following table summarizes the activity of our RSUs within year ended December 31, 2020:
Period grantedVesting periodRSUs outstanding January 1,RSUs grantedPerformance based adjustmentRSUs settledRSUs forfeitedRSUs outstanding at December 31,RSUs expected to vestWeighted average grant date fair value
Individual RSU incentive:
20182018 - 202123,878 — — — — 23,878 23,878 $25.81 
20192019 - 202245,257 — — — — 45,257 45,257 $15.89 
20202020-2023— 19,000 — — — 19,000 19,000 $12.78 
LTIP Plans:
20192019 - 2021128,447 1,278 — — (8,057)121,669 121,770 $14.74 
20202020 - 2022— 162,652 — — (2,029)160,623 155,825 $12.51 
Total 2020197,582 182,930 — — (10,086)370,427 365,730 
Total 201935,817 219,197 — (11,939)(45,493)197,582 197,582 
Total 2018— 35,817 — — — 35,817 35,817 
Model for Calculating Fair Value
The following table lists the inputs to the valuation model used for calculating the grant date fair values under the 2020, 2019 and 2018 Plans:
2020 Plan PSU2019 Plan PSU2018 Plan PSU
Expected term (in years)333
Dividend yield (%)—%4.65%1.94%
Expected volatility OEC (%)60.84%33.30%30.22%
Expected volatility peer group (%)33.22%17.62%20.09%
Correlation 0.72270.52050.3659
Risk-free interest rate (%)0.14%1.83%1.46%
Model usedMonte CarloMonte CarloMonte Carlo
Weighted average fair value of PSUs granted$11.60$11.48$39.24
Components of Stock-based Compensation Expense
Stock-based compensation expense is comprised of the following line items:
Years Ended December 31,
202020192018
(In thousands)
Cost of sales
$299 $139 $55 
Selling expenses
462 1,412 2,711 
General and administrative expenses
3,408 7,364 10,394 
Research and development costs
265 523 759 
Stock-based compensation expense
$4,434 $9,438 $13,919 
v3.20.4
Restructuring Expenses (Tables)
12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Activities and Related Reserves
Details of all restructuring activities and the related reserves for December 31, 2020, 2019 and 2018 were as follows:
Personnel
expenses
Demolition and
Removal costs
Ground
remediation
costs
OtherTotal
(In thousands)
Provision at January 1, 2018$646 $2,824 $4,317 $930 $8,717 
Charges7,586 1,978 2,919 3,137 15,620 
Cost charged against liabilities (assets)(324)(14)(833)(8)(1,180)
Cash paid(5,825)(2,182)(3,259)(3,202)(14,468)
Foreign currency translation adjustment252 (64)(206)(13)(32)
Provision at December 31, 20182,334 2,541 2,939 844 8,658 
Charges2,801 268 3,080 
Cost charged against liabilities (assets)— — — — — 
Cash paid(1,727)(1,953)(2,610)(508)(6,798)
Foreign currency translation adjustment(9)(36)(109)(20)(175)
Provision at December 31, 20193,400 561 488 317 4,765 
Charges3,228 146 4,185 — 7,559 
Cost charged against liabilities (assets)— — — — — 
Cash paid(3,219)(476)(449)(315)(4,460)
Foreign currency translation adjustment150 (1)28 (2)174 
Provision at December 31, 2020$3,559 $229 $4,251 $ $8,039 
v3.20.4
Accumulated Other Comprehensive Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Schedule of Changes in AOCI, Net of Tax
Changes in each component of AOCI, net of tax, are as follows for fiscal 2020, 2019 and 2018:

Currency Translation AdjustmentsHedging Activities AdjustmentsPension and Other Postretirement Benefit Liability AdjustmentTotal
(In thousands)
Balance at January 1, 2018$(554)$(1,801)$(2,965)$(5,320)
Other comprehensive income/(loss) before reclassifications(8,918)(6,349)198 (15,069)
Income tax effects before reclassifications(1,178)1,719 (64)477 
Currency translation AOCI— 284 — 284 
Balance at December 31, 2018(10,650)(6,147)(2,831)(19,628)
Other comprehensive income (loss) before reclassifications(1,454)(7,283)(12,288)(21,026)
Income tax effects before reclassifications(177)2,454 4,020 6,297 
Currency translation AOCI— 85 (90)(5)
Balance at December 31, 2019(12,281)(10,891)(11,189)(34,362)
Other comprehensive income (loss) before reclassifications(13,098)(2,640)(5,336)(21,074)
Income tax effects before reclassifications(1,164)699 1,751 1,285 
Amounts reclassified from AOCI— — 9,916 9,916 
Income tax effects on reclassifications— — (3,253)(3,253)
Currency translation AOCI— (653)(564)(1,217)
Balance at December 31,2020$(26,543)$(13,485)$(8,676)$(48,705)
Schedule of Amounts Reclassified out of AOCI
The amounts reclassified out of AOCI and into the Consolidated Statement of Operations for the fiscal year ended December 31, 2020 are presented in the table below. There were no reclassifications in 2019 and 2018.
Years Ended December 31,
2020
(In thousands)
Amortization of actuarial losses (gains)(recorded in interest and other finance expense, net)$9,916 
Total before tax9,916 
Tax impact(3,253)
Total after tax$6,663 
v3.20.4
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2020
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:
Years Ended December 31,
202020192018
Net income for the period - attributable to ordinary equity holders of the parent (in thousands)$18,156 $86,920 $121,310 
Weighted average number of ordinary shares (in thousands of shares)60,430 59,986 59,567 
Basic EPS$0.30 $1.45 $2.04 
Dilutive effect of share based payments (in thousands of shares)977 1,313 1,482 
Weighted average number of diluted ordinary shares (in thousands of shares)61,407 61,300 61,049 
Diluted EPS$0.30 $1.42 $1.99 
v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Tax Provision (Benefit) for Income Taxes
Tax provision (benefit) for income taxes consisted of the following:
Years Ended December 31,
202020192018
(In thousands)
Current
Domestic (1)
$16,267 $16,250 $9,166 
Foreign4,011 1,140 41,412 
Total20,279 17,390 50,578 
Deferred
Domestic (1)
$(4,875)$7,412 $6,164 
Foreign(7,271)8,414 (9,798)
Total(12,146)15,826 (3,634)
Provision for income taxes$8,132 $33,216 $46,944 
(1) Domestic refers to Germany.
Schedule of Income before Income Taxes
Income before income taxes for fiscal years 2020, 2019 and 2018 is as follows:
Years Ended December 31,
202020192018
(In thousands)
Domestic (1)
$25,556 $112,427 $115,594 
Foreign732 7,710 52,660 
Income before income taxes$26,288 $120,137 $168,254 
(1) Domestic refers to Germany.
Schedule of Effective Tax Rate Reconciliation The following tax reconciliation shows the difference between the expected income taxes using the German overall tax rate of 32.0% and the effective income taxes in the income statement, for the years ended December 31, 2020, 2019 and 2018, respectively. The German tax rate is applied because the primary operating entity located in Germany holds all non-German operations.
Years Ended December 31,
202020192018
(In thousands)
Income before income taxes$26,288 $120,137 $168,254 
Expected income tax thereon8,412 38,444 53,841 
Tax rate differential(1,412)(3,517)(6,695)
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes(1,311)450 (204)
Change in the tax rate and tax laws(118)115 (802)
Income taxes for prior years(1,205)(3,247)876 
Tax on non-deductible interest expenses1,051 1,232 1,096 
Taxes on other non-deductible expenses, and non-deductible taxes2,755 745 (893)
Effects of changes in permanent differences— (45)96 
Tax effect on tax-free income(169)(898)(532)
Other tax effects130 (63)161 
Effective income taxes as reported$8,132 $33,216 $46,944 
Effective tax rate30.93 %27.65 %27.90 %
Schedule of Significant Components of Deferred Income Taxes
Significant components of deferred income taxes were as follows:
Deferred tax assetsDecember 31
20202019
(In thousands)
Assets
   Intangible assets$241 $197 
   Property, plant and equipment5,851 8,363 
   Financial assets11,138 7,004 
   Inventories3,368 2,817 
   Receivables, other assets3,365 3,212 
Liabilities
   Provisions24,710 20,662 
   Liabilities32,810 41,434 
Other
Loss carryforwards39,753 39,595 
Interest carryforwards11,227 9,967 
Tax credits4,265 3,185 
Other— 2,028 
Total deferred tax assets (gross)136,729 138,463 
Valuation allowance(42,669)(41,994)
Total deferred tax assets (net)$94,060 $96,468 

Deferred tax liabilitiesDecember 31
20202019
(In thousands)
Assets
   Intangible assets$3,717 $3,673 
   Property, plant and equipment36,426 33,040 
   Financial assets3,153 7,649 
   Receivables, other assets12,553 11,883 
Liabilities
   Provisions7,882 8,203 
   Liabilities5,947 12,568 
Other10,589 14,039 
Total deferred tax liabilities$80,267 $91,057 
The following table illustrates the gross and net deferred tax positions after the application of jurisdictional netting.
Net deferred tax positionDecember 31
20202019
(In thousands)
Deferred tax assets
Gross deferred tax assets$94,060 $96,468 
Net deferred tax assets52,563 48,720 
Deferred tax liabilities
Gross deferred tax liabilities80,267 91,057 
Net deferred tax liabilities38,770 43,308 
Net deferred tax asset / (liability) positions$13,793 $5,412 
Summary of Tax Loss and Interest Carryforwards
The following tax loss and interest carryforwards were recognized as of December 31, 2020 and 2019 (gross amounts):
December 31
20202019
(In thousands)
Corporate income tax loss carryforwards $147,270 $149,237 
Interest carryforwards for tax purposes35,338 31,463 
Total$182,608 $180,700 
The following table provides detail surrounding the expiration dates of the gross amount of tax loss carryforwards and tax credits:
Net operating loss carryforwards Tax Credits
(In thousands)
2021 to 2027$— $— 
2028 and thereafter45,458 — 
Indefinite carryforwards101,812 4,265 
Total$147,270 $4,265 
Disclosure of Deferred Tax Asset Not Recognized
No deferred tax assets were recognized for the following items (gross amounts):
December 31
20202019
(In thousands)
Deductible temporary differences$46,287 $41,994 
Corporate income tax loss carryforwards 115,078 107,110 
Interest carryforwards for tax purposes35,338 31,463 
Total$196,703 $180,567 
Summary of Tax Credit Carryforwards
The following table provides detail surrounding the expiration dates of the gross amount of tax loss carryforwards and tax credits:
Net operating loss carryforwards Tax Credits
(In thousands)
2021 to 2027$— $— 
2028 and thereafter45,458 — 
Indefinite carryforwards101,812 4,265 
Total$147,270 $4,265 
Schedule of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the following fiscal years:
20202019
(In thousands)
Balance at beginning of the year$11,616 $14,771 
Additions based on tax positions related to the current year146 246 
Additions for tax positions of prior year1,263 — 
Reductions of tax positions of prior year— (3,401)
Reductions related to settlements— — 
Reductions from lapse of statute of limitations— — 
Balance at end of the year$13,025 $11,616 
v3.20.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Contractual Purchase Commitments
To safeguard the supply of raw materials, contractual purchase commitments under long-term supply agreements for raw materials, primarily oil and gas, are in place with the following maturities:
MaturityDecember 31, 2020
(In thousands)
2021$125,358 
2022 to 202577,029 
2026 and thereafter— 
Total$202,387 
v3.20.4
Financial Information by Segment & Geographic Area (Tables)
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Schedule of the Relative Size of Revenue Recognized in each Reportable Segment
The following table shows the relative size of the revenue recognized in each of the Company’s reportable segment:
202020192018
Rubber61 %66 %65 %
Specialty39 %34 %35 %
Schedule of Segment Reconciliation
Segment reconciliation for the years ended December 31, 2020, 2019 and 2018:
RubberSpecialtiesCorporateTotal segments
(In thousands)
2020
Net sales from external customers$691,174 $445,208 $ $1,136,383 
Adjusted EBITDA$90,127 $109,916 $ $200,043 
Corporate charges— — (28,643)(28,643)
Depreciation and amortization of intangible assets and property, plant and equipment(56,968)(39,558)— (96,526)
Excluding equity in earnings of affiliated companies, net of tax(493)— — (493)
Income from operations before income tax expense and finance costs32,667 70,358 (28,643)74,382 
Interest and other financial expense, net— — (38,671)(38,671)
Reclassification of actuarial losses from AOCI— — (9,916)(9,916)
Income tax expense— — (8,132)(8,132)
Equity in earnings of affiliated companies, net of tax493 — — 493 
Net income$18,156 
Assets$789,290 $466,943 $133,561 $1,389,793 
Total expenditures for additions to long-lived assets$111,499 $27,286 $— $138,785 
2019
Net sales from external customers$967,899 $508,454 $ $1,476,353 
Adjusted EBITDA$145,170 $122,167 $ $267,337 
Corporate charges— — (22,916)(22,916)
Depreciation and amortization of intangible assets and property, plant and equipment(58,645)(38,067)— (96,713)
Excluding equity in earnings of affiliated companies, net of tax(558)— — (558)
Income from operations before income tax expense and finance costs85,967 84,100 (22,916)147,151 
Interest and other financial expense, net— — (27,572)(27,572)
Income tax expense— — (33,216)(33,216)
Equity in earnings of affiliated companies, net of tax558 — — 558 
Net income$86,920 
Assets$696,516 $417,834 $143,043 $1,257,394 
Total expenditures for additions to long-lived assets$132,556 $26,147 $— $158,703 
2018
Net sales from external customers$1,032,818 $545,385 $ $1,578,203 
Adjusted EBITDA$144,887 $149,255 $ $294,142 
Corporate charges— — 910 910 
Depreciation and amortization of intangible assets and property, plant and equipment(57,127)(41,029)— (98,156)
Excluding equity in earnings of affiliated companies, net of tax(591)— — (591)
Income from operations before income tax expense and finance costs87,169 108,226 910 196,305 
Interest and other financial expense, net— — (28,642)(28,642)
Income tax expense— — (46,944)(46,944)
Equity in earnings of affiliated companies, net of tax591 — — 591 
Net income$121,310 
Assets$685,243 $436,337 $151,442 $1,273,022 
Total expenditures for additions to long-lived assets$67,885 $43,171 $— $111,057 
Income from operations before income taxes and finance costs of the segment 'Corporate’ comprises the following:
202020192018
(In thousands)
Restructuring expenses/(income)$7,559 $3,628 $(24,633)
Consulting fees related to Company strategy— 1,280 4,804 
Extraordinary expense items related to COVID-193,866 — — 
Long Term Incentive Plan4,434 9,438 13,919 
EPA-related expenses5,228 3,992 2,703 
Other non-operating7,556 4,578 2,297 
Expenses/(income) from operations before income taxes and finance costs$28,643 $22,916 $(910)
Schedule of Income from Operations, Corporate and Other Segment
Segment reconciliation for the years ended December 31, 2020, 2019 and 2018:
RubberSpecialtiesCorporateTotal segments
(In thousands)
2020
Net sales from external customers$691,174 $445,208 $ $1,136,383 
Adjusted EBITDA$90,127 $109,916 $ $200,043 
Corporate charges— — (28,643)(28,643)
Depreciation and amortization of intangible assets and property, plant and equipment(56,968)(39,558)— (96,526)
Excluding equity in earnings of affiliated companies, net of tax(493)— — (493)
Income from operations before income tax expense and finance costs32,667 70,358 (28,643)74,382 
Interest and other financial expense, net— — (38,671)(38,671)
Reclassification of actuarial losses from AOCI— — (9,916)(9,916)
Income tax expense— — (8,132)(8,132)
Equity in earnings of affiliated companies, net of tax493 — — 493 
Net income$18,156 
Assets$789,290 $466,943 $133,561 $1,389,793 
Total expenditures for additions to long-lived assets$111,499 $27,286 $— $138,785 
2019
Net sales from external customers$967,899 $508,454 $ $1,476,353 
Adjusted EBITDA$145,170 $122,167 $ $267,337 
Corporate charges— — (22,916)(22,916)
Depreciation and amortization of intangible assets and property, plant and equipment(58,645)(38,067)— (96,713)
Excluding equity in earnings of affiliated companies, net of tax(558)— — (558)
Income from operations before income tax expense and finance costs85,967 84,100 (22,916)147,151 
Interest and other financial expense, net— — (27,572)(27,572)
Income tax expense— — (33,216)(33,216)
Equity in earnings of affiliated companies, net of tax558 — — 558 
Net income$86,920 
Assets$696,516 $417,834 $143,043 $1,257,394 
Total expenditures for additions to long-lived assets$132,556 $26,147 $— $158,703 
2018
Net sales from external customers$1,032,818 $545,385 $ $1,578,203 
Adjusted EBITDA$144,887 $149,255 $ $294,142 
Corporate charges— — 910 910 
Depreciation and amortization of intangible assets and property, plant and equipment(57,127)(41,029)— (98,156)
Excluding equity in earnings of affiliated companies, net of tax(591)— — (591)
Income from operations before income tax expense and finance costs87,169 108,226 910 196,305 
Interest and other financial expense, net— — (28,642)(28,642)
Income tax expense— — (46,944)(46,944)
Equity in earnings of affiliated companies, net of tax591 — — 591 
Net income$121,310 
Assets$685,243 $436,337 $151,442 $1,273,022 
Total expenditures for additions to long-lived assets$67,885 $43,171 $— $111,057 
Income from operations before income taxes and finance costs of the segment 'Corporate’ comprises the following:
202020192018
(In thousands)
Restructuring expenses/(income)$7,559 $3,628 $(24,633)
Consulting fees related to Company strategy— 1,280 4,804 
Extraordinary expense items related to COVID-193,866 — — 
Long Term Incentive Plan4,434 9,438 13,919 
EPA-related expenses5,228 3,992 2,703 
Other non-operating7,556 4,578 2,297 
Expenses/(income) from operations before income taxes and finance costs$28,643 $22,916 $(910)
Schedule of Geographic Information
Geographic information
Net salesYears Ended December 31,
202020192018
(In thousands)
Germany$486,452 $593,769 $628,709 
United States289,482 394,349 401,935 
South Korea173,452 241,235 279,016 
Brazil64,823 94,541 95,611 
China60,145 63,149 75,638 
South Africa33,998 54,746 56,373 
Other19,486 23,601 24,293 
Rest of Europe (1)
8,547 10,964 16,628 
Total$1,136,383 $1,476,353 $1,578,203 
(1) Only a holding company is located in Luxembourg, accordingly no revenue is generated in the country of domicile.
Long-lived tangible assets(1)
December 31
20202019
(In thousands)
Germany$147,878 $81,388 
Sweden27,85626,419
Italy60,46343,547
Poland12,93312,148
Rest of Europe (2)
10,7276,179
Subtotal Europe259,857169,681
United States258,181220,200
South Korea120,551112,303
South Africa13,07615,983
Brazil17,16623,662
China27,23519,655
Other103100
Total$696,169 $561,585 
(1) Long-lived assets include property. plant and equipment, net and Operating lease right-of-use assets
(2) Only a holding company is located in Luxembourg, accordingly no revenue is generated in the country of domicile.
v3.20.4
Related Parties (Tables)
12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
December 31,
20202019
(In thousands)
Trade receivables from DGW KG$— $537 
Trade payables to DGW KG$11,800 $17,671 

Years Ended December 31,
202020192018
(In thousands)
Purchased carbon black products from DGW KG$68,849 $89,404 $93,536 
Sales and services provided to DGW KG$1,639 $2,724 $6,464 
v3.20.4
Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Unaudited Financial Results by Quarter
Unaudited financial results by quarter for fiscal 2020 and 2019 are summarized below:
Quarters EndedYear Ended
March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2020
(In thousands, except per share amounts)
Net sales$336,007 $202,648 $282,036 $315,692 $1,136,383 
Gross profit$90,193 $33,944 $79,182 $89,030 $292,348 
Income from operations$37,543 $(12,879)$24,147 $25,571 $74,382 
Income from operations before income tax expense and equity in earnings of affiliated companies$25,534 $(23,810)$11,106 $12,966 $25,795 
Net income$18,032 $(17,780)$8,997 $8,906 $18,156 
Earnings per Share (USD per share), basic$0.30 $(0.30)$0.15 $0.15 $0.30 
Earnings per Share (USD per share), diluted$0.29 $(0.29)$0.15 $0.15 $0.30 
Quarters EndedYear Ended
March 31, 2019June 30, 2019September 30, 2019December 31, 2019December 31, 2019
(In thousands, except per share amounts)
Net sales$384,714 $399,016 $370,195 $322,428 $1,476,353 
Gross profit$97,969 $104,038 $98,714 $88,987 $389,708 
Income from operations$34,699 $41,470 $38,386 $32,596 $147,151 
Income from operations before income tax expense and equity in earnings of affiliated companies$28,256 $33,904 $31,886 $25,533 $119,579 
Net income$18,954 $24,748 $24,253 $18,965 $86,920 
Earnings per Share (USD per share), basic$0.32 $0.41 $0.40 $0.32 $1.45 
Earnings per Share (USD per share), diluted$0.32 $0.40 $0.39 $0.31 $1.42 
v3.20.4
Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accounting Policies [Abstract]        
Cash and cash equivalents $ 64,869 $ 63,726 $ 57,016  
Restricted cash included in current and non-current assets 2,996 4,505 4,588  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 67,865 $ 68,231 $ 61,604 $ 75,213
v3.20.4
Significant Accounting Policies - Intangible Assets and Goodwill, Narrative (Details)
12 Months Ended
Dec. 31, 2020
Minimum  
Finite-Lived Intangible Assets [Line Items]  
Useful life 3 years
Maximum  
Finite-Lived Intangible Assets [Line Items]  
Useful life 15 years
v3.20.4
Significant Accounting Policies - Property, Plant and Equipment, Narrative (Details)
12 Months Ended
Dec. 31, 2020
Buildings | Minimum  
Property, Plant and Equipment [Line Items]  
Depreciable life 5 years
Buildings | Maximum  
Property, Plant and Equipment [Line Items]  
Depreciable life 50 years
Plant and machinery | Minimum  
Property, Plant and Equipment [Line Items]  
Depreciable life 3 years
Plant and machinery | Maximum  
Property, Plant and Equipment [Line Items]  
Depreciable life 25 years
Furniture, fixtures and office equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Depreciable life 3 years
Furniture, fixtures and office equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Depreciable life 25 years
v3.20.4
Significant Accounting Policies - Asset Retirement Obligations, Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]    
ARO reserves $ 1.7 $ 2.9
v3.20.4
Significant Accounting Policies - Leases (Details)
Dec. 31, 2020
Accounting Policies [Abstract]  
Term of operating leases 12 months
v3.20.4
Leases - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
May 31, 2020
Lessee, Lease, Description [Line Items]        
Operating lease, right-of-use asset $ 85,639 $ 85,639 $ 27,532  
Operating lease liability 86,600 86,600    
Operating lease liability, current 12,100 12,100    
Operating lease liability, noncurrent $ 74,500 $ 74,500    
Weighted average minimum lease term   20 years 7 months 6 days    
Weighted average discount rate 4.01% 4.01%    
Right-of-use asset obtained in exchange for finance lease liability $ 54,800      
Finance lease, cost   $ 2,300 600  
Finance lease, depreciation expense   1,400 500  
Finance lease, interest expense   900 100  
Finance Lease, Interest Payment on Liability   1,900 600  
Total operating lease costs   11,600 12,500  
Cash paid, lease liabilities, operating leases   $ 8,100 $ 8,600  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesCurrent us-gaap:OtherLiabilitiesCurrent    
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilitiesNoncurrent us-gaap:OtherLiabilitiesNoncurrent    
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:OtherLiabilities us-gaap:OtherLiabilities    
Cologne, Germany        
Lessee, Lease, Description [Line Items]        
Lessee, finance lease, term of contract 25 years 25 years    
Undiscounted future lease payments       $ 6,000
Undiscounted future lease payments, term of lease       10 years
v3.20.4
Leases - Schedule of Minimum Lease Payments (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Leases [Abstract]  
Next 12 months $ 12,077
1 to 2 years 10,890
2 to 3 years 9,976
3 to 4 years 8,330
4 to 5 years 7,212
More than 5 years 78,216
Total undiscounted minimum lease payments 126,701
Discount (40,099)
Lease liability (current and non-current) $ 86,603
v3.20.4
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Inventory Disclosure [Abstract]    
Raw materials, consumables and supplies, net $ 57,011 $ 69,168
Work in process 322 148
Finished goods, net 84,128 95,483
Total $ 141,461 $ 164,799
v3.20.4
Inventories - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]      
Reserve for obsolete, unmarketable and slow moving assets $ 12.7 $ 6.7  
Expense for damaged and lost inventories $ 9.0 $ 6.0 $ 1.9
v3.20.4
Property, Plant and Equipment, and right-of-use assets - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 1,184,054 $ 1,022,354
Less: accumulated depreciation 573,524 488,300
Net property, plant and equipment 610,530 534,054
Land    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 35,000 33,654
Land rights and buildings    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 101,931 94,157
Plant and machinery    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 833,235 725,203
Other equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment 37,564 30,965
Prepayments and construction in progress    
Property, Plant and Equipment [Line Items]    
Total property, plant and equipment $ 176,323 $ 138,374
v3.20.4
Property, Plant and Equipment, and right-of-use assets - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 81.0 $ 75.3 $ 78.2
Operating and finance lease, right-of-use asset, cost price 101.5    
Operating and finance lease, right-of-use asset, accumulated depreciation 15.8    
Operating and finance lease, net carrying amount 85.6    
Right-of-use asset, depreciation expense $ 7.3 $ 8.5  
v3.20.4
Prepaid and other assets - Schedule of Prepaid and Other Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Miscellaneous other receivables    
Total $ 42,116 $ 36,531
Thereof current 41,777 36,189
Thereof non‑current 339 342
Prepaid expenses    
Total 5,292 4,529
Thereof current 2,674 1,170
Thereof non‑current 2,617 3,359
Total    
Total 47,408 41,059
Thereof current 44,452 37,358
Thereof non‑current $ 2,956 $ 3,701
v3.20.4
Prepaid and other assets - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Miscellaneous other receivables, VAT $ 23.0 $ 21.5
Miscellaneous other receivables, advance payments 2.9 1.2
Down payments 2.3 3.1
Eco-tax natural gas 0.9 3.2
Miscellaneous other receivables, guarantee deposits 1.4 1.4
Other unamortized transaction costs 3.0 3.4
Transaction costs $ 2.3 $ 2.8
v3.20.4
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Receivables [Abstract]      
Accounts receivable $ 240,590 $ 219,197  
Expected credit losses (5,794) (6,632) $ (5,081)
Accounts receivable, net of expected credit losses $ 234,796 $ 212,565  
v3.20.4
Accounts Receivable - Expected Credit Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Allowance for credit losses as of January 1, $ 6,632 $ 5,081
Credit loss expense (3,965) (3,703)
Credit loss income and utilization 4,924 1,209
Foreign currency translation effects (120) 943
Allowance for credit losses as of December 31, $ 5,794 $ 6,632
v3.20.4
Debt and Other Obligations - Schedule of Debt Arrangements (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Current    
Other short-term debt and obligations $ 75,640 $ 29,762
Current portion of long-term debt and other financial liabilities 82,618 36,410
Non-current    
Other long-term debt and obligations 0 0
Long-term debt, net 655,826 630,261
Total 738,444 666,671
Term Loan Facility | Term Loan    
Current    
Term loan 8,479 8,057
Deferred debt issuance costs-term loan (1,500) (1,409)
Non-current    
Term loan 659,502 634,994
Deferred debt issuance costs-term loan $ (3,676) $ (4,733)
v3.20.4
Debt and Other Obligations - Term Loan (Details)
1 Months Ended 12 Months Ended
Dec. 30, 2020
USD ($)
Jul. 25, 2014
USD ($)
Dec. 31, 2020
USD ($)
May 31, 2018
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
May 31, 2020
USD ($)
May 15, 2018
USD ($)
Jan. 01, 2015
USD ($)
Jul. 25, 2014
EUR (€)
Line of Credit Facility [Line Items]                      
Finance costs directly expensed         $ 2,071,000 $ 2,082,000 $ 2,220,000        
Unrealized loss     $ 48,705,000   48,705,000 34,362,000          
Cross Currency Interest Rate Contract | Designated as Hedging Instrument | Cash Flow Hedge                      
Line of Credit Facility [Line Items]                      
Notional amount converted into EUR               $ 235,000,000.0 $ 235,000,000.0    
Derivative, amount unwound     38,000,000.0   38,000,000.0            
Gain (loss) on unwound derivatives $ (6,300,000)   (2,400,000)                
Currency Swap | Designated as Hedging Instrument | Net Investment Hedging                      
Line of Credit Facility [Line Items]                      
Notional amount converted into EUR                   $ 180,000,000.0  
Unrealized loss     2,200,000   2,200,000            
Term Loan | Term Loan Facility                      
Line of Credit Facility [Line Items]                      
Debt face amount   $ 895,000,000.0                  
Required repayment per annum (at least) (as a percent)   1.00%                  
Repricing finance costs directly expensed             700,000        
Finance costs directly expensed         1,400,000 1,400,000 $ 1,400,000        
Estimated annual interest expense reduction       $ 4,700,000              
Debt issuance costs     $ (5,200,000)   $ (5,200,000) $ (6,100,000)          
Term Loan | Term Loan - USD                      
Line of Credit Facility [Line Items]                      
Debt face amount   $ 358,000,000.0                  
Term Loan | Term Loan - USD | LIBOR                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate         2.00%            
Variable rate basis floor   1.00%                  
Term Loan | Term Loan - USD | LIBOR | Minimum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate   3.75%                  
Term Loan | Term Loan - USD | LIBOR | Maximum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate   4.00%                  
Term Loan | Term Loan - EUR                      
Line of Credit Facility [Line Items]                      
Debt face amount | €                     € 399,000,000.0
Term Loan | Term Loan - EUR | EURIBOR                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate         2.25%            
Variable rate basis floor   1.00%                  
Term Loan | Term Loan - EUR | EURIBOR | Minimum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate   3.75%                  
Term Loan | Term Loan - EUR | EURIBOR | Maximum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate   4.00%                  
v3.20.4
Debt and Other Obligations - Revolving credit facility (Details)
3 Months Ended 12 Months Ended
Apr. 02, 2019
EUR (€)
May 05, 2017
USD ($)
May 04, 2017
Jul. 25, 2014
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Apr. 01, 2019
EUR (€)
May 05, 2017
EUR (€)
Jul. 25, 2014
EUR (€)
Debt Instrument [Line Items]                      
Transaction costs         $ 2,300,000 $ 2,300,000 $ 2,800,000        
Amortization of debt issuance costs           2,071,000 2,082,000 $ 2,220,000      
Revolving Credit Facility                      
Debt Instrument [Line Items]                      
Maximum borrowing capacity | € € 250,000,000.0               € 75,000,000.0 € 175,000,000.0 € 115,000,000.0
Transaction costs   $ 2,300,000   $ 3,300,000 3,000,000.0 3,000,000.0 3,400,000        
Commitment fee percentage   35.00% 40.00%                
Line of credit, maturity date 3 years                    
Long-term line of credit         0 0 $ 0        
Remaining borrowing capacity         $ 236,500,000 $ 236,500,000          
Debt, weighted average interest rate         2.48% 2.48% 2.51%        
Amortization of debt issuance costs           $ 600,000 $ 700,000 $ 800,000      
Revolving Credit Facility | Minimum                      
Debt Instrument [Line Items]                      
Leverage ratio         3.4 3.4          
Revolving Credit Facility | EURIBOR and LIBOR | Minimum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       2.50%              
Revolving Credit Facility | EURIBOR and LIBOR | Maximum                      
Debt Instrument [Line Items]                      
Basis spread on variable rate       3.00%              
Revolving Credit Facility | Eurodollar                      
Debt Instrument [Line Items]                      
Basis spread on variable rate         270.00%            
Commitment fee percentage 35.00%                    
v3.20.4
Debt and Other Obligations - Local bank loans and other short term borrowings (Details)
3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2020
EUR (€)
facility
Sep. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2020
EUR (€)
Apr. 02, 2019
EUR (€)
Apr. 01, 2019
EUR (€)
May 05, 2017
EUR (€)
Jul. 25, 2014
EUR (€)
Debt Instrument [Line Items]                  
Other short-term debt and obligations     $ 75,640,000 $ 29,762,000          
Maximum                  
Debt Instrument [Line Items]                  
Debt instrument, covenant, first lien leverage ratio     5.5            
Debt instrument, covenant, revolving credit facility utilization percentage     3500.00%            
Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity | €           € 250,000,000.0 € 75,000,000.0 € 175,000,000.0 € 115,000,000.0
Long-term line of credit     $ 0 0          
Ancillary Facilities                  
Debt Instrument [Line Items]                  
Long-term line of credit     70,300,000 28,600,000          
South Korea | Line of Credit                  
Debt Instrument [Line Items]                  
Other short-term debt and obligations     4,600,000            
Brazil | Line of Credit                  
Debt Instrument [Line Items]                  
Other short-term debt and obligations     800,000            
Germany                  
Debt Instrument [Line Items]                  
Proceeds short-term debt     43,500,000 26,400,000          
United States                  
Debt Instrument [Line Items]                  
Proceeds short-term debt     $ 26,800,000 $ 2,200,000          
RCF Bank Group | Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity   $ 307,000,000              
RCF Bank Group | Ancillary Facilities                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity | €         € 170,000,000        
RCF Bank Group | June 2020 Ancillary Facilities                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity | € € 40,000,000                
Number of ancillary facilities | facility 2                
Revolver capacity percentage   68.00%              
v3.20.4
Debt and Other Obligations - Schedule of Future Years Payments (Details) - Term Loan Facility
$ in Thousands
Dec. 31, 2020
USD ($)
Interest  
2021 $ 15,000
2022 14,900
2023 15,100
2024 8,900
Total 53,900
Scheduled Repayment  
2021 8,500
2022 8,500
2023 8,500
2024 642,500
Total 668,000
Total  
2021 23,500
2022 23,300
2023 23,600
2024 651,400
Total $ 721,800
v3.20.4
Business Combination, Goodwill and Intangible Assets - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Oct. 31, 2018
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]                        
Aggregate purchase price, net of cash acquired                   $ 0 $ 0 $ 36,571,000
Depreciation and amortization expense                   (96,526,000) (96,713,000) (98,156,000)
Net income   $ 8,906,000 $ 8,997,000 $ (17,780,000) $ 18,032,000 $ 18,965,000 $ 24,253,000 $ 24,748,000 $ 18,954,000 $ 18,156,000 $ 86,920,000 121,310,000
Intangible assets acquired, weighted-average useful life                   9 years 9 months 18 days 8 years 4 months 24 days  
Amortization expense                   $ 8,200,000 $ 12,900,000 $ 20,000,000.0
Minimum                        
Business Acquisition [Line Items]                        
Estimated useful life                   3 years    
Maximum                        
Business Acquisition [Line Items]                        
Estimated useful life                   15 years    
Rubber                        
Business Acquisition [Line Items]                        
Impairment charged against goodwill                   $ 0    
Specialty                        
Business Acquisition [Line Items]                        
Impairment charged against goodwill                   $ 0    
Société du Noir d'Acétylène de l'Aubette, SAS                        
Business Acquisition [Line Items]                        
Acquisition of shares of acetylene carbon black manufacturer (as a percent) 100.00%                      
Aggregate purchase price, net of cash acquired $ 36,784,000                      
Intangible assets acquired 12,766,000           12,800,000          
Acquired property, plant and equipment 5,317,000           5,300,000          
Deferred tax liabilities $ 4,716,000           4,700,000          
Provisional adjustment, deferred tax liabilities             9,000,000.0          
Change in goodwill             23,000,000.0          
Société du Noir d'Acétylène de l'Aubette, SAS | Fair Value Adjustment To Assets And Related Deferred Tax Liability                        
Business Acquisition [Line Items]                        
Depreciation and amortization expense             1,000,000.0          
Net income             700,000          
Société du Noir d'Acétylène de l'Aubette, SAS | Previously Reported                        
Business Acquisition [Line Items]                        
Intangible assets acquired             44,300,000          
Acquired property, plant and equipment             5,800,000          
Deferred tax liabilities             $ 13,700,000          
v3.20.4
Business Combination, Goodwill and Intangible Assets - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
12 Months Ended
Oct. 31, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Sep. 30, 2019
Consideration [Abstract]          
Cash consideration paid   $ 0 $ 0 $ 36,571  
Goodwill   $ 84,480 $ 77,341 $ 55,546  
Société du Noir d'Acétylène de l'Aubette, SAS          
Assets          
Cash $ 213        
Other current assets 176        
Accounts receivables 1,578        
Inventories 924        
Property, plant and equipment 5,317       $ 5,300
Intangible assets 12,766       12,800
Total assets acquired 20,974        
Liabilities          
Current liabilities 2,488        
Deferred tax liabilities 4,716       $ 4,700
Total liabilities assumed 7,204        
Net assets acquired 13,770        
Consideration [Abstract]          
Cash consideration paid 36,784        
Goodwill $ 23,014        
v3.20.4
Business Combination, Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill by Segment (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 77,341 $ 55,546
Goodwill recorded in SN2A acquisition   23,014
Foreign currency impact 7,139 (1,220)
Goodwill, ending balance 84,480 77,341
Rubber    
Goodwill [Roll Forward]    
Goodwill, beginning balance 30,955 31,550
Foreign currency impact 2,857 (595)
Goodwill, ending balance 33,812 30,955
Specialty    
Goodwill [Roll Forward]    
Goodwill, beginning balance 46,385 23,996
Goodwill recorded in SN2A acquisition   23,014
Foreign currency impact 4,282 (624)
Goodwill, ending balance $ 50,667 $ 46,385
v3.20.4
Business Combination, Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 235,581 $ 218,862
Accumulated Amortization 188,809 168,266
Net Intangible Assets 46,772 50,596
Developed Technology and Patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 69,419 62,870
Accumulated Amortization 46,229 37,402
Net Intangible Assets 23,189 25,468
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 83,055 76,531
Accumulated Amortization 75,985 69,514
Net Intangible Assets 7,070 7,017
Trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 21,106 19,322
Accumulated Amortization 13,142 10,764
Net Intangible Assets 7,964 8,558
Long-term contracts    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 8,156 7,430
Accumulated Amortization 1,260 630
Net Intangible Assets 6,896 6,800
Other intangible assets    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value 53,845 52,708
Accumulated Amortization 52,192 49,955
Net Intangible Assets $ 1,653 $ 2,753
v3.20.4
Business Combination, Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]    
2021 $ 7,899  
2022 7,251  
2023 6,882  
2024 6,812  
2025 6,748  
Thereafter 11,180  
Net Intangible Assets $ 46,772 $ 50,596
v3.20.4
Accruals and Other Liabilities - Schedule of Current Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]    
Accrued employee compensation $ 21,635 $ 24,746
Accrued liabilities for sales and procurement 6,968 3,274
Accrued liabilities for restructuring 8,039 4,765
Other accrued liabilities 12,535 12,145
Total $ 49,176 $ 44,931
v3.20.4
Accruals and Other Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]    
Employee related liabilities $ 6,581 $ 4,787
Customer down payments 922 1,018
Liabilities for environmental tax 385 4,824
Liabilities for withholding tax 155 1,417
Liabilities for VAT 675 555
Liabilities for property tax 785 0
Liabilities for outstanding invoices 7,112 5,902
Liabilities for leases 12,077 7,598
Other current liabilities 7,983 6,407
Total $ 36,676 $ 32,509
v3.20.4
Accruals and Other Liabilities - Schedule of Other Long-Term Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]    
Employee related liabilities $ 5,855 $ 5,740
Liabilities for asset retirement obligation 1,666 2,938
Environmental protection liabilities 1,250 1,240
Liabilities for leases 74,526 21,463
Other non-current liabilities 22,833 9,320
Total $ 106,131 $ 40,701
v3.20.4
Accruals and Other Liabilities - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Other Liabilities Disclosure [Abstract]    
Liabilities for AROs settled $ 0 $ 0
v3.20.4
Financial Instruments and Fair Value Measurement - Narrative (Details) - Fair Value, Inputs, Level 2 - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Receivables from hedges/ derivatives $ 195 $ 8,436
Prepaid expenses and other current assets 195 8,434
Other financial assets (non-current) 0 1
Liabilities from derivatives 23,127 9,425
Other current liabilities 296 109
Other liabilities (non-current) 22,831 9,316
Term loan    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of loans 667,980 643,051
Local bank loans    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of loans $ 75,640 $ 29,762
v3.20.4
Accounting for Derivative Instruments and Hedging Activities - Narrative (Details)
1 Months Ended
Dec. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
May 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
May 15, 2018
USD ($)
Jan. 01, 2015
USD ($)
Nov. 28, 2014
USD ($)
Nov. 28, 2014
EUR (€)
Jul. 25, 2014
EUR (€)
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Unrealized loss   $ 48,705,000   $ 34,362,000          
Designated as Hedging Instrument | Cash Flow Hedge | Euro Interest Rate Cap, Start Date 2014                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Notional amount | €               € 375,000,000.0  
Derivative amount of hedged item | €                 € 399,000,000.0
Designated as Hedging Instrument | Cash Flow Hedge | USD Interest Rate Cap, Start Date 2014                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Notional amount             $ 350,000,000.0    
Derivative amount of hedged item | €                 € 358,000,000.0
Designated as Hedging Instrument | Cash Flow Hedge | Cross Currency Interest Rate Contract                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Notional amount     $ 235,000,000.0   $ 235,000,000.0        
Derivative, amount unwound   38,000,000.0              
Gain (loss) on unwound derivatives $ 6,300,000 2,400,000              
Designated as Hedging Instrument | Cash Flow Hedge | Swap                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Derivative, amount unwound   30,000,000              
Gain (loss) on unwound derivatives   3,900,000              
Designated as Hedging Instrument | Cash Flow Hedge | Three Month EURIBOR | Euro Interest Rate Cap, Start Date 2014                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Interest rate                 1.00%
Designated as Hedging Instrument | Cash Flow Hedge | Three Month USD LIBOR | USD Interest Rate Cap, Start Date 2014                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Interest rate                 2.50%
Designated as Hedging Instrument | Net Investment Hedging | Currency Swap                  
Derivative Instruments and Hedging Activities Disclosures [Line Items]                  
Notional amount           $ 180,000,000.0      
Unrealized loss   $ 2,200,000              
v3.20.4
Employee Benefit Plans - Narrative (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2016
program
Defined Benefit Plan Disclosure [Line Items]        
Duration of defined benefit obligation 21 years 21 years    
Actual return on plan assets $ 100 $ 100    
Change in discount rate or future pension increase, impact projected benefit obligation, percent 0.50%      
Expected future employer contributions next fiscal year $ 1,700      
Statutory pension insurance 12,500 13,900 $ 12,800  
Employer contributions 275 552    
Employee Savings Plan        
Defined Benefit Plan Disclosure [Line Items]        
Employer contributions $ 2,600 $ 2,900 $ 2,900  
Germany | Geographic Concentration Risk | Projected Benefit Pension Obligation        
Defined Benefit Plan Disclosure [Line Items]        
Concentration risk percentage 93.30% 91.80%    
France        
Defined Benefit Plan Disclosure [Line Items]        
Number of programs ceased, due to plant closure | program       1
v3.20.4
Employee Benefit Plans - Change in Benefit Obligations (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Present value of projected benefit obligation at the beginning of the year $ 79,389 $ 67,623  
Actuarial (gain)/ loss 4,926 11,983  
Service cost 561 588 $ 604
Interest cost 1,185 1,694 1,758
Benefits paid (1,680) (1,346)  
Other 0 0  
Curtailments, settlements, special and contractual termination benefits 0 0  
Currency translation 6,878 (1,153)  
Present value of projected benefit obligation at the end of the year $ 91,259 $ 79,389 $ 67,623
v3.20.4
Employee Benefit Plans - Fair Value of Plan Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]    
Fair value of plan assets at the beginning of the year $ 6,580 $ 6,391
Actual return on plan assets 125 119
Employer contributions 275 552
Actuarial gain/(loss) 0 0
Benefits paid (525) (277)
Settlement 0 0
Other adjustments 0 0
Currency translation 377 (205)
Fair value of plan assets at the end of the year $ 6,831 $ 6,580
v3.20.4
Employee Benefit Plans - Pension Funding (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Retirement Benefits [Abstract]      
Projected benefit obligation $ 91,259 $ 79,389 $ 67,623
Fair value of plan assets 6,831 6,580 $ 6,391
Net funded status $ 84,428 $ 72,809  
v3.20.4
Employee Benefit Plans - Amounts Recognized in Balance Sheet (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]    
Non-current assets $ 0 $ 0
Current liabilities 1,118 908
Non-current liabilities 83,310 71,901
Net liability recognized - pension plans $ 84,428 $ 72,809
v3.20.4
Employee Benefit Plans - Pension Assumptions (Details)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]    
Discount rate 0.60% 1.00%
Expected long-term rate of return on plan assets 2.00% 2.00%
Rate of compensation/salary increase 3.00% 3.00%
Future pension increase 1.50% 1.50%
v3.20.4
Employee Benefit Plans - Discount Rate Change, Projected Benefit Obligation (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Retirement Benefits [Abstract]  
Impact on projected benefit obligation, discount rate, 0.5% decrease $ 8,779
Impact on projected benefit obligation, discount rate, 0.5% increase (7,612)
Impact on projected benefit obligation, future pension increase 0.5% decrease (11,527)
Impact on projected benefit obligation, future pension increase, 0.5% increase $ 12,797
v3.20.4
Employee Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Retirement Benefits [Abstract]      
Service cost $ 561 $ 588 $ 604
Interest cost 1,185 1,694 1,758
Expected return on plan assets (125) (119) (174)
Past service cost/(income) and other adjustments 0 0 253
Net periodic pension cost $ 1,621 $ 2,163 $ 2,441
v3.20.4
Employee Benefit Plans - Expected Future Benefit Payments (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Retirement Benefits [Abstract]  
2021 $ 1,579
2022 1,990
2023 2,116
2024 2,814
2025 2,551
2026 - 2030 $ 14,251
v3.20.4
Employee Benefit Plans - Amounts Recognized in AOCI (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss $ (5,300)  
Net prior service cost 0 $ 0
Balance in accumulated other comprehensive (income) / loss 4,926 11,983
Pension Plan    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss 4,926 $ 11,983
Other Personnel-Related    
Defined Benefit Plan Disclosure [Line Items]    
Net actuarial (gain) loss $ (400)  
v3.20.4
Employee Benefit Plans - Estimated Amounts that will be Amortized from AOCI (Details) - Forecast
$ in Thousands
Dec. 31, 2021
USD ($)
Defined Benefit Plan Disclosure [Line Items]  
Net actuarial (gain) loss $ 4,999
Prior service cost (credit) 0
Net amount recognized $ 4,999
v3.20.4
Employee Benefit Plans - Fair Value of Plan Asset Allocation (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Total pension plan assets $ 6,831 $ 6,580 $ 6,391
Other securities      
Defined Benefit Plan Disclosure [Line Items]      
Total pension plan assets $ 6,831 $ 6,580  
v3.20.4
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Mar. 31, 2020
Apr. 30, 2019
Apr. 30, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Unrecognized compensation cost       $ 5.1    
Unrecognized compensation cost, recognition period       1 year 6 months    
Leavers rate per year       3.00%    
RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Intrinsic value of PSU outstanding (in dollars per share)       $ 17.14 $ 19.30 $ 25.28
Performance based adjustment (in shares)       0 0 0
PSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period       3 years    
Intrinsic value of PSU outstanding (in dollars per share)       $ 17.14 $ 19.30 $ 25.28
Performance based adjustment (in shares)       391,493 299,499 110,215
PSUs | 2017 Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Exercised during period (in shares) 378,165          
Performance based adjustment (in shares) 40,087     40,087    
PSUs | 2016 Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Exercised during period (in shares)   977,106        
Performance based adjustment (in shares)   299,499        
PSUs | 2015 Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Exercised during period (in shares)     557,337      
Performance based adjustment (in shares)     110,215      
RSUs And PSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Intrinsic value of PSU       $ 14.9 $ 23.2 $ 41.2
Vesting Period One | RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage on each of the first, second, and third anniversary of the grant date       33.33%    
Vesting Period Two | RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage on each of the first, second, and third anniversary of the grant date       33.33%    
Vesting Period Three | RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage on each of the first, second, and third anniversary of the grant date       33.33%    
Non-employee Director | Restricted Shares            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Outstanding (in shares)       78,656    
Employees, Sign On | Vesting Period Two | RSUs | Executive Committee            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage on each of the first, second, and third anniversary of the grant date       33.33%    
Employees, Sign On | Vesting Period Three | RSUs | Executive Committee            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting percentage on each of the first, second, and third anniversary of the grant date       33.33%    
v3.20.4
Stock-Based Compensation - Expenses Recorded Within Operating Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses $ 4,434 $ 9,438 $ 13,919
2015 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 0 0 777
2016 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 0 1,083 4,566
2017 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 0 3,016 5,052
Stock compensation plan for Board of Directors      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 400 561 563
2018 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 2,094 3,435 2,961
Individual RSU incentive      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 544 453 0
2019 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses 871 891 0
2020 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total expenses $ 525 $ 0 $ 0
v3.20.4
Stock-Based Compensation - Movement of PSUs and RSUs (Details) - $ / shares
1 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   1,003,745 1,594,990 1,610,894
Granted (in shares)   290,906 332,891 450,977
Performance based adjustment (in shares)   391,493 299,499 110,215
Settled (in shares)   (378,165) (977,106) (557,337)
Forfeited (in shares)   (26,642) (246,529) (19,759)
Outstanding, end of period (in shares)   498,352 1,003,745 1,594,990
Expected to vest (in shares)   304,984 917,255 1,556,011
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   197,582 35,817 0
Granted (in shares)   182,930 219,197 35,817
Performance based adjustment (in shares)   0 0 0
Settled (in shares)   0 (11,939) 0
Forfeited (in shares)   (10,086) (45,493) 0
Outstanding, end of period (in shares)   370,427 197,582 35,817
Expected to vest (in shares)   365,730 197,582 35,817
2017 Plan | PSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   418,252    
Granted (in shares)   0    
Performance based adjustment (in shares) 40,087 40,087    
Settled (in shares)   (378,165)    
Forfeited (in shares)   0    
Outstanding, end of period (in shares)   0 418,252  
Expected to vest (in shares)   0    
Weighted average grant date fair value (in USD per share)   $ 24.89    
2018 Plan | PSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   355,766    
Granted (in shares)   0    
Performance based adjustment (in shares)   351,406    
Settled (in shares)   0    
Forfeited (in shares)   (4,360)    
Outstanding, end of period (in shares)   0 355,766  
Expected to vest (in shares)   0    
Weighted average grant date fair value (in USD per share)   $ 39.24    
2018 Plan | RSUs | Employees, Sign On        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   23,878    
Granted (in shares)   0    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   0    
Outstanding, end of period (in shares)   23,878 23,878  
Expected to vest (in shares)   23,878    
Weighted average grant date fair value (in USD per share)   $ 25.81    
2019 Plan | PSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   229,727    
Granted (in shares)   1,278    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   (20,253)    
Outstanding, end of period (in shares)   210,753 229,727  
Expected to vest (in shares)   102,217    
Weighted average grant date fair value (in USD per share)   $ 11.48    
2019 Plan | RSUs | Employees, Sign On        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   45,257    
Granted (in shares)   0    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   0    
Outstanding, end of period (in shares)   45,257 45,257  
Expected to vest (in shares)   45,257    
Weighted average grant date fair value (in USD per share)   $ 15.89    
2019 Plan | RSUs | Employees, Existing        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   128,447    
Granted (in shares)   1,278    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   (8,057)    
Outstanding, end of period (in shares)   121,669 128,447  
Expected to vest (in shares)   121,770    
Weighted average grant date fair value (in USD per share)   $ 14.74    
2020 Plan | PSUs        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   0    
Granted (in shares)   289,628    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   (2,029)    
Outstanding, end of period (in shares)   287,599 0  
Expected to vest (in shares)   202,766    
Weighted average grant date fair value (in USD per share)   $ 11.60    
2020 Plan | RSUs | Employees, Sign On        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   0    
Granted (in shares)   19,000    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   0    
Outstanding, end of period (in shares)   19,000 0  
Expected to vest (in shares)   19,000    
Weighted average grant date fair value (in USD per share)   $ 12.78    
2020 Plan | RSUs | Employees, Existing        
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]        
Outstanding, beginning of period (in shares)   0    
Granted (in shares)   162,652    
Performance based adjustment (in shares)   0    
Settled (in shares)   0    
Forfeited (in shares)   (2,029)    
Outstanding, end of period (in shares)   160,623 0  
Expected to vest (in shares)   155,825    
Weighted average grant date fair value (in USD per share)   $ 12.51    
v3.20.4
Stock-Based Compensation - Fair Value Assumptions (Details) - PSUs
12 Months Ended
Dec. 31, 2020
$ / shares
2020 Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected term (in years) 3 years
Dividend yield (%) 0.00%
Expected volatility OEC (%) 60.84%
Expected volatility peer group (%) 33.22%
Correlation 0.7227
Risk-free interest rate (%) 0.14%
Weighted average grant date fair value (in USD per share) $ 11.60
2019 Plan PSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected term (in years) 3 years
Dividend yield (%) 4.65%
Expected volatility OEC (%) 33.30%
Expected volatility peer group (%) 17.62%
Correlation 0.5205
Risk-free interest rate (%) 1.83%
Weighted average grant date fair value (in USD per share) $ 11.48
2018 Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected term (in years) 3 years
Dividend yield (%) 1.94%
Expected volatility OEC (%) 30.22%
Expected volatility peer group (%) 20.09%
Correlation 0.3659
Risk-free interest rate (%) 1.46%
Weighted average grant date fair value (in USD per share) $ 39.24
v3.20.4
Stock-Based Compensation - Components of Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based Payment Arrangement, Expense $ 4,434 $ 9,438 $ 13,919
Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based Payment Arrangement, Expense 299 139 55
Selling expenses      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based Payment Arrangement, Expense 462 1,412 2,711
General and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based Payment Arrangement, Expense 3,408 7,364 10,394
Research and development costs      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based Payment Arrangement, Expense $ 265 $ 523 $ 759
v3.20.4
Restructuring Expenses - Schedule of Restructuring Activities and Related Reserves (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Restructuring Reserve        
Beginning Provision $ 8,717 $ 4,765 $ 8,658 $ 8,717
Charges 7,200 7,559 3,080 15,620
Cost charged against liabilities (assets)   0 0 (1,180)
Cash paid   (4,460) (6,798) (14,468)
Foreign currency translation adjustment   174 (175) (32)
Ending Provision   8,039 4,765 8,658
Unrealized net gains/(losses) on hedges of a net investment in a foreign operation       (269)
Personnel expenses        
Restructuring Reserve        
Beginning Provision 646 3,400 2,334 646
Charges 4,400 3,228 2,801 7,586
Cost charged against liabilities (assets)   0 0 (324)
Cash paid   (3,219) (1,727) (5,825)
Foreign currency translation adjustment   150 (9) 252
Ending Provision   3,559 3,400 2,334
Demolition and Removal costs        
Restructuring Reserve        
Beginning Provision 2,824 561 2,541 2,824
Charges   146 9 1,978
Cost charged against liabilities (assets)   0 0 (14)
Cash paid   (476) (1,953) (2,182)
Foreign currency translation adjustment   (1) (36) (64)
Ending Provision   229 561 2,541
Ground remediation costs        
Restructuring Reserve        
Beginning Provision 4,317 488 2,939 4,317
Charges   4,185 268 2,919
Cost charged against liabilities (assets)   0 0 (833)
Cash paid   (449) (2,610) (3,259)
Foreign currency translation adjustment   28 (109) (206)
Ending Provision   4,251 488 2,939
Other        
Restructuring Reserve        
Beginning Provision $ 930 317 844 930
Charges   0 2 3,137
Cost charged against liabilities (assets)   0 0 (8)
Cash paid   (315) (508) (3,202)
Foreign currency translation adjustment   (2) (20) (13)
Ending Provision   $ 0 $ 317 $ 844
v3.20.4
Restructuring Expenses - Narrative (Details)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
plant
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Restructuring Cost and Reserve [Line Items]        
Restructuring income   $ 0 $ 0 $ 40,253
Restructuring expenses $ 7,200 7,559 3,080 15,620
Number of plants consolidated | plant 2      
Restructuring expenses (income), net   7,600 3,600 (24,600)
Personnel expenses        
Restructuring Cost and Reserve [Line Items]        
Restructuring expenses $ 4,400 3,228 2,801 7,586
Rubber Carbon Black        
Restructuring Cost and Reserve [Line Items]        
Asset retirement obligation costs incurred   6,500 $ 0 $ 3,400
Expected restructuring cost   42,400    
Restructuring cost remaining   $ 8,000    
v3.20.4
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in AOCI, Net of Tax (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax      
Beginning balance $ 186,013 $ 158,896 $ 95,305
Other comprehensive income/(loss) before reclassifications (21,074) (21,026) (15,069)
Income tax effects before reclassifications 1,285 6,297 477
Amounts reclassified from AOCI 9,916    
Income tax effects on reclassifications (3,253)    
Currency translation AOCI (1,217) (5) 284
Ending balance 181,013 186,013 158,896
Accumulated other comprehensive loss      
AOCI Attributable to Parent, Net of Tax      
Beginning balance (34,362) (19,628) (5,320)
Ending balance (48,705) (34,362) (19,628)
Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax      
Beginning balance (12,281) (10,650) (554)
Other comprehensive income/(loss) before reclassifications (13,098) (1,454) (8,918)
Income tax effects before reclassifications (1,164) (177) (1,178)
Amounts reclassified from AOCI 0    
Income tax effects on reclassifications 0    
Currency translation AOCI 0 0 0
Ending balance (26,543) (12,281) (10,650)
Hedging Activities Adjustments      
AOCI Attributable to Parent, Net of Tax      
Beginning balance (10,891) (6,147) (1,801)
Other comprehensive income/(loss) before reclassifications (2,640) (7,283) (6,349)
Income tax effects before reclassifications 699 2,454 1,719
Amounts reclassified from AOCI 0    
Income tax effects on reclassifications 0    
Currency translation AOCI (653) 85 284
Ending balance (13,485) (10,891) (6,147)
Pension and Other Postretirement Benefit Liability Adjustment      
AOCI Attributable to Parent, Net of Tax      
Beginning balance (11,189) (2,831) (2,965)
Other comprehensive income/(loss) before reclassifications (5,336) (12,288) 198
Income tax effects before reclassifications 1,751 4,020 (64)
Amounts reclassified from AOCI 9,916    
Income tax effects on reclassifications (3,253)    
Currency translation AOCI (564) (90) 0
Ending balance $ (8,676) $ (11,189) $ (2,831)
v3.20.4
Accumulated Other Comprehensive Income (Loss) - Schedule of Amounts Reclassified out of AOCI (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Amortization of actuarial losses (gains) (recorded in interest and other finance expense, net)                 $ (9,916,000) $ 0 $ 0
Income from operations before income tax expense and equity in earnings of affiliated companies $ 12,966,000 $ 11,106,000 $ (23,810,000) $ 25,534,000 $ 25,533,000 $ 31,886,000 $ 33,904,000 $ 28,256,000 25,795,000 119,579,000 167,663,000
Tax impact                 (8,132,000) (33,216,000) (46,944,000)
Net income $ 8,906,000 $ 8,997,000 $ (17,780,000) $ 18,032,000 $ 18,965,000 $ 24,253,000 $ 24,748,000 $ 18,954,000 18,156,000 86,920,000 121,310,000
Reclassification out of Accumulated Other Comprehensive Income                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Income from operations before income tax expense and equity in earnings of affiliated companies                 9,916,000    
Tax impact                 (3,253,000)    
Net income                 6,663,000 $ 0 $ 0
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]                      
Amortization of actuarial losses (gains) (recorded in interest and other finance expense, net)                 $ 9,916,000    
v3.20.4
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net income $ 8,906,000 $ 8,997,000 $ (17,780,000) $ 18,032,000 $ 18,965,000 $ 24,253,000 $ 24,748,000 $ 18,954,000 $ 18,156,000 $ 86,920,000 $ 121,310,000
Actuarial losses as a percentage of defined benefit obligations                 10.00%    
Reclassification of actuarial losses from AOCI                 $ (9,916,000) 0 0
Reclassification out of Accumulated Other Comprehensive Income                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net income                 6,663,000 $ 0 $ 0
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                 $ 9,916,000    
v3.20.4
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Earnings Per Share [Abstract]                      
Net income for the period - attributable to ordinary equity holders of the parent (in thousands) $ 8,906 $ 8,997 $ (17,780) $ 18,032 $ 18,965 $ 24,253 $ 24,748 $ 18,954 $ 18,156 $ 86,920 $ 121,310
Weighted average number of ordinary shares (in thousands of shares) (in shares)                 60,430 59,986 59,567
Basic EPS (in USD per share) $ 0.15 $ 0.15 $ (0.30) $ 0.30 $ 0.32 $ 0.40 $ 0.41 $ 0.32 $ 0.30 $ 1.45 $ 2.04
Dilutive effect of share based payments (in thousands of shares) (in shares)                 977 1,313 1,482
Weighted average number of diluted ordinary shares (in thousands of shares) (in shares)                 61,407 61,300 61,049
Diluted EPS (in USD per share) $ 0.15 $ 0.15 $ (0.29) $ 0.29 $ 0.31 $ 0.39 $ 0.40 $ 0.32 $ 0.30 $ 1.42 $ 1.99
v3.20.4
Income Taxes - Schedule of Tax Provisions (Benefit) for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current      
Domestic $ 16,267 $ 16,250 $ 9,166
Foreign 4,011 1,140 41,412
Total 20,279 17,390 50,578
Deferred      
Domestic (4,875) 7,412 6,164
Foreign (7,271) 8,414 (9,798)
Total (12,146) 15,826 (3,634)
Effective income taxes as reported $ 8,132 $ 33,216 $ 46,944
v3.20.4
Income Taxes - Schedule of Income before Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Domestic $ 25,556 $ 112,427 $ 115,594
Foreign 732 7,710 52,660
Income from operations before income taxes and equity in earnings of affiliated companies $ 26,288 $ 120,137 $ 168,254
v3.20.4
Income Taxes - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Contingency [Line Items]      
Change in the tax rate and tax laws $ (118,000) $ 115,000 $ (802,000)
Nondeductible expense, other 2,755,000 745,000 (893,000)
Benefit for tax rate differential 1,412,000 3,517,000 6,695,000
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes (1,311,000) 450,000 (204,000)
Income tax expense 8,132,000 33,216,000 46,944,000
Income tax expense (benefit) recognized directly to equity (1,100,000) 6,200,000 300,000
Deferred tax asset not recognized, deductible temporary differences due to subsidiaries 12,600,000 14,800,000 11,800,000
Deferred tax liability due to subsidiaries for which a dividend distribution is expected 800,000 1,700,000 1,800,000
Income tax penalties accrued   0 0
Interest on income taxes accrued 1,100,000 500,000 500,000
Income tax penalties and interest accrued $ 5,100,000 $ 4,000,000.0 $ 3,400,000
German entities      
Income Tax Contingency [Line Items]      
Corporate income tax rate 15.00%    
Solidarity surcharge 0.825% 0.825% 0.825%
Solidarity surcharge rate on the corporate income tax rate 5.50% 5.50% 5.50%
Trade tax rate 16.18% 16.18% 16.18%
Overall tax rate 32.00% 32.00% 32.00%
Foreign Tax Authority | Brazil      
Income Tax Contingency [Line Items]      
Nondeductible expense, other $ 900,000 $ 2,300,000 $ 1,600,000
Foreign Tax Authority | South Korea      
Income Tax Contingency [Line Items]      
Benefit for tax rate differential   $ 6,300,000  
Domestic Tax Authority      
Income Tax Contingency [Line Items]      
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes $ 3,600,000    
v3.20.4
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]      
Income before income taxes $ 26,288 $ 120,137 $ 168,254
Expected income tax thereon 8,412 38,444 53,841
Tax rate differential (1,412) (3,517) (6,695)
Change in valuation allowance on deferred tax assets and for losses without recognition of deferred taxes (1,311) 450 (204)
Change in the tax rate and tax laws (118) 115 (802)
Income taxes for prior years (1,205) (3,247) 876
Tax on non-deductible interest expenses 1,051 1,232 1,096
Taxes on other non-deductible expenses, and non-deductible taxes 2,755 745 (893)
Effects of changes in permanent differences 0 (45) 96
Tax effect on tax-free income (169) (898) (532)
Other tax effects 130 (63) 161
Effective income taxes as reported $ 8,132 $ 33,216 $ 46,944
Effective tax rate 30.93% 27.65% 27.90%
v3.20.4
Income Taxes - Schedule of Significant Components of Deferred Income Taxes (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Assets    
Intangible assets $ 241 $ 197
Property, plant and equipment 5,851 8,363
Financial assets 11,138 7,004
Inventories 3,368 2,817
Receivables, other assets 3,365 3,212
Liabilities    
Provisions 24,710 20,662
Liabilities 32,810 41,434
Other    
Loss carryforwards 39,753 39,595
Interest carryforwards 11,227 9,967
Tax credits 4,265 3,185
Other 0 2,028
Total deferred tax assets (gross) 136,729 138,463
Valuation allowance (42,669) (41,994)
Total deferred tax assets (net) 94,060 96,468
Assets    
Intangible assets 3,717 3,673
Property, plant and equipment 36,426 33,040
Financial assets 3,153 7,649
Receivables, other assets 12,553 11,883
Liabilities    
Provisions 7,882 8,203
Liabilities 5,947 12,568
Other 10,589 14,039
Total deferred tax liabilities 80,267 91,057
Deferred income tax liabilities 38,770 43,308
Deferred income tax assets 52,563 48,720
Net deferred tax asset / (liability) positions $ 13,793 $ 5,412
v3.20.4
Income Taxes - Summary of Tax Loss Carryforwards (Details) - USD ($)
$ in Thousands
Dec. 31, 2020
Dec. 31, 2019
Tax loss and interest carryforwards:    
Corporate income tax loss carryforwards $ 147,270 $ 149,237
Interest carryforwards for tax purposes 35,338 31,463
Net operating loss carryforwards 182,608 180,700
No deferred tax assets were recognized for the following items:    
Deductible temporary differences 46,287 41,994
Corporate income tax loss carryforwards 115,078 107,110
Interest carryforwards for tax purposes 35,338 31,463
Total 196,703 $ 180,567
Net operating loss carryforwards    
Net operating loss carryforwards 147,270  
Tax Credits    
Tax Credits 4,265  
2021 to 2027    
Net operating loss carryforwards    
Net operating loss carryforwards 0  
Tax Credits    
Tax Credits 0  
2028 and thereafter    
Net operating loss carryforwards    
Net operating loss carryforwards 45,458  
Tax Credits    
Tax Credits 0  
Indefinite carryforwards    
Net operating loss carryforwards    
Net operating loss carryforwards 101,812  
Tax Credits    
Tax Credits $ 4,265  
v3.20.4
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns    
Balance at beginning of the year $ 11,616 $ 14,771
Additions based on tax positions related to the current year 146 246
Additions for tax positions of prior year 1,263 0
Reductions of tax positions of prior year 0 (3,401)
Reductions related to settlements 0 0
Reductions from lapse of statute of limitations 0 0
Balance at end of the year $ 13,025 $ 11,616
v3.20.4
Commitments and Contingencies - Other Long-Term Commitments (Details)
$ in Thousands
Dec. 31, 2020
USD ($)
Maturity  
2021 $ 125,358
2022 to 2025 77,029
2026 and thereafter 0
Total $ 202,387
v3.20.4
Commitments and Contingencies - Environmental Matters (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
facility
defendant
United States  
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 | United States  
Loss Contingencies [Line Items]  
Loss contingency accrual, payments 123.1
Settled with the U.S. government | Unfavorable Regulatory Action | United States | Minimum  
Loss Contingencies [Line Items]  
Estimated capital expenditures to be incurred for installments 230.0
Settled with the U.S. government | Unfavorable Regulatory Action | United States | Maximum  
Loss Contingencies [Line Items]  
Estimated capital expenditures to be incurred for installments $ 270.0
v3.20.4
Commitments and Contingencies - Pledges and Guarantees (Details)
€ in Millions, $ in Millions
Dec. 31, 2020
USD ($)
program
Dec. 31, 2020
EUR (€)
program
Loss Contingencies [Line Items]    
Number of guarantees issued by counterparty | program 13 13
Guarantee obligation carrying amount $ 17.6  
Term Loan | Term Loan - USD    
Loss Contingencies [Line Items]    
Long-term debt $ 277.7  
Term Loan | Term Loan - EUR    
Loss Contingencies [Line Items]    
Long-term debt | €   € 390.3
v3.20.4
Financial Information by Segment & Geographic Area - Narrative (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2020
USD ($)
segment
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Segment Reporting [Abstract]                      
Number of operating segments | segment                 2    
Number of reporting segments | segment                 2    
Revenue, Major Customer [Line Items]                      
Revenues $ 315,692 $ 282,036 $ 202,648 $ 336,007 $ 322,428 $ 370,195 $ 399,016 $ 384,714 $ 1,136,383 $ 1,476,353 $ 1,578,203
Customer A | Rubber                      
Revenue, Major Customer [Line Items]                      
Revenues                 $ 170,300 195,600 201,700
Customer B                      
Revenue, Major Customer [Line Items]                      
Revenues                   $ 104,100 $ 96,800
v3.20.4
Financial Information by Segment & Geographic Area - Schedule of the Relative Size of Revenue Recognized in each Reportable Segment (Details) - Product Concentration Risk - Revenue generated
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Rubber      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Concentration risk percentage 61.00% 66.00% 65.00%
Specialties      
Segment Reporting, Revenue Reconciling Item [Line Items]      
Concentration risk percentage 39.00% 34.00% 35.00%
v3.20.4
Financial Information by Segment & Geographic Area - Schedule of Segment Reconciliation (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Net sales from external customers $ 315,692 $ 282,036 $ 202,648 $ 336,007 $ 322,428 $ 370,195 $ 399,016 $ 384,714 $ 1,136,383 $ 1,476,353 $ 1,578,203
Adjusted EBITDA                 200,043 267,337 294,142
Corporate charges                 (28,643) (22,916) 910
Depreciation and amortization of intangible assets and property, plant and equipment                 (96,526) (96,713) (98,156)
Excluding equity in earnings of affiliated companies, net of tax                 (493) (558) (591)
Income from operations 25,571 24,147 (12,879) 37,543 32,596 38,386 41,470 34,699 74,382 147,151 196,305
Interest and other financial expense, net                 (38,671) (27,572) (28,642)
Reclassification of actuarial losses from AOCI                 (9,916) 0 0
Income tax expense                 (8,132) (33,216) (46,944)
Net income 8,906 $ 8,997 $ (17,780) $ 18,032 18,965 $ 24,253 $ 24,748 $ 18,954 18,156 86,920 121,310
Assets 1,389,793       1,257,394       1,389,793 1,257,394 1,273,022
Total expenditures for additions to long-lived assets                 138,785 158,703 111,057
Operating segments | Rubber                      
Segment Reporting Information [Line Items]                      
Net sales from external customers                 691,174 967,899 1,032,818
Adjusted EBITDA                 90,127 145,170 144,887
Depreciation and amortization of intangible assets and property, plant and equipment                 (56,968) (58,645) (57,127)
Excluding equity in earnings of affiliated companies, net of tax                 (493) (558) (591)
Income from operations                 32,667 85,967 87,169
Assets 789,290       696,516       789,290 696,516 685,243
Total expenditures for additions to long-lived assets                 111,499 132,556 67,885
Operating segments | Specialties                      
Segment Reporting Information [Line Items]                      
Net sales from external customers                 445,208 508,454 545,385
Adjusted EBITDA                 109,916 122,167 149,255
Depreciation and amortization of intangible assets and property, plant and equipment                 (39,558) (38,067) (41,029)
Income from operations                 70,358 84,100 108,226
Assets 466,943       417,834       466,943 417,834 436,337
Total expenditures for additions to long-lived assets                 27,286 26,147 43,171
Corporate                      
Segment Reporting Information [Line Items]                      
Adjusted EBITDA                     0
Corporate charges                 (28,643) (22,916) 910
Income from operations                 (28,643) (22,916) 910
Interest and other financial expense, net                 (38,671) (27,572) (28,642)
Reclassification of actuarial losses from AOCI                 (9,916)    
Income tax expense                 (8,132) (33,216) (46,944)
Assets $ 133,561       $ 143,043       $ 133,561 $ 143,043 $ 151,442
v3.20.4
Financial Information by Segment & Geographic Area - Schedule of Income from Operations before Income Taxes and Finance Costs, Corporate and Other (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]      
Restructuring expenses/(income) $ 7,559 $ 3,628 $ 15,620
Long Term Incentive Plan 4,434 9,438 13,919
Expenses/(income) from operations before income taxes and finance costs (26,288) (120,137) (168,254)
Corporate      
Segment Reporting Information [Line Items]      
Restructuring expenses/(income) 7,559 3,628 (24,633)
Consulting fees related to Company strategy 0 1,280 4,804
Extraordinary expense items related to COVID-19 3,866 0 0
Long Term Incentive Plan 4,434 9,438 13,919
EPA-related expenses 5,228 3,992 2,703
Other non-operating 7,556 4,578 2,297
Expenses/(income) from operations before income taxes and finance costs $ 28,643 $ 22,916 $ (910)
v3.20.4
Financial Information by Segment & Geographic Area - Schedule of Geographic Information (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues $ 315,692 $ 282,036 $ 202,648 $ 336,007 $ 322,428 $ 370,195 $ 399,016 $ 384,714 $ 1,136,383 $ 1,476,353 $ 1,578,203
Long lived tangible assets 696,169       561,585       696,169 561,585  
Subtotal Europe                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Long lived tangible assets 259,857       169,681       259,857 169,681  
Germany                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 486,452 593,769 628,709
Long lived tangible assets 147,878       81,388       147,878 81,388  
Sweden                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Long lived tangible assets 27,856       26,419       27,856 26,419  
Italy                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Long lived tangible assets 60,463       43,547       60,463 43,547  
Poland                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Long lived tangible assets 12,933       12,148       12,933 12,148  
Rest of Europe                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 8,547 10,964 16,628
Long lived tangible assets 10,727       6,179       10,727 6,179  
United States                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 289,482 394,349 401,935
Long lived tangible assets 258,181       220,200       258,181 220,200  
South Korea                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 173,452 241,235 279,016
Long lived tangible assets 120,551       112,303       120,551 112,303  
Brazil                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 64,823 94,541 95,611
Long lived tangible assets 17,166       23,662       17,166 23,662  
China                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 60,145 63,149 75,638
Long lived tangible assets 27,235       19,655       27,235 19,655  
South Africa                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 33,998 54,746 56,373
Long lived tangible assets 13,076       15,983       13,076 15,983  
Other                      
Revenues from External Customers and Long-Lived Assets [Line Items]                      
Revenues                 19,486 23,601 $ 24,293
Long lived tangible assets $ 103       $ 100       $ 103 $ 100  
v3.20.4
Related Parties - Narrative and Schedule of Related Party Transactions (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2020
USD ($)
related_party
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Equity Method Investee      
Related Party Transaction [Line Items]      
Number of related parties | related_party 1    
Principal Owner      
Related Party Transaction [Line Items]      
Number of related parties | related_party 1    
Affiliated Entity      
Related Party Transaction [Line Items]      
Trade receivables from DGW KG $ 0 $ 537  
Trade payables to DGW KG 11,800 17,671  
Purchased carbon black products from DGW KG 68,849 89,404 $ 93,536
Sales and services provided to DGW KG $ 1,639 $ 2,724 $ 6,464
v3.20.4
Quarterly Financial Information (Unaudited) - Schedule of Unaudited Financial Information by Quarter (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]                      
Net sales $ 315,692 $ 282,036 $ 202,648 $ 336,007 $ 322,428 $ 370,195 $ 399,016 $ 384,714 $ 1,136,383 $ 1,476,353 $ 1,578,203
Gross profit 89,030 79,182 33,944 90,193 88,987 98,714 104,038 97,969 292,348 389,708 429,971
Income from operations 25,571 24,147 (12,879) 37,543 32,596 38,386 41,470 34,699 74,382 147,151 196,305
Income from operations before income tax expense and equity in earnings of affiliated companies 12,966 11,106 (23,810) 25,534 25,533 31,886 33,904 28,256 25,795 119,579 167,663
Net income $ 8,906 $ 8,997 $ (17,780) $ 18,032 $ 18,965 $ 24,253 $ 24,748 $ 18,954 $ 18,156 $ 86,920 $ 121,310
Basic EPS (in USD per share) $ 0.15 $ 0.15 $ (0.30) $ 0.30 $ 0.32 $ 0.40 $ 0.41 $ 0.32 $ 0.30 $ 1.45 $ 2.04
Diluted EPS (in USD per share) $ 0.15 $ 0.15 $ (0.29) $ 0.29 $ 0.31 $ 0.39 $ 0.40 $ 0.32 $ 0.30 $ 1.42 $ 1.99