(Unaudited)
(Dollars in millions)
Note 1:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Company Operations
We, AMCOL International Corporation (the “Company”), are a global company focused on long-term profitability growth through the development and application of minerals and technology products and services for use in various industrial and consumer markets. We operate in five segments: performance materials, construction technologies, energy services, transportation and corporate.
Our performance materials segment is a leading supplier of bentonite related products.
Our construction technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide.
Our energy services segment offers a range of patented technologies, products and services for both upstream and downstream oil and gas production.
Our transportation segment, which serves our domestic subsidiaries as well as third parties, is a dry van and flatbed carrier and freight brokerage service provider.
Our corporate segment includes the elimination of intersegment sales as well as certain expenses associated with research and development, management, employee benefits and information technology activities for our Company. Approximately 77% and 71% of the revenue elimination in the three months ended March 31, 2013 and 2012, respectively, represents elimination of shipping revenues between our transportation segment and its domestic sister companies.
A significant portion of the products sold by our performance materials segment and, to a lesser extent, our construction technologies segment, utilize a mineral called bentonite. Bentonite has several valuable characteristics, including its ability to bind, swell, adsorb, control rheology, soften fabrics, and have its surface modified through chemical and physical reactions. We also develop applications for other specialty minerals, most significantly chromite and leonardite.
We earn revenues from the sale of finished products, provision of services, rental of equipment, and charges for shipping goods and materials to customers. Our service revenues are derived primarily from our construction technologies, energy services, and transportation segments; our transportation segment is purely service based.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
The composition of our revenues by segment is as follows:
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
Performance materials
|
|
|
50
|
%
|
|
|
53
|
%
|
Construction technologies
|
|
|
18
|
%
|
|
|
22
|
%
|
Energy services
|
|
|
31
|
%
|
|
|
23
|
%
|
Transportation
|
|
|
4
|
%
|
|
|
5
|
%
|
Intersegment sales
|
|
|
-3
|
%
|
|
|
-3
|
%
|
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
Further discussion of our segment information is included in Note 4, “Business Segment Information.”
Basis of Presentation
The financial information included herein has been prepared by management, and other than the condensed consolidated balance sheet as of December 31, 2012, is unaudited. The condensed consolidated balance sheet as of December 31, 2012 has been derived from, but does not include all of the disclosures contained in, the audited consolidated financial statements for the year ended December 31, 2012. The information furnished herein includes all adjustments that are, in our opinion, necessary for a fair presentation of our results of operations and cash flows for the interim periods ended March 31, 2013 and 2012, and our financial position as of March 31, 2013, and all such adjustments are of a normal and recurring nature. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2012.
Certain items in the prior year’s condensed consolidated financial statements contained herein and notes thereto have been reclassified to conform to the condensed consolidated financial statement presentation for the three months ended March 31, 2013. These reclassifications did not have a material impact on our financial statements.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year for a variety of reasons, including the seasonality of both our construction technologies segment, which varies due to the seasonal nature of the construction industry, and our energy services segment, which varies due to seasonal weather patterns in its various geographic markets.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
Note 2:
|
EARNINGS PER SHARE
|
The following table provides further share information used in calculating our earnings per share for the periods presented herein. Basic earnings per share was calculated by dividing net income attributable to AMCOL shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share was calculated by dividing net income attributable to AMCOL shareholders by the weighted average common shares outstanding after consideration of the dilutive effect of stock compensation awards outstanding during each period.
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
Weighted average number of common shares outstanding
|
|
|
32,383,863
|
|
|
|
31,979,894
|
|
Dilutive impact of stock based compensation
|
|
|
285,633
|
|
|
|
311,864
|
|
Weighted average number of common and common equivalent shares outstanding for the period
|
|
|
32,669,496
|
|
|
|
32,291,758
|
|
Number of common shares outstanding at the end of the period
|
|
|
32,287,200
|
|
|
|
31,891,418
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of anti-dilutive shares excluded from the computation of diluted earnings per share
|
|
|
270,792
|
|
|
|
591,028
|
|
|
|
|
|
|
|
|
|
|
Note 3:
|
ADDITIONAL BALANCE SHEET INFORMATION
|
Our inventories at March 31, 2013 and December 31, 2012 are comprised of the following components:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
Crude stockpile inventories
|
|
$
|
56.2
|
|
|
$
|
60.8
|
|
In-process and finished goods inventories
|
|
|
69.1
|
|
|
|
70.5
|
|
Other raw material, container, and supplies inventories
|
|
|
23.1
|
|
|
|
22.5
|
|
|
|
$
|
148.4
|
|
|
$
|
153.8
|
|
|
|
|
|
|
|
|
|
|
We mine various minerals using a surface mining process that requires the removal of overburden. In certain areas and under various governmental regulations, we are obligated to restore the land comprising each mining site to its original condition at the completion of the mining activity. We include an estimate of this reclamation liability in our condensed consolidated balance sheets; it is adjusted to reflect the passage of time, current activities, and changes in estimated future cash outflows. A reconciliation of the activity within our reclamation liability is as follows:
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
Balance at beginning of period
|
|
$
|
9.5
|
|
|
$
|
9.3
|
|
Settlement of obligations
|
|
|
(0.7
|
)
|
|
|
(1.3
|
)
|
Liabilities incurred and accretion expense
|
|
|
0.4
|
|
|
|
1.8
|
|
Foreign currency
|
|
|
(0.2
|
)
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period
|
|
$
|
9.0
|
|
|
$
|
9.9
|
|
|
|
|
|
|
|
|
|
|
Note 4:
|
BUSINESS SEGMENT INFORMATION
|
As previously mentioned, we operate in five segments. We determine our operating segments based on the discrete financial information that is regularly evaluated by our chief operating decision maker, our President and Chief Executive Officer, in deciding how to allocate resources and in assessing performance. Intersegment sales are not material and are eliminated in the corporate segment. Our reportable measure of profit or loss for each segment is operating profit, which is defined as net sales less cost of sales and selling, general and administrative expenses related to a segment’s operations. The costs deducted to arrive at operating profit do not include several items, such as net interest expense or income taxes. Segment assets are those assets used within each segment. Corporate assets include assets used in the operation of this segment as well as those used by or shared amongst our segments, including certain cash and cash equivalents, fixed assets, assets associated with certain employee benefit plans, and other miscellaneous assets.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
The following tables set forth certain financial information by segment:
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
Net sales:
|
|
|
|
|
|
|
Performance materials
|
|
$
|
117.2
|
|
|
$
|
125.2
|
|
Construction technologies
|
|
|
42.8
|
|
|
|
51.0
|
|
Energy services
|
|
|
73.1
|
|
|
|
55.3
|
|
Transportation
|
|
|
10.2
|
|
|
|
11.1
|
|
Intersegment sales
|
|
|
(6.6
|
)
|
|
|
(7.1
|
)
|
Total
|
|
$
|
236.7
|
|
|
$
|
235.5
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss):
|
|
|
|
|
|
|
|
|
Performance materials
|
|
$
|
15.9
|
|
|
$
|
21.5
|
|
Construction technologies
|
|
|
(1.8
|
)
|
|
|
0.9
|
|
Energy services
|
|
|
8.2
|
|
|
|
4.8
|
|
Transportation
|
|
|
0.2
|
|
|
|
0.2
|
|
Corporate
|
|
|
(6.2
|
)
|
|
|
(6.0
|
)
|
Total
|
|
$
|
16.3
|
|
|
$
|
21.4
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Mar 31, 2013
|
|
|
As of Dec. 31, 2012
|
|
Assets:
|
|
|
|
|
|
|
|
|
Performance materials
|
|
$
|
440.7
|
|
|
$
|
454.0
|
|
Construction technologies
|
|
|
153.7
|
|
|
|
157.6
|
|
Energy services
|
|
|
241.2
|
|
|
|
225.8
|
|
Transportation
|
|
|
3.6
|
|
|
|
4.0
|
|
Corporate
|
|
|
75.8
|
|
|
|
69.2
|
|
Total
|
|
$
|
915.0
|
|
|
$
|
910.6
|
|
|
|
|
|
|
|
|
|
|
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
Depreciation, depletion and amortization:
|
|
|
|
|
|
|
Performance materials
|
|
$
|
4.8
|
|
|
$
|
4.6
|
|
Construction technologies
|
|
|
1.4
|
|
|
|
1.4
|
|
Energy services
|
|
|
4.8
|
|
|
|
4.0
|
|
Transportation
|
|
|
-
|
|
|
|
-
|
|
Corporate
|
|
|
0.8
|
|
|
|
0.7
|
|
Total
|
|
$
|
11.8
|
|
|
$
|
10.7
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures:
|
|
|
|
|
|
|
|
|
Performance materials
|
|
$
|
4.1
|
|
|
$
|
6.5
|
|
Construction technologies
|
|
|
0.2
|
|
|
|
2.6
|
|
Energy services
|
|
|
16.1
|
|
|
|
6.0
|
|
Transportation
|
|
|
0.1
|
|
|
|
-
|
|
Corporate
|
|
|
2.1
|
|
|
|
1.5
|
|
Total
|
|
$
|
22.6
|
|
|
$
|
16.6
|
|
|
|
|
|
|
|
|
|
|
Research and development (income) expense:
|
|
|
|
|
|
|
|
|
Performance materials
|
|
$
|
1.8
|
|
|
$
|
1.7
|
|
Construction technologies
|
|
|
0.7
|
|
|
|
0.6
|
|
Energy services
|
|
|
0.5
|
|
|
|
0.1
|
|
Corporate
|
|
|
0.1
|
|
|
|
0.1
|
|
Total
|
|
$
|
3.1
|
|
|
$
|
2.5
|
|
|
|
|
|
|
|
|
|
|
Note 5:
|
EMPLOYEE BENEFIT PLANS
|
We have a defined benefit pension plan covering substantially all of our domestic employees hired before January 1, 2004. We also sponsor a supplementary pension plan that provides benefits in excess of qualified plan limitations for certain employees. Pension cost for both of our plans is comprised of :
|
|
Defined Benefit Pension Plan
|
|
|
Supplementary Pension Plan
|
|
|
|
Three Months Ended March 31,
|
|
|
Three Months Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Service cost
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Interest cost
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Expected return on plan assets
|
|
|
(0.7
|
)
|
|
|
(0.6
|
)
|
|
|
-
|
|
|
|
-
|
|
Amortization of acturial loss
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.1
|
|
Net periodic benefit cost
|
|
$
|
0.6
|
|
|
$
|
0.7
|
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012, we expect to contribute $1.2 to the defined benefit pension plan in 2013, of which $0.4 was contributed in the three months ended March 31, 2013.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
Our effective tax rate for the three months ended March 31, 2013 and 2012 was 27.5% and 26.5%, respectively. For both periods, the rate differs from the U.S. federal statutory rate of 35.0% largely due to depletion deductions, and differences in local tax rates on the income from our foreign subsidiaries.
In the normal course of business, we are subject to examination by taxing authorities throughout the world. With few exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2008. In general, the United States Internal Revenue Service (“IRS”) has examined our federal income tax returns for all years through 2009.
Note 7:
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
As a multinational corporation with operations throughout the world, we are subject to certain market risks. We use a variety of practices to manage these market risks, including, when considered appropriate, derivative financial instruments. We use derivative financial instruments only for risk management and not for trading or speculative purposes.
The following table sets forth the fair values of our derivative instruments and where they are recorded within our condensed consolidated balance sheet:
Liability Derivatives
|
Balance Sheet Location
|
|
Fair Value as of
|
|
|
|
|
March 31, 2013
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps
|
Other long-term liabilities
|
|
$
|
(7.8
|
)
|
|
$
|
(8.4
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges
|
|
Amount of Gain or (Loss) Recognized in Other
Comprehensive Income on Derivatives
|
|
|
|
(Effective Portion)
|
|
Derivatives in Cash Flow Hedging Relationships
|
|
Three Months Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps, net of tax
|
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
|
|
|
|
|
|
|
|
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
We use interest rate swaps to manage floating interest rate risk on debt securities. Interest rate differentials are paid or received on these arrangements over the life of the swap. As of March 31, 2013 and 2012, we had interest rate swaps outstanding which effectively hedge the variable interest rate on $30.0 of our senior notes to a fixed rate of 5.6% per annum and $33.0 of our borrowings under our revolving credit agreement to a fixed rate of 3.3% per annum, plus credit spread.
Other
We are exposed to potential gains or losses from foreign currency fluctuations affecting net investments and earnings denominated in foreign currencies. We are particularly sensitive to currency exchange rate fluctuations for the following currencies: British pound sterling (GBP), Chinese renminbi (CYN), Danish kroner (DKK), Euro, India rupee (INR), Malaysian ringgit (MYR), Norwegian krone (NOK), Polish Zloty (PLN), South African rand (ZAR), Swiss franc (SEK), and Thai baht (THB). When considered appropriate, we enter into foreign exchange derivative contracts to mitigate the risk of fluctuations on these exposures.
We have not designated our foreign currency derivative contracts for hedge accounting treatment and therefore, changes in fair value of these contracts are recorded in earnings as follows:
Derivatives Not Designated as Hedging Instruments
|
Location of Gain
or (Loss)
Recognized in
|
|
Amount of Gain or (Loss) Recognized
in Income on Derivatives
|
|
|
Income on
Derivatives
|
|
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange contracts
|
Other, net
|
|
$
|
0.1
|
|
|
$
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
We did not have any significant foreign exchange derivative instruments outstanding as of March 31, 2013 or December 31, 2012.
Note 8:
|
FAIR VALUE MEASUREMENTS
|
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. Our calculation of the fair value of derivative instruments includes several assumptions. The fair value hierarchy prioritizes these input assumptions in the following three broad levels:
Level 1 – Values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities we have the ability to access at the measurement date.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
Level 2 – Values are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and model based valuations for which all significant inputs are observable in the market.
Level 3 – Values are based on model based techniques that use unobservable inputs for the asset or liability. These inputs reflect our beliefs about the assumptions market participants would use in pricing the asset or liability.
The following tables categorize our fair value instruments, measured on a recurring basis, according to the assumptions used to calculate those values:
|
|
|
|
|
Fair Value Measurements Using
|
|
Description
|
|
Asset /
(Liability)
Balance at
3/31/2013
|
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Interest rate swaps
|
|
$
|
(7.8
|
)
|
|
$
|
-
|
|
|
$
|
(7.8
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities
|
|
|
8.7
|
|
|
|
8.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan assets
|
|
|
9.8
|
|
|
|
-
|
|
|
|
9.8
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary pension plan assets
|
|
|
8.6
|
|
|
|
-
|
|
|
|
8.6
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
Description
|
|
Asset /
(Liability)
Balance at
12/31/2012
|
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Interest rate swaps
|
|
$
|
(8.4
|
)
|
|
$
|
-
|
|
|
$
|
(8.4
|
)
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities
|
|
|
14.6
|
|
|
|
14.6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan assets
|
|
|
9.4
|
|
|
|
-
|
|
|
|
9.4
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary pension plan assets
|
|
|
8.2
|
|
|
|
-
|
|
|
|
8.2
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps are valued using discounted cash flows. The key input used is the LIBOR swap rate, which is observable at commonly quoted intervals for the full term of the swap. Available-for-sale securities are valued using quoted market prices. Deferred compensation and supplemental pension plan assets are valued using quoted prices for similar assets in active markets.
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
The carrying value of our long-term debt approximates its fair value as the interest rate is near the current market rate yield. The fair value of our long-term debt is determined using current applicable rates for similar instruments as of the balance sheet date. The fair value of long-term debt for disclosure purpose is a Level 3 liability within the fair value category.
Note 9:
|
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
|
The following tables summarize the additions to and reclassifications out of accumulated other comprehensive income (loss) attributable to the Company and the affected line items in the condensed consolidated statement of operations:
|
|
Three Months Ended March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
Pre-Tax
Amount
|
|
|
Tax
(Expense)
Benefit
|
|
|
Net-Of-
Tax
Amount
|
|
|
Pre-Tax
Amount
|
|
|
Tax
(Expense)
Benefit
|
|
|
Net-Of-
Tax
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
$
|
(9.9
|
)
|
|
$
|
-
|
|
|
$
|
(9.9
|
)
|
|
$
|
10.7
|
|
|
$
|
-
|
|
|
$
|
10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on available-for-sale securities
|
|
|
(5.9
|
)
|
|
|
1.2
|
|
|
|
(4.7
|
)
|
|
|
(0.9
|
)
|
|
|
-
|
|
|
|
(0.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) arising during period
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
|
(0.2
|
)
|
Reclassification of net (gain) loss to net income
|
|
|
0.6
|
|
|
|
(0.2
|
)
|
|
|
0.4
|
|
|
|
0.6
|
|
|
|
(0.2
|
)
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of net acturial loss to net income
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
0.4
|
|
|
|
0.3
|
|
|
|
(0.1
|
)
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss)
|
|
$
|
(14.9
|
)
|
|
$
|
1.1
|
|
|
$
|
(13.8
|
)
|
|
$
|
10.5
|
|
|
$
|
(0.3
|
)
|
|
$
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Reclassified Out of
Accumulated Other Comprehensive
Income (Loss)
|
|
Affected Line Item in the Statement Where
|
|
|
Three Months Ended March 31,
|
|
Net Income is Presented
|
|
|
2013
|
|
|
2012
|
|
|
Reclassification of net (gain) loss on interset rate swaps:
|
|
|
|
|
|
|
|
Pre-tax amount
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
Interest expense, net
|
Tax
|
|
|
(0.2
|
)
|
|
|
(0.2
|
)
|
Income tax expense
|
Net of tax
|
|
|
0.4
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of pension items:
|
|
|
|
|
|
|
|
|
|
Net acturial loss, pre-tax amount
|
|
|
0.3
|
|
|
|
0.3
|
|
Components of net periodic benefit cost
(see Employee Benefit Plans note for details)
|
Tax
|
|
|
0.1
|
|
|
|
(0.1
|
)
|
Income tax expense
|
Net of tax
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Total reclassifications for the period, net of tax
|
|
$
|
0.8
|
|
|
$
|
0.6
|
|
|
|
|
|
|
|
|
|
|
|
|
AMCOL INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(Dollars in millions)
Note 10:
|
REORGANIZING CHARGES
|
Our results for the three months ended March 31, 2013 include $2.7 of charges, mostly within our construction technologies segment, relating to closing or reorganizing certain of our operations, especially those in Europe. Of this $2.7, $2.2 was included in selling, general and administrative expense and $0.5 was included in cost of sales within our condensed consolidated statements of operations.
We are party to a number of lawsuits arising in the normal course of business. Our energy services segment is party to two lawsuits alleging damages caused by our coiled tubing operations in Louisiana; one lawsuit alleges damages of $28 and the other of $9. We do not believe that any of the aforementioned pending litigation will have a material adverse effect on our consolidated financial statements.