Company Quick10K Filing
Advansix
Price25.98 EPS2
Shares29 P/E12
MCap758 P/FCF8
Net Debt-10 EBIT78
TEV748 TEV/EBIT10
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-01
10-K 2019-12-31 Filed 2020-02-21
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-11-02
10-Q 2018-06-30 Filed 2018-08-03
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-10
10-Q 2017-03-31 Filed 2017-05-11
10-K 2016-12-31 Filed 2017-03-06
10-Q 2016-09-30 Filed 2016-11-10
8-K 2020-07-31 Earnings, Exhibits
8-K 2020-06-23
8-K 2020-05-01
8-K 2020-03-31
8-K 2020-03-12
8-K 2020-02-25
8-K 2020-02-21
8-K 2019-11-01
8-K 2019-08-01
8-K 2019-06-24
8-K 2019-06-11
8-K 2019-05-09
8-K 2019-05-02
8-K 2019-03-11
8-K 2019-02-22
8-K 2018-12-04
8-K 2018-11-02
8-K 2018-08-03
8-K 2018-06-14
8-K 2018-05-04
8-K 2018-02-21
8-K 2018-01-17

ASIX 10Q Quarterly Report

Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.2 q2202010-qexhibitsliet.htm
EX-31.1 a10q-22020exhibit311ceo.htm
EX-31.2 a10q-22020exhibit312cfo.htm
EX-32.1 a10q-22020exhibit321ce.htm
EX-32.2 a10q-22020exhibit322cf.htm

Advansix Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.31.00.80.50.30.02015201620182020
Assets, Equity
0.50.40.30.10.0-0.12015201620182020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12015201620182020
Ops, Inv, Fin

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____ to _____
Commission File Number: 1-37774
 AdvanSix Inc.
(Exact name of registrant as specified in its charter)

Delaware
81-2525089
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)

300 Kimball Drive, Suite 101, Parsippany, New Jersey
07054
(Address of principal executive offices)
(Zip Code)
(973) 526-1800
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareASIXNew York Stock Exchange


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý  No o 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ý
Accelerated filer  o
Non-accelerated filer  o
Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No ý

The Registrant had 28,030,271 shares of common stock, $0.01 par value, outstanding at July 24, 2020.


ADVANSIX INC.
FORM 10-Q
 
TABLE OF CONTENTS


 
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited)





ITEM 1. FINANCIAL STATEMENTS
 
ADVANSIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except share and per share amounts)
 
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Sales$233,022  $345,215  $535,735  $660,110  
Costs, expenses and other:
Costs of goods sold198,739  303,128  470,746  570,008  
Selling, general and administrative expenses17,911  20,009  34,651  39,422  
Interest expense, net1,887  1,328  3,846  2,434  
Other non-operating expense (income), net783  124  549  622  
Total costs, expenses and other219,320  324,589  509,792  612,486  
Income before taxes13,702  20,626  25,943  47,624  
Income tax expense2,273  5,280  5,938  12,104  
Net income$11,429  $15,346  $20,005  $35,520  
Earnings per common share
Basic$0.41  $0.54  $0.72  $1.25  
Diluted$0.41  $0.53  $0.71  $1.21  
Weighted average common shares outstanding
Basic28,012,883  28,162,007  27,977,684  28,489,486  
Diluted28,073,648  29,136,979  28,062,301  29,460,149  
 

See accompanying notes to Condensed Consolidated Financial Statements.
3

ADVANSIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)

 
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Net income$11,429  $15,346  $20,005  $35,520  
Foreign exchange translation adjustment  4  (57) 3  
Cash-flow hedges(73) (429) (1,909) (621) 
Other comprehensive income (loss), net of tax(73) (425) (1,966) (618) 
Comprehensive income$11,356  $14,921  $18,039  $34,902  

See accompanying notes to Condensed Consolidated Financial Statements.
4

ADVANSIX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share amounts)


June 30,
2020
December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents$72,663  $7,050  
Accounts and other receivables – net74,726  104,613  
Inventories – net183,724  171,710  
Taxes receivable10,173  2,047  
Other current assets8,633  5,117  
Total current assets349,919  290,537  
Property, plant and equipment – net764,029  755,881  
Operating lease right-of-use assets119,795  135,985  
Goodwill15,005  15,005  
Other assets37,251  38,561  
Total assets$1,285,999  $1,235,969  
LIABILITIES
Current liabilities:
Accounts payable$151,786  $205,911  
Accrued liabilities34,170  28,114  
Operating lease liabilities – short-term35,105  38,005  
Deferred income and customer advances5,263  19,696  
Total current liabilities226,324  291,726  
Deferred income taxes119,941  110,071  
Operating lease liabilities – long-term85,176  98,347  
Line of credit – long-term388,000  297,000  
Postretirement benefit obligations34,759  32,410  
Other liabilities11,012  5,537  
Total liabilities865,212  835,091  
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 200,000,000 shares authorized; 31,622,910 shares issued and 28,030,271 outstanding at June 30, 2020; 31,423,898 shares issued and 27,914,777 outstanding at December 31, 2019
316  314  
Preferred stock, par value $0.01; 50,000,000 shares authorized and 0 shares issued and outstanding at June 30, 2020 and December 31, 2019
    
Treasury stock at par (3,592,639 shares at June 30, 2020; 3,509,121 shares at December 31, 2019)
(36) (35) 
Additional paid-in capital182,753  180,884  
Retained earnings249,171  229,166  
Accumulated other comprehensive loss(11,417) (9,451) 
Total stockholders' equity420,787  400,878  
Total liabilities and stockholders' equity$1,285,999  $1,235,969  
See accompanying notes to Condensed Consolidated Financial Statements.
5

ADVANSIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 


Six Months Ended
June 30,
20202019
Cash flows from operating activities:
Net income $20,005  $35,520  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 29,564  27,872  
Loss on disposal of assets 48  1,901  
Deferred income taxes 10,506  10,109  
Stock based compensation2,900  5,574  
Accretion of deferred financing fees271  214  
Restructuring charges  12,623  
Changes in assets and liabilities:
Accounts and other receivables 29,830  34,771  
Inventories (12,014) (2,494) 
Taxes receivable(8,126) (2,028) 
Accounts payable (41,224) (30,586) 
Accrued liabilities 5,936  (1,771) 
Deferred income and customer advances (14,433) (19,372) 
Other assets and liabilities 5,290  (4,970) 
Net cash provided by operating activities 28,553  67,363  
Cash flows from investing activities:
Expenditures for property, plant and equipment (51,602) (71,201) 
Other investing activities (525) (1,285) 
Net cash used for investing activities (52,127) (72,486) 
Cash flows from financing activities:
Borrowings from line of credit219,500  210,250  
Payments of line of credit(128,500) (155,250) 
Payment of line of credit facility fees(425)   
Principal payments of finance leases(358) (2,377) 
Purchase of treasury stock(1,032) (40,267) 
Issuance of common stock2  16  
Net cash provided by financing activities 89,187  12,372  
Net change in cash and cash equivalents 65,613  7,249  
Cash and cash equivalents at beginning of period7,050  9,808  
Cash and cash equivalents at the end of period$72,663  $17,057  
Supplemental non-cash investing activities:
Capital expenditures included in accounts payable $6,038  $18,451  
Supplemental cash activities:
Cash paid for interest$2,864  $2,295  
Cash paid for income taxes$261  $6,576  
See accompanying notes to Condensed Consolidated Financial Statements.
6

ADVANSIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)


Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated  Other Comprehensive Income (Loss)Total Equity
SharesAmount
Balance at December 31, 201931,423,898  $314  $180,884  $229,166  $(35) $(9,451) $400,878  
Net Income—  —  —  8,576  —  —  8,576  
Comprehensive income
Foreign exchange translation adjustments—  —  —  —  —  (57) (57) 
Cash-flow Hedges—  —  —  —  —  (1,836) (1,836) 
Pension obligation adjustments—  —  —  —  —  —    
Other comprehensive income (loss), net of tax—  —  —  —  —  (1,893) (1,893) 
Issuance of common stock154,495  2  —  —  —  —  2  
Purchase of treasury stock (73,157 shares)
—  —  (924) —  (1) —  (925) 
Stock-based compensation—  —  1,198  —  —  —  1,198  
Balance at March 31, 202031,578,393  316  181,158  237,742  (36) (11,344) 407,836  
Net Income—  —  —  11,429  —  —  11,429  
Comprehensive income
Foreign exchange translation adjustments—  —  —  —  —      
Cash-flow Hedges—  —  —  —  —  (73) (73) 
Pension obligation adjustments—  —  —  —  —  —    
Other comprehensive income (loss), net of tax—  —  —  —  —  (73) (73) 
Issuance of common stock44,517  —  —  —  —  —    
Purchase of treasury stock (10,361 shares)
—  —  (107) —  —  —  (107) 
Stock-based compensation—  —  1,702  —  —  —  1,702  
Balance at June 30, 202031,622,910  $316  $182,753  $249,171  $(36) $(11,417) $420,787  




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ADVANSIX INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated  Other Comprehensive Income (Loss)Total Equity
SharesAmount
Balance at December 31, 201830,555,715  $306  $234,699  $187,819  $(12) $(2,474) $420,338  
Net Income—  —  —  20,174  —  —  20,174  
Comprehensive income
Foreign exchange translation adjustments—  —  —  —  —  (1) (1) 
Cash-flow Hedges—  —  —  —  —  (192) (192) 
Pension obligation adjustments—  —  —  —  —  —    
Other comprehensive income (loss), net of tax—  —  —  —  —  (193) (193) 
Issuance of common stock22,497  —  16  —  —  —  16  
Purchase of treasury stock (793,754 shares)
—  —  (23,845) —  (8) —  (23,853) 
Stock-based compensation—  —  2,762  —  —  —  2,762  
Balance at March 31, 201930,578,212  306  213,632  207,993  (20) (2,667) 419,244  
Net Income—  —  —  15,346  —  —  15,346  
Comprehensive income
Foreign exchange translation adjustments—  —  —  —  —  4  4  
Cash-flow Hedges—  —  —  —  —  (429) (429) 
Pension obligation adjustments—  —  —  —  —  —    
Other comprehensive income (loss), net of tax—  —  —  —  —  (425) (425) 
Issuance of common stock13,260  —    —  —  —    
Purchase of treasury stock (578,045 shares)
—  —  (16,408) —  (6) —  (16,414) 
Stock-based compensation—  —  2,812  —  —  —  2,812  
Balance at June 30, 201930,591,472  $306  $200,036  $223,339  $(26) $(3,092) $420,563  









See accompanying notes to Condensed Consolidated Financial Statements.
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ADVANSIX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts and as otherwise noted)




1. Organization, Operations and Basis of Presentation
 
Description of Business
 
AdvanSix Inc. (“AdvanSix”, the “Company”, "we" or "our") is an integrated manufacturer of Nylon 6, a polymer resin which is a synthetic material used by our customers to produce fibers, filaments, engineered plastics and films that, in turn, are used in such end-products as carpets, automotive and electronic components, sports apparel, food packaging and other industrial applications. As a result of our backward integration and the configuration of our manufacturing facilities, we also sell a variety of other products, all of which are produced within unit operations across our manufacturing value chain, including caprolactam, ammonium sulfate fertilizers, acetone and other chemical intermediates.

COVID-19

In March 2020, the World Health Organization categorized the novel coronavirus ("COVID-19") as a global pandemic with numerous countries around the world declaring national emergencies, including the United States. Since early 2020, COVID-19 has continued to spread rapidly, with most countries and territories worldwide having confirmed cases, and with certain jurisdictions experiencing resurgences. The spread has resulted in authorities implementing numerous measures to contain the virus, such as travel bans and restrictions, quarantines, shelter-in-place orders and business shutdowns. The pandemic and these containment measures have had, and are expected to continue to have, a substantial negative impact on businesses around the world and on global, regional and national economies, including disruptions to supply chains, reduced demand and production across most industries, declines and volatility within global financial markets and decreased workforces causing increased unemployment. Although countries and regions are in various phases of re-opening, certain jurisdictions have returned to certain restrictions in light of new COVID-19 cases.

The U.S. Department of Homeland Security designated our industry as "essential critical infrastructure" during the response to COVID-19 for both public health and safety as well as community well-being, and we continue to execute our business continuity plans to maintain operations and meet customer demand.

The Company continues to evaluate the potential impact of The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020. The CARES Act, and other government stimulus programs are intended to provide economic relief resulting from the COVID-19 pandemic which includes, but is not limited to, provisions for taxes, employment related costs, deferral of pension payments and options for liquidity.

The Company’s Condensed Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenue and expenses during the periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s first quarter 2020 results of operations. In the second quarter of 2020, the Company experienced lower demand, resulting in a reduction of utilization rates and a decrease in overall sales volume compared to the prior year period, primarily related to global markets and the economic impact of COVID-19. The situation surrounding COVID-19 remains fluid and unpredictable, and the potential for a continued material impact on the Company increases the longer the social and economic restrictions which impact the overall level of consumer and business activity in the United States and globally, remain in place or are reinstituted. For this reason, the Company cannot reasonably estimate with any degree of certainty the future impact COVID-19 may have on the Company’s results of operations, financial position, and liquidity.

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Rule 10-01 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the Company's financial position as of June 30, 2020, and its results of operations for the three and six months ended June 30, 2020 and 2019 and cash flows for the six months ended June 30, 2020 and 2019. The year-end Condensed Consolidated Balance Sheet data were derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The
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ADVANSIX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts and as otherwise noted)



results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the full fiscal year.  These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the "2019 Form 10-K"). All intercompany transactions have been eliminated.
 
Certain prior period amounts have been reclassified for consistency with the current period presentation.
 
It is our practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires our businesses to close their books on a Saturday in order to minimize the potentially disruptive effects of quarterly closing on our business processes. Historically, the effects of this practice were generally not significant to reported results for any quarter and only existed within a reporting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-date results, we will provide the appropriate disclosures. Our actual closing dates for the three and six months ended June 30, 2020 and 2019 were June 27, 2020 and June 29, 2019, respectively.
 
Liabilities to creditors to whom we have issued checks that remained outstanding at June 30, 2020 and December 31, 2019 aggregated $2.1 million and $1.7 million, respectively, and were included in Cash and cash equivalents and Accounts payable in the Condensed Consolidated Balance Sheets.
On May 4, 2018, the Company announced that its Board of Directors (the “Board”) authorized a share repurchase program of up to $75 million of the Company’s common stock. On February 22, 2019, the Company announced that the Board authorized a share repurchase program of up to an additional $75 million of the Company's common stock, which was in addition to the remaining capacity available under the May 2018 share repurchase program. Repurchases may be made from time to time on the open market, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The size and timing of these repurchases will depend on pricing, market and economic conditions, legal and contractual requirements and other factors. The share repurchase program has no expiration date and may be modified, suspended or discontinued at any time. The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.
As of June 30, 2020, the Company had repurchased 3,592,639 shares of common stock, including 502,877 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $101.7 million at a weighted average market price of $28.31 per share. As of June 30, 2020, $59.6 million remained available for share repurchases under the current authorization. During the period July 1, 2020 through July 24, 2020, no additional shares were repurchased under the currently authorized repurchase program.

2. Recent Accounting Pronouncements
 
The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations.

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. The amendments of ASU No. 2020-04 are effective for companies as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The amendments in this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The Company is evaluating the impact that the amendments of this standard would have on the Company's consolidated financial position or results of operations upon adoption.

On December 18, 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes the exception to the general principles in ASC 740, Income Taxes, associated with the incremental approach for intra-period tax allocation, accounting for basis differences when there are ownership changes in foreign investments and interim-period income tax accounting for year-to-date losses that exceed anticipated losses. In addition, the ASU improves the application of income tax related guidance and simplifies U.S. GAAP when accounting for franchise taxes that are partially based on income, transactions with government resulting in a step-up in tax basis goodwill, separate financial statements of legal entities not subject to tax, and enacted changes in tax laws in interim periods. Different transition
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ADVANSIX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts and as otherwise noted)



approaches, retrospective, modified retrospective, or prospective, will apply to each income tax simplification provision. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments in this update is permitted, including adoption in any interim period. The Company is evaluating these changes and does not anticipate any material impact on the Company’s consolidated financial position or results of operations upon adoption.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments of ASU No. 2018-13 are effective for companies for fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-13 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates step 2, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill, from the goodwill impairment test. The amendments of ASU No. 2017-04 are effective for companies for fiscal years beginning after December 15, 2019 and requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The Company adopted ASU 2017-04 effective January 1, 2020, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments of ASU No. 2016-13 are effective for companies for fiscal years beginning after December 15, 2019 and modify existing guidance related to the measurement of credit losses on financial instruments, including trade and loan receivables. The new guidance requires impairments to be measured based on expected losses over the life of the asset rather than incurred losses. The Company adopted ASU 2016-13 effective January 1, 2020, using a modified retrospective approach, which did not have a material impact on the Company's consolidated financial position or results of operations upon adoption.

3. Revenues

Revenue Recognition

We serve approximately 400 customers annually in more than 40 countries and across a wide variety of industries. For the three months ended June 30, 2020 and 2019, the Company's ten largest customers accounted for approximately 50% and 47% of total sales, respectively. For the six months ended June 30, 2020 and 2019, the Company's ten largest customers accounted for approximately 48% and 46% of total sales, respectively.
We typically sell to customers under master service agreements, with primarily one-year terms, or by purchase orders. We have historically experienced low customer turnover and have long-standing customer relationships, which span decades. Our largest customer is Shaw Industries Group Inc. (“Shaw”), a significant consumer of caprolactam and Nylon 6 resin. We sell Nylon 6 resin and caprolactam to Shaw under a long-term agreement. For the three months ended June 30, 2020 and 2019, our sales to Shaw were 17% and 19%, respectively, of our total sales. For the six months ended June 30, 2020 and 2019, our sales to Shaw were 20% and 21%, respectively, of our total sales.

Each of the Company’s product lines represented the following approximate percentage of total sales for the three and six months ended June 30, 2020 and 2019:
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Nylon22%27%24%29%
Caprolactam15%20%19%20%
Ammonium Sulfate Fertilizers34%27%28%25%
Chemical Intermediates29%26%29%26%
100%100%100%100%

The Company's revenues by geographic area for the three and six months ended June 30, 2020 and 2019 were as follows:
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ADVANSIX INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except share and per share amounts and as otherwise noted)



Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
United States$176,313  $289,551  $406,756  $547,193  
International56,709  55,664  128,979  112,917  
Total$233,022  $345,215  $535,735  $660,110  

Deferred Income and Customer Advances
The Company defers revenues when cash payments are received in advance of our performance. Customer advances relate primarily to sales from the ammonium sulfate business. Below is a roll-forward of Deferred income and customer advances for the six months ended June 30, 2020:
Opening balance January 1, 2020$19,696  
Additions to deferred income and customer advances4,220  
Less amounts recognized in revenues(18,653) 
Ending balance June 30, 2020$5,263  
The Company expects to recognize as revenue the June 30, 2020 ending balance of Deferred income and customer advances within one year or less.

4. Earnings Per Share
 
The computation of basic and diluted earnings per share ("EPS") is based on Net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. The details of the basic and diluted EPS calculations for the three and six months ended June 30, 2020 and 2019 were as follows:
 
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Basic
Net Income$11,429  $