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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________
 FORM 10-Q
_______________________________________________________________________
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2021
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 001-38694
__________________________________________________________________________
LIVENT CORPORATION
(Exact name of registrant as specified in its charter)
__________________________________________________________________________ 
Delaware 82-4699376
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
1818 Market Street
Philadelphia
Pennsylvania
19103
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: 215-299-5900
__________________________________________________________________________
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 $0.001 per shareLTHMNew 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     NO  
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      NO  
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 

  ACCELERATED FILER 
NON-ACCELERATED FILER 
  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.


INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A SHELL COMPANY (AS DEFINED IN RULE 12B-2 OF THE EXCHANGE ACT).    YES      NO  
As of September 30, 2021, there were 161,575,016 shares of Common Stock, $0.001 par value per share, outstanding.



LIVENT CORPORATION
INDEX
 
 Page
No.

2


Glossary of Terms
When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:
2025 Notes$245.75 million principal amount 4.125% Convertible Senior Notes due 2025, including $20.75 million issued upon exercise of the Over-Allotment Option on July 7, 2020.
ASCAccounting Standards Codification, under U.S. GAAP
ASC 842Accounting Standards Codification Topic 842 - Leases
ASUAccounting Standards Update, under U.S. GAAP
ASU 2020-06
ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity
Credit AgreementThe Original Credit Agreement, as amended on May 6, 2020, by the First Amendment and August 3, 2020, by the Second Amendment
EAETREstimated annual effective tax rate
ESGEnvironmental, social and governance
EVElectric vehicle
FASBFinancial Accounting Standards Board
First AmendmentOn May 6, 2020, Livent Corporation entered into the First Amendment to the Credit Agreement to amend and restate the Original Credit Agreement
FMCFMC Corporation
FMC PlanFMC Corporation Incentive Compensation and Stock Plan
IPOInitial public offering
Livent NQSPLivent Non-Qualified Savings Plan
Livent PlanLivent Corporation Incentive Compensation and Stock Plan
NemaskaNemaska Lithium Shawinigan Transformation Inc., a subsidiary of Nemaska Lithium Inc. a
Canadian lithium producer based in Québec, Canada
Nemaska Project The ownership and operation of the business previously conducted by Nemaska, by a consortium in which Livent indirectly owns a 25% equity interest through its investment in QLP.
Nemaska TransactionThe transaction through which a consortium has purchased and operates the business previously conducted by Nemaska Lithium Inc.
Offering
On June 15, 2021, the Company closed on the issuance of 14,950,000 shares of its common stock, par value $0.001 per share, at a public offering price of $17.50 per share, in an underwritten public offering. Total net proceeds from the offering were $252.2 million.
Original Credit AgreementOn September 18, 2018 Livent Corporation entered into the credit agreement, which provides for a $400 million senior secured revolving credit facility
Over-Allotment OptionOption to purchase an additional $20.75 million principal amount of 2025 Notes exercised on July 7, 2020.
QLP
Québec Lithium Partners, a joint venture owned equally by The Pallinghurst Group and Livent. QLP owns a 50% equity interest in the Nemaska Project.
Revolving Credit FacilityLivent's $400 million senior secured revolving credit facility
RSURestricted stock unit
SECSecurities and Exchange Commission
Second AmendmentOn August 3, 2020, Livent Corporation entered into the Second Amendment to the Credit Agreement to amend the Credit Agreement
Securities ActSecurities Act of 1933
SeparationOn October 15, 2018, Livent completed its IPO and sold 20 million shares of Livent common stock to the public at a price of $17.00 per share
Tax ActTax Cuts and Jobs Act
U.S. GAAPUnited States Generally Accepted Accounting Principles
3



PART I - FINANCIAL INFORMATION
 
ITEM 1.    FINANCIAL STATEMENTS

LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in Millions, Except Per Share Data)(unaudited)
Revenue$103.6 $72.6 $297.5 $206.0 
Cost of sales85.3 69.8 245.5 178.4 
Gross margin18.3 2.8 52.0 27.6 
Selling, general and administrative expenses11.8 10.0 34.2 31.1 
Research and development expenses0.8 1.0 2.2 2.8 
Restructuring and other charges1.1 4.4 3.4 10.1 
Separation-related costs0.8 0.6 1.3 0.8 
Total costs and expenses99.8 85.8 286.6 223.2 
Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates and interest expense, net3.8 (13.2)10.9 (17.2)
Loss on debt extinguishment   0.1 
Equity in net loss of unconsolidated affiliates1.0 0.1 3.7 0.4 
Interest expense, net 0.3 0.3 0.3 
Income/(loss) from operations before income taxes2.8 (13.6)6.9 (18.0)
Income tax expense/(benefit)15.4 (3.1)13.8 (5.4)
Net loss$(12.6)$(10.5)$(6.9)$(12.6)
Net loss per weighted average share - basic and diluted$(0.08)$(0.07)$(0.05)$(0.09)
Weighted average common shares outstanding - basic and diluted 161.6 146.3 152.3 146.2 










The accompanying notes are an integral part of these condensed consolidated financial statements.
4


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
 
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in Millions)(unaudited)
Net loss$(12.6)$(10.5)$(6.9)$(12.6)
Other comprehensive (loss)/income, net of tax:
Foreign currency adjustments:
Foreign currency translation (loss)/gain arising during the period(1.1)3.0 (0.2)1.4 
Total foreign currency translation adjustments(1.1)3.0 (0.2)1.4 
Derivative instruments:
Unrealized hedging losses, net of tax of less than $0.1
(0.1)  (0.2)
Total derivative instruments loss, net of tax of less than $0.1
(0.1)  (0.2)
Other comprehensive (loss)/income, net of tax(1.2)3.0 (0.2)1.2 
Comprehensive loss$(13.8)$(7.5)$(7.1)$(11.4)





























The accompanying notes are an integral part of these condensed consolidated financial statements.
5


LIVENT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in Millions, Except Share and Par Value Data)September 30, 2021December 31, 2020
ASSETS(unaudited)
Current assets
Cash and cash equivalents$195.3 $11.6 
Trade receivables, net of allowance of $0.3 and $0.4, respectively
83.0 76.3 
Inventories, net110.2 105.6 
Prepaid and other current assets43.8 56.3 
Total current assets432.3 249.8 
Investments23.2 23.8 
Property, plant and equipment, net of accumulated depreciation of $238.3 and $222.4, respectively
605.3 545.3 
Deferred income taxes2.2 13.4 
Right of use assets - operating leases, net 6.4 16.1 
Other assets81.6 88.4 
Total assets$1,151.0 $936.8 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, trade and other$49.7 $43.9 
Accrued customer rebates  0.3 
Accrued and other current liabilities35.7 36.7 
Operating lease liabilities - current 1.0 1.4 
Income taxes2.3  
Total current liabilities88.7 82.3 
Long-term debt 240.1 274.6 
Operating lease liabilities - long-term5.5 14.8 
Environmental liabilities6.2 6.1 
Deferred income taxes7.8 5.6 
Other long-term liabilities18.2 17.2 
Commitments and contingent liabilities (Note 13)
Total current and long-term liabilities366.5 400.6 
Equity
Common stock; $0.001 par value; 2 billion shares authorized in 2018; 161,676,147 and 146,461,249 shares issued; 161,575,016 and 146,361,981 outstanding at September 30, 2021 and December 31, 2020, respectively
0.1 0.1 
Capital in excess of par value of common stock 776.4 520.9 
Retained earnings 53.4 60.3 
Accumulated other comprehensive loss(44.6)(44.4)
Treasury stock, common; 101,131 and 99,268 shares at September 30, 2021 and December 31, 2020, respectively
(0.8)(0.7)
Total equity784.5 536.2 
Total liabilities and equity$1,151.0 $936.8 




The accompanying notes are an integral part of these condensed consolidated financial statements.
6


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Nine Months Ended September 30,
20212020
 (in Millions)
(unaudited)
Cash provided by operating activities:
Net loss$(6.9)$(12.6)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization18.7 17.7 
Restructuring and other charges(0.8)4.3 
Deferred income taxes11.2 (5.7)
Separation-related costs 0.1 
Share-based compensation4.0 3.4 
Change in investments in trust fund securities0.4 0.1 
Loss on debt extinguishment 0.1 
Deferred financing fees amortization0.3 0.3 
Equity in net loss of unconsolidated affiliates3.7 0.4 
Changes in operating assets and liabilities:
Trade receivables, net(6.2)17.5 
Inventories(4.2)(0.1)
Accounts payable, trade and other5.5 (40.9)
Change in deferred compensation 1.2 0.4 
Income taxes2.3 (0.9)
Change in prepaid and other current assets and other assets16.6 (5.5)
Change in accrued and other current liabilities and other long-term liabilities(4.8)22.9 
Cash provided by operating activities41.0 1.5 
Cash used in investing activities:
Capital expenditures(1)
(69.4)(110.0)
Investments in trust fund securities(1.2)(0.4)
       Investment in unconsolidated affiliate(2.5) 
Other investing activities(1.2)(1.4)
Cash used in investing activities(74.3)(111.8)
Cash provided by financing activities:
Proceeds from Revolving Credit Facility 39.5 147.0 
Repayments of Revolving Credit Facility(75.1)(276.5)
Proceeds from 2025 Notes 245.7 
Payments of financing fees (8.4)
Proceeds from Offering261.6  
Payments of underwriting fees and expenses - Offering (9.4) 
       Proceeds of issuance of common stock - incentive plans 0.3 0.4 
Cash provided by financing activities216.9 108.2 
Effect of exchange rate changes on cash and cash equivalents0.1 0.1 
Increase/(decrease) in cash and cash equivalents183.7 (2.0)
Cash and cash equivalents, beginning of period11.6 16.8 
Cash and cash equivalents, end of period$195.3 $14.8 
7


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Nine Months Ended September 30,
20212020
Supplemental Disclosure for Cash Flow:(unaudited)
Cash payments for income taxes, net (2)
$0.5 $2.8 
Cash payments for interest, net (1)
$12.9 $4.8 
Cash payments for Restructuring and other charges$4.2 $5.8 
Cash payments for Separation-related charges$1.4 $0.7 
Accrued capital expenditures$17.8 $7.8 
Operating lease right-of-use assets and lease liabilities recorded for ASC 842$2.1 $0.8 
____________________
1.For the nine months ended September 30, 2021, and 2020 $11.5 million and $8.1 million of interest expense was capitalized, respectively.
2.Nine months ended September 30, 2021 includes $1.7 million of refunds relating to U.S. state taxes and foreign taxes. Nine months ended September 30, 2020 includes $1.9 million refund from FMC related to the Company's 2018 federal income tax return.
























The accompanying notes are an integral part of these condensed consolidated financial statements.
8


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
(in Millions Except Per Share Data)
Common Stock, $0.001 Per Share Par Value
Capital In Excess of Par Retained Earnings Accumulated Other Comprehensive LossTreasury StockTotal
Balance, December 31, 2019$0.1 $516.4 $76.6 $(48.3)$(0.8)$544.0 
Net loss— — (1.9)— — (1.9)
Stock compensation plans — 1.2 — — — 1.2 
Shares withheld for taxes - common stock issuances— (0.7)— — — (0.7)
Foreign currency translation adjustments— — — (1.8)— (1.8)
Balance, March 31, 2020$0.1 $516.9 $74.7 $(50.1)$(0.8)$540.8 
Net loss— — (0.2)— — (0.2)
Stock compensation plans— 1.0 — — — 1.0 
Net hedging losses, net of income tax— — — (0.2)— (0.2)
Foreign currency translation adjustments— — — 0.2 — 0.2 
Exercise of stock options — 0.1 — — — 0.1 
Balance, June 30, 2020$0.1 $518.0 $74.5 $(50.1)$(0.8)$541.7 
Net loss— — (10.5)— — (10.5)
Stock compensation plans— 1.2 — — — 1.2 
Exercise of stock options — 0.3 — — — 0.3 
Foreign currency translation adjustments— — 3.0 — 3.0 
Balance, September 30, 2020$0.1 $519.5 $64.0 $(47.1)$(0.8)$535.7 
Balance, December 31, 2020$0.1 $520.9 $60.3 $(44.4)$(0.7)$536.2 
Net loss— — (0.8)— — (0.8)
Stock compensation plans — 1.2 — — — 1.2 
Exercise of stock options — 0.2 — — — 0.2 
Shares withheld for taxes - common stock issuances— (0.8)— — — (0.8)
Net purchases of treasury stock - nonqualified plan— — — — (0.1)(0.1)
Foreign currency translation adjustments— — — (0.3)— (0.3)
Balance, March 31, 2021$0.1 $521.5 $59.5 $(44.7)$(0.8)$535.6 
Net income— — 6.5 — — 6.5 
Stock compensation plans— 1.4 — — — 1.4 
Net hedging gains, net of income tax— — — 0.1 — 0.1 
Issuance of common stock - Offering— 252.3 — — — 252.3 
Foreign currency translation adjustments— — — 1.2 — 1.2 
Balance, June 30, 2021$0.1 $775.2 $66.0 $(43.4)$(0.8)$797.1 
Net loss—  (12.6)  (12.6)
Stock compensation plans— 1.4    1.4 
Issuance of common stock - Offering— (0.1) —  (0.1)
Shares withheld for taxes - common stock issuances— (0.2) —  (0.2)
Net hedging losses, net of income tax— —  (0.1) (0.1)
Exercise of stock options— 0.1  —  0.1 
Foreign currency translation adjustments—   (1.1) (1.1)
Balance, September 30, 2021$0.1 $776.4 $53.4 $(44.6)$(0.8)$784.5 


The accompanying notes are an integral part of these condensed consolidated financial statements.
9

LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited)

Note 1: Description of the Business
Background and Nature of Operations
Livent Corporation (“Livent”, “we”, “us”, "company" or “our”) manufactures lithium for use in a wide range of lithium products, which are used primarily in lithium-based batteries, specialty polymers and chemical synthesis applications. We serve a diverse group of markets. Our product offerings generally have few cost-effective substitutes. A major growth driver for lithium in the future will be the rate of adoption of electric vehicles.
Most markets for lithium chemicals are global with significant growth occurring in Asia, Europe and North America, primarily driven by the development and manufacturing of lithium-ion batteries. We are one of the few leading global producers of performance lithium compounds.
Note 2: Principal Accounting Policies and Related Financial Information
The accompanying condensed consolidated financial statements were prepared in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain notes or other financial information that are normally required by U.S. GAAP have been condensed or omitted from these interim financial statements. The financial statements included in this report reflect all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of our condensed consolidated financial position as of September 30, 2021 and December 31, 2020, the condensed consolidated results of operations for the three and nine months ended September 30, 2021 and 2020, and the condensed consolidated cash flows for the nine months ended September 30, 2021 and 2020. The unaudited results of operations for the interim periods reported are not necessarily indicative of results to be expected for the full year. These statements, therefore, should be read in conjunction with the annual consolidated and combined financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the "2020 Annual Report on Form 10-K").
Estimates and assumptions
In preparing the financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Due to the current coronavirus ("COVID-19") pandemic, there has been uncertainty and disruption in the global economy and financial markets. The estimates used for, but not limited to, the collectability of trade receivables, fair value of long-lived assets, income taxes, inventory valuation and fair value of financial instruments could be impacted. We have assessed the impact and are not aware of any specific events or circumstances that required an update to our estimates and assumptions or materially affected the carrying value of our assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions.
4.125% Convertible Senior Notes due 2025 (the “2025 Notes”)
We account for our 2025 Notes under Accounting Standards Update ("ASU") No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"), which we early adopted January 1, 2021 under the full retrospective method. See Note 3 and Note 9 for details.

There were no other significant changes to our accounting policies that are set forth in detail in Note 2 to our annual consolidated and combined financial statements in Part II, Item 8 of our 2020 Annual Report on Form 10-K.

Note 3: Recently Issued and Adopted Accounting Pronouncements and Regulatory Items
New accounting guidance and regulatory items
In April 2020, the Financial Accounting Standard Board ("FASB") issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU 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. An entity may optionally elect to apply the amendments effective in the first interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are evaluating the effect the guidance will have on our condensed consolidated financial statements.
10


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Recently adopted accounting guidance
In August 2020, FASB issued ASU 2020-06. The ASU reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. As compared with current U.S. GAAP, more convertible debt instruments will be reported as a single liability instrument and the interest rate of more convertible debt instruments will be closer to the coupon interest rate. The ASU also aligns the consistency of diluted Earnings Per Share ("EPS") calculations for convertible instruments by requiring that (1) an entity use the if-converted method and (2) share settlement be included in the diluted EPS calculation for both convertible instruments and equity contracts when those contracts include an option of cash settlement or share settlement. The ASU is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB has specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. We elected to early adopt ASU 2020-06 on January 1, 2021, using the full retrospective method. Prior to adoption, under Accounting Standards Codification 470-20, Debt with Conversion and Other Options ("ASC 470-20"), we had separately accounted for the liability and equity components of our 2025 Notes, which may be settled entirely or partially in cash upon conversion, in a manner that reflected the issuer’s economic interest cost. The effect of ASC 470-20 on the accounting for the 2025 Notes was that the equity component was required to be included in the additional paid-in capital section of stockholders’ equity on our consolidated balance sheet, and the value of the equity component was treated as original issue discount for purposes of accounting for the debt component of the 2025 Notes. As a result, prior to the adoption of ASU 2020-06, we were required to record a greater amount of non-cash interest expense as a result of the amortization of the discounted carrying value of the 2025 Notes to their face amount over the term of the 2025 Notes. Because we intend to settle in cash the principal outstanding under our 2025 Notes, we previously used the treasury stock method when calculating their potential dilutive effect, if any. ASU 2020-06 now requires us to use the if-converted method for EPS. For the full retrospective method of adoption, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in our consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. See Note 9 and Note 11 for further details.
In December 2019, FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principle in Topic 740. The amendments also contain improvements and clarifications of certain guidance in Topic 740. The new amendments are effective for fiscal years beginning after December 15, 2020 (i.e. a January 1, 2021 effective date), with early adoption permitted. We adopted the amendments as of January 1, 2021 and the adoption did not have a material impact on our condensed consolidated financial statements.

Note 4: Revenue Recognition     
Disaggregation of revenue
We disaggregate revenue from contracts with customers by geographical areas and by product categories. The following table provides information about disaggregated revenue by major geographical region:
(in Millions)Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
North America (1)
$20.0 $11.0 $63.4 $40.5 
Latin America   0.1 
Europe, Middle East & Africa14.2 9.8 46.0 32.3 
Asia Pacific (1)
69.4 51.8 188.1 133.1 
Total Revenue$103.6 $72.6 $297.5 $206.0 
1.During the three months ended September 30, 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States, and China. Sales for the three months ended September 30, 2021 for Japan, the United States, and China totaled $24.5 million, $19.7 million, $36.6 million, respectively. During the nine months ended September 30, 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States, and China. Sales for the nine months ended September 30, 2021 for Japan, the United States, and China totaled $65.1 million, $62.7 million, $89.9 million, respectively. During the three months ended September 30, 2020, countries with sales in excess of 10% of combined revenue consisted of Japan, the United States and China. Sales for the three months ended September 30, 2020 for Japan, the United States and China totaled $23.5 million, $11.0 million, and $19.0 million, respectively. During the nine months ended September 30, 2020, countries with sales in excess of 10% of combined
11


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
revenue consisted of Japan, the United States and China. Sales for the nine months ended September 30, 2020 for Japan, the United States and China totaled $81.1 million, $40.0 million, and $29.1 million, respectively.
For the three months ended September 30, 2021, one customer accounted for approximately 35% of total revenue and our 10 largest customers accounted in aggregate for approximately 69% of total revenue. For the three months ended September 30, 2020, two customers accounted for approximately 34% and 10% of total revenue, respectively, and our 10 largest customers accounted in aggregate for approximately 68% of total revenue. For the nine months ended September 30, 2021, one customer accounted for approximately 36% of total revenue and our 10 largest customers accounted in aggregate for approximately 68% of total revenue. For the nine months ended September 30, 2020, one customer accounted for approximately 35% of total revenue and our 10 largest customers accounted in aggregate for approximately 64% of total revenue. A loss of any material customer could have a material adverse effect on our business, financial condition and results of operations.

The following table provides information about disaggregated revenue by major product category:
(in Millions)Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Lithium Hydroxide$50.7 $43.9 $160.5 $115.4 
Butyllithium27.4 19.6 76.1 62.4 
High Purity Lithium Metal and Other Specialty Compounds9.8 7.1 27.6 23.0 
Lithium Carbonate and Lithium Chloride15.7 2.0 33.3 5.2 
Total Revenue$103.6 $72.6 $297.5 $206.0 

Contract asset and contract liability balances
The following table presents the opening and closing balances of our receivables, net of allowances. As of September 30, 2021 and December 31, 2020, there were no contract liabilities from contracts with customers.
(in Millions)Balance as of
September 30, 2021
Balance as of December 31, 2020Increase (Decrease)
Receivables from contracts with customers, net of allowances$83.0 $76.3 $6.7 
The balance of receivables from contracts with customers listed in the table above represents the current trade receivables, net of allowance for doubtful accounts. The allowance for receivables represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience, current collection trends, and external business factors such as economic factors, including regional bankruptcy rates, and political factors.
Performance obligations
Occasionally, we may enter into multi-year take or pay supply agreements with customers. The aggregate amount of revenue expected to be recognized related to these contracts’ performance obligations that are unsatisfied or partially unsatisfied is approximately $10 million for the remainder of 2021 and $68 million in 2022 and 2023, respectively. These approximate revenues do not include amounts of variable consideration attributable to contract renewals or contract contingencies. Based on our past experience with the customers under these arrangements, we expect to continue recognizing revenue in accordance with the contracts as we transfer control of the product to the customer. However, in the case a shortfall of volume purchases occurs, we will recognize the amount payable by the customer over the remaining performance obligations in the contract.

Note 5: Inventories, Net
Inventories consisted of the following:
 (in Millions)September 30, 2021December 31, 2020
Finished goods$35.0 $36.1 
Semi-finished goods41.3 46.2 
Raw materials, supplies and other33.9 23.3 
Inventory, net$110.2 $105.6 

12


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)



Note 6: Investments    
In 2020, Livent entered into an agreement with The Pallinghurst Group relating to Québec Lithium Partners ("QLP"), a joint venture owned equally by The Pallinghurst Group and Livent, and the conduct of certain business operations and oversight, previously conducted solely by Nemaska Lithium Inc. for the development of a fully integrated lithium chemical asset located in Québec, Canada that is not yet in commercial production. QLP owns a 50% equity interest in the Nemaska Project. The Company accounts for the investment in QLP as an equity method investment on a one-quarter lag basis and is included in Investments in our condensed consolidated balance sheets. For the three and nine months ended September 30, 2021, we recorded a $1.0 million and $3.7 million loss, respectively, related to our 50% equity interest in QLP to Equity in net loss of unconsolidated affiliates in our condensed consolidated statement of operations. The carrying amount of our 50% equity interest in QLP was $20.1 million and $21.2 million as of September 30, 2021 and December 31, 2020, respectively.


Note 7: Restructuring and Other Charges
The following table shows other charges included in "Restructuring and other charges" in the condensed consolidated statements of operations:
Three Months Ended September 30,Nine Months Ended September 30,
(in Millions)2021202020212020
Restructuring charges
Severance-related and exit costs (1)
$0.1 $0.9 $0.2 $5.8 
Other charges
Environmental remediation (2)
0.1 0.1 0.3 0.4 
Other (3)
0.9 3.4 2.9 3.9 
Total Restructuring and other charges$1.1 $4.4 $3.4 $10.1 
___________________ 
1.Three and nine months ended September 30, 2020 includes severance costs for management changes at certain operating and administrative facilities and exit costs of $1.6 million for the closing of leased office space.
2.There is one environmental remediation site in Bessemer City, North Carolina.
3.Three and nine months ended September 30, 2021 consists primarily of transaction-related legal fees and miscellaneous nonrecurring transactions. Three and nine months ended September 30, 2020 consists primarily of legal fees related to IPO securities litigation including a settlement accrual, net of insurance reimbursement, of $2.5 million in the third quarter. The IPO litigation settlement was finalized in the second quarter of 2021.
13


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Note 8: Income Taxes
We determine our interim tax provision using an estimated annual effective tax rate methodology (“EAETR”) in accordance with U.S. GAAP. The EAETR is applied to the year-to-date ordinary income, exclusive of discrete items. The tax effects of discrete items are then included to arrive at the total reported interim tax provision.
The determination of the EAETR is based upon a number of estimates, including the estimated annual pretax ordinary income in each tax jurisdiction in which we operate. As our projections of ordinary income change throughout the year, the EAETR will change period-to-period. The tax effects of discrete items are recognized in the tax provision in the period they occur in accordance with U.S. GAAP. Depending on various factors, such as the item’s significance in relation to total income and the rate of tax applicable in the jurisdiction to which it relates, discrete items in any quarter can materially impact the reported effective tax rate. As a global enterprise, our tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits and reviews, as well as other factors. As a result, there can be significant volatility in interim tax provisions.
Provision for income taxes for the three and nine months ended September 30, 2021 was an expense of $15.4 million and $13.8 million resulting in an effective tax rate of 540.5% and 198.7%, respectively. Provision for income taxes for the three and nine months ended September 30, 2020 was a benefit of $3.1 million and $5.4 million resulting in an effective tax rate of 22.8% and 30.0%, respectively.

Note 9: Debt
Long-term debt
Long-term debt consists of the following:
Interest Rate
Percentage
Maturity
Date
September 30, 2021December 31, 2020
(in Millions)LIBOR borrowingsBase rate borrowings
Revolving Credit Facility (1)
2.3%4.5%2023$ $35.6 
4.125% Convertible Senior Notes due 2025
4.125%2025245.8245.8 
Transaction costs - 2025 Notes
(5.7)(6.8)
Total long-term debt (2)
$240.1 $274.6 
______________________________
1.As of September 30, 2021 and December 31, 2020, there were $14.4 million in letters of credit outstanding under our Revolving Credit Facility and $385.6 million and $275.0 million available funds as of September 30, 2021 and December 31, 2020, respectively. Fund availability is subject to the Company meeting its debt covenants.
2.As of September 30, 2021 and December 31, 2020, the Company had no debt maturing within one year.
On January 1, 2021, the Company elected to early adopt ASU 2020-06 under the full retrospective method, that is, the accounting change was recognized as an adjustment to the balance of retained earnings, additional paid-in capital, long-term debt and deferred income taxes in our consolidated balance sheet as of December 31, 2020, the year in which the 2025 Notes were issued. The ASU reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion model. Our 2025 Notes are now reported as a single liability instrument net of transaction costs with an interest rate closer to the coupon interest rate.
The comparative financial statements of prior years have been adjusted to apply the adopted guidance retrospectively.

14


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Statement of operations
 (in Millions, except per share amounts)
Three months ended September 30, 2021As computed under ASC 470-20As reported under ASU 2020-06Effect of change
Interest expense/(income) $1.8 $ $(1.8)
Income from operations before income taxes1.0 2.8 1.8 
Income tax expense15.0 15.4 0.4 
Net (loss)/income$(14.0)$(12.6)$1.4 
Net (loss)/income per weighted average share - basic and diluted$(0.09)$(0.08)$0.01 
Nine months ended September 30, 2021As computed under ASC 470-20As reported under ASU 2020-06Effect of change
Interest expense/(income)$5.5 $0.3 $(5.2)
Income from operations before income taxes1.7 6.9 5.2 
Income tax expense12.7 13.8 1.1 
Net (loss)/income$(11.0)$(6.9)$4.1 
Net (loss)/income per weighted average share - basic and diluted$(0.07)$(0.05)$0.02 
Three months ended September 30, 2020As originally reportedAs adjustedEffect of change
Interest expense/(income)$2.0 $0.3 $(1.7)
(Loss)/income from operations before income taxes(15.3)(13.6)1.7 
Income tax (benefit)/expense(3.5)(3.1)0.4 
Net (loss)/income$(11.8)$(10.5)$1.3 
Net (loss)/income per weighted average share - basic and diluted$(0.08)$(0.07)$0.01 
Nine months ended September 30, 2020As originally reportedAs adjustedEffect of change
Interest expense/(income)$2.0 $0.3 $(1.7)
(Loss)/Income from operations before income taxes(19.7)(18.0)1.7 
Income tax (benefit)/expense(5.8)(5.4)0.4 
Net (loss)/income$(13.9)$(12.6)$1.3 
Net (loss)/income per weighted average share - basic and diluted$(0.10)$(0.09)$0.01 


15


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Balance Sheet
 (in Millions, except per share amounts)
September 30, 2021As computed under ASC 470-20As reported under ASU 2020-06Effect of change
Deferred income taxes$15.0 7.8 $(7.2)
Long-term debt207.4 240.1 32.7 
Total liabilities$222.4 $247.9 $25.5 
Common stock, $0.001 per share par value
0.1 0.1  
Capital in excess of par value of common stock808.6 776.4 (32.2)
Retained earnings46.7 53.4 6.7 
Accumulated other comprehensive loss(44.6)(44.6)