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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 March 31, 2022
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 March 31, 2022, there were 161,745,365 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
ASUAccounting Standards Update, under U.S. GAAP
Credit AgreementThe Original Credit Agreement, as amended
EAETREstimated annual effective tax rate
ESGEnvironmental, social and governance
EVElectric vehicle
FASBFinancial Accounting Standards Board
FMCFMC Corporation
Livent NQSPLivent Non-Qualified Savings Plan
NemaskaNemaska Lithium Shawinigan Transformation Inc., a subsidiary of Nemaska Lithium Inc., a
Canadian lithium company 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.
OEMOriginal equipment manufacturer
Original Credit AgreementOn September 18, 2018 Livent Corporation entered into the credit agreement, which provides for a $400 million senior secured revolving credit facility
PRSUPerformance-based restricted stock unit
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
Securities ActSecurities Act of 1933
SeparationOn October 15, 2018, Livent completed its initial public offering and sold 20 million shares of Livent common stock to the public at a price of $17.00 per share
TSRTotal Shareholder Return
U.S. GAAPUnited States Generally Accepted Accounting Principles
VATValue-added tax
3



PART I - FINANCIAL INFORMATION
 
ITEM 1.    FINANCIAL STATEMENTS

LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
Three Months Ended March 31,
20222021
(in Millions, Except Per Share Data)(unaudited)
Revenue$143.5 $91.7 
Cost of sales83.6 78.4 
Gross margin59.9 13.3 
Selling, general and administrative expenses11.8 10.7 
Research and development expenses0.9 0.7 
Restructuring and other charges1.0 0.3 
Separation-related costs/(income)0.1 (0.1)
Total costs and expenses97.4 90.0 
Income from operations before equity in net loss of unconsolidated affiliate, interest expense, net and other gain46.1 1.7 
Equity in net loss of unconsolidated affiliate2.2 1.3 
Interest expense, net 0.3 
Other gain(14.0) 
Income from operations before income taxes57.9 0.1 
Income tax expense4.7 0.9 
Net income/(loss)$53.2 $(0.8)
Net income/(loss) per weighted average share - basic$0.33 $(0.01)
Net income/(loss) per weighted average share - diluted$0.28 $(0.01)
Weighted average common shares outstanding - basic161.7 146.5 
Weighted average common shares outstanding - diluted 191.4 146.5 










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


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
 
Three Months Ended March 31,
20222021
(in Millions)(unaudited)
Net income/(loss)$53.2 $(0.8)
Other comprehensive loss, net of tax:
Foreign currency adjustments:
Foreign currency translation loss arising during the period(1.0)(0.3)
Total foreign currency translation adjustments(1.0)(0.3)
Derivative instruments:
Unrealized hedging gains, net of tax of $0.1
0.1  
Total derivative instruments, net of tax of $0.1
0.1  
Other comprehensive loss, net of tax(0.9)(0.3)
Comprehensive income/(loss)$52.3 $(1.1)




































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)March 31, 2022December 31, 2021
ASSETS(unaudited)
Current assets
Cash and cash equivalents$68.5 $113.0 
Trade receivables, net of allowance of approximately $0.3 in 2022 and $0.3 in 2021
105.5 96.4 
Inventories, net150.5 134.6 
Prepaid and other current assets40.0 55.3 
Total current assets364.5 399.3 
Investments33.4 27.2 
Property, plant and equipment, net of accumulated depreciation of $246.2 in 2022 and $243.0 in 2021
737.8 677.9 
Deferred income taxes 0.9 
Right of use assets - operating leases, net 6.0 6.3 
Other assets100.9 90.9 
Total assets$1,242.6 $1,202.5 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, trade and other$62.2 $65.4 
Accrued and other liabilities54.2 61.8 
Operating lease liabilities - current 1.1 1.1 
Income taxes2.8 3.0 
Total current liabilities120.3 131.3 
Long-term debt 240.8 240.4 
Operating lease liabilities - long-term5.0 5.4 
Environmental liabilities5.7 5.6 
Deferred income taxes7.7 12.7 
Other long-term liabilities14.1 11.7 
Commitments and contingent liabilities (Note 13)  
Total current and long-term liabilities393.6 407.1 
Equity
Common stock; $0.001 par value; 2 billion shares authorized; 161,848,607 and 161,791,602 shares issued; 161,745,365 and 161,689,984 outstanding as of March 31, 2022 and December 31, 2021, respectively
0.1 0.1 
Capital in excess of par value of common stock 779.4 778.1 
Retained earnings 114.1 60.9 
Accumulated other comprehensive loss(43.8)(42.9)
Treasury stock, at cost; 103,242 and 101,618 shares as of March 31, 2022 and December 31, 2021, respectively
(0.8)(0.8)
Total equity849.0 795.4 
Total liabilities and equity$1,242.6 $1,202.5 


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


LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Three Months Ended March 31,
20222021
 (in Millions)
(unaudited)
Cash provided by operating activities:
Net income/(loss)$53.2 $(0.8)
Adjustments to reconcile net income/(loss) to cash provided by operating activities:
Depreciation and amortization6.4 6.2 
Restructuring and other charges0.8 0.1 
Deferred income taxes0.8 1.3 
Separation-related (income)/costs(0.3)0.6 
Share-based compensation1.6 1.1 
Change in investments in trust fund securities0.2 (0.2)
Loss on disposal of assets0.1  
Deferred financing fees amortization 0.3 
Equity in net loss of unconsolidated affiliate2.2 1.3 
       Other gain, Blue Chip Swap(14.0) 
Changes in operating assets and liabilities:
Trade receivables, net(9.3)(6.3)
Inventories(16.5)9.1 
Accounts payable, trade and other(3.2)(5.2)
Changes in deferred compensation 0.7 0.6 
Income taxes(0.1)0.4 
Change in prepaid and other current assets and other assets5.1 16.5 
Change in accrued and other current and long-term liabilities(16.9)(12.3)
Cash provided by operating activities10.8 12.7 
Cash used in investing activities:
Capital expenditures(1)
(68.7)(25.5)
Investments in Livent NQSP securities(0.7)(0.6)
       Proceeds from Blue Chip Swap, net of purchases 14.0  
Other investing activities (0.9)
Cash used in investing activities(55.4)(27.0)
Cash provided by financing activities:
Proceeds from Revolving Credit Facility  37.0 
Repayments of Revolving Credit Facility (13.0)
       Proceeds from issuance of common stock - incentive plans 0.1 0.2 
Cash provided by financing activities0.1 24.2 
(Decrease)/increase in cash and cash equivalents(44.5)9.9 
Cash and cash equivalents, beginning of period113.0 11.6 
Cash and cash equivalents, end of period$68.5 $21.5 
7





LIVENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Three Months Ended March 31,
20222021
Supplemental Disclosure for Cash Flow:(unaudited)
Cash payments/(refunds) for income taxes, net of refunds $2.4 $(1.2)
Cash payments for interest (1)
$5.5 $6.4 
Cash payments for Restructuring and other charges$0.2 $0.2 
Cash payments/(receipts) for Separation-related charges$0.4 $(0.7)
Accrued capital expenditures$29.0 $4.4 
Accrued investment in unconsolidated affiliate$8.0 $ 
____________________
1.For the three months ended March 31, 2022, and 2021 $4.0 million and $3.7 million of interest expense was capitalized, respectively.





















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, 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 - Livent NQSP— — — — (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 
Balance, December 31, 2021$0.1 $778.1 $60.9 $(42.9)$(0.8)$795.4 
Net income— — 53.2 — — 53.2 
Stock compensation plans — 1.7 — — — 1.7 
Exercise of stock options — 0.1 — — — 0.1 
Shares withheld for taxes - common stock issuances— (0.5)— — — (0.5)
Net hedging gains, net of income tax— — — 0.1 — 0.1 
Foreign currency translation adjustments— — — (1.0)— (1.0)
Balance, March 31, 2022$0.1 $779.4 $114.1 $(43.8)$(0.8)$849.0 





























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 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. A major growth driver for lithium in the future will be the increasing adoption of electric vehicles ("EVs") and other energy storage applications.
Most markets for lithium chemicals are global with significant growth occurring in Asia, followed by Europe and North America, primarily driven by the development and manufacture of lithium-ion batteries. We are one of the primary 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 March 31, 2022 and December 31, 2021, the condensed consolidated results of operations for the three months ended March 31, 2022 and 2021, and the condensed consolidated cash flows for the three months ended March 31, 2022 and 2021. 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 financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021 Annual Report on Form 10-K").
Blue Chip Swap. Our wholly owned subsidiary in Argentina uses the U.S. dollar as their functional currency. Argentina peso-denominated monetary assets and liabilities are remeasured at each balance sheet date to the official currency exchange rate then in effect which represents the exchange rate available for external commerce (import payments and export collections) and financial payments, with currency remeasurement and other transaction gains and losses recognized in earnings. In September 2019, the President of Argentina reinstituted exchange controls restricting foreign currency purchases in an attempt to stabilize Argentina’s financial markets. As a result, a legal trading mechanism known as the Blue Chip Swap emerged in Argentina for all individuals or entities to transfer U.S. dollars out of and into Argentina. The Blue Chip Swap rate is the implicit exchange rate resulting from the Blue Chip Swap transaction. Recently, the Blue Chip Swap rate has diverged significantly from Argentina’s official rate due to the economic environment. During the first quarter of 2022, to support our capital expansion projects, we transferred U.S. dollars into Argentina through the Blue Chip Swap method whereby our wholly owned Delaware subsidiary, MDA Lithium Holdings LLC, realized a cash gain, net of purchase costs, from the purchase in U.S. dollars and sale in Argentina pesos of Argentina Sovereign U.S. dollar-denominated bonds of U.S. $14.0 million, recorded to Other gain in our condensed consolidated statement of operations.
Performance-Based Restricted Stock Unit ("PRSU") Awards. The Company granted approximately sixty-three thousand PRSUs ("2022 PRSUs") to key employees on February 23, 2022, as authorized under the provisions of the Livent Corporation 2018 Incentive Compensation and Stock Plan.The number of PRSUs ultimately earned will be based on Livent's Total Shareholder Return ("TSR") relative to the TSR of the companies in the Russell 3000 Chemical Supersector Index over a three year performance period from January 1, 2022 through December 31, 2024 (the "Performance Period"). The final number of PRSUs earned will range from 0% to 200% of the number of PRSUs granted based on the Company's relative TSR performance over the Performance Period.
Because the value of the 2022 PRSUs is dependent upon the attainment of a level of TSR, it requires the impact of the market condition to be considered when estimating the fair value of the 2022 PRSUs. As a result, the Monte Carlo model is applied and the most significant valuation assumptions used related to the 2022 PRSUs during the year ending December 31, 2022, include:

Valuation date stock price
$21.01
Expected volatility
72.99%
Risk free rate
1.74%

The February 23, 2022 grant date fair value of each PRSU granted was $20.82 per share.
10


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
There were no other significant changes to our accounting policies that are set forth in detail in Note 2 to our annual consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K.

Note 3: Recently Issued and Adopted Accounting Pronouncements and Regulatory Items
New accounting guidance and regulatory items
In November 2021, the Financial Accounting Standard Board ("FASB") issued ASU No. 2021-10, Government Assistance (Topic 832). This ASU requires business entities to disclose information about government assistance they receive if the transactions were accounted for by analogy to either a grant or a contribution accounting model. The disclosure requirements include the nature of the transaction and the related accounting policy used, the line items on the balance sheets and statements of operations that are affected and the amounts applicable to each financial statement line item and the significant terms and conditions of the transactions. The ASU is effective for annual periods beginning after December 15, 2021. The disclosure requirements can be applied either retrospectively or prospectively to all transactions in the scope of the amendments that are reflected in the financial statements at the date of initial application and new transactions that are entered into after the date of initial application. We are evaluating the impact of this ASU on our consolidated financial statements.
In April 2020, 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 do not expect adoption to have 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 (based on product destination) and by product categories. The following table provides information about disaggregated revenue by major geographical region:
(in Millions)Three Months Ended March 31,
20222021
North America (1)
$21.3 $13.3 
Europe, Middle East & Africa14.7 17.5 
Asia Pacific (1)
107.5 60.9 
Total Revenue$143.5 $91.7 
1.During the three months ended March 31, 2022, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S., and China. Sales for the three months ended March 31, 2022 for Japan, the U.S., and China totaled $30.6 million, $20.8 million, $59.1 million, respectively. During the three months ended March 31, 2021, countries with sales in excess of 10% of combined revenue consisted of Japan, the U.S, China and South Korea. Sales for the three months ended March 31, 2021 for Japan, the U.S., China and South Korea totaled $16.7 million, $13.1 million, $27.0 million and $11.1 million, respectively.

For the three months ended March 31, 2022, one customer accounted for approximately 26% of total revenue and our 10 largest customers accounted in aggregate for approximately 69% of total revenue. For the three months ended March 31, 2021, one customer accounted for approximately 37% of total revenue and our 10 largest customers accounted in aggregate for approximately 69% 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:
11


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
(in Millions)Three Months Ended March 31,
20222021
Lithium Hydroxide$67.5 $49.8 
Butyllithium33.7 25.9 
High Purity Lithium Metal and Other Specialty Compounds13.4 8.9 
Lithium Carbonate and Lithium Chloride28.9 7.1 
Total Revenue$143.5 $91.7 

Contract asset and contract liability balances
The following table presents the opening and closing balances of our receivables, net of allowances. As of March 31, 2022 and December 31, 2021, there were no significant contract liabilities recorded in the consolidated balance sheets.
(in Millions)Balance as of March 31, 2022 Balance as of December 31, 2021Increase
Receivables from contracts with customers, net of allowances$105.5 $96.4 $9.1 

The balance of receivables from contracts with customers listed in the table above represents the current trade receivables (including buy/sell arrangements), 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 $557 million in the next three years. 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)March 31, 2022December 31, 2021
Finished goods$39.1 $52.2 
Semi-finished goods58.8 43.6 
Raw materials, supplies, and other52.6 38.8 
Inventory, net$150.5 $134.6 

Note 6: Investments    
In 2020, Livent entered into an agreement with The Pallinghurst Group ("Pallinghurst") relating to Québec Lithium Partners ("QLP"), a joint venture owned equally by Pallinghurst 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 it is included in Investments in our condensed consolidated balance sheets. For the three months ended March 31, 2022, we recorded a $2.2 million loss related to our 50% equity interest in QLP to Equity in net loss of unconsolidated affiliate in our condensed consolidated statement of operations. The carrying amount of our 50% equity interest in QLP was $29.6 million and
12


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
$23.8 million as of March 31, 2022 and December 31, 2021, respectively.
On May 2, 2022, Livent entered into a Transaction Agreement and Plan of Merger (the “Agreement”) with Pallinghurst to provide Livent with a direct 50% ownership interest in Nemaska Lithium Inc. The Company will issue 17,500,000 shares of its common stock to Pallinghurst to acquire its 50% share of QLP. Following the close of the transaction, QLP will become a wholly owned subsidiary of Livent, and Livent will in turn own 50% of Nemaska Lithium, Inc. through QLP. Investissement Québec will remain the owner of the other 50% interest in Nemaska. The closing of the transaction is subject to certain customary mutual conditions. Pallinghurst and its investors agreed, subject to certain exceptions, to a lock-up with respect to the Livent common shares received pursuant to the Agreement that expires on August 1, 2023. Either Pallinghurst or Livent may terminate the Agreement if certain closing conditions in the Agreement are not satisfied, and both may terminate upon mutual written consent.

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 March 31,
(in Millions)20222021
Restructuring charges:
Severance-related and exit costs (1)
$0.5 $ 
Other charges:
Environmental remediation (2)
0.1 0.1 
Other (3)
0.4 0.2 
Total Restructuring and other charges$1.0 $0.3 
___________________ 
1.Three months ended March 31, 2022 includes severance costs for management changes at certain administrative facilities.
2.There is one environmental remediation site in Bessemer City, North Carolina.
3.Three months ended March 31, 2022 and 2021 consists primarily of transaction-related legal fees and miscellaneous nonrecurring transactions.


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 months ended March 31, 2022 was $4.7 million resulting in an effective tax rate of 8.1%. Provision for income taxes for the three months ended March 31, 2021 was $0.9 million resulting in an effective tax rate of 900%. The effective tax rate for the period ended March 31, 2022 was primarily impacted by fluctuations in foreign currency impacts in Argentina of ($4.3) million.

13


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Note 9: Debt
Long-term debt
Long-term debt consists of the following:
Interest Rate
Percentage
Maturity
Date
March 31, 2022December 31, 2021
(in Millions)LIBOR borrowingsBase rate borrowings
Revolving Credit Facility (1)
2.70%4.8%2023$ $ 
4.125% Convertible Senior Notes due 2025
4.125%2025245.8 245.8 
Transaction costs - 2025 Notes
(5.0)(5.4)
Total long-term debt (2)
$240.8 $240.4 
______________________________
1.As of March 31, 2022 and December 31, 2021, there were $14.5 million in letters of credit outstanding under our Revolving Credit Facility and $385.5 million available funds as of March 31, 2022 and December 31, 2021. Fund availability is subject to the Company meeting its debt covenants.
2.As of March 31, 2022 and December 31, 2021, the Company had no debt maturing within one year.
2025 Notes
In the second quarter of 2022, the holders of the 2025 Notes were notified that the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, March 31, 2022 was greater than or equal to 130% of the conversion price on each trading day, and as a result, the holders have the option to convert all or any portion of their 2025 Notes through June 30, 2022. The 2025 Notes are classified as long-term debt.
The Company recognized noncash interest related to the amortization of transaction costs of $0.4 million, all of which was capitalized, for the three months ended March 31, 2022. The Company recorded $2.5 million of accrued interest expense related to the principal amount for the three months ended March 31, 2022.
Revolving Credit Facility
The carrying value of our deferred financing costs was $1.3 million as of March 31, 2022.
Covenants
The Credit Agreement contains certain affirmative and negative covenants that are binding on us and our subsidiary, Livent USA Corp., as borrowers (the "Borrowers") and their subsidiaries, including, among others, restrictions (subject to exceptions and qualifications) on the ability of the Borrowers and their subsidiaries to create liens, to undertake fundamental changes, to incur debt, to sell or dispose of assets, to make investments, to make restricted payments such as dividends, distributions or equity repurchases, to change the nature of their businesses, to enter into transactions with affiliates and to enter into certain burdensome agreements. Furthermore, the Borrowers are subject to financial covenants regarding leverage (measured as the ratio of debt to adjusted earnings) and interest coverage (measured as the ratio of adjusted earnings to interest expense). Our maximum allowable first lien leverage ratio is 3.5 as of March 31, 2022. Our minimum allowable interest coverage ratio is 3.5. We were in compliance with all requirements of the covenants as of March 31, 2022.
14


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Note 10: Equity
As of March 31, 2022 and December 31, 2021, we had 2 billion shares of common stock authorized. The following is a summary of Livent's common stock issued and outstanding:
IssuedTreasuryOutstanding
Balance as of December 31, 2021161,791,602 (101,618)161,689,984 
RSU awards49,100 — 49,100 
Stock option awards7,905 — 7,905 
Purchases of treasury stock - deferred compensation plan— (1,624)(1,624)
Balance as of March 31, 2022161,848,607 (103,242)161,745,365 


Accumulated other comprehensive loss

Summarized below is the roll forward of accumulated other comprehensive loss, net of tax.
(in Millions)Foreign currency adjustments
Derivative Instruments (1)
Total
Accumulated other comprehensive loss, net of tax as of December 31, 2021$(43.1)$0.2 $(42.9)
Other comprehensive (losses)/gains before reclassifications(1.0)0.1 (0.9)
Accumulated other comprehensive loss, net of tax as of March 31, 2022$(44.1)$0.3 $(43.8)
(in Millions)Foreign currency adjustments
Derivative Instruments (1)
Total
Accumulated other comprehensive loss, net of tax as of December 31, 2020$(44.4)$ $(44.4)
Other comprehensive loss before reclassifications(0.3) (0.3)
Accumulated other comprehensive loss, net of tax as of March 31, 2021$(44.7)$ $(44.7)
1.See Note 12 for more information.
Reclassifications of accumulated other comprehensive loss
Amounts reclassified from accumulated other comprehensive loss for the three months ended March 31, 2022 were less than $0.1 million. We did not have any open derivative positions for the three months ended March 31, 2021.
Dividends
For the three months ended March 31, 2022 and 2021, we paid no dividends. We do not expect to pay any dividends in the foreseeable future.

Note 11: Earnings/(Loss) Per Share
Earnings/(Loss) per common share is computed by dividing net income/(loss) by the weighted average number of common shares outstanding during the period on a basic and diluted basis.
Our potentially dilutive securities include potential common shares related to our stock options, restricted stock units, performance restricted stock units and 2025 Notes. See Note 12 to our consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K for more information. Diluted earnings/(loss) per share (“Diluted EPS”) considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. Diluted EPS excludes the impact of potential common shares related to our stock options in periods in which the option exercise price is greater than the average market price of our common stock for the period. We use the if-converted method when calculating the potential dilutive effect, if any, of our 2025 Notes.
15


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Earnings/(Loss) applicable to common stock and common stock shares used in the calculation of basic and diluted earnings/(loss) per share are as follows:
(in Millions, Except Share and Per Share Data)Three Months Ended March 31,
20222021
Numerator:
Net income/(loss)$53.2 $(0.8)
Net income/(loss) after assumed conversion of 2025 Notes (1)
$53.2 $(0.8)
Denominator:
Weighted average common shares outstanding - basic
161.7 146.5 
Dilutive share equivalents from share-based plans 1.6  
Dilutive share equivalents from 2025 Notes28.1  
Weighted average common shares outstanding - diluted 191.4 146.5 
Basic earnings/(loss) per common share:
Net income/(loss) per weighted average share - basic$0.33 $(0.01)
Diluted earnings/(loss) per common share:
Net income/(loss) per weighted average share - diluted$0.28 $(0.01)
1.For the three months ended March 31, 2022, all of the interest for the 2025 Notes was capitalized.
The following table presents weighted average share equivalents associated with share-based plans and the 2025 Notes that were excluded from the diluted shares outstanding calculation because the result would have been antidilutive. See Note 11 to our consolidated financial statements in Part II, Item 8 of our 2021 Annual Report on Form 10-K for more information on the 2025 Notes.
(in Millions)Three Months Ended March 31,
20222021
Share equivalents from share-based plans  1.4 
Share equivalents from 2025 Notes 28.1 
Total antidilutive weighted average share equivalents  29.5 
Anti-dilutive stock options
For the three months ended March 31, 2022, none of the outstanding options to purchase shares of our common stock were anti-dilutive. For the three months ended March 31, 2021, options to purchase 547,432 shares of our common stock at an average exercise price of $20.35 per share were anti-dilutive and not included in the computation of diluted loss per share because the exercise price of the options was greater than the average market price of the common stock for the three months ended March 31, 2021.

Note 12: Financial Instruments, Risk Management and Fair Value Measurements     

Our financial instruments include cash and cash equivalents, trade receivables, other current assets, investments held in trust fund, trade payables, derivatives and amounts included in accruals meeting the definition of financial instruments. Investments in the Livent NQSP deferred compensation plan trust fund are considered Level 1 investments based on readily available quoted prices in active markets for identical assets. The carrying value of cash and cash equivalents, trade receivables, other current assets, and accounts payable approximates their fair value and are considered Level 1 investments. Our other financial instruments include the following:
16


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Financial InstrumentValuation Method
Foreign exchange forward contractsEstimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies.

The estimated fair value of our foreign exchange forward contracts have been determined using standard pricing models which take into account the present value of expected future cash flows discounted to the balance sheet date. These standard pricing models utilize inputs derived from, or corroborated by, observable market data such as interest rate yield curves and currency and commodity spot and forward rates.
Fair value is defined as 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 (exit price). The inputs used to measure fair value are classified into the following hierarchy:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.
Level 3 - Unobservable inputs for the asset or liability.
The estimated fair value and the carrying amount of debt was $692.7 million and $240.8 million, respectively, as of March 31, 2022. Our 2025 Notes are classified as Level 2 in the fair value hierarchy.
Use of Derivative Financial Instruments to Manage Risk
We mitigate certain financial exposures connected to currency risk through a program of risk management that includes the use of derivative financial instruments. We enter into foreign exchange forward contracts to reduce the effects of fluctuating foreign currency exchange rates.
We formally document all relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. This process includes relating derivatives that are designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess both at the inception of the hedge and on an ongoing basis, whether each derivative is highly effective in offsetting changes in fair values or cash flows of the hedged item. If we determine that a derivative is not highly effective as a hedge, or if a derivative ceases to be a highly effective hedge, we discontinue hedge accounting with respect to that derivative prospectively.
Foreign Currency Exchange Risk Management
We conduct business in many foreign countries, exposing earnings, cash flows, and our financial position to foreign currency risks. The majority of these risks arise as a result of foreign currency transactions. The primary currencies for which we have exchange rate exposure are the Euro, the British pound, the Chinese yuan, the Argentine peso, and the Japanese yen. We currently do not hedge foreign currency risks associated with the Argentine peso due to the limited availability and the high cost of suitable derivative instruments. Our policy is to minimize exposure to adverse changes in currency exchange rates. This is accomplished through a controlled program of risk management that could include the use of foreign currency debt and forward foreign exchange contracts. We also use forward foreign exchange contracts to hedge firm and highly anticipated foreign currency cash flows, with an objective of balancing currency risk to provide adequate protection from significant fluctuations in the currency markets.
Concentration of Credit Risk
Our counterparties to derivative contracts are primarily major financial institutions. We limit the dollar amount of contracts entered into with any one financial institution and monitor counterparties’ credit ratings. We also enter into master netting agreements with each financial institution, where possible, which helps mitigate the credit risk associated with our financial instruments. While we may be exposed to credit losses due to the nonperformance of counterparties, we consider this risk remote.
17


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Accounting for Derivative Instruments and Hedging Activities
Cash Flow Hedges
We recognize all derivatives on the balance sheet at fair value. On the date we enter into the derivative instrument, we generally designate the derivative as a hedge of the variability of cash flows to be received or paid related to a forecasted transaction (cash flow hedge). We record in accumulated other comprehensive loss ("AOCL") changes in the fair value of derivatives that are designated as and meet all the required criteria for, a cash flow hedge. We then reclassify these amounts into earnings as the underlying hedged item affects earnings. In contrast we immediately record in earnings changes in the fair value of derivatives that are not designated as cash flow hedges. As of March 31, 2022, we had open foreign currency forward contracts in AOCL in a net after-tax gain position of $0.3 million designated as cash flow hedges of underlying forecasted sales and purchases. As of March 31, 2022 we had open forward contracts with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $15.5 million.
A net after-tax gain of $0.3 million, representing open foreign currency exchange contracts, will be realized in earnings during the year ending December 31, 2022 if spot rates in the future are consistent with market rates as of March 31, 2022. The actual effect on earnings will be dependent on the actual spot rates when the forecasted transactions occur. We recognize derivative gains and losses in the “Costs of sales and services” line in the condensed consolidated statements of operations.

Derivatives Not Designated As Cash Flow Hedging Instruments
We hold certain forward contracts that have not been designated as cash flow hedging instruments for accounting purposes. Contracts used to hedge the exposure to foreign currency fluctuations associated with certain monetary assets and liabilities are not designated as cash flow hedging instruments and changes in the fair value of these items are recorded in earnings.
We had open forward contracts not designated as cash flow hedging instruments for accounting purposes with various expiration dates to buy, sell or exchange foreign currencies with a U.S. dollar equivalent of approximately $53.7 million as of March 31, 2022.
Fair Value of Derivative Instruments.
The following tables provide the gross fair value and net balance sheet presentation of our derivative instruments.
March 31, 2022
Gross Amount of Derivatives
(in Millions)Designated as Cash Flow Hedges
Derivatives
Foreign exchange contracts$0.4 
Total derivative assets0.4 
Net derivative assets$0.4 
December 31, 2021
Gross Amount of Derivatives
(in Millions)Designated as Cash Flow Hedges
Derivatives
Foreign exchange contracts$0.2 
Total derivative assets0.2 
Net derivative assets$0.2 




18


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Derivatives in Cash Flow Hedging Relationships
The following tables summarize the losses related to our cash flow hedges and derivatives not designated as cash flow hedging instruments. For the three months ended March 31, 2021, we did not have any open derivative cash flow hedge contracts.
(in Millions)Total Foreign Exchange Contracts
Accumulated other comprehensive loss, net of tax as of December 31, 2021$0.2 
Unrealized hedging gains, net of tax 0.1 
Total derivatives instruments impact on comprehensive income, net of tax0.1 
Accumulated other comprehensive gain, net of tax as of March 31, 2022$0.3 
Derivatives Not Designated as Cash Flow Hedging Instruments
Location of Loss
Recognized in Income on Derivatives
Amount of Pre-tax Loss 
Recognized in Income on Derivatives (1)
Three Months Ended March 31,
(in Millions) 20222021
Foreign Exchange contracts
Cost of sales (2)
$(1.6)$(0.5)
Total$(1.6)$(0.5)
____________________
1.Amounts represent the gain or loss on the derivative instrument offset by the gain or loss on the hedged item.
2.A loss of $0.1 million related to intercompany loan hedges is included in Restructuring and other charges in the consolidated statement of operations for the three months ended March 31, 2022 and 2021.

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. Market participants are defined as buyers or sellers in the principle or most advantageous market for the asset or liability that are independent of the reporting entity, knowledgeable and able and willing to transact for the asset or liability.

Fair Value Hierarchy
We have categorized our assets and liabilities that are recorded at fair value, based on the priority of the inputs to the valuation technique, into a three-level fair-value hierarchy. The fair-value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets and liabilities fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair-value measurement of the instrument.

19


LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Recurring Fair Value Measurements
The following tables present our fair-value hierarchy for those assets and liabilities measured at fair-value on a recurring basis in our condensed consolidated balance sheets.
(in Millions)March 31, 2022Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets
Investments in deferred compensation plan (1)
$3.8 $3.8 $ $ 
Total Assets$3.8 $3.8 $ $ 
Liabilities
Deferred compensation plan obligation (2)
$6.6 $6.6 $ $ 
Total Liabilities$6.6 $6.6 $ $ 

 
(in Millions)December 31, 2021Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Assets
Investments in deferred compensation plan (1)
$3.4 $3.4 $ $ 
Total Assets$3.4 $3.4 $ $ 
Liabilities
Deferred compensation plan obligation (2)
$5.9 $5.9 $ $ 
Total Liabilities$5.9 $5.9 $ $ 
____________________
1.Balance is included in “Investments” in the condensed consolidated balance sheets. Livent NQSP investments in Livent common stock are recorded as "Treasury stock" in the condensed consolidated balance sheets and carried at historical cost. A mark-to-market loss of $0.2 million and gain of $0.2 million was recorded for the three months ended March 31, 2022 and March 31, 2021, respectively, related to the Livent common stock. The mark-to-market losses and gains were recorded in "Selling, general and administrative expense" in the condensed consolidated statement of operations, with a corresponding offset to the deferred compensation plan obligation in the condensed consolidated balance sheets.
2.Balance is included in “Other long-term liabilities” in the condensed consolidated balance sheets.


Note 13: Commitments and Contingencies
Contingencies
We are a party to various legal proceedings, including those noted in this section. Livent records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As additional information becomes available, management adjusts its assessments and estimates. Legal costs are expensed as incurred.
In addition to the legal proceedings noted below, we have certain contingent liabilities arising in the ordinary course of business. Some of these contingencies are known but are so preliminary that the merits cannot be determined, or if more advanced, are not deemed material based on current knowledge; and some are unknown - for example, claims with respect to which we have no notice or claims which may arise in the future from products sold, guarantees or warranties made, or indemnities provided. Therefore, we are unable to develop a reasonable estimate of our potential exposure of loss for these contingencies, either individually or in the aggregate, at this time. There can be no assurance that the outcome of these
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LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
contingencies will be favorable, and adverse results in certain of these contingencies could have a material adverse effect on the consolidated financial position, results of operations in any one reporting period, or liquidity.
Argentine Customs Authority
On July 31, 2020, we received notice from the Argentine Customs Authority that it was conducting an audit of Minera del Altiplano SA, our subsidiary in Argentina (“MdA”). The audit relates to the export of Lithium Carbonate from Argentina for the period January 10, 2015 through December 31, 2017. Although this relates to a period of time when MdA was a subsidiary of FMC, the Company agreed to bear any possible liability for this matter under the terms of the Tax Matters Agreement that it entered into with FMC in connection with the Separation. A range of reasonably possible liabilities, if any, cannot be currently estimated by the Company.

Leases
All of our leases are operating leases as of March 31, 2022 and December 31, 2021. We have operating leases for corporate offices, manufacturing facilities, and land. Our leases have remaining lease terms of one to thirteen years. Quantitative disclosures about our leases are summarized in the table below.
Three Months Ended March 31,
(in Millions, except for weighted-average amounts)20222021
Lease Cost
Operating lease cost $0.4 $0.2 
Short-term lease cost
0.1 0.3 
Total lease cost (1)
$0.5 $0.5 
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Cash paid for operating leases$0.4 $0.5 
__________________________
1.Variable lease cost for the three months ended March 31, 2022 and 2021 was less than $0.1 million. Lease expense is classified as "Selling, general and administrative expenses" in our condensed consolidated statements of operations.

As of March 31, 2022, our operating leases had a weighted average remaining lease term of 8.2 years and a weighted average discount rate of 4.9%.
The table below presents a maturity analysis of our operating lease liabilities for each of the next five years and a total of the amounts for the remaining years.
(in Millions)Undiscounted cash flows
Remainder of 2022$1.0 
20231.2 
20241.1 
20251.1 
20260.2 
Thereafter2.8 
Total future minimum lease payments7.4 
Less: Imputed interest(1.3)
Total$6.1 


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LIVENT CORPORATION
Notes to the Condensed Consolidated Financial Statements (unaudited) — (Continued)
Note 14: Supplemental Information
The following tables present details of prepaid and other current assets, other assets, accrued and other current liabilities, and other long-term liabilities as presented on the condensed consolidated balance sheets:
(in Millions)March 31, 2022December 31, 2021
Prepaid and other current assets
Tax related items$12.6 $17.7 
Prepaid expenses8.9 12.2 
Argentina government receivable (1)
6.1 13.3 
Other receivables3.3 2.3 
Bank Acceptance Drafts (2)
1.7  
Derivative assets (Note 12)0.4 0.2 
Other current assets7.0 9.6 
Total$40.0 $55.3 

(in Millions)March 31, 2022December 31, 2021
Other assets
Argentina government receivable (1)
$65.7 $55.8 
Advance to contract manufacturers (3)
15.5 16.0 
Long-term raw materials inventory5.4 4.9 
Tax related items2.5 1.3 
Capitalized software, net1.4 1.5 
Other assets10.4 11.4 
Total$100.9 $90.9 
_________________
1.We conduct business in Argentina. As of March 31, 2022 and December 31, 2021, $38.4 million and $38.4 million, respectively, of outstanding receivables due from the Argentina government, which primarily represent export tax and export rebate receivables, was denominated in U.S. dollars. As with all outstanding receivable balances, we continually review recoverability by analyzing historical experience, current collection trends and regional business and political factors among other factors.
2.Bank Acceptance Drafts are a common Chinese finance note used to settle trade transactions. Livent accepts these notes from Chinese customers based on criteria intended to ensure collectability and limit working capital usage.
3.We record deferred charges for certain contract manufacturing agreements which we amortize over the term of the underlying contract.

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


(in Millions)March 31, 2022December 31, 2021
Accrued and other current liabilities
Accrued investment in unconsolidated affiliate$14.2 $6.2 
Accrued payroll7.8 17.1 
Plant restructuring reserves3.2 3.2 
Advance customer payments0.7  
Retirement liability - 401k0.6 2.5 
Environmental reserves, current0.5 0.5 
Severance related 0.3  
Other accrued and other current liabilities (1)
26.9 32.3 
Total$54.2 $61.8 
(in Millions)March 31, 2022December 31, 2021
Other long-term liabilities
Deferred compensation plan obligation$6.6 $5.9 
Contingencies related to uncertain tax positions (2)
4.0 2.3 
Self-insurance reserves1.5 1.5 
Asset retirement obligations0.3 0.3 
Other long-term liabilities1.7 1.7 
Total$14.1 $11.7 
____________________
1.Amounts primarily include accrued capital expenditures related to our expansion projects.
2.As of March 31, 2022, we have recorded a liability for uncertain tax positions of $3.6 million and a $0.4 million indemnification liability where the offsetting uncertain tax position is with FMC, per the tax matters agreement.


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
Statement under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: We and our representatives may from time to time make written or oral statements that are “forward-looking” and provide other than historical information, including statements contained in Item 2 of this Quarterly Report on Form 10-Q, in our other filings with the SEC, or in reports to our stockholders.
In some cases, we have identified forward-looking statements by such words or phrases as “will likely result,” “is confident that,” “expect,” “expects,” “should,” “could,” “may,” “will continue to,” “believe,” “believes,” “anticipates,” “predicts,” “forecasts,” “estimates,” “projects,” “potential,” “intends” or similar expressions identifying “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the Company based on currently available information. These forward-looking statements may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement.
Currently, one of the most significant factors is the continuing effects of the COVID-19 global pandemic. Restrictions intended to slow the spread of COVID-19 have led to and may continue to cause business and supply chain disruptions, volatility in global capital and financial markets (including inflation), and a global slowdown of economic activity. The emergency measures imposed by governments on businesses and individuals, including quarantines, travel restrictions, social distancing, workforce retention rules and restrictions on the movement of workers, among other measures, have impacted and may further impact our workforce and operations, and those of our customers and suppliers. The severity of the disruptions caused by the COVID-19 pandemic, and their impact on our results, will be determined by how long the COVID-19 pandemic continues, which is currently unknown. The duration of the disruptions may be impacted by the actions that governments, businesses and individuals may take in relation to the COVID-19 pandemic, more contagious variants of the virus, vaccine resistance and delays in vaccine distribution. Future disruptions could have an adverse impact on our operations and expansion activities, results, financial position and liquidity, or on our ability to successfully execute our business strategies and initiatives.
Additional factors include, among other things:
a decline in the growth in demand for EVs using high performance lithium compounds;
vo