10-Q 1 form10q.htm 10-Q
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 October 1, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-11430

MINERALS TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)

Delaware
  
25-1190717
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification No.)

622 Third Avenue, New York, New York 10017-6707
(Address of principal executive offices, including zip code)

(212) 878-1800
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol
Name of exchange on which registered
Common Stock, $0.10 par value
MTX
New York Stock Exchange LLC

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 and 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 October 20, 2023, there were 32,543,860 shares of common stock, par value of $0.10 per share, of the registrant outstanding.

MINERALS TECHNOLOGIES INC.
INDEX TO FORM 10-Q
Page No.
PART I.   FINANCIAL INFORMATION
  
   
Item 1.
Financial Statements:
  
     
 
Condensed Consolidated Statements of Income (Loss) for the three-month and nine-month periods ended October 1, 2023 and October 2, 2022 (Unaudited)
3
     
 
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three-month and nine-month periods ended October 1, 2023 and October 2, 2022 (Unaudited)
4
     
 
Condensed Consolidated Balance Sheets as of October 1, 2023 (Unaudited) and December 31, 2022
5
     
 
Condensed Consolidated Statements of Cash Flows for the nine-month periods ended October 1, 2023 and October 2, 2022 (Unaudited)
6
     
 
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three-month periods ended October 1, 2023, July 2, 2023 and April 2, 2023 and October 2, 2022, July 3, 2022 and April 3, 2022 (Unaudited)
7
     
 
9
     
 
20
     
Item 2.
21
     
Item 3.
30
     
Item 4.
31
     
PART II.   OTHER INFORMATION
  
     
Item 1.
31
     
Item 1A.
31
     
Item 2.
32
     
Item 3.
32
     
Item 4.
32
     
Item 5.
32
     
Item 6.
33
     
 
34



PART 1. FINANCIAL INFORMATION

ITEM 1.  Financial Statements

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)

  
Three Months Ended
    
Nine Months Ended
  
(in millions of dollars, except per share data)
  
Oct. 1,
2023
    
Oct. 2,
2022
    
Oct. 1,
2023
    
Oct. 2,
2022
  
                         
Net sales
  
$
547.8
    
$
541.9
    
$
1,645.4
    
$
1,617.9
  
Cost of goods sold
    
414.7
      
423.6
      
1,263.6
      
1,250.6
  
Production margin
    
133.1
      
118.3
      
381.8
      
367.3
  
                                 
Marketing and administrative expenses
    
50.9
      
46.0
      
155.0
      
143.6
  
Research and development expenses
    
5.2
      
5.1
      
16.1
      
15.2
  
Restructuring and other items, net
    
0.3
      
—
      
6.9
      
—
  
Impairment of assets
    
71.7
      
—
      
71.7
      
—
  
Acquisition-related expenses
    
—
      
0.5
      
0.3
      
4.7
  
Litigation expenses
    
12.9
      
31.1
      
26.8
      
32.6
  
                                 
Income (loss) from operations
    
(7.9
)
    
35.6
      
105.0
      
171.2
  
                                 
Interest expense, net
    
(15.3
)
    
(11.0
)
    
(44.0
)
    
(31.2
)
Debt extinguishment expenses
    
—
      
(6.9
)
    
—
      
(6.9
)
Non-cash pension settlement charge
    
—
      
(0.2
)
    
—
      
(1.7
)
Other non-operating income (deductions), net
    
0.6
      
(0.4
)
    
(1.9
)
    
(2.0
)
Total non-operating deductions, net
    
(14.7
)
    
(18.5
)
    
(45.9
)
    
(41.8
)
                                 
Income (loss) before tax and equity in earnings
    
(22.6
)
    
17.1
      
59.1
      
129.4
  
Provision (benefit) for taxes on income
    
(3.5
)
    
3.2
      
14.5
      
25.8
  
Equity in earnings of affiliates, net of tax
    
1.0
      
0.7
      
3.0
      
1.4
  
                                 
Net income (loss)
    
(18.1
)
    
14.6
      
47.6
      
105.0
  
Less:
                                
Net income attributable to non-controlling interests
    
1.1
      
1.2
      
3.2
      
2.6
  
Net income (loss) attributable to Minerals Technologies Inc.
  
$
(19.2
)
  
$
13.4
    
$
44.4
    
$
102.4
  
                                 
Earnings (loss) per share:
                                
                                 
Basic:
                                
Net income (loss) attributable to Minerals Technologies Inc.
  
$
(0.59
)
  
$
0.41
    
$
1.37
    
$
3.12
  
                                 
Diluted:
                                
Net income (loss) attributable to Minerals Technologies Inc.
  
$
(0.59
)
  
$
0.41
    
$
1.36
    
$
3.11
  
                                 
Cash dividends declared per common share
  
$
0.05
    
$
0.05
    
$
0.15
    
$
0.15
  
                                 
Shares used in computation of earnings per share:
                                
Basic
    
32.5
      
32.5
      
32.5
      
32.8
  
Diluted
    
32.5
      
32.6
      
32.6
      
32.9
  

See accompanying Notes to Condensed Consolidated Financial Statements.

3

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

  
Three Months Ended
    
Nine Months Ended
  
(in millions of dollars)
  
Oct. 1,
2023
    
Oct. 2,
2022
    
Oct. 1,
2023
    
Oct. 2,
2022
  
                         
Net income (loss)
  
$
(18.1
)
  
$
14.6
    
$
47.6
    
$
105.0
  
Other comprehensive loss, net of tax:
                                
Foreign currency translation adjustments
    
(22.1
)
    
(52.0
)
    
(38.2
)
    
(111.5
)
Pension and postretirement plan adjustments
    
0.4
      
0.9
      
1.3
      
4.3
  
Unrealized gains (losses) on derivative instruments
    
0.7
      
7.1
      
(1.2
)
    
16.4
  
Total other comprehensive loss, net of tax
    
(21.0
)
    
(44.0
)
    
(38.1
)
    
(90.8
)
Total comprehensive income (loss) including non-controlling interests
    
(39.1
)
    
(29.4
)
    
9.5
      
14.2
  
Comprehensive income (loss) attributable to non-controlling interests
    
0.5
      
(0.1
)
    
(0.8
)
    
0.3
  
Comprehensive income (loss) attributable to Minerals Technologies Inc.
  
$
(38.6
)
  
$
(29.5
)
  
$
8.7
    
$
14.5
  

See accompanying Notes to Condensed Consolidated Financial Statements.


4


MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions of dollars)
  
Oct. 1,
2023*
    
Dec. 31,
2022 **
  
ASSETS
            
             
Current assets:
            
Cash and cash equivalents
  
$
268.4
    
$
247.2
  
Short-term investments
    
9.8
      
5.6
  
Accounts receivable, net
    
418.3
      
404.0
  
Inventories
    
337.5
      
348.8
  
Prepaid expenses and other current assets
    
60.2
      
64.9
  
Total current assets
    
1,094.2
      
1,070.5
  
                 
Property, plant and equipment
    
2,146.9
      
2,288.6
  
Less accumulated depreciation and depletion
    
(1,169.3
)
    
(1,238.2
)
Property, plant and equipment, net
    
977.6
      
1,050.4
  
Goodwill
    
913.6
      
914.8
  
Intangible assets
    
232.2
      
241.9
  
Deferred income taxes
    
24.3
      
24.4
  
Other assets and deferred charges
    
102.8
      
99.6
  
Total assets
  
$
3,344.7
    
$
3,401.6
  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
                 
Current liabilities:
                
Short-term debt
  
$
109.2
    
$
119.7
  
Current maturities of long-term debt
    
14.4
      
14.5
  
Accounts payable
    
184.8
      
193.8
  
Other current liabilities
    
165.1
      
174.6
  
Total current liabilities
    
473.5
      
502.6
  
                 
Long-term debt, net of unamortized discount and deferred financing costs
    
918.0
      
928.1
  
Deferred income taxes
    
163.7
      
180.4
  
Accrued pension and post-retirement benefits
    
58.9
      
63.5
  
Other non-current liabilities
    
108.0
      
113.8
  
Total liabilities
    
1,722.1
      
1,788.4
  
                 
Commitments and contingencies
    
     
 
                 
Shareholders’ equity:
                
Common stock
    
4.9
      
4.9
  
Additional paid-in capital
    
493.4
      
487.6
  
Retained earnings
    
2,324.1
      
2,284.6
  
Accumulated other comprehensive loss
    
(402.2
)
    
(366.5
)
Less common stock held in treasury
    
(831.1
)
    
(831.1
)
                 
Total Minerals Technologies Inc. shareholders’ equity
    
1,589.1
      
1,579.5
  
Non-controlling interests
    
33.5
      
33.7
  
Total shareholders’ equity
    
1,622.6
      
1,613.2
  
Total liabilities and shareholders’ equity
  
$
3,344.7
    
$
3,401.6
  

*
Unaudited
**
Condensed from audited financial statements

See accompanying Notes to Condensed Consolidated Financial Statements.
5


MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

  
Nine Months Ended
  
(in millions of dollars)
  
Oct. 1,
2023
    
Oct. 2,
2022
  
Operating Activities:
            
             
Net income
  
$
47.6
    
$
105.0
  
                 
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation, depletion and amortization
    
71.5
      
71.2
  
Impairment of assets
    
71.7
      
—
  
Non-cash pension settlement charge
    
—
      
1.7
  
Reduction of right of use asset
    
10.6
      
9.5
  
Non-cash debt extinguishment expenses
    
—
      
6.9
  
Pension plan funding
    
(6.3
)
    
(5.3
)
Other non-cash items, net
    
(1.1
)
    
15.1
  
Net changes in operating assets and liabilities
    
(55.7
)
    
(140.5
)
Net cash provided by operating activities
    
138.3
      
63.6
  
                 
Investing Activities:
                
                 
Purchases of property, plant and equipment, net
    
(71.0
)
    
(59.4
)
Payments related to acquisition of business, net of cash acquired
    
(1.8
)
    
(22.4
)
Proceeds from sale of assets
    
0.2
      
1.0
  
Proceeds from sale of short-term investments
    
8.5
      
6.1
  
Purchases of short-term investments
    
(12.0
)
    
(2.8
)
Other investing activities
    
0.3
      
1.6
  
Net cash used in investing activities
    
(75.8
)
    
(75.9
)
                 
Financing Activities:
                
                 
Long-term debt issuance
    
—
      
550.0
  
Deferred financing costs
    
—
      
(3.2
)
Repayment of long-term debt
    
(11.0
)
    
(548.7
)
Proceeds from issuance of short-term debt
    
—
      
38.5
  
Repayment of short-term debt
    
(10.6
)
    
—
  
Purchase of common stock for treasury
    
—
      
(56.0
)
Proceeds from issuance of stock under option plan
    
0.2
      
3.5
  
Excess tax benefits related to stock incentive programs
    
(2.8
)
    
(3.3
)
Dividends paid to non-controlling interests
    
(1.0
)
    
(6.3
)
Cash dividends paid
    
(4.9
)
    
(4.9
)
Net cash used in financing activities
    
(30.1
)
    
(30.4
)
                 
Effect of exchange rate changes on cash and cash equivalents
    
(11.2
)
    
(32.7
)
                 
Net increase (decrease) in cash and cash equivalents
    
21.2
      
(75.4
)
Cash and cash equivalents at beginning of period
    
247.2
      
299.5
  
Cash and cash equivalents at end of period
  
$
268.4
    
$
224.1
  
                 
Supplemental disclosure of cash flow information:
                
Interest paid
  
$
50.3
    
$
35.1
  
Income taxes paid
  
$
38.1
    
$
28.9
  


See accompanying Notes to Condensed Consolidated Financial Statements.
6


MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)

  
Equity Attributable to Minerals Technologies Inc.
              
(millions of dollars)
  
Common
Stock
    
Additional
Paid-in
Capital
    
Retained
Earnings
    
Accumulated
Other
Comprehensive
Loss
    
Treasury
Stock
    
Non-controlling
Interests
    
Total
  
Balance as of December 31, 2022
  
$
4.9
    
$
487.6
    
$
2,284.6
    
$
(366.5
)
  
$
(831.1
)
  
$
33.7
    
$
1,613.2
  
                                                         
Net income
    
—
      
—
      
37.0
      
—
      
—
      
1.1
      
38.1
  
Other comprehensive income, net
    
—
      
—
      
—
      
7.7
      
—
      
0.4
      
8.1
  
Dividends declared
    
—
      
—
      
(1.6
)
    
—
      
—
      
—
      
(1.6
)
Issuance of shares pursuant to employee stock compensation plans
    
—
      
0.2
      
—
      
—
      
—
      
—
      
0.2
  
Stock-based compensation
    
—
      
2.7
      
—
      
—
      
—
      
—
      
2.7
  
Conversion of RSU's for tax withholding
    
—
      
(2.7
)
    
—
      
—
      
—
      
—
      
(2.7
)
Balance as of April 2, 2023
  
$
4.9
    
$
487.8
    
$
2,320.0
    
$
(358.8
)
  
$
(831.1
)
  
$
35.2
    
$
1,658.0
  
                                                         
Net income
    
—
      
—
      
26.6
      
—
      
—
      
1.0
      
27.6
  
Other comprehensive loss, net
    
—
      
—
      
—
      
(24.0
)
    
—
      
(1.2
)
    
(25.2
)
Dividends declared
    
—
      
—
      
(1.7
)
    
—
      
—
      
—
      
(1.7
)
Stock-based compensation
    
—
      
2.8
      
—
      
—
      
—
      
—
      
2.8
  
Balance as of July 2, 2023
  
$
4.9
    
$
490.6
    
$
2,344.9
    
$
(382.8
)
  
$
(831.1
)
  
$
35.0
    
$
1,661.5
  
                                                         
Net income (loss)
    
—
      
—
      
(19.2
)
    
—
      
—
      
1.1
      
(18.1
)
Other comprehensive loss, net
    
—
      
—
      
—
      
(19.4
)
    
—
      
(1.6
)
    
(21.0
)
Dividends declared
    
—
      
—
      
(1.6
)
    
—
      
—
      
—
      
(1.6
)
Dividends paid to non-controlling interests
    
—
      
—
      
—
      
—
      
—
      
(1.0
)
    
(1.0
)
Stock-based compensation
    
—
      
2.8
      
—
      
—
      
—
      
—
      
2.8
  
Balance as of October 1, 2023
  
$
4.9
    
$
493.4
    
$
2,324.1
    
$
(402.2
)
  
$
(831.1
)
  
$
33.5
    
$
1,622.6
  

See accompanying Notes to Condensed Consolidated Financial Statements.

7

MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)

 
  
Equity Attributable to Minerals Technologies Inc.
              
(millions of dollars)
  
Common
Stock
    
Additional
Paid-in
Capital
    
Retained
Earnings
    
Accumulated
Other
Comprehensive
Loss
    
Treasury
Stock
    
Non-controlling
Interests
    
Total
  
Balance as of December 31, 2021
  
$
4.9
    
$
474.2
    
$
2,168.9
    
$
(333.6
)
  
$
(775.1
)
  
$
40.2
    
$
1,579.5
  
                                                         
Net income
    
—
      
—
      
44.1
      
—
      
—
      
0.8
      
44.9
  
Other comprehensive income (loss), net
    
—
      
—
      
—
      
(4.0
)
    
—
      
0.1
      
(3.9
)
Dividends declared
    
—
      
—
      
(1.6
)
    
—
      
—
      
—
      
(1.6
)
Dividends paid to non-controlling interests
    
—
      
—
      
—
      
—
      
—
      
(0.1
)
    
(0.1
)
Issuance of shares pursuant to employee stock compensation plans
    
—
      
0.9
      
—
      
—
      
—
      
—
      
0.9
  
Purchase of common stock for treasury
    
—
      
—
      
—
      
—
      
(16.7
)
    
—
      
(16.7
)
Stock-based compensation
    
—
      
2.8
      
—
      
—
      
—
      
—
      
2.8
  
Conversion of RSU's for tax withholding
    
—
      
(2.8
)
    
—
      
—
      
—
      
—
      
(2.8
)
Balance as of April 3, 2022
  
$
4.9
    
$
475.1
    
$
2,211.4
    
$
(337.6
)
  
$
(791.8
)
  
$
41.0
    
$
1,603.0
  
                                                         
Net income
    
—
      
—
      
44.9
      
—
      
—
      
0.6
      
45.5
  
Other comprehensive loss, net
    
—
      
—
      
—
      
(40.9
)
    
—
      
(1.9
)
    
(42.8
)
Dividends declared
    
—
      
—
      
(1.6
)
    
—
      
—
      
—
      
(1.6
)
Dividends paid to non-controlling interests
    
—
      
—
      
—
      
—
      
—
      
(6.2
)
    
(6.2
)
Issuance of shares pursuant to employee stock compensation plans
    
—
      
0.2
      
—
      
—
      
—
      
—
      
0.2
  
Purchase of common stock for treasury
    
—
      
—
      
—
      
—
      
(24.0
)
    
—
      
(24.0
)
Stock-based compensation
    
—
      
2.8
      
—
      
—
      
—
      
—
      
2.8
  
Balance as of July 3, 2022
  
$
4.9
    
$
478.1
    
$
2,254.7
    
$
(378.5
)
  
$
(815.8
)
  
$
33.5
    
$
1,576.9
  
                                                         
Net income
    
—
      
—
      
13.4
      
—
      
—
      
1.2
      
14.6
  
Other comprehensive loss, net
    
—
      
—
      
—
      
(42.9
)
    
—
      
(1.1
)
    
(44.0
)
Dividends declared
    
—
      
—
      
(1.8
)
    
—
      
—
      
—
      
(1.8
)
Issuance of shares pursuant to employee stock compensation plans
    
—
      
2.4
      
—
      
—
      
—
      
—
      
2.4
  
Purchase of common stock for treasury
    
—
      
—
      
—
      
—
      
(15.3
)
    
—
      
(15.3
)
Stock-based compensation
    
—
      
2.8
      
—
      
—
      
—
      
—
      
2.8
  
Balance as of October 2, 2022
  
$
4.9
    
$
483.3
    
$
2,266.3
    
$
(421.4
)
  
$
(831.1
)
  
$
33.6
    
$
1,535.6
  

See accompanying Notes to Condensed Consolidated Financial Statements.


8
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


Note 1.  Basis of Presentation and Summary of Significant Accounting Policies


The accompanying unaudited condensed consolidated financial statements have been prepared by management of Minerals Technologies Inc. (the “Company”, “MTI”, “we”, or “us”) in accordance with the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included. The results for the three-month and nine-month periods ended October 1, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.

Company Operations


The Company is a leading, technology-driven specialty minerals company that develops, produces, and markets a broad range of mineral and mineral-based products, related systems and services. The Company serves globally a wide range of consumer and industrial markets, including household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental.


In the first quarter of 2023, the Company realigned its business reporting structure into two segments to better align our business and technologies with our customers and end markets and create a more efficient and effective management structure which reflects the way performance is evaluated and resources are allocated.


The Company now has two reportable segments: Consumer & Specialties and Engineered Solutions.

–
The Consumer & Specialties segment serves consumer end markets directly and provides mineral-based solutions and technologies that are essential to our customers’ products. The two product lines in this segment are Household & Personal Care - our mineral-to-shelf product line that serves pet care, personal and household care, fluid purification and other consumer oriented markets, and Specialty Additives, delivering specialty mineral additives to a variety of consumer and industrial end markets including paper, packaging, construction, automotive, and food and pharmaceuticals.

–
The Engineered Solutions segment combines all engineered systems, mineral blends, and technologies that are designed to aid in customer processes and projects. The two product lines in this segment are High-Temperature Technologies – combining all of our mineral-based blends, technologies, and systems serving the foundry, steel, glass, aluminum and other high-temperature processing industries, and Environmental & Infrastructure, which includes environmental and remediation solutions such as geosynthetic clay lining systems, water remediation technologies as well as drilling, commercial building and infrastructure-related products.


Use of Estimates


The Company employs accounting policies that are in accordance with U.S. generally accepted accounting principles and require management to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period. Significant estimates include those related to revenue recognition, valuation of long-lived assets, goodwill and other intangible assets, income taxes, including valuation allowances, contingent liabilities, and pension plan assumptions. Actual results could differ from those estimates.


Recently Issued Accounting Standards


Changes to accounting principles generally accepted in the United States of America (U.S. GAAP) are established by the Financial Accounting Standards Board (FASB) in the form of accounting standards updates (ASUs) to the FASB’s Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. All recently issued ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.

9
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Note 2.  Revenue from Contracts with Customers


On a regular basis the Company reviews its segments and the approach used by the chief decision maker to assess performance and allocate resources.  Effective January 1, 2023, the Company realigned its business reporting structure and reorganized into two reportable segments, Consumer & Specialties and Engineered Solutions.


The following table disaggregates our revenue by major source (product line) for the three and nine-month periods ended October 1, 2023 and October 2, 2022:

(in millions of dollars)
  
Three Months Ended
    
Nine Months Ended
  
Net Sales
  
Oct. 1,
2023
    
Oct. 2,
2022
    
Oct. 1,
2023
    
Oct. 2,
2022
  
                         
Household & Personal Care
  
$
128.9
    
$
118.7
    
$
383.6
    
$
358.0
  
Specialty Additives
    
162.3
      
166.0
      
495.2
      
493.4
  
Consumer & Specialties Segment
    
291.2
      
284.7
      
878.8
      
851.4
  
                                 
High-Temperature Technologies
    
177.4
      
176.1
      
538.6
      
532.7
  
Environmental & Infrastructure
    
79.2
      
81.1
      
228.0
      
233.8
  
Engineered Solutions Segment
    
256.6
      
257.2
      
766.6
      
766.5
  
                                 
Total
  
$
547.8
    
$
541.9
    
$
1,645.4
    
$
1,617.9
  

Note  3.  Acquisitions


Concept Pet Heimtierprodukte GmbH


On April 29, 2022, the Company completed the acquisition of Concept Pet Heimtierprodukte GmbH (“Concept Pet”), a European supplier of pet litter products. The purchase of Concept Pet supports the expansion of our European pet care business, as well as providing additional mineral reserves.  The purchase price was $28.0 million and acquisition was financed through cash on hand.  The fair value of the total consideration transferred, net of cash acquired, was $22.4 million. In the second quarter of 2023, an additional $1.8 million of hold back consideration was paid. The results of Concept Pet are included within our Household & Personal Care product line in our Consumer & Specialties segment. The acquisition has been accounted for using the acquisition method of accounting, which requires, among other things, that we recognize the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The Company has recorded goodwill of $9.3 million and intangible assets of $4.3 million relating to this acquisition.


The Company incurred $— million and $0.3 million of acquisition related transaction and integration costs during the three and nine-month periods ended October 1, 2023 and $0.5 million and $4.7 million in the three and nine-month periods ended October 2, 2022, which are reflected within the acquisition-related expenses line of the Condensed Consolidated Statements of Income (Loss).


Note 4.  Earnings (Loss) per Share (EPS)


Basic earnings (loss) per share are based upon the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding.

10
MINERALS TECHNOLOGIES INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)


The following table sets forth the computation of basic and diluted earnings (loss) per share:

 
Three Months Ended
    
Nine Months Ended
  
(in millions of dollars, except per share data)
  
Oct. 1,
2023
    
Oct. 2,
2022
    
Oct. 1,
2023
    
Oct. 2,
2022
  
                         
Net income (loss) attributable to Minerals Technologies Inc.
  
$
(19.2
)
  
$
13.4
    
$
44.4
    
$
102.4
  
                                 
Weighted average shares outstanding
    
32.5
      
32.5
      
32.5
      
32.8
  
Dilutive effect of stock options and deferred restricted stock units
    
—
      
0.1
      
0.1
      
0.1
  
Weighted average shares outstanding, adjusted
    
32.5
      
32.6
      
32.6
      
32.9
  
                                 
Basic earnings (loss) per share attributable to Minerals Technologies Inc.
  
$
(0.59
)
  
$
0.41
    
$
1.37
    
$
3.12
  
                                 
Diluted earnings (loss) per share attributable to Minerals Technologies Inc.
  
$
(0.59
)
  
$
0.41
    
$
1.36
    
$
3.11
  


Of the options outstanding of 1,604,217 and 1,460,734 for the three-month and nine-month periods ended October 1, 2023 and October 2, 2022, respectively, options to purchase 1,285,619 shares and 1,106,596 shares of common stock for the three-month and nine-month periods ending October 1, 2023 and October 2, 2022, respectively, were not included in the computation of diluted earnings per share because they were anti-dilutive, as the exercise prices of the options were greater than the average market price of the common shares.


Note 5.  Restructuring and Other Items, net


In the third quarter of 2023, the Company recorded a $71.7 million non-cash impairment of long-lived assets charge related to its subsidiaries Barretts Minerals Inc. and Barretts Ventures Texas LLC within the Consumer & Specialties segment. This impairment was triggered by increased claims and continued increases in legal costs, which led to the voluntary filing for relief under Chapter 11 of the U.S. Bankruptcy Code to address and comprehensively resolve Barretts Minerals Inc.'s liabilities associated with the talc claims. See Notes 13 and 15 to the Condensed Consolidated Financial Statements for further information.


In the second quarter of 2023, the Company initiated a restructuring and cost savings program to further streamline our cost structure as a result of organizational efficiencies gained through our recent resegmentation. As a result, the Company recorded a charge of $6.6 million for restructuring and other charges related to severance and other costs. In the third quarter of 2023, an incremental charge of $0.3 million was recorded relating to this program.


The following table outlines the amount of restructuring charges recorded within the Consolidated Statements of Income and the segment they relate to:

 
Three Months Ended
    
Nine Months Ended
  
(in millions of dollars)
  
Oct. 1,
2023
    
Oct. 2,
2022
    
Oct. 1,
2023
    
Oct. 2,
2022
  
                         
Asset Write-Downs
                        
   Consumer & Specialties
  
$
71.7
    
$
—
    
$
71.7
    
$
—
  
     Total asset write-down charges
  
$
71.7
    
$
—
    
$
71.7
    
$
—
  
                                 
Severance and other costs
                                
   Consumer & Specialties
  
$
0.3
    
$
—
    
$
0.9
    
$
—
  
   Engineered Solutions
    
—
      
—
      
3.2
      
—
  
   Corporate
    
—
      
—
      
2.8
      
—
  
     Total severance and other employee costs
  
$
0.3
    
$
—
    
$
6.9
    
$
—
  
                                 
         Total restructuring and other items, net
  
$
72.0
    
$
—
    
$
78.6