10-Q 1 ngvt-20230930.htm 10-Q ngvt-20230930
false2023Q30001653477--12-3100016534772023-01-012023-09-3000016534772023-10-31xbrli:shares00016534772023-07-012023-09-30iso4217:USD00016534772022-07-012022-09-3000016534772022-01-012022-09-30iso4217:USDxbrli:shares00016534772023-09-3000016534772022-12-3100016534772021-12-3100016534772022-09-30ngvt:segment0001653477ngvt:PerformanceMaterialsMember2023-07-012023-09-300001653477ngvt:PerformanceMaterialsMember2022-07-012022-09-300001653477ngvt:PerformanceMaterialsMember2023-01-012023-09-300001653477ngvt:PerformanceMaterialsMember2022-01-012022-09-300001653477ngvt:PerformanceChemicalsMember2023-07-012023-09-300001653477ngvt:PerformanceChemicalsMember2022-07-012022-09-300001653477ngvt:PerformanceChemicalsMember2023-01-012023-09-300001653477ngvt:PerformanceChemicalsMember2022-01-012022-09-300001653477ngvt:PerformanceChemicalsMemberngvt:PavementTechnologiesMember2023-07-012023-09-300001653477ngvt:PerformanceChemicalsMemberngvt:PavementTechnologiesMember2022-07-012022-09-300001653477ngvt:PerformanceChemicalsMemberngvt:PavementTechnologiesMember2023-01-012023-09-300001653477ngvt:PerformanceChemicalsMemberngvt:PavementTechnologiesMember2022-01-012022-09-300001653477ngvt:IndustrialSpecialtiesMemberngvt:PerformanceChemicalsMember2023-07-012023-09-300001653477ngvt:IndustrialSpecialtiesMemberngvt:PerformanceChemicalsMember2022-07-012022-09-300001653477ngvt:IndustrialSpecialtiesMemberngvt:PerformanceChemicalsMember2023-01-012023-09-300001653477ngvt:IndustrialSpecialtiesMemberngvt:PerformanceChemicalsMember2022-01-012022-09-300001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2023-07-012023-09-300001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2022-07-012022-09-300001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2023-01-012023-09-300001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2022-01-012022-09-300001653477srt:NorthAmericaMember2023-07-012023-09-300001653477srt:NorthAmericaMember2022-07-012022-09-300001653477srt:NorthAmericaMember2023-01-012023-09-300001653477srt:NorthAmericaMember2022-01-012022-09-300001653477srt:AsiaPacificMember2023-07-012023-09-300001653477srt:AsiaPacificMember2022-07-012022-09-300001653477srt:AsiaPacificMember2023-01-012023-09-300001653477srt:AsiaPacificMember2022-01-012022-09-300001653477ngvt:EuropeMiddleEastandAfricaMember2023-07-012023-09-300001653477ngvt:EuropeMiddleEastandAfricaMember2022-07-012022-09-300001653477ngvt:EuropeMiddleEastandAfricaMember2023-01-012023-09-300001653477ngvt:EuropeMiddleEastandAfricaMember2022-01-012022-09-300001653477srt:SouthAmericaMember2023-07-012023-09-300001653477srt:SouthAmericaMember2022-07-012022-09-300001653477srt:SouthAmericaMember2023-01-012023-09-300001653477srt:SouthAmericaMember2022-01-012022-09-300001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMember2023-09-300001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMember2022-12-310001653477us-gaap:FairValueMeasurementsNonrecurringMember2023-09-300001653477us-gaap:FairValueMeasurementsNonrecurringMember2022-12-310001653477ngvt:PrivatelyHeldCompaniesMember2023-09-300001653477ngvt:PrivatelyHeldCompaniesMember2022-12-3100016534772023-01-012023-03-310001653477ngvt:PrivatelyHeldCompaniesMember2023-01-012023-09-300001653477ngvt:PrivatelyHeldCompaniesMember2022-01-012022-12-3100016534772022-01-012022-12-310001653477srt:StandardPoorsAAPlusRatingMember2023-09-300001653477srt:StandardPoorsAARatingMember2023-09-300001653477srt:StandardPoorsAAMinusRatingMember2023-09-300001653477srt:StandardPoorsARatingMember2023-09-300001653477srt:StandardPoorsAMinusRatingMember2023-09-300001653477srt:StandardPoorsBBBPlusRatingMember2023-09-300001653477srt:StandardPoorsAAPlusRatingMember2022-12-310001653477srt:StandardPoorsAARatingMember2022-12-310001653477srt:StandardPoorsAAMinusRatingMember2022-12-310001653477srt:StandardPoorsARatingMember2022-12-310001653477srt:StandardPoorsAMinusRatingMember2022-12-310001653477srt:StandardPoorsBBBPlusRatingMember2022-12-310001653477ngvt:DebtObligationsMember2023-09-300001653477ngvt:DebtObligationsMember2022-12-310001653477us-gaap:EstimateOfFairValueFairValueDisclosureMemberngvt:DebtObligationsMember2023-09-300001653477us-gaap:EstimateOfFairValueFairValueDisclosureMemberngvt:DebtObligationsMember2022-12-310001653477ngvt:VariableInterestRateMember2023-09-300001653477ngvt:VariableInterestRateMember2022-12-310001653477ngvt:SeniorNotesIssued2018Member2023-09-300001653477ngvt:SeniorNotesIssued2018Member2022-12-310001653477us-gaap:FairValueInputsLevel2Memberngvt:SeniorNotesIssued2018Member2023-09-300001653477us-gaap:FairValueInputsLevel2Memberngvt:SeniorNotesIssued2018Member2022-12-310001653477us-gaap:MachineryAndEquipmentMember2023-09-300001653477us-gaap:MachineryAndEquipmentMember2022-12-310001653477ngvt:BuildingsAndLeaseholdImprovementsMember2023-09-300001653477ngvt:BuildingsAndLeaseholdImprovementsMember2022-12-310001653477us-gaap:LandAndLandImprovementsMember2023-09-300001653477us-gaap:LandAndLandImprovementsMember2022-12-310001653477us-gaap:ConstructionInProgressMember2023-09-300001653477us-gaap:ConstructionInProgressMember2022-12-310001653477ngvt:PerformanceMaterialsMember2022-12-310001653477ngvt:PerformanceChemicalsMember2022-12-310001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2022-12-310001653477ngvt:PerformanceMaterialsMember2023-09-300001653477ngvt:PerformanceChemicalsMember2023-09-300001653477ngvt:AdvancedPolymerTechnologiesSegmentMember2023-09-30xbrli:pure0001653477ngvt:CustomerContractsAndRelationshipsMember2022-12-310001653477us-gaap:TrademarksAndTradeNamesMember2022-12-310001653477us-gaap:TechnologyBasedIntangibleAssetsMember2022-12-310001653477ngvt:CustomerContractsAndRelationshipsMember2023-01-012023-09-300001653477us-gaap:TrademarksAndTradeNamesMember2023-01-012023-09-300001653477us-gaap:TechnologyBasedIntangibleAssetsMember2023-01-012023-09-300001653477ngvt:CustomerContractsAndRelationshipsMember2023-09-300001653477us-gaap:TrademarksAndTradeNamesMember2023-09-300001653477us-gaap:TechnologyBasedIntangibleAssetsMember2023-09-300001653477us-gaap:CurrencySwapMember2023-07-012023-09-300001653477us-gaap:CurrencySwapMember2023-01-012023-09-300001653477us-gaap:CurrencySwapMember2022-07-012022-09-300001653477us-gaap:CurrencySwapMember2022-01-012022-09-300001653477us-gaap:ForeignExchangeContractMember2023-09-300001653477us-gaap:ForeignExchangeContractMember2022-12-310001653477us-gaap:CommodityContractMemberus-gaap:SwapMember2023-09-30ngvt:mmbtus0001653477ngvt:ZeroCostCollarMemberus-gaap:CommodityContractMember2023-09-300001653477us-gaap:CommodityContractMember2023-09-300001653477us-gaap:CommodityContractMember2022-12-310001653477us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2023-07-012023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2022-07-012022-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2023-01-012023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:CommodityContractMember2022-01-012022-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:InterestRateSwapMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:CurrencySwapMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2023-01-012023-09-300001653477us-gaap:CurrencySwapMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:CurrencySwapMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2022-01-012022-09-300001653477ngvt:AccumulatedGainLossNetInvestmentHedgingMember2023-01-012023-09-300001653477ngvt:AccumulatedGainLossNetInvestmentHedgingMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberngvt:AccumulatedGainLossNetInvestmentHedgingMember2022-01-012022-09-300001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2023-09-300001653477us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2023-09-300001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2023-09-300001653477us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2023-09-300001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2023-09-300001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2022-12-310001653477us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CommodityContractMember2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2022-12-310001653477us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001653477us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-12-310001653477us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-12-310001653477us-gaap:LineOfCreditMember2023-09-300001653477us-gaap:LineOfCreditMember2022-12-310001653477us-gaap:SeniorNotesMemberngvt:A2028SeniorNotesMember2023-09-300001653477us-gaap:SeniorNotesMemberngvt:A2028SeniorNotesMember2022-12-310001653477ngvt:FinanceLeaseObligationsMember2023-09-300001653477ngvt:FinanceLeaseObligationsMember2022-12-310001653477ngvt:OtherDebtMember2023-09-300001653477ngvt:OtherDebtMember2022-12-310001653477srt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2023-09-300001653477us-gaap:RevolvingCreditFacilityMember2023-09-300001653477srt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2023-09-300001653477ngvt:TermLoanMember2023-09-300001653477us-gaap:CommonStockMember2022-12-310001653477us-gaap:AdditionalPaidInCapitalMember2022-12-310001653477us-gaap:RetainedEarningsMember2022-12-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001653477us-gaap:TreasuryStockCommonMember2022-12-310001653477us-gaap:RetainedEarningsMember2023-01-012023-03-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001653477us-gaap:CommonStockMember2023-01-012023-03-310001653477us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001653477us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001653477us-gaap:CommonStockMember2023-03-310001653477us-gaap:AdditionalPaidInCapitalMember2023-03-310001653477us-gaap:RetainedEarningsMember2023-03-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001653477us-gaap:TreasuryStockCommonMember2023-03-3100016534772023-03-310001653477us-gaap:RetainedEarningsMember2023-04-012023-06-3000016534772023-04-012023-06-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001653477us-gaap:CommonStockMember2023-04-012023-06-300001653477us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001653477us-gaap:TreasuryStockCommonMember2023-04-012023-06-300001653477us-gaap:CommonStockMember2023-06-300001653477us-gaap:AdditionalPaidInCapitalMember2023-06-300001653477us-gaap:RetainedEarningsMember2023-06-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001653477us-gaap:TreasuryStockCommonMember2023-06-3000016534772023-06-300001653477us-gaap:RetainedEarningsMember2023-07-012023-09-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001653477us-gaap:CommonStockMember2023-07-012023-09-300001653477us-gaap:TreasuryStockCommonMember2023-07-012023-09-300001653477us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001653477us-gaap:CommonStockMember2023-09-300001653477us-gaap:AdditionalPaidInCapitalMember2023-09-300001653477us-gaap:RetainedEarningsMember2023-09-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001653477us-gaap:TreasuryStockCommonMember2023-09-300001653477us-gaap:CommonStockMember2021-12-310001653477us-gaap:AdditionalPaidInCapitalMember2021-12-310001653477us-gaap:RetainedEarningsMember2021-12-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001653477us-gaap:TreasuryStockCommonMember2021-12-310001653477us-gaap:RetainedEarningsMember2022-01-012022-03-3100016534772022-01-012022-03-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001653477us-gaap:CommonStockMember2022-01-012022-03-310001653477us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001653477us-gaap:TreasuryStockCommonMember2022-01-012022-03-310001653477us-gaap:CommonStockMember2022-03-310001653477us-gaap:AdditionalPaidInCapitalMember2022-03-310001653477us-gaap:RetainedEarningsMember2022-03-310001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001653477us-gaap:TreasuryStockCommonMember2022-03-3100016534772022-03-310001653477us-gaap:RetainedEarningsMember2022-04-012022-06-3000016534772022-04-012022-06-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001653477us-gaap:CommonStockMember2022-04-012022-06-300001653477us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001653477us-gaap:TreasuryStockCommonMember2022-04-012022-06-300001653477us-gaap:CommonStockMember2022-06-300001653477us-gaap:AdditionalPaidInCapitalMember2022-06-300001653477us-gaap:RetainedEarningsMember2022-06-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001653477us-gaap:TreasuryStockCommonMember2022-06-3000016534772022-06-300001653477us-gaap:RetainedEarningsMember2022-07-012022-09-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001653477us-gaap:CommonStockMember2022-07-012022-09-300001653477us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001653477us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001653477us-gaap:CommonStockMember2022-09-300001653477us-gaap:AdditionalPaidInCapitalMember2022-09-300001653477us-gaap:RetainedEarningsMember2022-09-300001653477us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001653477us-gaap:TreasuryStockCommonMember2022-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-06-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-07-012023-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-07-012022-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2023-09-300001653477us-gaap:AccumulatedForeignCurrencyAdjustmentIncludingPortionAttributableToNoncontrollingInterestMember2022-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-06-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-09-300001653477us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-06-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-09-300001653477us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477ngvt:NetInvestmentHedgeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-012023-09-300001653477ngvt:NetInvestmentHedgeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001653477ngvt:NetInvestmentHedgeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-09-300001653477ngvt:NetInvestmentHedgeContractMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2022-01-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-09-300001653477us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-3000016534772022-07-250001653477ngvt:AlternativeFattyAcidTransitionMember2023-07-012023-09-300001653477ngvt:AlternativeFattyAcidTransitionMember2022-07-012022-09-300001653477ngvt:AlternativeFattyAcidTransitionMember2023-01-012023-09-300001653477ngvt:AlternativeFattyAcidTransitionMember2022-01-012022-09-300001653477ngvt:NorthCharlestonPlantTransitionMember2023-07-012023-09-300001653477ngvt:NorthCharlestonPlantTransitionMember2022-07-012022-09-300001653477ngvt:NorthCharlestonPlantTransitionMember2023-01-012023-09-300001653477ngvt:NorthCharlestonPlantTransitionMember2022-01-012022-09-300001653477ngvt:BusinessTransformationCostsMember2023-07-012023-09-300001653477ngvt:BusinessTransformationCostsMember2022-07-012022-09-300001653477ngvt:BusinessTransformationCostsMember2023-01-012023-09-300001653477ngvt:BusinessTransformationCostsMember2022-01-012022-09-300001653477srt:MinimumMember2023-09-300001653477srt:MaximumMember2023-09-300001653477us-gaap:OtherRestructuringMemberngvt:AlternativeFattyAcidTransitionMember2023-07-012023-09-300001653477us-gaap:OtherRestructuringMemberngvt:AlternativeFattyAcidTransitionMember2023-01-012023-09-300001653477us-gaap:OtherRestructuringMembersrt:MinimumMemberngvt:AlternativeFattyAcidTransitionMember2023-09-300001653477us-gaap:OtherRestructuringMembersrt:MaximumMemberngvt:AlternativeFattyAcidTransitionMember2023-09-300001653477us-gaap:OtherRestructuringMembersrt:MinimumMemberngvt:NorthCharlestonPlantTransitionMember2023-09-300001653477us-gaap:OtherRestructuringMembersrt:MaximumMemberngvt:NorthCharlestonPlantTransitionMember2023-09-300001653477us-gaap:OtherRestructuringMemberngvt:NorthCharlestonPlantTransitionMember2023-07-012023-09-300001653477us-gaap:OtherRestructuringMemberngvt:NorthCharlestonPlantTransitionMember2023-01-012023-09-300001653477us-gaap:OtherRestructuringMemberngvt:BusinessTransformationCostsMembersrt:MinimumMembersrt:ScenarioForecastMember2023-12-310001653477us-gaap:OtherRestructuringMemberngvt:BusinessTransformationCostsMembersrt:MaximumMembersrt:ScenarioForecastMember2023-12-310001653477ngvt:BASFLawsuitMember2019-02-14ngvt:claim0001653477us-gaap:SettledLitigationMemberngvt:BASFLawsuitMember2021-09-152021-09-1500016534772021-09-152021-09-1500016534772020-11-012020-11-300001653477ngvt:AlternativeFattyAcidTransitionMemberngvt:PerformanceChemicalsMember2023-07-012023-09-300001653477ngvt:AlternativeFattyAcidTransitionMemberngvt:PerformanceChemicalsMember2023-01-012023-09-300001653477ngvt:OzarkMaterialsMember2022-10-032022-10-030001653477ngvt:OzarkMaterialsMember2022-10-030001653477us-gaap:TrademarksAndTradeNamesMemberngvt:OzarkMaterialsMember2022-10-032022-10-030001653477us-gaap:TrademarksAndTradeNamesMemberngvt:OzarkMaterialsMember2022-10-030001653477us-gaap:CustomerRelationshipsMemberngvt:OzarkMaterialsMember2022-10-032022-10-030001653477us-gaap:CustomerRelationshipsMemberngvt:OzarkMaterialsMember2022-10-030001653477us-gaap:DevelopedTechnologyRightsMemberngvt:OzarkMaterialsMember2022-10-032022-10-030001653477us-gaap:DevelopedTechnologyRightsMemberngvt:OzarkMaterialsMember2022-10-030001653477ngvt:OzarkMaterialsMember2023-09-300001653477ngvt:OzarkMaterialsMember2023-07-012023-09-300001653477ngvt:OzarkMaterialsMember2023-01-012023-09-300001653477ngvt:AcquisitionsAndOtherStrategicInvestmentsMember2023-07-012023-09-300001653477ngvt:AcquisitionsAndOtherStrategicInvestmentsMember2022-07-012022-09-300001653477ngvt:AcquisitionsAndOtherStrategicInvestmentsMember2023-01-012023-09-300001653477ngvt:AcquisitionsAndOtherStrategicInvestmentsMember2022-01-012022-09-300001653477us-gaap:SubsequentEventMember2023-11-010001653477us-gaap:SubsequentEventMemberngvt:AssetRelatedMember2023-11-010001653477ngvt:EmployeeSeveranceAndOtherRelatedCostsMemberus-gaap:SubsequentEventMember2023-11-010001653477us-gaap:OtherRestructuringMemberus-gaap:SubsequentEventMember2023-11-010001653477srt:MinimumMembersrt:ScenarioForecastMember2024-01-012024-06-300001653477srt:MaximumMembersrt:ScenarioForecastMember2024-01-012024-06-300001653477srt:MinimumMembersrt:ScenarioForecastMember2024-12-310001653477srt:MaximumMembersrt:ScenarioForecastMember2024-12-31


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, 2023
 OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-37586
__________________________________________________________________________
ingevitylogorgba11.jpg
INGEVITY CORPORATION
(Exact name of registrant as specified in its charter)
_____________________________________________________________________ 
Delaware47-4027764
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
4920 O'Hear Avenue Suite 400North CharlestonSouth Carolina29405
(Address of principal executive offices) (Zip code)

843-740-2300
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.01 par value)NGVTNew 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  x No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit such files).  Yes  x No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See 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 securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.                                    o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).                            o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o
Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).  Yes  ☐ No  x
The registrant had 36,231,266 shares of common stock, $0.01 par value, outstanding at October 31, 2023.


Ingevity Corporation
INDEX



2

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INGEVITY CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
In millions, except per share data2023202220232022
Net sales$446.0 $482.0 $1,320.4 $1,284.7 
Cost of sales317.0 305.7 908.0 820.0 
Gross profit129.0 176.3 412.4 464.7 
Selling, general, and administrative expenses40.0 54.2 140.3 142.9 
Research and technical expenses7.8 7.6 24.6 23.1 
Restructuring and other (income) charges, net24.6 3.3 49.4 10.6 
Acquisition-related costs0.1 1.9 3.8 1.9 
Other (income) expense, net1.3 2.0 (13.9)(1.0)
Interest expense, net23.1 11.5 64.3 37.3 
Income (loss) before income taxes32.1 95.8 143.9 249.9 
Provision (benefit) for income taxes6.9 20.4 32.5 53.9 
Net income (loss)$25.2 $75.4 $111.4 $196.0 
Per share data
Basic earnings (loss) per share $0.70 $1.99 $3.05 $5.10 
Diluted earnings (loss) per share 0.69 1.98 3.03 5.06 

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


3

INGEVITY CORPORATION
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
In millions2023202220232022
Net income (loss)$25.2 $75.4 $111.4 $196.0 
Other comprehensive income (loss), net of tax:
Foreign currency adjustments:
Foreign currency translation adjustment (21.4)(55.3)(6.9)(124.9)
Unrealized gain (loss) on net investment hedges, net of tax provision (benefit) of zero, $1.0, zero, $3.2
— 3.4 — 10.7 
Total foreign currency adjustments, net of tax provision (benefit) of zero, $1.0, zero, $3.2
(21.4)(51.9)(6.9)(114.2)
Derivative instruments:
Unrealized gain (loss), net of tax provision (benefit) of $(0.1), $0.8, $(0.8), $3.5
(0.1)2.7 (2.5)11.4 
Reclassifications of deferred derivative instruments (gain) loss, included in net income (loss), net of tax (provision) benefit of $0.3, $(0.7), $0.7, $(1.7)
1.1 (2.4)2.2 (5.7)
Total derivative instruments, net of tax provision (benefit) of $0.2, $0.1, $(0.1), $1.8
1.0 0.3 (0.3)5.7 
Pension & other postretirement benefits:
Reclassifications of net actuarial and other (gain) loss and amortization of prior service cost, included in net income, net of tax of zero for all periods
— — 0.1 0.1 
Total pension and other postretirement benefits, net of tax of zero for all periods
— — 0.1 0.1 
Other comprehensive income (loss), net of tax provision (benefit) of $0.2, $1.1, $(0.1), $5.0
(20.4)(51.6)(7.1)(108.4)
Comprehensive income (loss)$4.8 $23.8 $104.3 $87.6 

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


4

INGEVITY CORPORATION
Condensed Consolidated Balance Sheets
In millions, except share and par value dataSeptember 30, 2023December 31, 2022
Assets(Unaudited)
Cash and cash equivalents$84.5 $76.7 
Accounts receivable, net of allowance for credit losses of $0.5 - 2023 and $0.5 - 2022
216.6 224.8 
Inventories, net386.7 335.0 
Prepaid and other current assets46.7 42.5 
Current assets734.5 679.0 
Property, plant, and equipment, net800.0 798.6 
Operating lease assets, net68.7 56.6 
Goodwill520.1 518.5 
Other intangibles, net375.6 404.8 
Deferred income taxes6.1 5.7 
Restricted investment, net of allowance for credit losses of $0.3 - 2023 and $0.6 - 2022
80.2 78.0 
Strategic investments99.3 109.8 
Other assets82.3 85.5 
Total Assets$2,766.8 $2,736.5 
Liabilities
Accounts payable$197.3 $174.8 
Accrued expenses64.5 54.4 
Accrued payroll and employee benefits16.5 53.3 
Current operating lease liabilities18.4 16.5 
Notes payable and current maturities of long-term debt3.0 0.9 
Income taxes payable5.4 3.6 
Current liabilities305.1 303.5 
Long-term debt including finance lease obligations1,469.7 1,472.5 
Noncurrent operating lease liabilities50.6 40.8 
Deferred income taxes105.0 106.5 
Other liabilities117.7 114.9 
Total Liabilities2,048.1 2,038.2 
Commitments and contingencies (Note 13)
Equity
Preferred stock (par value $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding - 2023 and 2022)
— — 
Common stock (par value $0.01 per share; 300,000,000 shares authorized; issued: 43,443,512 - 2023 and 43,228,172 - 2022; outstanding: 36,231,063 - 2023 and 37,298,989 - 2022)
0.4 0.4 
Additional paid-in capital162.6 153.0 
Retained earnings1,119.1 1,007.7 
Accumulated other comprehensive income (loss)(53.9)(46.8)
Treasury stock, common stock, at cost (7,212,449 shares - 2023 and 5,929,183 shares - 2022)
(509.5)(416.0)
Total Equity718.7 698.3 
Total Liabilities and Equity$2,766.8 $2,736.5 
The accompanying notes are an integral part of these financial statements.


5


INGEVITY CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,
In millions20232022
Cash provided by (used in) operating activities:
Net income (loss)$111.4 $196.0 
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization97.7 78.6 
Non cash operating lease costs13.8 13.5 
Deferred income taxes(2.3)(2.2)
Disposal/impairment of assets12.6 1.9 
LIFO reserve62.6 10.7 
Share-based compensation8.3 11.1 
Gain on sale of strategic investment(19.3)— 
Other non-cash items14.8 13.3 
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net6.1 (98.4)
Inventories, net(118.1)(63.3)
Prepaid and other current assets(5.8)(2.3)
Accounts payable20.6 48.2 
Accrued expenses9.0 5.3 
Accrued payroll and employee benefits(36.7)(2.7)
Income taxes4.2 10.1 
Pension contribution(2.0)— 
Operating leases(16.6)(15.5)
Changes in other operating assets and liabilities, net0.2 10.6 
Net cash provided by (used in) operating activities$160.5 $214.9 
Cash provided by (used in) investing activities:
Capital expenditures$(80.6)$(93.3)
Proceeds from sale of strategic investment31.5 — 
Purchase of strategic investment(2.4)(62.8)
Net investment hedge settlement— 14.7 
Other investing activities, net(4.8)(3.3)
Net cash provided by (used in) investing activities$(56.3)$(144.7)
Cash provided by (used in) financing activities:
Proceeds from revolving credit facility$237.1 $788.0 
Payments on revolving credit facility(240.1)(279.0)
Payments on long-term borrowings— (628.1)
Debt issuance costs— (3.0)
Debt repayment costs— (3.8)
Finance lease obligations, net(0.6)(0.4)
Borrowings (repayments) of notes payable and other short-term borrowings, net2.4 — 
Tax payments related to withholdings on vested equity awards(4.8)(2.2)
Proceeds and withholdings from share-based compensation plans, net4.7 2.8 
Repurchases of common stock under publicly announced plan(92.1)(139.2)
Net cash provided by (used in) financing activities$(93.4)$(264.9)
Increase (decrease) in cash, cash equivalents, and restricted cash10.8 (194.7)
Effect of exchange rate changes on cash(3.0)(8.6)
Change in cash, cash equivalents, and restricted cash7.8 (203.3)
Cash, cash equivalents, and restricted cash at beginning of period77.3 276.1 
Cash, cash equivalents, and restricted cash at end of period(1)
$85.1 $72.8 
(1)
Includes restricted cash of $0.6 million and $0.5 million and cash and cash equivalents of $84.5 million and $72.3 million at September 30, 2023 and 2022, respectively. Restricted cash is included within "Prepaid and other current assets" within the condensed consolidated balance sheets.
Supplemental cash flow information:
Cash paid for interest, net of capitalized interest$57.9 $35.9 
Cash paid for income taxes, net of refunds27.9 42.6 
Purchases of property, plant, and equipment in accounts payable6.1 5.1 
Leased assets obtained in exchange for new finance lease liabilities0.2 — 
Leased assets obtained in exchange for new operating lease liabilities26.0 9.2 
The accompanying notes are an integral part of these financial statements.


6

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)


Note 1: Background
Description of Business
Ingevity Corporation ("Ingevity," "the Company," "we," "us," or "our") provides products and technologies that purify, protect, and enhance the world around us. Through a team of talented and experienced people, we develop, manufacture, and bring to market solutions that help customers solve complex problems and make the world more sustainable. During the first quarter of 2023, we realigned our segment reporting structure to increase transparency for our investors and better align with how our chief operating decision maker intends to measure segment operating performance and allocate resources across our operating segments. We separated our engineered polymers product line from the Performance Chemicals reportable segment into its own reportable segment, Advanced Polymer Technologies. This reportable segment change also resulted in our Performance Chemicals reporting unit for goodwill being split into two separate reporting units for the purposes of goodwill impairment testing.
We operate in three reportable segments: Performance Chemicals, which includes specialty chemicals and pavement technologies; Advanced Polymer Technologies, which includes biodegradable plastics and polyurethane materials; and Performance Materials, which includes activated carbon. Our products are used in a variety of demanding applications, including adhesives, agrochemicals, asphalt paving, bioplastics, coatings, elastomers, lubricants, pavement markings, publication inks, oil exploration and production and automotive components.
Basis of Consolidation and Presentation
These unaudited Condensed Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the Annual Consolidated Financial Statements for the years ended December 31, 2022, 2021 and 2020, collectively referred to as the “Annual Consolidated Financial Statements,” included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report").
In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments which include only normal recurring adjustments necessary to fairly state the condensed consolidated results for the interim periods presented. The consolidated results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.
The preparation of the Condensed Consolidated Financial Statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates.
Certain prior year amounts have been reclassified to conform with the current year's presentation.
Note 2: New Accounting Guidance
The Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update ("ASU") to communicate changes to the Codification. We consider the applicability and impact of all ASUs. Recently issued ASUs that are not listed within this Form 10-Q have been assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.


7

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Note 3: Revenues
Disaggregation of Revenue
The following table presents our Net sales disaggregated by reportable segment and product line.
 Three Months Ended September 30,Nine Months Ended September 30,
In millions2023202220232022
Performance Materials segment$147.2 $144.9 $433.2 $415.7 
Performance Chemicals segment$256.0 $267.6 $725.6 $683.9 
Pavement Technologies product line129.7 88.3 316.4 194.0 
Industrial Specialties product line126.3 179.3 409.2 489.9 
Advanced Polymer Technologies segment$42.8 $69.5 $161.6 $185.1 
Net sales$446.0 $482.0 $1,320.4 $1,284.7 
The following table presents our Net sales disaggregated by geography, based on the delivery address of our customer.
Three Months Ended September 30,Nine Months Ended September 30,
In millions2023202220232022
North America$292.4 $291.9 $854.3 $759.7 
Asia Pacific92.4 113.6 264.3 297.3 
Europe, Middle East, and Africa48.6 62.6 167.6 194.0 
South America12.6 13.9 34.2 33.7 
Net sales$446.0 $482.0 $1,320.4 $1,284.7 
Contract Balances
The following table provides information about contract assets and contract liabilities from contracts with customers. The contract assets primarily relate to our rights to consideration for products produced but not billed at the reporting date. The contract assets are recognized as accounts receivables when the rights become unconditional and the customer has been billed. Contract liabilities represent obligations to transfer goods to a customer for which we have received consideration from our customer. For all periods presented, we had no contract liabilities.
Contract Asset
September 30,
In millions20232022
Beginning balance$6.4 $5.3 
Contract asset additions13.2 14.3 
Reclassification to accounts receivable, billed to customers(11.7)(13.4)
Ending balance (1)
$7.9 $6.2 
______________
(1) Included within "Prepaid and other current assets" on the condensed consolidated balance sheets.
Note 4: Fair Value Measurements
Fair Value Measurements
Recurring Fair Value Measurements
The following information is presented for assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that were recorded at


8

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

fair value between the three-level fair value hierarchy during the periods reported.
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
September 30, 2023
Assets:
Deferred compensation plan investments (4)
$2.4 $— $— $2.4 
Total assets$2.4 $— $— $2.4 
Liabilities:
Deferred compensation arrangement (4)
$15.1 $— $— $15.1 
Total liabilities$15.1 $— $— $15.1 
December 31, 2022
Assets:
Deferred compensation plan investments (4)
$1.1 $— $— $1.1 
Total assets$1.1 $— $— $1.1 
Liabilities:
Deferred compensation arrangement (4)
$12.5 $— $— $12.5 
Total liabilities$12.5 $— $— $12.5 
______________
(1) Quoted prices in active markets for identical assets.
(2) Quoted prices for similar assets and liabilities in active markets.
(3) Significant unobservable inputs.
(4) Consists of a deferred compensation arrangement, through which we hold various investment securities. Both the asset and liability are recorded at fair value, and are included within "Other assets" and "Other liabilities" on the condensed consolidated balance sheets, respectively. In addition to the investment securities, we also have company-owned life insurance ("COLI") related to the deferred compensation arrangement. COLI is recorded at cash surrender value and included in "Other assets" on the condensed consolidated balance sheets in the amount of $13.8 million and $13.3 million at September 30, 2023 and December 31, 2022, respectively.
Nonrecurring Fair Value Measurements
There were no nonrecurring fair value measurements in the condensed consolidated balance sheet during the quarters ended September 30, 2023, and December 31, 2022.
Strategic Investments
Equity Method Investments
The aggregate carrying value of all strategic equity method investments totaled $16.1 million and $28.2 million at September 30, 2023 and December 31, 2022, respectively. During the first quarter of 2023, we sold a strategic equity method investment for $31.5 million, resulting in a $19.3 million gain, recorded within "Other (income) expense, net" on the condensed consolidated statement of operations. There were no adjustments to the carrying value of equity method investments for impairment for the periods ended September 30, 2023 and December 31, 2022.
Measurement Alternative Investments
The aggregate carrying value of all measurement alternative investments where fair value is not readily determinable totaled $83.2 million and $80.8 million at September 30, 2023 and December 31, 2022, respectively. There were no adjustments to the carrying value of the measurement alternative method investments for impairment or observable price changes for the periods ended September 30, 2023 and December 31, 2022.


9

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Restricted Investment
At September 30, 2023 and December 31, 2022, the carrying value of our restricted investment, which is accounted for as held-to-maturity ("HTM") and therefore recorded at amortized costs, was $80.2 million and $78.0 million, net of an allowance for credit losses of $0.3 million and $0.6 million, and included cash of $9.1 million and $7.0 million, respectively. The fair value at September 30, 2023 and December 31, 2022 was $76.4 million and $74.7 million, respectively, based on Level 1 inputs.
The following table shows the total amortized cost of our HTM debt securities by credit rating, excluding the allowance for credit losses and cash. The primary factor in our expected credit loss calculation is the composite bond rating. As the rating decreases, the risk present in holding the bond is inherently increased, leading to an increase in expected credit losses.
HTM Debt Securities
In millionsAA+AAAA-AA-BBB+Total
September 30, 2023$13.3 — 10.4 13.2 24.4 10.1 $71.4 
December 31, 2022$13.4 — 10.5 13.2 14.1 20.4 $71.6 
Debt and Finance Lease Obligations
At September 30, 2023 and December 31, 2022, the carrying value of finance lease obligations was $101.3 million and $101.9 million, respectively, and the fair value was $103.6 million and $106.2 million, respectively. The fair value of our finance lease obligation associated with our Performance Materials' Wickliffe, Kentucky, manufacturing site is based on the period-end quoted market prices for the obligations, using Level 2 inputs. The fair value of all other finance lease obligations approximates their carrying values.
The carrying amount, excluding debt issuance fees, of our variable interest rate long-term debt was $825.0 million and $828.0 million as of September 30, 2023 and December 31, 2022, respectively. The carrying value is a reasonable estimate of the fair value of the outstanding debt based on the variable interest rate of the debt.
At September 30, 2023 and December 31, 2022, the carrying value of our fixed rate debt was $550.0 million and $550.0 million, respectively, and the fair value was $453.9 million and $471.8 million, respectively, based on Level 2 inputs.

Note 5: Inventories, net
In millionsSeptember 30, 2023December 31, 2022
Raw materials$172.9 $106.7 
Production materials, stores, and supplies29.9 27.9 
Finished and in-process goods274.3 228.2 
Subtotal$477.1 $362.8 
Less: LIFO reserve (1)
(90.4)(27.8)
Inventories, net$386.7 $335.0 
__________
(1) The increase in the LIFO balance in 2023 is primarily attributable to the significant inflation in the price of crude tall oil ("CTO") which is the primary raw material for our Performance Chemicals reportable segment.


10

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Note 6: Property, Plant, and Equipment, net
In millionsSeptember 30, 2023December 31, 2022
Machinery and equipment$1,218.1 $1,162.7 
Buildings and leasehold improvements210.5 200.9 
Land and land improvements26.3 24.9 
Construction in progress110.9 120.9 
Total cost$1,565.8 $1,509.4 
Less: accumulated depreciation(765.8)(710.8)
Property, plant, and equipment, net$800.0 $798.6 
Note 7: Goodwill and Other Intangible Assets, net
Goodwill
As described in Note 1, we reorganized our segment reporting structure to increase transparency for our investors and better align with the markets and customers we serve through each of our segments. This structure is also consistent with the manner in which information is presently used internally by our chief operating decision maker to evaluate performance and make resource allocation decisions. This reportable segment change impacted the identification of our Performance Chemicals reporting unit, resulting in two reporting units, Performance Chemicals and Advanced Polymer Technologies.
We have reallocated goodwill as of January 1, 2023 to align to our new reporting unit structure by using a relative fair value approach and tested goodwill for impairment immediately before and after the realignment; no impairment was identified.
Reporting Units
In millionsPerformance MaterialsPerformance ChemicalsAdvanced Polymer TechnologiesTotal
December 31, 2022$4.3 $514.2 $— $518.5 
Segment change reallocation— (165.0)165.0 — 
Foreign currency translation— — 1.6 1.6 
September 30, 2023$4.3 $349.2 $166.6 $520.1 
During the third quarter of 2023, continued reduction in demand in industrial end markets has negatively impacted our ability to offset elevated CTO costs through pricing actions within our Performance Chemicals’ reportable segment, particularly in our industrial specialties product line. CTO is essential to our industrial specialties and some of our pavement technologies product lines within our Performance Chemicals reportable segment. As a result, we concluded that a triggering event occurred for our Performance Chemicals’ reporting unit, and we performed an analysis of the reporting unit’s goodwill, intangibles and long-lived assets as of September 1, 2023. Our analysis included significant assumptions such as: revenue growth rate, Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") margin, and discount rate which are judgmental and variations in any assumptions could result in materially different calculations of fair value. Based on our analysis, the headroom associated with our Performance Chemicals’ reporting unit, which is defined as the percentage difference between the fair value of a reporting unit and its carrying value, is 19 percent at September 30, 2023. Consequently, we concluded that there was no impairment for the quarter ended September 30, 2023.


11

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Other Intangible Assets
In millionsCustomer contracts and relationships
Brands (1)
Developed TechnologyTotal
Gross Asset Value
December 31, 2022$388.5 $89.2 $88.5 $566.2 
Foreign currency translation1.4 0.6 0.6 2.6 
September 30, 2023$389.9 $89.8 $89.1 $568.8 
Accumulated Amortization
December 31, 2022$(113.8)$(23.9)$(23.7)$(161.4)
Amortization(20.0)(4.3)(7.1)(31.4)
Foreign currency translation(0.3)— (0.1)(0.4)
September 30, 2023$(134.1)$(28.2)$(30.9)$(193.2)
Other intangibles, net$255.8 $61.6 $58.2 $375.6 
_______________
(1) Represents trademarks, trade names, and know-how.
Intangible assets subject to amortization were attributed to our business segments as follows:
In millionsSeptember 30, 2023December 31, 2022
Performance Materials$1.5 $1.7 
Performance Chemicals180.7 198.0 
Advanced Polymer Technologies193.4 205.1 
Other intangibles, net$375.6 $404.8 
Amortization expense related to our intangible assets is included in Selling, general and administrative expenses on the condensed consolidated statement of operations. During the three and nine months ended September 30, 2023, we recognized amortization expense of $10.5 million and $31.4 million, respectively, and during the three and nine months ended September 30, 2022, we recognized amortization expense of $7.9 million and $23.8 million, respectively. The increase in amortization expense in 2023 as compared to 2022 was due to the Ozark Materials, LLC (“OM”), and Ozark Logistics, LLC (“OL” and, together with OM, “Ozark Materials”) acquisition as further described in Note 16.
Based on the current carrying values of intangible assets, estimated pre-tax amortization expense for the next five years is as follows: $10.5 million for the remainder of 2023, 2024 - $41.6 million, 2025 - $41.3 million, 2026 - $40.6 million, and 2027 - $40.6 million. The estimated pre-tax amortization expense may fluctuate due to changes in foreign currency exchange rates.
Note 8: Financial Instruments and Risk Management
Net Investment Hedges
In the third quarter of 2022, we terminated our fixed-to-fixed cross-currency interest rate swaps, accounted for as net investment hedges. During the three and nine months ended September 30, 2023, we recognized net interest income associated with this financial instrument of zero and zero, respectively, and during the three and nine months ended September 30, 2022, we recognized net interest income associated with this financial instrument of $0.1 million and $2.8 million, respectively.


12

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Cash Flow Hedges
Foreign Currency Exchange Risk Management
As of September 30, 2023, there were $6.0 million open foreign currency derivative contracts. The fair value of the designated foreign currency hedge contracts was a net asset (liability) of $0.1 million and $(0.5) million at September 30, 2023 and December 31, 2022, respectively.
Commodity Price Risk Management
As of September 30, 2023, we had 0.8 million and 0.1 million mm BTUS (millions of British Thermal Units) in aggregate notional volume of outstanding natural gas commodity swap contracts and zero cost collar option contracts, respectively, designated as cash flow hedges. As of September 30, 2023, open commodity contracts hedge forecasted transactions until May 2024. The fair value of the outstanding designated natural gas commodity hedge contracts as of September 30, 2023 and December 31, 2022, was a net asset (liability) of $(0.8) million and $(1.6) million, respectively.
Interest Rate Risk Management 
During 2022, we had floating-to-fixed interest rate swaps effectively converting a portion of our floating rate debt to a fixed rate. In the second quarter of 2022, we terminated the interest rate swap instruments. Upon termination of the interest rate swap instruments, we reclassified a $1.7 million gain from AOCI into Interest expense, net on the condensed consolidated statement of operations.


13

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Effect of Cash Flow and Net Investment Hedge Accounting on AOCI
In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net incomeLocation of Gain (Loss) Reclassified from AOCI in Net income
Three Months Ended September 30,
2023202220232022
Cash flow hedging derivatives
Currency exchange contracts$0.1 $0.5 $(0.2)$0.8 Net sales
Natural gas contracts(0.3)3.0 (1.2)2.3 Cost of sales
Interest rate swap contracts— — — — Interest expense, net
Total$(0.2)$3.5 $(1.4)$3.1 
Amount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing)		Location of Gain or (Loss) Recognized in Income on Derivative
(Amount Excluded from
Effectiveness Testing)
Three Months Ended September 30,
2023202220232022
Net investment hedging derivative
Currency exchange contracts(1)
$— $4.4 $— $0.1 Interest expense, net
Total$— $4.4 $— $0.1 
In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI into Net incomeLocation of Gain (Loss) Reclassified from AOCI in Net income
Nine Months Ended September 30,
2023202220232022
Cash flow hedging derivatives
Currency exchange contracts$— $1.8 $(0.7)$1.6 Net sales
Natural gas contracts(3.3)7.4 (2.2)4.1 Cost of sales
Interest rate swap contracts— 5.7 — 1.7 Interest expense, net
Total$(3.3)$14.9 $(2.9)$7.4 
In millionsAmount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Recognized in Income on Derivative
(Amount Excluded from Effectiveness Testing)		Location of Gain or (Loss) Recognized in Income on Derivative
(Amount Excluded from
Effectiveness Testing)
Nine Months Ended September 30,
2023202220232022
Net investment hedging derivative
Currency exchange contracts (1)
$— $13.9 $— $2.8 Interest expense, net
Total$— $13.9 $— $2.8 
__________
(1) Reclassifications from AOCI to Net Income were zero for all periods presented. Gains and losses would be reclassified from AOCI to Other (income) expense, net.
Within the next twelve months, we expect to reclassify $2.1 million of net gains from AOCI to income, before taxes.


14

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Fair Value Measurements
The following information is presented for derivative assets and liabilities that are recorded in the condensed consolidated balance sheets at fair value measured on a recurring basis. There were no transfers of assets and liabilities that are recorded at fair value between Level 1 and Level 2 during the periods reported. There were no nonrecurring fair value measurements related to derivative assets and liabilities on the condensed consolidated balance sheets as of September 30, 2023, or December 31, 2022.
September 30, 2023
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
Assets:
Currency exchange contracts (4)
$— $0.5 $— $0.5 
Total assets$— $0.5 $— $0.5 
Liabilities:
Currency exchange contracts(5)
$— $0.4 $— $0.4 
Natural gas contracts (5)
— 0.8 — 0.8 
Total liabilities$— $1.2 $— $1.2 
December 31, 2022
In millions
Level 1(1)
Level 2(2)
Level 3(3)
Total
Liabilities:
Natural gas contracts (5)
$— $1.6 $— $1.6 
Currency exchange contracts (5)
— 0.5 — 0.5 
Total liabilities$— $2.1 $— $2.1 
__________
(1) Quoted prices in active markets for identical assets.
(2) Quoted prices for similar assets and liabilities in active markets.
(3) Significant unobservable inputs.
(4) Included within "Prepaid and other current assets" on the condensed consolidated balance sheet.
(5) Included within "Accrued expenses" on the condensed consolidated balance sheet.


15

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Note 9: Debt, including Finance Lease Obligations
Current and long-term debt including finance lease obligations consisted of the following:
In millions, except percentagesSeptember 30, 2023December 31, 2022
Revolving Credit Facility and other lines of credit (1)
$825.0 $828.0 
3.88% Senior Notes due 2028
550.0 550.0 
Finance lease obligations101.3 101.9 
Other notes payable2.0 — 
Total debt including finance lease obligations$1,478.3 $1,479.9 
Less: debt issuance costs5.6 6.5 
Total debt, including finance lease obligations, net of debt issuance costs$1,472.7 $1,473.4 
Less: debt maturing within one year (2)
3.0 0.9 
Long-term debt including finance lease obligations$1,469.7 $1,472.5 
______________
(1) Letters of credit outstanding under the revolving credit facility were $2.3 million and $2.3 million and available funds under the facility were $172.7 million and $169.7 million at September 30, 2023 and December 31, 2022, respectively.
(2) Debt maturing within one year is included in "Notes payable and current maturities of long-term debt" on the condensed consolidated balance sheets.
Debt Covenants
Our Senior Notes indenture contains certain customary covenants (including covenants limiting Ingevity's and its restricted subsidiaries’ ability to grant or permit liens on certain property securing debt, declare or pay dividends, make distributions on or repurchase or redeem capital stock, make investments in unrestricted subsidiaries, engage in sale and lease-back transactions, and engage in a consolidation or merger, or sell, transfer or otherwise dispose of all or substantially all of the assets of Ingevity and our restricted subsidiaries, taken as a whole) and events of default (subject in certain cases to customary exceptions, as well as grace and cure periods). The occurrence of an event of default under the 2028 Senior Notes could result in the acceleration of the notes of such series and could cause a cross-default resulting in the acceleration of other indebtedness of Ingevity and its subsidiaries. We were in compliance with all covenants under the indenture as of September 30, 2023.
The credit agreement governing our revolving credit facility contains customary default provisions, including defaults for non-payment, breach of representations and warranties, insolvency, non-compliance with covenants and cross-defaults to other material indebtedness. The occurrence of an uncured event of default under the credit agreement could result in all loans and other obligations becoming immediately due and payable and our revolving credit facility being terminated. The credit agreement also contains certain customary covenants, including financial covenants. The revolving credit facility financial covenants require Ingevity to maintain on a consolidated basis a maximum total net leverage ratio of 4.0 to 1.0 (which may be increased to 4.5 to 1.0 under certain circumstances) and a minimum interest coverage ratio of 3.0 to 1.0. As calculated per the credit agreement, our net leverage for the four consecutive quarters ended September 30, 2023 was 2.5, and our actual interest coverage for the four consecutive quarters ended September 30, 2023 was 6.8. We were in compliance with all covenants under the credit agreement at September 30, 2023.


16

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Note 10: Equity
The tables below provide a roll forward of equity.
Common Stock
In millions, shares in thousandsSharesAmountAdditional paid in capitalRetained earningsAccumulated
other
comprehensive
income (loss)		Treasury stockTotal Equity
Balance at December 31, 202243,228 $0.4 $153.0 $1,007.7 $(46.8)$(416.0)$698.3 
Net income (loss)— — — 50.7 — — 50.7 
Other comprehensive income (loss)— — — — 8.0 — 8.0 
Common stock issued139 — — — — — — 
Exercise of stock options, net41 — 2.2 — — — 2.2 
Tax payments related to vested restricted stock units— — — — — (4.5)(4.5)
Share repurchase program— — — — — (33.4)(33.4)
Share-based compensation plans— — 3.7 — — 0.7 4.4 
Balance at March 31, 202343,408 $0.4 $158.9 $1,058.4 $(38.8)$(453.2)$725.7 
Net income (loss)— — — 35.5 — — 35.5 
Other comprehensive income (loss)— — — — 5.3 — 5.3 
Common stock issued22 — — — — — — 
Exercise of stock options, net— — — — — — — 
Tax payments related to vested restricted stock units— — — — — — — 
Share repurchase program— — — — — (58.7)(58.7)
Share-based compensation plans— — 4.7 — — 1.6 6.3 
Balance at June 30, 202343,430 $0.4 $163.6 $1,093.9 $(33.5)$(510.3)$714.1 
Net income (loss)— — — 25.2 — — 25.2 
Other comprehensive income (loss)— — — — (20.4)— (20.4)
Common stock issued13 — — — — — — 
Exercise of stock options, net— — — — — — — 
Tax payments related to vested restricted stock units— — — — — (0.2)(0.2)
Share repurchase program— — — — — — — 
Share-based compensation plans— — (1.0)— — 1.0 — 
Balance at September 30, 202343,443 $0.4 $162.6 $1,119.1 $(53.9)$(509.5)$718.7 


17

INGEVITY CORPORATION
Notes to the Condensed Consolidated Financial Statements
September 30, 2023
(Unaudited)

Common Stock
In millions, shares in thousandsSharesAmountAdditional paid in capitalRetained earningsAccumulated
other
comprehensive
income (loss)		Treasury stockTotal Equity
Balance at December 31, 202143,102 $0.4 $136.3 $796.1 $13.1 $(272.1)$673.8 
Net income (loss)— — — 60.8 — — 60.8 
Other comprehensive income (loss)— — — — (10.1)— (10.1)
Common stock issued42 — — — — — — 
Exercise of stock options, net36 — 0.4 — — — 0.4 
Tax payments related to vested restricted stock units— — — — — (1.8)(1.8)
Share repurchase program— — — — — (40.4)(40.4)
Share-based compensation plans— — 2.9 — — 0.5 3.4 
Balance at March 31, 202243,180 $0.4 $139.6 $856.9 $3.0 $(313.8)$686.1 
Net income (loss)— — — 59.8 — — 59.8 
Other comprehensive income (loss)— — — — (46.7)— (46.7)
Common stock issued18 — — — — — — 
Exercise of stock options, net2 — 0.1 — — — 0.1 
Tax payments related to vested restricted stock units— — — — — (0.2)(0.2)
Share repurchase program— — — — — (49.5)(49.5)
Share-based compensation plans— — 3.3 — — 1.4 4.7 
Balance at June 30, 202243,200 $0.4 $143.0 $916.7 $(43.7)$(362.1)$654.3 
Net income (loss)— — — 75.4 — — 75.4 
Other comprehensive income (loss)— — — — (51.6)— (51.6)
Common stock issued8 — — — — (0.2)(0.2)
Exercise of stock options, net5 — 0.3 — — — 0.3 
Tax payments related to vested restricted stock units— — — — — — — 
Share repurchase program— — — — — (49.3)(49.3)
Share-based compensation plans—