Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.21.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income
6. Stockholders' Equity:
Accumulated Other Comprehensive Income (Loss)
The following tables present the tax effects of each component of other comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020:
Three months ended September 30,
2021 2020
Pre-tax
amount		 Tax benefit/
(expense)		 After-tax amount Pre-tax
amount		 Tax benefit/
(expense)		 After-tax amount
Defined benefit and other postretirement plans:
Amortization of net gains $ 1  $ —  $ 1  $ 28  $ (9) $ 19 
Amortization of prior service cost (58) 14  (44) (52) 13  (39)
Settlement gain 1,507  (374) 1,133  —  —  — 
Benefit plans, net 1,450  (360) 1,090  (24) 4  (20)
Net gain from hedging activities 613  (153) 460  1,260  (315) 945 
Foreign currency translation(1)
(1,555) 4,507  2,952  17,596  (4,024) 13,572 
Other comprehensive income $ 508  $ 3,994  $ 4,502  $ 18,832  $ (4,335) $ 14,497 
Nine months ended September 30,
2021 2020
Pre-tax
amount		 Tax benefit/
(expense)		 After-tax amount Pre-tax
amount		 Tax benefit/
(expense)		 After-tax amount
Defined benefit and other postretirement plans:
Amortization of net gains $ 4  $ (1) $ 3  $ 93  $ (25) $ 68 
Amortization of prior service cost (174) 43  (131) (155) 39  (116)
Settlement gain 1,507  (374) 1,133  —  —  — 
Benefit plans, net 1,337  (332) 1,005  (62) 14  (48)
Net gain from hedging activities 2,184  (546) 1,638  1,215  (304) 911 
Foreign currency translation(1)
4,300  6,954  11,254  (19,308) (1,536) (20,844)
Other comprehensive income (loss) $ 7,821  $ 6,076  $ 13,897  $ (18,155) $ (1,826) $ (19,981)
(1)The income tax benefit or expense included in other comprehensive income is attributed to the portion of foreign currency translation associated with the Company’s cross-currency interest rate swaps, for which the tax effect is based on the applicable U.S. deferred income tax rate. See Note 14 to these condensed consolidated financial statements for information regarding the Company’s cross-currency interest rate swaps.
The following table presents the changes in accumulated other comprehensive income (loss), net of tax, by component for the nine months ended September 30, 2021 and 2020:
Defined benefit
and other
postretirement
plans 		 Net gain (loss)
from hedging
activities		 Foreign
currency
translation 		 Total 
December 31, 2020 $ 5,278  $ (660) $ (19,883) $ (15,265)
Other comprehensive income before reclassifications 877  1,425  11,474  13,776 
Amounts reclassified from accumulated other comprehensive income(1)
128  213  —  341 
Disposal of business 3,743  —  (11,779) (8,036)
September 30, 2021 $ 10,026  $ 978  $ (20,188) $ (9,184)
December 31, 2019 $ 3,568  $ (1,838) $ (17,078) $ (15,348)
Other comprehensive loss before reclassifications —  (28) (18,041) (18,069)
Amounts reclassified from accumulated other comprehensive income(1)
(48) 939  —  891 
September 30, 2020 $ 3,520  $ (927) $ (35,119) $ (32,526)
(1)See the following table for details about these reclassifications. Amounts in parentheses indicate debits.
The following table presents the reclassifications out of accumulated other comprehensive income for the three and nine months ended September 30, 2021 and 2020:
Details about Accumulated Other Comprehensive
Income Components
Amounts Reclassified from Accumulated Other
Comprehensive Income(1)
Affected Line Item where
Income is Presented
Three months ended
September 30,		 Nine months ended
September 30,
2021 2020 2021 2020
Amortization of defined benefit and other postretirement items:
Prior service (cost) credit $ (58) $ 52  $ (174) $ 155 
Other income (expense)(2)
Actuarial gains (losses) 2  (28) 4  (93)
Other income (expense)(2)
(56) 24  (170) 62  Total before tax
15  (4) 42  (14) Tax benefit (expense)
$ (41) $ 20  $ (128) $ 48  Net of tax
Gains and losses on cash flow hedges:
Interest rate caps $ (104) $ 611  $ (283) $ (18) Interest expense
Natural gas swaps —  (467) —  (1,229) Cost of goods sold
(104) 144  (283) (1,247) Total before tax
26  (39) 70  308  Tax benefit
$ (78) $ 105  $ (213) $ (939) Net of tax
Total reclassifications for the period $ (119) $ 125  $ (341) $ (891) Net of tax
(1)Amounts in parentheses indicate debits to profit/loss.
(2)These accumulated other comprehensive income (loss) components are components of net periodic pension and other postretirement cost (see Note 16 to these condensed consolidated financial statements for additional details).
Treasury Stock Repurchases
Stock Repurchase Program
The Company records repurchases of its common stock for treasury at cost. Upon the reissuance of the Company’s common stock from treasury, differences between the proceeds from reissuance and the average cost of the treasury stock are credited or charged to capital in excess of par value to the extent of prior credits related to the reissuance of treasury stock. If no such credits exist, the differences are charged to retained earnings.
On March 12, 2020, the Company’s Board of Directors (the “Board”) approved a plan to purchase up to $50,000 of Ecovyst Inc. common stock under a stock repurchase program approved by the Board. The Company may repurchase shares from time to time for cash in open market transactions or in privately negotiated transactions in accordance with applicable federal securities laws. The Company will determine the timing and the amount of any repurchases based on its evaluation of market conditions, share price and other factors. The stock repurchase program is valid until March 2022.
During the three months ended March 31, 2020, the Company repurchased 211,700 shares on the open market at an average price of $9.73, for a total of $2,059. The Company has not made any additional repurchases under the program through September 30, 2021. As of September 30, 2021, $47,941 was available for additional share repurchases under the program.
Tax Withholdings on Equity Award Vesting
In connection with the vesting of restricted stock awards, restricted stock units and performance stock units, shares of common stock may be delivered to the Company by employees to satisfy withholding tax obligations at the instruction of the employee award holders. These transactions when they occur are accounted for as stock repurchases by the Company, with the shares returned to treasury stock at a cost representing the payment by the Company of the tax obligations on behalf of the employees in lieu of shares for the vesting unit. The fair value of the shares withheld to cover tax payments were $1,470 and $1,992 for the nine months ended September 30, 2021 and 2020, respectively.
Dividends Paid
On August 4, 2021, the Board declared a special cash dividend of $3.20 per share, using after tax cash proceeds from the sale of the Performance Chemicals business. The dividend was paid on August 23, 2021 to the Company’s stockholders of record at the close of business on August 12, 2021. Refer to Note 3 of these condensed consolidated financial statements for additional details.