Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity

v3.22.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Stockholders' Equity
9. Stockholders' Equity:
Accumulated Other Comprehensive Income (Loss)
The following table presents the components of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021 and 2020:
December 31,
2021 2020
Amortization and unrealized gains (losses) on pension and postretirement plans, net of tax of $(3,567) and $(1,649)
 $ 11,072  $ 5,278 
Net changes in fair values of derivatives, net of tax of $(422) and $549
 2,254  (660)
Foreign currency translation adjustments, net of tax of $8,177 and $1,223
 (19,118) (19,883)
Accumulated other comprehensive loss $ (5,792) $ (15,265)

The following table presents the tax effects of each component of other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019:
Years ended
December 31,
2021 2020 2019
Pre-tax amount Tax benefit/
(expense)		 After-tax amount 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 and (losses) $ 5,885  $ (1,461) $ 4,424  $ 2,760  $ (696) $ 2,064  $ 2,970  $ (423) $ 2,547 
Amortization of prior service cost (232) 58  (174) (232) 58  (174) (156) 39  (117)
Settlement gain (loss) 2,059  (515) 1,544  64  (16) 48  —  —  — 
Benefit plans, net 7,712  (1,918) 5,794  2,592  (654) 1,938  2,814  (384) 2,430 
Net (loss) gain from hedging activities 3,885  (971) 2,914  221  (55) 166  (3,553) 888  (2,665)
Foreign currency translation(1)
3,657  6,954  10,611  (11,268) (6,251) (17,519) 20,539  2,350  22,889 
Other comprehensive income (loss) $ 15,254  $ 4,065  $ 19,319  $ (8,455) $ (6,960) $ (15,415) $ 19,800  $ 2,854  $ 22,654 
(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 20 to these consolidated financial statements for information regarding the Company’s cross currency interest rate swaps.

The following table presents the change in accumulated other comprehensive income (loss), net of tax, by component for the years ended December 31, 2021 and 2020:
Defined benefit
and other
postretirement
plans 		 Net gain (loss) from hedging activities Foreign
currency
translation 		 Total 
December 31, 2019 $ 3,568  $ (1,838) $ (17,078) $ (15,348)
Other comprehensive income (loss) before reclassifications 1,850  125  (16,596) (14,621)
Amounts reclassified from accumulated other comprehensive income(1)
88  41  — 129 
Disposal of business (228) 1,012  13,791  14,575 
Net current period other comprehensive loss 1,710  1,178  (2,805) 83 
December 31, 2020 5,278  (660) (19,883) (15,265)
Other comprehensive income (loss) before reclassifications 5,623  2,580  10,611  18,814 
Amounts reclassified from accumulated other comprehensive income(1)
171  334  — 505 
 Disposal of business —  —  (9,846) (9,846)
Net current period other comprehensive income 5,794 2,914  765 9,473
December 31, 2021 $ 11,072  $ 2,254  $ (19,118) $ (5,792)
(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 years ended December 31, 2021 and 2020.
Details about Accumulated Other
Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income(1)
Affected Line Item in the
Statements of Income
Years ended
December 31,
2021 2020
Amortization of defined benefit and other postretirement plans:
Prior service credit (cost) $ (232) $ 119 
Other income (expense)(2)
Actuarial gains (losses) 5  (232)
Other income (expense)(2)
(227) (113) Total before tax
56  25  Tax benefit
$ (171) $ (88) Net of tax
Gains and losses on cash flow hedges:
Interest rate caps $ (444) $ (54) Interest expense
110  13  Tax benefit
$ (334) $ (41) Net of tax
Total reclassifications for the period $ (505) $ (129) 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 22 to these 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 announced plans to purchase up to $50,000 of Ecovyst Inc. common stock under a stock repurchase program approved by the Company’s Board of Directors. 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.
From the announcement of the program through 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. As of December 31, 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 $2,539 for the years ended December 31, 2021 and 2020, respectively.
Dividends Paid
On December 14, 2020, the Company’s Board of Directors declared a special cash dividend of $1.80 per share, using after tax cash proceeds and cash on hand from the sale of the Performance Materials business. The dividend was paid to our stockholders of record at the close of business on December 21, 2020. Refer to Note 4 of these consolidated financial statements for additional details.
On August 4, 2021, the Company’s 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 5 of these consolidated financial statements for additional details.