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10-Q
KOPPERS HOLDINGS INC. filed this Form 10-Q on 08/03/2017
Entire Document
 

 

5. Fair Value Measurements

Carrying amounts and the related estimated fair values of the Company’s financial instruments as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30, 2017

 

 

December 31, 2016

 

 

 

Fair Value

 

 

Carrying

Value

 

 

Fair Value

 

 

Carrying

Value

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents, including restricted cash

 

$

40.0

 

 

$

40.0

 

 

$

20.8

 

 

$

20.8

 

Investments and other assets(a)

 

 

1.1

 

 

 

1.1

 

 

 

1.1

 

 

 

1.1

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt (including current portion)

 

$

722.9

 

 

$

692.9

 

 

$

669.6

 

 

$

662.4

 

(a)

Excludes equity method investments.

Cash and cash equivalents – The carrying amount approximates fair value because of the short maturity of those instruments.

Investments and other assets – Represents the broker-quoted cash surrender value on universal life insurance policies. This asset is classified as Level 2 in the valuation hierarchy and is measured from values received from financial institutions.

Debt – The fair value of the Company’s long-term debt is estimated based on the market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities (Level 2). The fair value of the Company’s revolving credit facility approximates carrying value due to the variable rate nature of this instrument.

 

 

6. Comprehensive Income and Equity (Deficit)

Total comprehensive income for the three and six months ended June 30, 2017 and 2016 is summarized in the table below:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

19.8

 

 

$

11.3

 

 

$

24.4

 

 

$

9.5

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in currency translation adjustment

 

 

4.9

 

 

 

(3.0

)

 

 

10.9

 

 

 

3.4

 

Unrealized (losses) gains on cash flow hedges,

   net of tax (benefit) expense of $(0.3), $0.9, $0.6

   and $2.5

 

 

(0.4

)

 

 

1.3

 

 

 

0.9

 

 

 

3.7

 

Change in unrecognized pension net loss,

   net of tax expense of $0.2, $0.1, $0.4 and $0.3

 

 

0.4

 

 

 

0.3

 

 

 

0.7

 

 

 

0.7

 

Total comprehensive income

 

 

24.7

 

 

 

9.9

 

 

 

36.9

 

 

 

17.3

 

Less: Comprehensive income (loss) attributable to

   noncontrolling interests

 

 

0.2

 

 

 

(1.0

)

 

 

0.4

 

 

 

(1.5

)

Comprehensive income attributable to Koppers

 

$

24.5

 

 

$

10.9

 

 

$

36.5

 

 

$

18.8

 

 

Amounts reclassified from accumulated other comprehensive loss to net income consist of amounts shown for changes in unrecognized pension net loss and unrecognized prior service cost. These components of accumulated other comprehensive income are included in the computation of net periodic pension cost as disclosed in Note 13 – Pensions and Postretirement Benefit Plans. Other amounts reclassified from accumulated other comprehensive income include income related to derivative financial instruments, net of tax, of $1.3 million and $2.6 million for the three and six months ended June 30, 2017, respectively, and losses of $1.7 million and $3.2 million for the three and six months ended June 30, 2016, respectively.

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