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10-Q
KOPPERS HOLDINGS INC. filed this Form 10-Q on 11/09/2017
Entire Document
 

 

Loss on Extinguishment of Debt

In February 2017, all of the outstanding Koppers Inc. senior notes due 2019 were repurchased at a premium to carrying value and accordingly, the Company realized a loss on extinguishment of debt totaling $10.0 million consisting of $7.3 million for bond premium and bond tender expenses and $2.7 million for the write-off of unamortized debt issuance costs.

Also in February 2017, Koppers Inc. repaid its term loan in full and entered into the Revolving Credit Facility. Accordingly, the Company realized a loss of $3.3 million for the write-off of unamortized debt issuance costs.

Construction Loans

The Company’s 75-percent owned subsidiary, Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) entered into two committed loan facility agreements for a combined commitment of RMB 265 million or approximately $44 million. The third-party bank provided facility has a commitment amount of RMB 198.8 million and the other committed facility of RMB 66.2 million is provided by the 25-percent non-controlling shareholder in KJCC. Borrowings under the third-party bank facility are secured by a letter of credit issued by a bank under the Revolving Credit Facility. KJCC will repay the construction loan portion of the third-party commitment in six installments every six months starting in June 2018 with a final repayment on December 21, 2020, the maturity date of the loans.

 

 

15. Asset Retirement Obligations

The Company recognizes asset retirement obligations for the removal and disposal of residues; dismantling of certain tanks required by governmental authorities; cleaning and dismantling costs for owned rail cars; cleaning costs for leased rail cars and barges; and site demolition, when required by governmental authorities or by contract. The following table reflects changes in the carrying values of asset retirement obligations:

 

 

 

September 30,

2017

 

 

December 31,

2016

 

(Dollars in millions)

 

 

 

 

 

 

 

 

Asset retirement obligation at beginning of year

 

$

36.0

 

 

$

46.5

 

Divestiture

 

 

0.0

 

 

 

(8.0

)

Accretion expense

 

 

1.9

 

 

 

7.1

 

Revision in estimated cash flows

 

 

2.0

 

 

 

2.7

 

Cash expenditures

 

 

(8.7

)

 

 

(11.4

)

Currency translation

 

 

0.2

 

 

 

(0.9

)

Balance at end of period

 

$

31.4

 

 

$

36.0

 

 

 

16. Deferred Revenue

The Company defers revenues associated with extended product warranty liabilities based on historical loss experience and sales of extended warranties on certain products. The following table reflects changes in the carrying values of deferred revenue:

 

 

 

September 30,

2017

 

 

December 31,

2016

 

(Dollars in millions)

 

 

 

 

 

 

 

 

Balance at beginning of year

 

$

27.2

 

 

$

30.1

 

Revenue earned

 

 

(0.6

)

 

 

(0.8

)

Currency translation

 

 

1.1

 

 

 

(2.1

)

Balance at end of period

 

$

27.7

 

 

$

27.2

 

 

Deferred revenue classified in other long-term liabilities in the consolidated balance sheet totaled $26.8 million as of September 30, 2017 and $26.2 million as of December 31, 2016 with the remainder classified in accrued liabilities.                                                                                                                              

 

 

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