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What changed in MINERALS TECHNOLOGIES INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of MINERALS TECHNOLOGIES INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+372 added−381 removedSource: 10-K (2024-02-16) vs 10-K (2023-02-17)

Top changes in MINERALS TECHNOLOGIES INC's 2023 10-K

372 paragraphs added · 381 removed · 259 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

79 edited+37 added−63 removed40 unchanged
Biggest changeBleaching Earth minerals clarify edible oils and are used for the production of biodiesel fuel. Advanced Performance Additives, including organoclays, are used in wine clarification, flame retardants, plastic packaging, rubber mold release, paints, coatings and ink manufacturing processes. Agricultural products are used to improve plant harvests, plant health and soil that enhance crop yield.
Biggest changeIn addition, the Company produces several other bentonite and leonardite-based proprietary solutions for consumer and industrial applications, such as: • Natural bentonite feed additives to improve animals’ digestive health through gastrointestinal binding of mycotoxins. • Filtration media for edible oil, biofuels, and beverages where the Company’s unique mineral reserves and differentiated process targets removal of specific contaminants. • Agricultural products to improve plant harvests, plant health and soil that enhance crop yield. • Advanced performance additives, including organoclays, used in flame retardants, plastic packaging, rubber mold release, paints, coatings and ink manufacturing processes.
The pet litter products include sodium bentonite-based scoopable (clumping), traditional and alternative cat litters sold to grocery and drug stores, mass merchandisers, wholesale clubs and pet specialty stores throughout North America, Europe and Asia. The Company’s scoopable products’ clump-forming capability traps urine, thereby reducing waste by allowing for easy removal of only the odor-producing elements from the litter box.
The Company’s cat litter products include sodium bentonite-based scoopable (clumping), traditional and alternative cat litters sold to grocery and drug stores, mass merchandisers, wholesale clubs and pet specialty stores throughout North America, Europe, and Asia. The Company’s scoopable products’ clump-forming capability traps urine, thereby reducing waste by allowing for easy removal of only the odor-producing elements from the litter box.
Drilling products are used in oil and gas well drilling as well as environmental and geotechnical drilling applications, horizontal directional drilling, mineral exploration and foundation construction. Bentonite imparts thickening and suspension properties that facilitate the transport of rock cuttings to the surface during the drilling process.
Drilling Products are used in environmental and geotechnical drilling applications, horizontal directional drilling, mineral exploration and foundation construction, as well as in oil and gas well drilling. Bentonite imparts thickening and suspension properties that facilitate the transport of rock cuttings to the surface during the drilling process.
("Pfizer") agreed to indemnify the Company against certain liabilities being retained by Pfizer and its subsidiaries including, but not limited to, pending lawsuits and claims, and any lawsuits or claims brought at any time in the future alleging damages or injury from the use, handling of or exposure to any product sold by Pfizer's specialty minerals business prior to the closing of the initial public offering.
(“Pfizer”) agreed to indemnify the Company against certain liabilities being retained by Pfizer and its subsidiaries including, but not limited to, pending lawsuits and claims, and any lawsuits or claims brought at any time in the future alleging damages or injury from the use, handling of or exposure to any product sold by Pfizer’s specialty minerals business prior to the closing of the initial public offering.
With respect to its PCC products, the Company competes for sales to the paper industry with other minerals, such as GCC and kaolin, based in large part upon technological know-how, patents and processes that allow the Company to deliver PCC that it believes imparts gloss, brightness, opacity and other properties to paper on an economical basis.
With respect to its PCC products, the Company competes for sales to the paper and packaging industry with other minerals, such as GCC and kaolin, based in large part upon technological know-how, patents and processes that allow the Company to deliver PCC that it believes imparts gloss, brightness, opacity and other properties to paper and packaging on an economical basis.
The Company has reserves of sodium and calcium bentonite at various locations in the U.S., including Wyoming, South Dakota, Montana and Alabama, as well as in Australia, China, Slovakia, and Turkey. Through the Company’s affiliations and joint ventures, the Company also has access to bentonite deposits in India, and Mexico.
The Company has reserves of sodium and calcium bentonite at various locations in the U.S., including Wyoming, South Dakota and Alabama, as well as in Australia, China, Slovakia, and Turkey. Through the Company’s affiliations and joint ventures, the Company also has access to bentonite deposits in India and Mexico.
We accelerate the development of our employees, strengthen our leadership capabilities, and enhance employee performance through engagement. 13 Our culture of training and development motivates employees at all levels of the organization to work safely and efficiently. We employ several methods to engage, train and develop employees, yielding higher levels of performance year after year.
We accelerate the development of our employees, strengthen our leadership capabilities, and enhance employee performance through engagement. Our culture of training and development motivates employees at all levels of the organization to work safely and efficiently. We employ several methods to engage, train and develop employees, yielding higher levels of performance year after year.
The above mentioned programs and succession planning sessions demonstrate the Company’s ongoing commitment towards accelerating development of our future leaders. Environmental, Health and Safety Matters and Government Regulation The Company’s operations are subject to federal, state, local and foreign laws and regulations relating to the environment and health and safety.
The above mentioned programs and succession planning sessions demonstrate the Company’s ongoing commitment towards accelerating development of our future leaders. 11 Environmental, Health and Safety Matters and Government Regulation The Company’s operations are subject to federal, state, local and foreign laws and regulations relating to the environment and health and safety.
The Company's research and development and technical service staff focuses on expanding sales from its existing and potential new satellite PCC plants, as well as, developing new technologies for new applications.
The Company’s research and development and technical service staff focuses on expanding sales from its existing and potential new satellite plants, as well as, developing new technologies for new applications.
Carbon dioxide is readily available in exhaust gas from the host paper mills, or other operations at our merchant facilities. The principal raw materials used in the Company's monolithic refractory products are refractory-grade magnesia and various forms of alumina silicates. Approximately 50% of the Company’s magnesia requirements were purchased from sources in China over the past five years.
Carbon dioxide is readily available in exhaust gas from the host paper mills, or other operations at our merchant facilities. The principal raw materials used in the Company’s monolithic refractory products are refractory-grade magnesia and various forms of alumina silicates. Approximately 54% of the Company’s magnesia requirements were purchased from sources in China over the past five years.
Supplies of bentonite, leonardite, limestone and talc are provided through the Company’s own mining operations and we depend on having adequate access to ore reserves of appropriate quality at such mining operations. 9 The Company uses lime in the production of PCC and is a significant purchaser of lime worldwide.
Supplies of bentonite, leonardite and limestone are provided through the Company’s own mining operations and we depend on having adequate access to ore reserves of appropriate quality at such mining operations. The Company uses lime in the production of PCC and is a significant purchaser of lime worldwide.
With respect to the environmental products product line, the Company competes with geosynthetic clay liner manufacturers worldwide, several suppliers of alternative lining technologies, and providers of soil and environmental remediation solutions and products. In addition, the filtration and well-testing products within the Environmental Products product line compete with other oil and gas services companies.
With respect to the Environmental & Infrastructure product line, the Company competes with geosynthetic clay liner manufacturers worldwide, several suppliers of alternative lining technologies, and providers of soil and environmental remediation solutions and products. In addition, the filtration and well-testing products compete with other oil and gas services companies.
In fiscal 2022, compliance with the regulations applicable to us did not have a material effect on our capital expenditures, earnings, or competitive position, and the cost of compliance with these laws and regulations is not expected to have a material adverse effect on the Company in the future.
In fiscal 2023, compliance with the regulations applicable to us did not have a material effect on our capital expenditures, earnings, or competitive position, and the cost of compliance with these laws and regulations is not expected to have a material adverse effect on the Company in the future.
For the past 14 years, MTI has published an annual Corporate Responsibility and Sustainability Report that describes our efforts in continuous improvement regarding our safety culture, environmental performance, social impact, new product development, and community engagement.
For the past 15 years, MTI has published an annual Corporate Responsibility and Sustainability Report that describes our efforts in continuous improvement regarding our safety culture, environmental performance, social impact, new product development, and community engagement.
They are the cornerstone of our operational excellence and safety-first culture, key to our ability to execute on our growth strategies, and vital to our success. Our core values — people, excellence, honesty, customer focus and accountability — guide our actions. Workforce Demographics As of December 31, 2022, the Company employed 4,070 persons globally, located in over 30 countries.
They are the cornerstone of our operational excellence and safety-first culture, key to our ability to execute on our growth strategies, and vital to our success. Our core values — people, excellence, honesty, customer focus and accountability — guide our actions. Workforce Demographics As of December 31, 2023, the Company employed 4,027 persons globally, located in over 30 countries.
Its reports on Forms 10-K, 10-Q and 8-K, and amendments to those reports, as well as its Proxy Statement and filings under Section 16 of the Securities Exchange Act of 1934 are available free of charge through the Investor Relations page of its website, as soon as reasonably practicable after they are filed with the Securities and Exchange Commission ("SEC").
Its reports on Forms 10-K, 10-Q and 8-K, and amendments to those reports, as well as its Proxy Statement and filings under Section 16 of the Securities Exchange Act of 1934 are available free of charge through the Investor Relations page of its website, as soon as reasonably practicable after they are filed with, or furnished to, the Securities and Exchange Commission (“SEC”).
The Company's international marketing and sales efforts are directed from regional centers located in India, the United Kingdom, Brazil, and China. The Company believes that its worldwide network of sales personnel and manufacturing sites facilitates continued international expansion.
The Company’s international marketing and sales efforts are directed from regional centers located in India, the United Kingdom, Brazil, Germany, Turkey, Japan and China. The Company believes that its worldwide network of sales personnel and manufacturing sites facilitates continued international expansion.
We are committed to the health and safety of our employees, contractors, customers, and members of the communities in which we operate. Our "safety first" culture has been built through dedication, continuous improvement and active engagement.
We are committed to the health and safety of our employees, contractors, customers, and members of the communities in which we operate. Our “safety first” culture has been built through dedication, continuous improvement and active engagement.
The Company has developed alternate sources of magnesia over the past few years that have reduced our reliance on China-sourced magnesia. The amount sourced from China and other locations can vary from year to year depending upon price and availability from each source. The alumina we utilize in our business is readily available from numerous sources.
The Company has developed alternate sources of magnesia over the past few years that have diversified our supply of magnesia. The amount sourced from China and other locations can vary from year to year depending upon price and availability from each source. The alumina we utilize in our business is readily available from numerous sources.
We also conduct annual pay equity analyses, with regard to gender globally, and race and ethnicity in the United States, to help ensure our base pay structures are fair and to identify and address potential issues or disparities. We make adjustments to base pay, where appropriate.
We also conduct annual pay equity analyses, with regard to gender globally, and race and ethnicity in the United States, to help ensure our base pay structures are fair and to identify and address potential issues or disparities.
Many of the products cannot be applied in wet or winter weather conditions and, as such, sales and profits tend to be greater during the period from April through October. Our Processed Minerals product line of our Specialty Minerals segment is subject to similar seasonal patterns.
Many of the products cannot be applied in wet or winter weather conditions and, as such, sales and profits tend to be greater during the period from April through October. Sales in our Specialty Additives product line, within Consumer & Specialties segment, is subject to similar seasonal patterns.
Compensation and Benefits We strive to hire, develop and retain the top talent in all areas of the company. MTI’s total rewards, values and philosophy is to provide competitive total rewards that include pay and benefits consistent with the varied practices in different regions of the world.
We make adjustments to base pay, where appropriate. 10 Compensation and Benefits We strive to hire, develop and retain the top talent in all areas of the company. MTI’s total rewards, values and philosophy is to provide competitive total rewards that include pay and benefits consistent with the varied practices in different regions of the world.
The Company owns, staffs, operates and maintains all of its satellite PCC facilities, and owns or licenses the related technology. Generally, the Company and its paper mill customers enter into long-term evergreen agreements, initially ten years in length, pursuant to which the Company supplies substantially all of the customer's precipitated calcium carbonate filler requirements.
The Company owns, operates and maintains all of its satellite facilities and owns or licenses the related technology. Generally, the Company and its paper mill customers enter into long-term evergreen agreements, initially ten to fifteen years in length, pursuant to which the Company supplies substantially all of the customer’s requirements.
The composition of customers within this segment varies from year to year and is significantly dependent on the type of activities each customer is undertaking within the year, regulations, and overall dynamics of the oil and gas industry.
The composition of customers relating to these services varies from year to year and is significantly dependent on the type of activities each customer is undertaking within the year, regulations, and overall dynamics of the oil and gas industry.
In addition to bentonite and leonardite provided through our mining operations, our Performance Materials segment’s principal raw materials are coal, soda ash, chromite, and woven and unwoven polyester material, all of which are readily available from numerous sources. Mineral Reserves and Mining Process The Company relies on access to bentonite reserves to support its Performance Materials segment.
In addition to bentonite and leonardite provided through our mining operations, our High-Temperature Technologies segment’s principal raw materials are coal, soda ash, chromite, and woven and unwoven polyester material, all of which are readily available from numerous sources. 7 Mineral Reserves and Mining Process The Company relies on access to bentonite reserves.
Over the past several years, we've taken meaningful steps to advance our broad range of sustainability initiatives, including establishing 2025 environmental reduction targets in six focus areas: Scope 1 and Scope 2 CO 2 emissions, airborne pollutants, water used, water discharged, and process waste landfilled .
Over the past several years, we’ve taken meaningful steps to advance our broad range of sustainability initiatives, including establishing 2025 environmental reduction targets in six focus areas: Scope 1 and Scope 2 CO 2 emissions, airborne pollutants, water used, water discharged, and process waste landfilled , on an absolute basis and per ton of production for each of our focus areas.
The Company is the leading manufacturer and supplier of PCC to the paper industry. The Company competes in sales of its limestone and talc based primarily upon quality, price, and geographic location. With respect to the Company's refractory products, competitive conditions vary by geographic region.
The Company is the leading manufacturer and supplier of PCC to the paper industry and specialty PCC in North America. The Company competes in sales of its limestone based primarily upon quality, price, and geographic location. With respect to the Company’s High-Temperature Technologies products, competitive conditions vary by geographic region.
In 2022, our TRIR was 1.25 and our LWIR was 0.23. This safety-first mindset helps us attract and retain top talent from around the world and drives continuous improvement in our manufacturing operations.
In 2023, our TRIR was 0.91 and our LWIR was 0.30. This safety-first mindset helps us attract and retain top talent from around the world and drives continuous improvement in our manufacturing operations.
The Company has ongoing exploration and development activities for all of its mineral interests with the intent to increase its proven and probable reserves. See Item 2, “Properties,” for more information with respect to these facilities and mines.
The Company generally owns and surface mines these reserves and processes its products at nearby processing plants. The Company has ongoing exploration and development activities for all of its mineral interests with the intent to increase its proven and probable reserves. See Item 2, “Properties,” for more information with respect to these facilities and mines.
In the Performance Materials segment, the Company relies on industry-specialized technically oriented salespersons. In Metalcasting, these sales teams provide expertise to educate our customers on the bentonite blend properties and to aid them in producing castings efficiently. Certain other products are distributed through networks of distributors and representatives, who warehouse specific products at strategic locations.
These sales teams provide expertise to educate our customers on the bentonite blend properties and to aid them in producing castings efficiently. Certain other products are distributed through networks of distributors and representatives, who warehouse specific products at strategic locations.
Item 1. Business Minerals Technologies Inc. (together with its subsidiaries, the "Company", “we”, “us” or “our”) is a resource- and technology-based company that develops, produces, and markets on a worldwide basis a broad range of specialty mineral, mineral-based and synthetic mineral products and supporting systems and services.
Item 1. Business Minerals Technologies Inc. (together with its subsidiaries, the “Company”, “we”, “MTI”, “us” or “our”) is a leading, technology-driven specialty minerals company that develops, produces, and markets a broad range of mineral and mineral-based products, related systems and services.
These technologies include, among others, acid-tolerant ("AT ® ") PCC, which allows PCC to be introduced to the wood-containing segment of the printing and writing paper market, OPACARB ® PCC, a family of products for paper coating, our FulFill ® family of products, a system of high-filler technologies that offers papermakers a variety of efficient, flexible solutions which decrease dependency on natural fibers, and NewYield ® and ENVIROFIL ® , innovative technologies that convert a paper and pulp mill waste stream into functional pigments for filling paper.
These technologies include, among others, OPACARB ® PCC, a family of products for paper coating, our FulFill ® family of products, a system of high-filler technologies that offers papermakers a variety of efficient, flexible solutions which decrease dependency on natural fibers, and NewYield ® and ENVIROFIL ® , innovative technologies that convert paper and pulp mill waste streams into functional pigments for filling paper.
Of these, 1,938 (48%) were located in North America, 993 (24%) were located in Asia, 953 (23%) were located in Europe, and 186 (5%) were located in Latin America. 12 Diversity, Equity and Inclusion As a global company, we are committed to an organizational culture that unconditionally accepts all colleagues.
Of these, 1,928 (48%) were located in North America, 973 (24%) were located in Asia, 946 (24%) were located in Europe, and 180 (4%) were located in Latin America. Diversity, Equity and Inclusion As a global company, we are committed to an organizational culture that unconditionally accepts all colleagues.
In addition, the oil and gas production facilities are subject to natural disasters, such as hurricanes, which could lead to lower sales in the June to November months. As a result, we consider the business of the Performance Materials segment to be seasonal. Research and Development Many of the Company's product lines are technologically advanced.
In addition, the oil and gas production facilities are subject to natural disasters, such as hurricanes, which could lead to lower sales in the June to November months within this product line. 8 Research and Development Many of the Company’s product lines are technologically advanced.
The Company estimates that paper packaging markets are approximately three times the size of the printing and writing paper markets. Growth in the paper packaging segment is driven by growth trends in consumption, e-commerce and demand for sustainable packaging solutions. The Company offers mineral solutions for filler and coating applications in both the containerboard and cartonboard packaging segments.
Growth in the paper packaging segment is driven by growth trends in consumption, e-commerce and demand for sustainable packaging solutions. The Company offers mineral solutions for filler and coating applications in both the containerboard and cartonboard packaging.
In the Specialty Minerals segment, the Company's sales team and technical services staff assist paper producers in ongoing evaluations of the use of PCC for paper coating and filling applications as well as PCC, GCC and talc use in the automotive, construction and household goods markets.
In addition, the Company’s sales team and technical services staff assist paper producers in ongoing evaluations of the use of PCC for paper coating and filling applications as well as PCC and GCC use in the packaging, automotive, construction and household goods markets. In the Engineered Solutions segment, the Company relies on industry-specialized technically oriented salespersons.
Raw Materials The Company depends in part on having an adequate supply of raw materials for its manufacturing operations, particularly lime and carbon dioxide for the PCC product line, and magnesia and alumina for its Refractory operations.
Raw Materials The Company depends in part on having an adequate supply of raw materials for its manufacturing operations, particularly lime and carbon dioxide for the Specialty Additives product line, and magnesia and alumina for the High-Temperature Technologies’ operations. We also depend on having an adequate supply of bentonite, leonardite and limestone.
Access to processing facilities from the mining areas is generally by private road, public highways, or railroads. For most of our leased properties and mining claims, there are multiple means of access.
Access to processing facilities from the mining areas is generally by private road, public highways, or railroads. For most of our leased properties and mining claims, there are multiple means of access. The Specialty Additives product line is supported by the Company’s limestone reserves located in the western and eastern parts of the United States.
In the Refractories segment, the Company's technical service personnel advise on the use of refractory materials, and, in many cases pursuant to service agreements, apply the refractory materials to the customers' furnaces and other vessels. Continued use of skilled technical service teams is an important component of the Company's business strategy.
In addition, the Company’s technical service personnel advise on the use of refractory materials, and, in many cases pursuant to service agreements, apply the refractory materials to the customers’ furnaces and other vessels.
The ADDITROL ® formulation, a custom blend, meets the need of both ferrous and non-ferrous applications. The Volclay ® application is used in green sand molding applications ranging from the production of iron and steel castings to the production of non-ferrous castings.
The Volclay®, Maxi-Bond®, and Panther Creek® application is used in green sand molding applications ranging from the production of iron and steel castings to the production of non-ferrous castings.
Investors may access these reports through the Company's website by navigating to "Investor Relations" and then to "SEC Filings." 14
Investors may access these reports through the Company’s website by navigating to “Investors” , then to “Financials”, and then to “SEC Filings.” 12
The ORGANOCLAY ® technology offers highly effective solutions in effective in removing oils, greases and other high molecular weight, low solubility organic compounds from aqueous streams. The Company's FLOURO-SORB ® absorbent is a proprietary, NSF-certified product designed to globally support remediation efforts surrounding per- and polyflouroalkyl substances (PFAS) and Perflourooctane sulfanate (PFOS).
The Crudesorb®, CrudeSep®, Hi-Flow®, MOST™, and ORGANOCLAY® technologies offer highly effective solutions for removing oils, greases and other low solubility organic compounds, solids and metals from aqueous streams. The Company’s FLUORO-SORB® adsorbent is a proprietary, patented, NSF-certified product designed to globally support remediation efforts surrounding per- and polyflouroalkyl substances (PFAS) and Perflourooctane sulfonate (PFOS).
The Company’s internal research team has dedicated years of experience into analyzing properties of minerals and synthetic materials while developing processes and applications to enhance their performance. Our expertise in inorganic chemistry, crystallography and structural analysis, fine particle technology and other aspects of materials science apply to and support all of our product lines.
The Company’s internal research team has dedicated years of experience into analyzing properties of minerals and synthetic materials while developing processes and applications to enhance their performance. Our expertise in our core technologies of crystal engineering, engineered blends, functional additives and particle surface modification apply to and support our product lines.
In the steel alloy casting market, the Company sells chromite products with a particle size distribution specific to customers’ needs. One of chromite’s qualities is its ability to conduct heat.
In the ferrous casting market, the Company specializes in blending bentonite of various grades by themselves or with mineral binders containing sodium bentonite, calcium bentonite, seacoal and other ingredients. In the steel alloy casting market, the Company sells chromite products with a particle size distribution specific to customers’ needs. One of chromite’s qualities is its ability to conduct heat.
The principal products of this segment are marketed under various registered trade names, including VOLCLAY ® , PANTHER CREEK ® , PREMIUM GEL ® , ADDITROL ® , PREMIUM CHOICE ® , ENERSOL ® , RAFINOL ® , , FLUORO-SORB ® , VitaLife ® and Hevi-Sand ® .
The principal products of this product line are marketed under various registered trade names, including PREMIUM CHOICE ® , VitaLife ® , Sivocat ® , RAFINOL ® and ENERSOL ® .
The building materials product line competes in a highly fragmented market comprised of a wide variety of alternative technologies. A number of integrated bentonite companies compete with our drilling products.
In building materials applications, the Company competes in a highly fragmented market comprised of a wide variety of alternative technologies. A number of integrated bentonite companies compete with the Company’s drilling products. Seasonality Some of our products in the Engineered Solutions segment, within the Environmental & Infrastructure product line are impacted by weather and soil conditions.
In addition to these membrane materials, we also provide a variety of sealants and other accessories required to create a functional waterproofing system. The end-users of these products are generally building sub-contractors who are responsible for installing the products.
In addition to these membrane products, we also provide a variety of sealants and other accessories required to create a functional waterproofing system. The end-users of these products are specialty subcontractors trained by the company in the proper installation of all of our products.
See Item 1A, Risk Factors, for information regarding the possible effects that compliance with new laws and regulations, including those relating to climate change, may have on our businesses and operating results. Under the terms of certain agreements entered into in connection with the Company's initial public offering in 1992, Pfizer Inc.
We are meeting or exceeding our targets in four of six areas. Laws and regulations are subject to change. See Item 1A, Risk Factors, for information regarding the possible effects that compliance with new laws and regulations, including those relating to climate change, may have on our businesses and operating results.
For the years ended December 31, 2022, 2021 and 2020, the Company spent approximately $20.4 million, $19.5 million and $19.9 million, respectively, on research and development. The Company's research and development spending for 2022, 2021 and 2020 was approximately 1.0%, 1.0% and 1.2% of net sales, respectively.
For the years ended December 31, 2023, 2022 and 2021, the Company spent approximately $21.2 million, $20.4 million and $19.5 million, respectively, on research and development. The Company’s research and development spending for 2023, 2022 and 2021 was approximately 1.0%, for each period, respectively. The Company maintains its primary research facilities in Bethlehem and Easton, Pennsylvania and Hoffman Estates, Illinois.
In addition, the sales and distribution of environmental products and building materials are primarily performed through the Company’s own personnel and facilities. Our staff includes sales professionals and technical support engineers who analyze the suitability of our products in relation to the customer’s specific application and the conditions that products will endure or the environment in which they will operate.
Our staff includes sales professionals and technical support engineers who analyze the suitability of our products in relation to the customer’s specific application and the conditions that products will endure or the environment in which they will operate. The continued use of skilled technical service teams is an important component of the Company’s business strategy.
The Company helps customers protect ground water and soil through the sale of geosynthetic clay liner products containing bentonite. These products are marketed under the RESISTEX ® and BENTOMAT ® trade names principally for lining and capping landfills, mine waste disposal sites and industrial waste storage sites, such as bauxite residue and coal ash waste.
The Company’s geosynthetic clay lining systems are marketed under the RESISTEX® and BENTOMAT® trade names principally for lining and capping landfills, mine waste disposal sites, industrial waste storage sites, such as bauxite residue and coal ash waste. The Company also provides associated geosynthetic materials for these applications, including geotextiles and drainage geocomposites.
In addition, the Company has access to some of the world's most advanced papermaking and paper coating pilot facilities. Patents and Trademarks The Company owns or has the right to use approximately 328 patents and approximately 1,881 trademarks related to its business. Our patents expire between 2023 and 2040. Our trademarks continue indefinitely.
Patents and Trademarks The Company owns or has the right to use approximately 295 patents and approximately 1,874 trademarks related to its business. Our patents expire between 2024 and 2040. Our trademarks continue indefinitely.
In the last few years, bulk cargo shipping rates have been very volatile, and, to a lesser extent, the availability of bulk cargo containers has been sporadic.
In the last few years, bulk cargo shipping rates have been very volatile, and, to a lesser extent, the availability of bulk cargo containers has been sporadic. Competition The Company is continually engaged in efforts to develop new products and technologies and refine existing products and technologies in order to remain competitive and to position itself as a market leader.
The Company will also continue to seek out promising compounds and innovative technologies, developed mainly by our internal research team, to incorporate into our product lines.
The Company’s business strategy for growth in sales and profitability depends, to a substantial extent, on the continued success of its research and development activities. The Company will continue to seek out promising compounds and innovative technologies, developed mainly by our internal research team, to incorporate into our product lines.
The Company markets the product for use in making very large, high integrity, steel alloy castings where the chromite is better suited to withstand the high heat and pressure associated with the casting process. The Company is the exclusive distributor of certain specialty sand chromite products supplied by the Glencore-Merafe joint venture in select territories, including the Americas.
The Company markets the product for use in making very large, high integrity, steel alloy castings where the chromite is better suited to withstand the high heat and pressure associated with the casting process. The Company also offers a broad range of monolithic and pre-cast refractory products and related systems and services.
The Company's PCC is also used by the food and pharmaceutical industries as a source of calcium in tablets and food applications, as a buffering agent in tablets, and as a mild abrasive in toothpaste. The Company produces PCC for specialty applications from production sites at Adams, Massachusetts, Ste. Genevieve, Missouri, and Lifford, United Kingdom.
The Company’s PCC is also used by the food and pharmaceutical industries as a source of calcium in tablets and food applications, as a buffering agent in tablets, and as a mild abrasive in toothpaste. 4 In addition, the Company mines and processes GCC products at its reserves in the eastern and western parts of the United States.
ENVIROFIL ® Waste Stream Process Technology allows cost-effective recovery of mineral pigments from problematic de-inking waste by converting these raw materials into a functional pigment for filling paper while eliminating the cost of environmental disposal and remediation.
The FulFill® brand High Filler Technology is a portfolio of high-filler technologies that offers papermakers a variety of efficient, flexible solutions that decrease dependency on fiber and optimize cost and quality; NewYield® Waste Stream Process Technology cost-effectively converts a pulp mill waste stream into a functional pigment for paper filling, while eliminating the cost and environmental impact of disposal and remediation of certain waste streams to papermakers; ENVIROFIL® Waste Stream Process Technology allows cost-effective recovery of mineral pigments from de-inking waste materials by converting these materials into a functional pigment for filling paper while eliminating the cost and environmental impact of disposal and remediation.
There are numerous major producers of competing products and various regional suppliers in the areas the Company serves. The Company is the world leader in bentonite, including number one positions in metalcasting and pet litter.
The company is a world leader in bentonite and PCC. The Company competes on the basis of product quality, service, technical support, price, product availability and logistics. There are numerous major producers of competing products and various regional suppliers in the areas the Company serves.
The Company manufactures personal care products consisting of polymer delivery systems and purified grades of bentonite ingredients for sale to manufacturers of skin care products in the areas of anti-aging, anti-acne and body care. The polymers are used to deliver high-value active ingredients and the bentonite-based materials act as thickening, suspension and dispersion agent emollients for topical skin care formulations.
The polymers are used to deliver high-value active ingredients and the bentonite-based materials act as thickening, suspension, and dispersion agent emollients for topical skin care formulations. The Company has been a market leader in retinol-based delivery systems and supplies liquid retinoid products. Products range from ingredient sales to fully formulated finished goods.
Our high-quality limestone, dolomitic limestone, and talc products are defined primarily by the chemistry and color characteristics of the ore bodies. Ore samples are analyzed by x-ray fluorescence (XRF) and other techniques to determine purity and more generally by Hunter brightness measurement to determine dry brightness and the Hunter yellowness (b) value.
Ore samples are analyzed by x-ray fluorescence (XRF) and other techniques to determine purity and more generally by Hunter brightness measurement to determine dry brightness and the Hunter yellowness (b) value. We serve multiple markets from each of our operations, each of which has different requirements relating to a combination of chemical and physical properties.
The Company's proprietary application equipment is used to apply refractory materials to the walls of steel-making furnaces and other high temperature vessels to maintain and extend their useful life. Net sales of refractory products, including those for non-ferrous applications, were $273.4 million, $237.1 million and $212.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
The Company’s proprietary application equipment is used to apply refractory materials to the walls of steel-making furnaces and other high temperature vessels to maintain and extend their useful life. MINSCAN ® allows for remote-controlled application of the Company’s refractory products in steel-making furnaces, as well as in steel ladles.
The Company also specializes in treating soil, groundwater, surface water and drinking water contaminated with Per-and polyfluoroalkyl substances (PFAS) and Perfluorooctane sulfonate (PFOS) under the FLUORO-SORB ® trade name. Additionally, the Environmental Products segment provides offshore filtration and well testing services to improve the production, cost, compliance, and environmental impact of activities performed globally in the oil and gas industry.
Additionally, within this product line, the Company provides offshore filtration and well testing services to improve the production, cost, compliance, and environmental impact of activities performed globally in the oil and gas industry.
These products help our customers in the foundry and casting industry to improve productivity by reducing scrap from metalcasting defects and poor surface quality. The ADDITROL ® blends also improve the efficiency and recycling of sand blends in mold sand systems by lowering clay consumption and improve air quality by reducing volatile organic compound emissions.
The ADDITROL ® blends also improve the efficiency and recycling of sand blends in mold sand systems by lowering clay consumption and improve air quality by reducing volatile organic compound emissions. Our mine to mold operational capability has resulted in providing a consistent high-quality product, technical support and reliable on-time delivery service valued by our customers.
The Company is generally permitted to sell to third-parties PCC produced at a satellite plant in excess of the host paper mill's requirement. The Company also sells a range of PCC products to paper manufacturers from production sites not associated with paper mills.
The Company is generally permitted to sell to third-parties products produced at a satellite plant in excess of the host paper mill’s requirements. The Company estimates that the paper packaging market is approximately three times the size of the printing and writing paper market.
The Company maintains its primary research facilities in Bethlehem and Easton, Pennsylvania; Houston, Texas; and Hoffman Estates, Illinois. It also has research and development facilities in China, England, Germany, Ireland, Japan and Turkey. Approximately 217 employees worldwide are engaged in research and development.
It also has research and development facilities in China, England, Germany, Ireland, Japan Turkey and additional sites in the United States. Approximately 217 employees worldwide are engaged in research and development. In addition, the Company has access to some of the world’s most advanced papermaking and paper coating pilot facilities.
For information with respect to the locations of the Company's PCC plants as of December 31, 2022, see Item 2, "Properties," below. The Company currently manufactures several customized PCC product forms using proprietary processes. Each product form is designed to provide optimum balance of paper properties including brightness, opacity, bulk, strength and improved printability.
Each product is designed to provide optimum balance of paper properties including brightness, opacity, bulk, strength, and improved printability. The majority of the Company’s sales of PCC are to papermakers from “satellite” PCC plants.
The Company’s internal transportation group provides logistics services and is a key component of our capability in supplying customers on a national basis. In Europe, these products are produced and sold by the Company's subsidiary, Sivomatic Holding, B.V. ("Sivomatic").
The Company is a provider of private-label cat litter to retail partners, as well as a provider of bulk cat litter to national brands and other private label packaging companies. The Company’s internal transportation group provides logistics services and is a key component of our capability in supplying customers on a national basis.
Our products include VOLTEX ® , a waterproofing composite comprised of two polypropylene geotextiles filled with sodium bentonite; ULTRASEAL ® , an advanced membrane using a unique active polymer core; and COREFLEX ® , featuring heat-welded seams for protection of critical infrastructure.
Similarly, ULTRASEAL®, an advanced membrane product built around unique active polymer core; and COREFLEX®, our award winning active polymer core and heat welded PVC membrane for protection of critical infrastructure.
The Company’s household, personal care & specialty products product line net sales were $560.9 million, $460.5 million and $380.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. 4 Metalcasting – Products and Markets The metalcasting product line produces custom-blended mineral and non-mineral products to strengthen sand molds for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings and rail car components.
This product line produces custom-blended mineral and non-mineral products to strengthen sand molds for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings and rail car components. These products help our customers in the foundry and casting industry to improve productivity by reducing scrap from metalcasting defects and poor surface quality.
The Company sells gunnable monolithic refractory products and application systems to users of basic oxygen furnaces and electric arc furnaces for application on furnace walls to prolong the life of furnace linings. 8 Other Iron and Steel.
The Company sells the following refractory products: • Gunnable monolithic refractory products and application systems to users of basic oxygen furnaces and electric arc furnaces for application on furnace walls to prolong the life of furnace linings. • Monolithic refractory materials and pre-cast refractory shapes for iron and steel ladles, vacuum degassers, continuous casting tundishes, blast furnaces and reheating furnaces. • Refractory shapes and linings to the glass, cement, aluminum, petrochemicals, power generation and other non-steel industries. 5 Refractory product sales are often supported by Company-supplied proprietary application equipment, laser measurement systems and on-site technical service support.
The following table sets forth the percentage of our revenues generated from each segment for each of our last three fiscal years: 2022 2021 2020 Percentage of Net Sales Performance Materials 53 % 53 % 52 % Specialty Minerals 31 % 31 % 32 % Refractories 16 % 16 % 16 % Total 100 % 100 % 100 % The Company maintains a research and development focus.
The following table sets forth the percentage of our revenues generated from each segment for each of our last three fiscal years: 2023 2022 2021 Percentage of Net Sales Consumer & Specialties 54 % 53 % 52 % Engineered Solutions 46 % 47 % 48 % Total 100 % 100 % 100 % See Note 21 to the Consolidated Financial Statements for additional details on our two business segments.
We currently have 1 GCC satellite plant under construction that will begin production in 2023. Specialty PCC Products and Markets The Company also produces and sells a full range of dry PCC products on a merchant basis for non-paper applications.
The Company also produces and sells a full range of specialized PCC products on a merchant basis for non-paper applications, including surface-treated and untreated grades of PCC to the polymer industry for use in automotive and construction applications, and to the adhesives and printing inks industries.
The Company specializes within the remediation market providing technologies to treat a variety of hazardous compounds in soil, groundwater, leachate and sediment. These products are marketed under the ORGANOCLAY ® trade name.
The Company is also well known in the environmental remediation industry providing technologies that address a variety of complex and aggressive contaminants in soil, groundwater, and marine sediment. These products are marketed under the ORGANOCLAY® trade name. The reactive capping technologies and solutions containing ORGANOCLAY® are used to effectively contain residual contamination and to reduce costs associated with ex-situ remedies.
The Company sells refractory shapes and linings to the glass, cement, aluminum, petrochemicals, power generation and other non-steel industries. The Company also produces a specialized line of carbon composites and pyrolitic graphite sold under the PYROID ® trademark, primarily to the aerospace and electronics industries.
The Company also produces a specialized line of carbon composites and pyrolitic graphite sold under the PYROID ® trademark, primarily to the aerospace and electronics industries. The Company’s High-Temperature Technologies net sales were $720.9 million, $702.5 million and $642.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Metallurgical Products and Markets The Company produces a number of other technologically advanced products for the steel industry, including calcium metal, metallurgical wire products and a number of metal treatment specialty products. Net sales of metallurgical products were $76.0 million, $66.3 million and $45.8 million for the years ended December 31, 2022, 2021 and 2020, respectively.
The Company believes that these services, together with its refractory product offerings, provide it with a strategic marketing advantage. The Company also produces a number of other technologically advanced products for the steel industry, including calcium metal, metallurgical wire products and a number of metal treatment specialty products.
The Hevi-Sand ® specialty chromite blend prevents metal penetration and can be used with most foundry binders in molds and cores. In addition, the Company’s RESISTEX TM and CONTINUUM ® formulation enables withstanding aggressive leachates.
The Hevi-Sand® specialty chromite sand prevents metal penetration and can be used with most foundry binders in molds and cores. 9 • In the Environmental & Infrastructure product line, applying our particle surface modification core technologies, we research and develop products, including our Bentomat® and RESISTEX TM formulations, which enable our liner technologies to withstand the full continuum of leachate chemistries, including increasingly aggressive leachates from Mining and Coal Combustion Byproduct applications.
The Company's Paper PCC product line net sales were $381.7 million, $349.7 million and $308.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. Approximately 18% of the Company's sales consist of PCC sold to papermakers from "satellite" PCC plants.
The Company’s Household & Personal Care net sales were $517.6 million, $476.2 million and $383.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Competition is based upon the performance characteristics of the product (including strength, consistency and ease of application), price, and the availability of technical support. Seasonality Some of our products in the Performance Materials segment within the environmental and building materials product lines are impacted by weather and soil conditions.
Competition is based upon the performance characteristics of the product (including strength, consistency, thermal durability and ease of application), price, and the availability of technical support. The company is the world’s largest producer and supplier of Green Sand Bonds, as well as the leader in monolithic refractories and solid core calcium wire in North America.
In addition, the segment provides products for non-residential construction, environmental and infrastructure projects worldwide.
Environmental & Infrastructure Products and Markets The Environmental & Infrastructure product line provides environmental, construction and remediation solutions.
Removed
As of December 31, 2022, the Company had three reportable segments: Performance Materials, Specialty Minerals and Refractories. ● The Performance Materials segment is a leading global supplier of a wide range of bentonite-based and synthetic materials for consumer-oriented and industrial markets and for non-residential construction, environmental remediation, and infrastructure projects.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIf our systems for protecting against cybersecurity risks prove not to be sufficient, we could be adversely affected by, among other things: loss of or damage to intellectual property, proprietary or confidential information, or customer, supplier, or employee data; interruption of our business operations; and increased costs required to prevent, respond to, or mitigate cybersecurity attacks, which could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.
Biggest changeIf we do not allocate and effectively manage the resources necessary to continue building and maintaining our information technology infrastructure, or if we fail to timely identify or appropriately respond to cyberattacks or other cyber incidents, our business has been and can continue to be adversely affected by, among other things: interruption of our business operations; loss of or damage to intellectual property, proprietary or confidential information, or customer, supplier, or employee data; and increased costs required to prevent, respond to, or mitigate cybersecurity attacks.
In the last few years, bulk cargo shipping rates have been very volatile, and, to a lesser extent, the availability of bulk cargo containers have been suspect. If we cannot secure our container requirements or offset additional shipping costs with price increases to customers, our profitability could be impacted. We are also subject to other shipping risks.
In the last few years, bulk cargo shipping rates have been very volatile, and, to a lesser extent, the availability of bulk cargo containers has been suspect. If we cannot secure our container requirements or offset additional shipping costs with price increases to customers, our profitability could be impacted. We are also subject to other shipping risks.
The contracts pursuant to which we construct and operate our satellite PCC plants generally adjust pricing to reflect the pass-through of increases in costs resulting from inflation, including energy. However, there is a time lag before such price adjustments can be implemented.
The contracts pursuant to which we construct and operate our satellite plants generally adjust pricing to reflect the pass-through of increases in costs resulting from inflation, including energy. However, there is a time lag before such price adjustments can be implemented.
We cannot predict if or when currently proposed or additional laws and regulations regarding climate change or other environmental or health and safety concerns will be enacted or adopted. The Company is also subject to income tax laws and regulations in the United States and various foreign jurisdictions.
We cannot predict if or when currently proposed or additional laws and regulations regarding climate change or other environmental or health and safety concerns will be enacted or adopted. 17 The Company is also subject to income tax laws and regulations in the United States and various foreign jurisdictions.
At any given time, we may be unable to obtain an adequate supply of these critical raw materials on a timely basis, on price and other terms, or at all. While most such raw materials are readily available, the Company has purchased approximately 50% of its magnesia requirements from sources in China over the past five years.
At any given time, we may be unable to obtain an adequate supply of these critical raw materials on a timely basis, on price and other terms, or at all. While most such raw materials are readily available, the Company has purchased approximately 54% of its magnesia requirements from sources in China over the past five years.
As the Company expands its operations overseas, it faces increased risks of doing business abroad, including inflation, fluctuation in interest rates, changes in applicable laws and regulatory requirements, export and import restrictions, tariffs, nationalization, expropriation, limits on repatriation of funds, civil unrest, terrorism, war, unstable governments and legal systems, and other factors.
As the Company expands its operations overseas, it faces increased risks of doing business abroad, including inflation, fluctuation in interest rates, changes in applicable laws and regulatory requirements, export and import restrictions, tariffs, nationalization, expropriation, limits on repatriation of funds, civil unrest, unstable governments and legal systems, and other factors.
A continued or renewed economic downturn in one or more of the industries or geographic regions that the Company serves, or in the worldwide economy, could cause actual results of operations to differ materially from historical and expected results. 15 The Company operates in very competitive industries, which could adversely affect our profitability. The Company has many competitors.
A continued or renewed economic downturn in one or more of the industries or geographic regions that the Company serves, or in the worldwide economy, could cause actual results of operations to differ materially from historical and expected results. 13 The Company operates in very competitive industries, which could adversely affect our profitability. The Company has many competitors.
Further, the requirement to make significant interest payments may reduce the Company’s flexibility to respond to changing business and economic conditions or fund capital expenditure or working capital needs and may increase the Company’s vulnerability to adverse economic conditions. 16 The agreements and instruments governing our debt contain various covenants that could significantly impact our ability to operate our business.
Further, the requirement to make significant interest payments may reduce the Company’s flexibility to respond to changing business and economic conditions or fund capital expenditure or working capital needs and may increase the Company’s vulnerability to adverse economic conditions. 14 The agreements and instruments governing our debt contain various covenants that could significantly impact our ability to operate our business.
In addition, development by the Company's competitors of new products or technologies that are more effective or less expensive than those the Company offers could have a material adverse effect on the Company's financial condition or results of operations. 17 The Company’s operations could be impacted by the increased risks of doing business abroad.
In addition, development by the Company’s competitors of new products or technologies that are more effective or less expensive than those the Company offers could have a material adverse effect on the Company’s financial condition or results of operations. 15 The Company’s operations could be impacted by the increased risks of doing business abroad.
However, failure of a number of the Company's customers to renew or extend existing agreements on terms as favorable to the Company as those currently in effect, or at all, could have a substantial adverse effect on the Company's results of operations, and could also result in impairment of the assets associated with the PCC plant.
However, failure of a number of the Company’s customers to renew or extend existing agreements on terms as favorable to the Company as those currently in effect, or at all, could have a substantial adverse effect on the Company’s results of operations, and could also result in impairment of the assets associated with the satellite plant.
In addition, many of the Company's product lines lower its customers' costs of production or increase their productivity, which should encourage them to use its products. However, there can be no assurance that these efforts will mitigate the risks of our dependence on these industries.
In addition, many of our product lines lower our customers’ costs of production or increase their productivity, which should encourage them to use our products. However, there can be no assurance that these efforts will mitigate the risks of our dependence on these industries.
More generally, any failure to appropriately manage safety, human health, product liability and environmental risks associated with the Company’s products and production processes could adversely impact the Company’s employees and other stakeholders, the Company’s reputation, and its results of operations, cash flows and financial condition.
Any failure to appropriately manage safety, human health, product liability and environmental risks associated with the Company’s products and production processes could adversely impact the Company’s employees and other stakeholders, the Company’s reputation, and its results of operations, cash flows and financial condition.
The Company does business in many areas internationally. Approximately 47% of our sales in 2022 were derived from outside the United States and we have significant production facilities which are located outside of the United States.
The Company does business in many areas internationally. Approximately 47% of our sales in 2023 were derived from outside the United States and we have significant production facilities which are located outside of the United States.
Global economic markets remain uncertain, and there can be no assurance that market conditions will improve in the near future. Future weakness in the global economy could materially and adversely affect our business and operating results. Our customers’ businesses are cyclical or have changing regional demands.
Global economic markets remain uncertain, and there can be no assurance that market conditions will improve in the near future. Future weakness in the global economy could materially and adversely affect our business and operating results. A number of our customers’ businesses are cyclical or have changing regional demands.
The Company’s sales of PCC could be adversely affected by our failure to renew or extend long term sales contracts for our satellite operations. The Company's sales of PCC to paper customers are typically pursuant to long-term evergreen agreements, initially ten years in length, with paper mills where the Company operates satellite PCC plants.
The Company’s sales could be adversely affected by our failure to renew or extend long-term sales contracts for our satellite operations. The Company’s sales of calcium carbonate to paper customers are typically pursuant to long-term evergreen agreements, initially ten years in length, with paper mills where the Company operates satellite plants.
The Company depends in part on having an adequate supply of raw materials for its manufacturing operations, particularly lime and carbon dioxide for the PCC product line, and magnesia and alumina for its Refractory operations. Purchase prices and availability of these critical raw materials are subject to volatility.
The Company depends in part on having an adequate supply of raw materials for its manufacturing operations, particularly lime and carbon dioxide for the production of PCC, and magnesia and alumina for its refractory operations. Purchase prices and availability of these critical raw materials are subject to volatility.
Such closures would reduce the Company's sales of PCC, except to the extent that they resulted in shifting paper production and associated purchases of PCC to another location served by the Company. Similarly, consolidations have occurred in the foundry and steel industries.
Such closures would reduce the Company’s sales, except to the extent that they resulted in shifting paper production and associated purchases of calcium carbonate to another location served by the Company. Similarly, consolidations have occurred in the foundry and steel industries.
As a result of the competitive environment in the markets in which we operate, we currently face and will continue to face pressure on the sales prices of our products from competitors, which could reduce profit margins. The Company’s sales could be adversely affected by consolidation in customer industries, principally paper, foundry and steel.
As a result of the competitive environment in the markets in which we operate, we currently face and will continue to face pressure on the sales prices of our products from competitors, which could reduce profit margins. The Company’s sales could be adversely affected by consolidation in customer industries.
Our manufacturing processes, particularly the manufacturing process for PCC, use a significant amount of energy and, should energy prices increase as a result of such legislation or regulation, we may not be able to pass these increased costs on to purchasers of our products.
Our manufacturing processes for our products use a significant amount of energy and, should energy prices increase as a result of such legislation or regulation, we may not be able to pass these increased costs on to purchasers of our products.
Several consolidations in the paper industry have taken place in recent years and such consolidation could continue in the future. These consolidations could result in partial or total closure of some paper mills where the Company operates PCC satellites.
Several consolidations in the paper industry have taken place in recent years and such consolidation could continue in the future. These consolidations could result in partial or total closure of some paper mills where the Company operates satellite plants.
The Company has taken steps to reduce its exposure to variations in its customers' businesses, including by diversifying its portfolio of products and services; through geographic expansion, and by structuring most of its long-term satellite PCC contracts to provide a degree of protection against declines in the quantity of product purchased, since the price per ton of PCC generally rises as the number of tons purchased declines.
The Company has taken steps to reduce its exposure to variations in its customers’ businesses, including by diversifying its portfolio of products and services through geographic expansion, growth in less cyclical consumer oriented markets, and by structuring most of its long-term satellite contracts to provide a degree of protection against declines in the quantity of product purchased, since the price per ton of our products generally rises as the number of tons purchased declines.
Production facilities are subject to hazards associated with the manufacturing, handling, storage, and transportation of chemical materials and products, including pipeline leaks and ruptures, explosions, fires, inclement weather and natural disasters, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, and environmental risks.
The Company is dependent on the continued operation of its production facilities. Production facilities are subject to hazards associated with the manufacturing, handling, storage, and transportation of chemical materials and products, including pipeline leaks and ruptures, explosions, fires, inclement weather and natural disasters, mechanical failure, unscheduled downtime, labor difficulties, transportation interruptions, and environmental risks.
Our operations have been and will continue to be subject to cyber-attacks that could have a material adverse impact on our business, consolidated results of operations, and consolidated financial condition. Our operations are becoming increasingly dependent on digital technologies and services.
Our operations have been and will continue to be subject to cyber-attacks and other disruptions to our information systems that could have a material adverse impact on our business, consolidated results of operations, and consolidated financial condition. Our operations are dependent on digital technologies and services.
Actual or threatened hurricanes can result in volatile demand for services provided by our Energy Services business. Our other Environmental Products businesses and our Building Materials product line within our Performance Materials segment are affected by weather patterns which determine the feasibility of construction activities.
Actual or threatened hurricanes can result in volatile demand for services provided by our energy services business. Our other businesses within the Environmental & Infrastructure product line are affected by weather patterns which determine the feasibility of construction activities.
The Company’s ability to compete is dependent upon its ability to defend its intellectual property against inappropriate disclosure, theft and infringement. The Company's ability to compete is based in part upon proprietary knowledge, both patented and unpatented.
The Company’s ability to compete is based in part upon proprietary knowledge, both patented and unpatented. The Company’s ability to achieve anticipated results depends in part on its ability to defend its intellectual property against inappropriate disclosure and theft as well as against infringement.
In addition, our Processed Minerals and Specialty PCC product lines are affected by the domestic building and construction markets, as well as the automotive market. Demand for our products is subject to trends in these markets. During periods of economic slowdown, our customers often reduce their capital expenditures and defer or cancel pending projects.
In addition, the Specialty Additives product line of our Consumer & Specialties segment is affected by the domestic residential building and construction markets, as well as the automotive market. Demand for our products is subject to trends in these markets. During periods of economic slowdown, our customers often reduce their capital expenditure and defer or cancel pending projects.
Further, certain of our customers are subject to various federal and international laws and regulations relating to environmental and health and safety matters, especially customers of our Energy Services business within the Environmental Products product line, who are subject to drilling permits, waste water disposal and other regulations.
Further, certain of our customers are subject to various federal and international laws and regulations relating to environmental and health and safety matters, especially customers of our Environmental & Infrastructure product line of our Engineered Solutions segment, who are subject to drilling permits, waste water disposal and other regulations.
Certain product lines within our Performance Materials segment are affected by seasonal weather patterns. A majority of revenues from our Energy Services business within the Environmental Products product line is derived from the Gulf of Mexico and surrounding states, which are susceptible to hurricanes that typically occur June 1 st through November 30 th .
A majority of revenues from our energy services business within the Environmental & Infrastructure product line of our Engineered Solutions segment is derived from the Gulf of Mexico and surrounding states, which are susceptible to hurricanes that typically occur June 1 st through November 30 th .
Typically, less construction activity occurs in winter months and thus this segment’s revenues tend to be greatest in the second and third quarters when weather patterns in our geographic markets are more conducive to construction activities. Our Processed Minerals product line is subject to similar seasonal patterns.
Typically, less construction activity occurs in winter months and thus this segment’s revenues tend to be greatest in the second and third quarters when weather patterns in our geographic markets are more conducive to construction activities. Additionally, some of the businesses within the Specialty Additives product line of our Consumer & Specialties segment are subject to similar seasonal patterns.
Our operations are subject to these trends, and we may not be able to mitigate these risks. A significant portion of our Performance Materials segment’s sales are derived from the metalcasting market.
Our operations are subject to these trends, and we may not be able to mitigate these risks. A significant portion of the sales of the High-Temperature product line of our Engineered Solutions segment are derived from the metalcasting market.
At December 31, 2022, the Company had $1,070.1 million aggregate principal amount of total indebtedness (consisting primarily of $550.0 million aggregate principal amount of loans under our term facility, $400.0 million aggregate principal amount of notes and $115.0 million outstanding under our revolving credit facility) and an additional $175 million of borrowing capacity under the revolving credit facility (after giving effect to $10.5 million of outstanding letters of credit).
At December 31, 2023, the Company had $1,020.8 million aggregate principal amount of total indebtedness (consisting primarily of $532.8 million aggregate principal amount of loans under our term facility, $400.0 million aggregate principal amount of notes and $85.0 million outstanding under our revolving credit facility) and an additional $205.6 million of borrowing capacity under the revolving credit facility (after giving effect to $9.1 million of outstanding letters of credit).
Delays or failures in new product development could adversely affect the Company’s operations. The Company’s future business success will depend in part upon its ability to maintain and enhance its technological capabilities, to respond to changing customer needs, and to successfully anticipate or respond to technological changes on a cost-effective and timely basis.
The Company’s future business success will depend in part upon its ability to maintain and enhance its technological capabilities, to respond to changing customer needs, and to successfully anticipate or respond to technological changes on a cost-effective and timely basis. The Company is engaged in a continuous effort to develop new products and processes in all of its product lines.
Any increased trade barriers or restrictions on global trade or retaliatory trade measures taken by Russia or other countries in response could affect our operating results. We are also subject to increased risks of natural disasters, public health crises, including the occurrence of a contagious disease or illness, such as COVID-19, and other catastrophic events in such countries.
We are also subject to increased risks of natural disasters, public health crises, including the occurrence of a contagious disease or illness, such as COVID-19, and other catastrophic events in such countries.
Depending on the ultimate outcome of these matters, the Company could in the future be required to pay significant amounts as a result of settlements or judgments in these matters, potentially in excess of liabilities accrued to date in respect of such matters.
Further, while the Company anticipates that Barretts will benefit from the operation of the automatic stay during the Chapter 11 proceedings, depending on the ultimate outcome of any of these litigation matters, the Company could in the future be required to pay significant amounts as a result of settlements or judgments, potentially in excess of liabilities accrued to date in respect of such matters.
In the paper industry, which is served by our Paper PCC product line, production levels for uncoated freesheet within North America and Europe, our two largest markets, are projected to continue to decrease. The reduced demand for premium writing paper products has resulted in closures and conversions of mills in both North America and Europe.
In the paper industry, which is served by the Specialty Additives product line of our Consumer & Specialties segment, production levels for uncoated freesheet within North America and Europe, our two largest markets, are projected to continue to decrease.
During the COVID-19 pandemic, our ability to ship our products has been, and may in the future be, affected by government mandates in certain jurisdictions in which we operate. 18 Operational Risks The Company is subject to stringent regulation in the areas of environmental, health and safety, and tax, and may incur unanticipated costs or liabilities arising out of claims for various legal, environmental and tax matters or product stewardship issues that could materially harm the Company’s results of operations, cash flows and financial condition.
The Company is subject to stringent regulation in the areas of environmental, health and safety, and tax, and may incur unanticipated costs or liabilities arising out of claims for various legal, environmental and tax matters or product stewardship issues that could materially harm the Company’s results of operations, cash flows and financial condition.
Any unanticipated liability arising out of a current matter or proceeding, or from the other risks described above, could have a material adverse effect on the Company’s results of operations, cash flows and financial condition. We have been and could continue to be adversely affected by the COVID-19 pandemic.
Any unanticipated liability arising out of a current matter or proceeding, or from the other risks described above, could have a material adverse effect on the Company’s results of operations, cash flows and financial condition. Production facilities are subject to operating risks and capacity limitations that may adversely affect the Company’s financial condition or results of operations.
The resolution of, or recognition of additional liabilities in connection with, pending litigation could have a material adverse effect on the Company’s results of operations, cash flows and financial condition.
The resolution of, or recognition of additional liabilities in connection with, pending litigation could have a material adverse effect on the Company’s results of operations, cash flows and financial condition. For a further discussion of the Chapter 11 Cases and BMI talc-related liabilities, see Note 17 to the Consolidated Financial Statements, included in this report.
Sales pursuant to these contracts represent a significant portion of our worldwide Paper PCC sales, which were $381.7 million in 2022, or approximately 18% of the Company’s net sales. The terms of many of these agreements have been extended or renewed in the past, often in connection with an expansion of the satellite plant.
Sales pursuant to these contracts represent a significant portion of our sales in the Specialty Additives product line of the Consumer & Specialties segment. The terms of many of these agreements have been extended or renewed in the past, often in connection with an expansion of the satellite plant.
The Company is currently a party in various litigation matters and tax and environmental proceedings and faces risks arising from various unasserted litigation matters, including product liability, patent infringement, antitrust claims, and claims for third-party property damage or personal injury stemming from alleged torts. Litigation can be expensive and disruptive.
The Company is currently a party in various litigation matters and tax and environmental proceedings and faces risks arising from various unasserted litigation matters, including product liability, patent infringement, antitrust claims, and claims for third-party property damage or personal injury stemming from alleged torts, including, as discussed elsewhere in this Report, a number of cases seeking damages for alleged exposure to asbestos-contaminated talc products sold by the Company’s subsidiary Barretts Minerals Inc.
We maintain property, business interruption and casualty insurance but such insurance may not cover all risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered. We may incur losses beyond the limits, or outside the coverage, of our insurance policies.
Production facilities are also subject to governmental requirements that may, and during the Covid-19 pandemic did, affect our ability to operate. We maintain property, business interruption and casualty insurance but such insurance may not cover all risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered.
The Company is engaged in a continuous effort to develop new products and processes in all of its product lines. Difficulties, delays or failures in the development, testing, production, marketing or sale of such new products could cause actual results of operations to differ materially from our expected results.
Difficulties, delays or failures in the development, testing, production, marketing or sale of such new products could cause actual results of operations to differ materially from our expected results. The Company’s ability to compete is dependent upon its ability to defend its intellectual property against inappropriate disclosure, theft and infringement.
Further, from time to time, we may experience capacity limitations in our manufacturing operations. In addition, if we are unable to effectively forecast our customers’ demand, it could affect our ability to successfully manage operating capacity limitations. These hazards, limitations, disruptions in supply and capacity constraints could adversely affect financial results. Operating results for some of our segments are seasonal.
We may incur losses beyond the limits, or outside the coverage, of our insurance policies. Further, from time to time, we may experience capacity limitations in our manufacturing operations. In addition, if we are unable to effectively forecast our customers’ demand, it could affect our ability to successfully manage operating capacity limitations.
In particular, rail service interruptions have affected our ability to ship, and the availability of rail service, and our ability to recover increased rail costs, may be beyond our control.
In particular, rail service interruptions have affected our ability to ship, and the availability of rail service, and our ability to recover increased rail costs, may be beyond our control. In addition, governmental restrictions can, and during the COVID-19 pandemic did, affect our ability to ship our products. 16 Operational Risks The Company’s subsidiaries, Barretts Minerals Inc.
Technology, Development and Growth Risks The Company’s results could be adversely affected if it is unable to effectively achieve and implement its growth initiatives.
Technology, Development and Growth Risks The Company’s results could be adversely affected if it is unable to effectively achieve and implement its growth initiatives. Sales and income growth of the Company depends upon a number of uncertain events. Growth will depend in part on sales growth from our existing businesses and customers.
Difficulties, delays or failure of any of these strategies could affect the future growth rate of the Company. Our strategy also anticipates growth through future acquisitions.
Difficulties, delays or failure of any of these strategies could affect the future growth rate of the Company. Delays or failures in new product development could adversely affect the Company’s operations.
For example, as described in Note 17 to the consolidated financial statements included in this report , the Company and certain of the Company’s subsidiaries are among numerous defendants in a number of cases seeking damages for alleged exposure to asbestos-containing materials related to talc products sold by the Company’s subsidiary Barretts Minerals Inc.
The Company and certain of the Company’s subsidiaries are among numerous defendants in over five hundred cases seeking damages for alleged exposure to asbestos-contaminated talc products sold by the Company’s subsidiary BMI.
The metalcasting market is dependent upon the demand for castings for automobile components, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components.
The metalcasting market is dependent upon the demand for castings for automobile components, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components. Many of these types of equipment are sensitive to fluctuations in demand during periods of recession or difficult economic conditions. This product line also serves the steel industry.
We expect paper consumption to remain similar to prior year levels in both regions. Our Refractories segment primarily serves the steel industry. In recent years, global steel production has been volatile. We expect steel consumption to be similar to 2022 levels. Our Environmental Products and Building Materials products sales are predominantly derived from the commercial construction and infrastructure markets.
The reduced demand for premium writing paper products has resulted in closures and conversions of mills in both North America and Europe. We expect paper consumption to remain similar to prior year levels in both regions. The Environmental & Infrastructure product line of our Engineered Solutions segment serves the commercial construction, infrastructure and oil & gas markets.
Removed
Many of these types of equipment are sensitive to fluctuations in demand during periods of recession or difficult economic conditions, which has affected and may continue to affect the demand for our Performance Materials segment’s products and services.
Added
In recent years, global steel production has been volatile. These trends have affected and may continue to affect the demand for our Engineered Solutions segment’s products and services. We expect steel consumption to be similar to 2023 levels.
Removed
Sales and income growth of the Company depends upon a number of uncertain events, including the outcome of the Company's strategies of increasing its penetration into geographic markets such as Brazil, India and China as well as other Asian and Eastern European countries; increasing its penetration into product markets such as the market for papercoating pigments and the market for groundwood paper pigments; increasing sales to existing PCC customers by increasing the amount of PCC used per ton of paper produced; developing, introducing and selling new products for the paper industry.
Added
The Company has a strategic growth initiative to increase penetration into geographic markets such as Brazil, India and China as well as other Asian and Eastern European countries. The Company also has a strategic growth initiative to increase penetration into consumer oriented markets such as pet litter, personal care, and oil purification. Our strategy also anticipates growth through future acquisitions.
Removed
The Company's ability to achieve anticipated results depends in part on its ability to defend its intellectual property against inappropriate disclosure and theft as well as against infringement.
Added
Further, geopolitical and terrorism threats, including armed conflict among countries, could in the future affect our business overseas, including leading to, among other things, impairment of our or our customers’ ability to conduct operations, adverse impact to our employees, and a loss of our investment.
Removed
In late February 2022, Russian military forces launched significant military action against Ukraine, which has continued through the date of this report. We have ceased our sales to Russia. Our sales in Russia and Ukraine have not been significant historically.
Added
While recent geopolitical conflicts, such as between Russia and Ukraine and between Israel and Hamas, have not significantly affected our business, the broader consequences of geopolitical and terrorism threats, which may include sanctions that prohibit our ability to do business in specific countries, embargoes, supply chain disruptions, potential contractual breaches and litigation, regional instability and geopolitical shifts, cannot be predicted.
Removed
Nevertheless, the outbreak of war between Russia and Ukraine and the resulting sanctions by U.S. and European governments, together with any additional future sanctions by them, could have an impact that expands into other geographies where we do business, including supply chain, business partners, and customers in those markets.
Added
(“BMI”) and Barretts Ventures Texas LLC (together with BMI, “Barretts”), have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code to address and comprehensively resolve BMI’s liabilities associated with talc. Risks and uncertainties related to this filing could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows.
Removed
Government action taken in response to the COVID-19 pandemic, including government-imposed restrictions on the movement of people and goods, and other new legal rights and obligations, could also have an adverse effect on the Company.
Added
On October 2, 2023 (the “Petition Date”), notwithstanding the Company’s confidence in the safety of BMI’s talc products, BMI and Barretts Ventures Texas LLC filed voluntary petitions for relief under Chapter 11 of the U.S.
Removed
We are subject to risks related to the global COVID-19 pandemic, which has adversely affected the global and U.S. economy, market conditions and our business.
Added
Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Chapter 11 Cases”) to address and comprehensively resolve BMI’s liabilities associated with talc. Minerals Technologies Inc. and the Company’s other subsidiaries were not included in the Chapter 11 filing. BMI intends to pursue a sale of its talc assets under section 363 of the U.S.
Removed
We have been, and could continue to be, affected by delays and disruptions to our supply chain, logistics, and service providers; travel and site access restrictions; reductions in employee availability and effectiveness; changes in operating procedures; and increased costs.
Added
Bankruptcy Code. Proceeds of the sale will be used to fund the Chapter 11 Cases. Barretts’ ultimate goal in the Chapter 11 Cases is to confirm a plan of reorganization under Section 524(g) of the U.S. Bankruptcy Code and utilize this provision to establish a trust that will address all current and future talc-related claims.
Removed
We cannot predict the degree to which, or the time period that, global economic conditions and our business, liquidity, financial condition and results of operations will continue to be affected by the COVID-19 pandemic and the resulting preventative measures.
Added
During the pendency of the Chapter 11 Cases, the Company anticipates that BMI will benefit from the operation of the automatic stay, which stays ongoing litigation in connection with talc-related claims against BMI.
Removed
The extent to which we are affected will depend on future developments, including the duration of the outbreak and the significance of new variants of COVID-19, travel restrictions, business and workforce disruptions, and the effectiveness of vaccination and other actions taken to contain and treat the disease.
Added
In addition, subject to certain exceptions, the filing or continued prosecution of all talc-related claims against BMI’s non-debtor affiliates is temporarily stayed through April 1, 2024 (subject to further extensions), the date on which a hearing is scheduled on the status of the Chapter 11 Cases. Barretts has been deconsolidated from the Company’s financial statements since the Petition Date.
Removed
The effects on our business, liquidity, financial condition and results of operations could be material. 19 Production facilities are subject to operating risks and capacity limitations that may adversely affect the Company’s financial condition or results of operations. The Company is dependent on the continued operation of its production facilities.
Added
Although the Chapter 11 Cases are progressing, it is not possible at this time to predict the form of any ultimate resolution or when an ultimate resolution might occur.
Removed
During the COVID-19 pandemic, our facilities have been, and may in the future be, temporarily closed in response to government mandates in certain jurisdictions in which we operate or for the safety of our employees in response to positive diagnoses for COVID-19.
Added
Accordingly, the amount that will be necessary to fully and finally resolve all of BMI’s current and future talc-related claims in connection with a confirmed Chapter 11 plan of reorganization cannot be estimated at this time.
Removed
We use these technologies for internal purposes, including data storage, processing, and transmissions, as well as in our manufacturing operations and in our interactions with customers and suppliers. Increased use of remote working arrangements has only increased our reliance on these technologies.
Added
Several risks and uncertainties related to Barretts’ Chapter 11 Cases could have a material adverse effect on the Company’s business, financial condition, results of operations and cash flows, including the value of Barretts, as deconsolidated, reflected in the Company’s financial statements, the ultimate amount necessary to be contributed to any trust established pursuant to Section 524(g) of the U.S.
Removed
Digital technologies are subject to the risk of cyber-attacks, and we have been in the past been affected by a ransomware attack on our information technology systems.
Added
Bankruptcy Code, the potential for the Company’s talc-related exposure to extend beyond BMI arising from claims by talc plaintiffs relating to the Company’s liability for talc claims, corporate veil piercing efforts or otherwise, any final resolution of the scope of the Pfizer indemnity, the costs of the Chapter 11 Cases and the length of time necessary to resolve the cases, either through settlement or as a result of litigation arising in connection with the Chapter 11 Cases, and the possibility that Barretts will be unsuccessful in attaining relief under Chapter 11.
Added
These hazards, limitations, disruptions in supply and capacity constraints could adversely affect financial results. Operating results for some of our businesses are seasonal. Certain of our businesses are affected by seasonal weather patterns.
Added
We use these technologies for activities important to our business, including managing and operating our manufacturing facilities, communications within our company and with customers and suppliers, maintaining accurate financial records, protecting confidential information, complying with regulatory, financial reporting, and legal requirements, and otherwise storing, processing and transmitting our data.
Added
Increased use of remote working arrangements has only increased our reliance on these technologies and services. Our business has in the past and could in the future be negatively affected by security incidents and systems disruptions.

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Item 2. Properties

Properties — owned and leased real estate

39 edited+5 added−8 removed23 unchanged
Biggest changeJerome, Quebec Satellite Plant PCC Specialty Minerals Canada, Windsor, Quebec Satellite Plant PCC Specialty Minerals China, Beihai (4) Satellite Plant PCC Specialty Minerals China, Beijing Sales Office/Administrative Office Metalcasting, specialty, fabric care and pet care products Performance Materials China, Chao Yang, Liaoning Plant; Mine Metalcasting and fabric care products Performance Materials China, Changshu Satellite Plant PCC Specialty Minerals China, Dagang (3) Satellite Plant PCC Specialty Minerals China, Henan Satellite Plant PCC Specialty Minerals China, Rugao (4) Satellite Plant GCC Specialty Minerals China, Shandong Satellite Plant PCC Specialty Minerals China, Shanghai Administrative Office/Sales Office PCC/Monolithic Refractories Specialty Minerals; Refractories 22 Location Facility Product Line Segment China, Shouguang (3) Satellite Plant PCC Specialty Minerals China, Suzhou Plant Environmental and building materials products Performance Materials China, Suzhou Plant/Sales Office/Research Laboratories PCC/Monolithic Refractories Specialty Minerals; Refractories China, Tianjin Plant; Mine; Research Laboratories Metalcasting and fabric care products Performance Materials China, Yanzhou Satellite Plant PCC Specialty Minerals China, Zhenjiang (3) Satellite Plant PCC Specialty Minerals China, Zhumadian Satellite Plant PCC Specialty Minerals Finland, Äänekoski Satellite Plant PCC Specialty Minerals Finland, Tervakoski Satellite Plant PCC Specialty Minerals France, Quimperle Satellite Plant PCC Specialty Minerals France, Saillat Sur Vienne Satellite Plant PCC Specialty Minerals Germany, Duisburg Plant/Sales Office/Research Laboratories Laser Scanning Instrumentation/ Probes/Monolithic Refractories Refractories Germany, Schongau Satellite Plant PCC Specialty Minerals Netherlands, Hengelo Plant/Administrative Office Metallurgical Wire Refractories India, Ballarshah (3) Satellite Plant PCC Specialty Minerals India, Bhuj Plant Environmental and building materials products Performance Materials India, Chennai Plant Metalcasting products Performance Materials India, Dandeli Satellite Plant PCC Specialty Minerals India, Erode (4) Satellite Plant PCC Specialty Minerals India, Gaganapur (3) Satellite Plant PCC Specialty Minerals India, Kala Amb Satellite Plant PCC Specialty Minerals India, Mukstar Satellite Plant PCC Specialty Minerals India, Mumbai (2) Sales Office /Administrative Office PCC/Monolithic Refractories/ Metallurgical Wire Specialty Minerals; Refractories India, Lalkuan Satellite Plant PCC Specialty Minerals India, Rajahmundy (4) Satellite Plant PCC Specialty Minerals India, Rayagada (3) Satellite Plant PCC Specialty Minerals India, Saila Khurd Satellite Plant PCC Specialty Minerals Indonesia, Jakarta (2) Operations base Environmental products Performance Materials Indonesia, Perawang (3) Satellite Plant PCC Specialty Minerals Indonesia, Perawang 2 (3) Satellite Plant PCC Specialty Minerals Ireland, Cork (2) Plant; Administrative Office/ Research Laboratories Monolithic Refractories Refractories Italy, Brescia Sales Office Monolithic Refractories/Shapes Refractories Italy, Nave Plant Monolithic Refractories/Shapes Refractories Japan, Gamagori Plant/Research laboratories Monolithic Refractories/Shapes, Calcium Refractories Japan, Shiraoi (3) Satellite Plant PCC Specialty Minerals Japan, Tokyo Sales/Administrative Office Monolithic Refractories Refractories Korea, Pyeongtaek Plant Environmental, building materials and other products Performance Materials Malaysia, Kemaman (2) Operations base Environmental products Performance Materials Malaysia, Sipitang Satellite Plant PCC Specialty Minerals Netherlands, Moerdjik Plant/Administrative Office Pet Care Products Performance Materials Nigeria, Port Harcourt (2) Operations base Environmental products Performance Materials 23 Location Facility Product Line Segment Poland, Kwidzyn Satellite Plant PCC Specialty Minerals Poland, Szczytno Plant Environmental products Performance Material Portugal, Figueira da Foz (3) Satellite Plant PCC Specialty Minerals Slovakia, Bratislava Plant; Mine Pet Care Products Performance Material Slovakia, Kopernica Plant Pet Care Products Performance Material Slovakia, Ruzomberok Satellite Plant PCC Specialty Minerals South Africa, Johannesburg (2) Sales Office/Administrative Office Monolithic Refractories Refractories South Africa, Merebank (3) Satellite Plant PCC Specialty Minerals South Africa, Pietermaritzburg Plant Monolithic Refractories Refractories South Korea, Yangbuk-Myeun, Kyeung-buk Plant; Mine Metalcasting products Performance Material Spain, Santander Administrative Office Monolithic Refractories Refractories Thailand, Laemchabang Plant Metalcasting and fabric care products Performance Material Thailand, Namphong Satellite Plant PCC Specialty Minerals Thailand, Tha Toom (3) Satellite Plant PCC Specialty Minerals Thailand, Tha Toom 2 (3) Satellite Plant PCC Specialty Minerals Thailand, Wangnoi Plant Pet Care Products Performance Materials Turkey, Enez Plant; Mine Metalcasting, specialty and basic minerals products Performance Materials Turkey, Gebze Plant/Research Laboratories Monolithic Refractories/Shapes/ Application Equipment Refractories Turkey, Istanbul Sales Office/Administrative Office Monolithic Refractories Refractories Turkey, Kutahya Plant Monolithic Refractories/Shapes Refractories Turkey, Unye Plant; Mine Pet Care Products Performance Material Turkey, Usak Plant; Mine Specialty material products Performance Material United Kingdom, Aberdeen (2) Operations base Environmental products Performance Material United Kingdom, Birkenhead (2) Research Laboratories Environmental products Performance Material United Kingdom, Lifford Plant PCC, Lime Specialty Minerals United Kingdom, Rotherham Plant/Sales Office Monolithic Refractories/Shapes Refractories United Kingdom, Winsford Plant/Research Laboratories Fabric care and other products Performance Material (1) This plant and quarry is leased to another company.
Biggest changeJerome, Quebec Satellite Plant Specialty Additives Consumer & Specialties Canada, Windsor, Quebec Satellite Plant Specialty Additives Consumer & Specialties China, Beihai (4) Satellite Plant Specialty Additives Consumer & Specialties China, Beijing Sales Office/Administrative Office High-Temperature Technologies and Household & Personal Care All Segments China, Chao Yang, Liaoning Plant; Mine High-Temperature Technologies and Household & Personal Care All Segments China, Changshu Satellite Plant Specialty Additives Consumer & Specialties China, Dagang (3) Satellite Plant Specialty Additives Consumer & Specialties China, Henan Satellite Plant Specialty Additives Consumer & Specialties China, Rugao Satellite Plant Specialty Additives Consumer & Specialties China, Shandong Satellite Plant Specialty Additives Consumer & Specialties China, Shanghai Administrative Office/Sales Office Specialty Additives/High-Temperature Technologies All Segments 22 Location Facility Product Line Segment China, Shouguang (3) Satellite Plant Specialty Additives Consumer & Specialties China, Suzhou Plant Environmental & Infrastructure Engineered Solutions China, Suzhou Plant/Sales Office/Research Laboratories Specialty Additives/High-Temperature Technologies All Segments China, Tianjin Plant; Mine; Research Laboratories High-Temperature Technologies and Household & Personal Care All Segments China, Yanzhou Satellite Plant Specialty Additives Consumer & Specialties China, Zhejiang (4) Satellite Plant Specialty Additives Consumer & Specialties China, Zhumadian Satellite Plant Specialty Additives Consumer & Specialties Finland, Äänekoski Satellite Plant Specialty Additives Consumer & Specialties Finland, Tervakoski Satellite Plant Specialty Additives Consumer & Specialties France, Quimperle Satellite Plant Specialty Additives Consumer & Specialties France, Saillat Sur Vienne Satellite Plant Specialty Additives Consumer & Specialties Germany, Duisburg Plant/Sales Office/Research Laboratories High-Temperature Technologies Engineered Solutions Germany, Schongau Satellite Plant Specialty Additives Consumer & Specialties Netherlands, Hengelo Plant/Administrative Office High-Temperature Technologies Engineered Solutions India, Ballarshah (3) Satellite Plant Specialty Additives Consumer & Specialties India, Chennai Plant High-Temperature Technologies Engineered Solutions India, Dandeli Satellite Plant Specialty Additives Consumer & Specialties India, Erode Satellite Plant Specialty Additives Consumer & Specialties India, Gaganapur (3) Satellite Plant Specialty Additives Consumer & Specialties India, Kala Amb Satellite Plant Specialty Additives Consumer & Specialties India, Mukstar Satellite Plant Specialty Additives Consumer & Specialties India, Mumbai (2) Sales Office /Administrative Office Specialty Additives/High-Temperature Technologies All Segments India, Lalkuan Satellite Plant Specialty Additives Consumer & Specialties India, Rajahmundry Satellite Plant Specialty Additives Consumer & Specialties India, Rayagada (3) Satellite Plant Specialty Additives Consumer & Specialties India, Saila Khurd Satellite Plant Specialty Additives Consumer & Specialties Indonesia, Jakarta (2) Operations base Environmental & Infrastructure Engineered Solutions Indonesia, Perawang (3) Satellite Plant Specialty Additives Consumer & Specialties Indonesia, Perawang 2 (3) Satellite Plant Specialty Additives Consumer & Specialties Ireland, Cork (2) Plant; Administrative Office/ Research Laboratories High-Temperature Technologies Engineered Solutions Italy, Brescia Sales Office High-Temperature Technologies Engineered Solutions Italy, Nave Plant High-Temperature Technologies Engineered Solutions Japan, Gamagori Plant/Research laboratories High-Temperature Technologies Engineered Solutions Japan, Shiraoi (3) Satellite Plant Specialty Additives Consumer & Specialties Japan, Tokyo Sales/Administrative Office High-Temperature Technologies Engineered Solutions Malaysia, Kemaman (2) Operations base Environmental & Infrastructure Engineered Solutions Malaysia, Labuan (2) Operations base Environmental & Infrastructure Engineered Solutions Malaysia, Puchong (2) Sales Office/Administrative Office Environmental & Infrastructure Engineered Solutions Malaysia, Sipitang Satellite Plant Specialty Additives Consumer & Specialties Netherlands, Moerdijk Plant/Administrative Office Household & Personal Care Consumer & Specialties Nigeria, Port Harcourt (2) Operations base Environmental & Infrastructure Engineered Solutions 23 Location Facility Product Line Segment Poland, Kwidzyn Satellite Plant Specialty Additives Consumer & Specialties Poland, Szczytno Plant Environmental & Infrastructure Engineered Solutions Portugal, Figueira da Foz (3) Satellite Plant Specialty Additives Consumer & Specialties Slovakia, Bratislava Administrative Office; Mine Household & Personal Care Consumer & Specialties Slovakia, Kopernica Plant Household & Personal Care Consumer & Specialties Slovakia, Ruzomberok Satellite Plant Specialty Additives Consumer & Specialties South Africa, Johannesburg (2) Sales Office/Administrative Office High-Temperature Technologies and Specialty Additives All Segments South Africa, Merebank (3) Satellite Plant Specialty Additives Consumer & Specialties South Africa, Pietermaritzburg Plant High-Temperature Technologies Engineered Solutions South Korea, Yangbuk-Myeun, Kyeung-buk Plant High-Temperature Technologies and Household & Personal Care All Segments Spain, Santander Administrative Office High-Temperature Technologies Engineered Solutions Thailand, Laemchabang Plant High-Temperature Technologies and Household & Personal Care All Segments Thailand, Namphong Satellite Plant Specialty Additives Consumer & Specialties Thailand, Tha Toom (3) Satellite Plant Specialty Additives Consumer & Specialties Thailand, Tha Toom 2 (3) Satellite Plant Specialty Additives Consumer & Specialties Thailand, Wangnoi Plant Household & Personal Care Consumer & Specialties Turkey, Enez Plant; Mine High-Temperature Technologies, Environmental & Infrastructure and Household & Personal Care All Segments Turkey, Gebze Plant/Research Laboratories High-Temperature Technologies Engineered Solutions Turkey, Istanbul Sales Office/Administrative Office High-Temperature Technologies and Household & Personal Care All Segments Turkey, Kutahya Plant High-Temperature Technologies Engineered Solutions Turkey, Unye Plant; Mine Household & Personal Care Consumer & Specialties Turkey, Usak Plant; Mine Household & Personal Care Consumer & Specialties United Kingdom, Aberdeen (2) Operations base Environmental & Infrastructure Engineered Solutions United Kingdom, Birkenhead (2) Research Laboratories Environmental & Infrastructure Engineered Solutions United Kingdom, Lifford Plant Specialty Additives Consumer & Specialties United Kingdom, Rotherham Plant/Sales Office High-Temperature Technologies Engineered Solutions United Kingdom, Winsford Plant/Research Laboratories Household & Personal Care and High-Temperature Technologies All Segments (1) This plant and quarry is leased to another company.
In most cases, supply from 3 rd -party mines is directly supervised by local Company staff which assists with grading and quality control. All mines are operated by contractors with conventional open-pit truck and shovel mining methods. Clay from the mines is hauled by trucks to the Company's processing facility.
In most cases, supply from 3 rd -party mines is directly supervised by local Company staff which assists with grading and quality control. All mines are operated by contractors with conventional open-pit truck & shovel mining methods. Clay from the mines is hauled by trucks to the Company’s processing facility.
The deposit is part of the Shelburne geological formation, which runs up and down the eastern coast of the United States. The mined material is finely pulverized at the processing facility using a variety of crushing and milling equipment and sold as ground products, calcined into lime and is also synthesized into a participated crystals or PCC.
The deposit is part of the Shelburne geological formation, which runs up and down the eastern coast of the United States. The mined material is finely pulverized at the processing facility using a variety of crushing and milling equipment and sold as ground products, calcined into lime and is also synthesized into participated crystals or PCC.
The Company maintains a Mining Lead Team that develops standards and systems to ensure Company-wide use of best practices for mining and exploration practices. The Mining Lead Team ensures that the Company maintains robust controls over its exploration and resource and reserve estimation efforts.
The Company maintains a Mining Lead Team that develops standards and systems to ensure Company-wide use of best practices for mining and exploration. The Mining Lead Team ensures that the Company maintains robust controls over its exploration and resource and reserve estimation efforts.
The majority of our current bentonite mining in the U.S. occurs on reserves where our rights to such reserves accrue to us through over 80 mining leases and royalty agreements and 2,000 mining claims. A majority of these are with private parties and located in Montana, South Dakota and Wyoming.
The majority of our current bentonite mining in the U.S. occurs on reserves where our rights to such reserves accrue to us through over 80 mining leases and royalty agreements and 2,000 mining claims. A majority of these are with private parties and located in South Dakota and Wyoming.
The Company has reserves of sodium and calcium bentonite at various locations in the U.S., including Wyoming, South Dakota, Montana and Alabama, as well as in Australia, China, and Turkey. Through the Company’s affiliations and joint ventures, the Company also has access to bentonite deposits in India and Mexico.
The Company has reserves of sodium and calcium bentonite at various locations in the U.S., including Wyoming, South Dakota and Alabama, as well as in Australia, China, and Turkey. Through the Company’s affiliations and joint ventures, the Company also has access to bentonite deposits in India and Mexico.
The bentonite deposits underlying these claims and leases generally lie in parcels of land varying between 20 and 40 acres. In general, our bentonite reserves are immediately adjacent to, or within sixty miles of, one of the related processing plants.
The bentonite deposits underlying these claims and leases generally lie in parcels of land varying between 20 and 40 acres. In general, our assigned bentonite reserves are immediately adjacent to, or within sixty miles of, one of the related processing plants.
The property consists of approximately 800 total acres, including the land that the production facilities sit on. Production of lime began on the site back in the 1850s and continues today with GCC, Lime and PCC production. The open-pit mine consists mainly of a mineral deposit of limestone (marble).
The property consists of approximately 800 total acres, including the land on which the production facilities sit. Production of lime began on the site back in the 1850s and continues today with GCC, Lime and PCC. The open-pit mine consists mainly of a mineral deposit of limestone (marble).
The resulting calcium and calcium carbonate products are primarily used as food and pharmaceutical ingredients, sealant additives, high-end construction ingredients, as well as asphalt roofing shingles. The deposit is wholly owned by the Company. With over 150 years of mining on site by the Company and its predecessors, the resources have become reasonably well understood.
The resulting calcium and calcium carbonate products are primarily used as food and pharmaceutical ingredients, sealant additives, high-end construction ingredients, as well as asphalt roofing shingles. The deposit is wholly owned by the Company. With over 150 years of mining on site by the Company and its predecessors, the resources are well understood.
(4) These plants are under construction. 24 Mining Properties Information concerning our mining properties in this Annual Report on Form 10-K is disclosed in accordance with the requirements of subpart 1300 of Regulation S-K. The Company relies on access to bentonite reserves to support its Performance Materials segment.
(4) These plants are under construction. 24 Mining Properties Information concerning our mining properties in this Annual Report on Form 10-K is disclosed in accordance with the requirements of subpart 1300 of Regulation S-K. The Company relies on access to bentonite reserves to support our businesses.
The majority of pits are reclaimed in the same year that they were first disturbed. 26 Annual exploration and permitting activities target the replacement of the number of tons mined to support the long-term sustainability of local operations. The Colony area mines are supported by 2 main processing plants located in Colony, WY.
The majority of pits are reclaimed in the same year that they were first disturbed. Annual exploration and permitting activities target the replacement of the number of tons mined to support the long-term sustainability of local operations. The Colony area mines are supported by 2 main processing plants located in Colony, WY. These plants produce both powder and granular products.
The local processing facilities are supported by bentonite clay supplied from 51 million tons of proven and probable reserves, comprised of leases (79%), unpatented claims (14%), and owned properties (7%). The area operates under 12 mining permits covering approximately 100,000 acres, with active mining and future mineral reserves located within 35 miles of the Colony processing facilities.
The local processing facilities are supported by bentonite clay supplied from 54 million tons of proven and probable reserves, comprised of leases (73%), unpatented claims (22%), and owned properties (5%). The area operates under 12 mining permits covering approximately 100,000 acres, with active mining and future mineral reserves located within 35 miles of the Colony processing facilities.
The term "measured resource" indicates a mineral resource for which quantity and grade or quality are estimated based on conclusive geological evidence and sampling. The term "indicated resource" indicates a mineral resource for which quantity and grade or quality are estimated based on adequate geological evidence and sampling.
The term “measured resource” indicates a mineral resource for which quantity and grade or quality are estimated based on conclusive geological evidence and sampling. The term “indicated resource” indicates a mineral resource for which quantity and grade or quality are estimated based on adequate geological evidence and sampling.
The Marble Canyon and Arctic Canyon Leases are both still active, with Marble Canyon at a minimal rate of production. Furnace Canyon is in an advanced stage of reclamation. All mineral rights are owned by the Company.
The Marble Canyon and Arctic Canyon Leases are both still active, with Marble Canyon at a minimal rate of production. Furnace Canyon is in an advanced stage of reclamation.
The term "proven mineral reserve" represents the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. The term "probable mineral reserve" represents the economically mineable part of an indicated and, in some cases a measured mineral resource.
The term “proven mineral reserve” represents the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource. The term “probable mineral reserve” represents the economically mineable part of an indicated and, in some cases a measured mineral resource.
These plants produce both powder and granular products. A wet-processing facility is located near Belle Fourche, SD. All three facilities have direct access to rail. Lovell, Wyoming Mines The Company's Lovell, WY mining operations are located in the Bighorn Basin near Lovell, WY with processing facilities located 3 miles west of the town of Lovell.
A wet-processing facility is located near Belle Fourche, SD. All three facilities have direct access to rail. 26 Lovell, Wyoming Mines The Company’s Lovell, WY mining operations are located in the Bighorn Basin near Lovell, WY with processing facilities located 3 miles East of the town of Lovell.
Genevieve Plant Limestone, Lime, PCC Specialty Minerals Montana, Dillon Plant; Mine Talc Specialty Minerals Nebraska, Scottsbluff Transportation terminal Performance Materials New York, New York (2) Headquarters All Company Products Headquarters New York, Ticonderoga Satellite Plant PCC Specialty Minerals North Dakota, Gascoyne Plant; Mine Metalcasting and specialty products Performance Materials Ohio, Archbold Plant Metalcasting products Performance Materials Ohio, Bryan Plant Monolithic Refractories Refractories Ohio, Chillicothe Satellite Plant PCC Specialty Minerals Ohio, Dover Plant Monolithic Refractories/Shapes Refractories Pennsylvania, Bethlehem Administrative Office; Research Laboratories; Sales Offices All Company Products All Segments Pennsylvania, Easton Administrative Office; Research Laboratories; Plant; Sales Offices All Company Products All Segments Pennsylvania, Slippery Rock Plant; Sales Offices Monolithic Refractories/Shapes Refractories Pennsylvania, York Plant Metalcasting and pet care products Performance Materials 21 Location Facility Product Line Segment South Carolina, Eastover Satellite Plant PCC Specialty Minerals Tennessee, Chattanooga Plant Metalcasting products Performance Materials Tennessee, Dyersburg Plant Pet care products Performance Materials Texas, Bay City Plant Talc Performance Materials Texas, Houston (2) Research Laboratories Environmental products Performance Materials Texas, Houston (2) Administrative Office Environmental products Performance Materials Washington, Longview Satellite Plant PCC Specialty Minerals Wisconsin, Neenah Plant Metalcasting products Performance Materials Wisconsin, Superior Satellite Plant PCC Specialty Minerals Wyoming, Colony Plant; Mine Metalcasting, pet litter, personal care, specialty and basic minerals products Performance Materials Wyoming, Lovell Plant; Mine Specialty and pet care products; Environmental and building materials products Performance Materials Location Facility Product Line Segment International Australia, Brisbane Sales Office/Administrative Office Metalcasting, specialty and pet care products Performance Materials Australia, Carlingford (2) Sales Office Monolithic Refractories Refractories Australia, Gurulmundi Plant; Mine Metalcasting, specialty and pet care products Performance Materials Australia, Perth (2) Operations base Environmental products Performance Materials Austria, Pucking Sales Office/Administrative Office Pet care products Performance Materials Austria, Rottersdorf Plant Pet care products Performance Materials Belgium, Brussels Administrative Office Monolithic Refractories Refractories Brazil, Guaiba Satellite Plant PCC Specialty Minerals Brazil, Jacarei Satellite Plant PCC Specialty Minerals Brazil, Luiz Antonio Satellite Plant PCC Specialty Minerals Brazil, Macae (2) Operations base Environmental products Performance Materials Brazil, Mucuri Satellite Plant PCC Specialty Minerals Brazil, Sao Jose dos Campos Sales Office /Administrative Office PCC Specialty Minerals Brazil, Suzano Satellite Plant PCC Specialty Minerals Canada, Brantford, Ontario Plant Pet care products Performance Materials Canada, Lethbridge, Alberta Plant Pet care products Performance Materials Canada, Mississaugua, Ontario Administrative Office Pet care products Performance Materials Canada, Pt.
Genevieve Plant Specialty Additives Consumer & Specialties Nebraska, Scottsbluff Transportation terminal Engineered Solutions New York, New York (2) Headquarters All Company Products Headquarters New York, Ticonderoga Satellite Plant Specialty Additives Consumer & Specialties North Dakota, Gascoyne Plant; Mine High-Temperature Technologies, Environmental & Infrastructure and Household & Personal Care All Segments Ohio, Archbold Plant High-Temperature Technologies Engineered Solutions Ohio, Bryan Plant High-Temperature Technologies Engineered Solutions Ohio, Chillicothe Satellite Plant Specialty Additives Consumer & Specialties Ohio, Dover Plant High-Temperature Technologies Engineered Solutions Pennsylvania, Bethlehem Administrative Office; Research Laboratories; Sales Offices All Company Products All Segments Pennsylvania, Easton Administrative Office; Research Laboratories; Plant; Sales Offices All Company Products All Segments Pennsylvania, Slippery Rock Plant; Sales Offices High-Temperature Technologies Engineered Solutions Pennsylvania, York Plant High-Temperature Technologies and Household & Personal Care All Segments 21 Location Facility Product Line Segment South Carolina, Eastover Satellite Plant Specialty Additives Consumer & Specialties Tennessee, Chattanooga Plant High-Temperature Technologies Engineered Solutions Tennessee, Dyersburg Plant Household & Personal Care Consumer & Specialties Texas, Houston (2) Research Laboratories Environmental & Infrastructure Engineered Solutions Texas, Houston (2) Administrative Office Environmental & Infrastructure Engineered Solutions Washington, Longview Satellite Plant Specialty Additives Consumer & Specialties Wisconsin, Neenah Plant High-Temperature Technologies Engineered Solutions Wisconsin, Superior Satellite Plant Specialty Additives Consumer & Specialties Wyoming, Colony Plant; Mine High-Temperature Technologies, Environmental & Infrastructure and Household & Personal Care All Segments Wyoming, Lovell Plant; Mine High-Temperature Technologies, Environmental & Infrastructure and Household & Personal Care All Segments Location Facility Product Line Segment International Australia, Brisbane Sales Office/Administrative Office High-Temperature Technologies and Household & Personal Care All Segments Australia, Carlingford (2) Sales Office High-Temperature Technologies Engineered Solutions Australia, Gurulmundi Plant; Mine High-Temperature Technologies and Household & Personal Care All Segments Australia, Perth (2) Operations base Environmental & Infrastructure Engineered Solutions Austria, Pucking Sales Office/Administrative Office Household & Personal Care Consumer & Specialties Austria, Rottersdorf Plant Household & Personal Care Consumer & Specialties Belgium, Brussels Administrative Office High-Temperature Technologies Engineered Solutions Brazil, Guaiba Satellite Plant Specialty Additives Consumer & Specialties Brazil, Jacarei Satellite Plant Specialty Additives Consumer & Specialties Brazil, Luiz Antonio Satellite Plant Specialty Additives Consumer & Specialties Brazil, Macae (2) Operations base Environmental & Infrastructure Engineered Solutions Brazil, Mucuri Satellite Plant Specialty Additives Consumer & Specialties Brazil, Sao Jose dos Campos Sales Office /Administrative Office Specialty Additives Consumer & Specialties Brazil, Suzano Satellite Plant Specialty Additives Consumer & Specialties Canada, Brantford, Ontario Plant Household & Personal Care Consumer & Specialties Canada, Lethbridge, Alberta Plant Household & Personal Care Consumer & Specialties Canada, Mississauga, Ontario Administrative Office Household & Personal Care Consumer & Specialties Canada, Pt.
The term "inferred resource" indicates a mineral resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling. (2) Mineral resources estimates were calculated and prepared by the Company's in-house technical staff.
The term “inferred resource” indicates a mineral resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling. (2) Mineral resources estimates were calculated and prepared by the Company’s in-house technical staff. (3) Quantity of resources that would be owned if patent was granted.
Dongming, China Mines The Company's Dongming mines and processing facilities are located in Jianping county, Liaoning province, China. The regional bentonite occurs within the Jurassic Jingangshan and Tuhulu formations which were deposited during the Upper Jurassic Period between 135 to 144 million years ago. The thickness of the bentonite layers varies from 0.5 to 40m.
The regional bentonite occurs within the Jurassic Jingangshan and Tuhulu formations which were deposited during the Upper Jurassic Period between 135 to 144 million years ago. The thickness of the bentonite layers varies from 0.5 to 40m.
A back-cast method of mining is used whereby small pits are progressively opened and then quickly backfilled in succession as mining progresses along outcrops. Most pits are reclaimed in the same year that they were first disturbed. Annual exploration and permitting activities target the replacement of the number of tons mined to support the long-term sustainability of local operations.
A back-cast method of mining is used whereby small pits are progressively opened and then quickly backfilled in succession as mining progresses along outcrops. Most pits are reclaimed in the same year that they were first disturbed.
Cartersville Plant Environmental products and other building materials products Performance Materials Illinois, Belvidere Plant Metalcasting products Performance Materials Illinois, Hoffman Estates (2) Research Laboratories; Administrative office All Company Products Performance Materials Indiana, Portage Plant Refractories/Shapes Refractories Indiana, Troy Plant Metalcasting products Performance Materials Iowa, Shell Rock Plant Metalcasting products Performance Materials Kentucky, Wickliffe Satellite Plant PCC Specialty Minerals Louisiana, Baton Rouge Plant Monolithic Refractories Refractories Louisiana, Lafayette Plant Personal Care Products Performance Materials Louisiana, New Iberia (2) Operations base Environmental products Performance Materials Massachusetts, Adams Plant; Mine Limestone, Lime, PCC Specialty Minerals Michigan, Albion Plant Metalcasting products Performance Materials Michigan, Quinnesec Satellite Plant PCC Specialty Minerals Minnesota, Cloquet Satellite Plant PCC Specialty Minerals Minnesota, International Falls Satellite Plant PCC Specialty Minerals Mississippi, Aberdeen Plant Performance additive products Performance Materials Missouri, Ste.
Cartersville Plant Environmental & Infrastructure Engineered Solutions Illinois, Belvidere Plant High-Temperature Technologies Engineered Solutions Illinois, Hoffman Estates (2) Research Laboratories; Administrative office All Company Products All Segments Indiana, Portage Plant High-Temperature Technologies Engineered Solutions Indiana, Troy Plant High-Temperature Technologies Engineered Solutions Iowa, Shell Rock Plant High-Temperature Technologies Engineered Solutions Kentucky, Wickliffe Satellite Plant Specialty Additives Consumer & Specialties Louisiana, Baton Rouge Plant High-Temperature Technologies Engineered Solutions Louisiana, Broussard Administrative office Environmental & Infrastructure Engineered Solutions Louisiana, Lafayette Plant Household & Personal Care Consumer & Specialties Louisiana, New Iberia (2) Operations base Environmental & Infrastructure Engineered Solutions Massachusetts, Adams Plant; Mine Specialty Additives Consumer & Specialties Michigan, Albion Plant High-Temperature Technologies Engineered Solutions Michigan, Quinnesec Satellite Plant Specialty Additives Consumer & Specialties Minnesota, Cloquet Satellite Plant Specialty Additives Consumer & Specialties Minnesota, International Falls Satellite Plant Specialty Additives Consumer & Specialties Mississippi, Aberdeen Plant Specialty Additives and Environmental & Infrastructure All Segments Missouri, Ste.
A mine plan has been developed based on the prior mining activities and a core drilling program completed in 2019. The reserves and resources outlined further in this document, are the product of this recent life of mine study.
A mine plan has been developed based on the prior mining activities and a core drilling program was completed in 2019. The reserves and resources are the product of this recent life-of-mine study. Canaan, Connecticut Mine The Canaan mine and the associated processing facility are located in the town of North Canaan, Connecticut and consists of approximately 208 total acres.
The properties are comprised of both government-issued mining claims and privately-owned lands. The orebodies were produced by hydrothermal alteration and generally occur as massive deposits greater than 10 meters in thickness. The bentonite ore is notable for its high brightness.
These mines are operated by the Company via contract mining and hauling. Both mines use conventional open-pit truck & shovel mining methods. The properties are comprised of both government-issued mining claims and privately-owned lands. The orebodies were produced by hydrothermal alteration and generally occur as massive deposits greater than 10 meters in thickness.
For our Performance Materials segment, we also mine leonardite, a form of oxidized lignite, in North Dakota, and transport it to nearby processing facilities. The Processed Minerals product line of our Specialty Minerals segment is supported by the Company's limestone reserves located in the western and eastern parts of the United States, and talc reserves located in Montana.
We also mine leonardite, a form of oxidized lignite, in North Dakota, and transport it to nearby processing facilities. The Company’s Consumer & Specialties segment is supported by the Company’s limestone reserves located in the western and eastern parts of the United States. The Company generally owns and surface mines these reserves and processes its products at nearby processing plants.
Location Facility Product Line Segment United States Alabama, Sandy Ridge Plant; Mine Metalcasting and specialty products Performance Materials Alabama, Selma Satellite Plant PCC Specialty Minerals Arizona, Phoenix Plant Pet care products Performance Materials Arizona, Pima County (1) Plant; Mine Limestone Specialty Minerals Arkansas, Ashdown Satellite Plant PCC Specialty Minerals California, Lucerne Valley Plant; Mine Limestone Specialty Minerals Connecticut, Canaan Plant; Mine Limestone, Metallurgical Wire/Calcium Specialty Minerals; Refractories Georgia.
Location Facility Product Line Segment United States Alabama, Sandy Ridge Plant; Mine High-Temperature Technologies and Household & Personal Care All Segments Alabama, Selma Satellite Plant Specialty Additives Consumer & Specialties Arizona, Phoenix Plant Household & Personal Care Consumer & Specialties Arizona, Pima County (1) Plant; Mine Specialty Additives Consumer & Specialties Arkansas, Ashdown Satellite Plant Specialty Additives Consumer & Specialties California, Lucerne Valley Plant; Mine Specialty Additives Consumer & Specialties Connecticut, Canaan Plant; Mine Specialty Additives, High-Temperature Technologies All Segments Georgia.
Assuming the continuation of 2022 annualized usage rates, the Company has reserves of commercially usable sodium bentonite for the next 52 years, commercially usable calcium bentonite for the next 22 years and commercially usable leonardite for more than 75 years.
Assuming the continuation of 2023 annualized usage rates, the Company has reserves of commercially usable sodium bentonite for the next 46 years, commercially usable calcium bentonite for the next 21 years and commercially usable leonardite for more than 30 years. At current usage levels, the Company has reserves in excess of 26 years at its limestone production facilities.
Operating Statistics The following table sets forth the tons usage for the fiscal years 2022, 2021 and 2020 by major mineral category. 2022 2021 2020 Tons (000s) Tons (000s) Tons (000s) Limestone Adams, MA 315 355 453 Canaan, CT 562 522 510 Lucerne Valley, CA 1,202 1,250 1,082 Pima County, AZ 114 166 177 Total Limestone 2,193 2,293 2,222 Talc Dillon, MT 102 117 122 Sodium Bentonite Australia — 118 83 Belle/Colony, WY/SD 1,109 1,177 1,345 Lovell, WY 629 629 507 Total Sodium Bentonite 1,738 1,924 1,935 Calcium Bentonite Chao Yang, Liaoning, China 267 507 332 Nevada 1 1 1 Sandy Ridge, AL 98 77 40 Slovakia, Lutila 52 — — Turkey, Enez 172 196 196 Turkey, Usak 62 51 33 Turkey, Unye 331 320 314 Total Calcium Bentonite 983 1,152 916 Leonardite Gascoyne, ND 31 51 34 GRAND TOTALS 5,047 5,537 5,229 29 Proven and Probable Reserves The following table sets forth the Company’s proven and probable reserves, as well as, the conversion factor for the conversion of in-situ materials to saleable products by major minerals category at December 31, 2022.
All mineral rights are owned by the Company. 28 Operating Statistics The following table sets forth the tons usage for the fiscal years 2023, 2022 and 2021 by major mineral category. 2023 2022 2021 Tons (000s) Tons (000s) Tons (000s) Limestone Adams, MA 401 315 355 Canaan, CT 641 562 522 Lucerne Valley, CA 1,267 1,202 1,250 Pima County, AZ 101 114 166 Total Limestone 2,410 2,193 2,293 Sodium Bentonite Australia 39 69 118 Belle/Colony, WY/SD 1,253 1,109 1,177 Lovell, WY 681 629 629 Total Sodium Bentonite 1,973 1,807 1,924 Calcium Bentonite Chao Yang, Liaoning, China 278 267 507 Nevada 1 1 1 Sandy Ridge, AL 96 98 77 Slovakia, Lutila 65 52 — Turkey, Enez 168 172 196 Turkey, Usak 60 62 51 Turkey, Unye 368 331 320 Total Calcium Bentonite 1,036 983 1,152 Leonardite Gascoyne, ND 75 31 51 GRAND TOTALS (1) 5,494 5,014 5,420 (1) The Company also has mined, beneficiated and processed talc through its Barretts Minerals Inc.
(3) Quantity of resources that would be owned if patent was granted. 31 The estimates of total reserves and resources noted in the tables above require the Company to make certain key assumptions.
See Note 17 to the consolidated financial statements. 31 The estimates of total reserves and resources noted in the tables above require the Company to make certain key assumptions.
The Bighorn Basin is a large sedimentary basin in northwestern Wyoming. It is Laramide in age and style and trends northwest-southeast. The bentonite clay in the Bighorn Basin is predominantly of the sodium type.
The area operates under 2 mining permits covering ~30,000 acres, with active mining and future mineral reserves located within 30 miles of the Lovell processing facilities. The Bighorn Basin is a large sedimentary basin in northwestern Wyoming. It is Laramide in age and style and trends northwest-southeast. The bentonite clay in the Bighorn Basin is predominantly of the sodium type.
Total Resources (1)(2) Tons (000s) Measured Resources (1)(2) Tons (000s) Indicated Resources (1)(2) Tons (000s) Measured and Indicated (1)(2) Resources Tons (000s) Inferred (1)(2) Resources Tons (000s) Owned Unpatented (3) Leased Limestone Adams, MA 12,555 1,891 14,446 583 15,029 — — Canaan, CT 30,996 25,460 56,456 3,674 60,130 — — Lucerne Valley, CA 61,014 31,874 92,888 7,247 100,135 — — Pima County, AZ — — — — — — — Total Limestone 104,565 59,225 163,790 11,504 175,294 — — 100 % 0 % 0 % Talc Dillon, MT 955 1,231 2,186 1,077 2,628 — 635 81 % 0 % 19 % Sodium Bentonite Australia — 1,206 1,206 — — — 1,206 Belle/Colony, WY/SD 8,818 6,977 15,794 94 556 8,141 7,193 Lovell, WY 410 57 467 3,146 1,076 2,410 127 Other SD, WY, MT 4,612 — 4,612 11,030 — 15,642 — Total Sodium Bentonite 13,840 8,240 22,079 14,270 1,631 26,193 8,526 5 % 72 % 23 % Calcium Bentonite Chao Yang, Liaoning, China — 300 300 787 — — 1,087 Nevada — — — — — — — Sandy Ridge, AL 195 907 1,102 — — — 1,102 Slovakia, Lutila — 3,470 3,470 — — — 3,470 Turkey, Enez 750 — 750 1,192 — — 1,942 Turkey, Usak 449 — 449 — — — 449 Turkey, Unye — 1,320 1,320 21,000 — — 22,320 Total Calcium Bentonite 1,394 5,997 7,391 22,979 — — 30,370 0 % 0 % 100 % Leonardite Gascoyne, ND 1,435 — 1,435 790 — — 2,225 0 % 0 % 100 % Chromite South Africa 800 584 1,384 7,093 — — 8,477 0 % 0 % 100 % Other Nevada — 2,997 2,997 3,031 — 6,028 — 0 % 100 % 0 % GRAND TOTALS 122,989 78,274 201,262 60,744 179,553 32,221 50,233 69 % 12 % 19 % (1) Certain definitions: The term " mineral resource" indicates a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
Total Resources (1)(2) Tons (000s) Measured Resources (1)(2) Tons (000s) Indicated Resources (1)(2) Tons (000s) Measured and Indicated (1)(2) Resources Tons (000s) Inferred (1)(2) Resources Tons (000s) Owned Unpatented (3) Leased Limestone Adams, MA 12,071 1,664 13,735 579 14,314 — — Canaan, CT 30,647 25,234 55,881 3,639 59,520 — — Lucerne Valley, CA 59,582 31,562 91,144 7,214 98,358 — — Pima County, AZ 7,142 — 7,142 — — 7,142 — Total Limestone 109,442 58,460 167,902 11,432 172,192 7,142 — 96 % 4 % 0 % Sodium Bentonite Australia — 1,201 1,201 — — — 1,201 Belle/Colony, WY/SD 8,818 6,902 15,720 94 556 8,137 7,121 Lovell, WY 410 57 467 2,952 1,076 2,217 127 Other SD, WY, MT 4,612 — 4,612 11,030 — 15,642 — Total Sodium Bentonite 13,840 8,160 22,000 14,076 1,632 25,996 8,449 5 % 72 % 23 % Calcium Bentonite Chao Yang, Liaoning, China — 300 300 687 — — 987 Nevada — — — — — — — Sandy Ridge, AL 195 — 195 — — — 195 Slovakia, Lutila — 3,470 3,470 — — — 3,470 Turkey, Enez 350 — 350 1,192 — — 1,542 Turkey, Usak 450 — 450 — — — 450 Turkey, Unye — 1,320 1,320 21,000 — — 22,320 Total Calcium Bentonite 995 5,090 6,085 22,879 — — 28,964 0 % 0 % 100 % Leonardite Gascoyne, ND 1,435 — 1,435 790 — — 2,225 0 % 0 % 100 % Chromite South Africa 800 584 1,384 7,093 — — 8,477 0 % 0 % 100 % Other Nevada — 2,997 2,997 3,031 — 6,028 — 0 % 100 % 0 % GRAND TOTALS (4) 126,512 75,291 201,803 59,301 173,824 39,166 48,115 67 % 15 % 18 % (1) Certain definitions: The term “ mineral resource” indicates a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction.
At current usage levels, the Company has reserves in excess of 30 years at its limestone production facilities and in excess of 11 years at the Company's subsidiary Barretts Minerals Inc.'s talc production facility. The Company has ongoing exploration and development activities for all of its mineral interests with the intent to increase its proven and probable reserves.
The Company has ongoing exploration and development activities for all of its mineral interests with the intent to increase its proven and probable reserves.
The open-pit mine consists mainly of a mineral deposit of dolomitic limestone. The mined dolomite is finely pulverized at the processing facility using a variety of crushing and milling equipment. This resulting Ground Calcium Carbonate (GCC) is primarily used by high-end, high volume construction supply markets in joint compound, floor coverings, asphalt roofing shingles and glass.
The resulting Ground Calcium Carbonate (GCC) is primarily used by high-end, high-volume construction markets in joint compound, floor coverings, asphalt roofing shingles and glass.
Proven and Probable Reserves (1)(2) Tons (000s) Proven Reserves (1)(2) Tons (000s) Probable Reserves (1)(2) Tons (000s) Conversion Factor (%) Owned Unpatented (3) Leased Limestone Adams, MA 7,178 1,081 57 % 8,259 — — Canaan, CT 13,742 4,021 89 % 17,763 — — Lucerne Valley, CA 30,088 9,198 95 % 39,286 — — Pima County, AZ 7,243 — 90 % — 7,243 — Total Limestone 58,251 14,300 65,308 7,243 — 90 % 10 % 0 % Talc Dillon, MT 711 804 65 % 1,109 — 405 73 % 0 % 27 % Sodium Bentonite Australia — 910 80 % — — 910 Belle/Colony, WY/SD 31,942 24,105 77 % 3,135 11,887 41,025 Lovell, WY 31,645 2,486 87 % 15,242 14,715 4,174 Other SD, WY, MT 43,117 29,714 77 % 54,815 15,048 2,968 Total Sodium Bentonite 106,704 57,215 73,192 41,650 49,077 45 % 25 % 30 % Calcium Bentonite Chao Yang, Liaoning, China — 557 78 % — — 557 Nevada — 1,056 75 % 1,012 44 — Sandy Ridge, AL 4,492 2,009 75 % 1,839 — 4,662 Slovakia, Lutila 4,308 395 75 % — — 4,703 Turkey, Enez 196 1,860 78 % — — 2,056 Turkey, Usak 523 498 43 % — — 1,021 Turkey, Unye 212 5,597 80 % — — 5,809 Total Calcium Bentonite 9,731 11,972 2,851 44 18,808 13 % — 87 % Leonardite Gascoyne, ND 120 2,312 67 % — 2,312 120 0 % 95 % 5 % Chromite South Africa 2,465 649 75 % — — 3,114 0 % 0 % 100 % GRAND TOTALS 177,982 87,252 142,460 51,249 71,524 54 % 19 % 27 % (1) Certain definitions: The term "mineral reserve" represents an estimate of tonnage and grade or quality of indicated and measured mineral resources that can be the basis of an economically viable project.
Proven and Probable Reserves (1)(2) Tons (000s) Proven Reserves (1)(2) Tons (000s) Probable Reserves (1)(2) Tons (000s) Conversion Factor (%) Owned Unpatented (3) Leased Limestone Adams, MA 6,754 931 56 % 7,685 — — Canaan, CT 14,533 4,152 97 % 18,685 — — Lucerne Valley, CA 27,039 8,348 94 % 35,387 — — Pima County, AZ 6,428 — 90 % — 6,428 — Total Limestone 54,754 13,431 61,757 6,428 — 91 % 9 % 0 % Sodium Bentonite Australia — 909 80 % — — 909 Belle/Colony, WY/SD 30,704 24,105 77 % 3,135 11,869 39,805 Lovell, WY 30,729 3,926 87 % 15,242 15,239 4,174 Other SD, WY, MT 43,117 29,714 77 % 54,815 15,048 2,968 Total Sodium Bentonite 104,550 58,654 73,192 42,156 47,856 45 % 26 % 29 % Calcium Bentonite Chao Yang, Liaoning, China — 379 78 % — — 379 Nevada — 1,055 75 % 1,011 44 — Sandy Ridge, AL 4,396 2,009 75 % 1,839 — 4,566 Slovakia, Lutila 4,243 395 84 % — — 4,638 Turkey, Enez 626 1,888 78 % — — 2,514 Turkey, Usak 463 500 43 % — — 963 Turkey, Unye 257 5,597 80 % — — 5,854 Total Calcium Bentonite 9,985 11,823 2,850 44 18,914 13 % — 87 % Leonardite Gascoyne, ND 120 2,237 67 % — 2,237 120 0 % 95 % 5 % Chromite South Africa 2,113 1,001 75 % — — 3,114 0 % 0 % 100 % GRAND TOTALS (4) 171,522 87,146 137,799 50,865 70,004 53 % 20 % 27 % (1) Certain definitions: The term “mineral reserve” represents an estimate of tonnage and grade or quality of indicated and measured mineral resources that can be the basis of an economically viable project.
Canaan, Connecticut Mine The Canaan mine and the associated processing facility is located in the town of North Canaan, Connecticut and consists of approximately 208 total net acres. The mine is situated between Canaan Mountain to the South and Lower Road to the North. The mine is located approximately 1.0 miles south of the main processing facility.
The mine is situated between Canaan Mountain to the South and Lower Road to the North. The mine is located approximately 1.0 miles south of the main processing facility. The open-pit mine consists mainly of dolomitic limestone. The mined dolomite is finely pulverized at the processing facility using a variety of crushing and milling equipment.
Current mine life is 18 years based on 6 million tons of proven and probable reserves, with additional potential of 18 million tons of identified reserves. Ore from the mines is transported by truck to a processing facility in the town of Unye where it is stockpiled, dried, and converted to granular products.
Ore from the mines is transported by truck to a processing facility in the town of Unye where it is stockpiled, dried, and converted to granular products. Dongming, China Mines The Company’s Dongming mines and processing facilities are located in Jianping county, Liaoning province, China.
The Lovell processing facility is supported by bentonite clay supplied from 35 million tons of proven and probable reserves, comprised of leases (12%), unpatented claims (40%), and owned properties (48%). The area operates under 2 mining permits covering ~30,000 acres, with active mining and future mineral reserves located within 30 miles of the Lovell processing facilities.
One facility produces powder and granular bentonite products; the other facility produces geosynthetic clay liners and other environmental products. Both facilities have direct access to rail. The Lovell processing facility is supported by bentonite clay supplied from 35 million tons of proven and probable reserves, comprised of leases (12%), unpatented claims (44%), and owned properties (44%).
(2) Mineral reserves estimates were calculated and prepared by the Company's in-house technical staff. (3) Quantity of reserves that would be owned if patent was granted. 30 Measured, Indicated and Inferred Resources The following table sets forth the Company’s measured, indicated and inferred resources by major minerals category at December 31, 2022.
(2) Mineral reserves estimates were calculated and prepared by the Company’s in-house technical staff. (3) Quantity of reserves that would be owned if patent was granted. (4) The Company also has talc reserves through its Barretts Minerals Inc. (“BMI”) subsidiary. In the fourth quarter of 2023, BMI filed a voluntary petition for relief under Chapter 11 of the U.S.
Claire Administrative Office PCC/Monolithic Refractories Specialty Minerals; Refractories Canada, St.
Claire Administrative Office Specialty Additives/High-Temperature Technologies All Segments Canada, St.
Both facilities have direct access to rail. Ünye, Turkey Mines The Company's Unye-area mines, Nadirli and Konan, are located southwest of the town of Unye, Turkey on the southern coast of the Black Sea. These mines are operated by the Company via contract mining and hauling. Both mines use conventional open-pit truck and shovel mining methods.
Annual exploration and permitting activities target the replacement of the number of tons mined to support the long-term sustainability of local operations. Ünye, Turkey Mines The Company’s Unye-area mines, Nadirli and Konan, are located southwest of the town of Unye, Turkey on the southern coast of the Black Sea.
Removed
The Company generally owns and surface mines these reserves and processes its products at nearby processing plants.
Added
The bentonite ore is notable for its high brightness. Current mine life is 18 years based on 6 million tons of proven and probable reserves, with additional potential of 18 million tons of identified reserves.
Removed
The Lovell area mines are supported by 2 processing facilities located 3 miles East of Lovell, WY. One facility produces powder and granular bentonite products; the other facility produces geosynthetic clay liners and other environmental products.
Added
(“BMI”) subsidiary. In the fourth quarter of 2023, BMI filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code, and BMI was deconsolidated from our consolidated financial statements.
Removed
Dillon, Montana Mines The Barretts talc operations consist of two operating mines, the Regal mine and the Treasure mine, and an inactive mining property, the Smith-Dillon mine, all located in the Ruby Range mountains east of Dillon, Montana. Refining and processing plant operations are in Barretts, Beaverhead County, Montana, 8 miles south of Dillon, Montana.
Added
See Note 17 to the consolidated financial statements. 29 Proven and Probable Reserves The following table sets forth the Company’s proven and probable reserves, as well as, the conversion factor for the conversion of in-situ materials to saleable products by major minerals category at December 31, 2023.
Removed
In November 2020, the Company began a major stripping campaign at the Regal mine for development of the Imperial deposit. Stripping was completed by a contractor during 2021 and mining has resumed with in-house Company mining crews. Drilling programs during 2015-2018 at the Treasure mine defined new mine resources in the Treasure Island deposit.
Added
Bankruptcy Code, and BMI was deconsolidated from our consolidated financial statements. See Note 17 to the consolidated financial statements. 30 Measured, Indicated and Inferred Resources The following table sets forth the Company’s measured, indicated and inferred resources by major minerals category at December 31, 2023.
Removed
Mine exploration activities are ongoing with work at both operating mines and the inactive Smith-Dillon mine. Ore is mined by conventional open pit mining methods with ore selectively mined and stockpiled on ore pads at the mine sites. A contract trucking company transports ore from the mines to the processing plant year-round.
Added
(4) The Company also has talc reserves through its Barretts Minerals Inc. (“BMI”) subsidiary. In the fourth quarter of 2023, BMI filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code, and BMI was deconsolidated from our consolidated financial statements.
Removed
Both mining locations are fully supported by local power utilities with dedicated power lines to the sites.
Removed
The Company's lands, including the Regal and Treasure mines, Barretts plant site, and related properties held for exploration and development, consist of approximately 2,556 net acres, which encompasses 129 unpatented lode mining claims, appropriating approximately 2,008 net acres of Public Land, 27 patented lode claims, consisting of approximately 187 acres, 219 acres of mineral rights in split reservation, and approximately 93 acres of additional real property. 28 At these mines, talc mineralization is hosted in highly deformed Archean aged dolomitic marbles of the Cherry Creek group of metasedimentary rocks.
Removed
Deposits are segregated into several different grades based on mineral impurities of dolomite, calcite, chlorite, graphite, and various iron oxide minerals.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

5 edited+1 added−0 removed13 unchanged
Biggest changeMonagle III was named Group President, Specialty Minerals, Household and Personal care in January 2023. Prior to that he was Group President, Specialty Minerals and Refractories effective March 2017 and Senior Vice President, Chief Operating Officer – Specialty Minerals Inc. and Minteq Group, effective February 2014.
Biggest changePrior to that he was Group President, Specialty Minerals and Refractories effective March 2017 and Senior Vice President, Chief Operating Officer – Specialty Minerals Inc. and Minteq Group, effective February 2014.
He joined the Company in 2008 managing all legal aspects of the organization and providing legal support to all corporate functions, as well as, commercial, environmental/regulatory and supply chain activities. Mr. Jordan possesses global expertise in designing, negotiating and implementing complex packages inclusive of joint venture, long-term manufacturing/supply, sourcing, construction, real estate and technology licensing agreements. D.J.
He joined the Company in 2008 managing all legal aspects of the organization and providing legal support to all corporate functions, as well as, commercial, environmental/regulatory and supply chain activities. Mr. Jordan possesses global expertise in designing, negotiating and implementing complex packages inclusive of joint venture, long-term manufacturing/supply, sourcing, construction, real estate and technology licensing agreements.
Aldag has led finance teams in the U.S. and internationally in companies serving both consumer and industrial markets, as Finance Director of The Chia Co., and in various positions at Alcoa Inc. Brett Argirakis was named Group President, Performance Materials and Refractories in January 2023.
Aldag has led finance teams in the U.S. and internationally in companies serving both consumer and industrial markets, as Finance Director of The Chia Co., and in various positions at Alcoa Inc. Brett Argirakis was named Group President, Engineered Solutions in January 2023.
Hastings 60 Senior Vice President, Strategy and M&A Timothy J. Jordan 48 Vice President, General Counsel, Secretary and Chief Compliance Officer D.J. Monagle, III 60 Group President, Specialty Minerals and Household and Personal Care 32 Douglas T. Dietrich was elected Chairman of the Board in March 2021. He has served as the Chief Executive Officer since December 2016.
Hastings 61 Senior Vice President, Strategy and M&A Timothy J. Jordan 49 Vice President, General Counsel, Secretary and Chief Compliance Officer D.J. Monagle, III 61 Group President, Consumer & Specialties 32 Douglas T. Dietrich was elected Chairman of the Board in March 2021. He has served as the Chief Executive Officer since December 2016.
Dietrich 53 Chairman of the Board and Chief Executive Officer Erik C. Aldag 40 Senior Vice President, Finance and Treasury, and Chief Financial Officer Brett Argirakis 58 Group President, Performance Materials and Refractories Michael A. Cipolla 65 Vice President, Corporate Controller and Chief Accounting Officer Erin N. Cutler 35 Vice President, Human Resources Jonathan J.
Dietrich 54 Chairman of the Board and Chief Executive Officer Erik C. Aldag 39 Senior Vice President, Finance and Treasury, and Chief Financial Officer Brett Argirakis 59 Group President, Engineered Solutions Michael A. Cipolla 66 Vice President, Corporate Controller and Chief Accounting Officer Erin N. Cutler 36 Vice President, Human Resources Jonathan J.
Added
Prior to his tenure at the Company, Mr. Jordan specialized in cross-border transactions as an antitrust/M&A specialist for law firms in the EMEA region. D.J. Monagle III was named Group President, Consumer & Specialties in January 2023.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+3 added−1 removed0 unchanged
Biggest changeIssuer Purchases of Equity Securities On October 20, 2021, the Company's Board of Directors authorized the Company's management to repurchase, at its discretion, up to $75 million of the Company's shares over a one-year period. There were no share repurchases under this program in the fourth quarter of 2022.
Biggest changeIssuer Purchases of Equity Securities Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Publicly Announced Program Dollar Value of Shares that May Yet be Purchased Under the Program October 18 - October 29 — $ — — 75,000,000 October 30 - November 26 118,360 $ 59.14 118,360 68,000,122 November 27 - December 31 109,767 $ 65.58 228,127 60,801,616 Total 228,127 $ 62.24 On October 18, 2023, the Company’s Board of Directors authorized the Company’s management to repurchase, at its discretion, up to $75 million of the Company’s shares over a one-year period.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The Company's common stock is traded on the New York Stock Exchange under the symbol "MTX". Holders On February 3, 2023 there were approximately 186 holders of record of the common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information The Company’s common stock is traded on the New York Stock Exchange under the symbol “MTX”. Holders On February 5, 2024 there were approximately 184 holders of record of the common stock.
This program is now complete. 34 Performance Graph The graph below compares Minerals Technologies Inc.'s cumulative 5-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector.
As of December 31, 2023, 228,127 shares have been repurchased under this program for $14.2 million, or an average price of approximately $62.24 per share. 34 Performance Graph The graph below compares Minerals Technologies Inc.’s cumulative 5-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, the S&P MidCap 400 Materials Sector, the S&P SmallCap 600, and the Russell 2000.
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2021 to 12/31/2022. 2021 2022 Minerals Technologies Inc. $ 100.00 $ 83.27 S&P 500 100.00 81.89 S&P Midcap 400 100.00 86.94 Dow Jones US Industrials 100.00 85.96 Dow Jones US Basic Materials 100.00 92.43 S&P MidCap 400 Materials Sector 100.00 97.27 37 Item 6. [Reserved]
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2022 to 12/31/2023. 2022 2023 Minerals Technologies Inc. $ 100.00 $ 117.96 S&P 500 100.00 126.29 S&P Midcap 400 100.00 116.44 Dow Jones US Industrials 100.00 119.75 Dow Jones US Basic Materials 100.00 111.01 S&P MidCap 400 Materials Sector 100.00 116.53 S&P SmallCap 600 100.00 116.05 Russell 2000 100.00 116.93 To better align with comparable investment opportunities, we are transitioning from the S&P 500 index, the Dow Jones US Industrials index, and the S&P Midcap 400 index to the S&P SmallCap 600 Index and Russell 2000 Index for the year ended December 31, 2023.
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2019 to 12/31/2022. 2019 2020 2021 2022 Minerals Technologies Inc. $ 100.00 $ 108.19 $ 127.74 $ 106.37 S&P 500 100.00 118.40 152.39 124.79 S&P Midcap 400 100.00 113.66 141.80 123.28 Dow Jones US Industrials 100.00 117.92 139.58 119.98 Dow Jones US Basic Materials 100.00 118.32 151.20 139.75 S&P MidCap 400 Materials Sector 100.00 110.65 146.30 142.31 36 The graph below compares Minerals Technologies Inc.'s cumulative 1-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector.
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2020 to 12/31/2023. 2020 2021 2022 2023 Minerals Technologies Inc. $ 100.00 $ 118.07 $ 98.31 $ 115.97 S&P 500 100.00 128.71 105.40 133.10 S&P Midcap 400 100.00 124.76 108.47 126.29 Dow Jones US Industrials 100.00 118.37 101.75 121.85 Dow Jones US Basic Materials 100.00 127.78 118.11 131.12 S&P MidCap 400 Materials Sector 100.00 132.23 128.61 149.88 S&P SmallCap 600 100.00 126.82 106.40 123.48 Russell 2000 100.00 114.82 91.35 106.82 To better align with comparable investment opportunities, we are transitioning from the S&P 500 index, the Dow Jones US Industrials index, and the S&P Midcap 400 index to the S&P SmallCap 600 Index and Russell 2000 Index for the year ended December 31, 2023.
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2017 to 12/31/2022. 2017 2018 2019 2020 2021 2022 Minerals Technologies Inc. $ 100.00 $ 74.79 $ 84.27 $ 91.18 $ 107.65 $ 89.64 S&P 500 100.00 95.62 125.72 148.85 191.58 156.89 S&P Midcap 400 100.00 88.92 112.21 127.54 159.12 138.34 Dow Jones US Industrials 100.00 88.74 117.86 138.99 164.52 141.41 Dow Jones US Basic Materials 100.00 83.83 100.39 118.78 151.78 140.30 S&P MidCap 400 Materials Sector 100.00 79.63 96.25 106.50 140.82 136.97 35 The graph below compares Minerals Technologies Inc.'s cumulative 3-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, and the S&P MidCap 400 Materials Sector.
The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of all dividends) from 12/31/2018 to 12/31/2023. 2018 2019 2020 2021 2022 2023 Minerals Technologies Inc. $ 100.00 $ 112.68 $ 121.91 $ 143.93 $ 119.85 $ 141.38 S&P 500 100.00 131.49 155.68 200.37 164.08 207.21 S&P Midcap 400 100.00 126.20 143.44 178.95 155.58 181.15 Dow Jones US Industrials 100.00 132.81 156.62 185.39 159.35 190.83 Dow Jones US Basic Materials 100.00 119.76 141.70 181.07 167.36 185.79 S&P MidCap 400 Materials Sector 100.00 120.88 133.75 176.85 172.02 200.45 S&P SmallCap 600 100.00 122.78 136.64 173.29 145.39 168.73 Russell 2000 100.00 125.52 150.58 172.90 137.56 160.85 To better align with comparable investment opportunities, we are transitioning from the S&P 500 index, the Dow Jones US Industrials index, and the S&P Midcap 400 index to the S&P SmallCap 600 Index and Russell 2000 Index for the year ended December 31, 2023.
Removed
Over this program's one-year period, 1,027,768 shares were repurchased for $67.8 million, or an average price of approximately $65.99 per share.
Added
All indices are presented, in accordance with SEC rules, which require that if a company selects a different index from that used in the immediately preceding fiscal year, the company’s stock performance must be compared against both the newly selected index and previous index in the year of change. 35 The graph below compares Minerals Technologies Inc.’s cumulative 3-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, the S&P MidCap 400 Materials Sector, the S&P SmallCap 600, and the Russell 2000.
Added
All indices are presented, in accordance with SEC rules, which require that if a company selects a different index from that used in the immediately preceding fiscal year, the company’s stock performance must be compared against both the newly selected index and previous index in the year of change. 36 The graph below compares Minerals Technologies Inc.’s cumulative 1-year total shareholder return on common stock with the cumulative total returns of the S&P 500 index, the Dow Jones US Industrials index, the S&P Midcap 400 index, the Dow Jones US Basic Materials index, the S&P MidCap 400 Materials Sector, the S&P SmallCap 600, and the Russell 2000.
Added
All indices are presented, in accordance with SEC rules, which require that if a company selects a different index from that used in the immediately preceding fiscal year, the company’s stock performance must be compared against both the newly selected index and previous index in the year of change. 37 Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

74 edited+41 added−36 removed45 unchanged
Biggest changeOur intention is to maintain a balanced approach to capital deployment, by using cash flow for investments in growth and continued debt reduction. 38 Outlook The Company will continue to focus on innovation and new product development and other opportunities for sales growth in 2023 from its existing businesses, as follows: ● Increase our presence and gain penetration of our bentonite-based foundry customers for the Metalcasting industry in emerging markets, such as China and India. ● Increase our presence and market share in global pet care products, particularly in emerging markets. ● Deploy new products in pet care such as lightweight litter. ● Increase our presence and market share in Asia and in the global powdered detergent market. ● Continue the development of our FLUORO-SORB ® products which remediate contamination of Per-and polyflouroalkyl substances (PFAS) and Perflourooctane sulfanate (PFOS). ● Pursue opportunities for our products in environmental and building and construction markets in the Middle East, Asia Pacific and South America regions. ● Increase our presence and market share for geosynthetic clay liners within the Environmental Products product line. ● Continue the development of our proprietary products for agricultural applications worldwide. ● Develop multiple high-filler technologies under the FulFill ® platform of products, to increase the fill rate in freesheet paper and continue to progress with commercial discussions and full-scale paper machine trials. ● Develop products and processes for waste management and recycling opportunities to reduce the environmental impact of the paper mill, reduce energy consumption and improve the sustainability of the papermaking process, including our NewYield ® and ENVIROFIL ® products. ● Further penetration into the packaging segment of the paper industry. ● Increase our sales of PCC for paper by further penetration of the markets for paper filling at both freesheet and groundwood mills, particularly in emerging markets. ● Expand the Company’s PCC coating product line using the satellite model. ● Promote the Company’s expertise in crystal engineering, especially in helping papermakers customize PCC morphologies for specific paper applications. ● Expand PCC produced for paper filling applications by working with industry partners to develop new methods to increase the ratio of PCC for fiber substitutions. ● Develop unique mineral products used in the manufacture of novel biopolymers, a new market opportunity. ● Deploy new mineral products in paint, coating and packaging applications. ● Deploy value-added formulations of refractory materials that not only reduce costs but improve performance. ● Deploy our laser measurement technologies into new applications. ● Expand our refractory maintenance model to other steel makers globally. ● Deploy operational excellence principles into all aspects of the organization, including system infrastructure and lean principles. ● Continue to explore selective acquisitions to fit our core competencies in minerals and fine particle technology.
Biggest changeOur intention is to maintain a balanced approach to capital deployment, by using cash flow for investments in growth and continued debt reduction. 38 Outlook The Company will continue to focus on innovation and new product development and other opportunities for sales growth in 2024 from its existing businesses, as follows: Consumer & Specialties Segment ● Increase our presence and market share in global pet litter products, particularly in emerging markets. ● Deploy new products in pet care such as lightweight litter. ● Increase our sales of calcium carbonate products by further penetration into filling and coating applications in the paper and packaging markets. ● Promote the Company’s expertise in crystal engineering by developing crystal morphologies that help our customers achieve functional benefits. ● Deploy new calcium carbonate products in paint, coating and packaging applications. ● Continue developing products and processes for waste management and recycling opportunities to reduce the environmental impact for our customers by reducing energy consumption and improve the sustainability of their products. ● Continue to develop innovative applications for our bleaching earth products for edible oil and biofuel industries. ● Develop new mineral-based solutions for personal care applications. ● Increase our presence and market share in globally for retinol delivery technology for personal care applications. ● Expand our bentonite product solutions for animal health applications. ● Increase our presence and market share in fabric care, particularly in emerging markets.
Inflation While inflation historically has not had a material impact on the Company, our financial performance was affected in 2022, and could continue to be adversely affected by increases in energy and commodity prices. Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal.
Inflation While inflation historically has not had a material impact on the Company, our financial performance was affected in 2023, and could continue to be adversely affected by increases in energy and commodity prices. Our production processes consume a significant amount of energy, primarily electricity, diesel fuel, natural gas and coal.
In the fourth quarter of 2022, the Company performed a qualitative assessment of each of its reporting units and determined it was not more likely than not that the fair value of any of its reporting units was less than their carrying values. Property, plant and equipment are depreciated over their useful lives.
In the fourth quarter of 2023, the Company performed a qualitative assessment of each of its reporting units and determined it was not more likely than not that the fair value of any of its reporting units was less than their carrying values. Property, plant and equipment are depreciated over their useful lives.
The investment strategy for pension plan assets is to maintain a broadly diversified portfolio designed to both preserve and grow plan assets to meet future plan obligations. The Company's average rate of return on assets from inception through December 31, 2022 was approximately 9%.
The investment strategy for pension plan assets is to maintain a broadly diversified portfolio designed to both preserve and grow plan assets to meet future plan obligations. The Company’s average rate of return on assets from inception through December 31, 2023 was approximately 9%.
Cash flows provided from operations in 2022 were principally used to fund acquisitions and capital expenditures, repay debt, repurchase shares and to pay the Company's dividend to common shareholders. The Company’s intention is to use excess cash flow for investments in growth, continued debt reduction and selective share repurchases.
Cash flows provided from operations in 2023 were principally used to fund capital expenditures, repay debt, repurchase shares and to pay the Company’s dividend to common shareholders. The Company’s intention is to use excess cash flow for investments in growth, continued debt reduction and selective share repurchases.
The Company typically uses its available credit lines to fund working capital requirements or local capital spending needs. We anticipate that capital expenditures for 2023 should be between $80 million and $90 million, principally related to opportunities to improve our operations and meet our strategic growth objectives.
The Company typically uses its available credit lines to fund working capital requirements or local capital spending needs. We anticipate that capital expenditures for 2024 should be between $90 million and $100 million, principally related to opportunities to improve our operations and meet our strategic growth objectives.
Loans under the Senior Secured Credit Facilities will bear interest at a rate equal to, at the election of the Company, Term SOFR plus a credit spread adjustment equal to 0.100% plus an applicable margin equal to 1.500% per annum or a base rate plus an applicable margin equal to 0.500% per annum, subject in each case to (a) an increase of 25 basis points in the event that, and for so long as, the net leverage ratio (as defined in the Amended Credit Agreement) is greater than or equal to 3.00 to 1.00 as of the last day of the preceding fiscal quarter, (b) a decrease of 12.5 basis points in the event that, and for so long as, the net leverage ratio is less than 2.00 to 1.00 and greater than or equal to 1.00 to 1.00 as of the last day of the preceding fiscal quarter and (c) an decrease of 25 basis points in the event that, and for so long as, the net leverage ratio is less than 1.00 to 1.00 as of the last day of the preceding fiscal quarter.
All lenders under the previous facility were repaid in full. 44 Loans under the Senior Secured Credit Facilities will bear interest at a rate equal to, at the election of the Company, Term SOFR plus a credit spread adjustment equal to 0.100% plus an applicable margin equal to 1.500% per annum or a base rate plus an applicable margin equal to 0.500% per annum, subject in each case to (a) an increase of 25 basis points in the event that, and for so long as, the net leverage ratio (as defined in the Amended Credit Agreement) is greater than or equal to 3.00 to 1.00 as of the last day of the preceding fiscal quarter, (b) a decrease of 12.5 basis points in the event that, and for so long as, the net leverage ratio is less than 2.00 to 1.00 and greater than or equal to 1.00 to 1.00 as of the last day of the preceding fiscal quarter and (c) an decrease of 25 basis points in the event that, and for so long as, the net leverage ratio is less than 1.00 to 1.00 as of the last day of the preceding fiscal quarter.
The Company has elected, as its accounting policy, to treat the taxes due from GILTI as a current period expense when incurred. The net charge to the Company for GILTI was $3.5 million, $1.2 million and $0.6 million for 2022, 2021 and 2020, respectively.
The Company has elected, as its accounting policy, to treat the taxes due from GILTI as a current period expense when incurred. The net charge to the Company for GILTI was $1.1 million, $3.5 million and $1.2 million for 2023, 2022 and 2021, respectively.
Differences between the actual and expected returns are also recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as actuarial gains and losses. At the end of 2022, total actuarial losses recognized in Accumulated other comprehensive income (loss) for pension plans were ($38.1) million as compared to ($73.3) million in 2021.
Differences between the actual and expected returns are also recognized in Accumulated other comprehensive income (loss) and subsequently amortized into earnings as actuarial gains and losses. At the end of 2023, total actuarial losses recognized in Accumulated other comprehensive loss for pension plans were $32.1 million as compared to $38.1 million in 2022.
At the end of 2022, the average remaining service period of active employees or life expectancy for fully eligible employees was 9 years. For a detailed discussion on the application of these and other accounting policies, see "Summary of Significant Accounting Policies" in Note 1 to the Consolidated Financial Statements.
At the end of 2023, the average remaining service period of active employees or life expectancy for fully eligible employees was 9 years. For a detailed discussion on the application of these and other accounting policies, see “Summary of Significant Accounting Policies” in Note 1 to the Consolidated Financial Statements.
Marketing and administrative costs as a percentage of net sales were 9.0% in 2022, 10.0% in 2021 and 11.1% in 2020. Research and development expenses were $20.4 million, $19.5 million and $19.9 million in 2022, 2021 and 2020, respectively. Research and development expenses as a percentage of net sales were 1.0% in 2022, 1.0% in 2021 and 1.2% in 2020.
Marketing and administrative costs as a percentage of net sales were 9.5% in 2023, 9.0% in 2022 and 10.0% in 2021. Research and development expenses were $21.2 million, $20.4 million and $19.5 million in 2023, 2022 and 2021, respectively. Research and development expenses as a percentage of net sales were 1.0% in 2023, 1.0% in 2022 and 1.0% in 2021.
These sources of income inherently rely heavily on estimates. We use our historical experience and business forecasts to provide insight. The amount recorded for the net deferred tax liability was $156.0 million and $165.1 million at December 31, 2022 and 2021, respectively. The application of income tax law is inherently complex.
These sources of income inherently rely heavily on estimates. We use our historical experience and business forecasts to provide insight. The amount recorded for the net deferred tax liability was $123.3 million and $156.0 million at December 31, 2023 and 2022, respectively. The application of income tax law is inherently complex.
We expect to meet our other long-term financing requirements from internally generated funds, committed and uncommitted bank credit lines and, where appropriate, project financing of certain satellite plants. During the second quarter of 2018, the Company entered into a floating to fixed interest rate swap for a notional amount of $150 million.
We expect to meet our other long-term financing requirements from internally generated funds, committed and uncommitted bank credit lines and, where appropriate, project financing of certain satellite plants. 45 During the second quarter of 2018, the Company entered into a floating to fixed interest rate swap for a notional amount of $150 million. This instrument matured in May 2023.
As part of the Concept Pet acquisition, the Company assumed $1.9 million in long-term debt, recorded at fair value, consisting of two terms loans, one that matures in 2025 and one that matures in 2027. Both loans have annual payments and carry a variable interest rate.
The Company repaid $0.5 million on these loans in 2023. As part of the Concept Pet acquisition, the Company assumed $1.9 million in long-term debt, recorded at fair value, consisting of two terms loans, one that matures in 2025 and one that matures in 2027. Both loans have annual payments and carry a variable interest rate.
Percentage depletion allowances (tax deductions for depletion that may exceed our tax basis in our mineral reserves) are available to us under the income tax laws of the United States for operations conducted in the United States. The tax benefits from percentage depletion were $9.6 million in 2022, $10.9 million in 2021 and $8.5 million in 2020.
Percentage depletion allowances (tax deductions for depletion that may exceed our tax basis in our mineral reserves) are available to us under the income tax laws of the United States for operations conducted in the United States. The tax benefits from percentage depletion were $11.1 million in 2023, $9.6 million in 2022 and $10.9 million in 2021.
Beginning on July 1, 2023, the Company may redeem some or all of the Notes at any time and from time to time at the applicable redemption prices listed in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.
The Company may redeem some or all of the Notes at any time and from time to time at the applicable redemption prices listed in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.
In 2022, the Company recorded $32.6 million of litigation costs relating to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with certain talc products from the Company's Barretts Minerals Inc. subsidiary. In addition, the Company recorded a $5.1 million charge for acquisition related transaction and integration costs .
In 2022 , the Company recorded $32.6 million of litigation expenses relating to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with certain talc products from BMI. In addition, the Company recorded a $ 5.1 million charge for acquisition related transaction and integration costs.
All recently issued ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position and results of operations.
The majority of the actuarial losses were due to decreases in the discount rate and lower actual rates of return on assets than expected during the financial crisis of 2008. A net gain of $46.3 million ($35.3 million after-tax) primarily due to actuarial gains, driven by a change in discount rates is included in other comprehensive income in 2022.
The majority of the actuarial losses were due to decreases in the discount rate and lower actual rates of return on assets than expected during the financial crisis of 2008. 48 A net gain of $7.6 million ($5.6 million after-tax) primarily due to actuarial gains, driven by a change in discount rates is included in other comprehensive income in 2023.
Production margin decreased in 2022 primarily due to timing of pricing actions relative to higher inflationary costs, including energy and other manufacturing costs as well as supply chain and logistics challenges. Marketing and administrative costs were $192.1 million, $186.2 million and $176.5 million in 2022, 2021 and 2020, respectively.
Production margin increased in 2023 primarily due to timing of pricing actions relative to higher inflationary costs, including energy and other manufacturing costs as well as supply chain and logistics challenges. Marketing and administrative costs were $206.0 million, $192.1 million and $186.2 million in 2023, 2022 and 2021, respectively.
In the third quarter of 2022, the Company recorded $6.9 million in non-cash debt extinguishment expenses related to the refinancing of our credit facilities, which represents the difference between the redemption payment and the carrying value of the debt at the refinancing date. All lenders under the previous facility were repaid in full.
In the third quarter of 2022, the Company recorded $6.9 million in non-cash debt extinguishment expenses related to the refinancing of our credit facilities, which represents the difference between the redemption payment and the carrying value of the debt at the refinancing date.
The Company currently has more than $400 million of available liquidity, including cash on hand, as well as availability under its revolving credit facility. We believe these factors will allow us to meet our anticipated funding requirements.
Cash flow from operations for 2023 was $233.6 million. The Company currently has more than $500 million of available liquidity, including cash on hand, as well as availability under its revolving credit facility. We believe these factors will allow us to meet our anticipated funding requirements.
However, there can be no assurance that we will achieve success in implementing any one or more of these opportunities. 39 Results of Operations Consolidated Income Statement Review Year Ended December 31, (millions of dollars) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 Net sales $ 2,125.5 $ 1,858.3 $ 1,594.8 14.4 % 16.5 % Cost of sales 1,660.5 1,411.8 1,189.4 17.6 % 18.7 % Production margin 465.0 446.5 405.4 4.1 % 10.1 % Production margin % 21.9 % 24.0 % 25.4 % Marketing and administrative expenses 192.1 186.2 176.5 3.2 % 5.5 % Research and development expenses 20.4 19.5 19.9 4.6 % (2.0 )% Acquisition related transaction and integration costs 5.1 4.0 3.1 27.5 % 29.0 % Litigation costs 32.6 — 10.4 * * Restructuring and other items, net - 1.1 7.6 * (85.5 )% Income from operations 214.8 235.7 187.9 (8.9 )% 25.4 % Operating margin % 10.1 % 12.7 % 11.8 % Interest expense, net (43.9 ) (37.2 ) (38.2 ) 18.0 % (2.6 )% Debt extinguishment expenses (6.9 ) — — * * Non-cash pension settlement charge (3.5 ) (1.8 ) (6.4 ) 94.4 % (71.9 )% Other non-operating income (deductions), net (3.8 ) 5.6 (5.3 ) * * Total non-operating deductions, net (58.1 ) (33.4 ) (49.9 ) 74.0 % (33.1 )% Income before tax and equity in earnings 156.7 202.3 138.0 (22.5 )% 46.6 % Provision for taxes on income 32.1 36.6 24.4 (12.3 )% 50.0 % Effective tax rate 20.5 % 18.1 % 17.7 % Equity in earnings of affiliates, net of tax 1.7 2.8 2.2 (39.3 )% 27.3 % Consolidated net income 126.3 168.5 115.8 (25.0 )% 45.5 % Less: Net income attributable to non-controlling interests 4.1 4.1 3.4 0.0 % 20.6 % Net income attributable to Minerals Technologies Inc.
However, there can be no assurance that we will achieve success in implementing any one or more of these opportunities. 39 Results of Operations Consolidated Income Statement Review Year Ended December 31, (millions of dollars) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Net sales $ 2,169.9 $ 2,125.5 $ 1,858.3 2.1 % 14.4 % Cost of goods sold 1,662.8 1,660.5 1,411.8 0.1 % 17.6 % Production margin 507.1 465.0 446.5 9.1 % 4.1 % Production margin % 23.4 % 21.9 % 24.0 % Marketing and administrative expenses 206.0 192.1 186.2 7.2 % 3.2 % Research and development expenses 21.2 20.4 19.5 3.9 % 4.6 % Impairment of assets 71.7 — — * * Acquisition-related expenses 0.3 5.1 4.0 (94.1 )% 27.5 % Litigation expenses, net 29.2 32.6 — (10.4 )% * Restructuring and other items, net 6.9 — 1.1 * * Income from operations 171.8 214.8 235.7 (20.0 )% (8.9 )% Operating margin % 7.9 % 10.1 % 12.7 % Interest expense, net (59.2 ) (43.9 ) (37.2 ) 34.9 % 18.0 % Debt extinguishment expenses — (6.9 ) — * * Non-cash pension settlement charge — (3.5 ) (1.8 ) * 94.4 % Other non-operating income (deductions), net (4.9 ) (3.8 ) 5.6 28.9 % * Total non-operating deductions, net (64.1 ) (58.1 ) (33.4 ) 10.3 % 74.0 % Income before tax and equity in earnings 107.7 156.7 202.3 (31.3 )% (22.5 )% Provision for taxes on income 23.7 32.1 36.6 (26.2 )% (12.3 )% Effective tax rate 22.0 % 20.5 % 18.1 % Equity in earnings of affiliates, net of tax 4.3 1.7 2.8 152.9 % (39.3 )% Consolidated net income 88.3 126.3 168.5 (30.1 )% (25.0 )% Less: Net income attributable to non-controlling interests 4.2 4.1 4.1 2.4 % 0.0 % Net income attributable to Minerals Technologies Inc.
Operating margin was impacted by the timing of contractual and negotiated price increases relative to inflationary cost increases including energy and other manufacturing costs. In addition, logistics and labor challenges impacted both sales and operating performance.
Included in income from operations were $1.1 million of restructuring and impairment costs. Operating margin was impacted by the timing of contractual and negotiated price increases relative to inflationary cost increases including energy and other manufacturing costs. In addition, logistics and labor challenges impacted both sales and operating performance.
As of December 31, 2022, the Company had $25.3 million in uncommitted short-term bank credit lines, $4.7 million of which were in use. The credit lines are primarily outside the U.S. and are generally one year in term at competitive market rates at large, well-established institutions.
The Company repaid $0.6 million on these loans during 2023. As of December 31, 2023, the Company had $25.5 million in uncommitted short-term bank credit lines, $0.4 million of which were in use. The credit lines are primarily outside the U.S. and are generally one year in term at competitive market rates at large, well-established institutions.
As of December 31, 2022, the Company had approximately 54% of its pension assets in equity securities, 32% in fixed income securities and 14% in other securities. The Company recognized pension expense of $4.9 million in 2022 as compared to $9.1 million in 2021.
As of December 31, 2023, the Company had approximately 51% of its pension assets in equity securities, 35% in fixed income securities and 14% in other securities. The Company recognized pension expense of $5.7 million in 2023 as compared to $4.9 million in 2022.
In addition, the Company recorded a $7.6 million charge for asset write-downs and other restructuring cost and $3.1 million for acquisition related transaction and integration costs. Income from Operations During 2022, the Company recorded income from operations of $214.8 million, as compared with $235.7 million in the prior year.
In 2021 , the Company recorded a $1.1 million charge for asset write-downs and other restructuring costs and $4.0 million for acquisition related transaction and integration costs. Income from Operations During 2023, the Company recorded income from operations of $171.8 million, as compared with $214.8 million in the prior year.
During 2021, the Company recorded income from operations of $235.7 million, as compared with $187.9 million in the prior year. Income from operations represented 12.7% of sales compared with 11.8% of sales in the prior year.
During 2022, the Company recorded income from operations of $214.8 million, as compared with $235.7 million in the prior year. Income from operations represented 10.1% of sales compared with 12.7% of sales in the prior year.
The Company has four reporting units; Performance Materials, PCC, Processed Minerals and Refractories. We identify our reporting units by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, and management regularly reviews the operating results of those components.
The Company has two reporting units; Consumer & Specialties and Engineered Solutions. We identify our reporting units by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, and management regularly reviews the operating results of those components.
Changes in assumptions can have a significant impact on the fair value of tangible assets. Goodwill is calculated as the excess of the consideration transferred over the assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.
Goodwill is calculated as the excess of the consideration transferred over the assets acquired and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.
Additionally, the Company recorded at $ 1.8 million non-cash pension settlement charge relating to one of the Company's retirement plans in the United States. Provision for Taxes on Income Provision for taxes was $32.1 million, $36.6 million and $24.4 million in 2022, 2021 and 2020, respectively.
Additionally, the Company recorded a $ 3.5 million non-cash pension settlement charge relating to some of the Company’s retirement plans in the United States. 41 Provision for Taxes on Income Provision for taxes was $23.7 million, $32.1 million and $36.6 million in 2023, 2022 and 2021, respectively.
There were no significant revenue adjustments in the fourth quarter of 2022 and 2021, respectively. We have consignment arrangements with certain customers in our Refractories segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer.
Revenues are adjusted at the end of each year to reflect the actual volume sold. There were no significant revenue adjustments in the fourth quarter of 2023 and 2022, respectively. We have consignment arrangements with certain customers in our Engineered Solutions segment. Revenues for these transactions are recorded when the consigned products are consumed by the customer.
See Note 8 to the Consolidated Financial Statements for additional detail on our uncertain tax positions. 48 Pension Benefits We sponsor pension and other retirement plans in various forms covering the majority of employees who meet eligibility requirements.
As such, changes in our subjective assumptions and judgments can materially affect amounts recognized in the consolidated balance sheets and statements of operations. See Note 8 to the Consolidated Financial Statements for additional detail on our uncertain tax positions. Pension Benefits We sponsor pension and other retirement plans in various forms covering the majority of employees who meet eligibility requirements.
Factors we consider important that could trigger an impairment review include the following: ● Significant under-performance relative to historical or projected future operating results; ● Significant changes in the manner of use of the acquired assets or the strategy for the overall business; ● Significant negative industry or economic trends; ● Market capitalization below invested capital. 47 Annually, the Company performs a qualitative assessment for each of its reporting units to determine if the two-step process for impairment testing is required.
Factors we consider important that could trigger an impairment review include the following: ● Significant under-performance relative to historical or projected future operating results; ● Significant changes in the manner of use of the acquired assets or the strategy for the overall business; ● Significant negative industry or economic trends; ● Market capitalization below invested capital.
International sales increased 16.4% to $898.7 million in 2021 and represented 48.0% of consolidated net sales. Operating Costs and Expenses Consolidated cost of sales was $1,660.5 million, $1,411.8 million and $1,189.4 million in 2022, 2021 and 2020, respectively. Production margin as a percentage of net sales was 21.9% in 2022, 24.0% in 2021 and 25.4% in 2020.
Operating Costs and Expenses Consolidated cost of sales was $1,662.8 million, $1,660.5 million and $1,411.8 million in 2023, 2022 and 2021, respectively. Production margin as a percentage of net sales was 23.4% in 2023, 21.9% in 2022 and 24.0% in 2021.
Included in non-operating deductions was net interest expense of $43.9 million in 2022 as compared to $37.2 million in the prior year, primarily due to higher interest rates. The Company recorded debt extinguishment expenses of $6.9 million related to the refinancing of its credit facilities.
Included in non-operating deductions was net interest expense of $59.2 million in 2023 as compared to $43.9 million in the prior year, primarily due to higher interest rates. Included in non-operating deductions was net interest expense of $ 43.9 million in 2022 as compared to $ 37.2 million in the prior year, primarily due to higher interest rates .
This charge consisted of litigation costs, acquisition related transaction and integration costs, debt extinguishment expenses and a non-cash pension settlement charge. Consolidated net income was $168.5 million in 2021 and included a $5.3 million charge, net of tax. This charge consisted of asset write-downs, severance-related costs, acquisition-related transaction and integration costs and a non-cash pension settlement charge.
This charge consisted of impairment of assets, litigation expenses, restructuring and acquisition related transaction and integration costs. Consolidated net income was $126.3 million in 2022 and included a $37.9 million charge, net of tax. This charge consisted of litigation expenses, acquisition related transaction and integration costs, debt extinguishment expenses and a non-cash pension settlement charge.
Net sales in the United States increased 18.3% to $1,135.6 million in 2022 and represented 53.0% of consolidated net sales. International sales increased 10.1% to $989.9 million in 2022 and represented 47.0% of consolidated net sales. 40 Worldwide net sales in 2021 increased 16.5% from the previous year to $1,858.3 million.
Net sales in the United States increased 0.7% to $1,144.0 million in 2023 and represented 53.0% of consolidated net sales. International sales increased 3.6% to $1,025.9 million in 2023 and represented 47.0% of consolidated net sales. 40 Worldwide net sales in 2022 increased 14.4% from the previous year to $2,125.5 million.
This has had the effect of decreasing the demand and increasing competition for the services we provide. We cannot predict the economic outlook in the countries in which we do business, nor in the key industries we serve. Liquidity and Capital Resources Cash provided from continuing operations in 2022 was $105.7 million, compared with $232.4 million in prior year.
We cannot predict the economic outlook in the countries in which we do business, nor in the key industries we serve. Liquidity and Capital Resources Cash provided from continuing operations in 2023 was $233.6 million, compared with $105.7 million in prior year.
Our primary performance obligation is satisfied upon shipment or delivery to our customer based on written sales terms, which is also when control is transferred. Revenue, where our performance obligations are satisfied in phases, is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved.
Revenue, where our performance obligations are satisfied in phases, is recognized over time using certain input measures based on the measurement of the value transferred to the customer, including milestones achieved. Revenues from sales of equipment are recorded upon completion of installation and transfer of control to the customer. Revenues from services are recorded when the services are performed.
Household, Personal Care & Specialty Products sales increased 21.8% to $560.9 million from $460.5 million the prior year. This increase is driven by strong demand for consumer-oriented products and the acquisition of Concept Pet.
Household & Personal Care sales increased 24.1% to $476.2 million from $383.7 million in the prior year. This increase was driven by strong demand for consumer-oriented products and the acquisition of Concept Pet.
When we acquire a company, we determine fair value on the acquisition date of assets acquired and liabilities assumed. We use the income, market or cost approach (or a combination thereof) for the valuation and use valuation inputs and analyses that are based on market participant assumptions.
We use the income, market or cost approach (or a combination thereof) for the valuation and use valuation inputs and analyses that are based on market participant assumptions. Changes in assumptions can have a significant impact on the fair value of tangible assets.
Income from operations in 2021 included $ 1.1 million for asset write-downs and severance-related costs and $ 4.0 million of acquisition related transaction and integration costs. Non-Operating Income (Deductions) The Company recorded non-operating deductions, net of $58.1 million in 2022 as compared with $33.4 million in the previous year.
Income from operations in 2022 reflected a $ 32.6 million charge for litigation costs and a $ 5.1 million charge for acquisition related transaction and integration costs. Non-Operating Income (Deductions) The Company recorded non-operating deductions, net of $64.1 million in 2023 as compared with $58.1 million in the previous year.
The fair value of this instrument at December 31, 2022 is an asset of $ 1.0 million. Additionally, the Company entered into a cross currency rate swap with a total notional value of $150 million to exchange monthly fixed-rate interest rate payments in U.S. dollars for monthly fixed-rate interest rate payments in Euros.
Additionally, the Company entered into a cross currency rate swap with a total notional value of $150 million to exchange monthly fixed-rate interest rate payments in U.S. dollars for monthly fixed-rate interest rate payments in Euros. This cross currency swap matured in May 2023. At maturity, the Company realized, in comprehensive income, an after-tax gain of $ 7.6 million.
Included within 2022 net sales for Household, Personal Care & Specialty Products are $14.7 million of net sales for Concept Pet and $70.0 million of incremental sales from our Normerica acquisition last year.
Included within 2022 net sales for Household, Personal Care & Specialty Products are $14.7 million of net sales for Concept Pet and $70.0 million of incremental sales from Normerica. Specialty Additives increased 12.0% to $648.4 million, as compared with $578.9 million in the prior year.
Under those contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to the customer. Revenues are adjusted at the end of each year to reflect the actual volume sold.
In most of our PCC contracts, the price per ton is based upon the total number of tons sold to the customer during the year. Under those contracts, the price billed to the customer for shipments during the year is based on periodic estimates of the total annual volume that will be sold to the customer.
The Company has a committed loan facility in Japan. As of December 31, 2022, there was an outstanding balance of $2.0 million on this facility. Principal will be repaid in accordance with the payment schedule ending in 2026. The Company repaid $0.5 million on these loans in 2022.
The Company is in compliance with all the covenants contained in the Amended Credit Agreement throughout the period covered by this report. The Company has a committed loan facility in Japan. As of December 31, 2023, there was an outstanding balance of $1.4 million on this facility. Principal will be repaid in accordance with the payment schedule ending in 2026.
The other factors having the most significant impact on our effective tax rates in recent periods are the rate differentials related to foreign earnings indefinitely invested, percentage depletion, GILTI, FDII and the tax benefits on restructuring and impairment charges at a higher rate.
The other factors having the most significant impact on our effective tax rates in recent periods are percentage depletion, GILTI, Foreign-Derived Intangible Income (“FDII”), 162(m) disallowance, and the tax benefits on restructuring and impairment charges.
Other long-term liabilities include tax liabilities, including contingent obligations associated with gross unrecognized tax benefits for uncertain tax positions and a tax liability for the one-time transition tax on accumulated foreign subsidiary earnings under U.S.
Other long-term liabilities include tax liabilities, including contingent obligations associated with gross unrecognized tax benefits for uncertain tax positions and a tax liability for the one-time transition tax on accumulated foreign subsidiary earnings, asset retirement obligations relating to the retirement of certain tangible long-lived assets and land restoration obligations at the Company’s PCC satellite facilities and mining operations.
In 2021, a net gain of $60.6 million ($45.2 million after-tax) was recorded in other comprehensive income, primarily due to a change in discount rates. In 2020, a net loss of $24.5 million ($18.7 million after-tax) was recorded in other comprehensive income, primarily due to a change in discount rates and updated mortality tables.
In 2022, a net gain of $46.3 million ($35.3 million after-tax) was recorded in other comprehensive income, primarily due to actuarial gains, driven by a change in discount rates. In 2021, a net gain of $60.6 million ($45.2 million after-tax) was recorded in other comprehensive income, primarily due to a change in discount rates.
(MTI) $ 122.2 $ 164.4 $ 112.4 (25.7 )% 46.3 % * Not meaningful Net Sales Year Ended December 31, (millions of dollars) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 U.S. $ 1,135.6 $ 959.6 $ 822.5 18.3 % 16.7 % International 989.9 898.7 772.3 10.1 % 16.4 % Total sales $ 2,125.5 $ 1,858.3 $ 1,594.8 14.4 % 16.5 % Performance Materials Segment $ 1,127.7 $ 976.0 $ 825.8 15.5 % 18.2 % Specialty Minerals Segment 648.4 578.9 510.9 12.0 % 13.3 % Refractories Segment 349.4 303.4 258.1 15.2 % 17.6 % Total sales $ 2,125.5 $ 1,858.3 $ 1,594.8 14.4 % 16.5 % Worldwide net sales in 2022 increased 14.4% from the previous year to $2,125.5 million.
(MTI) $ 84.1 $ 122.2 $ 164.4 (31.2 )% (25.7 )% * Not meaningful Net Sales Year Ended December 31, (millions of dollars) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 U.S. $ 1,144.0 $ 1,135.6 $ 959.6 0.7 % 18.3 % International 1,025.9 989.9 898.7 3.6 % 10.1 % Total sales $ 2,169.9 $ 2,125.5 $ 1,858.3 2.1 % 14.4 % Consumer & Specialties Segment $ 1,160.2 $ 1,124.6 $ 962.6 3.2 % 16.8 % Engineered Solutions Segment 1,009.7 1,000.9 895.7 0.9 % 11.7 % Total sales $ 2,169.9 $ 2,125.5 $ 1,858.3 2.1 % 14.4 % Worldwide net sales in 2023 increased 2.1% from the previous year to $2,169.9 million.
The Notes are unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly owned domestic restricted subsidiaries that is a borrower under or that guarantees the Company’s obligations under its Senior Secured Credit Facilities or that guarantees the Company’s or any of the Company’s wholly owned domestic subsidiaries’ long-term indebtedness in an aggregate amount in excess of $50 million. 45 At any time and from time to time prior to July 1, 2023, the Company may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount, plus the “make-whole” premium described in the Indenture and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.
The Notes are unconditionally guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly owned domestic restricted subsidiaries that is a borrower under or that guarantees the Company’s obligations under its Senior Secured Credit Facilities or that guarantees the Company’s or any of the Company’s wholly owned domestic subsidiaries’ long-term indebtedness in an aggregate amount in excess of $50 million.
Investors should refer to the Company's subsequent filings under the Securities Exchange Act of 1934 for further disclosures. Executive Summary Worldwide sales increased 14% in 2022 to $2.126 billion as compared with $1.858 billion in 2021. Foreign exchange had an unfavorable impact on sales of $100 million or 6%.
Investors should refer to the Company’s subsequent filings under the Securities Exchange Act of 1934 for further disclosures. Executive Summary Worldwide sales increased 2% in 2023 to $2.170 billion as compared with $2.126 billion in 2022. Consolidated income from operations was $171.8 million, as compared with $214.8 million in the prior year.
The Company and its customers will typically negotiate reasonable price adjustments in order to recover a portion of these escalating costs, but there can be no assurance that we will be able to recover increasing costs through such negotiations. 44 Cyclical Nature of Customers' Businesses The portions of our sales within Specialty Minerals, Performance Materials and Refractories segments are to customers in the paper manufacturing, metalcasting, steel manufacturing, oil and gas and construction industries, which have historically been cyclical.
The Company and its customers will typically negotiate reasonable price adjustments in order to recover a portion of these escalating costs, but there can be no assurance that we will be able to recover increasing costs through such negotiations.
The Notes were issued pursuant to an indenture, dated as of June 30, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Indenture”). The Notes bear an interest rate of 5.0% per annum payable semi-annually on January 1 and July 1 of each year, beginning on January 1, 2021.
On June 30, 2020, the Company issued $400 million aggregate principal amount of 5.0% Senior Notes due 2028 (the “Notes”). The Notes were issued pursuant to an indenture, dated as of June 30, 2020, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Indenture”).
The higher effective tax rate in 2022 as compared to 2021 was primarily due to the impact of GILTI and the 162(m) disallowance. The higher effective tax rate in 2021 as compared to 2020 was primarily due to tax credits in the prior year resulting from the expiration of a tax statute of limitations.
The higher effective tax rate in 2022 as compared to 2021 was primarily due to the impact of the Global Intangible Low-Tax Income provision (“GILTI”) and the 162(m) disallowance.
Included in income from operations were $32.6 million relating to costs incurred to defend against, opportunistically settle and establish a reserve for claims associated with certain talc products from the Company's Barretts Minerals Inc. subsidiary.
Included in income from operations for 2022 were $32.6 million relating to costs incurred to defend against, opportunistically settle and establish a reserve for claims associated with certain talc products relating to BMI. Operating margin was impacted by the timing of contractual and negotiated price increases relative to inflationary cost increases including energy and other manufacturing costs.
Revenue Recognition Revenue is recognized at the point in time when the customer obtains control of the promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services. The Company's revenues are primarily derived from the sale of products.
We believe the following critical accounting policies require us to make significant judgments and estimates in the preparation of our consolidated financial statements. 46 Revenue Recognition Revenue is recognized at the point in time when the customer obtains control of the promised goods or services in an amount that reflects the consideration we expect to receive in exchange for those goods or services.
Income from operations increased $5.1 million, or 7.5% to $72.9 million in 2021 and represented 12.6% of net sales compared to $67.8 million and 13.3% of sales in the prior year. Included in income from operations were $1.1 million of restructuring and impairment costs.
This increase is due to our strength in remediation, wastewater and filtration activity which was offset by a slight decrease in building materials from the timing of projects. Income from operations increased $5.1 million, or 7.5% to $72.9 million in 2021 and represented 12.6% of net sales compared to $67.8 million and 13.3% of sales in the prior year.
For testing the recoverability, we primarily use discounted cash flow models or cost approach to estimate the fair value of these assets. Critical assumptions used in conducting these tests included expectations of our business performance and financial results, useful lives of assets, discount rates and comparable market data.
Critical assumptions used in conducting these tests included expectations of our business performance and financial results, useful lives of assets, discount rates and comparable market data. 47 When we acquire a company, we determine fair value on the acquisition date of assets acquired and liabilities assumed.
The pricing structure of some of our long-term PCC contracts makes our PCC business less sensitive to declines in the quantity of product purchased. Oil and natural gas prices decreased significantly between 2014 through 2017 and again in 2020, which has caused exploration companies to reduce their capital expenditures and production and exploration activities.
Oil and natural gas prices decreased significantly between 2014 through 2017 and again in 2020, which has caused exploration companies to reduce their capital expenditures and production and exploration activities. This has had the effect of decreasing the demand and increasing competition for the services we provide.
Included in income from operations in 2021 was $ 1.1 million for assets write-downs and severance-related costs and $ 4.0 million of acquisition related transaction and integration costs. Net income was $122.2 million in 2022, as compared to $164.4 million in the prior year.
In addition, the Company recorded $6.9 million of restructuring charges and $0.3 million of acquisition-related expenses in 2023. Included in income from operations in 2022 was $ 32.6 million of litigation expenses and $ 5.1 million of acquisition-related expenses. Net income was $84.1 million in 2023, as compared to $122.2 million in the prior year.
On October 20, 2021, the Company's Board of Directors authorized the Company's management to repurchase, at its discretion, up to $75 million of the Company's shares over a one-year period. Over this program's one-year period, 1,027,768 shares were repurchased for $67.8 million, or an average price of approximately $65.99 per share.
See Notes 2, 8, 15, 16 and 20 to the Consolidated Financial Statements. On October 18, 2023, the Company’s Board of Directors authorized the Company’s management to repurchase, at its discretion, up to $75 million of the Company’s shares over a one-year period.
The Company and certain of the Company’s subsidiaries are among numerous defendants in over four hundred cases seeking damages for alleged exposure to asbestos-containing materials related to talc products sold by the Company’s subsidiary Barretts Minerals Inc. Based on its evaluation of available information, the Company accrued $31 million for litigation costs during the third quarter of 2022.
No dividend will be payable unless declared by the Board and unless funds are legally available for payment thereof. The Company and certain of the Company’s subsidiaries are among numerous defendants in over five hundred cases seeking damages for alleged exposure to asbestos-contaminated talc products sold by the Company’s subsidiary BMI.
Performance Materials Segment Year Ended December 31, (millions of dollars) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 Net Sales Household, Personal Care & Specialty Products $ 560.9 $ 460.5 $ 380.2 $ 100.4 $ 80.3 Metalcasting 334.0 319.2 258.1 14.8 61.1 Environmental Products 174.1 136.3 131.6 37.8 4.7 Building Materials 58.7 60.0 55.9 (1.3 ) 4.1 Total net sales $ 1,127.7 $ 976.0 $ 825.8 $ 151.7 $ 150.2 Income from operations $ 127.2 $ 125.0 $ 108.8 $ 2.2 $ 16.2 % of net sales 11.3 % 12.8 % 13.2 % 42 2022 v 2021 Net sales in the Performance Materials segment increased 15.5% to $1,127.7 million as compared with $976.0 in the prior year.
Consumer & Specialties Segment Year Ended December 31, (millions of dollars) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Net Sales Household & Personal Care $ 517.6 $ 476.2 $ 383.7 $ 41.4 $ 92.5 Specialty Additives 642.6 648.4 578.9 (5.8 ) 69.5 Total net sales $ 1,160.2 $ 1,124.6 $ 962.6 $ 35.6 $ 162.0 Income from operations $ 41.6 $ 79.0 $ 119.5 $ (37.4 ) $ (40.5 ) % of net sales 3.6 % 7.0 % 12.4 % 2023 v 2022 Net sales in the Consumer & Specialties segment increased 3.2% to $1,160.2 million, as compared with $1,124.6 million in the prior year.
Included in net sales for 2021 are $48.6 million of net sales of Normerica. Foreign exchange had a favorable impact on sales of approximately $27 million or 2 percentage point. Net sales in the United States increased 16.7% to $959.6 million in 2021 and represented 52.0% of consolidated net sales.
Foreign exchange had an unfavorable impact on sales of approximately $100 million or 6 percentage points. Net sales in the United States increased 18.3% to $1,135.6 million in 2022 and represented 53.0% of consolidated net sales. International sales increased 10.1% to $989.9 million in 2022 and represented 47.0% of consolidated net sales.
Consolidated income from operations was $214.8 million, as compared with $235.7 million in the prior year.
This decrease is a result of weak commercial construction activity in 2023. 43 Income from operations was $147.8 million and 14.6% of sales, as compared with $147.1 million and 14.7% of sales in the prior year.
Income from operations represented 10.1% of sales compared with 12.7% of sales in the prior year.
Income from operations represented 7.9% of sales compared with 10.1% of sales in the prior year. Income from operations in 2023 reflected $78.6 million in impairment and restructuring charges, a $0.3 million charge for acquisition-related expenses , and $29.2 million of net litigation expenses.
Included in income from operations for 2022 was $32.6 million recorded for litigation costs to defend against, opportunistically settle, and establish a reserve for claims associated with certain talc products from the Company's Barretts Minerals Inc. subsidiary and $5.1 million of acquisition related transaction and integration costs.
Included in income from operations for 2023 was a $71.7 million non-cash impairment charge related to the fixed assets of the Company’s subsidiaries, Barretts Minerals Inc.’s (“BMI”) and Barretts Ventures Texas LLC (together with BMI, “Barretts”) and $29.2 million of net litigation expenses incurred in connection with BMI’s bankruptcy, and by BMI to defend against and restores its reserve for claims associated with certain talc products.
Worldwide sales of PCC products increased 13.0% to $482.1 million in 2022 from $426.8 million in the prior year due to the ramp-up of new paper and packaging volumes and strong demand for specialty PCC products in construction, automotive and consumer markets. Specialty PCC sales grew 30.2% as compared with prior year.
This increase is due to the ramp-up of new paper and packaging volumes and strength in the residential construction and automotive markets. Income from operations was $79.0 million in 2022, as compared to $119.5 million in 2021.
In 2022, the Company continued to execute on its key growth initiatives driven by multi-year advancements in new product development, of geographic penetration, and growth from acquisitions. On April 29, 2022, the Company completed the acquisition of Concept Pet, a European supplier of pet litter products.
In 2023, the Company continued to deliver on its strategic growth initiatives driven by multi-year advancements in new product development, positioning in growth markets and geographies, geographic penetration and growth from acquisitions. Our balance sheet continues to be strong. Cash, cash equivalents and short-term investments were $321.5 million as of December 31, 2023.
The fair value of this instrument at December 31, 2022 is an asset of $ 13.8 million. These swaps mature in May 2023. As a result of these swaps, the Company's effective fixed interest rate on the notional floating rate indebtedness will be 2.5%.
In the second quarter of 2023, the Company entered into a new floating to fixed interest rate swap for a notional amount of $150 million. The fair value of this instrument as of December 31, 2023 is a liability of $0.1 million.
The effects of foreign earnings and the related foreign rate differentials resulted in increases of $3.8 million, $5.2 million and $4.6 million in 2022, 2021 and 2020, respectively. Consolidated Net Income Attributable to MTI Shareholders Consolidated net income was $126.3 million in 2022 and included a $37.9 million charge, net of tax.
The effects of foreign earnings and the related foreign rate differentials resulted in increases of $8.2 million, $3.8 million and $5.2 million in 2023, 2022 and 2021, respectively. In 2021, as part of the Organization for Economic Co-operation and Development’s (“OECD”) Inclusive Framework, 140 member countries agreed to the implementation of the Pillar Two Global Minimum Tax (“Pillar 2”).
Refractories Segment Year Ended December 31, (millions of dollars) 2022 2021 2020 2022 vs. 2021 2021 vs. 2020 Net Sales Refractory Products $ 273.4 $ 237.1 $ 212.3 $ 36.3 $ 24.8 Metallurgical Products 76.0 66.3 45.8 9.7 20.5 Total net sales $ 349.4 $ 303.4 $ 258.1 $ 46.0 $ 45.3 Income from operations $ 57.6 $ 49.3 $ 35.5 $ 8.3 $ 13.8 % of net sales 16.5 % 16.2 % 13.8 % 2022 v 2021 Net sales in the Refractories segment increased 15.2% to $349.4 million in 2022 from $303.4 million in the prior year driven by improved steel market conditions, strong operating performance and new business development.
Engineered Solutions Segment Year Ended December 31, (millions of dollars) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Net Sales High-Temperature Technologies $ 720.9 $ 702.5 $ 642.7 $ 18.4 $ 59.8 Environmental & Infrastructure 288.8 298.4 253.0 (9.6 ) 45.4 Total net sales $ 1,009.7 $ 1,000.9 $ 895.7 $ 8.8 $ 105.2 Income from operations $ 147.8 $ 147.1 $ 127.7 $ 0.7 $ 19.4 % of net sales 14.6 % 14.7 % 14.3 % 2023 v 2022 Net sales in the Engineered Solutions segment increased 1% to $1,009.7 million, as compared with $1,000.9 million in the prior year.
Removed
The Company reported diluted earnings of $3.73 per share in 2022 as compared with $4.86 per share in the prior year. The Company refinanced its revolving credit facility and term loan in the third quarter of 2022, extending out maturities to 2027. In connection with the refinancing, the Company incurred $6.9 million of debt extinguishment expenses.
Added
The Company reported diluted earnings of $2.58 per share in 2023 as compared with $3.73 per share in the prior year. On October 2, 2023, notwithstanding the Company’s confidence in the safety of BMI’s talc products, Barretts filed voluntary petitions for relief under Chapter 11 of the U.S.
Removed
The purchase of Concept Pet supports the expansion of our European pet care business as well as providing additional mineral reserves. Our balance sheet continues to be strong. Cash, cash equivalents and short-term investments were $252.8 million as of December 31, 2022. Cash flow from operations for 2022 was $105.7 million.
Added
Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas to address and comprehensively resolve BMI’s liabilities associated with talc. Minerals Technologies Inc. and the Company’s other subsidiaries were not included in the Chapter 11 filing. Upon this filing, BMI was deconsolidated from the Company’s consolidated financial statements.
Removed
Included in net sales for 2022 are $14.7 million of net sales of Concept Pet and $70.0 million of incremental sales from our Normerica acquisition last year. Foreign exchange had an unfavorable impact on sales of approximately $100 million or 6 percentage points.
Added
Engineered Solutions Segment ● Increase our presence and gain penetration of our bentonite-based foundry customers for the metalcasting industry in emerging markets, such as China and India. ● Deploy value-added formulations of refractory materials that not only reduce costs but improve performance. ● Deploy our laser measurement technologies into new applications. ● Expand our refractory maintenance model to other steel makers globally. ● Continue the development and market penetration of our FLUORO-SORB ® products which address PFAS contamination in soil, groundwater, drinking water sources, landfill leachate and wastewater treatment facilities. ● Pursue opportunities for the expanded use of our products in environmental, building and construction, infrastructure and oil & gas drilling and water treatment globally. ● Increase our presence and market share for geosynthetic clay liners globally.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

7 edited+1 added−0 removed8 unchanged
Biggest changeAn immediate 10% increase in the interest rates would not have a material effect on our results of operations over the next fiscal year. A one percentage point change in interest rates would cost $21 million in incremental interest charges on an annual basis. Credit Risk We are exposed to credit risk on certain assets, primarily accounts receivable.
Biggest changeA one percentage point change in interest rates would cost $3.8 million in incremental interest charges on an annual basis. Credit Risk We are exposed to credit risk on certain assets, primarily accounts receivable. We provide credit to customers in the ordinary course of business and perform ongoing credit evaluations.
Our treasury and risk management policies prohibit us from using derivative instruments for trading or speculative purposes. We also do not use leveraged derivative instruments or derivatives with complex features. 49 Exchange Rate Sensitivity As we operate in over 30 countries with many international subsidiaries, we are exposed to currency fluctuations related to manufacturing and selling our products and services.
Our treasury and risk management policies prohibit us from using derivative instruments for trading or speculative purposes. We also do not use leveraged derivative instruments or derivatives with complex features. Exchange Rate Sensitivity As we operate in over 30 countries with many international subsidiaries, we are exposed to currency fluctuations related to manufacturing and selling our products and services.
Assets and liabilities of our international subsidiaries are translated to their parent company’s reporting currency at current exchange rates during consolidation; gains and losses stemming from these translations are included as a component of Other Comprehensive Income and reported within Accumulated Comprehensive Income within our Consolidated Balance Sheets.
At maturity, the Company realized, in comprehensive income, an after-tax gain of $7.6 million. 49 Assets and liabilities of our international subsidiaries are translated to their parent company’s reporting currency at current exchange rates during consolidation; gains and losses stemming from these translations are included as a component of Other Comprehensive Income and reported within Accumulated Comprehensive Income within our Consolidated Balance Sheets.
Our accounts receivable financial instruments are carried at amounts that approximate fair value. Sovereign Debt Risk We do not have any material credit risk with sovereign governments as we do not sell our products to them. We do, however, sell to customers in these countries, but we believe our risk associated with these customers is not material. 50
Sovereign Debt Risk We do not have any material credit risk with sovereign governments as we do not sell our products to them. We do, however, sell to customers in these countries, but we believe our risk associated with these customers is not material.
In the second quarter of 2018, the Company entered into an additional floating to fixed interest rate swap for with a total notional value of $150 million. The fair value of this swap at December 31, 2022, was an asset of $1.0 million.
In the second quarter of 2018, the Company entered into an additional floating to fixed interest rate swap for with a total notional value of $150 million. This swap matured in May 2023. In the second quarter of 2023, the Company entered into a new floating to fixed interest rate swap for a notional amount of $150 million.
In the second quarter of 2018, the Company entered into a cross currency swap with a total notional value of $150 million. The swap matures in May 2023. The fair value of this swap at December 31, 2022, was an asset of $13.8 million.
In the second quarter of 2018, the Company entered into a cross currency swap with a total notional value of $150 million. This cross currency swap matured in May 2023.
We provide credit to customers in the ordinary course of business and perform ongoing credit evaluations. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising our customer base. We currently believe our allowance for doubtful accounts is sufficient to cover customer credit risks.
Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising our customer base. We currently believe our allowance for doubtful accounts is sufficient to cover customer credit risks. Our accounts receivable financial instruments are carried at amounts that approximate fair value.
Added
The fair value of this instrument as of December 31, 2023 is a liability of $0.1 million. An immediate 10% increase in the interest rates would not have a material effect on our results of operations over the next fiscal year.

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