--12-31false00015907142021Q200015907142021-01-012021-06-30xbrli:shares00015907142021-07-22iso4217:USD00015907142021-04-012021-06-3000015907142020-04-012020-06-3000015907142020-01-012020-06-30iso4217:USDxbrli:shares00015907142021-06-3000015907142020-12-3100015907142019-12-3100015907142020-06-300001590714us-gaap:CommonStockMember2021-03-310001590714us-gaap:AdditionalPaidInCapitalMember2021-03-310001590714us-gaap:TreasuryStockMember2021-03-310001590714us-gaap:RetainedEarningsMember2021-03-310001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001590714us-gaap:ParentMember2021-03-310001590714us-gaap:NoncontrollingInterestMember2021-03-3100015907142021-03-310001590714us-gaap:RetainedEarningsMember2021-04-012021-06-300001590714us-gaap:ParentMember2021-04-012021-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001590714us-gaap:CommonStockMember2021-04-012021-06-300001590714us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001590714us-gaap:TreasuryStockMember2021-04-012021-06-300001590714us-gaap:CommonStockMember2021-06-300001590714us-gaap:AdditionalPaidInCapitalMember2021-06-300001590714us-gaap:TreasuryStockMember2021-06-300001590714us-gaap:RetainedEarningsMember2021-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001590714us-gaap:ParentMember2021-06-300001590714us-gaap:NoncontrollingInterestMember2021-06-300001590714us-gaap:CommonStockMember2020-03-310001590714us-gaap:AdditionalPaidInCapitalMember2020-03-310001590714us-gaap:TreasuryStockMember2020-03-310001590714us-gaap:RetainedEarningsMember2020-03-310001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001590714us-gaap:ParentMember2020-03-310001590714us-gaap:NoncontrollingInterestMember2020-03-3100015907142020-03-310001590714us-gaap:RetainedEarningsMember2020-04-012020-06-300001590714us-gaap:ParentMember2020-04-012020-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001590714us-gaap:CommonStockMember2020-04-012020-06-300001590714us-gaap:TreasuryStockMember2020-04-012020-06-300001590714us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001590714us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001590714us-gaap:CommonStockMember2020-06-300001590714us-gaap:AdditionalPaidInCapitalMember2020-06-300001590714us-gaap:TreasuryStockMember2020-06-300001590714us-gaap:RetainedEarningsMember2020-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001590714us-gaap:ParentMember2020-06-300001590714us-gaap:NoncontrollingInterestMember2020-06-300001590714us-gaap:CommonStockMember2020-12-310001590714us-gaap:AdditionalPaidInCapitalMember2020-12-310001590714us-gaap:TreasuryStockMember2020-12-310001590714us-gaap:RetainedEarningsMember2020-12-310001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001590714us-gaap:ParentMember2020-12-310001590714us-gaap:NoncontrollingInterestMember2020-12-310001590714us-gaap:RetainedEarningsMember2021-01-012021-06-300001590714us-gaap:ParentMember2021-01-012021-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001590714us-gaap:CommonStockMember2021-01-012021-06-300001590714us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001590714us-gaap:TreasuryStockMember2021-01-012021-06-300001590714us-gaap:PreferredStockMember2019-12-310001590714us-gaap:CommonStockMember2019-12-310001590714us-gaap:AdditionalPaidInCapitalMember2019-12-310001590714us-gaap:TreasuryStockMember2019-12-310001590714us-gaap:RetainedEarningsMember2019-12-310001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001590714us-gaap:ParentMember2019-12-310001590714us-gaap:NoncontrollingInterestMember2019-12-310001590714us-gaap:RetainedEarningsMember2020-01-012020-06-300001590714us-gaap:ParentMember2020-01-012020-06-300001590714us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001590714us-gaap:CommonStockMember2020-01-012020-06-300001590714us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001590714us-gaap:TreasuryStockMember2020-01-012020-06-300001590714us-gaap:PreferredStockMember2020-01-012020-06-300001590714us-gaap:NoncontrollingInterestMember2020-01-012020-06-300001590714us-gaap:PreferredStockMember2020-06-3000015907142014-01-3100015907142021-05-052021-05-050001590714esi:HKWMember2021-05-050001590714us-gaap:CustomerRelationshipsMemberesi:HKWMember2021-05-050001590714us-gaap:CustomerRelationshipsMemberesi:HKWMember2021-05-052021-05-050001590714esi:HKWMemberus-gaap:TradeNamesMember2021-05-050001590714esi:HKWMemberus-gaap:TradeNamesMember2021-05-052021-05-050001590714us-gaap:DevelopedTechnologyRightsMemberesi:HKWMember2021-05-050001590714us-gaap:DevelopedTechnologyRightsMemberesi:HKWMember2021-05-052021-05-050001590714esi:HKWMember2021-05-052021-05-050001590714esi:CoventyaHoldingsSASMemberus-gaap:ScenarioPlanMember2021-06-112021-06-110001590714esi:FirstLienCreditFacilityUSDollarTermLoanDueTwoThousandAndTwentySixAddOnMemberus-gaap:DomesticLineOfCreditMemberus-gaap:ScenarioPlanMember2021-06-110001590714esi:LandAndLeaseholdImprovementsMember2021-06-300001590714esi:LandAndLeaseholdImprovementsMember2020-12-310001590714us-gaap:BuildingImprovementsMember2021-06-300001590714us-gaap:BuildingImprovementsMember2020-12-310001590714esi:MachineryEquipmentFixturesandSoftwareMember2021-06-300001590714esi:MachineryEquipmentFixturesandSoftwareMember2020-12-310001590714us-gaap:ConstructionInProgressMember2021-06-300001590714us-gaap:ConstructionInProgressMember2020-12-3100015907142021-01-012021-01-3100015907142020-07-012020-12-3100015907142021-01-012021-03-310001590714esi:ElectronicsSegmentMember2020-12-310001590714esi:IndustrialAndSpecialtySegmentMember2020-12-310001590714esi:ElectronicsSegmentMember2021-01-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMember2021-01-012021-06-300001590714esi:ElectronicsSegmentMember2021-06-300001590714esi:IndustrialAndSpecialtySegmentMember2021-06-300001590714us-gaap:TradeNamesMember2020-12-310001590714us-gaap:TradeNamesMember2021-06-300001590714us-gaap:CustomerListsMember2021-06-300001590714us-gaap:CustomerListsMember2020-12-310001590714us-gaap:DevelopedTechnologyRightsMember2021-06-300001590714us-gaap:DevelopedTechnologyRightsMember2020-12-310001590714us-gaap:TradeNamesMember2021-06-300001590714us-gaap:TradeNamesMember2020-12-310001590714us-gaap:OtherIntangibleAssetsMember2021-06-300001590714us-gaap:OtherIntangibleAssetsMember2020-12-31xbrli:pure0001590714us-gaap:DomesticLineOfCreditMemberesi:FirstLienCreditFacilityUSDollarTermLoanDueTwoThousandAndTwentySixMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-01-012021-06-300001590714us-gaap:DomesticLineOfCreditMemberesi:FirstLienCreditFacilityUSDollarTermLoanDueTwoThousandAndTwentySixMember2021-06-300001590714us-gaap:DomesticLineOfCreditMemberesi:FirstLienCreditFacilityUSDollarTermLoanDueTwoThousandAndTwentySixMember2020-12-310001590714us-gaap:SeniorNotesMemberesi:USDSeniorNotesDueTwoThousandAndTwentyEightMember2021-06-300001590714us-gaap:SeniorNotesMemberesi:USDSeniorNotesDueTwoThousandAndTwentyEightMember2020-12-310001590714us-gaap:SeniorNotesMember2021-06-300001590714us-gaap:SeniorNotesMember2020-12-310001590714us-gaap:RevolvingCreditFacilityMember2021-06-300001590714us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-06-300001590714us-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2021-01-012021-06-300001590714us-gaap:RevolvingCreditFacilityMemberesi:EurocurrencyRateMember2021-01-012021-06-300001590714us-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300001590714us-gaap:SeniorNotesMember2021-01-012021-06-300001590714us-gaap:LineOfCreditMemberesi:LinesofCreditandRevolvingLinesofCreditMember2021-06-300001590714us-gaap:LineOfCreditMemberesi:LinesofCreditandRevolvingLinesofCreditMember2020-12-310001590714us-gaap:LineOfCreditMember2021-06-300001590714us-gaap:LineOfCreditMember2020-12-310001590714us-gaap:RevolvingCreditFacilityMember2020-01-012020-12-310001590714us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-01-012021-06-300001590714us-gaap:ForeignExchangeForwardMember2021-06-300001590714us-gaap:ForeignExchangeForwardMember2020-12-310001590714us-gaap:CommoditiesInvestmentMember2021-06-300001590714us-gaap:CommoditiesInvestmentMember2020-12-310001590714us-gaap:ForeignExchangeForwardMember2021-01-012021-06-30iso4217:EUR0001590714us-gaap:InterestRateSwapMemberus-gaap:MediumTermNotesMemberesi:EuroNotesMember2021-06-300001590714us-gaap:MediumTermNotesMemberesi:EuroNotesMember2021-06-300001590714us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:CommoditiesInvestmentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:CommoditiesInvestmentMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300001590714us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001590714us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:FairValueMeasurementsRecurringMember2021-06-300001590714us-gaap:FairValueMeasurementsRecurringMember2020-12-310001590714us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:CommoditiesInvestmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:CommoditiesInvestmentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300001590714us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001590714us-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AccruedLiabilitiesMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300001590714us-gaap:OtherLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001590714us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-06-300001590714us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001590714us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2021-06-300001590714us-gaap:OtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:NondesignatedMember2020-12-310001590714us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300001590714us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001590714us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001590714us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001590714us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001590714us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300001590714us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001590714us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001590714esi:MariposaCapitalMembersrt:AffiliatedEntityMemberesi:AdvisoryServicesAgreementMember2021-01-012021-06-30esi:segment0001590714esi:AssemblySolutionsMemberesi:ElectronicsSegmentMember2021-04-012021-06-300001590714esi:AssemblySolutionsMemberesi:ElectronicsSegmentMember2020-04-012020-06-300001590714esi:AssemblySolutionsMemberesi:ElectronicsSegmentMember2021-01-012021-06-300001590714esi:AssemblySolutionsMemberesi:ElectronicsSegmentMember2020-01-012020-06-300001590714esi:ElectronicsSolutionsMemberesi:ElectronicsSegmentMember2021-04-012021-06-300001590714esi:ElectronicsSolutionsMemberesi:ElectronicsSegmentMember2020-04-012020-06-300001590714esi:ElectronicsSolutionsMemberesi:ElectronicsSegmentMember2021-01-012021-06-300001590714esi:ElectronicsSolutionsMemberesi:ElectronicsSegmentMember2020-01-012020-06-300001590714esi:SemiConductorsMemberesi:ElectronicsSegmentMember2021-04-012021-06-300001590714esi:SemiConductorsMemberesi:ElectronicsSegmentMember2020-04-012020-06-300001590714esi:SemiConductorsMemberesi:ElectronicsSegmentMember2021-01-012021-06-300001590714esi:SemiConductorsMemberesi:ElectronicsSegmentMember2020-01-012020-06-300001590714esi:ElectronicsSegmentMember2021-04-012021-06-300001590714esi:ElectronicsSegmentMember2020-04-012020-06-300001590714esi:ElectronicsSegmentMember2020-01-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:IndustrialSolutionsMember2021-04-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:IndustrialSolutionsMember2020-04-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:IndustrialSolutionsMember2021-01-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:IndustrialSolutionsMember2020-01-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:GraphicsSolutionsMember2021-04-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:GraphicsSolutionsMember2020-04-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:GraphicsSolutionsMember2021-01-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:GraphicsSolutionsMember2020-01-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:EnergySolutionsMember2021-04-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:EnergySolutionsMember2020-04-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:EnergySolutionsMember2021-01-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMemberesi:EnergySolutionsMember2020-01-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMember2021-04-012021-06-300001590714esi:IndustrialAndSpecialtySegmentMember2020-04-012020-06-300001590714esi:IndustrialAndSpecialtySegmentMember2020-01-012020-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________

FORM 10-Q
_______________


    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2021
OR
 
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
 
Commission file number: 001-36272
esi-20210630_g1.jpg
Element Solutions Inc
(Exact name of Registrant as specified in its charter)
Delaware37-1744899
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
500 East Broward Boulevard,Suite 186033394
Fort Lauderdale,Florida(Zip Code)
(Address of principal executive offices)
Registrant’s telephone number, including area code: (561) 207-9600
_______________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareESINew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes        No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes        No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No
Number of shares of common stock outstanding at July 22, 2021: 247,567,929



TABLE OF CONTENTS


Page
   
Three and Six Months Ended June 30, 2021 and 2020
Three and Six Months Ended June 30, 2021 and 2020
June 30, 2021 and December 31, 2020
Six Months Ended June 30, 2021 and 2020
Three and Six Months Ended June 30, 2021 and 2020
   
 
   
   





GLOSSARY OF DEFINED TERMS

Terms    
Definitions
Element Solutions;
We; Us; Our; the Company
Element Solutions Inc, a Delaware corporation, and, where the context requires, its subsidiaries or operating businesses.
ArystaArysta LifeScience Inc., a former subsidiary of Element Solutions, which operated the Agricultural Solutions business prior to the Arysta Sale.
Arysta SaleSale of 100% of the issued and outstanding shares of common stock of Arysta and its subsidiaries to UPL Corporation Ltd., on January 31, 2019, for an aggregate purchase price of $4.28 billion in cash, after post-closing adjustments.
ASUAccounting Standards Update.
Credit AgreementCredit Agreement, dated as of January 31, 2019, as amended from time to time, among, inter alia, Element Solutions and MacDermid, as borrowers, certain subsidiaries of Element Solutions and the lenders from time to time parties thereto.
DMP AcquisitionAcquisition on July 1, 2020 of Industrial Water Treatment Solutions Corporation and its two subsidiaries, DMP Corporation and Industrial Specialty Chemicals, Inc. dba "DMP."
EBITDAEarnings before interest, taxes, depreciation and amortization.
ESPPElement Solutions Inc 2014 Employee Stock Purchase Plan.
Exchange ActSecurities Exchange Act of 1934, as amended.
GAAPU.S. Generally Accepted Accounting Principles.
HKW AcquisitionAcquisition on May 5, 2021 of H.K. Wentworth Limited and its subsidiaries.
MacDermidMacDermid, Incorporated, a Connecticut corporation and subsidiary of Element Solutions.
OEMOriginal equipment manufacturer.
Quarterly ReportThis quarterly report on Form 10-Q for the three and six months ended June 30, 2021.
RSUsRestricted stock units issued by Element Solutions from time to time under its 2013 Plan.
SECSecurities and Exchange Commission.
Series A Preferred StockElement Solutions' 2,000,000 shares of Series A convertible preferred stock, converted into shares of Element Solutions' common stock on February 25, 2020.
2020 Annual ReportElement Solutions' annual report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 25, 2021.
3.875% USD Notes due 2028Element Solutions' $800 million aggregate principal amount of 3.875% senior notes due 2028, denominated in U.S. dollars, issued on August 18, 2020.
5.875% USD Notes due 2025Element Solutions' $800 million aggregate principal amount of 5.875% senior notes due 2025, denominated in U.S. dollars, issued on November 24, 2017 and fully redeemed on September 4, 2020.




Forward-Looking Statements
This Quarterly Report contains forward-looking statements that can be identified by words such as "expect," "anticipate," "project," "will," "should," "believe," "intend," "plan," "assume," "estimate," "predict," "seek," "continue," "outlook," "may," "might," "aim," "can have," "likely," "potential," "target," "hope," "goal" or "priority" and variations of such words and similar expressions. Many of the forward-looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding the parties' ability to satisfy the closing conditions of the Coventya acquisition and to finalize and execute the definitive documentation relating to the add-on debt, including the execution of an amendment to the Credit Agreement and closing of the incremental facility for the increase of the existing term loans; the timing of the closing of the Coventya acquisition, the purchase price for the Coventya acquisition, funding of the add-on transaction and effective date of the related forward starting swaps; the use of proceeds from the add-on transaction; the continuing economic impact of the coronavirus (COVID-19) and its variants on the global economy, our business, financial results, customers, suppliers, vendors and/or stock price; capital requirements and availability of financing; increased expectations for strong full year 2021 financial results; probable achievement of the performance target related to certain performance-based RSUs; cost containment and cost savings; the impact of new accounting standards and accounting changes; share repurchases; our dividend policy and dividend declarations; our hedging activities; timing and outcome of environmental and legal matters; tax planning strategies, assessments and adjustments; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; our liquidity, cash flows and capital allocation; funding sources; capital expenditures; debt and debt leverage ratio; off-balance sheet arrangements and contractual obligations; general views about future operating results; expected returns to stockholders; risk management programs; future prospects; and other events or developments that we expect or anticipate will occur in the future.
These forward-looking statements are based on our current expectations about future events, financial performance and trends and do not directly relate to any historical or current facts. These statements are subject to a number of risks, uncertainties and assumptions, including those discussed in Part I, Item 1A, Risk Factors, of our 2020 Annual Report. Moreover, as we operate in a very competitive and rapidly changing environment, new risks emerge from time to time. In light of these risks, uncertainty and assumptions, our actual results may differ materially from the results anticipated or implied in the forward-looking statements. Any forward-looking statement is based only on information currently available and speaks only as of the date on which it is made. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Please consult any further disclosures on related subjects in our SEC filings.
Non-GAAP Financial Measures
This Quarterly Report contains non-GAAP financial measures, such as Adjusted EBITDA and operating results on a constant currency and organic basis. Non-GAAP financial measures should not be considered in isolation from, a substitute for, or superior to, performance measures calculated in accordance with GAAP. For additional information on these non-GAAP financial measures, including definitions, limitations and reconciliations to their most comparable applicable GAAP measures, see "Non-GAAP Financial Measures" in the Management's Discussion and Analysis of Financial Condition and Results of Operations section in Part I, Item 2, and Note 13, Segment Information, to the unaudited Condensed Consolidated Financial Statements, both included in this Quarterly Report.

ii



PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements
 
ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(dollars in millions, except per share amounts)

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Net sales$586.6 $387.0 $1,136.7 $839.6 
Cost of sales348.1 224.5 657.2 479.8 
Gross profit238.5 162.5 479.5 359.8 
Operating expenses:   
Selling, technical, general and administrative154.7 113.4 284.3 238.6 
Research and development12.8 9.6 24.3 27.1 
Total operating expenses167.5 123.0 308.6 265.7 
Operating profit71.0 39.5 170.9 94.1 
Other (expense) income:    
Interest expense, net(12.9)(16.9)(25.8)(33.6)
Foreign exchange (loss) gain(5.2)(12.8)22.8 (38.6)
Other expense, net(5.7)(1.7)(7.3)(1.3)
Total other expense(23.8)(31.4)(10.3)(73.5)
Income before income taxes and non-controlling interests47.2 8.1 160.6 20.6 
Income tax benefit (expense)31.9 (5.8)0.8 (9.9)
Net income from continuing operations79.1 2.3 161.4 10.7 
Income (loss) from discontinued operations, net of tax2.0 (1.1)2.0 (0.9)
Net income attributable to common stockholders$81.1 $1.2 $163.4 $9.8 
Earnings per share    
Basic from continuing operations$0.32 $0.01 $0.65 $0.04 
Basic from discontinued operations0.01  0.01  
Basic attributable to common stockholders$0.33 $0.01 $0.66 $0.04 
Diluted from continuing operations$0.32 $0.01 $0.65 $0.04 
Diluted from discontinued operations0.01  0.01  
Diluted attributable to common stockholders$0.33 $0.01 $0.66 $0.04 
Weighted average common shares outstanding   
Basic247.5 248.8 247.4 249.6 
Diluted247.9 249.0 248.0 250.6 

See accompanying notes to the Condensed Consolidated Financial Statements
1



ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(dollars in millions)
 
Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Net income$81.1 $1.2 $163.4 $9.8 
    
Other comprehensive income (loss)
Foreign currency translation:
Other comprehensive income (loss) before reclassifications, net of tax benefit of $2.0 and $0.0 for the three months ended June 30, 2021 and 2020 and tax expense of $3.9 and $0.0 for the six months ended June 30, 2021 and 2020, respectively
34.5 12.9 (18.2)(10.7)
Total foreign currency translation adjustments34.5 12.9 (18.2)(10.7)
Pension and post-retirement plans:
Other comprehensive income (loss) before reclassifications, net of tax expense of $0.0 for the three months ended June 30, 2021 and 2020 and $0.0 and $0.5 for the six months ended June 30, 2021 and 2020, respectively
   (0.5)
Total pension and post-retirement plans   (0.5)
Derivative financial instruments:
Other comprehensive income (loss) before reclassifications, net of tax expense of $1.0 and $0.0 for the three months ended June 30, 2021 and 2020 and $2.8 and $0.0 for the six months ended June 30, 2021 and 2020, respectively
(1.9)(5.4)1.1 (37.4)
Reclassifications, net of tax expense of $0.0 for the three months ended June 30, 2021 and 2020 and $0.0 for the six months ended June 30, 2021 and 2020, respectively
4.5 3.7 8.9 5.3 
Total unrealized gain (loss) arising on qualified hedging derivatives2.6 (1.7)10.0 (32.1)
Other comprehensive income (loss)37.1 11.2 (8.2)(43.3)
Comprehensive income (loss) attributable to common stockholders$118.2 $12.4 $155.2 $(33.5)
 
See accompanying notes to the Condensed Consolidated Financial Statements
2


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in millions)
June 30,December 31,
 20212020
Assets  
Cash & cash equivalents$318.4 $291.9 
Accounts receivable, net of allowance for doubtful accounts of $10.1 and $9.7 at June 30, 2021 and December 31, 2020, respectively
450.0 403.4 
Inventories280.4 203.1 
Prepaid expenses28.5 24.0 
Other current assets67.7 67.5 
Total current assets1,145.0 989.9 
Property, plant and equipment, net242.4 240.4 
Goodwill2,267.1 2,252.7 
Intangible assets, net823.8 855.9 
Other assets162.2 141.2 
Non-current assets of discontinued operations3.3 3.3 
Total assets$4,643.8 $4,483.4 
Liabilities and stockholders' equity  
Accounts payable$140.0 $95.6 
Current installments of long-term debt7.4 7.4 
Accrued expenses and other current liabilities203.0 204.2 
Current liabilities of discontinued operations5.1 7.1 
Total current liabilities355.5 314.3 
Debt1,505.8 1,508.1 
Pension and post-retirement benefits40.9 43.3 
Deferred income taxes112.6 112.9 
Other liabilities160.7 186.7 
Total liabilities2,175.5 2,165.3 
Commitments and contingencies (Note 10)
Stockholders' equity  
Common stock: 400.0 shares authorized (2021: 261.9 shares issued; 2020: 261.3 shares issued)
2.6 2.6 
Additional paid-in capital4,146.9 4,122.9 
Treasury stock (2021: 14.3 shares; 2020: 14.2 shares)
(139.4)(137.7)
Accumulated deficit(1,337.1)(1,473.2)
Accumulated other comprehensive loss(203.0)(194.8)
Total stockholders' equity2,470.0 2,319.8 
Non-controlling interests(1.7)(1.7)
Total equity2,468.3 2,318.1 
Total liabilities and stockholders' equity$4,643.8 $4,483.4 

See accompanying notes to the Condensed Consolidated Financial Statements
3


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in millions)
Six Months Ended June 30,
 20212020
Cash flows from operating activities:  
Net income$163.4 $9.8 
Net income (loss) from discontinued operations, net of tax2.0 (0.9)
Net income from continuing operations161.4 10.7 
Reconciliations of net income from continuing operations to net cash flows provided by operating activities:  
Depreciation and amortization79.2 79.3 
Deferred income taxes(35.7)(0.7)
Foreign exchange (gain) loss(20.4)37.9 
Incentive stock compensation21.3 3.4 
Other, net0.8 10.0 
Changes in assets and liabilities, net of acquisitions:
Accounts receivable(38.0)43.5 
Inventories(67.9)(15.9)
Accounts payable37.8 (13.6)
Accrued expenses(8.8)(22.2)
Prepaid expenses and other current assets(14.8)(7.2)
Other assets and liabilities(1.9)(0.5)
Net cash flows provided by operating activities of continuing operations113.0 124.7 
Cash flows from investing activities:  
Capital expenditures(17.3)(15.0)
Proceeds from disposal of property, plant and equipment 1.5 
Acquisition of business, net of cash acquired(50.9) 
Other, net19.1 (5.7)
Net cash flows used in investing activities of continuing operations(49.1)(19.2)
Cash flows from financing activities:  
Repayments of borrowings(3.7)(3.9)
Repurchases of common stock (33.1)
Dividends(27.2) 
Other, net(6.4)(1.3)
Net cash flows used in financing activities of continuing operations(37.3)(38.3)
Cash flows from discontinued operations:
Net cash flows used in operating activities of discontinued operations (14.7)
Net cash flows used in discontinued operations (14.7)
Effect of exchange rate changes on cash and cash equivalents(0.1)(5.3)
Net increase in cash and cash equivalents26.5 47.2 
Cash and cash equivalents at beginning of period
291.9 190.1 
Cash and cash equivalents at end of period
$318.4 $237.3 

 See accompanying notes to the Condensed Consolidated Financial Statements
4


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(dollars in millions, except share amounts)
Three Months Ended June 30, 2021Common StockAdditional
Paid-in
Capital
Treasury StockAccumulated
Deficit
Accumulated Other Comprehensive (Loss) IncomeTotal
Stockholders'
Equity
Non-
controlling Interests
Total Equity
SharesAmountSharesAmount
Balance at March 31, 2021261,768,818 $2.6 $4,129.5 14,315,406 $(139.2)$(1,403.3)$(240.1)$2,349.5 $(1.7)$2,347.8 
Net income— — — — — 81.1 — 81.1 — 81.1 
Other comprehensive income, net of taxes— — — — — — 37.1 37.1 — 37.1 
Exercise/ vesting of share based compensation97,997 — 0.1 11,027 (0.2)— — (0.1)— (0.1)
Issuance of common stock under ESPP18,366 — 0.2 — — — — 0.2 — 0.2 
Dividends ($0.06 per share)
— — — — — (14.9)— (14.9)— (14.9)
Equity compensation expense— — 17.1 — — — — 17.1 — 17.1 
Balance at June 30, 2021261,885,181 $2.6 $4,146.9 14,326,433 $(139.4)$(1,337.1)$(203.0)$2,470.0 $(1.7)$2,468.3 
Three Months Ended June 30, 2020Common StockAdditional
Paid-in
Capital
Treasury StockAccumulated
Deficit
Accumulated Other Comprehensive (Loss) IncomeTotal
Stockholders'
Equity
Non-
controlling Interests
Total Equity
SharesAmountSharesAmount
Balance at March 31, 2020260,933,009 $2.6 $4,117.1 12,182,019 $(113.9)$(1,527.9)$(334.9)$2,143.0 $(1.6)$2,141.4 
Net income— — — — — 1.2 — 1.2 — 1.2 
Other comprehensive income, net of taxes— — — — — — 11.1 11.1 — 11.1 
Exercise/ vesting of share based compensation81,554 — — 7,894 (0.1)— — (0.1)— (0.1)
Issuance of common stock under ESPP29,877 — 0.2 — — — — 0.2 — 0.2 
Equity compensation expense— — 1.4 — — — — 1.4 — 1.4 
Changes in non-controlling interests— — — — — — — — (0.1)(0.1)
Balance at June 30, 2020261,044,440 $2.6 $4,118.7 12,189,913 $(114.0)$(1,526.7)$(323.8)$2,156.8 $(1.7)$2,155.1 

See accompanying notes to the Condensed Consolidated Financial Statements








5


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
(dollars in millions, except share amounts)
Six Months Ended June 30, 2021Common StockAdditional
Paid-in
Capital
Treasury StockAccumulated
Deficit
Accumulated Other Comprehensive (Loss) IncomeTotal
Stockholders'
Equity
Non-
controlling Interests
Total Equity
SharesAmountSharesAmount
Balance at December 31, 2020261,330,127 $2.6 $4,122.9 14,229,280 $(137.7)$(1,473.2)$(194.8)$2,319.8 $(1.7)$2,318.1 
Net income— — — — — 163.4 — 163.4 — 163.4 
Other comprehensive income, net of taxes— — — — — — (8.2)(8.2)— (8.2)
Exercise/ vesting of share based compensation514,410 — 2.0 95,453 (1.7)— — 0.3 — 0.3 
Issuance of common stock under ESPP40,644 — 0.5 — — — — 0.5 — 0.5 
Repurchases of common stock— — — 1,700 — — — — — — 
Dividends ($0.11 per share)
— — — — — (27.3)— (27.3)— (27.3)
Equity compensation expense— — 21.5 — — — — 21.5 — 21.5 
Balance at June 30, 2021261,885,181 $2.6 $4,146.9 14,326,433 $(139.4)$(1,337.1)$(203.0)$2,470.0 $(1.7)$2,468.3 
Six Months Ended June 30, 2020Preferred StockCommon StockAdditional
Paid-in
Capital
Treasury StockAccumulated
Deficit
Accumulated Other Comprehensive (Loss) IncomeTotal
Stockholders'
Equity
Non-
controlling Interests
Total Equity
SharesAmountSharesAmountSharesAmount
Balance at December 31, 20192,000,000 $ 258,428,333 $2.6 $4,114.2 8,277,198 $(78.9)$(1,536.5)$(280.5)$2,220.9 $(1.6)$2,219.3 
Net income— — — — — — — 9.8 — 9.8 — 9.8 
Other comprehensive loss, net of taxes— — — — — — — — (43.3)(43.3)— (43.3)
Exercise/ vesting of share based compensation— — 557,541 — 0.2 170,227 (2.0)— — (1.8)— (1.8)
Issuance of common stock under ESPP— — 58,566 — 0.5 — — — — 0.5 — 0.5 
Preferred stock conversion(2,000,000)— 2,000,000 — — — — — — — — — 
Repurchases of common stock— — — — — 3,742,488 (33.1)— — (33.1)— (33.1)
Equity compensation expense— — — — 3.8 — — — — 3.8 — 3.8 
Changes in non-controlling interests— — — — — — — — — — (0.1)(0.1)
Balance at June 30, 2020 $ 261,044,440 $2.6 $4,118.7 12,189,913 $(114.0)$(1,526.7)$(323.8)$2,156.8 $(1.7)$2,155.1 

See accompanying notes to the Condensed Consolidated Financial Statements





6


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

1. BACKGROUND AND BASIS OF PRESENTATION
Background
Element Solutions was incorporated in Delaware in January 2014 and its shares of common stock, par value $0.01 per share, trade on the New York Stock Exchange under the ticker symbol “ESI.”
Element Solutions is a leading global specialty chemicals company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing, consumer packaging and offshore energy. Element Solutions delivers its products to customers through its sales and service workforce, regional distributors and manufacturing representatives.
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP. In the opinion of management, these unaudited Condensed Consolidated Financial Statements reflect all adjustments that are normal, recurring and necessary for a fair statement of the Company's financial position, results of operations and cash flows for interim periods, but are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the related notes included in the Company’s 2020 Annual Report.
The process of preparing the Company’s unaudited Condensed Consolidated Financial Statements requires the use of estimates that affect the reported amount of assets, liabilities, net sales and expenses. These estimates include assumptions and judgements based on historical experience, current conditions, future expectations and other factors the Company consider reasonable. These estimates are reviewed on an ongoing basis and revised as necessary. Actual amounts may differ materially from these estimates.
Certain prior year amounts have been reclassified to conform to the current year’s presentation.
2. ACQUISITION
HKW Acquisition
On May 5, 2021, the Company completed the HKW Acquisition for $50.9 million, net of cash, subject to post-closing adjustments. The H.K. Wentworth business specializes in conformal coatings, encapsulation resins, thermal interface materials, contact lubricants and cleaning chemistry and complements our broader electronics portfolio with many applications overlapping with semiconductor technologies. The operations of the H.K. Wentworth business are included in our Electronics business segment.








7


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)


The following table summarizes the allocation of the purchase price to the identified assets acquired and liabilities assumed at the acquisition date:
  (dollars in millions)
Identifiable assets acquired and liabilities assumed
Accounts receivable$10.3 
Inventories13.9 
Other current assets3.0 
Property, plant and equipment6.4 
Identifiable intangible assets28.7 
Other assets2.5 
Current liabilities(21.3)
Long-term liabilities(10.6)
Total identifiable net assets32.9 
Goodwill18.0 
Total purchase price$50.9 
The excess of the cost of the HKW Acquisition over the net amounts assigned to the fair value of the assets acquired and the liabilities assumed was recorded as goodwill and represents the future economic benefit arising from other assets acquired that could not be individually identified and separately recognized. The majority of the goodwill recorded in connection with the HKW Acquisition is not expected to be deductible for tax purposes.
The fair value of the identifiable intangible assets recorded in conjunction with the HKW Acquisition was as follows:
  (dollars in millions)Fair Value
Weighted Average Useful Life (years)
Customer relationships$20.8 12
Trade name1.0 5
Developed technology6.9 5
Total$28.7 10.1
The fair value of the identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the attrition rate and the discount rate selected to measure the risks inherent in the future cash flows.
As of June 30, 2021, the purchase price allocation for the HKW Acquisition is preliminary, and we expect to complete the purchase price allocation within the one year measurement period.
The HKW Acquisition was not significant to our Condensed Consolidated Financial Statements, therefore, pro forma and post acquisition results of operations have not been presented.
Proposed Coventya Acquisition
On June 11, 2021, the Company announced its planned acquisition of Coventya Holdings SAS, a global provider of specialty chemicals for the surface finishing industry, for a purchase price expected to be approximately €420 million, subject to adjustments. The Company expects to fund this acquisition with $400 million of add-on debt to its existing term loans and cash on hand. This acquisition is expected to close in September 2021, subject to customary closing conditions.
8


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)


3. INVENTORIES
The major components of inventory, on a net basis, were as follows:
 (dollars in millions)June 30, 2021December 31, 2020
Finished goods$163.3 $119.7 
Work in process35.0 23.0 
Raw materials and supplies82.1 60.4 
Total inventories$280.4 $203.1 
4. PROPERTY, PLANT AND EQUIPMENT
The major components of property, plant and equipment were as follows:
 (dollars in millions)June 30, 2021December 31, 2020
Land and leasehold improvements$53.1 $53.2 
Buildings and improvements144.4 139.5 
Machinery, equipment, fixtures and software267.7 245.8 
Construction in process24.8 22.3 
Total property, plant and equipment490.0 460.8 
Accumulated depreciation(247.6)(220.4)
Property, plant and equipment, net$242.4 $240.4 
For the three months ended June 30, 2021 and 2020, the Company recorded depreciation expense of $9.7 million and $10.5 million, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded depreciation expense of $19.1 million and $21.0 million, respectively.
During the third quarter of 2020, the Company met the requirements to classify a dormant facility in New Jersey, included in its Electronics business segment, as held for sale. The sale of the facility was completed in January 2021 and the Company recognized a gain of $3.9 million in "Selling, technical, general and administrative" in the Condensed Consolidated Statements of Operations. The Company had received initial deposits of $4.6 million in the second half of 2020 and received the remaining cash of $19.0 million associated with the sale during the first quarter of 2021. Cash flows associated with the sale of this facility are included in "Other, net" in the Condensed Consolidated Statements of Cash Flows as a cash inflow from investing activities.
5. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in the carrying amount of goodwill were as follows:
 (dollars in millions)ElectronicsIndustrial & SpecialtyTotal
Balance at December 31, 2020$1,274.0 $978.7 (1)$2,252.7 
Acquisition (2)
18.0  18.0 
Foreign currency translation0.8 (4.4)(3.6)
Balance at June 30, 2021$1,292.8 $974.3 $2,267.1 
(1) Includes accumulated impairment losses of $46.6 million.
(2) In May 2021, the Company completed the HKW Acquisition. The impact of this acquisition on the Company's results of operations was not material.    
9


ELEMENT SOLUTIONS INC AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
(Unaudited)


Indefinite-Lived Intangible Asset
The carrying value of the indefinite-lived intangible asset other than goodwill, which consisted of a trade name, was $68.0 million at June 30, 2021 and December 31, 2020, respectively.
Finite-Lived Intangible Assets
Intangible assets subject to amortization were as follows:
 June 30, 2021December 31, 2020
 (dollars in millions)Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
Customer relationships$1,003.6 $(472.1)$531.5 $984.3 $(435.4)$548.9 
Developed technology373.7 (227.5)146.2 400.0 (241.5)158.5 
Trade names92.2 (14.1)78.1 91.8 (11.3)80.5 
Other   1.7 (1.7) 
Total$1,469.5 $(713.7)$755.8 $1,477.8 $(689.9)$787.9 
For the three months ended June 30, 2021 and 2020, the Company recorded amortization expense on intangible assets of $30.4 million and $28.9 million, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded amortization expense on intangible assets of $60.1 million and $58.3 million, respectively.
6. DEBT
The Company’s debt obligations consisted of the following:
 (dollars in millions)Maturity DateInterest RateJune 30, 2021December 31, 2020
Term Loans (1)
2026
LIBOR plus 2.00%
$724.5 $727.5 
Senior Notes - $800 million (2)
20283.875%788.7 788.0 
Total debt1,513.2 1,515.5 
Less: current installments of long-term debt7.4 7.4 
Total long-term debt$1,505.8 $1,508.1 

(1) Term loans, net of unamortized discounts and debt issuance costs of $6.8 million and $7.6 million at June 30, 2021 and December 31, 2020, respectively. The effective interest rate was 2.4% at June 30, 2021 and December 31, 2020, respectively, including the effects of interest rate swaps and net investment hedges. See Note 7, Financial Instruments, for further information regarding the Company's interest rate swaps and net investment hedges.
(2) Senior notes, net of unamortized debt issuance costs of $11.3 million and $12.0 million at June 30, 2021 and December 31, 2020, respectively. The effective interest rate was 4.1% at June 30, 2021 and December 31, 2020, respectively.
Credit Agreement
The Company is a party to the Credit Agreement, which provides for senior secured credit facilities in an aggregate initial principal amount of $1.08 billion, consisting of a revolving credit facility in an aggregate initial principal amount of $330 million maturing in 2024 and a term loan in an aggregate initial principal amount of $750 million maturing in 2026.
Borrowings under the Credit Agreement bear interest at a per annum rate equal to a Base Rate, as defined in the Credit Agreement, plus, in each case, an applicable interest rate equal to a spread of 1.00% with respect to Base Rate Loans and a spread of 2.00% with respect to Eurocurrency Rate Loans. The Company is required to pay a commitment fee in respect of any undrawn portion of the revolving credit facility of 0.50% per annum, subject to a step-down to 0.375