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Item 1. Financial Statements

2024-10-24 compared with 2024-07-30 · 92 added, 84 removed, 386 unchanged (31% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per-share amounts) Second Quarter Ended June 30, Six Months Ended June 30,

(in thousands, except per-share amounts) Third Quarter Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

15 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands) Second Quarter Ended June 30, Six Months Ended June 30,

(in thousands) Third Quarter Ended September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

2 unchanged sentences

Pension plans and other postretirement benefits:

Amortization of prior service cost (credit) included in net periodic benefit cost (income), net of income tax expense (benefit) of $( 173 ) in second quarter 2024, $( 170 ) in second quarter 2023, $( 347 ) in six months 2024, and $( 341 ) in six months 2023.

Prior service credit (cost) arising during the period, net of income tax expense (benefit) of $ 0 in third quarter 2024, $( 159 ) in third quarter 2023, $ 0 in nine months 2024, and $( 159 ) in nine months 2023

0 ( 489 ) 0 ( 489 )

Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), net of income tax expense (benefit) of $( 122 ) in second quarter 2024, $( 119 ) in second quarter 2023, $( 244 ) in six months 2024, and $( 237 ) in six months 2023.

Amortization of prior service cost (credit) included in net periodic benefit cost (income), net of income tax expense (benefit) of $( 173 ) in third quarter 2024, $( 141 ) in third quarter 2023, $( 520 ) in nine months 2024, and $( 482 ) in nine months 2023

( 501 ) ( 454 ) ( 1,505 ) ( 1,547 )

Total pension plans and other postretirement benefits

Actuarial net gain (loss) arising during the period, net of income tax expense (benefit) of $( 552 ) in third quarter 2024, $( 239 ) in third quarter 2023, $( 552 ) in nine months 2024, and $( 239 ) in nine months 2023

( 1,600 ) ( 784 ) ( 1,600 ) ( 784 )

Foreign currency translation adjustments, net of income tax expense (benefit) of $( 850 ) in second quarter 2024, $ 491 in second quarter 2023, $( 1,088 ) in six months 2024, and $ 698 in six months 2023.

Amortization of actuarial net loss (gain) included in net periodic benefit cost (income), net of income tax expense (benefit) of $( 114 ) in third quarter 2024, $( 105 ) in third quarter 2023, $( 358 ) in nine months 2024, and $( 342 ) in nine months 2023

( 331 ) ( 332 ) ( 1,046 ) ( 1,081 )

Total pension plans and other postretirement benefits ( 2,432 ) ( 2,059 ) ( 4,151 ) ( 3,901 )

Foreign currency translation adjustments, net of income tax expense (benefit) of $ 137 in third quarter 2024, $( 327 ) in third quarter 2023, $( 951 ) in nine months 2024, and $ 371 in nine months 2023

21,885 ( 9,966 ) 10,578 9,114

Other comprehensive income (loss) 19,453 ( 12,025 ) 6,427 5,213

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts) June 30,

(in thousands, except share amounts) September 30,

2024 December 31,

2 unchanged sentences

Trade and other accounts receivable, less allowance for credit losses 487,607 432,349

495,516 432,349

Inventories 534,462 456,234

24 unchanged sentences

authorized shares - 80,000,000 ;

issued and outstanding shares - 9,594,110 at June 30, 2024 and 9,590,086 at December 31, 2023)

issued and outstanding shares - 9,595,011 at September 30, 2024 and 9,590,086 at December 31, 2023)

Accumulated other comprehensive loss ( 14,644 ) ( 21,071 )

9 unchanged sentences

Shares Amount

Balance at March 31, 2023 9,625,959 $ 0 $ ( 61,551 ) $ 883,351 $ 821,800

Balance at June 30, 2023 9,589,239 $ 0 $ ( 54,757 ) $ 947,497 $ 892,740

Net income 111,247 111,247

2 unchanged sentences

( 21,578 ) ( 21,578 )

Repurchases of common stock ( 36,589 ) ( 634 ) ( 13,894 ) ( 14,528 )

Tax withholdings related to stock-based compensation ( 76 ) ( 33 ) ( 33 )

Stock-based compensation 988 1,590 2 1,592

Balance at September 30, 2023 9,590,151 $ 1,557 $ ( 66,782 ) $ 1,037,168 $ 971,943

Balance at June 30, 2024 9,594,110 $ 2,052 $ ( 34,097 ) $ 1,267,393 $ 1,235,348

Balance at March 31, 2024 9,594,250 $ 1,406 $ ( 28,874 ) $ 1,179,756 $ 1,152,288

Net income 132,322 132,322

3 unchanged sentences

Stock-based compensation 901 1,149 1 1,150

Balance at June 30, 2024 9,594,110 $ 2,052 $ ( 34,097 ) $ 1,267,393 $ 1,235,348

Balance at September 30, 2024 9,595,011 $ 3,201 $ ( 14,644 ) $ 1,375,729 $ 1,364,286

Balance at December 31, 2022 9,702,147 $ 0 $ ( 71,995 ) $ 834,402 $ 762,407

7 unchanged sentences

Stock-based compensation 9,572 3,447 ( 9 ) 3,438

Balance at June 30, 2023 9,589,239 $ 0 $ ( 54,757 ) $ 947,497 $ 892,740

Balance at September 30, 2023 9,590,151 $ 1,557 $ ( 66,782 ) $ 1,037,168 $ 971,943

Balance at December 31, 2023 9,590,086 $ 2,130 $ ( 21,071 ) $ 1,096,002 $ 1,077,061

6 unchanged sentences

Stock-based compensation 6,741 2,189 12 2,201

Balance at June 30, 2024 9,594,110 $ 2,052 $ ( 34,097 ) $ 1,267,393 $ 1,235,348

Balance at September 30, 2024 9,595,011 $ 3,201 $ ( 14,644 ) $ 1,375,729 $ 1,364,286

See accompanying Notes to Condensed Consolidated Financial Statements

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) Six Months Ended June 30,

(in thousands) Nine Months Ended

September 30,

Cash and cash equivalents at beginning of year $ 111,936 $ 68,712

28 unchanged sentences

Financial Statement Presentation

In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair presentation of, in all material respects, our consolidated financial position as of June 30, 2024 and December 31, 2023, our consolidated results of operations, comprehensive income, and changes in shareholders' equity for the second quarter and six months ended June 30, 2024 and June 30, 2023, and our cash flows for the six months ended June 30, 2024 and June 30, 2023.

In the opinion of management, the accompanying consolidated financial statements of NewMarket Corporation and its subsidiaries contain all necessary adjustments for the fair presentation of, in all material respects, our consolidated financial position as of September 30, 2024 and December 31, 2023, our consolidated results of operations, comprehensive income, and changes in shareholders' equity for the third quarter and nine months ended September 30, 2024 and September 30, 2023, and our cash flows for the nine months ended September 30, 2024 and September 30, 2023.

All adjustments are of a normal, recurring nature, unless otherwise disclosed.

These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the NewMarket Corporation Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report), as filed with the Securities and Exchange Commission (SEC).

The results of operations for the six month period ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

The results of operations for the nine month period ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024.

The December 31, 2023 condensed consolidated balance sheet data was derived from the audited financial statements included in the 2023 Annual Report but does not include all disclosures required by accounting principles generally accepted in the United States of America.

4 unchanged sentences

For those vendors who opt to participate in the program, we pay the finance provider the full amount of the invoices on the normal due date.

At both June 30, 2024 and December 31, 2023, the amount of confirmed invoices under the supplier finance program was not material.

At both September 30, 2024 and December 31, 2023, the amount of confirmed invoices under the supplier finance program was not material.

Acquisition of Business

30 unchanged sentences

We are continuing to finalize the valuation of certain assets and liabilities and expect to complete our valuations within one year of the date of acquisition.

Acquisition-related charges of $ 1 million consisted primarily of legal and professional fees and are included in selling, general, and administrative expenses in our Consolidated Statements of Income.

We are accounting for this acquisition using the acquisition method of accounting for business combinations under the provisions of Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 805, Business Combinations (ASC 805) and have included the results of operations of the acquired business in our Consolidated Statement of Income from the date of acquisition, as well as in the specialty materials segment in Note 4.

These results include a charge related to the sale of finished goods inventory acquired, which was recorded at fair value on the acquisition date and sold to customers from the date of acquisition through June 30, 2024.

The following table presents the financial results in thousands for AMPAC from the date of acquisition through June 30, 2024 and for the second quarter ended June 30, 2024.

Quarter Ended June 30, 2024 January 16 to June 30, 2024

The following table presents the financial results in thousands for AMPAC from the date of acquisition through September 30, 2024 and for the third quarter ended September 30, 2024.

Quarter Ended September 30, 2024 January 16 to September 30, 2024

Net sales $ 59,094 $ 114,151

Income (loss) before income taxes 4,923 ( 78 )

The following table presents our estimated unaudited pro forma consolidated results for the second quarter and six months ended June 30, 2024 and June 30, 2023, assuming the acquisition of AMPAC had occurred on January 1, 2023.

Income before income tax expense 16,274 16,196

The following table presents our estimated unaudited pro forma consolidated results for the third quarter and nine months ended September 30, 2024 and September 30, 2023, assuming the acquisition of AMPAC had occurred on January 1, 2023.

The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been realized if the acquisition had been completed at the beginning of 2023, nor is it indicative of expected results for any future period.

In addition, no effect is given to any future synergistic benefits that could result from the integration of AMPAC into NewMarket.

Unaudited pro forma information for the second quarter and six months ended June 30, 2024 and June 30, 2023 includes adjustments to depreciation and amortization based upon the fair value allocation of the purchase price to AMPAC's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2023, as well as adjustments for debt-related costs and management fees.

The acquisition-related costs and the charge related to the fair value adjustment to acquisition-date inventory were recognized in actual results during the second quarter and six months ended June 30, 2024, but for the presentation below, these costs are excluded from 2024 unaudited pro forma income before income taxes and are instead reflected in 2023 pro forma income before income taxes as though they were incurred during the second quarter and six months ended June 30, 2023.

Unaudited pro forma information for the third quarter and nine months ended September 30, 2024 and September 30, 2023 includes adjustments to depreciation and amortization based upon the fair value allocation of the purchase price to AMPAC's tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2023, as well as adjustments for debt-related costs and management fees.

The acquisition-related costs and the charge related to the fair value adjustment to acquisition-date inventory were recognized in actual results during the third quarter and nine months ended September 30, 2024, but for the presentation below, these costs are excluded from 2024 unaudited pro forma income before income taxes and are instead reflected in 2023 pro forma income before income taxes as though they were incurred during the third quarter and nine months ended September 30, 2023.

NEWMARKET CORPORATION AND SUBSIDIARIES

1 unchanged sentence

Pro Forma Supplemental Information (unaudited) (in thousands)

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended

September 30, Nine Months Ended

September 30,

Consolidated 2024 2023 2024 2023

Net sales $ 724,947 $ 734,100 $ 2,137,011 $ 2,160,279

Income before income taxes 144,971 113,162 284,975 219,146

Income before income tax expense 172,013 151,040 456,988 370,186

Our revenues are predominantly derived from the manufacture and sale of petroleum additives products.

8 unchanged sentences

These prepayments from customers are recorded as a contract liability until we recognize the revenue.

Prepayments from our customers totaled $ 6.5 million at June 30, 2024, primarily from specialty materials segment customers, and $ 0.3 million at December 31, 2023.

Some of our contracts also include variable consideration in the form of rebates, tiered pricing, and/or business development funds.

We regularly review these and make adjustments to estimated amounts when necessary, recognizing the full amount of any adjustment in the period identified.

We regularly review these and make adjustments when necessary, recognizing the full amount of any adjustment in the period identified.

The following table provides information on our net sales by geographic area.

Information on net sales by segment is presented in Note 4.

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2024 2023 2024 2023

10 unchanged sentences

Net Sales by Segment

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2024 2023 2024 2023

7 unchanged sentences

Segment Operating Profit

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended

September 30, Nine Months Ended

September 30,

(in thousands) 2024 2023 2024 2023

7 unchanged sentences

Income before income tax expense $ 169,171 $ 134,482 $ 449,858 $ 384,340

$ 142,994 $ 124,710 $ 280,687 $ 249,858

Pension Plans and Other Postretirement Benefits

The table below shows cash contributions made during the six months ended June 30, 2024, as well as the remaining cash contributions we expect to make during the year ending December 31, 2024, for our domestic and foreign pension plans and domestic postretirement benefit plan.

(in thousands) Actual Cash Contributions for Six Months Ended June 30, 2024 Expected Remaining Cash Contributions for Year Ending December 31, 2024

The table below shows cash contributions made during the nine months ended September 30, 2024, as well as the remaining cash contributions we expect to make during the year ending December 31, 2024, for our domestic and foreign pension plans and domestic postretirement benefit plan.

(in thousands) Actual Cash Contributions for Nine Months Ended

September 30, 2024 Expected Remaining Cash Contributions for Year Ending

December 31, 2024

Domestic plans

11 unchanged sentences

Pension Benefits Postretirement Benefits

Second Quarter Ended June 30,

Third Quarter Ended September 30,

(in thousands) 2024 2023 2024 2023

6 unchanged sentences

Pension Benefits Postretirement Benefits

Six Months Ended June 30,

Nine Months Ended September 30,

(in thousands) 2024 2023 2024 2023

6 unchanged sentences

Pension Benefits

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended September 30, Nine Months Ended September 30,

(in thousands) 2024 2023 2024 2023

6 unchanged sentences

Earnings Per Share

We had 34,538 shares of nonvested restricted stock at June 30, 2024 and 34,448 shares of nonvested restricted stock at June 30, 2023 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive.

We had 34,474 shares of nonvested restricted stock at September 30, 2024 and 34,071 shares of nonvested restricted stock at September 30, 2023 that were excluded from the calculation of diluted earnings per share, as their effect on earnings per share would be anti-dilutive.

The nonvested restricted stock is considered a participating security since the restricted stock contains nonforfeitable rights to dividends.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Second Quarter Ended June 30, Six Months Ended June 30,

Third Quarter Ended September 30, Nine Months Ended

September 30,

(in thousands, except per-share amounts) 2024 2023 2024 2023

2 unchanged sentences

Earnings allocated to participating securities ( 474 ) ( 393 ) ( 1,247 ) ( 1,055 )

( 400 ) ( 356 ) ( 773 ) ( 662 )

Net income attributable to common shareholders after allocation of earnings to participating securities $ 131,848 $ 110,854 $ 350,427 $ 307,399

$ 111,220 $ 99,268 $ 218,579 $ 196,545

Earnings per share denominator:

Weighted-average number of shares of common stock outstanding - basic and diluted 9,561 9,556 9,559 9,592

9,560 9,577 9,559 9,610

Earnings per share - basic and diluted $ 13.79 $ 11.60 $ 36.66 $ 32.05

(in thousands)

September 30,

2024 December 31,

4 unchanged sentences

Intangibles (Net of Amortization) and Goodwill

The net carrying amount of intangibles and goodwill was $ 763 million at June 30, 2024 and $ 125 million at December 31, 2023.

The net carrying amount of intangibles and goodwill was $ 757 million at September 30, 2024 and $ 125 million at December 31, 2023.

The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.

June 30, 2024 December 31, 2023

September 30, 2024 December 31, 2023

(in thousands) Gross

10 unchanged sentences

$ 779,710 $ 22,650 $ 137,381 $ 12,739

Of the total intangibles and goodwill, $ 124 million is attributable to the petroleum additives segment and $ 639 million is attributable to the specialty materials segment.

The change in the gross carrying amount between December 31, 2023 and June 30, 2024 is due to the identifiable intangible assets and goodwill from the acquisition of AMPAC, as well as the write-off of fully amortized identifiable intangible assets and the foreign currency fluctuation on goodwill in the petroleum additives segment.

Of the total intangibles (net of amortization) and goodwill, $ 125 million is attributable to the petroleum additives segment and $ 632 million is attributable to the specialty materials segment.

The change in the gross carrying amount between December 31, 2023 and September 30, 2024 is due to the identifiable intangible assets and goodwill from the acquisition of AMPAC, as well as the write-off of fully amortized identifiable intangible assets and the foreign currency fluctuation on goodwill in the petroleum additives segment.

See Note 2 for further information on the intangibles and goodwill obtained with the AMPAC acquisition.

3 unchanged sentences

Amortization expense was (in thousands):

Second quarter ended June 30, 2024 $ 6,388

Six months ended June 30, 2024 11,760

Second quarter ended June 30, 2023 355

Six months ended June 30, 2023 711

Third quarter ended September 30, 2024 $ 6,351

Nine months ended September 30, 2024 18,111

Third quarter ended September 30, 2023 748

Nine months ended September 30, 2023 1,459

Estimated amortization expense for the remainder of 2024, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):

2024 $ 12,694

We amortize the formulas and technology over 8 years, the customer bases over 17.5 to 20 years, and the trademarks and trade names over 15 years.

Long-term Debt

(in thousands) June 30,

(in thousands) September 30,

2024 December 31,

9 unchanged sentences

The 3.78 % senior notes are unsecured and were issued in a 2017 private placement with The Prudential Insurance Company of America and certain other purchasers.

We were in compliance with all covenants under all issuances of senior notes as of June 30, 2024 and December 31, 2023.

We were in compliance with all covenants under all issuances of senior notes as of September 30, 2024 and December 31, 2023.

Term Loan - On January 22, 2024, NewMarket entered into an unsecured credit agreement for a $ 250 million term loan (the Term Loan Credit Agreement), which matures on January 22, 2026.

7 unchanged sentences

All capitalized terms are as defined in the Term Loan Credit Agreement.

The Term Loan Credit Agreement contains certain customary covenants, including financial covenants, which require NewMarket to maintain a consolidated Leverage Ratio (as defined in the Term Loan Credit Agreement) of no more than 3.75 to 1.00 except during an Increased Leverage Period (as defined in the Term Loan Credit Agreement).

We were in compliance with all covenants under the term loan as of June 30, 2024.

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We were in compliance with all covenants under the term loan as of September 30, 2024.

Revolving Credit Facility - On January 22, 2024, NewMarket entered into a credit agreement for a new $ 900 million revolving credit facility (the Revolving Credit Agreement).

10 unchanged sentences

The Revolving Credit Agreement contains certain customary covenants, including financial covenants, which require NewMarket to maintain a consolidated Leverage Ratio (as defined in the Revolving Credit Agreement) of no more than 3.75 to 1.00 except during an Increased Leverage Period (as defined in the Revolving Credit Agreement).

We were in compliance with all covenants under the revolving credit facility in effect as of June 30, 2024 and December 31, 2023.

We paid financing costs in 2024 of approximately $ 1.8 million related to this revolving credit facility and carried over deferred financing costs from the former revolving credit facility of approximately $ 0.4 million, resulting in total deferred financing costs of $ 2.2 million as of June 30, 2024, which we are amortizing over the term of the Revolving Credit Agreement.

The average interest rate for borrowings under the revolving credit agreements in place during a given period was 6.6 % during the first six months of 2024 and 6.2 % during the full year of 2023.

Outstanding borrowings under the applicable revolving credit facility amounted to $ 279 million at June 30, 2024 and none at December 31, 2023.

Outstanding letters of credit amounted to approximately $ 2 million at both June 30, 2024 and December 31, 2023.

The unused portion of the applicable revolving credit facility amounted to $ 619 million at June 30, 2024 and $ 898 million at December 31, 2023.

We were in compliance with all covenants under the revolving credit facility in effect as of September 30, 2024 and December 31, 2023.

We paid financing costs in 2024 of approximately $ 1.8 million related to this revolving credit facility and carried over deferred financing costs from the former revolving credit facility of approximately $ 0.4 million, resulting in total gross deferred financing costs of $ 2.2 million as of September 30, 2024, which we are amortizing over the term of the Revolving Credit Agreement.

The average interest rate for borrowings under the revolving credit agreements in place during a given period was 6.6 % during the first nine months of 2024 and 6.2 % during the year ended December 31, 2023.

Outstanding borrowings under the applicable revolving credit facility amounted to $ 191 million at September 30, 2024 and none at December 31, 2023.

Outstanding letters of credit amounted to approximately $ 2 million at both September 30, 2024 and December 31, 2023.

The unused portion of the applicable revolving credit facility amounted to $ 707 million at September 30, 2024 and $ 898 million at December 31, 2023.

Commitments and Contingencies

4 unchanged sentences

While it is not possible to predict or determine with certainty the outcome of any legal proceeding, we believe the outcome of any of these proceedings, or all of them combined, will not result in a material adverse effect on our consolidated results of operations, financial condition, or cash flows.

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Environmental

1 unchanged sentence

While we believe we are currently adequately accrued for known environmental issues, it is possible that unexpected future costs could have a significant impact on our consolidated financial position, results of operations, and cash flows.

Our total accruals for environmental remediation, dismantling, and decontamination were approximately $ 11 million at both June 30, 2024 and December 31, 2023.

Our total accruals for environmental remediation, dismantling, and decontamination were approximately $ 11 million at both September 30, 2024 and December 31, 2023.

Of the total accrual, the current portion is included in accrued expenses and the noncurrent portion is included in other noncurrent liabilities on the Condensed Consolidated Balance Sheets .

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Our more significant environmental sites include a former plant site in Louisiana and a Houston, Texas plant site.

Together, the amounts accrued on a discounted basis related to these sites represented approximately $ 9 million of the total accrual above at both June 30, 2024 and December 31, 2023, using discount rates ranging from 3 % to 9 % for both periods.

The aggregate undiscounted amount for these sites was $ 11 million at both June 30, 2024 and December 31, 2023.

At June 30, 2024, we had commitments of approximately $ 3 million for leases that have not yet commenced.

Our more significant environmental sites include a former plant site in Baton Rouge, Louisiana and a Houston, Texas plant site.

Together, the amounts accrued on a discounted basis related to these sites represented approximately $ 9 million of the total accrual above at both September 30, 2024 and December 31, 2023, using discount rates ranging from 3 % to 9 % for both periods.

The aggregate undiscounted amount for these sites was $ 11 million at both September 30, 2024 and December 31, 2023.

At September 30, 2024, we had commitments of approximately $ 3 million for leases that have not yet commenced.

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss

5 unchanged sentences

Other comprehensive income (loss) before reclassifications ( 1,273 ) 9,114 7,841

0 19,080 19,080

Amounts reclassified from accumulated other comprehensive loss (a) ( 2,628 ) 0 ( 2,628 )

( 1,842 ) 0 ( 1,842 )

Other comprehensive income (loss) ( 3,901 ) 9,114 5,213

( 1,842 ) 19,080 17,238

Balance at June 30, 2023 $ 52,720 $ ( 107,477 ) $ ( 54,757 )

Balance at September 30, 2023 $ 50,661 $ ( 117,443 ) $ ( 66,782 )

Balance at December 31, 2023 $ 79,966 $ ( 101,037 ) $ ( 21,071 )

Other comprehensive income (loss) before reclassifications ( 1,600 ) 10,578 8,978

0 ( 11,307 ) ( 11,307 )

Amounts reclassified from accumulated other comprehensive loss (a) ( 2,551 ) 0 ( 2,551 )

( 1,719 ) 0 ( 1,719 )

Other comprehensive income (loss) ( 4,151 ) 10,578 6,427

( 1,719 ) ( 11,307 ) ( 13,026 )

Balance at June 30, 2024 $ 78,247 $ ( 112,344 ) $ ( 34,097 )

Balance at September 30, 2024 $ 75,815 $ ( 90,459 ) $ ( 14,644 )

(a) The pension plan and other postretirement benefit components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost (income).

1 unchanged sentence

Fair Value Measurements

The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets, as well as the fair value, was $ 88 million at June 30, 2024 and $ 112 million at December 31, 2023.

The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets, as well as the fair value, was $ 80 million at September 30, 2024 and $ 112 million at December 31, 2023.

The fair value is classified as Level 1 in the fair value hierarchy.

No material events occurred during the six months ended June 30, 2024 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis.

No material events occurred during the nine months ended September 30, 2024 requiring adjustment to the recognized balances of assets or liabilities which are recorded at fair value on a nonrecurring basis.

NEWMARKET CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Long-term debt – We record the carrying amount of our long-term debt at historical cost, less deferred financing costs related to our outstanding senior notes and term loan.

The estimated fair value of our long-term debt is shown in the table below and is based primarily on estimated current rates available to us for debt of the same remaining duration and adjusted for nonperformance risk and credit risk.

The estimated fair value of our publicly traded outstanding senior notes included in the table below is based on the last quoted price closest to June 30, 2024.

The fair value of our debt instruments is classified as Level 2.

June 30, 2024 December 31, 2023

The estimated fair value of our publicly traded outstanding senior notes included in the table below is based on the last quoted price closest to September 30, 2024.

The fair value of our debt instruments is classified as Level 2 in the fair value hierarchy.

September 30, 2024 December 31, 2023

(in thousands) Carrying

16 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements