tg-20210630
000085042912/312021Q1FALSE33,727,3177.5June 30,
2021
June 30, 2021
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
(Mark One)
xQUARTERLY 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 1-10258 
Tredegar Corporation
(Exact Name of Registrant as Specified in Its Charter)
 
Virginia 54-1497771
(State or Other Jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
1100 Boulders Parkway
Richmond,Virginia 23225
(Address of Principal Executive Offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: (804) 330-1000
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, no par valueTGNew 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  x    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 (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    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 filerxSmaller reporting company¨
Non-accelerated filer
¨ 
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  x
The number of shares of Common Stock, no par value, outstanding as of July 30, 2021: 33,727,317



PART I - FINANCIAL INFORMATION 

Item 1.    Financial Statements.
Tredegar Corporation
Condensed Consolidated Balance Sheets
(In Thousands, Except Share Data)
(Unaudited)
June 30,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$18,298 $11,846 
Accounts and other receivables, net of allowance for doubtful accounts and sales returns of $2,848 in 2021 and $2,797 in 2020
99,652 86,327 
Income taxes recoverable141 2,807 
Inventories81,161 66,437 
Prepaid expenses and other15,219 19,679 
Current assets of discontinued operations151 1,339 
Total current assets214,622 188,435 
Property, plant and equipment, at cost488,580 475,619 
Less accumulated depreciation(320,023)(309,074)
Net property, plant and equipment168,557 166,545 
Right-of-use leased assets14,973 16,037 
Investment in kaléo (cost basis of $7,500)
35,200 34,600 
Identifiable intangible assets, net17,408 18,820 
Goodwill67,708 67,708 
Deferred income taxes14,205 19,068 
Other assets2,691 3,506 
Non-current assets of discontinued operations151 151 
Total assets$535,515 $514,870 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable$113,202 $89,702 
Accrued expenses33,272 40,741 
Lease liability, short-term2,078 2,082 
Income taxes payable767 706 
Current liabilities of discontinued operations1,033 7,521 
Total current liabilities150,352 140,752 
Lease liability, long-term13,904 14,949 
Long-term debt117,000 134,000 
Pension and other postretirement benefit obligations, net105,161 110,585 
Other non-current liabilities5,758 5,529 
Total liabilities392,175 405,815 
Shareholders’ equity:
Common stock, no par value (issued and outstanding 33,713,597 shares at June 30, 2021 and 33,457,176 shares at December 31, 2020)
52,940 50,066 
Common stock held in trust for savings restoration plan (106,479 shares at June 30, 2021 and 105,067 shares at December 31, 2020)
(2,109)(2,087)
Accumulated other comprehensive income (loss):
Foreign currency translation adjustment(82,804)(84,149)
Gain (loss) on derivative financial instruments3,496 2,264 
Pension and other postretirement benefit adjustments(89,882)(96,519)
Retained earnings261,699 239,480 
Total shareholders’ equity143,340 109,055 
Total liabilities and shareholders’ equity$535,515 $514,870 
See accompanying notes to financial statements.
2


Tredegar Corporation
Condensed Consolidated Statements of Income (Loss)
(In Thousands, Except Per Share Data)
(Unaudited)
 
Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Revenues and other items:
Sales$211,129 $186,259 $395,951 $378,396 
Other income (expense), net8,122 168 8,882 (25,964)
219,251 186,427 404,833 352,432 
Costs and expenses:
Cost of goods sold158,692 134,035 299,977 279,204 
Freight7,044 5,894 13,267 12,769 
Selling, general and administrative20,275 21,190 38,659 41,234 
Research and development1,436 2,237 3,157 4,407 
Amortization of identifiable intangibles723 753 1,446 1,511 
Pension and postretirement benefits3,540 3,567 7,080 7,134 
Interest expense891 549 1,713 1,104 
Asset impairments and costs associated with exit and disposal activities, net of adjustments199 10 368 71 
Goodwill impairment
   13,696 
Total192,800 168,235 365,667 361,130 
Income (loss) from continuing operations before income taxes26,451 18,192 39,166 (8,698)
Income tax expense (benefit)5,723 3,860 8,820 (2,366)
Net income (loss) from continuing operations20,728 14,332 30,346 (6,332)
Income (loss) from discontinued operations, net of tax508 (3,136)(79)(4,794)
Net income (loss)$21,236 $11,196 $30,267 $(11,126)
Earnings (loss) per share:
Basic:
Continuing operations$0.62 $0.43 $0.91 $(0.19)
Discontinued operations0.02 (0.10) (0.14)
Basic earnings (loss) per share$0.64 $0.33 $0.91 $(0.33)
Diluted:
Continuing operations$0.61 $0.43 $0.90 $(0.19)
Discontinued operations0.02 (0.10) (0.14)
Diluted earnings (loss) per share$0.63 $0.33 $0.90 $(0.33)
Shares used to compute earnings (loss) per share:
Basic33,594 33,435 33,500 33,374 
Diluted33,740 33,436 33,692 33,374 
See accompanying notes to financial statements.

3


Tredegar Corporation
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In Thousands)
(Unaudited)
Three Months Ended June 30,
 20212020
Net income (loss)$21,236 $11,196 
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment (net of tax of $463 in 2021 and net of tax of $177 in 2020)
3,993 (474)
Derivative financial instruments adjustment (net of tax of $547 in 2021 and net of tax of $339 in 2020)
1,468 1,258 
Amortization of prior service costs and net gains or losses (net of tax of $922 in 2021 and net of tax of $835 in 2020)
3,318 2,931 
Other comprehensive income (loss)8,779 3,715 
Comprehensive income (loss)$30,015 $14,911 

Six Months Ended June 30,
 20212020
Net income (loss)$30,267 $(11,126)
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment (net of tax of $191 in 2021 and net of tax benefit of $1,106 in 2020)
1,345 (12,003)
Derivative financial instruments adjustment (net of tax of $359 in 2021 and net of tax benefit of $887 in 2020)
1,232 (2,517)
Amortization of prior service costs and net gains or losses (net of tax of $1,846 in 2021 and net of tax of $1,671 in 2020)
6,637 5,862 
Other comprehensive income (loss)9,214 (8,658)
Comprehensive income (loss)$39,481 $(19,784)
See accompanying notes to financial statements.

4


Tredegar Corporation
Condensed Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
Six Months Ended June 30,
20212020
Cash flows from operating activities:
Net income (loss)$30,267 $(11,126)
Adjustments for noncash items:
Depreciation10,875 15,357 
Amortization of identifiable intangibles1,446 1,511 
Reduction of right-of-use lease asset1,066 1,402 
Goodwill impairment 13,696 
Deferred income taxes2,477 (8,461)
Accrued pension and post-retirement benefits7,080 7,134 
Stock-based compensation expense2,444 2,520 
(Gain) loss on investment in kaléo accounted for under the fair value method(600)24,800 
Changes in assets and liabilities:
Accounts and other receivables(12,840)2,303 
Inventories(14,020)(8,515)
Income taxes recoverable/payable2,680 8,799 
Prepaid expenses and other7,267 (1,912)
Accounts payable and accrued expenses8,040 (6,936)
Lease liability(1,051)(1,496)
Pension and postretirement benefit plan contributions(4,020)(2,130)
Other, net396 (884)
Net cash provided by operating activities41,507 36,062 
Cash flows from investing activities:
Capital expenditures(11,324)(8,806)
Net cash used in investing activities(11,324)(8,806)
Cash flows from financing activities:
Borrowings34,000 25,000 
Debt principal payments(51,000)(33,000)
Dividends paid(8,070)(8,025)
Other915 (586)
Net cash used in financing activities(24,155)(16,611)
Effect of exchange rate changes on cash424 (2,137)
Increase in cash & cash equivalents6,452 8,508 
Cash and cash equivalents at beginning of period11,846 31,422 
Cash and cash equivalents at end of period$18,298 $39,930 
See accompanying notes to financial statements.

5


Tredegar Corporation
Condensed Consolidated Statements of Shareholders’ Equity
(In Thousands, Except Share and Per Share Data)
(Unaudited)

The following summarizes the changes in shareholders’ equity for the three month period ended June 30, 2021:
Accumulated Other Comprehensive Income (Loss)
Common StockRetained EarningsTrust for Savings Restoration PlanForeign Currency TranslationGain (Loss) on Derivative Financial InstrumentsPension & Other Post-retirement Benefit AdjustmentTotal Shareholders’ Equity
Balance April 1, 2021$51,557 $244,496 $(2,097)$(86,797)$2,028 $(93,200)$115,987 
Net income (loss)— 21,236 — — — — 21,236 
Foreign currency translation adjustment (net of tax of $463)
— — — 3,993 — — 3,993 
Derivative financial instruments adjustment (net of tax of $547)
— — — — 1,468 — 1,468 
Amortization of prior service costs and net gains or losses (net of tax of $922)
— — — — — 3,318 3,318 
Cash dividends declared ($0.12 per share)
— (4,045)— — — — (4,045)
Stock-based compensation expense1,383 — — — — — 1,383 
Tredegar common stock purchased by trust for savings restoration plan— 12 (12)— — — — 
Balance June 30, 2021
$52,940 $261,699 $(2,109)$(82,804)$3,496 $(89,882)$143,340 

6


The following summarizes the changes in shareholders’ equity for the six month period ended June 30, 2021:
Accumulated Other Comprehensive Income (Loss)
Common StockRetained EarningsTrust for Savings Restoration PlanForeign Currency TranslationGain (Loss) on Derivative Financial InstrumentsPension & Other Post-retirement Benefit AdjustmentTotal Shareholders’ Equity
Balance January 1, 2021$50,066 $239,480 $(2,087)$(84,149)$2,264 $(96,519)$109,055 
Net income (loss)— 30,267 — — — — 30,267 
Foreign currency translation adjustment (net of tax of $191)
— — — 1,345 — — 1,345 
Derivative financial instruments adjustment (net of tax of $359)
— — — — 1,232 — 1,232 
Amortization of prior service costs and net gains or losses (net of tax of $1,846)
— — — — — 6,637 6,637 
Cash dividends declared ($0.24 per share)
— (8,070)— — — — (8,070)
Stock-based compensation expense1,959 — — — — — 1,959 
Issued upon exercise of stock options915 — — — — — 915 
Tredegar common stock purchased by trust for savings restoration plan— 22 (22)— — — — 
Balance June 30, 2021
$52,940 $261,699 $(2,109)$(82,804)$3,496 $(89,882)$143,340 

7


The following summarizes the changes in shareholders’ equity for the three month period ended June 30, 2020:
Accumulated Other Comprehensive Income (Loss)
Common StockRetained EarningsTrust for Savings Restoration PlanForeign Currency TranslationGain (Loss) on Derivative Financial InstrumentsPension & Other Post-retirement Benefit AdjustmentTotal Shareholders’ Equity
Balance April 1, 2020$46,054 $504,161 $(1,601)$(112,192)$(5,082)$(92,750)$338,590 
Net income (loss)— 11,196 — — — — 11,196 
Foreign currency translation adjustment (net of tax of $177)
— — — (474)— — (474)
Derivative financial instruments adjustment (net of tax of $339)
— — — — 1,258 — 1,258 
Amortization of prior service costs and net gains or losses (net of tax of $835)
— — — — — 2,931 2,931 
Cash dividends declared ($0.12 per share)
— (4,021)— — — — (4,021)
Stock-based compensation expense1,394 — — — — — 1,394 
Tredegar common stock purchased by trust for savings restoration plan— 9 (9)— — — — 
Balance June 30, 2020
$47,448 $511,345 $(1,610)$(112,666)$(3,824)$(89,819)$350,874 



8


The following summarizes the changes in shareholders’ equity for the six month period ended June 30, 2020:
  Accumulated Other
Comprehensive Income (Loss)
 
 Common
Stock
Retained
Earnings
Trust for
Savings
Restoration
Plan
Foreign
Currency
Translation
Gain
(Loss) on
Derivative
Financial
Instruments
Pension & Other Post-retirement Benefit AdjustmentTotal
Shareholders’
Equity
Balance at January 1, 2020$45,514 $530,478 $(1,592)$(100,663)$(1,307)$(95,681)$376,749 
Net income (loss)— (11,126)— — — — (11,126)
Foreign currency translation adjustment (net of tax benefit of $1,106)
— — — (12,003)— — (12,003)
Derivative financial instruments adjustment (net of tax benefit of $887)
— — — — (2,517)— (2,517)
Amortization of prior service costs and net gains or losses (net of tax of $1,671)
— — — — — 5,862 5,862 
Cash dividends declared ($0.24 per share)
— (8,025)— — — — (8,025)
Stock-based compensation expense2,520 — — — — — 2,520 
Repurchase of employee common stock for tax withholdings(586)— — — — — (586)
Tredegar common stock purchased by trust for savings restoration plan— 18 (18)— — — — 
Balance at June 30, 2020$47,448 $511,345 $(1,610)$(112,666)$(3,824)$(89,819)$350,874 
See accompanying notes to financial statements.

9


TREDEGAR CORPORATION
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1    BASIS OF PRESENTATION
In the opinion of management, the accompanying condensed consolidated financial statements of Tredegar Corporation and its subsidiaries (“Tredegar,” “the Company,” “we,” “us” or “our”) contain all adjustments necessary to state fairly, in all material respects, Tredegar’s consolidated financial position as of June 30, 2021, the consolidated results of operations for the three and six months ended June 30, 2021 and 2020, the consolidated cash flows for the six months ended June 30, 2021 and 2020, and the consolidated changes in shareholders’ equity for the six months ended June 30, 2021 and 2020, in accordance with U.S. generally accepted accounting principles (“GAAP”). All such adjustments, unless otherwise detailed in the notes to the condensed consolidated financial statements, are deemed to be of a normal, recurring nature.
The Company operates on a calendar fiscal year except for the Aluminum Extrusions segment, which operates on a 52/53-week fiscal year basis.  As such, the fiscal second quarter for 2021 and 2020 for this segment references 13-week periods ended June 27, 2021 and June 28, 2020, respectively.  The Company does not believe the impact of reporting the results of this segment as stated above is material to the consolidated financial results. The Company may fund or receive cash from the Aluminum Extrusions segment based on Aluminum Extrusion’s cash flows from operations during the intervening period from Aluminum Extrusion’s fiscal quarter end and the Company’s fiscal quarter end. There was no intercompany funding with Aluminum Extrusions between June 27, 2021 and June 30, 2021. As of December 31, 2020, the Company’s cash and cash equivalents declined by $3.8 million since the Company made payments to the Aluminum Extrusions segment to fund its working capital during the intervening period.
The financial position data as of December 31, 2020 that is included herein was derived from the audited consolidated financial statements provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”) but does not include all disclosures required by GAAP. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in the 2020 Form 10-K.
On October 30, 2020, the Company completed the sale of its personal care films business (“Personal Care Films”), which was part of its PE Films segment. The transaction excluded the packaging film lines and related operations located at the Pottsville, Pennsylvania manufacturing site (“Pottsville Packaging”), which are now being reported within the Surface Protection component of PE Films. All historical results for Personal Care Films have been presented as discontinued operations.
On December 31, 2020, the Company completed the sale of Bright View Technologies, which was part of its PE Films segment. The sale did not represent a strategic shift nor did it have a major effect on the Company's historical and ongoing operations, thus all financial information for Bright View Technologies has been presented in continuing operations.
The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the results to be expected for the full year.
Accounting Standards Adopted:
In December 2019, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2019-12, which simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. In the first quarter of 2021, the Company adopted ASU 2019-12, which did not have a material impact on the Company's consolidated financial statements.
2    DIVESTITURES AND ASSETS HELD FOR SALE
Divestitures
Personal Care Films
In 2020, the Company completed the sale of Personal Care Films for an aggregate purchase price of $60.5 million, subject to customary adjustments. The Company agreed to provide certain transition services related to finance, human resources and information technology ("IT") that ended during the second quarter of 2021, resulting in final cash proceeds of $64.1 million. Personal Care Films was previously reported in the PE Films segment.



10


The following table summarizes the financial results of discontinued operations reflected in the consolidated statements of income for the three and six months ended June 30, 2021 and 2020:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2021202020212020
Revenues and other items:
Sales$ $32,378 $ $68,544 
Other income (expense), net (180) (261)
 32,198  68,283 
Costs and expenses:
Cost of goods sold 27,785  57,927 
Freight 1,570  3,275 
Selling, general and administrative169 4,022 1,219 7,147 
Research and development 2,628  5,313 
Asset impairments and costs associated with exit and disposal activities, net of adjustments 126  526 
Adjustment to the fair value estimates used in the disposal of Personal Care Films(a)
(819) (1,118) 
Total(650)36,131 101 74,188 
Income (loss) from discontinued operations before income taxes650 (3,933)(101)(5,905)
Income tax expense (benefit)142 (797)(22)(1,111)
Income (loss) from discontinued operations, net of tax$508 $(3,136)$(79)$(4,794)
(a) Represents a net increase to the estimated fair value of Personal Care Films primarily due to lower costs associated with IT transition-related services to provide the seller developed assets, which did not exist at the time of the sale, to support the seller's IT infrastructure.
The assets and liabilities of the discontinued operations reflected in the consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively, were as follows:
June 30,December 31,
(In thousands)20212020
Assets
Prepaid expenses and other (a)
$151 $1,339 
Other non-current assets151 151 
Total assets of discontinued operations$302 $1,490 
Liabilities
Accrued expenses (a)
$1,033 $7,521 
(a) The consolidated balance sheet of discontinued operations as of June 30, 2021 includes $0.2 million of other receivables related to the settlement of customary post-closing adjustments, accrued severance of $0.6 million, and other miscellaneous accrued expenses of $0.4 million. The consolidated balance sheet of discontinued operations as of December 31, 2020 includes $0.4 million of other receivables related to the settlement of customary post-closing adjustments, deferred assets of $0.9 million and deferred obligations of $5.3 million related to transition services, accrued severance of $2.1 million, and other miscellaneous accrued expenses of $0.2 million.







11




The following table provides significant operating and investing cash flow information for discontinued operations:
Six Months Ended June 30,
(In thousands)20212020
Operating activities
Depreciation and amortization$ $4,394 
Asset impairment 334 
Other(1,118) 
Total(1,118)4,728 
Investing activities
Capital expenditures$ $(1,482)

Assets Held For Sale
In July 2019, the Company committed to a plan to close its manufacturing facility in Lake Zurich, Illinois, which historically was reported by the Company within the Personal Care Films component of its PE Films segment. During the third quarter of 2020, the held for sale criteria was met since the Company expected the sale of the facility to be completed within one year. The disposal group carrying value of $4.6 million consists of land, building, and building improvements and is reported in "Prepaid expenses and other" in the consolidated balance sheet. These assets were not included as part of the sale of Personal Care Films.
3    LONG-LIVED ASSETS & GOODWILL IMPAIRMENT
The Company assesses its long-lived assets for impairment when events and circumstances indicate that the carrying amount of the assets may not be recoverable. Long-lived assets consist primarily of buildings, machinery and equipment. During the three months ended June 30, 2021, the Company did not identify any indicators of impairment for long-lived assets.
The Company annually assesses goodwill for impairment on December 1st of each year or more frequently when events or circumstances indicate that the carrying amount of a reporting unit that includes goodwill exceeds its fair value. The Company evaluated whether triggering events occurred during the three months ended June 30, 2021 and 2020 for all reporting units that include goodwill and determined no events or circumstances existed that indicated the fair value of the reporting units are below their carrying amounts.
During the first three months of 2020, the Company determined that trigger events did occur for the Aluminum Extrusions’ reporting units created as a result of acquisitions in 2012 (“AACOA”) and in 2017 (“Futura”). As a result of the impairment testing performed, the Company recognized a goodwill impairment charge of $13.7 million ($10.5 million after taxes), which represented the entire amount of goodwill associated with the AACOA reporting unit. No impairment was identified for Futura.
The Company continues to monitor developments related to the coronavirus ("COVID-19") pandemic and may perform updated analyses during 2021 as necessary.
4    INVENTORIES
The components of inventories are as follows:
(In thousands)June 30, 2021December 31, 2020
Finished goods$20,378 $15,251 
Work-in-process12,271 9,098 
Raw materials29,774 25,913 
Stores, supplies and other18,738 16,175 
Total$81,161 $66,437 
12


5    EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income (loss) from continuing and discontinued operations by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income (loss) from continuing and discontinued operations by the weighted average common and potentially dilutive common equivalent shares outstanding, determined as follows:
Three Months EndedSix Months Ended
 June 30,June 30,
(In thousands)2021202020212020
Weighted average shares outstanding used to compute basic earnings per share33,594 33,435 33,500 33,374 
Incremental dilutive shares attributable to stock options and restricted stock146 1 192  
Shares used to compute diluted earnings per share33,740 33,436 33,692 33,374 

Incremental shares attributable to stock options and restricted stock are computed under the treasury stock method using the average market price during the related period. The average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 996,400 and 703,958, respectively, for the three and six months ended June 30, 2021. The Company had a net loss from continuing operations for the six months ended June 30, 2020, so there was no dilutive impact for such shares. For the three months ended June 30, 2020, average out-of-the-money options to purchase shares that were excluded from the calculation of incremental shares attributable to stock options and restricted stock were 1,567,709. If the Company had reported net income from continuing operations for the six months ended June 30, 2020, average out-of-the-money options to purchase shares that would have been excluded from the calculation of incremental shares attributable to stock options and restricted stock would have been 1,125,203.
6    ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2021:
(In thousands)Foreign
currency
translation
adjustment
Gain (loss) on
derivative
financial
instruments
Pension and other post-retirement benefit adjustmentsTotal
Beginning balance, January 1, 2021$(84,149)$2,264 $(96,519)$(178,404)
Other comprehensive income (loss) before reclassifications1,345 2,724  4,069 
Amounts reclassified from accumulated other comprehensive income (loss) (1,492)6,637 5,145 
Net other comprehensive income (loss) - current period1,345 1,232 6,637 9,214 
Ending balance, June 30, 2021$(82,804)$3,496 $(89,882)$(169,190)
13



The following table summarizes the after-tax changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2020:
(In thousands)Foreign
currency
translation
adjustment
Gain (loss) on
derivative
financial
instruments
Pension and other post-retirement benefit adjustmentsTotal
Beginning balance, January 1, 2020$(100,663)$(1,307)$(95,681)$(197,651)
Other comprehensive income (loss) before reclassifications(12,003)(6,242) (18,245)
Amounts reclassified from accumulated other comprehensive income (loss) 3,725 5,862 9,587 
Net other comprehensive income (loss) - current period(12,003)(2,517)5,862 (8,658)
Ending balance, June 30, 2020$(112,666)$(3,824)$(89,819)$(206,309)

Reclassifications of balances out of accumulated other comprehensive income (loss) into net income (loss) for the three months ended June 30, 2021 are summarized as follows:
(In thousands)Amount reclassified from other comprehensive income (loss)Location of gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (loss)
Gain (loss) on derivative financial instruments:
Aluminum future contracts, before taxes$1,372 Cost of sales
Foreign currency forward contracts, before taxes(147)Selling, general & administrative
Foreign currency forward contracts, before taxes16 Cost of sales
Total, before taxes1,241 
Income tax expense (benefit)257 Income tax expense (benefit)
Total, net of tax$984 
Amortization of pension and other post-retirement benefits:
Actuarial gain (loss) and prior service costs, before taxes$(4,240)(a)
Income tax expense (benefit)(922)Income tax expense (benefit)
Total, net of tax$(3,318)
(a)    This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost (see Note 9 for additional detail).
14


Reclassifications of balances out of accumulated other comprehensive income (loss) into net income (loss) for the six months ended June 30, 2021 are summarized as follows:
(In thousands)Amount reclassified from other comprehensive income (loss)Location of gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (loss)
Gain (loss) on derivative financial instruments:
Aluminum future contracts, before taxes$2,012 Cost of sales
Foreign currency forward contracts, before taxes(149)Selling, general & administrative
Foreign currency forward contracts, before taxes33 Cost of sales
Total, before taxes1,896 
Income tax expense (benefit)404 Income tax expense (benefit)
Total, net of tax$1,492 
Amortization of pension and other post-retirement benefits:
Actuarial gain (loss) and prior service costs, before taxes$(8,483)(a)
Income tax expense (benefit)(1,846)Income tax expense (benefit)
Total, net of tax$(6,637)
(a)    This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost (see Note 9 for additional detail).

Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the three months ended June 30, 2020 are summarized as follows:
(In thousands)Amount reclassified from other comprehensive income (loss)Location of gain (loss) reclassified from accumulated other comprehensive income (loss) to net income (loss)
Gain (loss) on derivative financial instruments:
Aluminum future contracts, before taxes$(1,551)Cost of sales
Foreign currency forward contracts, before taxes(1,798)Selling, general & administrative
Foreign currency forward contracts, before taxes16 Cost of sales
Total, before taxes(3,333)
Income tax expense (benefit)(721)Income tax expense (benefit)
Total, net of tax$(2,612)
Amortization of pension and other post-retirement benefits:
Actuarial gain (loss) and prior service costs, before taxes$(3,766)(a)
Income tax expense (benefit)(835)Income tax expense (benefit)
Total, net of tax$(2,931)
15


(a)    This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost (see Note 9 for additional detail).
Reclassifications of balances out of accumulated other comprehensive income (loss) into net income for the six months ended June 30, 2020 are summarized as follows:
(In thousands)Amount reclassified&