SEC Filing | Tredegar Corporation

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tg-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


¨			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 class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, no par value	TG	New 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 filer

Smaller 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 November 4, 2022: 34,000,642

Tredegar Corporation

Table of Contents


		Page

Part I	Financial Statements
Item 1.	Condensed Consolidated Balance Sheets (unaudited)		2
	Condensed Consolidated Statements of Income (Loss) (unaudited)		3
	Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)		4
	Condensed Consolidated Statements of Cash Flows (unaudited)		5
	Condensed Consolidated Statements of Shareholders' Equity (unaudited)		6
	Notes to the Condensed Consolidated Financial Statements (unaudited)		8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		40
Item 4.	Controls and Procedures		43

Part II	Other Information
Item 1A.	Risk Factors		45
Item 6.	Exhibits		45

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Tredegar Corporation

Condensed Consolidated Balance Sheets

(In Thousands, Except Share Data)

(Unaudited)


	September 30,		December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	19,250	$	30,521
Accounts and other receivables, net	110,077		103,312
Income taxes recoverable	1,834		2,558
Inventories	114,103		88,569
Prepaid expenses and other	9,601		11,275
Current assets of discontinued operations	151		178
Total current assets	255,016		236,413
Property, plant and equipment, at cost	520,371		498,311
Less: accumulated depreciation	(340,868)		(327,930)
Net property, plant and equipment	179,503		170,381
Right-of-use leased assets	14,356		13,847
Identifiable intangible assets, net	12,200		14,152
Goodwill	70,608		70,608
Deferred income taxes	11,820		15,723
Other assets	3,155		2,460
Total assets	$	546,658	$	523,584
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	126,848	$	123,760
Accrued expenses	36,894		33,104
Lease liability, short-term	2,003		2,158
Income taxes payable	1,391		9,333
Current liabilities of discontinued operations	71		193
Total current liabilities	167,207		168,548
Lease liability, long-term	13,160		12,831
Long-term debt	124,000		73,000
Pension and other postretirement benefit obligations, net	28,464		78,265

Other non-current liabilities	6,769		6,218
Total liabilities	339,600		338,862
Shareholders’ equity:
Common stock, no par value (issued and outstanding 33,982,479 shares at September 30, 2022 and 33,736,629 shares at December 31, 2021)	57,902		55,174
Common stock held in trust for savings restoration plan (111,861 shares at September 30, 2022 and 108,433 shares at December 31, 2021)	(2,174)		(2,135)
Accumulated other comprehensive income (loss):
Foreign currency translation adjustment	(87,826)		(85,792)
Gain (loss) on derivative financial instruments	(4,877)		901
Pension and other postretirement benefit adjustments	(56,963)		(64,613)
Retained earnings	300,996		281,187
Total shareholders’ equity	207,058		184,722
Total liabilities and shareholders’ equity	$	546,658	$	523,584

See accompanying notes to financial statements.

Tredegar Corporation

Condensed Consolidated Statements of Income (Loss)

(In Thousands, Except Per Share Data)

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues and other items:
Sales	$	238,486	$	209,517	$	749,415	$	605,468
Other income (expense), net	119		391		1,113		9,272
	238,605		209,908		750,528		614,740
Costs and expenses:
Cost of goods sold	200,582		170,756		601,930		470,733
Freight	9,500		7,264		28,619		20,531
Selling, general and administrative	19,018		16,767		59,160		55,422
Research and development	1,576		1,613		4,855		4,770
Amortization of identifiable intangibles	653		724		1,982		2,170
Pension and postretirement benefits	3,506		3,540		10,489		10,622
Interest expense	1,138		842		3,158		2,555
Asset impairments and costs associated with exit and disposal activities, net of adjustments	495		265		621		633
Total	236,468		201,771		710,814		567,436
Income (loss) from continuing operations before income taxes	2,137		8,137		39,714		47,304
Income tax expense (benefit)	1,125		1,908		7,460		10,728
Net income (loss) from continuing operations	1,012		6,229		32,254		36,576
Income (loss) from discontinued operations, net of tax	21		(26)		68		(104)
Net income (loss)	$	1,033	$	6,203	$	32,322	$	36,472

Earnings (loss) per share:
Basic:
Continuing operations	$	0.03	$	0.19	$	0.96	$	1.09
Discontinued operations	—		—		—		—
Basic earnings (loss) per share	$	0.03	$	0.19	$	0.96	$	1.09
Diluted:
Continuing operations	$	0.03	$	0.19	$	0.96	$	1.09
Discontinued operations	—		—		—		—
Diluted earnings (loss) per share	$	0.03	$	0.19	$	0.96	$	1.09
Shares used to compute earnings (loss) per share:
Basic	33,870		33,620		33,780		33,541
Diluted	33,871		33,649		33,808		33,678

See accompanying notes to financial statements.

Tredegar Corporation

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In Thousands)

(Unaudited)


	Three Months Ended September 30,
	2022		2021
Net income (loss)	$	1,033	$	6,203
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment (net of tax benefit of $148 in 2022 and net of tax benefit of $294 in 2021)	(2,340)		(2,788)
Derivative financial instruments adjustment (net of tax benefit of $818 in 2022 and net of tax benefit of $174 in 2021)	(2,547)		(717)
Amortization of prior service costs and net gains or losses (net of tax expense of $712 in 2022 and net of tax expense of $927 in 2021)	2,556		3,317
Other comprehensive income (loss)	(2,331)		(188)
Comprehensive income (loss)	$	(1,298)	$	6,015


	Nine Months Ended September 30,
	2022		2021
Net income (loss)	$	32,322	$	36,472
Other comprehensive income (loss):
Unrealized foreign currency translation adjustment (net of tax expense of $98 in 2022 and net of tax benefit of $103 in 2021)	(2,034)		(1,443)
Derivative financial instruments adjustment (net of tax benefit of $1,261 in 2022 and net of tax expense of $185 in 2021)	(5,778)		515
Amortization of prior service costs and net gains or losses (net of tax expense of $2,136 in 2022 and net of tax expense of $2,773 in 2021)	7,650		9,954
Other comprehensive income (loss)	(162)		9,026
Comprehensive income (loss)	$	32,160	$	45,498

See accompanying notes to financial statements.

Tredegar Corporation

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)


	Nine Months Ended September 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	32,322	$	36,472
Adjustments for noncash items:
Depreciation	17,538		16,169
Amortization of identifiable intangibles	1,982		2,170
Reduction of right-of-use lease asset	1,590		1,582
Deferred income taxes	3,078		4,120
Accrued pension and post-retirement benefits	10,519		10,622
Stock-based compensation expense	2,575		3,227
Gain on investment in kaléo	(1,406)		(879)
Changes in assets and liabilities:
Accounts and other receivables	(7,222)		(11,379)
Inventories	(24,855)		(19,902)
Income taxes recoverable/payable	(7,227)		111
Prepaid expenses and other	(5,365)		3,422
Accounts payable and accrued expenses	3,624		12,078
Lease liability	(1,737)		(1,566)
Pension and postretirement benefit plan contributions	(50,503)		(5,510)
Other, net	1,935		750
Net cash (used in) provided by operating activities	(23,152)		51,487
Cash flows from investing activities:
Capital expenditures	(25,527)		(19,576)
Proceeds from the sale of kaléo	1,406		—
Proceeds from the sale of assets	—		4,749
Net cash used in investing activities	(24,121)		(14,827)
Cash flows from financing activities:
Borrowings	279,250		69,250
Debt principal payments	(228,250)		(76,250)
Dividends paid	(12,552)		(12,114)
Debt financing costs	(1,245)		—
Other	(396)		915
Net cash provided by (used in) financing activities	36,807		(18,199)
Effect of exchange rate changes on cash	(805)		(54)
Increase (decrease) in cash & cash equivalents	(11,271)		18,407
Cash and cash equivalents at beginning of period	30,521		11,846
Cash and cash equivalents at end of period	$	19,250	$	30,253

See accompanying notes to financial statements.

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 September 30, 2022:


	Common Stock		Retained Earnings		Trust for Savings Restoration Plan		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance July 1, 2022	$	56,911	$	304,370	$	(2,161)	$	(147,335)	$	211,785
Net income (loss)	—		1,033		—		—		1,033
Foreign currency translation adjustment	—		—		—		(2,340)		(2,340)
Derivative financial instruments adjustment	—		—		—		(2,547)		(2,547)
Amortization of prior service costs and net gains or losses	—		—		—		2,556		2,556
Cash dividends declared ($0.13 per share)	—		(4,420)		—		—		(4,420)
Stock-based compensation expense	991		—		—		—		991
Tredegar common stock purchased by trust for savings restoration plan	—		13		(13)		—		—
Balance September 30, 2022	$	57,902	$	300,996	$	(2,174)	$	(149,666)	$	207,058

The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2022:


	Common Stock		Retained Earnings		Trust for Savings Restoration Plan		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance January 1, 2022	$	55,174	$	281,187	$	(2,135)	$	(149,504)	$	184,722
Net income (loss)	—		32,322		—		—		32,322
Foreign currency translation adjustment	—		—		—		(2,034)		(2,034)
Derivative financial instruments adjustment	—		—		—		(5,778)		(5,778)
Amortization of prior service costs and net gains or losses	—		—		—		7,650		7,650
Cash dividends declared ($0.37 per share)	—		(12,552)		—		—		(12,552)
Stock-based compensation expense	3,124		—		—		—		3,124
Repurchase of employee common stock for tax withholdings	(396)		—		—		—		(396)
Tredegar common stock purchased by trust for savings restoration plan	—		39		(39)		—		—
Balance September 30, 2022	$	57,902	$	300,996	$	(2,174)	$	(149,666)	$	207,058

The following summarizes the changes in shareholders’ equity for the three month period ended September 30, 2021:


	Common Stock		Retained Earnings		Trust for Savings Restoration Plan		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at July 1, 2021	$	52,940	$	261,699	$	(2,109)	$	(169,190)	$	143,340
Net income (loss)	—		6,203		—		—		6,203
Foreign currency translation adjustment	—		—		—		(2,788)		(2,788)
Derivative financial instruments adjustment	—		—		—		(717)		(717)
Amortization of prior service costs and net gains or losses	—		—		—		3,317		3,317
Cash dividends declared ($0.12 per share)	—		(4,042)		—		—		(4,042)
Stock-based compensation expense	966		—		—		—		966
Tredegar common stock purchased by trust for savings restoration plan	—		13		(13)		—		—
Balance at September 30, 2021	$	53,906	$	263,873	$	(2,122)	$	(169,378)	$	146,279

The following summarizes the changes in shareholders’ equity for the nine month period ended September 30, 2021:


	Common Stock		Retained Earnings		Trust for Savings Restoration Plan		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at January 1, 2021	$	50,066	$	239,480	$	(2,087)	$	(178,404)	$	109,055
Net income (loss)	—		36,472		—		—		36,472
Foreign currency translation adjustment	—		—		—		(1,443)		(1,443)
Derivative financial instruments adjustment	—		—		—		515		515
Amortization of prior service costs and net gains or losses	—		—		—		9,954		9,954
Cash dividends declared ($0.36 per share)	—		(12,114)		—		—		(12,114)
Stock-based compensation expense	2,925		—		—		—		2,925
Shares issued upon exercise of stock options	915		—		—		—		915
Tredegar common stock purchased by trust for savings restoration plan	—		35		(35)		—		—
Balance at September 30, 2021	$	53,906	$	263,873	$	(2,122)	$	(169,378)	$	146,279

See accompanying notes to financial statements.

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 condensed consolidated financial position as of September 30, 2022, the condensed consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, the condensed consolidated cash flows for the nine months ended September 30, 2022 and 2021, and the condensed consolidated changes in shareholders’ equity for the nine months ended September 30, 2022 and 2021, 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 third quarter for 2022 and 2021 for this segment references 13-week periods ended September 25, 2022 and September 26, 2021. 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 September 25, 2022 and September 30, 2022.

The financial position data as of December 31, 2021 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, 2021 (“2021 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 2021 Form 10-K.

The results of operations for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the full year.

Risks and Uncertainties

During the three months ended September 30, 2022, events and circumstances indicated that the Surface Protection reporting unit ("Surface Protection"), which is also the asset group, might be impaired. The Company performed a goodwill and long-lived impairment analysis for Surface Protection and determined that the fair value of Surface Protection exceeded its carrying value. Given the uncertain demand for Surface Protections products, it is reasonably possible that the cash flow estimates used in deriving such fair value measurements may change in the future.

As of September 30, 2022, the Surface Protection reporting unit had goodwill of $57.3 million and long-lived identifiable assets of $29.5 million.

Accounting Standards Adopted

In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate or by another reference rate expected to be discontinued because of reference rate reform. The guidance was effective beginning March 12, 2020 and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, which clarified the scope and application of the original guidance. In the second quarter of 2022, the Company adopted ASU 2020-04, which did not have a material impact on the Company’s consolidated financial statements.

Accounting Standards Not Yet Adopted

In September 2022, the FASB issued ASU 2022-04, which requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The guidance is effective for annual periods beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the potential impact of adopting this guidance, but does not expect it to have a material impact on the consolidated financial statements.

2. ACCOUNTS AND OTHER RECEIVABLES

As of September 30, 2022 and December 31, 2021, accounts receivable and other receivables, net include the following:


	September 30,		December 31,
(In thousands)	2022		2021
Customer receivables	$	108,438	$	102,090
Other receivables	3,959		2,958
Total accounts and other receivables	112,397		105,048
Less: Allowance for bad debts	(2,320)		(1,736)
Total accounts and other receivables, net	$	110,077	$	103,312

3. INVENTORIES

The components of inventories are as follows:


(In thousands)	September 30, 2022		December 31, 2021
Finished goods	$	30,025	$	25,199
Work-in-process	17,201		11,955
Raw materials	49,212		32,958
Stores, supplies and other	17,665		18,457
Total	$	114,103	$	88,569

4. PENSION AND OTHER POSTRETIREMENT BENEFITS

Tredegar sponsors a noncontributory defined benefit (pension) plan covering certain current and former U.S. employees. As of January 31, 2018, the plan no longer accrued benefits associated with crediting employees for service, thereby freezing all future benefits under the plan. On February 10, 2022, Tredegar announced the initiation of a process to terminate and settle its frozen defined benefit pension plan, which could take up to 24 months to complete. In connection therewith, on February 9, 2022, the Company contributed $50 million to the pension plan (the “Special Contribution”). The Company estimates that, with the Special Contribution, there will be no required minimum contributions to the pension plan until final settlement.

Tredegar also has a non-qualified supplemental pension plan covering certain employees. Effective December 31, 2005, further participation in this plan was terminated and benefit accruals for existing participants were frozen. Pension expense recognized for this plan was immaterial in the third quarter of 2022 and 2021, respectively. This information has been included in the pension benefit table below.

The components of net periodic benefit cost for the pension and other postretirement benefit programs reflected in the condensed consolidated statements of income for the three and nine months ended September 30, 2022 and 2021, are shown below:


	Pension Benefits				Other Post-Retirement Benefits
	Three Months Ended September 30,				Three Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Service cost	$	—	$	—	$	5	$	9
Interest cost	2,226		2,101		51		50
Expected return on plan assets	(2,044)		(2,862)		—		—
Amortization of prior service costs, (gains) losses and net transition asset	3,301		4,268		(33)		(24)
Net periodic benefit cost	$	3,483	$	3,507	$	23	$	35

	Pension Benefits				Other Post-Retirement Benefits
	Nine Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Service cost	$	—	$	—	$	15	$	26
Interest cost	6,676		6,305		153		151
Expected return on plan assets	(6,141)		(8,587)		—		—
Amortization of prior service costs, (gains) losses and net transition asset	9,887		12,799		(101)		(72)
Net periodic benefit cost	$	10,422	$	10,517	$	67	$	105

Pension and other postretirement liabilities were $29.1 million and $78.9 million at September 30, 2022 and December 31, 2021, respectively ($0.7 million included in “Accrued expenses” at September 30, 2022 and December 31, 2021, respectively, with the remainder included in “Pension and other postretirement benefit obligations, net” in the condensed consolidated balance sheets).

Tredegar funds its other postretirement benefits on a claims-made basis; for 2022, the Company anticipates the amount will be consistent with amounts paid for the year ended December 31, 2021, or approximately $0.5 million.

5. OTHER INCOME (EXPENSE), NET

Other income (expense), net consists of the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2022		2021		2022		2021
Gain on investment in kaléo(a)	$	—	$	279	$	1,406	$	1,197
One-time tax credit in Brazil for unemployment/social security insurance non-income taxes resulting from a favorable decision by Brazil's Supreme Court regarding the calculation of such tax	—		—		—		8,486




Other	119		112		(293)		(411)
Total	$	119	$	391	$	1,113	$	9,272
(a) In May 2022, additional cash consideration of $1.4 million was received related to customary post-closing adjustments. See Note 12 for additional information on the sale of the investment in kaléo.

In May 2021, the Brazil Supreme Court ruled in a leading case related to the amount of Brazilian value-added tax to exclude from the calculation of unemployment/social security insurance non-income taxes ("PIS/COFINS"). As a result, in the second quarter of 2021, the Company recorded a pre-tax gain of $8.5 million for certain excess PIS/COFINS paid from 2003 to 2021, plus applicable interest, which the Company applied to required Brazilian federal tax payments during 2021.

6. 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 Ended		Nine Months Ended
	September 30,		September 30,
(In thousands)	2022	2021	2022	2021
Weighted average shares outstanding used to compute basic earnings per share	33,870	33,620	33,780	33,541
Incremental dilutive shares attributable to stock options and restricted stock	1	29	28	137
Shares used to compute diluted earnings per share	33,871	33,649	33,808	33,678

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 2,932,378 and 2,645,063 for the three and nine months ended September 30, 2022, respectively, and 2,433,213 and 1,280,376 for the three and nine months ended September 30, 2021, respectively.

7. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in accumulated other comprehensive income (loss) by component for the three months ended September 30, 2022.


(In thousands)	Foreign Currency Translation		Gain (Loss) on Derivative Financial Instruments		Pension & Other Postretirement Benefit Adjust		Total Accumulated Other Comprehensive Income (Loss)
Balance at July 1, 2022	$	(85,486)	$	(2,330)	$	(59,519)	$	(147,335)
Other comprehensive income (loss)	(2,488)		(2,205)		—		(4,693)
Income tax (expense) benefit	148		522		—		670
Other comprehensive income (loss), net of tax	(2,340)		(1,683)		—		(4,023)
Reclassification adjustment to net income (loss)	—		(1,159)		3,268		2,109
Income tax (expense) benefit	—		295		(712)		(417)
Reclassification adjustment to net income (loss), net of tax	—		(864)		2,556		1,692
Other comprehensive income (loss), net of tax	(2,340)		(2,547)		2,556		(2,331)
Balance at September 30, 2022	$	(87,826)	$	(4,877)	$	(56,963)	$	(149,666)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2022.


(In thousands)	Foreign Currency Translation		Gain (Loss) on Derivative Financial Instruments		Pension & Other Postretirement Benefit Adjust		Total Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2022	$	(85,792)	$	901	$	(64,613)	$	(149,504)
Other comprehensive income (loss)	(1,936)		(3,883)		—		(5,819)
Income tax (expense) benefit	(98)		442		—		344
Other comprehensive income (loss), net of tax	(2,034)		(3,441)		—		(5,475)
Reclassification adjustment to net income (loss)	—		(3,156)		9,786		6,630
Income tax (expense) benefit	—		819		(2,136)		(1,317)
Reclassification adjustment to net income (loss), net of tax	—		(2,337)		7,650		5,313
Other comprehensive income (loss), net of tax	(2,034)		(5,778)		7,650		(162)
Balance at September 30, 2022	$	(87,826)	$	(4,877)	$	(56,963)	$	(149,666)

The changes in accumulated other comprehensive income (loss) by component for the three months ended September 30, 2021.


(In thousands)	Foreign Currency Translation		Gain (Loss) on Derivative Financial Instruments		Pension & Other Postretirement Benefit Adjust		Total Accumulated Other Comprehensive Income (Loss)
Balance at July 1, 2021	$	(82,804)	$	3,496	$	(89,882)	$	(169,190)
Other comprehensive income (loss)	(3,082)		1,245		—		(1,837)
Income tax (expense) benefit	294		(297)		—		(3)
Other comprehensive income (loss), net of tax	(2,788)		948		—		(1,840)
Reclassification adjustment to net income (loss)	—		(2,141)		4,244		2,103
Income tax (expense) benefit	—		476		(927)		(451)
Reclassification adjustment to net income (loss), net of tax	—		(1,665)		3,317		1,652
Other comprehensive income (loss), net of tax	(2,788)		(717)		3,317		(188)
Balance at September 30, 2021	$	(85,592)	$	2,779	$	(86,565)	$	(169,378)

The changes in accumulated other comprehensive income (loss) by component for the nine months ended September 30, 2021.


(In thousands)	Foreign Currency Translation		Gain (Loss) on Derivative Financial Instruments		Pension & Other Postretirement Benefit Adjust		Total Accumulated Other Comprehensive Income (Loss)
Balance at January 1, 2021	$	(84,149)	$	2,264	$	(96,519)	$	(178,404)
Other comprehensive income (loss)	(1,546)		4,736		—		3,190
Income tax (expense) benefit	103		(1,064)		—		(961)
Other comprehensive income (loss), net of tax	(1,443)		3,672		—		2,229
Reclassification adjustment to net income (loss)	—		(4,037)		12,727		8,690
Income tax (expense) benefit	—		880		(2,773)		(1,893)
Reclassification adjustment to net income (loss), net of tax	—		(3,157)		9,954		6,797
Other comprehensive income (loss), net of tax	(