[Glossary of Terms](index=4&type=section&id=Glossary%20of%20Terms) The report defines key terms and abbreviations used throughout the document - The report includes a glossary defining key terms and abbreviations used throughout the document, such as '2025 Notes', 'ASU', 'Credit Agreement', 'ESG', 'EV', 'FASB', 'FMC', 'Livent NQSP', 'Nemaska', 'Nemaska Project', 'Nemaska Transaction', 'Offering', 'OEM', 'Original Credit Agreement', 'PRSU', 'QLP', 'Revolving Credit Facility', 'RSU', 'SEC', 'Securities Act', 'Separation', 'TSR', 'U.S. GAAP', and 'VAT'[8](index=8&type=chunk)[9](index=9&type=chunk) [Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements, management's analysis, and disclosures on market risk [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited condensed consolidated financial statements and accompanying notes for Q1 2022 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's revenue grew significantly, leading to a substantial shift from a net loss to a net income in Q1 2022 | Metric (in Millions, Except Per Share Data) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------------ | :--------------------------------: | :--------------------------------: | | Revenue | $143.5 | $91.7 | | Cost of sales | $83.6 | $78.4 | | Gross margin | $59.9 | $13.3 | | Selling, general and administrative expenses| $11.8 | $10.7 | | Research and development expenses | $0.9 | $0.7 | | Restructuring and other charges | $1.0 | $0.3 | | Separation-related costs/(income) | $0.1 | $(0.1) | | Total costs and expenses | $97.4 | $90.0 | | Income from operations before equity in net loss of unconsolidated affiliate, interest expense, net and other gain | $46.1 | $1.7 | | Equity in net loss of unconsolidated affiliate | $2.2 | $1.3 | | Interest expense, net | — | $0.3 | | Other gain | $(14.0) | — | | Income from operations before income taxes | $57.9 | $0.1 | | Income tax expense | $4.7 | $0.9 | | Net income/(loss) | $53.2 | $(0.8) | | Net income/(loss) per weighted average share - basic | $0.33 | $(0.01) | | Net income/(loss) per weighted average share - diluted | $0.28 | $(0.01) | | Weighted average common shares outstanding - basic | 161.7 | 146.5 | | Weighted average common shares outstanding - diluted | 191.4 | 146.5 | - Revenue increased by **56% to $143.5 million** in Q1 2022 from $91.7 million in Q1 2021, primarily due to higher pricing across all products, partially offset by decreased sales volumes[12](index=12&type=chunk) - Gross margin significantly improved to **$59.9 million** from $13.3 million, a **350% increase**[12](index=12&type=chunk) - The company reported a **net income of $53.2 million** in Q1 2022, a substantial improvement from a net loss of $(0.8) million in Q1 2021, partly due to a **$14.0 million 'Other gain'** in 2022[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income/(Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%2F%28Loss%29) Comprehensive income improved significantly, driven by higher net income despite foreign currency translation losses | Metric (in Millions) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------- | :--------------------------------: | :--------------------------------: | | Net income/(loss) | $53.2 | $(0.8) | | Foreign currency translation loss arising during the period | $(1.0) | $(0.3) | | Unrealized hedging gains, net of tax of $0.1 | $0.1 | — | | Other comprehensive loss, net of tax | $(0.9) | $(0.3) | | Comprehensive income/(loss) | $52.3 | $(1.1) | - **Comprehensive income for Q1 2022 was $52.3 million**, a significant improvement from a comprehensive loss of $(1.1) million in Q1 2021[15](index=15&type=chunk) - This change was primarily driven by the increase in net income, partially offset by foreign currency translation losses and, in 2022, unrealized hedging gains[15](index=15&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and equity increased, driven by investments in property, plant, and equipment and net income for the period | Metric (in Millions) | March 31, 2022 | December 31, 2021 | | :------------------- | :------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $68.5 | $113.0 | | Trade receivables, net | $105.5 | $96.4 | | Inventories, net | $150.5 | $134.6 | | Total current assets | $364.5 | $399.3 | | Property, plant and equipment, net | $737.8 | $677.9 | | Total assets | $1,242.6 | $1,202.5 | | **LIABILITIES AND EQUITY** | | | | Accounts payable, trade and other | $62.2 | $65.4 | | Total current liabilities | $120.3 | $131.3 | | Long-term debt | $240.8 | $240.4 | | Total current and long-term liabilities | $393.6 | $407.1 | | Total equity | $849.0 | $795.4 | | Total liabilities and equity | $1,242.6 | $1,202.5 | - **Total assets increased to $1,242.6 million** as of March 31, 2022, from $1,202.5 million at December 31, 2021, driven by an increase in property, plant and equipment[19](index=19&type=chunk) - Cash and cash equivalents decreased by **$44.5 million**, while inventories and trade receivables increased[19](index=19&type=chunk) - **Total equity grew to $849.0 million** from $795.4 million, reflecting the net income for the period[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased while investing cash outflow increased significantly due to capital expansion projects | Metric (in Millions) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------- | :--------------------------------: | :--------------------------------: | | Cash provided by operating activities | $10.8 | $12.7 | | Cash used in investing activities | $(55.4) | $(27.0) | | Cash provided by financing activities | $0.1 | $24.2 | | (Decrease)/increase in cash and cash equivalents | $(44.5) | $9.9 | | Cash and cash equivalents, beginning of period | $113.0 | $11.6 | | Cash and cash equivalents, end of period | $68.5 | $21.5 | - **Cash provided by operating activities decreased to $10.8 million** in Q1 2022 from $12.7 million in Q1 2021, primarily due to increased inventories and trade receivables[21](index=21&type=chunk)[171](index=171&type=chunk) - **Cash used in investing activities more than doubled to $(55.4) million**, driven by a significant increase in capital expenditures for capacity expansion[21](index=21&type=chunk)[172](index=172&type=chunk) - **Cash provided by financing activities decreased substantially to $0.1 million** from $24.2 million, as the company did not draw on its Revolving Credit Facility in 2022[21](index=21&type=chunk)[173](index=173&type=chunk) [Condensed Consolidated Statements of Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity grew, primarily reflecting the period's net income and stock compensation plan activities | Metric (in Millions) | Balance, December 31, 2021 | Net income | Stock compensation plans | Exercise of stock options | Shares withheld for taxes - common stock issuances | Net hedging gains, net of income tax | Foreign currency translation adjustments | Balance, March 31, 2022 | | :------------------- | :------------------------- | :--------- | :----------------------- | :---------------------- | :----------------------------------------- | :----------------------------------- | :--------------------------------------- | :---------------------- | | Common Stock, $0.001 Per Share Par Value | $0.1 | — | — | — | — | — | — | $0.1 | | Capital In Excess of Par | $778.1 | — | $1.7 | $0.1 | $(0.5) | — | — | $779.4 | | Retained Earnings | $60.9 | $53.2 | — | — | — | — | — | $114.1 | | Accumulated Other Comprehensive Loss | $(42.9) | — | — | — | — | $0.1 | $(1.0) | $(43.8) | | Treasury Stock | $(0.8) | — | — | — | — | — | — | $(0.8) | | Total | $795.4 | $53.2 | $1.7 | $0.1 | $(0.5) | $0.1 | $(1.0) | $849.0 | - **Total equity increased from $795.4 million** at December 31, 2021, **to $849.0 million** at March 31, 2022[25](index=25&type=chunk) - This increase was primarily driven by **net income of $53.2 million** and stock compensation plans, partially offset by foreign currency translation adjustments[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of accounting policies and specific financial statement line items [Note 1: Description of the Business](index=13&type=section&id=Note%201%3A%20Description%20of%20the%20Business) Livent manufactures lithium products for batteries and specialty applications, anticipating growth from the EV market - Livent Corporation manufactures a wide range of lithium products, primarily for lithium-based batteries, specialty polymers, and chemical synthesis[28](index=28&type=chunk) - The company anticipates **significant growth driven by the increasing adoption of electric vehicles (EVs)** and other energy storage applications, particularly in Asia, Europe, and North America[29](index=29&type=chunk) [Note 2: Principal Accounting Policies and Related Financial Information](index=13&type=section&id=Note%202%3A%20Principal%20Accounting%20Policies%20and%20Related%20Financial%20Information) The company recorded a significant gain from a 'Blue Chip Swap' transaction and issued new PRSU awards to key employees - The financial statements are prepared in accordance with SEC interim reporting requirements and U.S. GAAP[30](index=30&type=chunk) - A significant event in Q1 2022 was a **$14.0 million cash gain from a 'Blue Chip Swap' transaction** in Argentina, where the company transferred U.S. dollars into Argentina by purchasing and selling Argentina Sovereign U.S. dollar-denominated bonds[31](index=31&type=chunk) - The company granted approximately **63,000 Performance-Based Restricted Stock Unit (PRSU) awards** to key employees on February 23, 2022, with the number earned dependent on Livent's Total Shareholder Return (TSR) relative to the Russell 3000 Chemical Supersector Index over a three-year period[32](index=32&type=chunk) [Note 3: Recently Issued and Adopted Accounting Pronouncements and Regulatory Items](index=14&type=section&id=Note%203%3A%20Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements%20and%20Regulatory%20Items) The company is evaluating the impact of a new ASU on government assistance disclosures - The company is evaluating the impact of ASU No. 2021-10, 'Government Assistance (Topic 832)', effective for annual periods beginning after December 15, 2021, which requires disclosures about government assistance[36](index=36&type=chunk) - The adoption of ASU No. 2020-04, 'Reference Rate Reform (Topic 848)', is **not expected to have a material impact** on the condensed consolidated financial statements[37](index=37&type=chunk) [Note 4: Revenue Recognition](index=14&type=section&id=Note%204%3A%20Revenue%20Recognition) Revenue growth was driven by the Asia Pacific region and strong performance in Lithium Hydroxide and Carbonate products **Disaggregated Revenue by Major Geographical Region (in Millions):** | Region | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------- | :--------------------------------: | :--------------------------------: | | North America | $21.3 | $13.3 | | Europe, Middle East & Africa | $14.7 | $17.5 | | Asia Pacific | $107.5 | $60.9 | | **Total Revenue** | **$143.5** | **$91.7** | **Disaggregated Revenue by Major Product Category (in Millions):** | Product Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------------------ | :--------------------------------: | :--------------------------------: | | Lithium Hydroxide | $67.5 | $49.8 | | Butyllithium | $33.7 | $25.9 | | High Purity Lithium Metal and Other Specialty Compounds | $13.4 | $8.9 | | Lithium Carbonate and Lithium Chloride | $28.9 | $7.1 | | **Total Revenue** | **$143.5** | **$91.7** | - **Asia Pacific remains the largest revenue contributor**, growing to $107.5 million in Q1 2022 from $60.9 million in Q1 2021[38](index=38&type=chunk) - Lithium Hydroxide and Lithium Carbonate/Chloride showed significant revenue growth[42](index=42&type=chunk) - **One customer accounted for approximately 26% of total revenue** in Q1 2022, and the top 10 customers accounted for approximately 69% of total revenue in both periods[39](index=39&type=chunk) - The company has approximately **$557 million in expected revenue from multi-year take-or-pay supply agreements** over the next three years, representing unsatisfied or partially unsatisfied performance obligations[45](index=45&type=chunk) [Note 5: Inventories, Net](index=15&type=section&id=Note%205%3A%20Inventories%2C%20Net) Net inventories increased, driven by higher levels of semi-finished goods and raw materials **Inventories, Net (in Millions):** | Category | March 31, 2022 | December 31, 2021 | | :------------------ | :------------- | :---------------- | | Finished goods | $39.1 | $52.2 | | Semi-finished goods | $58.8 | $43.6 | | Raw materials, supplies, and other | $52.6 | $38.8 | | **Inventory, net** | **$150.5** | **$134.6** | - **Total inventories, net, increased to $150.5 million** as of March 31, 2022, from $134.6 million at December 31, 2021[46](index=46&type=chunk) - This increase was primarily driven by higher semi-finished goods and raw materials, supplies, and other, while finished goods decreased[46](index=46&type=chunk) [Note 6: Investments](index=15&type=section&id=Note%206%3A%20Investments) Livent is set to acquire full ownership of its joint venture partner in the Nemaska Lithium project - Livent holds a 50% equity interest in Québec Lithium Partners (QLP), a joint venture with The Pallinghurst Group, which in turn owns a 50% equity interest in the Nemaska Project[47](index=47&type=chunk) - The carrying amount of this investment was **$29.6 million** as of March 31, 2022, up from $23.8 million at December 31, 2021[49](index=49&type=chunk) - On May 2, 2022, Livent entered an agreement to **acquire Pallinghurst's 50% share of QLP** by issuing 17,500,000 shares of its common stock[50](index=50&type=chunk) - This transaction will make QLP a wholly-owned subsidiary of Livent, giving Livent a direct 50% ownership interest in Nemaska Lithium Inc[50](index=50&type=chunk) [Note 7: Restructuring and Other Charges](index=16&type=section&id=Note%207%3A%20Restructuring%20and%20Other%20Charges) Restructuring charges increased due to severance costs associated with management changes **Restructuring and Other Charges (in Millions):** | Category | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :------------------------ | :--------------------------------: | :--------------------------------: | | Severance-related and exit costs | $0.5 | — | | Environmental remediation | $0.1 | $0.1 | | Other | $0.4 | $0.2 | | **Total** | **$1.0** | **$0.3** | - Total restructuring and other charges increased to **$1.0 million** in Q1 2022 from $0.3 million in Q1 2021, primarily due to **$0.5 million in severance costs** for management changes at administrative facilities[51](index=51&type=chunk) [Note 8: Income Taxes](index=16&type=section&id=Note%208%3A%20Income%20Taxes) The effective tax rate was significantly impacted by foreign currency fluctuations in Argentina - The provision for income taxes increased to **$4.7 million** in Q1 2022 from $0.9 million in Q1 2021, with effective tax rates of **8.1% and 900%**, respectively[55](index=55&type=chunk) - The Q1 2022 rate was primarily impacted by **foreign currency fluctuations in Argentina of $(4.3) million**[55](index=55&type=chunk) [Note 9: Debt](index=17&type=section&id=Note%209%3A%20Debt) Long-term debt remained stable, and holders of the 2025 Notes gained a conversion option **Long-term Debt (in Millions):** | Debt Type | March 31, 2022 | December 31, 2021 | | :-------------------------------- | :------------- | :---------------- | | 4.125% Convertible Senior Notes due 2025 | $245.8 | $245.8 | | Transaction costs - 2025 Notes | $(5.0) | $(5.4) | | **Total long-term debt** | **$240.8** | **$240.4** | - Total long-term debt remained stable at approximately **$240.8 million** as of March 31, 2022, consisting solely of the 2025 Notes[57](index=57&type=chunk) - Holders of the 2025 Notes gained the option to convert their notes through June 30, 2022, due to the common stock price exceeding 130% of the conversion price[59](index=59&type=chunk) - The company was **in compliance with all financial covenants** under its Revolving Credit Facility as of March 31, 2022, with a maximum allowable first lien leverage ratio of 3.5 and a minimum allowable interest coverage ratio of 3.5[62](index=62&type=chunk) [Note 10: Equity](index=18&type=section&id=Note%2010%3A%20Equity) Common shares outstanding increased slightly due to stock awards, and no dividends were paid **Common Stock Issued and Outstanding:** | Metric | Issued | Treasury | Outstanding | | :-------------------------------------- | :------------ | :---------- | :------------ | | Balance as of December 31, 2021 | 161,791,602 | (101,618) | 161,689,984 | | RSU awards | 49,100 | — | 49,100 | | Stock option awards | 7,905 | — | 7,905 | | Purchases of treasury stock - deferred compensation plan | — | (1,624) | (1,624) | | **Balance as of March 31, 2022** | **161,848,607** | **(103,242)** | **161,745,365** | - The number of common shares outstanding increased to **161,745,365** as of March 31, 2022, from 161,689,984 at December 31, 2021, primarily due to RSU and stock option awards[65](index=65&type=chunk) - The accumulated other comprehensive loss increased to **$(43.8) million** from $(42.9) million, mainly due to foreign currency translation adjustments[67](index=67&type=chunk) - The company **paid no dividends** for the three months ended March 31, 2022 and 2021, and does not expect to pay any in the foreseeable future[69](index=69&type=chunk) [Note 11: Earnings/(Loss) Per Share](index=18&type=section&id=Note%2011%3A%20Earnings%2F%28Loss%29%20Per%20Share) The company reported a significant turnaround in earnings per share, from a loss to a profit **Earnings/(Loss) Per Common Share:** | Metric (in Millions, Except Share and Per Share Data) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :---------------------------------------------------- | :--------------------------------: | :--------------------------------: | | Net income/(loss) | $53.2 | $(0.8) | | Weighted average common shares outstanding - basic | 161.7 | 146.5 | | Dilutive share equivalents from share-based plans | 1.6 | — | | Dilutive share equivalents from 2025 Notes | 28.1 | — | | Weighted average common shares outstanding - diluted | 191.4 | 146.5 | | Basic earnings/(loss) per common share | $0.33 | $(0.01) | | Diluted earnings/(loss) per common share | $0.28 | $(0.01) | - **Basic EPS was $0.33** in Q1 2022, a significant improvement from $(0.01) in Q1 2021[73](index=73&type=chunk) - **Diluted EPS was $0.28** in Q1 2022, also up from $(0.01) in Q1 2021, reflecting the net income and the dilutive effect of share-based plans and 2025 Notes[73](index=73&type=chunk) [Note 12: Financial Instruments, Risk Management and Fair Value Measurements](index=19&type=section&id=Note%2012%3A%20Financial%20Instruments%2C%20Risk%20Management%20and%20Fair%20Value%20Measurements) The company uses foreign exchange forward contracts to mitigate currency risk but does not hedge its Argentine peso exposure - Livent uses derivative financial instruments, primarily foreign exchange forward contracts, to mitigate currency risk from its global operations, particularly for the Euro, British pound, Chinese yuan, and Japanese yen[83](index=83&type=chunk) - The company **does not hedge Argentine peso risks** due to limited availability and high cost of suitable instruments[85](index=85&type=chunk) - As of March 31, 2022, the company had open foreign currency forward contracts designated as cash flow hedges with a **net after-tax gain position of $0.3 million**, and other forward contracts not designated as hedges with a U.S. dollar equivalent of approximately $53.7 million[88](index=88&type=chunk)[91](index=91&type=chunk) **Fair Value of Derivative Instruments (in Millions):** | Derivatives | March 31, 2022 (Gross Amount) | December 31, 2021 (Gross Amount) | | :---------------------- | :-----------------------------: | :------------------------------: | | Foreign exchange contracts | $0.4 | $0.2 | | **Total derivative assets** | **$0.4** | **$0.2** | | **Net derivative assets** | **$0.4** | **$0.2** | [Note 13: Commitments and Contingencies](index=23&type=section&id=Note%2013%3A%20Commitments%20and%20Contingencies) The company is undergoing an audit by Argentine Customs and has future minimum lease payment commitments - Livent is involved in various legal proceedings in the ordinary course of business and records reserves for probable and estimable losses[106](index=106&type=chunk) - The company is currently undergoing an **audit by the Argentine Customs Authority** related to lithium carbonate exports from 2015-2017, for which a range of possible liabilities cannot yet be estimated[110](index=110&type=chunk) **Operating Lease Information (in Millions, except for weighted-average amounts):** | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :-------------------------------------- | :--------------------------------: | :--------------------------------: | | Operating lease cost | $0.4 | $0.2 | | Short-term lease cost | $0.1 | $0.3 | | **Total lease cost** | **$0.5** | **$0.5** | | Cash paid for operating leases | $0.4 | $0.5 | | Weighted average remaining lease term (years) | 8.2 | N/A | | Weighted average discount rate | 4.9% | N/A | **Maturity Analysis of Operating Lease Liabilities (Undiscounted cash flows in Millions):** | Period | Amount | | :---------------- | :----- | | Remainder of 2022 | $1.0 | | 2023 | $1.2 | | 2024 | $1.1 | | 2025 | $1.1 | | 2026 | $0.2 | | Thereafter | $2.8 | | **Total future minimum lease payments** | **$7.4** | | Less: Imputed interest | $(1.3) | | **Total** | **$6.1** | [Note 14: Supplemental Information](index=25&type=section&id=Note%2014%3A%20Supplemental%20Information) This note provides detailed breakdowns of various asset and liability accounts on the balance sheet **Prepaid and Other Current Assets (in Millions):** | Category | March 31, 2022 | December 31, 2021 | | :---------------------------- | :------------- | :---------------- | | Tax related items | $12.6 | $17.7 | | Prepaid expenses | $8.9 | $12.2 | | Argentina government receivable | $6.1 | $13.3 | | Other receivables | $3.3 | $2.3 | | Bank Acceptance Drafts | $1.7 | — | | Derivative assets (Note 12) | $0.4 | $0.2 | | Other current assets | $7.0 | $9.6 | | **Total** | **$40.0** | **$55.3** | **Other Assets (in Millions):** | Category | March 31, 2022 | December 31, 2021 | | :---------------------------- | :------------- | :---------------- | | Argentina government receivable | $65.7 | $55.8 | | Advance to contract manufacturers | $15.5 | $16.0 | | Long-term raw materials inventory | $5.4 | $4.9 | | Tax related items | $2.5 | $1.3 | | Capitalized software, net | $1.4 | $1.5 | | Other assets | $10.4 | $11.4 | | **Total** | **$100.9** | **$90.9** | **Accrued and Other Current Liabilities (in Millions):** | Category | March 31, 2022 | December 31, 2021 | | :-------------------------------------- | :------------- | :---------------- | | Accrued investment in unconsolidated affiliate | $14.2 | $6.2 | | Accrued payroll | $7.8 | $17.1 | | Plant restructuring reserves | $3.2 | $3.2 | | Advance customer payments | $0.7 | — | | Retirement liability - 401k | $0.6 | $2.5 | | Environmental reserves, current | $0.5 | $0.5 | | Severance related | $0.3 | — | | Other accrued and other current liabilities | $26.9 | $32.3 | | **Total** | **$54.2** | **$61.8** | **Other Long-Term Liabilities (in Millions):** | Category | March 31, 2022 | December 31, 2021 | | :-------------------------------------- | :------------- | :---------------- | | Deferred compensation plan obligation | $6.6 | $5.9 | | Contingencies related to uncertain tax positions | $4.0 | $2.3 | | Self-insurance reserves | $1.5 | $1.5 | | Asset retirement obligations | $0.3 | $0.3 | | Other long-term liabilities | $1.7 | $1.7 | | **Total** | **$14.1** | **$11.7** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides its perspective on financial condition, operational results, business outlook, and market risks [Special Note Regarding Forward-Looking Information](index=27&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20INFORMATION) The report contains forward-looking statements subject to numerous risks, including EV demand, price volatility, and supply chain disruptions - The report contains forward-looking statements based on current views and assumptions, which involve known and unknown risks and uncertainties[125](index=125&type=chunk) - Key risk factors include **declining EV demand, price volatility for lithium compounds, adverse global economic conditions (including inflation), supply chain disruptions, competition**, and risks related to international operations and conflicts like the war in Ukraine[126](index=126&type=chunk)[127](index=127&type=chunk) - The ongoing **COVID-19 pandemic is a significant factor**, causing business and supply chain disruptions, market volatility, and a global economic slowdown, with its full impact remaining uncertain[126](index=126&type=chunk) [Application of Critical Accounting Estimates](index=28&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20ESTIMATES) Critical accounting estimates involve significant judgment, particularly for revenue recognition, asset valuation, and income taxes - Critical accounting estimates, which involve significant judgment and uncertainty, include **revenue recognition, collectability of trade receivables, impairment and valuation of long-lived assets, and income taxes**[130](index=130&type=chunk)[132](index=132&type=chunk) - While the company assessed no material updates were needed as of the report date due to COVID-19, actual results could differ[134](index=134&type=chunk) [Overview](index=29&type=section&id=OVERVIEW) Livent is a fully integrated lithium company focused on supplying the growing EV and energy storage markets - Livent is a fully integrated lithium company focused on supplying high-performance lithium compounds, particularly **battery-grade lithium hydroxide**, to the rapidly growing EV and energy storage battery markets[135](index=135&type=chunk) - The company also maintains its position as a leading global producer of butyllithium and high purity lithium metal for various performance applications[136](index=136&type=chunk) [First Quarter 2022 Highlights](index=29&type=section&id=First%20Quarter%202022%20Highlights) The company achieved significant growth in revenue, net income, and Adjusted EBITDA in the first quarter of 2022 **First Quarter 2022 Financial Highlights (in Millions, Except Per Share Data):** | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :------------- | :------- | :------- | :--------- | :--------- | | Revenue | $143.5 | $91.7 | $51.8 | 56% | | Net income/(loss) | $53.2 | $(0.8) | $54.0 | N/A | | Adjusted EBITDA | $53.3 | $11.1 | $42.2 | 380% | - **Revenue increased by 56% to $143.5 million**, driven by higher pricing across all products[139](index=139&type=chunk) - **Net income significantly improved to $53.2 million** from a net loss of $(0.8) million, partly due to a $14.0 million gain from the sale of Argentina Sovereign U.S. dollar-denominated bonds[139](index=139&type=chunk) - **Adjusted EBITDA surged by $42.2 million to $53.3 million**[139](index=139&type=chunk) [COVID-19 Impacts](index=29&type=section&id=COVID-19%20Impacts) The COVID-19 pandemic continued to disrupt business operations, supply chains, and expansion projects [Business and Operations](index=29&type=section&id=Business%20and%20Operations) COVID-19 measures in China and global supply chain issues negatively impacted business and customer demand - The COVID-19 pandemic continued to negatively impact Livent's business, operations, and financial performance in Q1 2022, particularly due to **government measures in China and global supply chain disruptions** (e.g., port congestion, freight costs, driver shortages)[137](index=137&type=chunk)[138](index=138&type=chunk)[141](index=141&type=chunk) - Customer demand for certain products was flat to slightly lower, and EV manufacturing customers faced their own supply chain constraints (e.g., semiconductor chip shortages), potentially delaying demand for Livent's high-performance lithium compounds[142](index=142&type=chunk) - **Expansion work in Argentina and the U.S. was impacted by COVID-19**, leading to potential delays and increased costs for materials and labor[143](index=143&type=chunk) - The company is monitoring local labor market tightness and economic instability in regions like Argentina and China[144](index=144&type=chunk)[145](index=145&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) The pandemic increased cash uses through higher logistical costs and additional health and safety expenses - COVID-19 impacted cash uses through **increased logistical costs** (truck, freight, air shipping) and additional expenses for health and safety measures (testing, PPE, cleaning, medical personnel, transportation)[146](index=146&type=chunk) [Corporate Efforts](index=31&type=section&id=Corporate%20Efforts) The company implemented response teams and adapted production schedules to mitigate pandemic-related challenges - Livent maintained Global and regional Pandemic Response Teams, identified new suppliers and logistics providers, and altered global production schedules to adapt to changing customer demand and supply chain challenges[147](index=147&type=chunk)[148](index=148&type=chunk) [Health & Safety](index=31&type=section&id=Health%20%26%20Safety) Safety procedures remained in place, with social distancing measures affecting workforce numbers at some sites - The company continued to implement safety procedures based on local guidance, including pre-entry screening, mask/glove use, social distancing, and quarantine[149](index=149&type=chunk)[150](index=150&type=chunk) - While no material employee absences occurred, social distancing led to reduced workforce numbers in some locations, such as the Argentina expansion project[151](index=151&type=chunk) [Government Programs](index=32&type=section&id=Government%20Programs) Livent continues to evaluate government support and tax relief programs in its operating countries - Livent continues to evaluate government support and tax relief programs in its operating countries, including grants, loans, tax deferrals, and tax credits[152](index=152&type=chunk) [2022 Business Outlook](index=32&type=section&id=2022%20Business%20Outlook) The company significantly increased its 2022 financial outlook, expecting higher pricing to drive profitability despite rising costs - Livent **significantly increased its 2022 financial performance outlook**, expecting flat volumes but even higher average pricing across all lithium products, leading to higher profitability compared to the prior year[153](index=153&type=chunk) - The company also anticipates **higher costs due to logistics, raw materials, and general inflationary pressures**[154](index=154&type=chunk) [Results of Operations](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) Higher pricing drove a 56% revenue increase and a 350% rise in gross margin, resulting in significant net income growth **Key Financial Performance (in Millions):** | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :----------------------------------------- | :--------------------------------: | :--------------------------------: | | Revenue | $143.5 | $91.7 | | Gross margin | $59.9 | $13.3 | | Net income/(loss) | $53.2 | $(0.8) | | EBITDA (Non-GAAP) | $64.3 | $6.6 | | Adjusted EBITDA (Non-GAAP) | $53.3 | $11.1 | - **Revenue increased by 56%** due to higher pricing, leading to a **350% increase in gross margin**[159](index=159&type=chunk) - **Net income improved significantly from a loss to $53.2 million**, partly due to a $14.0 million 'Other gain' from a Blue Chip Swap[160](index=160&type=chunk) - **Adjusted EBITDA saw a substantial increase to $53.3 million**[166](index=166&type=chunk) - Restructuring and other charges increased to $1.0 million, including $0.5 million for severance costs[161](index=161&type=chunk) - Equity in net loss of unconsolidated affiliate increased to $2.2 million due to project-related costs at the Nemaska Project[162](index=162&type=chunk) - Income tax expense rose to $4.7 million, influenced by increased income and foreign currency impacts in Argentina[164](index=164&type=chunk)[165](index=165&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Cash decreased due to increased capital spending on expansion projects, but liquidity remains adequate **Cash and Cash Equivalents (in Millions):** | Period | Amount | | :--------------- | :----- | | March 31, 2022 | $68.5 | | December 31, 2021| $113.0 | | Foreign subsidiaries (March 31, 2022) | $22.4 | - **Cash and cash equivalents decreased to $68.5 million** as of March 31, 2022, from $113.0 million at December 31, 2021[168](index=168&type=chunk) - The company had **$385.5 million available under its $400 million Revolving Credit Facility**, subject to debt covenants, and no outstanding debt under this facility[169](index=169&type=chunk)[170](index=170&type=chunk) - Cash provided by operating activities decreased due to increased inventories and trade receivables[171](index=171&type=chunk) - **Cash used in investing activities significantly increased to $(55.4) million**, driven by resumed capital expansion work in Argentina and the U.S[172](index=172&type=chunk) - The company estimates **2022 total capital spending to be $300 million to $340 million**[175](index=175&type=chunk) - Livent believes its available cash, cash from operations, and borrowing capacity under the Revolving Credit Facility will provide **adequate liquidity for the next 12 months**, despite ongoing COVID-19 uncertainties and challenges[177](index=177&type=chunk) [Derivative Financial Instruments and Market Risks](index=37&type=section&id=DERIVATIVE%20FINANCIAL%20INSTRUMENTS%20AND%20MARKET%20RISKS) The company manages foreign currency risk with derivatives but faces unhedged exposure to the Argentine peso - Livent uses derivative contracts to manage market risks from fluctuations in commodity prices, interest rates, and foreign currency exchange rates, aiming to minimize cash flow exposure[182](index=182&type=chunk) - The primary currency exposures are the Euro, British pound, Chinese yuan, Argentine peso, and Japanese yen, though **Argentine peso risks are not hedged**[185](index=185&type=chunk) **Foreign Currency Exchange Rate Sensitivity (in Millions):** | Metric | Net asset position on consolidated balance sheets | Net liability position with 10% strengthening | Net asset position with 10% weakening | | :-------------------------------------- | :----------------------------------------------: | :-------------------------------------------: | :-----------------------------------: | | Net asset/(liability) position as of March 31, 2022 | $0.4 | $(1.7) | $1.4 | - As of March 31, 2022, the company had a **net financial instrument asset position of $0.4 million**[184](index=184&type=chunk) - A sensitivity analysis showed that a 10% strengthening of hedged currencies would result in a $(1.7) million net liability position, while a 10% weakening would result in a $1.4 million net asset position[187](index=187&type=chunk) - The company had **no interest rate swap agreements** as of March 31, 2022, and no outstanding balances under its Revolving Credit Facility, meaning its debt portfolio was primarily fixed-rate from the 2025 Notes[188](index=188&type=chunk)[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item refers to the detailed discussion on market risks provided in Management's Discussion and Analysis - The required information for quantitative and qualitative disclosures about market risk is incorporated by reference from the 'Derivative Financial Instruments and Market Risks' section within Item 2 of this report[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective and reported no material changes in internal financial reporting controls - As of March 31, 2022, the Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures are effective** in providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[192](index=192&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[193](index=193&type=chunk) [Part II - Other Information](index=40&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, and filed exhibits [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material adverse effects are expected from routine legal proceedings - Livent is involved in legal proceedings in the ordinary course of business, including workers' compensation matters[196](index=196&type=chunk) - Based on current information and established reserves, the company **does not believe these will have a material adverse effect** on its financial position, liquidity, or results of operations[196](index=196&type=chunk) - There are **no material changes** from the legal proceedings previously disclosed in the 2021 Annual Report on Form 10-K, except as set forth in Note 13 of the current report[196](index=196&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section references the comprehensive risk factors detailed in the 2021 Annual Report on Form 10-K - Readers should carefully consider the risk factors discussed in Part I, Item 1A of the 2021 Annual Report on Form 10-K, as additional unknown or currently immaterial risks may also adversely affect the business, financial condition, or future results[197](index=197&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details common share repurchases made for employee investments under the Livent NQSP **Repurchases of Common Shares (Q1 2022):** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--------------------------- | :------------------------------- | :--------------------------- | | January 1 through January 31, 2022 | 146 | $23.11 | | February 1 through February 28, 2022 | 201 | $21.63 | | March 1 through March 31, 2022 | 1,277 | $24.98 | | **Total Q1 2022** | **1,624** | **$24.40** | - The repurchases of common shares totaling **1,624 shares in Q1 2022** were made by the trustee of the Livent NQSP for employee investments and are **not part of any publicly announced stock repurchase programs**[199](index=199&type=chunk)[201](index=201&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including certifications and data files - Exhibits include Form of Employee PRSU Award Agreement, Certifying Statements of the CEO and CFO (pursuant to Sections 302 and 1350 of Sarbanes-Oxley Act), Interactive Data File, and the cover page formatted in Inline XBRL[203](index=203&type=chunk) [Signatures](index=42&type=section&id=SIGNATURES) The report is duly signed by the Chief Financial Officer on behalf of the corporation - The report was duly signed on behalf of Livent Corporation by Gilberto Antoniazzi, Vice President and Chief Financial Officer, on May 5, 2022, pursuant to the requirements of the Securities Exchange Act of 1934[205](index=205&type=chunk)[206](index=206&type=chunk)

PART I [Item 1. Business](index=7&type=section&id=Item%201.%20Business) Livent Corporation, an independent, fully integrated lithium company since 2019, specializes in high-performance lithium compounds for EVs and battery markets, while maintaining leadership in butyllithium and high-purity lithium metal - Livent Corporation was formed and incorporated by FMC Corporation in February 2018, conducted its initial public offering in October 2018, and became an independent company in March 2019[18](index=18&type=chunk) - The company is a pure-play, fully integrated lithium company, producing battery-grade lithium hydroxide, lithium carbonate, butyllithium, and high purity lithium metal[20](index=20&type=chunk) - Livent's strategy is to focus on supplying high-performance lithium compounds to the fast-growing electric vehicle (EV) and broader battery markets[20](index=20&type=chunk) - The company is expanding its production capacities with a **5,000 metric ton lithium hydroxide addition** in Bessemer City, North Carolina (online by Q4 2022), and a **20,000 metric ton lithium carbonate expansion** in Argentina (in two phases by Q1 2023 and year-end 2023)[25](index=25&type=chunk) - Engineering work began in Q1 2022 for a second expansion to add an additional **20,000 metric tons of carbonate capacity** in Argentina by the end of 2025, aiming for a total of roughly **60,000 metric tons**[26](index=26&type=chunk) - Livent operates as one reportable segment due to commonalities in products, customer types, and operating performance evaluation[35](index=35&type=chunk) - The company extracts lithium from naturally occurring lithium-rich brines in Salar del Hombre Muerto, Argentina, considered one of the world's most significant and lowest-cost sources of lithium[57](index=57&type=chunk) Capacity and Production by Product Type (2019-2021) | Product Category | Product | 2021 Capacity (MT) | 2021 Production (MT) | 2020 Capacity (MT) | 2020 Production (MT) | 2019 Capacity (MT) | 2019 Production (MT) | |---|---|---|---|---|---|---|---| | Performance Lithium | Lithium Hydroxide | 25,000 | 19,671 | 25,000 | 14,686 | 25,000 | 21,348 | | | Butyllithium | 3,265 | 2,549 | 3,265 | 2,180 | 3,265 | 2,437 | | | High Purity Lithium Metal | 250 | 156 | 250 | 160 | 250 | 167 | | Base Lithium | Lithium Carbonate | 18,000 | 15,542 | 18,000 | 15,589 | 18,000 | 16,785 | | | Lithium Chloride | 9,000 | 3,723 | 9,000 | 4,836 | 9,000 | 4,284 | Revenue by Product Category (2019-2021) | Product Category | 2021 Revenue (Millions) | 2020 Revenue (Millions) | 2019 Revenue (Millions) | |---|---|---|---| | Lithium Hydroxide | $208.0 | $157.5 | $213.8 | | Butyllithium | $105.4 | $87.1 | $99.9 | | High Purity Lithium Metal and Other Specialty Compounds | $36.9 | $31.7 | $52.4 | | Lithium Carbonate and Lithium Chloride | $70.1 | $11.9 | $22.3 | | **Total Revenue** | **$420.4** | **$288.2** | **$388.4** | Revenue by Geographical Region (2019-2021) | Region | 2021 Revenue (Millions) | 2020 Revenue (Millions) | 2019 Revenue (Millions) | |---|---|---|---| | North America | $61.4 | $53.3 | $76.2 | | Latin America | $0.0 | $0.2 | $1.0 | | Europe, Middle East & Africa | $62.2 | $49.2 | $59.0 | | Asia Pacific | $296.8 | $185.5 | $252.2 | | **Total Revenue** | **$420.4** | **$288.2** | **$388.4** | - One customer accounted for approximately **31% of total revenue** in 2021, and the top 10 customers accounted for approximately **69% of revenue** in 2021[387](index=387&type=chunk) - In 2021, Livent experienced a **15% global headcount increase**, driven by expansion efforts in Argentina and the U.S., quality program depth in Asia, and global engineering talent expansion[97](index=97&type=chunk) - As of December 31, 2021, Livent had approximately **1,109 full-time, part-time, temporary, and contract employees** globally, with **38% in Latin America**, **35% in North America**, **19% in Asia**, and **7% in Europe**[108](index=108&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) Livent faces a range of material risks, including the ongoing adverse impacts of the COVID-19 pandemic on operations, supply chains, and customer demand, with growth highly dependent on the continued expansion of the EV market and demand for high-performance lithium compounds - The COVID-19 pandemic continues to adversely impact Livent's business, operations, and financial performance, causing disruptions in supply chains, logistics, and customer demand, and increasing costs[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Livent's growth is highly dependent on the continued growth in demand for electric vehicles (EVs) and high-performance lithium compounds; a slower-than-expected EV market development could negatively impact the business[138](index=138&type=chunk) - Lithium prices are volatile, and declines could materially affect Livent's business, financial condition, and results of operations, especially given index-based pricing in some contracts[140](index=140&type=chunk) - Production expansion efforts are complex, require significant capital expenditures, and are subject to risks such as technical difficulties, regulatory hurdles, labor issues, and unforeseen costs, which could delay projects or render them infeasible[145](index=145&type=chunk) - Substantial international operations, particularly in Argentina, expose Livent to political, financial (e.g., high inflation, foreign exchange restrictions), and operational risks (e.g., mining concession changes, water access, natural disasters, civil unrest)[155](index=155&type=chunk)[161](index=161&type=chunk)[163](index=163&type=chunk)[165](index=165&type=chunk) - The company has not established 'proven' or 'probable' reserves for its minerals, as defined by the SEC, leading to greater uncertainty regarding the economic viability of mineral extraction and future production capacity[188](index=188&type=chunk) - Increasing focus on sustainability and ESG matters from stakeholders could negatively impact Livent's business and reputation if it fails to meet or accurately report on its initiatives and goals[189](index=189&type=chunk)[190](index=190&type=chunk) [Item 1B. Unresolved Staff Comments](index=39&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - No unresolved staff comments[215](index=215&type=chunk) [Item 2. Properties](index=40&type=section&id=Item%202.%20Properties) Livent operates six manufacturing facilities across five countries and ten sales/administrative/R&D facilities in eight countries, including its leased corporate headquarters in Philadelphia, Pennsylvania, holding long-term mineral rights to critical lithium reserves in Argentina - Livent operates **six manufacturing facilities in five countries** and **ten facilities for sales, marketing, research and development, and administrative needs in eight countries**[216](index=216&type=chunk) - The company holds long-term mineral rights to the Salar del Hombre Muerto lithium reserves in Argentina, which are essential for its raw material supply[217](index=217&type=chunk) Key Production and Administrative Properties | Location | Function | Leased/Owned | |---|---|---| | United States (Philadelphia, PA) | Corporate Headquarters | Leased | | United States (Bessemer City, NC) | Manufacturing and Research | Owned | | South America (Fénix, Argentina) | Lithium Extraction and Manufacturing | Owned | | South America (Guemes, Argentina) | Manufacturing | Owned | | Europe (Bromborough, United Kingdom) | Manufacturing and Sales | Leased | | Asia Pacific (Zhangjiagang, China) | Manufacturing | Land use right, building owned | | Asia Pacific (Patancheru, India) | Manufacturing | Leased | [Item 3. Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 2, Note 9, and Note 16 of the consolidated financial statements - Legal proceedings information is incorporated by reference from Notes 2, 9, and 16 of the consolidated financial statements[218](index=218&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Livent Corporation - Mine Safety Disclosures are not applicable[219](index=219&type=chunk) [Item 4A. Executive Officers of the Registrant](index=41&type=section&id=Item%204A.%20Executive%20Officers%20of%20the%20Registrant) This section lists the executive officers of Livent Corporation, their current offices, business experience, and ages as of December 31, 2021, along with a summary of their diversity characteristics Executive Officers as of December 31, 2021 | Name | Age | Office | |---|---|---| | Paul W. Graves | 50 | President, Chief Executive Officer and Director | | Gilberto Antoniazzi | 55 | Vice President and Chief Financial Officer | | Sara Ponessa | 50 | Vice President, General Counsel and Secretary | Executive Officer Diversity (Gender and National Origin) | Category | Male | Female | |---|---|---| | Number of executive officers | 2 | 1 | | Hispanic or Latinx | 1 | 1 | | White | 1 | — | | National Origin: United Kingdom | 1 | — | | National Origin: Brazil | 1 | — | | National Origin: U.S. (Puerto Rico) | — | 1 | PART II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Livent's common stock trades on the New York Stock Exchange under the symbol LTHM, with 2,283 holders of record and approximately 117,293 beneficial holders as of February 25, 2022, and no cash dividends declared or planned - Livent common stock (Symbol: **LTHM**) is traded on the New York Stock Exchange[225](index=225&type=chunk) - As of February 25, 2022, there were **2,283 holders of record** and approximately **117,293 beneficial holders** of common stock[225](index=225&type=chunk) - The Board of Directors has not declared any quarterly dividends as of December 31, 2021, and does not expect to pay any dividends in the foreseeable future[226](index=226&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | |---|---|---| | October 1 - October 31, 2021 | 166 | $25.68 | | November 1 - November 30, 2021 | 148 | $30.17 | | December 1 - December 31, 2021 | 173 | $25.78 | | **Total Q4 2021** | **487** | **$27.08** | - The shares purchased were reacquired by the trustee of the Livent NQSP deferred compensation plan through open-market purchases, not part of publicly announced repurchase programs[230](index=230&type=chunk)[231](index=231&type=chunk) [Item 6. [RESERVED]](index=42&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Livent's 2021 financial performance saw significant improvements, with revenue increasing by 46% to $420.4 million and a return to net income of $0.6 million, driven by higher sales volumes and pricing despite increased costs, with liquidity boosted by a public offering of common stock - Livent is a pure-play, fully integrated lithium company focused on high-performance lithium compounds for the rapidly growing EV and energy storage battery markets[234](index=234&type=chunk) - The company completed a public offering of **14,950,000 shares of common stock** in June 2021, generating net proceeds of **$252.2 million**, primarily for growth capital expenditures and debt repayment[236](index=236&type=chunk) - The COVID-19 pandemic continued to negatively impact business, operations, and financial performance in 2021, causing supply chain disruptions, increased costs, and delays in capital expansion work[237](index=237&type=chunk)[239](index=239&type=chunk)[241](index=241&type=chunk) - Livent expects flat volumes but significantly higher average pricing across its lithium products in 2022, leading to higher profitability, but also anticipates higher costs due to logistics, raw materials, and general inflationary pressures[252](index=252&type=chunk) Key Financial Highlights (2021 vs. 2020) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | Change (%) | |---|---|---|---|---| | Revenue | $420.4 | $288.2 | $132.2 | 45.9% | | Gross Margin | $88.4 | $36.8 | $51.6 | 140.2% | | Net Income/(Loss) | $0.6 | $(16.3) | $16.9 | N/A | | Adjusted EBITDA (Non-GAAP) | $69.5 | $22.3 | $47.2 | 211.7% | - Cash provided by operating activities increased significantly to **$26.4 million** in 2021 from **$6.3 million** in 2020, driven by higher net income and decreased payments of accounts payable[272](index=272&type=chunk) - Cash used in investing activities increased to **$143.3 million** in 2021 from **$131.1 million** in 2020, primarily due to the resumption and significant increase in capital expenditures for lithium carbonate and hydroxide capacity expansion[273](index=273&type=chunk)[274](index=274&type=chunk) - Cash provided by financing activities increased to **$218.0 million** in 2021 from **$119.1 million** in 2020, mainly due to **$252.2 million net proceeds** from the common stock offering, partially offset by Revolving Credit Facility repayment[275](index=275&type=chunk)[276](index=276&type=chunk) - Total capital spending for 2022 is estimated to be in the range of **$280 million to $320 million**[278](index=278&type=chunk) - The company's 2025 Notes are classified as long-term debt, and holders have the option to convert them through March 31, 2022, due to the stock price exceeding 130% of the conversion price[456](index=456&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Livent is exposed to market risks from fluctuations in commodity prices, interest rates, and foreign currency exchange rates, utilizing derivative contracts to minimize cash flow exposure to interest and currency rate changes, excluding Argentine peso risks - Livent is exposed to market risks from fluctuations in commodity prices, interest rates, and foreign currency exchange rates[300](index=300&type=chunk) - The company uses derivative contracts to hedge exposures and minimize cash flow volatility from interest and currency exchange rates[300](index=300&type=chunk)[303](index=303&type=chunk) - Livent does not hedge foreign currency risks associated with the Argentine peso due to limited availability and high cost of suitable derivative instruments[303](index=303&type=chunk) Foreign Currency Exchange Rate Sensitivity (December 31, 2021) | Metric | Net Asset/(Liability) Position (Millions) | |---|---| | Net asset/(liability) position as of December 31, 2021 | $0.2 | | Net liability position with 10% strengthening | $(2.0) | | Net asset position with 10% weakening | $1.6 | - A **one percentage point increase or decrease** in interest rates would have increased or decreased gross interest expense by **$0.2 million** for the year ended December 31, 2021[308](index=308&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=54&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Livent Corporation's audited consolidated financial statements for 2019-2021, including statements of operations, comprehensive income/(loss), balance sheets, cash flows, and equity, along with detailed notes and an unqualified audit opinion from KPMG LLP Consolidated Statements of Operations (2019-2021) | (in Millions, Except Per Share Data) | 2021 | 2020 | 2019 | |---|---|---|---| | Revenue | $420.4 | $288.2 | $388.4 | | Gross margin | $88.4 | $36.8 | $114.9 | | Income/(loss) from operations before loss on debt extinguishment, equity in net loss of unconsolidated affiliates and interest expense, net | $29.7 | $(21.1) | $58.6 | | Net income/(loss) | $0.6 | $(16.3) | $50.2 | | Net income/(loss) per weighted average share - basic | $0.00 | $(0.11) | $0.34 | | Net income/(loss) per weighted average share - diluted | $0.00 | $(0.11) | $0.34 | Consolidated Balance Sheets (December 31, 2021 and 2020) | (in Millions) | 2021 | 2020 | |---|---|---| | Cash and cash equivalents | $113.0 | $11.6 | | Total current assets | $399.3 | $249.8 | | Property, plant and equipment, net | $677.9 | $545.3 | | Total assets | $1,202.5 | $936.8 | | Total current liabilities | $131.3 | $82.3 | | Long-term debt | $240.4 | $274.6 | | Total current and long-term liabilities | $407.1 | $400.6 | | Total equity | $795.4 | $536.2 | | Total liabilities and equity | $1,202.5 | $936.8 | Consolidated Statements of Cash Flows (2019-2021) | (in Millions) | 2021 | 2020 | 2019 | |---|---|---|---| | Cash provided by operating activities | $26.4 | $6.3 | $58.1 | | Cash used in investing activities | $(143.3) | $(131.1) | $(190.0) | | Cash provided by financing activities | $218.0 | $119.1 | $120.5 | | Increase/(decrease) in cash and cash equivalents | $101.4 | $(5.2) | $(11.5) | | Cash and cash equivalents, end of period | $113.0 | $11.6 | $16.8 | - Livent early adopted ASU 2020-06 on January 1, 2021, using the full retrospective method, which simplifies accounting for convertible debt instruments by reporting them as a single liability[380](index=380&type=chunk)[381](index=381&type=chunk) - The company's **4.125% Convertible Senior Notes due 2025** (2025 Notes) were issued for **$245.8 million** in 2020, with net proceeds used to finance green projects and repay the Revolving Credit Facility[450](index=450&type=chunk) - The Revolving Credit Facility provides for a **$400 million senior secured revolving credit facility**, with **$385.5 million available funds** as of December 31, 2021[458](index=458&type=chunk)[440](index=440&type=chunk) - Total unrecognized tax benefits were **$2.9 million** as of December 31, 2021, with **$1.0 million** potentially impacting the effective tax rate[435](index=435&type=chunk) - KPMG LLP issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting[564](index=564&type=chunk)[565](index=565&type=chunk) - The assessment of uncertain tax positions, particularly those not indemnified by FMC, was identified as a critical audit matter due to complex judgment in interpreting tax laws and intercompany pricing policies[571](index=571&type=chunk)[572](index=572&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=98&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There are no changes in or disagreements with accountants on accounting and financial disclosure to report - No changes in or disagreements with accountants on accounting and financial disclosure[592](index=592&type=chunk) [Item 9A. Controls and Procedures](index=98&type=section&id=Item%209A.%20Controls%20and%20Procedures) Livent's management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2021, with no material changes in internal controls over financial reporting during the fourth quarter of 2021 - Management concluded that Livent's disclosure controls and procedures were **effective** as of December 31, 2021[593](index=593&type=chunk) - No changes in internal controls over financial reporting occurred during Q4 2021 that materially affected or are reasonably likely to materially affect internal control over financial reporting[596](index=596&type=chunk) [Item 9B. Other Information](index=98&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - This item is not applicable[597](index=597&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=98&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable - This item is not applicable[598](index=598&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=99&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, the Audit Committee, and the Code of Ethics is incorporated by reference from the Proxy Statement and Item 4A of this Form 10-K - Information on directors, executive officers, Audit Committee, and Code of Ethics is incorporated by reference from the Proxy Statement and Item 4A[600](index=600&type=chunk) [Item 11. Executive Compensation](index=99&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation, director compensation, and Compensation and Organization Committee interlocks and insider participation is incorporated by reference from the Proxy Statement - Information on executive compensation, director compensation, and Compensation and Organization Committee interlocks is incorporated by reference from the Proxy Statement[601](index=601&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=99&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of certain beneficial owners and management is incorporated by reference from the Proxy Statement, with details on the company's stockholder-approved equity compensation plans - Security ownership information for beneficial owners and management is incorporated by reference from the Proxy Statement[602](index=602&type=chunk) Equity Compensation Plan Information (December 31, 2021) | Plan Category | Number of Securities to be issued upon exercise of outstanding options and restricted stock units (A) | Weighted-average exercise price of outstanding options awards (B) | Number of Securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A)) (C) | |---|---|---|---| | Equity Compensation Plans approved by stockholders | 4,360,918 | $14.37 | 6,322,919 | - The Livent Plan's 'evergreen' provision for increasing available shares was not authorized for January 1, 2022[605](index=605&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=99&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding independent directors and related party transactions, including the related policy, is incorporated by reference from the Proxy Statement - Information on independent directors and related party transactions is incorporated by reference from the Proxy Statement[605](index=605&type=chunk) [Item 14. Principal Accountant Fees and Services](index=100&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information concerning principal accountant fees and services is incorporated by reference from the Proxy Statement, identifying KPMG LLP as the auditor - Information on principal accountant fees and services is incorporated by reference from the Proxy Statement[606](index=606&type=chunk) - Auditor Name: **KPMG LLP**, Auditor Location: **Philadelphia, PA (U.S. firm)**, PCAOB ID: **185**[606](index=606&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=100&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the documents filed with the report, including consolidated financial statements and a comprehensive index of exhibits, many of which are incorporated by reference from previous SEC filings - Consolidated financial statements of Livent Corporation and its subsidiaries are incorporated under Item 8 of this Form 10-K[609](index=609&type=chunk) - A detailed index of exhibits is provided, including the Certificate of Incorporation, By-Laws, Credit Agreement, and various compensation plans, many of which are incorporated by reference[607](index=607&type=chunk)[610](index=610&type=chunk)[612](index=612&type=chunk) [Item 16. Form 10-K Summary](index=101&type=section&id=Item%2016.%20Form%2010-K%20Summary) This is an optional disclosure item and is not included in this report - Form 10-K Summary is an optional disclosure and is not included in this report[612](index=612&type=chunk) [SIGNATURES](index=102&type=section&id=SIGNATURES) This section contains the signatures of Livent Corporation's authorized representatives, including the President, Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, and members of the Board of Directors, certifying the report as of February 28, 2022 - The report is signed by Paul W. Graves (President, CEO, and Director), Gilberto Antoniazzi (VP and CFO), Ronald Stark (Chief Accounting Officer), and other Directors[615](index=615&type=chunk)[616](index=616&type=chunk) - The report was signed on February 28, 2022[615](index=615&type=chunk)

[Glossary of Terms](index=4&type=section&id=Glossary%20of%20Terms) The glossary defines key financial and business terms and abbreviations used throughout the report - The glossary defines key terms and abbreviations used throughout the report, including financial instruments like '2025 Notes' and 'Credit Agreement', accounting standards like 'ASC' and 'ASU', and business-specific terms such as 'EV' (Electric Vehicle) and 'Nemaska Project'[10](index=10&type=chunk) [Part I - Financial Information](index=5&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Livent Corporation's unaudited condensed consolidated financial statements for Q3 2021 and 2020, including operations, balance sheets, cash flows, and equity, with detailed accounting notes [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details Livent's revenues, gross margins, and net loss for the specified periods Condensed Consolidated Statements of Operations (in Millions, Except Per Share Data) | Metric | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :---------------------------------------------------------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenue | $103.6 | $72.6 | $297.5 | $206.0 | | Gross margin | $18.3 | $2.8 | $52.0 | $27.6 | | Income/(loss) from operations before income taxes | $2.8 | $(13.6) | $6.9 | $(18.0) | | Income tax expense/(benefit) | $15.4 | $(3.1) | $13.8 | $(5.4) | | Net loss | $(12.6) | $(10.5) | $(6.9) | $(12.6) | | Net loss per weighted average share - basic and diluted | $(0.08) | $(0.07) | $(0.05) | $(0.09) | | Weighted average common shares outstanding - basic and diluted | 161.6 | 146.3 | 152.3 | 146.2 | - Revenue increased by **43%** for the three months ended September 30, 2021, and by **44%** for the nine months ended September 30, 2021, compared to the respective prior periods, primarily due to higher sales volumes of lithium hydroxide, lithium carbonate, and butyllithium[13](index=13&type=chunk)[170](index=170&type=chunk)[178](index=178&type=chunk) - Gross margin significantly increased by **554%** for the three months ended September 30, 2021, and by **88%** for the nine months ended September 30, 2021, driven by higher sales volumes, partially offset by increased logistics, raw material, and other operating costs[13](index=13&type=chunk)[171](index=171&type=chunk)[179](index=179&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This statement presents Livent's net loss and other comprehensive income/loss components, including foreign currency translation and derivative instruments Condensed Consolidated Statements of Comprehensive Loss (in Millions) | Metric | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net loss | $(12.6) | $(10.5) | $(6.9) | $(12.6) | | Foreign currency translation (loss)/gain | $(1.1) | $3.0 | $(0.2) | $1.4 | | Derivative instruments loss, net of tax | $(0.1) | $0.0 | $0.0 | $(0.2) | | Other comprehensive (loss)/income, net of tax | $(1.2) | $3.0 | $(0.2) | $1.2 | | Comprehensive loss | $(13.8) | $(7.5) | $(7.1) | $(11.4) | - Comprehensive loss for the three months ended September 30, 2021, was **$(13.8) million**, an increase from **$(7.5) million** in the prior year, primarily due to foreign currency translation losses and derivative instrument losses[16](index=16&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of Livent's assets, liabilities, and equity as of September 30, 2021, and December 31, 2020 Condensed Consolidated Balance Sheets (in Millions) | Metric | September 30, 2021 | December 31, 2020 | | :---------------------------------------------------------------------------------------------------------------- | :----------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $195.3 | $11.6 | | Total current assets | $432.3 | $249.8 | | Property, plant and equipment, net | $605.3 | $545.3 | | Total assets | $1,151.0 | $936.8 | | **LIABILITIES AND EQUITY** | | | | Total current liabilities | $88.7 | $82.3 | | Long-term debt | $240.1 | $274.6 | | Total current and long-term liabilities | $366.5 | $400.6 | | Total equity | $784.5 | $536.2 | | Total liabilities and equity | $1,151.0 | $936.8 | - Cash and cash equivalents significantly increased to **$195.3 million** as of September 30, 2021, from **$11.6 million** at December 31, 2020, largely due to proceeds from a public offering[19](index=19&type=chunk)[73](index=73&type=chunk)[186](index=186&type=chunk) - Total assets grew to **$1,151.0 million** from **$936.8 million**, while total liabilities decreased to **$366.5 million** from **$400.6 million**, primarily driven by the repayment of the Revolving Credit Facility[19](index=19&type=chunk)[188](index=188&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details Livent's cash flows from operating, investing, and financing activities for the nine months ended September 30, 2021 and 2020 Condensed Consolidated Statements of Cash Flows (in Millions) | Metric | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash provided by operating activities | $41.0 | $1.5 | | Cash used in investing activities | $(74.3) | $(111.8) | | Cash provided by financing activities | $216.9 | $108.2 | | Increase/(decrease) in cash and cash equivalents | $183.7 | $(2.0) | | Cash and cash equivalents, end of period | $195.3 | $14.8 | - Cash provided by operating activities increased significantly to **$41.0 million** for the nine months ended September 30, 2021, from **$1.5 million** in the prior year, driven by higher net income and decreased accounts payable payments[21](index=21&type=chunk)[189](index=189&type=chunk) - Cash used in investing activities decreased to **$(74.3) million** from **$(111.8) million**, primarily due to the temporary suspension and subsequent ramp-up of capital expansion work[21](index=21&type=chunk)[191](index=191&type=chunk) - Cash provided by financing activities more than doubled to **$216.9 million**, mainly from **$252.2 million** net proceeds from a public offering, partially offset by Revolving Credit Facility repayments[21](index=21&type=chunk)[192](index=192&type=chunk) [Condensed Consolidated Statements of Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This statement outlines changes in Livent's equity components, including common stock, retained earnings, and accumulated other comprehensive loss Condensed Consolidated Statements of Equity (in Millions) | Metric | Balance, Dec 31, 2020 | Balance, Sep 30, 2021 | | :------------------------------------ | :-------------------- | :-------------------- | | Common Stock, $0.001 Per Share Par Value | $0.1 | $0.1 | | Capital In Excess of Par Value | $520.9 | $776.4 | | Retained Earnings | $60.3 | $53.4 | | Accumulated Other Comprehensive Loss | $(44.4) | $(44.6) | | Treasury Stock | $(0.7) | $(0.8) | | Total Equity | $536.2 | $784.5 | - Total equity increased by **$248.3 million** to **$784.5 million** as of September 30, 2021, primarily driven by **$252.2 million** in net proceeds from a common stock offering[27](index=27&type=chunk)[73](index=73&type=chunk) - Retained earnings decreased from **$60.3 million** to **$53.4 million**, reflecting net losses during the period[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1: Description of the Business](index=11&type=section&id=Note%201%3A%20Description%20of%20the%20Business) This note describes Livent Corporation's business, focusing on its role as a global producer of performance lithium compounds for EVs and batteries - Livent Corporation manufactures lithium for a wide range of products, primarily lithium-based batteries, specialty polymers, and chemical synthesis applications[28](index=28&type=chunk) - The company is a leading global producer of performance lithium compounds, with significant growth driven by the adoption of electric vehicles (EVs) and lithium-ion batteries in Asia, Europe, and North America[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2: Principal Accounting Policies and Related Financial Information](index=11&type=section&id=Note%202%3A%20Principal%20Accounting%20Policies%20and%20Related%20Financial%20Information) This note outlines Livent's principal accounting policies, including estimates, assumptions, and the early adoption of ASU No. 2020-06 - The condensed consolidated financial statements are prepared in accordance with SEC interim reporting requirements and U.S. GAAP, with certain notes condensed or omitted[30](index=30&type=chunk) - Estimates and assumptions, particularly regarding trade receivables, long-lived assets, income taxes, inventory, and financial instruments, could be impacted by the COVID-19 pandemic, though no material updates were required as of the report date[31](index=31&type=chunk)[32](index=32&type=chunk) - The company early adopted ASU No. 2020-06 for its 2025 Convertible Senior Notes, effective January 1, 2021, using the full retrospective method[33](index=33&type=chunk) [Note 3: Recently Issued and Adopted Accounting Pronouncements and Regulatory Items](index=11&type=section&id=Note%203%3A%20Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements%20and%20Regulatory%20Items) This note details Livent's early adoption of ASU 2020-06 for convertible debt and ASU 2019-12 for income taxes - Livent early adopted ASU 2020-06 on January 1, 2021, using the full retrospective method, which simplifies accounting for convertible debt instruments by reporting them as a single liability and requiring the if-converted method for EPS calculations[37](index=37&type=chunk) - The adoption of ASU 2020-06 resulted in adjustments to retained earnings, additional paid-in capital, long-term debt, and deferred income taxes on the consolidated balance sheet[37](index=37&type=chunk) - The company also adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes, as of January 1, 2021, which did not have a material impact on the financial statements[38](index=38&type=chunk) [Note 4: Revenue Recognition](index=12&type=section&id=Note%204%3A%20Revenue%20Recognition) This note provides disaggregated revenue information by major geographical region and product category, highlighting customer concentration Disaggregated Revenue by Major Geographical Region (in Millions) | Region | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :---------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | North America | $20.0 | $11.0 | $63.4 | $40.5 | | Europe, Middle East & Africa | $14.2 | $9.8 | $46.0 | $32.3 | | Asia Pacific | $69.4 | $51.8 | $188.1 | $133.1 | | Total Revenue | $103.6 | $72.6 | $297.5 | $206.0 | Disaggregated Revenue by Major Product Category (in Millions) | Product Category | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Lithium Hydroxide | $50.7 | $43.9 | $160.5 | $115.4 | | Butyllithium | $27.4 | $19.6 | $76.1 | $62.4 | | High Purity Lithium Metal and Other Specialty Compounds | $9.8 | $7.1 | $27.6 | $23.0 | | Lithium Carbonate and Lithium Chloride | $15.7 | $2.0 | $33.3 | $5.2 | | Total Revenue | $103.6 | $72.6 | $297.5 | $206.0 | - For the three months ended September 30, 2021, one customer accounted for approximately **35%** of total revenue, and the top **10** customers accounted for approximately **69%** of total revenue, indicating significant customer concentration[42](index=42&type=chunk) [Note 5: Inventories, Net](index=13&type=section&id=Note%205%3A%20Inventories%2C%20Net) This note presents the breakdown of Livent's inventories, net, including finished goods, semi-finished goods, and raw materials Inventories, Net (in Millions) | Category | September 30, 2021 | December 31, 2020 | | :------------------------ | :----------------- | :---------------- | | Finished goods | $35.0 | $36.1 | | Semi-finished goods | $41.3 | $46.2 | | Raw materials, supplies and other | $33.9 | $23.3 | | Inventory, net | $110.2 | $105.6 | - Total inventory, net, increased to **$110.2 million** as of September 30, 2021, from **$105.6 million** at December 31, 2020, primarily driven by an increase in raw materials, supplies, and other inventory[47](index=47&type=chunk) [Note 6: Investments](index=14&type=section&id=Note%206%3A%20Investments) This note details Livent's equity interest in Québec Lithium Partners (QLP) and its accounting as an equity method investment - Livent holds a **50%** equity interest in Québec Lithium Partners (QLP), a joint venture for the Nemaska Project, which is accounted for as an equity method investment[49](index=49&type=chunk) - The company recorded a **$1.0 million** loss for the three months and a **$3.7 million** loss for the nine months ended September 30, 2021, from its equity interest in QLP[49](index=49&type=chunk) [Note 7: Restructuring and Other Charges](index=14&type=section&id=Note%207%3A%20Restructuring%20and%20Other%20Charges) This note outlines Livent's restructuring and other charges, including severance-related costs and environmental remediation expenses Restructuring and Other Charges (in Millions) | Category | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Severance-related and exit costs | $0.1 | $0.9 | $0.2 | $5.8 | | Environmental remediation | $0.1 | $0.1 | $0.3 | $0.4 | | Other | $0.9 | $3.4 | $2.9 | $3.9 | | Total | $1.1 | $4.4 | $3.4 | $10.1 | - Total restructuring and other charges decreased to **$1.1 million** for the three months and **$3.4 million** for the nine months ended September 30, 2021, from **$4.4 million** and **$10.1 million** in the prior year periods, respectively[50](index=50&type=chunk) - The decrease was primarily due to lower severance-related costs and the finalization of IPO litigation settlement in Q2 2021, which had incurred a **$2.5 million** accrual in Q3 2020[50](index=50&type=chunk)[172](index=172&type=chunk) [Note 8: Income Taxes](index=15&type=section&id=Note%208%3A%20Income%20Taxes) This note details Livent's income tax expense/benefit and effective tax rate, explaining impacts from foreign currency and tax law changes Income Tax Expense/(Benefit) and Effective Tax Rate | Period | Income Tax Expense/(Benefit) (in Millions) | Effective Tax Rate | | :-------------------------- | :--------------------------------------- | :----------------- | | 3 Months Ended Sep 30, 2021 | $15.4 | 540.5% | | 3 Months Ended Sep 30, 2020 | $(3.1) | 22.8% | | 9 Months Ended Sep 30, 2021 | $13.8 | 198.7% | | 9 Months Ended Sep 30, 2020 | $(5.4) | 30.0% | - The significant increase in income tax expense for Q3 2021 and YTD 2021 was primarily due to foreign currency impacts in Argentina, including inflationary tax adjustments, and an increase in income from operations[54](index=54&type=chunk)[175](index=175&type=chunk)[183](index=183&type=chunk) - An amendment to Argentina's income tax law in June 2021, introducing new progressive corporate income tax rates, resulted in a tax benefit of **$(2.2) million** for the revaluation of Argentina net deferred tax assets for the nine months ended September 30, 2021[183](index=183&type=chunk) [Note 9: Debt](index=15&type=section&id=Note%209%3A%20Debt) This note provides details on Livent's long-term debt, including the Revolving Credit Facility and Convertible Senior Notes due 2025 Long-Term Debt (in Millions) | Debt Type | September 30, 2021 | December 31, 2020 | | :-------------------------------- | :----------------- | :---------------- | | Revolving Credit Facility | $0.0 | $35.6 | | 4.125% Convertible Senior Notes due 2025 | $245.8 | $245.8 | | Transaction costs - 2025 Notes | $(5.7) | $(6.8) | | Total long-term debt | $240.1 | $274.6 | - Total long-term debt decreased to **$240.1 million** as of September 30, 2021, from **$274.6 million** at December 31, 2020, primarily due to the repayment of the Revolving Credit Facility using proceeds from the June 2021 public offering[55](index=55&type=chunk)[68](index=68&type=chunk)[188](index=188&type=chunk) - The company early adopted ASU 2020-06 retrospectively, which now reports the 2025 Notes as a single liability instrument, impacting interest expense and balance sheet classifications[57](index=57&type=chunk)[60](index=60&type=chunk)[62](index=62&type=chunk) - As of September 30, 2021, Livent was in compliance with all debt covenants, including a maximum allowable first lien leverage ratio of **3.5** and a minimum allowable interest coverage ratio of **3.5**[69](index=69&type=chunk)[188](index=188&type=chunk) [Note 10: Equity](index=20&type=section&id=Note%2010%3A%20Equity) This note details Livent's equity components, including common stock issuance, treasury shares, and accumulated other comprehensive loss Common Stock Issued and Outstanding | Metric | Balance at Dec 31, 2020 | Balance at Sep 30, 2021 | | :---------------------------------------- | :---------------------- | :---------------------- | | Issued Shares | 146,461,249 | 161,676,147 | | Treasury Shares | (99,268) | (101,131) | | Outstanding Shares | 146,361,981 | 161,575,016 | - In June 2021, Livent issued **14,950,000** shares of common stock in an underwritten public offering, generating net proceeds of **$252.2 million**, which were recorded to paid-in capital[73](index=73&type=chunk) Accumulated Other Comprehensive Loss (AOCL), Net of Tax (in Millions) | Metric | Dec 31, 2020 | Sep 30, 2021 | | :---------------------------------------- | :----------- | :----------- | | Foreign currency adjustments | $(44.4) | $(44.6) | | Derivative Instruments | $0.0 | $0.0 | | Total AOCL, net of tax | $(44.4) | $(44.6) | - No dividends were paid for the three and nine months ended September 30, 2021 and 2020, and none are expected in the foreseeable future[80](index=80&type=chunk) [Note 11: Loss Per Share](index=21&type=section&id=Note%2011%3A%20Loss%20Per%20Share) This note explains Livent's basic and diluted loss per common share, including the treatment of potentially dilutive securities Basic and Diluted Loss Per Common Share | Metric | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net loss (in Millions) | $(12.6) | $(10.5) | $(6.9) | $(12.6) | | Weighted average common shares outstanding (in Millions) | 161.6 | 146.3 | 152.3 | 146.2 | | Net loss per weighted average share - basic and diluted | $(0.08) | $(0.07) | $(0.05) | $(0.09) | - Diluted EPS considers potentially dilutive securities (stock options, RSUs, and 2025 Notes) using the if-converted method, but these are excluded when their inclusion would have an anti-dilutive effect due to a net loss[82](index=82&type=chunk) Total Antidilutive Weighted Average Share Equivalents (in Millions) | Period | Share equivalents from share-based plans | Share equivalents from 2025 Notes | Total | | :-------------------------- | :------------------------------------- | :-------------------------------- | :---- | | 3 Months Ended Sep 30, 2021 | 1.5 | 45.3 | 46.8 | | 3 Months Ended Sep 30, 2020 | 0.6 | 28.1 | 28.7 | | 9 Months Ended Sep 30, 2021 | 1.4 | 44.0 | 45.4 | | 9 Months Ended Sep 30, 2020 | 0.6 | 10.1 | 10.7 | [Note 12: Financial Instruments, Risk Management and Fair Value Measurements](index=22&type=section&id=Note%2012%3A%20Financial%20Instruments%2C%20Risk%20Management%20and%20Fair%20Value%20Measurements) This note describes Livent's use of derivative financial instruments for risk management and fair value measurements of debt - Livent uses derivative financial instruments, primarily foreign exchange forward contracts, to mitigate currency risk from international operations in currencies like the Euro, British pound, Chinese yuan, and Japanese yen[93](index=93&type=chunk)[95](index=95&type=chunk) - Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive loss (AOCL) and reclassified to earnings as the hedged item affects earnings[97](index=97&type=chunk) - As of September 30, 2021, the estimated fair value of debt was **$292.0 million**, with a carrying amount of **$240.1 million**, and the 2025 Notes are classified as Level 2 in the fair value hierarchy[92](index=92&type=chunk) [Note 13: Commitments and Contingencies](index=26&type=section&id=Note%2013%3A%20Commitments%20and%20Contingencies) This note outlines Livent's commitments and contingencies, including legal proceedings, environmental liabilities, and operating lease obligations - Livent records reserves for estimated losses from contingencies when a loss is probable and estimable, adjusting assessments as new information becomes available[115](index=115&type=chunk) - The company is subject to an audit by the Argentine Customs Authority regarding lithium carbonate exports from 2015-2017, with a reasonably possible liability that cannot currently be estimated[118](index=118&type=chunk) Operating Lease Liabilities Maturity Analysis (in Millions) | Period | Undiscounted cash flows | | :---------------- | :---------------------- | | Remainder of 2021 | $0.4 | | 2022 | $1.3 | | 2023 | $1.1 | | 2024 | $1.1 | | 2025 | $1.1 | | Thereafter | $3.0 | | Total future minimum lease payments | $8.0 | | Less: Imputed interest | $(1.5) | | Total | $6.5 | - In Q1 2021, Livent terminated a sublease for its corporate headquarters, removing a **$10.9 million** ROU asset and lease liability, and executed a new five-year sublease in Q2 2021, recording a **$2.1 million** ROU asset and lease liability[124](index=124&type=chunk) [Note 14: Supplemental Information](index=29&type=section&id=Note%2014%3A%20Supplemental%20Information) This note provides supplemental financial details on prepaid assets, other assets, and various accrued and long-term liabilities Prepaid and Other Current Assets (in Millions) | Category | September 30, 2021 | December 31, 2020 | | :-------------------------- | :----------------- | :---------------- | | Argentina government receivable | $11.8 | $10.8 | | Tax related items | $15.4 | $15.7 | | Other receivables | $3.0 | $8.6 | | Prepaid expenses | $7.6 | $8.2 | | Other current assets | $6.0 | $12.8 | | Total | $43.8 | $56.3 | Other Assets (in Millions) | Category | September 30, 2021 | December 31, 2020 | | :-------------------------- | :----------------- | :---------------- | | Argentina government receivable | $51.0 | $55.8 | | Advance to contract manufacturers | $15.6 | $16.3 | | Capitalized software, net | $1.5 | $1.8 | | Tax related items | $2.5 | $2.7 | | Other assets | $11.0 | $11.8 | | Total | $81.6 | $88.4 | Accrued and Other Current Liabilities (in Millions) | Category | September 30, 2021 | December 31, 2020 | | :-------------------------- | :----------------- | :---------------- | | Plant restructuring reserves | $3.2 | $3.2 | | Retirement liability - 401K | $0.6 | $2.6 | | Accrued payroll | $11.5 | $12.5 | | Severance related | $0.2 | $2.5 | | Environmental reserves, current | $0.5 | $0.6 | | Other accrued and other current liabilities | $19.7 | $15.3 | | Total | $35.7 | $36.7 | Other Long-Term Liabilities (in Millions) | Category | September 30, 2021 | December 31, 2020 | | :---------------------------------------- | :----------------- | :---------------- | | Accrued investment in unconsolidated affiliate | $6.2 | $6.2 | | Asset retirement obligations | $0.3 | $0.3 | | Contingencies related to uncertain tax positions | $3.6 | $3.4 | | Deferred compensation plan obligation | $5.5 | $4.5 | | Self-insurance reserves | $1.5 | $1.5 | | Other long-term liabilities | $1.1 | $1.3 | | Total | $18.2 | $17.2 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of Livent's financial condition, operations, liquidity, and market risks for Q3 2021, including COVID-19 impacts [Special Note Regarding Forward-Looking Information](index=31&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This note cautions readers about forward-looking statements, highlighting risks from the COVID-19 pandemic, market demand, and supply chain disruptions - The report contains forward-looking statements based on current views and assumptions, which involve known and unknown risks and uncertainties that could cause actual results to differ materially[136](index=136&type=chunk) - A significant factor influencing future results is the potential adverse effect of the COVID-19 pandemic on the company's financial condition, operations, customers, and supply chain, with heightened risks due to ongoing impacts[137](index=137&type=chunk)[139](index=139&type=chunk) - Key risks include declining demand for EV lithium compounds, supply chain disruptions, price volatility, competition, and risks associated with international operations, particularly in Argentina and China[138](index=138&type=chunk) [Application of Critical Accounting Policies](index=32&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES) This note discusses management's critical accounting policies, estimates, and judgments, particularly concerning revenue, assets, and income taxes - The preparation of financial statements requires management to make estimates and judgments, with critical accounting policies including revenue recognition and trade receivables, impairment and valuation of long-lived assets, and income taxes[141](index=141&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) - The COVID-19 pandemic introduces uncertainty to these estimates, but as of the report date, no specific events required material updates to assumptions or asset/liability carrying values[144](index=144&type=chunk)[146](index=146&type=chunk) [Recently Issued and Adopted Accounting Pronouncements and Regulatory Items](index=33&type=section&id=RECENTLY%20ISSUED%20AND%20ADOPTED%20ACCOUNTING%20PRONOUNCEMENTS%20AND%20REGULATORY%20ITEMS) This section refers to Note 3 for details on recently issued and adopted accounting pronouncements and regulatory items - This section refers to Note 3 of the condensed consolidated financial statements for a discussion of recently adopted accounting guidance and other new accounting guidance[147](index=147&type=chunk) [Overview](index=33&type=section&id=OVERVIEW) This section provides an overview of Livent's business, focusing on its role in the EV battery market and the impact of the COVID-19 pandemic - Livent is a fully integrated lithium company focused on supplying high-performance lithium compounds to the growing Electric Vehicle (EV) battery market, while maintaining its position in butyllithium and high-purity lithium metal[148](index=148&type=chunk)[149](index=149&type=chunk) - For Q3 2021, revenue increased by **43%** to **$103.6 million**, and Adjusted EBITDA rose to **$14.9 million** from **$0.9 million** in Q3 2020, driven by higher sales volumes[151](index=151&type=chunk) - The COVID-19 pandemic continued to negatively impact operations, supply chains, and logistics, causing disruptions, increased costs, and delays in capital expansion work in Argentina and the United States[150](index=150&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - The company expects higher volumes and slightly higher average pricing for lithium products in 2021, with lower unit costs partially offset by increased logistics, solvents, and raw material costs[165](index=165&type=chunk) [Results of Operations](index=36&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes Livent's revenue, gross margin, net loss, and Adjusted EBITDA for Q3 2021 and YTD, explaining key drivers and cost pressures Key Financial Highlights (in Millions) | Metric | 3 Months Ended Sep 30, 2021 | 3 Months Ended Sep 30, 2020 | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :---------------------------------------------------------------------------------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Revenue | $103.6 | $72.6 | $297.5 | $206.0 | | Gross margin | $18.3 | $2.8 | $52.0 | $27.6 | | Net loss | $(12.6) | $(10.5) | $(6.9) | $(12.6) | | EBITDA (Non-GAAP) | $9.0 | $(7.2) | $25.9 | $0.0 | | Adjusted EBITDA (Non-GAAP) | $14.9 | $0.9 | $42.0 | $16.7 | - Revenue increased by **43%** in Q3 2021 and **44%** YTD 2021, driven by higher sales volumes of lithium hydroxide, lithium carbonate, and butyllithium due to increased customer demand[170](index=170&type=chunk)[178](index=178&type=chunk) - Gross margin saw a significant increase of **554%** in Q3 2021 and **88%** YTD 2021, primarily from higher sales volumes, partially offset by increased logistics, raw material, and other operating costs, including COVID-19 related expenses[171](index=171&type=chunk)[179](index=179&type=chunk) - Net loss for Q3 2021 was **$(12.6) million**, compared to **$(10.5) million** in Q3 2020, mainly due to higher Argentina tax expense from inflationary adjustments and increased operating costs, partially offset by higher sales volumes and lower restructuring charges[176](index=176&type=chunk)[177](index=177&type=chunk) - Adjusted EBITDA significantly improved to **$14.9 million** in Q3 2021 and **$42.0 million** YTD 2021, reflecting stronger sales volumes despite cost pressures[168](index=168&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses Livent's cash position, debt, operating cash flow, capital expenditures, and overall liquidity for the next 12 months - Cash and cash equivalents increased to **$195.3 million** at September 30, 2021, from **$11.6 million** at December 31, 2020, with **$12.5 million** held by foreign subsidiaries[186](index=186&type=chunk) - The company repaid all outstanding amounts under its **$400 million** Revolving Credit Facility in June 2021 using proceeds from a public offering, resulting in **$385.6 million** remaining borrowing capacity[187](index=187&type=chunk)[188](index=188&type=chunk)[193](index=193&type=chunk) - Cash provided by operating activities was **$41.0 million** YTD 2021, a significant increase from **$1.5 million** YTD 2020, driven by higher net income and decreased accounts payable payments[189](index=189&type=chunk) - Capital expenditures for 2021 are estimated at **$125 million**, as the company resumed capital expansion work in Argentina and the United States in Q2 2021 after a temporary suspension due to COVID-19[191](index=191&type=chunk)[195](index=195&type=chunk) - Livent believes its available cash, cash from operations, and Revolving Credit Facility will provide adequate liquidity for the next **12** months[197](index=197&type=chunk) [Commitments and Contingencies](index=43&type=section&id=Commitments%20and%20Contingencies) This section refers to Note 13 of the condensed consolidated financial statements for details on commitments and contingencies - This section refers to Note 13 of the condensed consolidated financial statements for details on commitments and contingencies[199](index=199&type=chunk) [Contractual Commitments](index=43&type=section&id=Contractual%20Commitments) This section states that there have been no significant changes to contractual commitments since the 2020 Annual Report on Form 10-K - There have been no significant changes to contractual commitments during the period ended September 30, 2021, from those disclosed in the 2020 Annual Report on Form 10-K[200](index=200&type=chunk) [Climate Change](index=43&type=section&id=Climate%20Change) This section refers to the 2020 Annual Report on Form 10-K for a detailed discussion related to climate change - A detailed discussion related to climate change can be found in Part II, Item 7 of the 2020 Annual Report on Form 10-K[201](index=201&type=chunk) [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms Livent has no material off-balance sheet arrangements impacting its financial condition or liquidity - Livent does not have any off-balance sheet arrangements that are material or reasonably likely to have a current or future effect on its financial condition, results of operations, or liquidity[202](index=202&type=chunk) [Derivative Financial Instruments and Market Risks](index=43&type=section&id=DERIVATIVE%20FINANCIAL%20INSTRUMENTS%20AND%20MARKET%20RISKS) This section details Livent's management of market risks, including commodity prices, interest rates, and foreign currency exchange rates - Livent manages market risks related to commodity prices, interest rates, and foreign currency exchange rates through a controlled risk management program, including derivative contracts with major financial institutions[203](index=203&type=chunk) - The company is exposed to foreign currency risk from operations in various countries, primarily hedging with foreign exchange forward contracts, but does not hedge Argentine peso risks due to limited availability and high cost[205](index=205&type=chunk) - A sensitivity analysis indicates that a **10%** change in foreign currency exchange rates would result in a net liability position of **$(0.6) million** with strengthening and a net asset position of **$0.6 million** with weakening as of September 30, 2021[206](index=206&type=chunk)[207](index=207&type=chunk) - As of September 30, 2021, Livent had no interest rate swap agreements, and a one percentage point increase or decrease in interest rates would have impacted gross interest expense by **$0.2 million** for the nine months ended September 30, 2021[208](index=208&type=chunk)[209](index=209&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the 'Derivative Financial Instruments and Market Risks' discussion within Item 2 for market risk disclosures - The required information for this item is provided in the 'Derivative Financial Instruments and Market Risks' section under Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations[210](index=210&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that Livent's disclosure controls and procedures were effective as of September 30, 2021, and there were no material changes in internal control over financial reporting during the quarter - As of September 30, 2021, the company's disclosure controls and procedures were deemed effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[211](index=211&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended September 30, 2021, that materially affected or are reasonably likely to materially affect, the company's internal control over financial reporting[212](index=212&type=chunk) [Part II - Other Information](index=45&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) This section states Livent is involved in ordinary course legal proceedings, with no expected material adverse effect on financial position - The company is involved in legal proceedings, including workers' compensation matters, in the ordinary course of business[214](index=214&type=chunk) - Based on available information and established reserves, the ultimate resolution of any known legal proceeding is not expected to have a material adverse effect on financial position, liquidity, or results of operations[214](index=214&type=chunk) - There are no material changes from legal proceedings previously disclosed in the 2020 Annual Report on Form 10-K, except as noted in Note 13 to the financial statements[214](index=214&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) This section advises readers to consider risk factors from the 2020 Annual Report on Form 10-K and cautions against undue reliance on forward-looking statements - Readers should carefully consider the risk factors discussed in Part I, Item 1A of the 2020 Annual Report on Form 10-K[215](index=215&type=chunk) - Additional risks and uncertainties not currently known or deemed immaterial could also adversely affect the business, financial condition, or future results[215](index=215&type=chunk) - The company cautions against undue reliance on forward-looking statements and does not undertake to publicly revise or update them[216](index=216&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchases by the Livent NQSP trustee for employee investments, not part of a public program Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :-------------------------- | :------------------------------- | :--------------------------- | | July 1 through July 31, 2021 | 206 | $19.52 | | August 1 through August 31, 2021 | 187 | $24.22 | | September 1 through September 30, 2021 | 172 | $24.64 | | Total Q3 2021 | 565 | $22.64 | - Shares of Livent common stock are reacquired by the trustee of the Livent NQSP through open-market purchases for employee investments and are recorded as Treasury stock[218](index=218&type=chunk) - Livent Corporation does not have any publicly announced stock repurchase programs[219](index=219&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including interactive data files and certifying statements - Exhibits include Interactive Data Files (101, 104) and Certifying Statements from the CEO and CFO (31.1, 31.2, 32.1, 32.2) as required by the Sarbanes-Oxley Act[221](index=221&type=chunk) [Signatures](index=47&type=section&id=SIGNATURES) This section confirms the report's due signing by Livent Corporation's Vice President and Chief Financial Officer on November 4, 2021 - The report is duly signed on behalf of Livent Corporation by Gilberto Antoniazzi, Vice President and Chief Financial Officer, on November 4, 2021, in accordance with the Securities Exchange Act of 1934[223](index=223&type=chunk)[224](index=224&type=chunk)

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 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to _______ Commission ...

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 March 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to _______ Commis ...

Table of Contents For the transition period from _______ to _______ Commission File Number 001-38694 __________________________________________________________________________ LIVENT CORPORATION (Exact name of registrant as specified in its charter) __________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________ FORM 10-K _________________________________ ...

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 September 30, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HA ...

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, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______ to _______ Commiss ...

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 March 31, 2020 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 001-38694 _____________________________________________ ...

For the transition period from _______ to _______ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________________________ FORM 10-K _______________________________________________________________________ x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2019 or ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act o ...