XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.25.2

Summary of Significant Accounting Policies | 6 Months Ended
--- | ---
Jun. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Myers Industries, Inc. and all wholly owned subsidiaries (collectively, the “Company”), and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2024. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position as of June 30, 2025, and the results of operations and cash flows for the periods presented. The results of operations for the quarter and six months ended June 30, 2025 are not necessarily indicative of the results of operations that will occur for the year ending December 31, 2025. In the first quarter of 2025, the Company updated its presentation of Depreciation and amortization expenses and third-party Freight out costs previously included in Selling, general and administrative expenses. Prior year amounts have been updated to conform to the current presentation as shown in the Condensed Consolidated Statements of Operations (Unaudited). Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures to provide information to better assess how an entity's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. For the Company, this ASU is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The amendments within this ASU should be applied prospectively although retrospective application is also permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU is intended to improve the disclosures about an entity's expenses and requires disaggregation of certain expense captions into specified categories to provide more detailed information about the types of expenses commonly presented. For the Company, this ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments within this ASU should be applied prospectively to financial statements issued for reporting periods after the effective date of this update or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Fair Value Measurement The Company follows guidance included in ASC 820, Fair Value Measurements and Disclosures, for its financial assets and liabilities, as required. Under ASC 820, the hierarchy that prioritizes the inputs to valuation techniques used to measure fair value is divided into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable either directly or indirectly. Level 3: Unobservable inputs for which there is little or no market data or which reflect the entity’s own assumptions. The Company has financial instruments, including cash, accounts receivable, accounts payable and accrued expenses. The fair value of these financial instruments approximates carrying value due to the nature and relative short maturity of these assets and liabilities. The fair value of the Company’s revolving credit facility, as defined in Note 11, approximates carrying value due to the floating rates and the relative short maturity (less than 90 days) of any revolving borrowings under this agreement. The carrying value of the unhedged portion of the Company’s term loan, as defined in Note 11, approximates fair value given that the underlying interest rate applied to such amounts outstanding is currently based upon floating market rates and the Company has the ability to repay the outstanding principal at par value at any time under the terms of this agreement. The Company has also entered into an interest rate swap contract to reduce its exposure to fluctuations in variable interest rates for future interest payments, as defined in Note 11. The Company uses significant other observable market data or assumptions (Level 2 inputs) in determining the fair value of its interest rate swap that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contract and inputs corroborated by observable market data including interest rate curves. Refer to the derivative instruments section below for further information regarding the fair value measurements for the interest rate swap. The purchase price allocation associated with the February 8, 2024 acquisition of Signature CR Intermediate Holdco, Inc. ("Signature" or "Signature Systems"), as described in Note 3, required fair value measurements using unobservable inputs which are considered Level 3 inputs. The fair value of the acquired intangible assets was determined using an income approach. Derivative Instruments On May 2, 2024, the Company entered into an interest rate swap agreement to limit its exposure to changes in interest rates on a portion of its floating rate indebtedness. The interest rate swap agreement is designated as a cash flow hedge that qualifies for hedge accounting. The swap has a beginning notional value of $200.0 million, which reduces proportionately with scheduled Term Loan A amortization payments, and has a final maturity date of January 31, 2029. The interest rate swap effectively results in a fixed rate of 4.606% plus the applicable margin for the hedged debt, as described in Note 11. The reset dates and all other critical terms on the term loans perfectly match with the interest rate swap and accordingly there were no amounts excluded from the measurement of hedge effectiveness. At June 30, 2025, the remaining notional value of the Company's interest rate swap totaled $187.5 million and the net fair value of the Company's interest rate swap contract was estimated to be an unrealized loss of $6.2 million, which is included in the Condensed Consolidated Statements of Financial Position (Unaudited) within Other current liabilities and Other liabilities (long-term) at $1.3 million and $4.9 million, respectively. Fair value adjustments are recorded as a component of Accumulated Other Comprehensive Income (Loss) ('AOCI') in the Condensed Consolidated Statements of Financial Position (Unaudited) and balances in AOCI are reclassified into earnings when transactions related to the underlying risk are settled. The pre-tax balance of interest rate swap gain (loss) in AOCI for the quarter and six months ended June 30, 2025 was $(1.1) million and $(2.9) million, respectively and $(2.8) million for the quarter and six months ended June 30, 2024. As of June 30, 2025, $1.3 million of net interest rate swap losses recorded in AOCI are expected to be reclassified into earnings within the next twelve months; however, the actual amount that will be reclassified will vary based on changes in interest rates. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) are as follows:
|  | Foreign Currency |  |  | Interest Rate Swap (1) |  |  | Defined Benefit Pension Plans (2) |  |  | Total |
Balance at April 1, 2025 |  | $ | (18,617 | ) |  | $ | (3,765 | ) |  | $ | (1,101 | ) |  | $ | (23,483 | )
Other comprehensive income (loss) before reclassifications |  |  | 1,915 |  |  |  | (891 | ) |  |  | — |  |  |  | 1,024 |
Reclassification to (earnings) loss |  |  | — |  |  |  | 87 |  |  |  | 1,101 |  |  |  | 1,188 |
Net current-period other comprehensive income (loss) |  |  | 1,915 |  |  |  | (804 | ) |  |  | 1,101 |  |  |  | 2,212 |
Balance at June 30, 2025 |  | $ | (16,702 | ) |  | $ | (4,569 | ) |  | $ | — |  |  | $ | (21,271 | )
(1) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.3) million for the quarter ended June 30, 2025. (2) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.4) million for the quarter ended June 30, 2025.
|  | Foreign Currency |  |  | Interest Rate Swap (3) |  |  | Defined Benefit Pension Plans |  |  | Total |
Balance at April 1, 2024 |  | $ | (16,382 | ) |  | $ | — |  |  | $ | (1,264 | ) |  | $ | (17,646 | )
Other comprehensive income (loss) before reclassifications |  |  | (360 | ) |  |  | (1,976 | ) |  |  | — |  |  |  | (2,336 | )
Reclassification to (earnings) loss |  |  | — |  |  |  | (142 | ) |  |  | — |  |  |  | (142 | )
Net current-period other comprehensive income (loss) |  |  | (360 | ) |  |  | (2,118 | ) |  |  | — |  |  |  | (2,478 | )
Balance at June 30, 2024 |  | $ | (16,742 | ) |  | $ | (2,118 | ) |  | $ | (1,264 | ) |  | $ | (20,124 | )
(3) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.7) million for the quarter ended June 30, 2024.
|  | Foreign Currency |  |  | Interest Rate Swap (4) |  |  | Defined Benefit Pension Plans (5) |  |  | Total |
Balance at January 1, 2025 |  | $ | (18,609 | ) |  | $ | (2,400 | ) |  | $ | (1,101 | ) |  | $ | (22,110 | )
Other comprehensive income (loss) before reclassifications |  |  | 1,907 |  |  |  | (2,341 | ) |  |  | — |  |  |  | (434 | )
Reclassification to (earnings) loss |  |  | — |  |  |  | 172 |  |  |  | 1,101 |  |  |  | 1,273 |
Net current-period other comprehensive income (loss) |  |  | 1,907 |  |  |  | (2,169 | ) |  |  | 1,101 |  |  |  | 839 |
Balance at June 30, 2025 |  | $ | (16,702 | ) |  | $ | (4,569 | ) |  | $ | — |  |  | $ | (21,271 | )
(4) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.8) million for the six months ended June 30, 2025. (5) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.4) million for the six months ended June 30, 2025.
|  | Foreign Currency |  |  | Interest Rate Swap (6) |  |  | Defined Benefit Pension Plans |  |  | Total |
Balance at January 1, 2024 |  | $ | (15,551 | ) |  | $ | — |  |  | $ | (1,264 | ) |  | $ | (16,815 | )
Other comprehensive income (loss) before reclassifications |  |  | (1,191 | ) |  |  | (1,976 | ) |  |  | — |  |  |  | (3,167 | )
Reclassification to (earnings) loss |  |  | — |  |  |  | (142 | ) |  |  | — |  |  |  | (142 | )
Net current-period other comprehensive income (loss) |  |  | (1,191 | ) |  |  | (2,118 | ) |  |  | — |  |  |  | (3,309 | )
Balance at June 30, 2024 |  | $ | (16,742 | ) |  | $ | (2,118 | ) |  | $ | (1,264 | ) |  | $ | (20,124 | )
(6) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(0.7) million for the six months ended June 30, 2024. Defined Benefit Plans On April 22, 2025, the Company entered into an agreement with United of Omaha Life Insurance Company (the “Insurer”), under which the Company purchased an irrevocable nonparticipating single premium group annuity contract from the insurer and transferred to the insurer the future benefit obligations and annuity administration for remaining retirees and beneficiaries under the Company’s defined benefit pension plan (the ‘Plan’) with remaining obligations that approximated $4.1 million, at the time of transfer. Under the group annuity contract, the Insurer has made an unconditional and irrevocable commitment to pay the pension benefits of each participant that are due on or after June 1, 2025 and the Company has no remaining obligations under the Plan. The purchase of the group annuity contract was funded primarily by the assets of the plan and as a result of the transaction, the Company recognized a pre-tax pension settlement charge of $1.6 million in the second quarter of 2025, primarily related to the non-cash acceleration of actuarial losses included within Accumulated Other Comprehensive Income (Loss) in the Condensed Consolidated Statements of Financial Position (Unaudited). Allowance for Credit Losses Management has established certain requirements that customers must meet before credit is extended. The financial condition of customers is continually monitored and collateral is usually not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. The Company reviews historical trends for credit loss as well as current economic conditions in determining an estimate for its allowance for credit losses. Additionally, in circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for credit losses is recorded against amounts due to reduce the net recognized receivable to the amount the Company reasonably expects will be collected. The changes in the allowance for credit losses included within Trade accounts receivable for the six months ended June 30, 2025 and 2024 were as follows:
|  | 2025 |  |  | 2024 |
Balance at January 1 |  | $ | 4,183 |  |  | $ | 2,989 |
Provision for expected credit loss, net of recoveries |  |  | 119 |  |  |  | 1,147 |
Write-offs and other |  |  | (619 | ) |  |  | (358 | )
Balance at June 30 |  | $ | 3,683 |  |  | $ | 3,778 |
Allowance for credit losses pertaining to the purchased credit deteriorated assets acquired in conjunction with the acquisition of Signature, as described in Note 3, are not included in the table above. These amounts totaled $3.2 million as of December 31, 2024 and are included net within Other accounts receivable and Other assets – long-term. As more fully described in Note 3, the purchased credit deteriorated assets were fully repaid during the six months ended June 30, 2025 and the $3.2 million allowance for credit loss was reversed and recognized as a reduction to bad debt expense included in Selling, general and administrative on the Condensed Consolidated Statements of Operations (Unaudited).

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 235 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/235/tableOfContent + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration