Annual report pursuant to Section 13 and 15(d)

Long-term Supply Contract

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Long-term Supply Contract
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Long-term Supply Contract
25. Long-term Supply Contract:
As part of Solvay’s 2004 sale of its Specialty Phosphates business, Solvay agreed to continue to supply sulfuric acid to a third party in support of the phosphoric acid production for its specialty phosphates business under a preexisting supply agreement. This non-cancelable agreement extends to 2031, and was assumed by the Company in connection with the 2014 Acquisition.
The liability associated with this supply agreement was recorded at an estimated fair value of $27,300 in connection with the 2014 Acquisition. The fair value was determined by appraisal, based on the marked up price of the sulfuric acid over the price per the supply agreement, or mark up. The liability was $22,250 and $23,888 at December 31, 2017 and 2016, respectively, and is being amortized to cost of goods sold over the remaining term of the agreement.