Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TPIC | |
Entity Registrant Name | TPI COMPOSITES, INC | |
Entity Central Index Key | 0001455684 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 35,153,706 | |
Entity Address, State or Province | AZ | |
Entity File Number | 001-37839 | |
Entity Tax Identification Number | 201590775 | |
Entity Address, Address Line One | 8501 N. Scottsdale Rd. | |
Entity Address, Address Line Two | Gainey Center II, Suite 100 | |
Entity Address, Postal Zip Code | 85253 | |
City Area Code | 480 | |
Local Phone Number | 305-8910 | |
Entity Address, City or Town | Scottsdale |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 58,664 | $ 85,346 |
Restricted cash | 2,122 | 3,555 |
Accounts receivable | 154,191 | 176,815 |
Contract assets | 157,315 | 116,708 |
Prepaid expenses | 15,832 | 9,219 |
Other current assets | 30,908 | 16,819 |
Inventories | 9,738 | 5,735 |
Total current assets | 428,770 | 414,197 |
Property, plant, and equipment, net | 181,416 | 159,423 |
Operating lease right of use assets | 130,512 | |
Other noncurrent assets | 47,262 | 31,235 |
Total assets | 787,960 | 604,855 |
Current liabilities: | ||
Accounts payable and accrued expenses | 239,909 | 199,078 |
Accrued warranty | 42,834 | 36,765 |
Current maturities of long-term debt | 33,780 | 27,058 |
Current operating lease liabilities | 17,362 | |
Contract liabilities | 2,596 | 7,143 |
Total current liabilities | 336,481 | 270,044 |
Long-term debt, net of debt issuance costs and current maturities | 115,157 | 110,565 |
Noncurrent operating lease liabilities | 119,273 | |
Other noncurrent liabilities | 5,017 | 3,289 |
Total liabilities | 575,928 | 383,898 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common shares, $0.01 par value, 100,000 shares authorized, 35,141 shares issued and 35,056 shares outstanding at June 30, 2019 and 100,000 shares authorized, 34,745 shares issued and 34,678 shares outstanding at December 31, 2018 | 351 | 347 |
Paid-in capital | 319,428 | 311,771 |
Accumulated other comprehensive loss | (20,143) | (14,392) |
Accumulated deficit | (85,257) | (74,981) |
Treasury stock, at cost, 85 shares at June 30, 2019 and 67 shares at December 31, 2018 | (2,347) | (1,788) |
Total stockholders’ equity | 212,032 | 220,957 |
Total liabilities and stockholders’ equity | $ 787,960 | $ 604,855 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 35,141,000 | 34,745,000 |
Common stock, shares outstanding | 35,056,000 | 34,678,000 |
Treasury stock, shares | 85,000 | 67,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 330,771 | $ 230,610 | $ 630,551 | $ 484,591 |
Cost of sales | 285,319 | 198,235 | 568,357 | 409,223 |
Startup and transition costs | 22,901 | 17,324 | 41,079 | 32,059 |
Total cost of goods sold | 308,220 | 215,559 | 609,436 | 441,282 |
Gross profit | 22,551 | 15,051 | 21,115 | 43,309 |
General and administrative expenses | 9,208 | 10,989 | 17,193 | 22,152 |
Realized loss on sale of assets | (4,972) | (7,207) | ||
Restructuring charges | 3,874 | 3,874 | ||
Income (loss) from operations | 4,497 | 4,062 | (7,159) | 21,157 |
Other income (expense): | ||||
Interest income | 31 | 43 | 82 | 84 |
Interest expense | (2,274) | (2,715) | (4,273) | (6,053) |
Loss on extinguishment of debt | (3,397) | (3,397) | ||
Realized loss on foreign currency remeasurement | (967) | (765) | (4,769) | (4,776) |
Miscellaneous income | 1,016 | 674 | 1,718 | 1,492 |
Total other expense | (2,194) | (6,160) | (7,242) | (12,650) |
Income (loss) before income taxes | 2,303 | (2,098) | (14,401) | 8,507 |
Income tax (provision) benefit | (475) | (1,955) | 4,125 | (3,912) |
Net income (loss) | $ 1,828 | $ (4,053) | $ (10,276) | $ 4,595 |
Weighted-average common shares outstanding: | ||||
Basic | 35,033 | 34,164 | 34,970 | 34,107 |
Diluted | 36,369 | 34,164 | 34,970 | 35,766 |
Net income (loss) per common share: | ||||
Basic | $ 0.05 | $ (0.12) | $ (0.29) | $ 0.13 |
Diluted | $ 0.05 | $ (0.12) | $ (0.29) | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,828 | $ (4,053) | $ (10,276) | $ 4,595 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4,203) | (8,177) | (2,870) | (6,287) |
Unrealized gain (loss) on hedging derivatives, net of taxes of $284, $0, $765 and $0, respectively | (1,071) | 192 | (2,881) | 192 |
Comprehensive loss | $ (3,446) | $ (12,038) | $ (16,027) | $ (1,500) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on hedging derivatives | $ 284 | $ 0 | $ 765 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock, at Cost [Member] |
Beginning balance at Dec. 31, 2018 | $ 220,957 | $ 347 | $ 311,771 | $ (14,392) | $ (74,981) | $ (1,788) |
Beginning balance, shares at Dec. 31, 2018 | 34,745 | |||||
Net income (loss) | (12,104) | (12,104) | ||||
Share-based compensation expense | 821 | 821 | ||||
Issuances under share-based compensation plan | 4,639 | $ 4 | 4,635 | |||
Issuances under share-based compensation plan, shares | 355 | |||||
Common stock repurchased for treasury | (559) | (559) | ||||
Other comprehensive loss | (477) | (477) | ||||
Ending balance at Mar. 31, 2019 | 213,277 | $ 351 | 317,227 | (14,869) | (87,085) | (2,347) |
Ending balance, shares at Mar. 31, 2019 | 35,100 | |||||
Beginning balance at Dec. 31, 2018 | 220,957 | $ 347 | 311,771 | (14,392) | (74,981) | (1,788) |
Beginning balance, shares at Dec. 31, 2018 | 34,745 | |||||
Net income (loss) | (10,276) | |||||
Ending balance at Jun. 30, 2019 | 212,032 | $ 351 | 319,428 | (20,143) | (85,257) | (2,347) |
Ending balance, shares at Jun. 30, 2019 | 35,141 | |||||
Beginning balance at Mar. 31, 2019 | 213,277 | $ 351 | 317,227 | (14,869) | (87,085) | (2,347) |
Beginning balance, shares at Mar. 31, 2019 | 35,100 | |||||
Net income (loss) | 1,828 | 1,828 | ||||
Share-based compensation expense | 2,057 | 2,057 | ||||
Issuances under share-based compensation plan | 144 | 144 | ||||
Issuances under share-based compensation plan, shares | 41 | |||||
Other comprehensive loss | (5,274) | (5,274) | ||||
Ending balance at Jun. 30, 2019 | $ 212,032 | $ 351 | $ 319,428 | $ (20,143) | $ (85,257) | $ (2,347) |
Ending balance, shares at Jun. 30, 2019 | 35,141 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (10,276) | $ 4,595 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,784 | 13,202 |
Loss on sale of assets | 7,207 | |
Restructuring charges | 3,874 | |
Share-based compensation expense | 2,922 | 4,999 |
Loss on extinguishment of debt | 3,397 | |
Amortization of debt issuance costs | 103 | 260 |
Changes in assets and liabilities: | ||
Accounts receivable | 17,936 | 2,098 |
Contract assets and liabilities | (46,721) | (26,695) |
Operating lease right of use assets and operating lease liabilities | 6,123 | |
Inventories | (4,102) | (1,481) |
Prepaid expenses | (6,773) | (440) |
Other current assets | (14,401) | 1,324 |
Other noncurrent assets | (18,419) | (4,047) |
Accounts payable and accrued expenses | 35,341 | 1,940 |
Accrued warranty | 6,069 | 3,560 |
Other noncurrent liabilities | 1,815 | (177) |
Net cash provided by (used in) operating activities | (1,518) | 2,535 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (37,739) | (42,310) |
Net cash used in investing activities | (37,739) | (42,310) |
Cash flows from financing activities: | ||
Proceeds from revolving and term loans | 6,000 | 74,435 |
Repayments of revolving and term loans | (74,972) | |
Net proceeds from accounts receivable financing | 5,062 | 11,924 |
Proceeds from working capital loans | 2,909 | |
Principal repayments of finance leases | (5,471) | |
Net repayments of other debt | (2,211) | (5,449) |
Debt issuance costs | (281) | |
Proceeds from exercise of stock options | 4,716 | 1,307 |
Repurchase of common stock including shares withheld in lieu of income taxes | (559) | (272) |
Net cash provided by financing activities | 10,446 | 6,692 |
Impact of foreign exchange rates on cash, cash equivalents and restricted cash | 696 | (453) |
Net change in cash, cash equivalents and restricted cash | (28,115) | (33,536) |
Cash, cash equivalents and restricted cash, beginning of year | 89,376 | 152,437 |
Cash, cash equivalents and restricted cash, end of period | 61,261 | 118,901 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 4,236 | 5,607 |
Cash paid for income taxes, net | 9,699 | 2,425 |
Supplemental disclosures of noncash investing and financing activities: | ||
Accrued capital expenditures in accounts payable | $ 6,690 | $ 3,670 |
Summary of Operations and Signi
Summary of Operations and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Operations and Significant Accounting Policies | Description of Business TPI Composites, Inc. is the holding company that conducts substantially all of its business operations through its direct and indirect subsidiaries (collectively, the Company). The Company was founded in 1968 and has been producing composite wind blades since 2001. The Company’s knowledge and experience of composite materials and manufacturing originates with its predecessor company, Tillotson Pearson Inc., a leading manufacturer of high-performance sail and powerboats along with a wide range of composite structures used in other industrial applications. Following the separation from the boat building business in 2004, the Company reorganized in Delaware as LCSI Holding, Inc. and then changed its corporate name to TPI Composites, Inc. in 2008. The Company is headquartered in Scottsdale, Arizona and has expanded its global footprint to include domestic facilities in Newton, Iowa; Fall River, Massachusetts; Warren, Rhode Island and Santa Teresa, New Mexico and international facilities in Dafeng, China; Taicang Port, China; Taicang City, China; Yangzhou, China; Juárez, Mexico; Matamoros, Mexico; Izmir, Turkey; Kolding, Denmark and Chennai, India. References to TPI Composites, Inc, the “Company,” “we,” “us” or “our” in these notes refer to TPI Composites, Inc. and its consolidated subsidiaries. Basis of Presentation We divide our business operations into four geographic operating segments—(1) the United States (U.S.), (2) Asia, (3) Mexico and (4) Europe, the Middle East, Africa and India (EMEAI) as follows: • Our U.S. segment includes (1) the manufacturing of wind blades at our Newton, Iowa plant, (2) the manufacturing of precision molding and assembly systems used to manufacture wind blades at our Warren, Rhode Island facility, (3) the manufacturing of composite solutions for the transportation industry, which we also conduct at our existing Rhode Island facility as well as at our Fall River, Massachusetts facility and at a second manufacturing facility in Newton, Iowa, (4) wind blade inspection and repair services in North America, (5) our advanced engineering center in Kolding, Denmark, which provides technical and engineering resources to our manufacturing facilities and (6) our corporate headquarters, the costs of which are included in general and administrative expenses. • Our Asia segment includes (1) the manufacturing of wind blades at our facilities in Taicang Port, China; Dafeng, China and Yangzhou, China, the latter of which commenced operations in March 2019, (2) the manufacturing of precision molding and assembly systems at our Taicang City, China facility and (3) wind blade inspection and repair services. • Our Mexico segment manufactures wind blades from three facilities in Juárez, Mexico and a facility in Matamoros, Mexico at which we commenced operations in July 2018. In November 2018, we entered into a new lease agreement with a third party for a new precision molding and assembly systems manufacturing facility in Juárez, Mexico and we commenced operations at this facility in March 2019. This segment also performs wind blade inspection and repair services. • Our EMEAI segment manufactures wind blades from two facilities in Izmir, Turkey and also performs wind blade inspection and repair services. In February 2019, we entered into a new lease agreement with a third party for a new manufacturing facility that will be built in Chennai, India and we expect to commence operations at this facility in the first half of 2020. The accompanying condensed consolidated financial statements include the accounts of TPI Composites, Inc. and all of our majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the SEC and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. 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, as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in the opinion of our management, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2019, and the results of our operations, comprehensive income (loss) and cash flows for the periods presented. Interim results for the three and six months ended June 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full years. Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted in 2019 Leases In February 2016, the Financial Accounting Standards Board (FASB) established Topic 842, Leases Land Easement Practical Expedient for Transition to Topic 842 Codification Improvements to Topic 842, Leases Targeted Improvements We adopted this new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, we have not provided financial information and the disclosures required under the new standard for periods before January 1, 2019. The adoption of this standard had a material effect on our financial statements, the most significant of which related to the recognition of ROU assets and lease liabilities on our balance sheet for our real estate, equipment and auto operating leases and providing significant new disclosures about our leasing activities. We elected the package of practical expedients, which allowed us to retain conclusions related to lease identification and classification under legacy GAAP. The new standard also provided practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. Accordingly, for those leases that qualified, we did not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. See Note 8, Leases Income Taxes In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Share-Based Compensation In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Compensation-Stock Compensation In July 2018, the FASB issued ASU 2018-09, Codification Improvements Compensation-Stock Compensation-Income Taxes Accounting Pronouncements Not Yet Adopted Internal Use Software In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2021, with early adoption permitted. We plan to adopt this standard during 2019 and do not expect it to have a material impact on our condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We will adopt this standard as of January 1, 2020 and we are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to adopt this standard during 2019 when we perform our annual impairment tests and we are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Significant Accounting Policies Revenue Recognition The majority of our revenue is generated from long-term contracts associated with manufacturing of wind blades and related services. We account for a long-term contract when it has the approval from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and the collectability of consideration is probable. To determine the proper revenue recognition method for each long-term contract, we evaluate whether the original contract should be accounted for as one or more performance obligations. This evaluation requires judgment and the decisions reached could change the amount of revenue and gross profit recorded in a given period. As most of our contracts contain multiple performance obligations, we allocate the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Our manufacturing services are customer specific and involve production of items that cannot be sold to other customers due to the customers’ protected intellectual property; therefore, we allocate the total transaction price under our contracts with multiple performance obligations using the contractually stated prices, as these prices represent the relative standalone selling price based on an expected cost plus margin model. Revenue is primarily recognized over time as we have an enforceable right to payment upon termination and we may not use or sell the product to fulfill other customers’ contracts. In addition, the customer does not have return or refund rights for items produced that conform to the specifications included in the contract. Because control transfers over time, revenue is recognized based on the extent of progress towards the completion of the performance obligation. We use the cost-to-cost input measure of progress for our contracts as this method provides the best representation of the production progress towards satisfaction of the performance obligation as the materials are distinct to the product being manufactured because of customer specifications provided for in the contract, the costs incurred are proportional to the progress towards completion of the product, and the products do not involve significant pre-fabricated component parts. Under the cost-to-cost method, progress and the related revenue recognition is determined by a ratio of direct costs incurred to date in fulfillment of the contract to the total estimated direct costs required to complete the performance obligation. Determining the revenue to be recognized for services performed under our manufacturing contracts involves significant judgments and estimates relating to the total consideration to be received and the expected total costs to complete the performance obligation. The judgments and estimates relating to the total consideration to be received include the amount of variable consideration as our contracts typically provide the customer with a range of production output options from guaranteed minimum volume obligations to the production capacity of the facility, and customers will provide periodic non-cancellable commitments for the number of wind blades to be produced over the term of the agreement. We use historical experience, customer commitments and forecasted future production based on the capacity of the plant to estimate the total revenue to be received to complete the performance obligation. In addition, the amount of revenue per unit produced may vary based on the costs of production of the wind blades as we may be able to change the price per unit based on changes in the cost of production. Further, some of our contracts provide opportunities for us to share in labor and material cost savings as well as absorb some additional costs as an incentive for more efficient production, both of which impact the margin realized on the contract and ultimately the total amount of revenue to be recognized. Additionally, certain of our customer contracts provide for concessions by us for missed production deadlines. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information available to us at the time of the estimate and may materially change as additional information becomes known. Our contracts may be modified to account for changes in specifications of products and changing requirements. If the contract modifications are for goods or services that are not distinct from the existing contract, they are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If contract modifications are for goods and services that are distinct from the existing contract and increases the amount of consideration reflecting the standalone sale price of the additional goods or services, then the contract modification is accounted for as a separate contract and is evaluated for one or more performance obligations. Each reporting period, we evaluate the progress towards satisfaction of each performance obligation based on any contract modifications that have occurred, cost incurred to date, and an estimate of the expected future revenue and costs to be incurred to complete the performance obligation. Based on this analysis, any changes in estimates of revenue, cost of sales, contract assets and liabilities and the related impact to operating income are recognized on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on the percentage of completion of the performance obligation. Wind blade pricing is based on annual commitments of volume as established in our customer contracts and orders less than committed volume may result in a higher price per wind blade to our customers. Orders in excess of annual commitments may result in discounts to our customers from the contracted price for the committed volume. Our customers typically provide periodic purchase orders with the price per wind blade given the current cost of the bill of materials, labor requirements and volume desired. We record an allowance for expected utilization of early payment discounts which are reported as a reduction of the related revenue. Precision molding and assembly systems included in a customer’s contract are based upon the specific engineering requirements and design determined by the customer and are specific to the wind blade design and function desired. From the customer’s engineering specifications, a job cost estimate is developed along with a production plan, and the desired margin is applied based on the location the work is to be performed and complexity of the customer’s design. Precision molding and assembly systems are generally built to produce wind blades which may be manufactured by us in production runs specified in the customer contract. Contract assets primarily relate to our rights to consideration for work completed but not billed at the reporting date on manufacturing services contracts. The contract assets are transferred to accounts receivable when the rights become unconditional, which generally occurs when customers are invoiced upon the determination that a product conforms to the contract specifications and invoices are due based on each customer’s negotiated payment terms, which range from 15 to 90 days. We apply the practical expedient that allows us to exclude payment terms under one year from the transfer of a promised good or service from consideration of a significant financing component in its contracts. With regards to the production of precision molding and assembly systems, our contracts generally call for progress payments to be made in advance of production. Generally, payment is made at certain percentage of completion milestones with the final payment due upon delivery to the manufacturing facility. These progress payments are recorded within contract liabilities as current liabilities in the condensed consolidated balance sheets and are reduced as we record revenue over time. We evaluate indications that a customer may not be able to meet the obligations under our long-term supply agreements to determine if an account receivable or contract asset may be impaired. Our customers may request, in situations where they do not have space available to receive products or do not want to take possession of products immediately for other reasons, that their finished products be stored by us in one of our facilities. Most of our contracts provide for a limited number of wind blades to be stored during the period of the contract with any additional wind blades stored subject to additional storage fees, which are included in the wind blade performance obligation revenue. Revenue related to non-recurring engineering and freight services provided under our customer contracts is recognized at a point in time following the transfer of control of the promised services to the customer. Customers usually pay the carrier directly for the cost of shipping associated with items produced. When we pay the shipping costs, we apply the practical expedient that allows us to account for shipping and handling as a fulfillment costs and include the revenue in the associated performance obligation and the costs are included in cost of goods sold. Taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transactions, that are collected by us from a customer, are excluded from revenue. Warranty Expense We provide a limited warranty for our wind blades and related precision molding and assembly systems, including materials and workmanship, with terms and conditions that vary depending on the product sold, generally for periods that range from two to five years. We also provide a limited warranty for our transportation products, including materials and workmanship, with terms and conditions that vary depending on the product sold, generally for a period of approximately two years. Warranty expense is recorded based upon estimates of future repairs using a probability-based methodology that considers previous warranty claims, identified quality issues and industry practices. Once the warranty period has expired, any remaining unused warranty accrual for the specific products is reversed against the current year warranty expense amount. Warranty accrual at June 30 consisted of the following: 2019 (in thousands) Warranty accrual at beginning of year $ 36,765 Accrual during the period 10,273 Cost of warranty services provided during the period (2,445 ) Reversal of reserves upon warranty expiration (1,759 ) Warranty accrual at end of period $ 42,834 Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use assets, current operating lease liabilities, and noncurrent operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, current maturities of long-term debt, and long-term debt, net of debt issuance costs and current maturities in the condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Variable payments are not included in ROU assets or lease liabilities and can vary from period to period based on asset usage or our proportionate share of common costs. The implicit rate within our leases is generally not determinable and, therefore, the incremental borrowing rate at lease commencement is utilized to determine the present value of lease payments. We estimate our incremental borrowing rate based on third-party lender quotes to obtain secured debt in a like currency for a similar asset over a timeframe similar to the term of the lease. The ROU asset also includes any lease prepayments made and any initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have elected not to recognize ROU assets or lease liabilities for leases with a term of 12 months or less. We have lease agreements with lease and non-lease components. We have elected to apply the practical expedient to account for these components as a single lease component for all classes of underlying assets. Restructuring Charges Our restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of our workforce and other costs associated with exit activities, which may include costs related to leased facilities to be abandoned and facility and employee relocation costs. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred, except for one-time termination benefits. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. Treasury Stock Common stock purchased for treasury is recorded at historical cost. Transactions in treasury shares relate to share-based compensation plans and are recorded at weighted-average cost. Net Income (Loss) Per Common Share Calculation The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during a period. Diluted net income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus potentially dilutive securities using the treasury stock method. The table below reflects the calculation of the weighted-average number of common shares outstanding, using the treasury stock method, used in computing basic and diluted earnings per common share: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Basic weighted-average shares outstanding 35,033 34,164 34,970 34,107 Effect of dilutive awards 1,336 — — 1,659 Diluted weighted-average shares outstanding 36,369 34,164 34,970 35,766 Share-based compensation awards of 19,000 shares and 97,000 shares were excluded from the computation of diluted net income per share for the three months ended June 30, 2019 and the six months ended June 30, 2018, respectively, because the effect would be anti-dilutive. Further, we had 1,455,000 and 1,851,000 potentially dilutive shares outstanding for the six months ended June 30, 2019 and the three months ended June 30, 2018, respectively, that were not included in the diluted net loss per share calculation because their effect would be anti-dilutive. In addition, certain performance-based restricted stock units have been excluded from the computation of diluted shares outstanding for all periods presented as the performance conditions had not yet been met. Financial Instruments Interest Rate Swap We use interest rate swap contracts to mitigate our exposure to interest rate fluctuations associated with our credit agreement (the Credit Agreement) that we entered into in April 2018. We do not use such swap contracts for speculative or trading purposes. To offset the variability of future interest payments on the Credit Agreement arising from changes in the London Interbank Offered Rate (LIBOR), in April 2018, we entered into an interest rate swap agreement with a financial institution for a notional amount of $75.0 million with an expiration date of April 2023. This interest rate swap effectively hedges $75.0 million of the future variable rate LIBOR interest expense to a fixed rate interest expense. The derivative instrument qualified for accounting as a cash flow hedge in accordance with FASB Accounting Standard Codification (ASC) Topic 815, Derivatives and Hedging, The settlement value of the interest rate swap is $2.9 million as of June 30, 2019 and is included in other noncurrent liabilities in the condensed consolidated balance sheet. The unrealized loss on the swap of $2.3 million, net of tax, is included in the condensed consolidated statement of other comprehensive income (loss). The settlement value of the interest rate swap was $0.8 million as of December 31, 2018 and was included in other noncurrent assets in the condensed consolidated balance sheet. Restricted Cash We provide for cash deposits for letters of guarantee used for customs clearance related to our China locations which are reported as restricted cash in our condensed consolidated balance sheets. We also maintain a long-term deposit in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with an equipment lessor in Iowa which is reported within other noncurrent assets in our condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets which total the same such amounts in the condensed consolidated statements of cash flows: June 30, December 31, June 30, December 31, 2019 2018 2018 2017 (in thousands) Cash and cash equivalents $ 58,664 $ 85,346 $ 113,995 $ 148,113 Restricted cash 2,122 3,555 4,431 3,849 Restricted cash included within other noncurrent assets 475 475 475 475 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 61,261 $ 89,376 $ 118,901 $ 152,437 Other Current Assets Other current assets primarily include refundable value-added taxes and deposits. As of June 30, 2019, we had $25.7 million of refundable value-added taxes and $5.1 million of deposits. As of December 31, 2018, we had $11.2 million of refundable value-added taxes and $5.6 million of deposits. Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue From Contracts with Cus
Revenue From Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue From Contracts with Customers | Note 2. Revenue From Contracts with Customers The following tables represents the disaggregation of our net sales revenue by product for each of our reportable segments: Three Months Ended June 30, 2019 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 26,580 $ 78,413 $ 87,792 $ 108,979 $ 301,764 Precision molding and assembly systems sales 1,222 5,726 5,971 — 12,919 Transportation sales 6,440 — — — 6,440 Other sales 5,616 560 1,599 1,873 9,648 Total net sales $ 39,858 $ 84,699 $ 95,362 $ 110,852 $ 330,771 Three Months Ended June 30, 2018 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 33,696 $ 67,180 $ 55,595 $ 49,882 $ 206,353 Precision molding and assembly systems sales 2,359 9,729 214 — 12,302 Transportation sales 7,459 — — — 7,459 Other sales 1,181 1,022 544 1,749 4,496 Total net sales $ 44,695 $ 77,931 $ 56,353 $ 51,631 $ 230,610 Six Months Ended June 30, 2019 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 58,471 $ 140,541 $ 166,830 $ 212,872 $ 578,714 Precision molding and assembly systems sales 1,366 11,941 10,820 — 24,127 Transportation sales 12,656 — — — 12,656 Other sales 8,993 935 2,377 2,749 15,054 Total net sales $ 81,486 $ 153,417 $ 180,027 $ 215,621 $ 630,551 Six Months Ended June 30, 2018 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 72,641 $ 135,351 $ 111,638 $ 120,903 $ 440,533 Precision molding and assembly systems sales 4,222 17,908 978 — 23,108 Transportation sales 11,512 — — — 11,512 Other sales 2,444 2,342 1,701 2,951 9,438 Total net sales $ 90,819 $ 155,601 $ 114,317 $ 123,854 $ 484,591 In addition, most of our net sales are made directly to our customers, primarily large multi-national wind turbine manufacturers, under our long-term contracts which are typically five years in length. Contract Assets and Liabilities Contract assets consist of the amount of revenue recognized over time for performance obligations in production where control has transferred to the customer but the contract does not yet allow for the customer to be billed. Typically, customers are billed when the product finishes production and meets the technical specifications contained in the contract. The contract assets are recorded as current assets in the condensed consolidated balance sheets. Contract liabilities consist of advance payments in excess of revenue earned. These amounts were historically recorded as customer deposits which usually relate to progress payments received as precision molding and assembly systems were being manufactured. The contract liabilities are recorded as current liabilities in the condensed consolidated balance sheets and are reduced as we record revenue over time. These contract assets and liabilities are reported on the condensed consolidated balance sheets net on a contract-by-contract basis at the end of each reporting period, as demonstrated in the table below. Contract assets and contract liabilities consisted of the following: June 30, December 31, 2019 2018 $ Change (in thousands) Gross contract assets $ 171,315 $ 127,568 $ 43,747 Less: reclassification from contract liabilities (14,000 ) (10,860 ) (3,140 ) Contract assets $ 157,315 $ 116,708 $ 40,607 June 30, December 31, 2019 2018 $ Change (in thousands) Gross contract liabilities $ 16,596 $ 18,003 $ (1,407 ) Less: reclassification to contract assets (14,000 ) (10,860 ) (3,140 ) Contract liabilities $ 2,596 $ 7,143 $ (4,547 ) Contracts assets increased by $40.6 million from December 31, 2018 to June 30, 2019 due to incremental unbilled production during the six months ended June 30, 2019. Contracts liabilities decreased by $4.5 million from December 31, 2018 to June 30, 2019 due to the amounts billed to customers exceeding the revenue earned related to precision molding and assembly systems and wind blades being produced in the six months ended June 30, 2019. The time it takes to produce a single blade is typically between 5 to 7 days. The time it takes to produce a mold is typically between 3 to 6 months. For the three months ended June 30, 2019, we recognized no revenue, and for the six months ended June 30, 2019 we recognized $7.1 million of revenue, that was included in the corresponding contract liability balance at the beginning of the period. Performance Obligations Remaining performance obligations represent the estimated transaction price of firm orders for which work has not been performed and excludes any unexercised contract options. As of June 30, 2019, the aggregate amount of the transaction price allocated to the remaining performance obligations to be satisfied in future periods was approximately $4.9 billion. We estimate that we will recognize the remaining performance obligations as revenue as follows: 16 percent in the remainder of 2019, 31 percent in 2020, 25 percent in 2021, 16 percent in 2022 and the remaining 12 percent in 2023. For the three and six months ended June 30, 2019, net revenue recognized from our performance obligations satisfied in previous periods increased by $2.2 million and decreased by $12.5 million, respectively, as compared to an increase of $0.9 million and a decrease of $4.0 million, respectively, in the same periods of 2018. The current year decrease primarily related to changes in certain of our estimated total contract values and related percentage of completion estimates. Pre-Production Investments We recognize an asset for deferred costs incurred to fulfill a contract when those costs meet all of the following criteria: (a) the costs relate directly to a contract or to an anticipated contract that we can specifically identify; (b) the costs generate or enhance our resources that will be used in satisfying performance obligations in the future; and, (c) the costs are expected to be recovered. We capitalize the costs related to training our workforce to execute the manufacturing services and other facility set-up costs related to preparing for production of a specific contract. We factor these costs into our estimated cost analysis for the overall contract. Costs capitalized are amortized over the number of units produced during the contract term. As of June 30, 2019, the cost and accumulated amortization of such assets totaled $7.1 million and $2.4 million, respectively. As of December 31, 2018, the cost and accumulated amortization of such assets totaled $5.6 million and $2.1 million, respectively. These amounts are included in other noncurrent assets in the condensed consolidated balance sheets and in cost of goods sold within the condensed consolidated statements of operations. |
Significant Risks and Uncertain
Significant Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Significant Risks and Uncertainties | Note 3. Significant Risks and Uncertainties Our revenues and receivables are earned from a small number of customers and consequently, our production levels are dependent on these customers’ orders. See Note 12, Concentration of Customers Subsequent Event In February 2019, our manufacturing production employees in Matamoros, Mexico, who are represented by a labor union, went on strike demanding an increase in their hourly wage rate and the payment of an annual bonus, even though our collective bargaining agreement does not provide for such incentives. During this work stoppage, production was halted at our Matamoros manufacturing facility from February 15, 2019 until March 2, 2019. Although we ultimately resolved the matter in early March 2019, this disruption, along with the loss of nearly 50% of the workforce in Matamoros because of actions taken during the strike and a resulting slower than planned start up in 2018, had a significant impact on production during the first quarter of 2019. Given the heavy demand for wind blades in the U.S. market in 2019, our liquidated damages provisions with our customers are quite stringent. As a result, in addition to the impact of the lost production, we have reduced the total consideration expected to be received under a customer contract for the estimated liquidated damages expected to be incurred, in accordance with the terms of the agreement based on missed production commitments, in the three and six months ended June 30, 2019 by $6.2 million and $10.0 million, respectively. We have experienced construction and startup delays with respect to our new manufacturing facility in Yangzhou, China. These delays resulted in us incurring estimated liquidated damages of $4.1 million during the three months ended June 30, 2019. We expect these delays may result in us incurring additional liquidated damages during the balance of 2019 and will adversely impact our results of operations for the balance of 2019. We also have experienced extended startup delays and challenges with respect to our Newton, Iowa transportation facility, which had an adverse impact on our results of operations for the six months ended June 30, 2019. We expect that these delays and challenges also will have an adverse impact on our results of operations for the balance of 2019. We maintain our U.S. cash in bank deposit accounts that, at times, exceed U.S. federally insured limits. U.S. bank accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) in an amount up to $250,000 during 2019 and 2018. At June 30, 2019 and December 31, 2018, we had $40.2 million and $53.7 million, respectively, of cash in deposit accounts in high quality U.S. banks, which was in excess of FDIC limits. We have not experienced losses in any such accounts. We also maintain cash in bank deposit accounts outside the U.S. with no insurance. At June 30, 2019, this included $10.0 million in China, $4.8 million in Turkey, $2.7 million in Mexico, $0.7 million in Denmark and $0.3 million in India. We have not experienced losses in these accounts. In addition, at June 30, 2019, we had short-term deposits in interest bearing accounts of $2.1 million in China, which are reported as restricted cash in our condensed consolidated balance sheets. At June 30, 2019, we also had long-term deposits in interest bearing accounts of $0.5 million in Iowa which are reported as restricted cash within the caption other noncurrent assets in our condensed consolidated balance sheets. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | Note 4. Accounts Receivable Accounts receivable consisted of the following: June 30, December 31, 2019 2018 (in thousands) Trade accounts receivable $ 149,740 $ 172,667 Other accounts receivable 4,451 4,148 Total accounts receivable $ 154,191 $ 176,815 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Note 5. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: June 30, December 31, 2019 2018 (in thousands) Machinery and equipment $ 129,432 $ 119,737 Buildings 14,927 15,080 Leasehold improvements 41,443 38,747 Office equipment and software 27,501 26,363 Furniture 21,748 19,579 Vehicles 314 287 Construction in progress 33,202 17,390 Total property, plant and equipment, gross 268,567 237,183 Accumulated depreciation (87,151 ) (77,760 ) Property, plant and equipment, net $ 181,416 $ 159,423 Total depreciation expense for the three months ended June 30, 2019 and 2018 was $6.1 million and $6.0 million, respectively, and $16.6 million and $12.8 million for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, the cost and accumulated amortization of assets under finance leases were $45.1 million and $14.6 million, respectively. |
Long-Term Debt, Net of Debt Iss
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | Note 6. Long-Term Debt, Net of Debt Issuance Costs and Current Maturities Long-term debt, net of debt issuance costs and current maturities, consisted of the following: June 30, December 31, 2019 2018 (in thousands) Senior revolving loan—U.S. $ 96,414 $ 90,414 Accounts receivable financing—EMEAI 19,586 14,524 Equipment financing—EMEAI 10,044 12,197 Working capital loans—Asia 2,909 — Equipment finance lease—U.S. 316 111 Equipment finance lease—EMEAI 6,957 6,738 Equipment finance lease—Mexico 13,486 14,517 Total debt - principal 149,712 138,501 Less: Debt issuance costs (775 ) (878 ) Total debt, net of debt issuance costs 148,937 137,623 Less: Current maturities of long-term debt (33,780 ) (27,058 ) Long-term debt, net of debt issuance costs and current maturities $ 115,157 $ 110,565 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Plans | Note 7. Share-Based Compensation Plans Our Amended and Restated 2015 Stock Option and Incentive Plan (the 2015 Plan) provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, restricted stock awards, unrestricted stock awards, cash-based awards, performance share awards and dividend equivalent rights to certain employees, non-employee directors and consultants. Under the 2015 Plan, we have granted awards of stock options, restricted stock units (RSUs) and performance-based restricted stock units (PSUs) to certain employees and non-employee directors. During the six months ended June 30, 2019, we issued to certain employees and non-employee directors an aggregate of 196,418 timed-based RSUs, 116,898 PSUs that vest upon achievement of a cumulative, three-year Adjusted EBITDA target measured from January 1, 2019 through December 31, 2021, and 165,071 PSUs that vest upon achievement of certain stock price hurdles for the period of the grant date through December 31, 2021. All of the time-based RSUs vest on the third anniversary date of the grant date. Each of the time-based and performance-based awards are subject to the recipient’s continued service with us, the terms and conditions of the 2015 Plan and the applicable award agreement. The share-based compensation expense recognized in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Cost of goods sold $ 171 $ 543 $ 348 $ 955 General and administrative expenses 1,766 2,068 2,574 4,044 Total share-based compensation expense $ 1,937 $ 2,611 $ 2,922 $ 4,999 The share-based compensation expense recognized by award type was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) RSUs $ 1,009 $ 1,165 $ 1,931 $ 2,483 Stock options 294 1,041 730 2,031 PSUs 634 405 261 485 Total share-based compensation expense $ 1,937 $ 2,611 $ 2,922 $ 4,999 As of June 30, 2019, the unamortized cost of the outstanding RSUs and PSUs was $6.5 million and $6.2 million, respectively, which we expect to recognize in the condensed consolidated financial statements over weighted-average periods of approximately 2.1 years and 2.5 years, respectively. Additionally, the total unrecognized cost related to non-vested stock option awards was $2.0 million, which we expect to recognize in the condensed consolidated financial statements over a weighted-average period of approximately 1.7 years. Share-based compensation expense for the six months ended June 30, 2019 includes a reversal of expense related to the probability that certain PSUs will not fully vest. The summary of activity under our incentive plans is as follows: Stock Options RSUs PSUs Shares Available for Grant Shares Weighted- Average Exercise Price Options Exercisable Units Weighted- Average Grant Date Fair Value Units Weighted- Average Grant Date Fair Value Balance as of December 31, 2018 5,980,605 2,600,694 $ 13.41 1,415,948 425,876 $ 18.75 249,249 $ 22.67 Increase in shares authorized 1,387,123 — — — — — — Granted (653,478 ) 175,091 23.08 196,418 26.99 281,969 29.25 Exercised/vested — (317,975 ) 14.83 (78,747 ) 24.51 — — Forfeited/cancelled 49,600 (29,997 ) 12.96 (11,902 ) 23.98 (7,701 ) 24.35 Balance as of June 30, 2019 6,763,850 2,427,813 13.93 1,416,827 531,645 20.82 523,517 26.19 The grant date fair value of RSUs which vested during the six months ended June 30, 2019 was $1.9 million. In addition, during the six months ended June 30, 2019, we repurchased 18,917 shares for $0.6 million related to tax withholding requirements on vested RSU awards. The following table summarizes the outstanding and exercisable stock option awards as of June 30, 2019: Options Outstanding Options Exercisable Range of Exercise Prices: Shares Weighted- Average Remaining Contractual Life ( in years Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.49 16,397 1.1 $ 8.49 16,397 $ 8.49 $10.87 1,477,721 5.9 10.87 964,173 10.87 $11.00 to $16.53 320,001 6.6 15.95 203,000 16.10 $17.68 to $18.70 230,460 6.9 18.70 148,331 18.70 $18.77 to $29.26 383,234 9.0 21.43 84,926 20.00 $8.49 to $29.26 2,427,813 6.5 13.93 1,416,827 12.96 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 8. Leases We have operating and finance leases for our manufacturing facilities, warehouses, offices, automobiles and certain of our machinery and equipment. Our leases have remaining lease terms of between one and 15 years, some of which may include options to extend the leases up to five years. The components of lease cost were as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) (in thousands) Operating lease cost $ 8,184 $ 15,937 Finance lease cost Amortization of assets under finance leases $ 1,707 $ 3,221 Interest on finance leases 388 796 Total finance lease cost $ 2,095 $ 4,017 Future minimum lease payments under noncancelable leases as of June 30, 2019 were as follows: Operating Finance Leases Leases (in thousands) Year Ending December 31, 2019 $ 13,085 $ 4,261 2020 26,228 6,418 2021 22,703 6,195 2022 21,659 5,426 2023 21,077 581 Thereafter 79,107 3 Total future minimum lease payments 183,859 22,884 Less: interest (47,224 ) (2,125 ) Total lease liabilities $ 136,635 $ 20,759 Total lease liabilities as of June 30, 2019 were as follows: Operating Finance Leases Leases (in thousands) Current operating lease liabilities $ 17,362 $ — Current maturities of long-term debt — 7,267 Noncurrent operating lease liabilities 119,273 — Long-term debt, net of debt issuance costs and current maturities — 13,492 Total lease liabilities $ 136,635 $ 20,759 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous accounting standard, future minimum lease payments under noncancelable leases as of December 31, 2018 were as follows: Operating Capital Leases Leases (in thousands) 2019 $ 28,173 $ 9,639 2020 26,871 5,098 2021 22,942 4,839 2022 22,065 4,102 2023 21,583 305 Thereafter 61,049 - Total future minimum lease payments $ 182,683 23,983 Less: interest (2,617 ) Total lease liabilities $ 21,366 As of December 31, 2018, the cost and accumulated amortization of assets under capital leases were $41.3 million and $11.7 million, respectively. Other information related to leases was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) (in thousands) Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,849 $ 15,391 Operating cash flows from finance leases 388 796 Financing cash flows from finance leases 2,542 5,471 Right of use assets obtained in exchange for new lease obligations: Operating leases 322 12,205 Finance leases 219 4,922 June 30, 2019 Weighted-Average Remaining Lease Term (In Years): Operating leases 7.7 Finance leases 3.4 Weighted-Average Discount Rate: Operating leases 7.4 % Finance leases 6.6 % As of June 30, 2019, we have an additional lease related to our new manufacturing facility in Chennai, India of approximately $60 million which has not yet commenced, but which we expect will commence in the first half of 2020 with an initial term of ten years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes Income taxes for the three months ended June 30, 2019 were lower than for the three months ended June 30, 2018 primarily due to the earning mix by jurisdiction in 2019 as compared to 2018. Income taxes for the six months ended June 30, 2019 were lower than for the six months ended June 30, 2018 primarily due to the benefit generated in 2019 as compared to a provision in 2018. Our annualized effective tax rate for 2019 is expected to be higher than in 2018 due to losses not benefitted in jurisdictions where a full valuation allowance is recorded. We also continue to not record a deferred tax liability related to unremitted foreign earnings as we maintain our assertion to indefinitely reinvest our unremitted foreign earnings. An ownership change under Sections 382 and 383 of the Internal Revenue Code was deemed to occur in June 2018. In general, a Section 382 and 383 ownership change occurs if there is a cumulative change in our ownership by “5% shareholders” (as defined in the Internal Revenue Code of 1986, as amended) that exceeds 50 percentage points over a rolling three-year period. Based on the analysis performed, however, we do not believe that the Section 382 and 383 annual limitation will materially impact our ability to utilize the tax attributes that existed as of the date of the ownership. Additional ownership changes in the future could result in additional limitations on our net operating loss carryforwards and credits. No changes in tax law occurred during the quarter which have a material impact on our income tax provision. |
Restructuring and Asset Impairm
Restructuring and Asset Impairments | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Note 10. Restructuring Charges In May 2019, we announced plans to consolidate certain of our manufacturing facilities, including our plan to shut down the two blade lines operating in our Taicang Port facility and move our tooling operation from Taicang City to the larger Taicang Port facility, thereby expanding our tooling capacity for larger blades and reducing overall costs. We expect to substantially complete these plans by the end of 2019. In accordance with these plans, during the three months ended June 30, 2019, we incurred total charges of $3.9 million, which included $3.3 million of severance benefits to terminated employees and $0.6 million of other charges, primarily related to exit costs. These charges are located within the caption “Restructuring charges” in the accompanying condensed consolidated statements of operations. We expect to incur additional charges under these plans of approximately $0.5 million throughout the remainder of 2019. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Legal Proceedings In March 2015, a complaint was filed against us in the Superior Court of the State of Arizona (Maricopa County) by a former employee, alleging that we had agreed to compensate the employee upon any future sale or initial public offering of the Company. Upon completion of the June 2019 trial, the court ruled as a matter of law in our favor on certain of the claims against us and the jury reached a verdict in our favor on the remainder of the claims against us. As a result of the trial, we were not obligated to pay any damages or losses to the former employee. From time to time, we are party to various lawsuits, claims, and other legal proceedings that arise in the ordinary course of business, some of which are covered by insurance. Upon resolution of any pending legal matters, we may incur charges in excess of presently established reserves or our insurance policy limits. Our management does not believe that any such charges would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows. |
Concentration of Customers
Concentration of Customers | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentration of Customers | Note 12. Concentration of Customers Revenues from certain customers in excess of 10 percent of our total consolidated revenues are as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Customer Revenues % of Total Revenues % of Total Revenues % of Total Revenues % of Total Vestas $ 142,101 43.0 % $ 67,300 29.2 % $ 270,715 42.9 % $ 152,569 31.5 % GE 92,018 27.8 % 75,007 32.5 % 176,547 28.0 % 162,835 33.6 % Nordex 53,662 16.2 % 47,359 20.5 % 108,530 17.2 % 95,560 19.7 % Trade accounts receivable from certain customers in excess of 10 percent of our total consolidated trade accounts receivable are as follows: June 30, December 31, 2019 2018 Customer % of Total % of Total Vestas 47.0 % 46.7 % Nordex 21.6 % 25.7 % |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 13. Segment Reporting Our operating segments are defined geographically as the U.S., Asia, Mexico and EMEAI. Financial results are aggregated into four reportable segments based on quantitative thresholds. All of our segments operate in their local currency, however a portion of the revenue attributable to our China and Mexico segments is derived in U.S. dollars because certain of our domestic subsidiaries are the contracting parties to the associated customer supply agreements. The following tables set forth certain information regarding each of our segments: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Revenues by segment: U.S. $ 39,858 $ 44,695 $ 81,486 $ 90,819 Asia 84,699 77,931 153,417 155,601 Mexico 95,362 56,353 180,027 114,317 EMEAI 110,852 51,631 215,621 123,854 Total revenues $ 330,771 $ 230,610 $ 630,551 $ 484,591 Revenues by geographic location (1): U.S. $ 39,858 $ 44,695 $ 81,486 $ 90,819 China 84,699 77,931 153,417 155,601 Mexico 95,362 56,353 180,027 114,317 Turkey and India 110,852 51,631 215,621 123,854 Total revenues $ 330,771 $ 230,610 $ 630,551 $ 484,591 Income (loss) from operations: U.S. (2) $ (22,222 ) $ (13,293 ) $ (36,725 ) $ (22,343 ) Asia 131 9,386 (8,669 ) 15,803 Mexico 4,120 227 3,696 4,485 EMEAI 22,468 7,742 34,539 23,212 Total income (loss) from operations $ 4,497 $ 4,062 $ (7,159 ) $ 21,157 June 30, December 31, 2019 2018 (in thousands) Property, plant and equipment, net: U.S. $ 33,453 $ 34,825 Asia (China) 39,981 31,924 Mexico 80,041 65,981 EMEAI (Turkey and India) 27,941 26,693 Total property, plant and equipment, net $ 181,416 $ 159,423 (1) Revenues are attributable to countries based on the location where the product is manufactured or the services are performed. (2) The losses from operations in our U.S. segment includes corporate general and administrative costs of $9.2 million and $11.0 million for the three months ended June 30, 2019 and 2018, respectively and $17.2 million and $22.2 million for the six months ended June 30, 2019 and 2018, respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 14. Subsequent Event As noted in Note 3, Significant Risks and Uncertainties |
Summary of Operations and Sig_2
Summary of Operations and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business TPI Composites, Inc. is the holding company that conducts substantially all of its business operations through its direct and indirect subsidiaries (collectively, the Company). The Company was founded in 1968 and has been producing composite wind blades since 2001. The Company’s knowledge and experience of composite materials and manufacturing originates with its predecessor company, Tillotson Pearson Inc., a leading manufacturer of high-performance sail and powerboats along with a wide range of composite structures used in other industrial applications. Following the separation from the boat building business in 2004, the Company reorganized in Delaware as LCSI Holding, Inc. and then changed its corporate name to TPI Composites, Inc. in 2008. The Company is headquartered in Scottsdale, Arizona and has expanded its global footprint to include domestic facilities in Newton, Iowa; Fall River, Massachusetts; Warren, Rhode Island and Santa Teresa, New Mexico and international facilities in Dafeng, China; Taicang Port, China; Taicang City, China; Yangzhou, China; Juárez, Mexico; Matamoros, Mexico; Izmir, Turkey; Kolding, Denmark and Chennai, India. References to TPI Composites, Inc, the “Company,” “we,” “us” or “our” in these notes refer to TPI Composites, Inc. and its consolidated subsidiaries. |
Basis of Presentation | Basis of Presentation We divide our business operations into four geographic operating segments—(1) the United States (U.S.), (2) Asia, (3) Mexico and (4) Europe, the Middle East, Africa and India (EMEAI) as follows: • Our U.S. segment includes (1) the manufacturing of wind blades at our Newton, Iowa plant, (2) the manufacturing of precision molding and assembly systems used to manufacture wind blades at our Warren, Rhode Island facility, (3) the manufacturing of composite solutions for the transportation industry, which we also conduct at our existing Rhode Island facility as well as at our Fall River, Massachusetts facility and at a second manufacturing facility in Newton, Iowa, (4) wind blade inspection and repair services in North America, (5) our advanced engineering center in Kolding, Denmark, which provides technical and engineering resources to our manufacturing facilities and (6) our corporate headquarters, the costs of which are included in general and administrative expenses. • Our Asia segment includes (1) the manufacturing of wind blades at our facilities in Taicang Port, China; Dafeng, China and Yangzhou, China, the latter of which commenced operations in March 2019, (2) the manufacturing of precision molding and assembly systems at our Taicang City, China facility and (3) wind blade inspection and repair services. • Our Mexico segment manufactures wind blades from three facilities in Juárez, Mexico and a facility in Matamoros, Mexico at which we commenced operations in July 2018. In November 2018, we entered into a new lease agreement with a third party for a new precision molding and assembly systems manufacturing facility in Juárez, Mexico and we commenced operations at this facility in March 2019. This segment also performs wind blade inspection and repair services. • Our EMEAI segment manufactures wind blades from two facilities in Izmir, Turkey and also performs wind blade inspection and repair services. In February 2019, we entered into a new lease agreement with a third party for a new manufacturing facility that will be built in Chennai, India and we expect to commence operations at this facility in the first half of 2020. The accompanying condensed consolidated financial statements include the accounts of TPI Composites, Inc. and all of our majority owned subsidiaries. All significant intercompany transactions and balances have been eliminated. The condensed consolidated financial statements included herein have been prepared by us without audit, pursuant to the rules and regulations of the SEC and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. 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, as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading. The accompanying condensed consolidated financial statements reflect, in the opinion of our management, all normal recurring adjustments necessary to present fairly our financial position at June 30, 2019, and the results of our operations, comprehensive income (loss) and cash flows for the periods presented. Interim results for the three and six months ended June 30, 2019 and 2018 are not necessarily indicative of the results to be expected for the full years. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Pronouncements Adopted in 2019 Leases In February 2016, the Financial Accounting Standards Board (FASB) established Topic 842, Leases Land Easement Practical Expedient for Transition to Topic 842 Codification Improvements to Topic 842, Leases Targeted Improvements We adopted this new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, we have not provided financial information and the disclosures required under the new standard for periods before January 1, 2019. The adoption of this standard had a material effect on our financial statements, the most significant of which related to the recognition of ROU assets and lease liabilities on our balance sheet for our real estate, equipment and auto operating leases and providing significant new disclosures about our leasing activities. We elected the package of practical expedients, which allowed us to retain conclusions related to lease identification and classification under legacy GAAP. The new standard also provided practical expedients for an entity’s ongoing accounting. We elected the short-term lease recognition exemption for all leases that qualify. Accordingly, for those leases that qualified, we did not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases. We also elected the practical expedient to not separate lease and non-lease components for all of our leases. See Note 8, Leases Income Taxes In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Share-Based Compensation In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Compensation-Stock Compensation In July 2018, the FASB issued ASU 2018-09, Codification Improvements Compensation-Stock Compensation-Income Taxes Accounting Pronouncements Not Yet Adopted Internal Use Software In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2021, with early adoption permitted. We plan to adopt this standard during 2019 and do not expect it to have a material impact on our condensed consolidated financial statements. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We will adopt this standard as of January 1, 2020 and we are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, This standard is effective for all public business entities for annual and interim periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We plan to adopt this standard during 2019 when we perform our annual impairment tests and we are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. |
Revenue Recognition | Revenue Recognition The majority of our revenue is generated from long-term contracts associated with manufacturing of wind blades and related services. We account for a long-term contract when it has the approval from both parties, the rights of the parties are identified, payment terms are established, the contract has commercial substance and the collectability of consideration is probable. To determine the proper revenue recognition method for each long-term contract, we evaluate whether the original contract should be accounted for as one or more performance obligations. This evaluation requires judgment and the decisions reached could change the amount of revenue and gross profit recorded in a given period. As most of our contracts contain multiple performance obligations, we allocate the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Our manufacturing services are customer specific and involve production of items that cannot be sold to other customers due to the customers’ protected intellectual property; therefore, we allocate the total transaction price under our contracts with multiple performance obligations using the contractually stated prices, as these prices represent the relative standalone selling price based on an expected cost plus margin model. Revenue is primarily recognized over time as we have an enforceable right to payment upon termination and we may not use or sell the product to fulfill other customers’ contracts. In addition, the customer does not have return or refund rights for items produced that conform to the specifications included in the contract. Because control transfers over time, revenue is recognized based on the extent of progress towards the completion of the performance obligation. We use the cost-to-cost input measure of progress for our contracts as this method provides the best representation of the production progress towards satisfaction of the performance obligation as the materials are distinct to the product being manufactured because of customer specifications provided for in the contract, the costs incurred are proportional to the progress towards completion of the product, and the products do not involve significant pre-fabricated component parts. Under the cost-to-cost method, progress and the related revenue recognition is determined by a ratio of direct costs incurred to date in fulfillment of the contract to the total estimated direct costs required to complete the performance obligation. Determining the revenue to be recognized for services performed under our manufacturing contracts involves significant judgments and estimates relating to the total consideration to be received and the expected total costs to complete the performance obligation. The judgments and estimates relating to the total consideration to be received include the amount of variable consideration as our contracts typically provide the customer with a range of production output options from guaranteed minimum volume obligations to the production capacity of the facility, and customers will provide periodic non-cancellable commitments for the number of wind blades to be produced over the term of the agreement. We use historical experience, customer commitments and forecasted future production based on the capacity of the plant to estimate the total revenue to be received to complete the performance obligation. In addition, the amount of revenue per unit produced may vary based on the costs of production of the wind blades as we may be able to change the price per unit based on changes in the cost of production. Further, some of our contracts provide opportunities for us to share in labor and material cost savings as well as absorb some additional costs as an incentive for more efficient production, both of which impact the margin realized on the contract and ultimately the total amount of revenue to be recognized. Additionally, certain of our customer contracts provide for concessions by us for missed production deadlines. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information available to us at the time of the estimate and may materially change as additional information becomes known. Our contracts may be modified to account for changes in specifications of products and changing requirements. If the contract modifications are for goods or services that are not distinct from the existing contract, they are accounted for as if they were part of the original contract. The effect of a contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue on a cumulative catch-up basis. If contract modifications are for goods and services that are distinct from the existing contract and increases the amount of consideration reflecting the standalone sale price of the additional goods or services, then the contract modification is accounted for as a separate contract and is evaluated for one or more performance obligations. Each reporting period, we evaluate the progress towards satisfaction of each performance obligation based on any contract modifications that have occurred, cost incurred to date, and an estimate of the expected future revenue and costs to be incurred to complete the performance obligation. Based on this analysis, any changes in estimates of revenue, cost of sales, contract assets and liabilities and the related impact to operating income are recognized on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on the percentage of completion of the performance obligation. Wind blade pricing is based on annual commitments of volume as established in our customer contracts and orders less than committed volume may result in a higher price per wind blade to our customers. Orders in excess of annual commitments may result in discounts to our customers from the contracted price for the committed volume. Our customers typically provide periodic purchase orders with the price per wind blade given the current cost of the bill of materials, labor requirements and volume desired. We record an allowance for expected utilization of early payment discounts which are reported as a reduction of the related revenue. Precision molding and assembly systems included in a customer’s contract are based upon the specific engineering requirements and design determined by the customer and are specific to the wind blade design and function desired. From the customer’s engineering specifications, a job cost estimate is developed along with a production plan, and the desired margin is applied based on the location the work is to be performed and complexity of the customer’s design. Precision molding and assembly systems are generally built to produce wind blades which may be manufactured by us in production runs specified in the customer contract. Contract assets primarily relate to our rights to consideration for work completed but not billed at the reporting date on manufacturing services contracts. The contract assets are transferred to accounts receivable when the rights become unconditional, which generally occurs when customers are invoiced upon the determination that a product conforms to the contract specifications and invoices are due based on each customer’s negotiated payment terms, which range from 15 to 90 days. We apply the practical expedient that allows us to exclude payment terms under one year from the transfer of a promised good or service from consideration of a significant financing component in its contracts. With regards to the production of precision molding and assembly systems, our contracts generally call for progress payments to be made in advance of production. Generally, payment is made at certain percentage of completion milestones with the final payment due upon delivery to the manufacturing facility. These progress payments are recorded within contract liabilities as current liabilities in the condensed consolidated balance sheets and are reduced as we record revenue over time. We evaluate indications that a customer may not be able to meet the obligations under our long-term supply agreements to determine if an account receivable or contract asset may be impaired. Our customers may request, in situations where they do not have space available to receive products or do not want to take possession of products immediately for other reasons, that their finished products be stored by us in one of our facilities. Most of our contracts provide for a limited number of wind blades to be stored during the period of the contract with any additional wind blades stored subject to additional storage fees, which are included in the wind blade performance obligation revenue. Revenue related to non-recurring engineering and freight services provided under our customer contracts is recognized at a point in time following the transfer of control of the promised services to the customer. Customers usually pay the carrier directly for the cost of shipping associated with items produced. When we pay the shipping costs, we apply the practical expedient that allows us to account for shipping and handling as a fulfillment costs and include the revenue in the associated performance obligation and the costs are included in cost of goods sold. Taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue-producing transactions, that are collected by us from a customer, are excluded from revenue. |
Warranty Expense | Warranty Expense We provide a limited warranty for our wind blades and related precision molding and assembly systems, including materials and workmanship, with terms and conditions that vary depending on the product sold, generally for periods that range from two to five years. We also provide a limited warranty for our transportation products, including materials and workmanship, with terms and conditions that vary depending on the product sold, generally for a period of approximately two years. Warranty expense is recorded based upon estimates of future repairs using a probability-based methodology that considers previous warranty claims, identified quality issues and industry practices. Once the warranty period has expired, any remaining unused warranty accrual for the specific products is reversed against the current year warranty expense amount. Warranty accrual at June 30 consisted of the following: 2019 (in thousands) Warranty accrual at beginning of year $ 36,765 Accrual during the period 10,273 Cost of warranty services provided during the period (2,445 ) Reversal of reserves upon warranty expiration (1,759 ) Warranty accrual at end of period $ 42,834 |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use assets, current operating lease liabilities, and noncurrent operating lease liabilities in the condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, current maturities of long-term debt, and long-term debt, net of debt issuance costs and current maturities in the condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Variable payments are not included in ROU assets or lease liabilities and can vary from period to period based on asset usage or our proportionate share of common costs. The implicit rate within our leases is generally not determinable and, therefore, the incremental borrowing rate at lease commencement is utilized to determine the present value of lease payments. We estimate our incremental borrowing rate based on third-party lender quotes to obtain secured debt in a like currency for a similar asset over a timeframe similar to the term of the lease. The ROU asset also includes any lease prepayments made and any initial direct costs incurred and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have elected not to recognize ROU assets or lease liabilities for leases with a term of 12 months or less. We have lease agreements with lease and non-lease components. We have elected to apply the practical expedient to account for these components as a single lease component for all classes of underlying assets. |
Restructuring Charges | Restructuring Charges Our restructuring charges consist of employee severance, one-time termination benefits and ongoing benefits related to the reduction of our workforce and other costs associated with exit activities, which may include costs related to leased facilities to be abandoned and facility and employee relocation costs. Liabilities for costs associated with a restructuring activity are measured at fair value and are recognized when the liability is incurred, except for one-time termination benefits. One-time termination benefits are expensed at the date the entity notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Ongoing benefits are expensed when restructuring activities are probable and the benefit amounts are estimable. |
Treasury Stock | Treasury Stock Common stock purchased for treasury is recorded at historical cost. Transactions in treasury shares relate to share-based compensation plans and are recorded at weighted-average cost. |
Net Income (Loss) Per Common Share Calculation | Net Income (Loss) Per Common Share Calculation The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during a period. Diluted net income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding plus potentially dilutive securities using the treasury stock method. The table below reflects the calculation of the weighted-average number of common shares outstanding, using the treasury stock method, used in computing basic and diluted earnings per common share: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Basic weighted-average shares outstanding 35,033 34,164 34,970 34,107 Effect of dilutive awards 1,336 — — 1,659 Diluted weighted-average shares outstanding 36,369 34,164 34,970 35,766 Share-based compensation awards of 19,000 shares and 97,000 shares were excluded from the computation of diluted net income per share for the three months ended June 30, 2019 and the six months ended June 30, 2018, respectively, because the effect would be anti-dilutive. Further, we had 1,455,000 and 1,851,000 potentially dilutive shares outstanding for the six months ended June 30, 2019 and the three months ended June 30, 2018, respectively, that were not included in the diluted net loss per share calculation because their effect would be anti-dilutive. In addition, certain performance-based restricted stock units have been excluded from the computation of diluted shares outstanding for all periods presented as the performance conditions had not yet been met. |
Financial Instruments | Financial Instruments Interest Rate Swap We use interest rate swap contracts to mitigate our exposure to interest rate fluctuations associated with our credit agreement (the Credit Agreement) that we entered into in April 2018. We do not use such swap contracts for speculative or trading purposes. To offset the variability of future interest payments on the Credit Agreement arising from changes in the London Interbank Offered Rate (LIBOR), in April 2018, we entered into an interest rate swap agreement with a financial institution for a notional amount of $75.0 million with an expiration date of April 2023. This interest rate swap effectively hedges $75.0 million of the future variable rate LIBOR interest expense to a fixed rate interest expense. The derivative instrument qualified for accounting as a cash flow hedge in accordance with FASB Accounting Standard Codification (ASC) Topic 815, Derivatives and Hedging, The settlement value of the interest rate swap is $2.9 million as of June 30, 2019 and is included in other noncurrent liabilities in the condensed consolidated balance sheet. The unrealized loss on the swap of $2.3 million, net of tax, is included in the condensed consolidated statement of other comprehensive income (loss). The settlement value of the interest rate swap was $0.8 million as of December 31, 2018 and was included in other noncurrent assets in the condensed consolidated balance sheet. |
Restricted Cash | Restricted Cash We provide for cash deposits for letters of guarantee used for customs clearance related to our China locations which are reported as restricted cash in our condensed consolidated balance sheets. We also maintain a long-term deposit in interest bearing accounts, related to fully cash-collateralized letters of credit in connection with an equipment lessor in Iowa which is reported within other noncurrent assets in our condensed consolidated balance sheets. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets which total the same such amounts in the condensed consolidated statements of cash flows: June 30, December 31, June 30, December 31, 2019 2018 2018 2017 (in thousands) Cash and cash equivalents $ 58,664 $ 85,346 $ 113,995 $ 148,113 Restricted cash 2,122 3,555 4,431 3,849 Restricted cash included within other noncurrent assets 475 475 475 475 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 61,261 $ 89,376 $ 118,901 $ 152,437 |
Other Current Assets | Other Current Assets Other current assets primarily include refundable value-added taxes and deposits. As of June 30, 2019, we had $25.7 million of refundable value-added taxes and $5.1 million of deposits. As of December 31, 2018, we had $11.2 million of refundable value-added taxes and $5.6 million of deposits. |
Use of Estimates | Use of Estimates The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Summary of Operations and Sig_3
Summary of Operations and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Warranty Accrual | Warranty accrual at June 30 consisted of the following: 2019 (in thousands) Warranty accrual at beginning of year $ 36,765 Accrual during the period 10,273 Cost of warranty services provided during the period (2,445 ) Reversal of reserves upon warranty expiration (1,759 ) Warranty accrual at end of period $ 42,834 |
Calculation Of Weighted-Average Number Of Common Shares Outstanding | The table below reflects the calculation of the weighted-average number of common shares outstanding, using the treasury stock method, used in computing basic and diluted earnings per common share: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Basic weighted-average shares outstanding 35,033 34,164 34,970 34,107 Effect of dilutive awards 1,336 — — 1,659 Diluted weighted-average shares outstanding 36,369 34,164 34,970 35,766 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets which total the same such amounts in the condensed consolidated statements of cash flows: June 30, December 31, June 30, December 31, 2019 2018 2018 2017 (in thousands) Cash and cash equivalents $ 58,664 $ 85,346 $ 113,995 $ 148,113 Restricted cash 2,122 3,555 4,431 3,849 Restricted cash included within other noncurrent assets 475 475 475 475 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 61,261 $ 89,376 $ 118,901 $ 152,437 |
Revenue From Contracts with C_2
Revenue From Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Net Sales Revenue by Product for Each of Reportable Segments | The following tables represents the disaggregation of our net sales revenue by product for each of our reportable segments: Three Months Ended June 30, 2019 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 26,580 $ 78,413 $ 87,792 $ 108,979 $ 301,764 Precision molding and assembly systems sales 1,222 5,726 5,971 — 12,919 Transportation sales 6,440 — — — 6,440 Other sales 5,616 560 1,599 1,873 9,648 Total net sales $ 39,858 $ 84,699 $ 95,362 $ 110,852 $ 330,771 Three Months Ended June 30, 2018 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 33,696 $ 67,180 $ 55,595 $ 49,882 $ 206,353 Precision molding and assembly systems sales 2,359 9,729 214 — 12,302 Transportation sales 7,459 — — — 7,459 Other sales 1,181 1,022 544 1,749 4,496 Total net sales $ 44,695 $ 77,931 $ 56,353 $ 51,631 $ 230,610 Six Months Ended June 30, 2019 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 58,471 $ 140,541 $ 166,830 $ 212,872 $ 578,714 Precision molding and assembly systems sales 1,366 11,941 10,820 — 24,127 Transportation sales 12,656 — — — 12,656 Other sales 8,993 935 2,377 2,749 15,054 Total net sales $ 81,486 $ 153,417 $ 180,027 $ 215,621 $ 630,551 Six Months Ended June 30, 2018 U.S. Asia Mexico EMEAI Total (in thousands) Wind blade sales $ 72,641 $ 135,351 $ 111,638 $ 120,903 $ 440,533 Precision molding and assembly systems sales 4,222 17,908 978 — 23,108 Transportation sales 11,512 — — — 11,512 Other sales 2,444 2,342 1,701 2,951 9,438 Total net sales $ 90,819 $ 155,601 $ 114,317 $ 123,854 $ 484,591 |
Summary of Contract Assets and Contract Liabilities | Contract assets and contract liabilities consisted of the following: June 30, December 31, 2019 2018 $ Change (in thousands) Gross contract assets $ 171,315 $ 127,568 $ 43,747 Less: reclassification from contract liabilities (14,000 ) (10,860 ) (3,140 ) Contract assets $ 157,315 $ 116,708 $ 40,607 June 30, December 31, 2019 2018 $ Change (in thousands) Gross contract liabilities $ 16,596 $ 18,003 $ (1,407 ) Less: reclassification to contract assets (14,000 ) (10,860 ) (3,140 ) Contract liabilities $ 2,596 $ 7,143 $ (4,547 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable consisted of the following: June 30, December 31, 2019 2018 (in thousands) Trade accounts receivable $ 149,740 $ 172,667 Other accounts receivable 4,451 4,148 Total accounts receivable $ 154,191 $ 176,815 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property Plant and Equipment Net | Property, plant and equipment, net consisted of the following: June 30, December 31, 2019 2018 (in thousands) Machinery and equipment $ 129,432 $ 119,737 Buildings 14,927 15,080 Leasehold improvements 41,443 38,747 Office equipment and software 27,501 26,363 Furniture 21,748 19,579 Vehicles 314 287 Construction in progress 33,202 17,390 Total property, plant and equipment, gross 268,567 237,183 Accumulated depreciation (87,151 ) (77,760 ) Property, plant and equipment, net $ 181,416 $ 159,423 |
Long-Term Debt, Net of Debt I_2
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt, Net of Debt Issuance Costs and Current Maturities | Long-term debt, net of debt issuance costs and current maturities, consisted of the following: June 30, December 31, 2019 2018 (in thousands) Senior revolving loan—U.S. $ 96,414 $ 90,414 Accounts receivable financing—EMEAI 19,586 14,524 Equipment financing—EMEAI 10,044 12,197 Working capital loans—Asia 2,909 — Equipment finance lease—U.S. 316 111 Equipment finance lease—EMEAI 6,957 6,738 Equipment finance lease—Mexico 13,486 14,517 Total debt - principal 149,712 138,501 Less: Debt issuance costs (775 ) (878 ) Total debt, net of debt issuance costs 148,937 137,623 Less: Current maturities of long-term debt (33,780 ) (27,058 ) Long-term debt, net of debt issuance costs and current maturities $ 115,157 $ 110,565 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations | The share-based compensation expense recognized in the condensed consolidated statements of operations was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Cost of goods sold $ 171 $ 543 $ 348 $ 955 General and administrative expenses 1,766 2,068 2,574 4,044 Total share-based compensation expense $ 1,937 $ 2,611 $ 2,922 $ 4,999 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The share-based compensation expense recognized by award type was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) RSUs $ 1,009 $ 1,165 $ 1,931 $ 2,483 Stock options 294 1,041 730 2,031 PSUs 634 405 261 485 Total share-based compensation expense $ 1,937 $ 2,611 $ 2,922 $ 4,999 |
Summary of Activity for Incentive Plans | The summary of activity under our incentive plans is as follows: Stock Options RSUs PSUs Shares Available for Grant Shares Weighted- Average Exercise Price Options Exercisable Units Weighted- Average Grant Date Fair Value Units Weighted- Average Grant Date Fair Value Balance as of December 31, 2018 5,980,605 2,600,694 $ 13.41 1,415,948 425,876 $ 18.75 249,249 $ 22.67 Increase in shares authorized 1,387,123 — — — — — — Granted (653,478 ) 175,091 23.08 196,418 26.99 281,969 29.25 Exercised/vested — (317,975 ) 14.83 (78,747 ) 24.51 — — Forfeited/cancelled 49,600 (29,997 ) 12.96 (11,902 ) 23.98 (7,701 ) 24.35 Balance as of June 30, 2019 6,763,850 2,427,813 13.93 1,416,827 531,645 20.82 523,517 26.19 |
Summary of Outstanding and Exercisable Stock Option Awards | The following table summarizes the outstanding and exercisable stock option awards as of June 30, 2019: Options Outstanding Options Exercisable Range of Exercise Prices: Shares Weighted- Average Remaining Contractual Life ( in years Weighted- Average Exercise Price Shares Weighted- Average Exercise Price $8.49 16,397 1.1 $ 8.49 16,397 $ 8.49 $10.87 1,477,721 5.9 10.87 964,173 10.87 $11.00 to $16.53 320,001 6.6 15.95 203,000 16.10 $17.68 to $18.70 230,460 6.9 18.70 148,331 18.70 $18.77 to $29.26 383,234 9.0 21.43 84,926 20.00 $8.49 to $29.26 2,427,813 6.5 13.93 1,416,827 12.96 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) (in thousands) Operating lease cost $ 8,184 $ 15,937 Finance lease cost Amortization of assets under finance leases $ 1,707 $ 3,221 Interest on finance leases 388 796 Total finance lease cost $ 2,095 $ 4,017 |
Schedule of Future Minimum Lease Payments under Noncancelable Leases | Future minimum lease payments under noncancelable leases as of June 30, 2019 were as follows: Operating Finance Leases Leases (in thousands) Year Ending December 31, 2019 $ 13,085 $ 4,261 2020 26,228 6,418 2021 22,703 6,195 2022 21,659 5,426 2023 21,077 581 Thereafter 79,107 3 Total future minimum lease payments 183,859 22,884 Less: interest (47,224 ) (2,125 ) Total lease liabilities $ 136,635 $ 20,759 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous accounting standard, future minimum lease payments under noncancelable leases as of December 31, 2018 were as follows: Operating Capital Leases Leases (in thousands) 2019 $ 28,173 $ 9,639 2020 26,871 5,098 2021 22,942 4,839 2022 22,065 4,102 2023 21,583 305 Thereafter 61,049 - Total future minimum lease payments $ 182,683 23,983 Less: interest (2,617 ) Total lease liabilities $ 21,366 |
Schedule of Lease Liabilities | Total lease liabilities as of June 30, 2019 were as follows: Operating Finance Leases Leases (in thousands) Current operating lease liabilities $ 17,362 $ — Current maturities of long-term debt — 7,267 Noncurrent operating lease liabilities 119,273 — Long-term debt, net of debt issuance costs and current maturities — 13,492 Total lease liabilities $ 136,635 $ 20,759 |
Other Information Related to Leases | Other information related to leases was as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) (in thousands) Supplemental Cash Flow Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,849 $ 15,391 Operating cash flows from finance leases 388 796 Financing cash flows from finance leases 2,542 5,471 Right of use assets obtained in exchange for new lease obligations: Operating leases 322 12,205 Finance leases 219 4,922 June 30, 2019 Weighted-Average Remaining Lease Term (In Years): Operating leases 7.7 Finance leases 3.4 Weighted-Average Discount Rate: Operating leases 7.4 % Finance leases 6.6 % |
Concentration of Customers (Tab
Concentration of Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Risks And Uncertainties [Abstract] | |
Schedule of Revenues from Customers | Revenues from certain customers in excess of 10 percent of our total consolidated revenues are as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Customer Revenues % of Total Revenues % of Total Revenues % of Total Revenues % of Total Vestas $ 142,101 43.0 % $ 67,300 29.2 % $ 270,715 42.9 % $ 152,569 31.5 % GE 92,018 27.8 % 75,007 32.5 % 176,547 28.0 % 162,835 33.6 % Nordex 53,662 16.2 % 47,359 20.5 % 108,530 17.2 % 95,560 19.7 % |
Schedule of Trade Accounts Receivable from Certain Customers | Trade accounts receivable from certain customers in excess of 10 percent of our total consolidated trade accounts receivable are as follows: June 30, December 31, 2019 2018 Customer % of Total % of Total Vestas 47.0 % 46.7 % Nordex 21.6 % 25.7 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables set forth certain information regarding each of our segments: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Revenues by segment: U.S. $ 39,858 $ 44,695 $ 81,486 $ 90,819 Asia 84,699 77,931 153,417 155,601 Mexico 95,362 56,353 180,027 114,317 EMEAI 110,852 51,631 215,621 123,854 Total revenues $ 330,771 $ 230,610 $ 630,551 $ 484,591 Revenues by geographic location (1): U.S. $ 39,858 $ 44,695 $ 81,486 $ 90,819 China 84,699 77,931 153,417 155,601 Mexico 95,362 56,353 180,027 114,317 Turkey and India 110,852 51,631 215,621 123,854 Total revenues $ 330,771 $ 230,610 $ 630,551 $ 484,591 Income (loss) from operations: U.S. (2) $ (22,222 ) $ (13,293 ) $ (36,725 ) $ (22,343 ) Asia 131 9,386 (8,669 ) 15,803 Mexico 4,120 227 3,696 4,485 EMEAI 22,468 7,742 34,539 23,212 Total income (loss) from operations $ 4,497 $ 4,062 $ (7,159 ) $ 21,157 June 30, December 31, 2019 2018 (in thousands) Property, plant and equipment, net: U.S. $ 33,453 $ 34,825 Asia (China) 39,981 31,924 Mexico 80,041 65,981 EMEAI (Turkey and India) 27,941 26,693 Total property, plant and equipment, net $ 181,416 $ 159,423 (1) Revenues are attributable to countries based on the location where the product is manufactured or the services are performed. (2) The losses from operations in our U.S. segment includes corporate general and administrative costs of $9.2 million and $11.0 million for the three months ended June 30, 2019 and 2018, respectively and $17.2 million and $22.2 million for the six months ended June 30, 2019 and 2018, respectively. |
Summary of Operations and Sig_4
Summary of Operations and Significant Accounting Policies - Basis of Presentation - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019SegmentFacility | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Number of operating segments | Segment | 4 |
Mexico [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Number of manufacturing facilities | 3 |
EMEAI [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Number of manufacturing facilities | 2 |
Summary of Operations and Sig_5
Summary of Operations and Significant Accounting Policies - Revenue Recognition - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue recognition, description of payment terms | The contract assets are transferred to accounts receivable when the rights become unconditional, which generally occurs when customers are invoiced upon the determination that a product conforms to the contract specifications and invoices are due based on each customer’s negotiated payment terms, which range from 15 to 90 days. |
Summary of Operations and Sig_6
Summary of Operations and Significant Accounting Policies - Warranty Expense - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Transportation [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Limited warranty period | 2 years |
Minimum [Member] | Mold and Wind Blade Products [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Limited warranty period | 2 years |
Maximum [Member] | Mold and Wind Blade Products [Member] | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |
Limited warranty period | 5 years |
Summary of Operations and Sig_7
Summary of Operations and Significant Accounting Policies - Schedule of Warranty Accrual (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Product Warranties Disclosures [Abstract] | |
Warranty accrual at beginning of year | $ 36,765 |
Accrual during the period | 10,273 |
Cost of warranty services provided during the period | (2,445) |
Reversal of reserves upon warranty expiration | (1,759) |
Warranty accrual at end of period | $ 42,834 |
Summary of Operations and Sig_8
Summary of Operations and Significant Accounting Policies - Leases - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Lease, practical expedients, package | true |
Summary of Operations and Sig_9
Summary of Operations and Significant Accounting Policies - Calculation Of Weighted-Average Number Of Common Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding | 35,033 | 34,164 | 34,970 | 34,107 |
Effect of dilutive awards | 1,336 | 1,659 | ||
Diluted weighted-average shares outstanding | 36,369 | 34,164 | 34,970 | 35,766 |
Summary of Operations and Si_10
Summary of Operations and Significant Accounting Policies - Net Income (Loss) Per Common Share Calculation - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Compensation Awards [Member] | ||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||
Anti-dilutive shares excluded from computation of diluted net income (loss) per common share | 19,000 | 1,851,000 | 1,455,000 | 97,000 |
Summary of Operations and Si_11
Summary of Operations and Significant Accounting Policies - Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Unrealized gain (loss), net of tax | $ (1,071) | $ 192 | $ (2,881) | $ 192 | ||
Interest Rate Swap Arrangement [Member] | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative notional amount | $ 75,000 | |||||
Derivative maturity month and year | 2023-04 | |||||
Settlement value of swap | $ 2,900 | 2,900 | ||||
Unrealized gain (loss), net of tax | $ (2,300) | |||||
Settlement value of swap | $ 800 | |||||
Interest Rate Swap Arrangement [Member] | LIBOR [Member] | ||||||
Operations And Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative hedges amount future variable rate interest expense | $ 75,000 |
Summary of Operations and Si_12
Summary of Operations and Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 58,664 | $ 85,346 | $ 113,995 | $ 148,113 |
Restricted cash | 2,122 | 3,555 | 4,431 | 3,849 |
Restricted cash included within other noncurrent assets | 475 | 475 | 475 | 475 |
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ 61,261 | $ 89,376 | $ 118,901 | $ 152,437 |
Summary of Operations and Si_13
Summary of Operations and Significant Accounting Policies - Other Current Assets - Additional Information (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Refundable value-added tax | $ 25,700 | $ 11,200 |
Deposits | $ 5,100 | $ 5,600 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers - Summary of Disaggregation of Net Sales Revenue by Product for Each of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | $ 330,771 | $ 230,610 | $ 630,551 | $ 484,591 |
U.S. Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 39,858 | 44,695 | 81,486 | 90,819 |
Asia Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 84,699 | 77,931 | 153,417 | 155,601 |
Mexico Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 95,362 | 56,353 | 180,027 | 114,317 |
EMEAI Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 110,852 | 51,631 | 215,621 | 123,854 |
Wind Blades [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 301,764 | 206,353 | 578,714 | 440,533 |
Wind Blades [Member] | U.S. Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 26,580 | 33,696 | 58,471 | 72,641 |
Wind Blades [Member] | Asia Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 78,413 | 67,180 | 140,541 | 135,351 |
Wind Blades [Member] | Mexico Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 87,792 | 55,595 | 166,830 | 111,638 |
Wind Blades [Member] | EMEAI Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 108,979 | 49,882 | 212,872 | 120,903 |
Precision Molding and Assembly Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 12,919 | 12,302 | 24,127 | 23,108 |
Precision Molding and Assembly Systems [Member] | U.S. Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 1,222 | 2,359 | 1,366 | 4,222 |
Precision Molding and Assembly Systems [Member] | Asia Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 5,726 | 9,729 | 11,941 | 17,908 |
Precision Molding and Assembly Systems [Member] | Mexico Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 5,971 | 214 | 10,820 | 978 |
Transportation [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 6,440 | 7,459 | 12,656 | 11,512 |
Transportation [Member] | U.S. Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 6,440 | 7,459 | 12,656 | 11,512 |
Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 9,648 | 4,496 | 15,054 | 9,438 |
Other [Member] | U.S. Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 5,616 | 1,181 | 8,993 | 2,444 |
Other [Member] | Asia Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 560 | 1,022 | 935 | 2,342 |
Other [Member] | Mexico Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | 1,599 | 544 | 2,377 | 1,701 |
Other [Member] | EMEAI Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales revenue | $ 1,873 | $ 1,749 | $ 2,749 | $ 2,951 |
Revenue From Contracts with C_4
Revenue From Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contracts with Customers | |||||
Increase in contracts assets | $ 40,607 | ||||
Decrease in contracts liabilities | 4,547 | ||||
Contract liability revenue recognized | $ 0 | 7,100 | |||
Transaction price allocated to remaining performance obligations to be satisfied in future periods | 4,900,000 | $ 4,900,000 | |||
Estimate to recognize remaining performance obligations as revenue, percent in remainder of 2019 | 16.00% | ||||
Estimate to recognize remaining performance obligations as revenue, percent in 2020 | 31.00% | ||||
Estimate to recognize remaining performance obligations as revenue, percent in 2021 | 25.00% | ||||
Estimate to recognize remaining performance obligations as revenue, percent in 2022 | 16.00% | ||||
Estimate to recognize remaining performance obligations as revenue, percent in 2023 | 12.00% | ||||
Net revenue recognized from performance obligations satisfied in previous periods,increase (decrease) amount | 2,200 | $ 900 | $ (12,500) | $ (4,000) | |
Other Noncurrent Assets [Member] | |||||
Revenue from Contracts with Customers | |||||
Capitalized contract cost | 7,100 | 7,100 | $ 5,600 | ||
Capitalized contract cost, accumulated amortization | $ 2,400 | $ 2,400 | $ 2,100 | ||
Minimum [Member] | |||||
Revenue from Contracts with Customers | |||||
Production hours of single blade | 5 days | ||||
Production time of mold | 3 months | ||||
Maximum [Member] | |||||
Revenue from Contracts with Customers | |||||
Production hours of single blade | 7 days | ||||
Production time of mold | 6 months | ||||
Long-term Contract with Customer [Member] | Net Sales, Directly to Consumer [Member] | |||||
Revenue from Contracts with Customers | |||||
Contracts with customer, length | 5 years |
Revenue From Contracts with C_5
Revenue From Contracts with Customers - Summary of Contract Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Gross contract assets | $ 171,315 | $ 127,568 |
Less: reclassification from contract liabilities | (14,000) | (10,860) |
Contract assets | 157,315 | $ 116,708 |
Gross contract assets, Change | 43,747 | |
Less: reclassification from contract liabilities, Change | (3,140) | |
Contract assets, Change | $ 40,607 |
Revenue From Contracts with C_6
Revenue From Contracts with Customers - Summary of Contract Liabilities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Gross contract liabilities | $ 16,596 | $ 18,003 |
Less: reclassification to contract assets | (14,000) | (10,860) |
Contract liabilities | 2,596 | $ 7,143 |
Gross contract liabilities, Change | (1,407) | |
Less: reclassification to contract assets, Change | (3,140) | |
Contract liabilities, Change | $ (4,547) |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2019Claim | Mar. 02, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||||||
Number of customers filed for insolvency | Claim | 1 | ||||||
Cash in short-term deposits in interest bearing accounts | $ 2,122,000 | $ 2,122,000 | $ 3,555,000 | $ 4,431,000 | $ 3,849,000 | ||
Cash in long term deposits in interest bearing accounts | 475,000 | 475,000 | 475,000 | $ 475,000 | $ 475,000 | ||
Maximum [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash deposit insured amount | 250,000 | 250,000 | 250,000 | ||||
Mexico [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Percentage of workforce loss due to strike | 50.00% | ||||||
Reduction in expected consideration to be received from customer contracts | 6,200,000 | 10,000,000 | |||||
Cash in deposit accounts | 2,700,000 | 2,700,000 | |||||
China [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Estimated liquidation damages due to startup delays | 4,100,000 | ||||||
Cash in deposit accounts | 10,000,000 | 10,000,000 | |||||
Cash in short-term deposits in interest bearing accounts | 2,100,000 | 2,100,000 | |||||
U.S. [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash in deposit accounts | 40,200,000 | 40,200,000 | $ 53,700,000 | ||||
Turkey [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash in deposit accounts | 4,800,000 | 4,800,000 | |||||
India [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash in deposit accounts | 300,000 | 300,000 | |||||
Denmark [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash in deposit accounts | 700,000 | 700,000 | |||||
Iowa [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Cash in long term deposits in interest bearing accounts | 500,000 | 500,000 | |||||
Senvion GmbH [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Reevaluation of contract revenue | 6,700,000 | ||||||
Accounts receivable, due | $ 10,700,000 | 10,700,000 | |||||
Cost of Goods Sold [Member] | Senvion GmbH [Member] | |||||||
Concentration Risk [Line Items] | |||||||
Accelerated depreciation expense | $ 1,900,000 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 154,191 | $ 176,815 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 149,740 | 172,667 |
Other Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 4,451 | $ 4,148 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net - Schedule of Property Plant and Equipment Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 268,567 | $ 237,183 |
Accumulated depreciation | (87,151) | (77,760) |
Property, plant and equipment, net | 181,416 | 159,423 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 129,432 | 119,737 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 14,927 | 15,080 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 41,443 | 38,747 |
Office Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27,501 | 26,363 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21,748 | 19,579 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 314 | 287 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 33,202 | $ 17,390 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | ||||
Total depreciation expense | $ 6.1 | $ 6 | $ 16.6 | $ 12.8 |
Finance leases cost | 45.1 | 45.1 | ||
Accumulated amortization of assets under finance leases | $ 14.6 | $ 14.6 |
Long-Term Debt, Net of Debt I_3
Long-Term Debt, Net of Debt Issuance Costs and Current Maturities - Schedule of Long-Term Debt, Net of Debt Issuance Costs and Current Maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total long-term debt | ||
Total long-term debt | $ 149,712 | $ 138,501 |
Less: Debt issuance costs | (775) | (878) |
Total debt, net of debt issuance costs | 148,937 | 137,623 |
Less: Current maturities of long-term debt | (33,780) | (27,058) |
Long-term debt, net of debt issuance costs and current maturities | 115,157 | 110,565 |
Senior Revolving Loan [Member] | U.S. [Member] | ||
Total long-term debt | ||
Total long-term debt | 96,414 | 90,414 |
Accounts Receivable Financing [Member] | EMEAI [Member] | ||
Total long-term debt | ||
Total long-term debt | 19,586 | 14,524 |
Equipment Financing [Member] | EMEAI [Member] | ||
Total long-term debt | ||
Total long-term debt | 10,044 | 12,197 |
Working Capital Loans [Member] | Asia [Member] | ||
Total long-term debt | ||
Total long-term debt | 2,909 | |
Equipment Finance Lease [Member] | U.S. [Member] | ||
Total long-term debt | ||
Total long-term debt | 316 | 111 |
Equipment Finance Lease [Member] | EMEAI [Member] | ||
Total long-term debt | ||
Total long-term debt | 6,957 | 6,738 |
Equipment Finance Lease [Member] | Mexico [Member] | ||
Total long-term debt | ||
Total long-term debt | $ 13,486 | $ 14,517 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)shares | |
Timed-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based compensation plans, shares issued | 196,418 |
Performance-Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based compensation plans, shares issued | 116,898 |
Performance-Based Restricted Stock Units [Member] | Certain Stock Price Hurdles [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based compensation plans, shares issued | 165,071 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based compensation plans, shares issued | 196,418 |
Unamortized amount of share-based compensation expense | $ | $ 6.5 |
Unrecognized cost expects to recognize, weighted-average period | 2 years 1 month 6 days |
Fair value of awards vested during period | $ | $ 1.9 |
Shares repurchased for awards | 18,917 |
Shares repurchased for tax withholding requirements, value | $ | $ 0.6 |
Performance-based Restricted Stock Units (PSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Share-based compensation plans, shares issued | 281,969 |
Unamortized amount of share-based compensation expense | $ | $ 6.2 |
Unrecognized cost expects to recognize, weighted-average period | 2 years 6 months |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized cost expects to recognize, weighted-average period | 1 year 8 months 12 days |
Total unrecognized cost related to non-vested stock option awards | $ | $ 2 |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Schedule of Share Based Compensation Expense Recognized in Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1,937 | $ 2,611 | $ 2,922 | $ 4,999 |
Cost of Goods Sold [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | 171 | 543 | 348 | 955 |
General and Administrative Costs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1,766 | $ 2,068 | $ 2,574 | $ 4,044 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1,937 | $ 2,611 | $ 2,922 | $ 4,999 |
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | 1,009 | 1,165 | 1,931 | 2,483 |
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | 294 | 1,041 | 730 | 2,031 |
Performance-based Restricted Stock Units (PSUs) [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 634 | $ 405 | $ 261 | $ 485 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Activity for Incentive Plans (Detail) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock Options, Shares Available for Grant, Beginning balance | 5,980,605 |
Stock Options, Shares Available for Grant, Increase in shares authorized | 1,387,123 |
Stock Options, Shares Available for Grant, Granted | (653,478) |
Stock Options, Shares Available for Grant, Exercised/vested | 0 |
Stock Options, Shares Available for Grant, Forfeited/cancelled | 49,600 |
Stock Options, Shares Available for Grant, Ending balance | 6,763,850 |
Stock Options, Shares, Beginning balance | 2,600,694 |
Stock Options, Shares, Increase in shares authorized | 0 |
Stock Options, Shares, Granted | 175,091 |
Stock Options, Shares, Exercised/vested | (317,975) |
Stock Options, Shares, Forfeited/cancelled | (29,997) |
Stock Options, Shares, Ending balance | 2,427,813 |
Stock Options, Weighted-Average Exercise Price, Beginning balance | $ / shares | $ 13.41 |
Stock Options, Weighted-Average Exercise Price, Increase in shares authorized | $ / shares | 0 |
Stock Options, Weighted-Average Exercise Price, Granted | $ / shares | 23.08 |
Stock Options, Weighted-Average Exercise Price, Exercised/vested | $ / shares | 14.83 |
Stock Options, Weighted-Average Exercise Price, Forfeited/cancelled | $ / shares | 12.96 |
Stock Options, Weighted-Average Exercise Price, Ending balance | $ / shares | $ 13.93 |
Stock Options, Options Exercisable, Beginning balance | 1,415,948 |
Stock Options, Options Exercisable, Ending balance | 1,416,827 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units, Beginning balance | 425,876 |
Units, Increase in shares authorized | 0 |
Units, Granted | 196,418 |
Units, Exercised/vested | (78,747) |
Units, Forfeited/cancelled | (11,902) |
Units, Ending balance | 531,645 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 18.75 |
Weighted-Average Grant Date Fair Value, Increase in shares authorized | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 26.99 |
Weighted-Average Grant Date Fair Value, Exercised/vested | $ / shares | 24.51 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 23.98 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 20.82 |
Performance-based Restricted Stock Units (PSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Units, Beginning balance | 249,249 |
Units, Increase in shares authorized | 0 |
Units, Granted | 281,969 |
Units, Exercised/vested | 0 |
Units, Forfeited/cancelled | (7,701) |
Units, Ending balance | 523,517 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 22.67 |
Weighted-Average Grant Date Fair Value, Increase in shares authorized | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 29.25 |
Weighted-Average Grant Date Fair Value, Exercised/vested | $ / shares | 0 |
Weighted-Average Grant Date Fair Value, Forfeited/cancelled | $ / shares | 24.35 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 26.19 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Summary of Outstanding and Exercisable Stock Option Awards (Detail) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 8.49 |
Options Outstanding, Shares | shares | 16,397 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 1 year 1 month 6 days |
Options Outstanding, Weighted-Average Exercise Price | $ 8.49 |
Options Exercisable, Shares | shares | 16,397 |
Options Exercisable, Weighted-Average Exercise Price | $ 8.49 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | $ 10.87 |
Options Outstanding, Shares | shares | 1,477,721 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 5 years 10 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 10.87 |
Options Exercisable, Shares | shares | 964,173 |
Options Exercisable, Weighted-Average Exercise Price | $ 10.87 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 11 |
Range of Exercise Prices, Maximum | $ 16.53 |
Options Outstanding, Shares | shares | 320,001 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 7 months 6 days |
Options Outstanding, Weighted-Average Exercise Price | $ 15.95 |
Options Exercisable, Shares | shares | 203,000 |
Options Exercisable, Weighted-Average Exercise Price | $ 16.10 |
Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 17.68 |
Range of Exercise Prices, Maximum | $ 18.70 |
Options Outstanding, Shares | shares | 230,460 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 10 months 24 days |
Options Outstanding, Weighted-Average Exercise Price | $ 18.70 |
Options Exercisable, Shares | shares | 148,331 |
Options Exercisable, Weighted-Average Exercise Price | $ 18.70 |
Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 18.77 |
Range of Exercise Prices, Maximum | $ 29.26 |
Options Outstanding, Shares | shares | 383,234 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 9 years |
Options Outstanding, Weighted-Average Exercise Price | $ 21.43 |
Options Exercisable, Shares | shares | 84,926 |
Options Exercisable, Weighted-Average Exercise Price | $ 20 |
Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Minimum | 8.49 |
Range of Exercise Prices, Maximum | $ 29.26 |
Options Outstanding, Shares | shares | 2,427,813 |
Options Outstanding, Weighted-Average Remaining Contractual Life (in years) | 6 years 6 months |
Options Outstanding, Weighted-Average Exercise Price | $ 13.93 |
Options Exercisable, Shares | shares | 1,416,827 |
Options Exercisable, Weighted-Average Exercise Price | $ 12.96 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, option to extend | Include options to extend the leases up to five years | |
Lessee, operating lease, existence of option to extend [true false] | true | |
Lessee, finance lease, option to extend | Include options to extend the leases up to five years | |
Lessee, finance lease, existence of option to extend [true false] | true | |
Capital leases cost | $ 41.3 | |
Accumulated amortization of assets under capital leases | $ 11.7 | |
Lessee, lease not yet commenced, description | As of June 30, 2019, we have an additional lease related to our new manufacturing facility in Chennai, India of approximately $60 million which has not yet commenced, but which we expect will commence in the first half of 2020 with an initial term of ten years. | |
Lessee, lease not yet commenced, lease liability | $ 60 | |
Lessee, lease not yet commenced initial term of contract | 10 years | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating and Finance leases, remaining lease terms | 1 year | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating and Finance leases, remaining lease terms | 15 years | |
Lessee, lease options to extend lease term | 5 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 8,184 | $ 15,937 |
Finance lease cost | ||
Amortization of assets under finance leases | 1,707 | 3,221 |
Interest on finance leases | 388 | 796 |
Total finance lease cost | $ 2,095 | $ 4,017 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Noncancelable Leases (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases Abstract | ||
2019 | $ 13,085 | |
2020 | 26,228 | |
2021 | 22,703 | |
2022 | 21,659 | |
2023 | 21,077 | |
Thereafter | 79,107 | |
Total future minimum lease payments | 183,859 | |
Less: interest | (47,224) | |
Total lease liabilities | 136,635 | |
Finance Leases Abstract | ||
2019 | 4,261 | |
2020 | 6,418 | |
2021 | 6,195 | |
2022 | 5,426 | |
2023 | 581 | |
Thereafter | 3 | |
Total future minimum lease payments | 22,884 | |
Less: interest | (2,125) | |
Total lease liabilities | $ 20,759 | |
Operating Leases Abstract | ||
2019 | $ 28,173 | |
2020 | 26,871 | |
2021 | 22,942 | |
2022 | 22,065 | |
2023 | 21,583 | |
Thereafter | 61,049 | |
Total future minimum lease payments | 182,683 | |
Capital Leases Abstract | ||
2019 | 9,639 | |
2020 | 5,098 | |
2021 | 4,839 | |
2022 | 4,102 | |
2023 | 305 | |
Total future minimum lease payments | 23,983 | |
Less: interest | (2,617) | |
Total lease liabilities | $ 21,366 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Current operating lease liabilities | $ 17,362 |
Noncurrent operating lease liabilities | 119,273 |
Total lease liabilities | 136,635 |
Current maturities of long-term debt | 7,267 |
Long-term debt, net of debt issuance costs and current maturities | 13,492 |
Total lease liabilities | $ 20,759 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 7,849 | $ 15,391 |
Operating cash flows from finance leases | 388 | 796 |
Financing cash flows from finance leases | 2,542 | 5,471 |
Right of use assets obtained in exchange for new lease obligations: | ||
Operating leases | 322 | 12,205 |
Finance leases | $ 219 | $ 4,922 |
Weighted-Average Remaining Lease Term (In Years): | ||
Operating leases | 7 years 8 months 12 days | 7 years 8 months 12 days |
Finance leases | 3 years 4 months 24 days | 3 years 4 months 24 days |
Weighted-Average Discount Rate: | ||
Operating leases | 7.40% | 7.40% |
Finance leases | 6.60% | 6.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Ownership Change [Member] | |
Income Tax Disclosure [Line Items] | |
Description of Ownership Change | An ownership change under Sections 382 and 383 of the Internal Revenue Code was deemed to occur in June 2018. In general, a Section 382 and 383 ownership change occurs if there is a cumulative change in our ownership by “5% shareholders” (as defined in the Internal Revenue Code of 1986, as amended) that exceeds 50 percentage points over a rolling three-year period. |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | May 31, 2019Facility | |
Restructuring Charges [Abstract] | |||
Number of manufacturing facilities shut down | Facility | 2 | ||
Restructuring charges | $ 3,874 | $ 3,874 | |
Severance benefits to terminated employees | 3,300 | ||
Other restructuring charges related to exit costs | 600 | ||
Expected additional restructuring charges | $ 500 | $ 500 |
Concentration of Customers - Ad
Concentration of Customers - Additional Information (Detail) - Customer Concentration Risk [Member] - Minimum [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Sales Revenues [Member] | |||||
Concentration Risk [Line Items] | |||||
Customer risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Customer risk percentage | 10.00% | 10.00% |
Concentration of Customers - Sc
Concentration of Customers - Schedule of Revenues from Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Concentration Risk [Line Items] | ||||
Revenues | $ 330,771 | $ 230,610 | $ 630,551 | $ 484,591 |
Sales Revenues [Member] | Vestas [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 142,101 | $ 67,300 | $ 270,715 | $ 152,569 |
Percentage of Total | 43.00% | 29.20% | 42.90% | 31.50% |
Sales Revenues [Member] | GE [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 92,018 | $ 75,007 | $ 176,547 | $ 162,835 |
Percentage of Total | 27.80% | 32.50% | 28.00% | 33.60% |
Sales Revenues [Member] | Nordex [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 53,662 | $ 47,359 | $ 108,530 | $ 95,560 |
Percentage of Total | 16.20% | 20.50% | 17.20% | 19.70% |
Concentration of Customers - _2
Concentration of Customers - Schedule of Trade Accounts Receivable from Certain Customers (Detail) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Vestas [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 47.00% | 46.70% |
Nordex [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of Total | 21.60% | 25.70% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 330,771 | $ 230,610 | $ 630,551 | $ 484,591 | |
Total income (loss) from operations | 4,497 | 4,062 | (7,159) | 21,157 | |
Total property, plant and equipment, net | 181,416 | 181,416 | $ 159,423 | ||
U.S. Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 39,858 | 44,695 | 81,486 | 90,819 | |
Total income (loss) from operations | (22,222) | (13,293) | (36,725) | (22,343) | |
Total property, plant and equipment, net | 33,453 | 33,453 | 34,825 | ||
Asia Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 84,699 | 77,931 | 153,417 | 155,601 | |
Total income (loss) from operations | 131 | 9,386 | (8,669) | 15,803 | |
Total property, plant and equipment, net | 39,981 | 39,981 | 31,924 | ||
Mexico Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 95,362 | 56,353 | 180,027 | 114,317 | |
Total income (loss) from operations | 4,120 | 227 | 3,696 | 4,485 | |
Total property, plant and equipment, net | 80,041 | 80,041 | 65,981 | ||
EMEAI Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 110,852 | 51,631 | 215,621 | 123,854 | |
Total income (loss) from operations | 22,468 | 7,742 | 34,539 | 23,212 | |
Total property, plant and equipment, net | 27,941 | 27,941 | $ 26,693 | ||
U.S. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 39,858 | 44,695 | 81,486 | 90,819 | |
China [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 84,699 | 77,931 | 153,417 | 155,601 | |
Mexico [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 95,362 | 56,353 | 180,027 | 114,317 | |
Turkey and India [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 110,852 | $ 51,631 | $ 215,621 | $ 123,854 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Segment Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
General and administrative costs | $ 9,208 | $ 10,989 | $ 17,193 | $ 22,152 |
U.S. Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative costs | $ 9,200 | $ 11,000 | $ 17,200 | $ 22,200 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event [Member] - Senvion GmbH [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2019USD ($) | |
Subsequent Event [Line Items] | |
Percentage of gross payment on invoice and invoiceable but not yet collected | 90.00% |
Cash received from customer | $ 6.2 |
Gross amounts invoiced and invoiceable but not yet collected | $ 16.2 |