Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 19, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001474735 | ||
Entity Registrant Name | GENERAC HOLDINGS INC. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-34627 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-5654756 | ||
Entity Address, Address Line One | S45 W29290 Hwy 59 | ||
Entity Address, City or Town | Waukesha | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53189 | ||
City Area Code | 262 | ||
Local Phone Number | 544-4811 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | GNRC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,191,188,195 | ||
Entity Common Stock, Shares Outstanding | 62,567,525 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 322,883 | $ 224,482 |
Accounts receivable, less allowance for doubtful accounts of $6,968 and $4,873 at December 31, 2019 and 2018, respectively | 319,538 | 326,133 |
Inventories | 522,024 | 544,750 |
Prepaid expenses and other assets | 31,384 | 25,404 |
Total current assets | 1,195,829 | 1,120,769 |
Property and equipment, net | 316,976 | 278,929 |
Customer lists, net | 55,552 | 61,194 |
Patents and technology, net | 85,546 | 29,970 |
Other intangible assets, net | 8,259 | 3,043 |
Tradenames, net | 148,377 | 152,283 |
Goodwill | 805,284 | 764,655 |
Deferred income taxes | 2,933 | 163 |
Operating lease and other assets | 46,913 | 15,308 |
Total assets | 2,665,669 | 2,426,314 |
Current liabilities: | ||
Short-term borrowings | 58,714 | 45,583 |
Accounts payable | 261,977 | 328,091 |
Accrued wages and employee benefits | 41,361 | 40,819 |
Other accrued liabilities | 132,629 | 144,236 |
Current portion of long-term borrowings and finance lease obligations | 2,383 | 1,977 |
Total current liabilities | 497,064 | 560,706 |
Long-term borrowings and finance lease obligations | 837,767 | 876,396 |
Deferred Income Tax Liabilities, Net, Total | 96,328 | 71,300 |
Operating lease and other long-term liabilities | 140,432 | 95,647 |
Total liabilities | 1,571,591 | 1,604,049 |
Redeemable noncontrolling interest | 61,227 | 61,004 |
Stockholders’ equity: | ||
Common stock, par value $0.01, 500,000,000 shares authorized, 71,667,726 and 71,186,418 shares issued at December 31, 2019 and 2018, respectively | 717 | 712 |
Additional paid-in capital | 498,866 | 476,116 |
Treasury stock, at cost, 9,103,013 and 9,047,060 shares at December 31, 2019 and 2018, respectively | (324,551) | (321,473) |
Excess purchase price over predecessor basis | (202,116) | (202,116) |
Retained earnings | 1,084,383 | 831,123 |
Accumulated other comprehensive loss | (24,917) | (23,813) |
Stockholders' equity attributable to Generac Holdings, Inc. | 1,032,382 | 760,549 |
Noncontrolling interests | 469 | 712 |
Total stockholders’ equity | 1,032,851 | 761,261 |
Total liabilities and stockholders’ equity | $ 2,665,669 | $ 2,426,314 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 6,968 | $ 4,873 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 71,667,726 | 71,186,418 |
Treasury stock, shares (in shares) | 9,103,013 | 9,047,060 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net sales | $ 2,204,336 | $ 2,023,464 | $ 1,679,373 | |
Costs of goods sold | 1,406,584 | 1,298,424 | 1,094,587 | |
Gross profit | 797,752 | 725,040 | 584,786 | |
Operating expenses: | ||||
Selling and service | 217,683 | 191,887 | 174,841 | |
Research and development | 68,394 | 50,019 | 42,869 | |
General and administrative | 110,868 | 103,841 | 87,581 | |
Amortization of intangibles | 28,644 | 22,112 | 28,861 | |
Total operating expenses | 425,589 | 367,859 | 334,152 | |
Income from operations | 372,163 | 357,181 | 250,634 | |
Other (expense) income: | ||||
Interest expense | (41,544) | (40,956) | (42,667) | |
Investment income | 2,767 | 1,893 | 298 | |
Loss on extinguishment of debt | [1] | (926) | (1,332) | 0 |
Loss on pension settlement | [2] | (10,920) | 0 | 0 |
Other, net | (1,933) | (5,710) | (4,566) | |
Total other expense, net | (52,556) | (46,105) | (46,935) | |
Income before provision for income taxes | 319,607 | 311,076 | 203,699 | |
Provision for income taxes | 67,299 | 69,856 | 44,142 | |
Net income | 252,308 | 241,220 | 159,557 | |
Net income attributable to noncontrolling interests | 301 | 2,963 | 1,749 | |
Net income attributable to Generac Holdings Inc. | 252,007 | 238,257 | 157,808 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 2,210 | (5,976) | 15,191 | |
Net unrealized gain (loss) on derivatives | (13,855) | 2,924 | 3,712 | |
Pension liability adjustment | 10,541 | 437 | 62 | |
Other comprehensive income (loss) | (1,104) | (2,615) | 18,965 | |
Total comprehensive income | 251,204 | 238,605 | 178,522 | |
Comprehensive income (loss) attributable to noncontrolling interests | (635) | 1,647 | 5,549 | |
Comprehensive income attributable to Generac Holdings Inc. | $ 251,839 | $ 236,958 | $ 172,973 | |
Net income attributable to common shareholders per common share - basic: (in dollars per share) | $ 4.09 | $ 3.57 | $ 2.56 | |
Weighted average common shares outstanding - basic: (in shares) | 61,926,986 | 61,662,031 | 62,040,704 | |
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 4.03 | $ 3.54 | $ 2.53 | |
Weighted average common shares outstanding - diluted: (in shares) | 62,865,446 | 62,233,225 | 62,642,872 | |
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | |||
[2] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Excess Purchase Price over Predecessor Basis [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 70,261,481 | (7,564,874) | |||||||
Balance at Dec. 31, 2016 | $ 702 | $ 449,049 | $ (262,402) | $ (202,116) | $ 452,119 | $ (40,163) | $ 397,189 | $ (10) | $ 397,179 |
Change in noncontrolling interest share | 0 | 0 | 0 | 0 | 0 | 184 | |||
Change in noncontrolling interest share | (2,124) | (2,124) | (1,940) | ||||||
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | 3,712 | 3,712 | 0 | 3,712 |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 15,191 | 15,191 | (14) | 15,177 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 558,692 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 6 | 2,686 | $ 0 | 0 | 0 | 0 | 2,692 | 0 | 2,692 |
Net share settlement of restricted stock awards (in shares) | 0 | (39,500) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (1,591) | 0 | 0 | 0 | (1,591) | 0 | (1,591) |
Stock repurchases (in shares) | 0 | (844,500) | |||||||
Stock repurchases | $ 0 | 0 | $ (30,012) | 0 | 0 | 0 | (30,012) | 0 | (30,012) |
Share-based compensation | 0 | 10,205 | 0 | 0 | 0 | 0 | 10,205 | 0 | 10,205 |
Pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 62 | 62 | 0 | 62 |
Redemption value adjustment | 0 | 0 | 0 | 0 | 909 | 0 | 909 | 0 | 909 |
Net income attributable to Generac Holdings Inc. | $ 0 | 0 | $ 0 | 0 | 157,808 | 0 | 157,808 | 157,808 | |
Net income | 119 | ||||||||
Net income | 157,927 | ||||||||
Balance (in shares) at Dec. 31, 2017 | 70,820,173 | (8,448,874) | |||||||
Balance at Dec. 31, 2017 | $ 708 | 459,816 | $ (294,005) | (202,116) | 610,836 | (21,198) | 554,041 | 279 | 554,320 |
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | 2,924 | 2,924 | 0 | 2,924 |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | (5,976) | (5,976) | (2) | (5,978) |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 366,245 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 4 | 1,737 | $ 0 | 0 | 0 | 0 | 1,741 | 0 | 1,741 |
Net share settlement of restricted stock awards (in shares) | 0 | (38,186) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (1,812) | 0 | 0 | 0 | (1,812) | 0 | (1,812) |
Stock repurchases (in shares) | 0 | (560,000) | |||||||
Stock repurchases | $ 0 | 0 | $ (25,656) | 0 | 0 | 0 | (25,656) | 0 | (25,656) |
Share-based compensation | 0 | 14,563 | 0 | 0 | 0 | 0 | 14,563 | 0 | 14,563 |
Pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 437 | 437 | 0 | 437 |
Redemption value adjustment | 0 | 0 | 0 | 0 | (17,970) | 0 | (17,970) | 0 | (17,970) |
Net income attributable to Generac Holdings Inc. | 0 | 0 | 0 | 0 | 238,257 | 0 | 238,257 | 238,257 | |
Net income | 749 | ||||||||
Net income | 239,006 | ||||||||
Cash dividends paid to noncontrolling interest of subsidiary | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | (314) | (314) |
Balance (in shares) at Dec. 31, 2018 | 71,186,418 | (9,047,060) | |||||||
Balance at Dec. 31, 2018 | $ 712 | 476,116 | $ (321,473) | (202,116) | 831,123 | (23,813) | 760,549 | 712 | 761,261 |
Net unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | 0 | (13,855) | (13,855) | 0 | (13,855) |
Foreign currency translation adjustment | $ 0 | 0 | $ 0 | 0 | 0 | 2,210 | 2,210 | (30) | 2,180 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 481,308 | 0 | |||||||
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | $ 5 | 6,056 | $ 0 | 0 | 0 | 0 | 6,061 | 0 | 6,061 |
Net share settlement of restricted stock awards (in shares) | 0 | (55,953) | |||||||
Net share settlement of restricted stock awards | $ 0 | 0 | $ (3,078) | 0 | 0 | 0 | (3,078) | 0 | (3,078) |
Stock repurchases (in shares) | 0 | ||||||||
Share-based compensation | 0 | 16,694 | $ 0 | 0 | 0 | 0 | 16,694 | 0 | 16,694 |
Pension liability adjustment | 0 | 0 | 0 | 0 | 0 | 10,541 | 10,541 | 0 | 10,541 |
Redemption value adjustment | 0 | 0 | 0 | 0 | 1,253 | 0 | 1,253 | 0 | 1,253 |
Net income attributable to Generac Holdings Inc. | 0 | 0 | 0 | 0 | 252,007 | 0 | 252,007 | 252,007 | |
Net income | 226 | ||||||||
Net income | 252,233 | ||||||||
Cash dividends paid to noncontrolling interest of subsidiary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (285) | (285) |
Change in noncontrolling interest shares | $ 0 | 0 | $ 0 | 0 | 0 | 0 | 0 | (154) | (154) |
Balance (in shares) at Dec. 31, 2019 | 71,667,726 | (9,103,013) | |||||||
Balance at Dec. 31, 2019 | $ 717 | $ 498,866 | $ (324,551) | $ (202,116) | $ 1,084,383 | $ (24,917) | $ 1,032,382 | $ 469 | $ 1,032,851 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - AOCI Attributable to Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized gain (loss) on interest rate swaps, tax | $ 4,877 | $ 1,027 | $ 2,384 |
Pension liability adjustment, tax | $ 154 | $ 21 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating activities | ||||
Net income | $ 252,308 | $ 241,220 | $ 159,557 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 32,265 | 25,296 | 23,127 | |
Amortization of intangible assets | 28,644 | 22,112 | 28,861 | |
Amortization of original issue discount and deferred financing costs | 4,712 | 4,749 | 3,516 | |
Loss on extinguishment of debt | [1] | 926 | 1,332 | 0 |
Loss on pension settlement | [2] | 10,920 | 0 | 0 |
Deferred income taxes | 18,733 | 23,600 | 19,502 | |
Share-based compensation expense | [3] | 16,694 | 14,563 | 10,205 |
Other | 1,086 | 2,474 | 410 | |
Net changes in operating assets and liabilities, net of acquisitions: | ||||
Accounts receivable | 8,231 | (43,243) | (32,857) | |
Inventories | 26,369 | (152,594) | (22,986) | |
Other assets | (358) | (6,362) | (14,783) | |
Accounts payable | (69,404) | 86,359 | 42,788 | |
Accrued wages and employee benefits | (3,724) | 12,626 | 6,105 | |
Other accrued liabilities | (16,252) | 16,972 | 37,029 | |
Excess tax benefits from equity awards | (2,263) | (1,877) | (3,152) | |
Net cash provided by operating activities | 308,887 | 247,227 | 257,322 | |
Investing activities | ||||
Proceeds from sale of property and equipment | 95 | 214 | 82 | |
Proceeds from beneficial interest in securitization transactions | 2,630 | 3,933 | 3,794 | |
Expenditures for property and equipment | (60,802) | (47,601) | (33,261) | |
Acquisition of business, net of cash acquired | (112,001) | (65,440) | 1,257 | |
Net cash used in investing activities | (170,078) | (108,894) | (28,128) | |
Financing activities | ||||
Proceeds from short-term borrowings | 73,340 | 53,965 | 101,991 | |
Proceeds from long-term borrowings | 1,660 | 51,425 | 3,069 | |
Repayments of short-term borrowings | (59,518) | (27,880) | (114,874) | |
Repayments of long-term borrowings and finance lease obligations | (53,049) | (101,827) | (117,475) | |
Stock repurchases | 0 | (25,656) | (30,012) | |
Payment of contingent acquisition consideration | (5,550) | 0 | 0 | |
Payment of debt issuance costs | (1,473) | (1,702) | (3,901) | |
Cash dividends paid to noncontrolling interest of subsidiary | (285) | (314) | 0 | |
Taxes paid related to equity awards | (6,438) | (5,659) | (5,892) | |
Proceeds from the exercise of stock options | 9,395 | 5,614 | 6,951 | |
Net cash used in financing activities | (41,918) | (52,034) | (160,143) | |
Effect of exchange rate changes on cash and cash equivalents | 1,510 | (289) | 2,149 | |
Net increase in cash and cash equivalents | 98,401 | 86,010 | 71,200 | |
Cash and cash equivalents at beginning of period | 224,482 | 138,472 | 67,272 | |
Cash and cash equivalents at end of period | 322,883 | 224,482 | 138,472 | |
Supplemental disclosure of cash flow information | ||||
Interest | 35,465 | 41,007 | 41,105 | |
Income taxes | $ 61,767 | $ 41,044 | $ 23,836 | |
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | |||
[2] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | |||
[3] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. |
Note 1 - Description of Busines
Note 1 - Description of Business | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Description of Business Founded in 1959, Over the years, the Company has executed a number of acquisitions that support its strategic plan (refer to Item 1 10 ● In January 2017, ● In June 2018, 10kW 2,750kW. ● In February 2019, 2010 ● In March 2019, 2005 ● In April 2019, 2010 |
Note 2 - Summary of Accounting
Note 2 - Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. GAAP. All intercompany amounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three Concentration of Credit Risk The Company maintains the majority of its domestic cash in one One customer accounted for approximately 9% and 11% of accounts receivable at December 31, 2019 2018, No one December 31, 2019, 2018, 2017, Accounts Receivable Receivables are recorded at their face value amount less an allowance for doubtful accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Sales are generally made on an unsecured basis, and certain balances are protected by credit insurance. Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first first Property and Equipment Property and equipment are recorded at cost and are being depreciated using the straight-line method over the estimated useful lives of the assets, which are summarized below (in years). Costs of leasehold improvements are amortized over the lesser of the term of the lease (including renewal option periods) or the estimated useful lives of the improvements. Finance lease right of use assets are included in property and equipment. Refer to Note 10, Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 Total depreciation expense was $32,265, $25,296, and $23,127 for the years ended December 31, 2019, 2018, 2017, Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over fair value of identifiable net assets acquired from business acquisitions. Goodwill is not October 31 may not not not not not not not Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames annually as of October 31, may not not The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years 2019, 2018 2017, no Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not Debt Issuance Costs Debt discounts and direct costs incurred in connection with the issuance of long-term debt are deferred and recorded as a reduction of outstanding debt and amortized to interest expense using the effective interest method over the terms of the related credit agreements. $4,712, $4,749, and $3,516 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2019, 2018 2017, five 2020 $2,598; 2021 $2,640; 2022 $2,689; 2023 $2,579; 2024 Income Taxes The Company is a C Corporation and therefore accounts for income taxes pursuant to the liability method. Accordingly, the current or deferred tax consequences of a transaction are measured by applying the provision of enacted tax laws to determine the amount of taxes payable currently or in future years. Deferred income taxes are provided for temporary differences between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not not Revenue Recognition not one not not one not At the request of certain customers, the Company will warehouse inventory billed to the customer but not not While the Company’s standard payment terms are less than one December 31, 2019 December 31, 2018, December 31, 2019, December 31, 2018 one The Company offers standard warranty coverage on substantially all products that it sells and accounts for this standard warranty coverage as an assurance warranty. As such, no 11, The Company also sells extended warranty coverage for certain products, which it accounts for as service warranties. In most cases, the extended warranty is sold as a separate contract. As such, extended warranty sales are considered a separate performance obligation, and the extended warranty transaction is separate and distinct from the product. The extended warranty transaction price is initially recorded as deferred revenue in the consolidated balance sheets and amortized on a straight-line basis to net sales in the consolidated statements of comprehensive income over the life of the contracts following the standard warranty period. For extended warranty contracts that the Company sells under a third third 11, In addition to extended warranties, the Company offers other services, including remote monitoring, installation and maintenance services in limited circumstances. Total service revenues account for less than three December 31, 2019. Refer to Note 7, Advertising and Co-Op Advertising Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Expenditures for advertising production costs are expensed when the related advertisement is first December 31, 2019, 2018, 2017, Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $68,394, $50,019, and $42,869 for the years ended December 31, 2019, 2018, 2017, Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency businesses are translated into U.S. Dollars at the rates of exchange in effect at the end of the fiscal year. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to accumulated other comprehensive loss, a component of stockholders’ equity, in the consolidated balance sheets. Gains and losses from foreign currency transactions are recognized as incurred in the consolidated statements of comprehensive income. Fair Value of Financial Instruments ASC 820 10, Fair Value Measurement , 820 10 three 1 2 3 no The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $812,953, was approximately $833,092 (Level 2 December 31, 2019, For the fair value of the assets and liabilities measured on a recurring basis, refer to the fair value table in Note 5, 2. 820 10. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging , not 7A 10 S hare -Based Compensation Share-based compensation expense, including stock options and restricted stock awards, is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. Refer to Note 17, New Accounting Pronouncements New Accounting Standards Not In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments December 15, 2019, not There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not Recently Adopted Accounting Standards On January 1, 2019, 2016 02, Leases 842 no not 10, On January 1, 2019, 2018 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2017 not On January 1, 2019, 2017 12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities not not On April 1, 2019, 2018 15, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. not |
Note 3 - Acquisitions
Note 3 - Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Acquisitions Acquisition of Pika On April 26, 2019, The Company recorded a preliminary purchase price allocation during the second 2019, fourth 2019, not December 31, 2019. Acquisition of Neurio On March 12, 2019, third 2019. The Company recorded a preliminary purchase price allocation in the second 2019, fourth 2019, December 31, 2019. Acquisition of Selmec On June 1, 2018, 2019 December 31, 2019. The Company finalized the Selmec purchase price allocation during the second 2019 June 1, 2018 June 1, 2018 Accounts receivable $ 14,302 Inventories 8,000 Prepaid expense and other assets 4,323 Property and equipment 5,572 Intangible assets 33,631 Goodwill 46,196 Deferred income taxes 3,252 Other assets 597 Total assets acquired 115,873 Accounts payable 7,216 Accrued wages and employee benefits 397 Other accrued liabilities 13,671 Deferred income taxes 10,974 Other long-term liabilities 3,643 Net assets acquired $ 79,972 The goodwill ascribed to the acquisition is not December 31, 2019. Pro Forma Information The following unaudited pro forma information of the Company gives effect to all acquisitions as though the transactions had occurred on January 1, 2017. 1, Year Ended December 31, 2019 2018 2017 Net Sales: As reported $ 2,204,336 $ 2,023,464 $ 1,679,373 Pro forma 2,206,952 2,067,737 1,755,358 Net income attributable to Generac Holdings Inc.: As reported $ 252,007 $ 238,257 $ 157,808 Pro forma 248,335 230,379 151,764 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 4.03 $ 3.54 $ 2.53 Pro forma 3.97 3.41 2.44 This unaudited pro forma information is presented for informational purposes only and is not January 1, 2017. |
Note 4 - Redeemable Noncontroll
Note 4 - Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Redeemable Noncontrolling Interest [Text Block] | 4. Redeemable Noncontrolling Interest On March 1, 2016, February 2019, five five no April 1, 2021. On February 1, 2019, five may five For both transactions, the redeemable noncontrolling interest is recorded at the greater of the initial fair value, increased or decreased for the noncontrolling interests’ share of comprehensive income (loss), or the estimated redemption value, with any adjustments to the redemption value impacting retained earnings, but not 14, Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 61,004 $ 43,929 $ 33,138 Noncontrolling interest 3,165 (1) - 1,540 (2) Net income 75 2,214 1,631 Foreign currency translation (1,764 ) (3,109 ) 8,529 Redemption value adjustment (1,253 ) 17,970 (909 ) Balance at end of period $ 61,227 $ 61,004 $ 43,929 ( 1 February 1, 2019. ( 2 |
Note 5 - Derivative Instruments
Note 5 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. Derivative Instruments and Hedging Activities Commodities The Company is exposed to price fluctuations in commodities including steel, copper and aluminum; and periodically utilizes commodity derivatives to mitigate the impact of these potential price fluctuations on its financial results. These derivatives typically have maturities of less than eighteen December 31, 2019 2018, no Because these contracts do not December 31, 2019, 2018, 2017, Foreign Currencies The Company is exposed to foreign currency exchange risk as a result of transactions denominated in currencies other than the U.S. Dollar. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with certain foreign currency purchases and sales in the normal course of business. Contracts typically have maturities of twelve December 31, 2019 2018, forty-three forty Because these contracts do not December 31, 2019, 2018, 2017 Interest Rate Swaps In 2017, twenty December 2019, December 31, 2019, 2018, 2017 Fair Value The following table presents the fair value of the Company’s derivatives: December 31, 9 December 31, 8 Commodity contracts $ 6 $ (160 ) Foreign currency contracts 31 (117 ) Interest rate swaps (10,425 ) 8,307 The fair value of the commodity and foreign currency contracts are included in prepaid expenses and other current assets, and the fair value of the interest rate swaps are included in other accrued liabilities and other long-term liabilities in the consolidated balance sheet as of December 31, 2019. December 31, 2018. December 31, 2019 2018 |
Note 6 - Accumulated Other Comp
Note 6 - Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 6. Accumulated Other Comprehensive Loss The following presents a tabular disclosure of changes in AOCL during the years ended December 31, 2019 2018, Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive income (loss) before reclassifications 2,210 1,474 (1) (13,855 ) (2) (10,171 ) Amounts reclassified from AOCL - 9,067 (3) - 9,067 Net current-period other comprehensive income (loss) 2,210 10,541 (13,855 ) (1,104 ) Ending Balance – December 31, 2019 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2018 $ (12,856 ) $ (10,978 ) $ 2,636 $ (21,198 ) Other comprehensive income (loss) before reclassifications (5,976 ) (156 ) (4) 2,924 (5) (3,208 ) Amounts reclassified from AOCL - 593 (6) - 593 Net current-period other comprehensive income (loss) (5,976 ) 437 2,924 (2,615 ) Ending Balance – December 31, 2018 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) ( 1 Represents unrecognized actuarial gains of $1,992 net of tax effect of $(518), included in the computation of net periodic pension cost for the year ended December 31, 2019. 16, ( 2 Represents unrealized losses of $(18,732), net of tax effect of $4,877 for the year ended December 31, 2019. ( 3 Details of reclassifications from AOCL during 2019 Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 ( 4 Represents unrecognized actuarial losses of $(211), net of tax benefit of $55, included in the computation of net periodic pension cost for the year ended December 31, 2018. 16, ( 5 Represents unrealized gains of $3,951, net of tax effect of $(1,027) for the year ended December 31, 2018. ( 6 Represents actuarial losses of $802, net of tax effect of $(209), amortized to net periodic pension cost for the year ended December 31, 2018. 16, |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7. Segment Reporting The Company has two two The Company's product offerings consist primarily of power generation equipment, energy technology solutions, and other power products geared for varying end customer uses. Residential products and commercial & industrial (C&I) products are each a similar class of products based on similar power output and end customer. The breakout of net sales between residential, C&I, and other products by reportable segment is as follows: Net Sales by Segment Year Ended December 31, 2019 Product Classes Domestic International Total Residential products $ 1,086,019 $ 57,704 $ 1,143,723 Commercial & industrial products 513,482 358,113 871,595 Other 143,397 45,621 189,018 Total net sales $ 1,742,898 $ 461,438 $ 2,204,336 Year Ended December 31, 2018 Product Classes Domestic International Total Residential products $ 980,707 $ 62,032 $ 1,042,739 Commercial & industrial products 461,415 358,855 820,270 Other 124,398 36,057 160,455 Total net sales $ 1,566,520 $ 456,944 $ 2,023,464 Year Ended December 31, 2017 Product Classes Domestic International Total Residential products $ 796,237 $ 74,253 $ 870,490 Commercial & industrial products 372,635 311,718 684,353 Other 102,806 21,724 124,530 Total net sales $ 1,271,678 $ 407,695 $ 1,679,373 Residential products consist primarily of automatic home standby generators ranging in output from 6kW 60kW, C&I products consist of larger output stationary generators used in C&I applications and fueled by diesel, natural gas, liquid propane and bi-fuel, with power outputs ranging from 10kW 3,250kW. Other products consist primarily of aftermarket service parts and product accessories sold to our dealers, the amortization of extended warranty deferred revenue, and remote monitoring subscription revenue. The aftermarket service parts and product accessories are generally transferred to the customer at a point in time, while the extended warranty and subscription revenue are recognized over the life of the contract. Management evaluates the performance of its segments based primarily on Adjusted EBITDA, which is reconciled to Income before provision for income taxes below. The computation of Adjusted EBITDA is based on the definition that is contained in the Company’s credit agreements. Adjusted EBITDA Year Ended December 31, 2019 2018 2017 Domestic $ 428,667 $ 388,495 $ 282,450 International 25,448 36,057 34,850 Total adjusted EBITDA $ 454,115 $ 424,552 $ 317,300 Interest expense (41,544 ) (40,956 ) (42,667 ) Depreciation and amortization (60,767 ) (47,408 ) (51,988 ) Non-cash write-down and other adjustments (1) (240 ) (3,532 ) (2,923 ) Non-cash share-based compensation expense (2) (16,694 ) (14,563 ) (10,205 ) Loss on extinguishment of debt (3) (926 ) (1,332 ) - Loss on pension settlement (4) (10,920 ) - - Transaction costs and credit facility fees (5) (2,724 ) (3,883 ) (2,145 ) Business optimization expenses (6) (1,572 ) (952 ) (2,912 ) Other 879 (850 ) (761 ) Income before provision for income taxes $ 319,607 $ 311,076 $ 203,699 ( 1 Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. ( 2 Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. ( 3 Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. ( 4 Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth 2019. ( 5 Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. ( 6 Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. In the fourth 2019, 2018. not 10 December 31, 2019, 2018, 2017. Year Ended December 31, 2019 2018 2017 Residential Products $ 7,129 $ 9,924 $ 18,888 Commercial & industrial products 5,724 2,651 12,940 Other 998 1,230 - Total Net Sales $ 13,851 $ 13,805 $ 31,828 Adjusted EBITDA $ 984 $ 190 $ 7,840 There was no The following tables summarize additional financial information by reportable segment: Assets Year Ended December 31, 2019 2018 2017 Domestic $ 2,123,251 $ 1,868,554 $ 1,612,607 International 542,418 557,760 413,358 Total $ 2,665,669 $ 2,426,314 $ 2,025,965 Depreciation and Amortization Year Ended December 31, 2019 2018 2017 Domestic $ 46,145 $ 35,586 $ 37,962 International 14,764 11,822 14,026 Total $ 60,909 $ 47,408 $ 51,988 Capital Expenditures Year Ended December 31, 2019 2018 2017 Domestic $ 36,007 $ 38,242 $ 29,258 International 24,795 9,359 4,003 Total $ 60,802 $ 47,601 $ 33,261 The Company’s sales in the United States represent approximately 75%, 74%, and 74% of total sales for the years ended December 31, 2019, 2018 2017, December 31, 2019 2018. |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 8. Balance Sheet Details Inventories consist of the following: December 31, 2019 2018 Raw material $ 328,021 $ 348,980 Work-in-process 10,387 6,971 Finished goods 183,616 188,799 Total $ 522,024 $ 544,750 As of December 31, 2019 2018, Property and equipment consists of the following: December 31, 2019 2018 Land and improvements $ 18,252 $ 15,975 Buildings and improvements 177,079 163,161 Machinery and equipment 117,114 103,726 Dies and tools 22,040 28,198 Vehicles 3,955 2,070 Office equipment and systems 99,124 82,638 Leasehold improvements 4,293 2,137 Construction in progress 36,299 26,543 Gross property and equipment 478,156 424,448 Accumulated depreciation (161,180 ) (145,519 ) Total $ 316,976 $ 278,929 Total property and equipment included finance leases of $20,158 at December 31, 2018, 10, 842, Leases, 2019. |
Note 9 - Goodwill and Intangibl
Note 9 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2019 2018 Domestic International Total Balance at December 31, 2017 $ 621,451 $ 100,072 $ 721,523 Acquisitions of businesses, net - 46,788 46,788 Foreign currency translation - (3,656 ) (3,656 ) Balance at December 31, 2018 621,451 143,204 764,655 Acquisitions of businesses, net 37,758 3,078 40,836 Foreign currency translation - (207 ) (207 ) Balance at December 31, 2019 $ 659,209 $ 146,075 $ 805,284 Refer to Note 3, The details of the gross goodwill applicable to each reportable segment at December 31, 2019 2018 Year Ended December 31, 2019 Year Ended December 31, 2018 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,162,402 $ (503,193 ) $ 659,209 $ 1,124,644 $ (503,193 ) $ 621,451 International 150,686 (4,611 ) 146,075 147,815 (4,611 ) 143,204 Total $ 1,313,088 $ (507,804 ) $ 805,284 $ 1,272,459 $ (507,804 ) $ 764,655 The following table summarizes intangible assets by major category as of December 31, 2019 2018: Weighted Average December 31, 2019 December 31, 2018 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 9 $ 56,669 $ (36,613 ) $ 20,056 $ 56,378 $ (32,416 ) $ 23,962 Customer lists 12 369,932 (314,380 ) 55,552 368,343 (307,149 ) 61,194 Patents 13 131,086 (110,554 ) 20,532 131,030 (101,060 ) 29,970 Developed technology 9 82,886 (17,872 ) 65,014 13,169 (12,058 ) 1,111 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 4 12,063 (3,804 ) 8,259 3,829 (1,897 ) 1,932 Total finite-lived intangible assets $ 653,682 $ (484,269 ) $ 169,413 $ 573,795 $ (455,626 ) $ 118,169 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 782,003 $ (484,269 ) $ 297,734 $ 702,116 $ (455,626 ) $ 246,490 Amortization of intangible assets was $28,644, $22,112 and $28,861 in 2019, 2018 2017, five 2020 $31,237; 2021 $29,473; 2022 $22,226; 2023 $18,344; 2024 |
Note 10 - Leases
Note 10 - Leases | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | 10. Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company recognizes a right of use (“ROU”) asset and lease liability at the lease commencement date based on the present value of the lease payments over the lease term. As the Company’s leases generally do not may The Company has lease agreements with both lease and nonlease components, which it elected to account for as a single lease component. However, the Company did not The Company leases certain manufacturing facilities, distribution centers, office space, warehouses, automobiles, machinery and computer equipment globally under both finance and operating leases. The Company’s leases have remaining lease terms of up to 20 years, of which certain leases, primarily within the buildings and improvements asset class, include options to extend the leases for up to 10 additional years. Further, the Company leases certain buildings from a noncontrolling interest holder, which the Company has determined to be arms’ length transactions. The Company is a lessor of one third not The Company records its operating lease cost and amortization of finance lease ROU assets within cost of goods sold or operating expenses in the consolidated statements of comprehensive income depending on the cost center of the underlying asset. The Company records its finance lease interest cost within interest expense in the consolidated statements of comprehensive income. The components of total lease cost consist of the following: Twelve Months Ended December 31, 2019 Operating lease cost $ 9,647 Finance lease cost: Amortization of ROU assets 2,531 Interest on lease liabilities 2,227 Total lease cost $ 14,405 Prior to the adoption of ASC 842, December 31, 2018 2017 As of January 1, 2019, 2016 02, December 31, 2019 Operating Leases Operating lease ROU assets (1) $ 35,950 Operating lease liabilities - current (2) $ 7,231 Operating lease liabilities - noncurrent (3) 29,778 Total operating lease liabilities $ 37,009 Finance Leases Finance lease ROU assets, gross $ 29,142 Accumulated depreciation - finance lease ROU assets (3,079 ) Finance lease ROU assets, net (4) $ 26,063 Finance lease liabilities - current (5) $ 1,830 Finance lease liabilities - noncurrent (6) 24,132 Total finance lease liabilities $ 25,962 ( 1 Recorded in the operating lease and other assets line within the consolidated balance sheets ( 2 Recorded in the other accrued liabilities line within the consolidated balance sheets ( 3 Recorded in the operating lease and other long-term liabilities line within the consolidated balance sheets ( 4 Recorded in the property and equipment, net line within the consolidated balance sheets ( 5 Recorded in the current portion of long-term borrowings and finance lease obligations line within the consolidated balance sheets ( 6 Recorded in the long-term borrowings and finance lease obligations line within the consolidated balance sheets Supplemental cash flow information related to the Company’s leases is as follows: Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,174 $ 10,125 Operating cash flows from finance leases 471 1,864 Financing cash flows from finance leases 976 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 239 4,021 Finance leases 632 8,797 Weighted average remaining lease term and discount rate information related to the Company’s leases is as follows: December 31, 2019 Weighted average remaining lease term (in years) Operating Leases 6.90 Finance Leases 13.87 Weighted average discount rate Operating Leases 4.59 % Finance Leases 7.83 % The maturities of the Company’s lease liabilities are as follows: As of December 31, 2019 Finance Leases Operating Leases 2020 $ 3,769 $ 9,086 2021 3,352 7,029 2022 3,536 5,472 2023 2,659 4,629 2024 2,650 4,288 After 2024 29,371 14,232 Total minimum lease payments 45,337 44,736 Interest component (19,375 ) (7,727 ) Present value of minimum lease payments $ 25,962 $ 37,009 |
Note 11 - Product Warranty Obli
Note 11 - Product Warranty Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Product Warranty Disclosure [Text Block] | 1 1 Product Warranty Obligations The Company records a liability for standard product warranty obligations accounted for as assurance warranties at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The following is a tabular reconciliation of the Company’s standard product warranty liability accounted for as an assurance warranty: Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 41,785 $ 35,422 $ 31,695 Product warranty reserve assumed in acquisition 1,062 - 43 Payments (26,096 ) (20,029 ) (18,861 ) Provision for warranty issued 32,060 26,910 21,347 Changes in estimates for pre-existing warranties 505 (518 ) 1,198 Balance at end of period $ 49,316 $ 41,785 $ 35,422 Additionally, the Company sells extended warranty coverage for certain products, which it accounts for as a service warranty. The sales of extended warranties are recorded as deferred revenue, and typically have a duration of five ten Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 68,340 $ 57,854 $ 36,139 Deferred revenue contracts issued 24,483 21,440 29,262 Amortization of deferred revenue contracts (14,085 ) (10,954 ) (7,547 ) Balance at end of period $ 78,738 $ 68,340 $ 57,854 The timing of recognition of the Company’s deferred revenue balance related to extended warranties at December 31, 2019 2020 $ 15,535 2021 16,798 2022 14,705 2023 11,367 After 2023 20,333 Total $ 78,738 In 2017, third third December 31, 2019 2018 December 31, 2019, 2018 2017 Standard product warranty obligations and extended warranty related deferred revenues are included in the consolidated balance sheets as follows: December 31, 2019 2018 Product warranty liability Current portion - other accrued liabilities $ 27,885 $ 25,396 Long-term portion - other long-term liabilities 21,431 16,389 Total $ 49,316 $ 41,785 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 15,519 $ 13,646 Long-term portion - other long-term liabilities 63,219 54,694 Total $ 78,738 $ 68,340 |
Note 12 - Credit Agreements
Note 12 - Credit Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 12. Credit Agreements Short-term borrowings are included in the consolidated balance sheets as follows: December 31, 2019 2018 ABL facility $ 30,961 $ 18,459 Other lines of credit 27,753 27,124 Total $ 58,714 $ 45,583 Long-term borrowings are included in the consolidated balance sheets as follows: December 31, 2019 2018 Term loan $ 830,000 $ 879,000 Original issue discount and deferred financing costs (18,048 ) (22,440 ) ABL facility - - Finance lease obligation 25,962 20,171 Other 2,236 1,642 Total 840,150 878,373 Less: current portion of debt 553 1,075 Less: current portion of finance lease obligation 1,830 902 Total $ 837,767 $ 876,396 Maturities of long-term borrowings outstanding at December 31, 2019, 10, 2020 $ 553 2021 1,683 2022 - 2023 - After 2023 830,000 Total $ 832,236 The Company’s credit agreements originally provided for a $1,200,000 term loan B credit facility (Term Loan) and currently include a $300,000 uncommitted incremental term loan facility. The maturity date of the Term Loan is currently December 13, 2026. first second second 2014, 1.00 In May 2017, 1.00 not 470 50, Debt Modifications and Extinguishments second 2017. In December 2017, 2017, 1.00 470 50, fourth 2017. In June 2018, 470 50, second 2018. In December 2019, May 31, 2023 December 13, 2026, 470 50, fourth 2019. The Term Loan does not 1.00 December 31, 2019, 1.00 no The Company’s credit agreements also originally provided for a senior secured ABL revolving credit facility (ABL Facility). The maturity date of the ABL Facility is currently June 12, 2023. first second In June 2018, June 12, 2023. 470 50, second 2018. In June 2018, second 2018 October 2018, As of December 31, 2019, As of December 31, 2019 December 31, 2018, |
Note 13 - Stock Repurchase Prog
Note 13 - Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 13. Stock Repurchase Programs In August 2015, third 2016. October 2016, fourth 2018. September 2018, October 2018, may may may may may December 31, 2019, not December 31, 2018 2017, |
Note 14 - Earnings Per Share
Note 14 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 14. Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to the common shareholders of the Company by the weighted average number of common shares outstanding during the period, exclusive of restricted shares. Except where the result would be anti-dilutive, diluted earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options. Refer to Note 4, The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: Year Ended December 31, 2019 2018 2017 Numerator Net income attributable to Generac Holdings Inc. $ 252,007 $ 238,257 $ 157,808 Redeemable noncontrolling interest redemption value adjustment 1,253 (17,970 ) 909 Net income attributable to common shareholders $ 253,260 $ 220,287 $ 158,717 Denominator Weighted average shares, basic 61,926,986 61,662,031 62,040,704 Dilutive effect of stock compensation awards (1) 938,460 571,194 602,168 Diluted shares 62,865,446 62,233,225 62,642,872 Net income attributable to common shareholders per share Basic $ 4.09 $ 3.57 $ 2.56 Diluted $ 4.03 $ 3.54 $ 2.53 ( 1 Excludes approximately 26,100 and 147,400 stock options for the years ended December 31, 2018 2017, no December 31, 2019. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The Company’s provision for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 Current: Federal $ 41,686 $ 32,072 $ 15,753 State 4,211 9,639 1,775 Foreign 2,660 4,546 4,585 48,557 46,257 22,113 Deferred: Federal 19,393 22,225 18,213 State 1,390 1,910 4,139 Foreign (1,263 ) 479 (2,777 ) 19,520 24,614 19,575 Change in valuation allowance (778 ) (1,015 ) 2,454 Provision for income taxes $ 67,299 $ 69,856 $ 44,142 The Company files U.S federal, U.S. state and foreign jurisdiction tax returns which are subject to examination up to the expiration of the statute of limitations. The Company believes the tax positions taken on its returns would be sustained upon an exam, or where a position is uncertain, adequate reserves have been recorded. As of December 31, 2019, no 2016. 2009 2018 2013 2018. The Company is regularly under examination in the various jurisdictions in which we operate. The Company is actively managing the examinations and working to address any open matters. While the Company does not may may Significant components of deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 21,053 $ 16,745 Deferred revenue 14,697 12,418 Inventories 9,879 8,500 Pension obligations - 1,062 Stock-based compensation 7,490 5,960 Operating loss and credit carryforwards 28,356 25,585 Bad debt 1,094 1,363 Other 4,275 2,516 Valuation allowance (5,024 ) (5,802 ) Total deferred tax assets 81,820 68,347 Deferred tax liabilities: Goodwill and intangible assets 142,159 108,899 Depreciation 27,864 25,429 Debt refinancing costs 4,119 4,206 Prepaid expenses 1,073 950 Total deferred tax liabilities 175,215 139,484 Net deferred tax liabilities $ (93,395 ) $ (71,137 ) As of December 31, 2019 2018, The Company maintains a valuation allowance against the deferred tax assets of an entity when it is uncertain the entity will generate sufficient taxable income to utilize the asset. During 2019, At December 31, 2019, 2020 2034. Changes in the Company’s gross liability for unrecognized tax benefits, excluding interest and penalties, were as follows: December 31, 2019 2018 Unrecognized tax benefit, beginning of period $ 5,635 $ 7,122 Increase in unrecognized tax benefit for positions taken in prior period 633 - Increase in unrecognized tax benefit for positions taken in current period 495 580 Statute of limitation expirations (43 ) (1,818 ) Settlements - (249 ) Unrecognized tax benefit, end of period $ 6,720 $ 5,635 The unrecognized tax benefit as of December 31, 2019 2018, As of December 31, 2019 2018, The Company does not December 31, 2020. On December 22, 2017, one no not A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2019, 2018 2017 Year Ended December 31, 2019 2018 2017 U.S. statutory rate 21.0 % 21.0 % 35.0 % State taxes 4.3 4.7 4.1 State tax rate differential (1.0 ) - - Research and development credits (0.8 ) (1.3 ) (1.4 ) State credits (1.0 ) (1.0 ) (0.2 ) Share-based compensation (1) (0.6 ) (0.5 ) (1.4 ) Tax Act impact (2) - (0.2 ) (13.9 ) Other (0.8 ) (0.2 ) (0.9 ) Effective tax rate 21.1 % 22.5 % 21.3 % ( 1 With the adoption of ASU 2016 09 2017, ( 2 As a result of the Tax Act, we recognized a one fourth 2017 35% 21%. |
Note 16 - Benefit Plans
Note 16 - Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 16. Benefit Plans Medical and Dental Plan The Company maintains medical and dental benefit plans covering its full-time domestic employees and their dependents. Certain plans are partially or fully self-funded under which participant claims are obligations of the plan. These plans are funded through employer and employee contributions at a level sufficient to pay for the benefits provided by the plan. The Company’s contributions to the plans were $18,290, $14,660, and $14,992 for the years ended December 31, 2019, 2018, 2017, The Company’s foreign subsidiaries participate in government sponsored medical benefit plans. In certain cases, the Company purchases supplemental medical coverage for certain employees at these foreign locations. The expenses related to these plans are not Savings Plan The Company maintains a defined-contribution 401 may may first may December 31, 2008 may 2019, 2018 2017, Pension Plans Historically, the Company maintained frozen noncontributory salaried and hourly pension plans (Pension Plans) covering certain domestic employees. The Pension Plans were frozen effective December 31, 2008. December 31, 2018, no In 2019, fourth 2019 401 fourth 2019, fourth 2019. The Company’s historical funding policy for the Pension Plans was to contribute amounts at least equal to the minimum annual amount required by applicable regulations. In the year ended December 31, 2018, December 31, 2019, No 2019. The following table provides a reconciliation of benefit obligations, plan assets and funded status of the Pension Plan based on a December 31 Year Ended December 31, 2019 2018 Accumulated benefit obligation at end of period $ - $ 65,978 Change in projected benefit obligation Projected benefit obligation at beginning of period $ 65,978 $ 72,631 Interest cost 2,401 2,575 Net actuarial (gain) loss 3,452 (6,820 ) Benefits paid (31,321 ) (2,408 ) Annuities purchased (40,510 ) - Projected benefit obligation at end of period $ - $ 65,978 Change in plan assets Fair value of plan assets at beginning of period $ 61,870 $ 58,014 Actual return on plan assets 8,944 (3,507 ) Company contributions 1,017 9,771 Benefits paid (31,321 ) (2,408 ) Annuities purchased (40,510 ) - Fair value of plan assets at end of period $ - $ 61,870 Funded status: accrued pension liability included in other long-term liabilities $ - $ (4,108 ) Amounts recognized in accumulated other comprehensive loss Net actuarial loss, net of tax $ - $ (10,541 ) The actuarial loss for the Pension Plan that was amortized from AOCL into net periodic pension cost during 2019 The actuarial assumption used in the determination of the benefit obligation of the above data is: 2019 2018 Weighted average discount rate N/A 4.24% The following table sets forth the components of net periodic pension cost (benefit) for the years ended December 31, 2019, 2018 2017: Year Ended December 31, 2019 2018 2017 Interest cost $ 2,401 $ 2,575 $ 2,688 Expected return on plan assets (3,500 ) (3,525 ) (3,011 ) Amortization of net loss 843 802 883 Loss on pension settlement 10,920 - - Net periodic pension cost (benefit) $ 10,664 $ (148 ) $ 560 Weighted-average assumptions used to determine net periodic pension cost (benefit) are as follows: Year Ended December 31, 2019 2018 2017 Discount Rate 4.24% 3.60% 4.14% Expected long-term rate of return on plan assets 6.60% 6.19% 6.58% Rate of compensation increase (1) N/A N/A N/A ( 1 No December 31, 2008. To determine the long-term rate of return assumption for the plans’ assets, the Company studied historical markets and preserved the long-term historical relationship between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. The Company evaluated current market factors such as inflation and interest rates before it determined long-term capital market assumptions and reviewed peer data and historical returns to check for reasonableness and appropriateness. The fair value of the qualified pension plan assets was $0 at December 31, 2019 December 31, 2018. December 31, 2018, Target Allocation December 31, 2018 Asset Category Minimum Maximum Dollars % Fixed income 15.0 % 25.0 % $ 12,257 20 % Domestic equity 36.5 % 61.5 % 30,731 50 % International equity 17.0 % 25.0 % 12,380 20 % Real estate 7.0 % 15.0 % 6,502 10 % Total 61,870 100 % The fair values of the Pension Plans’ assets at December 31, 2018 Total Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Mutual funds $ 51,736 $ 51,736 $ – $ – Other investments 10,134 – – 10,134 Total $ 61,870 $ 51,736 $ – $ 10,134 A reconciliation of beginning and ending balances for Level 3 December 31, 2018 Year Ended December 31, 201 8 Balance at beginning of period $ 9,700 Purchases 3,805 Redemptions (3,795 ) Realized gains 424 Balance at end of period $ 10,134 Mutual Funds 1 Other Investments 3 The Company’s historical target allocation for equity securities and real estate was generally between 75% to 85%, with the remainder allocated primarily to fixed income (bonds). The Company regularly reviewed its actual asset allocation and periodically rebalanced its investments to the targeted allocation when considered appropriate. Certain of the Company’s foreign subsidiaries participate in local statutory defined benefit or other post-employment benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation earned throughout the applicable service period. Liabilities recorded under these plans are included in other long-term liabilities in the Company’s consolidated balance sheets and are not |
Note 17 - Share Plans
Note 17 - Share Plans | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 17. Share Plans The Company adopted an equity incentive plan (Plan) on February 10, 2010 December 31, 2019, 2018 2017, On June 13, 2019, 2019 2019 2019 2019 December 31, 2019, Stock Options 2019 2018 2017 four ten Stock option exercises can be net-share settled such that the Company withholds shares with value equivalent to the exercise price of the stock option awards plus the employees’ minimum statutory obligation for the applicable income and other employment taxes. Total shares withheld were 32,211, 63,817 and 9,033 in 2019, 2018 2017, Employees can also utilize a cashless for cash exercise of stock options, such that all exercised shares will be sold in the market immediately. Cash equivalent to the exercise price of the awards plus the employees’ minimum statutory tax obligations is remitted to the Company, with the remaining cash being transferred to the employee. Total net proceeds from the cashless for cash exercise of stock options were $9,395, $5,614 and $6,951 in 2019, 2018 2017, Total payments made by the Company to the taxing authorities for the employees’ tax obligations related to stock option exercises were $3,360, $3,846 and $4,301 in 2019, 2018 2017, The grant-date fair value of each option grant is estimated using the Black-Scholes-Merton option pricing model. The fair value is then amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Use of a valuation model requires management to make certain assumptions with respect to selected model inputs. Expected volatility is calculated based on an analysis of historic volatility of the Company’s stock price. The average expected life is based on the contractual term of the option using the simplified method. The risk-free interest rate is based on U.S. Treasury zero The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for 2019, 2018 2017 2019 2018 2017 Weighted average grant date fair value $ 19.33 $ 17.86 $ 16.84 Assumptions: Expected stock price volatility 33 % 37 % 40 % Risk free interest rate 2.52 % 2.60 % 1.92 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 A summary of the Company’s stock option activity and related information for the years ended December 31, 2019, 2018 2017 Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) Outstanding as of December 31, 2016 1,482,964 $ 27.49 7.5 $ 23,840 Granted 346,421 40.13 Exercised (287,375 ) 10.58 Forfeited (69,880 ) 41.12 Outstanding as of December 31, 2017 1,472,130 33.11 7.3 $ 25,281 Granted 366,231 43.88 Exercised (267,909 ) 19.90 Forfeited (49,285 ) 43.34 Outstanding as of December 31, 2018 1,521,167 37.70 7.0 $ 19,212 Granted 369,779 52.07 Exercised (263,250 ) 30.75 Forfeited (35,010 ) 43.79 Outstanding as of December 31, 2019 1,592,686 42.04 6.9 $ 93,242 Exercisable as of December 31, 2019 726,817 37.78 5.3 $ 45,649 As of December 31, 2019, 2019, 2018 2017 Restricted Stock three 2014 2019. three may 2017 2017 2019, 2018 2018 2020, 2019 2019 2021. Restricted stock vesting is net-share settled such that, upon vesting, the Company withholds shares with value equivalent to the employees’ minimum statutory tax obligation, and then pays the cash to the taxing authorities on behalf of the employees. In effect, the Company repurchases these shares and classifies them as treasury stock. Total shares withheld were 55,953, 38,186 and 39,500 in 2019, 2018 2017, 2019, 2018 2017, A summary of the Company's restricted stock activity for the years ended December 31, 2019, 2018 2017 Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2016 361,403 $ 38.18 Granted 211,769 39.91 Vested (133,796 ) 40.60 Forfeited (47,100 ) 42.48 Non-vested as of December 31, 2017 392,276 37.77 Granted 208,803 44.49 Vested (128,433 ) 39.03 Forfeited (46,650 ) 39.43 Non-vested as of December 31, 2018 425,996 40.50 Granted 265,255 62.38 Vested (184,628 ) 38.78 Forfeited (14,986 ) 44.23 Non-vested as of December 31, 2019 491,637 52.84 As of December 31, 2019, 2019, 2018 2017, During 2019, 2018 2017, 2019, 2018, 2017, 2019, 2018 2017 |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18. Commitments and Contingencies The Company has an arrangement with a finance company to provide floor plan financing for certain dealers. The Company receives payment from the finance company after shipment of product to the dealer. The Company participates in the cost of dealer financing up to certain limits and has agreed to repurchase products repossessed by the finance company, but does not December 31, 2019 2018 In the normal course of business, the Company is named as a defendant in various lawsuits in which claims are asserted against the Company. In the opinion of management, the liabilities, if any, which may not |
Note 19 - Quarterly Financial I
Note 19 - Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 19. Quarterly Financial Information (Unaudited) Quarters Ended 2019 Q1 Q2 Q3 Q4 Net sales $ 470,353 $ 541,916 $ 601,135 $ 590,932 Gross profit 162,175 195,838 217,517 222,222 Operating income 71,173 90,926 105,556 104,508 Net income attributable to Generac Holdings Inc. 44,861 61,958 75,574 69,614 Net income attributable to common shareholders per common share - basic: $ 0.77 $ 0.99 $ 1.20 $ 1.14 Net income attributable to common shareholders per common share - diluted: $ 0.76 $ 0.98 $ 1.18 $ 1.12 Quarters Ended 2018 Q1 Q2 Q3 Q4 Net sales $ 400,091 $ 497,581 $ 562,388 $ 563,404 Gross profit 141,927 178,473 200,334 204,306 Operating income 56,347 85,467 106,519 108,848 Net income attributable to Generac Holdings Inc. 33,645 53,261 75,776 75,575 Net income attributable to common shareholders per common share - basic: $ 0.42 $ 0.83 $ 1.12 $ 1.21 Net income attributable to common shareholders per common share - diluted: $ 0.42 $ 0.82 $ 1.11 $ 1.20 |
Note 20 - Valuation and Qualify
Note 20 - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | 20. Valuation and Qualifying Accounts For the years ended December 31, 2019, 2018 2017: Balance at Beginning of Year Additions Charged to Earnings Charges to Reserve, Net (1) Reserves Established for Acquisitions Balance at End of Year Year ended December 31, 2019 Allowance for doubtful accounts $ 4,873 $ 3,086 $ (1,033 ) $ 42 $ 6,968 Reserves for inventory 23,140 4,821 (3,867 ) 199 $ 24,293 Valuation of deferred tax assets 5,802 - - (778 ) $ 5,024 Year ended December 31, 2018 Allowance for doubtful accounts $ 4,805 $ 1,941 $ (2,123 ) $ 250 $ 4,873 Reserves for inventory 15,987 10,004 (3,720 ) 869 23,140 Valuation of deferred tax assets 6,817 478 - (1,493 ) 5,802 Year ended December 31, 2017 Allowance for doubtful accounts $ 5,642 $ 346 $ (1,842 ) $ 659 $ 4,805 Reserves for inventory 13,031 6,164 (4,036 ) 828 15,987 Valuation of deferred tax assets 4,362 2,455 - - 6,817 ( 1 Deductions from the allowance for doubtful accounts equal accounts receivable written off against the allowance, less recoveries. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 21. Subsequent Events The Company performed an evaluation of subsequent events through the date these financial statements were issued and no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries that are consolidated in conformity with U.S. GAAP. All intercompany amounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company maintains the majority of its domestic cash in one One customer accounted for approximately 9% and 11% of accounts receivable at December 31, 2019 2018, No one December 31, 2019, 2018, 2017, |
Receivable [Policy Text Block] | Accounts Receivable Receivables are recorded at their face value amount less an allowance for doubtful accounts. The Company estimates and records an allowance for doubtful accounts based on specific identification and historical experience. The Company writes off uncollectible accounts against the allowance for doubtful accounts after all collection efforts have been exhausted. Sales are generally made on an unsecured basis, and certain balances are protected by credit insurance. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market, with cost determined generally using the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and are being depreciated using the straight-line method over the estimated useful lives of the assets, which are summarized below (in years). Costs of leasehold improvements are amortized over the lesser of the term of the lease (including renewal option periods) or the estimated useful lives of the improvements. Finance lease right of use assets are included in property and equipment. Refer to Note 10, Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 Total depreciation expense was $32,265, $25,296, and $23,127 for the years ended December 31, 2019, 2018, 2017, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Indefinite-Lived Intangible Assets Goodwill represents the excess of the purchase price over fair value of identifiable net assets acquired from business acquisitions. Goodwill is not October 31 may not not not not not not not Other indefinite-lived intangible assets consist of certain tradenames. The Company tests the carrying value of these tradenames annually as of October 31, may not not The Company performed the required annual impairment tests for goodwill and other indefinite-lived intangible assets for the fiscal years 2019, 2018 2017, no |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and indefinite-lived tradenames). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not |
Debt, Policy [Policy Text Block] | Debt Issuance Costs Debt discounts and direct costs incurred in connection with the issuance of long-term debt are deferred and recorded as a reduction of outstanding debt and amortized to interest expense using the effective interest method over the terms of the related credit agreements. $4,712, $4,749, and $3,516 of deferred financing costs and original issue discount were amortized to interest expense during fiscal years 2019, 2018 2017, five 2020 $2,598; 2021 $2,640; 2022 $2,689; 2023 $2,579; 2024 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company is a C Corporation and therefore accounts for income taxes pursuant to the liability method. Accordingly, the current or deferred tax consequences of a transaction are measured by applying the provision of enacted tax laws to determine the amount of taxes payable currently or in future years. Deferred income taxes are provided for temporary differences between the income tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not not |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition not one not not one not At the request of certain customers, the Company will warehouse inventory billed to the customer but not not While the Company’s standard payment terms are less than one December 31, 2019 December 31, 2018, December 31, 2019, December 31, 2018 one The Company offers standard warranty coverage on substantially all products that it sells and accounts for this standard warranty coverage as an assurance warranty. As such, no 11, The Company also sells extended warranty coverage for certain products, which it accounts for as service warranties. In most cases, the extended warranty is sold as a separate contract. As such, extended warranty sales are considered a separate performance obligation, and the extended warranty transaction is separate and distinct from the product. The extended warranty transaction price is initially recorded as deferred revenue in the consolidated balance sheets and amortized on a straight-line basis to net sales in the consolidated statements of comprehensive income over the life of the contracts following the standard warranty period. For extended warranty contracts that the Company sells under a third third 11, In addition to extended warranties, the Company offers other services, including remote monitoring, installation and maintenance services in limited circumstances. Total service revenues account for less than three December 31, 2019. Refer to Note 7, |
Advertising Cost [Policy Text Block] | Advertising and Co-Op Advertising Expenditures for advertising, included in selling and service expenses in the consolidated statements of comprehensive income, are expensed as incurred. Expenditures for advertising production costs are expensed when the related advertisement is first December 31, 2019, 2018, 2017, |
Research and Development Expense, Policy [Policy Text Block] | Research and Development The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $68,394, $50,019, and $42,869 for the years ended December 31, 2019, 2018, 2017, |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transactions Balance sheet amounts for non-U.S. Dollar functional currency businesses are translated into U.S. Dollars at the rates of exchange in effect at the end of the fiscal year. Income and expenses incurred in a foreign currency are translated at the average rates of exchange in effect during the year. The related translation adjustments are made directly to accumulated other comprehensive loss, a component of stockholders’ equity, in the consolidated balance sheets. Gains and losses from foreign currency transactions are recognized as incurred in the consolidated statements of comprehensive income. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments ASC 820 10, Fair Value Measurement , 820 10 three 1 2 3 no The Company believes the carrying amount of its financial instruments (cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, short-term borrowings and ABL facility borrowings), excluding Term Loan borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of Term Loan borrowings, which have an aggregate carrying value of $812,953, was approximately $833,092 (Level 2 December 31, 2019, For the fair value of the assets and liabilities measured on a recurring basis, refer to the fair value table in Note 5, 2. 820 10. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Derivatives, Policy [Policy Text Block] | Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging , not 7A 10 |
Share-based Payment Arrangement [Policy Text Block] | S hare -Based Compensation Share-based compensation expense, including stock options and restricted stock awards, is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. Refer to Note 17, |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements New Accounting Standards Not In June 2016, 2016 13, Financial Instruments – Credit Losses (Topic 326 Measurement of Credit Losses on Financial Instruments December 15, 2019, not There are several other new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not Recently Adopted Accounting Standards On January 1, 2019, 2016 02, Leases 842 no not 10, On January 1, 2019, 2018 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2017 not On January 1, 2019, 2017 12, Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities not not On April 1, 2019, 2018 15, Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. not |
Note 2 - Summary of Accountin_2
Note 2 - Summary of Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Property Plant and Equipment, Estimated Useful Lives [Table Text Block] | Land improvements 8 – 20 Buildings and improvements 10 – 40 Machinery and equipment 3 – 15 Dies and tools 3 – 10 Vehicles 3 – 6 Office equipment and systems 3 – 15 Leasehold improvements 2 – 20 |
Note 3 - Acquisitions (Tables)
Note 3 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | June 1, 2018 Accounts receivable $ 14,302 Inventories 8,000 Prepaid expense and other assets 4,323 Property and equipment 5,572 Intangible assets 33,631 Goodwill 46,196 Deferred income taxes 3,252 Other assets 597 Total assets acquired 115,873 Accounts payable 7,216 Accrued wages and employee benefits 397 Other accrued liabilities 13,671 Deferred income taxes 10,974 Other long-term liabilities 3,643 Net assets acquired $ 79,972 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments [Table Text Block] | Year Ended December 31, 2019 2018 2017 Net Sales: As reported $ 2,204,336 $ 2,023,464 $ 1,679,373 Pro forma 2,206,952 2,067,737 1,755,358 Net income attributable to Generac Holdings Inc.: As reported $ 252,007 $ 238,257 $ 157,808 Pro forma 248,335 230,379 151,764 Net income attributable to Generac Holdings Inc. per common share - diluted As reported $ 4.03 $ 3.54 $ 2.53 Pro forma 3.97 3.41 2.44 |
Note 4 - Redeemable Noncontro_2
Note 4 - Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 61,004 $ 43,929 $ 33,138 Noncontrolling interest 3,165 (1) - 1,540 (2) Net income 75 2,214 1,631 Foreign currency translation (1,764 ) (3,109 ) 8,529 Redemption value adjustment (1,253 ) 17,970 (909 ) Balance at end of period $ 61,227 $ 61,004 $ 43,929 |
Note 5 - Derivative Instrumen_2
Note 5 - Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule Of Derivative Assets (Liabilities) at Fair Value [Table Text Block] | December 31, 9 December 31, 8 Commodity contracts $ 6 $ (160 ) Foreign currency contracts 31 (117 ) Interest rate swaps (10,425 ) 8,307 |
Note 6 - Accumulated Other Co_2
Note 6 - Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2019 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) Other comprehensive income (loss) before reclassifications 2,210 1,474 (1) (13,855 ) (2) (10,171 ) Amounts reclassified from AOCL - 9,067 (3) - 9,067 Net current-period other comprehensive income (loss) 2,210 10,541 (13,855 ) (1,104 ) Ending Balance – December 31, 2019 $ (16,622 ) $ - $ (8,295 ) $ (24,917 ) Foreign Currency Translation Adjustments Defined Benefit Pension Plan Unrealized Gain (Loss) on Cash Flow Hedges Total Beginning Balance – January 1, 2018 $ (12,856 ) $ (10,978 ) $ 2,636 $ (21,198 ) Other comprehensive income (loss) before reclassifications (5,976 ) (156 ) (4) 2,924 (5) (3,208 ) Amounts reclassified from AOCL - 593 (6) - 593 Net current-period other comprehensive income (loss) (5,976 ) 437 2,924 (2,615 ) Ending Balance – December 31, 2018 $ (18,832 ) $ (10,541 ) $ 5,560 $ (23,813 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Net Sales by Segment Year Ended December 31, 2019 Product Classes Domestic International Total Residential products $ 1,086,019 $ 57,704 $ 1,143,723 Commercial & industrial products 513,482 358,113 871,595 Other 143,397 45,621 189,018 Total net sales $ 1,742,898 $ 461,438 $ 2,204,336 Year Ended December 31, 2018 Product Classes Domestic International Total Residential products $ 980,707 $ 62,032 $ 1,042,739 Commercial & industrial products 461,415 358,855 820,270 Other 124,398 36,057 160,455 Total net sales $ 1,566,520 $ 456,944 $ 2,023,464 Year Ended December 31, 2017 Product Classes Domestic International Total Residential products $ 796,237 $ 74,253 $ 870,490 Commercial & industrial products 372,635 311,718 684,353 Other 102,806 21,724 124,530 Total net sales $ 1,271,678 $ 407,695 $ 1,679,373 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Adjusted EBITDA Year Ended December 31, 2019 2018 2017 Domestic $ 428,667 $ 388,495 $ 282,450 International 25,448 36,057 34,850 Total adjusted EBITDA $ 454,115 $ 424,552 $ 317,300 Interest expense (41,544 ) (40,956 ) (42,667 ) Depreciation and amortization (60,767 ) (47,408 ) (51,988 ) Non-cash write-down and other adjustments (1) (240 ) (3,532 ) (2,923 ) Non-cash share-based compensation expense (2) (16,694 ) (14,563 ) (10,205 ) Loss on extinguishment of debt (3) (926 ) (1,332 ) - Loss on pension settlement (4) (10,920 ) - - Transaction costs and credit facility fees (5) (2,724 ) (3,883 ) (2,145 ) Business optimization expenses (6) (1,572 ) (952 ) (2,912 ) Other 879 (850 ) (761 ) Income before provision for income taxes $ 319,607 $ 311,076 $ 203,699 Assets Year Ended December 31, 2019 2018 2017 Domestic $ 2,123,251 $ 1,868,554 $ 1,612,607 International 542,418 557,760 413,358 Total $ 2,665,669 $ 2,426,314 $ 2,025,965 Depreciation and Amortization Year Ended December 31, 2019 2018 2017 Domestic $ 46,145 $ 35,586 $ 37,962 International 14,764 11,822 14,026 Total $ 60,909 $ 47,408 $ 51,988 Capital Expenditures Year Ended December 31, 2019 2018 2017 Domestic $ 36,007 $ 38,242 $ 29,258 International 24,795 9,359 4,003 Total $ 60,802 $ 47,601 $ 33,261 |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | Year Ended December 31, 2019 2018 2017 Residential Products $ 7,129 $ 9,924 $ 18,888 Commercial & industrial products 5,724 2,651 12,940 Other 998 1,230 - Total Net Sales $ 13,851 $ 13,805 $ 31,828 Adjusted EBITDA $ 984 $ 190 $ 7,840 |
Note 8 - Balance Sheet Details
Note 8 - Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2019 2018 Raw material $ 328,021 $ 348,980 Work-in-process 10,387 6,971 Finished goods 183,616 188,799 Total $ 522,024 $ 544,750 |
Property, Plant and Equipment [Table Text Block] | December 31, 2019 2018 Land and improvements $ 18,252 $ 15,975 Buildings and improvements 177,079 163,161 Machinery and equipment 117,114 103,726 Dies and tools 22,040 28,198 Vehicles 3,955 2,070 Office equipment and systems 99,124 82,638 Leasehold improvements 4,293 2,137 Construction in progress 36,299 26,543 Gross property and equipment 478,156 424,448 Accumulated depreciation (161,180 ) (145,519 ) Total $ 316,976 $ 278,929 |
Note 9 - Goodwill and Intangi_2
Note 9 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Domestic International Total Balance at December 31, 2017 $ 621,451 $ 100,072 $ 721,523 Acquisitions of businesses, net - 46,788 46,788 Foreign currency translation - (3,656 ) (3,656 ) Balance at December 31, 2018 621,451 143,204 764,655 Acquisitions of businesses, net 37,758 3,078 40,836 Foreign currency translation - (207 ) (207 ) Balance at December 31, 2019 $ 659,209 $ 146,075 $ 805,284 Year Ended December 31, 2019 Year Ended December 31, 2018 Gross Accumulated Impairment Net Gross Accumulated Impairment Net Domestic $ 1,162,402 $ (503,193 ) $ 659,209 $ 1,124,644 $ (503,193 ) $ 621,451 International 150,686 (4,611 ) 146,075 147,815 (4,611 ) 143,204 Total $ 1,313,088 $ (507,804 ) $ 805,284 $ 1,272,459 $ (507,804 ) $ 764,655 |
Schedule Of Intangible Assets [Table Text Block] | Weighted Average December 31, 2019 December 31, 2018 Amortization Years Gross Accumulated Amortization Net Book Value Gross Accumulated Amortization Net Book Value Finite-lived intangible assets: Tradenames 9 $ 56,669 $ (36,613 ) $ 20,056 $ 56,378 $ (32,416 ) $ 23,962 Customer lists 12 369,932 (314,380 ) 55,552 368,343 (307,149 ) 61,194 Patents 13 131,086 (110,554 ) 20,532 131,030 (101,060 ) 29,970 Developed technology 9 82,886 (17,872 ) 65,014 13,169 (12,058 ) 1,111 Software - 1,046 (1,046 ) - 1,046 (1,046 ) - Non-compete/other 4 12,063 (3,804 ) 8,259 3,829 (1,897 ) 1,932 Total finite-lived intangible assets $ 653,682 $ (484,269 ) $ 169,413 $ 573,795 $ (455,626 ) $ 118,169 Indefinite-lived tradenames 128,321 - 128,321 128,321 - 128,321 Total intangible assets $ 782,003 $ (484,269 ) $ 297,734 $ 702,116 $ (455,626 ) $ 246,490 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Twelve Months Ended December 31, 2019 Operating lease cost $ 9,647 Finance lease cost: Amortization of ROU assets 2,531 Interest on lease liabilities 2,227 Total lease cost $ 14,405 |
Schedule of Components of Lease Assets and Liabilities [Table Text Block] | December 31, 2019 Operating Leases Operating lease ROU assets (1) $ 35,950 Operating lease liabilities - current (2) $ 7,231 Operating lease liabilities - noncurrent (3) 29,778 Total operating lease liabilities $ 37,009 Finance Leases Finance lease ROU assets, gross $ 29,142 Accumulated depreciation - finance lease ROU assets (3,079 ) Finance lease ROU assets, net (4) $ 26,063 Finance lease liabilities - current (5) $ 1,830 Finance lease liabilities - noncurrent (6) 24,132 Total finance lease liabilities $ 25,962 |
Schedule of Leases Cash Flow Information [Table Text Block] | Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,174 $ 10,125 Operating cash flows from finance leases 471 1,864 Financing cash flows from finance leases 976 3,237 ROU assets obtained in exchange for lease liabilities Operating leases 239 4,021 Finance leases 632 8,797 |
Lease, Term and Discount Rate [Table Text Block] | December 31, 2019 Weighted average remaining lease term (in years) Operating Leases 6.90 Finance Leases 13.87 Weighted average discount rate Operating Leases 4.59 % Finance Leases 7.83 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | As of December 31, 2019 Finance Leases Operating Leases 2020 $ 3,769 $ 9,086 2021 3,352 7,029 2022 3,536 5,472 2023 2,659 4,629 2024 2,650 4,288 After 2024 29,371 14,232 Total minimum lease payments 45,337 44,736 Interest component (19,375 ) (7,727 ) Present value of minimum lease payments $ 25,962 $ 37,009 |
Note 11 - Product Warranty Ob_2
Note 11 - Product Warranty Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 41,785 $ 35,422 $ 31,695 Product warranty reserve assumed in acquisition 1,062 - 43 Payments (26,096 ) (20,029 ) (18,861 ) Provision for warranty issued 32,060 26,910 21,347 Changes in estimates for pre-existing warranties 505 (518 ) 1,198 Balance at end of period $ 49,316 $ 41,785 $ 35,422 Year Ended December 31, 2019 2018 2017 Balance at beginning of period $ 68,340 $ 57,854 $ 36,139 Deferred revenue contracts issued 24,483 21,440 29,262 Amortization of deferred revenue contracts (14,085 ) (10,954 ) (7,547 ) Balance at end of period $ 78,738 $ 68,340 $ 57,854 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2020 $ 15,535 2021 16,798 2022 14,705 2023 11,367 After 2023 20,333 Total $ 78,738 |
Product Warranty Obligations Included In Consolidated Balance Sheet [Table Text Block] | December 31, 2019 2018 Product warranty liability Current portion - other accrued liabilities $ 27,885 $ 25,396 Long-term portion - other long-term liabilities 21,431 16,389 Total $ 49,316 $ 41,785 Deferred revenue related to extended warranties Current portion - other accrued liabilities $ 15,519 $ 13,646 Long-term portion - other long-term liabilities 63,219 54,694 Total $ 78,738 $ 68,340 |
Note 12 - Credit Agreements (Ta
Note 12 - Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Short-term Debt [Table Text Block] | December 31, 2019 2018 ABL facility $ 30,961 $ 18,459 Other lines of credit 27,753 27,124 Total $ 58,714 $ 45,583 |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2019 2018 Term loan $ 830,000 $ 879,000 Original issue discount and deferred financing costs (18,048 ) (22,440 ) ABL facility - - Finance lease obligation 25,962 20,171 Other 2,236 1,642 Total 840,150 878,373 Less: current portion of debt 553 1,075 Less: current portion of finance lease obligation 1,830 902 Total $ 837,767 $ 876,396 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2020 $ 553 2021 1,683 2022 - 2023 - After 2023 830,000 Total $ 832,236 |
Note 14 - Earnings Per Share (T
Note 14 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2019 2018 2017 Numerator Net income attributable to Generac Holdings Inc. $ 252,007 $ 238,257 $ 157,808 Redeemable noncontrolling interest redemption value adjustment 1,253 (17,970 ) 909 Net income attributable to common shareholders $ 253,260 $ 220,287 $ 158,717 Denominator Weighted average shares, basic 61,926,986 61,662,031 62,040,704 Dilutive effect of stock compensation awards (1) 938,460 571,194 602,168 Diluted shares 62,865,446 62,233,225 62,642,872 Net income attributable to common shareholders per share Basic $ 4.09 $ 3.57 $ 2.56 Diluted $ 4.03 $ 3.54 $ 2.53 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2019 2018 2017 Current: Federal $ 41,686 $ 32,072 $ 15,753 State 4,211 9,639 1,775 Foreign 2,660 4,546 4,585 48,557 46,257 22,113 Deferred: Federal 19,393 22,225 18,213 State 1,390 1,910 4,139 Foreign (1,263 ) 479 (2,777 ) 19,520 24,614 19,575 Change in valuation allowance (778 ) (1,015 ) 2,454 Provision for income taxes $ 67,299 $ 69,856 $ 44,142 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 21,053 $ 16,745 Deferred revenue 14,697 12,418 Inventories 9,879 8,500 Pension obligations - 1,062 Stock-based compensation 7,490 5,960 Operating loss and credit carryforwards 28,356 25,585 Bad debt 1,094 1,363 Other 4,275 2,516 Valuation allowance (5,024 ) (5,802 ) Total deferred tax assets 81,820 68,347 Deferred tax liabilities: Goodwill and intangible assets 142,159 108,899 Depreciation 27,864 25,429 Debt refinancing costs 4,119 4,206 Prepaid expenses 1,073 950 Total deferred tax liabilities 175,215 139,484 Net deferred tax liabilities $ (93,395 ) $ (71,137 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | December 31, 2019 2018 Unrecognized tax benefit, beginning of period $ 5,635 $ 7,122 Increase in unrecognized tax benefit for positions taken in prior period 633 - Increase in unrecognized tax benefit for positions taken in current period 495 580 Statute of limitation expirations (43 ) (1,818 ) Settlements - (249 ) Unrecognized tax benefit, end of period $ 6,720 $ 5,635 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2019 2018 2017 U.S. statutory rate 21.0 % 21.0 % 35.0 % State taxes 4.3 4.7 4.1 State tax rate differential (1.0 ) - - Research and development credits (0.8 ) (1.3 ) (1.4 ) State credits (1.0 ) (1.0 ) (0.2 ) Share-based compensation (1) (0.6 ) (0.5 ) (1.4 ) Tax Act impact (2) - (0.2 ) (13.9 ) Other (0.8 ) (0.2 ) (0.9 ) Effective tax rate 21.1 % 22.5 % 21.3 % |
Note 16 - Benefit Plans (Tables
Note 16 - Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Year Ended December 31, 2019 2018 Accumulated benefit obligation at end of period $ - $ 65,978 Change in projected benefit obligation Projected benefit obligation at beginning of period $ 65,978 $ 72,631 Interest cost 2,401 2,575 Net actuarial (gain) loss 3,452 (6,820 ) Benefits paid (31,321 ) (2,408 ) Annuities purchased (40,510 ) - Projected benefit obligation at end of period $ - $ 65,978 Change in plan assets Fair value of plan assets at beginning of period $ 61,870 $ 58,014 Actual return on plan assets 8,944 (3,507 ) Company contributions 1,017 9,771 Benefits paid (31,321 ) (2,408 ) Annuities purchased (40,510 ) - Fair value of plan assets at end of period $ - $ 61,870 Funded status: accrued pension liability included in other long-term liabilities $ - $ (4,108 ) Amounts recognized in accumulated other comprehensive loss Net actuarial loss, net of tax $ - $ (10,541 ) |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Table Text Block] | 2019 2018 Weighted average discount rate N/A 4.24% |
Schedule of Net Benefit Costs [Table Text Block] | Year Ended December 31, 2019 2018 2017 Interest cost $ 2,401 $ 2,575 $ 2,688 Expected return on plan assets (3,500 ) (3,525 ) (3,011 ) Amortization of net loss 843 802 883 Loss on pension settlement 10,920 - - Net periodic pension cost (benefit) $ 10,664 $ (148 ) $ 560 |
Schedule of Allocation of Plan Assets [Table Text Block] | Target Allocation December 31, 2018 Asset Category Minimum Maximum Dollars % Fixed income 15.0 % 25.0 % $ 12,257 20 % Domestic equity 36.5 % 61.5 % 30,731 50 % International equity 17.0 % 25.0 % 12,380 20 % Real estate 7.0 % 15.0 % 6,502 10 % Total 61,870 100 % |
Schedule of Fair Value of Plan Assets [Table Text Block] | Total Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Mutual funds $ 51,736 $ 51,736 $ – $ – Other investments 10,134 – – 10,134 Total $ 61,870 $ 51,736 $ – $ 10,134 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | Year Ended December 31, 201 8 Balance at beginning of period $ 9,700 Purchases 3,805 Redemptions (3,795 ) Realized gains 424 Balance at end of period $ 10,134 |
Net periodic Benefit Costs [Member] | |
Notes Tables | |
Defined Benefit Plan, Assumptions [Table Text Block] | Year Ended December 31, 2019 2018 2017 Discount Rate 4.24% 3.60% 4.14% Expected long-term rate of return on plan assets 6.60% 6.19% 6.58% Rate of compensation increase (1) N/A N/A N/A |
Note 17 - Share Plans (Tables)
Note 17 - Share Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2019 2018 2017 Weighted average grant date fair value $ 19.33 $ 17.86 $ 16.84 Assumptions: Expected stock price volatility 33 % 37 % 40 % Risk free interest rate 2.52 % 2.60 % 1.92 % Expected annual dividend per share $ - $ - $ - Expected life of options (years) 6.25 6.25 6.25 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value ($ in thousands) Outstanding as of December 31, 2016 1,482,964 $ 27.49 7.5 $ 23,840 Granted 346,421 40.13 Exercised (287,375 ) 10.58 Forfeited (69,880 ) 41.12 Outstanding as of December 31, 2017 1,472,130 33.11 7.3 $ 25,281 Granted 366,231 43.88 Exercised (267,909 ) 19.90 Forfeited (49,285 ) 43.34 Outstanding as of December 31, 2018 1,521,167 37.70 7.0 $ 19,212 Granted 369,779 52.07 Exercised (263,250 ) 30.75 Forfeited (35,010 ) 43.79 Outstanding as of December 31, 2019 1,592,686 42.04 6.9 $ 93,242 Exercisable as of December 31, 2019 726,817 37.78 5.3 $ 45,649 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2016 361,403 $ 38.18 Granted 211,769 39.91 Vested (133,796 ) 40.60 Forfeited (47,100 ) 42.48 Non-vested as of December 31, 2017 392,276 37.77 Granted 208,803 44.49 Vested (128,433 ) 39.03 Forfeited (46,650 ) 39.43 Non-vested as of December 31, 2018 425,996 40.50 Granted 265,255 62.38 Vested (184,628 ) 38.78 Forfeited (14,986 ) 44.23 Non-vested as of December 31, 2019 491,637 52.84 |
Note 19 - Quarterly Financial_2
Note 19 - Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Quarters Ended 2019 Q1 Q2 Q3 Q4 Net sales $ 470,353 $ 541,916 $ 601,135 $ 590,932 Gross profit 162,175 195,838 217,517 222,222 Operating income 71,173 90,926 105,556 104,508 Net income attributable to Generac Holdings Inc. 44,861 61,958 75,574 69,614 Net income attributable to common shareholders per common share - basic: $ 0.77 $ 0.99 $ 1.20 $ 1.14 Net income attributable to common shareholders per common share - diluted: $ 0.76 $ 0.98 $ 1.18 $ 1.12 Quarters Ended 2018 Q1 Q2 Q3 Q4 Net sales $ 400,091 $ 497,581 $ 562,388 $ 563,404 Gross profit 141,927 178,473 200,334 204,306 Operating income 56,347 85,467 106,519 108,848 Net income attributable to Generac Holdings Inc. 33,645 53,261 75,776 75,575 Net income attributable to common shareholders per common share - basic: $ 0.42 $ 0.83 $ 1.12 $ 1.21 Net income attributable to common shareholders per common share - diluted: $ 0.42 $ 0.82 $ 1.11 $ 1.20 |
Note 20 - Valuation and Quali_2
Note 20 - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Tables | |
Valuation and Qualifying Accounts [Table Text Block] | Balance at Beginning of Year Additions Charged to Earnings Charges to Reserve, Net (1) Reserves Established for Acquisitions Balance at End of Year Year ended December 31, 2019 Allowance for doubtful accounts $ 4,873 $ 3,086 $ (1,033 ) $ 42 $ 6,968 Reserves for inventory 23,140 4,821 (3,867 ) 199 $ 24,293 Valuation of deferred tax assets 5,802 - - (778 ) $ 5,024 Year ended December 31, 2018 Allowance for doubtful accounts $ 4,805 $ 1,941 $ (2,123 ) $ 250 $ 4,873 Reserves for inventory 15,987 10,004 (3,720 ) 869 23,140 Valuation of deferred tax assets 6,817 478 - (1,493 ) 5,802 Year ended December 31, 2017 Allowance for doubtful accounts $ 5,642 $ 346 $ (1,842 ) $ 659 $ 4,805 Reserves for inventory 13,031 6,164 (4,036 ) 828 15,987 Valuation of deferred tax assets 4,362 2,455 - - 6,817 |
Note 2 - Summary of Accountin_3
Note 2 - Summary of Accounting Policies (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Depreciation, Total | $ 32,265 | $ 25,296 | $ 23,127 |
Goodwill and Intangible Asset Impairment, Total | 0 | 0 | 0 |
Amortization of Financing Costs and Debt Discount Premium | 4,712 | 4,749 | 3,516 |
Deferred Costs Amortization Expense, Next Twelve Months | 2,598 | ||
Deferred Costs Amortization Expense, Year Two | 2,640 | ||
Deferred Costs Amortization Expense, Year Three | 2,689 | ||
Deferred Costs Amortization Expense, Year Four | 2,579 | ||
Deferred Costs Amortization Expense, Year Five | 2,508 | ||
Contract with Customer, Liability, Total | 9,952 | 14,174 | |
Contract with Customer, Liability, Revenue Recognized | 9,589 | ||
Advertising Expense | 44,153 | 34,792 | 45,926 |
Research and Development Expense, Total | 68,394 | $ 50,019 | $ 42,869 |
Fair Value, Inputs, Level 2 [Member] | |||
Debt Instrument, Fair Value Disclosure, Total | 833,092 | ||
Term Loan [Member] | |||
Long-term Debt, Total | $ 812,953 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 9.00% | 11.00% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 5.00% | 6.00% | 6.00% |
Number of Major Customers | 0 | 0 | 0 |
Note 2 - Summary of Accountin_4
Note 2 - Summary of Accounting Policies - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Land Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 8 years |
Land Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 20 years |
Building and Building Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 40 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 15 years |
Dies and Tools [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Dies and Tools [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 6 years |
Office Equipment [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 15 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property and equipment, estimated useful lives (Year) | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property and equipment, estimated useful lives (Year) | 20 years |
Note 3 - Acquisitions (Details
Note 3 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Apr. 26, 2019 | Mar. 12, 2019 | Jun. 01, 2018 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 112,001 | $ 65,440 | $ (1,257) | ||||
Goodwill, Ending Balance | 805,284 | $ 764,655 | $ 721,523 | ||||
Pika [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 49,068 | ||||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,196 | ||||||
Goodwill, Ending Balance | $ 19,896 | ||||||
Neurio [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 59,071 | $ 7,922 | |||||
Business Acquisition, Purchase Price Allocation, Intangible Assets Including Goodwill | 58,762 | ||||||
Goodwill, Ending Balance | $ 17,862 | ||||||
Selmec [Member] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired, Total | $ 79,972 | ||||||
Goodwill, Ending Balance | 46,196 | ||||||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | $ 14,902 | ||||||
Business Combination, Liabilities Arising from Contingencies, Changes in Fair Value | (977) | ||||||
Business Combination, Liabilities Arising from Contingencies, Interest Accretion | 2,740 | ||||||
Business Combination, Liabilities Arising from Contingencies, Other Fair Value Re-measurement Adjustments | $ (3,717) |
Note 3 - Acquisitions - Prelimi
Note 3 - Acquisitions - Preliminary Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 01, 2018 | Dec. 31, 2017 |
Goodwill | $ 805,284 | $ 764,655 | $ 721,523 | |
Selmec [Member] | ||||
Accounts receivable | $ 14,302 | |||
Inventories | 8,000 | |||
Prepaid expense and other assets | 4,323 | |||
Property and equipment | 5,572 | |||
Intangible assets | 33,631 | |||
Goodwill | 46,196 | |||
Deferred income taxes | 3,252 | |||
Other assets | 597 | |||
Total assets acquired | 115,873 | |||
Accounts payable | 7,216 | |||
Accrued wages and employee benefits | 397 | |||
Other accrued liabilities | 13,671 | |||
Deferred income taxes | 10,974 | |||
Other long-term liabilities | 3,643 | |||
Net assets acquired | $ 79,972 |
Note 3 - Acquisitions - Unaudit
Note 3 - Acquisitions - Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 563,404 | $ 562,388 | $ 497,581 | $ 400,091 | $ 2,204,336 | $ 2,023,464 | $ 1,679,373 |
As reported | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 75,575 | $ 75,776 | $ 53,261 | $ 33,645 | $ 252,007 | $ 238,257 | $ 157,808 |
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 1.20 | $ 1.11 | $ 0.82 | $ 0.42 | $ 4.03 | $ 3.54 | $ 2.53 |
Pro Forma [Member] | |||||||||||
Net sales | $ 2,206,952 | $ 2,067,737 | $ 1,755,358 | ||||||||
As reported | $ 248,335 | $ 230,379 | $ 151,764 | ||||||||
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 3.97 | $ 3.41 | $ 2.44 |
Note 4 - Redeemable Noncontro_3
Note 4 - Redeemable Noncontrolling Interest (Details Textual) - USD ($) $ in Thousands | Feb. 01, 2019 | Feb. 28, 2019 | Mar. 01, 2016 |
Pramac [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 35.00% | ||
Captiva Energy Solutions [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Pramac [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 65.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 34,253 | ||
Noncontrolling Interest Agreement, Extension of Term | 5 years | ||
Captiva Energy Solutions [Member] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 51.00% | ||
Redeemable Noncontrolling Interest, Equity, Fair Value, Total | $ 3,165 | ||
Business Acquisition, Noncontrolling Interest, Term of Put Option | 5 years | ||
Business Acquisition, Term of Call Option | 5 years |
Note 4 - Redeemable Noncontro_4
Note 4 - Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Redemption value adjustment | $ 1,253 | $ (17,970) | $ 909 | ||
Redeemable Noncontrolling Interest [Member] | |||||
Balance at beginning of period | 61,004 | 43,929 | 33,138 | ||
Noncontrolling interest | 3,165 | [1] | 0 | 1,540 | [2] |
Net income | 75 | 2,214 | 1,631 | ||
Foreign currency translation | (1,764) | (3,109) | 8,529 | ||
Redemption value adjustment | (1,253) | 17,970 | (909) | ||
Balance at end of period | $ 61,227 | $ 61,004 | $ 43,929 | ||
[1] | Represents the noncontrolling interest of Captiva Energy calculated at the date of acquisition, February 1, 2019. | ||||
[2] | Represents the additional noncontrolling interest of Pramac resulting from a common control transaction between Generac Mobile Products S.r.l. and Pramac UK Limited legal entities. |
Note 5 - Derivative Instrumen_3
Note 5 - Derivative Instruments and Hedging Activities (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative Assets (Liabilities), Net Fair Value of Derivative Contracts, Excluding Impact of Credit Risk | $ (10,588) | $ 8,220 | |
Commodity Contract [Member] | |||
Derivative, Number of Instruments Held, Total | 0 | 0 | |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | $ (174) | $ (874) | $ 377 |
Commodity Contract [Member] | Maximum [Member] | |||
Derivative, Remaining Maturity | 18 months | ||
Foreign Exchange Contract [Member] | |||
Derivative, Number of Instruments Held, Total | 43 | 40 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other, Net [Member] | |||
Derivative, Gain (Loss) on Derivative, Net, Total | $ (1,195) | $ (653) | $ 697 |
Foreign Exchange Contract [Member] | Maximum [Member] | |||
Derivative, Remaining Maturity | 12 months | ||
Interest Rate Swap [Member] | |||
Number of New Contracts Entered | 20 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (13,855) | $ 2,924 | $ 3,712 |
Note 5 - Derivative Instrumen_4
Note 5 - Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commodity Contract [Member] | ||
Fair Value of Derivatives | $ 6 | $ (160) |
Foreign Exchange Contract [Member] | ||
Fair Value of Derivatives | 31 | (117) |
Interest Rate Swap [Member] | ||
Fair Value of Derivatives | $ (10,425) | $ 8,307 |
Note 6 - Accumulated Other Co_3
Note 6 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 1,992 | $ (211) |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | (518) | 55 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 802 | |
Reclassification from AOCI, Current Period, Tax, Total | (209) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (18,732) | 3,951 |
Other Comprehensive Income (Loss) before Reclassifications, Tax, Total | $ 4,877 | $ (1,027) |
Note 6 - Accumulated Other Co_4
Note 6 - Accumulated Other Comprehensive Loss - Disclosure of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Balance | $ 761,261 | $ 554,320 | $ 397,179 | ||
Net current-period other comprehensive income (loss) | (1,104) | (2,615) | 18,965 | ||
Balance | 1,032,851 | 761,261 | 554,320 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance | (18,832) | (12,856) | |||
Other comprehensive income (loss) before reclassifications | 2,210 | (5,976) | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Net current-period other comprehensive income (loss) | 2,210 | (5,976) | |||
Balance | (16,622) | (18,832) | (12,856) | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Balance | (10,541) | (10,978) | |||
Other comprehensive income (loss) before reclassifications | 1,474 | [1] | (156) | [2] | |
Amounts reclassified from AOCL | 9,067 | [3] | 593 | [4] | |
Net current-period other comprehensive income (loss) | 10,541 | 437 | |||
Balance | 0 | (10,541) | (10,978) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Balance | 5,560 | 2,636 | |||
Other comprehensive income (loss) before reclassifications | (13,855) | [5] | 2,924 | [6] | |
Amounts reclassified from AOCL | 0 | 0 | |||
Net current-period other comprehensive income (loss) | (13,855) | 2,924 | |||
Balance | (8,295) | 5,560 | 2,636 | ||
AOCI Attributable to Parent [Member] | |||||
Balance | (23,813) | (21,198) | (40,163) | ||
Other comprehensive income (loss) before reclassifications | (10,171) | (3,208) | |||
Amounts reclassified from AOCL | 9,067 | 593 | |||
Net current-period other comprehensive income (loss) | (1,104) | (2,615) | |||
Balance | $ (24,917) | $ (23,813) | $ (21,198) | ||
[1] | Represents unrecognized actuarial gains of $1,992 net of tax effect of $(518), included in the computation of net periodic pension cost for the year ended December 31, 2019. Refer to Note 16, "Benefit Plans," to the consolidated financial statements for additional information. | ||||
[2] | Represents unrecognized actuarial losses of $(211), net of tax benefit of $55, included in the computation of net periodic pension cost for the year ended December 31, 2018. Refer to Note 16, "Benefit Plans," to the consolidated financial statements for additional information. | ||||
[3] | Details of reclassifications from AOCL during 2019 are as follows: Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 | ||||
[4] | Represents actuarial losses of $802, net of tax effect of $(209), amortized to net periodic pension cost for the year ended December 31, 2018. Refer to Note 16, "Benefit Plans," to the consolidated financial statements for additional information. | ||||
[5] | Represents unrealized losses of $(18,732), net of tax effect of $4,877 for the year ended December 31, 2019. | ||||
[6] | Represents unrealized gains of $3,951, net of tax effect of $(1,027) for the year ended December 31, 2018. |
Note 6 - Accumulated Other Co_5
Note 6 - Accumulated Other Comprehensive Loss - Reclassifications from AOCL (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Loss on pension settlement | [1] | $ 10,920 | $ 0 | $ 0 | ||
Total before tax | 319,607 | 311,076 | 203,699 | |||
Income tax impact | 67,299 | 69,856 | $ 44,142 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Amortization of net loss | (802) | |||||
Amounts reclassified from AOCL | (9,067) | [2] | $ (593) | [3] | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Loss on pension settlement | 10,920 | |||||
Amortization of net loss | 843 | |||||
Total before tax | 11,763 | |||||
Income tax impact | (2,696) | |||||
Amounts reclassified from AOCL | $ 9,067 | |||||
[1] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | |||||
[2] | Details of reclassifications from AOCL during 2019 are as follows: Amounts reclassified from AOCL Loss on pension settlement $ 10,920 Amortization of net loss 843 Total before tax 11,763 Income tax impact (2,696 ) Amounts reclassified from AOCL $ 9,067 | |||||
[3] | Represents actuarial losses of $802, net of tax effect of $(209), amortized to net periodic pension cost for the year ended December 31, 2018. Refer to Note 16, "Benefit Plans," to the consolidated financial statements for additional information. |
Note 7 - Segment Reporting (Det
Note 7 - Segment Reporting (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Reportable Segments | 2 | ||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 75.00% | 74.00% | 74.00% |
Geographic Concentration Risk [Member] | Net Assets, Geographic Area [Member] | UNITED STATES | |||
Concentration Risk, Percentage | 80.00% | 80.00% |
Note 7 - Segment Reporting - Ne
Note 7 - Segment Reporting - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 563,404 | $ 562,388 | $ 497,581 | $ 400,091 | $ 2,204,336 | $ 2,023,464 | $ 1,679,373 |
Residential Power Products [Member] | |||||||||||
Net sales | 1,143,723 | 1,042,739 | 870,490 | ||||||||
Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 871,595 | 820,270 | 684,353 | ||||||||
Other Products and Services [Member] | |||||||||||
Net sales | 189,018 | 160,455 | 124,530 | ||||||||
Domestic [Member] | |||||||||||
Net sales | 1,742,898 | 1,566,520 | 1,271,678 | ||||||||
Domestic [Member] | Residential Power Products [Member] | |||||||||||
Net sales | 1,086,019 | 980,707 | 796,237 | ||||||||
Domestic [Member] | Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 513,482 | 461,415 | 372,635 | ||||||||
Domestic [Member] | Other Products and Services [Member] | |||||||||||
Net sales | 143,397 | 124,398 | 102,806 | ||||||||
International [Member] | |||||||||||
Net sales | 461,438 | 456,944 | 407,695 | ||||||||
International [Member] | Residential Power Products [Member] | |||||||||||
Net sales | 57,704 | 62,032 | 74,253 | ||||||||
International [Member] | Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 358,113 | 358,855 | 311,718 | ||||||||
International [Member] | Other Products and Services [Member] | |||||||||||
Net sales | $ 45,621 | $ 36,057 | $ 21,724 |
Note 7 - Segment Reporting - Se
Note 7 - Segment Reporting - Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Total adjusted EBITDA | $ 454,115 | $ 424,552 | $ 317,300 | |
Interest expense | (41,544) | (40,956) | (42,667) | |
Depreciation and amortization | (60,767) | (47,408) | (51,988) | |
Non-cash write-down and other adjustments (1) | [1] | (240) | (3,532) | (2,923) |
Non-cash share-based compensation expense (2) | [2] | (16,694) | (14,563) | (10,205) |
Gain (Loss) on Extinguishment of Debt, Total | [3] | (926) | (1,332) | 0 |
Loss on pension settlement (4) | [4] | (10,920) | 0 | 0 |
Transaction costs and credit facility fees (5) | [5] | (2,724) | (3,883) | (2,145) |
Business optimization expenses (6) | [6] | (1,572) | (952) | (2,912) |
Other | 879 | (850) | (761) | |
Total before tax | 319,607 | 311,076 | 203,699 | |
Assets | 2,665,669 | 2,426,314 | 2,025,965 | |
Depreciation and Amortization | 60,909 | 47,408 | 51,988 | |
Capital expenditures | 60,802 | 47,601 | 33,261 | |
Domestic [Member] | ||||
Total adjusted EBITDA | 428,667 | 388,495 | 282,450 | |
Assets | 2,123,251 | 1,868,554 | 1,612,607 | |
Depreciation and Amortization | 46,145 | 35,586 | 37,962 | |
Capital expenditures | 36,007 | 38,242 | 29,258 | |
International [Member] | ||||
Total adjusted EBITDA | 25,448 | 36,057 | 34,850 | |
Assets | 542,418 | 557,760 | 413,358 | |
Depreciation and Amortization | 14,764 | 11,822 | 14,026 | |
Capital expenditures | $ 24,795 | $ 9,359 | $ 4,003 | |
[1] | Includes certain foreign currency and purchase accounting related adjustments, gains/losses on disposal of assets and unrealized mark-to-market adjustments on commodity contracts. | |||
[2] | Represents share-based compensation expense to account for stock options, restricted stock and other stock awards over their respective vesting periods. | |||
[3] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. | |||
[4] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. | |||
[5] | Represents transaction costs incurred directly in connection with any investment, as defined in our credit agreement, equity issuance, debt issuance or refinancing, together with certain fees relating to our senior secured credit facilities. | |||
[6] | Represents severance and other non-recurring restructuring charges related to the consolidation of certain of our facilities. |
Note 7 - Segment Reporting- Sch
Note 7 - Segment Reporting- Schedule of Error Corrections (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 563,404 | $ 562,388 | $ 497,581 | $ 400,091 | $ 2,204,336 | $ 2,023,464 | $ 1,679,373 |
Adjusted EBITDA | 454,115 | 424,552 | 317,300 | ||||||||
Amounts Adjusted from the Domestic Segment to the International Segment [Member] | |||||||||||
Net sales | 13,851 | 13,805 | 31,828 | ||||||||
Adjusted EBITDA | 984 | 190 | 7,840 | ||||||||
Residential Power Products [Member] | |||||||||||
Net sales | 1,143,723 | 1,042,739 | 870,490 | ||||||||
Residential Power Products [Member] | Amounts Adjusted from the Domestic Segment to the International Segment [Member] | |||||||||||
Net sales | 7,129 | 9,924 | 18,888 | ||||||||
Commercial and Industrial Power Products [Member] | |||||||||||
Net sales | 871,595 | 820,270 | 684,353 | ||||||||
Commercial and Industrial Power Products [Member] | Amounts Adjusted from the Domestic Segment to the International Segment [Member] | |||||||||||
Net sales | 5,724 | 2,651 | 12,940 | ||||||||
Other Products and Services [Member] | |||||||||||
Net sales | 189,018 | 160,455 | 124,530 | ||||||||
Other Products and Services [Member] | Amounts Adjusted from the Domestic Segment to the International Segment [Member] | |||||||||||
Net sales | $ 998 | $ 1,230 | $ 0 |
Note 8 - Balance Sheet Detail_2
Note 8 - Balance Sheet Details (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 18,684 | $ 8,488 |
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 20,158 |
Note 8 - Balance Sheet Detail_3
Note 8 - Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Raw material | $ 328,021 | $ 348,980 |
Work-in-process | 10,387 | 6,971 |
Finished goods | 183,616 | 188,799 |
Total | $ 522,024 | $ 544,750 |
Note 8 - Balance Sheet Detail_4
Note 8 - Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment, gross | $ 478,156 | $ 424,448 |
Accumulated depreciation | (161,180) | (145,519) |
Total | 316,976 | 278,929 |
Land and Land Improvements [Member] | ||
Property and equipment, gross | 18,252 | 15,975 |
Building and Building Improvements [Member] | ||
Property and equipment, gross | 177,079 | 163,161 |
Machinery and Equipment [Member] | ||
Property and equipment, gross | 117,114 | 103,726 |
Dies and Tools [Member] | ||
Property and equipment, gross | 22,040 | 28,198 |
Vehicles [Member] | ||
Property and equipment, gross | 3,955 | 2,070 |
Office Equipment [Member] | ||
Property and equipment, gross | 99,124 | 82,638 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 4,293 | 2,137 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 36,299 | $ 26,543 |
Note 9 - Goodwill and Intangi_3
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 28,644 | $ 22,112 | $ 28,861 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 31,237 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 29,473 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 22,226 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 18,344 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 16,156 |
Note 9 - Goodwill and Intangi_4
Note 9 - Goodwill and Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance | $ 764,655 | $ 721,523 | ||
Acquisitions of businesses, net | 40,836 | 46,788 | ||
Foreign currency translation | (207) | (3,656) | ||
Balance | 805,284 | 764,655 | ||
Goodwill, gross | $ 1,313,088 | $ 1,272,459 | ||
Accumulated impairment | (507,804) | (507,804) | ||
Goodwill | 764,655 | 721,523 | 805,284 | 764,655 |
Domestic [Member] | ||||
Balance | 621,451 | 621,451 | ||
Acquisitions of businesses, net | 37,758 | 0 | ||
Foreign currency translation | 0 | 0 | ||
Balance | 659,209 | 621,451 | ||
Goodwill, gross | 1,162,402 | 1,124,644 | ||
Accumulated impairment | (503,193) | (503,193) | ||
Goodwill | 659,209 | 621,451 | 659,209 | 621,451 |
International [Member] | ||||
Balance | 143,204 | 100,072 | ||
Acquisitions of businesses, net | 3,078 | 46,788 | ||
Foreign currency translation | (207) | (3,656) | ||
Balance | 146,075 | 143,204 | ||
Goodwill, gross | 150,686 | 147,815 | ||
Accumulated impairment | (4,611) | (4,611) | ||
Goodwill | $ 146,075 | $ 143,204 | $ 146,075 | $ 143,204 |
Note 9 - Goodwill and Intangi_5
Note 9 - Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived intangible assets, gross | $ 653,682 | $ 573,795 |
Finite-lived intangible assets, accumulated amortization | (484,269) | (455,626) |
Finite-lived intangible assets, net | 169,413 | 118,169 |
Indefinite-lived tradenames, gross | 128,321 | 128,321 |
Total intangible assets, gross | 782,003 | 702,116 |
Total intangible assets, net | $ 297,734 | 246,490 |
Trade Names [Member] | ||
Finite-lived intangible assets, useful life (Year) | 9 years | |
Finite-lived intangible assets, gross | $ 56,669 | 56,378 |
Finite-lived intangible assets, accumulated amortization | (36,613) | (32,416) |
Finite-lived intangible assets, net | $ 20,056 | 23,962 |
Customer Lists [Member] | ||
Finite-lived intangible assets, useful life (Year) | 12 years | |
Finite-lived intangible assets, gross | $ 369,932 | 368,343 |
Finite-lived intangible assets, accumulated amortization | (314,380) | (307,149) |
Finite-lived intangible assets, net | $ 55,552 | 61,194 |
Patents [Member] | ||
Finite-lived intangible assets, useful life (Year) | 13 years | |
Finite-lived intangible assets, gross | $ 131,086 | 131,030 |
Finite-lived intangible assets, accumulated amortization | (110,554) | (101,060) |
Finite-lived intangible assets, net | $ 20,532 | 29,970 |
Developed Technology Rights [Member] | ||
Finite-lived intangible assets, useful life (Year) | 9 years | |
Finite-lived intangible assets, gross | $ 82,886 | 13,169 |
Finite-lived intangible assets, accumulated amortization | (17,872) | (12,058) |
Finite-lived intangible assets, net | 65,014 | 1,111 |
Computer Software, Intangible Asset [Member] | ||
Finite-lived intangible assets, gross | 1,046 | 1,046 |
Finite-lived intangible assets, accumulated amortization | (1,046) | (1,046) |
Finite-lived intangible assets, net | $ 0 | 0 |
Noncompete Agreements [Member] | ||
Finite-lived intangible assets, useful life (Year) | 4 years | |
Finite-lived intangible assets, gross | $ 12,063 | 3,829 |
Finite-lived intangible assets, accumulated amortization | (3,804) | (1,897) |
Finite-lived intangible assets, net | $ 8,259 | $ 1,932 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Operating Leases, Rent Expense, Net, Total | $ 10,739 | $ 10,845 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 42,024 | |||
Operating Lease, Liability, Total | 42,056 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 0 | |||
Maximum [Member] | ||||
Lessee, Operating Lease and Finance Lease, Remaining Term of Contract | 20 years | |||
Lessee, Operating Lease, Renewal Term | 10 years |
Note 10 - Leases - Leases Cost
Note 10 - Leases - Leases Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease cost | $ 9,647 |
Amortization of ROU assets | 2,531 |
Interest on lease liabilities | 2,227 |
Total lease cost | $ 14,405 |
Note 10 - Leases - Supplement B
Note 10 - Leases - Supplement Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Finance lease ROU assets, gross | $ 29,142 | |||
Accumulated depreciation - finance lease ROU assets | (3,079) | |||
Finance lease ROU assets, net (4) | [1] | 26,063 | ||
Finance lease liabilities - current (5) | 1,830 | [2] | $ 902 | |
Finance lease liabilities - noncurrent (6) | [3] | 24,132 | ||
Total finance lease liabilities | 25,962 | $ 20,171 | ||
Operating Lease and Other Assets [Member] | ||||
Operating lease ROU assets (1) | [4] | 35,950 | ||
Other Accrued Liabilities [Member] | ||||
Operating lease liabilities - current (2) | [5] | 7,231 | ||
Operating Lease and Other Long-term Liabilities [Member] | ||||
Operating lease liabilities - noncurrent (3) | [6] | 29,778 | ||
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | ||||
Total operating lease liabilities | $ 37,009 | |||
[1] | Recorded in the property and equipment, net line | |||
[2] | Recorded in the current portion of long-term borrowings and finance lease obligations line | |||
[3] | Recorded in the long-term borrowings and finance lease obligations line | |||
[4] | Recorded in the operating lease and other assets line | |||
[5] | Recorded in the other accrued liabilities line | |||
[6] | Recorded in the operating lease and other long-term liabilities line |
Note 10 - Leases - Supplement C
Note 10 - Leases - Supplement Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Operating cash flows from operating leases | $ 2,174 | $ 10,125 |
Operating cash flows from finance leases | 471 | 1,864 |
Financing cash flows from finance leases | 976 | 3,237 |
Operating leases | 239 | 4,021 |
Finance leases | $ 632 | $ 8,797 |
Note 10 - Leases - Weighted Ave
Note 10 - Leases - Weighted Average Remaining Lease Term and Discount Rate Information (Details) | Dec. 31, 2019 |
Operating Leases (Year) | 6 years 10 months 24 days |
Finance Leases (Year) | 13 years 10 months 13 days |
Operating Leases | 4.59% |
Finance Leases | 7.83% |
Note 10 - Leases - Maturities o
Note 10 - Leases - Maturities of Lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
2020, finance leases | $ 3,769 | |
2020, operating leases | 9,086 | |
2021, finance leases | 3,352 | |
2021, operating leases | 7,029 | |
2022, finance leases | 3,536 | |
2022, operating leases | 5,472 | |
2023, finance leases | 2,659 | |
2023, operating leases | 4,629 | |
2024 | 2,650 | |
2024 | 4,288 | |
After 2023, finance leases | 29,371 | |
After 2023, operating leases | 14,232 | |
Total minimum lease payments, finance leases | 45,337 | |
Total minimum lease payments, operating leases | 44,736 | |
Interest component | (19,375) | |
Interest component | (7,727) | |
Present value of minimum lease payments, finance leases | 25,962 | $ 20,171 |
Other Accrued Liabilities and Operating Lease and Other Long-term Liabilities [Member] | ||
Operating Lease, Liability, Total | $ 37,009 |
Note 11 - Product Warranty Ob_3
Note 11 - Product Warranty Obligations 1 (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost, Net, Total | $ 6,190 | $ 4,782 | |
Capitalized Contract Cost, Amortization | $ 869 | $ 615 | $ 193 |
Minimum [Member] | |||
Extended Warranty Term | 5 years | ||
Maximum [Member] | |||
Extended Warranty Term | 10 years |
Note 11 - Product Warranty Ob_4
Note 11 - Product Warranty Obligations 2 (Details Textual) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Note 11 - Product Warranty Ob_5
Note 11 - Product Warranty Obligations - Reconciliation of Product Warranty Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of period | $ 41,785 | $ 35,422 | $ 31,695 |
Product warranty reserve assumed in acquisition | 1,062 | 0 | 43 |
Payments | (26,096) | (20,029) | (18,861) |
Provision for warranty issued | 32,060 | 26,910 | 21,347 |
Changes in estimates for pre-existing warranties | 505 | (518) | 1,198 |
Balance at end of period | 49,316 | 41,785 | 35,422 |
Balance at beginning of period | 68,340 | 57,854 | 36,139 |
Deferred revenue contracts issued | 24,483 | 21,440 | 29,262 |
Amortization of deferred revenue contracts | (14,085) | (10,954) | (7,547) |
Balance at end of period | $ 78,738 | $ 68,340 | $ 57,854 |
Note 11 - Product Warranty Ob_6
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue performance obligation | $ 78,738 |
Note 11 - Product Warranty Ob_7
Note 11 - Product Warranty Obligations - Recognition of Deferred Revenue Related to Extended Warranties 2 (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Revenue performance obligation | $ 78,738 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue performance obligation | 15,535 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue performance obligation | 16,798 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue performance obligation | 14,705 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue performance obligation | 11,367 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue performance obligation | $ 20,333 |
Note 11 - Product Warranty Ob_8
Note 11 - Product Warranty Obligations - Deferred Product Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current portion - other accrued liabilities | $ 27,885 | $ 25,396 | ||
Long-term portion - other long-term liabilities | 21,431 | 16,389 | ||
Total | 49,316 | 41,785 | $ 35,422 | $ 31,695 |
Current portion - other accrued liabilities | 15,519 | 13,646 | ||
Long-term portion - other long-term liabilities | 63,219 | 54,694 | ||
Total | $ 78,738 | $ 68,340 | $ 57,854 | $ 36,139 |
Note 12 - Credit Agreements (De
Note 12 - Credit Agreements (Details Textual) $ in Thousands | May 31, 2013USD ($) | Oct. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | May 31, 2017 | May 31, 2015 | Dec. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2014 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | |
Gain (Loss) on Extinguishment of Debt, Total | [1] | $ (926) | $ (1,332) | $ 0 | ||||||||||
Long-term Line of Credit, Total | $ 0 | 0 | 0 | |||||||||||
Short-term Debt, Total | 58,714 | 58,714 | $ 45,583 | |||||||||||
ABL Revolving Credit Facility [Member] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | $ 250,000 | ||||||||||||
Amended ABL Facility [Member] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | 300,000 | ||||||||||||
Debt Issuance Costs, Net, Total | 755 | 755 | ||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | (34) | |||||||||||||
Proceeds from Lines of Credit, Total | $ 50,000 | |||||||||||||
Repayments of Lines of Credit | $ 50,000 | |||||||||||||
Long-term Line of Credit, Total | 30,961 | 30,961 | ||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 268,608 | $ 268,608 | ||||||||||||
Base Rate [Member] | ABL Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | 1.00% | ||||||||||||
Adjusted LIBOR Rate [Member] | ABL Revolving Credit Facility [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | 2.00% | ||||||||||||
Term Loan [Member] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |||||||||||||
Uncommitted Incremental Term Loan Facility | $ 300,000 | |||||||||||||
Net Debt Leverage Ratio Threshold | 3 | 3.75 | 3 | |||||||||||
Debt Issuance Costs, Net, Total | $ 2,346 | 1,247 | $ 1,247 | $ 829 | 2,346 | $ 1,432 | ||||||||
Debt Instrument, Fee Amount | $ 38 | 432 | $ 432 | $ 118 | $ 38 | $ 85 | ||||||||
Secured Leverage Ratio | 3.75 | 1.50 | ||||||||||||
Repayments of Long-term Debt, Total | 49,000 | |||||||||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (926) | $ (1,298) | ||||||||||||
Term Loan [Member] | Base Rate [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | 0.75% | 1.00% | 1.25% | ||||||||||
Term Loan [Member] | Base Rate [Member] | Net Debt Leverage Ratio Threshold [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | 1.75% | 2.00% | 2.25% | ||||||||||
Term Loan [Member] | Adjusted LIBOR Rate [Member] | Net Debt Leverage Ratio Threshold [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||||||||
Term Loan [Member] | LIBOR Floor Rate [Member] | ||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | 0.75% | 0.75% | |||||||||||
[1] | Represents the non-cash write-off of original issue discount and deferred financing costs due to a voluntary prepayment of Term Loan debt. |
Note 12 - Credit Agreements - S
Note 12 - Credit Agreements - Short-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term borrowings | $ 58,714 | $ 45,583 |
ABL Revolving Credit Facility [Member] | ||
Short-term borrowings | 30,961 | 18,459 |
Other Lines of Credit [Member] | ||
Short-term borrowings | $ 27,753 | $ 27,124 |
Note 12 - Credit Agreements - L
Note 12 - Credit Agreements - Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Term loan | $ 830,000 | $ 879,000 | |
Original issue discount and deferred financing costs | (18,048) | (22,440) | |
ABL facility | 0 | 0 | |
Total finance lease liabilities | 25,962 | 20,171 | |
Other | 2,236 | 1,642 | |
Total | 840,150 | 878,373 | |
Less: current portion of debt | 553 | 1,075 | |
Finance lease liabilities - current (5) | 1,830 | [1] | 902 |
Total | $ 837,767 | $ 876,396 | |
[1] | Recorded in the current portion of long-term borrowings and finance lease obligations line |
Note 12 - Credit Agreements - M
Note 12 - Credit Agreements - Maturities of Long-term Borrowings Outstanding (Details) $ in Thousands | Dec. 31, 2019USD ($) |
2020 | $ 553 |
2021 | 1,683 |
2022 | 0 |
2023 | 0 |
After 2023 | 830,000 |
Total | $ 832,236 |
Note 13 - Stock Repurchase Pr_2
Note 13 - Stock Repurchase Program (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 53 Months Ended | ||||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Oct. 31, 2016 | Aug. 31, 2015 | |
Stock Repurchase Program, Authorized Amount | $ 250,000 | $ 250,000 | $ 200,000 | ||||
Stock Repurchase Program, Period in Force | 24 months | ||||||
Payments for Repurchase of Common Stock | $ 0 | $ 25,656 | $ 30,012 | $ 305,547 | |||
Treasury Stock Acquired, Average Cost Per Share | $ 35.21 | ||||||
Treasury Stock [Member] | |||||||
Shares Acquired Under Stock Repurchases Program, Shares | 0 | 560,000 | 844,500 | 8,676,706 |
Note 14 - Earnings Per Share (D
Note 14 - Earnings Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 26,100 | 147,400 |
Note 14 - Earnings Per Share -
Note 14 - Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net income attributable to Generac Holdings Inc. | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 75,575 | $ 75,776 | $ 53,261 | $ 33,645 | $ 252,007 | $ 238,257 | $ 157,808 | |
Redeemable noncontrolling interest redemption value adjustment | 1,253 | (17,970) | 909 | |||||||||
Net income attributable to common shareholders | $ 253,260 | $ 220,287 | $ 158,717 | |||||||||
Weighted average shares, basic (in shares) | 61,926,986 | 61,662,031 | 62,040,704 | |||||||||
Dilutive effect of stock compensation awards (in shares) | [1] | 938,460 | 571,194 | 602,168 | ||||||||
Diluted shares (in shares) | 62,865,446 | 62,233,225 | 62,642,872 | |||||||||
Basic (in dollars per share) | $ 1.14 | $ 1.20 | $ 0.99 | $ 0.77 | $ 1.21 | $ 1.12 | $ 0.83 | $ 0.42 | $ 4.09 | $ 3.57 | $ 2.56 | |
Diluted (in dollars per share) | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 1.20 | $ 1.11 | $ 0.82 | $ 0.42 | $ 4.03 | $ 3.54 | $ 2.53 | |
[1] | Excludes approximately 38,900 and 48,200 stock options for the three and nine months ended September 30, 2018, respectively, as the impact of such awards was anti-dilutive. There were no awards with an anti-dilutive impact for the three and nine months ended September 30, 2019. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Income Tax Assets, Net, Total | $ 2,933 | $ 163 | ||
Deferred Income Tax Liabilities, Net, Total | 96,328 | 71,300 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (778) | (1,015) | $ 2,454 | |
Tax Credit Carry Forward State Research and Development | 8,291 | |||
Tax Credit Carryforward State Manufacturing | 12,747 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 71 | 37 | ||
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ 195 | $ 136 | ||
Tax Cuts and Jobs Act, Change in Tax Rate, Deferred Tax Liability, Income Tax Benefit | $ 28,400 |
Note 15 - Income Taxes - Provis
Note 15 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 41,686 | $ 32,072 | $ 15,753 |
State | 4,211 | 9,639 | 1,775 |
Foreign | 2,660 | 4,546 | 4,585 |
Current | 48,557 | 46,257 | 22,113 |
Deferred: | |||
Federal | 19,393 | 22,225 | 18,213 |
State | 1,390 | 1,910 | 4,139 |
Foreign | (1,263) | 479 | (2,777) |
Deferred | 19,520 | 24,614 | 19,575 |
Change in valuation allowance | (778) | (1,015) | 2,454 |
Provision for income taxes | $ 67,299 | $ 69,856 | $ 44,142 |
Note 15 - Income Taxes - Compon
Note 15 - Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses | $ 21,053 | $ 16,745 |
Deferred revenue | 14,697 | 12,418 |
Inventories | 9,879 | 8,500 |
Pension obligations | 0 | 1,062 |
Stock-based compensation | 7,490 | 5,960 |
Operating loss and credit carryforwards | 28,356 | 25,585 |
Bad debt | 1,094 | 1,363 |
Other | 4,275 | 2,516 |
Valuation allowance | (5,024) | (5,802) |
Total deferred tax assets | 81,820 | 68,347 |
Goodwill and intangible assets | 142,159 | 108,899 |
Depreciation | 27,864 | 25,429 |
Debt refinancing costs | 4,119 | 4,206 |
Prepaid expenses | 1,073 | 950 |
Total deferred tax liabilities | 175,215 | 139,484 |
Net deferred tax liabilities | $ (93,395) | $ (71,137) |
Note 15 - Income Taxes - Unreco
Note 15 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized tax benefit, beginning of period | $ 5,635 | $ 7,122 |
Increase in unrecognized tax benefit for positions taken in prior period | 633 | 0 |
Increase in unrecognized tax benefit for positions taken in current period | 495 | 580 |
Statute of limitation expirations | (43) | (1,818) |
Settlements | 0 | (249) |
Unrecognized tax benefit, end of period | $ 6,720 | $ 5,635 |
Note 15 - Income Taxes - Reconc
Note 15 - Income Taxes - Reconciliation of Statutory and Effective Tax Rates (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
U.S. statutory rate | 21.00% | 21.00% | 35.00% | |
State taxes | 4.30% | 4.70% | 4.10% | |
State tax rate differential | (1.00%) | |||
Research and development credits | (0.80%) | (1.30%) | (1.40%) | |
State credits | (1.00%) | (1.00%) | (0.20%) | |
Share-based compensation | [1] | (0.60%) | (0.50%) | (1.40%) |
Tax Act impact (2) | [2] | (0.20%) | (13.90%) | |
Other | (0.80%) | (0.20%) | (0.90%) | |
Effective tax rate | 21.10% | 22.50% | 21.30% | |
[1] | With the adoption of ASU 2016-09 in 2017, excess tax benefits from equity awards are reflected within the provision for income taxes rather than within the consolidated balance sheet. | |||
[2] | As a result of the Tax Act, we recognized a one-time, non-cash benefit of $28.4 million in the fourth quarter of 2017 primarily from the impact of the revaluation of our net deferred tax liabilities. This non-cash benefit resulted primarily from the Federal rate reduction from 35% to 21%. |
Note 16 - Benefit Plans (Detail
Note 16 - Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Employer Contribution under Medical and Dental Plan | $ 18,290 | $ 14,660 | $ 14,992 | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement, Total | [1] | 10,920 | 0 | 0 | |
Payment for Pension Benefits | 1,017 | 9,400 | |||
Defined Benefit Plan, Amortization of Gain (Loss) | (843) | (802) | (883) | ||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 0 | $ 0 | $ 61,870 | 58,014 | |
Equity and Real Estate [Member] | Minimum [Member] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 75.00% | 75.00% | |||
Equity and Real Estate [Member] | Maximum [Member] | |||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 85.00% | 85.00% | |||
Savings Plan 401(k) [Member] | |||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||||
Defined Contribution Plan Percentage of Eligible Compensation | 6.00% | ||||
Defined Contribution Plan, Cost | $ 4,791 | $ 4,193 | $ 3,600 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement, Total | $ 10,920 | ||||
Defined Benefit Plan, Amortization of Gain (Loss) | (843) | ||||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 0 | $ 0 | $ 61,870 | ||
[1] | Represents pre-tax settlement charges related to the termination of the Company’s domestic pension plan in the fourth quarter of 2019. |
Note 16 - Benefit Plans - Accum
Note 16 - Benefit Plans - Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated benefit obligation at end of period | $ 0 | $ 65,978 | |
Projected benefit obligation at beginning of period | 65,978 | 72,631 | |
Interest cost | 2,401 | 2,575 | $ 2,688 |
Net actuarial (gain) loss | 3,452 | (6,820) | |
Benefits paid | (31,321) | (2,408) | |
Annuities purchased | (40,510) | 0 | |
Projected benefit obligation at end of period | 0 | 65,978 | 72,631 |
Balance at beginning of period | 61,870 | 58,014 | |
Actual return on plan assets | 8,944 | (3,507) | |
Company contributions | 1,017 | 9,771 | |
Benefits paid | (31,321) | (2,408) | |
Annuities purchased | (40,510) | 0 | |
Balance at end of period | 0 | 61,870 | $ 58,014 |
Funded status: accrued pension liability included in other long-term liabilities | 0 | (4,108) | |
Net actuarial loss, net of tax | $ 0 | $ (10,541) |
Note 16 - Benefit Plans - Actua
Note 16 - Benefit Plans - Actuarial Assumptions Used in Benefit Obligation (Details) | Dec. 31, 2018 |
Weighted average discount rate | 4.24% |
Note 16 - Benefit Plans - Compo
Note 16 - Benefit Plans - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest cost | $ 2,401 | $ 2,575 | $ 2,688 |
Expected return on plan assets | (3,500) | (3,525) | (3,011) |
Amortization of net loss | 843 | 802 | 883 |
Loss on pension settlement | 10,920 | 0 | 0 |
Net periodic pension cost (benefit) | $ 10,664 | $ (148) | $ 560 |
Note 16 - Benefit Plans - Weigh
Note 16 - Benefit Plans - Weighted-average Assumptions Used to Determine Net Periodic Pension (Benefit) Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discount Rate | 4.24% | 3.60% | 4.14% |
Expected long-term rate of return on plan assets | 6.60% | 6.19% | 6.58% |
Note 16 - Benefit Plans - Wei_2
Note 16 - Benefit Plans - Weighted-average Asset Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair values of the Pension Plan's assets | $ 0 | $ 61,870 | $ 58,014 |
Asset Category, Percentage | 100.00% | ||
Fixed Income Funds [Member] | |||
Fair values of the Pension Plan's assets | $ 12,257 | ||
Asset Category, Percentage | 20.00% | ||
Domestic Equity [Member] | |||
Fair values of the Pension Plan's assets | $ 30,731 | ||
Asset Category, Percentage | 50.00% | ||
International Equity [Member] | |||
Fair values of the Pension Plan's assets | $ 12,380 | ||
Asset Category, Percentage | 20.00% | ||
Real Estate [Member] | |||
Fair values of the Pension Plan's assets | $ 6,502 | ||
Asset Category, Percentage | 10.00% | ||
Minimum [Member] | Fixed Income Funds [Member] | |||
Asset Category, Target | 15.00% | ||
Minimum [Member] | Domestic Equity [Member] | |||
Asset Category, Target | 36.50% | ||
Minimum [Member] | International Equity [Member] | |||
Asset Category, Target | 17.00% | ||
Minimum [Member] | Real Estate [Member] | |||
Asset Category, Target | 7.00% | ||
Maximum [Member] | Fixed Income Funds [Member] | |||
Asset Category, Target | 25.00% | ||
Maximum [Member] | Domestic Equity [Member] | |||
Asset Category, Target | 61.50% | ||
Maximum [Member] | International Equity [Member] | |||
Asset Category, Target | 25.00% | ||
Maximum [Member] | Real Estate [Member] | |||
Asset Category, Target | 15.00% |
Note 16 - Benefit Plans - Fair
Note 16 - Benefit Plans - Fair Value of Pension Plan's Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair values of the Pension Plan's assets | $ 0 | $ 61,870 | $ 58,014 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair values of the Pension Plan's assets | 51,736 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Fair values of the Pension Plan's assets | 10,134 | ||
Mutual Fund [Member] | |||
Fair values of the Pension Plan's assets | 51,736 | ||
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair values of the Pension Plan's assets | 51,736 | ||
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair values of the Pension Plan's assets | 0 | ||
Other Investment [Member] | |||
Fair values of the Pension Plan's assets | 10,134 | ||
Other Investment [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair values of the Pension Plan's assets | 0 | ||
Other Investment [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair values of the Pension Plan's assets | $ 10,134 | $ 9,700 |
Note 16 - Benefit Plans - Recon
Note 16 - Benefit Plans - Reconciliation of Level 3 Assets (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Balance at beginning of period | $ 58,014 |
Balance at end of period | 61,870 |
Fair Value, Inputs, Level 3 [Member] | |
Balance at end of period | 10,134 |
Other Investment [Member] | |
Balance at end of period | 10,134 |
Other Investment [Member] | Fair Value, Inputs, Level 3 [Member] | |
Balance at beginning of period | 9,700 |
Purchases | 3,805 |
Redemptions | (3,795) |
Realized gains | 424 |
Balance at end of period | $ 10,134 |
Note 17 - Share Plans (Details
Note 17 - Share Plans (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 13, 2019 | Feb. 10, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 9,100,000 | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 52.07 | $ 43.88 | $ 40.13 | ||
Proceeds from Stock Options Exercised | $ 9,395 | $ 5,614 | $ 6,951 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 6,438 | $ 5,659 | $ 5,892 | ||
Board of Directors Chairman [Member] | |||||
Deferred Compensation Arrangement with Individual, Shares Issued | 22,544 | 33,419 | 34,095 | ||
Deferred Compensation Arrangement with Individual, Shares Vested | 22,544 | 33,419 | 22,762 | ||
Deferred Compensation Arrangement with Individual, Shares Granted | 16,604 | 22,675 | 11,333 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 1,391 | $ 1,718 | $ 1,133 | ||
Share-based Payment Arrangement, Option [Member] | |||||
Share-based Payment Arrangement, Expense | $ 5,597 | $ 4,998 | $ 4,503 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 32,211 | 63,817 | 9,033 | ||
Proceeds from Stock Options Exercised | $ 9,395 | $ 5,614 | $ 6,951 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | 3,360 | $ 3,846 | $ 4,301 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 10,649 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 6 months | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 55,953 | 38,186 | 39,500 | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 3,078 | $ 1,812 | $ 1,591 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 16,165 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Performance Measurement, Period | 3 years | ||||
Restricted Stock and Performance Shares [Member] | |||||
Share-based Payment Arrangement, Expense | $ 11,097 | $ 9,565 | $ 5,702 | ||
Minimum [Member] | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 52.07 | $ 43.88 | $ 40.12 | ||
Performance Share Award, Percentage | 0.00% | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 45.29 | $ 48.98 | |||
Performance Share Award, Percentage | 200.00% | ||||
Equity Incentive Plan (Plan) [Member] | |||||
Share-based Payment Arrangement, Expense | $ 15,738 | $ 14,563 | $ 10,205 | ||
The 2019 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,700,000 | ||||
Share-based Payment Arrangement, Expense | $ 956 |
Note 17 - Share Plans - Weighte
Note 17 - Share Plans - Weighted-average Assumptions used in the Black-Scholes-Merton Option Pricing Model (Details) - Share-based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted average grant date fair value (in dollars per share) | $ 19.33 | $ 17.86 | $ 16.84 |
Expected stock price volatility | 33.00% | 37.00% | 40.00% |
Risk free interest rate | 2.52% | 2.60% | 1.92% |
Expected annual dividend per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
Expected life of options (Year) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Note 17 - Share Plans - Summary
Note 17 - Share Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding, number of options (in shares) | 1,521,167 | 1,472,130 | 1,482,964 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 37.70 | $ 33.11 | $ 27.49 | |
Outstanding, weighted average remaining contractual term (Year) | 6 years 10 months 24 days | 7 years | 7 years 3 months 18 days | 7 years 6 months |
Outstanding, aggregate intrinsic value | $ 93,242 | $ 19,212 | $ 25,281 | $ 23,840 |
Granted, number of options (in shares) | 369,779 | 366,231 | 346,421 | |
Granted, weighted average exercise price (in dollars per share) | $ 52.07 | $ 43.88 | $ 40.13 | |
Exercised, number of options (in shares) | (263,250) | (267,909) | (287,375) | |
Exercised, weighted average exercise price (in dollars per share) | $ 30.75 | $ 19.90 | $ 10.58 | |
Forfeited, number of options (in shares) | (35,010) | (49,285) | (69,880) | |
Forfeited, weighted average exercise price (in dollars per share) | $ 43.79 | $ 43.34 | $ 41.12 | |
Outstanding, number of options (in shares) | 1,592,686 | 1,521,167 | 1,472,130 | 1,482,964 |
Outstanding, weighted average exercise price (in dollars per share) | $ 42.04 | $ 37.70 | $ 33.11 | $ 27.49 |
Exercisable, number of options (in shares) | 726,817 | |||
Exercisable, weighted average exercise price (in dollars per share) | $ 37.78 | |||
Exercisable, weighted average remaining contractual term (Year) | 5 years 3 months 18 days | |||
Exercisable, aggregate intrinsic value | $ 45,649 |
Note 17 - Share Plans - Summa_2
Note 17 - Share Plans - Summary of Restricted Share Awards Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-vested (in shares) | 425,996 | 392,276 | 361,403 |
Non-vested (in dollars per share) | $ 40.50 | $ 37.77 | $ 38.18 |
Granted (in shares) | 265,255 | 208,803 | 211,769 |
Granted (in dollars per share) | $ 62.38 | $ 44.49 | $ 39.91 |
Vested (in shares) | (184,628) | (128,433) | (133,796) |
Vested (in dollars per share) | $ 38.78 | $ 39.03 | $ 40.60 |
Forfeited (in shares) | (14,986) | (46,650) | (47,100) |
Forfeited (in dollars per share) | $ 44.23 | $ 39.43 | $ 42.48 |
Non-vested (in shares) | 491,637 | 425,996 | 392,276 |
Non-vested (in dollars per share) | $ 52.84 | $ 40.50 | $ 37.77 |
Note 18 - Commitments and Con_2
Note 18 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amount Financed by Dealers | $ 49.6 | $ 47.2 |
Note 19 - Quarterly Financial_3
Note 19 - Quarterly Financial Information (Unaudited) - Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net sales | $ 590,932 | $ 601,135 | $ 541,916 | $ 470,353 | $ 563,404 | $ 562,388 | $ 497,581 | $ 400,091 | $ 2,204,336 | $ 2,023,464 | $ 1,679,373 |
Gross profit | 222,222 | 217,517 | 195,838 | 162,175 | 204,306 | 200,334 | 178,473 | 141,927 | 797,752 | 725,040 | 584,786 |
Operating income | 104,508 | 105,556 | 90,926 | 71,173 | 108,848 | 106,519 | 85,467 | 56,347 | 372,163 | 357,181 | 250,634 |
Net income attributable to Generac Holdings Inc. | $ 69,614 | $ 75,574 | $ 61,958 | $ 44,861 | $ 75,575 | $ 75,776 | $ 53,261 | $ 33,645 | $ 252,007 | $ 238,257 | $ 157,808 |
Net income attributable to common shareholders per common share - basic: (in dollars per share) | $ 1.14 | $ 1.20 | $ 0.99 | $ 0.77 | $ 1.21 | $ 1.12 | $ 0.83 | $ 0.42 | $ 4.09 | $ 3.57 | $ 2.56 |
Net income attributable to common shareholders per common share - diluted: (in dollars per share) | $ 1.12 | $ 1.18 | $ 0.98 | $ 0.76 | $ 1.20 | $ 1.11 | $ 0.82 | $ 0.42 | $ 4.03 | $ 3.54 | $ 2.53 |
Note 20 - Valuation and Quali_3
Note 20 - Valuation and Qualifying Accounts - Schedule of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
Balance at Beginning of Year | $ 4,873 | $ 4,805 | $ 5,642 | |
Additions Charged to Earnings | 3,086 | 1,941 | 346 | |
Charges to Reserve, Net | [1] | (1,033) | (2,123) | (1,842) |
Reserves Assumed in Acquisition | 42 | 250 | 659 | |
Balance at End of Year | 6,968 | 4,873 | 4,805 | |
SEC Schedule, 12-09, Reserve, Inventory [Member] | ||||
Balance at Beginning of Year | 23,140 | 15,987 | 13,031 | |
Additions Charged to Earnings | 4,821 | 10,004 | 6,164 | |
Charges to Reserve, Net | [1] | (3,867) | (3,720) | (4,036) |
Reserves Assumed in Acquisition | 199 | 869 | 828 | |
Balance at End of Year | 24,293 | 23,140 | 15,987 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
Balance at Beginning of Year | 5,802 | 6,817 | 4,362 | |
Additions Charged to Earnings | 0 | 478 | 2,455 | |
Charges to Reserve, Net | [1] | 0 | 0 | 0 |
Reserves Assumed in Acquisition | (778) | (1,493) | 0 | |
Balance at End of Year | $ 5,024 | $ 5,802 | $ 6,817 | |
[1] | Deductions from the allowance for doubtful accounts equal accounts receivable written off against the allowance, less recoveries. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |