Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'GENERAC HOLDINGS INC. | ' | ' |
Entity Central Index Key | '0001474735 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $2,175,882,000 |
Entity Common Stock, Shares Outstanding | ' | 68,779,944 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $150,147 | $108,023 |
Restricted cash | 6,645 | 0 |
Accounts receivable, less allowance for doubtful accounts of $2,658 at December 31, 2013 and $1,166 at December 31, 2012 | 164,907 | 134,978 |
Inventories | 300,253 | 225,817 |
Deferred income taxes | 26,869 | 48,687 |
Prepaid expenses and other assets | 5,358 | 5,048 |
Total current assets | 654,179 | 522,553 |
Property and equipment, net | 146,390 | 104,718 |
Customer lists, net | 42,764 | 37,823 |
Patents, net | 62,418 | 70,302 |
Other intangible assets, net | 4,447 | 5,783 |
Deferred financing costs, net | 20,051 | 13,987 |
Trade names, net | 173,196 | 158,831 |
Goodwill | 608,287 | 552,943 |
Deferred income taxes | 85,104 | 136,754 |
Other assets | 1,369 | 153 |
Total assets | 1,798,205 | 1,603,847 |
Current liabilities: | ' | ' |
Short-term borrowings | 9,575 | 12,550 |
Accounts payable | 109,238 | 94,543 |
Accrued wages and employee benefits | 26,564 | 19,435 |
Other accrued liabilities | 92,997 | 86,081 |
Current portion of long-term borrowings and capital lease obligations | 12,471 | 82,250 |
Total current liabilities | 250,845 | 294,859 |
Long-term borrowings and capital lease obligations | 1,175,349 | 799,018 |
Other long-term liabilities | 54,940 | 46,342 |
Total liabilities | 1,481,134 | 1,140,219 |
Stockholders' equity: | ' | ' |
Common stock, par value $0.01, 500,000,000 shares authorized, 68,603,909 and 68,295,960 shares issued at December 31, 2013 and 2012, respectively | 688 | 683 |
Additional paid-in capital | 421,672 | 743,349 |
Treasury stock, at cost, 163,458 and 0 shares, respectively | -6,571 | 0 |
Excess purchase price over predecessor basis | -202,116 | -202,116 |
Retained earnings (accumulated deficit) | 105,813 | -63,792 |
Accumulated other comprehensive loss | -2,415 | -14,496 |
Total stockholders' equity | 317,071 | 463,628 |
Total liabilities and stockholders' equity | $1,798,205 | $1,603,847 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Accounts receivable, allowance for doubtful accounts | $2,658 | $1,166 |
Stockholders' equity: | ' | ' |
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) | 68,767,367 | 68,295,960 |
Treasury stock, shares (in shares) | 163,458 | 0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net sales | $1,485,765 | $1,176,306 | $791,976 |
Costs of goods sold | 916,205 | 735,906 | 497,322 |
Gross profit | 569,560 | 440,400 | 294,654 |
Operating expenses: | ' | ' | ' |
Selling and service | 107,515 | 101,448 | 77,776 |
Research and development | 29,271 | 23,499 | 16,476 |
General and administrative | 55,490 | 46,031 | 30,012 |
Amortization of intangibles | 25,819 | 45,867 | 48,020 |
Trade name write-down | 0 | 0 | 9,389 |
Total operating expenses | 218,095 | 216,845 | 181,673 |
Income from operations | 351,465 | 223,555 | 112,981 |
Other (expense) income: | ' | ' | ' |
Interest expense | -54,435 | -49,114 | -23,718 |
Loss on extinguishment of debt | -15,336 | -14,308 | -377 |
Investment income | 91 | 79 | 110 |
Costs related to acquisition | -1,086 | -1,062 | -875 |
Other, net | -1,983 | -2,798 | -1,155 |
Total other expense, net | -72,749 | -67,203 | -26,015 |
Income before provision for income taxes | 278,716 | 156,352 | 86,966 |
Provision (benefit) for income taxes | 104,177 | 63,129 | -237,677 |
Net income | 174,539 | 93,223 | 324,643 |
Net income per common share - basic: (in dollars per share) | $2.56 | $1.38 | $4.84 |
Weighted average common shares outstanding - basic: (in shares) | 68,081,632 | 67,360,632 | 67,130,356 |
Net income per common share - diluted: (in dollars per share) | $2.51 | $1.35 | $4.79 |
Weighted average common shares outstanding - diluted: (in shares) | 69,667,529 | 69,193,138 | 67,797,371 |
Dividends declared per share (in dollars per share) | $5 | $6 | $0 |
Other comprehensive income (loss): | ' | ' | ' |
Amortization of unrealized loss on interest rate swaps | 2,381 | 2,082 | 0 |
Foreign currency translation adjustment | 1,238 | -34 | 0 |
Net unrealized gain (loss) on derivatives | 774 | 365 | -683 |
Pension liability adjustment | 7,688 | -1,552 | -4,922 |
Other comprehensive income (loss) | 12,081 | 861 | -5,605 |
Comprehensive income | $186,620 | $94,084 | $319,038 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Excess Purchase Price Over Predecessor Basis [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | $675 | $1,133,918 | $0 | ($202,116) | ($481,658) | ($9,752) | $441,067 |
Balance (in shares) at Dec. 31, 2010 | 67,524,596 | ' | 0 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | -683 | -683 |
Amortization of unrealized loss on interest rate swaps, Net of Tax | ' | ' | ' | ' | ' | ' | 0 |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | 0 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | 1 | -63 | 0 | 0 | 0 | 0 | -62 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 128,216 | ' | 0 | ' | ' | ' | ' |
Excess tax benefits from equity awards | 0 | 200 | 0 | 0 | 0 | 0 | 200 |
Share based compensation | 0 | 8,646 | 0 | 0 | 0 | 0 | 8,646 |
Share based compensation (in shares) | 0 | ' | 0 | ' | ' | ' | ' |
Pension liability adjustment, net of tax | 0 | 0 | 0 | 0 | 0 | -4,922 | -4,922 |
Net income | 0 | 0 | 0 | 0 | 324,643 | 0 | 324,643 |
Balance at Dec. 31, 2011 | 676 | 1,142,701 | 0 | -202,116 | -157,015 | -15,357 | 768,889 |
Balance (in shares) at Dec. 31, 2011 | 67,652,812 | ' | 0 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 365 | 365 |
Amortization of unrealized loss on interest rate swaps, Net of Tax | 0 | 0 | 0 | 0 | 0 | 2,082 | 2,082 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | -34 | -34 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | 7 | -6,431 | 0 | 0 | 0 | 0 | -6,424 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 643,148 | ' | 0 | ' | ' | ' | ' |
Excess tax benefits from equity awards | 0 | 4,588 | 0 | 0 | 0 | 0 | 4,588 |
Share based compensation | 0 | 10,780 | 0 | 0 | 0 | 0 | 10,780 |
Share based compensation (in shares) | 0 | ' | 0 | ' | ' | ' | ' |
Dividends declared | 0 | -408,289 | 0 | 0 | 0 | 0 | -408,289 |
Pension liability adjustment, net of tax | 0 | 0 | 0 | 0 | 0 | -1,552 | -1,552 |
Net income | 0 | 0 | 0 | 0 | 93,223 | 0 | 93,223 |
Balance at Dec. 31, 2012 | 683 | 743,349 | 0 | -202,116 | -63,792 | -14,496 | 463,628 |
Balance (in shares) at Dec. 31, 2012 | 68,295,960 | ' | 0 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on interest rate swaps, net of tax | 0 | 0 | 0 | 0 | 0 | 774 | 774 |
Amortization of unrealized loss on interest rate swaps, Net of Tax | 0 | 0 | 0 | 0 | 0 | 2,381 | 2,381 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | 1,238 | 1,238 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price | 5 | -8,587 | 0 | 0 | 0 | 0 | -8,582 |
Common stock issued under equity incentive plans, net of shares withheld for employee taxes and strike price (in shares) | 471,407 | ' | 0 | ' | ' | ' | ' |
Treasury stock purchases | 0 | 0 | -6,571 | 0 | 0 | 0 | -6,571 |
Treasury stock purchases (in shares) | 0 | ' | -163,458 | ' | ' | ' | ' |
Excess tax benefits from equity awards | 0 | 11,553 | 0 | 0 | 0 | 0 | 11,553 |
Share based compensation | 0 | 12,368 | 0 | 0 | 0 | 0 | 12,368 |
Share based compensation (in shares) | 0 | ' | 0 | ' | ' | ' | ' |
Dividends declared | 0 | -337,011 | 0 | 0 | -4,934 | 0 | -341,945 |
Pension liability adjustment, net of tax | 0 | 0 | 0 | 0 | 0 | 7,688 | 7,688 |
Net income | 0 | 0 | 0 | 0 | 174,539 | 0 | 174,539 |
Balance at Dec. 31, 2013 | $688 | $421,672 | ($6,571) | ($202,116) | $105,813 | ($2,415) | $317,071 |
Balance (in shares) at Dec. 31, 2013 | 68,767,367 | ' | -163,458 | ' | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' |
Unrealized gain (loss) on interest rate swaps, tax | $462 | $236 | ($440) |
Amortization of unrealized loss on interest rate swaps, tax | 109 | 95 | ' |
Pension liability adjustment, tax | $5,060 | ($1,001) | ($3,173) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating activities | ' | ' | ' |
Numerator- net income | $174,539 | $93,223 | $324,643 |
Adjustment to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 10,955 | 8,293 | 8,103 |
Amortization of intangible assets | 25,819 | 45,867 | 48,020 |
Trade name write-down | 0 | 0 | 9,389 |
Amortization of original issue discount | 2,074 | 1,598 | 0 |
Amortization of deferred finance costs | 2,698 | 2,161 | 1,986 |
Amortization of unrealized loss on interest rate swaps | 2,381 | 2,082 | 0 |
Loss on extinguishment of debt | 15,336 | 14,308 | 377 |
Provision for losses on accounts receivable | 1,037 | 204 | -7 |
Deferred income taxes | 82,675 | 62,429 | -238,170 |
Loss on disposal of property and equipment | 370 | 261 | 10 |
Share-based compensation expense | 12,368 | 10,780 | 8,646 |
Net changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -5,257 | -137 | -22,235 |
Inventories | -52,488 | -31,656 | -11,224 |
Other assets | -10,902 | -8,416 | -6,834 |
Accounts payable | -5,847 | -3,898 | 18,517 |
Accrued wages and employee benefits | 6,248 | 3,168 | 6,516 |
Other accrued liabilities | 9,491 | 39,915 | 22,175 |
Excess tax benefits from equity awards | -11,553 | -4,588 | -200 |
Net cash provided by operating activities | 259,944 | 235,594 | 169,712 |
Investing activities | ' | ' | ' |
Proceeds from sale of property and equipment | 80 | 91 | 14 |
Expenditures for property and equipment | -30,770 | -22,392 | -12,060 |
Proceeds from sale of business, net | 2,254 | 0 | 0 |
Acquisition of business, net of cash acquired | -116,113 | -47,044 | -83,907 |
Net cash used in investing activities | -144,549 | -69,345 | -95,953 |
Financing activities | ' | ' | ' |
Proceeds from short-term borrowings | 16,007 | 23,018 | 0 |
Proceeds from long-term borrowings | 1,200,000 | 1,455,614 | 0 |
Repayments of short-term borrowings | -18,982 | -23,000 | 0 |
Repayments of long-term borrowings and capital lease obligations | -901,184 | -1,175,124 | -59,355 |
Payment of debt issuance costs | -22,376 | -25,691 | 0 |
Cash dividends paid | -343,429 | -404,332 | 0 |
Taxes paid related to the net share settlement of equity awards | -15,020 | -6,425 | -371 |
Excess tax benefits from equity awards | 11,553 | 4,588 | 200 |
Proceeds from exercise of stock options | 32 | 0 | 310 |
Net cash used in financing activities | -73,399 | -151,352 | -59,216 |
Effect of exchange rate changes on cash and cash equivalents | 128 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 42,124 | 14,897 | 14,543 |
Cash and cash equivalents at beginning of period | 108,023 | 93,126 | 78,583 |
Cash and cash equivalents at end of period | 150,147 | 108,023 | 93,126 |
Cash paid during the period [Abstract] | ' | ' | ' |
Interest | 55,828 | 33,076 | 24,264 |
Income taxes | $25,821 | $2,811 | $437 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
Generac Holdings Inc. (the Company) owns all of the common stock of Generac Acquisition Corp. (GAC), which in turn, owns all of the common stock of Generac Power Systems, Inc. (the Subsidiary and the Borrower). The Company is a leading designer and manufacturer of a wide range of power generation equipment and other engine powered products serving the residential, light-commercial, industrial and construction markets. | |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | ' | |||||||||||||||||||||||||||||||||||||
2. Significant Accounting Policies | ||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. | ||||||||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||||||||||||||||||||||||||||
Restricted Cash | ||||||||||||||||||||||||||||||||||||||
Restricted cash represents cash transferred to an escrow account for the future settlement of certain earn-out obligations associated with the Tower Light acquisition. See Note 3 - Acquisitions for additional details. | ||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||||||||||||||||||
The Company maintains the majority of its cash in one commercial bank in multiple operating and investment accounts. Balances on deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. Balances in excess of FDIC limits are uninsured. | ||||||||||||||||||||||||||||||||||||||
One customer accounted for approximately 11% and 9% of accounts receivable at December 31, 2013 and December 31, 2012, respectively. No one customer accounted for greater than 6%, 7% and 10%, respectively, of net sales during the years ended December 31, 2013, 2012, or 2011. | ||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||||||||||||||
Inventories are stated at the lower of cost or market, with cost determined generally using the first-in, first-out method. | ||||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
Land improvements | 10 – 15 | |||||||||||||||||||||||||||||||||||||
Buildings and improvements | 10 – 40 | |||||||||||||||||||||||||||||||||||||
Leasehold improvements | 7 – 20 | |||||||||||||||||||||||||||||||||||||
Machinery and equipment | 5 – 20 | |||||||||||||||||||||||||||||||||||||
Dies and tools | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Vehicles | 3 – 5 | |||||||||||||||||||||||||||||||||||||
Office equipment | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Customer Lists, Patents, and Other Intangible Assets | ||||||||||||||||||||||||||||||||||||||
The following table summarizes intangible assets by major category as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Weighted | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
Amortization | Cost | Accumulated | Amortized Cost | Cost | Accumulated Impairment | Amortized Cost | ||||||||||||||||||||||||||||||||
Years | Impairment | |||||||||||||||||||||||||||||||||||||
Indefinite lived intangible assets Trade names | $ | 182,585 | $ | (9,389 | ) | $ | 173,196 | $ | 168,220 | $ | (9,389 | ) | $ | 158,831 | ||||||||||||||||||||||||
Cost | Accumulated | Amortized Cost | Cost | Accumulated | Amortized Cost | |||||||||||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||||||||||||
Finite lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Trade names | 0 | $ | 8,775 | $ | (8,775 | ) | $ | - | $ | 8,775 | $ | (8,775 | ) | $ | - | |||||||||||||||||||||||
Customer lists | 7 | 294,627 | (251,863 | ) | 42,764 | 273,355 | (235,532 | ) | 37,823 | |||||||||||||||||||||||||||||
Patents | 15 | 118,921 | (56,503 | ) | 62,418 | 118,921 | (48,619 | ) | 70,302 | |||||||||||||||||||||||||||||
Unpatented technology | 12 | 13,169 | (9,064 | ) | 4,105 | 13,165 | (7,696 | ) | 5,469 | |||||||||||||||||||||||||||||
Software | 8 | 1,046 | (912 | ) | 134 | 1,014 | (779 | ) | 235 | |||||||||||||||||||||||||||||
Non-compete/other | 2 | 345 | (137 | ) | 208 | 113 | (34 | ) | 79 | |||||||||||||||||||||||||||||
Total finite lived intangible assets | $ | 436,883 | $ | (327,254 | ) | $ | 109,629 | $ | 415,343 | $ | (301,435 | ) | $ | 113,908 | ||||||||||||||||||||||||
Amortization of intangible assets was $25,819, $45,867 and $48,020 in 2013, 2012 and 2011, respectively. During the fourth quarter of 2011, the Company wrote down a certain trade name indefinite-lived intangible asset. See the Goodwill and Other Indefinite-Lived Intangible Assets section for further discussion. Estimated amortization expense each year for the five years subsequent to December 31, 2013 is as follows: 2014, $21,058; 2015, $19,718; 2016, $17,892; 2017, $14,581; 2018, $10,228. | ||||||||||||||||||||||||||||||||||||||
Debt Issuance Costs | ||||||||||||||||||||||||||||||||||||||
Direct and incremental costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the terms of the related credit agreements. Debt discounts 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. Approximately $4,772, $3,759, and $1,986 of deferred financing costs and original issue discounts were amortized to interest expense during fiscal years 2013, 2012 and 2011, respectively. Estimated amortization expense each year for the five years subsequent to December 31, 2013 is as follows: 2014, $4,919; 2015, $5,033; 2016, $5,165; 2017, $5,273; 2018, $5,143. | ||||||||||||||||||||||||||||||||||||||
Long-Lived Assets | ||||||||||||||||||||||||||||||||||||||
The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and trade names). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of an asset, a loss is recognized for the difference between the fair value and carrying value of the asset. Such analyses necessarily involve significant judgments. | ||||||||||||||||||||||||||||||||||||||
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 amortized, but is reviewed for impairment on an annual basis and between annual tests if indicators of impairment are present. The Company evaluates goodwill for impairment annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further goodwill impairment testing is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value (i.e., excess of liabilities over assets), qualitative factors are evaluated to determine whether it is necessary to perform the second step of the goodwill impairment test. | ||||||||||||||||||||||||||||||||||||||
The Company performed the required annual impairment tests for fiscal years 2013, 2012 and 2011 and found no impairment of goodwill. There can be no assurance that future goodwill impairment tests will not result in a charge to earnings. | ||||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||||||||
Impairment | Goodwill | Impairment | Goodwill | |||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | $ | 1,050,666 | $ | (503,193 | ) | $ | 547,473 | ||||||||||||||||||||||||
Acquisition of business, net | 56,605 | — | 56,605 | 5,470 | — | 5,470 | ||||||||||||||||||||||||||||||||
Sale of business, net | (1,261 | ) | — | (1,261 | ) | — | — | — | ||||||||||||||||||||||||||||||
Balance at end of year | $ | 1,111,480 | $ | (503,193 | ) | $ | 608,287 | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | ||||||||||||||||||||||||
The Company acquired two businesses during fiscal 2013 for a combined purchase price of $122,391, net of cash acquired, which resulted in additional goodwill of $57,044. Separately, the Ottomotores purchase price allocation was finalized during the second quarter of 2013, which resulted in an adjustment to goodwill of $(439). The Company acquired two businesses during fiscal 2012 for a combined purchase price of $47,044, net of cash acquired, which resulted in additional goodwill of $5,545. Separately, the Magnum purchase price allocation was finalized during the third quarter of 2012, which resulted in an adjustment to goodwill of $(75). | ||||||||||||||||||||||||||||||||||||||
Other indefinite-lived intangible assets consist of trade names. The Company tests the carrying value of these trade names by comparing the assets fair value to its carrying value. Fair value was measured using a relief-from-royalty approach, which assumes the fair value of the trade name is the discounted cash flows of the amount that would be paid had the Company not owned the trade name and instead licensed the trade name from another company. The Company conducts its annual impairment tests for indefinite-lived intangible assets on October 31st of each year. | ||||||||||||||||||||||||||||||||||||||
The Company performed the required annual impairment tests for fiscal years 2013 and 2012 and found no impairment of indefinite-lived trade names. During the fourth quarter of 2011, the Company decided to strategically transition certain products to their more widely known Generac brand. Based on this decision, the Company recorded a $9,389 non-cash trade name impairment charge as of October 31, 2011 which primarily related to the write down of the impacted trade name to net realizable value. There can be no assurance that future impairment tests will not result in a charge to earnings. | ||||||||||||||||||||||||||||||||||||||
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 that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies, as appropriate, in making this assessment. | ||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||||||||||||||
Sales, net of estimated returns and allowances, are recognized upon shipment of product to the customer, which is generally when title passes, the Company has no further obligations, and the customer is required to pay. The Company, at the request of certain customers, will warehouse inventory billed to the customer but not delivered. Unless all revenue recognition criteria have been met, the Company does not recognize revenue on these transactions until the customers take possession of the product. The funds collected on product warehoused for these customers are recorded as a customer advance until the customer takes possession of the product and the Company’s obligation to deliver the goods is completed. Customer advances are included in accrued liabilities in the accompanying consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||
The Company provides for certain estimated sales promotion, discounts and incentive expenses which are recognized as a reduction of sales. | ||||||||||||||||||||||||||||||||||||||
Historically, product returns, whether in the normal course of business or resulting from repurchases made under a floor plan financing program, have not been material. | ||||||||||||||||||||||||||||||||||||||
Shipping and Handling Costs | ||||||||||||||||||||||||||||||||||||||
Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||
Advertising and Co-Op Advertising | ||||||||||||||||||||||||||||||||||||||
Expenditures for advertising, included in selling and service expenses in the accompanying consolidated statements of comprehensive income, are expensed as incurred. Total expenditures for advertising were $19,910, $13,360, and $11,742 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Research and Development | ||||||||||||||||||||||||||||||||||||||
The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $29,271, $23,499, and $16,476 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||||||||||||||||||||||||||||
Foreign currency balance sheet accounts are translated into dollars at the rates of exchange in effect at fiscal year-end. 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 a separate component of Stockholders’ Equity. | ||||||||||||||||||||||||||||||||||||||
Gains and losses from foreign currency transactions are included in net income in the Company’s consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss includes foreign currency translation adjustments, pension liability adjustments and unrealized gains (losses) on certain cash flow hedges. The components of accumulated other comprehensive loss, net of tax, at December 31, 2013 and 2012 were: | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | 1,204 | $ | (34 | ) | |||||||||||||||||||||||||||||||||
Pension liability, net of tax of $886 and $(4,174) | (4,393 | ) | (12,081 | ) | ||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $462 and $(109) | 774 | (2,381 | ) | |||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (2,415 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||||||||
The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | (34 | ) | $ | (12,081 | ) | $ | (2,381 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 1,238 | 6,994 | 774 | 9,006 | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | 694 | 2,381 | 3,075 | ||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income | 1,238 | 7,688 | 3,155 | 12,081 | ||||||||||||||||||||||||||||||||||
Ending Balance | $ | 1,204 | $ | (4,393 | ) | $ | 774 | $ | (2,415 | ) | ||||||||||||||||||||||||||||
The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from | ||||||||||||||||||||||||||||||||||||||
other accumulated | ||||||||||||||||||||||||||||||||||||||
comprehensive loss for the | ||||||||||||||||||||||||||||||||||||||
year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Affected line item in the statement where net income is presented | ||||||||||||||||||||||||||||||||||||
Amortization of unrealized loss on interest rate swaps | ||||||||||||||||||||||||||||||||||||||
Gross | $ | (2,490 | ) | $ | (2,177 | ) | Interest expense | |||||||||||||||||||||||||||||||
Tax benefit | 109 | 95 | ||||||||||||||||||||||||||||||||||||
Net of tax | (2,381 | ) | (2,082 | ) | ||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension actuarial losses | ||||||||||||||||||||||||||||||||||||||
Gross | (1,108 | ) | (909 | ) | -1 | |||||||||||||||||||||||||||||||||
Tax benefit | 414 | 356 | ||||||||||||||||||||||||||||||||||||
Net of tax | (694 | ) | (553 | ) | ||||||||||||||||||||||||||||||||||
-1 | These actuarial losses are included in the computation of net periodic pension cost. See Note 9 – Benefit Plans for additional details. | |||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||
The Company believes the carrying amount of its financial instruments (cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term borrowings), excluding long-term borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of long-term borrowings, including amounts classified as current, which have an aggregate carrying value of $1,197,000 was approximately $1,199,993 (level 2) at December 31, 2013, as calculated based on independent valuations whose inputs and significant value drivers are observable. | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
ASC 820-10 Fair Value Measurements and Disclosures among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the pronouncement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value are based on the market approach, which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | ||||||||||||||||||||||||||||||||||||||
Assets and (liabilities) measured at fair value on a recurring basis are as follows: | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,236 | $ | – | $ | 1,236 | ||||||||||||||||||||||||||||||||
Commodity contracts | $ | 69 | $ | – | $ | 69 | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 56 | $ | – | $ | 56 | ||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (2,973 | ) | $ | – | $ | (2,973 | ) | ||||||||||||||||||||||||||||||
Commodity Contracts | $ | 111 | $ | – | $ | 111 | ||||||||||||||||||||||||||||||||
The fair value of derivatives designated as hedging instruments is included in other assets in the consolidated balance sheet as of December 31, 2013. The fair value of derivatives not designated as hedging instruments is included in other assets and other current liabilities in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
The valuation techniques used to measure the fair value of derivative contracts classified as level 2, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts above considers the Company’s credit risk in accordance with ASC 820-10. Excluding the impact of credit risk, the fair value of derivatives at December 31, 2013 and 2012 was $1,385 (asset) and $2,936 (liability), respectively, and this represents the amount the Company or other counterparty would need to pay to exit the agreements on this date. | ||||||||||||||||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 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, which requires all derivative instruments be reported on the consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in commodity prices, foreign currencies, and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. | ||||||||||||||||||||||||||||||||||||||
Commodities | ||||||||||||||||||||||||||||||||||||||
The primary objectives of the commodity risk management activities are to understand and mitigate the impact of potential price fluctuations on the Company’s financial results and its economic well-being. While the Company’s risk management objectives and strategies will be driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in can be treated as “hedges” from an accounting perspective or otherwise result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of commodity derivatives to protect against exposure resulting from significant price fluctuations. | ||||||||||||||||||||||||||||||||||||||
The Company primarily utilizes commodity contracts with maturities of less than 12 months. These are intended to offset the effect of price fluctuations on actual inventory purchases. Outstanding commodity forward contracts in place to hedge the Company’s projected commodity purchases were as follows. | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $ | 2,169 | 6/30/14 | |||||||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 10/29/12 | 1/1/13 | $ | 3,472 | 9/30/13 | |||||||||||||||||||||||||||||||||
As of December 31, 2011: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional A | Termination Date | ||||||||||||||||||||||||||||||||||
mount | ||||||||||||||||||||||||||||||||||||||
Copper | 9/19/11 | 10/1/11 | $ | 4,533 | 6/30/12 | |||||||||||||||||||||||||||||||||
Copper | 9/28/11 | 10/1/11 | $ | 1,935 | 6/30/12 | |||||||||||||||||||||||||||||||||
Total losses or gains recognized in the consolidated statements of operations on commodity contracts were a loss of $605, a gain of $386, and a loss of $861 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Foreign Currencies | ||||||||||||||||||||||||||||||||||||||
The Company is exposed to foreign currency exchange risk as a result of transactions in other currencies. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with foreign currency purchases in the normal course of business. Contracts typically have maturities of one year or less. There were no foreign currency hedge contracts outstanding as of December 31, 2012 or 2011. As of December 31, 2013, we had the following foreign currency contracts outstanding (in thousands): | ||||||||||||||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||||||||||||||
United States Dollar (USD) | 650 | |||||||||||||||||||||||||||||||||||||
British Pound Sterling (GBP) | 4,000 | |||||||||||||||||||||||||||||||||||||
Interest Rates | ||||||||||||||||||||||||||||||||||||||
The Company has two interest rate swap agreements outstanding as of December 31, 2013 with an aggregate notional amount of $200,000. The Company had two interest rate swap agreements outstanding as of December 31, 2012 with an aggregate notional amount of $300,000. | ||||||||||||||||||||||||||||||||||||||
In 2010, the Company entered into two interest rate swap agreements and had formally documented all relationships between interest rate hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The first was entered into on January 21, 2010. The effective date of this swap was July 1, 2010 with a notional amount of $200,000, a fixed LIBOR rate of 1.73% and an expiration date of July 1, 2012. The second was entered into on June 29, 2010. The effective date of that swap was October 1, 2010 with a notional amount of $100,000, a fixed LIBOR rate of 1.025% and an expiration date of October 1, 2012. The Company entered into two interest rate swap agreements on April 1, 2011. The effective date of the first swap was July 1, 2012 with a notional amount of $200,000, a fixed LIBOR rate of 1.905% and an expiration date of July 1, 2013. The effective date of the second swap was October 1, 2012 with a notional amount of $100,000, a fixed LIBOR rate of 2.22% and an expiration date of October 1, 2013. Due to the incorporation of a new interest rate floor provision in the Term Loan Credit Agreement, which constituted a change in critical terms, the Company concluded that as of May 30, 2012, the outstanding swaps would no longer be highly effective in achieving offsetting changes in cash flows during the periods the hedges were designated. As a result, the Company was required to de-designate the hedges as of May 30, 2012. Beginning May 31 2012, the effective portion of the swaps prior to the change (i.e. amounts previously recorded in Accumulated Other Comprehensive Loss) were amortized into interest expense over the period of the originally designated hedged transactions which had various termination dates through October 2013. Future changes in fair value of these swaps were immediately recognized in the consolidated statements of comprehensive income as interest expense. | ||||||||||||||||||||||||||||||||||||||
In 2013, the Company entered into two interest rate swap agreements and had formally documented all relationships between interest rate hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. These interest rate swap agreements qualify as cash flow hedges. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss). The cash flows of the swaps are recognized as adjustments to interest expense each period. The ineffective portion of the derivatives’ change in fair value, if any, is immediately recognized in earnings. The Company assesses on an ongoing basis whether derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The swaps were both entered into on October 23, 2013. The effective dates of the swaps are July 1, 2014 with a notional amount of $100,000 each and a fixed LIBOR rate of 1.737% and 1.742% with expiration dates of July 1, 2018. | ||||||||||||||||||||||||||||||||||||||
The following presents the impact of interest rate swaps, commodity contracts and currency contracts on the consolidated statement of comprehensive income for the year ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) | Location of gain (loss) | Amount of loss reclassified from AOCI into net income (loss) for the twelve months ended December 31, | Amount of gain (loss) | |||||||||||||||||||||||||||||||||||
recognized in AOCI for | recognized in net income (loss) on ineffective portion of hedges | recognized in net income | ||||||||||||||||||||||||||||||||||||
the twelve months ended | (loss) on hedges | |||||||||||||||||||||||||||||||||||||
December 31, | (ineffective portion) for | |||||||||||||||||||||||||||||||||||||
twelve months ended | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | $ | 774 | $ | 365 | $ | (683 | ) | Interest Expense | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Commodity and foreign currency contracts | $ | - | $ | - | $ | - | Cost of goods sold | $ | - | $ | - | $ | - | $ | (661 | ) | $ | 386 | $ | (861 | ) | |||||||||||||||||
Interest rate swaps (2) | $ | - | $ | - | $ | - | Interest Expense | $ | (2,381 | ) | $ | (2,082 | ) | $ | - | $ | 2,973 | $ | 1,695 | $ | - | |||||||||||||||||
-1 | Amounts recorded for the twelve months ended December 31, 2012 and 2011 relate to the interest rate swap agreements outstanding prior to May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
-2 | Amounts recorded for the twelve months ended December 31, 2013 and 2012 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
Stock-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. | ||||||||||||||||||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||||||||||||||||
The Company operates in and reports as a single operating segment, which is the design and manufacture of a wide range of power products. Net sales are predominantly generated through the sale of generators and other engine powered products through various distribution channels. The Company manages and evaluates its operations as one segment primarily due to similarities in the nature of the products, production processes and methods of distribution. The Company’s sales in the United States represent approximately 88%, 93%, and 95% of total sales for the years ended December 31, 2013, 2012 and 2011, respectively. Approximately 90%, 98% and 100% of the Company’s identifiable long-lived assets are located in the United States as of December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential power products and commercial & industrial power products are each a similar class of products based on similar power output and end customer usage. The breakout of net sales between residential, commercial & industrial, and other products is as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Residential power products | $ | 843,727 | $ | 705,444 | $ | 491,016 | ||||||||||||||||||||||||||||||||
Commercial & industrial power products | 569,890 | 410,341 | 250,270 | |||||||||||||||||||||||||||||||||||
Other | 72,148 | 60,521 | 50,690 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,485,765 | $ | 1,176,306 | $ | 791,976 | ||||||||||||||||||||||||||||||||
New Accounting Pronouncements | ||||||||||||||||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company’s adoption of this standard did not have a material impact on the Company’s financial condition or results of operations. | ||||||||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes ("ASU 2013-10"). ASU 2013-10 permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the United States Treasury rate and London Interbank Offered Rate ("LIBOR"). In addition, the restriction on using different benchmark rates for similar hedges is removed. The provisions of ASU 2013-10 are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on the Company’s financial condition or results of operations. | ||||||||||||||||||||||||||||||||||||||
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 believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2013 | |
Acquisitions [Abstract] | ' |
Acquisitions | ' |
3. Acquisitions | |
Acquisition of Tower Light | |
On August 1, 2013, a subsidiary of the Company acquired all of the shares of Tower Light SRL and its wholly-owned subsidiaries (collectively, “Tower Light”) for a purchase price, net of cash acquired and inclusive of estimated earn-out payments, of $85,812. Headquartered outside Milan, Italy, Tower Light is a leading developer and supplier of mobile light towers throughout Europe, the Middle East and Africa. Tower Light has built a leading market position in the equipment rental markets by leveraging its broad product offering and strong global distribution network in over 50 countries worldwide. | |
The net cash paid at closing of $80,239 included a cash deposit of $6,645 into an escrow account to fund future earn-out payments required by the purchase agreement, which is recorded as restricted cash on the Company’s consolidated balance sheet. The difference between the total escrow deposit and the Company’s estimated future earn-out payments is reflected as an addition in the purchase price. The total earn-out payment is estimated to be $12,500. Additionally, the cash paid at closing included an estimate of acquired working capital. This estimate was finalized during third quarter of 2013, resulting in a $300 decrease to the purchase price. This acquisition was funded solely by existing cash. | |
The Company recorded a preliminary purchase price allocation during the third quarter of 2013 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $67,900 of intangible assets, including approximately $38,400 of goodwill, as of the acquisition date. Based on revised purchase accounting estimates related to earn-out projections, an additional $9,328 of goodwill was recorded during the fourth quarter of 2013. The goodwill ascribed to this acquisition is not deductible for tax purposes. The accompanying consolidated financial statements include the results of Tower Light from August 1, 2013 through December 31, 2013. This acquisition is not material to the Company’s consolidated financial statements. | |
Acquisition of Ottomotores | |
On December 8, 2012, a subsidiary of the Company acquired all of the shares of Ottomotores UK Limited and its affiliates, including the operations of Ottomotores Mexico and Ottomotores Brazil (collectively, “Ottomotores”). Ottomotores was founded in 1950 and is located in Mexico City, Mexico and Curitiba, Brazil. Ottomotores is a leading manufacturer in the Mexican market for industrial diesel gensets ranging in size from 15kW to 3,250kW and is a significant market participant throughout all of Latin America. | |
The cash paid at closing of $44,769, net of cash acquired, included an estimate of acquired working capital. This estimate was finalized during the second quarter of 2013 to reflect actual working capital acquired as well as cash acquired and debt assumed, resulting in a $6,278 decrease to the purchase price. This acquisition was funded solely by existing cash. | |
The Company recorded a preliminary purchase price allocation during the fourth quarter of 2012 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $16,100 of intangible assets, including approximately $5,050 of goodwill, as of the acquisition date. The purchase price allocation was finalized during the second quarter of 2013, resulting in an additional $2,590 of intangible assets and a $439 decrease to goodwill. The goodwill ascribed to this acquisition is not deductible for tax purposes. This acquisition is not material to the Company’s consolidated financial statements. | |
Acquisition of Magnum | |
On October 3, 2011, a subsidiary of the Company acquired substantially all of the assets and assumed certain liabilities of Magnum Products, LLC and certain of its affiliates (collectively, Magnum) for a purchase price, net of cash acquired and inclusive of estimated earn-out payments, of approximately $85,490. Magnum is a supplier of generator powered light towers, mobile generators and combination power units for a variety of industries and specialties including construction, energy, mining, government, military, and special events. Its products are distributed through international, national and regional equipment rental companies, equipment dealers and construction companies. | |
The purchase price of $85,490 consisted of $83,907 paid in cash at closing and $1,583 recorded as an estimated liability to the sellers for contingent consideration based upon future performance of a particular product line currently in development. The cash paid at closing included an estimate of acquired working capital. This estimate was finalized during the third quarter of 2012 to reflect actual working capital acquired, resulting in a $75 decrease to the purchase price. This acquisition was funded solely by existing cash. | |
The Company recorded a purchase price allocation during the fourth quarter of 2011 based upon its estimates of the fair value of the acquired assets and assumed liabilities. As a result, the Company recorded approximately $56,107 of intangible assets, including approximately $20,337 of goodwill, as of the acquisition date. The purchase price allocation was finalized during the third quarter of 2012, resulting in a $75 decrease to goodwill. The goodwill ascribed to this acquisition is deductible for tax purposes. This acquisition is not material to the Company’s consolidated financial statements. | |
The Company is responsible for the estimates of the fair values of the acquired assets and assumed liabilities described in this Note 3. |
Balance_Sheet_Details
Balance Sheet Details | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Details [Abstract] | ' | ||||||||
Balance Sheet Details | ' | ||||||||
4. Balance Sheet Details | |||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw material | $ | 183,787 | $ | 168,459 | |||||
Work-in-process | 9,620 | 8,580 | |||||||
Finished goods | 113,404 | 55,777 | |||||||
Reserves for excess and obsolescence | (6,558 | ) | (6,999 | ) | |||||
Total | $ | 300,253 | $ | 225,817 | |||||
As of December 31, 2013 and 2012, inventories totaling $6,504 and $4,401, respectively, were on consignment at customer locations. | |||||||||
Property and equipment consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 7,416 | $ | 6,511 | |||||
Buildings and improvements | 96,161 | 68,934 | |||||||
Machinery and equipment | 54,847 | 42,581 | |||||||
Dies and tools | 17,071 | 15,406 | |||||||
Vehicles | 1,979 | 1,872 | |||||||
Office equipment | 17,304 | 12,993 | |||||||
Leasehold improvements | 2,229 | 1,393 | |||||||
Construction in progress | 9,724 | 3,439 | |||||||
Gross property and equipment | 206,731 | 153,129 | |||||||
Accumulated depreciation | (60,341 | ) | (48,411 | ) | |||||
Total | $ | 146,390 | $ | 104,718 | |||||
Other accrued liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued commissions | $ | 10,254 | $ | 7,467 | |||||
Accrued interest | 10,907 | 15,809 | |||||||
Product warranty obligations – short term | 26,080 | 26,284 | |||||||
Deferred revenue related to extended warranty – short term | 3,325 | 2,468 | |||||||
Accrued dividends for unvested restricted stock | 2,472 | 3,957 | |||||||
Accrued volume rebates | 9,418 | 7,991 | |||||||
Accrued customer prepayments | 3,393 | 6,569 | |||||||
Other accrued selling expenses | 8,659 | 7,753 | |||||||
Earn-out obligations | 12,518 | - | |||||||
Other accrued liabilities | 5,971 | 7,783 | |||||||
Total | $ | 92,997 | $ | 86,081 | |||||
Other long-term liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued pension costs | $ | 10,385 | $ | 23,174 | |||||
Product warranty obligations – long term | 7,654 | 9,827 | |||||||
Deferred revenue related to extended warranty – long term | 19,767 | 11,006 | |||||||
Deferred tax liabilities | 14,966 | - | |||||||
Other long-term liabilities | 2,168 | 2,335 | |||||||
Total | $ | 54,940 | $ | 46,342 |
Product_Warranty_Obligations
Product Warranty Obligations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Product Warranty Obligations [Abstract] | ' | ||||||||||||
Product Warranty Obligations | ' | ||||||||||||
5. Product Warranty Obligations | |||||||||||||
The Company records a liability for product warranty obligations 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 Company also sells extended warranty coverage for certain product. The sales of extended warranties are recorded as deferred revenue, and we recognize the revenue from sales of extended warranties over the life of the contracts. The Company’s product warranty obligations, including deferred revenue related to extended warranty coverage, are included in other accrued liabilities and other long-term liabilities in the consolidated balance sheets. | |||||||||||||
The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to our extended warranty coverage: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 36,111 | $ | 24,643 | $ | 17,835 | |||||||
Payments | (18,484 | ) | (19,801 | ) | (17,562 | ) | |||||||
Provision for warranties issued | 33,707 | 34,173 | 21,356 | ||||||||||
Changes in estimates for pre-existing warranties | (17,600 | ) | (2,904 | ) | 3,014 | ||||||||
Balance at end of year | $ | 33,734 | $ | 36,111 | $ | 24,643 | |||||||
The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 13,474 | $ | 9,737 | $ | 4,643 | |||||||
Deferred revenue on extended warranty contracts sold | 11,998 | 5,547 | 6,368 | ||||||||||
Amortization of deferred revenue on extended warranty contracts | (2,380 | ) | (1,810 | ) | (1,274 | ) | |||||||
Balance at end of year | $ | 23,092 | $ | 13,474 | $ | 9,737 | |||||||
Product warranty obligations and warranty related deferred revenues are included in the balance sheets as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Product warranty liability | |||||||||||||
Current portion - other accrued liabilities | $ | 26,080 | $ | 26,284 | |||||||||
Long-term portion - other long-term liabilities | 7,654 | 9,827 | |||||||||||
Total | $ | 33,734 | $ | 36,111 | |||||||||
Deferred revenue related to extended warranty | |||||||||||||
Current portion - other accrued liabilities | $ | 3,325 | $ | 2,468 | |||||||||
Long-term portion - other long-term liabilities | 19,767 | 11,006 | |||||||||||
Total | $ | 23,092 | $ | 13,474 |
Credit_Agreements
Credit Agreements | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Credit Agreements [Abstract] | ' | ||||||||
Credit Agreements | ' | ||||||||
6. Credit Agreements | |||||||||
The revolving credit facilities and credit agreements discussed below were outstanding for the periods described below. The Company refinanced this debt on February 9, 2012, amended and restated its credit agreements on May 30, 2012, and further amended and restated its credit agreements on May 31, 2013. | |||||||||
Short-term borrowings are included in the balance sheets as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
ABL facility | $ | - | $ | - | |||||
Other lines of credit, as described below | 9,575 | 12,550 | |||||||
Total | $ | 9,575 | $ | 12,550 | |||||
Long-term borrowings are included in the balance sheets as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Term loan | $ | 1,197,000 | $ | 897,750 | |||||
Discount on debt | (12,735 | ) | (16,482 | ) | |||||
Capital lease obligation | 2,529 | - | |||||||
Other | 1,026 | - | |||||||
Total | 1,187,820 | 881,268 | |||||||
Less current portion of debt | 12,286 | 82,250 | |||||||
Less current portion of capital lease obligation | 185 | - | |||||||
Total | $ | 1,175,349 | $ | 799,018 | |||||
Maturities of long-term borrowings outstanding at December 31, 2013, are as follows: | |||||||||
Year | |||||||||
2014 | $ | 12,750 | |||||||
2015 | 12,621 | ||||||||
2016 | 12,229 | ||||||||
2017 | 12,205 | ||||||||
After 2018 | 1,150,750 | ||||||||
Total | $ | 1,200,555 | |||||||
On February 9, 2012, a subsidiary of the Company (“Borrower”) entered into a credit agreement (“Credit Agreement”) with certain commercial banks and other lenders. The Credit Agreement provided for borrowings under a $150,000 revolving credit facility, a $325,000 tranche A term loan facility and a $250,000 tranche B term loan facility. The revolving credit facility and tranche A term loan facility were scheduled to mature in February 2017 and the tranche B term loan facility was scheduled to mature in February 2019. Proceeds received by the Company from loans made under the Credit Agreement were used to repay in full all outstanding borrowings under the former credit agreement, dated as of November 10, 2006, as amended from time to time, and for general corporate purposes. The Company’s former credit agreement was comprised of a revolving credit facility and a first-lien term loan which were scheduled to mature in November 2012 and November 2013, respectively. | |||||||||
On May 30, 2012, the Borrower amended and restated its then existing Credit Agreement by entering into a new credit agreement (“Term Loan Credit Agreement”) and a new revolving credit agreement (“ABL Credit Agreement”) with certain commercial banks and other lenders. The Term Loan Credit Agreement provided for a $900,000 term loan B credit facility and a $125,000 uncommitted incremental term loan facility (“Term Loan”). The ABL Credit Agreement provided for borrowings under a $150,000 senior secured ABL revolving credit facility. The size of the ABL revolving credit facility could be increased by $50,000 pursuant to an uncommitted incremental credit facility. The Term Loan Credit Agreement was scheduled to mature in May 2018 and the ABL Credit Agreement was scheduled to mature in May 2017. Proceeds received by the Company from loans made under the Term Loan Credit Agreement, together with cash on hand, were used to repay amounts outstanding under the Company’s previous Credit Agreement and pay a special cash dividend of $6.00 per share on the Company’s common stock. | |||||||||
The Term Loan Credit Agreement was scheduled to amortize in equal installments of 0.25% of the original principal amount on the first day of April, July, October and January commencing on October 1, 2012 until the maturity date of the Term Loan. The interest rate on the Term Loan was based upon either a base rate plus an applicable margin of 4.00% or adjusted LIBOR rate plus an applicable margin of 5.00%, subject to a LIBOR floor of 1.25%. | |||||||||
On May 31, 2013, the Borrower amended and restated its then existing “Term Loan Credit Agreement” by entering into a new term loan credit agreement (“New Term Loan Credit Agreement”) with certain commercial banks and other lenders. The New Term Loan Credit Agreement provides for a $1,200,000 term loan B credit facility (the “New Term Loan”) and includes a $300,000 uncommitted incremental term loan facility. The New Term Loan Credit Agreement matures on May 31, 2020. Proceeds from the New Term Loan were used to repay amounts outstanding under the Company’s previous Term Loan Credit Agreement and to fund a special cash dividend of $5.00 per share on the Company’s common stock (refer to Note 12 – Special Cash Dividend for additional details). Remaining funds from the New Term Loans were used for general corporate purposes and to pay related financing fees and expenses. | |||||||||
The New Term Loan is guaranteed by all of the Borrower’s wholly-owned domestic restricted subsidiaries, GAC and the Company, and is secured by associated collateral agreements which pledge a first priority lien on virtually all of the Borrower’s assets, including fixed assets and intangibles, and the assets of the guarantors (other than the Company), other than all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, which will be secured by a second priority lien. | |||||||||
The New Term Loan amortizes in equal installments of 0.25% of the original principal amount of the New Term Loan payable on the first day of April, July, October and January commencing on October 1, 2013 until the final maturity date of the New Term Loan on May 31, 2020. The New Term Loan initially bears interest at rates based upon either a base rate plus an applicable margin of 1.75% or adjusted LIBOR rate plus an applicable margin of 2.75%, subject to a LIBOR floor of 0.75%. Beginning in the second quarter of 2014, the applicable margin related to base rate loans can be reduced to 1.50% and the applicable margin related to LIBOR rate loans can be reduced to 2.50%, in each case, if the Borrower’s net debt leverage ratio falls below 3.00 to 1.00. | |||||||||
The New Term Loan Credit Agreement contains restrictions on the Borrower’s ability to pay distributions and dividends (but which permitted the payment of the special cash dividend described in Note 12 – Special Cash Dividend below.). Payments can be made by the Borrower to the Company or other parent companies for certain expenses such as operating expenses in the ordinary course, fees and expenses related to any debt or equity offering and to pay franchise or similar taxes. Dividends can be used to repurchase equity interests, subject to limitations in certain circumstances. Additionally, the New Term Loan Credit Agreement restricts the aggregate amount of dividends and distributions that can be paid and, in certain circumstances, requires pro forma compliance with certain fixed charge coverage ratios or gross leverage ratios, as applicable, in order to pay certain dividends and distributions. The New Term Loan Credit Agreement also contains other affirmative and negative covenants that, among other things, limit the incurrence of additional indebtedness, liens on property, sale and leaseback transactions, investments, loans and advances, mergers or consolidations, asset sales, acquisitions, transactions with affiliates, prepayments of certain other indebtedness and modifications of our organizational documents. The New Term Loan Credit Agreement does not contain any financial maintenance covenants. | |||||||||
The New Term Loan Credit Agreement contains customary events of default, including, among others, nonpayment of principal, interest or other amounts, failure to perform covenants, inaccuracy of representations or warranties in any material respect, cross-defaults with other material indebtedness, certain undischarged judgments, the occurrence of certain ERISA or bankruptcy or insolvency events or the occurrence of a change in control (defined in the New Term Loan Credit Agreement). A bankruptcy or insolvency event of default will cause the obligations under the New Term Loan Credit Agreement to automatically become immediately due and payable. | |||||||||
Concurrent with the closing of the New Term Loan Credit Agreement, on May 31, 2013, the Borrower amended its existing ABL Credit Agreement (the “New ABL Credit Agreement”). The amendment provides for a one year extension of the maturity date in respect of the $150,000 senior secured ABL revolving credit facility provided under the ABL Credit Agreement (the “ABL Facility”). The extended maturity date of the ABL Facility is May 31, 2018. | |||||||||
Borrowings under the ABL Facility are guaranteed by all of the Borrower’s wholly-owned domestic restricted subsidiaries and GAC, and are secured by associated collateral agreements which pledge a first priority lien on all cash, trade accounts receivable, inventory, and other current assets and proceeds thereof, and a second priority lien on all other assets, including fixed assets and intangibles of the Borrower, certain domestic subsidiaries of the Borrower and the guarantors (other than the Company). | |||||||||
Borrowings under the ABL Facility continue to bear interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. The New ABL Credit Agreement requires the Borrower to maintain a minimum consolidated fixed charge coverage ratio of 1.0x, tested on a quarterly basis, when Availability plus the amount of Qualified Cash (up to $5,000) (as defined in the New ABL Credit Agreement) under the ABL Facility is less than the greater of (i) 10.0% of the Line Cap (as defined in the New ABL Credit Agreement) and (ii) $10,000. The New ABL Credit Agreement also contains covenants and events of default substantially similar to those in the New Term Loan Credit Agreement, as described above. As of December 31, 2013, no amounts were outstanding under the ABL Facility. As of December 31, 2013, the Company had $150,147 of unrestricted cash and cash equivalents and $147,492 of availability under the ABL Facility, net of outstanding letters of credit. | |||||||||
On February 11, 2013, the Company made an $80,000 voluntary prepayment of debt with available cash on hand that was applied to future principal amortizations on the Term Loan Credit Agreement. As a result, the Company wrote off $1,839 of original issue discount and capitalized debt issuance costs during the first quarter of 2013. On May 2, 2013, the Company made an additional $30,000 voluntary prepayment of existing debt with available cash on hand. As a result, the Company wrote off $924 of original issue discount and capitalized debt issuance costs during the second quarter of 2013. | |||||||||
In connection with the February 9, 2012 refinancing and in accordance with ASC 470-50, Debt Modifications and Extinguishments, the Company capitalized $10,409 of new debt issuance costs, recorded $1,386 of fees paid to creditors as a debt discount, and expensed $1,407 of transaction fees. The Company evaluated on a lender by lender basis if the debt related to returning lenders was significantly modified or not, resulting in the write-off of $2,902 in unamortized debt issuance costs relating to the former credit agreement. Amounts expensed are recorded as a loss on extinguishment of debt in the consolidated statement of comprehensive income for the year ended December 31, 2012. | |||||||||
In connection with the May 30, 2012 refinancing and in accordance with ASC 470-50, Debt Modifications and Extinguishments, the Company capitalized $15,309 of new debt issuance costs, recorded $18,000 of fees paid to creditors as a debt discount, and expensed $801 of transaction fees. The Company evaluated on a lender by lender basis if the debt related to returning lenders was significantly modified or not, resulting in the write-off of $9,198 in unamortized debt issuance costs relating to the Credit Agreement. Amounts expensed are recorded as a loss on extinguishment of debt in the consolidated statement of comprehensive income for the year ended ended December 31, 2012. | |||||||||
In connection with the May 31, 2013 refinancing and in accordance with ASC 470-50, Debt Modifications and Extinguishments, the Company capitalized $21,824 of new debt issuance costs, recorded $13,797 of fees paid to creditors as a debt discount, and expensed $7,100 of transaction fees. The Company evaluated on a lender by lender basis if the debt related to returning lenders was significantly modified or not, resulting in the write-off of $5,473 in unamortized debt issuance costs and original issue discount relating to the previous Term Loan Credit Agreement and ABL Credit Agreement. Amounts expensed are recorded as a loss on extinguishment of debt in the condensed consolidated statement of comprehensive income for the year ended December 31, 2013. The Company amortizes both the capitalized debt issuance costs and the original issue discount on its loans under the effective interest method. | |||||||||
As of December 31, 2013 and December 31, 2012, short-term borrowings consisted primarily of borrowings by our foreign subsidiaries on local lines of credit, which totaled $9,575 and $12,550, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
7. Earnings Per Share | |||||||||||||
Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Except where the result would be anti-dilutive, dilutive earnings per share is calculated by assuming the vesting of unvested restricted stock and the exercise of stock options, as well as their related income tax benefits. The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator- net income | $ | 174,539 | $ | 93,223 | $ | 324,643 | |||||||
Denominator- weighted average shares | |||||||||||||
Basic | 68,081,632 | 67,360,632 | 67,130,356 | ||||||||||
Dilutive effect of stock compensation awards (1) | 1,585,897 | 1,832,506 | 667,015 | ||||||||||
Diluted | 69,667,529 | 69,193,138 | 67,797,371 | ||||||||||
Net income per share | |||||||||||||
Basic | $ | 2.56 | $ | 1.38 | $ | 4.84 | |||||||
Diluted | $ | 2.51 | $ | 1.35 | $ | 4.79 | |||||||
(1) Excludes approximately 10,300 and 363,000 stock options and restricted stock awards for the twelve month periods ended December 31, 2013 and December 31, 2012, respectively, as the impact of such awards was anti-dilutive. There were no anti-dilutive awards for the twelve month period ended December 31, 2011. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
The Company’s provision for income taxes consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 48,287 | $ | 34,170 | $ | 14,312 | |||||||
State | 5,648 | 3,854 | 1,885 | ||||||||||
Foreign | 2,214 | 81 | – | ||||||||||
56,149 | 38,105 | 16,197 | |||||||||||
Deferred: | |||||||||||||
Federal | 42,003 | 21,972 | 15,632 | ||||||||||
State | 5,523 | 3,048 | 1,887 | ||||||||||
Foreign | 167 | 25 | – | ||||||||||
47,693 | 25,045 | 17,519 | |||||||||||
Change in valuation allowance | 335 | (21 | ) | (271,393 | ) | ||||||||
Provision for income taxes | $ | 104,177 | $ | 63,129 | $ | (237,677 | ) | ||||||
The Company is the taxpaying entity and files a consolidated federal income tax return. Currently, the Company is not under examination by any major taxing jurisdiction to which the Company is subject. As of December 31, 2013, due to the carryforward of unutilized net operating losses and research and development credits, the Company is subject to U.S. Federal income tax examinations for the tax years 2006 through 2013, and to state income tax examinations for the tax years 2006 through 2013. In addition, the Company is subject to audit by various foreign taxing jurisdictions for the tax years 2007 through 2013. | |||||||||||||
Interest and penalties are recorded separately from income tax expense, as part of pre-tax book income. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
The Company was in a three year cumulative net loss position, due primarily to a 2008 goodwill and tradename impairment write-off, and therefore had not considered expected future taxable income in analyzing the realizability of the deferred tax assets as of December 31, 2010, resulting in a full valuation allowance against these net deferred tax assets. In the fourth quarter of 2011, the Company was no longer in a three-year cumulative loss position and, as part of the normal assessment of the future realization of the net deferred tax assets, determined that a valuation allowance was no longer required. As a result, the valuation allowance was reversed in the fourth quarter of 2011 and the Company recorded as a tax benefit of $271,393. | |||||||||||||
Significant components of deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Goodwill and intangible assets | $ | 74,992 | $ | 125,457 | |||||||||
Accrued expenses | 24,263 | 26,606 | |||||||||||
Deferred revenue | 4,413 | 3,503 | |||||||||||
Inventories | 4,483 | 2,544 | |||||||||||
Pension obligations | 4,043 | 9,064 | |||||||||||
Stock-based compensation | 6,609 | 6,408 | |||||||||||
Operating loss and credit carryforwards | 976 | 24,915 | |||||||||||
Interest rate swaps | - | 1,119 | |||||||||||
Other | 2,089 | 36 | |||||||||||
Valuation allowance | (1,021 | ) | (806 | ) | |||||||||
Total deferred tax assets | 120,847 | 198,846 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 15,163 | 12,274 | |||||||||||
Debt refinancing costs | 7,494 | - | |||||||||||
Prepaid expenses | 1,183 | 1,131 | |||||||||||
Total deferred tax liabilities | 23,840 | 13,405 | |||||||||||
Net deferred tax asset | $ | 97,007 | $ | 185,441 | |||||||||
The net current and noncurrent components of deferred taxes included in the consolidated balance sheets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net current deferred tax assets | $ | 26,869 | $ | 48,687 | |||||||||
Net long-term deferred tax assets | 86,125 | 137,560 | |||||||||||
Net long-term deferred tax liabilities | (14,966 | ) | - | ||||||||||
Valuation allowance | (1,021 | ) | (806 | ) | |||||||||
Net deferred tax assets | $ | 97,007 | $ | 185,441 | |||||||||
Acquired as part of the Ottomotores acquisition, Ottomotores Brazil generated net operating losses for multiple years. The realizability of the deferred tax assets associated with these net operating losses is uncertain so a valuation allowance has been recorded in the opening balance sheet as of December 8, 2012 as well as at December 31, 2012 and 2013. | |||||||||||||
At December 31, 2013, the Company has state net operating loss carryforwards of approximately $10, which expire between 2023 and 2025. | |||||||||||||
As a result of ownership changes, Section 382 of the Internal Revenue Code of 1986 as amended and similar state provisions can limit the annual deductions of net operating loss and tax credit carry forwards. Such annual limitations could result in the expiration of net operating loss and tax credit carry forwards before utilization. The Company has no such limitation as of December 31, 2012 and if a limitation was triggered in 2013, the Company believes any limitation would not be significant. | |||||||||||||
At December 31, 2013 and 2012, the Company has no reserves recorded for uncertain tax positions. | |||||||||||||
The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not provided for additional U.S. income taxes on approximately $8,666 of undistributed earnings of consolidated non-U.S. subsidiaries. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings. | |||||||||||||
A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes | 3.7 | 4.1 | 4 | ||||||||||
Valuation allowance | 0.2 | - | (312.3 | ) | |||||||||
Other | -1.5 | 1.3 | - | ||||||||||
Effective tax rate | 37.4 | % | 40.4 | % | (273.3 | )% |
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Benefit Plans [Abstract] | ' | ||||||||||||||||||||
Benefit Plans | ' | ||||||||||||||||||||
9. Benefit Plans | |||||||||||||||||||||
Medical and Dental Plan | |||||||||||||||||||||
The Company maintains medical and dental benefit plans covering full-time domestic employees of the Company and their dependents. Certain plans are partially or fully self-funded plans 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 plan were $9,500, $8,741, and $6,700 for the years ended December 31, 2013, 2012, and 2011, respectively. The plan covering a majority of full-time employees maintains individual stop loss insurance policies on the medical portion with a limit of stop loss of $235 to mitigate losses. Balances for the incurred but not yet reported claims, including reported but unpaid claims at December 31, 2013, and 2012, were $1,389 and $1,185, respectively. The Company estimates claims incurred but not yet reported based on its historical experience. During 2013, the Company paid premiums of $2,700 for other standard medical benefits covering certain full-time employees. | |||||||||||||||||||||
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 material to the Company’s consolidated financial statements. | |||||||||||||||||||||
Savings Plan | |||||||||||||||||||||
The Company maintains a defined-contribution 401(k) savings plan for virtually all domestic employees who meet certain eligibility requirements. Under the plan, employees may defer receipt of a portion of their eligible compensation. | |||||||||||||||||||||
The Company amended the 401(k) savings plans effective January 1, 2009, to add Company matching and non-elective contributions. The Company may contribute a matching contribution of 50% of the first 6% of eligible compensation of employees. No matching contribution shall be made with respect to employee catch-up contributions. The Company may contribute a non-elective contribution for each plan year after 2008. The contribution will apply to eligible employees employed on December 31, 2008. The rate of the non-elective contribution is determined based upon years of service as of December 31, 2008, and is fixed. Both Company matching contributions and non-elective contributions are subject to vesting. Forfeitures may be applied against plan expenses. | |||||||||||||||||||||
The Company recognized $3,300, $3,000 and $2,400 of expense related to this plan in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Pension Plans | |||||||||||||||||||||
The Company has noncontributory salaried and hourly pension plans (collectively, “Pension Plans”) covering certain domestic employees. The benefits under the salaried plan are based upon years of service and the participants’ defined final average monthly compensation. The benefits under the hourly plan are based on a unit amount at the date of termination multiplied by the participant’s years of credited service. The Company’s funding policy for the Pension Plans is to contribute amounts at least equal to the minimum annual amount required by applicable regulations. The Company elected to freeze the Pension Plans effective December 31, 2008. This resulted in a cessation of all future benefit accruals for both hourly and salary pension plans. | |||||||||||||||||||||
The Company uses a December 31 measurement date for the Pension Plans. Information related to the Pension Plans is as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Accumulated benefit obligation at end of period | $ | 52,825 | $ | 59,744 | |||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||
Projected benefit obligation at beginning of period | $ | 59,744 | $ | 53,467 | |||||||||||||||||
Interest cost | 2,423 | 2,453 | |||||||||||||||||||
Net actuarial (gain) loss | (7,695 | ) | 5,332 | ||||||||||||||||||
Benefits paid | (1,647 | ) | (1,508 | ) | |||||||||||||||||
Projected benefit obligation at end of period | $ | 52,825 | $ | 59,744 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 36,570 | $ | 31,423 | |||||||||||||||||
Actual return on plan assets | 6,465 | 4,268 | |||||||||||||||||||
Company contributions | 1,052 | 2,387 | |||||||||||||||||||
Benefits paid | (1,647 | ) | (1,508 | ) | |||||||||||||||||
Fair value of plan assets at end of period | $ | 42,440 | $ | 36,570 | |||||||||||||||||
Funded status: accrued pension liability included in other long-term liabilities | $ | (10,385 | ) | $ | (23,174 | ) | |||||||||||||||
Amounts recognized in accumulated other comprehensive income | |||||||||||||||||||||
Net actuarial loss | $ | (4,393 | ) | $ | (12,081 | ) | |||||||||||||||
The actuarial loss for the Pension Plans that was amortized from OCI into net periodic benefit cost during 2013 is $1,108. The amount in OCI as of December 31, 2013 that is expected to be recognized as a component of net periodic pension expense during the next fiscal year is $106. | |||||||||||||||||||||
Additional information related to the Pension Plans is as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic pension expense: | |||||||||||||||||||||
Interest cost | 2,423 | 2,453 | 2,369 | ||||||||||||||||||
Expected return on plan assets | (2,520 | ) | (2,398 | ) | (2,342 | ) | |||||||||||||||
Amortization of net loss | 1,108 | 909 | 273 | ||||||||||||||||||
Net periodic pension expense | $ | 1,011 | $ | 964 | $ | 300 | |||||||||||||||
Weighted-average assumptions used to determine the benefit obligations are as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Discount rate – salaried pension plan | 4.98 | % | 4.1 | % | |||||||||||||||||
Discount rate – hourly pension plan | 5.01 | % | 4.14 | % | |||||||||||||||||
Rate of compensation increase (1) | n/ | a | n/ | a | |||||||||||||||||
-1 | No compensation increase was assumed as the plans were frozen effective December 31, 2008. | ||||||||||||||||||||
Weighted-average assumptions used to determine net periodic pension expense are as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.14 | % | 4.65 | % | 5.23 | % | |||||||||||||||
Expected long-term rate of return on plan assets | 6.95 | 7.57 | 7.62 | ||||||||||||||||||
Rate of compensation increase (1) | n/ | a | n/ | a | n/ | a | |||||||||||||||
-1 | No compensation increase was assumed as the plans were frozen effective December 31, 2008. | ||||||||||||||||||||
To determine the long-term rate of return assumption for plan assets, the Company studies historical markets and preserves the long-term historical relationships 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 evaluates current market factors such as inflation and interest rates before it determines long-term capital market assumptions and reviews peer data and historical returns to check for reasonableness and appropriateness. | |||||||||||||||||||||
The Pension Plan’s weighted-average asset allocation at December 31, 2013 and 2012, by asset category, is as follows: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Asset Category | Target | Dollars | % | Dollars | % | ||||||||||||||||
Fixed Income | 24 | % | 7,307 | 17 | % | 8,736 | 24 | % | |||||||||||||
Domestic equity | 49 | % | 23,903 | 56 | % | 17,926 | 49 | % | |||||||||||||
International equity | 17 | % | 7,424 | 18 | % | 6,257 | 17 | % | |||||||||||||
Real estate | 10 | % | 3,806 | 9 | % | 3,651 | 10 | % | |||||||||||||
Total | 100 | % | $ | 42,440 | 100 | % | $ | 36,570 | 100 | % | |||||||||||
The fair values of the Pension Plan's assets at December 31, 2013 are as follows: | |||||||||||||||||||||
Quoted prices in active markets for identical asset | |||||||||||||||||||||
(level 1) | Significant observable inputs | Significant unobservable inputs | |||||||||||||||||||
(level 2) | (level 3) | ||||||||||||||||||||
Total | |||||||||||||||||||||
Mutual fund | $ | 39,759 | $ | 39,759 | $ | – | $ | – | |||||||||||||
Collective trust | 2,681 | – | 2,681 | – | |||||||||||||||||
Total | $ | 42,440 | $ | 39,759 | $ | 2,681 | $ | – | |||||||||||||
The fair values of the Pension Plan's assets at December 31, 2012 are as follows: | |||||||||||||||||||||
Quoted prices in active markets for identical asset | |||||||||||||||||||||
(level 1) | Significant observable inputs | Significant unobservable inputs | |||||||||||||||||||
(level 2) | (level 3) | ||||||||||||||||||||
Total | |||||||||||||||||||||
Mutual fund | $ | 33,683 | $ | 33,683 | $ | – | $ | – | |||||||||||||
Collective trust | 2,887 | – | 2,887 | – | |||||||||||||||||
Total | $ | 36,570 | $ | 33,683 | $ | 2,887 | $ | – | |||||||||||||
Mutual Funds – This category includes investments in mutual funds that encompass both equity and fixed income securities that are designed to provide a diverse portfolio. The plan’s mutual funds are designed to track exchange indices, and invest in diverse industries. Some mutual funds are classified as regulated investment companies. Investment managers have the ability to shift investments from value to growth strategies, from small to large capitalization funds, and from U.S. to international investments. These investments are valued at the closing price reported on the active market on which the individual securities are traded. These investments are classified within Level 1 of the fair value hierarchy. | |||||||||||||||||||||
Collective Trusts – This category includes public investment vehicles valued using the Net Asset Value (NAV) provided by the administrator of the trust. The NAV is based on the value of the underlying assets owned by the trust, minus its liabilities, and then divided by the number of shares outstanding. The NAV of the trust is classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||
The Company’s target allocation for equity securities and real estate is generally between 65% – 85%, with the remainder allocated primarily to bonds. The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate. | |||||||||||||||||||||
The Company expects to make estimated contributions of $2,149 to the Pension Plans in 2014. | |||||||||||||||||||||
The following benefit payments are expected to be paid from the Pension Plans: | |||||||||||||||||||||
Year | |||||||||||||||||||||
2014 | $ | 1,776 | |||||||||||||||||||
2015 | 1,838 | ||||||||||||||||||||
2016 | 1,971 | ||||||||||||||||||||
2017 | 2,176 | ||||||||||||||||||||
2018 | 2,279 | ||||||||||||||||||||
Years 2019 – 2023 | 13,353 | ||||||||||||||||||||
Certain of the Company’s foreign subsidiaries participate in local 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 accrued wages and employee benefits in the Company’s consolidated balance sheets and are not material. |
Share_Plans
Share Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share Plans [Abstract] | ' | ||||||||||||||||
Share Plans | ' | ||||||||||||||||
10. Share Plans | |||||||||||||||||
The Company adopted an equity incentive plan on February 10, 2010 in connection with our initial public offering. The plan, as amended, allows for granting of up to 9.1 million stock-based awards to executives, directors and employees. Awards available for grant under the Plan include stock options, stock appreciation rights, restricted stock, other stock-based awards, and performance-based compensation awards. Total share-based compensation cost related to the equity incentive plan was $12,368, $10,780 and $8,646 in 2013, 2012 and 2011, respectively, net of actual forfeitures, which is recorded in operating expenses in the consolidated statements of comprehensive income. | |||||||||||||||||
Stock Options - Stock options granted in 2013 have an exercise price of between $29.81 per share and $48.36 per share, stock options granted in 2012 have an exercise price of between $15.94 per share and $32.05 per share, and the stock options granted in 2011 have an exercise price of between $6.15 per share and $13.73 per share. On June 21, 2013, the Company paid a special cash dividend of $5.00 per share on its common stock, and on June 29, 2012, the Company paid a special cash dividend of $6.00 per share on its common stock. In connection with these special dividends, and pursuant to the terms of the Company’s stock option plan, certain adjustments are required to be made to stock options outstanding under the plan in order to avoid dilution of the intended benefits which would otherwise result as a consequence of the special dividend. As such, the strike price for all outstanding stock options as of the special dividend dates, were adjusted by the $5.00 and $6.00 special dividend amounts. There was no change to compensation expense as a result of these adjustments. On June 10, 2013 and July 2, 2012, the strike price of all stock option awards outstanding prior to the special dividend dates were restated to reflect these $5.00 and $6.00 adjustments, respectively. The exercise prices noted above reflect these adjustments. Stock options issued in 2013 and 2012 vest in equal installments over four years, subject to the grantee’s continued employment or service and expire 10 years after the date of grant. Stock options issued in 2011 and 2010 vest in equal installments over five years, subject to the grantee’s continued employment or service and expire 10 years after the date of grant. | |||||||||||||||||
Beginning in 2011, stock option exercises are 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 approximately 323,427, 667,041 and 55,202 in 2013, 2012 and 2011, respectively, and were based on the value of the stock on the exercise dates as determined based upon an average of the Company’s high and low stock sales price on the exercise dates. Total payments for the employees’ tax obligations to the taxing authorities were $8,449, $6,425 and $371 in 2013, 2012 and 2011, respectively, and are reflected as a financing activity within the Consolidated Statement of Cash Flows. The net-share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued as a result of the option exercise and did not represent an expense to the Company. | |||||||||||||||||
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. Since there is limited history for the Company’s stock, expected volatility is calculated based on an analysis of historic and implied volatility measures for a set of peer companies. 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-coupon issues with a remaining term equal to the expected life assumed at the date of grant. The compensation expense recognized is net of estimated forfeitures. Forfeitures are estimated based on actual share option forfeiture history. The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for 2013, 2012 and 2011 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
2011 | |||||||||||||||||
Weighted average grant date fair value | $ | 16.3 | $ | 12.13 | $ | 11.1 | |||||||||||
Assumptions: | |||||||||||||||||
Expected stock price volatility | 47 | % | 45 | % | 50 | % | |||||||||||
Risk free interest rate | 1.21 | % | 1.22 | % | 2.69 | % | |||||||||||
Expected annual dividend per share | $ | - | $ | - | $ | - | |||||||||||
Expected life of options (years) | 6.25 | 6.25 | 6.5 | ||||||||||||||
The Company periodically evaluates its forfeiture rates and updates the rates it uses in the determination of its stock-based compensation expense. The impact of the change to the forfeiture rates on non-cash compensation expense was immaterial for the years ended December 31, 2013, 2012 and 2011. A summary of the Company’s stock option activity and related information for the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual Term | ($ in thousands) | ||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2010 | 4,236,259 | 13.02 | 9.1 | $ | 13,349 | ||||||||||||
Granted | 179,877 | 21.26 | |||||||||||||||
Exercised | (107,591 | ) | 13 | ||||||||||||||
Expired | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding as of December 31, 2011 | 4,308,545 | 13.36 | 8.2 | $ | 63,193 | ||||||||||||
Granted | 256,112 | 21.28 | |||||||||||||||
Exercised | (1,113,827 | ) | 13.21 | ||||||||||||||
Expired | - | - | |||||||||||||||
Forfeited | (10,788 | ) | 20.52 | ||||||||||||||
Outstanding as of December 31, 2012 | 3,440,042 | 14.38 | 9 | $ | 68,549 | ||||||||||||
Granted | 253,857 | 35.04 | |||||||||||||||
Exercised | (703,326 | ) | 6.05 | ||||||||||||||
Expired | (1,625 | ) | 20.94 | ||||||||||||||
Forfeited | (51,647 | ) | 17.02 | ||||||||||||||
Outstanding as of December 31, 2013 | 2,937,301 | 5.74 | 9.5 | $ | 148,369 | ||||||||||||
Exercisable as of December 31, 2013 | 802,034 | 2.82 | 9.5 | $ | 42,856 | ||||||||||||
Of the 703,326 and 1,113,827 stock options exercised during the fiscal year 2013 and 2012, respectively, 323,427 and 667,041 shares underlying such exercised options were retained by the Company in a net-share settlement to cover the aggregate exercise price and the required amount of employee withholding taxes. | |||||||||||||||||
As of December 31, 2013, there was $11,855 of total unrecognized compensation cost, net of expected forfeitures, related to unvested options. The cost is expected to be recognized over the remaining service period, having a weighted-average period of 2.0 years. Total share-based compensation cost related to the stock options for 2013, 2012 and 2011 was $9,034, $6,835 and $6,475, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. | |||||||||||||||||
Restricted Stock – For awards issued prior to 2012, restricted stock awards vest in full on the third anniversary of the date of grant, subject to the grantee’s continued employment. Restricted stock awards issued in 2012 and after, vest in equal installments over three years, subject to the grantee’s continued employment or service. The fair market value of the award at the time of the grant is amortized to expense over the period of vesting. The fair value of restricted share awards is determined based on the market value of the Company's shares on the grant date. The compensation expense recognized for restricted share awards is net of estimated forfeitures. | |||||||||||||||||
Restricted stock vesting is net-share settled such that the Company withholds shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes. In effect, the Company repurchases these shares and classifies as treasury stock, and uses the cash on behalf of the employees to satisfy the tax withholding requirements. Total shares withheld were approximately 163,458 in 2013, and zero in 2012 and 2011, and were based on the value of the stock on the vesting dates as determined based upon an average of the Company’s high and low stock sales price on the vesting dates. Total payments for the employees’ tax obligations to the taxing authorities were $6,571 in 2013, and zero in 2012 and 2011, and are reflected as a financing activity within the Consolidated Statement of Cash Flows. | |||||||||||||||||
A summary of the Company's restricted share awards activity for the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Non-vested Stock Awards | Shares | Weighted-Average | |||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested as of December 31, 2010 | 430,155 | $ | 13.02 | ||||||||||||||
Granted | 59,147 | 20.59 | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested as of December 31, 2011 | 489,302 | $ | 13.93 | ||||||||||||||
Granted | 195,771 | 26.94 | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | (20,002 | ) | $ | 11.96 | |||||||||||||
Non-vested as of December 31, 2012 | 665,071 | $ | 17.75 | ||||||||||||||
Granted | 112,494 | 37.82 | |||||||||||||||
Vested | (450,537 | ) | 14.21 | ||||||||||||||
Forfeited | (22,622 | ) | 25.36 | ||||||||||||||
Non-vested as of December 31, 2013 | 304,406 | $ | 29.68 | ||||||||||||||
As of December 31, 2013, there was $5,216 of total unrecognized compensation cost, net of expected forfeitures, related to non-vested stock awards. That cost is expected to be recognized over the remaining service period, having a weighted-average period of 1.9 years. Total share-based compensation cost related to the restricted stock for 2013, 2012 and 2011 was $3,074, $3,645 and 1,871, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. | |||||||||||||||||
During 2013, 2012 and 2011, 7,291, 10,864 and 16,680 shares, respectively, of fully vested stock were granted to certain members of the Company’s board of directors as a component of their compensation for their service on the board. Total compensation cost for these share grants in 2013, 2012 and 2011 was $260, $300 and $300, respectively, which is recorded in operating expenses in the consolidated statements of comprehensive income. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
11. Commitments and Contingencies | |||||
The Company leases certain computer equipment, automobiles, and warehouse space under operating leases with lease terms generally ranging between 3-5 years. | |||||
The approximate aggregate minimum rental commitments at December 31, 2013, are as follows: | |||||
Amount | |||||
Year | |||||
2014 | $ | 1,952 | |||
2015 | 1,900 | ||||
2016 | 1,543 | ||||
2017 | 830 | ||||
2018 | 3 | ||||
Total | $ | 6,228 | |||
Total rent expense for the years ended December 31, 2013, 2012 and 2011, which includes short-term data processing equipment rentals, was approximately $2,457, $2,870, and $1,309, respectively. | |||||
The Company has an arrangement with a finance company to provide floor plan financing for selected 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. The Company has agreed to repurchase products repossessed by the finance company, but does not indemnify the finance company for any credit losses they incur. The amount financed by dealers which remained outstanding under this arrangement at December 31, 2013 and 2012 was approximately $24,300 and 16,600, respectively. | |||||
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 result from such lawsuits are not expected to have a material adverse effect on the financial position, results of operations, or cash flows of the Company. |
Special_Cash_Dividend
Special Cash Dividend | 12 Months Ended |
Dec. 31, 2013 | |
Special Cash Dividend [Abstract] | ' |
Special Cash Dividend | ' |
12. Special Cash Dividend | |
2012 Special Cash Dividend | |
On June 29, 2012, the Company used a portion of the proceeds from the May 30, 2012 debt refinancing (see Note #6 – Credit Agreements) together with cash on its balance sheet to pay a special cash dividend of $6.00 per share on its common stock, resulting in payments totaling $404,332 to stockholders. Related dividends declared but unpaid as of December 31, 2013 of $1,172, which relate to dividends earned on unvested restricted stock awards, are included in other accrued liabilities in the consolidated balance sheet. Payment of these dividends will be made when the underlying restricted stock awards vest. | |
In connection with the special dividend, and pursuant to the terms of the Company’s stock option plan, certain adjustments are required to be made to stock options outstanding under the plan in order to avoid dilution of the intended benefits which would otherwise result as a consequence of the special dividend. As such, on July 2, 2012, the strike price for all outstanding stock options at that time was modified by the $6.00 special dividend amount. There was no change to compensation expense as a result of this adjustment. | |
The 2012 Special Cash Dividend was recorded as a reduction to additional paid-in capital as the Company had an accumulated deficit balance as of the dividend declaration date. | |
2013 Special Cash Dividend | |
On June 21, 2013, the Company used a portion of the proceeds from the May 31, 2013 debt refinancing (see Note #6 – Credit Agreements) to pay a special cash dividend of $5.00 per share on its common stock, resulting in payments totaling $340,772 to stockholders. Related dividends declared but unpaid as of December 31, 2013 of $1,300, which relate to dividends earned on unvested restricted stock awards, are included in other accrued liabilities in the consolidated balance sheet. Payment of these dividends will be made when the underlying restricted stock awards vest. | |
In connection with the special dividend, and pursuant to the terms of the Company’s stock option plan, certain adjustments are required to be made to stock options outstanding under the plan in order to avoid dilution of the intended benefits which would otherwise result as a consequence of the special dividend. As such, on June 21, 2013 the strike price for all outstanding stock options at that time was modified by the $5.00 special dividend amount. There was no change to compensation expense as a result of this adjustment. | |
The balance of retained earnings as of the 2013 Special Cash Dividend declaration date was $4,934. As such, the dividends were first charged to retained earnings and dividends in excess of retained earnings were recorded as a reduction to additional paid-in capital. |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information (Unaudited) [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||
13. Quarterly Financial Information (Unaudited) | |||||||||||||||||
Quarters Ended 2013 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 399,572 | $ | 346,688 | $ | 363,269 | $ | 376,236 | |||||||||
Gross profit | 153,462 | 130,953 | 139,463 | 145,682 | |||||||||||||
Operating income | 96,525 | 76,433 | 87,289 | 91,218 | |||||||||||||
Net income | 50,674 | 28,254 | 47,093 | 48,518 | |||||||||||||
Net income per common share, basic: | $ | 0.75 | $ | 0.41 | $ | 0.69 | $ | 0.71 | |||||||||
Net income per common share, diluted: | $ | 0.73 | $ | 0.4 | $ | 0.67 | $ | 0.69 | |||||||||
Quarters Ended 2012 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 294,561 | $ | 239,137 | $ | 300,586 | $ | 342,022 | |||||||||
Gross profit | 111,005 | 87,429 | 115,813 | 126,153 | |||||||||||||
Operating income | 59,493 | 37,158 | 59,124 | 67,780 | |||||||||||||
Net income | 30,060 | 9,335 | 25,541 | 28,287 | |||||||||||||
Net income per common share, basic: | $ | 0.45 | $ | 0.14 | $ | 0.38 | $ | 0.42 | |||||||||
Net income per common share, diluted: | $ | 0.44 | $ | 0.14 | $ | 0.37 | $ | 0.41 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
14. Valuation and Qualifying Accounts | |||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Balance at | Reserves | Additions | Charges to | Balance at | |||||||||||||||||
Beginning | Assumed in | Charged to | Reserve, Net | End | |||||||||||||||||
of Year | Acquisition | Earnings | -1 | of Year | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,166 | $ | 496 | $ | 1,037 | $ | (41 | ) | $ | 2,658 | ||||||||||
Reserves for inventory | 6,999 | 1,131 | 72 | (1,644 | ) | 6,558 | |||||||||||||||
Valuation of deferred tax assets | 806 | (120 | ) | 335 | – | 1,021 | |||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 789 | $ | 383 | $ | 204 | $ | (210 | ) | $ | 1,166 | ||||||||||
Reserves for inventory | 4,717 | 1,694 | 1,785 | (1,197 | ) | 6,999 | |||||||||||||||
Valuation of deferred tax assets | – | 827 | (21 | ) | – | 806 | |||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 723 | $ | 171 | $ | (7 | ) | $ | (98 | ) | $ | 789 | |||||||||
Reserves for inventory | 4,059 | 657 | 1,092 | (1,091 | ) | 4,717 | |||||||||||||||
Valuation of deferred tax assets | 271,393 | – | (271,393 | ) | – | – | |||||||||||||||
(1) Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Principles of Consolidation | ' | |||||||||||||||||||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany amounts and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. | ||||||||||||||||||||||||||||||||||||||
Cash Equivalents | ' | |||||||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||||||||||||||||||||||||||||
Restricted Cash | ' | |||||||||||||||||||||||||||||||||||||
Restricted Cash | ||||||||||||||||||||||||||||||||||||||
Restricted cash represents cash transferred to an escrow account for the future settlement of certain earn-out obligations associated with the Tower Light acquisition. See Note 3 - Acquisitions for additional details. | ||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | ' | |||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||||||||||||||||||
The Company maintains the majority of its cash in one commercial bank in multiple operating and investment accounts. Balances on deposit are insured by the Federal Deposit Insurance Corporation (FDIC) up to specified limits. Balances in excess of FDIC limits are uninsured. | ||||||||||||||||||||||||||||||||||||||
One customer accounted for approximately 11% and 9% of accounts receivable at December 31, 2013 and December 31, 2012, respectively. No one customer accounted for greater than 6%, 7% and 10%, respectively, of net sales during the years ended December 31, 2013, 2012, or 2011. | ||||||||||||||||||||||||||||||||||||||
Accounts Receivable | ' | |||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
Inventories | ' | |||||||||||||||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||||||||||||||||
Inventories are stated at the lower of cost or market, with cost determined generally using the first-in, first-out method. | ||||||||||||||||||||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
Land improvements | 10 – 15 | |||||||||||||||||||||||||||||||||||||
Buildings and improvements | 10 – 40 | |||||||||||||||||||||||||||||||||||||
Leasehold improvements | 7 – 20 | |||||||||||||||||||||||||||||||||||||
Machinery and equipment | 5 – 20 | |||||||||||||||||||||||||||||||||||||
Dies and tools | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Vehicles | 3 – 5 | |||||||||||||||||||||||||||||||||||||
Office equipment | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Customer Lists, Patents, and Other Intangible Assets | ' | |||||||||||||||||||||||||||||||||||||
Customer Lists, Patents, and Other Intangible Assets | ||||||||||||||||||||||||||||||||||||||
The following table summarizes intangible assets by major category as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Weighted | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
Amortization | Cost | Accumulated | Amortized Cost | Cost | Accumulated Impairment | Amortized Cost | ||||||||||||||||||||||||||||||||
Years | Impairment | |||||||||||||||||||||||||||||||||||||
Indefinite lived intangible assets Trade names | $ | 182,585 | $ | (9,389 | ) | $ | 173,196 | $ | 168,220 | $ | (9,389 | ) | $ | 158,831 | ||||||||||||||||||||||||
Cost | Accumulated | Amortized Cost | Cost | Accumulated | Amortized Cost | |||||||||||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||||||||||||
Finite lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Trade names | 0 | $ | 8,775 | $ | (8,775 | ) | $ | - | $ | 8,775 | $ | (8,775 | ) | $ | - | |||||||||||||||||||||||
Customer lists | 7 | 294,627 | (251,863 | ) | 42,764 | 273,355 | (235,532 | ) | 37,823 | |||||||||||||||||||||||||||||
Patents | 15 | 118,921 | (56,503 | ) | 62,418 | 118,921 | (48,619 | ) | 70,302 | |||||||||||||||||||||||||||||
Unpatented technology | 12 | 13,169 | (9,064 | ) | 4,105 | 13,165 | (7,696 | ) | 5,469 | |||||||||||||||||||||||||||||
Software | 8 | 1,046 | (912 | ) | 134 | 1,014 | (779 | ) | 235 | |||||||||||||||||||||||||||||
Non-compete/other | 2 | 345 | (137 | ) | 208 | 113 | (34 | ) | 79 | |||||||||||||||||||||||||||||
Total finite lived intangible assets | $ | 436,883 | $ | (327,254 | ) | $ | 109,629 | $ | 415,343 | $ | (301,435 | ) | $ | 113,908 | ||||||||||||||||||||||||
Amortization of intangible assets was $25,819, $45,867 and $48,020 in 2013, 2012 and 2011, respectively. During the fourth quarter of 2011, the Company wrote down a certain trade name indefinite-lived intangible asset. See the Goodwill and Other Indefinite-Lived Intangible Assets section for further discussion. Estimated amortization expense each year for the five years subsequent to December 31, 2013 is as follows: 2014, $21,058; 2015, $19,718; 2016, $17,892; 2017, $14,581; 2018, $10,228. | ||||||||||||||||||||||||||||||||||||||
Debt Issuance Costs | ' | |||||||||||||||||||||||||||||||||||||
Debt Issuance Costs | ||||||||||||||||||||||||||||||||||||||
Direct and incremental costs incurred in connection with the issuance of long-term debt are capitalized and amortized to interest expense over the terms of the related credit agreements. Debt discounts 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. Approximately $4,772, $3,759, and $1,986 of deferred financing costs and original issue discounts were amortized to interest expense during fiscal years 2013, 2012 and 2011, respectively. Estimated amortization expense each year for the five years subsequent to December 31, 2013 is as follows: 2014, $4,919; 2015, $5,033; 2016, $5,165; 2017, $5,273; 2018, $5,143. | ||||||||||||||||||||||||||||||||||||||
Long-Lived Assets | ' | |||||||||||||||||||||||||||||||||||||
Long-Lived Assets | ||||||||||||||||||||||||||||||||||||||
The Company periodically evaluates the carrying value of long-lived assets (excluding goodwill and trade names). Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of an asset, a loss is recognized for the difference between the fair value and carrying value of the asset. Such analyses necessarily involve significant judgments. | ||||||||||||||||||||||||||||||||||||||
Goodwill and Other Indefinite-Lived Intangible Assets | ' | |||||||||||||||||||||||||||||||||||||
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 amortized, but is reviewed for impairment on an annual basis and between annual tests if indicators of impairment are present. The Company evaluates goodwill for impairment annually on October 1 or more frequently when an event occurs or circumstances change that indicates the carrying value may not be recoverable. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further goodwill impairment testing is not required to be performed. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is required to perform a two-step goodwill impairment test. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value (i.e., excess of liabilities over assets), qualitative factors are evaluated to determine whether it is necessary to perform the second step of the goodwill impairment test. | ||||||||||||||||||||||||||||||||||||||
The Company performed the required annual impairment tests for fiscal years 2013, 2012 and 2011 and found no impairment of goodwill. There can be no assurance that future goodwill impairment tests will not result in a charge to earnings. | ||||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||||||||
Impairment | Goodwill | Impairment | Goodwill | |||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | $ | 1,050,666 | $ | (503,193 | ) | $ | 547,473 | ||||||||||||||||||||||||
Acquisition of business, net | 56,605 | — | 56,605 | 5,470 | — | 5,470 | ||||||||||||||||||||||||||||||||
Sale of business, net | (1,261 | ) | — | (1,261 | ) | — | — | — | ||||||||||||||||||||||||||||||
Balance at end of year | $ | 1,111,480 | $ | (503,193 | ) | $ | 608,287 | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | ||||||||||||||||||||||||
The Company acquired two businesses during fiscal 2013 for a combined purchase price of $122,391, net of cash acquired, which resulted in additional goodwill of $57,044. Separately, the Ottomotores purchase price allocation was finalized during the second quarter of 2013, which resulted in an adjustment to goodwill of $(439). The Company acquired two businesses during fiscal 2012 for a combined purchase price of $47,044, net of cash acquired, which resulted in additional goodwill of $5,545. Separately, the Magnum purchase price allocation was finalized during the third quarter of 2012, which resulted in an adjustment to goodwill of $(75). | ||||||||||||||||||||||||||||||||||||||
Other indefinite-lived intangible assets consist of trade names. The Company tests the carrying value of these trade names by comparing the assets fair value to its carrying value. Fair value was measured using a relief-from-royalty approach, which assumes the fair value of the trade name is the discounted cash flows of the amount that would be paid had the Company not owned the trade name and instead licensed the trade name from another company. The Company conducts its annual impairment tests for indefinite-lived intangible assets on October 31st of each year. | ||||||||||||||||||||||||||||||||||||||
The Company performed the required annual impairment tests for fiscal years 2013 and 2012 and found no impairment of indefinite-lived trade names. During the fourth quarter of 2011, the Company decided to strategically transition certain products to their more widely known Generac brand. Based on this decision, the Company recorded a $9,389 non-cash trade name impairment charge as of October 31, 2011 which primarily related to the write down of the impacted trade name to net realizable value. There can be no assurance that future impairment tests will not result in a charge to earnings. | ||||||||||||||||||||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||||||||||||||||||||
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 that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies, as appropriate, in making this assessment. | ||||||||||||||||||||||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||||||||||||||||
Sales, net of estimated returns and allowances, are recognized upon shipment of product to the customer, which is generally when title passes, the Company has no further obligations, and the customer is required to pay. The Company, at the request of certain customers, will warehouse inventory billed to the customer but not delivered. Unless all revenue recognition criteria have been met, the Company does not recognize revenue on these transactions until the customers take possession of the product. The funds collected on product warehoused for these customers are recorded as a customer advance until the customer takes possession of the product and the Company’s obligation to deliver the goods is completed. Customer advances are included in accrued liabilities in the accompanying consolidated balance sheets. | ||||||||||||||||||||||||||||||||||||||
The Company provides for certain estimated sales promotion, discounts and incentive expenses which are recognized as a reduction of sales. | ||||||||||||||||||||||||||||||||||||||
Historically, product returns, whether in the normal course of business or resulting from repurchases made under a floor plan financing program, have not been material. | ||||||||||||||||||||||||||||||||||||||
Shipping and Handling Costs | ' | |||||||||||||||||||||||||||||||||||||
Shipping and Handling Costs | ||||||||||||||||||||||||||||||||||||||
Shipping and handling costs billed to customers are included in net sales, and the related costs are included in cost of goods sold in the consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||
Advertising and Co-Op Advertising | ' | |||||||||||||||||||||||||||||||||||||
Advertising and Co-Op Advertising | ||||||||||||||||||||||||||||||||||||||
Expenditures for advertising, included in selling and service expenses in the accompanying consolidated statements of comprehensive income, are expensed as incurred. Total expenditures for advertising were $19,910, $13,360, and $11,742 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Research and Development | ' | |||||||||||||||||||||||||||||||||||||
Research and Development | ||||||||||||||||||||||||||||||||||||||
The Company expenses research and development costs as incurred. Total expenditures incurred for research and development were $29,271, $23,499, and $16,476 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation and Transactions | ' | |||||||||||||||||||||||||||||||||||||
Foreign Currency Translation and Transactions | ||||||||||||||||||||||||||||||||||||||
Foreign currency balance sheet accounts are translated into dollars at the rates of exchange in effect at fiscal year-end. 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 a separate component of Stockholders’ Equity. | ||||||||||||||||||||||||||||||||||||||
Gains and losses from foreign currency transactions are included in net income in the Company’s consolidated statements of comprehensive income. | ||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss includes foreign currency translation adjustments, pension liability adjustments and unrealized gains (losses) on certain cash flow hedges. The components of accumulated other comprehensive loss, net of tax, at December 31, 2013 and 2012 were: | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | 1,204 | $ | (34 | ) | |||||||||||||||||||||||||||||||||
Pension liability, net of tax of $886 and $(4,174) | (4,393 | ) | (12,081 | ) | ||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $462 and $(109) | 774 | (2,381 | ) | |||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (2,415 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||||||||
The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | (34 | ) | $ | (12,081 | ) | $ | (2,381 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 1,238 | 6,994 | 774 | 9,006 | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | 694 | 2,381 | 3,075 | ||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income | 1,238 | 7,688 | 3,155 | 12,081 | ||||||||||||||||||||||||||||||||||
Ending Balance | $ | 1,204 | $ | (4,393 | ) | $ | 774 | $ | (2,415 | ) | ||||||||||||||||||||||||||||
The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from | ||||||||||||||||||||||||||||||||||||||
other accumulated | ||||||||||||||||||||||||||||||||||||||
comprehensive loss for the | ||||||||||||||||||||||||||||||||||||||
year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Affected line item in the statement where net income is presented | ||||||||||||||||||||||||||||||||||||
Amortization of unrealized loss on interest rate swaps | ||||||||||||||||||||||||||||||||||||||
Gross | $ | (2,490 | ) | $ | (2,177 | ) | Interest expense | |||||||||||||||||||||||||||||||
Tax benefit | 109 | 95 | ||||||||||||||||||||||||||||||||||||
Net of tax | (2,381 | ) | (2,082 | ) | ||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension actuarial losses | ||||||||||||||||||||||||||||||||||||||
Gross | (1,108 | ) | (909 | ) | -1 | |||||||||||||||||||||||||||||||||
Tax benefit | 414 | 356 | ||||||||||||||||||||||||||||||||||||
Net of tax | (694 | ) | (553 | ) | ||||||||||||||||||||||||||||||||||
-1 | These actuarial losses are included in the computation of net periodic pension cost. See Note 9 – Benefit Plans for additional details. | |||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||||||||||||||
The Company believes the carrying amount of its financial instruments (cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and short-term borrowings), excluding long-term borrowings, approximates the fair value of these instruments based upon their short-term nature. The fair value of long-term borrowings, including amounts classified as current, which have an aggregate carrying value of $1,197,000 was approximately $1,199,993 (level 2) at December 31, 2013, as calculated based on independent valuations whose inputs and significant value drivers are observable. | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
ASC 820-10 Fair Value Measurements and Disclosures among other things, defines fair value, establishes a consistent framework for measuring fair value, and expands disclosure for each major asset and liability category measured at fair value on either a recurring basis or nonrecurring basis. ASC 820-10 clarifies that fair value is an exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the pronouncement establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value are based on the market approach, which are prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | ||||||||||||||||||||||||||||||||||||||
Assets and (liabilities) measured at fair value on a recurring basis are as follows: | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,236 | $ | – | $ | 1,236 | ||||||||||||||||||||||||||||||||
Commodity contracts | $ | 69 | $ | – | $ | 69 | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 56 | $ | – | $ | 56 | ||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (2,973 | ) | $ | – | $ | (2,973 | ) | ||||||||||||||||||||||||||||||
Commodity Contracts | $ | 111 | $ | – | $ | 111 | ||||||||||||||||||||||||||||||||
The fair value of derivatives designated as hedging instruments is included in other assets in the consolidated balance sheet as of December 31, 2013. The fair value of derivatives not designated as hedging instruments is included in other assets and other current liabilities in the consolidated balance sheets as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||
The valuation techniques used to measure the fair value of derivative contracts classified as level 2, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The fair value of derivative contracts above considers the Company’s credit risk in accordance with ASC 820-10. Excluding the impact of credit risk, the fair value of derivatives at December 31, 2013 and 2012 was $1,385 (asset) and $2,936 (liability), respectively, and this represents the amount the Company or other counterparty would need to pay to exit the agreements on this date. | ||||||||||||||||||||||||||||||||||||||
Use of Estimates | ' | |||||||||||||||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||||||||||||||||
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the 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 | ' | |||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||||||||||||||||
The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging, which requires all derivative instruments be reported on the consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in commodity prices, foreign currencies, and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. | ||||||||||||||||||||||||||||||||||||||
Commodities | ||||||||||||||||||||||||||||||||||||||
The primary objectives of the commodity risk management activities are to understand and mitigate the impact of potential price fluctuations on the Company’s financial results and its economic well-being. While the Company’s risk management objectives and strategies will be driven from an economic perspective, the Company attempts, where possible and practical, to ensure that the hedging strategies it engages in can be treated as “hedges” from an accounting perspective or otherwise result in accounting treatment where the earnings effect of the hedging instrument provides substantial offset (in the same period) to the earnings effect of the hedged item. Generally, these risk management transactions will involve the use of commodity derivatives to protect against exposure resulting from significant price fluctuations. | ||||||||||||||||||||||||||||||||||||||
The Company primarily utilizes commodity contracts with maturities of less than 12 months. These are intended to offset the effect of price fluctuations on actual inventory purchases. Outstanding commodity forward contracts in place to hedge the Company’s projected commodity purchases were as follows. | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $ | 2,169 | 6/30/14 | |||||||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 10/29/12 | 1/1/13 | $ | 3,472 | 9/30/13 | |||||||||||||||||||||||||||||||||
As of December 31, 2011: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional A | Termination Date | ||||||||||||||||||||||||||||||||||
mount | ||||||||||||||||||||||||||||||||||||||
Copper | 9/19/11 | 10/1/11 | $ | 4,533 | 6/30/12 | |||||||||||||||||||||||||||||||||
Copper | 9/28/11 | 10/1/11 | $ | 1,935 | 6/30/12 | |||||||||||||||||||||||||||||||||
Total losses or gains recognized in the consolidated statements of operations on commodity contracts were a loss of $605, a gain of $386, and a loss of $861 for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
Foreign Currencies | ||||||||||||||||||||||||||||||||||||||
The Company is exposed to foreign currency exchange risk as a result of transactions in other currencies. The Company periodically utilizes foreign currency forward purchase and sales contracts to manage the volatility associated with foreign currency purchases in the normal course of business. Contracts typically have maturities of one year or less. There were no foreign currency hedge contracts outstanding as of December 31, 2012 or 2011. As of December 31, 2013, we had the following foreign currency contracts outstanding (in thousands): | ||||||||||||||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||||||||||||||
United States Dollar (USD) | 650 | |||||||||||||||||||||||||||||||||||||
British Pound Sterling (GBP) | 4,000 | |||||||||||||||||||||||||||||||||||||
Interest Rates | ||||||||||||||||||||||||||||||||||||||
The Company has two interest rate swap agreements outstanding as of December 31, 2013 with an aggregate notional amount of $200,000. The Company had two interest rate swap agreements outstanding as of December 31, 2012 with an aggregate notional amount of $300,000. | ||||||||||||||||||||||||||||||||||||||
In 2010, the Company entered into two interest rate swap agreements and had formally documented all relationships between interest rate hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. The first was entered into on January 21, 2010. The effective date of this swap was July 1, 2010 with a notional amount of $200,000, a fixed LIBOR rate of 1.73% and an expiration date of July 1, 2012. The second was entered into on June 29, 2010. The effective date of that swap was October 1, 2010 with a notional amount of $100,000, a fixed LIBOR rate of 1.025% and an expiration date of October 1, 2012. The Company entered into two interest rate swap agreements on April 1, 2011. The effective date of the first swap was July 1, 2012 with a notional amount of $200,000, a fixed LIBOR rate of 1.905% and an expiration date of July 1, 2013. The effective date of the second swap was October 1, 2012 with a notional amount of $100,000, a fixed LIBOR rate of 2.22% and an expiration date of October 1, 2013. Due to the incorporation of a new interest rate floor provision in the Term Loan Credit Agreement, which constituted a change in critical terms, the Company concluded that as of May 30, 2012, the outstanding swaps would no longer be highly effective in achieving offsetting changes in cash flows during the periods the hedges were designated. As a result, the Company was required to de-designate the hedges as of May 30, 2012. Beginning May 31 2012, the effective portion of the swaps prior to the change (i.e. amounts previously recorded in Accumulated Other Comprehensive Loss) were amortized into interest expense over the period of the originally designated hedged transactions which had various termination dates through October 2013. Future changes in fair value of these swaps were immediately recognized in the consolidated statements of comprehensive income as interest expense. | ||||||||||||||||||||||||||||||||||||||
In 2013, the Company entered into two interest rate swap agreements and had formally documented all relationships between interest rate hedging instruments and hedged items, as well as its risk-management objectives and strategies for undertaking various hedge transactions. These interest rate swap agreements qualify as cash flow hedges. For derivatives that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss). The cash flows of the swaps are recognized as adjustments to interest expense each period. The ineffective portion of the derivatives’ change in fair value, if any, is immediately recognized in earnings. The Company assesses on an ongoing basis whether derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The swaps were both entered into on October 23, 2013. The effective dates of the swaps are July 1, 2014 with a notional amount of $100,000 each and a fixed LIBOR rate of 1.737% and 1.742% with expiration dates of July 1, 2018. | ||||||||||||||||||||||||||||||||||||||
The following presents the impact of interest rate swaps, commodity contracts and currency contracts on the consolidated statement of comprehensive income for the year ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) | Location of gain (loss) | Amount of loss reclassified from AOCI into net income (loss) for the twelve months ended December 31, | Amount of gain (loss) | |||||||||||||||||||||||||||||||||||
recognized in AOCI for | recognized in net income (loss) on ineffective portion of hedges | recognized in net income | ||||||||||||||||||||||||||||||||||||
the twelve months ended | (loss) on hedges | |||||||||||||||||||||||||||||||||||||
December 31, | (ineffective portion) for | |||||||||||||||||||||||||||||||||||||
twelve months ended | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | $ | 774 | $ | 365 | $ | (683 | ) | Interest Expense | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Commodity and foreign currency contracts | $ | - | $ | - | $ | - | Cost of goods sold | $ | - | $ | - | $ | - | $ | (661 | ) | $ | 386 | $ | (861 | ) | |||||||||||||||||
Interest rate swaps (2) | $ | - | $ | - | $ | - | Interest Expense | $ | (2,381 | ) | $ | (2,082 | ) | $ | - | $ | 2,973 | $ | 1,695 | $ | - | |||||||||||||||||
-1 | Amounts recorded for the twelve months ended December 31, 2012 and 2011 relate to the interest rate swap agreements outstanding prior to May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
-2 | Amounts recorded for the twelve months ended December 31, 2013 and 2012 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||||||||||||||||
Stock-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. | ||||||||||||||||||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||||||||||||||||
The Company operates in and reports as a single operating segment, which is the design and manufacture of a wide range of power products. Net sales are predominantly generated through the sale of generators and other engine powered products through various distribution channels. The Company manages and evaluates its operations as one segment primarily due to similarities in the nature of the products, production processes and methods of distribution. The Company’s sales in the United States represent approximately 88%, 93%, and 95% of total sales for the years ended December 31, 2013, 2012 and 2011, respectively. Approximately 90%, 98% and 100% of the Company’s identifiable long-lived assets are located in the United States as of December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||
The Company's product offerings consist primarily of power products with a range of power output geared for varying end customer uses. Residential power products and commercial & industrial power products are each a similar class of products based on similar power output and end customer usage. The breakout of net sales between residential, commercial & industrial, and other products is as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Residential power products | $ | 843,727 | $ | 705,444 | $ | 491,016 | ||||||||||||||||||||||||||||||||
Commercial & industrial power products | 569,890 | 410,341 | 250,270 | |||||||||||||||||||||||||||||||||||
Other | 72,148 | 60,521 | 50,690 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,485,765 | $ | 1,176,306 | $ | 791,976 | ||||||||||||||||||||||||||||||||
New Accounting Pronouncements | ' | |||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements | ||||||||||||||||||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company’s adoption of this standard did not have a material impact on the Company’s financial condition or results of operations. | ||||||||||||||||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-10, Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes ("ASU 2013-10"). ASU 2013-10 permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the United States Treasury rate and London Interbank Offered Rate ("LIBOR"). In addition, the restriction on using different benchmark rates for similar hedges is removed. The provisions of ASU 2013-10 are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on the Company’s financial condition or results of operations. | ||||||||||||||||||||||||||||||||||||||
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 believe any of these accounting pronouncements has had or will have a material impact on the Company’s consolidated financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Property and Equipment, Useful Lives | ' | |||||||||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||||||||||
Land improvements | 10 – 15 | |||||||||||||||||||||||||||||||||||||
Buildings and improvements | 10 – 40 | |||||||||||||||||||||||||||||||||||||
Leasehold improvements | 7 – 20 | |||||||||||||||||||||||||||||||||||||
Machinery and equipment | 5 – 20 | |||||||||||||||||||||||||||||||||||||
Dies and tools | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Vehicles | 3 – 5 | |||||||||||||||||||||||||||||||||||||
Office equipment | 3 – 10 | |||||||||||||||||||||||||||||||||||||
Summary of intangible assets by major category | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes intangible assets by major category as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Weighted | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||
Amortization | Cost | Accumulated | Amortized Cost | Cost | Accumulated Impairment | Amortized Cost | ||||||||||||||||||||||||||||||||
Years | Impairment | |||||||||||||||||||||||||||||||||||||
Indefinite lived intangible assets Trade names | $ | 182,585 | $ | (9,389 | ) | $ | 173,196 | $ | 168,220 | $ | (9,389 | ) | $ | 158,831 | ||||||||||||||||||||||||
Cost | Accumulated | Amortized Cost | Cost | Accumulated | Amortized Cost | |||||||||||||||||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||||||||||||||||
Finite lived intangible assets | ||||||||||||||||||||||||||||||||||||||
Trade names | 0 | $ | 8,775 | $ | (8,775 | ) | $ | - | $ | 8,775 | $ | (8,775 | ) | $ | - | |||||||||||||||||||||||
Customer lists | 7 | 294,627 | (251,863 | ) | 42,764 | 273,355 | (235,532 | ) | 37,823 | |||||||||||||||||||||||||||||
Patents | 15 | 118,921 | (56,503 | ) | 62,418 | 118,921 | (48,619 | ) | 70,302 | |||||||||||||||||||||||||||||
Unpatented technology | 12 | 13,169 | (9,064 | ) | 4,105 | 13,165 | (7,696 | ) | 5,469 | |||||||||||||||||||||||||||||
Software | 8 | 1,046 | (912 | ) | 134 | 1,014 | (779 | ) | 235 | |||||||||||||||||||||||||||||
Non-compete/other | 2 | 345 | (137 | ) | 208 | 113 | (34 | ) | 79 | |||||||||||||||||||||||||||||
Total finite lived intangible assets | $ | 436,883 | $ | (327,254 | ) | $ | 109,629 | $ | 415,343 | $ | (301,435 | ) | $ | 113,908 | ||||||||||||||||||||||||
Changes in carrying amount of goodwill | ' | |||||||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||||||||
Impairment | Goodwill | Impairment | Goodwill | |||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | $ | 1,050,666 | $ | (503,193 | ) | $ | 547,473 | ||||||||||||||||||||||||
Acquisition of business, net | 56,605 | — | 56,605 | 5,470 | — | 5,470 | ||||||||||||||||||||||||||||||||
Sale of business, net | (1,261 | ) | — | (1,261 | ) | — | — | — | ||||||||||||||||||||||||||||||
Balance at end of year | $ | 1,111,480 | $ | (503,193 | ) | $ | 608,287 | $ | 1,056,136 | $ | (503,193 | ) | $ | 552,943 | ||||||||||||||||||||||||
Accumulated other comprehensive loss | ' | |||||||||||||||||||||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, at December 31, 2013 and 2012 were: | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ | 1,204 | $ | (34 | ) | |||||||||||||||||||||||||||||||||
Pension liability, net of tax of $886 and $(4,174) | (4,393 | ) | (12,081 | ) | ||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax of $462 and $(109) | 774 | (2,381 | ) | |||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | (2,415 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||||||||
Changes in accumulated other comprehensive loss | ' | |||||||||||||||||||||||||||||||||||||
The following presents a tabular disclosure about changes in accumulated other comprehensive loss during the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustments | Defined Benefit Pension Plan | Unrealized gain (loss) on cash flow hedges | Total | |||||||||||||||||||||||||||||||||||
Beginning Balance | $ | (34 | ) | $ | (12,081 | ) | $ | (2,381 | ) | $ | (14,496 | ) | ||||||||||||||||||||||||||
Other comprehensive income before reclassifications | 1,238 | 6,994 | 774 | 9,006 | ||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | - | 694 | 2,381 | 3,075 | ||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income | 1,238 | 7,688 | 3,155 | 12,081 | ||||||||||||||||||||||||||||||||||
Ending Balance | $ | 1,204 | $ | (4,393 | ) | $ | 774 | $ | (2,415 | ) | ||||||||||||||||||||||||||||
Reclassification adjustments out of accumulated other comprehensive loss | ' | |||||||||||||||||||||||||||||||||||||
The following presents a tabular disclosure about reclassification adjustments out of accumulated other comprehensive loss during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from | ||||||||||||||||||||||||||||||||||||||
other accumulated | ||||||||||||||||||||||||||||||||||||||
comprehensive loss for the | ||||||||||||||||||||||||||||||||||||||
year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | Affected line item in the statement where net income is presented | ||||||||||||||||||||||||||||||||||||
Amortization of unrealized loss on interest rate swaps | ||||||||||||||||||||||||||||||||||||||
Gross | $ | (2,490 | ) | $ | (2,177 | ) | Interest expense | |||||||||||||||||||||||||||||||
Tax benefit | 109 | 95 | ||||||||||||||||||||||||||||||||||||
Net of tax | (2,381 | ) | (2,082 | ) | ||||||||||||||||||||||||||||||||||
Amortization of defined benefit pension actuarial losses | ||||||||||||||||||||||||||||||||||||||
Gross | (1,108 | ) | (909 | ) | -1 | |||||||||||||||||||||||||||||||||
Tax benefit | 414 | 356 | ||||||||||||||||||||||||||||||||||||
Net of tax | (694 | ) | (553 | ) | ||||||||||||||||||||||||||||||||||
-1 | These actuarial losses are included in the computation of net periodic pension cost. See Note 9 – Benefit Plans for additional details. | |||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||||||||||||||
Assets and (liabilities) measured at fair value on a recurring basis are as follows: | ||||||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,236 | $ | – | $ | 1,236 | ||||||||||||||||||||||||||||||||
Commodity contracts | $ | 69 | $ | – | $ | 69 | ||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | 56 | $ | – | $ | 56 | ||||||||||||||||||||||||||||||||
Fair Value Measurement Using | ||||||||||||||||||||||||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Contracts (Level 1) | Significant | ||||||||||||||||||||||||||||||||||||
31-Dec-12 | Other Observable Inputs | |||||||||||||||||||||||||||||||||||||
(Level 2) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (2,973 | ) | $ | – | $ | (2,973 | ) | ||||||||||||||||||||||||||||||
Commodity Contracts | $ | 111 | $ | – | $ | 111 | ||||||||||||||||||||||||||||||||
Outstanding commodity forward contracts | ' | |||||||||||||||||||||||||||||||||||||
Outstanding commodity forward contracts in place to hedge the Company’s projected commodity purchases were as follows. | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2013: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 6/21/13 | 10/1/13 | $ | 2,169 | 6/30/14 | |||||||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional | Termination Date | ||||||||||||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||||||||||||||
Copper | 10/29/12 | 1/1/13 | $ | 3,472 | 9/30/13 | |||||||||||||||||||||||||||||||||
As of December 31, 2011: | ||||||||||||||||||||||||||||||||||||||
Commodity | Trade Date | Effective Date | Notional A | Termination Date | ||||||||||||||||||||||||||||||||||
mount | ||||||||||||||||||||||||||||||||||||||
Copper | 9/19/11 | 10/1/11 | $ | 4,533 | 6/30/12 | |||||||||||||||||||||||||||||||||
Copper | 9/28/11 | 10/1/11 | $ | 1,935 | 6/30/12 | |||||||||||||||||||||||||||||||||
Foreign currency contracts | ' | |||||||||||||||||||||||||||||||||||||
As of December 31, 2013, we had the following foreign currency contracts outstanding (in thousands): | ||||||||||||||||||||||||||||||||||||||
Currency Denomination | Notional Amount | |||||||||||||||||||||||||||||||||||||
United States Dollar (USD) | 650 | |||||||||||||||||||||||||||||||||||||
British Pound Sterling (GBP) | 4,000 | |||||||||||||||||||||||||||||||||||||
Impact of interest rate swaps and commodity contracts on consolidated statement of operations | ' | |||||||||||||||||||||||||||||||||||||
The following presents the impact of interest rate swaps, commodity contracts and currency contracts on the consolidated statement of comprehensive income for the year ended December 31, 2013, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||
Amount of gain (loss) | Location of gain (loss) | Amount of loss reclassified from AOCI into net income (loss) for the twelve months ended December 31, | Amount of gain (loss) | |||||||||||||||||||||||||||||||||||
recognized in AOCI for | recognized in net income (loss) on ineffective portion of hedges | recognized in net income | ||||||||||||||||||||||||||||||||||||
the twelve months ended | (loss) on hedges | |||||||||||||||||||||||||||||||||||||
December 31, | (ineffective portion) for | |||||||||||||||||||||||||||||||||||||
twelve months ended | ||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps (1) | $ | 774 | $ | 365 | $ | (683 | ) | Interest Expense | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Commodity and foreign currency contracts | $ | - | $ | - | $ | - | Cost of goods sold | $ | - | $ | - | $ | - | $ | (661 | ) | $ | 386 | $ | (861 | ) | |||||||||||||||||
Interest rate swaps (2) | $ | - | $ | - | $ | - | Interest Expense | $ | (2,381 | ) | $ | (2,082 | ) | $ | - | $ | 2,973 | $ | 1,695 | $ | - | |||||||||||||||||
-1 | Amounts recorded for the twelve months ended December 31, 2012 and 2011 relate to the interest rate swap agreements outstanding prior to May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
-2 | Amounts recorded for the twelve months ended December 31, 2013 and 2012 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||||||||||||||||||||||||||
Breakout of net sales between residential, industrial/commercial, and other products | ' | |||||||||||||||||||||||||||||||||||||
The breakout of net sales between residential, commercial & industrial, and other products is as follows: | ||||||||||||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||
Residential power products | $ | 843,727 | $ | 705,444 | $ | 491,016 | ||||||||||||||||||||||||||||||||
Commercial & industrial power products | 569,890 | 410,341 | 250,270 | |||||||||||||||||||||||||||||||||||
Other | 72,148 | 60,521 | 50,690 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,485,765 | $ | 1,176,306 | $ | 791,976 |
Balance_Sheet_Details_Tables
Balance Sheet Details (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Balance Sheet Details [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw material | $ | 183,787 | $ | 168,459 | |||||
Work-in-process | 9,620 | 8,580 | |||||||
Finished goods | 113,404 | 55,777 | |||||||
Reserves for excess and obsolescence | (6,558 | ) | (6,999 | ) | |||||
Total | $ | 300,253 | $ | 225,817 | |||||
Property and equipment | ' | ||||||||
Property and equipment consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land and improvements | $ | 7,416 | $ | 6,511 | |||||
Buildings and improvements | 96,161 | 68,934 | |||||||
Machinery and equipment | 54,847 | 42,581 | |||||||
Dies and tools | 17,071 | 15,406 | |||||||
Vehicles | 1,979 | 1,872 | |||||||
Office equipment | 17,304 | 12,993 | |||||||
Leasehold improvements | 2,229 | 1,393 | |||||||
Construction in progress | 9,724 | 3,439 | |||||||
Gross property and equipment | 206,731 | 153,129 | |||||||
Accumulated depreciation | (60,341 | ) | (48,411 | ) | |||||
Total | $ | 146,390 | $ | 104,718 | |||||
Other accrued liabilities | ' | ||||||||
Other accrued liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued commissions | $ | 10,254 | $ | 7,467 | |||||
Accrued interest | 10,907 | 15,809 | |||||||
Product warranty obligations – short term | 26,080 | 26,284 | |||||||
Deferred revenue related to extended warranty – short term | 3,325 | 2,468 | |||||||
Accrued dividends for unvested restricted stock | 2,472 | 3,957 | |||||||
Accrued volume rebates | 9,418 | 7,991 | |||||||
Accrued customer prepayments | 3,393 | 6,569 | |||||||
Other accrued selling expenses | 8,659 | 7,753 | |||||||
Earn-out obligations | 12,518 | - | |||||||
Other accrued liabilities | 5,971 | 7,783 | |||||||
Total | $ | 92,997 | $ | 86,081 | |||||
Other long term liabilities | ' | ||||||||
Other long-term liabilities consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Accrued pension costs | $ | 10,385 | $ | 23,174 | |||||
Product warranty obligations – long term | 7,654 | 9,827 | |||||||
Deferred revenue related to extended warranty – long term | 19,767 | 11,006 | |||||||
Deferred tax liabilities | 14,966 | - | |||||||
Other long-term liabilities | 2,168 | 2,335 | |||||||
Total | $ | 54,940 | $ | 46,342 |
Product_Warranty_Obligations_T
Product Warranty Obligations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Product Warranty Obligations [Abstract] | ' | ||||||||||||
Changes in product warranty obligation | ' | ||||||||||||
The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to our extended warranty coverage: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 36,111 | $ | 24,643 | $ | 17,835 | |||||||
Payments | (18,484 | ) | (19,801 | ) | (17,562 | ) | |||||||
Provision for warranties issued | 33,707 | 34,173 | 21,356 | ||||||||||
Changes in estimates for pre-existing warranties | (17,600 | ) | (2,904 | ) | 3,014 | ||||||||
Balance at end of year | $ | 33,734 | $ | 36,111 | $ | 24,643 | |||||||
The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 13,474 | $ | 9,737 | $ | 4,643 | |||||||
Deferred revenue on extended warranty contracts sold | 11,998 | 5,547 | 6,368 | ||||||||||
Amortization of deferred revenue on extended warranty contracts | (2,380 | ) | (1,810 | ) | (1,274 | ) | |||||||
Balance at end of year | $ | 23,092 | $ | 13,474 | $ | 9,737 | |||||||
Product warranty obligations included in consolidated balance sheets | ' | ||||||||||||
Product warranty obligations and warranty related deferred revenues are included in the balance sheets as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Product warranty liability | |||||||||||||
Current portion - other accrued liabilities | $ | 26,080 | $ | 26,284 | |||||||||
Long-term portion - other long-term liabilities | 7,654 | 9,827 | |||||||||||
Total | $ | 33,734 | $ | 36,111 | |||||||||
Deferred revenue related to extended warranty | |||||||||||||
Current portion - other accrued liabilities | $ | 3,325 | $ | 2,468 | |||||||||
Long-term portion - other long-term liabilities | 19,767 | 11,006 | |||||||||||
Total | $ | 23,092 | $ | 13,474 |
Credit_Agreements_Tables
Credit Agreements (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Credit Agreements [Abstract] | ' | ||||||||
Short-term borrowings | ' | ||||||||
Short-term borrowings are included in the balance sheets as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
ABL facility | $ | - | $ | - | |||||
Other lines of credit, as described below | 9,575 | 12,550 | |||||||
Total | $ | 9,575 | $ | 12,550 | |||||
Long-term borrowings | ' | ||||||||
Long-term borrowings are included in the balance sheets as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Term loan | $ | 1,197,000 | $ | 897,750 | |||||
Discount on debt | (12,735 | ) | (16,482 | ) | |||||
Capital lease obligation | 2,529 | - | |||||||
Other | 1,026 | - | |||||||
Total | 1,187,820 | 881,268 | |||||||
Less current portion of debt | 12,286 | 82,250 | |||||||
Less current portion of capital lease obligation | 185 | - | |||||||
Total | $ | 1,175,349 | $ | 799,018 | |||||
Maturities of long-term borrowings outstanding | ' | ||||||||
Maturities of long-term borrowings outstanding at December 31, 2013, are as follows: | |||||||||
Year | |||||||||
2014 | $ | 12,750 | |||||||
2015 | 12,621 | ||||||||
2016 | 12,229 | ||||||||
2017 | 12,205 | ||||||||
After 2018 | 1,150,750 | ||||||||
Total | $ | 1,200,555 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of basic and diluted net income per share | ' | ||||||||||||
The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator- net income | $ | 174,539 | $ | 93,223 | $ | 324,643 | |||||||
Denominator- weighted average shares | |||||||||||||
Basic | 68,081,632 | 67,360,632 | 67,130,356 | ||||||||||
Dilutive effect of stock compensation awards (1) | 1,585,897 | 1,832,506 | 667,015 | ||||||||||
Diluted | 69,667,529 | 69,193,138 | 67,797,371 | ||||||||||
Net income per share | |||||||||||||
Basic | $ | 2.56 | $ | 1.38 | $ | 4.84 | |||||||
Diluted | $ | 2.51 | $ | 1.35 | $ | 4.79 | |||||||
(1) Excludes approximately 10,300 and 363,000 stock options and restricted stock awards for the twelve month periods ended December 31, 2013 and December 31, 2012, respectively, as the impact of such awards was anti-dilutive. There were no anti-dilutive awards for the twelve month period ended December 31, 2011. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Provision for income taxes | ' | ||||||||||||
The Company’s provision for income taxes consists of the following: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 48,287 | $ | 34,170 | $ | 14,312 | |||||||
State | 5,648 | 3,854 | 1,885 | ||||||||||
Foreign | 2,214 | 81 | – | ||||||||||
56,149 | 38,105 | 16,197 | |||||||||||
Deferred: | |||||||||||||
Federal | 42,003 | 21,972 | 15,632 | ||||||||||
State | 5,523 | 3,048 | 1,887 | ||||||||||
Foreign | 167 | 25 | – | ||||||||||
47,693 | 25,045 | 17,519 | |||||||||||
Change in valuation allowance | 335 | (21 | ) | (271,393 | ) | ||||||||
Provision for income taxes | $ | 104,177 | $ | 63,129 | $ | (237,677 | ) | ||||||
Significant components of deferred tax assets and liabilities | ' | ||||||||||||
Significant components of deferred tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Goodwill and intangible assets | $ | 74,992 | $ | 125,457 | |||||||||
Accrued expenses | 24,263 | 26,606 | |||||||||||
Deferred revenue | 4,413 | 3,503 | |||||||||||
Inventories | 4,483 | 2,544 | |||||||||||
Pension obligations | 4,043 | 9,064 | |||||||||||
Stock-based compensation | 6,609 | 6,408 | |||||||||||
Operating loss and credit carryforwards | 976 | 24,915 | |||||||||||
Interest rate swaps | - | 1,119 | |||||||||||
Other | 2,089 | 36 | |||||||||||
Valuation allowance | (1,021 | ) | (806 | ) | |||||||||
Total deferred tax assets | 120,847 | 198,846 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation | 15,163 | 12,274 | |||||||||||
Debt refinancing costs | 7,494 | - | |||||||||||
Prepaid expenses | 1,183 | 1,131 | |||||||||||
Total deferred tax liabilities | 23,840 | 13,405 | |||||||||||
Net deferred tax asset | $ | 97,007 | $ | 185,441 | |||||||||
Net current and noncurrent components of deferred taxes | ' | ||||||||||||
The net current and noncurrent components of deferred taxes included in the consolidated balance sheets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net current deferred tax assets | $ | 26,869 | $ | 48,687 | |||||||||
Net long-term deferred tax assets | 86,125 | 137,560 | |||||||||||
Net long-term deferred tax liabilities | (14,966 | ) | - | ||||||||||
Valuation allowance | (1,021 | ) | (806 | ) | |||||||||
Net deferred tax assets | $ | 97,007 | $ | 185,441 | |||||||||
Reconciliation of statutory tax rates and effective tax rates | ' | ||||||||||||
A reconciliation of the statutory tax rates and the effective tax rates for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes | 3.7 | 4.1 | 4 | ||||||||||
Valuation allowance | 0.2 | - | (312.3 | ) | |||||||||
Other | -1.5 | 1.3 | - | ||||||||||
Effective tax rate | 37.4 | % | 40.4 | % | (273.3 | )% |
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Benefit Plans [Abstract] | ' | ||||||||||||||||||||
Information related to the Pension Plans | ' | ||||||||||||||||||||
The Company uses a December 31 measurement date for the Pension Plans. Information related to the Pension Plans is as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Accumulated benefit obligation at end of period | $ | 52,825 | $ | 59,744 | |||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||
Projected benefit obligation at beginning of period | $ | 59,744 | $ | 53,467 | |||||||||||||||||
Interest cost | 2,423 | 2,453 | |||||||||||||||||||
Net actuarial (gain) loss | (7,695 | ) | 5,332 | ||||||||||||||||||
Benefits paid | (1,647 | ) | (1,508 | ) | |||||||||||||||||
Projected benefit obligation at end of period | $ | 52,825 | $ | 59,744 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 36,570 | $ | 31,423 | |||||||||||||||||
Actual return on plan assets | 6,465 | 4,268 | |||||||||||||||||||
Company contributions | 1,052 | 2,387 | |||||||||||||||||||
Benefits paid | (1,647 | ) | (1,508 | ) | |||||||||||||||||
Fair value of plan assets at end of period | $ | 42,440 | $ | 36,570 | |||||||||||||||||
Funded status: accrued pension liability included in other long-term liabilities | $ | (10,385 | ) | $ | (23,174 | ) | |||||||||||||||
Amounts recognized in accumulated other comprehensive income | |||||||||||||||||||||
Net actuarial loss | $ | (4,393 | ) | $ | (12,081 | ) | |||||||||||||||
Additional information related to the Pension Plans | ' | ||||||||||||||||||||
Additional information related to the Pension Plans is as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Components of net periodic pension expense: | |||||||||||||||||||||
Interest cost | 2,423 | 2,453 | 2,369 | ||||||||||||||||||
Expected return on plan assets | (2,520 | ) | (2,398 | ) | (2,342 | ) | |||||||||||||||
Amortization of net loss | 1,108 | 909 | 273 | ||||||||||||||||||
Net periodic pension expense | $ | 1,011 | $ | 964 | $ | 300 | |||||||||||||||
Weighted-average assumptions | ' | ||||||||||||||||||||
Weighted-average assumptions used to determine the benefit obligations are as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Discount rate – salaried pension plan | 4.98 | % | 4.1 | % | |||||||||||||||||
Discount rate – hourly pension plan | 5.01 | % | 4.14 | % | |||||||||||||||||
Rate of compensation increase (1) | n/ | a | n/ | a | |||||||||||||||||
-1 | No compensation increase was assumed as the plans were frozen effective December 31, 2008. | ||||||||||||||||||||
Weighted-average assumptions used to determine net periodic pension expense are as follows: | |||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.14 | % | 4.65 | % | 5.23 | % | |||||||||||||||
Expected long-term rate of return on plan assets | 6.95 | 7.57 | 7.62 | ||||||||||||||||||
Rate of compensation increase (1) | n/ | a | n/ | a | n/ | a | |||||||||||||||
-1 | No compensation increase was assumed as the plans were frozen effective December 31, 2008. | ||||||||||||||||||||
Pension Plan's weighted-average asset allocation | ' | ||||||||||||||||||||
The Pension Plan’s weighted-average asset allocation at December 31, 2013 and 2012, by asset category, is as follows: | |||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||
Asset Category | Target | Dollars | % | Dollars | % | ||||||||||||||||
Fixed Income | 24 | % | 7,307 | 17 | % | 8,736 | 24 | % | |||||||||||||
Domestic equity | 49 | % | 23,903 | 56 | % | 17,926 | 49 | % | |||||||||||||
International equity | 17 | % | 7,424 | 18 | % | 6,257 | 17 | % | |||||||||||||
Real estate | 10 | % | 3,806 | 9 | % | 3,651 | 10 | % | |||||||||||||
Total | 100 | % | $ | 42,440 | 100 | % | $ | 36,570 | 100 | % | |||||||||||
Fair value of plan assets | ' | ||||||||||||||||||||
The fair values of the Pension Plan's assets at December 31, 2013 are as follows: | |||||||||||||||||||||
Quoted prices in active markets for identical asset | |||||||||||||||||||||
(level 1) | Significant observable inputs | Significant unobservable inputs | |||||||||||||||||||
(level 2) | (level 3) | ||||||||||||||||||||
Total | |||||||||||||||||||||
Mutual fund | $ | 39,759 | $ | 39,759 | $ | – | $ | – | |||||||||||||
Collective trust | 2,681 | – | 2,681 | – | |||||||||||||||||
Total | $ | 42,440 | $ | 39,759 | $ | 2,681 | $ | – | |||||||||||||
The fair values of the Pension Plan's assets at December 31, 2012 are as follows: | |||||||||||||||||||||
Quoted prices in active markets for identical asset | |||||||||||||||||||||
(level 1) | Significant observable inputs | Significant unobservable inputs | |||||||||||||||||||
(level 2) | (level 3) | ||||||||||||||||||||
Total | |||||||||||||||||||||
Mutual fund | $ | 33,683 | $ | 33,683 | $ | – | $ | – | |||||||||||||
Collective trust | 2,887 | – | 2,887 | – | |||||||||||||||||
Total | $ | 36,570 | $ | 33,683 | $ | 2,887 | $ | – | |||||||||||||
Expected benefit payments | ' | ||||||||||||||||||||
The following benefit payments are expected to be paid from the Pension Plans: | |||||||||||||||||||||
Year | |||||||||||||||||||||
2014 | $ | 1,776 | |||||||||||||||||||
2015 | 1,838 | ||||||||||||||||||||
2016 | 1,971 | ||||||||||||||||||||
2017 | 2,176 | ||||||||||||||||||||
2018 | 2,279 | ||||||||||||||||||||
Years 2019 – 2023 | 13,353 |
Share_Plans_Tables
Share Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share Plans [Abstract] | ' | ||||||||||||||||
Weighted-average assumptions used | ' | ||||||||||||||||
The weighted-average assumptions used in the Black-Scholes-Merton option pricing model for 2013, 2012 and 2011 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
2011 | |||||||||||||||||
Weighted average grant date fair value | $ | 16.3 | $ | 12.13 | $ | 11.1 | |||||||||||
Assumptions: | |||||||||||||||||
Expected stock price volatility | 47 | % | 45 | % | 50 | % | |||||||||||
Risk free interest rate | 1.21 | % | 1.22 | % | 2.69 | % | |||||||||||
Expected annual dividend per share | $ | - | $ | - | $ | - | |||||||||||
Expected life of options (years) | 6.25 | 6.25 | 6.5 | ||||||||||||||
Summary of stock option activity and related information | ' | ||||||||||||||||
A summary of the Company’s stock option activity and related information for the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise Price | Remaining | Value | |||||||||||||||
Contractual Term | ($ in thousands) | ||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2010 | 4,236,259 | 13.02 | 9.1 | $ | 13,349 | ||||||||||||
Granted | 179,877 | 21.26 | |||||||||||||||
Exercised | (107,591 | ) | 13 | ||||||||||||||
Expired | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding as of December 31, 2011 | 4,308,545 | 13.36 | 8.2 | $ | 63,193 | ||||||||||||
Granted | 256,112 | 21.28 | |||||||||||||||
Exercised | (1,113,827 | ) | 13.21 | ||||||||||||||
Expired | - | - | |||||||||||||||
Forfeited | (10,788 | ) | 20.52 | ||||||||||||||
Outstanding as of December 31, 2012 | 3,440,042 | 14.38 | 9 | $ | 68,549 | ||||||||||||
Granted | 253,857 | 35.04 | |||||||||||||||
Exercised | (703,326 | ) | 6.05 | ||||||||||||||
Expired | (1,625 | ) | 20.94 | ||||||||||||||
Forfeited | (51,647 | ) | 17.02 | ||||||||||||||
Outstanding as of December 31, 2013 | 2,937,301 | 5.74 | 9.5 | $ | 148,369 | ||||||||||||
Exercisable as of December 31, 2013 | 802,034 | 2.82 | 9.5 | $ | 42,856 | ||||||||||||
Summary of restricted share awards activity | ' | ||||||||||||||||
A summary of the Company's restricted share awards activity for the three years ended December 31, 2013 is as follows: | |||||||||||||||||
Non-vested Stock Awards | Shares | Weighted-Average | |||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Non-vested as of December 31, 2010 | 430,155 | $ | 13.02 | ||||||||||||||
Granted | 59,147 | 20.59 | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | - | - | |||||||||||||||
Non-vested as of December 31, 2011 | 489,302 | $ | 13.93 | ||||||||||||||
Granted | 195,771 | 26.94 | |||||||||||||||
Vested | - | - | |||||||||||||||
Forfeited | (20,002 | ) | $ | 11.96 | |||||||||||||
Non-vested as of December 31, 2012 | 665,071 | $ | 17.75 | ||||||||||||||
Granted | 112,494 | 37.82 | |||||||||||||||
Vested | (450,537 | ) | 14.21 | ||||||||||||||
Forfeited | (22,622 | ) | 25.36 | ||||||||||||||
Non-vested as of December 31, 2013 | 304,406 | $ | 29.68 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Aggregate minimum rental commitments | ' | ||||
The approximate aggregate minimum rental commitments at December 31, 2013, are as follows: | |||||
Amount | |||||
Year | |||||
2014 | $ | 1,952 | |||
2015 | 1,900 | ||||
2016 | 1,543 | ||||
2017 | 830 | ||||
2018 | 3 | ||||
Total | $ | 6,228 |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information (Unaudited) [Abstract] | ' | ||||||||||||||||
Unaudited quarterly financial information | ' | ||||||||||||||||
Quarters Ended 2013 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 399,572 | $ | 346,688 | $ | 363,269 | $ | 376,236 | |||||||||
Gross profit | 153,462 | 130,953 | 139,463 | 145,682 | |||||||||||||
Operating income | 96,525 | 76,433 | 87,289 | 91,218 | |||||||||||||
Net income | 50,674 | 28,254 | 47,093 | 48,518 | |||||||||||||
Net income per common share, basic: | $ | 0.75 | $ | 0.41 | $ | 0.69 | $ | 0.71 | |||||||||
Net income per common share, diluted: | $ | 0.73 | $ | 0.4 | $ | 0.67 | $ | 0.69 | |||||||||
Quarters Ended 2012 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 294,561 | $ | 239,137 | $ | 300,586 | $ | 342,022 | |||||||||
Gross profit | 111,005 | 87,429 | 115,813 | 126,153 | |||||||||||||
Operating income | 59,493 | 37,158 | 59,124 | 67,780 | |||||||||||||
Net income | 30,060 | 9,335 | 25,541 | 28,287 | |||||||||||||
Net income per common share, basic: | $ | 0.45 | $ | 0.14 | $ | 0.38 | $ | 0.42 | |||||||||
Net income per common share, diluted: | $ | 0.44 | $ | 0.14 | $ | 0.37 | $ | 0.41 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Valuation and qualifying accounts | ' | ||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Balance at | Reserves | Additions | Charges to | Balance at | |||||||||||||||||
Beginning | Assumed in | Charged to | Reserve, Net | End | |||||||||||||||||
of Year | Acquisition | Earnings | -1 | of Year | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 1,166 | $ | 496 | $ | 1,037 | $ | (41 | ) | $ | 2,658 | ||||||||||
Reserves for inventory | 6,999 | 1,131 | 72 | (1,644 | ) | 6,558 | |||||||||||||||
Valuation of deferred tax assets | 806 | (120 | ) | 335 | – | 1,021 | |||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 789 | $ | 383 | $ | 204 | $ | (210 | ) | $ | 1,166 | ||||||||||
Reserves for inventory | 4,717 | 1,694 | 1,785 | (1,197 | ) | 6,999 | |||||||||||||||
Valuation of deferred tax assets | – | 827 | (21 | ) | – | 806 | |||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 723 | $ | 171 | $ | (7 | ) | $ | (98 | ) | $ | 789 | |||||||||
Reserves for inventory | 4,059 | 657 | 1,092 | (1,091 | ) | 4,717 | |||||||||||||||
Valuation of deferred tax assets | 271,393 | – | (271,393 | ) | – | – | |||||||||||||||
(1) Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Customer | Business | Customer | |||
Business | Customer | ||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Number of major customers | ' | ' | 0 | 0 | 0 |
Percentage of revenue considered for accounting of major customer (in hundredths) | ' | ' | 6.00% | 7.00% | 10.00% |
Indefinite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Trade names, Cost | ' | ' | $182,585 | $168,220 | ' |
Trade names, Accumulated Impairment | ' | ' | -9,389 | -9,389 | ' |
Trade names, Amortized Cost | ' | ' | 173,196 | 158,831 | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Cost | ' | ' | 436,883 | 415,343 | ' |
Accumulated Amortization | ' | ' | -327,254 | -301,435 | ' |
Amortized Cost | ' | ' | 109,629 | 113,908 | ' |
Amortization of intangibles | ' | ' | 25,819 | 45,867 | 48,020 |
Estimated amortization expense [Abstract] | ' | ' | ' | ' | ' |
2014 | ' | ' | 21,058 | ' | ' |
2015 | ' | ' | 19,718 | ' | ' |
2016 | ' | ' | 17,892 | ' | ' |
2017 | ' | ' | 14,581 | ' | ' |
2018 | ' | ' | 10,228 | ' | ' |
Debt Issuance Costs [Abstract] | ' | ' | ' | ' | ' |
Amortization of deferred finance costs and original issue discount | ' | ' | 4,772 | 3,759 | 1,986 |
Deferred costs expected amortization expense, 2014 | ' | ' | 4,919 | ' | ' |
Deferred costs expected amortization expense, 2015 | ' | ' | 5,033 | ' | ' |
Deferred costs expected amortization expense, 2016 | ' | ' | 5,165 | ' | ' |
Deferred costs expected amortization expense, 2017 | ' | ' | 5,273 | ' | ' |
Deferred costs expected amortization expense, 2018 | ' | ' | 5,143 | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Gross Goodwill | ' | ' | 1,111,480 | 1,056,136 | 1,050,666 |
Accumulated Impairment | ' | ' | -503,193 | -503,193 | -503,193 |
Net Goodwill | ' | ' | 608,287 | 552,943 | 547,473 |
Acquisition of a business, Gross | ' | ' | 56,605 | 5,470 | ' |
Acquisition of a business, Impairment loss | ' | ' | 0 | 0 | ' |
Acquisition of a business, Net | ' | ' | 56,605 | 5,470 | ' |
Sale of business, net Gross | ' | ' | -1,261 | 0 | ' |
Sale of business, net accumulated impairment | ' | ' | 0 | 0 | ' |
Goodwill sale of business net | ' | ' | -1,261 | 0 | ' |
Number of businesses acquired | ' | ' | 2 | 2 | ' |
Business acquisition, net of cash acquired | ' | ' | 122,391 | 47,044 | ' |
Goodwill resulted from acquisition | ' | ' | 57,044 | 5,545 | ' |
Adjustment in goodwill due to finalization of purchase price allocation | -439 | -75 | ' | ' | ' |
Write down of trade name | ' | ' | 0 | 0 | 9,389 |
Advertising and Co-Op Advertising [Abstract] | ' | ' | ' | ' | ' |
Advertising expense | ' | ' | 19,910 | 13,360 | 11,742 |
Research and Development [Abstract] | ' | ' | ' | ' | ' |
Research and development | ' | ' | 29,271 | 23,499 | 16,476 |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | 1,204 | -34 | ' |
Pension liability adjustment, net of tax | ' | ' | -4,393 | -12,081 | ' |
Unrealized losses on cash flow hedges, net of tax | ' | ' | 774 | -2,381 | ' |
Accumulated other comprehensive loss | ' | ' | -2,415 | -14,496 | ' |
Pension liability, tax effect | ' | ' | 886 | -4,174 | ' |
Unrealized losses on cash flow hedges, tax effect | ' | ' | 462 | -109 | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -14,496 | ' | ' |
Other comprehensive income before reclassifications | ' | ' | 9,006 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 3,075 | ' | ' |
Net current-period other comprehensive income | ' | ' | 12,081 | 861 | -5,605 |
Accumulated other comprehensive loss, ending balance | ' | ' | -2,415 | -14,496 | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Carrying value of long term debt | ' | ' | 1,197,000 | ' | ' |
Fair value of derivative asset | ' | ' | 1,385 | ' | ' |
Fair value of derivatives liability | ' | ' | ' | 2,936 | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of long term debt | ' | ' | 1,199,993 | ' | ' |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 1,236 | -2,973 | ' |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 0 | 0 | ' |
Interest rate swaps [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 1,236 | -2,973 | ' |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 69 | 111 | ' |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 0 | 0 | ' |
Commodity contracts [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 69 | 111 | ' |
Foreign Exchange Contract [Member] | Fair value measurements on recurring basis [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 56 | ' | ' |
Foreign Exchange Contract [Member] | Fair value measurements on recurring basis [Member] | Quoted Prices in Active Markets for Identical Contracts (Level 1) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 0 | ' | ' |
Foreign Exchange Contract [Member] | Fair value measurements on recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' |
Assets (liabilities) measured at fair value on a recurring basis [Abstract] | ' | ' | ' | ' | ' |
Fair value of derivatives | ' | ' | 56 | ' | ' |
Foreign Currency Translation Adjustments [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | 1,204 | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -34 | ' | ' |
Other comprehensive income before reclassifications | ' | ' | 1,238 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 0 | ' | ' |
Net current-period other comprehensive income | ' | ' | 1,238 | ' | ' |
Accumulated other comprehensive loss, ending balance | ' | ' | 1,204 | ' | ' |
Defined Benefit Pension Plan [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | -4,393 | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -12,081 | ' | ' |
Other comprehensive income before reclassifications | ' | ' | 6,994 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 694 | ' | ' |
Net current-period other comprehensive income | ' | ' | 7,688 | ' | ' |
Accumulated other comprehensive loss, ending balance | ' | ' | -4,393 | ' | ' |
Unrealized gain (loss) on cash flow hedges [Member] | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | 774 | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ' | ' | -2,381 | ' | ' |
Other comprehensive income before reclassifications | ' | ' | 774 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | ' | ' | 2,381 | ' | ' |
Net current-period other comprehensive income | ' | ' | 3,155 | ' | ' |
Accumulated other comprehensive loss, ending balance | ' | ' | 774 | ' | ' |
Trade names [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '0 years | ' | ' |
Cost | ' | ' | 8,775 | 8,775 | ' |
Accumulated Amortization | ' | ' | -8,775 | -8,775 | ' |
Amortized Cost | ' | ' | 0 | 0 | ' |
Customer lists [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '7 years | ' | ' |
Cost | ' | ' | 294,627 | 273,355 | ' |
Accumulated Amortization | ' | ' | -251,863 | -235,532 | ' |
Amortized Cost | ' | ' | 42,764 | 37,823 | ' |
Patents [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '15 years | ' | ' |
Cost | ' | ' | 118,921 | 118,921 | ' |
Accumulated Amortization | ' | ' | -56,503 | -48,619 | ' |
Amortized Cost | ' | ' | 62,418 | 70,302 | ' |
Unpatented technology [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '12 years | ' | ' |
Cost | ' | ' | 13,169 | 13,165 | ' |
Accumulated Amortization | ' | ' | -9,064 | -7,696 | ' |
Amortized Cost | ' | ' | 4,105 | 5,469 | ' |
Software [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '8 years | ' | ' |
Cost | ' | ' | 1,046 | 1,014 | ' |
Accumulated Amortization | ' | ' | -912 | -779 | ' |
Amortized Cost | ' | ' | 134 | 235 | ' |
Non-compete [Member] | ' | ' | ' | ' | ' |
Finite lived intangible assets [Abstract] | ' | ' | ' | ' | ' |
Weighted Average Amortization Years | ' | ' | '2 years | ' | ' |
Cost | ' | ' | 345 | 113 | ' |
Accumulated Amortization | ' | ' | -137 | -34 | ' |
Amortized Cost | ' | ' | $208 | $79 | ' |
Land improvements [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Land improvements [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '15 years | ' | ' |
Buildings and improvements [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Buildings and improvements [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '40 years | ' | ' |
Leasehold improvements [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '7 years | ' | ' |
Leasehold improvements [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '20 years | ' | ' |
Machinery and equipment [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '5 years | ' | ' |
Machinery and equipment [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '20 years | ' | ' |
Dies and tools [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' |
Dies and tools [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Vehicles [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' |
Vehicles [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '5 years | ' | ' |
Office equipment [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '3 years | ' | ' |
Office equipment [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Estimated useful lives of property and equipment [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives | ' | ' | '10 years | ' | ' |
Accounts Receivable [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Risk percentage (in hundredths) | ' | ' | 11.00% | 9.00% | ' |
Significant_Accounting_Policie4
Significant Accounting Policies, Derivative Instruments (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
USD ($) | USD ($) | USD ($) | Interest rate swaps [Member] | Interest rate swaps [Member] | Interest rate swaps [Member] | Interest rate swaps [Member] | Defined Benefit Pension Plans [Member] | Defined Benefit Pension Plans [Member] | Commodity contracts [Member] | Commodity contracts [Member] | Commodity contracts [Member] | Commodity forward contract one [Member] | Commodity forward contract two [Member] | Commodity Forward Contract Three [Member] | Commodity forward contract Four [Member] | Interest rate swap one [Member] | Interest rate swap one [Member] | Interest rate swap one [Member] | Interest rate swap two [Member] | Interest rate swap two [Member] | Interest rate swap two [Member] | Foreign Currencies [Member] | Foreign Currencies [Member] | Interest expense [Member] | Interest expense [Member] | |||
Contract | Contract | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | Interest rate swaps [Member] | Interest rate swaps [Member] | ||||||
Contract | Contract | USD ($) | USD ($) | |||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maturity period of contracts, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of outstanding contracts | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Derivative, notional amount | ' | ' | ' | ' | ' | $200,000 | $300,000 | ' | ' | ' | ' | ' | $4,533 | $1,935 | $3,472 | $2,169 | $100,000 | $200,000 | $200,000 | $100,000 | $100,000 | $100,000 | $650 | £ 4,000 | ' | ' | ||
Number of new contracts entered | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gain (Loss) recognized on derivative contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | -605 | 386 | -861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Derivative, fixed LIBOR rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.74% | 1.91% | 1.73% | 1.74% | 2.22% | 1.03% | ' | ' | ' | ' | ||
Derivative Instruments, Gain (Loss) Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gross | ' | ' | ' | ' | ' | ' | ' | -1,108 | [1] | -909 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,490 | -2,177 |
Tax benefit | ' | ' | ' | ' | ' | ' | ' | 414 | [1] | 356 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109 | 95 |
Net of tax | 2,381 | 2,082 | 0 | ' | ' | ' | ' | -694 | [1] | -553 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,381 | -2,082 |
Outstanding commodity forward contracts [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Trade Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19-Sep-11 | 28-Sep-11 | 29-Oct-12 | 21-Jun-13 | 23-Oct-13 | 1-Apr-11 | 21-Jan-10 | 23-Oct-13 | 1-Apr-11 | 29-Jun-10 | ' | ' | ' | ' | ||
Effective date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Oct-11 | 1-Oct-11 | 1-Jan-13 | 1-Oct-13 | 1-Jul-14 | 1-Jul-12 | 1-Jul-10 | 1-Jul-14 | 1-Oct-12 | 1-Oct-10 | ' | ' | ' | ' | ||
Notional Amount | ' | ' | ' | ' | ' | $200,000 | $300,000 | ' | ' | ' | ' | ' | $4,533 | $1,935 | $3,472 | $2,169 | $100,000 | $200,000 | $200,000 | $100,000 | $100,000 | $100,000 | $650 | £ 4,000 | ' | ' | ||
Termination Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-12 | 30-Jun-12 | 30-Sep-13 | 30-Jun-14 | 1-Jul-18 | 1-Jul-13 | 1-Jul-12 | 1-Jul-18 | 1-Oct-13 | 1-Oct-12 | ' | ' | ' | ' | ||
[1] | These actuarial losses are included in the computation of net periodic pension cost. See Note 9 b Benefit Plans for additional details. |
Significant_Accounting_Policie5
Significant Accounting Policies, Continued (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment | ||||||||||||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | |||
Sales in the United States representing percentage of total sales (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 88.00% | 93.00% | 95.00% | |||
Identifiable long-lived assets in the United States representing percentage of total identifiable long-lived assets (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | 98.00% | 100.00% | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | $376,236 | $363,269 | $346,688 | $399,572 | $342,022 | $300,586 | $239,137 | $294,561 | $1,485,765 | $1,176,306 | $791,976 | |||
Residential power products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 843,727 | 705,444 | 491,016 | |||
Commercial & industrial power products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 569,890 | 410,341 | 250,270 | |||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reconciliation from Segment Totals to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 72,148 | 60,521 | 50,690 | |||
Derivatives designated as hedging instruments [Member] | Interest rate swaps [Member] | Interest expense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount of gain (loss) recognized in AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 774 | [1] | 365 | [1] | -683 | [1] |
Amount of loss reclassified from AOCI into net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 0 | [1] |
Amount of gain (loss) recognized in net income (loss) on hedges (ineffective portion) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 0 | [1] |
Derivatives not designated as hedging instruments [Member] | Interest rate swaps [Member] | Interest expense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount of gain (loss) recognized in AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 0 | [2] | 0 | [2] |
Amount of loss reclassified from AOCI into net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2,381 | [2] | -2,082 | [2] | 0 | [2] |
Amount of gain (loss) recognized in net income (loss) on hedges (ineffective portion) | ' | ' | ' | ' | ' | ' | ' | ' | 2,937 | [2] | 1,695 | [2] | 0 | [2] |
Derivatives not designated as hedging instruments [Member] | Commodity and foreign currency contracts [Member] | Cost of goods sold [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount of gain (loss) recognized in AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Amount of loss reclassified from AOCI into net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Amount of gain (loss) recognized in net income (loss) on hedges (ineffective portion) | ' | ' | ' | ' | ' | ' | ' | ' | ($661) | $386 | ($861) | |||
[1] | Amounts recorded for the twelve months ended December 31, 2012 and 2011 relate to the interest rate swap agreements outstanding prior to May 30, 2012, the date the hedging relationships for these agreements were terminated. | |||||||||||||
[2] | Amounts recorded for the twelve months ended December 31, 2013 and 2012 relate to interest rate swap agreements outstanding as of May 30, 2012, the date the hedging relationships for these agreements were terminated. |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
Acquisition of Ottomotores [Member] | Acquisition of Ottomotores [Member] | Acquisition of Ottomotores [Member] | Acquisition of Ottomotores [Member] | Acquisition of Magnum [Member] | Acquisition of Magnum [Member] | Acquisition of Tower Light [Member] | Acquisition of Tower Light [Member] | ||||
Minimum [Member] | Maximum [Member] | Country | |||||||||
kW | kW | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of acquisition agreement | ' | ' | ' | ' | 8-Dec-12 | ' | ' | ' | 3-Oct-11 | ' | 1-Aug-13 |
Industrial diesel gensets size | ' | ' | ' | ' | ' | 15 | 250 | ' | ' | ' | ' |
Goodwill | $57,044 | $5,545 | ' | ' | $5,050 | ' | ' | ' | $20,337 | $38,400 | $38,400 |
Additional goodwill recorded under revised purchase accounting estimates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,328 | ' |
Cash paid, net of cash acquired | 116,113 | 47,044 | 83,907 | ' | 44,769 | ' | ' | ' | 83,907 | ' | 80,239 |
Intangible assets | ' | ' | ' | ' | 16,100 | ' | ' | ' | 56,107 | 67,900 | 67,900 |
Purchase price | 122,391 | 47,044 | ' | ' | ' | ' | ' | ' | 85,490 | 85,812 | 85,812 |
Recorded estimated liability to sellers for contingent consideration | ' | ' | ' | ' | ' | ' | ' | ' | 1,583 | ' | ' |
Decrease in purchase price | ' | ' | ' | 6,278 | ' | ' | ' | 75 | ' | ' | 300 |
Additional intangible assets | ' | ' | ' | 2,590 | ' | ' | ' | ' | ' | ' | ' |
Decrease in goodwill | ' | ' | ' | 439 | ' | ' | ' | 75 | ' | ' | ' |
Number of countries in which subsidiary of entity built leading market position in equipment rental markets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 |
Cash deposit into escrow account to fund future earn-out payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,645 | 6,645 |
Total cash paid | 116,113 | 47,044 | 83,907 | ' | 44,769 | ' | ' | ' | 83,907 | ' | 80,239 |
Estimated earn-out payment | $12,518 | $0 | ' | ' | ' | ' | ' | ' | ' | $12,500 | $12,500 |
Balance_Sheet_Details_Details
Balance Sheet Details (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $183,787 | $168,459 |
Work-in-process | 9,620 | 8,580 |
Finished goods | 113,404 | 55,777 |
Reserves for excess and obsolescence | -6,558 | -6,999 |
Total | 300,253 | 225,817 |
Inventories on consignment | 6,504 | 4,401 |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 206,731 | 153,129 |
Accumulated depreciation | -60,341 | -48,411 |
Total | 146,390 | 104,718 |
Other accrued liabilities [Abstract] | ' | ' |
Accrued commissions | 10,254 | 7,467 |
Accrued interest | 10,907 | 15,809 |
Product warranty obligations - short term | 26,080 | 26,284 |
Deferred revenue related to extended warranty - short term | 3,325 | 2,468 |
Accrued dividends for unvested restricted stock | 2,472 | 3,957 |
Accrued volume rebates | 9,418 | 7,991 |
Accrued customer prepayments | 3,393 | 6,569 |
Other accrued selling expenses | 8,659 | 7,753 |
Earn-out obligations | 12,518 | 0 |
Other accrued liabilities | 5,971 | 7,783 |
Total | 92,997 | 86,081 |
Other long-term liabilities [Abstract] | ' | ' |
Accrued pension costs | 10,385 | 23,174 |
Product warranty obligations - long term | 7,654 | 9,827 |
Deferred revenue related to extended warranty - long term | 19,767 | 11,006 |
Deferred tax liabilities | 14,966 | 0 |
Other long-term liabilities | 2,168 | 2,335 |
Total | 54,940 | 46,342 |
Land and improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 7,416 | 6,511 |
Buildings and improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 96,161 | 68,934 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 54,847 | 42,581 |
Dies and tools [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 17,071 | 15,406 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 1,979 | 1,872 |
Office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 17,304 | 12,993 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | 2,229 | 1,393 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Gross property and equipment | $9,724 | $3,439 |
Product_Warranty_Obligations_D
Product Warranty Obligations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in product warranty obligations [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $36,111 | $24,643 | $17,835 |
Payments | -18,484 | -19,801 | -17,562 |
Provision for warranties issued | 33,707 | 34,173 | 21,356 |
Changes in estimates for pre-existing warranties | -17,600 | -2,904 | 3,014 |
Balance at end of period | 33,734 | 36,111 | 24,643 |
Deferred revenue related to extended warranty coverage [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 13,474 | 9,737 | 4,643 |
Deferred revenue on extended warranty contracts sold | 11,998 | 5,547 | 6,368 |
Amortization of deferred revenue on extended warranty contracts | -2,380 | -1,810 | -1,274 |
Balance at end of year | 23,092 | 13,474 | 9,737 |
Product warranty obligations included in consolidated balance sheets [Abstract] | ' | ' | ' |
Current portion - other accrued liabilities | 26,080 | 26,284 | ' |
Long-term portion - other long-term liabilities | 7,654 | 9,827 | ' |
Total | 33,734 | 36,111 | 24,643 |
Deferred revenue related to extended warranty [Abstract] | ' | ' | ' |
Current portion - other accrued liabilities | 3,325 | 2,468 | ' |
Long-term portion - other long-term liabilities | 19,767 | 11,006 | ' |
Total | $23,092 | $13,474 | $9,737 |
Credit_Agreements_Details
Credit Agreements (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | 2-May-13 | Feb. 11, 2013 | 31-May-13 | 30-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 09, 2012 | Feb. 09, 2012 | Feb. 09, 2012 | 31-May-13 | 30-May-12 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2012 | 30-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 30-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Base rate [Member] | Adjusted LIBOR rate [Member] | LIBOR Floor Rate [Member] | Tranche A term loan [Member] | Tranche B term loan [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL revolving credit facility [Member] | ABL facility [Member] | ABL facility [Member] | Other lines of credit, as described below [Member] | Other lines of credit, as described below [Member] | |||||||||
Base rate [Member] | Adjusted LIBOR rate [Member] | LIBOR Floor Rate [Member] | Base rate [Member] | Adjusted LIBOR rate [Member] | |||||||||||||||||||||||||||
Short-term borrowings [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings | ' | ' | ' | ' | $9,575 | $12,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $9,575 | $12,550 |
Long-term debt [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on debt | ' | ' | ' | ' | -12,735 | -16,482 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital lease obligations | ' | ' | ' | ' | 2,529 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | 1,026 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and capital lease obligation, gross | ' | ' | ' | ' | 1,187,820 | 881,268 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,197,000 | ' | 897,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of debt | ' | ' | ' | ' | 12,286 | 82,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion of capital lease obligation | ' | ' | ' | ' | 185 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | 1,175,349 | 799,018 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of long-term borrowings outstanding [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | 12,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | 12,621 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | 12,229 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | ' | 12,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After 2018 | ' | ' | ' | ' | 1,150,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | 1,200,555 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000 | 250,000 | 150,000 | ' | ' | ' | 1,200,000 | ' | 900,000 | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' |
Uncommitted incremental term loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | 125,000 | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' | ' |
Cash dividend (in dollars per share) | ' | ' | $5 | $6 | $5 | $6 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant description | ' | ' | ' | ' | 'The ABL Facility continue to bear interest at rates based upon either a base rate plus an applicable margin of 1.00% or adjusted LIBOR rate plus an applicable margin of 2.00%, in each case, subject to adjustments based upon average availability under the ABL Facility. The New ABL Credit Agreement requires the Borrower to maintain a minimum consolidated fixed charge coverage ratio of 1.0x, tested on a quarterly basis, when Availability plus the amount of Qualified Cash (up to $5,000) (as defined in the New ABL Credit Agreement) under the ABL Facility is less than the greater of (i) 10.0% of the Line Cap (as defined in the New ABL Credit Agreement) and (ii) $10,000. The New ABL Credit Agreement also contains covenants and events of default substantially similar to those in the New Term Loan Credit Agreement, as described above. As of December 31, 2013, no amounts were outstanding under the ABL Facility. As of December 31, 2013, the Company had $150,147 of unrestricted cash and cash equivalents and $147,492 of availability under the ABL Facility, net of outstanding letters of credit. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of term loan amortization (in hundredths) | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment of term loan | 30,000 | 80,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 5.00% | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.75% | 0.75% | ' | ' | 1.00% | 2.00% | ' | ' | ' | ' |
Basis spread on variable rate in second quarter of 2014 if net debt leverage ratio falls below 3.00 to 1.00 (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio in multiple | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1.0x | ' | ' | ' | ' | ' | ' | ' |
Qualified Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of aggregate commitments (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Amount availability under agreements as per covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | 150,147 | 108,023 | 93,126 | 78,583 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility amount available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,492 | ' | ' | ' | ' | ' | ' | ' |
New debt issuance cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,409 | 21,824 | 15,309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees paid to creditors as a debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,386 | 13,797 | 18,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,407 | 7,100 | 801 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-off of unamortized debt issuance costs and original issue discount | $924 | $1,839 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,902 | $5,473 | $9,198 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Computation of basic and diluted net income per share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Numerator- net income | $48,518 | $47,093 | $28,254 | $50,674 | $28,287 | $25,541 | $9,335 | $30,060 | $174,539 | $93,223 | $324,643 | |||
Denominator- weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 68,081,632 | 67,360,632 | 67,130,356 | |||
Dilutive effect of stock compensation awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,585,897 | [1] | 1,832,506 | [1] | 667,015 | [1] |
Diluted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 69,667,529 | 69,193,138 | 67,797,371 | |||
Net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in dollars per share) | $0.71 | $0.69 | $0.41 | $0.75 | $0.42 | $0.38 | $0.14 | $0.45 | $2.56 | $1.38 | $4.84 | |||
Diluted (in dollars per share) | $0.69 | $0.67 | $0.40 | $0.73 | $0.41 | $0.37 | $0.14 | $0.44 | $2.51 | $1.35 | $4.79 | |||
Stock options and restricted stock awards [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 10,300 | 363,000 | 0 | |||
[1] | Excludes approximately 10,300 and 363,000 stock options and restricted stock awards for the twelve month periods ended December 31, 2013 and December 31, 2012, respectively, as the impact of such awards was anti-dilutive. There were no anti-dilutive awards for the twelve month period ended December 31, 2011. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current [Abstract] | ' | ' | ' | ' |
Federal | ' | $48,287 | $34,170 | $14,312 |
State | ' | 5,648 | 3,854 | 1,885 |
Foreign | ' | 2,214 | 81 | 0 |
Total | ' | 56,149 | 38,105 | 16,197 |
Deferred [Abstract] | ' | ' | ' | ' |
Federal | ' | 42,003 | 21,972 | 15,632 |
State | ' | 5,523 | 3,048 | 1,887 |
Foreign | ' | 167 | 25 | 0 |
Total | ' | 47,693 | 25,045 | 17,519 |
Change in valuation allowance | ' | 335 | -21 | -271,393 |
Provision for income taxes | ' | 104,177 | 63,129 | -237,677 |
Deferred tax assets [Abstract] | ' | ' | ' | ' |
Goodwill and intangible assets | ' | 74,992 | 125,457 | ' |
Accrued expenses | ' | 24,263 | 26,606 | ' |
Deferred revenue | ' | 4,413 | 3,503 | ' |
Inventories | ' | 4,483 | 2,544 | ' |
Pension obligations | ' | 4,043 | 9,064 | ' |
Stock-based compensation | ' | 6,609 | 6,408 | ' |
Operating loss and credit carryforwards | ' | 976 | 24,915 | ' |
Interest rate swaps | ' | 0 | 1,119 | ' |
Other | ' | 2,089 | 36 | ' |
Valuation allowance | ' | -1,021 | -806 | ' |
Total deferred tax assets | ' | 120,847 | 198,846 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' | ' |
Depreciation | ' | 15,163 | 12,274 | ' |
Debt refinancing costs | ' | 7,494 | 0 | ' |
Prepaid expenses | ' | 1,183 | 1,131 | ' |
Total deferred tax liabilities | ' | 23,840 | 13,405 | ' |
Net deferred tax asset | ' | 97,007 | 185,441 | ' |
Net current and noncurrent components of deferred taxes [Abstract] | ' | ' | ' | ' |
Net current deferred tax assets | ' | 26,869 | 48,687 | ' |
Net long-term deferred tax assets | ' | 86,125 | 137,560 | ' |
Net long-term deferred tax liabilities | ' | -14,966 | 0 | ' |
Valuation allowance | ' | -1,021 | -806 | ' |
Net deferred tax asset | ' | 97,007 | 185,441 | ' |
Period of cumulative net loss positions | ' | '3 years | ' | ' |
Tax benefit on reversal of valuation allowance | 271,393 | ' | ' | ' |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' |
U.S. statutory rate (in hundredths) | ' | 35.00% | 35.00% | 35.00% |
State taxes (in hundredths) | ' | 3.70% | 4.10% | 4.00% |
Valuation allowance (in hundredths) | ' | 0.20% | 0.00% | -312.30% |
Other (in hundredths) | ' | -1.50% | 1.30% | 0.00% |
Effective income tax rates (in hundredths) | ' | 37.40% | 40.40% | -273.30% |
Uncertain tax positions reserves | ' | 0 | 0 | ' |
Undistributed earnings | ' | 8,666 | ' | ' |
State [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Expiration of operating loss carryforward | ' | '2023 and 2025 | ' | ' |
State net operating loss carryforwards | ' | $10 | ' | ' |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Medical and Dental Plan [Abstract] | ' | ' | ' | |||
Contributions to plan by Entity | $9,500 | $8,741 | $6,700 | |||
Stop loss insurance policy amount | 235 | ' | ' | |||
Unpaid claims under medical and dental plan | 1,389 | 1,185 | ' | |||
Other standard medical benefits premiums paid | 2,700 | ' | ' | |||
Savings Plan [Abstract] | ' | ' | ' | |||
Matching contribution (in hundredths) | 50.00% | ' | ' | |||
Percentage of eligible compensation (in hundredths) | 6.00% | ' | ' | |||
Recognized expense | 3,300 | 3,000 | 2,400 | |||
Information related to pension plans [Abstract] | ' | ' | ' | |||
Accumulated benefit obligation at end of period | 52,825 | 59,744 | ' | |||
Change in projected benefit obligation [Roll Forward] | ' | ' | ' | |||
Projected benefit obligation at beginning of period | 59,744 | 53,467 | ' | |||
Interest cost | 2,423 | 2,453 | 2,369 | |||
Net actuarial (gain) loss | -7,695 | 5,332 | ' | |||
Benefits paid | -1,647 | -1,508 | ' | |||
Projected benefit obligation at end of period | 52,825 | 59,744 | 53,467 | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of period | 36,570 | 31,423 | ' | |||
Actual return on plan assets | 6,465 | 4,268 | ' | |||
Company contributions | 1,052 | 2,387 | ' | |||
Benefits paid | -1,647 | -1,508 | ' | |||
Fair value of plan assets at end of period | 42,440 | 36,570 | 31,423 | |||
Funded status: accrued pension liability included in other long-term liabilities | -10,385 | -23,174 | ' | |||
Amounts recognized in accumulated other comprehensive income [Abstract] | ' | ' | ' | |||
Net actuarial loss | -4,393 | -12,081 | ' | |||
Amortization of actuarial loss | 1,108 | ' | ' | |||
Actuarial loss expected to be recognized as a component of net periodic pension expense | 106 | ' | ' | |||
Components of net periodic pension expense: | ' | ' | ' | |||
Interest cost | 2,423 | 2,453 | 2,369 | |||
Expected return on plan assets | -2,520 | -2,398 | -2,342 | |||
Amortization of net loss | 1,108 | 909 | 273 | |||
Net periodic pension expense | 1,011 | 964 | 300 | |||
Weighted-average assumptions used to determine benefit obligation [Abstract] | ' | ' | ' | |||
Rate of compensation increase (in hundredths) | ' | [1] | ' | [1] | ' | |
Weighted-average assumptions used to determine net periodic pension expense [Abstract] | ' | ' | ' | |||
Discount rate (in hundredths) | 4.14% | 4.65% | 5.23% | |||
Expected long-term rate of return on plan assets (in hundredths) | 6.95% | 7.57% | 7.62% | |||
Rate of compensation increase (in hundredths) | ' | [1] | ' | [1] | ' | [1] |
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 100.00% | ' | ' | |||
Pension plan asset allocation | 42,440 | 36,570 | 31,423 | |||
Actual allocation (in hundredths) | 100.00% | 100.00% | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 42,440 | 36,570 | 31,423 | |||
Estimated contributions in 2014 | 2,149 | ' | ' | |||
Expected future benefit payments [Abstract] | ' | ' | ' | |||
2014 | 1,776 | ' | ' | |||
2015 | 1,838 | ' | ' | |||
2016 | 1,971 | ' | ' | |||
2017 | 2,176 | ' | ' | |||
2018 | 2,279 | ' | ' | |||
Years 2019 - 2023 | 13,353 | ' | ' | |||
Quoted prices in active markets for identical asset (level 1) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 39,759 | 33,683 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 39,759 | 33,683 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 39,759 | 33,683 | ' | |||
Significant Observable Inputs (Level 2) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 2,681 | 2,887 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 2,681 | 2,887 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 2,681 | 2,887 | ' | |||
Significant unobservable inputs (level 3) | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 0 | 0 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 0 | 0 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Fixed Income Funds [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of period | 8,736 | ' | ' | |||
Fair value of plan assets at end of period | 7,307 | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 24.00% | ' | ' | |||
Pension plan asset allocation | 7,307 | ' | ' | |||
Actual allocation (in hundredths) | 17.00% | 24.00% | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 7,307 | ' | ' | |||
Domestic equity [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of period | 17,926 | ' | ' | |||
Fair value of plan assets at end of period | 23,903 | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 49.00% | ' | ' | |||
Pension plan asset allocation | 23,903 | ' | ' | |||
Actual allocation (in hundredths) | 56.00% | 49.00% | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 23,903 | ' | ' | |||
International equity [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of period | 6,257 | ' | ' | |||
Fair value of plan assets at end of period | 7,424 | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 17.00% | ' | ' | |||
Pension plan asset allocation | 7,424 | ' | ' | |||
Actual allocation (in hundredths) | 18.00% | 17.00% | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 7,424 | ' | ' | |||
Real Estate [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at beginning of period | 3,651 | ' | ' | |||
Fair value of plan assets at end of period | 3,806 | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 10.00% | ' | ' | |||
Pension plan asset allocation | 3,806 | ' | ' | |||
Actual allocation (in hundredths) | 9.00% | 10.00% | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 3,806 | ' | ' | |||
Mutual fund [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 39,759 | 33,683 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 39,759 | 33,683 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 39,759 | 33,683 | ' | |||
Mutual fund [Member] | Quoted prices in active markets for identical asset (level 1) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 39,759 | 33,683 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 39,759 | 33,683 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 39,759 | 33,683 | ' | |||
Mutual fund [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 0 | 0 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 0 | 0 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Mutual fund [Member] | Significant unobservable inputs (level 3) | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 0 | 0 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 0 | 0 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Collective trust [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 2,681 | 2,887 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 2,681 | 2,887 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 2,681 | 2,887 | ' | |||
Collective trust [Member] | Quoted prices in active markets for identical asset (level 1) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 0 | 0 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 0 | 0 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 0 | 0 | ' | |||
Collective trust [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 2,681 | 2,887 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 2,681 | 2,887 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | 2,681 | 2,887 | ' | |||
Collective trust [Member] | Significant unobservable inputs (level 3) | ' | ' | ' | |||
Change in plan assets [Roll Forward] | ' | ' | ' | |||
Fair value of plan assets at end of period | 0 | 0 | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Pension plan asset allocation | 0 | 0 | ' | |||
Fair value of plan assets [Abstract] | ' | ' | ' | |||
Fair value of plan assets | $0 | $0 | ' | |||
Equity and real estate [Member] | Minimum [Member] | ' | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 65.00% | ' | ' | |||
Equity and real estate [Member] | Maximum [Member] | ' | ' | ' | |||
Defined benefit plan weighted average asset allocation [Abstract] | ' | ' | ' | |||
Target (in hundredths) | 85.00% | ' | ' | |||
Salaried pension plan [Member] | ' | ' | ' | |||
Weighted-average assumptions used to determine benefit obligation [Abstract] | ' | ' | ' | |||
Discount rate (in hundredths) | 4.98% | 4.10% | ' | |||
Hourly pension plan [Member] | ' | ' | ' | |||
Weighted-average assumptions used to determine benefit obligation [Abstract] | ' | ' | ' | |||
Discount rate (in hundredths) | 5.01% | 4.14% | ' | |||
[1] | No compensation increase was assumed as the plans were frozen effective December 31, 2008. |
Share_Plans_Details
Share Plans (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | 31-May-13 | 30-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 10, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares provided under plan (in shares) | ' | ' | ' | ' | ' | ' | 9,100,000 |
Stock-based compensation expense recorded | ' | ' | $12,368 | $10,780 | $8,646 | ' | ' |
Dividends declared per share (in dollars per share) | $5 | $6 | $5 | $6 | $0 | ' | ' |
Payments for employees' tax obligations to taxing authorities | ' | ' | 15,020 | 6,425 | 371 | ' | ' |
Weighted-average assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value (in dollars per share) | ' | ' | $16.30 | $12.13 | $11.10 | ' | ' |
Assumptions [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility (in hundredths) | ' | ' | 47.00% | 45.00% | 50.00% | ' | ' |
Risk free interest rate (in hundredths) | ' | ' | 1.21% | 1.22% | 2.69% | ' | ' |
Expected annual dividend per share (in dollars per share) | ' | ' | $0 | $0 | $0 | ' | ' |
Expected life of options | ' | ' | '6 years 3 months | '6 years 3 months | '6 years 6 months | ' | ' |
Number of Options [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balance (in shares) | ' | ' | 3,440,042 | 4,308,545 | 4,236,259 | ' | ' |
Granted (in shares) | ' | ' | 253,857 | 256,112 | 179,877 | ' | ' |
Exercised (in shares) | ' | ' | -703,326 | -1,113,827 | -107,591 | ' | ' |
Expired (in shares) | ' | ' | -1,625 | 0 | 0 | ' | ' |
Forfeited (in shares) | ' | ' | -51,647 | -10,788 | 0 | ' | ' |
Outstanding, Ending balance (in shares) | ' | ' | 2,937,301 | 3,440,042 | 4,308,545 | 4,236,259 | ' |
Exercisable (in shares) | ' | ' | 802,034 | ' | ' | ' | ' |
Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balance (in dollars per share) | ' | ' | $14.38 | $13.36 | $13.02 | ' | ' |
Granted (in dollars per share) | ' | ' | $35.04 | $21.28 | $21.26 | ' | ' |
Exercised (in dollars per share) | ' | ' | $6.05 | $13.21 | $13 | ' | ' |
Expired (in dollars per share) | ' | ' | $20.94 | $0 | $0 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $17.02 | $20.52 | $0 | ' | ' |
Outstanding, Ending balance (in dollars per share) | ' | ' | $5.74 | $14.38 | $13.36 | $13.02 | ' |
Exercisable (in dollars per share) | ' | ' | $2.82 | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term (in years) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Outstanding | ' | ' | '9 years 6 months | '9 years | '8 years 2 months 12 days | '9 years 1 month 6 days | ' |
Exercisable | ' | ' | '9 years 6 months | ' | ' | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Outstanding | ' | ' | 148,369 | 68,549 | 63,193 | 13,349 | ' |
Exercisable | ' | ' | 42,856 | ' | ' | ' | ' |
Board of Directors [Member] | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock granted to certain members of board of directors (in shares) | ' | ' | 7,291 | 10,864 | 16,680 | ' | ' |
Compensation cost for stock granted to certain members of board of directors | ' | ' | 260 | 300 | 300 | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $29.81 | $15.94 | $6.15 | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $48.36 | $32.05 | $13.73 | ' | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense recorded | ' | ' | 9,034 | 6,835 | 6,475 | ' | ' |
Dividends declared per share (in dollars per share) | ' | ' | $5 | $6 | ' | ' | ' |
Vesting period | ' | ' | '4 years | '4 years | '5 years | '5 years | ' |
Expiration period | ' | ' | '10 years | '10 years | '10 years | '10 years | ' |
Shares withheld for tax withholding (in shares) | ' | ' | 323,427 | 667,401 | 55,202 | ' | ' |
Payments for employees' tax obligations to taxing authorities | ' | ' | 8,449 | 6,425 | 371 | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | 11,855 | ' | ' | ' | ' |
Non-vested Stock Awards, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, weighted-average period | ' | ' | '2 years | ' | ' | ' | ' |
Restricted Share Awards [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense recorded | ' | ' | 3,074 | 3,645 | 1,871 | ' | ' |
Vesting period | ' | ' | '3 years | ' | ' | ' | ' |
Shares withheld for tax withholding (in shares) | ' | ' | 163,458 | 0 | 0 | ' | ' |
Payments for employees' tax obligations to taxing authorities | ' | ' | 6,571 | 0 | 0 | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | $5,216 | ' | ' | ' | ' |
Non-vested Stock Awards, Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balance (in shares) | ' | ' | 665,071 | 489,302 | 430,155 | ' | ' |
Granted (in shares) | ' | ' | 112,494 | 195,771 | 59,147 | ' | ' |
Vested (in shares) | ' | ' | -450,537 | 0 | 0 | ' | ' |
Forfeited (in shares) | ' | ' | -22,622 | -20,002 | 0 | ' | ' |
Outstanding, Ending balance (in shares) | ' | ' | 304,406 | 665,071 | 489,302 | ' | ' |
Non-vested Stock Awards, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Outstanding, Beginning balance (in dollars per share) | ' | ' | $17.75 | $13.93 | $13.02 | ' | ' |
Granted (in dollars per share) | ' | ' | $37.82 | $26.94 | $20.59 | ' | ' |
Vested (in dollars per share) | ' | ' | $14.21 | $0 | $0 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $25.36 | $11.96 | $0 | ' | ' |
Outstanding, Ending balance (in dollars per share) | ' | ' | $29.68 | $17.75 | $13.93 | ' | ' |
Unrecognized compensation cost, weighted-average period | ' | ' | '1 year 10 months 24 days | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Aggregate minimum rental commitments [Abstract] | ' | ' | ' |
2014 | $1,952 | ' | ' |
2015 | 1,900 | ' | ' |
2016 | 1,543 | ' | ' |
2017 | 830 | ' | ' |
2018 | 3 | ' | ' |
Total | 6,228 | ' | ' |
Rent expenses | 2,457 | 2,870 | 1,309 |
Amount financed by dealers | $24,300 | $16,600 | ' |
Minimum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease Term | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease Term | '5 years | ' | ' |
Special_Cash_Dividend_Details
Special Cash Dividend (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | 31-May-13 | 30-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 21, 2013 |
Special Cash Dividend [Abstract] | ' | ' | ' | ' | ' | ' |
Dividends declared per share (in dollars per share) | $5 | $6 | $5 | $6 | $0 | ' |
Cash dividends paid | ' | ' | $340,772 | $404,332 | ' | ' |
Dividends declared but unpaid | ' | ' | 1,300 | ' | ' | ' |
Special cash dividends declared but unpaid | ' | ' | 1,172 | ' | ' | ' |
Retained earnings as of the dividend declaration date | ' | ' | ' | ' | ' | $4,934 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information (Unaudited) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $376,236 | $363,269 | $346,688 | $399,572 | $342,022 | $300,586 | $239,137 | $294,561 | $1,485,765 | $1,176,306 | $791,976 |
Gross profit | 145,682 | 139,463 | 130,953 | 153,462 | 126,153 | 115,813 | 87,429 | 111,005 | 569,560 | 440,400 | 294,654 |
Operating income | 91,218 | 87,289 | 76,433 | 96,525 | 67,780 | 59,124 | 37,158 | 59,493 | 351,465 | 223,555 | 112,981 |
Net income | $48,518 | $47,093 | $28,254 | $50,674 | $28,287 | $25,541 | $9,335 | $30,060 | $174,539 | $93,223 | $324,643 |
Net income per common share, basic (in dollars per share) | $0.71 | $0.69 | $0.41 | $0.75 | $0.42 | $0.38 | $0.14 | $0.45 | $2.56 | $1.38 | $4.84 |
Net income per common share, diluted (in dollars per share) | $0.69 | $0.67 | $0.40 | $0.73 | $0.41 | $0.37 | $0.14 | $0.44 | $2.51 | $1.35 | $4.79 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for doubtful accounts [Member] | ' | ' | ' | |||
Valuation allowances and reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | $1,166 | $789 | $723 | |||
Reserves Assumed in Acquisition | 496 | 383 | 171 | |||
Additions Charged to Earnings | 1,037 | 204 | -7 | |||
Charges to Reserve, Net | -41 | [1] | -210 | [1] | -98 | [1] |
Balance at End of Year | 2,658 | 1,166 | 789 | |||
Reserves for inventory [Member] | ' | ' | ' | |||
Valuation allowances and reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | 6,999 | 4,717 | 4,059 | |||
Reserves Assumed in Acquisition | 1,131 | 1,694 | 657 | |||
Additions Charged to Earnings | 72 | 1,785 | 1,092 | |||
Charges to Reserve, Net | -1,644 | [1] | -1,197 | [1] | -1,091 | [1] |
Balance at End of Year | 6,558 | 6,999 | 4,717 | |||
Valuation of deferred tax assets [Member] | ' | ' | ' | |||
Valuation allowances and reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | 806 | 0 | 271,393 | |||
Reserves Assumed in Acquisition | -120 | 827 | 0 | |||
Additions Charged to Earnings | 335 | -21 | -271,393 | |||
Charges to Reserve, Net | 0 | [1] | 0 | [1] | 0 | [1] |
Balance at End of Year | $1,021 | $806 | $0 | |||
[1] | Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance. Deductions from the reserves for inventory excess and obsolete items equal inventory written off against the reserve as items were disposed of. |