Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CTB | |
Entity Registrant Name | COOPER TIRE & RUBBER CO | |
Entity Central Index Key | 24,491 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,933,139 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 643,025 | $ 649,775 |
Cost of products sold | 533,107 | 499,346 |
Gross profit | 109,918 | 150,429 |
Selling, general and administrative expense | 61,248 | 59,325 |
Operating profit | 48,670 | 91,104 |
Interest expense | (7,827) | (6,636) |
Interest income | 1,802 | 940 |
Other non-operating (expense) income | (235) | 1,462 |
Income before income taxes | 42,410 | 86,870 |
Provision for income taxes | 13,029 | 28,098 |
Net income | 29,381 | 58,772 |
Net loss attributable to noncontrolling shareholders' interests | (1,180) | (233) |
Net income attributable to Cooper Tire & Rubber Company | $ 30,561 | $ 59,005 |
Basic earnings per share: | ||
Net income attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ 0.58 | $ 1.06 |
Diluted earnings per share: | ||
Net income attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | 0.57 | 1.05 |
Dividends per share (in dollars per share) | $ 0.105 | $ 0.105 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Document Fiscal Year Focus | 2,017 | |
Net income | $ 29,381 | $ 58,772 |
Other comprehensive income | ||
Foreign currency translation adjustments | 15,388 | (2,952) |
Financial instruments | ||
Change in the fair value of derivatives | (399) | (5,456) |
Income tax benefit on derivative instruments | 153 | 2,073 |
Financial instruments, net of tax | (246) | (3,383) |
Postretirement benefit plans | ||
Amortization of actuarial loss | 10,591 | 10,932 |
Amortization of prior service credit | (141) | (141) |
Income tax provision on postretirement benefit plans | (3,719) | (3,853) |
Foreign currency translation effect | (865) | 2,029 |
Postretirement benefit plans, net of tax | 5,866 | 8,967 |
Other comprehensive income | 21,008 | 2,632 |
Comprehensive income | 50,389 | 61,404 |
Less: comprehensive income (loss) attributable to noncontrolling shareholders' interests | 1,691 | (431) |
Comprehensive income attributable to Cooper Tire & Rubber Company | $ 48,698 | $ 61,835 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 365,046 | $ 504,423 |
Notes receivable | 14,593 | 7,485 |
Accounts receivable, less allowances of $6,576 at 2017 and $7,290 at 2016 | 428,069 | 409,913 |
Inventories: | ||
Finished goods | 415,002 | 338,887 |
Work in process | 31,531 | 29,922 |
Raw materials and supplies | 119,287 | 101,342 |
Inventories | 565,820 | 470,151 |
Other current assets | 30,868 | 28,546 |
Total current assets | 1,404,396 | 1,420,518 |
Property, plant and equipment: | ||
Land and land improvements | 49,004 | 47,767 |
Buildings | 300,763 | 282,960 |
Machinery and equipment | 1,762,704 | 1,742,449 |
Molds, cores and rings | 224,706 | 224,662 |
Total property, plant and equipment | 2,337,177 | 2,297,838 |
Less: accumulated depreciation | 1,460,378 | 1,433,611 |
Net property, plant and equipment | 876,799 | 864,227 |
Goodwill | 53,154 | 52,705 |
Intangibles, net of accumulated amortization of $79,862 at 2017 and $77,321 at 2016 | 139,739 | 140,751 |
Restricted cash | 1,068 | 1,327 |
Deferred income tax assets | 130,842 | 133,879 |
Other assets | 6,778 | 5,988 |
Total assets | 2,612,776 | 2,619,395 |
Current liabilities: | ||
Notes payable | 14,581 | 26,286 |
Accounts payable | 272,475 | 282,416 |
Accrued liabilities | 187,141 | 183,804 |
Income taxes payable | 17,342 | 5,887 |
Current portion of long-term debt | 1,370 | 2,421 |
Total current liabilities | 492,909 | 500,814 |
Long-term debt | 296,516 | 297,094 |
Postretirement benefits other than pensions | 247,305 | 247,227 |
Pension benefits | 283,620 | 285,852 |
Other long-term liabilities | 135,396 | 156,924 |
Deferred income tax liabilities | 967 | 1,248 |
Equity: | ||
Preferred stock, $1 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $1 par value; 300,000,000 shares authorized; 87,850,292 shares issued | 87,850 | 87,850 |
Capital in excess of par value | 18,657 | 25,876 |
Retained earnings | 2,345,928 | 2,321,424 |
Accumulated other comprehensive loss | (527,014) | (545,151) |
Parent stockholders' equity before treasury stock | 1,925,421 | 1,889,999 |
Less: common shares in treasury at cost (34,920,055 at 2017 and 34,850,512 at 2016) | (825,271) | (813,985) |
Total parent stockholders’ equity | 1,100,150 | |
Noncontrolling shareholders' interests in consolidated subsidiary | 55,913 | |
Total equity | 1,156,063 | 1,130,236 |
Total liabilities and equity | $ 2,612,776 | $ 2,619,395 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 6,576 | $ 7,290 |
Accumulated amortization of intangibles | $ 79,862 | $ 77,321 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 87,850,292 | 87,850,292 |
Treasury stock, shares (in shares) | 34,920,055 | 34,850,512 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net income | $ 29,381 | $ 58,772 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 34,749 | 31,792 |
Stock-based compensation | 1,283 | 4,752 |
Change in LIFO inventory reserve | 14,438 | (29,899) |
Amortization of unrecognized postretirement benefits | 10,450 | 10,791 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (22,047) | (44,148) |
Inventories | (104,851) | (32,536) |
Other current assets | (2,069) | (274) |
Accounts payable | (6,342) | (8,369) |
Accrued liabilities | 8,807 | (9,635) |
Other items | (17,730) | 22,465 |
Net cash (used in) provided by operating activities | (53,931) | 3,711 |
Investing activities: | ||
Additions to property, plant and equipment and capitalized software | (44,602) | (36,166) |
Proceeds from the sale of assets | 11 | 20 |
Net cash used in investing activities | (44,591) | (36,146) |
Financing activities: | ||
Net payments on short-term debt | (16,608) | (7,586) |
Repayments of long-term debt | (792) | (600) |
Repurchase of common stock | (17,799) | (24,826) |
Payments of employee taxes withheld from shared-based awards | (6,429) | (2,070) |
Payment of dividends to Cooper Tire & Rubber Company stockholders | (5,543) | (5,817) |
Issuance of common shares related to stock-based compensation | 3,596 | 3,330 |
Excess tax benefits on stock options | 0 | 139 |
Net cash used in financing activities | (43,575) | (37,430) |
Effects of exchange rate changes on cash | 2,720 | (1,296) |
Net change in cash and cash equivalents | (139,377) | (71,161) |
Cash and cash equivalents at beginning of year | 504,423 | 505,157 |
Cash and cash equivalents at end of period | $ 365,046 | $ 433,996 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. There is a year-round demand for the Company’s passenger and truck replacement tires, but sales of light vehicle replacement tires are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the three-month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017. The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. Truck and Bus Tire Tariffs Antidumping and countervailing duty investigations into certain truck and bus tires imported from the People's Republic of China ("PRC") into the United States were initiated on January 29, 2016. The preliminary determinations announced in both investigations were affirmative and resulted in the imposition of significant additional duties from each. The Company incurred expense of $22,042 over the final seven months of the year-ended December 31, 2016 related to these additional duties. On February 22, 2017, the United States ("U.S.") International Trade Commission determined the U.S. market had not suffered material injury because of imports of truck and bus tires from China. As a result of this decision, preliminary antidumping and countervailing duties from Chinese truck and bus tires imported subsequent to the preliminary determination are not to be collected and any amounts previously paid will be refunded by U.S. Customs and Border Protection. Further, prospective imports of truck and bus tires from the PRC are not subject to these additional duties. In the first quarter of 2017, the Company reversed the previously expensed preliminary duties of $22,042 due to the decision by the U.S. International Trade Commission. This amount was recorded as a reduction of cost of products sold in the Condensed Consolidated Statement of Income for the period ended March 31, 2017. North American Distribution Center On January 22, 2017, a tornado hit the Company’s leased Albany, Georgia distribution center, causing damage to the Company's assets and disrupting certain operations. Insurance, less applicable deductibles, covers the repair or replacement of the Company's assets that suffered loss or damage, and the Company is working closely with its insurance carriers and claims adjusters to ascertain the full amount of insurance proceeds due to the Company as a result of the damages and the loss the Company suffered. The Company's insurance policies also provide coverage for interruption to its business, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. In the first quarter of 2017, the Company incurred expenses of $6,806 related to damages caused by the tornado, which included the write-off of damaged inventory, freight to move product to other warehouses and professional fees to secure and maintain the site. This amount was recorded as a component of cost of products sold in the Condensed Consolidated Statement of Income for the period ended March 31, 2017. At this time, the full amount of combined property damage and business interruption costs and recoveries cannot be estimated, and accordingly, no additional amounts, including amounts for insurance recoveries, have been recorded as of March 31, 2017. Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Stock Compensation In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the Condensed Consolidated Statements of Cash Flows. Application of the standard is required for the annual and interim periods beginning after December 15, 2016. The Company adopted the standard in the first quarter of 2017. As a result of the adoption, on a prospective basis, we recognized $1,909 of excess tax benefits from stock-based compensation as a discrete item in our provision for income taxes for the three months ended March 31, 2017. Additionally, the cash flow benefit of the excess tax benefits is included as an operating activity in the Condensed Consolidated Statement of Cash Flows for the period ended March 31, 2017. In accordance with the standard, the prior year Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Cash Flows presentation of the Company's excess tax benefits have not been restated. The new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the Condensed Consolidated Statements of Cash Flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change in the first quarter of 2017 and first quarter of 2016 was $6,429 and $2,070 , respectively. Finally, as permitted by the standard, we will account for forfeitures of share-based payments when they occur. Inventory In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which is intended to simplify the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost or net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in, first-out and the retail inventory method. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017. The new standard did not have a material impact on the Company's condensed consolidated financial statements. Accounting Pronouncements – To Be Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions of the standard include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard is effective for annual reporting periods beginning after December 15, 2017. In 2016, the FASB issued several amendments to the standard, which provide clarification, additional guidance, practical expedients, technical corrections and other improvements to ASU 2014-09. The guidance permits two methods of adoption: the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective transition method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has substantially completed its evaluation of significant contracts and the review of its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to the Company’s revenue contracts. In addition, the Company has identified, and is in the process of implementing, appropriate changes to business processes, systems and controls to support recognition and disclosure under the new standard. The Company expects to adopt the new revenue standard in the first quarter of 2018 applying the modified retrospective transition method. The Company does not expect the adoption of the new revenue standard to have a material impact on the amount and timing of revenue recognized in the Company's condensed consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires balance sheet recognition of lease liabilities and right-of-use assets for most leases having terms of twelve months or longer. Application of the standard, which should be applied using a modified retrospective approach, is required for the annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Goodwill In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The standard requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Pensions and Postretirement Benefits Other than Pensions In March 2017, the FASB issued ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” which requires changes to the income statement presentation of net periodic benefit cost. The service cost component of net periodic benefit cost will continue to be classified in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net periodic benefit cost are required to be presented in the income statement separately from the service cost component and outside of operating profit. In addition, the new standard will allow only the service cost component to be eligible for capitalization, when applicable. Application of the standard, which should be applied retrospectively for the income statement presentation changes and prospectively for the capitalization changes, is required for the annual and interim periods beginning after December 15, 2017. Early adoption is permitted if adopted in the first interim period of the fiscal year. As reported in the Company's 2016 Form 10-K, 2016 and 2015 net periodic benefit costs were $64,842 and $58,384 , respectively. The service cost component of these amounts in 2016 and 2015, which will remain as a component of operating profit, were $11,771 and $13,559 , respectively. Net income will not change as a result of the adoption of this standard. The Company is currently evaluating the remaining impacts the new standard will have on its condensed consolidated financial statements. |
GRT Acquisition
GRT Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
GRT Acquisition | GRT Acquisition On January 4, 2016, the Company announced that it had entered into an agreement to purchase a majority of China-based Qingdao Ge Rui Da Rubber Co., Ltd. ("GRT"). In the first quarter of 2016, the Company made a down payment in the amount of $5,929 for this transaction in accordance with the purchase agreement. The down payment was fully refundable in the event that the transaction did not close and did not provide the Company with any power to direct the activities of the existing GRT entity prior to the transaction closing. After the transaction closed on December 1, 2016, the Company owns 65 percent of GRT. Based on the Company's ownership percentage and corresponding control of voting rights, the results of GRT and 100 percent of its assets and liabilities are consolidated from the date of the transaction. GRT is expected to serve as a global source of truck and bus radial tire production for the Company. Passenger car radial tires may also be manufactured at the facility in the future. The down payment of $5,929 , as well as an additional $8,090 at the time of closing, were paid to the non-controlling shareholder of GRT, resulting in the Company attaining 56.2 percent ownership interest of GRT. In December 2016, the Company contributed an additional $35,842 to GRT to purchase additional shares issued by GRT, as well as to fund working capital requirements. The Company contributed $14,570 in the first quarter of 2017, and will contribute an additional $21,791 to GRT in 2017, to fund working capital requirements. In total, the Company will have invested $86,222 related to GRT, with $14,019 paid directly to a third party and the remainder invested in GRT. The GRT acquisition has been accounted for as a purchase transaction. The total consideration has been allocated to the preliminary assets acquired, liabilities assumed and noncontrolling shareholder interest based on their estimated fair values at December 1, 2016. The excess purchase price over the estimated fair value of the net assets acquired has been allocated to goodwill. Goodwill consists of anticipated growth opportunities for GRT and is recorded in the Asia Operations segment. Goodwill is not deductible for federal income tax purposes. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed. The amounts are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed on December 1, 2016, translated into U.S. dollars at the exchange rate on that date. The preliminary allocations of the fair value of the GRT acquisition will be finalized when the valuation is completed. December 1, 2016 Assets Cash $ 8,091 Accounts receivable 2,844 Notes receivable 3,050 Inventory 7,983 Other current assets 981 Property, plant & equipment 46,712 Intangible assets 7,412 Other long-term assets 289 Goodwill 33,861 Liabilities Accounts payable (61,570 ) Notes payable (10,122 ) Accrued liabilities (2,866 ) Long-term debt (3,383 ) Other long-term liabilities (940 ) 32,342 Noncontrolling shareholder interest (18,323 ) Cooper Tire & Rubber Company consideration $ 14,019 The Company has determined that the nonrecurring fair value measurements related to each of these assets and liabilities rely primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlement of liabilities, as observable inputs are not available and, as such, reside within Level 3 of the fair value hierarchy as defined in Footnote 5. The Company utilized a third party to assist in the fair value determination of certain components of the preliminary purchase price allocation, namely property, plant and equipment and the noncontrolling shareholder interest. Changes to these allocations may occur as additional information becomes available. The valuation of Property, plant and equipment was developed using primarily the cost approach. The fair value of the noncontrolling shareholder interest was determined based upon internal and external inputs considering various relevant market transactions and discounted cash flow valuation methods, among other factors. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended 2017 2016 Numerator Numerator for basic and diluted earnings per share - Net income attributable to Cooper Tire & Rubber Company common stockholders $ 30,561 $ 59,005 Denominator Denominator for basic earnings per share - weighted average shares outstanding 52,835 55,535 Effect of dilutive securities - stock options and other stock units 587 597 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 53,422 56,132 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.58 $ 1.06 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.57 $ 1.05 All options to purchase shares of the Company’s common stock were included in the computation of diluted earnings per share as the options’ exercise prices were less than the average market price of the common shares at both March 31, 2017 and 2016 . |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory costs are determined using the last-in, first-out (“LIFO”) method for substantially all U.S. inventories. The current cost of the U.S. inventories under the first-in, first-out (“FIFO”) method was $ 495,088 and $ 409,034 at March 31, 2017 and December 31, 2016 , respectively. These FIFO values have been reduced by approximately $ 99,551 and $ 85,113 at March 31, 2017 and December 31, 2016 , respectively, to arrive at the LIFO value reported on the Condensed Consolidated Balance Sheets. The remaining inventories have been valued under the FIFO or average cost methods. All LIFO inventories are stated at the lower of cost or market. All other inventories are stated at the lower of cost or net realizable value as a result of adopting ASU 2015-11, "Simplifying the Measurement of Inventory." |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not enter into financial instruments for trading or speculative purposes. The derivative financial instruments include fair value and cash flow hedges of foreign currency exposures. The change in values of the fair value foreign currency hedges offsets exchange rate fluctuations on the foreign currency-denominated intercompany loans and obligations. The Company presently hedges exposures in the Euro, Canadian dollar, British pound sterling, Swiss franc, Swedish krona, Norwegian krone, Mexican peso, Chinese yuan and Serbian dinar generally for transactions expected to occur within the next 12 months . The notional amount of these foreign currency derivative instruments at March 31, 2017 and December 31, 2016 was $ 84,254 and $ 89,414 , respectively. The counterparties to each of these agreements are major commercial banks. The Company uses non-designated foreign currency forward contracts to hedge its net foreign currency monetary assets and liabilities primarily resulting from non-functional currency denominated receivables and payables of certain U.S. and foreign entities. Foreign currency forward contracts are also used to hedge variable cash flows associated with forecasted sales and purchases denominated in currencies that are not the functional currency of certain entities. The forward contracts have maturities of less than twelve months pursuant to the Company’s policies and hedging practices. These forward contracts meet the criteria for and have been designated as cash flow hedges. Accordingly, the effective portion of the change in fair value of such forward contracts (approximately $ 630 and $ 1,029 as of March 31, 2017 and December 31, 2016 , respectively) are recorded as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets and reclassified into earnings as the hedged transactions occur. The Company assesses hedge effectiveness, prospectively and retrospectively, based on regression of the change in foreign currency exchange rates. Time value of money is included in effectiveness testing. The Company measures ineffectiveness on a trade by trade basis, using the hypothetical derivative method. Any hedge ineffectiveness is recorded in the Condensed Consolidated Statements of Income in the period in which the ineffectiveness occurs. The derivative instruments are subject to master netting arrangements with the counterparties to the contracts. The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: March 31, 2017 December 31, 2016 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ 681 $ 1,029 Gross amounts offset (51 ) — Net amounts $ 630 $ 1,029 Not designated as hedging instruments: Gross amounts recognized 37 109 Gross amounts offset (154 ) (76 ) Net amounts $ (117 ) $ 33 Net amounts presented: Other current assets $ 513 $ 1,062 The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended Derivatives Designated as Cash Flow Hedges 2017 2016 Amount of Loss Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ (389 ) $ (4,044 ) Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 10 1,412 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Three Months Ended March 31, Derivatives not Designated as Hedging Instruments 2017 2016 Foreign exchange contracts Other non-operating (expense) income $ (646 ) $ (900 ) For foreign exchange hedges of forecasted sales and purchases designated as effective, the Company reclassifies the gain (loss) from Other comprehensive income into Net sales and the ineffective portion is recorded directly into Other non-operating income (expense). The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within the different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial asset and liability values are based on unadjusted quoted prices for an identical asset or liability in an active market that the Company has the ability to access. Level 2. Financial asset and liability values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: a. Quoted prices for similar assets or liabilities in active markets; b. Quoted prices for identical or similar assets or liabilities in non-active markets; c. Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d. Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3. Financial asset and liability values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The valuation of foreign exchange forward contracts was determined using widely accepted valuation techniques. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including forward points. The Company incorporated credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as current credit ratings, to evaluate the likelihood of default by itself and its counterparties. As of March 31, 2017 and December 31, 2016 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. The valuation of stock-based liabilities was determined using the Company’s stock price, and as a result, these liabilities are classified in Level 1 of the fair value hierarchy. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: March 31, 2017 Total Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 513 $ — $ 513 $ — Stock-based Liabilities $ (21,125 ) $ (21,125 ) $ — $ — December 31, 2016 Total Assets (Liabilities) Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 1,062 $ — $ 1,062 $ — Stock-based Liabilities $ (20,336 ) $ (20,336 ) $ — $ — The fair market value of Cash and cash equivalents, Notes receivable, Restricted cash, Notes payable and Current portion of long-term debt at March 31, 2017 and December 31, 2016 are equal to their corresponding carrying values as reported on the Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 , respectively. Each of these classes of assets and liabilities is classified as Level 1 within the fair value hierarchy. The fair market value of Long-term debt is $ 329,221 and $ 331,941 at March 31, 2017 and December 31, 2016 , respectively, and is classified within Level 1 of the fair value hierarchy. The carrying value of Long-term debt is $296,516 and $297,094 as reported on the Condensed Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the quarter ended March 31, 2017 , the Company recorded a provision for income taxes of $13,029 (effective rate of 30.7 percent ) compared with $28,098 (effective rate of 32.3 percent ) for the comparable period in 2016 . The 2017 three-month period income tax expense is calculated using the forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. This rate differs from the U.S. federal statutory rate of 35 percent primarily due to a discrete tax benefit recognized as a result of the adoption of ASU 2016-09, "Improvements to Employee Share-Based Accounting," which requires all excess tax benefits or deficiencies from share-based payments to be recognized as income tax expense or benefit in the income statement. For the quarter ended March 31, 2017 , the Company recognized income tax benefit of $1,909 related to excess tax benefits as a reduction of income tax expense. The rate was also impacted by the projected mix of earnings in international jurisdictions with lower tax rates, partially offset by losses in jurisdictions with no tax benefit due to valuation allowances. Income tax expense for the current quarter is less than the same period from the prior year generally due to decreased earnings, primarily in the U.S. The Company continues to maintain a valuation allowance pursuant to ASC 740, “Accounting for Income Taxes,” against a portion of its U.S. and non-U.S. deferred tax asset position at March 31, 2017 , as it cannot assure the utilization of these assets before they expire. In the U.S., the Company has offset a portion of its deferred tax asset relating primarily to a loss carryforward by a valuation allowance of $ 2,350 . In addition, the Company has recorded valuation allowances of $ 17,891 relating to non-U.S. net operating losses and other deferred tax assets for a total valuation allowance of $ 20,241 . In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company will continue to reassess the possibility of releasing all or part of the valuation allowances currently in place when they are deemed to be realizable. The Company maintains an ASC 740-10, “Accounting for Uncertainty in Income Taxes,” liability for unrecognized tax benefits for permanent and temporary differences. At March 31, 2017 , the Company’s liability, exclusive of interest, totals approximately $ 3,197 . The Company accrued an immaterial amount of interest expense related to these unrecognized tax benefits during the quarter. Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is possible that the ultimate resolution of these unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. The Company and its subsidiaries are subject to income tax examination in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company has effectively settled U.S. federal tax examinations for years before 2013 and state and local examinations for years before 2012, with limited exceptions. Non-U.S. subsidiaries of the Company are no longer subject to income tax examinations in major foreign taxing jurisdictions for years prior to 2008. The income tax returns of various subsidiaries in various jurisdictions are currently under examination and it is possible that these examinations will conclude within the next twelve months. However, it is not possible to estimate net increases or decreases to the Company’s unrecognized tax benefits during the next twelve months. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The following tables disclose the amount of net periodic benefit costs for the three months ended March 31, 2017 and 2016 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ 2,465 $ 2,403 Interest cost 9,813 10,617 Expected return on plan assets (13,515 ) (13,391 ) Amortization of actuarial loss 9,281 9,576 Net periodic benefit cost $ 8,044 $ 9,205 Pension Benefits - International Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ — $ 2 Interest cost 2,770 3,724 Expected return on plan assets (2,707 ) (2,991 ) Amortization of actuarial loss 1,310 1,356 Net periodic benefit cost $ 1,373 $ 2,091 Other Postretirement Benefits Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ 501 $ 537 Interest cost 2,515 2,705 Amortization of prior service credit (141 ) (141 ) Net periodic benefit cost $ 2,875 $ 3,101 |
Product Warranty Liabilities
Product Warranty Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Product Warranty Liabilities | Product Warranty Liabilities The Company provides for the estimated cost of product warranties at the time revenue is recognized based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities: 2017 2016 Reserve at beginning of year $ 10,634 $ 12,339 Additions 2,324 2,709 Payments (2,030 ) (2,683 ) Reserve at March 31 $ 10,928 $ 12,365 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders' interests: Total Equity Total Parent Stockholders’ Equity Noncontrolling Shareholders' Interests in Consolidated Subsidiary Total Stockholders’ Equity Balance at December 31, 2016 $ 1,076,014 $ 54,222 $ 1,130,236 Net income (loss) 30,561 (1,180 ) 29,381 Other comprehensive income 18,137 2,871 21,008 Share repurchase program (17,799 ) — (17,799 ) Stock compensation plans (1,220 ) — (1,220 ) Cash dividends - $0.105 per share (5,543 ) — (5,543 ) Balance at March 31, 2017 $ 1,100,150 $ 55,913 $ 1,156,063 |
Share Repurchase Programs
Share Repurchase Programs | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Share Repurchase Programs | Share Repurchase Programs On August 6, 2014, the Board of Directors authorized the repurchase of up to $200,000 of the Company’s outstanding common stock pursuant to an accelerated share repurchase program, and the Company entered into a $200,000 accelerated share repurchase program (the “2014 ASR Program”) with J.P. Morgan Chase Bank (the “ASR Counterparty”). The Company paid $200,000 to the ASR Counterparty in August 2014 and received 5,567,154 shares of its common stock, which represented approximately 80 percent of the shares expected to be purchased pursuant to the 2014 ASR Program, based on the closing price on August 6, 2014. Under the terms of the 2014 ASR Program, the ASR Counterparty was permitted, in accordance with the applicable requirements of the federal securities laws, to separately trade in the Company’s shares in connection with the hedging activities related to the 2014 ASR Program and as part of other aspects of the ASR Counterparty’s business. On February 13, 2015, the Company completed the 2014 ASR Program. Based on the terms of the 2014 ASR Program, the total number of shares repurchased under the 2014 ASR Program was based on the volume-weighted average price of the Company’s common stock, less a discount, during the repurchase period, which resulted in the Company receiving an additional 784,694 shares of its common stock from the ASR Counterparty at maturity. As a result, under the 2014 ASR Program, the Company paid a total of $200,000 to the ASR Counterparty and received a total of 6,351,848 shares ( 5,567,154 shares initially received, plus 784,694 shares received at maturity) of its common stock, which represents a volume weighted average price, as adjusted pursuant to the terms of the 2014 ASR Program, of $ 31.49 over the duration of the 2014 ASR Program. On February 20, 2015, the Board of Directors authorized a new program to repurchase up to $ 200,000 , excluding commissions, of the Company’s common stock through December 31, 2016 (the “2015 Repurchase Program”). The 2015 Repurchase Program did not obligate the Company to acquire any specific number of shares and could have been suspended or discontinued at any time without notice. Under the 2015 Repurchase Program, shares could have been repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During 2015, subsequent to the Board of Directors’ February 20, 2015 authorization, the Company repurchased 2,751,454 shares of the Company’s common stock under the 2015 Repurchase Program for $ 108,821 , including applicable commissions, which represented an average price of $ 39.55 per share. As of December 31, 2015, approximately $ 91,261 remained of the $200,000 2015 Repurchase Program. For the period January 1, 2016 through February 19, 2016, the Company repurchased an additional 497,094 shares of the Company’s common stock under the 2015 Repurchase Program for $ 17,622 , including applicable commissions, which represented an average price of $35.45 per share. All repurchases under the 2015 Repurchase Program were made using cash resources. On February 19, 2016, the Board of Directors increased the amount under and expanded the duration of the 2015 Repurchase Program (as amended, the “2016 Repurchase Program”). The 2016 Repurchase Program amended and superseded the 2015 Repurchase Program and allowed the Company to repurchase up to $ 200,000 , excluding commissions, of the Company’s common stock from February 22, 2016 through December 31, 2017 . The approximately $ 73,654 remaining under the 2015 Repurchase Program as of February 19, 2016 was included in the $200,000 maximum amount authorized by the 2016 Repurchase Program. No other changes were made. The 2016 Repurchase Program did not obligate the Company to acquire any specific number of shares and could have been suspended or discontinued at any time without notice. Under the 2016 Repurchase Program, shares could have been repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. For the period February 22, 2016 through December 31, 2016, the Company repurchased 2,630,433 shares of the Company’s common stock under the 2016 Repurchase Program for $ 90,377 , including applicable commissions, which represented an average price of $ 34.36 per share. As of December 31, 2016, approximately $109,702 remained of the $200,000 2016 Repurchase Program. For the period January 1, 2017 through February 16, 2017, the Company repurchased an additional 383,690 shares of the Company’s common stock under the 2016 Repurchase Program for $14,080 , including applicable commissions, which represented an average price of $36.70 per share. All repurchases under the 2016 Repurchase Program were made using cash resources. On February 16, 2017, the Board of Directors increased the amount under and expanded the duration of the 2016 Repurchase Program (as amended, the "2017 Repurchase Program"). The 2017 Repurchase Program amended and superseded the 2016 Repurchase Program and allows the Company to repurchase up to $300,000 , excluding commissions, of the Company’s common stock through December 31, 2019. The approximately $95,634 remaining authorization under the 2016 Repurchase Program as of February 16, 2017 is included in the $300,000 maximum amount authorized by the 2017 Repurchase Program. No other changes were made. The 2017 Repurchase Program does not obligate the Company to acquire any specific number of shares and can be suspended or discontinued at any time without notice. Under the 2017 Repurchase Program, shares can be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. For the period February 17, 2017 through March 31, 2017, the Company repurchased an additional 89,277 shares of the Company’s common stock under the 2017 Repurchase Program for $3,719 , including applicable commissions, which represented an average price of $41.66 per share. All repurchases under the 2017 Repurchase Program were made using cash resources. In the first quarter of 2017, the Company repurchased 472,967 shares of the Company’s common stock under the 2016 Repurchase Program and the 2017 Repurchase Program for $17,799 , including applicable commissions, which represented an average price of $37.63 per share. Since the share repurchases began in August 2014 through March 31, 2017 , the Company has repurchased 12,703,796 shares of the Company’s common stock at an average cost of $ 34.21 per share. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s incentive compensation plans allow the Company to grant awards to employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance stock units, dividend equivalents and other awards. Compensation related to these awards is determined based on the grant-date fair value and is amortized to expense over the vesting period. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire without forfeiture of the award. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. The following table discloses the amount of stock-based compensation expense: Three Months Ended 2017 2016 Stock options $ 14 $ 431 Restricted stock units 700 1,823 Performance stock units 569 2,498 Total stock-based compensation $ 1,283 $ 4,752 Stock Options No stock options were granted in the three-month periods ended March 31, 2017 and 2016 , respectively. In February 2014, employees participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options which vested one-third each year through February 2017. In February 2013, employees participating in the 2013-2015 Long-Term Incentive Plan were granted 330,639 stock options which vested one-third each year through February 2016. The following table provides details of the stock option activity for the three months ended March 31, 2017 : Number of Shares Outstanding at December 31, 2016 495,704 Exercised (175,779 ) Expired — Canceled — Outstanding at March 31, 2017 319,925 Exercisable 319,925 Restricted Stock Units Under the Company's Incentive Compensation Plans, restricted stock units may be granted to officers and certain other employees as awards for exceptional performance, as a hiring or retention incentive or as part of the Long-Term Incentive Plan. In February 2017, employees participating in the 2017-2019 Long-Term Incentive Plan were granted 82,563 restricted stock units which vest one-third each year through February 2020. In February 2016, employees participating in the 2016-2018 Long-Term Incentive Plan were granted 106,287 restricted stock units which vest one-third each year through February 2019. In February 2015, employees participating in the 2015-2017 Long-Term Incentive Plan were granted 105,102 restricted stock units which vest one-third each year through February 2018. Compensation related to the restricted stock units granted is determined based on the fair value of the Company’s stock on the date of grant. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. Employees must remain employed for at least six months to vest in the restricted stock units, even if retirement eligible. The weighted average fair values of restricted stock units granted in the first quarter of 2017 and for the full year 2016 were $ 38.74 and $ 36.02 , respectively. The following table provides details of the nonvested restricted stock unit activity for the three months ended March 31, 2017 : Number of Restricted Stock Units Nonvested at December 31, 2016 240,574 Granted 94,207 Vested (117,198 ) Canceled (1,218 ) Accrued dividend equivalents 573 Nonvested at March 31, 2017 216,938 Performance Stock Units Employees participating in the Company’s Long-Term Incentive Plan earn performance stock units. Under the Company’s 2017 – 2019 Long-Term Incentive Plan, any units earned during 2017 will vest at December 31, 2019. Under the Company’s 2016 – 2018 Long-Term Incentive Plan, any units earned during 2016 and 2017 will vest at December 31, 2018. Under the Company’s 2015 – 2017 Long-Term Incentive Plan, any units earned during 2015, 2016 and 2017 will vest at December 31, 2017. The following table provides details of the nonvested performance stock units under the Company’s Long-Term Incentive Plan: Number of Performance Stock Units Performance stock units outstanding at December 31, 2016 163,967 Granted 64,208 Canceled (1,745 ) Accrued dividend equivalents 433 Performance stock units outstanding at March 31, 2017 226,863 The Company’s restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been notionally earned based upon Company performance metrics, until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units and performance stock units. Accordingly, such units do not represent participating securities. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three-month periods ended March 31, 2017 and 2016 , respectively. Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive income (loss) before reclassifications 12,517 (389 ) — 12,128 Foreign currency translation effect — — (865 ) (865 ) Income tax effect — 149 — 149 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (10 ) — (10 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,591 10,591 Income tax effect — 4 (3,719 ) (3,715 ) Other comprehensive income (loss) 12,517 (246 ) 5,866 18,137 Ending balance, March 31, 2017 (62,898 ) 1,721 (465,837 ) (527,014 ) Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (2,754 ) (4,044 ) — (6,798 ) Foreign currency translation effect — — 2,029 2,029 Income tax effect — 1,557 — 1,557 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (1,412 ) — (1,412 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,932 10,932 Income tax effect — 516 (3,853 ) (3,337 ) Other comprehensive (loss) income (2,754 ) (3,383 ) 8,967 2,830 Ending balance, March 31, 2016 (24,788 ) 71 (482,220 ) (506,937 ) |
Comprehensive Income (Loss) Att
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholder Interests | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholder Interests | Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests The following table provides the details of the comprehensive income (loss) attributable to noncontrolling shareholders' interests: Three Months Ended 2017 2016 Net loss attributable to noncontrolling shareholders' interests $ (1,180 ) $ (233 ) Other comprehensive income (loss): Currency translation adjustments 2,871 (198 ) Comprehensive income (loss) attributable to noncontrolling shareholders' interests $ 1,691 $ (431 ) |
Contingent Liabilities
Contingent Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities Product Liability Claims The Company is a defendant in various product liability claims brought in numerous jurisdictions in which individuals seek damages resulting from motor vehicle accidents allegedly caused by defective tires manufactured by the Company. Each of the product liability claims faced by the Company generally involves different types of tires and circumstances surrounding the accident such as different applications, vehicles, speeds, road conditions, weather conditions, driver error, tire repair and maintenance practices, service life conditions, as well as different jurisdictions and different injuries. In addition, in many of the Company’s product liability lawsuits the plaintiff alleges that his or her harm was caused by one or more co-defendants who acted independently of the Company. Accordingly, both the claims asserted and the resolutions of those claims have an enormous amount of variability. The aggregate amount of damages asserted at any point in time is not determinable since often times when claims are filed, the plaintiffs do not specify the amount of damages. Even when there is an amount alleged, at times the amount is wildly inflated and has no rational basis. The fact that the Company is a defendant in product liability lawsuits is not surprising given the current litigation climate, which is largely confined to the United States. However, the fact that the Company is subject to claims does not indicate that there is a quality issue with the Company’s tires. The Company sells approximately 30 to 35 million passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America. The Company estimates that approximately 300 million Company-produced tires – made up of thousands of different specifications – are still on the road in North America. While tire disablements do occur, it is the Company’s and the tire industry’s experience that the vast majority of tire failures relate to service-related conditions, which are entirely out of the Company’s control – such as failure to maintain proper tire pressure, improper maintenance, improper repairs, road hazard and excessive speed. The Company accrues costs for product liability at the time a loss is probable and the amount of loss can be estimated. The Company believes the probability of loss can be established and the amount of loss can be estimated only after certain minimum information is available, including verification that Company-produced product were involved in the incident giving rise to the claim, the condition of the product purported to be involved in the claim, the nature of the incident giving rise to the claim and the extent of the purported injury or damages. In cases where such information is known, each product liability claim is evaluated based on its specific facts and circumstances. A judgment is then made to determine the requirement for establishment or revision of an accrual for any potential liability. The liability often cannot be determined with precision until the claim is resolved. Pursuant to ASU 450 "Contingencies", the Company accrues the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. The Company uses a range of losses because an average cost would not be meaningful since the product liability claims faced by the Company are unique and widely variable, and accordingly, the resolutions of those claims have an enormous amount of variability. The costs have ranged from zero dollars to $ 33 million in one case with no “average” that is meaningful. No specific accrual is made for individual unasserted claims or for premature claims, asserted claims where the minimum information needed to evaluate the probability of a liability is not yet known. However, an accrual for such claims based, in part, on management’s expectations for future litigation activity and the settled claims history is maintained. Because of the speculative nature of litigation in the U.S., the Company does not believe a meaningful aggregate range of potential loss for asserted and unasserted claims can be determined. The Company’s experience has demonstrated that its estimates have been reasonably accurate and, on average, cases are settled at amounts close to the reserves established. However, it is possible an individual claim from time to time may result in an aberration from the norm and could have a material impact. The Company determines its reserves using the number of incidents expected during a year. During the first three months of 2017 , the Company increased its product liability reserve by $ 12,459 . The addition of another year of self-insured incidents accounted for $ 12,339 of this increase. Settlements and changes in the amount of reserves for cases where sufficient information is known to estimate a liability increased by $ 120 . The time frame for the payment of a product liability claim is too variable to be meaningful. From the time a claim is filed to its ultimate disposition depends on the unique nature of the case, how it is resolved – claim dismissed, negotiated settlement, trial verdict or appeals process – and is highly dependent on jurisdiction, specific facts, the plaintiff’s attorney, the court’s docket and other factors. Given that some claims may be resolved in weeks and others may take five years or more, it is impossible to predict with any reasonable reliability the time frame over which the accrued amounts may be paid. The Company paid $ 28,593 during the first quarter of 2017 to resolve cases and claims. The Company’s product liability reserve balance at March 31, 2017 totaled $ 160,956 (the current portion of $ 58,148 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets), and the balance at December 31, 2016 totaled $ 176,995 (current portion of $ 58,054 ). The product liability expense reported by the Company includes amortization of insurance premium costs, adjustments to settlement reserves and legal costs incurred in defending claims against the Company. Legal costs are expensed as incurred and product liability insurance premiums are amortized over coverage periods. For the three-month periods ended March 31, 2017 and 2016 , product liability expenses totaled $ 16,268 and $ 16,094 , respectively. Product liability expenses are included in Cost of products sold in the Condensed Consolidated Statements of Income. The Company regularly reviews the probable outcome of outstanding legal proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for such legal proceedings at the time a loss is probable and the amount of the loss can be estimated. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has four segments under ASC 280, “Segments”: • North America, composed of the Company’s operations in the United States and Canada; • Latin America, composed of the Company’s operations in Mexico, Central America and South America; • Europe; and • Asia. North America and Latin America meet the criteria for aggregation in accordance with ASC 280, as they are similar in their production and distribution processes and exhibit similar economic characteristics. The aggregated North America and Latin America segments are presented as “Americas Tire Operations” in the segment disclosure. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, primarily for sale in the U.S. replacement market. The segment also has a joint venture manufacturing operation in Mexico, Corporacion de Occidente SA de CV ("COOCSA"), which supplies passenger car tires to the U.S., Mexican, Central American and South American markets. The segment also distributes tires for racing, medium trucks and motorcycles. The racing and motorcycle tires are manufactured in the Company’s European Operations segment and by others. The medium truck tires are sourced predominantly through an off-take agreement with Prinx Chengshan (Shandong) Tire Company Ltd. ("PCT"), the Company’s former joint venture. Major distribution channels and customers include independent tire dealers, wholesale distributors, regional and national retail tire chains, and large retail chains that sell tires as well as other automotive products. The segment does not currently sell its products directly to end users, except through three Company-owned retail stores. The segment sells a limited number of tires to original equipment manufacturers ("OEMs"). Both the Asia and Europe segments have been determined to be individually immaterial, as they do not meet the quantitative requirements for segment disclosure under ASC 280. In accordance with ASC 280, information about operating segments that are not reportable shall be combined and disclosed in an all other category separate from other reconciling items. As a result, these two segments have been combined in the segment operating results discussion. The results of the combined Asia and Europe segments are presented as “International Tire Operations”. The European operations have operations in the United Kingdom ("U.K.") and Serbia. The U.K. entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material for domestic and global markets. The Serbian entity manufactures light vehicle tires primarily for the European markets and for export to the U.S. The Asian operations are located in the PRC. In the PRC, Cooper Kunshan Tire manufactures light vehicle tires both for the Chinese domestic market and for export to markets outside of the PRC. On December 1, 2016, the Company acquired 65 percent ownership of GRT, a joint venture manufacturing facility located in the PRC. GRT is expected to serve as a global source of truck and bus radial tire production for the Company. The segment also had another joint venture in the PRC, PCT, which manufactured and marketed radial and bias medium truck tires, as well as passenger car and light truck tires for domestic and global markets. The Company sold its ownership interest in this joint venture in November 2014, and the Company now procures these tires under off-take agreements through mid-2018 from this entity. The majority of the tires manufactured by the segments are sold in the replacement market, with a portion also sold to OEMs. The following table details information on the Company’s operating segments. Three Months Ended 2017 2016 Net sales Americas Tire External customers $ 522,369 $ 567,163 Intercompany 8,991 12,175 531,360 579,338 International Tire External customers 120,656 82,612 Intercompany 21,308 20,614 141,964 103,226 Eliminations (30,299 ) (32,789 ) Consolidated net sales $ 643,025 $ 649,775 Operating profit (loss): Americas Tire $ 63,193 $ 106,052 International Tire 1,653 (1,772 ) Unallocated corporate charges (15,824 ) (13,019 ) Eliminations (352 ) (157 ) Operating profit 48,670 91,104 Interest expense (7,827 ) (6,636 ) Interest income 1,802 940 Other non-operating (expense) income (235 ) 1,462 Income before income taxes $ 42,410 $ 86,870 |
Basis of Presentation and Con22
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. There is a year-round demand for the Company’s passenger and truck replacement tires, but sales of light vehicle replacement tires are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the three-month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ended December 31, 2017. The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. |
Accounting Pronouncements | Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Stock Compensation In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the Condensed Consolidated Statements of Cash Flows. Application of the standard is required for the annual and interim periods beginning after December 15, 2016. The Company adopted the standard in the first quarter of 2017. As a result of the adoption, on a prospective basis, we recognized $1,909 of excess tax benefits from stock-based compensation as a discrete item in our provision for income taxes for the three months ended March 31, 2017. Additionally, the cash flow benefit of the excess tax benefits is included as an operating activity in the Condensed Consolidated Statement of Cash Flows for the period ended March 31, 2017. In accordance with the standard, the prior year Condensed Consolidated Statement of Income and Condensed Consolidated Statement of Cash Flows presentation of the Company's excess tax benefits have not been restated. The new standard also requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the Condensed Consolidated Statements of Cash Flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change in the first quarter of 2017 and first quarter of 2016 was $6,429 and $2,070 , respectively. Finally, as permitted by the standard, we will account for forfeitures of share-based payments when they occur. Inventory In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which is intended to simplify the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost or net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in, first-out and the retail inventory method. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2016. The Company adopted the new standard in the first quarter of 2017. The new standard did not have a material impact on the Company's condensed consolidated financial statements. Accounting Pronouncements – To Be Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions of the standard include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard is effective for annual reporting periods beginning after December 15, 2017. In 2016, the FASB issued several amendments to the standard, which provide clarification, additional guidance, practical expedients, technical corrections and other improvements to ASU 2014-09. The guidance permits two methods of adoption: the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective transition method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has substantially completed its evaluation of significant contracts and the review of its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to the Company’s revenue contracts. In addition, the Company has identified, and is in the process of implementing, appropriate changes to business processes, systems and controls to support recognition and disclosure under the new standard. The Company expects to adopt the new revenue standard in the first quarter of 2018 applying the modified retrospective transition method. The Company does not expect the adoption of the new revenue standard to have a material impact on the amount and timing of revenue recognized in the Company's condensed consolidated financial statements. |
GRT Acquisition (Tables)
GRT Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed. The amounts are provisional and are based on the information that was available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed on December 1, 2016, translated into U.S. dollars at the exchange rate on that date. The preliminary allocations of the fair value of the GRT acquisition will be finalized when the valuation is completed. December 1, 2016 Assets Cash $ 8,091 Accounts receivable 2,844 Notes receivable 3,050 Inventory 7,983 Other current assets 981 Property, plant & equipment 46,712 Intangible assets 7,412 Other long-term assets 289 Goodwill 33,861 Liabilities Accounts payable (61,570 ) Notes payable (10,122 ) Accrued liabilities (2,866 ) Long-term debt (3,383 ) Other long-term liabilities (940 ) 32,342 Noncontrolling shareholder interest (18,323 ) Cooper Tire & Rubber Company consideration $ 14,019 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended 2017 2016 Numerator Numerator for basic and diluted earnings per share - Net income attributable to Cooper Tire & Rubber Company common stockholders $ 30,561 $ 59,005 Denominator Denominator for basic earnings per share - weighted average shares outstanding 52,835 55,535 Effect of dilutive securities - stock options and other stock units 587 597 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 53,422 56,132 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.58 $ 1.06 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.57 $ 1.05 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets | The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: March 31, 2017 December 31, 2016 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ 681 $ 1,029 Gross amounts offset (51 ) — Net amounts $ 630 $ 1,029 Not designated as hedging instruments: Gross amounts recognized 37 109 Gross amounts offset (154 ) (76 ) Net amounts $ (117 ) $ 33 Net amounts presented: Other current assets $ 513 $ 1,062 |
Gains and Losses on Derivative Instruments in Condensed Consolidated Statement of Operations | The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended Derivatives Designated as Cash Flow Hedges 2017 2016 Amount of Loss Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ (389 ) $ (4,044 ) Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 10 1,412 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Loss Recognized in Income on Derivatives Three Months Ended March 31, Derivatives not Designated as Hedging Instruments 2017 2016 Foreign exchange contracts Other non-operating (expense) income $ (646 ) $ (900 ) |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: March 31, 2017 Total Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 513 $ — $ 513 $ — Stock-based Liabilities $ (21,125 ) $ (21,125 ) $ — $ — December 31, 2016 Total Assets (Liabilities) Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 1,062 $ — $ 1,062 $ — Stock-based Liabilities $ (20,336 ) $ (20,336 ) $ — $ — |
Pensions and Postretirement B26
Pensions and Postretirement Benefits Other than Pensions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Costs | The following tables disclose the amount of net periodic benefit costs for the three months ended March 31, 2017 and 2016 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ 2,465 $ 2,403 Interest cost 9,813 10,617 Expected return on plan assets (13,515 ) (13,391 ) Amortization of actuarial loss 9,281 9,576 Net periodic benefit cost $ 8,044 $ 9,205 Pension Benefits - International Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ — $ 2 Interest cost 2,770 3,724 Expected return on plan assets (2,707 ) (2,991 ) Amortization of actuarial loss 1,310 1,356 Net periodic benefit cost $ 1,373 $ 2,091 Other Postretirement Benefits Three Months Ended 2017 2016 Components of net periodic benefit cost: Service cost $ 501 $ 537 Interest cost 2,515 2,705 Amortization of prior service credit (141 ) (141 ) Net periodic benefit cost $ 2,875 $ 3,101 |
Product Warranty Liabilities (T
Product Warranty Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Summary of Activity in Product Warranty Liabilities | The following table summarizes the activity in the Company’s product warranty liabilities: 2017 2016 Reserve at beginning of year $ 10,634 $ 12,339 Additions 2,324 2,709 Payments (2,030 ) (2,683 ) Reserve at March 31 $ 10,928 $ 12,365 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Reconciliation of Beginning and End of Period Equity Accounts | The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders' interests: Total Equity Total Parent Stockholders’ Equity Noncontrolling Shareholders' Interests in Consolidated Subsidiary Total Stockholders’ Equity Balance at December 31, 2016 $ 1,076,014 $ 54,222 $ 1,130,236 Net income (loss) 30,561 (1,180 ) 29,381 Other comprehensive income 18,137 2,871 21,008 Share repurchase program (17,799 ) — (17,799 ) Stock compensation plans (1,220 ) — (1,220 ) Cash dividends - $0.105 per share (5,543 ) — (5,543 ) Balance at March 31, 2017 $ 1,100,150 $ 55,913 $ 1,156,063 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Expense | The following table discloses the amount of stock-based compensation expense: Three Months Ended 2017 2016 Stock options $ 14 $ 431 Restricted stock units 700 1,823 Performance stock units 569 2,498 Total stock-based compensation $ 1,283 $ 4,752 |
Details of Stock Options Activity | The following table provides details of the stock option activity for the three months ended March 31, 2017 : Number of Shares Outstanding at December 31, 2016 495,704 Exercised (175,779 ) Expired — Canceled — Outstanding at March 31, 2017 319,925 Exercisable 319,925 |
Details of Nonvested Restricted Stock Units Activity | The following table provides details of the nonvested restricted stock unit activity for the three months ended March 31, 2017 : Number of Restricted Stock Units Nonvested at December 31, 2016 240,574 Granted 94,207 Vested (117,198 ) Canceled (1,218 ) Accrued dividend equivalents 573 Nonvested at March 31, 2017 216,938 |
Performance Stock Units Earned under Long-Term Incentive Plan | The following table provides details of the nonvested performance stock units under the Company’s Long-Term Incentive Plan: Number of Performance Stock Units Performance stock units outstanding at December 31, 2016 163,967 Granted 64,208 Canceled (1,745 ) Accrued dividend equivalents 433 Performance stock units outstanding at March 31, 2017 226,863 |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three-month periods ended March 31, 2017 and 2016 , respectively. Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive income (loss) before reclassifications 12,517 (389 ) — 12,128 Foreign currency translation effect — — (865 ) (865 ) Income tax effect — 149 — 149 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (10 ) — (10 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,591 10,591 Income tax effect — 4 (3,719 ) (3,715 ) Other comprehensive income (loss) 12,517 (246 ) 5,866 18,137 Ending balance, March 31, 2017 (62,898 ) 1,721 (465,837 ) (527,014 ) Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (2,754 ) (4,044 ) — (6,798 ) Foreign currency translation effect — — 2,029 2,029 Income tax effect — 1,557 — 1,557 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (1,412 ) — (1,412 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,932 10,932 Income tax effect — 516 (3,853 ) (3,337 ) Other comprehensive (loss) income (2,754 ) (3,383 ) 8,967 2,830 Ending balance, March 31, 2016 (24,788 ) 71 (482,220 ) (506,937 ) |
Comprehensive Income (Loss) A31
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholder Interests (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholder Interests | The following table provides the details of the comprehensive income (loss) attributable to noncontrolling shareholders' interests: Three Months Ended 2017 2016 Net loss attributable to noncontrolling shareholders' interests $ (1,180 ) $ (233 ) Other comprehensive income (loss): Currency translation adjustments 2,871 (198 ) Comprehensive income (loss) attributable to noncontrolling shareholders' interests $ 1,691 $ (431 ) |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Information on Operating Segments | The following table details information on the Company’s operating segments. Three Months Ended 2017 2016 Net sales Americas Tire External customers $ 522,369 $ 567,163 Intercompany 8,991 12,175 531,360 579,338 International Tire External customers 120,656 82,612 Intercompany 21,308 20,614 141,964 103,226 Eliminations (30,299 ) (32,789 ) Consolidated net sales $ 643,025 $ 649,775 Operating profit (loss): Americas Tire $ 63,193 $ 106,052 International Tire 1,653 (1,772 ) Unallocated corporate charges (15,824 ) (13,019 ) Eliminations (352 ) (157 ) Operating profit 48,670 91,104 Interest expense (7,827 ) (6,636 ) Interest income 1,802 940 Other non-operating (expense) income (235 ) 1,462 Income before income taxes $ 42,410 $ 86,870 |
Basis of Presentation and Con33
Basis of Presentation and Consolidation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 7 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation And Basis Of Presentation [Line Items] | |||||
Minimum percentage of investment consolidated | 50.00% | ||||
Maximum percentage of cost method investments | 20.00% | ||||
Excess tax benefits | $ 1,909 | ||||
Net cash (used in) provided by operating activities | (53,931) | $ 3,711 | |||
Net cash used in financing activities | 43,575 | 37,430 | |||
Net periodic benefit cost | $ 64,842 | $ 58,384 | |||
Service cost | $ 11,771 | $ 13,559 | |||
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | |||||
Consolidation And Basis Of Presentation [Line Items] | |||||
Net cash (used in) provided by operating activities | 6,429 | 2,070 | |||
Net cash used in financing activities | 6,429 | $ 2,070 | |||
Unfavorable Regulatory Action | |||||
Consolidation And Basis Of Presentation [Line Items] | |||||
Loss contingency incurred | (22,042) | $ 22,042 | |||
Cost of Goods Sold | Loss from Catastrophes | |||||
Consolidation And Basis Of Presentation [Line Items] | |||||
Loss contingency incurred | $ 6,806 | ||||
Minimum | |||||
Consolidation And Basis Of Presentation [Line Items] | |||||
Equity investments ownership percentage | 20.00% | ||||
Maximum | |||||
Consolidation And Basis Of Presentation [Line Items] | |||||
Equity investments ownership percentage | 50.00% |
GRT Acquisition - Narrative (De
GRT Acquisition - Narrative (Details) - GRT Acquisition - USD ($) $ in Thousands | Jan. 04, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 01, 2016 |
Business Acquisition [Line Items] | |||||
Down payment | $ 5,929 | ||||
Ownership interest (as a percent) | 65.00% | 56.20% | |||
Subsequent payment | $ 8,090 | ||||
Working capital contribution | $ 35,842 | $ 14,570 | |||
Cooper Tire & Rubber Company consideration | $ 14,019 | ||||
Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Working capital contribution | $ 21,791 | ||||
Consideration transferred | $ 86,222 |
GRT Acquisition - Estimated Fai
GRT Acquisition - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 01, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 53,154 | $ 52,705 | |
GRT Acquisition | |||
Business Acquisition [Line Items] | |||
Cash | $ 8,091 | ||
Accounts receivable | 2,844 | ||
Notes receivable | 3,050 | ||
Inventory | 7,983 | ||
Other current assets | 981 | ||
Property, plant & equipment | 46,712 | ||
Intangible assets | 7,412 | ||
Other long-term assets | 289 | ||
Goodwill | 33,861 | ||
Accounts payable | (61,570) | ||
Notes payable | (10,122) | ||
Accrued liabilities | (2,866) | ||
Long-term debt | (3,383) | ||
Other long-term liabilities | (940) | ||
Net assets and liabilities assumed | 32,342 | ||
Noncontrolling shareholder interest | (18,323) | ||
Cooper Tire & Rubber Company consideration | $ 14,019 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 29,381 | $ 58,772 |
Numerator | ||
Numerator for basic and diluted earnings per share - Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 30,561 | $ 59,005 |
Denominator | ||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 52,835 | 55,535 |
Effect of dilutive securities - stock options and other stock units (in shares) | 587 | 597 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares) | 53,422 | 56,132 |
Basic earnings per share: | ||
Net income attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ 0.58 | $ 1.06 |
Diluted earnings per share: | ||
Net income attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ 0.57 | $ 1.05 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 495,088 | $ 409,034 |
U.S. inventories, LIFO reserve | $ 99,551 | $ 85,113 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Effective portion of change in fair value of foreign currency forward contracts | $ 630,000 | $ 1,029,000 |
Long-term debt, fair market value | 329,221,000 | 331,941,000 |
Long-term debt, carrying value | $ 296,516,000 | 297,094,000 |
Maximum | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Maturities of forward contracts | 12 months | |
Foreign Exchange Contracts | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Notional amount of the foreign currency derivative instruments | $ 84,254,000 | $ 89,414,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - Other current assets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Net amounts | $ 513 | $ 1,062 |
Designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 681 | 1,029 |
Gross amounts offset | (51) | 0 |
Net amounts | 630 | 1,029 |
Not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement | 37 | 109 |
Gross amounts offset | (154) | (76) |
Net amounts | $ (117) | $ 33 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other non-operating (expense) income | Not designated as hedging instruments: | Foreign Exchange Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (646) | $ (900) |
Derivatives Designated as Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | (389) | (4,044) |
Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) | $ 10 | $ 1,412 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | $ 513 | $ 1,062 |
Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | (21,125) | (20,336) |
Quoted Prices in Active Markets for Identical Assets Level (1) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | (21,125) | (20,336) |
Significant Other Observable Inputs Level (2) | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | $ 513 | $ 1,062 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||
Income tax expense | $ 13,029 | $ 28,098 |
Effective tax rate for income tax expense (as a percent) | 30.70% | 32.30% |
Document Fiscal Year Focus | 2,017 | |
U.S. federal statutory rate (as a percent) | 35.00% | |
Excess tax benefits | $ 1,909 | |
Valuation allowance amount | 20,241 | |
Liability for uncertain tax positions noncurrent | 3,197 | |
U.S. | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance amount | 2,350 | |
Foreign | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance amount | $ 17,891 |
Pensions and Postretirement B43
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Document Fiscal Year Focus | 2,017 | |||
Service cost | $ 11,771 | $ 13,559 | ||
Amortization of prior service credit | $ 141 | $ 141 | ||
Net periodic benefit cost | $ 64,842 | $ 58,384 | ||
Pension Benefits - Domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,465 | 2,403 | ||
Interest cost | 9,813 | 10,617 | ||
Expected return on plan assets | (13,515) | (13,391) | ||
Amortization of actuarial loss | 9,281 | 9,576 | ||
Net periodic benefit cost | 8,044 | 9,205 | ||
Pension Benefits - International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 2 | ||
Interest cost | 2,770 | 3,724 | ||
Expected return on plan assets | (2,707) | (2,991) | ||
Amortization of actuarial loss | 1,310 | 1,356 | ||
Net periodic benefit cost | 1,373 | 2,091 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 501 | 537 | ||
Interest cost | 2,515 | 2,705 | ||
Amortization of prior service credit | (141) | (141) | ||
Net periodic benefit cost | $ 2,875 | $ 3,101 |
Product Warranty Liabilities -
Product Warranty Liabilities - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Reserve at beginning of year | $ 10,634 | $ 12,339 |
Additions | 2,324 | 2,709 |
Payments | (2,030) | (2,683) |
Reserve at end of year | $ 10,928 | $ 12,365 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,130,236 | |
Net income (loss) | 29,381 | $ 58,772 |
Other comprehensive income | 21,008 | $ 2,632 |
Share repurchase program | (17,799) | |
Stock compensation plans | (1,220) | |
Cash dividends - $0.105 per share | (5,543) | |
Ending Balance | $ 1,156,063 | |
Cash dividends per share (in dollars per share) | $ 0.105 | $ 0.105 |
Total Parent Stockholders’ Equity | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 1,076,014 | |
Net income (loss) | 30,561 | |
Other comprehensive income | 18,137 | |
Share repurchase program | (17,799) | |
Stock compensation plans | (1,220) | |
Cash dividends - $0.105 per share | (5,543) | |
Ending Balance | 1,100,150 | |
Noncontrolling Shareholders' Interests in Consolidated Subsidiary | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 54,222 | |
Net income (loss) | (1,180) | |
Other comprehensive income | 2,871 | |
Ending Balance | $ 55,913 |
Share Repurchase Programs - Add
Share Repurchase Programs - Additional Information (Detail) - USD ($) | Feb. 13, 2015 | Mar. 31, 2017 | Aug. 31, 2014 | Feb. 16, 2017 | Feb. 19, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Feb. 13, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | Feb. 20, 2015 | Aug. 06, 2014 |
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Amount paid to counter party under share repurchase program | $ 17,799,000 | $ 24,826,000 | |||||||||||
Common stock repurchased (in shares) | 12,703,796 | ||||||||||||
Share repurchase, weighted average price (in dollars per share) | $ 34.21 | ||||||||||||
Common stock repurchased, value | $ 17,799,000 | ||||||||||||
ASR Program | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Percentage of common shares initially delivered under share repurchase program (as a percent) | 80.00% | ||||||||||||
Share repurchase, weighted average price (in dollars per share) | $ 31.49 | ||||||||||||
ASR Program | JP Morgan Securities LLC | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Share repurchase, amount authorized | $ 200,000,000 | ||||||||||||
Amount paid to counter party under share repurchase program | $ 200,000,000 | $ 200,000,000 | |||||||||||
Common stock repurchased (in shares) | 784,694 | 5,567,154 | 6,351,848 | ||||||||||
New Share Repurchase Program | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Share repurchase, amount authorized | $ 200,000,000 | ||||||||||||
Common stock repurchased (in shares) | 497,094 | 2,751,454 | |||||||||||
Share repurchase, weighted average price (in dollars per share) | $ 35.45 | $ 39.55 | |||||||||||
Common stock repurchased, value | $ 17,622,000 | $ 108,821,000 | |||||||||||
Share repurchase, remaining amount authorized | $ 91,261,000 | ||||||||||||
Amended Share Repurchase Program | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Share repurchase, amount authorized | 200,000,000 | ||||||||||||
Common stock repurchased (in shares) | 383,690 | 2,630,433 | |||||||||||
Share repurchase, weighted average price (in dollars per share) | $ 36.70 | $ 34.36 | |||||||||||
Common stock repurchased, value | $ 14,080,000 | $ 90,377,000 | |||||||||||
Share repurchase, remaining amount authorized | $ 73,654,000 | $ 109,702,000 | |||||||||||
Share Repurchase Program 2017 | |||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||
Share repurchase, amount authorized | 300,000,000 | ||||||||||||
Common stock repurchased (in shares) | 89,277 | 472,967 | |||||||||||
Share repurchase, weighted average price (in dollars per share) | $ 41.66 | $ 37.63 | |||||||||||
Common stock repurchased, value | $ 3,719,000 | $ 17,799,000 | |||||||||||
Share repurchase, remaining amount authorized | $ 95,634,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Document Fiscal Year Focus | 2,017 | |
Total stock-based compensation | $ 1,283 | $ 4,752 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 14 | 431 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 700 | 1,823 |
Performance stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 569 | $ 2,498 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options, granted (in shares) | 0 | 0 | ||||||
Document Fiscal Year Focus | 2,017 | |||||||
Long Term Incentive Plan 2014-2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options, granted (in shares) | 380,064 | |||||||
Long-Term Incentive Plan 2013- 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options, granted (in shares) | 330,639 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted (in shares) | 94,207 | |||||||
Restricted Stock Units (RSUs) | Long-Term Incentive Plan 2017-2019 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted (in shares) | 82,563 | |||||||
Restricted Stock Units (RSUs) | Long Term Incentive Plan 2016-2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted (in shares) | 106,287 | |||||||
Weighted average fair values of RSU's granted (in dollars per share) | $ 38.74 | $ 36.02 | ||||||
Restricted Stock Units (RSUs) | Long Term Incentive Plan 2015-2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted (in shares) | 105,102 | |||||||
Units Vesting 2014 | Stock options | Long-Term Incentive Plan 2013- 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2015 | Stock options | Long Term Incentive Plan 2014-2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2015 | Stock options | Long-Term Incentive Plan 2013- 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2016 | Stock options | Long Term Incentive Plan 2014-2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2016 | Stock options | Long-Term Incentive Plan 2013- 2015 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2016 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2015-2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2017 | Stock options | Long Term Incentive Plan 2014-2016 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2017 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2016-2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2017 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2015-2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2018 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2016-2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2018 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2015-2017 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% | |||||||
Units Vesting 2019 | Restricted Stock Units (RSUs) | Long Term Incentive Plan 2016-2018 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options yearly vesting percentage (as a percent) | 33.33% |
Stock-Based Compensation - Deta
Stock-Based Compensation - Details of Stock Options Activity (Detail) | 3 Months Ended |
Mar. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, Beginning Balance (in shares) | 495,704 |
Exercised (in shares) | (175,779) |
Expired (in shares) | 0 |
Canceled (in shares) | 0 |
Outstanding, Ending Balance (in shares) | 319,925 |
Exercisable (in shares) | 319,925 |
Stock-Based Compensation - De50
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units Outstanding, Beginning Balance, Nonvested (in shares) | 240,574 |
Number of Units, Granted (in shares) | 94,207 |
Number of Units, Vested | (117,198) |
Number of Units, Canceled | (1,218) |
Number of Units, Accrued dividend equivalents | 573 |
Number of Units Outstanding, Ending Balance, Nonvested (in shares) | 216,938 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Units Earned under Long-Term Incentive Plan (Detail) - Performance stock units | 3 Months Ended |
Mar. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Number of Units Outstanding, Beginning Balance, Nonvested (in shares) | 163,967 |
Number of Units, Granted (in shares) | 64,208 |
Number of Units, Canceled | (1,745) |
Number of Units, Accrued dividend equivalents | 433 |
Number of Units Outstanding, Ending Balance, Nonvested (in shares) | 226,863 |
Changes in Accumulated Other 52
Changes in Accumulated Other Comprehensive Loss by Component - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Amortization of prior service credit | $ (141) | $ (141) |
Amortization of actuarial loss | 10,591 | 10,932 |
Ending Balance | 1,100,150 | |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (75,415) | (22,034) |
Other comprehensive income (loss) before reclassifications | 12,517 | (2,754) |
Other comprehensive income (loss) | 12,517 | (2,754) |
Ending Balance | (62,898) | (24,788) |
Derivative Instruments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 1,967 | 3,454 |
Other comprehensive income (loss) before reclassifications | (389) | (4,044) |
Income tax effect | 149 | 1,557 |
Cash flow hedges | (10) | (1,412) |
Income tax effect | 4 | 516 |
Other comprehensive income (loss) | (246) | (3,383) |
Ending Balance | 1,721 | 71 |
Post-retirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (471,703) | (491,187) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Foreign currency translation effect | (865) | 2,029 |
Income tax effect | 0 | |
Amortization of prior service credit | (141) | (141) |
Amortization of actuarial loss | 10,591 | 10,932 |
Income tax effect | (3,719) | (3,853) |
Other comprehensive income (loss) | 5,866 | 8,967 |
Ending Balance | (465,837) | (482,220) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (545,151) | (509,767) |
Other comprehensive income (loss) before reclassifications | 12,128 | (6,798) |
Foreign currency translation effect | (865) | 2,029 |
Income tax effect | 149 | 1,557 |
Cash flow hedges | (10) | (1,412) |
Amortization of prior service credit | (141) | (141) |
Amortization of actuarial loss | 10,591 | 10,932 |
Income tax effect | (3,715) | (3,337) |
Other comprehensive income (loss) | 18,137 | 2,830 |
Ending Balance | $ (527,014) | $ (506,937) |
Comprehensive Income (Loss) A53
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholder Interests - Comprehensive Income Attributable to Noncontrolling Shareholder Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Equity [Abstract] | ||
Net loss attributable to noncontrolling shareholders' interests | $ (1,180) | $ (233) |
Other comprehensive income (loss): | ||
Currency translation adjustments | 2,871 | (198) |
Comprehensive income (loss) attributable to noncontrolling shareholders' interests | $ 1,691 | $ (431) |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2017USD ($)Tire | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum estimated sale of passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 30,000,000 | ||
Maximum estimated sale of passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 35,000,000 | ||
Estimated number of Company produced tires of different specifications | Tire | 300,000,000 | ||
Product liability expenses, Minimum | $ 0 | ||
Product liability expenses, Maximum | 33,000,000 | ||
Increased its product liability reserve | 12,459,000 | ||
Increase in product liability reserve due to self insured incidents | 12,339,000 | ||
Increase (decrease) in product liability reserve due to changes in estimated amounts on existing reserves | $ 120,000 | ||
Period for resolution of few cases | 5 years | ||
Company paid to resolve cases and claims | $ 28,593,000 | ||
Product liability reserve balance | 160,956,000 | $ 176,995,000 | |
Current portion product liability reserve balance | 58,148,000 | $ 58,054,000 | |
Product liability expenses | $ 16,268,000 | $ 16,094,000 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2017StoreSegment | Dec. 01, 2016 | Jan. 04, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of segments | Segment | 4 | ||
Americas Tire | |||
Segment Reporting Information [Line Items] | |||
Number of stores | Store | 3 | ||
GRT Acquisition | |||
Segment Reporting Information [Line Items] | |||
Ownership interest (as a percent) | 56.20% | 65.00% |
Business Segments - Information
Business Segments - Information on Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 643,025 | $ 649,775 |
Operating profit (loss): | 48,670 | 91,104 |
Interest expense | (7,827) | (6,636) |
Interest income | 1,802 | 940 |
Other non-operating (expense) income | (235) | 1,462 |
Income before income taxes | 42,410 | 86,870 |
Americas Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 522,369 | 567,163 |
Operating profit (loss): | 63,193 | 106,052 |
International Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 120,656 | 82,612 |
Operating profit (loss): | 1,653 | (1,772) |
Eliminations - Intercompany | ||
Segment Reporting Information [Line Items] | ||
Net sales | (30,299) | (32,789) |
Operating profit (loss): | (352) | (157) |
Eliminations - Intercompany | Americas Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8,991 | 12,175 |
Eliminations - Intercompany | International Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 21,308 | 20,614 |
Operating Segments | Americas Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 531,360 | 579,338 |
Operating Segments | International Tire | ||
Segment Reporting Information [Line Items] | ||
Net sales | 141,964 | 103,226 |
Unallocated corporate charges | ||
Segment Reporting Information [Line Items] | ||
Operating profit (loss): | $ (15,824) | $ (13,019) |