Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CTB | ||
Entity Registrant Name | COOPER TIRE & RUBBER CO | ||
Entity Central Index Key | 24,491 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 50,797,944 | ||
Entity Public Float | $ 1,834,716,601 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 2,854,656 | $ 2,924,869 | $ 2,972,901 |
Cost of products sold | 2,338,153 | 2,272,519 | 2,355,451 |
Gross profit | 516,503 | 652,350 | 617,450 |
Selling, general and administrative expense | 244,779 | 255,701 | 262,970 |
Pension settlement charges | 0 | 12,262 | 0 |
Operating profit | 271,724 | 384,387 | 354,480 |
Interest expense | (32,048) | (26,604) | (23,820) |
Interest income | 7,362 | 4,378 | 2,211 |
Other non-operating (expense) income | (3,113) | 4,932 | 1,157 |
Income before income taxes | 243,925 | 367,093 | 334,028 |
Provision for income taxes | 147,180 | 115,799 | 118,224 |
Net income | 96,745 | 251,294 | 215,804 |
Net income attributable to noncontrolling shareholders' interests | 1,345 | 2,913 | 3,038 |
Net income attributable to Cooper Tire & Rubber Company | $ 95,400 | $ 248,381 | $ 212,766 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.83 | $ 4.56 | $ 3.73 |
Diluted (in dollars per share) | $ 1.81 | $ 4.51 | $ 3.69 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 96,745 | $ 251,294 | $ 215,804 |
Other comprehensive income (loss): | |||
Cumulative currency translation adjustments | 38,850 | (57,954) | (35,320) |
Financial instruments: | |||
Change in the fair value of derivatives and marketable securities | (2,473) | (2,371) | (2,319) |
Income tax benefit on derivative instruments | 855 | 884 | 1,011 |
Financial instruments, net of tax | (1,618) | (1,487) | (1,308) |
Postretirement benefit plans: | |||
Amortization of actuarial loss | 42,570 | 43,624 | 46,736 |
Amortization of prior service credit | (566) | (566) | (566) |
Actuarial gain (loss) | 13,385 | (39,689) | 23,597 |
Pension settlement charges | 0 | 12,262 | 0 |
Income tax benefit on postretirement benefit plans | (14,718) | (9,299) | (23,410) |
Foreign currency translation effect | (7,855) | 13,152 | 6,879 |
Postretirement benefit plans, net of tax | 32,816 | 19,484 | 53,236 |
Other comprehensive income (loss) | 70,048 | (39,957) | 16,608 |
Comprehensive income | 166,793 | 211,337 | 232,412 |
Less comprehensive income (loss) attributable to noncontrolling shareholders' interests | 4,720 | (1,660) | (1,189) |
Comprehensive income attributable to Cooper Tire & Rubber Company | $ 162,073 | $ 212,997 | $ 233,601 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 371,684,000 | $ 504,423,000 |
Notes receivable | 13,753,000 | 7,485,000 |
Accounts receivable, less allowances of $7,570 at 2017 and $7,290 at 2016 | 428,060,000 | 409,913,000 |
Inventories: | ||
Finished goods | 365,672,000 | 338,887,000 |
Work in process | 31,000,000 | 29,922,000 |
Raw materials and supplies | 115,085,000 | 101,342,000 |
Total inventories | 511,757,000 | 470,151,000 |
Other current assets | 63,063,000 | 28,546,000 |
Total current assets | 1,388,317,000 | 1,420,518,000 |
Property, plant and equipment: | ||
Land and land improvements | 52,683,000 | 47,767,000 |
Buildings | 311,199,000 | 282,960,000 |
Machinery and equipment | 1,890,210,000 | 1,742,449,000 |
Molds, cores and rings | 220,528,000 | 224,662,000 |
Total property, plant and equipment | 2,474,620,000 | 2,297,838,000 |
Less: Accumulated depreciation | 1,507,873,000 | 1,433,611,000 |
Property, plant and equipment, net | 966,747,000 | 864,227,000 |
Goodwill | 54,613,000 | 52,705,000 |
Intangibles, net of accumulated amortization of $93,353 at 2017 and $77,321 at 2016 | 133,256,000 | 140,751,000 |
Restricted cash | 1,422,000 | 1,327,000 |
Deferred income tax assets | 58,665,000 | 133,879,000 |
Other assets | 4,715,000 | 5,988,000 |
Total assets | 2,607,735,000 | 2,619,395,000 |
Current liabilities: | ||
Notes payable | 39,450,000 | 26,286,000 |
Accounts payable | 277,060,000 | 282,416,000 |
Accrued liabilities | 180,476,000 | 183,804,000 |
Income taxes payable | 6,954,000 | 5,887,000 |
Current portion of long-term debt | 1,413,000 | 2,421,000 |
Total current liabilities | 505,353,000 | 500,814,000 |
Long-term debt | 295,987,000 | 297,094,000 |
Postretirement benefits other than pensions | 256,888,000 | 247,227,000 |
Pension benefits | 219,534,000 | 285,852,000 |
Other long-term liabilities | 144,217,000 | 156,924,000 |
Deferred income tax liabilities | 0 | 1,248,000 |
Equity: | ||
Common stock, $1 par value; 300,000,000 shares authorized; 87,850,292 shares issued at 2017 and 2016 | 87,850,000 | 87,850,000 |
Capital in excess of par value | 20,740,000 | 25,876,000 |
Retained earnings | 2,394,372,000 | 2,321,424,000 |
Accumulated other comprehensive loss | (478,478,000) | (545,151,000) |
Parent stockholders' equity before treasury stock | 2,024,484,000 | 1,889,999,000 |
Less: Common shares in treasury at cost (36,908,553 at 2017 and 34,850,512 at 2016) | (897,388,000) | (813,985,000) |
Total parent stockholders’ equity | 1,127,096,000 | 1,076,014,000 |
Noncontrolling shareholders’ interests in consolidated subsidiaries | 58,660,000 | 54,222,000 |
Total equity | 1,185,756,000 | 1,130,236,000 |
Total liabilities and equity | $ 2,607,735,000 | $ 2,619,395,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 7,570 | $ 7,290 |
Accumulated amortization of intangibles | $ 93,353 | $ 77,321 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 87,850,292 | 87,850,292 |
Treasury stock, shares | 36,908,553 | 34,850,512 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock $1 Par Value | Capital in Excess of Par Value | Retained Earnings | Cumulative Other Comprehensive Income (Loss) | Common Shares in Treasury | Total Parent Stockholders’ Equity | Noncontrolling Shareholders’ Interests in Consolidated Subsidiaries |
Beginning Balance at Dec. 31, 2014 | $ 884,261 | $ 87,850 | $ 5,742 | $ 1,867,126 | $ (530,602) | $ (586,324) | $ 843,792 | $ 40,469 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 215,804 | 212,766 | 212,766 | 3,038 | ||||
Net income attributable to noncontrolling shareholders' interests | 3,038 | |||||||
Other comprehensive income (loss) | 16,608 | 20,835 | 20,835 | (4,227) | ||||
Comprehensive income (loss) | 232,412 | 212,766 | 20,835 | 233,601 | (1,189) | |||
Dividends payable to noncontrolling shareholder | (917) | (917) | ||||||
Accelerated share repurchase program | 0 | 2,010 | 37,990 | (40,000) | ||||
Share repurchase program | (108,821) | (108,821) | (108,821) | |||||
Stock compensation plans, including tax benefit | 34,556 | 8,554 | 1,921 | 24,081 | 34,556 | |||
Cash dividends - $0.42 per share | (23,880) | (23,880) | (23,880) | |||||
Ending Balance at Dec. 31, 2015 | 1,017,611 | 87,850 | 16,306 | 2,095,923 | (509,767) | (711,064) | 979,248 | 38,363 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 251,294 | 248,381 | 248,381 | 2,913 | ||||
Net income attributable to noncontrolling shareholders' interests | 2,913 | |||||||
Other comprehensive income (loss) | (39,957) | (35,384) | (35,384) | (4,573) | ||||
Comprehensive income (loss) | 211,337 | 248,381 | (35,384) | 212,997 | (1,660) | |||
Dividends payable to noncontrolling shareholder | (804) | (804) | ||||||
Acquisition of business | 18,323 | 18,323 | ||||||
Share repurchase program | (107,999) | (107,999) | (107,999) | |||||
Stock compensation plans, including tax benefit | 14,596 | 9,570 | (52) | 5,078 | 14,596 | |||
Cash dividends - $0.42 per share | (22,828) | (22,828) | (22,828) | |||||
Ending Balance at Dec. 31, 2016 | 1,130,236 | 87,850 | 25,876 | 2,321,424 | (545,151) | (813,985) | 1,076,014 | 54,222 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 96,745 | 95,400 | 95,400 | |||||
Net income attributable to noncontrolling shareholders' interests | 1,345 | |||||||
Other comprehensive income (loss) | 70,048 | 66,673 | 66,673 | 3,375 | ||||
Comprehensive income (loss) | 166,793 | 95,400 | 66,673 | 162,073 | 4,720 | |||
Dividends payable to noncontrolling shareholder | (282) | (282) | ||||||
Share repurchase program | (90,868) | (90,868) | (90,868) | |||||
Stock compensation plans, including tax benefit | 1,791 | (5,136) | (538) | 7,465 | 1,791 | |||
Cash dividends - $0.42 per share | (21,914) | (21,914) | (21,914) | |||||
Ending Balance at Dec. 31, 2017 | $ 1,185,756 | $ 87,850 | $ 20,740 | $ 2,394,372 | $ (478,478) | $ (897,388) | $ 1,127,096 | $ 58,660 |
Consolidated Statements of Equ7
Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax benefit of stock based compensation plans | $ 0 | $ 274 | $ 4,323 |
Dividends paid (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income | $ 96,745 | $ 251,294 | $ 215,804 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 140,228 | 130,257 | 121,408 |
Deferred income taxes | 61,571 | (12,350) | 25,034 |
Stock-based compensation | 4,009 | 13,570 | 14,919 |
Change in LIFO reserve | 2,981 | 11,990 | (53,108) |
Amortization of unrecognized postretirement benefits | 42,004 | 43,058 | 46,170 |
Pension settlement charges | 0 | 12,262 | 0 |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | (12,239) | (45,674) | (15,155) |
Inventories | (31,820) | (77,872) | 51,864 |
Other current assets | (34,848) | 3,831 | (931) |
Accounts payable | (31,217) | 13,128 | (42,068) |
Accrued liabilities | (134) | (20,541) | 25,712 |
Other items | (60,452) | (10,210) | (85,342) |
Net cash provided by operating activities | 176,828 | 312,743 | 304,307 |
Investing activities: | |||
Additions to property, plant and equipment and capitalized software | (197,186) | (175,437) | (182,544) |
Acquisition of business, net of cash acquired | 0 | (5,928) | 0 |
Proceeds from the sale of assets | 278 | 337 | 1,651 |
Net cash used in investing activities | (196,908) | (181,028) | (180,893) |
Financing activities: | |||
Net (payments on) issuances of short-term debt | (1,507) | 10,019 | (41,303) |
Repayments of long-term debt | (2,421) | (935) | (3,125) |
Payment of financing fees | 0 | 0 | (2,586) |
Repurchase of common stock | (90,868) | (107,999) | (108,821) |
Payments of employee taxes withheld from share-based awards | (7,002) | (2,948) | (3,993) |
Payment of dividends to noncontrolling shareholders | (282) | (804) | (917) |
Payment of dividends | (21,914) | (22,828) | (23,880) |
Issuance of common shares related to stock-based compensation | 4,224 | 3,950 | 19,642 |
Excess tax benefits on stock-based compensation | 0 | 274 | 4,323 |
Net cash used in financing activities | (119,770) | (121,271) | (160,660) |
Effects of exchange rate changes on cash of continuing operations | 7,111 | (11,178) | (9,249) |
Changes in cash and cash equivalents | (132,739) | (734) | (46,495) |
Cash and cash equivalents at beginning of year | 504,423 | 505,157 | 551,652 |
Cash and cash equivalents at end of year | $ 371,684 | $ 504,423 | $ 505,157 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of consolidation – The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. All intercompany accounts and transactions have been eliminated. 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 subsidiaries of 50 percent or less but greater than 20 -percent are accounted for using the equity method, and investments in subsidiaries 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. Cash and cash equivalents – The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company’s objectives related to the investment of cash not required for operations is to preserve capital, meet the Company’s liquidity needs and earn a return consistent with these guidelines and market conditions. Investments deemed eligible for the investment of the Company’s cash include: 1) U.S. Treasury securities and general obligations fully guaranteed with respect to principal and interest by the government; 2) obligations of U.S. government agencies; 3) commercial paper or other corporate notes of prime quality purchased directly from the issuer or through recognized money market dealers; 4) time deposits, certificates of deposit or bankers’ acceptances of banks rated “A-” by Standard & Poor’s or “A3” by Moody’s; 5) collateralized mortgage obligations rated “AAA” by Standard & Poor’s and “Aaa” by Moody’s; 6) tax-exempt and taxable obligations of state and local governments of prime quality; and 7) mutual funds or outside managed portfolios that invest in the above investments. The Company had cash and cash equivalents totaling $371,684 and $504,423 at December 31, 2017 and December 31, 2016 , respectively. The majority of the cash and cash equivalents were invested in eligible financial instruments in excess of amounts insured by the Federal Deposit Insurance Corporation and, therefore, subject to credit risk. Management believes that the probability of losses related to credit risk on investments classified as cash and cash equivalents is remote. Notes receivable – The Company has received bank secured notes from certain of its customers in the PRC to settle trade accounts receivable. These notes generally have maturities of six months or less and are redeemable at the bank of issuance. The Company evaluates the credit risk of the issuing bank prior to accepting a bank secured note from a customer. Management believes that the probability of material losses related to credit risk on notes receivable is remote. Accounts receivable – The Company records trade accounts receivable when revenue is recorded in accordance with its revenue recognition policy and relieves accounts receivable when payments are received from customers. Allowance for doubtful accounts – The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts throughout the year. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting specific accounts and management’s evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part, and are written off at that time through a charge against the allowance for doubtful accounts. Inventories – In 2017, the Company adopted Accounting Standard Update (ASU) 2015-11, "Inventory-Simplifying the Measurement of Inventory," which changed how inventory is valued. Inventories are valued at cost, which is not in excess of the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory costs have been determined by the LIFO method for substantially all U.S. inventories. Costs of other inventories have been determined by the FIFO method. Inventories include direct material, direct labor, and applicable manufacturing and engineering overhead costs. Long-lived assets – Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives: Land improvements 10 to 20 years Buildings 10 to 40 years Machinery and equipment 5 to 14 years Molds, cores and rings 2 to 10 years The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized over the estimated useful life of the software, which ranges from three years to nine years . Intangibles with definite lives include trademarks, technology and intellectual property which are amortized over their remaining useful lives, which range from one to three years . Land use rights are amortized over their remaining useful lives, which range from 38 years to 45 years . The Company evaluates the recoverability of long-lived assets based on undiscounted projected cash flows, excluding interest and taxes, when any impairment is indicated. Goodwill and indefinite-lived intangibles are assessed for potential impairment at least annually or when events or circumstances indicate impairment may have occurred. Earnings per common share – Net income per share is computed on the basis of the weighted average number of common shares outstanding each year. 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: (Number of shares and dollar amounts in thousands except per share amounts) 2017 2016 2015 Numerator Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders $ 95,400 $ 248,381 $ 212,766 Denominator Denominator for basic earnings per share - weighted average shares outstanding 52,206 54,480 57,012 Effect of dilutive securities - stock options and other stock units 467 610 611 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 52,673 55,090 57,623 Earnings per share: Basic $ 1.83 $ 4.56 $ 3.73 Diluted $ 1.81 $ 4.51 $ 3.69 At December 31, 2017 , 2016 and 2015 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. Derivative financial instruments – 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 Company offsets fair value amounts recognized on the Consolidated Balance Sheets for derivative financial instruments executed with the same counter-party. The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated net asset and liability positions. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Consolidated Statements of Income in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. 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 unrealized gains and losses on such forward contracts are recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company assesses hedge effectiveness quarterly. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. The Company also performs regression analysis comparing the change in value of the hedging contracts versus the underlying foreign currency sales and purchases, which confirms a high correlation and hedge effectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Consolidated Statements of Income in the period in which the ineffectiveness occurs. The Company is exposed to price risk related to forecasted purchases of certain commodities that are used as raw materials, principally natural rubber. Accordingly, it uses commodity contracts with forward pricing for a portion its production requirements. These contracts generally qualify for the normal purchase exception under guidance for derivative instruments and hedging activities, and therefore are not subject to its provisions. Income taxes – Income tax expense is based on reported earnings or losses before income taxes in accordance with the tax rules and regulations of the specific legal entities within the various specific taxing jurisdictions where the Company’s income is earned. Taxable income may differ from earnings before income taxes for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, a provision for deferred income taxes is made using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset may not be realized. Deferred income taxes generally are not recorded on the majority of undistributed earnings of international subsidiaries based on the Company’s intention that these earnings will continue to be reinvested. Upon enactment of the Tax Act, the Transition Tax was recorded based on approximately $495 million of unremitted foreign earnings. While the Company has accrued Transition Tax payable on the deemed repatriation of earnings that were previously indefinitely reinvested, it was unable to determine a reasonable estimate of the remaining tax liability, if any, under the Tax Act for its remaining outside basis differences or assess how the Tax Act will impact the Company's existing assertion of indefinite reinvestment. As such, no change has been made with respect to that assertion for the year ended December 31, 2017. Product liability – 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 products 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. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. 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 probable 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. The Company periodically reviews such estimates and any adjustments for changes in reserves are recorded in the period in which the change in estimate occurs. 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. While the Company believes its reserves are reasonably stated, 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 product liability expense reported by the Company includes amortization of insurance premium costs, adjustments to liability 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. Advertising expense – Expenses incurred for advertising include production and media and are generally expensed when incurred. Costs associated with dealer-earned cooperative advertising are recorded as a reduction of the revenue component of Net sales at the time of sale. Advertising expense for 2017 , 2016 and 2015 was $52,798 , $53,715 and $53,007 , respectively. 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 fair value on the date of grant and is amortized to expense over the vesting period. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. See Note 12 – Stock-Based Compensation for additional information. Warranties – Warranties are provided on the sale of certain of the Company’s products, and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties 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 which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Consolidated Balance Sheets: 2017 2016 2015 Reserve at beginning of year 10,634 12,339 14,005 Additions 10,310 8,349 9,122 Payments (8,851 ) (10,054 ) (10,788 ) Reserve at December 31 12,093 10,634 12,339 Use of estimates – The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of: (1) revenues and expenses during the reporting period; and (2) assets and liabilities, as well as disclosure of contingent assets and liabilities, at the date of the consolidated financial statements. Actual results could differ from those estimates. Revenue recognition – Revenues are recognized when title to the product passes to customers. Shipping and handling costs are recorded in cost of products sold. Allowance programs such as volume rebates and cash discounts are recorded at the time of sale as a reduction to revenue based on anticipated accrual rates for the year. Research and development – Costs are charged to cost of products sold as incurred and amounted to approximately $59,869 , $55,534 and $51,793 during 2017 , 2016 and 2015 , respectively. Related Party Transactions – The Company’s COOCSA joint venture paid $40,279 , $33,774 and $26,598 in 2017 , 2016 and 2015 , respectively, to an employment services company in Mexico owned by members of the joint venture workforce. COOCSA also recorded sales of $8,209 , $6,335 and $6,555 to the noncontrolling shareholder in 2017 , 2016 and 2015 , respectively. Truck and Bus Tire Tariffs – Antidumping and countervailing duty investigations into certain truck and bus tires imported from the 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 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 have been 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 Consolidated Statement of Income for the year ended December 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. For the year ended December 31, 2017 , the Company incurred direct expenses of $12,569 related to the disposal of damaged tires, freight to move product to other warehouses, professional fees to secure and maintain the site and for the rental of additional storage facilities, less proceeds of $7,000 recovered from insurance. These amounts were recorded as a component of Cost of products sold in the Consolidated Statement of Income for the year ended December 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 December 31, 2017 . Recent 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 ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s 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 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, $1,877 of excess tax benefits from stock-based compensation was recognized as discrete items in the provision for income taxes for the year ended December 31 , 2017 . Additionally, the cash flow benefit of the excess tax benefits is included as an operating activity in the Consolidated Statement of Cash Flows for the year ended December 31, 2017. In accordance with the standard, the prior year Consolidated Statement of Income and 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 Consolidated Statements of Cash Flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change in the years ended 2017, 2016 and 2015 was $7,002 , $2,948 and $3,993 , respectively, reported as Payments of employee taxes withheld from share-based awards in the Consolidated statement of cash flows. Finally, as permitted by the standard, the Company 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 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. The Company has also 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. In addition, the Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. While the Company continues to assess all potential impacts of 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 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. In 2017, the FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients, and other improvements to ASU 2016-02. The Company is currently evaluating the impact the new standard, including optional practical expedients, and assessing our existing lease portfolio in order to assess the impact on its 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 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. As reported in Note 9 - Pensions and Postretirement Benefits Other than Pensions, the 2017, 2016 and 2015 net periodic benefit costs were $49,386 , $64,842 and $58,384 , respectively. The service cost component of these amounts in 2017, 2016 and 2015, which will remain as a component of operating profit, were $11,863 , $11,771 and $13,559 , respectively. Net income will not change as a result of the adoption of this standard. The Company adopted the standard in the first quarter of 2018. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. Adoption of the new standard 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 consolidated financial statements. |
GRT Acquisition GRT Acquisition
GRT Acquisition GRT Acquisition | 12 Months Ended |
Dec. 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 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 owned 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 closing. 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. 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 an additional $22,125 to GRT in the second quarter of 2017 to fund working capital requirements. In total, the Company has invested $86,556 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 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, which is included in the International Tire Segment. Goodwill is not deductible for federal income tax purposes. The following table summarizes the allocations of the fair values of the assets acquired and liabilities assumed, as adjusted. The originally reported amounts were provisional and were 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. Subsequent to December 1, 2016, the valuation was completed and adjustments were made to the preliminary allocations of the fair value of the assets acquired and liabilities assumed from the GRT acquisition. As Originally Assets Reported Adjustments As Adjusted Cash $ 8,091 $ — $ 8,091 Accounts receivable 2,844 — $ 2,844 Notes receivable 3,050 — $ 3,050 Inventory 7,983 485 $ 8,468 Other current assets 981 — $ 981 Property, plant & equipment 46,712 829 $ 47,541 Intangible assets 7,412 16 $ 7,428 Other long-term assets 289 — $ 289 Goodwill 33,861 (611 ) $ 33,250 Liabilities Accounts payable (61,570 ) (719 ) $ (62,289 ) Notes payable (10,122 ) — $ (10,122 ) Accrued liabilities (2,866 ) — $ (2,866 ) Long-term debt (3,383 ) — $ (3,383 ) Other long-term liabilities (940 ) — $ (940 ) 32,342 — 32,342 Noncontrolling shareholder interest (18,323 ) — (18,323 ) Cooper Tire & Rubber Company consideration $ 14,019 $ — $ 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 8. 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 non-controlling shareholder interest. The valuation of property, plant and equipment was developed using primarily the cost approach. The fair value of the non-controlling shareholder interest was determined based upon internal and external inputs considering various relevant market transactions and discounted cash flow valuation methods, among other factors. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory costs are determined using the LIFO method for substantially all U.S. inventories. The current cost of the U.S. inventories under the FIFO method was $415,640 and $409,034 at December 31, 2017 and 2016 , respectively. These FIFO values have been reduced by approximately $88,094 and $85,113 at December 31, 2017 and 2016 , respectively, to arrive at the LIFO value reported on the Consolidated Balance Sheets. The remaining inventories have been valued under the FIFO method. 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. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill is recorded in the segment where it was generated by acquisitions. The Company has recorded goodwill in the amount of $33,250 related to the acquisition of GRT in 2016 and $18,851 related to the acquisition of additional ownership of COOCSA in 2011. See Note 2 - GRT Acquisition for a discussion of the goodwill recorded during 2016 and 2017. There have been no other changes to the value of goodwill since 2011. Goodwill prior to 2011 was zero . Purchased goodwill and indefinite-lived intangible assets are tested annually for impairment unless indicators are present that would require an earlier test. During the fourth quarter of 2017 , the Company completed its annual goodwill and intangible asset impairment tests and no impairment was indicated. The following table presents intangible assets and accumulated amortization balances as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived: Capitalized software costs 192,474 (81,908 ) 110,566 185,539 (65,719 ) 119,820 Land use rights 12,850 (1,230 ) 11,620 10,386 (1,642 ) 8,744 Trademarks and tradenames 8,800 (7,547 ) 1,253 8,800 (7,094 ) 1,706 Other 2,668 (2,668 ) — 3,530 (2,866 ) 664 216,792 (93,353 ) 123,439 208,255 (77,321 ) 130,934 Indefinite-lived: Trademarks 9,817 — 9,817 9,817 — 9,817 $ 226,609 $ (93,353 ) $ 133,256 $ 218,072 $ (77,321 ) $ 140,751 Estimated amortization expense over the next five years is as follows: 2018 - $16,821 , 2019 - $16,331 , 2020 - $16,151 , 2021 - $15,534 and 2022 - $13,865 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities at December 31 were as follows: 2017 2016 Payroll and employee benefits, excluding postemployment benefits $ 59,593 $ 67,274 Product liability 44,700 58,054 Other postretirement benefits 14,838 15,048 Advertising 17,476 14,281 Taxes other than income taxes 9,770 11,414 Warranty 8,304 5,699 Other 25,795 12,034 Accrued liabilities $ 180,476 $ 183,804 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of income from continuing operations before income taxes and noncontrolling shareholders’ interests were as follows: 2017 2016 2015 United States $ 211,225 $ 319,156 $ 314,263 Foreign 32,700 47,937 19,765 Total $ 243,925 $ 367,093 $ 334,028 The provision (benefit) for income tax for continuing operations consisted of the following: 2017 2016 2015 Current: Federal $ 69,463 $ 100,714 $ 67,405 State and local 6,304 12,445 12,837 Foreign 9,842 14,990 12,948 85,609 128,149 93,190 Deferred: Federal 48,866 (6,730 ) 23,466 State and local 4,915 (763 ) 5,157 Foreign 7,790 (4,857 ) (3,589 ) 61,571 (12,350 ) 25,034 $ 147,180 $ 115,799 $ 118,224 On December 22, 2017, the U.S. enacted comprehensive tax legislation, commonly referred to as the "Tax Act", which made broad and complex changes to the tax code. In conjunction with that enactment, the SEC staff issued SAB 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act," which provides guidance on accounting for the impact of the Tax Act over a measurement period. In accordance with the guidance set forth under SAB 118, the Company recognizes that it has not yet completed its accounting for certain income tax effects of the Tax Act. Where the Company has been able to make reasonable estimates of the effects for which its analyses are still being completed, it has recorded provisional amounts for those effects based on all information available as of December 31, 2017. These amounts will then be adjusted during the measurement period as the Company finalizes its analyses. Provisional amounts based on reasonable estimates were recorded for the following elements of the Tax Act as of December 31, 2017: Remeasurement of deferred tax assets and liabilities: The Tax Act reduces the federal corporate income tax rate from 35% to 21% effective January 1, 2018. The rate change resulted in a reduction to our net deferred tax asset of $20,413 with a corresponding increase to deferred tax expense. The Company is still completing its analysis of the impact of this change and certain other specific changes related to 100 percent expensing of qualified fixed assets and new limitations on the deductibility of executive compensation. Transition Tax on Unrepatriated Foreign Earnings: Upon enactment, the Tax Act also provides for a mandatory, one-time deemed repatriation of previously untaxed accumulated earnings and profits of the Company's foreign subsidiaries. The Company has recorded a provisional tax liability, commonly referred to as the "Transition Tax," of $35,378 . The Transition Tax payable, net of foreign tax credit carryforwards of $1,707 , will be paid over eight years in installments of $2,694 each year from 2018 through 2022 and the remaining liability of $20,201 in 2023 - 2025. Where the Company has not been able to make reasonable estimates of the effects for which its analyses are still being completed, it has not recorded provisional amounts. Beginning in the first reporting period during the SAB 118 measurement period in which the Company obtains necessary information and is able to analyze and prepare reasonable estimates, it will record amounts as needed. Provisional amounts were not recorded for the following elements of the Tax Act as of December 31, 2017: Indefinite Reinvestment Assertion: Prior to enactment of the Tax Act, the Company did not recognize a deferred tax liability related to the U.S. federal and state income taxes and foreign withholding taxes on unremitted foreign earnings because it overcame the presumption of the repatriation of those earnings. Upon enactment of the Tax Act, the Transition Tax was recorded based on approximately $495 million of unremitted foreign earnings. While the Company has accrued Transition Tax payable on the deemed repatriation of earnings that were previously indefinitely reinvested, it was unable to determine a reasonable estimate of the remaining tax liability, if any, under the Tax Act for its remaining outside basis differences or assess how the Tax Act will impact the Company's existing assertion of indefinite reinvestment. As such, no change has been made with respect to that assertion for the year ended December 31, 2017. Global intangible low-taxed income: The Tax Act subjects a U.S. parent shareholder to current tax on its “global intangible low-taxed income” (GILTI). For the GILTI provisions of the Tax Act, a provisional estimate could not be made as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. A reconciliation of income tax expense (benefit) for continuing operations to the tax based on the U.S. statutory rate is as follows: 2017 2016 2015 Income tax provision at 35% $ 85,375 $ 128,483 $ 116,910 Expiration of capital loss carryforward — — 18,376 Valuation allowance - China (6,671 ) (2,441 ) (18,200 ) Valuation allowance - U.K. 18,915 — — State and local income tax, net of federal income tax effect 7,867 8,693 12,321 Domestic manufacturing deduction (2,940 ) (9,870 ) (6,580 ) U.S. tax credits (2,474 ) (3,013 ) (3,186 ) Tax law or rate change excluding U.S. tax act — 794 2,383 U.S. tax act - transition tax 35,378 — — U.S. tax act - remeasurement of deferred taxes 20,413 — — Difference in effective tax rates of international operations (4,667 ) (4,900 ) (932 ) Other - net (4,016 ) (1,947 ) (2,868 ) Provision for income taxes $ 147,180 $ 115,799 $ 118,224 Payments for income taxes in 2017 , 2016 and 2015 , net of refunds, were $67,782 , $131,001 and $76,206 , respectively. Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial reporting purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31 were as follows: 2017 2016 Deferred tax assets: Postretirement and other employee benefits $ 116,321 $ 191,099 Product liability 32,668 67,528 Net operating loss, capital loss, and tax credit carryforwards 14,174 15,274 All other items 33,423 48,718 Total deferred tax assets 196,586 322,619 Deferred tax liabilities: Property, plant and equipment (101,720 ) (160,075 ) All other items (6,099 ) (9,685 ) Total deferred tax liabilities (107,819 ) (169,760 ) 88,767 152,859 Valuation allowances (30,102 ) (20,228 ) Net deferred tax asset $ 58,665 $ 132,631 At December 31, 2017 , the Company has gross U.S. federal and foreign tax losses available for carryforward of $6,731 and $64,972 , respectively. The Company has $240 of state tax credits available for carryforward. The state tax attributes will expire from 2018 through 2027. Valuation allowances have been provided for those items for which, based upon an assessment, it is more likely than not that some portion may not be realized. The Company assesses the available positive and negative evidence to estimate if future taxable income will be generated to realize existing deferred tax assets in their respective jurisdictions. In the United Kingdom, a significant piece of objective negative evidence evaluated was the cumulative losses that have now been incurred over the three-year period ended December 31, 2017. This significant piece of objective negative evidence limits the ability to consider other subjective evidence such as projections for future growth. On the basis of this evaluation, a full valuation allowance was recorded for the year ended December 31, 2017 which resulted in incremental deferred tax expense of $18,915 . In China, the Company achieved three years of cumulative pretax income through the period ended December 31, 2017 with Cooper Tire (China) Investment Co., Ltd. Based in part on that achievement, the Company determined that sufficient positive evidence exists as of December 31, 2017 to conclude that it is more likely than not that additional deferred taxes of $6,671 are now realizable and therefore released the valuation allowance accordingly. The Company applies the rules under ASC 740-10 in its Accounting for Uncertainty in Income Taxes for uncertain tax positions using a “more likely than not” recognition threshold. Pursuant to these rules, the Company will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on the Company’s estimate of the largest amount that meets the more likely than not recognition threshold. The Company’s unrecognized tax benefits, exclusive of interest, totaled approximately $2,283 at December 31, 2017 , as itemized in the tabular roll forward below. The unrecognized tax benefits at December 31, 2017 relate to uncertain tax positions in tax years 2013 through 2017. Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is reasonably 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. Unrecognized Tax Benefits Balance at December 31, 2014 $ 8,314 Settlements for tax positions of prior years (367 ) Additions for tax positions of prior years 1,151 Reductions for tax positions of prior years (942 ) Statute lapses (2,313 ) Balance at December 31, 2015 5,843 Settlements for tax positions of prior years (518 ) Additions for tax positions of the current year 714 Additions for tax positions of prior years 1,518 Statute lapses (4,360 ) Balance at December 31, 2016 3,197 Settlements for tax positions of prior years (139 ) Additions for tax positions of the current year 47 Additions for tax positions of prior years 438 Statute lapses (1,260 ) Balance at December 31, 2017 $ 2,283 Of this amount, the effective rate would change upon the recognition of approximately $2,283 of these unrecognized tax benefits. The Company recorded, through the tax provision, approximately $17 of benefit on interest reduction for 2017 , $347 of benefit on interest reduction for 2016 , and $63 of interest expense for 2015 . At December 31, 2017 , the Company has $124 of interest accrued as an ASC 740-10 reserve. The Company operates in multiple jurisdictions throughout the world. The Company has effectively settled U.S. federal tax examinations for years before 2014 and state and local examinations for years before 2013, with limited exceptions. Furthermore, the Company’s non-U.S. subsidiaries are generally no longer subject to income tax examinations in major foreign taxing jurisdictions for years prior to 2008. The income tax returns of certain of our 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. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On May 27, 2015, the Company entered into a revolving credit facility with a consortium of banks that provides up to $400,000 based on available collateral, including a $110,000 letter of credit subfacility, and expires in May 2020. The Company may elect to increase the commitments under the revolving credit facility or incur one or more tranches of term loans in an aggregate amount of up to $100,000 , subject to the satisfaction of certain conditions. The Company may elect to add certain foreign subsidiaries as additional borrowers under the Credit Agreement (the “Foreign Subsidiary Borrowers”), subject to the satisfaction of certain conditions. All of the indebtedness of the Company and any Foreign Subsidiary Borrowers under the $400,000 revolving credit facility is guaranteed by certain of the Company’s domestic subsidiaries and secured by substantially all of the assets of the Company and the domestic guarantors, subject to certain limitations. All of the indebtedness of any Foreign Subsidiary Borrower under the $400,000 revolving credit facility will be guaranteed by the Company and all wholly-owned foreign subsidiaries of the Foreign Subsidiary Borrower that reside in the same jurisdiction, subject to certain limitations, and secured by substantially all of the assets of the Company, the Foreign Subsidiary Borrowers and the guarantors. Borrowings under the revolving credit facility bear interest at a rate per annum equal to, at the Company’s option, either (i) the base rate plus the applicable margin or (ii) the relevant adjusted LIBOR for an interest period of one, two, three or six months (as selected by the Company), or such other period of time approved by the lenders, plus the applicable margin. The revolving credit facility contains certain customary non-financial covenants. In addition, the revolving credit facility contains financial covenants that require the Company to maintain a net leverage ratio and interest coverage ratio in accordance with the limits set forth therein. On May 27, 2015, the Company amended its accounts receivable securitization facility, reducing the borrowing limit from $175,000 to $150,000 and extending the maturity until May 2018. Pursuant to the terms of the facility, the Company is permitted to sell certain of its domestic trade receivables on a continuous basis to its wholly-owned, bankruptcy-remote subsidiary, Cooper Receivables LLC (“CRLLC”). In turn, CRLLC may sell from time to time an undivided ownership interest in the purchased trade receivables, without recourse, to a PNC Bank administered, asset-backed commercial paper conduit. The accounts receivable securitization facility has no significant financial covenants until available credit is less than specified amounts. On February 15, 2018, the Company signed amendments to extend the maturity of both the revolving credit facility and the accounts receivable securitization facility. The revolving credit facility maturity was extended to February 15, 2023, while the accounts receivable securitization facility was extended until February 12, 2021. There were no material changes to the terms and conditions of the revolving credit facility or the accounts receivable securitization facility as a result of the respective amendments. There were no borrowings under the revolving credit facility or the accounts receivable securitization facility at December 31, 2017 and 2016 , respectively. Amounts used to secure letters of credit totaled $17,600 and $21,800 at December 31, 2017 and 2016 , respectively. The Company’s additional borrowing capacity, net of amounts used to back letters of credit and based on eligible collateral through use of its credit facility with its bank group and its accounts receivable securitization facility at December 31, 2017 , was $527,600 . The Company’s consolidated operations in Asia have renewable unsecured credit lines that provide up to $63,600 of borrowings and do not contain financial covenants. The additional borrowing capacity on the Asian credit lines, based on eligible collateral and the short-term notes payable, totaled $24,200 at December 31, 2017 . In 2010 and 2017, Industrial Revenue Bonds (IRBs) were issued by the City of Texarkana to finance the design, equipping and construction of expansions, as well as the on-going operations of the Texarkana manufacturing facility, in return for real estate and equipment located at the Company’s Texarkana tire manufacturing plant. The assets related to the expansion and on-going plant operations provide security for the bonds issued by the City of Texarkana. As a result, the City retains title to the assets and, in turn, provides a 100 percent property tax exemption to the Company. However, the Company has recorded the property in its Consolidated Balance Sheets, along with a capital lease obligation to repay the proceeds of the IRBs, because the arrangements are cancelable at any time at the Company’s request. The Company has also purchased the IRBs and therefore is the bondholder, as well as the borrower/lessee of the property purchased with the IRB proceeds. The capital lease obligations and IRB assets are recorded net in the Consolidated Balance Sheets. At December 31, 2017 and 2016, the assets and liabilities associated with these City of Texarkana IRBs were $24,100 and $20,000 , respectively. The following table summarizes the long-term debt of the Company at December 31, 2017 and 2016 . There were no secured notes outstanding as of December 31, 2017 . Except for the capitalized leases and other, the long-term debt is due in an aggregate principal payment on the due date: 2017 2016 Parent company 8% unsecured notes due December 2019 $ 173,578 $ 173,578 7.625% unsecured notes due March 2027 116,880 116,880 Capitalized leases and other 7,684 9,883 298,142 300,341 Less: unamortized debt issuance costs 742 826 297,400 299,515 Less: current maturities 1,413 2,421 $ 295,987 $ 297,094 Over the next five years, the Company has payments related to the above debt of: Future Debt Payments 2018 $ 1,413 2019 174,786 2020 — 2021 5,063 2022 through 2026 — In addition, at December 31, 2017 and 2016 , the Company had short-term notes payable of $39,450 and $26,286 , respectively, due within twelve months, consisting of funds borrowed by the Company’s operations in the PRC. The weighted average interest rate of the short-term notes payable at December 31, 2017 and 2016 was 4.46 percent and 4.26 percent , respectively. Interest paid on debt during 2017 , 2016 and 2015 was $34,085 , $28,842 and $27,560 , respectively. The amount of interest capitalized was $2,706 , $3,016 and $4,473 during 2017 , 2016 and 2015 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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 non-designated and cash flow hedges of foreign currency exposures. The change in values of the non-designated foreign currency hedges offset the exchange rate fluctuations related to assets and liabilities recorded on the consolidated balance sheets. The cash flow hedges offset exchange rate fluctuations on the foreign currency-denominated intercompany loans and forecasted cash flows. 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. Additionally, the Company utilizes cash flow hedges that hedge already recognized intercompany loans with maturities of up to four years. The notional amount of these foreign currency derivative instruments at December 31, 2017 and 2016 was $134,530 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 $(2,640) and $1,029 as of December 31, 2017 and 2016 , respectively) are recorded as a separate component of stockholders’ equity in the accompanying consolidated balance sheets and reclassified into earnings as the hedged transactions occur. The Company utilizes cross-currency interest rate swaps to hedge the principal and interest repayment of some intercompany loans. These contracts have maturities of up to four years and meet the criteria for and have been designated as cash flow hedges. Spot to spot changes are recorded in income and all other effective changes are recorded as a separate component of stockholder's equity. 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 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 Consolidated Balance Sheets: Year Ended December 31, Assets/(Liabilities) 2017 2016 Designated as hedging instruments: Gross amounts recognized $ (2,808 ) $ 1,029 Gross amounts offset 168 — Net amounts (2,640 ) 1,029 Not designated as hedging instruments: Gross amounts recognized (684 ) 109 Gross amounts offset 97 (76 ) Net amounts (587 ) 33 Net Amounts Presented: Accrued current liabilities $ (1,893 ) $ — Other long-term liabilities $ (1,334 ) $ — Other current assets $ — $ 1,062 The following table presents the location and amount of gains and losses on derivative instruments in the Consolidated Statements of Income: Year Ended December 31, Derivatives Designated as Cash Flow Hedges 2017 2016 2015 Amount of (loss) gain recognized in Other comprehensive income on derivatives (Effective Portion) $ (6,092 ) $ (2,471 ) $ 11,127 Amount of gain (loss) reclassified from Accumulated other comprehensive loss into Income (Effective Portion) 3,619 100 (13,446 ) Amount of loss recognized in income on derivatives (Ineffective Portion) — — (136 ) Derivatives not Designated as Hedging Instruments Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Year Ended December 31, 2017 2016 2015 Foreign exchange contracts Other non-operating (expense) income $ (3,464 ) $ (156 ) $ 174 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 Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. Level 2. Financial assets and liabilities whose 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 assets and liabilities whose 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 currency derivative instruments 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. However, as of December 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 to be 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 the 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 as of December 31, 2017 and 2016 : December 31, 2017 Total Quoted Prices Significant Significant Foreign Exchange Contracts $ (3,227 ) $ — $ (3,227 ) $ — Stock-based Liabilities $ (16,713 ) $ (16,713 ) $ — $ — 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 ) $ — $ — There were no assets or liabilities classified as Level 3 in 2017 or 2016 . The fair market value of Cash and cash equivalents , Notes receivable , Restricted cash , Notes payable and Current portion of long-term debt at December 31, 2017 and 2016 are equal to their corresponding carrying values as reported on the Consolidated Balance Sheets as of December 31, 2017 and 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 $329,329 and $331,941 at December 31, 2017 and 2016 , respectively, and is classified within Level 1 of the fair value hierarchy. The carrying value of Long-term debt is $295,987 and $297,094 as reported on the Consolidated Balance Sheets as of December 31, 2017 and 2016 , respectively. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The Company has a number of plans providing pension, retirement or profit-sharing benefits. These plans include defined benefit and defined contribution plans. The plans cover substantially all U.S. domestic employees. There are also plans that cover employees in the U.K. and Germany. The Company has an unfunded, nonqualified supplemental retirement benefit plan in the U.S. covering certain employees whose participation in the qualified plan is limited by provisions of the Internal Revenue Code. For defined benefit plans, benefits are generally based on compensation and length of service for salaried employees and length of service for hourly employees. In the U.S., the Company froze the pension benefits in its Spectrum (salaried employees) Plan in 2009. In 2012, the Company closed the U.S. pension plans for the bargaining units to new participants. Certain grandfathered participants in the bargaining unit plans continue to accrue pension benefits. Employees of certain of the Company’s foreign operations in the U.K. and Germany are covered by either contributory or non-contributory trusteed pension plans. In 2012, the Company froze the benefits in the U.K. pension plan. Participation in the Company’s defined contribution plans is voluntary. The Company matches plan participants’ contributions up to various limits. Participants’ contributions are limited based on their compensation and, for certain supplemental contributions which are not eligible for Company matching, based on their age. Expense for those plans was $13,931 , $13,260 and $14,236 for 2017 , 2016 and 2015 , respectively. The Company currently provides retiree health care and life insurance benefits to a portion of its U.S. salaried and hourly employees. U.S. salaried and non-bargained hourly employees hired on or after January 1, 2003 are not eligible for retiree health care or life insurance coverage. The Company has reserved the right to modify or terminate certain of these salaried benefits at any time. The Company has implemented household caps on the amounts of retiree medical benefits it will provide to certain retirees. The caps do not apply to individuals who retired prior to certain specified dates. Costs in excess of these caps will be paid by plan participants. The Company implemented increased cost sharing in 2004 in the retiree medical coverage provided to certain eligible current and future retirees. Since then, cost sharing has expanded such that nearly all covered retirees pay a charge to be enrolled. In accordance with U.S. GAAP, the Company recognizes the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligation) of its pension and OPEB plans and the net unrecognized actuarial losses and unrecognized prior service costs in the Consolidated Balance Sheets. The unrecognized actuarial losses and unrecognized prior service costs (components of Accumulated other comprehensive loss in the Equity section of the balance sheet) will be subsequently recognized as net periodic pension cost pursuant to the Company’s historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit costs in the same periods will be recognized as a component of other comprehensive income. The following table reflects changes in the projected obligations and fair market values of assets in all defined benefit pension and other postretirement benefit plans of the Company: 2017 Pension Benefits 2016 Pension Benefits Other Postretirement Benefits Domestic International Total Domestic International Total 2017 2016 Change in benefit obligation: Projected Benefit Obligation at beginning of year $ 1,040,498 $ 422,528 $ 1,463,026 $ 1,045,467 $ 405,884 $ 1,451,351 $ 262,275 $ 265,579 Service cost - employer 9,860 — 9,860 9,613 9 9,622 2,003 2,149 Interest cost 39,251 11,525 50,776 41,595 14,097 55,692 10,063 10,819 Actuarial (gain)/loss 59,137 2,567 61,704 26,618 81,180 107,798 8,190 (5,760 ) Benefits paid (60,113 ) (15,959 ) (76,072 ) (53,405 ) (12,846 ) (66,251 ) (10,805 ) (10,512 ) Settlements — — — (29,390 ) — (29,390 ) — — Foreign currency translation effect — 40,765 40,765 — (65,796 ) (65,796 ) — — Projected Benefit Obligation at December 31 $ 1,088,633 $ 461,426 $ 1,550,059 $ 1,040,498 $ 422,528 $ 1,463,026 $ 271,726 $ 262,275 Change in plans’ assets: Fair value of plans’ assets at beginning of year $ 848,341 $ 328,533 $ 1,176,874 $ 836,514 $ 309,916 $ 1,146,430 $ — $ — Actual return on plans’ assets 120,620 27,199 147,819 59,310 77,711 137,021 — — Employer contribution 35,498 13,080 48,578 35,312 10,763 46,075 — — Benefits paid (60,113 ) (15,959 ) (76,072 ) (53,405 ) (12,846 ) (66,251 ) — — Settlements — — — (29,390 ) — (29,390 ) — — Foreign currency translation effect — 33,026 33,026 — (57,011 ) (57,011 ) — — Fair value of plans’ assets at December 31 $ 944,346 $ 385,879 $ 1,330,225 $ 848,341 $ 328,533 $ 1,176,874 $ — $ — Funded status $ (144,287 ) $ (75,547 ) $ (219,834 ) $ (192,157 ) $ (93,995 ) $ (286,152 ) $ (271,726 ) $ (262,275 ) Amounts recognized in the balance sheets: Accrued liabilities $ (300 ) $ — $ (300 ) $ (300 ) $ — $ (300 ) $ (14,838 ) $ (15,048 ) Postretirement benefits other than pensions — — — — — — $ (256,888 ) $ (247,227 ) Pension benefits $ (143,987 ) $ (75,547 ) $ (219,534 ) $ (191,857 ) $ (93,995 ) $ (285,852 ) — — Included in Accumulated other comprehensive loss at December 31, 2017 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of ($1,038) ( ($779) net of tax) and unrecognized actuarial losses of $489,008 ( $439,666 net of tax). Included in Accumulated other comprehensive loss at December 31, 2016 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of ($1,604) ( ($990) net of tax) and unrecognized actuarial losses of $534,060 ( $472,693 net of tax). The prior service credit and actuarial loss included in accumulated other comprehensive loss that are expected to be recognized in net periodic benefit cost during the fiscal year-ended December 31, 2018 are ($541) and $37,258 , respectively. The accumulated benefit obligation for all defined benefit pension plans was $1,546,705 and $1,459,809 at December 31, 2017 and 2016 , respectively. In 2016, in order to reduce the size and potential future volatility of the Company’s domestic defined benefit pension plan obligations, the Company commenced an offer to approximately 1,200 former employees with deferred vested pension plan benefits. These former employees had the opportunity to make a one-time election to receive a lump-sum distribution of their benefits by the end of the third quarter of 2016. The vested benefit obligation associated with these former employees was approximately $42,000 , equivalent to about four percent of the Company’s benefit obligation for the domestic plans. Cash payments of $22,701 were made from plan assets in September 2016 to the former employees electing the lump-sum distribution. These payments represented a reduction of approximately two percent of the Company’s benefit obligation for the domestic plans. Due to the size of the lump-sum distribution, in accordance with U.S. GAAP, the Company was required to recognize non-cash settlement charges for all 2016 settlements. Based on the lump-sum distributions that were paid through the third quarter, the Company incurred a non-cash settlement charge of $11,462 in the third quarter of 2016. Additionally, based on the lump-sum distributions that were paid in the fourth quarter, the Company incurred a non-cash settlement charge of $800 in the fourth quarter. In total, cash payments of $29,390 were made from plan assets as part of settlement activity in 2016. Weighted average assumptions used to determine benefit obligations at December 31: Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 All plans Discount rate 3.20 % 3.54 % 3.50 % 3.95 % Domestic plans Discount rate 3.50 % 3.90 % 3.50 % 3.95 % Foreign plans Discount rate 2.50 % 2.65 % — — At December 31, 2017 , the weighted average assumed annual rate of increase in the cost of medical benefits was 7.00 percent for 2017 trending linearly to 4.50 percent per annum in 2025. Pension Benefits - Domestic Pension Benefits - International 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 9,860 $ 9,613 $ 11,037 $ — $ 9 $ 9 Interest cost 39,251 41,595 40,202 11,525 14,097 15,853 Expected return on plan assets (54,058 ) (57,438 ) (55,299 ) (11,262 ) (11,322 ) (12,421 ) Amortization of actuarial loss 37,122 38,490 39,514 5,448 5,134 7,222 Effect of settlements — 12,262 — — — — Net periodic benefit cost $ 32,175 $ 44,522 $ 35,454 $ 5,711 $ 7,918 $ 10,663 Other Post Retirement Benefits 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 2,003 $ 2,149 $ 2,513 Interest cost 10,063 10,819 10,320 Amortization of prior service cost (566 ) (566 ) (566 ) Net periodic benefit cost $ 11,500 $ 12,402 $ 12,267 Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Other Postretirement Benefits 2017 2016 2015 2017 2016 2015 All plans Discount rate 3.54 % 4.10 % 3.70 % 3.95 % 4.20 % 3.80 % Expected return on plan assets 5.57 % 6.16 % 6.12 % — % — % — % Domestic plans Discount rate 3.90 % 4.20 % 3.75 % 3.95 % 4.20 % 3.80 % Expected return on plan assets 6.50 % 7.00 % 7.00 % — % — % — % Foreign plans Discount rate 2.65 % 3.84 % 3.59 % — % — % — % Expected return on plan assets 3.29 % 3.99 % 3.84 % — % — % — % The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets at December 31, 2017 and 2016 : 2017 2016 Projected benefit obligation exceeds plan assets Accumulated benefit obligation exceeds plan assets Projected benefit obligation exceeds plan assets Accumulated benefit obligation exceeds plan assets Projected benefit obligation $ 1,550,059 $ 1,550,059 $ 1,463,026 $ 1,463,026 Accumulated benefit obligation 1,546,705 1,546,705 1,459,809 1,459,809 Fair value of plan assets 1,330,225 1,330,225 1,176,874 1,176,874 Assumed health care cost trend rates for other postretirement benefits have a significant effect on the amounts reported. A one-percentage-point change in assumed health care cost trend rates would have the following effects: Percentage Point Increase Decrease Increase (decrease) in total service and interest cost components $ 50 $ (43 ) Increase (decrease) in the other postretirement benefit obligation 1,419 (1,222 ) The table below presents the Company’s weighted average asset allocations for its domestic and U.K. pension plans’ assets at December 31, 2017 and December 31, 2016 by asset category. U.S. Plans U.K. Plan Asset Category 2017 2016 2017 2016 Debt securities 52 % 36 % 68 % 68 % Equity securities 40 63 18 18 Other investments 6 0 13 14 Cash 2 1 1 0 Total 100 % 100 % 100 % 100 % The Company manages the plans' asset allocation relative to the liability profile and funded status of the plans. It is expected that as the plan’s funded status improves, the portfolio will take less risk as to preserve the funded status of the plan framework. The plans follow a glide path whereby a target return-seeking allocation is followed based upon a given funded ratio level. The plans' position with respect to the glide path is monitored, and asset allocation and strategy changes to the plans' portfolio are made as appropriate. The plans' strategy is also monitored in relation to the capital markets, interest rates, and the regulatory environment. The assets of the Company’s pension plan in Germany consist of investments in German insurance contracts. The fair market value of U.S. plan assets was $944,346 and $848,341 at December 31, 2017 and 2016 , respectively. The fair market value of the U.K. plan assets was $383,831 and $326,833 at December 31, 2017 and 2016 , respectively. The fair market value of the German pension plan assets was $2,048 and $1,700 at December 31, 2017 and 2016 , respectively. The table below classifies the assets of the U.S. and U.K. plans using the Fair Value Hierarchy described in Note 8 – Fair Value Measurements. Fair Value Hierarchy Total Level 1 Level 2 Level 3 December 31, 2017 United States plans Cash and cash equivalents $ 18,819 $ 18,819 $ — Collective Trust Funds - Equity 381,696 — 381,696 — Collective Trust Funds - Fixed income 490,955 — 490,955 — Collective Trust Funds - Real Estate 52,876 $ — $ 52,876 $ — $ 944,346 $ 18,819 $ 925,527 $ — United Kingdom plan Cash and cash equivalents $ 1,578 $ 1,578 $ — $ — Equity securities 69,547 69,547 — — Fixed income securities 261,260 261,260 — — Other investments 51,446 — 13,376 38,070 $ 383,831 $ 332,385 $ 13,376 $ 38,070 December 31, 2016 United States plans Cash and cash equivalents $ 8,491 $ 8,491 $ — $ — Equity securities 184,690 184,690 — — Fixed income securities 138,988 138,988 — — Collective Trust Funds - Equity 347,249 — 347,249 — Collective Trust Funds - Fixed income 168,923 — 168,923 — $ 848,341 $ 332,169 $ 516,172 $ — United Kingdom plan Cash and cash equivalents $ 1,078 $ 1,078 $ — $ — Equity securities 60,185 60,185 — — Fixed income securities 220,974 220,974 — — Other investments 44,596 — 10,800 33,796 $ 326,833 $ 282,237 $ 10,800 $ 33,796 Plan assets are measured at fair value. While the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s valuation methodologies used for the plan assets measured at fair value are as follows: Cash and cash equivalents – Cash and cash equivalents include cash on deposit and investments in money market mutual funds that invest mainly in short-term instruments and cash, both of which are valued using a market approach. Equity securities – Common, preferred, and foreign stocks are valued using a market approach at the closing price on their principal exchange and are included in Level 1 of the fair value hierarchy. Fixed income securities – Corporate and foreign bonds are valued using a market approach at the closing price reported on the active market on which the individual securities are traded and are included in Level 1 of the fair value hierarchy. Collective trust funds – Collective trust funds are valued at the net asset value of units held at year end and are included in Level 2 of the fair value hierarchy based on their underlying investment strategy. Equity Funds – Collective trust funds classified as Equity primarily invest in U.S. and non-U.S. securities in both small and large capitalization markets. Fixed Income Funds – Collective trust funds classified as Fixed Income primarily invest in debt securities, U.S. treasury securities, and fixed income securities. Real Estate Funds - Collective trust funds classified as Real Estate Funds are invested in global real estate securities. The fair market values of the Level 3 assets in the U.K. plan are determined by the fund manager using a discounted cash flow methodology. The future cash flows expected to be generated by the assets of the funds and made available to investors are estimated and then discounted back to the valuation date. The discount rate is derived by adding a risk premium to the risk-free interest rate applicable to the country in which the assets are located. The following table details the activity in these investments for the years ended December 31, 2016 and 2017 : U.K. Plan Level 3 Assets Balance at December 31, 2014 $ 25,812 Transfer into level 3 — Disbursements — Change in fair value 2,798 Foreign currency translation effect (1,548 ) Balance at December 31, 2015 27,062 Transfer into level 3 9,489 Disbursements — Change in fair value 3,545 Foreign currency translation effect (6,300 ) Balance at December 31, 2016 33,796 Transfer into level 3 — Disbursements — Change in fair value 969 Foreign currency translation effect 3,305 Balance at December 31, 2017 $ 38,070 The Company determines the annual expected rates of return on pension assets by first analyzing the composition of its asset portfolio. Historical rates of return are applied to the portfolio. These computed rates of return are reviewed by the Company’s investment advisors and actuaries. Industry comparables and other outside guidance are also considered in the annual selection of the expected rates of return on pension assets. During 2017 , the Company contributed $48,578 to its domestic and foreign pension plans, and during 2018 , the Company expects to contribute between $45,000 and $55,000 to its domestic and foreign pension plans. The Company estimates its benefit payments for its domestic and foreign pension plans and other postretirement benefit plans during the next ten years to be as follows: Pension Benefits Other Postretirement Benefits 2018 $ 89,433 $ 14,838 2019 84,648 15,261 2020 86,980 15,919 2021 87,027 16,225 2022 88,491 16,462 2022 through 2026 446,996 82,126 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities at December 31 were as follows: 2017 2016 Product liability $ 85,192 $ 118,941 Long-term income taxes payable 29,463 — Stock-based liabilities 14,365 20,336 Other 15,197 17,647 Other long-term liabilities $ 144,217 $ 156,924 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock | Common Stock 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 “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 ASR program, based on the closing price on August 6, 2014. Under the terms of the 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 ASR program and as part of other aspects of the ASR Counterparty’s business. On February 13, 2015, the Company completed the ASR program. Based on the terms of the ASR program, the total number of shares repurchased under the 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 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 ASR program, of $31.49 over the duration of the ASR program. Subsequent to the completion of the ASR program, the Board of Directors has authorized new share repurchase programs. The following table summarizes the Company’s Board authorized share repurchase programs and related information for the years ended December 31, 2017, 2016 and 2015: Program (1) Date Authorized by Board of Directors Expiration Date Amount Authorized (excluding commissions) Amount Spent as of December 31, 2017 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2019 $ 300,000 $ 76,724 Active 2016 Repurchase Program February 19, 2016 December 31, 2017 200,000 104,366 Superseded (2) 2015 Repurchase Program February 20, 2015 December 31, 2016 200,000 126,346 Superseded (3) ASR program August 6, 2014 February 13, 2015 200,000 200,000 Completed (1) The repurchase programs listed above do not obligate the Company to acquire any specific number of shares and can be suspended or discontinued at any time without notice. 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. All repurchases under the programs listed above have been made using cash resources. (2) 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. (3) 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. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the years ended December 31, 2017, 2016 and 2015: Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2017 share repurchase activity: 2017 Repurchase Program 2,136,237 $ 35.95 $ 76,788 2016 Repurchase Program 383,690 36.70 14,080 Total share repurchases 2,519,927 36.06 $ 90,868 2016 share repurchase activity: 2016 Repurchase Program 2,630,433 $ 34.36 $ 90,377 2015 Repurchase Program 497,094 35.45 17,622 Total share repurchases 3,127,527 34.53 $ 107,999 2015 share repurchase activity: 2015 Repurchase Program 2,751,454 39.55 $ 108,821 ASR program 784,694 (1) (1) Total share repurchases 3,536,148 108,821 (1) On February 13, 2015, the Company completed the ASR program. Based on the terms of the ASR program, the total number of shares repurchased under the 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 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 ASR program, of $31.49 over the duration of the ASR program. Since August 2014 through December 31, 2017 , the Company has repurchased 14,750,756 shares of the Company’s common stock at an average cost of $34.42 per share. Reserved Shares There were 7,954,701 common shares reserved for grants under compensation plans at December 31, 2017 . The Company eliminated the option for plan participants in the Company’s Spectrum Investment Savings Plan and Pre-Tax Savings plans to purchase additional shares of the Company’s common stock in March 2014. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 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: Stock-Based Compensation 2017 2016 2015 Stock options $ 14 $ 506 $ 3,986 Restricted stock units 3,302 5,595 4,879 Performance stock units 693 7,469 6,054 Total stock-based compensation $ 4,009 $ 13,570 $ 14,919 Stock Options The 2006, 2010 and 2014 incentive compensation plans provide for granting options to key employees to purchase common shares at prices not less than market at the date of grant. Options under these plans may have terms of up to ten years becoming exercisable in whole or in consecutive installments, cumulative or otherwise. The plans allow the granting of nonqualified stock options which are not intended to qualify for the tax treatment applicable to incentive stock options under provisions of the Internal Revenue Code. In February 2012, executives participating in the 2012 – 2014 Long-Term Incentive Plan were granted 589,934 stock options which vested one-third each year through February 2015. In February 2013, executives participating in the 2013-2015 Long-Term Incentive Plan were granted 330,639 stock options, which vested one-third each year through February 2016. In February 2014, executives participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options, which will vest one-third each year through February 2017. No stock options were granted in 2015, 2016 or 2017 to executives participating in the Long-Term Incentive Plan. Outstanding options do not contain any performance-based criteria. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. Summarized information for the plans follows: Number of Shares Weighted Average Exercise Price (per share) Aggregate Intrinsic Value (thousands) Outstanding at December 31, 2016 495,704 $ 21.24 Granted — — Exercised (210,125 ) 20.10 Expired — — Canceled — — Outstanding at December 31, 2017 285,579 22.08 $ 3,790 Exercisable at December 31, 2017 285,579 22.08 3,790 Year ended December 31, 2017 2016 2015 Weighted average grant-date fair value of options granted (per share) $ — $ — $ — Aggregate intrinsic value of options exercised (thousands) $ 4,194 $ 2,640 $ 20,100 Weighted average grant-date fair value of shares vested (thousands) $ 1,400 $ 2,633 $ 4,602 The weighted average remaining contractual life of options outstanding at December 31, 2017 is 4.8 years . All outstanding stock options are exercisable. Segregated disclosure of options outstanding at December 31, 2017 was as follows: Range of Exercise Prices Less than or equal to $15.63 Greater than $15.63 Options outstanding 47,501 238,078 Weighted average exercise price $ 12.86 $ 23.72 Remaining contractual life 3.3 5.1 Options exercisable 47,501 238,078 Weighted average exercise price $ 12.44 $ 24.00 At December 31, 2017 , the Company had fully amortized all expense related to its stock option awards. Restricted Stock Units Under the 1998, 2001, and 2014 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. The restricted stock units granted in 2015, 2016 and 2017 have vesting periods of three to four years . 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. 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 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. Compensation expense 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 following table provides details of the nonvested restricted stock units for 2017 : Number of Restricted Units Weighted Average Grant-Date Fair Value (per share) Nonvested at December 31, 2016 240,574 $ 35.75 Granted 103,207 38.33 Vested (157,344 ) 35.76 Canceled (8,479 ) 37.76 Accrued dividend equivalents 2,430 36.70 Nonvested at December 31, 2017 180,388 $ 37.14 Year ended December 31, 2017 2016 2015 Weighted average grant-date fair value of restricted shares granted (per share) $ 38.33 $ 36.02 $ 36.35 Weighted average grant-date fair value of shares vested (thousands) $ 5,627 $ 3,195 $ 2,629 The number of vested restricted stock units at December 31, 2017 and 2016 was 2,499 and 93,440 , respectively. At December 31, 2017 , the Company has $2,021 of unvested compensation cost related to restricted stock units and this cost will be recognized as expense over a weighted average period of 24 months . Performance Stock Units Compensation related to the performance stock units is determined based on the fair value of the Company’s stock on the date of grant combined with performance metrics. During 2013, executives participating in the Company’s Long-Term Incentive Plan earned 33,405 performance stock units based on the Company’s financial performance in 2013. Of these units, 9,821 vested in 2013, 13,373 vested in 2014 and 8,701 vested in 2015. During 2014, executives participating in the Company’s Long-Term Incentive Plan earned 123,788 performance stock units based on the Company’s financial performance in 2014. Of these units, 49,248 vested in 2014, 32,074 vested in 2015 and 38,091 vested in 2016. During 2015, executives participating in the Company’s Long-Term Incentive Plan earned 231,543 performance stock units based on the Company’s financial performance in 2015. Of these units, 69,912 vested in 2015, 83,371 vested in 2016 and 66,909 vested in 2017. During 2016, executives participating in the Company’s Long-Term Incentive Plan earned 179,865 performance stock units based on the Company’s financial performance in 2016. Of these units, 55,570 vested in 2016, 45,435 vested in 2017 and 48,459 will vest in 2018, respectively. During 2017, executives participating in the Company’s Long-Term Incentive Plan did not earn any performance stock units based on the Company’s financial performance in 2017. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. The following table provides details of the nonvested performance stock units earned under the Company’s Long-Term Incentive Plan: Number of Performance Units Weighted Average Grant- Date Fair Value (per share) Nonvested at December 31, 2016 163,967 $ 36.77 Earned — — Vested (114,569 ) 36.77 Canceled (2,309 ) 36.77 Accrued dividend equivalents 1,962 36.77 Nonvested at December 31, 2017 49,051 $ 36.76 The weighted average fair value of performance stock units granted in 2017 , 2016 and 2015 was $38.23 , $36.76 and $36.62 , respectively. At December 31, 2017 , the Company had $221 of unvested compensation cost related to performance stock units and this cost will be recognized as expense over a weighted average period of 12 months . The Company’s nonvested 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 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 or performance stock units. Accordingly, such units do not represent participating securities. At December 31, 2017 , the company had 2,332,604 shares available for future issuance under equity compensation plans. The Company recognized $274 and $4,323 of excess tax benefits on stock based compensation transactions as a financing cash inflow for the years ended December 31, 2016 and 2015 , respectively. In 2017, $1,877 of excess tax benefits was recognized as a discrete item in the provision for income taxes and included as an operating activity in the Consolidated Statement of Cash Flows as a result of the adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” Refer to the "Recent Accounting Pronouncements" section in Footnote 1 for details regarding the adoption of ASU 2016-09. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component The balances of each component of accumulated other comprehensive loss in the accompanying Consolidated Statements of Equity were as follows: Cumulative Derivative Post- Total Ending balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (53,381 ) (2,471 ) (39,689 ) (95,541 ) Foreign currency translation effect — — 13,152 13,152 Income tax effect — 941 10,770 11,711 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 100 — 100 Amortization of prior service credit — — (566 ) (566 ) Amortization of actuarial losses — — 43,624 43,624 Pension settlement charges — — 12,262 12,262 Income tax effect — (57 ) (20,069 ) (20,126 ) Other comprehensive (loss) income (53,381 ) (1,487 ) 19,484 (35,384 ) Ending balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive (loss) income before reclassifications 35,475 (6,092 ) 13,385 42,768 Foreign currency translation effect — — (7,855 ) (7,855 ) Income tax effect — 1,823 191 2,014 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 3,619 — 3,619 Amortization of prior service credit — — (566 ) (566 ) Amortization of actuarial losses — — 42,570 42,570 Income tax effect — (968 ) (14,909 ) (15,877 ) Other comprehensive (loss) income 35,475 (1,618 ) 32,816 66,673 Ending balance, December 31, 2017 (39,940 ) 349 (438,887 ) (478,478 ) |
Comprehensive Income Attributab
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | Comprehensive Income Attributable to Noncontrolling Shareholders’ Interests 2017 2016 2015 Net income attributable to noncontrolling shareholders’ interests $ 1,345 $ 2,913 $ 3,038 Other comprehensive loss: Currency translation adjustments 3,375 (4,573 ) (4,227 ) Comprehensive income (loss) attributable to noncontrolling shareholders’ interests $ 4,720 $ (1,660 ) $ (1,189 ) |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments | Lease Commitments The Company rents certain distribution and other facilities and equipment under long-term leases expiring at various dates. The total rental expense for the Company, including these long-term leases and all other rentals, was $53,532 , $41,397 and $39,290 for 2017 , 2016 and 2015 , respectively. Future minimum payments for all non-cancelable operating leases through the end of their terms, which in aggregate total $132,744 , are listed below. Certain of these leases contain provisions for optional renewal at the end of the lease terms. 2018 $ 26,895 2019 24,664 2020 22,218 2021 14,791 2022 10,863 Thereafter 33,313 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities Litigation Product Liability Litigation 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. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. 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 probable 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. The Company periodically reviews such estimates and any adjustments for changes in reserves are recorded in the period in which the change in estimate occurs. 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. While the Company believes its reserves are reasonably stated, 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 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 regularly reviews the probable outcome of outstanding legal proceedings and 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. As part of its regular review, the Company monitors trends that may affect its ultimate liability and analyzes the developments and variables likely to affect pending and anticipated claims against the Company and the reserves for such claims. The Company utilizes claims experience, as well as trends and developments in the litigation climate, in estimating its required accrual. Based on the Company’s review completed in 2017, coupled with normal activity, including the addition of another year of self-insured incidents, settlements and changes in the amount of reserves, the Company reduced its accrual from $176,995 at December 31, 2016 to $129,892 at December 31, 2017. This change in estimate in 2017 is primarily the result of recent favorable claims experience and trends. The addition of another year of self-insured incidents accounted for an increase of $48,039 in the Company's product liability reserve in 2017. Settlements, changes in the amount of reserves for cases where sufficient information is known to estimate a liability, and changes in assumptions decreased the liability by $38,938 . During 2017 the Company paid $55,671 and during 2016, the Company paid $31,697 to resolve cases and claims. The Company’s product liability reserve balance at December 31, 2017 totaled $129,892 (the current portion of $44,700 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the 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 liability 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. Product liability expense totaled $25,970 , $65,448 and $78,800 in 2017, 2016 and 2015. Product liability expenses are included in Cost of products sold in the Consolidated Statements of Income. Other Litigation In addition to the proceedings described above, the Company is involved in various other legal proceedings arising in the ordinary course of business. The Company regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for these proceedings at the time a loss is probable and the amount of the loss can be estimated. Although the outcome of these pending proceedings cannot be predicted with certainty and an estimate of any such loss cannot be made, the Company believes that any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. Employment Contracts and Agreements No executives have employment agreements as of December 31, 2017. The Executive Officers are covered by the Cooper Tire & Rubber Company Change in Control Severance Pay Plan. At December 31, 2017 , approximately 40% of the Company’s workforce was represented by collective bargaining units. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has four segments under ASC 280: • 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, COOCSA, which supplies passenger car tires to the North American, 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 from GRT and through an off-take agreement that was entered with PCT, the Company's former joint venture. In December 2017, the Company signed an off-take agreement with Sailun, effective from January 1, 2018 through December 31, 2020, as an additional source of medium truck tires. 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 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 include manufacturing operations in the 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. 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 of China-based GRT, a joint venture manufacturing facility located in the PRC. GRT serves 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 began procuring certain medium truck and passenger car tires under off-take agreements with PCT through mid-2018. The medium truck tire agreement has been extended and now expires in mid-2019. In December 2017, the Company signed an off-take agreement with Sailun, effective from January 1, 2018 through December 31, 2020, as an additional source of medium truck tires. The segment sells a majority of its tires in the replacement market, with a growing portion also sold to OEMs. The following customer of the Americas Tire Operations segment contributed ten percent or more of the Company’s total consolidated net sales in 2017 , 2016 and 2015 . Net sales and percentage of consolidated Company sales for this customer in 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Customer Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales TBC/Treadways $ 304,840 11 % $ 414,556 14 % $ 485,257 16 % The accounting policies of the reportable segments are consistent with those described in the Significant Accounting Policies note to the consolidated financial statements. Corporate administrative expenses are allocated to segments based principally on assets, employees and sales. The following table details segment financial information: 2017 2016 2015 Net sales: Americas Tire External customers $ 2,376,808 $ 2,549,743 $ 2,627,619 Intercompany 39,970 50,580 57,135 2,416,778 2,600,323 2,684,754 International Tire External customers 477,848 375,126 345,282 Intercompany 141,021 88,877 106,597 618,869 464,003 451,879 Eliminations (180,991 ) (139,457 ) (163,732 ) Consolidated net sales 2,854,656 2,924,869 2,972,901 Operating profit (loss): Americas Tire 324,693 439,941 422,929 International Tire 9,457 5,998 (19,133 ) Unallocated corporate charges (60,599 ) (60,308 ) (52,342 ) Eliminations (1,827 ) (1,244 ) 3,026 Consolidated operating profit 271,724 384,387 354,480 Interest expense (32,048 ) (26,604 ) (23,820 ) Interest income 7,362 4,378 2,211 Other non-operating (expense) income (3,113 ) 4,932 1,157 Income before income taxes 243,925 367,093 334,028 Depreciation and amortization expense Americas Tire 91,324 85,842 92,377 International Tire 33,303 30,470 28,577 Corporate 15,601 13,945 454 Consolidated depreciation and amortization expense 140,228 130,257 121,408 Segment assets Americas Tire 1,462,757 1,438,802 1,386,361 International Tire 690,572 547,178 414,051 Corporate and other 454,406 633,415 635,764 Consolidated assets 2,607,735 2,619,395 2,436,176 Expenditures for long-lived assets Americas Tire 109,175 112,975 145,813 International Tire 89,008 60,359 33,839 Corporate (997 ) 2,103 2,892 Consolidated expenditures for long-lived assets 197,186 175,437 182,544 Geographic information for revenues, based on country of origin, and long-lived assets follows: 2017 2016 2015 Net sales United States $ 2,240,882 $ 2,423,932 $ 2,518,089 PRC 263,540 166,289 126,674 Rest of world 350,234 334,648 328,138 Consolidated net sales 2,854,656 2,924,869 2,972,901 Long-lived assets United States 568,215 547,599 537,173 PRC 219,289 157,858 105,237 Rest of world 180,488 158,770 152,788 Consolidated long-lived assets 967,992 864,227 795,198 |
Selected Quarterly Data
Selected Quarterly Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | SELECTED QUARTERLY DATA (Unaudited) (Dollar amounts in thousands except per share amounts.) 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 643,025 $ 720,753 $ 733,843 $ 757,035 Gross profit 109,918 130,840 164,727 110,994 Net income (loss) attributable to Cooper Tire & Rubber Company 30,561 45,310 61,687 (42,158 ) Earnings (loss) per share: Basic 0.58 0.86 1.19 (0.82 ) Diluted 0.57 0.85 1.18 (0.82 ) Net sales: Americas Tire $ 531,360 $ 615,356 $ 625,423 $ 644,639 International Tire 141,964 151,370 163,345 162,189 Eliminations (30,299 ) (45,973 ) (54,925 ) (49,793 ) Consolidated net sales $ 643,025 $ 720,753 $ 733,843 $ 757,035 Operating profit (loss): Americas Tire $ 63,193 $ 83,293 $ 117,465 $ 60,742 International Tire 1,653 1,274 591 5,938 Unallocated corporate charges (15,824 ) (9,561 ) (15,792 ) (19,422 ) Eliminations (352 ) (174 ) (887 ) (414 ) Consolidated operating profit 48,670 74,832 101,377 46,844 Interest expense (7,827 ) (8,210 ) (7,591 ) (8,419 ) Interest income 1,802 1,755 1,776 2,029 Other non-operating (expense) income (235 ) (255 ) (978 ) (1,645 ) Income before income taxes $ 42,410 $ 68,122 $ 94,584 $ 38,809 Net income (loss) $ 29,381 $ 45,824 $ 62,660 $ (41,120 ) Net income (loss) attributable to Cooper Tire & Rubber Company $ 30,561 $ 45,310 $ 61,687 $ (42,158 ) (a) Basic and diluted earnings (loss) per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 649,775 $ 740,294 $ 750,913 $ 783,887 Gross profit 150,429 179,669 152,952 169,300 Net income attributable to Cooper Tire & Rubber Company 59,005 70,749 49,303 69,324 Earnings per share: Basic 1.06 1.29 0.91 1.30 Diluted 1.05 1.27 0.90 1.28 Net sales: Americas Tire $ 579,338 $ 654,721 $ 672,641 $ 693,624 International Tire 103,226 123,678 112,789 124,310 Eliminations (32,789 ) (38,105 ) (34,517 ) (34,047 ) Consolidated net sales $ 649,775 $ 740,294 $ 750,913 $ 783,887 Operating profit (loss): Americas Tire $ 106,052 $ 116,093 $ 101,522 $ 116,273 International Tire (1,772 ) 3,152 3,265 1,353 Unallocated corporate charges (13,019 ) (8,730 ) (26,442 ) (12,118 ) Eliminations (157 ) (599 ) (117 ) (370 ) Consolidated operating profit 91,104 109,916 78,228 105,138 Interest expense (6,636 ) (6,286 ) (6,795 ) (6,887 ) Interest income 940 948 1,018 1,471 Other non-operating income 1,462 1,427 1,785 260 Income before income taxes $ 86,870 $ 106,005 $ 74,236 $ 99,982 Net income $ 58,772 $ 71,351 $ 50,479 $ 70,692 Net income attributable to Cooper Tire & Rubber Company $ 59,005 $ 70,749 $ 49,303 $ 69,324 (a) Basic and diluted earnings per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2017 , 2016 and 2015 (Dollar amounts in thousands) Additions Balance at Beginning of Year Charged to Income Charged to Equity Acquisition of business Deductions Balance at End of Year Year Ended December 31, 2017 Allowance for doubtful accounts $ 7,290 $ 1,799 $ — $ — $ 1,519 (a) $ 7,570 Tax valuation allowance $ 20,228 $ 20,536 $ (2,828 ) $ (1,057 ) $ 6,777 (b) $ 30,102 Year Ended December 31, 2016 Allowance for doubtful accounts $ 7,533 $ 1,693 $ — $ 3 $ 1,939 (a) $ 7,290 Tax valuation allowance $ 15,103 $ 291 $ — $ 7,484 $ 2,650 (b) $ 20,228 Year Ended December 31, 2015 Allowance for doubtful accounts $ 8,792 $ 1,178 $ — $ — $ 2,437 (a) $ 7,533 Tax valuation allowance $ 33,303 $ 680 $ — $ — $ 18,880 (b) $ 15,103 (a) Accounts written off during the year, net of recoveries of accounts previously written off. (b) Net decrease in tax valuation allowance is primarily a result of net changes in cumulative book/tax timing differences and changes in judgment about the realizability of deferred tax assets. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. All intercompany accounts and transactions have been eliminated. 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 subsidiaries of 50 percent or less but greater than 20 -percent are accounted for using the equity method, and investments in subsidiaries 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. |
Cash and cash equivalents | The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company’s objectives related to the investment of cash not required for operations is to preserve capital, meet the Company’s liquidity needs and earn a return consistent with these guidelines and market conditions. Investments deemed eligible for the investment of the Company’s cash include: 1) U.S. Treasury securities and general obligations fully guaranteed with respect to principal and interest by the government; 2) obligations of U.S. government agencies; 3) commercial paper or other corporate notes of prime quality purchased directly from the issuer or through recognized money market dealers; 4) time deposits, certificates of deposit or bankers’ acceptances of banks rated “A-” by Standard & Poor’s or “A3” by Moody’s; 5) collateralized mortgage obligations rated “AAA” by Standard & Poor’s and “Aaa” by Moody’s; 6) tax-exempt and taxable obligations of state and local governments of prime quality; and 7) mutual funds or outside managed portfolios that invest in the above investments. The Company had cash and cash equivalents totaling $371,684 and $504,423 at December 31, 2017 and December 31, 2016 , respectively. The majority of the cash and cash equivalents were invested in eligible financial instruments in excess of amounts insured by the Federal Deposit Insurance Corporation and, therefore, subject to credit risk. Management believes that the probability of losses related to credit risk on investments classified as cash and cash equivalents is remote. |
Notes receivable | The Company has received bank secured notes from certain of its customers in the PRC to settle trade accounts receivable. These notes generally have maturities of six months or less and are redeemable at the bank of issuance. The Company evaluates the credit risk of the issuing bank prior to accepting a bank secured note from a customer. |
Accounts receivable | The Company records trade accounts receivable when revenue is recorded in accordance with its revenue recognition policy and relieves accounts receivable when payments are received from customers. |
Allowance for doubtful accounts | The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts throughout the year. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting specific accounts and management’s evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part, and are written off at that time through a charge against the allowance for doubtful accounts. |
Inventories | In 2017, the Company adopted Accounting Standard Update (ASU) 2015-11, "Inventory-Simplifying the Measurement of Inventory," which changed how inventory is valued. Inventories are valued at cost, which is not in excess of the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory costs have been determined by the LIFO method for substantially all U.S. inventories. Costs of other inventories have been determined by the FIFO method. Inventories include direct material, direct labor, and applicable manufacturing and engineering overhead costs. |
Long-lived assets | Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives: Land improvements 10 to 20 years Buildings 10 to 40 years Machinery and equipment 5 to 14 years Molds, cores and rings 2 to 10 years The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized over the estimated useful life of the software, which ranges from three years to nine years . Intangibles with definite lives include trademarks, technology and intellectual property which are amortized over their remaining useful lives, which range from one to three years . Land use rights are amortized over their remaining useful lives, which range from 38 years to 45 years . The Company evaluates the recoverability of long-lived assets based on undiscounted projected cash flows, excluding interest and taxes, when any impairment is indicated. Goodwill and indefinite-lived intangibles are assessed for potential impairment at least annually or when events or circumstances indicate impairment may have occurred. |
Earnings per common share | Net income per share is computed on the basis of the weighted average number of common shares outstanding each year. Diluted earnings per share includes the dilutive effect of stock options and other stock units. |
Derivative financial instruments | 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 Company offsets fair value amounts recognized on the Consolidated Balance Sheets for derivative financial instruments executed with the same counter-party. The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated net asset and liability positions. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Consolidated Statements of Income in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. 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 unrealized gains and losses on such forward contracts are recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company assesses hedge effectiveness quarterly. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. The Company also performs regression analysis comparing the change in value of the hedging contracts versus the underlying foreign currency sales and purchases, which confirms a high correlation and hedge effectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Consolidated Statements of Income in the period in which the ineffectiveness occurs. The Company is exposed to price risk related to forecasted purchases of certain commodities that are used as raw materials, principally natural rubber. Accordingly, it uses commodity contracts with forward pricing for a portion its production requirements. These contracts generally qualify for the normal purchase exception under guidance for derivative instruments and hedging activities, and therefore are not subject to its provisions. |
Income taxes | Income tax expense is based on reported earnings or losses before income taxes in accordance with the tax rules and regulations of the specific legal entities within the various specific taxing jurisdictions where the Company’s income is earned. Taxable income may differ from earnings before income taxes for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, a provision for deferred income taxes is made using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset may not be realized. Deferred income taxes generally are not recorded on the majority of undistributed earnings of international subsidiaries based on the Company’s intention that these earnings will continue to be reinvested. |
Product liability | 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 products 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. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs. 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 probable 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. The Company periodically reviews such estimates and any adjustments for changes in reserves are recorded in the period in which the change in estimate occurs. 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. While the Company believes its reserves are reasonably stated, 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 product liability expense reported by the Company includes amortization of insurance premium costs, adjustments to liability 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. |
Advertising expense | Expenses incurred for advertising include production and media and are generally expensed when incurred. Costs associated with dealer-earned cooperative advertising are recorded as a reduction of the revenue component of Net sales at the time of sale. |
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 fair value on the date of grant and is amortized to expense over the vesting period. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. See Note 12 – Stock-Based Compensation for additional information. |
Warranties | Warranties are provided on the sale of certain of the Company’s products, and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. |
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of: (1) revenues and expenses during the reporting period; and (2) assets and liabilities, as well as disclosure of contingent assets and liabilities, at the date of the consolidated financial statements. Actual results could differ from those estimates. |
Revenue recognition | Revenues are recognized when title to the product passes to customers. Shipping and handling costs are recorded in cost of products sold. Allowance programs such as volume rebates and cash discounts are recorded at the time of sale as a reduction to revenue based on anticipated accrual rates for the year. |
Research and development | Costs are charged to cost of products sold as incurred |
Related Party Transactions | The Company’s COOCSA joint venture paid $40,279 , $33,774 and $26,598 in 2017 , 2016 and 2015 , respectively, to an employment services company in Mexico owned by members of the joint venture workforce. COOCSA also recorded sales of $8,209 , $6,335 and $6,555 to the noncontrolling shareholder in 2017 , 2016 and 2015 , respectively. |
Recent 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 ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s 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 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, $1,877 of excess tax benefits from stock-based compensation was recognized as discrete items in the provision for income taxes for the year ended December 31 , 2017 . Additionally, the cash flow benefit of the excess tax benefits is included as an operating activity in the Consolidated Statement of Cash Flows for the year ended December 31, 2017. In accordance with the standard, the prior year Consolidated Statement of Income and 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 Consolidated Statements of Cash Flows on a retrospective basis. Previously, this activity was included in operating activities. The impact of this change in the years ended 2017, 2016 and 2015 was $7,002 , $2,948 and $3,993 , respectively, reported as Payments of employee taxes withheld from share-based awards in the Consolidated statement of cash flows. Finally, as permitted by the standard, the Company 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 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. The Company has also 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. In addition, the Company has drafted its accounting policy for the new standard based on a detailed review of its business and contracts. While the Company continues to assess all potential impacts of 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 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. In 2017, the FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients, and other improvements to ASU 2016-02. The Company is currently evaluating the impact the new standard, including optional practical expedients, and assessing our existing lease portfolio in order to assess the impact on its 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 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. As reported in Note 9 - Pensions and Postretirement Benefits Other than Pensions, the 2017, 2016 and 2015 net periodic benefit costs were $49,386 , $64,842 and $58,384 , respectively. The service cost component of these amounts in 2017, 2016 and 2015, which will remain as a component of operating profit, were $11,863 , $11,771 and $13,559 , respectively. Net income will not change as a result of the adoption of this standard. The Company adopted the standard in the first quarter of 2018. Derivatives and Hedging In August 2017, the FASB issued ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. Adoption of the new standard 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 consolidated financial statements. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Expected Useful Lives of Property, Plant and Equipment Recorded at Cost and Depreciated or Amortized | Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives: Land improvements 10 to 20 years Buildings 10 to 40 years Machinery and equipment 5 to 14 years Molds, cores and rings 2 to 10 years |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: (Number of shares and dollar amounts in thousands except per share amounts) 2017 2016 2015 Numerator Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders $ 95,400 $ 248,381 $ 212,766 Denominator Denominator for basic earnings per share - weighted average shares outstanding 52,206 54,480 57,012 Effect of dilutive securities - stock options and other stock units 467 610 611 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 52,673 55,090 57,623 Earnings per share: Basic $ 1.83 $ 4.56 $ 3.73 Diluted $ 1.81 $ 4.51 $ 3.69 |
Summary of Activity in Product Warranty Liabilities | The following table summarizes the activity in the Company’s product warranty liabilities which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Consolidated Balance Sheets: 2017 2016 2015 Reserve at beginning of year 10,634 12,339 14,005 Additions 10,310 8,349 9,122 Payments (8,851 ) (10,054 ) (10,788 ) Reserve at December 31 12,093 10,634 12,339 |
GRT Acquisition (Tables)
GRT Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocations of the fair values of the assets acquired and liabilities assumed, as adjusted. The originally reported amounts were provisional and were 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. Subsequent to December 1, 2016, the valuation was completed and adjustments were made to the preliminary allocations of the fair value of the assets acquired and liabilities assumed from the GRT acquisition. As Originally Assets Reported Adjustments As Adjusted Cash $ 8,091 $ — $ 8,091 Accounts receivable 2,844 — $ 2,844 Notes receivable 3,050 — $ 3,050 Inventory 7,983 485 $ 8,468 Other current assets 981 — $ 981 Property, plant & equipment 46,712 829 $ 47,541 Intangible assets 7,412 16 $ 7,428 Other long-term assets 289 — $ 289 Goodwill 33,861 (611 ) $ 33,250 Liabilities Accounts payable (61,570 ) (719 ) $ (62,289 ) Notes payable (10,122 ) — $ (10,122 ) Accrued liabilities (2,866 ) — $ (2,866 ) Long-term debt (3,383 ) — $ (3,383 ) Other long-term liabilities (940 ) — $ (940 ) 32,342 — 32,342 Noncontrolling shareholder interest (18,323 ) — (18,323 ) Cooper Tire & Rubber Company consideration $ 14,019 $ — $ 14,019 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Accumulated Amortization | The following table presents intangible assets and accumulated amortization balances as of December 31, 2017 and 2016 : December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived: Capitalized software costs 192,474 (81,908 ) 110,566 185,539 (65,719 ) 119,820 Land use rights 12,850 (1,230 ) 11,620 10,386 (1,642 ) 8,744 Trademarks and tradenames 8,800 (7,547 ) 1,253 8,800 (7,094 ) 1,706 Other 2,668 (2,668 ) — 3,530 (2,866 ) 664 216,792 (93,353 ) 123,439 208,255 (77,321 ) 130,934 Indefinite-lived: Trademarks 9,817 — 9,817 9,817 — 9,817 $ 226,609 $ (93,353 ) $ 133,256 $ 218,072 $ (77,321 ) $ 140,751 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities at December 31 were as follows: 2017 2016 Payroll and employee benefits, excluding postemployment benefits $ 59,593 $ 67,274 Product liability 44,700 58,054 Other postretirement benefits 14,838 15,048 Advertising 17,476 14,281 Taxes other than income taxes 9,770 11,414 Warranty 8,304 5,699 Other 25,795 12,034 Accrued liabilities $ 180,476 $ 183,804 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations before Income Taxes and Noncontrolling Shareholders' Interests | Components of income from continuing operations before income taxes and noncontrolling shareholders’ interests were as follows: 2017 2016 2015 United States $ 211,225 $ 319,156 $ 314,263 Foreign 32,700 47,937 19,765 Total $ 243,925 $ 367,093 $ 334,028 |
Provision (Benefit) for Income Tax for Continuing Operations | The provision (benefit) for income tax for continuing operations consisted of the following: 2017 2016 2015 Current: Federal $ 69,463 $ 100,714 $ 67,405 State and local 6,304 12,445 12,837 Foreign 9,842 14,990 12,948 85,609 128,149 93,190 Deferred: Federal 48,866 (6,730 ) 23,466 State and local 4,915 (763 ) 5,157 Foreign 7,790 (4,857 ) (3,589 ) 61,571 (12,350 ) 25,034 $ 147,180 $ 115,799 $ 118,224 |
Reconciliation of Income Tax Expense (Benefit) for Continuing Operations | A reconciliation of income tax expense (benefit) for continuing operations to the tax based on the U.S. statutory rate is as follows: 2017 2016 2015 Income tax provision at 35% $ 85,375 $ 128,483 $ 116,910 Expiration of capital loss carryforward — — 18,376 Valuation allowance - China (6,671 ) (2,441 ) (18,200 ) Valuation allowance - U.K. 18,915 — — State and local income tax, net of federal income tax effect 7,867 8,693 12,321 Domestic manufacturing deduction (2,940 ) (9,870 ) (6,580 ) U.S. tax credits (2,474 ) (3,013 ) (3,186 ) Tax law or rate change excluding U.S. tax act — 794 2,383 U.S. tax act - transition tax 35,378 — — U.S. tax act - remeasurement of deferred taxes 20,413 — — Difference in effective tax rates of international operations (4,667 ) (4,900 ) (932 ) Other - net (4,016 ) (1,947 ) (2,868 ) Provision for income taxes $ 147,180 $ 115,799 $ 118,224 |
Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at December 31 were as follows: 2017 2016 Deferred tax assets: Postretirement and other employee benefits $ 116,321 $ 191,099 Product liability 32,668 67,528 Net operating loss, capital loss, and tax credit carryforwards 14,174 15,274 All other items 33,423 48,718 Total deferred tax assets 196,586 322,619 Deferred tax liabilities: Property, plant and equipment (101,720 ) (160,075 ) All other items (6,099 ) (9,685 ) Total deferred tax liabilities (107,819 ) (169,760 ) 88,767 152,859 Valuation allowances (30,102 ) (20,228 ) Net deferred tax asset $ 58,665 $ 132,631 |
Unrecognized Tax Benefits for Permanent and Temporary Book/Tax Differences for Continuing Operations, Exclusive of Interest | Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is reasonably 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. Unrecognized Tax Benefits Balance at December 31, 2014 $ 8,314 Settlements for tax positions of prior years (367 ) Additions for tax positions of prior years 1,151 Reductions for tax positions of prior years (942 ) Statute lapses (2,313 ) Balance at December 31, 2015 5,843 Settlements for tax positions of prior years (518 ) Additions for tax positions of the current year 714 Additions for tax positions of prior years 1,518 Statute lapses (4,360 ) Balance at December 31, 2016 3,197 Settlements for tax positions of prior years (139 ) Additions for tax positions of the current year 47 Additions for tax positions of prior years 438 Statute lapses (1,260 ) Balance at December 31, 2017 $ 2,283 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt | The following table summarizes the long-term debt of the Company at December 31, 2017 and 2016 . There were no secured notes outstanding as of December 31, 2017 . Except for the capitalized leases and other, the long-term debt is due in an aggregate principal payment on the due date: 2017 2016 Parent company 8% unsecured notes due December 2019 $ 173,578 $ 173,578 7.625% unsecured notes due March 2027 116,880 116,880 Capitalized leases and other 7,684 9,883 298,142 300,341 Less: unamortized debt issuance costs 742 826 297,400 299,515 Less: current maturities 1,413 2,421 $ 295,987 $ 297,094 |
Schedule of Payments on Long Term Debt | Over the next five years, the Company has payments related to the above debt of: Future Debt Payments 2018 $ 1,413 2019 174,786 2020 — 2021 5,063 2022 through 2026 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets | 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 Consolidated Balance Sheets: Year Ended December 31, Assets/(Liabilities) 2017 2016 Designated as hedging instruments: Gross amounts recognized $ (2,808 ) $ 1,029 Gross amounts offset 168 — Net amounts (2,640 ) 1,029 Not designated as hedging instruments: Gross amounts recognized (684 ) 109 Gross amounts offset 97 (76 ) Net amounts (587 ) 33 Net Amounts Presented: Accrued current liabilities $ (1,893 ) $ — Other long-term liabilities $ (1,334 ) $ — Other current assets $ — $ 1,062 |
Gains and Losses on Derivative Instruments in Consolidated Statements of Income | The following table presents the location and amount of gains and losses on derivative instruments in the Consolidated Statements of Income: Year Ended December 31, Derivatives Designated as Cash Flow Hedges 2017 2016 2015 Amount of (loss) gain recognized in Other comprehensive income on derivatives (Effective Portion) $ (6,092 ) $ (2,471 ) $ 11,127 Amount of gain (loss) reclassified from Accumulated other comprehensive loss into Income (Effective Portion) 3,619 100 (13,446 ) Amount of loss recognized in income on derivatives (Ineffective Portion) — — (136 ) Derivatives not Designated as Hedging Instruments Location of (Loss) Gain Recognized in Income on Derivatives Amount of (Loss) Gain Recognized in Income on Derivatives Year Ended December 31, 2017 2016 2015 Foreign exchange contracts Other non-operating (expense) income $ (3,464 ) $ (156 ) $ 174 |
Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a 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 as of December 31, 2017 and 2016 : December 31, 2017 Total Quoted Prices Significant Significant Foreign Exchange Contracts $ (3,227 ) $ — $ (3,227 ) $ — Stock-based Liabilities $ (16,713 ) $ (16,713 ) $ — $ — 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 B36
Pensions and Postretirement Benefits Other than Pensions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension and Other Postretirement Benefits Plans | The following table reflects changes in the projected obligations and fair market values of assets in all defined benefit pension and other postretirement benefit plans of the Company: 2017 Pension Benefits 2016 Pension Benefits Other Postretirement Benefits Domestic International Total Domestic International Total 2017 2016 Change in benefit obligation: Projected Benefit Obligation at beginning of year $ 1,040,498 $ 422,528 $ 1,463,026 $ 1,045,467 $ 405,884 $ 1,451,351 $ 262,275 $ 265,579 Service cost - employer 9,860 — 9,860 9,613 9 9,622 2,003 2,149 Interest cost 39,251 11,525 50,776 41,595 14,097 55,692 10,063 10,819 Actuarial (gain)/loss 59,137 2,567 61,704 26,618 81,180 107,798 8,190 (5,760 ) Benefits paid (60,113 ) (15,959 ) (76,072 ) (53,405 ) (12,846 ) (66,251 ) (10,805 ) (10,512 ) Settlements — — — (29,390 ) — (29,390 ) — — Foreign currency translation effect — 40,765 40,765 — (65,796 ) (65,796 ) — — Projected Benefit Obligation at December 31 $ 1,088,633 $ 461,426 $ 1,550,059 $ 1,040,498 $ 422,528 $ 1,463,026 $ 271,726 $ 262,275 Change in plans’ assets: Fair value of plans’ assets at beginning of year $ 848,341 $ 328,533 $ 1,176,874 $ 836,514 $ 309,916 $ 1,146,430 $ — $ — Actual return on plans’ assets 120,620 27,199 147,819 59,310 77,711 137,021 — — Employer contribution 35,498 13,080 48,578 35,312 10,763 46,075 — — Benefits paid (60,113 ) (15,959 ) (76,072 ) (53,405 ) (12,846 ) (66,251 ) — — Settlements — — — (29,390 ) — (29,390 ) — — Foreign currency translation effect — 33,026 33,026 — (57,011 ) (57,011 ) — — Fair value of plans’ assets at December 31 $ 944,346 $ 385,879 $ 1,330,225 $ 848,341 $ 328,533 $ 1,176,874 $ — $ — Funded status $ (144,287 ) $ (75,547 ) $ (219,834 ) $ (192,157 ) $ (93,995 ) $ (286,152 ) $ (271,726 ) $ (262,275 ) Amounts recognized in the balance sheets: Accrued liabilities $ (300 ) $ — $ (300 ) $ (300 ) $ — $ (300 ) $ (14,838 ) $ (15,048 ) Postretirement benefits other than pensions — — — — — — $ (256,888 ) $ (247,227 ) Pension benefits $ (143,987 ) $ (75,547 ) $ (219,534 ) $ (191,857 ) $ (93,995 ) $ (285,852 ) — — |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations at December 31: Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 All plans Discount rate 3.20 % 3.54 % 3.50 % 3.95 % Domestic plans Discount rate 3.50 % 3.90 % 3.50 % 3.95 % Foreign plans Discount rate 2.50 % 2.65 % — — |
Components of Net Periodic Benefit Costs | At December 31, 2017 , the weighted average assumed annual rate of increase in the cost of medical benefits was 7.00 percent for 2017 trending linearly to 4.50 percent per annum in 2025. Pension Benefits - Domestic Pension Benefits - International 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 9,860 $ 9,613 $ 11,037 $ — $ 9 $ 9 Interest cost 39,251 41,595 40,202 11,525 14,097 15,853 Expected return on plan assets (54,058 ) (57,438 ) (55,299 ) (11,262 ) (11,322 ) (12,421 ) Amortization of actuarial loss 37,122 38,490 39,514 5,448 5,134 7,222 Effect of settlements — 12,262 — — — — Net periodic benefit cost $ 32,175 $ 44,522 $ 35,454 $ 5,711 $ 7,918 $ 10,663 Other Post Retirement Benefits 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 2,003 $ 2,149 $ 2,513 Interest cost 10,063 10,819 10,320 Amortization of prior service cost (566 ) (566 ) (566 ) Net periodic benefit cost $ 11,500 $ 12,402 $ 12,267 |
Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost | Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Other Postretirement Benefits 2017 2016 2015 2017 2016 2015 All plans Discount rate 3.54 % 4.10 % 3.70 % 3.95 % 4.20 % 3.80 % Expected return on plan assets 5.57 % 6.16 % 6.12 % — % — % — % Domestic plans Discount rate 3.90 % 4.20 % 3.75 % 3.95 % 4.20 % 3.80 % Expected return on plan assets 6.50 % 7.00 % 7.00 % — % — % — % Foreign plans Discount rate 2.65 % 3.84 % 3.59 % — % — % — % Expected return on plan assets 3.29 % 3.99 % 3.84 % — % — % — % |
Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans | The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets at December 31, 2017 and 2016 : 2017 2016 Projected benefit obligation exceeds plan assets Accumulated benefit obligation exceeds plan assets Projected benefit obligation exceeds plan assets Accumulated benefit obligation exceeds plan assets Projected benefit obligation $ 1,550,059 $ 1,550,059 $ 1,463,026 $ 1,463,026 Accumulated benefit obligation 1,546,705 1,546,705 1,459,809 1,459,809 Fair value of plan assets 1,330,225 1,330,225 1,176,874 1,176,874 |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: Percentage Point Increase Decrease Increase (decrease) in total service and interest cost components $ 50 $ (43 ) Increase (decrease) in the other postretirement benefit obligation 1,419 (1,222 ) |
Weighted Average Asset Allocations for Domestic and U.K. Pension Plans' Assets | The table below presents the Company’s weighted average asset allocations for its domestic and U.K. pension plans’ assets at December 31, 2017 and December 31, 2016 by asset category. U.S. Plans U.K. Plan Asset Category 2017 2016 2017 2016 Debt securities 52 % 36 % 68 % 68 % Equity securities 40 63 18 18 Other investments 6 0 13 14 Cash 2 1 1 0 Total 100 % 100 % 100 % 100 % |
Assets of U.S and U.K Plans Using Fair Value Hierarchy | The table below classifies the assets of the U.S. and U.K. plans using the Fair Value Hierarchy described in Note 8 – Fair Value Measurements. Fair Value Hierarchy Total Level 1 Level 2 Level 3 December 31, 2017 United States plans Cash and cash equivalents $ 18,819 $ 18,819 $ — Collective Trust Funds - Equity 381,696 — 381,696 — Collective Trust Funds - Fixed income 490,955 — 490,955 — Collective Trust Funds - Real Estate 52,876 $ — $ 52,876 $ — $ 944,346 $ 18,819 $ 925,527 $ — United Kingdom plan Cash and cash equivalents $ 1,578 $ 1,578 $ — $ — Equity securities 69,547 69,547 — — Fixed income securities 261,260 261,260 — — Other investments 51,446 — 13,376 38,070 $ 383,831 $ 332,385 $ 13,376 $ 38,070 December 31, 2016 United States plans Cash and cash equivalents $ 8,491 $ 8,491 $ — $ — Equity securities 184,690 184,690 — — Fixed income securities 138,988 138,988 — — Collective Trust Funds - Equity 347,249 — 347,249 — Collective Trust Funds - Fixed income 168,923 — 168,923 — $ 848,341 $ 332,169 $ 516,172 $ — United Kingdom plan Cash and cash equivalents $ 1,078 $ 1,078 $ — $ — Equity securities 60,185 60,185 — — Fixed income securities 220,974 220,974 — — Other investments 44,596 — 10,800 33,796 $ 326,833 $ 282,237 $ 10,800 $ 33,796 |
Details of Activity in Investment in European Infrastructure and Property Funds | The following table details the activity in these investments for the years ended December 31, 2016 and 2017 : U.K. Plan Level 3 Assets Balance at December 31, 2014 $ 25,812 Transfer into level 3 — Disbursements — Change in fair value 2,798 Foreign currency translation effect (1,548 ) Balance at December 31, 2015 27,062 Transfer into level 3 9,489 Disbursements — Change in fair value 3,545 Foreign currency translation effect (6,300 ) Balance at December 31, 2016 33,796 Transfer into level 3 — Disbursements — Change in fair value 969 Foreign currency translation effect 3,305 Balance at December 31, 2017 $ 38,070 |
Estimated Benefit Payments for Domestic and Foreign Pension Plans and Other Postretirement Benefit Plans | The Company estimates its benefit payments for its domestic and foreign pension plans and other postretirement benefit plans during the next ten years to be as follows: Pension Benefits Other Postretirement Benefits 2018 $ 89,433 $ 14,838 2019 84,648 15,261 2020 86,980 15,919 2021 87,027 16,225 2022 88,491 16,462 2022 through 2026 446,996 82,126 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Long-Term Liabilities | Other long-term liabilities at December 31 were as follows: 2017 2016 Product liability $ 85,192 $ 118,941 Long-term income taxes payable 29,463 — Stock-based liabilities 14,365 20,336 Other 15,197 17,647 Other long-term liabilities $ 144,217 $ 156,924 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The following table summarizes the Company’s Board authorized share repurchase programs and related information for the years ended December 31, 2017, 2016 and 2015: Program (1) Date Authorized by Board of Directors Expiration Date Amount Authorized (excluding commissions) Amount Spent as of December 31, 2017 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2019 $ 300,000 $ 76,724 Active 2016 Repurchase Program February 19, 2016 December 31, 2017 200,000 104,366 Superseded (2) 2015 Repurchase Program February 20, 2015 December 31, 2016 200,000 126,346 Superseded (3) ASR program August 6, 2014 February 13, 2015 200,000 200,000 Completed (1) The repurchase programs listed above do not obligate the Company to acquire any specific number of shares and can be suspended or discontinued at any time without notice. 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. All repurchases under the programs listed above have been made using cash resources. (2) 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. (3) 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. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the years ended December 31, 2017, 2016 and 2015: Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2017 share repurchase activity: 2017 Repurchase Program 2,136,237 $ 35.95 $ 76,788 2016 Repurchase Program 383,690 36.70 14,080 Total share repurchases 2,519,927 36.06 $ 90,868 2016 share repurchase activity: 2016 Repurchase Program 2,630,433 $ 34.36 $ 90,377 2015 Repurchase Program 497,094 35.45 17,622 Total share repurchases 3,127,527 34.53 $ 107,999 2015 share repurchase activity: 2015 Repurchase Program 2,751,454 39.55 $ 108,821 ASR program 784,694 (1) (1) Total share repurchases 3,536,148 108,821 (1) On February 13, 2015, the Company completed the ASR program. Based on the terms of the ASR program, the total number of shares repurchased under the 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 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 ASR program, of $31.49 over the duration of the ASR program. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 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: Stock-Based Compensation 2017 2016 2015 Stock options $ 14 $ 506 $ 3,986 Restricted stock units 3,302 5,595 4,879 Performance stock units 693 7,469 6,054 Total stock-based compensation $ 4,009 $ 13,570 $ 14,919 |
Summarized Information for the Plans | Summarized information for the plans follows: Number of Shares Weighted Average Exercise Price (per share) Aggregate Intrinsic Value (thousands) Outstanding at December 31, 2016 495,704 $ 21.24 Granted — — Exercised (210,125 ) 20.10 Expired — — Canceled — — Outstanding at December 31, 2017 285,579 22.08 $ 3,790 Exercisable at December 31, 2017 285,579 22.08 3,790 Year ended December 31, 2017 2016 2015 Weighted average grant-date fair value of options granted (per share) $ — $ — $ — Aggregate intrinsic value of options exercised (thousands) $ 4,194 $ 2,640 $ 20,100 Weighted average grant-date fair value of shares vested (thousands) $ 1,400 $ 2,633 $ 4,602 |
Segregated Disclosure of Options Outstanding | Segregated disclosure of options outstanding at December 31, 2017 was as follows: Range of Exercise Prices Less than or equal to $15.63 Greater than $15.63 Options outstanding 47,501 238,078 Weighted average exercise price $ 12.86 $ 23.72 Remaining contractual life 3.3 5.1 Options exercisable 47,501 238,078 Weighted average exercise price $ 12.44 $ 24.00 |
Details of Nonvested Restricted Stock Units Activity | The following table provides details of the nonvested restricted stock units for 2017 : Number of Restricted Units Weighted Average Grant-Date Fair Value (per share) Nonvested at December 31, 2016 240,574 $ 35.75 Granted 103,207 38.33 Vested (157,344 ) 35.76 Canceled (8,479 ) 37.76 Accrued dividend equivalents 2,430 36.70 Nonvested at December 31, 2017 180,388 $ 37.14 Year ended December 31, 2017 2016 2015 Weighted average grant-date fair value of restricted shares granted (per share) $ 38.33 $ 36.02 $ 36.35 Weighted average grant-date fair value of shares vested (thousands) $ 5,627 $ 3,195 $ 2,629 |
Performance Based Units Earned under Long-Term Incentive Plan | The following table provides details of the nonvested performance stock units earned under the Company’s Long-Term Incentive Plan: Number of Performance Units Weighted Average Grant- Date Fair Value (per share) Nonvested at December 31, 2016 163,967 $ 36.77 Earned — — Vested (114,569 ) 36.77 Canceled (2,309 ) 36.77 Accrued dividend equivalents 1,962 36.77 Nonvested at December 31, 2017 49,051 $ 36.76 |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Cumulative Other Comprehensive Loss in Accompanying Consolidated Statements of Equity | The balances of each component of accumulated other comprehensive loss in the accompanying Consolidated Statements of Equity were as follows: Cumulative Derivative Post- Total Ending balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (53,381 ) (2,471 ) (39,689 ) (95,541 ) Foreign currency translation effect — — 13,152 13,152 Income tax effect — 941 10,770 11,711 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 100 — 100 Amortization of prior service credit — — (566 ) (566 ) Amortization of actuarial losses — — 43,624 43,624 Pension settlement charges — — 12,262 12,262 Income tax effect — (57 ) (20,069 ) (20,126 ) Other comprehensive (loss) income (53,381 ) (1,487 ) 19,484 (35,384 ) Ending balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive (loss) income before reclassifications 35,475 (6,092 ) 13,385 42,768 Foreign currency translation effect — — (7,855 ) (7,855 ) Income tax effect — 1,823 191 2,014 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 3,619 — 3,619 Amortization of prior service credit — — (566 ) (566 ) Amortization of actuarial losses — — 42,570 42,570 Income tax effect — (968 ) (14,909 ) (15,877 ) Other comprehensive (loss) income 35,475 (1,618 ) 32,816 66,673 Ending balance, December 31, 2017 (39,940 ) 349 (438,887 ) (478,478 ) |
Comprehensive Income Attribut41
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | 2017 2016 2015 Net income attributable to noncontrolling shareholders’ interests $ 1,345 $ 2,913 $ 3,038 Other comprehensive loss: Currency translation adjustments 3,375 (4,573 ) (4,227 ) Comprehensive income (loss) attributable to noncontrolling shareholders’ interests $ 4,720 $ (1,660 ) $ (1,189 ) |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments for all Non-Cancelable Operating Leases | Certain of these leases contain provisions for optional renewal at the end of the lease terms. 2018 $ 26,895 2019 24,664 2020 22,218 2021 14,791 2022 10,863 Thereafter 33,313 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Net Sales and Percentage of Consolidated Net Sales | Net sales and percentage of consolidated Company sales for this customer in 2017 , 2016 and 2015 were as follows: 2017 2016 2015 Customer Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales TBC/Treadways $ 304,840 11 % $ 414,556 14 % $ 485,257 16 % |
Segment Financial Information | The following table details segment financial information: 2017 2016 2015 Net sales: Americas Tire External customers $ 2,376,808 $ 2,549,743 $ 2,627,619 Intercompany 39,970 50,580 57,135 2,416,778 2,600,323 2,684,754 International Tire External customers 477,848 375,126 345,282 Intercompany 141,021 88,877 106,597 618,869 464,003 451,879 Eliminations (180,991 ) (139,457 ) (163,732 ) Consolidated net sales 2,854,656 2,924,869 2,972,901 Operating profit (loss): Americas Tire 324,693 439,941 422,929 International Tire 9,457 5,998 (19,133 ) Unallocated corporate charges (60,599 ) (60,308 ) (52,342 ) Eliminations (1,827 ) (1,244 ) 3,026 Consolidated operating profit 271,724 384,387 354,480 Interest expense (32,048 ) (26,604 ) (23,820 ) Interest income 7,362 4,378 2,211 Other non-operating (expense) income (3,113 ) 4,932 1,157 Income before income taxes 243,925 367,093 334,028 Depreciation and amortization expense Americas Tire 91,324 85,842 92,377 International Tire 33,303 30,470 28,577 Corporate 15,601 13,945 454 Consolidated depreciation and amortization expense 140,228 130,257 121,408 Segment assets Americas Tire 1,462,757 1,438,802 1,386,361 International Tire 690,572 547,178 414,051 Corporate and other 454,406 633,415 635,764 Consolidated assets 2,607,735 2,619,395 2,436,176 Expenditures for long-lived assets Americas Tire 109,175 112,975 145,813 International Tire 89,008 60,359 33,839 Corporate (997 ) 2,103 2,892 Consolidated expenditures for long-lived assets 197,186 175,437 182,544 |
Geographic Information for Revenues, Based on Country of Origin, and Long-Lived Assets | Geographic information for revenues, based on country of origin, and long-lived assets follows: 2017 2016 2015 Net sales United States $ 2,240,882 $ 2,423,932 $ 2,518,089 PRC 263,540 166,289 126,674 Rest of world 350,234 334,648 328,138 Consolidated net sales 2,854,656 2,924,869 2,972,901 Long-lived assets United States 568,215 547,599 537,173 PRC 219,289 157,858 105,237 Rest of world 180,488 158,770 152,788 Consolidated long-lived assets 967,992 864,227 795,198 |
Selected Quarterly Data (Tables
Selected Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | SELECTED QUARTERLY DATA (Unaudited) (Dollar amounts in thousands except per share amounts.) 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 643,025 $ 720,753 $ 733,843 $ 757,035 Gross profit 109,918 130,840 164,727 110,994 Net income (loss) attributable to Cooper Tire & Rubber Company 30,561 45,310 61,687 (42,158 ) Earnings (loss) per share: Basic 0.58 0.86 1.19 (0.82 ) Diluted 0.57 0.85 1.18 (0.82 ) Net sales: Americas Tire $ 531,360 $ 615,356 $ 625,423 $ 644,639 International Tire 141,964 151,370 163,345 162,189 Eliminations (30,299 ) (45,973 ) (54,925 ) (49,793 ) Consolidated net sales $ 643,025 $ 720,753 $ 733,843 $ 757,035 Operating profit (loss): Americas Tire $ 63,193 $ 83,293 $ 117,465 $ 60,742 International Tire 1,653 1,274 591 5,938 Unallocated corporate charges (15,824 ) (9,561 ) (15,792 ) (19,422 ) Eliminations (352 ) (174 ) (887 ) (414 ) Consolidated operating profit 48,670 74,832 101,377 46,844 Interest expense (7,827 ) (8,210 ) (7,591 ) (8,419 ) Interest income 1,802 1,755 1,776 2,029 Other non-operating (expense) income (235 ) (255 ) (978 ) (1,645 ) Income before income taxes $ 42,410 $ 68,122 $ 94,584 $ 38,809 Net income (loss) $ 29,381 $ 45,824 $ 62,660 $ (41,120 ) Net income (loss) attributable to Cooper Tire & Rubber Company $ 30,561 $ 45,310 $ 61,687 $ (42,158 ) (a) Basic and diluted earnings (loss) per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Net sales $ 649,775 $ 740,294 $ 750,913 $ 783,887 Gross profit 150,429 179,669 152,952 169,300 Net income attributable to Cooper Tire & Rubber Company 59,005 70,749 49,303 69,324 Earnings per share: Basic 1.06 1.29 0.91 1.30 Diluted 1.05 1.27 0.90 1.28 Net sales: Americas Tire $ 579,338 $ 654,721 $ 672,641 $ 693,624 International Tire 103,226 123,678 112,789 124,310 Eliminations (32,789 ) (38,105 ) (34,517 ) (34,047 ) Consolidated net sales $ 649,775 $ 740,294 $ 750,913 $ 783,887 Operating profit (loss): Americas Tire $ 106,052 $ 116,093 $ 101,522 $ 116,273 International Tire (1,772 ) 3,152 3,265 1,353 Unallocated corporate charges (13,019 ) (8,730 ) (26,442 ) (12,118 ) Eliminations (157 ) (599 ) (117 ) (370 ) Consolidated operating profit 91,104 109,916 78,228 105,138 Interest expense (6,636 ) (6,286 ) (6,795 ) (6,887 ) Interest income 940 948 1,018 1,471 Other non-operating income 1,462 1,427 1,785 260 Income before income taxes $ 86,870 $ 106,005 $ 74,236 $ 99,982 Net income $ 58,772 $ 71,351 $ 50,479 $ 70,692 Net income attributable to Cooper Tire & Rubber Company $ 59,005 $ 70,749 $ 49,303 $ 69,324 (a) Basic and diluted earnings per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. |
Significant Accounting Polici45
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary Of Significant Policies [Line Items] | ||||||
Unremitted foreign earnings | $ 495,000,000 | |||||
Minimum percentage of investment consolidated | 50.00% | |||||
Maximum percentage of cost method investments | 20.00% | |||||
Cash and cash equivalents | $ 504,423,000 | $ 371,684,000 | $ 504,423,000 | $ 505,157,000 | $ 551,652,000 | |
Product liability expenses, minimum | 0 | |||||
Product liability expenses, maximum | 33,000,000 | |||||
Advertising expense | 52,798,000 | 53,715,000 | 53,007,000 | |||
Warranty accrual | 10,634,000 | 12,093,000 | 10,634,000 | 12,339,000 | $ 14,005,000 | |
Additions to product warranty accrual reserve | 10,310,000 | 8,349,000 | 9,122,000 | |||
Product warranty accrual payments | 8,851,000 | 10,054,000 | 10,788,000 | |||
Research and development expense | 59,869,000 | 55,534,000 | 51,793,000 | |||
Payment made by company's joint venture to related party for services | 40,279,000 | 33,774,000 | 26,598,000 | |||
Sale to noncontrolling shareholder | 8,209,000 | 6,335,000 | 6,555,000 | |||
Excess tax benefit from stock-based compensation | 1,877,000 | |||||
Net cash used in financing activities | (119,770,000) | (121,271,000) | (160,660,000) | |||
Net cash provided by operating activities | 176,828,000 | 312,743,000 | 304,307,000 | |||
Payments Related to Tax Withholding for Share-based Compensation | 7,002,000 | 2,948,000 | 3,993,000 | |||
Net periodic benefit cost | 49,386,000 | 64,842,000 | 58,384,000 | |||
Service cost component | 11,863,000 | 11,771,000 | 13,559,000 | |||
Accounting Standards Update 2016-09 | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Net cash used in financing activities | 7,002,000 | 2,948,000 | 3,993,000 | |||
Net cash provided by operating activities | (7,002,000) | $ (2,948,000) | $ (3,993,000) | |||
Unfavorable Regulatory Action | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Incurred expense on loss contingency | $ (22,042,000) | $ 22,042,000 | ||||
Loss from Catastrophes | Cost of Sales | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Incurred expense on loss contingency | 12,569,000 | |||||
Recovered insurance proceeds | $ 7,000,000 | |||||
Minimum | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Equity investments ownership percentage | 20.00% | |||||
Minimum | Software | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 3 years | |||||
Minimum | Intellectual Property | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 1 year | |||||
Minimum | Land use rights | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 38 years | |||||
Maximum | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Equity investments ownership percentage | 50.00% | |||||
Maximum | Software | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 9 years | |||||
Maximum | Intellectual Property | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 3 years | |||||
Maximum | Land use rights | ||||||
Summary Of Significant Policies [Line Items] | ||||||
Intangible asset useful life | 45 years |
Significant Accounting Polici46
Significant Accounting Policies - Expected Useful Lives of Property, Plant and Equipment Recorded at Cost and Depreciated or Amortized (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 14 years |
Molds, cores and rings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 2 years |
Molds, cores and rings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Significant Accounting Polici47
Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||||||||||
Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders | $ (42,158) | $ 61,687 | $ 45,310 | $ 30,561 | $ 69,324 | $ 49,303 | $ 70,749 | $ 59,005 | $ 95,400 | $ 248,381 | $ 212,766 |
Denominator | |||||||||||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 52,206 | 54,480 | 57,012 | ||||||||
Effect of dilutive securities - stock options and other stock units (in shares) | 467 | 610 | 611 | ||||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares) | 52,673 | 55,090 | 57,623 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ (0.82) | $ 1.19 | $ 0.86 | $ 0.58 | $ 1.30 | $ 0.91 | $ 1.29 | $ 1.06 | $ 1.83 | $ 4.56 | $ 3.73 |
Diluted (in dollars per share) | $ (0.82) | $ 1.18 | $ 0.85 | $ 0.57 | $ 1.28 | $ 0.90 | $ 1.27 | $ 1.05 | $ 1.81 | $ 4.51 | $ 3.69 |
Significant Accounting Polici48
Significant Accounting Policies - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Reserve at beginning of year | $ 10,634 | $ 12,339 | $ 14,005 |
Additions | 10,310 | 8,349 | 9,122 |
Payments | (8,851) | (10,054) | (10,788) |
Reserve at end of year | $ 12,093 | $ 10,634 | $ 12,339 |
GRT Acquisition - Additional In
GRT Acquisition - Additional Information (Details) - GRT Acquisition - USD ($) $ in Thousands | Dec. 01, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Down payment | $ 5,929 | |||||
Ownership interest (as a percent) | 65.00% | 65.00% | ||||
Subsequent payment | $ 8,090 | |||||
Working capital contribution | $ 35,842 | $ 22,125 | $ 14,570 | |||
Consideration transferred | $ 86,556 | |||||
Cooper Tire & Rubber Company consideration | $ 14,019 | $ 14,019 |
GRT Acquisition - Estimated Fai
GRT Acquisition - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) | 13 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 01, 2016 | Dec. 31, 2010 | |
Assets | ||||
Goodwill | $ 54,613,000 | $ 52,705,000 | $ 0 | |
GRT Acquisition | ||||
Assets | ||||
Cash | 8,091,000 | $ 8,091,000 | ||
Accounts receivable | 2,844,000 | 2,844,000 | ||
Notes receivable | 3,050,000 | 3,050,000 | ||
Inventory | 8,468,000 | 7,983,000 | ||
Other current assets | 981,000 | 981,000 | ||
Property, plant & equipment | 47,541,000 | 46,712,000 | ||
Intangible assets | 7,428,000 | 7,412,000 | ||
Other long-term assets | 289,000 | 289,000 | ||
Goodwill | 33,250,000 | 33,861,000 | ||
Liabilities | ||||
Accounts payable | (62,289,000) | (61,570,000) | ||
Notes payable | (10,122,000) | (10,122,000) | ||
Accrued liabilities | (2,866,000) | (2,866,000) | ||
Long-term debt | (3,383,000) | (3,383,000) | ||
Other long-term liabilities | (940,000) | (940,000) | ||
Net assets and liabilities assumed | 32,342,000 | 32,342,000 | ||
Noncontrolling shareholder interest | (18,323,000) | (18,323,000) | ||
Cooper Tire & Rubber Company consideration | 14,019,000 | $ 14,019,000 | ||
Adjustments | ||||
Inventory | 485,000 | |||
Property, plant & equipment | 829,000 | |||
Intangible assets | 16,000 | |||
Goodwill | (611,000) | |||
Accounts payable | $ (719,000) |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 415,640 | $ 409,034 |
U.S. inventories, LIFO reserve | $ 88,094 | $ 85,113 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | 72 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | Dec. 31, 2017 | Dec. 31, 2010 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill acquisitions | $ 33,250,000 | $ 18,851,000 | |||
Changes in the value of goodwill | $ 0 | ||||
Goodwill | $ 54,613,000 | $ 52,705,000 | 54,613,000 | $ 0 | |
Goodwill impairment | 0 | ||||
2,018 | 16,821,000 | 16,821,000 | |||
2,019 | 16,331,000 | 16,331,000 | |||
2,020 | 16,151,000 | 16,151,000 | |||
2,021 | 15,534,000 | 15,534,000 | |||
2,022 | $ 13,865,000 | $ 13,865,000 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible Assets and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 216,792 | $ 208,255 |
Accumulated Amortization | (93,353) | (77,321) |
Net Carrying Amount | 123,439 | 130,934 |
Intangible assets gross excluding goodwill | 226,609 | 218,072 |
Total | 133,256 | 140,751 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | 9,817 | 9,817 |
Capitalized software costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 192,474 | 185,539 |
Accumulated Amortization | (81,908) | (65,719) |
Net Carrying Amount | 110,566 | 119,820 |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12,850 | 10,386 |
Accumulated Amortization | (1,230) | (1,642) |
Net Carrying Amount | 11,620 | 8,744 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,800 | 8,800 |
Accumulated Amortization | (7,547) | (7,094) |
Net Carrying Amount | 1,253 | 1,706 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,668 | 3,530 |
Accumulated Amortization | (2,668) | (2,866) |
Net Carrying Amount | $ 0 | $ 664 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll and employee benefits, excluding postemployment benefits | $ 59,593 | $ 67,274 |
Product liability | 44,700 | 58,054 |
Other postretirement benefits | 14,838 | 15,048 |
Advertising | 17,476 | 14,281 |
Taxes other than income taxes | 9,770 | 11,414 |
Warranty | 8,304 | 5,699 |
Other | 25,795 | 12,034 |
Accrued liabilities | $ 180,476 | $ 183,804 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations before Income Taxes and Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | $ 38,809 | $ 94,584 | $ 68,122 | $ 42,410 | $ 99,982 | $ 74,236 | $ 106,005 | $ 86,870 | $ 243,925 | $ 367,093 | $ 334,028 |
United States | |||||||||||
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | 211,225 | 319,156 | 314,263 | ||||||||
Foreign | |||||||||||
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | $ 32,700 | $ 47,937 | $ 19,765 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Tax for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 69,463 | $ 100,714 | $ 67,405 |
State and local | 6,304 | 12,445 | 12,837 |
Foreign | 9,842 | 14,990 | 12,948 |
Current income tax provision (benefit) for continuing operations, Total | 85,609 | 128,149 | 93,190 |
Deferred: | |||
Federal | 48,866 | (6,730) | 23,466 |
State and local | 4,915 | (763) | 5,157 |
Foreign | 7,790 | (4,857) | (3,589) |
Deferred income tax provision (benefit) for continuing operations, Total | 61,571 | (12,350) | 25,034 |
Provision for income taxes | $ 147,180 | $ 115,799 | $ 118,224 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax provision at 35% | $ 85,375 | $ 128,483 | $ 116,910 |
Expiration of capital loss carryforward | 0 | 0 | 18,376 |
State and local income tax, net of federal income tax effect | 7,867 | 8,693 | 12,321 |
Domestic manufacturing deduction | (2,940) | (9,870) | (6,580) |
U.S. tax credits | (2,474) | (3,013) | (3,186) |
Tax law or rate change excluding U.S. tax act | 0 | 794 | 2,383 |
U.S. tax act - transition tax | 35,378 | 0 | 0 |
U.S. tax act - remeasurement of deferred taxes | 20,413 | 0 | 0 |
Difference in effective tax rates of international operations | (4,667) | (4,900) | (932) |
Other - net | (4,016) | (1,947) | (2,868) |
Provision for income taxes | $ 147,180 | 115,799 | 118,224 |
Statutory tax rate (as a percent) | 35.00% | ||
State Administration of Taxation, China | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ (6,671) | (2,441) | (18,200) |
Her Majesty's Revenue and Customs (HMRC) | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 18,915 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Reduction to net deferred tax asset | $ 20,413 | |||
U.S. tax act - transition tax | 35,378 | |||
Foreign tax credit carryforwards | 1,707 | |||
Tax provision liability due in 2018 | 2,694 | |||
Tax provision liability due in 2019 | 2,694 | |||
Tax provision liability due in 2020 | 2,694 | |||
Tax provision liability due in 2021 | 2,694 | |||
Tax provision liability due in 2022 | 2,694 | |||
Tax provision liability due 2023 - 2025 | 20,201 | |||
Unremitted foreign earnings | 495,000 | |||
Payments for income taxes net of refunds | 67,782 | $ 131,001 | $ 76,206 | |
Tax loss carryforward domestic | 6,731 | |||
Tax loss carry forward foreign | 64,972 | |||
State tax credits carry forward | 240 | |||
Recognition of unrecognized tax benefit upon which the effective rate would change | 2,283 | |||
Unrecognized tax benefits, exclusive of interest | 2,283 | 3,197 | 5,843 | $ 8,314 |
Accrued tax provision of interest expense | (17) | (347) | 63 | |
Unrecognized tax benefits interest on income taxes accrued | 124 | |||
Her Majesty's Revenue and Customs (HMRC) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 18,915 | 0 | 0 | |
State Administration of Taxation, China | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | $ (6,671) | $ (2,441) | $ (18,200) |
Income Taxes - Components of Co
Income Taxes - Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Postretirement and other employee benefits | $ 116,321 | $ 191,099 |
Product liability | 32,668 | 67,528 |
Net operating loss, capital loss, and tax credit carryforwards | 14,174 | 15,274 |
All other items | 33,423 | 48,718 |
Total deferred tax assets | 196,586 | 322,619 |
Deferred tax liabilities: | ||
Property, plant and equipment | (101,720) | (160,075) |
All other items | (6,099) | (9,685) |
Total deferred tax liabilities | (107,819) | (169,760) |
Deferred tax assets (liabilities), net, total | 88,767 | 152,859 |
Valuation allowances | (30,102) | (20,228) |
Net deferred tax asset | $ 58,665 | $ 132,631 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits for Permanent and Temporary Book/Tax Differences for Continuing Operations, Exclusive of Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 3,197 | $ 5,843 | $ 8,314 |
Settlements for tax positions of prior years | (139) | (518) | (367) |
Additions for tax positions of the current year | 47 | 714 | |
Additions for tax positions of prior years | 438 | 1,518 | 1,151 |
Reductions for tax positions of prior years | (942) | ||
Statute lapses | (1,260) | (4,360) | (2,313) |
Ending balance | $ 2,283 | $ 3,197 | $ 5,843 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 | May 27, 2015 | May 26, 2015 | |
Debt Instrument [Line Items] | ||||||
Effect of tax exemption granted to Texarkana Industrial Revenue Bonds (as a percent) | 100.00% | |||||
Assets associated with city of Texarkana | $ 24,100,000 | $ 20,000,000 | ||||
Liabilities associated with city of Texarkana | 24,100,000 | 20,000,000 | ||||
Short-term notes payable | $ 39,450,000 | $ 26,286,000 | ||||
Weighted average interest rate of short term notes payable (as a percent) | 4.46% | 4.26% | ||||
Interest paid | $ 34,085,000 | $ 28,842,000 | $ 27,560,000 | |||
Interest capitalized | 2,706,000 | 3,016,000 | $ 4,473,000 | |||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Amounts used to secure letters of credit | 17,600,000 | 21,800,000 | ||||
Bank Group And Accounts Receivable Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Additional borrowing capacity | 527,600,000 | |||||
Asian Credit Lines | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 63,600,000 | |||||
Additional borrowing capacity | 24,200,000 | |||||
Accounts Receivable Facility Before May 27, 2015 | Accounts Receivable Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 175,000,000 | |||||
Amended Accounts Receivable Facility | Accounts Receivable Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
Borrowings outstanding | 0 | 0 | ||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 400,000,000 | |||||
Increase in line credit facility (up to) | 100,000,000 | |||||
Borrowings outstanding | 0 | $ 0 | ||||
Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 110,000,000 | |||||
Secured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Secured notes outstanding | $ 0 |
Debt - Long Term Debt (Detail)
Debt - Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 298,142 | $ 300,341 |
Less: unamortized debt issuance costs | 742 | 826 |
Long-term debt, including current maturities | 297,400 | 299,515 |
Less: current maturities | 1,413 | 2,421 |
Long-term debt, noncurrent | 295,987 | 297,094 |
8% unsecured notes due December 2019 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 173,578 | 173,578 |
7.625% unsecured notes due March 2027 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 116,880 | 116,880 |
Capitalized leases and other | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 7,684 | $ 9,883 |
Parent company | 8% unsecured notes due December 2019 | ||
Debt Instrument [Line Items] | ||
Notes interest rate (as a percent) | 8.00% | |
Parent company | 7.625% unsecured notes due March 2027 | ||
Debt Instrument [Line Items] | ||
Notes interest rate (as a percent) | 7.625% |
Debt Debt - Schedule of Payment
Debt Debt - Schedule of Payments on Long Term Debt (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 1,413 |
2,019 | 174,786 |
2,020 | 0 |
2,021 | 5,063 |
2022 through 2026 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 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 | $ (2,640,000) | $ 1,029,000 |
Long-term debt | 295,987,000 | 297,094,000 |
Quoted Prices in Active Markets for Identical Assets Level (1) | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Fair value of long term debt | 329,329,000 | 331,941,000 |
Foreign Exchange Contracts | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Notional amount of the foreign currency derivative instruments | $ 134,530,000 | $ 89,414,000 |
Foreign Exchange Contracts | Maximum | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Maturity period of hedges | 12 months | |
Interest Rate Swap | Maximum | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Maturity period of hedges | 4 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts presented | $ (1,893) | $ 0 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts presented | (1,334) | 0 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts presented | 0 | 1,062 |
Designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (2,808) | 1,029 |
Gross amounts offset | 168 | 0 |
Net amounts | (2,640) | 1,029 |
Not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (684) | 109 |
Gross amounts offset | 97 | (76) |
Net amounts | $ (587) | $ 33 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Not designated as hedging instruments: | Foreign Exchange Contracts | Other non-operating (expense) income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (3,464) | $ (156) | $ 174 |
Derivatives Designated as Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (loss) gain recognized in Other comprehensive income on derivatives (Effective Portion) | (6,092) | (2,471) | 11,127 |
Amount of gain (loss) reclassified from Accumulated other comprehensive loss into Income (Effective Portion) | 3,619 | 100 | (13,446) |
Amount of loss recognized in income on derivatives (Ineffective Portion) | $ 0 | $ 0 | $ (136) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | $ (3,227) | $ 1,062 |
Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | (16,713) | (20,336) |
Quoted Prices in Active Markets for Identical Assets Level (1) | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | 0 | 0 |
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 Derivative Assets (Liabilities) | (16,713) | (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 Derivative Assets (Liabilities) | (3,227) | 1,062 |
Significant Other Observable Inputs Level (2) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | 0 | 0 |
Significant Unobservable Inputs Level (3) | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | 0 | 0 |
Significant Unobservable Inputs Level (3) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | $ 0 | $ 0 |
Pensions and Postretirement B68
Pensions and Postretirement Benefits Other than Pensions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)Employee | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Expense for defined contribution plans | $ 13,931 | $ 13,260 | $ 14,236 | ||
Unrecognized prior service credit included in cumulative other comprehensive loss | $ (1,604) | (1,038) | (1,604) | ||
Unrecognized prior service credit, included in cumulative other comprehensive loss, net of tax | (990) | (779) | (990) | ||
Unrecognized actuarial losses included in cumulative other comprehensive loss | (534,060) | (489,008) | (534,060) | ||
Unrecognized actual losses included in other comprehensive loss net of tax | (472,693) | (439,666) | (472,693) | ||
Prior service credit expected to be recognized in next fiscal year | (541) | ||||
Actuarial loss expected to be recognized in next fiscal year | (37,258) | ||||
Accumulated benefit obligation exceeds plan assets, Projected benefit obligation | 1,459,809 | 1,546,705 | 1,459,809 | ||
Accumulated benefit obligation | 1,459,809 | $ 1,546,705 | 1,459,809 | ||
Number of former employees receiving lump sum offer | Employee | 1,200 | ||||
Defined benefit plan, settlements, vested benefit obligation | $ 42,000 | ||||
Defined benefit plan, settlements, percent of obligation | 4.00% | ||||
Benefits paid | $ 22,701 | ||||
Defined benefit plans, settlements, percent of obligation reduction | 2.00% | ||||
Non-cash settlement charge | 800 | $ 11,462 | |||
Weighted average assumed annual rate of increase in the cost of medical benefits (as a percent) | 7.00% | ||||
Weighted average assumed annual rate of increase in trending linearly cost (as a percent) | 4.50% | ||||
Contributed to domestic and foreign pension plans | $ 48,578 | ||||
Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contributions to domestic and foreign pension plans | 45,000 | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected contributions to domestic and foreign pension plans | 55,000 | ||||
United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair market value of plan assets | 848,341 | 944,346 | 848,341 | ||
United States | Significant Other Observable Inputs Level (2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair market value of plan assets | 516,172 | 925,527 | 516,172 | ||
United Kingdom plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair market value of plan assets | 326,833 | 383,831 | 326,833 | ||
United Kingdom plan | Significant Other Observable Inputs Level (2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair market value of plan assets | 10,800 | 13,376 | 10,800 | ||
GERMANY | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair market value of plan assets | 1,700 | 2,048 | 1,700 | ||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, benefit obligation | 1,463,026 | 1,550,059 | 1,463,026 | 1,451,351 | |
Benefits paid | 76,072 | 66,251 | |||
Defined benefit plan, settlements, benefit obligation | 0 | 29,390 | |||
Fair market value of plan assets | 1,176,874 | 1,330,225 | 1,176,874 | 1,146,430 | |
Pension Plan | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, benefit obligation | 1,040,498 | 1,088,633 | 1,040,498 | 1,045,467 | |
Benefits paid | 60,113 | 53,405 | |||
Defined benefit plan, settlements, benefit obligation | 0 | 29,390 | |||
Fair market value of plan assets | $ 848,341 | $ 944,346 | $ 848,341 | $ 836,514 |
Pensions and Postretirement B69
Pensions and Postretirement Benefits Other than Pensions - Defined Benefit Pension and Other Postretirement Benefits Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | ||||
Service cost - employer | $ 11,863 | $ 11,771 | $ 13,559 | |
Change in plans’ assets: | ||||
Benefits paid | $ (22,701) | |||
Amounts recognized in the balance sheets: | ||||
Postretirement benefits other than pensions | (256,888) | (247,227) | ||
Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 1,463,026 | 1,451,351 | ||
Service cost - employer | 9,860 | 9,622 | ||
Interest cost | 50,776 | 55,692 | ||
Actuarial (gain)/loss | 61,704 | 107,798 | ||
Benefits paid | (76,072) | (66,251) | ||
Settlements | 0 | (29,390) | ||
Foreign currency translation effect | 40,765 | (65,796) | ||
Projected Benefit Obligation at end of year | 1,550,059 | 1,463,026 | 1,451,351 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 1,176,874 | 1,146,430 | ||
Actual return on plans’ assets | 147,819 | 137,021 | ||
Employer contribution | 48,578 | 46,075 | ||
Benefits paid | (76,072) | (66,251) | ||
Foreign currency translation effect | 33,026 | (57,011) | ||
Fair value of plans’ assets at end of year | 1,330,225 | 1,176,874 | 1,146,430 | |
Funded status | (219,834) | (286,152) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (300) | (300) | ||
Postretirement benefits other than pensions | 0 | 0 | ||
Pension benefits | (219,534) | (285,852) | ||
Other Postretirement Benefits | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 262,275 | 265,579 | ||
Service cost - employer | 2,003 | 2,149 | 2,513 | |
Interest cost | 10,063 | 10,819 | 10,320 | |
Actuarial (gain)/loss | 8,190 | (5,760) | ||
Benefits paid | (10,805) | (10,512) | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Projected Benefit Obligation at end of year | 271,726 | 262,275 | 265,579 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 0 | 0 | ||
Actual return on plans’ assets | 0 | 0 | ||
Employer contribution | 0 | 0 | ||
Benefits paid | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Fair value of plans’ assets at end of year | 0 | 0 | 0 | |
Funded status | (271,726) | (262,275) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (14,838) | (15,048) | ||
Postretirement benefits other than pensions | (256,888) | (247,227) | ||
Pension benefits | 0 | 0 | ||
United States | ||||
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 848,341 | |||
Fair value of plans’ assets at end of year | 944,346 | 848,341 | ||
United States | Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 1,040,498 | 1,045,467 | ||
Service cost - employer | 9,860 | 9,613 | 11,037 | |
Interest cost | 39,251 | 41,595 | 40,202 | |
Actuarial (gain)/loss | 59,137 | 26,618 | ||
Benefits paid | (60,113) | (53,405) | ||
Settlements | 0 | (29,390) | ||
Foreign currency translation effect | 0 | 0 | ||
Projected Benefit Obligation at end of year | 1,088,633 | 1,040,498 | 1,045,467 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 848,341 | 836,514 | ||
Actual return on plans’ assets | 120,620 | 59,310 | ||
Employer contribution | 35,498 | 35,312 | ||
Benefits paid | (60,113) | (53,405) | ||
Foreign currency translation effect | 0 | 0 | ||
Fair value of plans’ assets at end of year | 944,346 | 848,341 | 836,514 | |
Funded status | (144,287) | (192,157) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (300) | (300) | ||
Postretirement benefits other than pensions | 0 | 0 | ||
Pension benefits | (143,987) | (191,857) | ||
International | Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 422,528 | 405,884 | ||
Service cost - employer | 0 | 9 | 9 | |
Interest cost | 11,525 | 14,097 | 15,853 | |
Actuarial (gain)/loss | 2,567 | 81,180 | ||
Benefits paid | (15,959) | (12,846) | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 40,765 | (65,796) | ||
Projected Benefit Obligation at end of year | 461,426 | 422,528 | 405,884 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 328,533 | 309,916 | ||
Actual return on plans’ assets | 27,199 | 77,711 | ||
Employer contribution | 13,080 | 10,763 | ||
Benefits paid | (15,959) | (12,846) | ||
Foreign currency translation effect | 33,026 | (57,011) | ||
Fair value of plans’ assets at end of year | 385,879 | 328,533 | $ 309,916 | |
Funded status | (75,547) | (93,995) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | 0 | 0 | ||
Postretirement benefits other than pensions | 0 | 0 | ||
Pension benefits | $ (75,547) | $ (93,995) |
Pensions and Postretirement B70
Pensions and Postretirement Benefits Other than Pensions - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 3.20% | 3.54% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 3.50% | 3.95% |
United States | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 3.50% | 3.90% |
United States | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 3.50% | 3.95% |
Foreign Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 2.50% | 2.65% |
Foreign Plan | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percent) | 0.00% | 0.00% |
Pensions and Postretirement B71
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - employer | $ 11,863 | $ 11,771 | $ 13,559 |
Pension settlement charges | 0 | 12,262 | 0 |
Net periodic benefit cost | 49,386 | 64,842 | 58,384 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - employer | 9,860 | 9,622 | |
Interest cost | 50,776 | 55,692 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - employer | 2,003 | 2,149 | 2,513 |
Interest cost | 10,063 | 10,819 | 10,320 |
Amortization of prior service cost | (566) | (566) | (566) |
Net periodic benefit cost | 11,500 | 12,402 | 12,267 |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - employer | 9,860 | 9,613 | 11,037 |
Interest cost | 39,251 | 41,595 | 40,202 |
Expected return on plan assets | (54,058) | (57,438) | (55,299) |
Amortization of actuarial loss | 37,122 | 38,490 | 39,514 |
Pension settlement charges | 0 | 12,262 | 0 |
Net periodic benefit cost | 32,175 | 44,522 | 35,454 |
International | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - employer | 0 | 9 | 9 |
Interest cost | 11,525 | 14,097 | 15,853 |
Expected return on plan assets | (11,262) | (11,322) | (12,421) |
Amortization of actuarial loss | 5,448 | 5,134 | 7,222 |
Pension settlement charges | 0 | 0 | 0 |
Net periodic benefit cost | $ 5,711 | $ 7,918 | $ 10,663 |
Pensions and Postretirement B72
Pensions and Postretirement Benefits Other than Pensions - Weighted Average Assumptions Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.54% | 4.10% | 3.70% |
Expected return on plan assets (as a percent) | 5.57% | 6.16% | 6.12% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.95% | 4.20% | 3.80% |
Expected return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.90% | 4.20% | 3.75% |
Expected return on plan assets (as a percent) | 6.50% | 7.00% | 7.00% |
United States | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 3.95% | 4.20% | 3.80% |
Expected return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 2.65% | 3.84% | 3.59% |
Expected return on plan assets (as a percent) | 3.29% | 3.99% | 3.84% |
Foreign Plan | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percent) | 0.00% | 0.00% | 0.00% |
Expected return on plan assets (as a percent) | 0.00% | 0.00% | 0.00% |
Pensions and Postretirement B73
Pensions and Postretirement Benefits Other than Pensions - Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan [Abstract] | ||
Projected benefit obligation exceeds plan assets, Projected benefit obligation | $ 1,550,059 | $ 1,463,026 |
Projected benefit obligation exceeds plan assets, Accumulated benefit obligation | 1,550,059 | 1,463,026 |
Accumulated benefit obligation exceeds plan assets, Projected benefit obligation | 1,546,705 | 1,459,809 |
Accumulated benefit obligation exceeds plan assets, Accumulated benefit obligation | 1,546,705 | 1,459,809 |
Projected benefit obligation exceeds plan assets, Fair value of plan assets | 1,330,225 | 1,176,874 |
Accumulated benefit obligation exceeds plan assets, Fair value of plan assets | $ 1,330,225 | $ 1,176,874 |
Pensions and Postretirement B74
Pensions and Postretirement Benefits Other than Pensions - One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Service and interest cost components, Increase | $ 50 |
Postretirement benefit obligation, Increase | 1,419 |
Service and interest cost components, Decrease | (43) |
Postretirement benefit obligation, Decrease | $ (1,222) |
Pensions and Postretirement B75
Pensions and Postretirement Benefits Other Than Pensions - Weighted Average Asset Allocations for Domestic and U.K. Pension Plans' Assets (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 100.00% | 100.00% |
United States | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 52.00% | 36.00% |
United States | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 40.00% | 63.00% |
United States | Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 6.00% | 0.00% |
United States | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 2.00% | 1.00% |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 100.00% | 100.00% |
Foreign Plan | Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 68.00% | 68.00% |
Foreign Plan | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 18.00% | 18.00% |
Foreign Plan | Other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 13.00% | 14.00% |
Foreign Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 1.00% | 0.00% |
Pensions and Postretirement B76
Pensions and Postretirement Benefits Other than Pensions - Assets of U.S and U.K Plans Using Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | $ 944,346 | $ 848,341 | ||
United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 383,831 | 326,833 | ||
Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 18,819 | 332,169 | ||
Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 332,385 | 282,237 | ||
Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 925,527 | 516,172 | ||
Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 13,376 | 10,800 | ||
Significant Unobservable Inputs Level (3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 38,070 | 33,796 | $ 27,062 | $ 25,812 |
Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 38,070 | 33,796 | ||
Cash and cash equivalents | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 18,819 | 8,491 | ||
Cash and cash equivalents | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,578 | 1,078 | ||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 18,819 | 8,491 | ||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,578 | 1,078 | ||
Cash and cash equivalents | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Cash and cash equivalents | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Equity securities | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 184,690 | |||
Equity securities | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 69,547 | 60,185 | ||
Equity securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 184,690 | |||
Equity securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 69,547 | 60,185 | ||
Equity securities | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Equity securities | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Equity securities | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Equity securities | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Fixed income securities | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 138,988 | |||
Fixed income securities | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 261,260 | 220,974 | ||
Fixed income securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 138,988 | |||
Fixed income securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 261,260 | 220,974 | ||
Fixed income securities | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Fixed income securities | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Fixed income securities | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Fixed income securities | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 381,696 | 347,249 | ||
Collective Trust Funds - Equity | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 381,696 | 347,249 | ||
Collective Trust Funds - Equity | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Fixed income | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 490,955 | 168,923 | ||
Collective Trust Funds - Fixed income | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Fixed income | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 490,955 | 168,923 | ||
Collective Trust Funds - Fixed income | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Real Estate | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 52,876 | |||
Collective Trust Funds - Real Estate | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Collective Trust Funds - Real Estate | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 52,876 | |||
Collective Trust Funds - Real Estate | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | |||
Other investments | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 51,446 | 44,596 | ||
Other investments | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Other investments | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 13,376 | 10,800 | ||
Other investments | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | $ 38,070 | $ 33,796 |
Pensions and Postretirement B77
Pensions and Postretirement Benefits Other than Pensions - Details of Activity in Investment in European Infrastructure and Property Funds (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Disbursements | $ (22,701) | |||
Significant Unobservable Inputs Level (3) | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Fair value of plans’ assets at beginning of year | $ 33,796 | $ 27,062 | $ 25,812 | |
Transfer into level 3 | 0 | 9,489 | 0 | |
Disbursements | 0 | 0 | 0 | |
Change in fair value | 969 | 3,545 | 2,798 | |
Foreign currency translation effect | 3,305 | (6,300) | (1,548) | |
Fair value of plans’ assets at end of year | $ 38,070 | $ 33,796 | $ 27,062 |
Pensions and Postretirement B78
Pensions and Postretirement Benefits Other than Pensions - Estimated Benefit Payments for Domestic and Foreign Pension Plans and Other Postretirement Benefit Plans (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 89,433 |
2,019 | 84,648 |
2,020 | 86,980 |
2,021 | 87,027 |
2,022 | 88,491 |
2022 through 2026 | 446,996 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 14,838 |
2,019 | 15,261 |
2,020 | 15,919 |
2,021 | 16,225 |
2,022 | 16,462 |
2022 through 2026 | $ 82,126 |
Other Long-Term Liabilities - C
Other Long-Term Liabilities - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Product liability | $ 85,192 | $ 118,941 |
Long-term income taxes payable | 29,463 | 0 |
Stock-based liabilities | 14,365 | 20,336 |
Other | 15,197 | 17,647 |
Other long-term liabilities | $ 144,217 | $ 156,924 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) | Feb. 13, 2015 | Aug. 31, 2014 | Feb. 12, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Feb. 16, 2017 | Feb. 19, 2016 | Aug. 06, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Stock repurchase amount | $ 90,868,000 | $ 107,999,000 | $ 108,821,000 | |||||||
Common stock repurchased (in shares) | 2,519,927 | 3,127,527 | 3,536,148 | 14,750,756 | ||||||
Average Repurchase Price Per Share | $ 36.06 | $ 34.53 | $ 34.42 | |||||||
Common shares reserved for compensation plans and contributions (in shares) | 7,954,701 | 7,954,701 | ||||||||
Share Repurchase Program, August 6, 2014 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized (up to) | $ 200,000,000 | $ 200,000,000 | ||||||||
Common stock repurchased (in shares) | 784,694 | |||||||||
Average Repurchase Price Per Share | $ 31.49 | |||||||||
Share Repurchase Program, August 6, 2014 | JP Morgan Securities LLC | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized (up to) | $ 200,000,000 | |||||||||
Stock repurchase amount | $ 200,000,000 | $ 200,000,000 | ||||||||
Common stock repurchased (in shares) | 784,694 | 5,567,154 | 6,351,848 | |||||||
Common shares initially delivered under share repurchase program (as a percent) | 80.00% | |||||||||
Share Repurchase Program, February 20, 2015 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized (up to) | 200,000,000 | 200,000,000 | ||||||||
Stock repurchase amount | $ 17,622,000 | $ 108,821,000 | ||||||||
Common stock repurchased (in shares) | 497,094 | 2,751,454 | ||||||||
Average Repurchase Price Per Share | $ 35.45 | $ 39.55 | ||||||||
Share repurchase, remaining amount authorized | $ 73,654,000 | |||||||||
Share Repurchase Program, February 19, 2016 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized (up to) | 200,000,000 | 200,000,000 | $ 200,000,000 | |||||||
Stock repurchase amount | $ 14,080,000 | $ 90,377,000 | ||||||||
Common stock repurchased (in shares) | 383,690 | 2,630,433 | ||||||||
Average Repurchase Price Per Share | $ 36.70 | $ 34.36 | ||||||||
Share repurchase, remaining amount authorized | $ 95,634,000 | |||||||||
Share Repurchase Program February 16, 2017 | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized (up to) | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||||
Stock repurchase amount | $ 76,788,000 | |||||||||
Common stock repurchased (in shares) | 2,136,237 | |||||||||
Average Repurchase Price Per Share | $ 35.95 |
Common Stock - Schedule of Shar
Common Stock - Schedule of Share Repurchase Program (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 41 Months Ended | |||||
Feb. 12, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Feb. 16, 2017 | Feb. 19, 2016 | Aug. 06, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Average Repurchase Price Per Share | $ 36.06 | $ 34.53 | $ 34.42 | |||||
Share Repurchase Program February 16, 2017 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized (up to) | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |||||
Stock repurchase amount (excluding commissions) | $ 76,724,000 | |||||||
Average Repurchase Price Per Share | $ 35.95 | |||||||
Share Repurchase Program, February 19, 2016 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized (up to) | $ 200,000,000 | 200,000,000 | $ 200,000,000 | |||||
Stock repurchase amount (excluding commissions) | $ 104,366,000 | |||||||
Share repurchase, remaining amount authorized | $ 95,634,000 | |||||||
Average Repurchase Price Per Share | $ 36.70 | 34.36 | ||||||
Share Repurchase Program, February 20, 2015 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized (up to) | $ 200,000,000 | 200,000,000 | ||||||
Stock repurchase amount (excluding commissions) | 126,346,000 | |||||||
Share repurchase, remaining amount authorized | $ 73,654,000 | |||||||
Average Repurchase Price Per Share | $ 35.45 | $ 39.55 | ||||||
Share Repurchase Program, August 6, 2014 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized (up to) | 200,000,000 | $ 200,000,000 | ||||||
Stock repurchase amount (excluding commissions) | $ 200,000,000 | |||||||
Average Repurchase Price Per Share | $ 31.49 | |||||||
JP Morgan Securities LLC | Share Repurchase Program, August 6, 2014 | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized (up to) | $ 200,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 4,009 | $ 13,570 | $ 14,919 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 14 | 506 | 3,986 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 3,302 | 5,595 | 4,879 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 693 | $ 7,469 | $ 6,054 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 0 | 0 | 0 | |||||||||
Granted (in dollars per share) | $ 0 | $ 0 | ||||||||||
Weighted average remaining contractual life of options outstanding | 4 years 9 months 18 days | |||||||||||
Shares available for future issuance under equity compensation plans | 2,332,604 | |||||||||||
Excess tax benefits on stock-based compensation | $ 274 | $ 4,323 | ||||||||||
Excess tax benefit from stock-based compensation | $ 1,877 | |||||||||||
Long-Term Incentive Plan 2012- 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 589,934 | |||||||||||
Long-Term Incentive Plan 2013- 2015 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 330,639 | |||||||||||
Long Term Incentive Plan 2014-2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 380,064 | |||||||||||
Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in dollars per share) | $ 0 | |||||||||||
Stock options | Incentive Compensation Plans 2001, 2006, 2010, 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period (in years) | 10 years | |||||||||||
Stock options | Vesting Period One | Long-Term Incentive Plan 2012- 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period One | Long-Term Incentive Plan 2013- 2015 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period One | Long Term Incentive Plan 2014-2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Two | Long-Term Incentive Plan 2012- 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Two | Long-Term Incentive Plan 2013- 2015 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Two | Long Term Incentive Plan 2014-2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Three | Long-Term Incentive Plan 2012- 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Three | Long-Term Incentive Plan 2013- 2015 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Stock options | Vesting Period Three | Long Term Incentive Plan 2014-2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in dollars per share) | $ 38.33 | $ 36.02 | 36.35 | |||||||||
Number of RSU's granted (in shares) | 103,207 | |||||||||||
Vested restricted stock units (in shares) | 2,499 | 93,440 | ||||||||||
Equity awards vested (in shares) | 157,344 | |||||||||||
Unvested compensation cost | $ 2,021 | |||||||||||
Unvested compensation cost period of recognition | 24 months | |||||||||||
Restricted stock units | 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 | |||||||||||
Restricted stock units | 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 | |||||||||||
Restricted stock units | 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 | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 3 years | |||||||||||
Restricted stock units | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | |||||||||||
Restricted stock units | Vesting Period One | Long Term Incentive Plan 2015-2017 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period One | Long Term Incentive Plan 2016 - 2018 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period One | Long Term Incentive Plan 2017 - 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Two | Long Term Incentive Plan 2015-2017 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Two | Long Term Incentive Plan 2016 - 2018 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Two | Long Term Incentive Plan 2017 - 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Three | Long Term Incentive Plan 2015-2017 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Three | Long Term Incentive Plan 2016 - 2018 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Restricted stock units | Vesting Period Three | Long Term Incentive Plan 2017 - 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares vested (as a percent) | 33.33% | |||||||||||
Performance stock units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in dollars per share) | $ 38.23 | $ 36.76 | $ 36.62 | |||||||||
Equity awards vested (in shares) | 114,569 | |||||||||||
Unvested compensation cost | $ 221 | |||||||||||
Unvested compensation cost period of recognition | 12 months | |||||||||||
Performance stock units | Long-Term Incentive Plan 2013- 2015 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity awards vested (in shares) | 8,701 | 13,373 | 9,821 | |||||||||
Number of performance units, earned (in shares) | 33,405 | |||||||||||
Performance stock units | Long Term Incentive Plan 2014-2016 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity awards vested (in shares) | 38,091 | 32,074 | 49,248 | |||||||||
Number of performance units, earned (in shares) | 123,788 | |||||||||||
Performance stock units | Long Term Incentive Plan 2015-2017 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity awards vested (in shares) | 66,909 | 83,371 | 69,912 | |||||||||
Number of performance units, earned (in shares) | 231,543 | |||||||||||
Performance stock units | Long Term Incentive Plan 2016 - 2018 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity awards vested (in shares) | 45,435 | 55,570 | ||||||||||
Number of performance units, earned (in shares) | 179,865 | |||||||||||
Performance stock units | Long Term Incentive Plan 2016 - 2018 | Scenario, Forecast | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity awards vested (in shares) | 48,459 | |||||||||||
Performance stock units | Long Term Incentive Plan 2017 - 2019 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of performance units, earned (in shares) | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Information for the Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 495,704 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (210,125) | ||
Expired (in shares) | 0 | ||
Canceled (in shares) | 0 | ||
Outstanding, Ending Balance (in shares) | 285,579 | 495,704 | |
Exercisable, Ending Balance (in shares) | 285,579 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) | $ 21.24 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 20.10 | ||
Expired (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 0 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | 22.08 | $ 21.24 | |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 22.08 | ||
Aggregate Intrinsic Value, Outstanding | $ 3,790 | ||
Aggregate Intrinsic Value, Exercisable | $ 3,790 | ||
Granted (in dollars per share) | $ 0 | $ 0 | |
Aggregate intrinsic value of options exercised | $ 4,194 | $ 2,640 | $ 20,100 |
Weighted average grant-date fair value of shares vested | $ 1,400 | $ 2,633 | $ 4,602 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Granted (in dollars per share) | $ 0 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Granted (in dollars per share) | $ 38.33 | $ 36.02 | $ 36.35 |
Weighted average grant-date fair value of shares vested | $ 5,627 | $ 3,195 | $ 2,629 |
Stock- Based Compensation - Seg
Stock- Based Compensation - Segregated Disclosure of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 285,579 | 495,704 |
Weighted average exercise price (in dollars per share) | $ 22.08 | $ 21.24 |
Remaining contractual life (in years) | 4 years 9 months 18 days | |
Options exercisable (in shares) | 285,579 | |
Weighted average exercise price (in dollars per share) | $ 22.08 | |
Option exercise price, minimum (in dollars per share) | 15.63 | |
Option exercise price, maximum (in dollars per share) | $ 15.63 | |
Less than or equal to $15.63 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 47,501 | |
Weighted average exercise price (in dollars per share) | $ 12.86 | |
Remaining contractual life (in years) | 3 years 3 months 18 days | |
Options exercisable (in shares) | 47,501 | |
Weighted average exercise price (in dollars per share) | $ 12.44 | |
Greater than $15.63 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 238,078 | |
Weighted average exercise price (in dollars per share) | $ 23.72 | |
Remaining contractual life (in years) | 5 years 1 month 6 days | |
Options exercisable (in shares) | 238,078 | |
Weighted average exercise price (in dollars per share) | $ 24 |
Stock-Based Compensation - Deta
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted (in dollars per share) | $ 0 | $ 0 | |
Granted (in dollars per share) | $ 0 | $ 0 | |
Weighted average grant-date fair value of shares vested | $ 1,400 | $ 2,633 | $ 4,602 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance (in shares) | 240,574 | ||
Granted (in shares) | 103,207 | ||
Vested (in shares) | (157,344) | ||
Canceled (in shares) | (8,479) | ||
Accrued dividend equivalents (in shares) | 2,430 | ||
Ending Balance (in shares) | 180,388 | 240,574 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance (in dollars per share) | $ 35.75 | ||
Granted (in dollars per share) | 38.33 | $ 36.02 | $ 36.35 |
Vested (in dollars per share) | 35.76 | ||
Canceled (in dollars per share) | 37.76 | ||
Accrued dividend equivalents (in dollars per share) | 36.70 | ||
Ending Balance (in dollars per share) | 37.14 | 35.75 | |
Granted (in dollars per share) | $ 38.33 | $ 36.02 | $ 36.35 |
Weighted average grant-date fair value of shares vested | $ 5,627 | $ 3,195 | $ 2,629 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Units Earned under Long-Term Incentive Plan (Detail) - Performance stock units | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (in shares) | shares | 163,967 |
Vested (in shares) | shares | (114,569) |
Canceled (in shares) | shares | (2,309) |
Accrued dividend equivalents (in shares) | shares | 1,962 |
Ending Balance (in shares) | shares | 49,051 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance (in dollars per share) | $ 36.77 |
Earned (in dollars per share) | 0 |
Vested (in dollars per share) | 36.77 |
Canceled (in dollars per share) | 36.77 |
Accrued dividend equivalents (in dollars per share) | 36.77 |
Ending Balance (in dollars per share) | $ 36.76 |
Changes in Accumulated Other 88
Changes in Accumulated Other Comprehensive Loss by Component - Cumulative Other Comprehensive Loss in Accompanying Consolidated Statements of Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,076,014 | ||
Other comprehensive (loss) income before reclassifications | 42,768 | $ (95,541) | |
Foreign currency translation effect | (7,855) | 13,152 | |
Income tax effect | 2,014 | 11,711 | |
Cash flow hedges | 3,619 | 100 | |
Amortization of prior service credit | (566) | (566) | $ (566) |
Amortization of actuarial losses | 42,570 | 43,624 | 46,736 |
Pension settlement charges | 12,262 | ||
Income tax effect | (15,877) | (20,126) | |
Other comprehensive (loss) income | 66,673 | (35,384) | |
Ending balance | 1,127,096 | 1,076,014 | |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (75,415) | (22,034) | |
Other comprehensive (loss) income before reclassifications | 35,475 | (53,381) | |
Foreign currency translation effect | 0 | 0 | |
Income tax effect | 0 | 0 | |
Cash flow hedges | 0 | 0 | |
Amortization of prior service credit | 0 | 0 | |
Amortization of actuarial losses | 0 | 0 | |
Pension settlement charges | 0 | ||
Income tax effect | 0 | 0 | |
Other comprehensive (loss) income | 35,475 | (53,381) | |
Ending balance | (39,940) | (75,415) | (22,034) |
Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 1,967 | 3,454 | |
Other comprehensive (loss) income before reclassifications | (6,092) | (2,471) | |
Foreign currency translation effect | 0 | 0 | |
Income tax effect | 1,823 | 941 | |
Cash flow hedges | 3,619 | 100 | |
Amortization of prior service credit | 0 | 0 | |
Amortization of actuarial losses | 0 | 0 | |
Pension settlement charges | 0 | ||
Income tax effect | (968) | (57) | |
Other comprehensive (loss) income | (1,618) | (1,487) | |
Ending balance | 349 | 1,967 | 3,454 |
Post- retirement Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (471,703) | (491,187) | |
Other comprehensive (loss) income before reclassifications | 13,385 | (39,689) | |
Foreign currency translation effect | (7,855) | 13,152 | |
Income tax effect | 191 | 10,770 | |
Cash flow hedges | 0 | 0 | |
Amortization of prior service credit | (566) | (566) | |
Amortization of actuarial losses | 42,570 | 43,624 | |
Pension settlement charges | 12,262 | ||
Income tax effect | (14,909) | (20,069) | |
Other comprehensive (loss) income | 32,816 | 19,484 | |
Ending balance | (438,887) | (471,703) | (491,187) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (545,151) | (509,767) | |
Ending balance | $ (478,478) | $ (545,151) | $ (509,767) |
Comprehensive Income Attribut89
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Net income attributable to noncontrolling shareholders' interests | $ 1,345 | $ 2,913 | $ 3,038 |
Other comprehensive loss: | |||
Currency translation adjustments | 3,375 | (4,573) | (4,227) |
Comprehensive income (loss) attributable to noncontrolling shareholders’ interests | $ 4,720 | $ (1,660) | $ (1,189) |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rental expense including long term leases and all other rentals | $ 53,532 | $ 41,397 | $ 39,290 |
Future minimum payments non-cancelable leases | $ 132,744 |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Payments for all Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 26,895 |
2,019 | 24,664 |
2,020 | 22,218 |
2,021 | 14,791 |
2,022 | 10,863 |
Thereafter | $ 33,313 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) Tire in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Tire | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 30 | ||
Maximum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 35 | ||
Estimated number of Company produced tires of different specifications | Tire | 300 | ||
Product liability expenses, minimum | $ 0 | ||
Product liability expenses, maximum | 33,000,000 | ||
Increase in product liability reserve due to self insured incidents | 48,039,000 | ||
Settlements and changes in amount of reserves estimated liability increase (decrease) | 38,938,000 | ||
Company paid to resolve cases and claims | 55,671,000 | $ 31,697,000 | |
Product liability reserve balance | 129,892,000 | 176,995,000 | |
Current portion product liability reserve balance | 44,700,000 | 58,054,000 | |
Product liability expenses | $ 25,970,000 | $ 65,448,000 | $ 78,800,000 |
Workforce subject to collective bargaining units (as a percent) | 40.00% |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017StoreSegment | Dec. 31, 2016 | Dec. 01, 2016 | |
Business Acquisition [Line Items] | |||
Number of reportable segments | 4 | ||
Number of stores | Store | 3 | ||
Number of segments combined | 2 | ||
GRT Acquisition | |||
Business Acquisition [Line Items] | |||
Ownership interest (as a percent) | 65.00% | 65.00% |
Business Segments - Net Sales a
Business Segments - Net Sales and Percentage of Consolidated Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | |||||||||||
Net sales | $ 757,035 | $ 733,843 | $ 720,753 | $ 643,025 | $ 783,887 | $ 750,913 | $ 740,294 | $ 649,775 | $ 2,854,656 | $ 2,924,869 | $ 2,972,901 |
Customer Concentration Risk | Net Sales | |||||||||||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | |||||||||||
Net sales | $ 304,840 | $ 414,556 | $ 485,257 | ||||||||
Consolidated Net Sales | 11.00% | 14.00% | 16.00% |
Business Segments - Segment Fin
Business Segments - Segment Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 757,035 | $ 733,843 | $ 720,753 | $ 643,025 | $ 783,887 | $ 750,913 | $ 740,294 | $ 649,775 | $ 2,854,656 | $ 2,924,869 | $ 2,972,901 |
Operating Profit | 46,844 | 101,377 | 74,832 | 48,670 | 105,138 | 78,228 | 109,916 | 91,104 | 271,724 | 384,387 | 354,480 |
Interest expense | (8,419) | (7,591) | (8,210) | (7,827) | (6,887) | (6,795) | (6,286) | (6,636) | (32,048) | (26,604) | (23,820) |
Interest income | 2,029 | 1,776 | 1,755 | 1,802 | 1,471 | 1,018 | 948 | 940 | 7,362 | 4,378 | 2,211 |
Other non-operating (expense) income | (1,645) | (978) | (255) | (235) | 260 | 1,785 | 1,427 | 1,462 | (3,113) | 4,932 | 1,157 |
Income before income taxes | 38,809 | 94,584 | 68,122 | 42,410 | 99,982 | 74,236 | 106,005 | 86,870 | 243,925 | 367,093 | 334,028 |
Depreciation and amortization expense | 140,228 | 130,257 | 121,408 | ||||||||
Segment assets | 2,607,735 | 2,619,395 | 2,607,735 | 2,619,395 | 2,436,176 | ||||||
Expenditures for long-lived assets | 197,186 | 175,437 | 182,544 | ||||||||
Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,376,808 | 2,549,743 | 2,627,619 | ||||||||
International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 477,848 | 375,126 | 345,282 | ||||||||
Operating Segments | Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 644,639 | 625,423 | 615,356 | 531,360 | 693,624 | 672,641 | 654,721 | 579,338 | 2,416,778 | 2,600,323 | 2,684,754 |
Operating Profit | 60,742 | 117,465 | 83,293 | 63,193 | 116,273 | 101,522 | 116,093 | 106,052 | 324,693 | 439,941 | 422,929 |
Depreciation and amortization expense | 91,324 | 85,842 | 92,377 | ||||||||
Segment assets | 1,462,757 | 1,438,802 | 1,462,757 | 1,438,802 | 1,386,361 | ||||||
Expenditures for long-lived assets | 109,175 | 112,975 | 145,813 | ||||||||
Operating Segments | International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 162,189 | 163,345 | 151,370 | 141,964 | 124,310 | 112,789 | 123,678 | 103,226 | 618,869 | 464,003 | 451,879 |
Operating Profit | 5,938 | 591 | 1,274 | 1,653 | 1,353 | 3,265 | 3,152 | (1,772) | 9,457 | 5,998 | (19,133) |
Depreciation and amortization expense | 33,303 | 30,470 | 28,577 | ||||||||
Segment assets | 690,572 | 547,178 | 690,572 | 547,178 | 414,051 | ||||||
Expenditures for long-lived assets | 89,008 | 60,359 | 33,839 | ||||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (49,793) | (54,925) | (45,973) | (30,299) | (34,047) | (34,517) | (38,105) | (32,789) | (180,991) | (139,457) | (163,732) |
Operating Profit | (414) | (887) | (174) | (352) | (370) | (117) | (599) | (157) | (1,827) | (1,244) | 3,026 |
Intercompany | Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 39,970 | 50,580 | 57,135 | ||||||||
Intercompany | International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 141,021 | 88,877 | 106,597 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Profit | (19,422) | $ (15,792) | $ (9,561) | $ (15,824) | (12,118) | $ (26,442) | $ (8,730) | $ (13,019) | (60,599) | (60,308) | (52,342) |
Depreciation and amortization expense | 15,601 | 13,945 | 454 | ||||||||
Segment assets | $ 454,406 | $ 633,415 | 454,406 | 633,415 | 635,764 | ||||||
Expenditures for long-lived assets | $ (997) | $ 2,103 | $ 2,892 |
Business Segments - Geographic
Business Segments - Geographic Information for Revenues, Based on Country of Origin, and Long-Lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 757,035 | $ 733,843 | $ 720,753 | $ 643,025 | $ 783,887 | $ 750,913 | $ 740,294 | $ 649,775 | $ 2,854,656 | $ 2,924,869 | $ 2,972,901 |
Long-lived assets | 967,992 | 864,227 | 967,992 | 864,227 | 795,198 | ||||||
Operating Segments | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,240,882 | 2,423,932 | 2,518,089 | ||||||||
Long-lived assets | 568,215 | 547,599 | 568,215 | 547,599 | 537,173 | ||||||
Operating Segments | PRC | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 263,540 | 166,289 | 126,674 | ||||||||
Long-lived assets | 219,289 | 157,858 | 219,289 | 157,858 | 105,237 | ||||||
Operating Segments | Rest of world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 350,234 | 334,648 | 328,138 | ||||||||
Long-lived assets | $ 180,488 | $ 158,770 | $ 180,488 | $ 158,770 | $ 152,788 |
Selected Quarterly Data (Detail
Selected Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 757,035 | $ 733,843 | $ 720,753 | $ 643,025 | $ 783,887 | $ 750,913 | $ 740,294 | $ 649,775 | $ 2,854,656 | $ 2,924,869 | $ 2,972,901 |
Gross profit | 110,994 | 164,727 | 130,840 | 109,918 | 169,300 | 152,952 | 179,669 | 150,429 | 516,503 | 652,350 | 617,450 |
Net income (loss) attributable to Cooper Tire & Rubber Company | $ (42,158) | $ 61,687 | $ 45,310 | $ 30,561 | $ 69,324 | $ 49,303 | $ 70,749 | $ 59,005 | $ 95,400 | $ 248,381 | $ 212,766 |
Basic earnings (loss) per share attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ (0.82) | $ 1.19 | $ 0.86 | $ 0.58 | $ 1.30 | $ 0.91 | $ 1.29 | $ 1.06 | $ 1.83 | $ 4.56 | $ 3.73 |
Diluted earnings (loss) per share attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ (0.82) | $ 1.18 | $ 0.85 | $ 0.57 | $ 1.28 | $ 0.90 | $ 1.27 | $ 1.05 | $ 1.81 | $ 4.51 | $ 3.69 |
Operating Profit | $ 46,844 | $ 101,377 | $ 74,832 | $ 48,670 | $ 105,138 | $ 78,228 | $ 109,916 | $ 91,104 | $ 271,724 | $ 384,387 | $ 354,480 |
Interest expense | (8,419) | (7,591) | (8,210) | (7,827) | (6,887) | (6,795) | (6,286) | (6,636) | (32,048) | (26,604) | (23,820) |
Interest income | 2,029 | 1,776 | 1,755 | 1,802 | 1,471 | 1,018 | 948 | 940 | 7,362 | 4,378 | 2,211 |
Other non-operating (expense) income | (1,645) | (978) | (255) | (235) | 260 | 1,785 | 1,427 | 1,462 | (3,113) | 4,932 | 1,157 |
Income before income taxes | 38,809 | 94,584 | 68,122 | 42,410 | 99,982 | 74,236 | 106,005 | 86,870 | 243,925 | 367,093 | 334,028 |
Net income | (41,120) | 62,660 | 45,824 | 29,381 | 70,692 | 50,479 | 71,351 | 58,772 | 96,745 | 251,294 | 215,804 |
Unallocated corporate charges | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Operating Profit | (19,422) | (15,792) | (9,561) | (15,824) | (12,118) | (26,442) | (8,730) | (13,019) | (60,599) | (60,308) | (52,342) |
Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | (49,793) | (54,925) | (45,973) | (30,299) | (34,047) | (34,517) | (38,105) | (32,789) | (180,991) | (139,457) | (163,732) |
Operating Profit | (414) | (887) | (174) | (352) | (370) | (117) | (599) | (157) | (1,827) | (1,244) | 3,026 |
Americas Tire | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 2,376,808 | 2,549,743 | 2,627,619 | ||||||||
Americas Tire | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 644,639 | 625,423 | 615,356 | 531,360 | 693,624 | 672,641 | 654,721 | 579,338 | 2,416,778 | 2,600,323 | 2,684,754 |
Operating Profit | 60,742 | 117,465 | 83,293 | 63,193 | 116,273 | 101,522 | 116,093 | 106,052 | 324,693 | 439,941 | 422,929 |
Americas Tire | Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 39,970 | 50,580 | 57,135 | ||||||||
International Tire | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 477,848 | 375,126 | 345,282 | ||||||||
International Tire | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 162,189 | 163,345 | 151,370 | 141,964 | 124,310 | 112,789 | 123,678 | 103,226 | 618,869 | 464,003 | 451,879 |
Operating Profit | $ 5,938 | $ 591 | $ 1,274 | $ 1,653 | $ 1,353 | $ 3,265 | $ 3,152 | $ (1,772) | 9,457 | 5,998 | (19,133) |
International Tire | Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 141,021 | $ 88,877 | $ 106,597 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 7,290 | $ 7,533 | $ 8,792 |
Charged to Income | 1,799 | 1,693 | 1,178 |
Charged to Equity | 0 | 0 | 0 |
Acquisition of business | 0 | 3 | 0 |
Deductions | 1,519 | 1,939 | 2,437 |
Balance at End of Year | 7,570 | 7,290 | 7,533 |
Tax valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 20,228 | 15,103 | 33,303 |
Charged to Income | 20,536 | 291 | 680 |
Charged to Equity | (2,828) | 0 | 0 |
Acquisition of business | (1,057) | 7,484 | 0 |
Deductions | 6,777 | 2,650 | 18,880 |
Balance at End of Year | $ 30,102 | $ 20,228 | $ 15,103 |