Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CTB | |
Entity Registrant Name | COOPER TIRE & RUBBER COMPANY | |
Entity Central Index Key | 24,491 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 50,059,790 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 698,408 | $ 720,753 | $ 1,299,904 | $ 1,363,778 |
Cost of products sold | 604,185 | 581,202 | 1,121,196 | 1,105,642 |
Gross profit | 94,223 | 139,551 | 178,708 | 258,136 |
Selling, general and administrative expense | 61,460 | 55,350 | 119,490 | 115,941 |
Operating profit | 32,763 | 84,201 | 59,218 | 142,195 |
Interest expense | (8,417) | (8,210) | (16,108) | (16,037) |
Interest income | 1,988 | 1,755 | 4,303 | 3,557 |
Other pension and postretirement benefit expense | (6,967) | (9,369) | (13,953) | (18,693) |
Other non-operating expense | (1,391) | (255) | (3,050) | (491) |
Income before income taxes | 17,976 | 68,122 | 30,410 | 110,531 |
Provision for income taxes | 2,267 | 22,298 | 5,718 | 35,325 |
Net income | 15,709 | 45,824 | 24,692 | 75,206 |
Net income (loss) attributable to noncontrolling shareholders' interests | 701 | 514 | 1,400 | (666) |
Net income attributable to Cooper Tire & Rubber Company | $ 15,008 | $ 45,310 | $ 23,292 | $ 75,872 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.86 | $ 0.46 | $ 1.44 |
Diluted (in dollars per share) | 0.30 | 0.85 | 0.46 | 1.42 |
Cash dividends declared per share (in dollars per share) | $ 0.105 | $ 0.105 | $ 0.21 | $ 0.21 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,709 | $ 45,824 | $ 24,692 | $ 75,206 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (35,851) | 14,184 | (10,982) | 29,572 |
Financial instruments: | ||||
Change in the fair value of derivatives | 470 | (2,678) | 2,610 | (3,077) |
Income tax (provision) benefit on derivative instruments | (159) | 958 | (747) | 1,111 |
Financial instruments, net of tax | 311 | (1,720) | 1,863 | (1,966) |
Postretirement benefit plans: | ||||
Amortization of actuarial loss | 9,320 | 10,631 | 18,666 | 21,222 |
Amortization of prior service credit | (135) | (142) | (270) | (283) |
Income tax provision on postretirement benefit plans | (2,206) | (3,725) | (4,416) | (7,444) |
Foreign currency translation effect | 4,082 | (3,702) | 1,180 | (4,567) |
Postretirement benefit plans, net of tax | 11,061 | 3,062 | 15,160 | 8,928 |
Other comprehensive (loss) income | (24,479) | 15,526 | 6,041 | 36,534 |
Comprehensive (loss) income | (8,770) | 61,350 | 30,733 | 111,740 |
Less: comprehensive (loss) income attributable to noncontrolling shareholders' interests | (4,382) | 1,822 | 261 | 3,513 |
Comprehensive (loss) income attributable to Cooper Tire & Rubber Company | $ (4,388) | $ 59,528 | $ 30,472 | $ 108,227 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 180,493 | $ 371,684 |
Notes receivable | 24,022 | 13,753 |
Accounts receivable, less allowances of $6,972 at 2018 and $7,570 at 2017 | 582,524 | 528,250 |
Inventories: | ||
Finished goods | 423,506 | 365,672 |
Work in process | 31,307 | 31,000 |
Raw materials and supplies | 125,282 | 115,085 |
Inventories | 580,095 | 511,757 |
Other current assets | 59,600 | 63,063 |
Total current assets | 1,426,734 | 1,488,507 |
Property, plant and equipment: | ||
Land and land improvements | 53,292 | 52,683 |
Buildings | 310,544 | 311,199 |
Machinery and equipment | 1,925,381 | 1,890,210 |
Molds, cores and rings | 233,359 | 220,528 |
Total property, plant and equipment | 2,522,576 | 2,474,620 |
Less: accumulated depreciation | 1,558,418 | 1,507,873 |
Property, plant and equipment, net | 964,158 | 966,747 |
Goodwill | 53,960 | 54,613 |
Intangibles, net of accumulated amortization of $104,405 at 2018 and $93,353 at 2017 | 125,979 | 133,256 |
Deferred income tax assets | 54,006 | 58,665 |
Other assets | 7,942 | 6,137 |
Total assets | 2,632,779 | 2,707,925 |
Current liabilities: | ||
Notes payable | 47,378 | 39,450 |
Accounts payable | 240,506 | 277,060 |
Accrued liabilities | 262,233 | 280,666 |
Income taxes payable | 2,295 | 6,954 |
Current portion of long-term debt | 1,398 | 1,413 |
Total current liabilities | 553,810 | 605,543 |
Long-term debt | 295,017 | 295,987 |
Postretirement benefits other than pensions | 255,527 | 256,888 |
Pension benefits | 198,421 | 219,534 |
Other long-term liabilities | 152,736 | 144,217 |
Equity: | ||
Preferred stock, $1 par value; 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $1 par value; 300,000,000 shares authorized; 87,850,292 shares issued | 87,850 | 87,850 |
Capital in excess of par value | 19,365 | 20,740 |
Retained earnings | 2,406,943 | 2,394,372 |
Accumulated other comprehensive loss | (471,298) | (478,478) |
Parent stockholders' equity before treasury stock | 2,042,860 | 2,024,484 |
Less: common shares in treasury at cost (37,761,516 at 2018 and 36,908,553 at 2017) | (924,513) | (897,388) |
Total parent stockholders’ equity | 1,118,347 | 1,127,096 |
Noncontrolling shareholders' interests in consolidated subsidiaries | 58,921 | 58,660 |
Total equity | 1,177,268 | 1,185,756 |
Total liabilities and equity | $ 2,632,779 | $ 2,707,925 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 6,972 | $ 7,570 |
Accumulated amortization of intangibles | $ 104,405 | $ 93,353 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 87,850,292 | 87,850,292 |
Treasury stock, shares (in shares) | 37,761,516 | 36,908,553 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||
Net income | $ 24,692 | $ 75,206 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 73,587 | 70,676 |
Stock-based compensation | 2,627 | 2,575 |
Change in LIFO inventory reserve | 2,411 | (3,484) |
Amortization of unrecognized postretirement benefits | 18,396 | 20,939 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (68,485) | (61,691) |
Inventories | (74,104) | (94,490) |
Other current assets | (12,572) | (15,541) |
Accounts payable | (12,622) | (23,202) |
Accrued liabilities | (13,970) | (21,011) |
Other items | (18,599) | (33,223) |
Net cash used in operating activities | (78,639) | (83,246) |
Investing activities: | ||
Additions to property, plant and equipment and capitalized software | (97,759) | (89,803) |
Proceeds from the sale of assets | 160 | 43 |
Net cash used in investing activities | (97,599) | (89,760) |
Financing activities: | ||
Net issuances of (payments on) short-term debt | 10,718 | (359) |
Repayments of long-term debt | (1,013) | (600) |
Payment of financing fees | (1,230) | 0 |
Repurchase of common stock | (29,355) | (38,567) |
Payments of employee taxes withheld from shared-based awards | (1,894) | (6,429) |
Payment of dividends to Cooper Tire & Rubber Company stockholders | (10,623) | (11,081) |
Issuance of common shares related to stock-based compensation | 270 | 4,122 |
Net cash used in financing activities | (33,127) | (52,914) |
Effects of exchange rate changes on cash | 1,344 | 6,008 |
Net change in cash, cash equivalents and restricted cash | (208,021) | (219,912) |
Cash, cash equivalents and restricted cash at beginning of year | 392,306 | 524,249 |
Cash, cash equivalents and restricted cash at end of period | $ 184,285 | $ 304,337 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. There is a year-round demand for passenger car and truck replacement tires, but passenger car replacement tire sales are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the six month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 . The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. Truck and Bus Tire Tariffs Antidumping and countervailing duty investigations into certain truck and bus tires imported from the People's Republic of China ("PRC") into the United States were initiated on January 29, 2016. The preliminary determinations announced in both investigations were affirmative and resulted in the imposition of significant additional duties from each. The Company incurred expense of $22,042 over the final seven months of the year ended December 31, 2016 related to these additional duties. On February 22, 2017, the United States ("U.S.") International Trade Commission determined the U.S. market had not suffered material injury because of imports of truck and bus tires from China. As a result of this decision, preliminary antidumping and countervailing duties from Chinese truck and bus tires imported subsequent to the preliminary determination were not to be collected and any amounts previously paid were refunded by U.S. Customs and Border Protection. Further, prospective imports of truck and bus tires from the PRC are not subject to these additional duties. In the first quarter of 2017, the Company reversed the previously expensed preliminary duties of $22,042 due to the decision by the U.S. International Trade Commission. This amount was recorded as a reduction of Cost of products sold in the Condensed Consolidated Statement of Income for the six month period ended June 30, 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 losses the Company suffered. The Company's insurance policies also provide coverage for interruption to its business, including lost profits, and reimbursement for other expenses and costs that have been incurred relating to the damages and losses suffered. In the second quarter of 2017, the Company recorded insurance recoveries of $5,500 for direct costs caused by the tornado, while incurring direct costs of $1,974 related to the disposal of damaged tires, freight to move product to other warehouses and professional fees to secure and maintain the site. For the six months ended June 30, 2017, the Company incurred direct expenses of $8,772 related to damages caused by the tornado, less proceeds of $5,500 recovered from insurance. For the full year 2017, the Company incurred direct expenses of $12,569 , less proceeds of $7,000 recovered from insurance. In the second quarter of 2018, the Company recorded insurance recoveries of $2,987 , while incurring direct costs of $325 . For the six months ended June 30, 2018, the Company recorded insurance recoveries of $6,796 , while incurring direct costs of $1,539 . These amounts were recorded as a component of Cost of products sold in the Condensed Consolidated Statements of Income for the three and six month periods ended June 30, 2018 and 2017 , respectively, and the year ended December 31, 2017. At this time, the full amount of insurance recoveries cannot be estimated, and accordingly, no additional amounts have been recorded as of June 30, 2018 . Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (the “new revenue standard”), which supersedes previous revenue recognition guidance, including industry-specific guidance, and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. The Company adopted the new revenue standard as of January 1, 2018 using the modified retrospective transition method. See Note 2 for additional details. 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. The Company adopted the new standard as of January 1, 2018 and revised prior periods in accordance with the standard. See Note 9 for additional details. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, "Restricted Cash," which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The new standard also requires companies to disclose the nature of the restriction on restricted cash. The Company adopted the new standard as of January 1, 2018 and revised prior periods in accordance with the standard. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same such amounts reported within the Condensed Consolidated Statements of Cash Flows: June 30, June 30, December 31, 2017 December 31, 2016 Cash and cash equivalents $ 180,493 $ 302,386 $ 371,684 $ 504,423 Restricted cash included in Other current assets 1,702 614 19,200 18,499 Restricted cash included in Other assets 2,090 1,337 1,422 1,327 Total cash, cash equivalents and restricted cash $ 184,285 $ 304,337 $ 392,306 $ 524,249 Restricted cash is comprised primarily of funds within a voluntary employees' beneficiary trust restricted to the future payment of employee benefit obligations and amounts on deposit to collateralize certain credit arrangements in the PRC. Accounting Pronouncements – To Be Adopted 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. The Company plans to adopt the new standard on its effective date of January 1, 2019. The FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients and other improvements to ASU 2016-02. The Company expects the most significant impact of the standard will be the recognition of right of use assets and lease liabilities as part of its condensed consolidated balance sheets. The Company is currently evaluating the impact of the new standard, including optional practical expedients, and assessing its existing lease portfolio to determine the impact of adoption on its condensed consolidated financial statements and the related disclosures. The Company is also evaluating new controls and processes designed to meet the requirements of the topic. Goodwill In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The standard requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. 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 condensed consolidated financial statements. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which provides for an election to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and has not yet determined whether it will make the election to reclassify its stranded tax effects. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Accounting policy On January 1, 2018, the Company adopted the new revenue standard using the modified retrospective transition method applied to contracts which were not completed as of January 1, 2018. Results from reporting periods beginning after January 1, 2018 are presented under the new revenue standard while prior period amounts are not adjusted and continue to be reported under previous revenue recognition guidance. The new revenue standard requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. In accordance with the new revenue standard, revenue is measured based on the consideration specified in a contract with a customer, and excludes any sales incentives or rebates. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. This occurs with shipment or delivery, depending on the terms of the underlying contract. The transaction price will include estimates of variable consideration to the extent it is probable that a significant reversal of revenue recognized will not occur. At the time of sale, the Company estimates provisions for different forms of variable consideration (discounts and rebates) based on historical experience, current conditions and contractual obligations, as applicable. Payment terms with customers vary by region and customer, but are generally 30-90 days. The Company does not have significant financing components or significant payment terms. Incidental items that are immaterial in the context of the contract are expensed as incurred. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control of a product has transferred to a customer are accounted for as a fulfillment cost and not as a separate performance obligation. Therefore, such items are accrued upon recognition of revenue. Nature of goods and services The following is a description of principal activities, separated by reportable segments, from which the Company generates its revenue. The Company’s reportable segments have the following revenue characteristics: • Americas Tire Operations - The Americas Tire Operations segment manufactures and markets passenger car and light truck tires. The segment also markets and distributes racing, motorcycle and truck and bus radial ("TBR") tires. • International Tire Operations - The International Tire Operations segment manufactures and markets passenger car, light truck, motorcycle, racing, and TBR tires and tire retread material for global markets. See Note 16 - Business Segments for additional details. Disaggregation of revenue In the following tables, revenue is disaggregated by major market channel for the three and six month periods ended June 30, 2018 : Three Months Ended June 30, 2018 Americas International Eliminations Total Light vehicle (1) $ 527,284 $ 122,872 $ (31,423 ) $ 618,733 Truck and bus radial 43,573 26,527 (22,420 ) 47,680 Other (2) 13,555 18,440 — 31,995 Net sales $ 584,412 $ 167,839 $ (53,843 ) $ 698,408 Six Months Ended June 30, 2018 Americas International Eliminations Total Light vehicle (1) $ 960,668 $ 244,213 $ (56,373 ) $ 1,148,508 Truck and bus radial 85,034 53,116 (42,610 ) 95,540 Other (2) 24,102 31,754 — 55,856 Net sales $ 1,069,804 $ 329,083 $ (98,983 ) $ 1,299,904 (1) Light vehicle includes passenger car and light truck tires (2) Other includes motorcycle and racing tires, wheels, tire retread material, and other items Contract balances The following table provides information about contract liabilities from contracts with customers. June 30, 2018 December 31, 2017 Contract liabilities $ 2,055 $ 1,111 The contract liabilities relate to customer payments received in advance of shipment. As the Company does not generally have rights to consideration for work completed but not billed at the reporting date, the Company does not have any contract assets. Accounts receivable are not considered contract assets under the new revenue standard as contract assets are conditioned upon the Company's future satisfaction of a performance obligation. Accounts receivable, in contrast, are unconditional rights to consideration. Significant changes in the contract liabilities balance during the period are as follows: Deferred revenue Deferred revenue at beginning of year $ 1,111 Increases due to cash received from customers 5,980 Decreases due to recognition of revenue (5,036 ) Deferred revenue at June 30, 2018 $ 2,055 Transaction price allocated to remaining performance obligations For the three and six month periods ended June 30, 2018 , revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, is not material. The Company applies the practical expedient in ASC 606 "Revenue from Contracts with Customers" and does not disclose information about remaining performance obligations that have original expected durations of one year or less. Changes in accounting policies The Company adopted ASC 606 with a date of initial application of January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The guidance has been applied to all contracts at the date of initial application. There were no significant changes to the Company's accounting for revenue following the adoption of the new revenue standard. Impacts on financial statements Aside from the enhanced disclosures, adoption of the new revenue standard had no impact on the Company's Condensed Consolidated Statement of Income. The Company has reclassified its volume and customer rebate programs from a contra-asset included within Accounts receivable to a liability within Accrued liabilities on the Condensed Consolidated Balance Sheets. The table below summarizes the impact to the balance sheet as of December 31, 2017 : As Adjusted Effect of Change Previously Reported Accounts receivable, less allowances $ 528,250 $ 100,190 $ 428,060 Accrued liabilities 280,666 100,190 180,476 |
GRT Acquisition
GRT Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
GRT Acquisition | GRT Acquisition On January 4, 2016, the Company announced that it had entered into an agreement to purchase a majority of China-based Qingdao Ge Rui Da Rubber Co., Ltd. ("GRT"). In the first quarter of 2016, the Company made a down payment in the amount of $5,929 for this transaction in accordance with the purchase agreement. The down payment was fully refundable in the event that the transaction did not close and did not provide the Company with any power to direct the activities of the existing GRT entity prior to the transaction closing. After the transaction closed on December 1, 2016, the Company 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 serves 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 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 Inventories 7,983 485 8,468 Other current assets 981 — 981 Property, plant and 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 Note 6. The Company utilized a third party to assist in the fair value determination of certain components of the purchase price allocation, namely Property, plant and equipment and the Noncontrolling shareholder interest. The valuation of Property, plant and equipment was developed using primarily the cost approach. The fair value of the Noncontrolling shareholder interest was determined based upon internal and external inputs considering various relevant market transactions and discounted cash flow valuation methods, among other factors. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 15,008 $ 45,310 $ 23,292 $ 75,872 Denominator Denominator for basic earnings per share - weighted average shares outstanding 50,436 52,796 50,636 52,815 Effect of dilutive securities - stock options and other stock units 154 395 247 542 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 50,590 53,191 50,883 53,357 Earnings per share: Basic $ 0.30 $ 0.86 $ 0.46 $ 1.44 Diluted $ 0.30 $ 0.85 $ 0.46 $ 1.42 All options to purchase shares of the Company’s common stock were included in the computation of diluted earnings per share as the options’ exercise prices were less than the average market price of the common shares at both June 30, 2018 and 2017 . |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory costs are determined using the last-in, first-out (“LIFO”) method for substantially all U.S. inventories. The current cost of the U.S. inventories under the first-in, first-out (“FIFO”) method was $ 489,729 and $ 415,640 at June 30, 2018 and December 31, 2017 , respectively. These FIFO values have been reduced by approximately $ 90,505 and $ 88,094 at June 30, 2018 and December 31, 2017 , respectively, to arrive at the LIFO value reported on the Condensed 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. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 2017 was $ 174,924 and $ 134,530 , 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 $ 180 and $ (2,640) as of June 30, 2018 and December 31, 2017 , respectively) are recorded as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets and reclassified into earnings as the hedged transactions occur. The Company 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 stockholders' 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 Condensed Consolidated Statements of Income in the period in which the ineffectiveness occurs. The derivative instruments are subject to master netting arrangements with the counterparties to the contracts. The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: June 30, 2018 December 31, 2017 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ (1,717 ) $ (2,808 ) Gross amounts offset 1,897 168 Net amounts $ 180 $ (2,640 ) Not designated as hedging instruments: Gross amounts recognized (556 ) (684 ) Gross amounts offset 291 97 Net amounts $ (265 ) $ (587 ) Net amounts presented: Other current assets (accrued liabilities) $ 1,472 $ (1,893 ) Other long-term liabilities $ (1,557 ) $ (1,334 ) The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended Derivatives Designated as Cash Flow Hedges 2018 2017 2018 2017 Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 2,062 $ (2,335 ) $ 2,708 $ (2,724 ) Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 1,592 343 98 353 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended Six months ended June 30, June 30, Derivatives not Designated as Hedging Instruments 2018 2017 2018 2017 Foreign exchange contracts Other non-operating expense $ 2,324 $ (759 ) $ 43 $ (1,405 ) 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 expense. The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within the different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial 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 June 30, 2018 and December 31, 2017 , 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 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 June 30, 2018 and December 31, 2017 : June 30, 2018 Total Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Currency Derivative Instruments $ (85 ) $ — $ (85 ) $ — Stock-based Liabilities $ (12,077 ) $ (12,077 ) $ — $ — December 31, 2017 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 Currency Derivative Instruments $ (3,227 ) $ — $ (3,227 ) $ — Stock-based Liabilities $ (16,713 ) $ (16,713 ) $ — $ — The fair market value of Cash and cash equivalents, Notes receivable, Restricted cash included in Other current assets , Restricted cash included in Other assets , Notes payable and Current portion of long-term debt at June 30, 2018 and December 31, 2017 are equal to their corresponding carrying values as reported on the Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 , 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 $ 318,418 and $ 329,329 at June 30, 2018 and December 31, 2017 , respectively, and is classified within Level 1 of the fair value hierarchy. The carrying value of Long-term debt is $295,017 and $295,987 as reported on the Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 , respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three month period ended June 30, 2018 , the Company recorded a provision for income taxes of $2,267 (effective tax rate of 12.6 percent ) compared to $22,298 (effective tax rate of 32.7 percent ) for the same period in 2017 . For the six month period ended June 30, 2018, the Company recorded a provision for income taxes of $5,718 (effective tax rate of 18.8 percent ) compared to $35,325 (effective tax rate of 32.0 percent ) for the same period in 2017. The 2018 and 2017 three and six month period provisions for income taxes are calculated using a forecasted multi-jurisdictional annual effective tax rate to determine a blended annual effective tax rate. The effective tax rate for the three month period ended June 30, 2018 differs from the U.S. federal statutory rate of 21 percent primarily due to net discrete tax benefits of $1,059 recorded during the quarter, the projected mix of earnings in international jurisdictions with differing tax rates, and jurisdictions where valuation allowances are recorded. The effective tax rate for the six month period ended June 30, 2018 differs from the U.S. federal statutory rate of 21 percent primarily due to net discrete tax benefits of $292 recorded during the period, partially offset by increases in unrecognized tax benefits recorded in the period, the projected mix of earnings in international jurisdictions with differing tax rates, and jurisdictions where valuation allowances are recorded. At December 31, 2017, as a result of the U.S. Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017 and in conjunction with guidance set forth under SAB 118, the Company recorded provisional amounts both for the impact of remeasurement on its U.S. deferred tax assets to the new U.S. statutory rate of 21% and for the mandatory Transition Tax on unrepatriated foreign earnings. At June 30, 2018 , the Company has not yet completed its accounting for the tax effect of these elements of the Tax Act and as such, adjustments to these provisional amounts have not been made. The Tax Act also subjects a U.S. parent shareholder to current tax on its global intangible low-taxed income (“GILTI”). At December 31, 2017, a provisional estimate under SAB 118 could not be made and the Company had not yet elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as a period cost when incurred. Due to the complexity of the GILTI provisions, the Company continues to evaluate the impact of GILTI and has not yet determined its accounting policy; however, at June 30, 2018 , a reasonable estimate of GILTI related to current year operations has been made and included in the annual effective tax rate as a period cost. The Company did not record additional GILTI related to basis differences. The Company continues to maintain a valuation allowance pursuant to ASC 740, “Accounting for Income Taxes,” against portions of its U.S. and non-U.S. deferred tax assets at June 30, 2018 , as it cannot assure the future realization of the associated tax benefits prior to their reversal or expiration. In the U.S., the Company has offset a portion of its deferred tax asset relating primarily to a loss carryforward by a valuation allowance of $ 1,413 . In addition, the Company has recorded valuation allowances of $ 28,153 relating to non-U.S. net operating losses and other deferred tax assets for a total valuation allowance of $ 29,566 . In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company will continue to reassess the possibility of releasing all or part of the valuation allowances currently in place when the associated deferred tax assets are deemed to be realizable. The Company maintains an ASC 740-10, “Accounting for Uncertainty in Income Taxes,” liability for unrecognized tax benefits for permanent and temporary differences. At June 30, 2018 , the Company’s liability, exclusive of penalty and interest, totals approximately $ 2,787 . The Company accrued an immaterial amount of interest expense related to these unrecognized tax benefits during the quarter and six month periods ended June 30, 2018 . Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is possible that the ultimate resolution of the Company's unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. The Company and its subsidiaries are subject to income tax examinations in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company has effectively settled U.S. federal tax examinations for years before 2014 and state and local examinations for years before 2013, with limited exceptions. Non-U.S. subsidiaries of the Company are no longer subject to income tax examinations in major foreign taxing jurisdictions for years prior to 2007. The income tax returns of various subsidiaries in various jurisdictions are currently under examination and it is possible that these examinations will conclude within the next twelve months. However, it is not possible to estimate net increases or decreases to the Company’s unrecognized tax benefits during the next twelve months. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 15, 2018, the Company amended its 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 February 2023. 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. On February 15, 2018, the Company amended its accounts receivable securitization facility that provides up to $150,000 based on available collateral and expires in February 2021. 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. The Company had borrowings of $30,500 under the accounts receivable securitization facility at June 30, 2018. There were no borrowings under the revolving credit facility or the accounts receivable securitization facility at December 31, 2017. Amounts used to secure letters of credit totaled $17,000 and $17,600 at June 30, 2018 and December 31, 2017, respectively. The Company’s additional borrowing capacity, net of borrowings, 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 June 30, 2018, was $483,800 . The Company’s consolidated operations in Asia have renewable unsecured credit lines that provide up to $67,100 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 $50,200 at June 30, 2018. The following table summarizes the long-term debt of the Company at June 30, 2018 and 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: June 30, 2018 December 31, 2017 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 6,659 7,684 297,117 298,142 Less: unamortized debt issuance costs 702 742 296,415 297,400 Less: current maturities 1,398 1,413 $ 295,017 $ 295,987 At June 30, 2018 and December 31, 2017, the Company had short-term notes payable of $16,878 and $39,450 , 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 June 30, 2018 and December 31, 2017 was 4.65 percent and 4.46 percent , respectively. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The following tables disclose the amount of net periodic benefit costs for the three and six months ended June 30, 2018 and 2017 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ 2,580 $ 2,465 $ 5,160 $ 4,930 Interest cost 9,210 9,813 18,419 19,626 Expected return on plan assets (13,498 ) (13,514 ) (26,997 ) (27,029 ) Amortization of actuarial loss 8,235 9,280 16,471 18,561 Net periodic benefit cost $ 6,527 $ 8,044 $ 13,053 $ 16,088 Pension Benefits - International Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ — $ — $ — $ — Interest cost 2,840 2,860 5,746 5,630 Expected return on plan assets (3,073 ) (2,795 ) (6,216 ) (5,502 ) Amortization of actuarial loss 1,085 1,351 2,195 2,661 Net periodic benefit cost $ 852 $ 1,416 $ 1,725 $ 2,789 Other Postretirement Benefits Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ 487 $ 501 $ 974 $ 1,002 Interest cost 2,313 2,516 4,625 5,031 Amortization of prior service credit (135 ) (142 ) (270 ) (283 ) Net periodic benefit cost $ 2,665 $ 2,875 $ 5,329 $ 5,750 As discussed in Note 1, the Company retrospectively applied the adoption of ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” in the first quarter of 2018. The effect of the retrospective presentation change related to the net periodic cost of the Company's defined benefit plans and other postretirement benefits on the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017 is shown in the following tables: Three Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 581,202 $ 7,295 $ 1,416 $ — $ 589,913 Selling, general and administrative expense 55,350 296 — 362 56,008 Other pension and postretirement benefit expense (9,369 ) (7,591 ) (1,416 ) (362 ) — Six Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 1,105,642 $ 14,591 $ 2,788 $ — $ 1,123,021 Selling, general and administrative expense 115,941 592 — 722 117,255 Other pension and postretirement benefit expense (18,693 ) (15,183 ) (2,788 ) (722 ) — |
Product Warranty Liabilities
Product Warranty Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Product Warranty Liabilities | Product Warranty Liabilities The Company provides for the estimated cost of product warranties at the time revenue is recognized based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities: 2018 2017 Reserve at beginning of year $ 12,093 $ 10,634 Additions 7,398 4,483 Payments (6,963 ) (4,403 ) Reserve at June 30 $ 12,528 $ 10,714 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders' interests: Total Equity Total Parent Stockholders’ Equity Noncontrolling Shareholders’ Interests in Consolidated Subsidiary Total Stockholders’ Equity Balance at December 31, 2017 $ 1,127,096 $ 58,660 $ 1,185,756 Net income 23,292 1,400 24,692 Other comprehensive income 7,180 (1,139 ) 6,041 Share repurchase program (29,355 ) — (29,355 ) Stock compensation plans 757 — 757 Cash dividends - $0.210 per share (10,623 ) — (10,623 ) Dividend paid to noncontrolling shareholder — — — Balance at June 30, 2018 $ 1,118,347 $ 58,921 $ 1,177,268 |
Share Repurchase Programs
Share Repurchase Programs | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Share Repurchase Programs | Share Repurchase Programs Share repurchase programs require the approval of the Company's Board of Directors. The following table summarizes the Company’s Board authorized share repurchase programs and related information for the six months ended June 30, 2018 and for the full year 2017: Program (1) Date Authorized by Board of Directors Expiration Date Amount Authorized (excluding commissions) Amount Spent as of June 30, 2018 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2019 $ 300,000 $ 106,050 Active 2016 Repurchase Program February 19, 2016 December 31, 2017 200,000 104,366 Superseded (2) (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 was included in the $300,000 maximum amount authorized by the 2017 Repurchase Program. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the six months ended June 30, 2018 and for the full year 2017: Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2018 share repurchase activity: 2017 Repurchase Program 986,935 $ 29.74 $ 29,355 2017 share repurchase activity: 2017 Repurchase Program 2,136,237 $ 35.95 $ 76,788 2016 Repurchase Program 383,690 $ 36.70 14,080 Total 2017 share repurchases 2,519,927 $ 36.06 $ 90,868 Since the share repurchases began in August 2014 through June 30, 2018 , the Company has repurchased 15,737,691 shares of the Company’s common stock at an average cost of $ 34.12 per share. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | Changes in Accumulated Other Comprehensive Loss by Component The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three month periods ended June 30, 2018 and 2017 , respectively. Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, March 31, 2018 $ (19,015 ) $ 1,901 $ (434,788 ) $ (451,902 ) Other comprehensive income (loss) before reclassifications (30,768 ) 2,062 — (28,706 ) Foreign currency translation effect — — 4,082 4,082 Income tax effect — (285 ) — (285 ) Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (1,592 ) — (1,592 ) Amortization of prior service credit — — (135 ) (135 ) Amortization of actuarial losses — — 9,320 9,320 Income tax effect — 126 (2,206 ) (2,080 ) Other comprehensive income (loss) (30,768 ) 311 11,061 (19,396 ) Ending balance, June 30, 2018 $ (49,783 ) $ 2,212 $ (423,727 ) $ (471,298 ) Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, March 31, 2017 $ (62,898 ) $ 1,721 $ (465,837 ) $ (527,014 ) Other comprehensive income (loss) before reclassifications 12,876 (2,335 ) — 10,541 Foreign currency translation effect — — (3,702 ) (3,702 ) Income tax effect — 759 — 759 Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (343 ) — (343 ) Amortization of prior service credit — — (142 ) (142 ) Amortization of actuarial losses — — 10,631 10,631 Income tax effect — 199 (3,725 ) (3,526 ) Other comprehensive income (loss) 12,876 (1,720 ) 3,062 14,218 Ending balance, June 30, 2017 $ (50,022 ) $ 1 $ (462,775 ) $ (512,796 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2017 (39,940 ) 349 (438,887 ) (478,478 ) Other comprehensive income (loss) before reclassifications (9,843 ) 2,708 — (7,135 ) Foreign currency translation effect — — 1,180 1,180 Income tax effect — (701 ) — (701 ) Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (98 ) — (98 ) Amortization of prior service credit — — (270 ) (270 ) Amortization of actuarial losses — — 18,666 18,666 Pension settlement charge — — — — Income tax effect — (46 ) (4,416 ) (4,462 ) Other comprehensive income (loss) (9,843 ) 1,863 15,160 7,180 Ending balance, June 30, 2018 (49,783 ) 2,212 (423,727 ) (471,298 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive income (loss) before reclassifications 25,393 (2,724 ) — 22,669 Foreign currency translation effect — — (4,567 ) (4,567 ) Income tax effect — 908 — 908 Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (353 ) — (353 ) Amortization of prior service credit — — (283 ) (283 ) Amortization of actuarial losses — — 21,222 21,222 Pension settlement charge — — — — Income tax effect — 203 (7,444 ) (7,241 ) Other comprehensive income (loss) 25,393 (1,966 ) 8,928 32,355 Ending balance, June 30, 2017 (50,022 ) 1 (462,775 ) (512,796 ) |
Comprehensive Income (Loss) Att
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests | Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests The following table provides the details of the comprehensive income (loss) attributable to noncontrolling shareholders' interests: Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income attributable to noncontrolling shareholders' interests $ 701 $ 514 $ 1,400 $ (666 ) Other comprehensive income (loss): Currency translation adjustments (5,083 ) 1,308 (1,139 ) 4,179 Comprehensive income (loss) attributable to noncontrolling shareholders' interests $ (4,382 ) $ 1,822 $ 261 $ 3,513 |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | Contingent Liabilities Product Liability Claims The Company is a defendant in various product liability claims brought in numerous jurisdictions in which individuals seek damages resulting from motor vehicle accidents allegedly caused by defective tires manufactured by the Company. Each of the product liability claims faced by the Company generally involves different types of tires and circumstances surrounding the accident such as different applications, vehicles, speeds, road conditions, weather conditions, driver error, tire repair and maintenance practices, service life conditions, as well as different jurisdictions and different injuries. In addition, in many of the Company’s product liability lawsuits, the plaintiff alleges that his or her harm was caused by one or more co-defendants who acted independently of the Company. Accordingly, both the claims asserted and the resolutions of those claims have an enormous amount of variability. The aggregate amount of damages asserted at any point in time is not determinable since often times when claims are filed, the plaintiffs do not specify the amount of damages. Even when there is an amount alleged, at times the amount is wildly inflated and has no rational basis. The fact that the Company is a defendant in product liability lawsuits is not surprising given the current litigation climate, which is largely confined to the United States. However, the fact that the Company is subject to claims does not indicate that there is a quality issue with the Company’s tires. The Company sells approximately 30 to 35 million passenger car, light truck, SUV, TBR 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 quarterly reviews, coupled with normal activity, including the addition of another two quarters of self-insured incidents, settlements and changes in the amount of reserves, the Company increased its accrual from $129,892 at December 31, 2017 to $137,794 at June 30, 2018 . The addition of another six months of self-insured incidents accounted for an increase of $22,025 in the Company's product liability reserve. 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 $2,303 for the six month period ended June 30, 2018 . The Company paid $11,820 through the first six months of 2018 to resolve cases and claims.. The Company’s product liability reserve balance at June 30, 2018 totaled $137,794 (the current portion of $44,978 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets), and the balance at December 31, 2017 totaled $129,892 (current portion of $44,700 ). The product liability expense reported by the Company includes amortization of insurance premium costs, adjustments to settlement reserves and legal costs incurred in defending claims against the Company. Legal costs are expensed as incurred and product liability insurance premiums are amortized over coverage periods. For the three month periods ended June 30, 2018 and 2017 , product liability expense totaled $12,155 and $16,179 , respectively. For the six month periods ended June 30, 2018 and 2017 , product liability expense totaled $27,223 and $32,447 , respectively. Product liability expenses are included in Cost of products sold in the Condensed Consolidated Statements of Income. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has four segments under ASC 280, “Segments”: • North America, composed of the Company’s operations in the United States and Canada; • Latin America, composed of the Company’s operations in Mexico, Central America and South America; • Europe; and • Asia. North America and Latin America meet the criteria for aggregation in accordance with ASC 280, as they are similar in their production and distribution processes and exhibit similar economic characteristics. The aggregated North America and Latin America segments are presented as “Americas Tire Operations” in the segment disclosure. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, primarily for sale in the U.S. replacement market. The segment also has a joint venture manufacturing operation in Mexico, Corporacion de Occidente SA de CV ("COOCSA"), which supplies passenger car tires to the North American, Mexican, Central American and South American markets. The segment also distributes racing, TBR and motorcycle tires. The racing and motorcycle tires are manufactured by the Company’s European operations and by others. TBR tires are sourced from GRT and through an off-take agreement that was entered with Prinx Chengshan (Shandong) Tire Company Ltd. ("PCT"), the Company’s former joint venture. In December 2017, the Company signed an off-take agreement with Sailun Vietnam Co. Ltd. ("Sailun"), effective from January 1, 2018 through December 31, 2020, as an additional source of TBR 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 original equipment manufacturers ("OEMs"). Both the Asia and Europe segments have been determined to be individually immaterial, as they do not meet the quantitative requirements for segment disclosure under ASC 280. In accordance with ASC 280, information about operating segments that are not reportable shall be combined and disclosed in an all other category separate from other reconciling items. As a result, these two segments have been combined in the segment operating results discussion. The results of the combined Asia and Europe segments are presented as “International Tire Operations.” The European operations include manufacturing operations in the United Kingdom ("U.K.") and Serbia. The U.K. entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material for domestic and global markets. The Serbian entity manufactures passenger car and light truck tires primarily for the European markets and for export to the North American segment. The Asian operations are located in the PRC. Cooper Kunshan Tire manufactures passenger car and light truck tires both for the Chinese domestic market and for export to markets outside of the PRC. On December 1, 2016, the Company acquired 65 percent ownership of China-based GRT, a joint venture manufacturing facility located in the PRC. GRT serves as a global source of TBR tire production for the Company. The segment also had another joint venture in the PRC, PCT, which manufactured and marketed truck and bus radial and bias 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 TBR and passenger car tires under off-take agreements with PCT through mid-2018. The TBR tire agreement has been extended and now expires in mid-2019. In December 2017, the Company signed an off-take agreement with Sailun as an additional source of TBR tires. The segment sells a majority of its tires in the replacement market, with a growing portion also sold to OEMs. The following table details information on the Company’s operating segments. Three Months Ended Six Months Ended 2018 2017 2018 2017 Net sales Americas Tire External customers $ 573,807 $ 605,234 $ 1,052,634 $ 1,127,603 Intercompany 10,605 10,122 17,170 19,112 584,412 615,356 1,069,804 1,146,715 International Tire External customers 124,601 115,519 247,270 236,175 Intercompany 43,238 35,851 81,813 57,160 167,839 151,370 329,083 293,335 Eliminations (53,843 ) (45,973 ) (98,983 ) (76,272 ) Consolidated net sales $ 698,408 $ 720,753 $ 1,299,904 $ 1,363,778 Operating profit (loss): Americas Tire $ 40,480 $ 90,884 $ 71,715 $ 161,669 International Tire 5,652 2,690 13,086 5,715 Unallocated corporate charges (13,705 ) (9,199 ) (25,670 ) (24,663 ) Eliminations 336 (174 ) 87 (526 ) Operating profit 32,763 84,201 59,218 142,195 Interest expense (8,417 ) (8,210 ) (16,108 ) (16,037 ) Interest income 1,988 1,755 4,303 3,557 Other pension and postretirement benefit expense (6,967 ) (9,369 ) (13,953 ) (18,693 ) Other non-operating expense (1,391 ) (255 ) (3,050 ) (491 ) Income before income taxes $ 17,976 $ 68,122 $ 30,410 $ 110,531 |
Basis of Presentation and Con23
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. There is a year-round demand for passenger car and truck replacement tires, but passenger car replacement tire sales are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the six month period ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 . The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. |
Accounting Pronouncements | Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Revenue Recognition In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (the “new revenue standard”), which supersedes previous revenue recognition guidance, including industry-specific guidance, and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. The Company adopted the new revenue standard as of January 1, 2018 using the modified retrospective transition method. See Note 2 for additional details. 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. The Company adopted the new standard as of January 1, 2018 and revised prior periods in accordance with the standard. See Note 9 for additional details. Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18, "Restricted Cash," which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The new standard also requires companies to disclose the nature of the restriction on restricted cash. The Company adopted the new standard as of January 1, 2018 and revised prior periods in accordance with the standard. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same such amounts reported within the Condensed Consolidated Statements of Cash Flows: June 30, June 30, December 31, 2017 December 31, 2016 Cash and cash equivalents $ 180,493 $ 302,386 $ 371,684 $ 504,423 Restricted cash included in Other current assets 1,702 614 19,200 18,499 Restricted cash included in Other assets 2,090 1,337 1,422 1,327 Total cash, cash equivalents and restricted cash $ 184,285 $ 304,337 $ 392,306 $ 524,249 Restricted cash is comprised primarily of funds within a voluntary employees' beneficiary trust restricted to the future payment of employee benefit obligations and amounts on deposit to collateralize certain credit arrangements in the PRC. Accounting Pronouncements – To Be Adopted 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. The Company plans to adopt the new standard on its effective date of January 1, 2019. The FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients and other improvements to ASU 2016-02. The Company expects the most significant impact of the standard will be the recognition of right of use assets and lease liabilities as part of its condensed consolidated balance sheets. The Company is currently evaluating the impact of the new standard, including optional practical expedients, and assessing its existing lease portfolio to determine the impact of adoption on its condensed consolidated financial statements and the related disclosures. The Company is also evaluating new controls and processes designed to meet the requirements of the topic. Goodwill In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment," which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The standard requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. 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 condensed consolidated financial statements. Comprehensive Income In February 2018, the FASB issued ASU 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which provides for an election to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and has not yet determined whether it will make the election to reclassify its stranded tax effects. |
Basis of Presentation and Con24
Basis of Presentation and Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same such amounts reported within the Condensed Consolidated Statements of Cash Flows: June 30, June 30, December 31, 2017 December 31, 2016 Cash and cash equivalents $ 180,493 $ 302,386 $ 371,684 $ 504,423 Restricted cash included in Other current assets 1,702 614 19,200 18,499 Restricted cash included in Other assets 2,090 1,337 1,422 1,327 Total cash, cash equivalents and restricted cash $ 184,285 $ 304,337 $ 392,306 $ 524,249 |
Revenue from Contracts with C25
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Major Market Channel | In the following tables, revenue is disaggregated by major market channel for the three and six month periods ended June 30, 2018 : Three Months Ended June 30, 2018 Americas International Eliminations Total Light vehicle (1) $ 527,284 $ 122,872 $ (31,423 ) $ 618,733 Truck and bus radial 43,573 26,527 (22,420 ) 47,680 Other (2) 13,555 18,440 — 31,995 Net sales $ 584,412 $ 167,839 $ (53,843 ) $ 698,408 Six Months Ended June 30, 2018 Americas International Eliminations Total Light vehicle (1) $ 960,668 $ 244,213 $ (56,373 ) $ 1,148,508 Truck and bus radial 85,034 53,116 (42,610 ) 95,540 Other (2) 24,102 31,754 — 55,856 Net sales $ 1,069,804 $ 329,083 $ (98,983 ) $ 1,299,904 (1) Light vehicle includes passenger car and light truck tires (2) Other includes motorcycle and racing tires, wheels, tire retread material, and other items |
Schedule of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about contract liabilities from contracts with customers. June 30, 2018 December 31, 2017 Contract liabilities $ 2,055 $ 1,111 Significant changes in the contract liabilities balance during the period are as follows: Deferred revenue Deferred revenue at beginning of year $ 1,111 Increases due to cash received from customers 5,980 Decreases due to recognition of revenue (5,036 ) Deferred revenue at June 30, 2018 $ 2,055 |
Summary of Impact on Balance Sheet | The table below summarizes the impact to the balance sheet as of December 31, 2017 : As Adjusted Effect of Change Previously Reported Accounts receivable, less allowances $ 528,250 $ 100,190 $ 428,060 Accrued liabilities 280,666 100,190 180,476 The effect of the retrospective presentation change related to the net periodic cost of the Company's defined benefit plans and other postretirement benefits on the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017 is shown in the following tables: Three Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 581,202 $ 7,295 $ 1,416 $ — $ 589,913 Selling, general and administrative expense 55,350 296 — 362 56,008 Other pension and postretirement benefit expense (9,369 ) (7,591 ) (1,416 ) (362 ) — Six Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 1,105,642 $ 14,591 $ 2,788 $ — $ 1,123,021 Selling, general and administrative expense 115,941 592 — 722 117,255 Other pension and postretirement benefit expense (18,693 ) (15,183 ) (2,788 ) (722 ) — |
GRT Acquisition (Tables)
GRT Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 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 Inventories 7,983 485 8,468 Other current assets 981 — 981 Property, plant and 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 15,008 $ 45,310 $ 23,292 $ 75,872 Denominator Denominator for basic earnings per share - weighted average shares outstanding 50,436 52,796 50,636 52,815 Effect of dilutive securities - stock options and other stock units 154 395 247 542 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 50,590 53,191 50,883 53,357 Earnings per share: Basic $ 0.30 $ 0.86 $ 0.46 $ 1.44 Diluted $ 0.30 $ 0.85 $ 0.46 $ 1.42 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets | The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: June 30, 2018 December 31, 2017 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ (1,717 ) $ (2,808 ) Gross amounts offset 1,897 168 Net amounts $ 180 $ (2,640 ) Not designated as hedging instruments: Gross amounts recognized (556 ) (684 ) Gross amounts offset 291 97 Net amounts $ (265 ) $ (587 ) Net amounts presented: Other current assets (accrued liabilities) $ 1,472 $ (1,893 ) Other long-term liabilities $ (1,557 ) $ (1,334 ) |
Gains and Losses on Derivative Instruments in Condensed Consolidated Statements of Income | The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended Derivatives Designated as Cash Flow Hedges 2018 2017 2018 2017 Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 2,062 $ (2,335 ) $ 2,708 $ (2,724 ) Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 1,592 343 98 353 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended Six months ended June 30, June 30, Derivatives not Designated as Hedging Instruments 2018 2017 2018 2017 Foreign exchange contracts Other non-operating expense $ 2,324 $ (759 ) $ 43 $ (1,405 ) |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 : June 30, 2018 Total Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Currency Derivative Instruments $ (85 ) $ — $ (85 ) $ — Stock-based Liabilities $ (12,077 ) $ (12,077 ) $ — $ — December 31, 2017 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 Currency Derivative Instruments $ (3,227 ) $ — $ (3,227 ) $ — Stock-based Liabilities $ (16,713 ) $ (16,713 ) $ — $ — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the long-term debt of the Company at June 30, 2018 and 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: June 30, 2018 December 31, 2017 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 6,659 7,684 297,117 298,142 Less: unamortized debt issuance costs 702 742 296,415 297,400 Less: current maturities 1,398 1,413 $ 295,017 $ 295,987 |
Pensions and Postretirement B30
Pensions and Postretirement Benefits Other than Pensions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Costs | The following tables disclose the amount of net periodic benefit costs for the three and six months ended June 30, 2018 and 2017 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ 2,580 $ 2,465 $ 5,160 $ 4,930 Interest cost 9,210 9,813 18,419 19,626 Expected return on plan assets (13,498 ) (13,514 ) (26,997 ) (27,029 ) Amortization of actuarial loss 8,235 9,280 16,471 18,561 Net periodic benefit cost $ 6,527 $ 8,044 $ 13,053 $ 16,088 Pension Benefits - International Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ — $ — $ — $ — Interest cost 2,840 2,860 5,746 5,630 Expected return on plan assets (3,073 ) (2,795 ) (6,216 ) (5,502 ) Amortization of actuarial loss 1,085 1,351 2,195 2,661 Net periodic benefit cost $ 852 $ 1,416 $ 1,725 $ 2,789 Other Postretirement Benefits Three Months Ended Six Months Ended 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost $ 487 $ 501 $ 974 $ 1,002 Interest cost 2,313 2,516 4,625 5,031 Amortization of prior service credit (135 ) (142 ) (270 ) (283 ) Net periodic benefit cost $ 2,665 $ 2,875 $ 5,329 $ 5,750 |
Schedule of Effect of the Retrospective Presentation Change Related to the Net Periodic Cost of Defined Benefit Plans | The table below summarizes the impact to the balance sheet as of December 31, 2017 : As Adjusted Effect of Change Previously Reported Accounts receivable, less allowances $ 528,250 $ 100,190 $ 428,060 Accrued liabilities 280,666 100,190 180,476 The effect of the retrospective presentation change related to the net periodic cost of the Company's defined benefit plans and other postretirement benefits on the Company's Condensed Consolidated Statement of Income for the three and six months ended June 30, 2017 is shown in the following tables: Three Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 581,202 $ 7,295 $ 1,416 $ — $ 589,913 Selling, general and administrative expense 55,350 296 — 362 56,008 Other pension and postretirement benefit expense (9,369 ) (7,591 ) (1,416 ) (362 ) — Six Months Ended June 30, 2017 Effect of change As Adjusted Americas International Corporate Previously Reported Cost of products sold $ 1,105,642 $ 14,591 $ 2,788 $ — $ 1,123,021 Selling, general and administrative expense 115,941 592 — 722 117,255 Other pension and postretirement benefit expense (18,693 ) (15,183 ) (2,788 ) (722 ) — |
Product Warranty Liabilities (T
Product Warranty Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Summary of Activity in Product Warranty Liabilities | The following table summarizes the activity in the Company’s product warranty liabilities: 2018 2017 Reserve at beginning of year $ 12,093 $ 10,634 Additions 7,398 4,483 Payments (6,963 ) (4,403 ) Reserve at June 30 $ 12,528 $ 10,714 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Reconciliation of Beginning and End of Period Equity Accounts | The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholders' interests: Total Equity Total Parent Stockholders’ Equity Noncontrolling Shareholders’ Interests in Consolidated Subsidiary Total Stockholders’ Equity Balance at December 31, 2017 $ 1,127,096 $ 58,660 $ 1,185,756 Net income 23,292 1,400 24,692 Other comprehensive income 7,180 (1,139 ) 6,041 Share repurchase program (29,355 ) — (29,355 ) Stock compensation plans 757 — 757 Cash dividends - $0.210 per share (10,623 ) — (10,623 ) Dividend paid to noncontrolling shareholder — — — Balance at June 30, 2018 $ 1,118,347 $ 58,921 $ 1,177,268 |
Share Repurchase Programs (Tabl
Share Repurchase Programs (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The following table summarizes the Company’s Board authorized share repurchase programs and related information for the six months ended June 30, 2018 and for the full year 2017: Program (1) Date Authorized by Board of Directors Expiration Date Amount Authorized (excluding commissions) Amount Spent as of June 30, 2018 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2019 $ 300,000 $ 106,050 Active 2016 Repurchase Program February 19, 2016 December 31, 2017 200,000 104,366 Superseded (2) (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 was included in the $300,000 maximum amount authorized by the 2017 Repurchase Program. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the six months ended June 30, 2018 and for the full year 2017: Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2018 share repurchase activity: 2017 Repurchase Program 986,935 $ 29.74 $ 29,355 2017 share repurchase activity: 2017 Repurchase Program 2,136,237 $ 35.95 $ 76,788 2016 Repurchase Program 383,690 $ 36.70 14,080 Total 2017 share repurchases 2,519,927 $ 36.06 $ 90,868 |
Changes in Accumulated Other 34
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three month periods ended June 30, 2018 and 2017 , respectively. Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, March 31, 2018 $ (19,015 ) $ 1,901 $ (434,788 ) $ (451,902 ) Other comprehensive income (loss) before reclassifications (30,768 ) 2,062 — (28,706 ) Foreign currency translation effect — — 4,082 4,082 Income tax effect — (285 ) — (285 ) Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (1,592 ) — (1,592 ) Amortization of prior service credit — — (135 ) (135 ) Amortization of actuarial losses — — 9,320 9,320 Income tax effect — 126 (2,206 ) (2,080 ) Other comprehensive income (loss) (30,768 ) 311 11,061 (19,396 ) Ending balance, June 30, 2018 $ (49,783 ) $ 2,212 $ (423,727 ) $ (471,298 ) Cumulative Translation Adjustment Derivative Instruments Post-retirement Benefits Total Beginning balance, March 31, 2017 $ (62,898 ) $ 1,721 $ (465,837 ) $ (527,014 ) Other comprehensive income (loss) before reclassifications 12,876 (2,335 ) — 10,541 Foreign currency translation effect — — (3,702 ) (3,702 ) Income tax effect — 759 — 759 Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (343 ) — (343 ) Amortization of prior service credit — — (142 ) (142 ) Amortization of actuarial losses — — 10,631 10,631 Income tax effect — 199 (3,725 ) (3,526 ) Other comprehensive income (loss) 12,876 (1,720 ) 3,062 14,218 Ending balance, June 30, 2017 $ (50,022 ) $ 1 $ (462,775 ) $ (512,796 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2017 (39,940 ) 349 (438,887 ) (478,478 ) Other comprehensive income (loss) before reclassifications (9,843 ) 2,708 — (7,135 ) Foreign currency translation effect — — 1,180 1,180 Income tax effect — (701 ) — (701 ) Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (98 ) — (98 ) Amortization of prior service credit — — (270 ) (270 ) Amortization of actuarial losses — — 18,666 18,666 Pension settlement charge — — — — Income tax effect — (46 ) (4,416 ) (4,462 ) Other comprehensive income (loss) (9,843 ) 1,863 15,160 7,180 Ending balance, June 30, 2018 (49,783 ) 2,212 (423,727 ) (471,298 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2016 (75,415 ) 1,967 (471,703 ) (545,151 ) Other comprehensive income (loss) before reclassifications 25,393 (2,724 ) — 22,669 Foreign currency translation effect — — (4,567 ) (4,567 ) Income tax effect — 908 — 908 Amount reclassified from accumulated other comprehensive loss Cash flow hedges — (353 ) — (353 ) Amortization of prior service credit — — (283 ) (283 ) Amortization of actuarial losses — — 21,222 21,222 Pension settlement charge — — — — Income tax effect — 203 (7,444 ) (7,241 ) Other comprehensive income (loss) 25,393 (1,966 ) 8,928 32,355 Ending balance, June 30, 2017 (50,022 ) 1 (462,775 ) (512,796 ) |
Comprehensive Income (Loss) A35
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests | The following table provides the details of the comprehensive income (loss) attributable to noncontrolling shareholders' interests: Three Months Ended Six Months Ended 2018 2017 2018 2017 Net income attributable to noncontrolling shareholders' interests $ 701 $ 514 $ 1,400 $ (666 ) Other comprehensive income (loss): Currency translation adjustments (5,083 ) 1,308 (1,139 ) 4,179 Comprehensive income (loss) attributable to noncontrolling shareholders' interests $ (4,382 ) $ 1,822 $ 261 $ 3,513 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Information on Operating Segments | The following table details information on the Company’s operating segments. Three Months Ended Six Months Ended 2018 2017 2018 2017 Net sales Americas Tire External customers $ 573,807 $ 605,234 $ 1,052,634 $ 1,127,603 Intercompany 10,605 10,122 17,170 19,112 584,412 615,356 1,069,804 1,146,715 International Tire External customers 124,601 115,519 247,270 236,175 Intercompany 43,238 35,851 81,813 57,160 167,839 151,370 329,083 293,335 Eliminations (53,843 ) (45,973 ) (98,983 ) (76,272 ) Consolidated net sales $ 698,408 $ 720,753 $ 1,299,904 $ 1,363,778 Operating profit (loss): Americas Tire $ 40,480 $ 90,884 $ 71,715 $ 161,669 International Tire 5,652 2,690 13,086 5,715 Unallocated corporate charges (13,705 ) (9,199 ) (25,670 ) (24,663 ) Eliminations 336 (174 ) 87 (526 ) Operating profit 32,763 84,201 59,218 142,195 Interest expense (8,417 ) (8,210 ) (16,108 ) (16,037 ) Interest income 1,988 1,755 4,303 3,557 Other pension and postretirement benefit expense (6,967 ) (9,369 ) (13,953 ) (18,693 ) Other non-operating expense (1,391 ) (255 ) (3,050 ) (491 ) Income before income taxes $ 17,976 $ 68,122 $ 30,410 $ 110,531 |
Basis of Presentation and Con37
Basis of Presentation and Consolidation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Consolidation And Basis Of Presentation [Line Items] | |||||||
Maximum percentage of cost method investments | 20.00% | ||||||
Unfavorable Regulatory Action | |||||||
Consolidation And Basis Of Presentation [Line Items] | |||||||
Loss contingency incurred (reversed) | $ (22,042) | $ 22,042 | |||||
Loss from Catastrophes | Cost of Goods Sold | |||||||
Consolidation And Basis Of Presentation [Line Items] | |||||||
Loss contingency incurred (reversed) | $ 325 | $ 1,974 | $ 1,539 | $ 8,772 | $ 12,569 | ||
Insurance recoveries | $ 2,987 | $ 5,500 | $ 6,796 | $ 5,500 | $ 7,000 | ||
Minimum | |||||||
Consolidation And Basis Of Presentation [Line Items] | |||||||
Minimum percentage of investment consolidated | 50.00% | ||||||
Equity investments ownership percentage | 20.00% | 20.00% | |||||
Maximum | |||||||
Consolidation And Basis Of Presentation [Line Items] | |||||||
Equity investments ownership percentage | 50.00% | 50.00% |
Basis of Presentation and Con38
Basis of Presentation and Consolidation - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 180,493 | $ 371,684 | $ 302,386 | $ 504,423 |
Restricted cash included in Other current assets | 1,702 | 19,200 | 614 | 18,499 |
Restricted cash included in Other assets | 2,090 | 1,422 | 1,337 | 1,327 |
Total cash, cash equivalents and restricted cash | $ 184,285 | $ 392,306 | $ 304,337 | $ 524,249 |
Revenue from Contracts with C39
Revenue from Contracts with Customers - Schedule of Revenue Disaggregated by Major Market Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 698,408 | $ 1,299,904 |
Light vehicle | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 618,733 | 1,148,508 |
TBR | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 47,680 | 95,540 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 31,995 | 55,856 |
Operating Segments | Americas Tire | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 584,412 | 1,069,804 |
Operating Segments | Americas Tire | Light vehicle | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 527,284 | 960,668 |
Operating Segments | Americas Tire | TBR | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 43,573 | 85,034 |
Operating Segments | Americas Tire | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 13,555 | 24,102 |
Operating Segments | International Tire | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 167,839 | 329,083 |
Operating Segments | International Tire | Light vehicle | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 122,872 | 244,213 |
Operating Segments | International Tire | TBR | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 26,527 | 53,116 |
Operating Segments | International Tire | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 18,440 | 31,754 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | (53,843) | (98,983) |
Eliminations | Light vehicle | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | (31,423) | (56,373) |
Eliminations | TBR | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | (22,420) | (42,610) |
Eliminations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 0 | $ 0 |
Revenue from Contracts with C40
Revenue from Contracts with Customers - Schedule of Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 2,055 | $ 1,111 |
Revenue from Contracts with C41
Revenue from Contracts with Customers - Schedule of Changes in Contract Liabilities Balance (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Movement in Contract with Customer, Liability [Roll Forward] | |
Deferred revenue at beginning of the period | $ 1,111 |
Increases due to cash received from customers | 5,980 |
Decreases due to recognition of revenue | (5,036) |
Deferred revenue end of the period | $ 2,055 |
Revenue from Contracts with C42
Revenue from Contracts with Customers - Summary of Impact on Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, less allowances | $ 582,524 | $ 528,250 |
Accrued liabilities | $ 262,233 | 280,666 |
Effect of Change | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, less allowances | 100,190 | |
Accrued liabilities | 100,190 | |
Previously Reported | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Accounts receivable, less allowances | 428,060 | |
Accrued liabilities | $ 180,476 |
GRT Acquisition - Narrative (De
GRT Acquisition - Narrative (Details) - GRT Acquisition - USD ($) $ in Thousands | Dec. 01, 2016 | Dec. 31, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Down payment | $ 5,929 | ||||||
Ownership interest (as a percent) | 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 ($) $ in Thousands | 16 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 01, 2016 | |
Assets | ||||
Goodwill | $ 53,960 | $ 54,613 | ||
GRT Acquisition | ||||
Assets | ||||
Cash | $ 8,091 | $ 8,091 | ||
Accounts receivable | 2,844 | 2,844 | ||
Notes receivable | 3,050 | 3,050 | ||
Inventories | 8,468 | 7,983 | ||
Other current assets | 981 | 981 | ||
Property, plant and equipment | 47,541 | 46,712 | ||
Intangible assets | 7,428 | 7,412 | ||
Other long-term assets | 289 | 289 | ||
Goodwill | 33,250 | 33,861 | ||
Liabilities | ||||
Accounts payable | (62,289) | (61,570) | ||
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) | ||
Net assets and liabilities assumed | 32,342 | 32,342 | ||
Noncontrolling shareholder interest | (18,323) | (18,323) | ||
Cooper Tire & Rubber Company consideration | 14,019 | $ 14,019 | ||
Adjustments | ||||
Inventories | 485 | |||
Property, plant and equipment | 829 | |||
Intangible assets | 16 | |||
Goodwill | (611) | |||
Accounts payable | $ (719) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator | ||||
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $ 15,008 | $ 45,310 | $ 23,292 | $ 75,872 |
Denominator | ||||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 50,436 | 52,796 | 50,636 | 52,815 |
Effect of dilutive securities - stock options and other stock units (in shares) | 154 | 395 | 247 | 542 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares) | 50,590 | 53,191 | 50,883 | 53,357 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.86 | $ 0.46 | $ 1.44 |
Diluted (in dollars per share) | $ 0.30 | $ 0.85 | $ 0.46 | $ 1.42 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 489,729 | $ 415,640 |
U.S. inventories, LIFO reserve | $ 90,505 | $ 88,094 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Derivative maturities | 4 years | |
Effective portion of change in fair value of foreign currency forward contracts | $ 180,000 | $ (2,640,000) |
Long-term debt, fair market value | 318,418,000 | 329,329,000 |
Long-term debt, carrying value | $ 295,017,000 | 295,987,000 |
Foreign Exchange Contracts | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Derivative maturities | 4 years | |
Notional amount of the foreign currency derivative instruments | $ 174,924,000 | $ 134,530,000 |
Foreign Exchange Contracts | Maximum | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Maturities of forward contracts | 12 months |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other current assets (accrued liabilities) | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts | $ 1,472 | $ (1,893) |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts | (1,557) | (1,334) |
Designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (1,717) | (2,808) |
Gross amounts offset | 1,897 | 168 |
Net amounts | 180 | (2,640) |
Not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (556) | (684) |
Gross amounts offset | 291 | 97 |
Net amounts | $ (265) | $ (587) |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Not designated as hedging instruments: | Other non-operating expense | Foreign Exchange Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Loss) Gain Recognized in Income on Derivatives | $ 2,324 | $ (759) | $ 43 | $ (1,405) |
Derivatives Designated as Cash Flow Hedges | Designated as hedging instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | 2,062 | (2,335) | 2,708 | (2,724) |
Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) | $ 1,592 | $ 343 | $ 98 | $ 353 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | $ (85) | $ (3,227) |
Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | (12,077) | (16,713) |
Quoted Prices in Active Markets for Identical Assets Level (1) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | (12,077) | (16,713) |
Significant Other Observable Inputs Level (2) | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | $ (85) | $ (3,227) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Provision for income taxes | $ 2,267 | $ 22,298 | $ 5,718 | $ 35,325 |
Effective tax rate for income tax expense (as a percent) | 12.60% | 32.70% | 18.80% | 32.00% |
U.S. federal statutory rate (as a percent) | 21.00% | |||
Net discrete tax benefits | $ 1,059 | $ 292 | ||
Valuation allowance amount | 29,566 | 29,566 | ||
Liability for uncertain tax positions noncurrent | 2,787 | 2,787 | ||
U.S. | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | 1,413 | 1,413 | ||
Foreign | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | $ 28,153 | $ 28,153 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jun. 30, 2018 | Feb. 15, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Remaining borrowing capacity | $ 483,800,000 | ||
Short-term notes payable | $ 16,878,000 | $ 39,450,000 | |
Short-term notes payable average interest rate (as a percent) | 4.65% | 4.46% | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum amount | $ 400,000,000 | ||
Term loan tranche limits | 100,000,000 | ||
Line of credit amount outstanding | $ 0 | ||
Letter of Credit | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum amount | 110,000,000 | ||
Amounts to secure letters of credit | $ 17,000,000 | 17,600,000 | |
Accounts Receivable Securitization Facility | Accounts Receivable Facility February 2018 | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum amount | $ 150,000,000 | ||
Line of credit amount outstanding | 30,500,000 | $ 0 | |
Asian Credit Lines | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum amount | 67,100,000 | ||
Remaining borrowing capacity | $ 50,200,000 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 297,117 | $ 298,142 |
Less: unamortized debt issuance costs | 702 | 742 |
Outstanding debt, including current maturities | 296,415 | 297,400 |
Less: current maturities | 1,398 | 1,413 |
Outstanding debt, excluding current maturities | 295,017 | 295,987 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 6,659 | 7,684 |
Unsecured Debt | Unsecured Notes Due In December Two Thousand Nineteen | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 173,578 | 173,578 |
Stated interest rate (as a percent) | 8.00% | |
Unsecured Debt | Unsecured Notes due March 2027 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 116,880 | $ 116,880 |
Stated interest rate (as a percent) | 7.625% |
Pensions and Postretirement B54
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Postretirement Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 487 | $ 501 | $ 974 | $ 1,002 |
Interest cost | 2,313 | 2,516 | 4,625 | 5,031 |
Amortization of prior service credit | (135) | (142) | (270) | (283) |
Net periodic benefit cost | 2,665 | 2,875 | 5,329 | 5,750 |
Domestic | Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 2,580 | 2,465 | 5,160 | 4,930 |
Interest cost | 9,210 | 9,813 | 18,419 | 19,626 |
Expected return on plan assets | (13,498) | (13,514) | (26,997) | (27,029) |
Amortization of actuarial loss | 8,235 | 9,280 | 16,471 | 18,561 |
Net periodic benefit cost | 6,527 | 8,044 | 13,053 | 16,088 |
International | Pension Benefits | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 2,840 | 2,860 | 5,746 | 5,630 |
Expected return on plan assets | (3,073) | (2,795) | (6,216) | (5,502) |
Amortization of actuarial loss | 1,085 | 1,351 | 2,195 | 2,661 |
Net periodic benefit cost | $ 852 | $ 1,416 | $ 1,725 | $ 2,789 |
Pensions and Postretirement B55
Pensions and Postretirement Benefits Other than Pensions - Schedule of Effect of the Retrospective Presentation Change Related to the Net Periodic Cost of Defined Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of products sold | $ 604,185 | $ 581,202 | $ 1,121,196 | $ 1,105,642 |
Selling, general and administrative expense | 61,460 | 55,350 | 119,490 | 115,941 |
Other pension and postretirement benefit expense | $ (6,967) | (9,369) | $ (13,953) | (18,693) |
Accounting Standards Update 2017-07 | Previously Reported | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of products sold | 589,913 | 1,123,021 | ||
Selling, general and administrative expense | 56,008 | 117,255 | ||
Other pension and postretirement benefit expense | 0 | 0 | ||
Corporate | Accounting Standards Update 2017-07 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of products sold | 0 | 0 | ||
Selling, general and administrative expense | 362 | 722 | ||
Other pension and postretirement benefit expense | (362) | (722) | ||
Americas Tire | Accounting Standards Update 2017-07 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of products sold | 7,295 | 14,591 | ||
Selling, general and administrative expense | 296 | 592 | ||
Other pension and postretirement benefit expense | (7,591) | (15,183) | ||
International Tire | Accounting Standards Update 2017-07 | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Cost of products sold | 1,416 | 2,788 | ||
Selling, general and administrative expense | 0 | 0 | ||
Other pension and postretirement benefit expense | $ (1,416) | $ (2,788) |
Product Warranty Liabilities -
Product Warranty Liabilities - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Reserve at beginning of year | $ 12,093 | $ 10,634 |
Additions | 7,398 | 4,483 |
Payments | (6,963) | (4,403) |
Reserve at end of period | $ 12,528 | $ 10,714 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,185,756 | |||
Net income | $ 15,709 | $ 45,824 | 24,692 | $ 75,206 |
Other comprehensive income | (24,479) | $ 15,526 | 6,041 | $ 36,534 |
Share repurchase program | (29,355) | |||
Stock compensation plans | 757 | |||
Cash dividends - $0.210 per share | (10,623) | |||
Dividend paid to noncontrolling shareholder | 0 | |||
Ending Balance | $ 1,177,268 | $ 1,177,268 | ||
Cash dividends per share (in dollars per share) | $ 0.105 | $ 0.105 | $ 0.21 | $ 0.21 |
Total Parent Stockholders’ Equity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,127,096 | |||
Net income | 23,292 | |||
Other comprehensive income | 7,180 | |||
Share repurchase program | (29,355) | |||
Stock compensation plans | 757 | |||
Cash dividends - $0.210 per share | (10,623) | |||
Dividend paid to noncontrolling shareholder | 0 | |||
Ending Balance | $ 1,118,347 | 1,118,347 | ||
Noncontrolling Shareholders’ Interests in Consolidated Subsidiary | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 58,660 | |||
Net income | 1,400 | |||
Other comprehensive income | (1,139) | |||
Share repurchase program | 0 | |||
Stock compensation plans | 0 | |||
Cash dividends - $0.210 per share | 0 | |||
Dividend paid to noncontrolling shareholder | 0 | |||
Ending Balance | $ 58,921 | $ 58,921 |
Share Repurchase Programs - Add
Share Repurchase Programs - Additional Information (Detail) - $ / shares | 12 Months Ended | 47 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | |
Equity [Abstract] | ||
Number of Shares | 2,519,927 | 15,737,691 |
Average Repurchase Price Per Share | $ 36.06 | $ 34.12 |
Share Repurchase Programs - Sch
Share Repurchase Programs - Schedule of Share Repurchase Program (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 47 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | Feb. 16, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of Shares | 2,519,927 | 15,737,691 | |||
Average Repurchase Price Per Share | $ 36.06 | $ 34.12 | |||
Amount spent, share repurchase programs | $ 29,355,000 | $ 38,567,000 | $ 90,868,000 | ||
2017 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share repurchase, amount authorized | 300,000,000 | $ 300,000,000 | $ 300,000,000 | ||
Amount spent excluding commissions, share repurchase programs | $ 106,050,000 | ||||
Number of Shares | 986,935 | 2,136,237 | |||
Average Repurchase Price Per Share | $ 29.74 | $ 35.95 | |||
Amount spent, share repurchase programs | $ 29,355,000 | $ 76,788,000 | |||
2016 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Share repurchase, amount authorized | 200,000,000 | $ 200,000,000 | |||
Amount spent excluding commissions, share repurchase programs | $ 104,366,000 | ||||
Share repurchase, remaining amount authorized | $ 95,634,000 | ||||
Number of Shares | 383,690 | ||||
Average Repurchase Price Per Share | $ 36.70 | ||||
Amount spent, share repurchase programs | $ 14,080,000 |
Changes in Accumulated Other 60
Changes in Accumulated Other Comprehensive Loss by Component - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 1,185,756 | |||
Other comprehensive income (loss) before reclassifications | $ (28,706) | $ 10,541 | (7,135) | $ 22,669 |
Foreign currency translation effect | 4,082 | (3,702) | 1,180 | (4,567) |
Income tax effect | (285) | 759 | (701) | 908 |
Amount reclassified from accumulated other comprehensive loss | ||||
Cash flow hedges | (1,592) | (343) | (98) | (353) |
Amortization of prior service credit | (135) | (142) | (270) | (283) |
Amortization of actuarial loss | 9,320 | 10,631 | 18,666 | 21,222 |
Pension settlement charge | 0 | 0 | ||
Income tax effect | (2,080) | (3,526) | (4,462) | (7,241) |
Other comprehensive income (loss) | (19,396) | 14,218 | 7,180 | 32,355 |
Ending Balance | 1,177,268 | 1,177,268 | ||
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (19,015) | (62,898) | (39,940) | (75,415) |
Other comprehensive income (loss) before reclassifications | (30,768) | 12,876 | (9,843) | 25,393 |
Amount reclassified from accumulated other comprehensive loss | ||||
Other comprehensive income (loss) | (30,768) | 12,876 | (9,843) | 25,393 |
Ending Balance | (49,783) | (50,022) | (49,783) | (50,022) |
Derivative Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 1,901 | 1,721 | 349 | 1,967 |
Other comprehensive income (loss) before reclassifications | 2,062 | (2,335) | 2,708 | (2,724) |
Income tax effect | (285) | 759 | (701) | 908 |
Amount reclassified from accumulated other comprehensive loss | ||||
Cash flow hedges | (1,592) | (343) | (98) | (353) |
Income tax effect | 126 | 199 | (46) | 203 |
Other comprehensive income (loss) | 311 | (1,720) | 1,863 | (1,966) |
Ending Balance | 2,212 | 1 | 2,212 | 1 |
Post-retirement Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (434,788) | (465,837) | (438,887) | (471,703) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Foreign currency translation effect | 4,082 | (3,702) | 1,180 | (4,567) |
Income tax effect | 0 | 0 | ||
Amount reclassified from accumulated other comprehensive loss | ||||
Amortization of prior service credit | (135) | (142) | (270) | (283) |
Amortization of actuarial loss | 9,320 | 10,631 | 18,666 | 21,222 |
Pension settlement charge | 0 | 0 | ||
Income tax effect | (2,206) | (3,725) | (4,416) | (7,444) |
Other comprehensive income (loss) | 11,061 | 3,062 | 15,160 | 8,928 |
Ending Balance | (423,727) | (462,775) | (423,727) | (462,775) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (451,902) | (527,014) | (478,478) | (545,151) |
Amount reclassified from accumulated other comprehensive loss | ||||
Ending Balance | $ (471,298) | $ (512,796) | $ (471,298) | $ (512,796) |
Comprehensive Income (Loss) A61
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests - Comprehensive Income Attributable to Noncontrolling Shareholder Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Net income (loss) attributable to noncontrolling shareholders' interests | $ 701 | $ 514 | $ 1,400 | $ (666) |
Other comprehensive income (loss): | ||||
Currency translation adjustments | (5,083) | 1,308 | (1,139) | 4,179 |
Comprehensive income (loss) attributable to noncontrolling shareholders' interests | $ (4,382) | $ 1,822 | $ 261 | $ 3,513 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) Tire in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Tire | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Minimum estimated sale of passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 30 | ||||
Maximum estimated sale of passenger car, 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 | ||||
Product liability reserve balance | $ 137,794,000 | 137,794,000 | $ 129,892,000 | ||
Increase in product liability reserve due to self insured incidents | 22,025,000 | ||||
Decrease in product liability reserve due to changes in estimated amounts on existing reserves | 2,303,000 | ||||
Company paid to resolve cases and claims | 11,820,000 | ||||
Current portion product liability reserve balance | 44,978,000 | 44,978,000 | $ 44,700,000 | ||
Product liability expenses | $ 12,155,000 | $ 16,179,000 | $ 27,223,000 | $ 32,447,000 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2018StoreSegment | Dec. 01, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of segments | Segment | 4 | |
GRT Acquisition | ||
Segment Reporting Information [Line Items] | ||
Ownership interest (as a percent) | 65.00% | |
Americas Tire | ||
Segment Reporting Information [Line Items] | ||
Number of stores | Store | 3 |
Business Segments - Information
Business Segments - Information on Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 698,408 | $ 720,753 | $ 1,299,904 | $ 1,363,778 |
Operating profit (loss): | 32,763 | 84,201 | 59,218 | 142,195 |
Interest expense | (8,417) | (8,210) | (16,108) | (16,037) |
Interest income | 1,988 | 1,755 | 4,303 | 3,557 |
Other pension and postretirement benefit expense | (6,967) | (9,369) | (13,953) | (18,693) |
Other non-operating expense | (1,391) | (255) | (3,050) | (491) |
Income before income taxes | 17,976 | 68,122 | 30,410 | 110,531 |
Americas Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 573,807 | 605,234 | 1,052,634 | 1,127,603 |
Operating profit (loss): | 40,480 | 90,884 | 71,715 | 161,669 |
International Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 124,601 | 115,519 | 247,270 | 236,175 |
Operating profit (loss): | 5,652 | 2,690 | 13,086 | 5,715 |
Eliminations - Intercompany | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (53,843) | (45,973) | (98,983) | (76,272) |
Operating profit (loss): | 336 | (174) | 87 | (526) |
Eliminations - Intercompany | Americas Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 10,605 | 10,122 | 17,170 | 19,112 |
Eliminations - Intercompany | International Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 43,238 | 35,851 | 81,813 | 57,160 |
Operating Segments | Americas Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 584,412 | 615,356 | 1,069,804 | 1,146,715 |
Operating Segments | International Tire | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 167,839 | 151,370 | 329,083 | 293,335 |
Unallocated corporate charges | ||||
Segment Reporting Information [Line Items] | ||||
Operating profit (loss): | $ (13,705) | $ (9,199) | $ (25,670) | $ (24,663) |