Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-04329 | ||
Entity Registrant Name | COOPER TIRE & RUBBER CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-4297750 | ||
Entity Address, Address Line One | 701 Lima Avenue | ||
Entity Address, City or Town | Findlay | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45840 | ||
City Area Code | 419 | ||
Local Phone Number | 423-1321 | ||
Title of 12(b) Security | Common Stock, $1 par value per share | ||
Trading Symbol | CTB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,516,245,816 | ||
Entity Common Stock, Shares Outstanding | 50,249,760 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000024491 | ||
Current Fiscal Year End Date | --12-31 | ||
Documents Incorporated by Reference | Certain information from the registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders will be herein incorporated by reference into Part III, Items 10 – 14, of this report. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Cost of products sold | 2,319,349 | 2,364,769 | 2,303,261 |
Gross profit | 433,290 | 443,293 | 551,395 |
Selling, general and administrative expense | 250,017 | 244,221 | 242,148 |
Restructuring expense | 8,818 | 0 | 0 |
Goodwill impairment charge | 0 | 33,827 | 0 |
Operating profit | 174,455 | 165,245 | 309,247 |
Interest expense | (31,189) | (32,181) | (32,048) |
Interest income | 9,458 | 10,216 | 7,362 |
Other pension and postretirement benefit expense | (41,567) | (27,806) | (37,523) |
Other non-operating expense | (1,485) | (1,416) | (3,113) |
Income before income taxes | 109,672 | 114,058 | 243,925 |
Income tax provision | 11,355 | 33,495 | 147,180 |
Net income | 98,317 | 80,563 | 96,745 |
Net income attributable to noncontrolling shareholders' interests | 1,913 | 3,977 | 1,345 |
Net income attributable to Cooper Tire & Rubber Company | $ 96,404 | $ 76,586 | $ 95,400 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.92 | $ 1.52 | $ 1.83 |
Diluted (in dollars per share) | $ 1.91 | $ 1.51 | $ 1.81 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 98,317 | $ 80,563 | $ 96,745 |
Other comprehensive income (loss): | |||
Cumulative currency translation adjustments | 4,742 | (24,430) | 38,850 |
Financial instruments: | |||
Change in the fair value of derivatives | (3,753) | ||
Income tax benefit (provision) on derivative instruments | 1,054 | ||
Financial instruments, net of tax | (2,699) | ||
Change in the fair value of derivatives | 2,628 | (2,473) | |
Income tax benefit (provision) on derivative instruments | (827) | 855 | |
Financial instruments, net of tax | 1,801 | (1,618) | |
Postretirement benefit plans: | |||
Amortization of actuarial loss | 35,843 | 37,203 | 42,570 |
Amortization of prior service cost (credit) | 603 | (541) | (566) |
Actuarial (loss) gain | (12,877) | 12,913 | 13,385 |
Pension settlement charges | 4,262 | 0 | 0 |
Prior service effect of plan amendment | (3,069) | (3,704) | 0 |
Income tax provision on postretirement benefit plans | (9,333) | (8,326) | (14,718) |
Foreign currency translation effect | (2,668) | (264) | (7,855) |
Postretirement benefit plans, net of tax | 12,761 | 37,281 | 32,816 |
Other comprehensive income | 14,804 | 14,652 | 70,048 |
Comprehensive income | 113,121 | 95,215 | 166,793 |
Less: Comprehensive income attributable to noncontrolling shareholders' interests | 2,708 | 1,740 | 4,720 |
Comprehensive income attributable to Cooper Tire & Rubber Company | $ 110,413 | $ 93,475 | $ 162,073 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 391,332,000 | $ 356,254,000 |
Notes receivable | 535,000 | 5,737,000 |
Accounts receivable, less allowances of $8,109 at 2019 and $5,836 at 2018 | 544,257,000 | 546,905,000 |
Inventories: | ||
Finished goods | 326,839,000 | 338,133,000 |
Work in process | 28,250,000 | 27,265,000 |
Raw materials and supplies | 109,132,000 | 114,582,000 |
Total inventories | 464,221,000 | 479,980,000 |
Other current assets | 52,635,000 | 67,856,000 |
Total current assets | 1,452,980,000 | 1,456,732,000 |
Property, plant and equipment: | ||
Land and land improvements | 53,516,000 | 52,668,000 |
Buildings | 344,142,000 | 314,555,000 |
Machinery and equipment | 2,042,578,000 | 1,981,857,000 |
Molds, cores and rings | 262,444,000 | 238,911,000 |
Total property, plant and equipment | 2,702,680,000 | 2,587,991,000 |
Less: Accumulated depreciation | 1,655,438,000 | 1,586,070,000 |
Property, plant and equipment, net | 1,047,242,000 | 1,001,921,000 |
Operating lease right-of-use assets, net of accumulated amortization of $26,121 at 2019 | 80,752,000 | |
Goodwill | 18,851,000 | 18,851,000 |
Intangibles, net of accumulated amortization of $123,735 at 2019 and $112,621 at 2018 | 111,356,000 | 120,321,000 |
Deferred income tax assets | 29,336,000 | 28,146,000 |
Investment in joint venture | 48,912,000 | 0 |
Other assets | 12,909,000 | 8,234,000 |
Total assets | 2,802,338,000 | 2,634,205,000 |
Current liabilities: | ||
Notes payable | 12,296,000 | 15,288,000 |
Accounts payable | 276,732,000 | 286,671,000 |
Accrued liabilities | 302,477,000 | 282,650,000 |
Income taxes payable | 2,304,000 | 975,000 |
Current portion of long-term debt and finance leases | 10,265,000 | 174,760,000 |
Total current liabilities | 604,074,000 | 760,344,000 |
Long-term debt and finance leases | 309,148,000 | 121,284,000 |
Noncurrent operating leases | 55,371,000 | |
Postretirement benefits other than pensions | 227,216,000 | 236,454,000 |
Pension benefits | 126,707,000 | 147,950,000 |
Other long-term liabilities | 149,065,000 | 135,730,000 |
Deferred income tax liabilities | 3,024,000 | 0 |
Equity: | ||
Preferred stock, $1 par value; 5,000,000 shares authorized; none issued | ||
Common stock, $1 par value; 300,000,000 shares authorized; 87,850,292 shares issued at 2019 and 2018 | 87,850,000 | 87,850,000 |
Capital in excess of par value | 22,175,000 | 21,124,000 |
Retained earnings | 2,524,963,000 | 2,449,714,000 |
Accumulated other comprehensive loss | (447,580,000) | (461,589,000) |
Parent stockholders' equity before treasury stock | 2,187,408,000 | 2,097,099,000 |
Less: Common shares in treasury at cost (37,647,058 at 2019 and 37,776,659 at 2018) | (922,783,000) | (925,056,000) |
Total parent stockholders' equity | 1,264,625,000 | 1,172,043,000 |
Noncontrolling shareholders' interests in consolidated subsidiaries | 63,108,000 | 60,400,000 |
Total equity | 1,327,733,000 | 1,232,443,000 |
Total liabilities and equity | $ 2,802,338,000 | $ 2,634,205,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 8,109 | $ 5,836 |
Accumulated amortization of operating lease | 26,121 | |
Accumulated amortization of intangibles | $ 123,735 | $ 112,621 |
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) | 37,647,058 | 37,776,659 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 98,317 | $ 80,563 | $ 96,745 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization | 148,054 | 147,161 | 140,228 |
Deferred income taxes | 1,746 | 30,519 | 61,571 |
Stock-based compensation | 4,362 | 3,868 | 4,009 |
Change in LIFO inventory reserve | 2,548 | (3,026) | 2,981 |
Amortization of unrecognized postretirement benefits | 36,446 | 36,662 | 42,004 |
Goodwill impairment charge | 0 | 33,827 | 0 |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable | 8,980 | (19,729) | (18,646) |
Inventories | 14,355 | 27,438 | (31,820) |
Other current assets | 15,261 | (2,080) | (15,648) |
Accounts payable | 9,809 | 10,646 | (31,217) |
Accrued liabilities | (4,517) | 7,635 | (12,226) |
Pension and postretirement benefits | (49,714) | (77,883) | (54,385) |
Other items | 4,946 | (21,298) | (5,972) |
Net cash provided by operating activities | 290,593 | 254,303 | 177,624 |
Investing activities: | |||
Additions to property, plant and equipment and capitalized software | (202,722) | (193,299) | (197,186) |
Investment in joint venture | (49,001) | 0 | 0 |
Proceeds from the sale of assets | 119 | 160 | 278 |
Net cash used in investing activities | (251,604) | (193,139) | (196,908) |
Financing activities: | |||
Issuances of short-term debt | 12,296 | 19,423 | 39,450 |
Repayment of short-term debt | (15,288) | (39,450) | (40,957) |
Issuance of long-term debt | 200,000 | 0 | 0 |
Repayment of long-term debt and finance lease obligations | (177,251) | (1,395) | (2,421) |
Payment of financing fees | (2,207) | (1,230) | 0 |
Repurchase of common stock | 0 | (30,183) | (90,868) |
Payments of employee taxes withheld from share-based awards | (1,376) | (2,111) | (7,002) |
Payment of dividends to noncontrolling shareholders | 0 | 0 | (282) |
Payment of dividends to Cooper Tire & Rubber Company stockholders | (21,068) | (21,138) | (21,914) |
Issuance of common shares related to stock-based compensation | 232 | 306 | 4,224 |
Net cash used in financing activities | (4,662) | (75,778) | (119,770) |
Effects of exchange rate changes on cash | 552 | 554 | 7,111 |
Net change in cash, cash equivalents and restricted cash | 34,879 | (14,060) | (131,943) |
Cash, cash equivalents and restricted cash at beginning of period | 378,246 | 392,306 | 524,249 |
Cash, cash equivalents and restricted cash at end of period | 413,125 | 378,246 | 392,306 |
Total cash, cash equivalents and restricted cash | $ 413,125 | $ 392,306 | $ 524,249 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Total Parent Stockholders’ Equity | Common Stock $1 Par Value | Capital in Excess of Par Value | Retained Earnings | Cumulative Other Comprehensive (Loss) Income | Common Shares in Treasury | Noncontrolling Shareholders’ Interests in Consolidated Subsidiaries |
Beginning Balance at Dec. 31, 2016 | $ 1,130,236 | $ 1,076,014 | $ 87,850 | $ 25,876 | $ 2,321,424 | $ (545,151) | $ (813,985) | $ 54,222 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 96,745 | 95,400 | 95,400 | 1,345 | ||||
Net income attributable to noncontrolling shareholders' interests | 1,345 | |||||||
Other comprehensive loss | 70,048 | 66,673 | 66,673 | 3,375 | ||||
Comprehensive income | 166,793 | 162,073 | 95,400 | 66,673 | 4,720 | |||
Dividends payable to noncontrolling shareholder | (282) | (282) | ||||||
Share repurchase program | (90,868) | (90,868) | (90,868) | |||||
Stock compensation plans, including tax benefit | 1,791 | 1,791 | (5,136) | (538) | 7,465 | |||
Cash dividends - $0.42 per share | (21,914) | (21,914) | (21,914) | |||||
Ending Balance at Dec. 31, 2017 | 1,185,756 | 1,127,096 | 87,850 | 20,740 | 2,394,372 | (478,478) | (897,388) | 58,660 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 80,563 | 76,586 | 76,586 | 3,977 | ||||
Net income attributable to noncontrolling shareholders' interests | 3,977 | |||||||
Other comprehensive loss | 14,652 | 16,889 | 16,889 | (2,237) | ||||
Comprehensive income | 95,215 | 93,475 | 76,586 | 16,889 | 1,740 | |||
Share repurchase program | (30,183) | (30,183) | (30,183) | |||||
Stock compensation plans, including tax benefit | 2,793 | 2,793 | 384 | (106) | 2,515 | |||
Cash dividends - $0.42 per share | (21,138) | (21,138) | (21,138) | |||||
Ending Balance at Dec. 31, 2018 | 1,232,443 | 1,172,043 | 87,850 | 21,124 | 2,449,714 | (461,589) | (925,056) | 60,400 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 98,317 | 96,404 | 96,404 | |||||
Net income attributable to noncontrolling shareholders' interests | 1,913 | 1,913 | ||||||
Other comprehensive loss | 14,804 | 14,009 | 14,009 | 795 | ||||
Comprehensive income | 113,121 | 110,413 | 96,404 | 14,009 | 2,708 | |||
Stock compensation plans, including tax benefit | 3,237 | 3,237 | 1,051 | (87) | 2,273 | |||
Cash dividends - $0.42 per share | (21,068) | (21,068) | (21,068) | |||||
Ending Balance at Dec. 31, 2019 | $ 1,327,733 | $ 1,264,625 | $ 87,850 | $ 22,175 | $ 2,524,963 | $ (447,580) | $ (922,783) | $ 63,108 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.42 | $ 0.42 | $ 0.42 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Principles of consolidation – The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. All intercompany accounts and transactions have been eliminated. The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the power to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in subsidiaries of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in subsidiaries of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. Cash and cash equivalents – The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company’s objectives related to the investment of cash not required for operations is to preserve capital, meet the Company’s liquidity needs and earn a return consistent with these guidelines and market conditions. Investments deemed eligible for the investment of the Company’s cash include: 1) U.S. Treasury securities and general obligations fully guaranteed with respect to principal and interest by the government; 2) obligations of U.S. government agencies; 3) commercial paper or other corporate notes of prime quality purchased directly from the issuer or through recognized money market dealers; 4) time deposits, certificates of deposit or bankers’ acceptances of banks rated “A-” by Standard & Poor’s or “A3” by Moody’s; 5) collateralized mortgage obligations rated “AAA” by Standard & Poor’s and “Aaa” by Moody’s; 6) tax-exempt and taxable obligations of state and local governments of prime quality; and 7) mutual funds or outside managed portfolios that invest in the above investments. The Company had cash and cash equivalents totaling $391,332 and $356,254 at December 31, 2019 and December 31, 2018 , respectively. The majority of the cash and cash equivalents were invested in eligible financial instruments in excess of amounts insured by the Federal Deposit Insurance Corporation and, therefore, subject to credit risk. Management believes that the probability of losses related to credit risk on investments classified as cash and cash equivalents is remote. Notes receivable – The Company has received bank secured notes from certain of its customers in the PRC to settle trade accounts receivable. These notes generally have maturities of six months or less and are redeemable at the bank of issuance. The Company evaluates the credit risk of the issuing bank prior to accepting a bank secured note from a customer. Management believes that the probability of material losses related to credit risk on notes receivable is remote. Accounts receivable – The Company records trade accounts receivable when revenue is recorded in accordance with its revenue recognition policy and relieves accounts receivable when payments are received from customers. Allowance for doubtful accounts – The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts throughout the year. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting specific accounts and management’s evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part, and are written off at that time through a charge against the allowance for doubtful accounts. Inventories – Inventory costs are determined using the LIFO method for substantially all U.S. inventories. Costs of other inventories have been determined by the first-in, first-out FIFO method. Inventories include direct material, direct labor, and applicable manufacturing and engineering overhead costs. FIFO inventories are valued at cost, which is not in excess of the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. LIFO inventories are valued at the lower of cost or market. Long-lived assets, including goodwill and right-of-use assets – Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives: Land improvements 10 to 20 years Buildings 10 to 40 years Machinery and equipment 5 to 14 years Furniture and fixtures 5 to 10 years Molds, cores and rings 2 to 10 years The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized over the estimated useful life of the software, which ranges from one to ten years . Intangibles with definite lives include trademarks, technology and intellectual property which were fully amortized as of December 31, 2019 . Land use rights are amortized over their remaining useful lives, which range from 36 to 43 years . On January 1, 2019, the Company adopted ASC 842, "Leases," which requires lessees to record right-of-use assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. The Company evaluates the recoverability of long-lived assets, including property, plant and equipment and right-of-use assets for operating and finance leases, based on undiscounted projected cash flows, excluding interest and taxes, when any impairment is indicated. Goodwill and indefinite-lived intangibles are assessed for potential impairment at least annually or when events or circumstances indicate impairment may have occurred. Earnings per common share – Net income per share is computed on the basis of the weighted average number of common shares outstanding each year. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: (Number of shares and dollar amounts in thousands except per share amounts) 2019 2018 2017 Numerator Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders $ 96,404 $ 76,586 $ 95,400 Denominator Denominator for basic earnings per share - weighted average shares outstanding 50,159 50,350 52,206 Effect of dilutive securities - stock options and other stock units 219 247 467 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 50,378 50,597 52,673 Earnings per share: Basic $ 1.92 $ 1.52 $ 1.83 Diluted $ 1.91 $ 1.51 $ 1.81 At December 31, 2019 , 2018 and 2017 , all options to purchase shares of the Company’s common stock were included in the computation of diluted earnings per share as the options’ exercise prices were less than the average market price of the common shares. Derivative financial instruments – Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not enter into financial instruments for trading or speculative purposes. The Company offsets fair value amounts recognized on the Consolidated Balance Sheets for derivative financial instruments executed with the same counter-party. The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated net asset and liability positions. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Consolidated Statements of Income in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. Foreign currency forward contracts are also used to hedge variable cash flows associated with forecasted sales and purchases denominated in currencies that are not the functional currency of certain entities. The forward contracts have maturities of less than twelve months pursuant to the Company’s policies and hedging practices. These forward contracts meet the criteria for and have been designated as cash flow hedges. Accordingly, the effective portion of the change in fair value of unrealized gains and losses on such forward contracts are recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company is exposed to interest rate risk on borrowings that bear interest at floating rates. The Company utilizes derivative instruments to manage the risk associated with the floating rate debt and has effectively fixed the variable interest rate component on the notional amount of this swap . The swaps qualify for hedge accounting and, therefore, changes in the fair value of the swaps have been recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company assesses hedge effectiveness quarterly. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. The Company also performs regression analysis comparing the change in value of the hedging contracts versus the underlying foreign currency sales and purchases, which confirms a high correlation and hedge effectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Consolidated Statements of Income in the period in which the ineffectiveness occurs. The Company is exposed to price risk related to forecasted purchases of certain commodities that are used as raw materials, principally natural rubber. Accordingly, it uses commodity contracts with forward pricing for a portion of its production requirements. These contracts generally qualify for the normal purchase exception under guidance for derivative instruments and hedging activities, and therefore are not subject to its provisions. Income taxes – Income tax expense is based on reported earnings or losses before income taxes in accordance with the tax rules and regulations of the specific legal entities within the various specific taxing jurisdictions where the Company’s income is earned. Taxable income may differ from earnings before income taxes for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, a provision for deferred income taxes is made using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset may not be realized. Deferred income taxes generally are not recorded on the majority of undistributed earnings of international subsidiaries based on the Company’s intention that these earnings will continue to be reinvested. Upon enactment of the Tax Act, the Transition Tax was recorded based on approximately $495 million of unremitted foreign earnings. During 2018 and 2019, the Company re-evaluated its position on potential earnings repatriation and has concluded that repatriation implications of the Tax Act had no impact on its indefinite reinvestment assertion. As such, no change has been made with respect to that assertion for the year ended December 31, 2019 . Product liability – The Company accrues costs for product liability at the time a loss is probable and the amount of loss can be estimated. The Company believes the probability of loss can be established and the amount of loss can be estimated only after certain minimum information is available, including verification that Company-produced 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 ASC 450 "Contingencies," the Company accrues the minimum liability for each known claim when the estimated outcome is a range of probable loss and no one amount within that range is more likely than another. The Company uses a range of losses because an average cost would not be meaningful since the product liability claims faced by the Company are unique and widely variable, and accordingly, the resolutions of those claims have an enormous amount of variability. The costs have ranged from zero dollars to $33 million in one case with no “average” that is meaningful. No specific accrual is made for individual unasserted claims or for premature claims, asserted claims where the minimum information needed to evaluate the probability of a liability is not yet known. However, an accrual for such claims based, in part, on management’s expectations for future litigation activity and the settled claims history is maintained. The Company periodically reviews such estimates and any adjustments for changes in reserves are recorded in the period in which the change in estimate occurs. Because of the speculative nature of litigation in the U.S., the Company does not believe a meaningful aggregate range of potential loss for asserted and unasserted claims can be determined. While the Company believes its reserves are reasonably stated, it is possible an individual claim from time to time may result in an aberration from the norm and could have a material impact. The product liability expense reported by the Company includes amortization of insurance premium costs, adjustments to 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. Advertising expense – Expenses incurred for advertising include production and media and are generally expensed when incurred. Costs associated with dealer-earned cooperative advertising are recorded as a reduction of the revenue component of Net sales at the time of sale. Advertising expense for 2019 , 2018 and 2017 was $58,453 , $54,177 and $52,798 , respectively. Stock-based compensation – The Company’s incentive compensation plans allow the Company to grant awards to employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance stock units, dividend equivalents and other awards. Compensation related to these awards is determined based on the fair value on the date of grant and is amortized to expense over the vesting period. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. See Note 14 – Stock-Based Compensation for additional information. Warranties – Warranties are provided on the sale of certain of the Company’s products and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities, which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets: 2019 2018 2017 Reserve at beginning of year 12,431 12,093 10,634 Additions 11,609 13,187 10,310 Payments (11,306 ) (12,849 ) (8,851 ) Reserve at December 31 12,734 12,431 12,093 Use of estimates – The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of: (1) revenues and expenses during the reporting period; and (2) assets and liabilities, as well as disclosure of contingent assets and liabilities, at the date of the consolidated financial statements. Actual results could differ from those estimates. Revenue recognition – In accordance with ASC 606 and ASU 2014-09, effective January 1, 2018, revenues are recognized 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. Shipping and handling costs are recorded in cost of products sold. Allowance programs such as volume rebates and cash discounts are recorded at the time of sale as a reduction to revenue based on anticipated accrual rates for the year. Research and development – Costs are charged to Cost of products sold as incurred and amounted to approximately $69,928 , $64,007 and $59,869 during 2019 , 2018 and 2017 , respectively. Related Party Transactions – The Company’s COOCSA joint venture paid $26,589 , $28,023 and $40,279 in 2019 , 2018 and 2017 , respectively, to an employment services company in Mexico owned by members of the joint venture workforce. COOCSA also recorded sales of $4,373 , $4,713 and $8,209 to the noncontrolling shareholder in 2019 , 2018 and 2017 , respectively. The Company purchased $10,920 and $775 of TBR tires from Sailun Vietnam in 2019 and 2018, respectively, through an off-take agreement between the two parties. Pensions and Postretirement Benefits Other than Pensions - The Company provides certain pension and postretirement benefits other than pensions to employees and retired employees, including pensions, postretirement health care benefits, other postretirement benefits, and supplemental pensions. In general, the Company's policy is to fund its pension benefit obligation based on legal requirements, tax and liquidity considerations and local practices. The Company does not fund its postretirement benefit obligation. Truck and Bus Tire Tariffs – Antidumping and countervailing duty investigations into certain TBR tires imported from the PRC into the U.S. were initiated on January 29, 2016. On February 22, 2017, the ITC made a final determination that the U.S. market had not suffered material injury because of imports of TBR tires from the PRC. However, on November 1, 2018, the CIT remanded the case back to the ITC for reconsideration. On January 30, 2019, the ITC reversed its earlier decision and made an affirmative determination of material injury. On February 15, 2019, the determination was published in the Federal Register and countervailing duties of 42.16 percent were imposed on the Company's TBR tire imports into the U.S. from China. The ITC’s re-determination, along with comments from the parties regarding the re-determination, were filed with the CIT. The CIT will make a final determination. Since the publication of the determination in the Federal Register, the Company incurred duties of $33,507 for the year ended December 31, 2019 . This was recorded as a component of Cost of products sold in the Consolidated Statements of Income . • Section 301 Tariffs - Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, passenger, light truck and truck and bus tires, raw materials and tire-manufacturing equipment from the PRC imported into the U.S. became subject to additional 10 percent duties effective September 24, 2018. These tariffs increased to 25 percent effective May 10, 2019. The Company has incurred duties of $19,053 and $6,431 for the years ended December 31, 2019 and 2018, respectively, related to these Section 301 tariffs. These amounts were recorded as a component of Cost of products sold in the Consolidated Statements of Income . • Duty Drawbacks - The enactment of the Modernized Drawback Final Rule under the TFTEA in December 2018 expanded the Company's ability to recover Section 301 and Ad Valorem duties paid on goods imported into the US when such goods, or similar items, are subsequently exported. Under the rule, recovery of duties is allowable for up to five years subsequent to the incurrence of the duty. In 2019, the Company recovered $20,091 of duties, $11,346 related to duties paid in prior years. These amounts were recorded as a component of Cost of products sold in the Consolidated Statements of Income . 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, covered the repair or replacement of the Company's assets that suffered loss or damage, and the Company worked closely with its insurance carriers and claims adjusters to ascertain the full amount of insurance proceeds due to the Company as a result of the damages and the loss the Company suffered. The Company's insurance policies also provided coverage for interruption to its business, including lost profits, and reimbursement for other expenses and costs that were incurred relating to the damages and losses suffered. For the year ended December 31, 2017, the Company incurred direct expenses of $12,583 , less proceeds of $7,000 recovered from insurance. For the year ended December 31, 2018, the Company recorded insurance recoveries of $7,300 , less direct costs of $1,569 . These amounts were recorded as a component of Cost of products sold in the Consolidated Statements of Income for the respective periods. The Company's insurance claim related to the tornado was closed in the year ended December 31, 2018, with no subsequent direct expenses or insurance recoveries. Recent Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. Accounting Pronouncements – Recently adopted SEC Disclosure Regulation Simplifications During the fourth quarter of 2018, the U.S. Securities and Exchange Commission (“SEC”) published Final Rule Release No. 33-10532, "Disclosure Update and Simplification." This standard, effective for quarterly and annual reports submitted after November 5, 2018, streamlines disclosure requirements by removing certain redundant topics. For the Company, the most notable simplification implemented in 2019 was the expansion of the shareholders' equity reconciliation to display quarter-to-quarter details beginning in the first quarter of 2019. The changes to the SEC rules impacted the presentation of the Company's filings, but did not materially impact the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires balance sheet recognition of lease liabilities and right-of-use assets for most leases having terms of twelve months or longer. The Company adopted the standard on the required effective date of January 1, 2019 using the transition option, “Comparatives Under 840 Option,” established by ASU 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). The FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients and other improvements to ASU 2016-02. The new guidance requires recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on the Company's Consolidated Balance Sheets . See Note 11 for additional details. 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. The Company adopted this standard effective January 1, 2019. The adoption of this standard did not materially impact the Company's consolidated financial statements. Additionally, in October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815)." The Federal Reserve and Alternative Reference Rates Committee expressed the importance of including the Overnight Index Swap ("OIS") rate based on the Secured Overnight Financing Rate ("SOFR") as a benchmark rate for hedge accounting purposes in facilitating broader use of the underlying SOFR rate in the marketplace to facilitate the market's move away from the London Interbank Offered Rate ("LIBOR"). This update, effective on January 1, 2019, provides the option to use the OIS rate based on SOFR as a benchmark for hedge accounting. The Company does not currently hold any SOFR-based instruments, but will continue to evaluate its use as the markets transition away from LIBOR. Related Parties In October 2018, the FASB issued ASU 2018-17 "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for VIEs." When determining if fees paid to decision makers and service providers are variable interests, entities must now also consider indirect interests of those decision makers and service providers held through related parties under common control. This standard is effective January 1, 2020, with early adoption permitted. The Company has incorporated this consideration into the related party procedures conducted as part of this annual report. No indirect interests of decision makers or service providers held through related parties under common control were identified. The adoption of this standard did not materially impact the Company's consolidated financial statements. Accounting Pronouncements – To be adopted Credit Losses In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The FASB issued subsequent amendments to the initial guidance in November 2018, April 2019 and May 2019 with ASU 2018-19, ASU 2019-04 and ASU 2019-05, respectively. Trade receivables (including the allowance for doubtful accounts) is the only financial instrument in scope for ASU 2016-13 currently held by the Company. Implementation is anticipated to include an update to the Company's allowance for doubtful accounts methodology from one based on accounts receivable aging to one based on sales stratified by customer credit score. Disclosures will be updated accordingly. The Company expects minimal, if any, impact on the consolidated financial statements as implementation analyses show materially equivalent results between the two methods. This standard is effective for interim and annual reporting periods beginning after December 15, 2019 with a modified retrospective approach. The Company plans to adopt the standard effective January 1, 2020. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)," which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs determining level 3 fair value measurements will be added. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements and plans to adopt the standard effective January 1, 2020. Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)," which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around the effect of a one-percentage-point change in assumed health care costs will be removed and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period will be added. This standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. These amendments must be applied on a retrospective basis for all periods presented. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)," which aligns the requirements for capitalizing implementation costs incurred in a service contract hosting arrangement with those of developing or obtaining internal-use software. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements and plans to adopt the standard effective January 1, 2020. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Restructuring | Restructuring On January 17, 2019, Cooper Tire Europe, a wholly owned subsidiary of the Company, committed to a plan to cease light vehicle tire production at its Melksham, U.K. facility, which is included in the International Segment. The phasing out of light vehicle tire production was substantially completed in the third quarter of 2019. Approximately 300 roles were eliminated at the site. Cooper Tire Europe now obtains light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, a materials business, Cooper Tire Europe headquarters, sales and marketing, and the Europe Technical Center. Costs related to the decision to cease light vehicle tire production at the Melksham, U.K. facility were $8,315 in 2019. In connection with this business realignment, a one-time payment from the U.S. to Serbia was made during the fourth quarter of 2019 in order to allow the Serbian operations to improve their financial standing and serve as a reliable and fully operational contract manufacturer for the U.S. In the fourth quarter of 2019, the Company's Asian operations, included in the International Segment, completed a headcount optimization review. As a result of this optimization, the Company incurred $1,262 of restructuring expense during 2019. For the year ended December 31, 2019 , the Company recorded restructuring expense of $8,818 , made up of employee severance, asset write-downs and other costs. At December 31, 2019 , the Company's accrued restructuring balance is 1,398 , composed primarily of severance costs related to the Asian operations. Twelve Months Ended December 31, 2019 Melksham employee severance costs $ 5,308 Asset write-downs & other costs 2,248 Asian operations employee severance costs 1,262 Total restructuring expense $ 8,818 Beginning balance of accrued restructuring $ — Accrued severance costs 6,630 Payment of severance costs (5,368 ) Accrued professional fees 819 Payment of professional fees (683 ) Ending balance of total accrued restructuring $ 1,398 In addition to the costs classified as restructuring expense on the Consolidated Statement of Income, the Company incurred additional costs of $759 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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 U.S. GAAP 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 revenue to be recognized 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. 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 to a customer. This occurs with shipment or delivery, depending on the underlying terms with the customer. 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. See Note 18 - Business Segments for additional details on the Company's reportable segments. 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 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. Disaggregation of revenue In the following tables, revenue is disaggregated by major market channel for the twelve months ended December 31, 2019 and 2018 , respectively: Twelve Months Ended December 31, 2019 Americas International Eliminations Total Light Vehicle (1) $ 2,096,864 $ 403,524 $ (68,658 ) $ 2,431,730 Truck and bus radial 200,088 80,797 (66,432 ) 214,453 Other (2) 56,774 49,682 — 106,456 Net sales $ 2,353,726 $ 534,003 $ (135,090 ) $ 2,752,639 Twelve Months Ended December 31, 2018 Americas International Eliminations Total Light Vehicle (1) $ 2,115,942 $ 481,499 $ (109,400 ) $ 2,488,041 Truck and bus radial $ 194,558 $ 101,744 $ (86,160 ) 210,142 Other (2) $ 52,146 $ 57,733 $ — 109,879 Net sales $ 2,362,646 $ 640,976 $ (195,560 ) $ 2,808,062 (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 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 twelve months ended December 31, 2019 are as follows: Contract Liabilities Contract liabilities at beginning of year $ 947 Increases to deferred revenue for cash received in advance from customers 16,297 Decreases due to recognition of deferred revenue (16,164 ) Contract liabilities at December 31, 2019 $ 1,080 Transaction price allocated to remaining performance obligations For the twelve months ended December 31, 2019 and 2018 , respectively, 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 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 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventory costs are determined using the LIFO method for substantially all U.S. inventories. The current cost of the U.S. inventories under the FIFO method was $365,585 and $380,990 at December 31, 2019 and December 31, 2018 , respectively. These FIFO values have been reduced by approximately $87,616 and $85,068 at December 31, 2019 and December 31, 2018 , respectively, to arrive at the LIFO value reported on the Consolidated Balance Sheets . The remaining inventories have been valued under the FIFO method. All LIFO inventories are valued at the lower of cost or market. All other inventories are stated at the lower of cost or net realizable value. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill is recorded in the segment where it was generated by acquisitions. In 2011, the Company recorded $18,851 of goodwill related to the acquisition of additional ownership of COOCSA in the Americas Tire Operations segment and, in 2016, the Company recorded goodwill in the amount of $33,250 related to the acquisition of GRT in the International Tire Operations segment. Goodwill prior to 2011 was zero . Purchased goodwill and indefinite-lived intangible assets are tested annually for impairment, unless indicators are present that would require an earlier test. On December 12, 2018, Cooper Vietnam and Sailun Vietnam entered into an equity joint venture contract to establish a joint venture in Vietnam which will produce and sell TBR tires. The new joint venture is expected to begin commercially producing tires in 2020. The capacity created by this planned facility will decrease expected production requirements for Cooper's GRT joint venture. The Company included the expected impact of the new Vietnam joint venture on projected future cash flows in performing its annual goodwill impairment assessment on GRT in 2018. Based on the assessment performed, the goodwill balance was deemed to be fully impaired and resulted in a non-cash fourth quarter 2018 impairment charge of $33,827 recorded in the Consolidated Statement of Income. The fair value of GRT utilized in the goodwill impairment assessment was determined based upon internal and external inputs considering various market transactions and discounted cash flow valuation methods, among other factors. This valuation approach represented a Level 3 fair value measurement measured on a non-recurring basis in the fair value hierarchy due to the Company's use of Company-specific inputs and unobservable measurement inputs. During the fourth quarter of 2019 , the Company completed its annual goodwill and intangible asset impairment tests and no impairment was indicated for the goodwill related to the 2011 acquisition of additional ownership of COOCSA or the Company's other indefinite-lived intangible assets. The following table presents intangible assets and accumulated amortization balances as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived: Capitalized software costs 205,929 (115,090 ) 90,839 197,338 (97,972 ) 99,366 Land use rights 14,145 (3,545 ) 10,600 14,526 (3,860 ) 10,666 Trademarks and tradenames 3,800 (3,800 ) — 8,000 (7,823 ) 177 Other 1,400 (1,300 ) 100 3,261 (2,966 ) 295 225,274 (123,735 ) 101,539 223,125 (112,621 ) 110,504 Indefinite-lived: Trademarks 9,817 — 9,817 9,817 — 9,817 $ 235,091 $ (123,735 ) $ 111,356 $ 232,942 $ (112,621 ) $ 120,321 Estimated amortization expense over the next five years is as follows: 2020 - $19,274 , 2021 - $18,723 , 2022 - $16,935 , 2023 - $15,866 and 2024 - $14,378 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Note 6 . Accrued Liabilities Accrued liabilities at December 31 were as follows: 2019 2018 Volume and customer rebate programs $ 99,168 $ 115,623 Payroll and employee benefits, excluding postemployment benefits 75,218 63,557 Operating lease liability, current 27,663 — Product liability 25,366 30,550 Other postretirement benefits 14,334 15,344 Advertising 13,281 16,036 Taxes other than income taxes 12,505 13,571 Warranty 8,041 8,273 Other 26,901 19,696 Accrued liabilities $ 302,477 $ 282,650 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Components of income (loss) from continuing operations before income taxes and noncontrolling shareholders’ interests were as follows: 2019 2018 2017 United States $ (4,720 ) $ 108,838 $ 211,225 Foreign 114,392 5,220 32,700 Total $ 109,672 $ 114,058 $ 243,925 The provision (benefit) for income tax for continuing operations consisted of the following: 2019 2018 2017 Current: Federal $ 2,659 $ 56 $ 69,463 State and local 5,386 5,350 6,304 Foreign 9,733 7,214 9,842 17,778 12,620 85,609 Deferred: Federal 1,356 18,293 48,866 State and local (4,027 ) 3,266 4,915 Foreign (3,752 ) (684 ) 7,790 (6,423 ) 20,875 61,571 $ 11,355 $ 33,495 $ 147,180 On December 22, 2017, the U.S. enacted comprehensive tax legislation ("Tax Act"), which made broad and complex changes to the tax code. In conjunction with guidance set forth under SAB 118 pertaining to the Tax Act, 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 percent and for the mandatory Transition Tax on unrepatriated foreign earnings. During the year ended December 31, 2018, the Company concluded its accounting under the Tax Act and updated its SAB 118 provisional estimates with respect to remeasurement of U.S. deferred tax assets and the Transition Tax on unrepatriated foreign earnings and recorded a tax benefit of $3,576 and tax expense of $5,026 , respectively. During the year ended December 31, 2019, final Transition Tax regulations were issued resulting in the Company recording an additional Transition Tax liability of $1,661 . The Company's outstanding Transition Tax payable as a result of the enactment of the Tax Act, subsequent SAB 118 revisions, and adjustments related to the final regulations was $20,434 and $18,773 at December 31, 2019 and 2018, respectively. 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. For the year ended December 31, 2018, the Company determined that its accounting policy is to record GILTI as a period cost only in the period it is incurred. For the years ended December 31, 2019 and 2018, the Company recognized additional tax expense associated with GILTI, exclusive of GILTI foreign tax credits, which is reflected in the rate reconciliation below. Prior to enactment of the Tax Act, the Company did not recognize a deferred tax liability related to the U.S. federal and state income taxes and foreign withholding taxes on unremitted foreign earnings because it overcame the presumption of the repatriation of those earnings. Upon enactment of the Tax Act, the Transition Tax was recorded based on approximately $495 million of unremitted foreign earnings. During 2018 and 2019, the Company re-evaluated its position on potential earnings repatriation and has concluded that repatriation implications of the Tax Act had no impact on its indefinite reinvestment assertion. As such, no change has been made with respect to the Company's indefinite reinvestment assertion for the year ended December 31, 2019 and foreign income, foreign withholding, and state income tax liabilities have not been recorded on approximately $727 million of undistributed foreign earnings. Determination of the amount of any deferred income or withholding tax liability on these earnings is not practicable because of the complexities of the hypothetical calculation. During the year ended December 31, 2019, the Company's rate was primarily driven by a change in the mix of earnings between the U.S. and non-U.S. jurisdictions compared to 2018 and 2017. The change in the mix of earnings resulted from a business realignment strategy executed during 2019, as further described in Note 2, to improve the Company's market share for its European light vehicle tire business. The resulting tax effects are reflected as the difference in effective tax rates of international operations in the rate reconciliation below. The Company's Serbian operations are benefiting from a ten-year tax holiday that is based largely on historical investments in property, plant, and equipment which has the impact of reducing the effective tax rate in Serbia to approximately 1.5% . The Company utilized remaining loss carryforwards during 2019 and recognized a tax holiday benefit of $15,030 inclusive of the impact of the business realignment strategy. The tax holiday will expire in 2026. A reconciliation of income tax expense (benefit) for continuing operations to the tax based on the U.S. statutory rate is as follows: 2019 2018 2017 Income tax provision at 35 percent $ — $ — $ 85,375 Income tax provision at 21 percent 23,031 23,952 — Difference in effective tax rates of international operations (21,399 ) (1,124 ) (4,667 ) State and local income tax, net of federal income tax effect (2,366 ) 2,983 7,867 Net U.S. GILTI inclusion 8,419 1,455 — Valuation allowance 6,306 (2,433 ) 11,593 Income tax contingencies, net of federal income tax effect 4,246 1,263 (551 ) Domestic manufacturing deduction — — (2,940 ) U.S. tax credits (6,292 ) (4,401 ) (2,474 ) Goodwill impairment — 8,432 — Mexico inflationary deferred tax adjustments (1,790 ) 259 (1,383 ) U.S. tax reform - transition tax 1,661 5,026 35,378 U.S. tax reform - remeasurement of deferred taxes — (3,576 ) 20,413 Other - net (461 ) 1,659 (1,431 ) Provision for income taxes $ 11,355 $ 33,495 $ 147,180 Payments for income taxes in 2019 , 2018 and 2017 , net of refunds, were $10,244 , $19,763 and $67,782 , respectively. Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial reporting purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31 were as follows: 2019 2018 Deferred tax assets: Postretirement and other employee benefits $ 94,581 $ 97,269 Product liability 30,791 27,922 Net operating loss, capital loss, and tax credit carryforwards 14,291 11,064 All other items 37,296 29,375 Total deferred tax assets 176,959 165,630 Deferred tax liabilities: Property, plant and equipment (117,148 ) (108,668 ) All other items (6,141 ) (6,196 ) Total deferred tax liabilities (123,289 ) (114,864 ) 53,670 50,766 Valuation allowances (27,270 ) (22,620 ) Net deferred tax asset $ 26,400 $ 28,146 At December 31, 2019 , the Company has gross U.S. federal and foreign tax losses available for carryforward of $6,560 and $76,748 , respectively. U.S. federal and foreign tax attributes will expire from 2020 through 2026. For these jurisdictions, valuation allowances have been recorded against those attributes for which, based upon an assessment, it is more likely than not that some portion may not be realized. The Company considers, on a quarterly basis, all available positive and negative evidence in assessing whether it is more likely than not that some portion or all of its deferred tax assets are realizable. The Company considers the historical and projected financial results of the tax paying component recording the deferred tax asset as well as all other positive and negative evidence including cumulative losses in recent years, a history of potential tax benefits expiring unused and whether a period of sustainable earnings has been demonstrated. During the year ended December 31, 2019, the Company has assessed all available positive and negative evidence and, based on the weight of significant negative evidence, including cumulative losses, the Company has maintained valuation allowances totaling $27,270 against deferred tax assets primarily in China and the U.K. The Company applies the rules under ASC 740-10 in its Accounting for Uncertainty in Income Taxes for uncertain tax positions using a “more likely than not” recognition threshold. Pursuant to these rules, the Company will initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits of the tax position, that such a position will be sustained upon examination by the relevant tax authorities. If the tax benefit meets the “more likely than not” threshold, the measurement of the tax benefit will be based on the Company’s estimate of the largest amount that meets the more likely than not recognition threshold. The Company’s unrecognized tax benefits, exclusive of interest, totaled approximately $9,934 at December 31, 2019 , as itemized in the tabular roll forward below. The unrecognized tax benefits at December 31, 2019 relate to uncertain tax positions in tax years 2012 through 2017. Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is reasonably possible that the ultimate resolution of these unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. Unrecognized Tax Benefits Balance at December 31, 2016 $ 3,197 Settlements for tax positions of prior years (139 ) Additions for tax positions of current year 47 Additions for tax positions of prior years 438 Statute lapses (1,260 ) Balance at December 31, 2017 2,283 Settlements for tax positions of prior years (364 ) Additions for tax positions of the current year 2,555 Additions for tax positions of prior years 2,881 Statute lapses (830 ) Balance at December 31, 2018 6,525 Settlements for tax positions of prior years (1,567 ) Additions for tax positions of the prior year 5,644 Statute lapses (668 ) Balance at December 31, 2019 $ 9,934 Of this amount, the effective rate would change upon the recognition of approximately $8,468 of these unrecognized tax benefits, net of federal income tax effect. The Company recorded, through the tax provision, approximately $1,262 of net interest expense for 2019 , and immaterial amounts of benefit on interest reductions for 2018 and 2017. At December 31, 2019 , the Company has $1,353 of interest accrued as an ASC 740-10 reserve. The Company operates in multiple jurisdictions throughout the world. The Company has effectively settled U.S. federal tax examinations for tax years before 2016 and state and local examinations for tax years before 2014, with limited exceptions. Furthermore, the Company’s non-U.S. subsidiaries are generally no longer subject to income tax examinations in major foreign taxing jurisdictions for tax years prior to 2014. Income tax returns of certain of our subsidiaries in various jurisdictions are currently under examination and it is possible that these examinations could conclude within the next twelve months; however, the Company does not anticipate any significant increases or decreases in its total amount of unrecognized tax benefits within that period. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On February 15, 2018, the Company amended its revolving credit facility ("Credit Facility") with a consortium of banks that provided up to $400,000 based on available collateral, including an $110,000 letter of credit subfacility, set to expire in February 2023 . As of June 27, 2019, the Company amended this Credit Facility with a consortium of several banks that provides up to $700,000 and is set to expire in June 2024 . Of this amended borrowing capacity, $200,000 was allocated to a Delayed Draw Term Loan A ("Term Loan A"), which was drawn in December 2019, while the remaining $500,000 was allocated to the Credit Facility to provide working capital and funds for general corporate purposes. The Term Loan A funds were used primarily to pay for the unsecured notes which matured at that time. The Credit Facility still includes the $110,000 letter of credit sub-facility. The Company may elect, with lender consent, to increase the commitments under the Credit Facility or incur one or more tranches of term loans in an aggregate amount of up to $300,000 (or an unlimited increase if the Proforma Net Secured Leverage Ratio is less than 1.75 x). Debt issuance costs related to the Credit Facility amendment totaled $1,507 while those related to the Term Loan A totaled $700 , for a combined $2,207 in debt issuance costs. These costs, along with the remaining debt issuance costs from the February 2018 credit facility amendment, will be amortized over the life of the underlying debt instruments and are included in the Other assets classification in the Consolidated Balance Sheets . The Company may elect to add certain foreign subsidiaries as additional borrowers under the Credit Facility, subject to the satisfaction of certain conditions. On July 11, 2019 , the Company entered into forward-starting interest rate swaps to effectively hedge the cash flow exposure associated with the Company's forthcoming Term Loan A variable-rate borrowings. See Note 9 Fair Value Measurement for further information. The Company's accounts receivable securitization facility 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 no borrowings under the revolving credit facility or the accounts receivable securitization facility at December 31, 2019 or December 31, 2018 , other than amounts used to secure letters of credit. Amounts used to secure letters of credit totaled $21,651 at December 31, 2019 and $16,800 at December 31, 2018 . The Company’s additional borrowing capacity, net of borrowings and amounts used to back letters of credit, and based on eligible collateral through use of its credit facility with its bank group and its accounts receivable securitization facility at December 31, 2019 , was $601,649 . The Company’s consolidated operations in Asia have renewable unsecured credit lines that provide up to $46,426 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 $34,130 at December 31, 2019 . In 2010 and 2017, Industrial Revenue Bonds (IRBs) were issued by the City of Texarkana to finance the design, equipping and construction of expansions, as well as the on-going operations of the Texarkana manufacturing facility, in return for real estate and equipment located at the Company’s Texarkana tire manufacturing plant. The assets related to the expansion and on-going plant operations provide security for the bonds issued by the City of Texarkana. As a result, the City retains title to the assets and, in turn, provides a 100 percent property tax exemption to the Company. However, the Company has recorded the property in its Consolidated Balance Sheets, along with a capital lease obligation to repay the proceeds of the IRBs, because the arrangements are cancelable at any time at the Company’s request. The Company has also purchased the IRBs and therefore is the bondholder, as well as the borrower/lessee of the property purchased with the IRB proceeds. The capital lease obligations and IRB assets are recorded net in the Consolidated Balance Sheets. At December 31, 2019 and 2018 , the assets and liabilities associated with these City of Texarkana IRBs were $72,080 and $35,000 , respectively. The following table summarizes the long-term debt and finance leases of the Company at December 31, 2019 and December 31, 2018 . December 31, 2019 December 31, 2018 Parent company 3.3% Term Loan A due June 2024 $ 197,500 $ — 8% Unsecured Notes due December 2019 — 173,578 7.625% Unsecured Notes due March 2027 116,880 116,880 Finance leases and other 6,263 6,245 320,643 296,703 Less: unamortized debt issuance costs 1,230 659 319,413 296,044 Less: current maturities 10,265 174,760 $ 309,148 $ 121,284 Over the next five years, the Company has payments related to the above debt of: Future Debt Payments 2020 $ 10,000 2021 17,563 2022 15,000 2023 17,500 2024 142,500 Interest paid on debt during 2019 , 2018 and 2017 was $33,161 , $34,070 and $34,085 , respectively. The amount of interest capitalized was $2,233 , $2,663 and $2,706 during 2019 , 2018 and 2017 , respectively. In addition, at December 31, 2019 and December 31, 2018 , the Company had short-term notes payable of $12,296 and $15,288 , respectively, due within twelve months, consisting of funds borrowed by the Company’s operations in the PRC. The weighted average interest rate of the short-term notes payable at December 31, 2019 and December 31, 2018 was 4.70 percent and 4.82 percent , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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 various currencies 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 two years . The notional amount of these foreign currency derivative instruments at December 31, 2019 and December 31, 2018 was $167,915 and $129,542 , 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 ( $(1,033) and $2,216 as of December 31, 2019 and December 31, 2018 , respectively) are recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transactions occur. The Company utilizes cross-currency interest rate swaps to hedge the principal and interest repayment of some intercompany loans. The Company also utilizes designated foreign currency forward contracts to hedge the principal amounts of certain intercompany loans. The fair value of these contracts is $(994) and $(1,503) at December 31, 2019 and December 31, 2018 , respectively. These contracts have maturities of up to two 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. On July 11, 2019 , in order to hedge its upcoming Term Loan A variable rate debt, with an interest rate indexed to LIBOR plus 150 basis points, the Company entered into forward-starting interest rate swaps with effective dates of December 2, 2019 and termination dates of June 27, 2024. The initial notional amount of these swaps is $200,000 and decreases quarterly by varying amounts over the life of the swaps, in accordance with the Term Loan A repayment schedule. The net quarterly payments made as of December 31, 2019 were immaterial . The interest rate swaps effectively fix the variable interest rate component on the notional amount of these swaps at 1.720% . The swaps qualify for hedge accounting and, therefore, changes in the fair value of the swaps have been recorded in accumulated other comprehensive income in the amount of $(1,032) at December 31, 2019 . 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 derivative instruments are subject to master netting arrangements with the counterparties to the contracts. The following table presents the location and amounts of derivative instrument fair values in the Consolidated Balance Sheets : Assets/(liabilities) December 31, 2019 December 31, 2018 Designated as hedging instruments: Gross amounts recognized $ (3,208 ) $ (1,524 ) Gross amounts offset 149 2,237 Net amounts (3,059 ) 713 Not designated as hedging instruments: Gross amounts recognized $ (1,118 ) $ (544 ) Gross amounts offset 76 201 Net amounts (1,042 ) (343 ) Net amounts presented: Other current assets $ (2,420 ) $ 1,750 Other long-term liabilities $ (1,681 ) $ (1,380 ) The following table presents the location and amount of gains and losses on derivative instruments designated as cash flow hedges in the Consolidated Statements of Income : Twelve Months Ended December 31, 2019 2018 2017 Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives $ (2,612 ) $ 5,040 $ (6,092 ) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net sales $ 988 $ 1,453 $ (2,532 ) Interest expense (123 ) (134 ) (69 ) Other non-operating expense 276 1,093 (1,018 ) $ 1,141 $ 2,412 $ (3,619 ) The following table presents the location and amount of gains and losses on foreign exchange contract derivatives not designated as hedging instruments in the Consolidated Statements of Income . Twelve Months Ended December 31, 2019 2018 2017 Other non-operating (expense) income $ (2,674 ) $ 602 $ (3,464 ) The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within the different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company has the ability to access. Level 2. Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following. a. Quoted prices for similar assets or liabilities in active markets; b. Quoted prices for identical or similar assets or liabilities in non-active markets; c. Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d. Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3. Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The valuation of foreign currency derivative instruments was determined using widely accepted valuation techniques. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including forward points. The Company incorporated credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as current credit ratings, to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2019 and December 31, 2018 , 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 December 31, 2019 and December 31, 2018 : December 31, 2019 Total Quoted Prices Significant Significant Foreign Currency Derivative $ (3,069 ) $ — $ (3,069 ) $ — Interest Rate Swaps (1,032 ) — (1,032 ) — Stock-based Liabilities (14,971 ) (14,971 ) — — December 31, 2018 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 $ 370 $ — $ 370 $ — Stock-based Liabilities (14,644 ) (14,644 ) — — The fair market value of Cash and cash equivalents , Notes receivable , restricted cash included in Other current assets , Notes payable and Current portion of long-term debt and finance leases at December 31, 2019 and December 31, 2018 are equal to their corresponding carrying values as reported on the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018 , respectively. Each of these classes of assets and liabilities is classified within Level 1 of the fair value hierarchy. The fair market value of Long-term debt and finance leases is $292,719 and $137,343 at December 31, 2019 and December 31, 2018 , respectively, and is classified within Level 1 of the fair value hierarchy. The carrying value of Long-term debt is $309,148 and $121,284 as reported on the Consolidated Balance Sheets as of December 31, 2019 and December 31, 2018 , respectively. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The Company has a number of plans providing pension and retirement benefits. These plans include defined benefit and defined contribution plans. The plans cover substantially all U.S. domestic employees. There are also plans that cover employees in the U.K. and Germany. The Company has an unfunded, nonqualified supplemental retirement benefit plan in the U.S. covering certain employees whose participation in the qualified plan is limited by provisions of the Internal Revenue Code. For defined benefit plans, benefits are generally based on compensation and length of service for salaried employees and length of service for hourly employees. In the U.S., the Company froze the pension benefits in its Spectrum (salaried employees) Plan in 2009. In 2012, the Company closed the U.S. pension plans for the bargaining units to new participants. Certain grandfathered participants in the bargaining unit plans continue to accrue pension benefits. Employees of certain of the Company’s foreign operations in the U.K. and Germany are covered by either contributory or non-contributory trusteed pension plans. In 2012, the Company froze the benefits in the U.K. pension plan. Participation in the Company’s defined contribution plans is voluntary. The Company matches plan participants’ contributions up to various limits. Participants’ contributions are limited based on their compensation and, for certain supplemental contributions which are not eligible for Company matching, based on their age. Certain employees covered by collective bargaining units receive company contributions. Expense for the defined contribution plans was $13,370 , $12,424 and $13,931 for 2019 , 2018 and 2017 , respectively. The Company currently provides retiree health care and life insurance benefits to a portion of its U.S. salaried and hourly employees. U.S. salaried and non-bargained hourly employees hired on or after January 1, 2003 are not eligible for retiree health care or life insurance coverage. The Company has reserved the right to modify or terminate certain of these salaried benefits at any time. The Company has implemented household caps on the amounts of retiree medical benefits it will provide to certain retirees in the U.S. The caps do not apply to individuals who retired prior to certain specified dates. Costs in excess of these caps will be paid by plan participants. The Company implemented increased cost sharing in 2004 in the retiree medical coverage provided to certain eligible current and future retirees. Since then, cost sharing has expanded such that nearly all covered retirees pay a charge to be enrolled. In accordance with U.S. GAAP, the Company recognizes the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligation) of its pension and OPEB plans and the net unrecognized actuarial losses and unrecognized prior service costs in the consolidated balance sheets. The unrecognized actuarial losses and unrecognized prior service costs (components of Accumulated other comprehensive loss in the Equity section of the balance sheet) will be subsequently recognized as net periodic benefit costs pursuant to the Company’s historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit costs in the same periods will be recognized as a component of other comprehensive income. The following table reflects changes in the projected obligations and fair market values of assets in all defined benefit pension and other postretirement benefit plans of the Company: 2019 Pension Benefits 2018 Pension Benefits Other Postretirement Benefits Domestic International Total Domestic International Total 2019 2018 Change in benefit obligation: Projected Benefit Obligation at beginning of year $ 1,004,751 $ 404,629 $ 1,409,380 $ 1,088,633 $ 461,426 $ 1,550,059 $ 251,798 $ 271,726 Service cost - employer 8,906 — 8,906 10,363 — 10,363 1,573 1,948 Interest cost 39,499 11,061 50,560 36,840 11,161 48,001 9,887 9,251 Actuarial loss/(gain) 113,828 48,721 162,549 (67,543 ) (28,064 ) (95,607 ) (9,664 ) (19,909 ) Benefits paid (63,176 ) (14,542 ) (77,718 ) (63,542 ) (17,889 ) (81,431 ) (12,044 ) (11,218 ) Plan amendment 3,069 — 3,069 — 3,704 3,704 — — Settlements — (18,196 ) (18,196 ) — — — — — Foreign currency translation effect — 15,013 15,013 — (25,709 ) (25,709 ) — — Projected Benefit Obligation at December 31 $ 1,106,877 $ 446,686 $ 1,553,563 $ 1,004,751 $ 404,629 $ 1,409,380 $ 241,550 $ 251,798 Change in plans’ assets: Fair value of plans’ assets at beginning of year $ 912,129 $ 349,001 $ 1,261,130 $ 944,346 $ 385,879 $ 1,330,225 $ — $ — Actual return on plans’ assets 159,949 38,139 198,088 (33,063 ) (8,591 ) (41,654 ) — — Employer contribution 38,312 10,587 48,899 64,388 10,725 75,113 — — Benefits paid (63,176 ) (14,542 ) (77,718 ) (63,542 ) (17,889 ) (81,431 ) — — Settlements — (18,196 ) (18,196 ) — — — — — Foreign currency translation effect — 14,353 14,353 — (21,123 ) (21,123 ) — — Fair value of plans’ assets at December 31 $ 1,047,214 $ 379,342 $ 1,426,556 $ 912,129 $ 349,001 $ 1,261,130 $ — $ — Funded status $ (59,663 ) $ (67,344 ) $ (127,007 ) $ (92,622 ) $ (55,628 ) $ (148,250 ) $ (241,550 ) $ (251,798 ) Amounts recognized in the balance sheets: Accrued liabilities $ (300 ) $ — $ (300 ) $ (300 ) $ — $ (300 ) $ (14,334 ) $ (15,344 ) Postretirement benefits other than pensions — — — $ (227,216 ) $ (236,454 ) Pension benefits $ (59,363 ) $ (67,344 ) $ (126,707 ) $ (92,322 ) $ (55,628 ) $ (147,950 ) — — Included in Accumulated other comprehensive loss at December 31, 2019 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service costs of $5,780 ( $4,338 net of tax) and unrecognized actuarial losses of $413,676 ( $384,507 net of tax). Included in Accumulated other comprehensive loss at December 31, 2018 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of ($497) ( ($373) net of tax) and unrecognized actuarial losses of $438,176 ( $401,979 net of tax). The prior service cost and actuarial loss included in accumulated other comprehensive loss that are expected to be recognized in net periodic benefit cost during the fiscal year-ended December 31, 2020 are $620 and $33,169 , respectively. The accumulated benefit obligation for all defined benefit pension plans was $1,552,037 and $1,406,263 at December 31, 2019 and 2018 , respectively. In 2019, lump-sum distributions out of the U.K. pension plan of $18,196 were made from plan assets. The vested benefit obligation associated with these former employees was approximately four percent of the U.K. plan's benefit obligation. Due to the size of the lump-sum distributions, in accordance with U.S. GAAP, the Company was required to recognize a non-cash settlement charge of $4,262 for all 2019 settlements out of the U.K. plan. Additionally, in 2019, an amendment to a domestic pension plan resulted in a retroactive increase in benefit levels for plan participants and has been accounted for as a prior service cost deferred in Other comprehensive loss, to be amortized as a component of net periodic benefit cost in future periods. The domestic pension plan projected benefit obligation increased $3,069 as a result of the amendment. On October 26, 2018, in Lloyds Banking Group Pensions Trustees Limited vs. Lloyds Bank plc and Others , the High Court of Justice in the United Kingdom issued a ruling ("Court Ruling") requiring Lloyds Bank plc to equalize benefits payable to men and women under its U.K. defined benefit pension plan. The Court Ruling noted that the formulas used to determine guaranteed minimum pension (GMP) benefits violated gender-pay equality laws due to differences in the way benefits were calculated for men and women. As a result of this ruling, the U.K. pension plan was required to amend its benefit formulas and account for the higher pension payments resulting from GMP equalization. In accordance with ASC 715, this Court Ruling represents a change to the U.K. pension plan resulting in a retroactive increase in benefit levels for plan participants and has been accounted for as a prior service cost deferred in Other comprehensive loss, to be amortized as a component of net periodic benefit cost in future periods. The U.K. pension plan projected benefit obligation increased $ 3,704 as a result of the amendment required due to the Court Ruling. Weighted average assumptions used to determine benefit obligations at December 31: Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 All plans Discount rate 2.78 % 3.70 % 3.12 % 4.05 % Domestic plans Discount rate 3.09 % 4.05 % 3.12 % 4.05 % Foreign plans Discount rate 1.99 % 2.80 % — — At December 31, 2019 , the weighted average assumed annual rate of increase in the cost of medical benefits was 6.75 percent trending linearly to 4.50 percent per annum in 2029 . The following tables disclose the amount of net periodic benefit costs for the twelve months ended December 31, 2019 and 2018 , respectively, for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 8,906 $ 10,363 $ 9,860 Interest cost 39,499 36,840 39,251 Expected return on plan assets (48,034 ) (54,035 ) (54,058 ) Amortization of actuarial loss 32,432 32,939 37,122 Amortization of prior service cost $ 703 — — Net periodic benefit cost $ 33,506 $ 26,107 $ 32,175 Pension Benefits - International Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 11,061 $ 11,161 $ 11,525 Expected return on plan assets (11,554 ) (12,073 ) (11,262 ) Amortization of actuarial loss 3,411 4,264 5,448 Amortization of prior service cost 309 — — Effect of settlements 4,262 — — Net periodic benefit cost $ 7,489 $ 3,352 $ 5,711 Other Post Retirement Benefits Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 1,573 $ 1,948 $ 2,003 Interest cost 9,887 9,251 10,063 Amortization of prior service credit (409 ) (541 ) (566 ) Net periodic benefit cost $ 11,051 $ 10,658 11,500 Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 All plans Discount rate 3.70 % 3.20 % 3.54 % 4.05 % 3.50 % 3.95 % Expected return on plan assets 5.00 % 5.34 % 5.57 % — % — % — % Domestic plans Discount rate 4.05 % 3.50 % 3.90 % 4.05 % 3.50 % 3.95 % Expected return on plan assets 5.66 % 6.25 % 6.50 % — % — % — % Foreign plans Discount rate 2.80 % 2.50 % 2.50 % — % — % — % Expected return on plan assets 3.34 % 3.19 % 3.29 % — % — % — % The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets at December 31, 2019 and 2018 . The Spectrum Plan is excluded from the December 31, 2019 amounts as the plan assets exceeded the projected benefit obligation and accumulated benefit obligation at that date. December 31, 2019 2018 (a) Projected benefit obligation $ 1,052,824 $ 1,409,380 Accumulated benefit obligation 1,051,298 1,406,263 Fair value of plan assets 909,890 1,261,130 The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Spectrum Plan, which had plan assets in excess of projected benefit obligations and accumulated benefit obligations at December 31, 2019: December 31, 2019 2018 (a) Projected benefit obligation $ 500,739 $ — Accumulated benefit obligation $ 500,739 $ — Fair value of plan assets $ 516,666 $ — (a) - In 2018 all plans had projected and accumulated benefit obligations in excess of plan assets. Assumed health care cost trend rates for other postretirement benefits have a significant effect on the amounts reported. A one-percentage-point change in assumed health care cost trend rates would have the following effects: Percentage Point Increase Decrease Increase (decrease) in total service and interest cost components $ 16 $ (17 ) Increase (decrease) in the other postretirement benefit obligation 514 (548 ) The table below presents the weighted average asset allocations for the domestic and U.K. pension plans’ assets at December 31, 2019 and December 31, 2018 by asset category. U.S. Plans U.K. Plan Asset Category 2019 2018 2019 2018 Fixed Income Collective Trust Funds and Securities 65 % 68 % 68 % 70 % Equity Collective Trust Funds and Securities 30 26 19 17 Other Investment Collective Trust Funds and Securities 3 3 12 12 Cash 2 3 1 1 Total 100 % 100 % 100 % 100 % The Company manages the plans' asset allocation relative to the liability profile and funded status of the plans. It is expected that as the plan’s funded status improves, the portfolio will take less risk as to preserve the funded status of the plan framework. The plans follow a glide path whereby a target return-seeking allocation is followed based upon a given funded ratio level. The plans' position with respect to the glide path is monitored and asset allocation and strategy changes to the plans' portfolio are made as appropriate. The plans' strategy is also monitored in relation to the capital markets, interest rates, and the regulatory environment. The assets of the Company’s pension plan in Germany consist of investments in German insurance contracts. In 2018, the Company made a $25 million one-time additional discretionary contribution to the U.S. pension plans. This contribution improved the funding of the U.S. pension plans, while generating tax savings for the Company due to the deductibility of the contribution on the Company's 2017 tax return at a 35 percent federal corporate income tax rate, prior to the enactment of the Tax Act as of January 1, 2018. The fair market value of U.S. plan assets was $1,047,214 and $912,129 at December 31, 2019 and 2018 , respectively. The fair market value of the U.K. plan assets was $377,536 and $347,108 at December 31, 2019 and 2018 , respectively. The fair market value of the German pension plan assets was $1,806 and $1,893 at December 31, 2019 and 2018 , respectively. The table below classifies the assets of the U.S. and U.K. plans using the Fair Value Hierarchy described in Note 9 - Fair Value Measurements. Fair Value Hierarchy Total Level 1 Level 2 Level 3 NAV (1) December 31, 2019 United States plans Cash and cash equivalents $ 23,867 $ 23,867 $ — $ — $ — Collective Trust Funds - Equity 309,794 — — — 309,794 Collective Trust Funds - Fixed income 682,279 — 22,410 — 659,869 Collective Trust Funds - Real Estate 31,274 $ — $ — $ — $ 31,274 $ 1,047,214 $ 23,867 $ 22,410 $ — $ 1,000,937 United Kingdom plan Cash and cash equivalents $ 1,802 $ 1,802 $ — $ — $ — Equity securities 72,503 72,503 — — — Fixed income securities 259,192 259,192 — — — Other investments 44,039 — 13,859 30,180 — $ 377,536 $ 333,497 $ 13,859 $ 30,180 $ — December 31, 2018 United States plans Cash & Cash Equivalents $ 23,896 $ 23,896 $ — $ — $ — Collective Trust Funds - Equity 238,795 — — — 238,795 Collective Trust Funds - Fixed Income 622,576 — 10,514 — 612,062 Collective Trust Funds - Real Estate 26,862 — — — 26,862 $ 912,129 $ 23,896 $ 10,514 $ — $ 877,719 United Kingdom plan Cash & Cash Equivalents $ 1,644 $ 1,644 $ — $ — $ — Equity securities 58,848 58,848 — — — Fixed income securities 244,262 244,262 — — — Other investments 42,354 — 13,416 28,938 — $ 347,108 $ 304,754 $ 13,416 $ 28,938 $ — (1) Investments in common/ collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets. Plan assets are measured at fair value. While the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s valuation methodologies used for the plan assets measured at fair value are as follows: Cash and cash equivalents – Cash and cash equivalents include cash on deposit and investments in money market mutual funds that invest mainly in short-term instruments and cash, both of which are valued using a market approach. Equity securities – Common, preferred, and foreign stocks are valued using a market approach at the closing price on their principal exchange and are included in Level 1 of the fair value hierarchy. Fixed income securities – Corporate and foreign bonds are valued using a market approach at the closing price reported on the active market on which the individual securities are traded and are included in Level 1 of the fair value hierarchy. Collective trust funds – Collective trust funds are valued at the net asset value of units held at year end and are excluded from the fair value hierarchy. The Collective trust funds fair value has been included within the table above based on the underlying investment strategy. • Equity Funds – Collective trust funds classified as Equity primarily invest in U.S. and non-U.S. securities in both small and large capitalization markets. • Fixed Income Funds – Collective trust funds classified as Fixed Income primarily invest in debt securities, U.S. treasury securities, and fixed income securities. • Real Estate Funds - Collective trust funds classified as Real Estate Funds are invested in global real estate securities. The fair market values of the Level 3 assets in the U.K. plan are determined by the fund manager using a discounted cash flow methodology. The future cash flows expected to be generated by the assets of the funds and made available to investors are estimated and then discounted back to the valuation date. The discount rate is derived by adding a risk premium to the risk-free interest rate applicable to the country in which the assets are located. The following table details the activity in these investments for the years ended December 31, 2017, 2018 and 2019 : U.K. Plan Balance at December 31, 2016 $ 33,796 Transfer into level 3 — Disbursements — Change in fair value 969 Foreign currency translation effect 3,305 Balance at December 31, 2017 38,070 Transfer into level 3 — Disbursements — Change in fair value (7,294 ) Foreign currency translation effect (1,838 ) Balance at December 31, 2018 28,938 Transfer into level 3 — Disbursements — Change in fair value 97 Foreign currency translation effect 1,145 Balance at December 31, 2019 $ 30,180 The Company determines the annual expected rates of return on pension assets by first analyzing the composition of its asset portfolio. Historical rates of return are applied to the portfolio. These computed rates of return are reviewed by the Company’s investment advisers and actuaries. Industry comparables and other outside guidance are also considered in the annual selection of the expected rates of return on pension assets. During 2019 , the Company contributed $48,899 to its domestic and foreign pension plans, and during 2020 , the Company expects to contribute between $45,000 and $55,000 to its domestic and foreign pension plans. The Company estimates its benefit payments for its domestic and foreign pension plans and other postretirement benefit plans during the next ten years to be as follows: Pension Benefits Other Postretirement Benefits 2020 $ 86,944 $ 14,334 2021 86,886 14,557 2022 88,845 14,697 2023 88,431 14,748 2024 89,937 14,852 2025 through 2029 448,531 72,251 |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company leases certain warehouses, distribution centers, office space, material handling equipment, office equipment, cars and information technology hardware. The Company determines if an arrangement is a lease or contains an embedded lease at contract inception. Upon implementing the new lease accounting standard in 2019, the Company elected the package of practical expedients, which permits a lessee to not reassess under the new standard its prior conclusions regarding lease identification, lease classification and initial direct costs. Lease liabilities and their corresponding right-of-use assets, for leases with terms of 12 months or greater, are recorded based on the present value of lease payments over the expected lease term. The Company has elected not to present short term leases on the consolidated balance sheet, in accordance with the standard. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of lease renewal options is at the Company's sole discretion. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Certain of the Company's lease agreements include rental payments based on the use of the leased property over contractual levels. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has lease agreements with lease and non-lease components, which are accounted for separately. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would account for each lease component and the related non-lease component together as a single component. For certain building leases, including the lease of warehouses, distribution centers and office space, the Company accounts for the lease and non-lease components as a single lease component. For all other asset types, the Company accounts for lease and non-lease components separately. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance leases, the right-of-use asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. In cases where the lease term exceeds the useful life, the right-of-use asset is amortized over the useful life of the underlying asset. Amortization of the right-of-use asset is recognized and presented separately from interest expense on the lease liability. Variable lease expense includes payments based on performance or usage, as well as changes to index and rate-based lease payments. Right-of-use assets for operating and finance leases are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, "Property, Plant, and Equipment - Overall", to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. No impairment losses have been recognized to date. The following table presents the location and amount of lease assets and liabilities in the Consolidated Balance Sheets : Assets Location December 31, 2019 Operating lease assets, net Operating lease right-of-use assets, net $ 80,752 Finance lease assets Property, plant and equipment 4,577 Total leased assets $ 85,329 Liabilities Location Current: Operating Accrued liabilities $ 27,663 Finance Current portion of long-term debt and finance leases 265 Noncurrent: Operating Noncurrent operating leases 55,371 Finance Long-term debt and finance leases 935 Total lease liabilities $ 84,234 The following table presents the location and amount of lease expense in the Consolidated Income Statement: Lease cost Location Twelve Months Ended December 31, 2019 Operating lease cost (a) Cost of sales $ 36,321 Operating lease cost Selling general & administrative expenses 5,632 Total operating lease cost 41,953 Amortization of finance lease assets Cost of sales $ 352 Interest on finance lease liabilities Interest expense 32 Total finance lease cost 384 Net lease cost $ 42,337 (a) - Includes short-term lease costs of $7,328 and variable lease costs of $3,480 for the year ended December 31, 2019 . The following table presents the future maturities of the Company's lease obligations: December 31, 2019 Operating Finance Total 2020 $ 31,397 $ 322 $ 31,719 2021 18,020 323 18,343 2022 13,691 311 14,002 2023 9,693 275 9,968 2024 6,236 127 6,363 After 2024 17,793 — 17,793 Total lease payments 96,830 1,358 98,188 Less: Interest (13,796 ) (158 ) (13,954 ) Present value of lease liabilities $ 83,034 $ 1,200 $ 84,234 The following table presents the weighted-average lease term and discount rates of the Company's lease obligations: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.90 Finance Leases 4.26 Weighted-average discount rate Operating leases 5.76 % Finance Leases 5.79 % The following table presents the cash flow amounts related to lease liabilities included in the Company's Consolidated Statement of Cash Flows Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 33,774 Operating cash outflows from finance leases 332 Financing cash outflows from finance leases (605 ) Leased assets obtained in exchange for new finance lease liabilities 43 Leased assets obtained in exchange for new operating lease liabilities 342 |
Lease Commitments | Lease Commitments The Company leases certain warehouses, distribution centers, office space, material handling equipment, office equipment, cars and information technology hardware. The Company determines if an arrangement is a lease or contains an embedded lease at contract inception. Upon implementing the new lease accounting standard in 2019, the Company elected the package of practical expedients, which permits a lessee to not reassess under the new standard its prior conclusions regarding lease identification, lease classification and initial direct costs. Lease liabilities and their corresponding right-of-use assets, for leases with terms of 12 months or greater, are recorded based on the present value of lease payments over the expected lease term. The Company has elected not to present short term leases on the consolidated balance sheet, in accordance with the standard. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of lease renewal options is at the Company's sole discretion. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Certain of the Company's lease agreements include rental payments based on the use of the leased property over contractual levels. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company has lease agreements with lease and non-lease components, which are accounted for separately. Although separation of lease and non-lease components is required, certain practical expedients are available to entities. Entities electing the practical expedient would account for each lease component and the related non-lease component together as a single component. For certain building leases, including the lease of warehouses, distribution centers and office space, the Company accounts for the lease and non-lease components as a single lease component. For all other asset types, the Company accounts for lease and non-lease components separately. For operating leases, the right-of-use asset is subsequently measured throughout the lease term at the carrying amount of the lease liability. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For finance leases, the right-of-use asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term. In cases where the lease term exceeds the useful life, the right-of-use asset is amortized over the useful life of the underlying asset. Amortization of the right-of-use asset is recognized and presented separately from interest expense on the lease liability. Variable lease expense includes payments based on performance or usage, as well as changes to index and rate-based lease payments. Right-of-use assets for operating and finance leases are periodically reviewed for impairment losses. The Company uses the long-lived assets impairment guidance in ASC Subtopic 360-10, "Property, Plant, and Equipment - Overall", to determine whether a right-of-use asset is impaired, and if so, the amount of the impairment loss to recognize. No impairment losses have been recognized to date. The following table presents the location and amount of lease assets and liabilities in the Consolidated Balance Sheets : Assets Location December 31, 2019 Operating lease assets, net Operating lease right-of-use assets, net $ 80,752 Finance lease assets Property, plant and equipment 4,577 Total leased assets $ 85,329 Liabilities Location Current: Operating Accrued liabilities $ 27,663 Finance Current portion of long-term debt and finance leases 265 Noncurrent: Operating Noncurrent operating leases 55,371 Finance Long-term debt and finance leases 935 Total lease liabilities $ 84,234 The following table presents the location and amount of lease expense in the Consolidated Income Statement: Lease cost Location Twelve Months Ended December 31, 2019 Operating lease cost (a) Cost of sales $ 36,321 Operating lease cost Selling general & administrative expenses 5,632 Total operating lease cost 41,953 Amortization of finance lease assets Cost of sales $ 352 Interest on finance lease liabilities Interest expense 32 Total finance lease cost 384 Net lease cost $ 42,337 (a) - Includes short-term lease costs of $7,328 and variable lease costs of $3,480 for the year ended December 31, 2019 . The following table presents the future maturities of the Company's lease obligations: December 31, 2019 Operating Finance Total 2020 $ 31,397 $ 322 $ 31,719 2021 18,020 323 18,343 2022 13,691 311 14,002 2023 9,693 275 9,968 2024 6,236 127 6,363 After 2024 17,793 — 17,793 Total lease payments 96,830 1,358 98,188 Less: Interest (13,796 ) (158 ) (13,954 ) Present value of lease liabilities $ 83,034 $ 1,200 $ 84,234 The following table presents the weighted-average lease term and discount rates of the Company's lease obligations: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.90 Finance Leases 4.26 Weighted-average discount rate Operating leases 5.76 % Finance Leases 5.79 % The following table presents the cash flow amounts related to lease liabilities included in the Company's Consolidated Statement of Cash Flows Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 33,774 Operating cash outflows from finance leases 332 Financing cash outflows from finance leases (605 ) Leased assets obtained in exchange for new finance lease liabilities 43 Leased assets obtained in exchange for new operating lease liabilities 342 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities at December 31 were as follows: 2019 2018 Product liability $ 91,853 $ 81,574 Long-term income taxes payable 20,434 20,145 Stock-based liabilities 14,778 14,451 Other 22,000 19,560 Other long-term liabilities $ 149,065 $ 135,730 |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program 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 twelve months ended December 31, 2019 : Program (1) Date Authorized by Board of Directors Expiration Date (2) Amount Authorized (excluding commissions) Amount Spent as of December 31, 2019 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2021 $ 300,000 $ 106,877 Active (1) The repurchase programs listed 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 program listed above have been made using cash resources. (2) On December 3, 2019, the expiration of the 2017 Repurchase Program, scheduled for December 31, 2019, was extended to December 31, 2021. No other changes were made to the program. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the twelve months ended December 31, 2019 and December 31, 2018 : Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2019 share repurchase activity: 2017 Repurchase Program — — $ — Total share repurchases — — 2018 share repurchase activity: 2017 Repurchase Program 1,018,089 29.65 $ 30,183 Total share repurchases 1,018,089 30,183 Since the share repurchases began in August 2014 through December 31, 2019 , the Company has repurchased 15,768,845 shares of the Company’s common stock at an average cost of $34.11 per share. Reserved Shares There were 2,138,910 common shares reserved for grants under compensation plans at December 31, 2019 . The Company eliminated the option for plan participants in the Company’s defined contribution plans to purchase additional shares of the Company’s common stock in March 2014. Effective May 2019, common stock held in the Company's defined contribution plans can no longer receive quarterly dividends in the form of the Company's common stock. As a result of this change, common shares previously reserved for the Company's defined contribution plans have been released. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s incentive compensation plans allow the Company to grant awards to employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance stock units, dividend equivalents and other awards. Compensation related to these awards is determined based on the grant-date fair value and is amortized to expense over the vesting period. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire without forfeiture of the award. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. The following table discloses the amount of stock-based compensation expense: Stock-Based Compensation 2019 2018 2017 Stock options $ — $ — $ 14 Restricted stock units 2,836 3,196 3,302 Performance stock units 1,526 672 693 Total stock-based compensation $ 4,362 $ 3,868 $ 4,009 Stock Options The 2010 and 2014 Incentive Compensation Plans provide for granting options to key employees to purchase common shares at prices not less than market at the date of grant. Options under these plans may have terms of up to ten years becoming exercisable in whole or in consecutive installments, cumulative or otherwise. The plans allow the granting of nonqualified stock options which are not intended to qualify for the tax treatment applicable to incentive stock options under provisions of the Internal Revenue Code. In February 2014, executives participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options, which vested one-third each year through February 2017. No stock options have been granted to executives participating in the Long-Term Incentive Plan since then. Outstanding options do not contain any performance-based criteria. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. Summarized information for the plans follows: Number of Shares Weighted Average Exercise Price (per share) Aggregate Intrinsic Value (thousands) Outstanding at December 31, 2018 268,802 $ 22.27 Granted — — Exercised (24,774 ) 12.50 Expired — — Canceled (5,280 ) 21.72 Outstanding at December 31, 2019 238,748 23.30 $ 2,157 Exercisable at December 31, 2019 238,748 23.30 2,157 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of options granted (per share) $ — $ — $ — Aggregate intrinsic value of options exercised (thousands) 425 298 4,194 Weighted average grant-date fair value of shares vested (thousands) — — 1,400 The weighted average remaining contractual life of options outstanding at December 31, 2019 is 3.1 years . All outstanding stock options are exercisable. Segregated disclosure of options outstanding at December 31, 2019 was as follows: Range of Exercise Prices Less than or equal to $15.63 Greater than $15.63 Options outstanding 22,965 215,783 Weighted average exercise price $ 15.63 $ 24.11 Remaining contractual life 2.1 3.2 Options exercisable 22,965 215,783 Weighted average exercise price $ 15.63 $ 24.11 At December 31, 2019 , the Company had fully amortized all expense related to its stock option awards. Restricted Stock Units Under the 2001 and 2014 Incentive Compensation Plans, restricted stock units may be granted to officers and certain other employees as awards for exceptional performance, as a hiring or retention incentive or as part of the Long-Term Incentive Plan. The restricted stock units granted in 2017 , 2018 and 2019 have vesting periods of three to four years . Compensation expense related to the restricted stock units granted is determined based on the fair value of the Company’s stock on the date of grant. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire. Employees must remain employed for at least six months after the grant date to vest in the restricted stock units, even if retirement eligible. The following table provides details of the nonvested restricted stock units for 2019 : Number of Restricted Units Weighted Average Grant-Date Fair Value (per share) Aggregate Intrinsic Value (thousands) Nonvested at December 31, 2018 240,991 $ 35.69 Granted 120,001 32.52 Vested (91,237 ) 36.56 Canceled (42,667 ) 36.90 Accrued dividend equivalents 3,874 34.07 Nonvested at December 31, 2019 230,962 $ 33.49 Vested but not released 1,483 $ 18.04 Outstanding at December 31, 2019 232,445 $ 33.39 $ 7,761 Weighted-average remaining contractual term of shares outstanding (months) 21 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of restricted shares granted (per share) $ 32.52 $ 34.53 $ 38.33 Weighted average grant-date fair value of shares vested (thousands) $ 3,336 $ 3,000 $ 5,627 The number of vested restricted stock units at December 31, 2019 and 2018 was 1,483 and 1,460 , respectively. At December 31, 2019 , the Company has $2,458 of unvested compensation cost related to restricted stock units and this cost will be recognized as expense over a weighted average period of 25 months . Performance Stock Units Compensation related to the performance stock units is determined based on the fair value of the Company’s stock on the date of grant combined with performance metrics. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire, and in accordance with the achievement of the underlying performance condition. The following table provides details of the nonvested performance stock units earned under the Company’s Long-Term Incentive Plan: Number of Performance Units Weighted Average Grant- Date Fair Value (per share) Aggregate Intrinsic Value (thousands) Nonvested at December 31, 2018 32,071 $ 27.79 Earned 69,938 33.27 Vested (30,705 ) 34.93 Canceled (12,472 ) 34.35 Accrued dividend equivalents 503 36.13 Nonvested at December 31, 2019 59,335 $ 33.79 Vested but not released 22,529 $ 34.31 Outstanding at December 31, 2019 81,864 $ 33.93 $ 2,778 Weighted-average remaining contractual term of performance stock units outstanding (months) 12 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of performance stock units granted (per share) $ 33.27 $ 36.08 $ 38.23 Weighted average grant-date fair value of performance stock units vested (thousands) $ 1,073 $ 1,821 $ 4,213 At December 31, 2019 , the Company had $763 of unvested compensation cost related to performance stock units and this cost will be recognized as expense over a weighted average period of 19 months . The Company’s nonvested restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been earned based upon Company performance metrics until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units or performance stock units. Accordingly, such units do not represent participating securities. At December 31, 2019 , the company had 2,138,910 shares available for future issuance under equity compensation plans. At both December 31, 2019 and 2018 , excess tax benefits were not material , while in 2017, $1,877 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component The following tables provide a quarterly reconciliation of each component of accumulated other comprehensive (loss) income in the accompanying Consolidated Statements of Equity for the year to date as of December 31, 2019 and 2018 : Cumulative Translation Adjustment Derivative Instruments Post- retirement Benefits Total Ending Balance, December 31, 2018 $ (62,133 ) $ 2,150 $ (401,606 ) $ (461,589 ) Other comprehensive income (loss) before reclassifications 3,947 (2,612 ) (12,877 ) (11,542 ) Foreign currency translation effect — — (2,668 ) (2,668 ) Income tax effect — 804 — 804 Amount reclassified from accumulated other comprehensive (loss) income Cash flow hedges — (1,141 ) — (1,141 ) Amortization of prior service cost — — 603 603 Amortization of actuarial losses — — 35,843 35,843 Pension settlement charge — — 4,262 4,262 Prior service effect of plan amendment — — (3,069 ) (3,069 ) Income tax effect — 250 (9,333 ) (9,083 ) Other comprehensive income (loss) 3,947 (2,699 ) 12,761 14,009 Ending Balance, December 31, 2019 $ (58,186 ) $ (549 ) $ (388,845 ) $ (447,580 ) Cumulative Translation Adjustment Derivative Instruments Post- retirement Benefits Total Ending Balance, December 31, 2017 $ (39,940 ) $ 349 $ (438,887 ) $ (478,478 ) Other comprehensive (loss) income before reclassifications (22,193 ) 5,040 12,913 (4,240 ) Foreign currency translation effect — — (264 ) (264 ) Income tax effect — (1,213 ) (242 ) (1,455 ) Amount reclassified from accumulated other comprehensive (loss) income Cash flow hedges — (2,412 ) — (2,412 ) Amortization of prior service credit — — (541 ) (541 ) Amortization of actuarial losses — — 37,203 37,203 Prior service effect of plan amendment — — (3,704 ) (3,704 ) Income tax effect — 386 (8,084 ) (7,698 ) Other comprehensive (loss) income (22,193 ) 1,801 37,281 16,889 Ending Balance, December 31, 2018 $ (62,133 ) $ 2,150 $ (401,606 ) $ (461,589 ) |
Comprehensive Income (Loss) Att
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests | 12 Months Ended |
Dec. 31, 2019 | |
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: Twelve Months Ended December 31, 2019 2018 2017 Net income attributable to noncontrolling shareholders’ interests $ 1,913 $ 3,977 $ 1,345 Other comprehensive income (loss): Currency translation adjustments 795 (2,237 ) 3,375 Comprehensive income attributable to noncontrolling shareholders’ interests $ 2,708 $ 1,740 $ 4,720 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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, CUV, 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 ASC 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 quarter of self-insured incidents, settlements and changes in the amount of reserves, the Company increased its accrual to $117,219 at December 31, 2019 from $112,124 at December 31, 2018. For the year ended December 31, 2019 , the addition of another twelve months of self-insured incidents accounted for an increase of $37,279 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 $8,272 for the twelve months ended December 31, 2019 . The Company paid $24,020 during 2019 to resolve cases and claims. The Company’s product liability reserve balance at December 31, 2019 totaled $117,219 (the current portion of $25,366 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Consolidated Balance Sheets ), and the balance at December 31, 2018 totaled $112,124 (current portion of $30,550 ). 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. Product liability expenses are included in Cost of products sold in the Consolidated Statements of Income . For the twelve months ended December 31, 2019 and 2018 , respectively, product liability expense was as follows: Twelve Months Ended December 31, 2019 2018 2017 Product liability expense $ 40,309 $ 17,692 $ 25,970 Other Litigation In addition to the proceedings described above, the Company is involved in various other legal proceedings arising in the ordinary course of business. The Company regularly reviews the probable outcome of these proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for these proceedings at the time a loss is probable and the amount of the loss can be estimated. Although the outcome of these pending proceedings cannot be predicted with certainty and an estimate of any such loss cannot be made, the Company believes that any liabilities that may result from these proceedings are not reasonably likely to have a material adverse effect on the Company’s liquidity, financial condition or results of operations. Employment Contracts and Agreements No executives have employment agreements as of December 31, 2019 . The Executive Officers and certain other employees are covered by the Cooper Tire & Rubber Company Change in Control Severance Pay Plan. At December 31, 2019 , approximately 38 percent of the Company’s workforce was represented by collective bargaining units. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
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, COOCSA, which supplies passenger car and light truck tires to the Mexican, North American, Central American and South American markets. On January 24, 2020, the Company acquired the remaining 42 percent noncontrolling ownership interest in COOCSA, making COOCSA a wholly-owned subsidiary. The segment also markets and distributes racing, TBR and motorcycle tires. The racing and motorcycle tires are manufactured by the Company’s European segment and by others. TBR tires are sourced from GRT and through off-take agreements with PCT, through mid-2021, and Sailun Vietnam, through December 31, 2020. On April 5, 2019, Cooper Vietnam and Sailun Vietnam established a joint venture in Vietnam, ACTR, which will produce and sell TBR tires. The new joint venture is expected to begin commercially producing tires in 2020. Major distribution channels and customers include independent tire dealers, wholesale distributors, regional and national retail tire chains, large retail chains that sell tires as well as other automotive products, mass merchandisers and digital channels. The segment does not currently sell its products directly to end users, except through three Company-owned retail stores. The segment sells a limited number of tires to OEMs. Both the Europe and Asia 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 Europe and Asia segments are presented as “International Tire Operations.” The European operations include manufacturing operations in the U.K. and Serbia. The U.K. entity manufactures and markets 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 and Vietnam. 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. GRT, a joint venture manufacturing facility located in the PRC, serves as a global source of TBR tire production for the Company. The segment also procures certain TBR tires under off-take agreements with PCT, through mid-2021, and Sailun Vietnam, through December 31, 2020. On April 5, 2019, Cooper Vietnam and Sailun Vietnam established a joint venture in Vietnam, ACTR, which will produce and sell TBR tires in addition to the off-take agreement. The new joint venture is expected to begin commercially producing tires in 2020. The segment sells a majority of its tires in the replacement market, with a portion also sold to OEMs. On January 17, 2019, Cooper Tire Europe, a wholly owned subsidiary of the Company, committed to a plan to cease light vehicle tire production at its Melksham, U.K. facility. The phasing out of light vehicle tire production was substantially completed in the third quarter of 2019. Approximately 300 roles were eliminated at the site. Cooper Tire Europe now obtains light vehicle tires to meet customer needs from other production sites within the Company’s global production network. Approximately 400 roles remain in Melksham to support the functions that continue there, including motorsports and motorcycle tire production, a materials business, Cooper Tire Europe headquarters, sales and marketing, and the Europe Technical Center. The following table details segment financial information: Twelve Months Ended December 31, 2019 2018 2017 Net sales: Americas Tire External customers $ 2,315,497 $ 2,330,457 $ 2,376,808 Intercompany 38,229 32,189 39,970 2,353,726 2,362,646 2,416,778 International Tire External customers 437,143 477,621 477,848 Intercompany 96,860 163,355 141,021 534,003 640,976 618,869 Eliminations (135,090 ) (195,560 ) (180,991 ) Consolidated net sales 2,752,639 2,808,062 2,854,656 Operating profit (loss): Americas Tire 237,753 229,500 355,059 International Tire (13,390 ) (14,044 ) 15,168 Unallocated corporate charges (49,968 ) (51,564 ) (59,153 ) Eliminations 60 1,353 (1,827 ) Consolidated operating profit 174,455 165,245 309,247 Interest expense (31,189 ) (32,181 ) (32,048 ) Interest income 9,458 10,216 7,362 Other pension and postretirement benefit expense (41,567 ) (27,806 ) (37,523 ) Other non-operating expense (1,485 ) (1,416 ) (3,113 ) Income before income taxes $ 109,672 $ 114,058 243,925 Depreciation and amortization expense: Americas Tire 44,551 57,265 91,324 International Tire 31,654 34,564 33,303 Corporate 71,849 55,332 15,601 Consolidated depreciation and amortization expense 148,054 147,161 140,228 Segment assets: Americas Tire 1,543,779 1,513,534 1,552,855 International Tire 739,076 662,226 700,690 Corporate and other 519,483 458,445 454,380 Consolidated assets 2,802,338 2,634,205 2,707,925 Expenditures for long-lived assets: Americas Tire 111,819 112,444 109,175 International Tire 62,334 71,667 89,008 Corporate 28,569 9,188 (997 ) Consolidated expenditures for long-lived assets 202,722 193,299 197,186 Geographic information for long-lived assets follows: As of December 31, 2019 2018 2017 Net sales United States $ 2,175,599 $ 2,196,424 $ 2,240,882 Rest of world 577,040 611,638 613,774 Consolidated net sales 2,752,639 2,808,062 2,854,656 Long-lived assets (a) United States 683,769 595,768 568,215 PRC 239,889 232,339 218,044 Rest of world 204,336 173,814 180,488 Consolidated long-lived assets 1,127,994 1,001,921 966,747 (a) - Beginning in 2019, the company includes Right of Use Assets in the Long-lived assets for each segment. The following customers of the Americas Tire Operations segment contributed ten percent or more of the Company’s total consolidated net sales in 2019 , 2018 or 2017 . Net sales and percentage of consolidated Company sales for these customers in 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Customer Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales American Tire Distributors, Inc. $ 311,559 11 % $ 310,070 11 % $ 252,395 9 % TBC/Treadways $ 214,138 8 % $ 231,896 8 % $ 304,840 11 % |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 24, 2020, the Company acquired the remaining 41.57 percent noncontrolling ownership interest in COOCSA, making COOCSA a wholly-owned subsidiary. In this transaction, the Company acquired the remaining outstanding voting common stock of COOCSA for a total cash price of $54,500 . In addition, subsequent to the acquisition, payments of $15,984 |
Selected Quarterly Data
Selected Quarterly Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | SELECTED QUARTERLY DATA (Unaudited) (Dollar amounts in thousands except per share amounts.) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (a) Net sales $ 619,163 $ 679,130 $ 704,134 $ 750,212 Gross profit 88,259 99,141 114,366 131,524 Net income attributable to Cooper Tire & Rubber Company 6,979 8,821 29,344 51,259 Earnings per share: Basic 0.14 0.18 0.58 1.02 Diluted 0.14 0.18 0.58 1.02 Net sales: Americas Tire $ 514,936 $ 582,307 $ 601,957 $ 654,526 International Tire 143,785 138,514 132,270 119,434 Eliminations (39,558 ) (41,691 ) (30,093 ) (23,748 ) Consolidated net sales $ 619,163 $ 679,130 $ 704,134 $ 750,212 Operating profit (loss): Americas Tire $ 38,789 $ 46,814 $ 67,941 $ 84,209 International Tire (1,339 ) (1,296 ) (4,831 ) (5,924 ) Unallocated corporate charges (10,453 ) (13,278 ) (11,051 ) (15,186 ) Eliminations (566 ) (569 ) 710 484 Consolidated operating profit 26,431 31,671 52,769 63,583 Interest expense (8,314 ) (7,810 ) (7,476 ) (7,590 ) Interest income 3,380 1,999 1,507 2,571 Other pension and postretirement benefit expense (9,362 ) (9,288 ) (9,562 ) (13,355 ) Other non-operating income (expense) 1,380 (1,463 ) (509 ) (892 ) Income before income taxes $ 13,515 $ 15,109 $ 36,729 $ 44,317 Net income $ 7,178 $ 9,258 $ 29,008 $ 52,871 Net income attributable to Cooper Tire & Rubber Company $ 6,979 $ 8,821 $ 29,344 $ 51,259 Basic and diluted earnings per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Each quarter's financial data is recorded here as disclosed in its respective 10-Q report. Therefore, the sum of quarterly information here may not equal the annual financial statement amounts due to rounding. (a) In the fourth quarter, the Company recorded an income tax benefit of $18,606 as a result of a business realignment strategy implemented in Europe. (Unaudited) 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (a) Net sales $ 601,496 $ 698,408 $ 737,671 $ 770,487 Gross profit 84,485 94,223 139,947 124,638 Net income (loss) attributable to Cooper Tire & Rubber Company 8,285 15,008 53,713 (419 ) Earnings per share: Basic 0.16 0.30 1.07 (0.01 ) Diluted 0.16 0.30 1.07 (0.01 ) Net sales: Americas Tire $ 485,392 $ 584,412 $ 628,704 $ 664,138 International Tire 161,244 167,839 162,401 149,492 Eliminations (45,140 ) (53,843 ) (53,434 ) (43,143 ) Consolidated net sales $ 601,496 $ 698,408 $ 737,671 $ 770,487 Operating profit (loss): Americas Tire $ 31,236 $ 40,480 $ 87,353 $ 70,432 International Tire 7,434 5,652 5,994 (33,124 ) Unallocated corporate charges (b) (11,966 ) (13,705 ) (12,518 ) (13,376 ) Eliminations (250 ) 336 372 894 Consolidated operating profit 26,454 32,763 81,201 24,826 Interest expense (7,691 ) (8,417 ) (7,930 ) (8,142 ) Interest income 2,315 1,988 2,399 3,514 Other pension and postretirement benefit expense (b) (6,986 ) (6,967 ) (6,932 ) (6,921 ) Other non-operating (loss) income (1,658 ) (1,391 ) 2,922 (1,288 ) Income before income taxes $ 12,434 $ 17,976 $ 71,660 $ 11,989 Net income $ 8,983 $ 15,709 $ 55,433 $ 439 Net income (loss) attributable to Cooper Tire & Rubber Company $ 8,285 $ 15,008 $ 53,713 $ (419 ) Basic and diluted earnings (loss) per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Each quarter's financial data is recorded here as disclosed in its respective 10-Q report. Therefore, the sum of quarterly information here may not equal the annual financial statement amounts due to rounding. (a) In the fourth quarter, the Company recorded a non-cash goodwill impairment charge of $33,827 . Refer to Note 5 - Goodwill and Intangibles for further details. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | (Dollar amounts in thousands) Additions Balance at Beginning of Year Charged to Income Charged to Equity Acquisition of Business Deductions Balance at End of Year Year Ended December 31, 2017 Allowance for doubtful accounts $ 7,290 $ 1,799 $ — $ — $ 1,519 (a) $ 7,570 Tax valuation allowance $ 20,228 $ 20,536 $ (2,828 ) $ (1,057 ) $ 6,777 (b) $ 30,102 Year Ended December 31, 2018 Allowance for doubtful accounts $ 7,570 $ 2,019 $ — $ — $ 3,753 (a) $ 5,836 Tax valuation allowance $ 30,102 $ 456 $ — $ — $ 7,938 (b) $ 22,620 Year Ended December 31, 2019 Allowance for doubtful accounts $ 5,836 $ 3,401 $ — $ — $ 1,128 (a) $ 8,109 Tax valuation allowance $ 22,620 $ 13,178 $ (6,337 ) $ — $ 2,191 (b) $ 27,270 (a) Accounts written off during the year, net of recoveries of accounts previously written off. (b) Net increase in tax valuation allowance is primarily the result of a net increase in unbenefitted losses. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. Acquired businesses are included in the consolidated financial statements from the dates of acquisition. All intercompany accounts and transactions have been eliminated. The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the power to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in subsidiaries of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in subsidiaries of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint ventures are businesses established and maintained in connection with the Company’s operating strategy. |
Cash and cash equivalents | The Company considers highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company’s objectives related to the investment of cash not required for operations is to preserve capital, meet the Company’s liquidity needs and earn a return consistent with these guidelines and market conditions. Investments deemed eligible for the investment of the Company’s cash include: 1) U.S. Treasury securities and general obligations fully guaranteed with respect to principal and interest by the government; 2) obligations of U.S. government agencies; 3) commercial paper or other corporate notes of prime quality purchased directly from the issuer or through recognized money market dealers; 4) time deposits, certificates of deposit or bankers’ acceptances of banks rated “A-” by Standard & Poor’s or “A3” by Moody’s; 5) collateralized mortgage obligations rated “AAA” by Standard & Poor’s and “Aaa” by Moody’s; 6) tax-exempt and taxable obligations of state and local governments of prime quality; and 7) mutual funds or outside managed portfolios that invest in the above investments. The Company had cash and cash equivalents totaling $391,332 and $356,254 at December 31, 2019 and December 31, 2018 , respectively. The majority of the cash and cash equivalents were invested in eligible financial instruments in excess of amounts insured by the Federal Deposit Insurance Corporation and, therefore, subject to credit risk. Management believes that the probability of losses related to credit risk on investments classified as cash and cash equivalents is remote. |
Notes receivable | The Company has received bank secured notes from certain of its customers in the PRC to settle trade accounts receivable. These notes generally have maturities of six months or less and are redeemable at the bank of issuance. The Company evaluates the credit risk of the issuing bank prior to accepting a bank secured note from a customer. Management believes that the probability of material losses related to credit risk on notes receivable is remote. |
Accounts receivable | The Company records trade accounts receivable when revenue is recorded in accordance with its revenue recognition policy and relieves accounts receivable when payments are received from customers. |
Allowance for doubtful accounts | The allowance for doubtful accounts is established through charges to the provision for bad debts. The Company evaluates the adequacy of the allowance for doubtful accounts throughout the year. The evaluation includes historical trends in collections and write-offs, management’s judgment of the probability of collecting specific accounts and management’s evaluation of business risk. This evaluation is inherently subjective, as it requires estimates that are susceptible to revision as more information becomes available. Accounts are determined to be uncollectible when the debt is deemed to be worthless or only recoverable in part, and are written off at that time through a charge against the allowance for doubtful accounts. |
Inventories | Inventory costs are determined using the LIFO method for substantially all U.S. inventories. Costs of other inventories have been determined by the first-in, first-out FIFO method. Inventories include direct material, direct labor, and applicable manufacturing and engineering overhead costs. FIFO inventories are valued at cost, which is not in excess of the net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. LIFO inventories are valued at the lower of cost or market. |
Long-lived assets | Property, plant and equipment are recorded at cost and depreciated using the straight-line method over the following expected useful lives: Land improvements 10 to 20 years Buildings 10 to 40 years Machinery and equipment 5 to 14 years Furniture and fixtures 5 to 10 years Molds, cores and rings 2 to 10 years The Company capitalizes certain internal and external costs incurred to acquire or develop internal-use software. Capitalized software costs are amortized over the estimated useful life of the software, which ranges from one to ten years . Intangibles with definite lives include trademarks, technology and intellectual property which were fully amortized as of December 31, 2019 . Land use rights are amortized over their remaining useful lives, which range from 36 to 43 years . On January 1, 2019, the Company adopted ASC 842, "Leases," which requires lessees to record right-of-use assets and related lease obligations on the balance sheet, as well as disclose key information regarding leasing arrangements. The Company evaluates the recoverability of long-lived assets, including property, plant and equipment and right-of-use assets for operating and finance leases, based on undiscounted projected cash flows, excluding interest and taxes, when any impairment is indicated. Goodwill and indefinite-lived intangibles are assessed for potential impairment at least annually or when events or circumstances indicate impairment may have occurred. |
Earnings per common share | Net income per share is computed on the basis of the weighted average number of common shares outstanding each year. Diluted earnings per share includes the dilutive effect of stock options and other stock units. |
Derivative financial instruments | Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not enter into financial instruments for trading or speculative purposes. The Company offsets fair value amounts recognized on the Consolidated Balance Sheets for derivative financial instruments executed with the same counter-party. The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated net asset and liability positions. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Consolidated Statements of Income in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. Foreign currency forward contracts are also used to hedge variable cash flows associated with forecasted sales and purchases denominated in currencies that are not the functional currency of certain entities. The forward contracts have maturities of less than twelve months pursuant to the Company’s policies and hedging practices. These forward contracts meet the criteria for and have been designated as cash flow hedges. Accordingly, the effective portion of the change in fair value of unrealized gains and losses on such forward contracts are recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company is exposed to interest rate risk on borrowings that bear interest at floating rates. The Company utilizes derivative instruments to manage the risk associated with the floating rate debt and has effectively fixed the variable interest rate component on the notional amount of this swap . The swaps qualify for hedge accounting and, therefore, changes in the fair value of the swaps have been recorded as a separate component of stockholders’ equity in the accompanying Consolidated Balance Sheets and reclassified into earnings as the hedged transaction affects earnings. The Company assesses hedge effectiveness quarterly. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. The Company also performs regression analysis comparing the change in value of the hedging contracts versus the underlying foreign currency sales and purchases, which confirms a high correlation and hedge effectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Consolidated Statements of Income in the period in which the ineffectiveness occurs. The Company is exposed to price risk related to forecasted purchases of certain commodities that are used as raw materials, principally natural rubber. Accordingly, it uses commodity contracts with forward pricing for a portion of its production requirements. These contracts generally qualify for the normal purchase exception under guidance for derivative instruments and hedging activities, and therefore are not subject to its provisions. |
Income taxes | Income tax expense is based on reported earnings or losses before income taxes in accordance with the tax rules and regulations of the specific legal entities within the various specific taxing jurisdictions where the Company’s income is earned. Taxable income may differ from earnings before income taxes for financial accounting purposes. To the extent that differences are due to revenue or expense items reported in one period for tax purposes and in another period for financial accounting purposes, a provision for deferred income taxes is made using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset may not be realized. Deferred income taxes generally are not recorded on the majority of undistributed earnings of international subsidiaries based on the Company’s intention that these earnings will continue to be reinvested. Upon enactment of the Tax Act, the Transition Tax was recorded based on approximately $495 million of unremitted foreign earnings. During 2018 and 2019, the Company re-evaluated its position on potential earnings repatriation and has concluded that repatriation implications of the Tax Act had no impact on its indefinite reinvestment assertion. |
Product liability | The Company accrues costs for product liability at the time a loss is probable and the amount of loss can be estimated. The Company believes the probability of loss can be established and the amount of loss can be estimated only after certain minimum information is available, including verification that Company-produced 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 ASC 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. |
Advertising expense | Expenses incurred for advertising include production and media and are generally expensed when incurred. Costs associated with dealer-earned cooperative advertising are recorded as a reduction of the revenue component of Net sales at the time of sale. |
Stock-based compensation | The Company’s incentive compensation plans allow the Company to grant awards to employees in the form of stock options, stock awards, restricted stock units, stock appreciation rights, performance stock units, dividend equivalents and other awards. Compensation related to these awards is determined based on the fair value on the date of grant and is amortized to expense over the vesting period. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. |
Warranties | Warranties – Warranties are provided on the sale of certain of the Company’s products and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities, which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets: |
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of: (1) revenues and expenses during the reporting period; and (2) assets and liabilities, as well as disclosure of contingent assets and liabilities, at the date of the consolidated financial statements. Actual results could differ from those estimates. |
Revenue recognition | In accordance with ASC 606 and ASU 2014-09, effective January 1, 2018, revenues are recognized 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. Shipping and handling costs are recorded in cost of products sold. Allowance programs such as volume rebates and cash discounts are recorded at the time of sale as a reduction to revenue based on anticipated accrual rates for the year. |
Research and development | Costs are charged to Cost of products sold as incurred and amounted to approximately $69,928 , $64,007 and $59,869 during 2019 , 2018 and 2017 , respectively. |
Related party transactions | The Company’s COOCSA joint venture paid $26,589 , $28,023 and $40,279 in 2019 , 2018 and 2017 , respectively, to an employment services company in Mexico owned by members of the joint venture workforce. COOCSA also recorded sales of $4,373 , $4,713 and $8,209 to the noncontrolling shareholder in 2019 , 2018 and 2017 |
Pension and Postretirement Benefits Other than Pensions | The Company provides certain pension and postretirement benefits other than pensions to employees and retired employees, including pensions, postretirement health care benefits, other postretirement benefits, and supplemental pensions. In general, the Company's policy is to fund its pension benefit obligation based on legal requirements, tax and liquidity considerations and local practices. The Company does not fund its postretirement benefit obligation. |
Recent accounting pronouncements | Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial statements. Accounting Pronouncements – Recently adopted SEC Disclosure Regulation Simplifications During the fourth quarter of 2018, the U.S. Securities and Exchange Commission (“SEC”) published Final Rule Release No. 33-10532, "Disclosure Update and Simplification." This standard, effective for quarterly and annual reports submitted after November 5, 2018, streamlines disclosure requirements by removing certain redundant topics. For the Company, the most notable simplification implemented in 2019 was the expansion of the shareholders' equity reconciliation to display quarter-to-quarter details beginning in the first quarter of 2019. The changes to the SEC rules impacted the presentation of the Company's filings, but did not materially impact the Company's consolidated financial statements. Leases In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires balance sheet recognition of lease liabilities and right-of-use assets for most leases having terms of twelve months or longer. The Company adopted the standard on the required effective date of January 1, 2019 using the transition option, “Comparatives Under 840 Option,” established by ASU 2018-11, Leases (Topic 842), Targeted Improvements (ASU 2018-11). The FASB issued multiple amendments to the standard which provided clarification, additional guidance, practical expedients and other improvements to ASU 2016-02. The new guidance requires recognition of lease assets and liabilities for operating leases with terms of more than 12 months, in addition to those currently recorded, on the Company's Consolidated Balance Sheets . See Note 11 for additional details. 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. The Company adopted this standard effective January 1, 2019. The adoption of this standard did not materially impact the Company's consolidated financial statements. Additionally, in October 2018, the FASB issued ASU 2018-16, "Derivatives and Hedging (Topic 815)." The Federal Reserve and Alternative Reference Rates Committee expressed the importance of including the Overnight Index Swap ("OIS") rate based on the Secured Overnight Financing Rate ("SOFR") as a benchmark rate for hedge accounting purposes in facilitating broader use of the underlying SOFR rate in the marketplace to facilitate the market's move away from the London Interbank Offered Rate ("LIBOR"). This update, effective on January 1, 2019, provides the option to use the OIS rate based on SOFR as a benchmark for hedge accounting. The Company does not currently hold any SOFR-based instruments, but will continue to evaluate its use as the markets transition away from LIBOR. Related Parties In October 2018, the FASB issued ASU 2018-17 "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for VIEs." When determining if fees paid to decision makers and service providers are variable interests, entities must now also consider indirect interests of those decision makers and service providers held through related parties under common control. This standard is effective January 1, 2020, with early adoption permitted. The Company has incorporated this consideration into the related party procedures conducted as part of this annual report. No indirect interests of decision makers or service providers held through related parties under common control were identified. The adoption of this standard did not materially impact the Company's consolidated financial statements. Accounting Pronouncements – To be adopted Credit Losses In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which changes accounting requirements for the recognition of credit losses from an incurred or probable impairment methodology to a current expected credit losses (CECL) methodology. The FASB issued subsequent amendments to the initial guidance in November 2018, April 2019 and May 2019 with ASU 2018-19, ASU 2019-04 and ASU 2019-05, respectively. Trade receivables (including the allowance for doubtful accounts) is the only financial instrument in scope for ASU 2016-13 currently held by the Company. Implementation is anticipated to include an update to the Company's allowance for doubtful accounts methodology from one based on accounts receivable aging to one based on sales stratified by customer credit score. Disclosures will be updated accordingly. The Company expects minimal, if any, impact on the consolidated financial statements as implementation analyses show materially equivalent results between the two methods. This standard is effective for interim and annual reporting periods beginning after December 15, 2019 with a modified retrospective approach. The Company plans to adopt the standard effective January 1, 2020. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820)," which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs determining level 3 fair value measurements will be added. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements and plans to adopt the standard effective January 1, 2020. Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, "Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20)," which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around the effect of a one-percentage-point change in assumed health care costs will be removed and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period will be added. This standard is effective for fiscal years ending after December 15, 2020, and early adoption is permitted. These amendments must be applied on a retrospective basis for all periods presented. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements. Internal-Use Software In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)," which aligns the requirements for capitalizing implementation costs incurred in a service contract hosting arrangement with those of developing or obtaining internal-use software. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements and plans to adopt the standard effective January 1, 2020. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share: (Number of shares and dollar amounts in thousands except per share amounts) 2019 2018 2017 Numerator Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders $ 96,404 $ 76,586 $ 95,400 Denominator Denominator for basic earnings per share - weighted average shares outstanding 50,159 50,350 52,206 Effect of dilutive securities - stock options and other stock units 219 247 467 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 50,378 50,597 52,673 Earnings per share: Basic $ 1.92 $ 1.52 $ 1.83 Diluted $ 1.91 $ 1.51 $ 1.81 |
Summary of Activity in Product Warranty Liabilities | Warranties – Warranties are provided on the sale of certain of the Company’s products and an accrual for estimated future claims is recorded at the time revenue is recognized. Tire replacement under most of the warranties the Company offers is on a prorated basis. The Company provides for the estimated cost of product warranties based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities, which are recorded in Accrued liabilities and Other long-term liabilities on the Company’s Condensed Consolidated Balance Sheets: 2019 2018 2017 Reserve at beginning of year 12,431 12,093 10,634 Additions 11,609 13,187 10,310 Payments (11,306 ) (12,849 ) (8,851 ) Reserve at December 31 12,734 12,431 12,093 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Restructuring and Related Costs | Twelve Months Ended December 31, 2019 Melksham employee severance costs $ 5,308 Asset write-downs & other costs 2,248 Asian operations employee severance costs 1,262 Total restructuring expense $ 8,818 Beginning balance of accrued restructuring $ — Accrued severance costs 6,630 Payment of severance costs (5,368 ) Accrued professional fees 819 Payment of professional fees (683 ) Ending balance of total accrued restructuring $ 1,398 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 twelve months ended December 31, 2019 and 2018 , respectively: Twelve Months Ended December 31, 2019 Americas International Eliminations Total Light Vehicle (1) $ 2,096,864 $ 403,524 $ (68,658 ) $ 2,431,730 Truck and bus radial 200,088 80,797 (66,432 ) 214,453 Other (2) 56,774 49,682 — 106,456 Net sales $ 2,353,726 $ 534,003 $ (135,090 ) $ 2,752,639 Twelve Months Ended December 31, 2018 Americas International Eliminations Total Light Vehicle (1) $ 2,115,942 $ 481,499 $ (109,400 ) $ 2,488,041 Truck and bus radial $ 194,558 $ 101,744 $ (86,160 ) 210,142 Other (2) $ 52,146 $ 57,733 $ — 109,879 Net sales $ 2,362,646 $ 640,976 $ (195,560 ) $ 2,808,062 (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 | Significant changes in the contract liabilities balance during the twelve months ended December 31, 2019 are as follows: Contract Liabilities Contract liabilities at beginning of year $ 947 Increases to deferred revenue for cash received in advance from customers 16,297 Decreases due to recognition of deferred revenue (16,164 ) Contract liabilities at December 31, 2019 $ 1,080 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Accumulated Amortization | The following table presents intangible assets and accumulated amortization balances as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived: Capitalized software costs 205,929 (115,090 ) 90,839 197,338 (97,972 ) 99,366 Land use rights 14,145 (3,545 ) 10,600 14,526 (3,860 ) 10,666 Trademarks and tradenames 3,800 (3,800 ) — 8,000 (7,823 ) 177 Other 1,400 (1,300 ) 100 3,261 (2,966 ) 295 225,274 (123,735 ) 101,539 223,125 (112,621 ) 110,504 Indefinite-lived: Trademarks 9,817 — 9,817 9,817 — 9,817 $ 235,091 $ (123,735 ) $ 111,356 $ 232,942 $ (112,621 ) $ 120,321 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Components of Accrued Liabilities | Accrued liabilities at December 31 were as follows: 2019 2018 Volume and customer rebate programs $ 99,168 $ 115,623 Payroll and employee benefits, excluding postemployment benefits 75,218 63,557 Operating lease liability, current 27,663 — Product liability 25,366 30,550 Other postretirement benefits 14,334 15,344 Advertising 13,281 16,036 Taxes other than income taxes 12,505 13,571 Warranty 8,041 8,273 Other 26,901 19,696 Accrued liabilities $ 302,477 $ 282,650 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations before Income Taxes and Noncontrolling Shareholders' Interests | Components of income (loss) from continuing operations before income taxes and noncontrolling shareholders’ interests were as follows: 2019 2018 2017 United States $ (4,720 ) $ 108,838 $ 211,225 Foreign 114,392 5,220 32,700 Total $ 109,672 $ 114,058 $ 243,925 |
Provision (Benefit) for Income Tax for Continuing Operations | The provision (benefit) for income tax for continuing operations consisted of the following: 2019 2018 2017 Current: Federal $ 2,659 $ 56 $ 69,463 State and local 5,386 5,350 6,304 Foreign 9,733 7,214 9,842 17,778 12,620 85,609 Deferred: Federal 1,356 18,293 48,866 State and local (4,027 ) 3,266 4,915 Foreign (3,752 ) (684 ) 7,790 (6,423 ) 20,875 61,571 $ 11,355 $ 33,495 $ 147,180 |
Reconciliation of Income Tax Expense (Benefit) for Continuing Operations | A reconciliation of income tax expense (benefit) for continuing operations to the tax based on the U.S. statutory rate is as follows: 2019 2018 2017 Income tax provision at 35 percent $ — $ — $ 85,375 Income tax provision at 21 percent 23,031 23,952 — Difference in effective tax rates of international operations (21,399 ) (1,124 ) (4,667 ) State and local income tax, net of federal income tax effect (2,366 ) 2,983 7,867 Net U.S. GILTI inclusion 8,419 1,455 — Valuation allowance 6,306 (2,433 ) 11,593 Income tax contingencies, net of federal income tax effect 4,246 1,263 (551 ) Domestic manufacturing deduction — — (2,940 ) U.S. tax credits (6,292 ) (4,401 ) (2,474 ) Goodwill impairment — 8,432 — Mexico inflationary deferred tax adjustments (1,790 ) 259 (1,383 ) U.S. tax reform - transition tax 1,661 5,026 35,378 U.S. tax reform - remeasurement of deferred taxes — (3,576 ) 20,413 Other - net (461 ) 1,659 (1,431 ) Provision for income taxes $ 11,355 $ 33,495 $ 147,180 |
Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at December 31 were as follows: 2019 2018 Deferred tax assets: Postretirement and other employee benefits $ 94,581 $ 97,269 Product liability 30,791 27,922 Net operating loss, capital loss, and tax credit carryforwards 14,291 11,064 All other items 37,296 29,375 Total deferred tax assets 176,959 165,630 Deferred tax liabilities: Property, plant and equipment (117,148 ) (108,668 ) All other items (6,141 ) (6,196 ) Total deferred tax liabilities (123,289 ) (114,864 ) 53,670 50,766 Valuation allowances (27,270 ) (22,620 ) Net deferred tax asset $ 26,400 $ 28,146 |
Unrecognized Tax Benefits for Permanent and Temporary Book/Tax Differences for Continuing Operations, Exclusive of Interest | Unrecognized Tax Benefits Balance at December 31, 2016 $ 3,197 Settlements for tax positions of prior years (139 ) Additions for tax positions of current year 47 Additions for tax positions of prior years 438 Statute lapses (1,260 ) Balance at December 31, 2017 2,283 Settlements for tax positions of prior years (364 ) Additions for tax positions of the current year 2,555 Additions for tax positions of prior years 2,881 Statute lapses (830 ) Balance at December 31, 2018 6,525 Settlements for tax positions of prior years (1,567 ) Additions for tax positions of the prior year 5,644 Statute lapses (668 ) Balance at December 31, 2019 $ 9,934 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | The following table summarizes the long-term debt and finance leases of the Company at December 31, 2019 and December 31, 2018 . December 31, 2019 December 31, 2018 Parent company 3.3% Term Loan A due June 2024 $ 197,500 $ — 8% Unsecured Notes due December 2019 — 173,578 7.625% Unsecured Notes due March 2027 116,880 116,880 Finance leases and other 6,263 6,245 320,643 296,703 Less: unamortized debt issuance costs 1,230 659 319,413 296,044 Less: current maturities 10,265 174,760 $ 309,148 $ 121,284 |
Schedule of Payments on Long Term Debt | Over the next five years, the Company has payments related to the above debt of: Future Debt Payments 2020 $ 10,000 2021 17,563 2022 15,000 2023 17,500 2024 142,500 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 Consolidated Balance Sheets : Assets/(liabilities) December 31, 2019 December 31, 2018 Designated as hedging instruments: Gross amounts recognized $ (3,208 ) $ (1,524 ) Gross amounts offset 149 2,237 Net amounts (3,059 ) 713 Not designated as hedging instruments: Gross amounts recognized $ (1,118 ) $ (544 ) Gross amounts offset 76 201 Net amounts (1,042 ) (343 ) Net amounts presented: Other current assets $ (2,420 ) $ 1,750 Other long-term liabilities $ (1,681 ) $ (1,380 ) |
Gains and Losses on Derivative Instruments in Consolidated Statements of Income | The following table presents the location and amount of gains and losses on derivative instruments designated as cash flow hedges in the Consolidated Statements of Income : Twelve Months Ended December 31, 2019 2018 2017 Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives $ (2,612 ) $ 5,040 $ (6,092 ) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income Net sales $ 988 $ 1,453 $ (2,532 ) Interest expense (123 ) (134 ) (69 ) Other non-operating expense 276 1,093 (1,018 ) $ 1,141 $ 2,412 $ (3,619 ) The following table presents the location and amount of gains and losses on foreign exchange contract derivatives not designated as hedging instruments in the Consolidated Statements of Income . Twelve Months Ended December 31, 2019 2018 2017 Other non-operating (expense) income $ (2,674 ) $ 602 $ (3,464 ) |
Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and December 31, 2018 : December 31, 2019 Total Quoted Prices Significant Significant Foreign Currency Derivative $ (3,069 ) $ — $ (3,069 ) $ — Interest Rate Swaps (1,032 ) — (1,032 ) — Stock-based Liabilities (14,971 ) (14,971 ) — — December 31, 2018 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 $ 370 $ — $ 370 $ — Stock-based Liabilities (14,644 ) (14,644 ) — — |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits Other than Pensions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension and Other Postretirement Benefits Plans | The following table reflects changes in the projected obligations and fair market values of assets in all defined benefit pension and other postretirement benefit plans of the Company: 2019 Pension Benefits 2018 Pension Benefits Other Postretirement Benefits Domestic International Total Domestic International Total 2019 2018 Change in benefit obligation: Projected Benefit Obligation at beginning of year $ 1,004,751 $ 404,629 $ 1,409,380 $ 1,088,633 $ 461,426 $ 1,550,059 $ 251,798 $ 271,726 Service cost - employer 8,906 — 8,906 10,363 — 10,363 1,573 1,948 Interest cost 39,499 11,061 50,560 36,840 11,161 48,001 9,887 9,251 Actuarial loss/(gain) 113,828 48,721 162,549 (67,543 ) (28,064 ) (95,607 ) (9,664 ) (19,909 ) Benefits paid (63,176 ) (14,542 ) (77,718 ) (63,542 ) (17,889 ) (81,431 ) (12,044 ) (11,218 ) Plan amendment 3,069 — 3,069 — 3,704 3,704 — — Settlements — (18,196 ) (18,196 ) — — — — — Foreign currency translation effect — 15,013 15,013 — (25,709 ) (25,709 ) — — Projected Benefit Obligation at December 31 $ 1,106,877 $ 446,686 $ 1,553,563 $ 1,004,751 $ 404,629 $ 1,409,380 $ 241,550 $ 251,798 Change in plans’ assets: Fair value of plans’ assets at beginning of year $ 912,129 $ 349,001 $ 1,261,130 $ 944,346 $ 385,879 $ 1,330,225 $ — $ — Actual return on plans’ assets 159,949 38,139 198,088 (33,063 ) (8,591 ) (41,654 ) — — Employer contribution 38,312 10,587 48,899 64,388 10,725 75,113 — — Benefits paid (63,176 ) (14,542 ) (77,718 ) (63,542 ) (17,889 ) (81,431 ) — — Settlements — (18,196 ) (18,196 ) — — — — — Foreign currency translation effect — 14,353 14,353 — (21,123 ) (21,123 ) — — Fair value of plans’ assets at December 31 $ 1,047,214 $ 379,342 $ 1,426,556 $ 912,129 $ 349,001 $ 1,261,130 $ — $ — Funded status $ (59,663 ) $ (67,344 ) $ (127,007 ) $ (92,622 ) $ (55,628 ) $ (148,250 ) $ (241,550 ) $ (251,798 ) Amounts recognized in the balance sheets: Accrued liabilities $ (300 ) $ — $ (300 ) $ (300 ) $ — $ (300 ) $ (14,334 ) $ (15,344 ) Postretirement benefits other than pensions — — — $ (227,216 ) $ (236,454 ) Pension benefits $ (59,363 ) $ (67,344 ) $ (126,707 ) $ (92,322 ) $ (55,628 ) $ (147,950 ) — — |
Weighted Average Assumptions Used to Determine Benefit Obligations | Weighted average assumptions used to determine benefit obligations at December 31: Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 All plans Discount rate 2.78 % 3.70 % 3.12 % 4.05 % Domestic plans Discount rate 3.09 % 4.05 % 3.12 % 4.05 % Foreign plans Discount rate 1.99 % 2.80 % — — |
Components of Net Periodic Benefit Costs | The following tables disclose the amount of net periodic benefit costs for the twelve months ended December 31, 2019 and 2018 , respectively, for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 8,906 $ 10,363 $ 9,860 Interest cost 39,499 36,840 39,251 Expected return on plan assets (48,034 ) (54,035 ) (54,058 ) Amortization of actuarial loss 32,432 32,939 37,122 Amortization of prior service cost $ 703 — — Net periodic benefit cost $ 33,506 $ 26,107 $ 32,175 Pension Benefits - International Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Interest cost $ 11,061 $ 11,161 $ 11,525 Expected return on plan assets (11,554 ) (12,073 ) (11,262 ) Amortization of actuarial loss 3,411 4,264 5,448 Amortization of prior service cost 309 — — Effect of settlements 4,262 — — Net periodic benefit cost $ 7,489 $ 3,352 $ 5,711 Other Post Retirement Benefits Twelve Months Ended December 31, 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 1,573 $ 1,948 $ 2,003 Interest cost 9,887 9,251 10,063 Amortization of prior service credit (409 ) (541 ) (566 ) Net periodic benefit cost $ 11,051 $ 10,658 11,500 |
Weighted Average Assumptions Used To Determine Net Periodic Benefit Cost | Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 All plans Discount rate 3.70 % 3.20 % 3.54 % 4.05 % 3.50 % 3.95 % Expected return on plan assets 5.00 % 5.34 % 5.57 % — % — % — % Domestic plans Discount rate 4.05 % 3.50 % 3.90 % 4.05 % 3.50 % 3.95 % Expected return on plan assets 5.66 % 6.25 % 6.50 % — % — % — % Foreign plans Discount rate 2.80 % 2.50 % 2.50 % — % — % — % Expected return on plan assets 3.34 % 3.19 % 3.29 % — % — % — % |
Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans | The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets at December 31, 2019 and 2018 . The Spectrum Plan is excluded from the December 31, 2019 amounts as the plan assets exceeded the projected benefit obligation and accumulated benefit obligation at that date. December 31, 2019 2018 (a) Projected benefit obligation $ 1,052,824 $ 1,409,380 Accumulated benefit obligation 1,051,298 1,406,263 Fair value of plan assets 909,890 1,261,130 The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Spectrum Plan, which had plan assets in excess of projected benefit obligations and accumulated benefit obligations at December 31, 2019: December 31, 2019 2018 (a) Projected benefit obligation $ 500,739 $ — Accumulated benefit obligation $ 500,739 $ — Fair value of plan assets $ 516,666 $ — (a) |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: Percentage Point Increase Decrease Increase (decrease) in total service and interest cost components $ 16 $ (17 ) Increase (decrease) in the other postretirement benefit obligation 514 (548 ) |
Weighted Average Asset Allocations for Domestic and U.K. Pension Plans' Assets | The table below presents the weighted average asset allocations for the domestic and U.K. pension plans’ assets at December 31, 2019 and December 31, 2018 by asset category. U.S. Plans U.K. Plan Asset Category 2019 2018 2019 2018 Fixed Income Collective Trust Funds and Securities 65 % 68 % 68 % 70 % Equity Collective Trust Funds and Securities 30 26 19 17 Other Investment Collective Trust Funds and Securities 3 3 12 12 Cash 2 3 1 1 Total 100 % 100 % 100 % 100 % |
Assets of U.S and U.K Plans Using Fair Value Hierarchy | The table below classifies the assets of the U.S. and U.K. plans using the Fair Value Hierarchy described in Note 9 - Fair Value Measurements. Fair Value Hierarchy Total Level 1 Level 2 Level 3 NAV (1) December 31, 2019 United States plans Cash and cash equivalents $ 23,867 $ 23,867 $ — $ — $ — Collective Trust Funds - Equity 309,794 — — — 309,794 Collective Trust Funds - Fixed income 682,279 — 22,410 — 659,869 Collective Trust Funds - Real Estate 31,274 $ — $ — $ — $ 31,274 $ 1,047,214 $ 23,867 $ 22,410 $ — $ 1,000,937 United Kingdom plan Cash and cash equivalents $ 1,802 $ 1,802 $ — $ — $ — Equity securities 72,503 72,503 — — — Fixed income securities 259,192 259,192 — — — Other investments 44,039 — 13,859 30,180 — $ 377,536 $ 333,497 $ 13,859 $ 30,180 $ — December 31, 2018 United States plans Cash & Cash Equivalents $ 23,896 $ 23,896 $ — $ — $ — Collective Trust Funds - Equity 238,795 — — — 238,795 Collective Trust Funds - Fixed Income 622,576 — 10,514 — 612,062 Collective Trust Funds - Real Estate 26,862 — — — 26,862 $ 912,129 $ 23,896 $ 10,514 $ — $ 877,719 United Kingdom plan Cash & Cash Equivalents $ 1,644 $ 1,644 $ — $ — $ — Equity securities 58,848 58,848 — — — Fixed income securities 244,262 244,262 — — — Other investments 42,354 — 13,416 28,938 — $ 347,108 $ 304,754 $ 13,416 $ 28,938 $ — (1) Investments in common/ collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets. |
Details of Activity in Investment in European Infrastructure and Property Funds | The following table details the activity in these investments for the years ended December 31, 2017, 2018 and 2019 : U.K. Plan Balance at December 31, 2016 $ 33,796 Transfer into level 3 — Disbursements — Change in fair value 969 Foreign currency translation effect 3,305 Balance at December 31, 2017 38,070 Transfer into level 3 — Disbursements — Change in fair value (7,294 ) Foreign currency translation effect (1,838 ) Balance at December 31, 2018 28,938 Transfer into level 3 — Disbursements — Change in fair value 97 Foreign currency translation effect 1,145 Balance at December 31, 2019 $ 30,180 |
Estimated Benefit Payments for Domestic and Foreign Pension Plans and Other Postretirement Benefit Plans | The Company estimates its benefit payments for its domestic and foreign pension plans and other postretirement benefit plans during the next ten years to be as follows: Pension Benefits Other Postretirement Benefits 2020 $ 86,944 $ 14,334 2021 86,886 14,557 2022 88,845 14,697 2023 88,431 14,748 2024 89,937 14,852 2025 through 2029 448,531 72,251 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The following table presents the location and amount of lease assets and liabilities in the Consolidated Balance Sheets : Assets Location December 31, 2019 Operating lease assets, net Operating lease right-of-use assets, net $ 80,752 Finance lease assets Property, plant and equipment 4,577 Total leased assets $ 85,329 Liabilities Location Current: Operating Accrued liabilities $ 27,663 Finance Current portion of long-term debt and finance leases 265 Noncurrent: Operating Noncurrent operating leases 55,371 Finance Long-term debt and finance leases 935 Total lease liabilities $ 84,234 The following table presents the weighted-average lease term and discount rates of the Company's lease obligations: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.90 Finance Leases 4.26 Weighted-average discount rate Operating leases 5.76 % Finance Leases 5.79 % |
Lease Cost, Supplemental Cash Flow and Other Information Related to Leases | The following table presents the cash flow amounts related to lease liabilities included in the Company's Consolidated Statement of Cash Flows Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 33,774 Operating cash outflows from finance leases 332 Financing cash outflows from finance leases (605 ) Leased assets obtained in exchange for new finance lease liabilities 43 Leased assets obtained in exchange for new operating lease liabilities 342 The following table presents the location and amount of lease expense in the Consolidated Income Statement: Lease cost Location Twelve Months Ended December 31, 2019 Operating lease cost (a) Cost of sales $ 36,321 Operating lease cost Selling general & administrative expenses 5,632 Total operating lease cost 41,953 Amortization of finance lease assets Cost of sales $ 352 Interest on finance lease liabilities Interest expense 32 Total finance lease cost 384 Net lease cost $ 42,337 (a) - Includes short-term lease costs of $7,328 and variable lease costs of $3,480 for the year ended December 31, 2019 |
Maturities of Operating Lease Liabilities | The following table presents the future maturities of the Company's lease obligations: December 31, 2019 Operating Finance Total 2020 $ 31,397 $ 322 $ 31,719 2021 18,020 323 18,343 2022 13,691 311 14,002 2023 9,693 275 9,968 2024 6,236 127 6,363 After 2024 17,793 — 17,793 Total lease payments 96,830 1,358 98,188 Less: Interest (13,796 ) (158 ) (13,954 ) Present value of lease liabilities $ 83,034 $ 1,200 $ 84,234 |
Maturities of Financing Lease Liabilities | The following table presents the future maturities of the Company's lease obligations: December 31, 2019 Operating Finance Total 2020 $ 31,397 $ 322 $ 31,719 2021 18,020 323 18,343 2022 13,691 311 14,002 2023 9,693 275 9,968 2024 6,236 127 6,363 After 2024 17,793 — 17,793 Total lease payments 96,830 1,358 98,188 Less: Interest (13,796 ) (158 ) (13,954 ) Present value of lease liabilities $ 83,034 $ 1,200 $ 84,234 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Long-Term Liabilities | Other long-term liabilities at December 31 were as follows: 2019 2018 Product liability $ 91,853 $ 81,574 Long-term income taxes payable 20,434 20,145 Stock-based liabilities 14,778 14,451 Other 22,000 19,560 Other long-term liabilities $ 149,065 $ 135,730 |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase Program | The following table summarizes the Company’s Board authorized share repurchase programs and related information for the twelve months ended December 31, 2019 : Program (1) Date Authorized by Board of Directors Expiration Date (2) Amount Authorized (excluding commissions) Amount Spent as of December 31, 2019 (excluding commissions) Status 2017 Repurchase Program February 16, 2017 December 31, 2021 $ 300,000 $ 106,877 Active (1) The repurchase programs listed 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 program listed above have been made using cash resources. (2) On December 3, 2019, the expiration of the 2017 Repurchase Program, scheduled for December 31, 2019, was extended to December 31, 2021. No other changes were made to the program. The following table summarizes the Company’s open market and 10b5-1 plan share repurchase activity and related information during the twelve months ended December 31, 2019 and December 31, 2018 : Number of Shares Average Repurchase Price Per Share Amount (including commissions) 2019 share repurchase activity: 2017 Repurchase Program — — $ — Total share repurchases — — 2018 share repurchase activity: 2017 Repurchase Program 1,018,089 29.65 $ 30,183 Total share repurchases 1,018,089 30,183 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation Expense | The following table discloses the amount of stock-based compensation expense: Stock-Based Compensation 2019 2018 2017 Stock options $ — $ — $ 14 Restricted stock units 2,836 3,196 3,302 Performance stock units 1,526 672 693 Total stock-based compensation $ 4,362 $ 3,868 $ 4,009 |
Summarized Information for the Plans | Summarized information for the plans follows: Number of Shares Weighted Average Exercise Price (per share) Aggregate Intrinsic Value (thousands) Outstanding at December 31, 2018 268,802 $ 22.27 Granted — — Exercised (24,774 ) 12.50 Expired — — Canceled (5,280 ) 21.72 Outstanding at December 31, 2019 238,748 23.30 $ 2,157 Exercisable at December 31, 2019 238,748 23.30 2,157 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of options granted (per share) $ — $ — $ — Aggregate intrinsic value of options exercised (thousands) 425 298 4,194 Weighted average grant-date fair value of shares vested (thousands) — — 1,400 |
Segregated Disclosure of Options Outstanding | Segregated disclosure of options outstanding at December 31, 2019 was as follows: Range of Exercise Prices Less than or equal to $15.63 Greater than $15.63 Options outstanding 22,965 215,783 Weighted average exercise price $ 15.63 $ 24.11 Remaining contractual life 2.1 3.2 Options exercisable 22,965 215,783 Weighted average exercise price $ 15.63 $ 24.11 |
Details of Nonvested Restricted Stock Units Activity | The following table provides details of the nonvested restricted stock units for 2019 : Number of Restricted Units Weighted Average Grant-Date Fair Value (per share) Aggregate Intrinsic Value (thousands) Nonvested at December 31, 2018 240,991 $ 35.69 Granted 120,001 32.52 Vested (91,237 ) 36.56 Canceled (42,667 ) 36.90 Accrued dividend equivalents 3,874 34.07 Nonvested at December 31, 2019 230,962 $ 33.49 Vested but not released 1,483 $ 18.04 Outstanding at December 31, 2019 232,445 $ 33.39 $ 7,761 Weighted-average remaining contractual term of shares outstanding (months) 21 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of restricted shares granted (per share) $ 32.52 $ 34.53 $ 38.33 Weighted average grant-date fair value of shares vested (thousands) $ 3,336 $ 3,000 $ 5,627 |
Performance Based Units Earned under Long-Term Incentive Plan | The following table provides details of the nonvested performance stock units earned under the Company’s Long-Term Incentive Plan: Number of Performance Units Weighted Average Grant- Date Fair Value (per share) Aggregate Intrinsic Value (thousands) Nonvested at December 31, 2018 32,071 $ 27.79 Earned 69,938 33.27 Vested (30,705 ) 34.93 Canceled (12,472 ) 34.35 Accrued dividend equivalents 503 36.13 Nonvested at December 31, 2019 59,335 $ 33.79 Vested but not released 22,529 $ 34.31 Outstanding at December 31, 2019 81,864 $ 33.93 $ 2,778 Weighted-average remaining contractual term of performance stock units outstanding (months) 12 Year ended December 31, 2019 2018 2017 Weighted average grant-date fair value of performance stock units granted (per share) $ 33.27 $ 36.08 $ 38.23 Weighted average grant-date fair value of performance stock units vested (thousands) $ 1,073 $ 1,821 $ 4,213 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Cumulative Other Comprehensive Income (Loss) in Accompanying Consolidated Statements of Equity | The following tables provide a quarterly reconciliation of each component of accumulated other comprehensive (loss) income in the accompanying Consolidated Statements of Equity for the year to date as of December 31, 2019 and 2018 : Cumulative Translation Adjustment Derivative Instruments Post- retirement Benefits Total Ending Balance, December 31, 2018 $ (62,133 ) $ 2,150 $ (401,606 ) $ (461,589 ) Other comprehensive income (loss) before reclassifications 3,947 (2,612 ) (12,877 ) (11,542 ) Foreign currency translation effect — — (2,668 ) (2,668 ) Income tax effect — 804 — 804 Amount reclassified from accumulated other comprehensive (loss) income Cash flow hedges — (1,141 ) — (1,141 ) Amortization of prior service cost — — 603 603 Amortization of actuarial losses — — 35,843 35,843 Pension settlement charge — — 4,262 4,262 Prior service effect of plan amendment — — (3,069 ) (3,069 ) Income tax effect — 250 (9,333 ) (9,083 ) Other comprehensive income (loss) 3,947 (2,699 ) 12,761 14,009 Ending Balance, December 31, 2019 $ (58,186 ) $ (549 ) $ (388,845 ) $ (447,580 ) Cumulative Translation Adjustment Derivative Instruments Post- retirement Benefits Total Ending Balance, December 31, 2017 $ (39,940 ) $ 349 $ (438,887 ) $ (478,478 ) Other comprehensive (loss) income before reclassifications (22,193 ) 5,040 12,913 (4,240 ) Foreign currency translation effect — — (264 ) (264 ) Income tax effect — (1,213 ) (242 ) (1,455 ) Amount reclassified from accumulated other comprehensive (loss) income Cash flow hedges — (2,412 ) — (2,412 ) Amortization of prior service credit — — (541 ) (541 ) Amortization of actuarial losses — — 37,203 37,203 Prior service effect of plan amendment — — (3,704 ) (3,704 ) Income tax effect — 386 (8,084 ) (7,698 ) Other comprehensive (loss) income (22,193 ) 1,801 37,281 16,889 Ending Balance, December 31, 2018 $ (62,133 ) $ 2,150 $ (401,606 ) $ (461,589 ) |
Comprehensive Income (Loss) A_2
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: Twelve Months Ended December 31, 2019 2018 2017 Net income attributable to noncontrolling shareholders’ interests $ 1,913 $ 3,977 $ 1,345 Other comprehensive income (loss): Currency translation adjustments 795 (2,237 ) 3,375 Comprehensive income attributable to noncontrolling shareholders’ interests $ 2,708 $ 1,740 $ 4,720 |
Contingent Liabilities (Tables)
Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Liability Contingencies | For the twelve months ended December 31, 2019 and 2018 , respectively, product liability expense was as follows: Twelve Months Ended December 31, 2019 2018 2017 Product liability expense $ 40,309 $ 17,692 $ 25,970 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Financial Information | The following table details segment financial information: Twelve Months Ended December 31, 2019 2018 2017 Net sales: Americas Tire External customers $ 2,315,497 $ 2,330,457 $ 2,376,808 Intercompany 38,229 32,189 39,970 2,353,726 2,362,646 2,416,778 International Tire External customers 437,143 477,621 477,848 Intercompany 96,860 163,355 141,021 534,003 640,976 618,869 Eliminations (135,090 ) (195,560 ) (180,991 ) Consolidated net sales 2,752,639 2,808,062 2,854,656 Operating profit (loss): Americas Tire 237,753 229,500 355,059 International Tire (13,390 ) (14,044 ) 15,168 Unallocated corporate charges (49,968 ) (51,564 ) (59,153 ) Eliminations 60 1,353 (1,827 ) Consolidated operating profit 174,455 165,245 309,247 Interest expense (31,189 ) (32,181 ) (32,048 ) Interest income 9,458 10,216 7,362 Other pension and postretirement benefit expense (41,567 ) (27,806 ) (37,523 ) Other non-operating expense (1,485 ) (1,416 ) (3,113 ) Income before income taxes $ 109,672 $ 114,058 243,925 Depreciation and amortization expense: Americas Tire 44,551 57,265 91,324 International Tire 31,654 34,564 33,303 Corporate 71,849 55,332 15,601 Consolidated depreciation and amortization expense 148,054 147,161 140,228 Segment assets: Americas Tire 1,543,779 1,513,534 1,552,855 International Tire 739,076 662,226 700,690 Corporate and other 519,483 458,445 454,380 Consolidated assets 2,802,338 2,634,205 2,707,925 Expenditures for long-lived assets: Americas Tire 111,819 112,444 109,175 International Tire 62,334 71,667 89,008 Corporate 28,569 9,188 (997 ) Consolidated expenditures for long-lived assets 202,722 193,299 197,186 |
Geographic Information for Revenues, Based on Country of Origin, and Long-Lived Assets | Geographic information for long-lived assets follows: As of December 31, 2019 2018 2017 Net sales United States $ 2,175,599 $ 2,196,424 $ 2,240,882 Rest of world 577,040 611,638 613,774 Consolidated net sales 2,752,639 2,808,062 2,854,656 Long-lived assets (a) United States 683,769 595,768 568,215 PRC 239,889 232,339 218,044 Rest of world 204,336 173,814 180,488 Consolidated long-lived assets 1,127,994 1,001,921 966,747 (a) |
Net Sales and Percentage of Consolidated Net Sales | Net sales and percentage of consolidated Company sales for these customers in 2019 , 2018 and 2017 were as follows: 2019 2018 2017 Customer Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales Net Sales Consolidated Net Sales American Tire Distributors, Inc. $ 311,559 11 % $ 310,070 11 % $ 252,395 9 % TBC/Treadways $ 214,138 8 % $ 231,896 8 % $ 304,840 11 % |
Selected Quarterly Data (Tables
Selected Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data | SELECTED QUARTERLY DATA (Unaudited) (Dollar amounts in thousands except per share amounts.) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter (a) Net sales $ 619,163 $ 679,130 $ 704,134 $ 750,212 Gross profit 88,259 99,141 114,366 131,524 Net income attributable to Cooper Tire & Rubber Company 6,979 8,821 29,344 51,259 Earnings per share: Basic 0.14 0.18 0.58 1.02 Diluted 0.14 0.18 0.58 1.02 Net sales: Americas Tire $ 514,936 $ 582,307 $ 601,957 $ 654,526 International Tire 143,785 138,514 132,270 119,434 Eliminations (39,558 ) (41,691 ) (30,093 ) (23,748 ) Consolidated net sales $ 619,163 $ 679,130 $ 704,134 $ 750,212 Operating profit (loss): Americas Tire $ 38,789 $ 46,814 $ 67,941 $ 84,209 International Tire (1,339 ) (1,296 ) (4,831 ) (5,924 ) Unallocated corporate charges (10,453 ) (13,278 ) (11,051 ) (15,186 ) Eliminations (566 ) (569 ) 710 484 Consolidated operating profit 26,431 31,671 52,769 63,583 Interest expense (8,314 ) (7,810 ) (7,476 ) (7,590 ) Interest income 3,380 1,999 1,507 2,571 Other pension and postretirement benefit expense (9,362 ) (9,288 ) (9,562 ) (13,355 ) Other non-operating income (expense) 1,380 (1,463 ) (509 ) (892 ) Income before income taxes $ 13,515 $ 15,109 $ 36,729 $ 44,317 Net income $ 7,178 $ 9,258 $ 29,008 $ 52,871 Net income attributable to Cooper Tire & Rubber Company $ 6,979 $ 8,821 $ 29,344 $ 51,259 Basic and diluted earnings per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Each quarter's financial data is recorded here as disclosed in its respective 10-Q report. Therefore, the sum of quarterly information here may not equal the annual financial statement amounts due to rounding. (a) In the fourth quarter, the Company recorded an income tax benefit of $18,606 as a result of a business realignment strategy implemented in Europe. (Unaudited) 2018 First Quarter Second Quarter Third Quarter Fourth Quarter (a) Net sales $ 601,496 $ 698,408 $ 737,671 $ 770,487 Gross profit 84,485 94,223 139,947 124,638 Net income (loss) attributable to Cooper Tire & Rubber Company 8,285 15,008 53,713 (419 ) Earnings per share: Basic 0.16 0.30 1.07 (0.01 ) Diluted 0.16 0.30 1.07 (0.01 ) Net sales: Americas Tire $ 485,392 $ 584,412 $ 628,704 $ 664,138 International Tire 161,244 167,839 162,401 149,492 Eliminations (45,140 ) (53,843 ) (53,434 ) (43,143 ) Consolidated net sales $ 601,496 $ 698,408 $ 737,671 $ 770,487 Operating profit (loss): Americas Tire $ 31,236 $ 40,480 $ 87,353 $ 70,432 International Tire 7,434 5,652 5,994 (33,124 ) Unallocated corporate charges (b) (11,966 ) (13,705 ) (12,518 ) (13,376 ) Eliminations (250 ) 336 372 894 Consolidated operating profit 26,454 32,763 81,201 24,826 Interest expense (7,691 ) (8,417 ) (7,930 ) (8,142 ) Interest income 2,315 1,988 2,399 3,514 Other pension and postretirement benefit expense (b) (6,986 ) (6,967 ) (6,932 ) (6,921 ) Other non-operating (loss) income (1,658 ) (1,391 ) 2,922 (1,288 ) Income before income taxes $ 12,434 $ 17,976 $ 71,660 $ 11,989 Net income $ 8,983 $ 15,709 $ 55,433 $ 439 Net income (loss) attributable to Cooper Tire & Rubber Company $ 8,285 $ 15,008 $ 53,713 $ (419 ) Basic and diluted earnings (loss) per share are computed independently for each quarter presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. Each quarter's financial data is recorded here as disclosed in its respective 10-Q report. Therefore, the sum of quarterly information here may not equal the annual financial statement amounts due to rounding. (a) In the fourth quarter, the Company recorded a non-cash goodwill impairment charge of $33,827 . Refer to Note 5 - Goodwill and Intangibles for further details. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | May 10, 2019 | Feb. 15, 2019 | Sep. 24, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 22, 2017 |
Summary Of Significant Policies [Line Items] | ||||||||
Minimum percentage of investment consolidated | 50.00% | |||||||
Maximum percentage of cost method investments | 20.00% | |||||||
Cash and cash equivalents | $ 391,332,000 | $ 356,254,000 | $ 371,684,000 | |||||
Unremitted foreign earnings | 727,000,000 | $ 495,000,000 | ||||||
Product liability expenses, minimum | 0 | |||||||
Product liability expenses, maximum | 33,000,000 | |||||||
Advertising expense | 58,453,000 | 54,177,000 | 52,798,000 | |||||
Research and development expense | $ 59,869,000 | 69,928,000 | 64,007,000 | |||||
Payment made by company's joint venture to related party for services | 40,279,000 | 26,589,000 | 28,023,000 | |||||
Sale to noncontrolling shareholder | $ 8,209,000 | 4,373,000 | 4,713,000 | |||||
Purchases from related party | 10,920,000 | 775,000 | ||||||
Unfavorable Regulatory Action | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Loss contingency imposed | 42.16% | |||||||
Incurred expense on loss contingency | 33,507,000 | |||||||
Section 301 Tariffs | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Loss contingency imposed | 25.00% | 10.00% | ||||||
Incurred expense on loss contingency | 19,053,000 | 6,431,000 | ||||||
Section 301 Tariffs | Cost of Sales | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Recovery of loss contingency duties | 20,091,000 | |||||||
Section 301 Tariffs Prior Year | Cost of Sales | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Recovery of loss contingency duties | $ 11,346,000 | |||||||
Loss from Catastrophes | Cost of Sales | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Incurred expense on loss contingency | 1,569,000 | 12,583,000 | ||||||
Recovered insurance proceeds | $ 7,300,000 | $ 7,000,000 | ||||||
Computer Software, Intangible Asset | Minimum | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Intangible asset useful life | 1 year | |||||||
Computer Software, Intangible Asset | Maximum | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Intangible asset useful life | 10 years | |||||||
Land Use Rights | Minimum | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Intangible asset useful life | 36 years | |||||||
Land Use Rights | Maximum | ||||||||
Summary Of Significant Policies [Line Items] | ||||||||
Intangible asset useful life | 43 years |
Significant Accounting Polici_5
Significant Accounting Policies - Expected Useful Lives of Property, Plant and Equipment Recorded at Cost and Depreciated or Amortized (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 20 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 14 years |
Furniture and Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Furniture and Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Molds, cores and rings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 2 years |
Molds, cores and rings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator | |||||||||||
Numerator for basic and diluted earnings per share - income from continuing operations available to common stockholders | $ 51,259 | $ 29,344 | $ 8,821 | $ 6,979 | $ (419) | $ 53,713 | $ 15,008 | $ 8,285 | $ 96,404 | $ 76,586 | $ 95,400 |
Denominator | |||||||||||
Denominator for basic earnings per share - weighted average shares outstanding (in shares) | 50,159 | 50,350 | 52,206 | ||||||||
Effect of dilutive securities - stock options and other stock units (in shares) | 219 | 247 | 467 | ||||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding (in shares) | 50,378 | 50,597 | 52,673 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 1.02 | $ 0.58 | $ 0.18 | $ 0.14 | $ (0.01) | $ 1.07 | $ 0.30 | $ 0.16 | $ 1.92 | $ 1.52 | $ 1.83 |
Diluted (in dollars per share) | $ 1.02 | $ 0.58 | $ 0.18 | $ 0.14 | $ (0.01) | $ 1.07 | $ 0.30 | $ 0.16 | $ 1.91 | $ 1.51 | $ 1.81 |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Reserve at beginning of year | $ 12,431 | $ 12,093 | $ 10,634 |
Additions | 11,609 | 13,187 | 10,310 |
Payments | (11,306) | (12,849) | (8,851) |
Reserve at period end | $ 12,734 | $ 12,431 | $ 12,093 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) $ in Thousands | Jan. 17, 2019Employee | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring, expected number of positions eliminated | Employee | 300 | ||||
Restructuring, remaining number of positions after elimination | Employee | 400 | ||||
Restructuring expense | $ 8,818 | $ 0 | $ 0 | ||
Accrued restructuring balance | $ 1,398 | 1,398 | |||
Facility Closing | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring, cost related to facility closing | 8,315 | ||||
Restructuring expense | 759 | ||||
Asian operations employee severance costs | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Restructuring expense | $ 1,262 | $ 1,262 |
Restructuring - Restructuring a
Restructuring - Restructuring and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | $ 8,818 | $ 0 | $ 0 | |
Restructuring Reserve [Roll Forward] | ||||
Ending balance of total accrued restructuring | $ 1,398 | 1,398 | ||
Melksham employee severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 5,308 | |||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance of accrued restructuring | 0 | |||
Additional restructuring accrual | 6,630 | |||
Payments for restructuring | (5,368) | |||
Ending balance of total accrued restructuring | $ 0 | |||
Asset write-downs & other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | 2,248 | |||
Restructuring Reserve [Roll Forward] | ||||
Additional restructuring accrual | 819 | |||
Payments for restructuring | (683) | |||
Asian operations employee severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expense | $ 1,262 | $ 1,262 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue Disaggregated by Major Market Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 750,212 | $ 704,134 | $ 679,130 | $ 619,163 | $ 770,487 | $ 737,671 | $ 698,408 | $ 601,496 | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Light vehicle | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,431,730 | 2,488,041 | |||||||||
TBR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 214,453 | 210,142 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 106,456 | 109,879 | |||||||||
Americas Tire | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,315,497 | 2,330,457 | 2,376,808 | ||||||||
International Tire | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 437,143 | 477,621 | 477,848 | ||||||||
Operating Segments | Americas Tire | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 654,526 | 601,957 | 582,307 | 514,936 | 664,138 | 628,704 | 584,412 | 485,392 | 2,353,726 | 2,362,646 | 2,416,778 |
Operating Segments | Americas Tire | Light vehicle | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,096,864 | 2,115,942 | |||||||||
Operating Segments | Americas Tire | TBR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 200,088 | 194,558 | |||||||||
Operating Segments | Americas Tire | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 56,774 | 52,146 | |||||||||
Operating Segments | International Tire | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 119,434 | $ 132,270 | $ 138,514 | $ 143,785 | $ 149,492 | $ 162,401 | $ 167,839 | $ 161,244 | 534,003 | 640,976 | $ 618,869 |
Operating Segments | International Tire | Light vehicle | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 403,524 | 481,499 | |||||||||
Operating Segments | International Tire | TBR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 80,797 | 101,744 | |||||||||
Operating Segments | International Tire | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 49,682 | 57,733 | |||||||||
Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (135,090) | (195,560) | |||||||||
Eliminations | Light vehicle | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (68,658) | (109,400) | |||||||||
Eliminations | TBR | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (66,432) | (86,160) | |||||||||
Eliminations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Changes in Contract Liabilities Balance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Movement in Contract with Customer Liability [Roll Forward] | |
Contract liabilities at beginning of year | $ 947 |
Increases to deferred revenue for cash received in advance from customers | 16,297 |
Decreases due to recognition of deferred revenue | (16,164) |
Contract liabilities at end of period | $ 1,080 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 365,585 | $ 380,990 |
U.S. inventories, LIFO reserve | $ 87,616 | $ 85,068 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2011 | Dec. 31, 2010 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Goodwill acquisitions | $ 33,250,000 | $ 18,851,000 | |||||
Goodwill | $ 18,851,000 | $ 18,851,000 | $ 18,851,000 | $ 0 | |||
Goodwill impairment charge | $ 33,827,000 | 0 | $ 33,827,000 | $ 0 | |||
Impairment of indefinite-lived intangible assets | 0 | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||||||
2020 | 19,274,000 | ||||||
2021 | 18,723,000 | ||||||
2022 | 16,935,000 | ||||||
2023 | 15,866,000 | ||||||
2024 | $ 14,378,000 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible Assets and Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 225,274 | $ 223,125 |
Accumulated Amortization | (123,735) | (112,621) |
Net Carrying Amount | 101,539 | 110,504 |
Intangible assets gross excluding goodwill | 235,091 | 232,942 |
Total | 111,356 | 120,321 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | 9,817 | 9,817 |
Capitalized software costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 205,929 | 197,338 |
Accumulated Amortization | (115,090) | (97,972) |
Net Carrying Amount | 90,839 | 99,366 |
Land use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,145 | 14,526 |
Accumulated Amortization | (3,545) | (3,860) |
Net Carrying Amount | 10,600 | 10,666 |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,800 | 8,000 |
Accumulated Amortization | (3,800) | (7,823) |
Net Carrying Amount | 0 | 177 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,400 | 3,261 |
Accumulated Amortization | (1,300) | (2,966) |
Net Carrying Amount | $ 100 | $ 295 |
Accrued Liabilities - Component
Accrued Liabilities - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Volume and customer rebate programs | $ 99,168 | $ 115,623 |
Payroll and employee benefits, excluding postemployment benefits | 75,218 | 63,557 |
Operating lease liability, current | 27,663 | |
Product liability | 25,366 | 30,550 |
Other postretirement benefits | 14,334 | 15,344 |
Advertising | 13,281 | 16,036 |
Taxes other than income taxes | 12,505 | 13,571 |
Warranty | 8,041 | 8,273 |
Other | 26,901 | 19,696 |
Accrued liabilities | $ 302,477 | $ 282,650 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations before Income Taxes and Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | $ 44,317 | $ 36,729 | $ 15,109 | $ 13,515 | $ 11,989 | $ 71,660 | $ 17,976 | $ 12,434 | $ 109,672 | $ 114,058 | $ 243,925 |
United States | |||||||||||
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | (4,720) | 108,838 | 211,225 | ||||||||
Foreign | |||||||||||
Income From Continuing Operations Before Income Taxes And Noncontrolling Shareholders Interests [Line Items] | |||||||||||
Income from continuing operations before income taxes and noncontrolling shareholders' interests | $ 114,392 | $ 5,220 | $ 32,700 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Tax for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 2,659 | $ 56 | $ 69,463 |
State and local | 5,386 | 5,350 | 6,304 |
Foreign | 9,733 | 7,214 | 9,842 |
Current income tax provision (benefit) for continuing operations, Total | 17,778 | 12,620 | 85,609 |
Deferred: | |||
Federal | 1,356 | 18,293 | 48,866 |
State and local | (4,027) | 3,266 | 4,915 |
Foreign | (3,752) | (684) | 7,790 |
Deferred income tax provision (benefit) for continuing operations, Total | (6,423) | 20,875 | 61,571 |
Provision for income taxes | $ 11,355 | $ 33,495 | $ 147,180 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 22, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Measurement period adjustment, change in tax rate, income tax benefit | $ 3,576,000 | |||
Measurement period adjustment, transition tax for accumulated foreign earnings, income tax expense | 5,026,000 | |||
Additional U.S. tax act- transition tax | $ 1,661 | |||
U.S. tax act - transition tax | 20,434,000 | 18,773,000 | ||
Unremitted foreign earnings | $ 727,000,000 | $ 495,000,000 | ||
Income tax holiday term | 10 years | |||
Income tax holiday, percent | 1.50% | |||
Income tax holiday, aggregate dollar amount | $ 15,030,000 | |||
Payments for income taxes net of refunds | 10,244,000 | 19,763,000 | $ 67,782,000 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowances | 27,270,000 | $ 22,620,000 | ||
Recognition of unrecognized tax benefit upon which the effective rate would change | 9,934,000 | |||
Unrecognized tax benefit that would impact effective tax rate | 8,468,000 | |||
Interest on income tax expense (benefit) | 1,262,000 | |||
Unrecognized tax benefits interest on income taxes accrued | 1,353,000 | |||
United States | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforward domestic | 6,560,000 | |||
Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforward domestic | $ 76,748,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) for Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision | $ 23,031 | $ 23,952 | $ 85,375 |
Difference in effective tax rates of international operations | (21,399) | (1,124) | (4,667) |
State and local income tax, net of federal income tax effect | (2,366) | 2,983 | 7,867 |
Net U.S. GILTI inclusion | 8,419 | 1,455 | 0 |
Valuation allowance | 6,306 | (2,433) | 11,593 |
Income tax contingencies, net of federal income tax effect | 4,246 | 1,263 | (551) |
Domestic manufacturing deduction | 0 | 0 | (2,940) |
U.S. tax credits | (6,292) | (4,401) | (2,474) |
Goodwill impairment | 0 | 8,432 | 0 |
Mexico inflationary deferred tax adjustments | (1,790) | 259 | (1,383) |
U.S. tax reform - transition tax | 1,661 | 5,026 | 35,378 |
U.S. tax reform - remeasurement of deferred taxes | 0 | (3,576) | 20,413 |
Other - net | (461) | 1,659 | (1,431) |
Provision for income taxes | $ 11,355 | $ 33,495 | $ 147,180 |
Statutory tax rate (as a percent) | 21.00% | 35.00% |
Income Taxes - Components of Co
Income Taxes - Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Postretirement and other employee benefits | $ 94,581 | $ 97,269 |
Product liability | 30,791 | 27,922 |
Net operating loss, capital loss, and tax credit carryforwards | 14,291 | 11,064 |
All other items | 37,296 | 29,375 |
Total deferred tax assets | 176,959 | 165,630 |
Deferred tax liabilities: | ||
Property, plant and equipment | (117,148) | (108,668) |
All other items | (6,141) | (6,196) |
Total deferred tax liabilities | (123,289) | (114,864) |
Deferred tax assets (liabilities), net, total | 53,670 | 50,766 |
Valuation allowances | (27,270) | (22,620) |
Net deferred tax asset | $ 26,400 | $ 28,146 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits for Permanent and Temporary Book/Tax Differences for Continuing Operations, Exclusive of Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 6,525 | $ 2,283 | $ 3,197 |
Settlements for tax positions of prior years | (1,567) | (364) | (139) |
Additions for tax positions of the current year | 2,555 | 47 | |
Additions for tax positions of current year | 5,644 | 2,881 | 438 |
Statute lapses | (668) | (830) | (1,260) |
Ending balance | $ 9,934 | $ 6,525 | $ 2,283 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2010 | Jun. 27, 2019USD ($) | Feb. 15, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Effect of tax exemption granted to Texarkana Industrial Revenue Bonds (as a percent) | 100.00% | |||||
Assets associated with City of Texarkana IRBs | $ 72,080,000 | $ 35,000,000 | ||||
Interest paid | 33,161,000 | 34,070,000 | $ 34,085,000 | |||
Interest capitalized | 2,233,000 | 2,663,000 | $ 2,706,000 | |||
Short-term notes payable | $ 12,296,000 | $ 15,288,000 | ||||
Weighted average interest rate of short term notes payable | 4.70% | 4.82% | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||
Line of credit facility, debt issuance costs | 1,507,000 | |||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Amounts used to secure letters of credit | $ 21,651,000 | $ 16,800,000 | ||||
Bank Group And Accounts Receivable Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Additional borrowing capacity | 601,649,000 | |||||
Asian Credit Lines | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 46,426,000 | |||||
Additional borrowing capacity | 34,130,000 | |||||
Amended Accounts Receivable Facility | Accounts Receivable Securitization Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | |||||
Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 700,000,000 | 400,000,000 | ||||
Increase in line credit facility (up to) | $ 300,000,000 | |||||
Debt instrument, leverage ratio, maximum | 1.75 | |||||
Line of credit facility, debt issuance costs | $ 2,207,000 | |||||
Borrowings outstanding | $ 0 | $ 0 | ||||
Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 110,000,000 | $ 110,000,000 | ||||
Line of Credit | Term Loan A Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | |||||
Line of credit facility, debt issuance costs | $ 700,000 |
Debt - Long Term Debt (Detail)
Debt - Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 320,643 | $ 296,703 |
Less: unamortized debt issuance costs | 1,230 | 659 |
Long-term debt, including current maturities | 319,413 | 296,044 |
Less: current maturities | 10,265 | 174,760 |
Long-term debt, noncurrent | 309,148 | 121,284 |
3.3% Term Loan A due June 2024 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 197,500 | 0 |
8% Unsecured Notes due December 2019 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 0 | 173,578 |
7.625% Unsecured Notes due March 2027 | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 116,880 | 116,880 |
Capitalized leases and other | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 6,263 | $ 6,245 |
Parent company | 3.3% Term Loan A due June 2024 | ||
Debt Instrument [Line Items] | ||
Notes interest rate | 3.30% | |
Parent company | 8% Unsecured Notes due December 2019 | ||
Debt Instrument [Line Items] | ||
Notes interest rate | 8.00% | |
Parent company | 7.625% Unsecured Notes due March 2027 | ||
Debt Instrument [Line Items] | ||
Notes interest rate | 7.625% |
Debt Debt - Schedule of Payment
Debt Debt - Schedule of Payments on Long Term Debt (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 10,000 |
2021 | 17,563 |
2022 | 15,000 |
2023 | 17,500 |
2024 | $ 142,500 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jul. 11, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Gain (loss) of the effective portion of change in fair value of foreign currency forward contracts | $ (1,033,000) | $ 2,216,000 | |
Fair value of foreign currency contracts | (994,000) | (1,503,000) | |
Long-term debt and finance leases | 309,148,000 | 121,284,000 | |
Quoted Prices in Active Markets for Identical Assets Level (1) | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Fair value of long term debt | 292,719,000 | 137,343,000 | |
Foreign Currency Derivative | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Notional amount of derivative instruments | $ 167,915,000 | $ 129,542,000 | |
Foreign Currency Derivative | Maximum | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Maturity period of hedges | 12 months | ||
Interest Rate Swaps | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Notional amount of derivative instruments | $ 200,000,000 | ||
Variable interest rate of inters rate swap derivative instrument | 1.72% | ||
Derivatives Designated as Cash Flow Hedges | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Maturity period of hedges | 2 years | ||
Term Loan A Facility | Line of Credit | London Interbank Offered Rate (LIBOR) | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Basis points on Term Loan A | 1.50% | ||
Fair Value, Measurements, Recurring | Interest Rate Swaps | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Change in fair value of swaps | $ (1,032,000) | ||
Fair Value, Measurements, Recurring | Interest Rate Swaps | Quoted Prices in Active Markets for Identical Assets Level (1) | |||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | |||
Change in fair value of swaps | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts presented | $ (2,420) | $ 1,750 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Net amounts presented | (1,681) | (1,380) |
Designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (3,208) | (1,524) |
Gross amounts offset | 149 | 2,237 |
Net amounts | (3,059) | 713 |
Not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts recognized | (1,118) | (544) |
Gross amounts offset | 76 | 201 |
Net amounts | $ (1,042) | $ (343) |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives | $ (3,753) | ||
Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives | $ 2,628 | $ (2,473) | |
Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives | (2,612) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1,141 | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 2,412 | (3,619) | |
Designated as Hedging Instrument | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 988 | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1,453 | (2,532) | |
Designated as Hedging Instrument | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (123) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | (134) | (69) | |
Designated as Hedging Instrument | Other non-operating expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 276 | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income | 1,093 | (1,018) | |
Not designated as hedging instruments: | Foreign Currency Derivative | Other non-operating expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (2,674) | 602 | (3,464) |
Derivatives Designated as Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Recognized in Other Comprehensive Income on Derivatives | $ 5,040 | $ (6,092) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Hierarchy for those Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign Currency Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | $ (3,069) | $ 370 |
Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | (1,032) | |
Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | (14,971) | (14,644) |
Quoted Prices in Active Markets for Identical Assets Level (1) | Foreign Currency Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets Level (1) | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | 0 | |
Quoted Prices in Active Markets for Identical Assets Level (1) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | (14,971) | (14,644) |
Significant Other Observable Inputs Level (2) | Foreign Currency Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | (3,069) | 370 |
Significant Other Observable Inputs Level (2) | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | (1,032) | |
Significant Other Observable Inputs Level (2) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | 0 | 0 |
Significant Unobservable Inputs Level (3) | Foreign Currency Derivative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | 0 | 0 |
Significant Unobservable Inputs Level (3) | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | 0 | |
Significant Unobservable Inputs Level (3) | Stock-based Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets (liabilities) | $ 0 | $ 0 |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits Other than Pensions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 26, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Expense for defined contribution plans | $ 13,370 | $ 12,424 | $ 13,931 | |
Unrecognized prior service credit included in cumulative other comprehensive loss | 5,780 | (497) | ||
Unrecognized prior service credit, included in cumulative other comprehensive loss, net of tax | 4,338 | (373) | ||
Unrecognized actuarial losses included in cumulative other comprehensive loss | (413,676) | (438,176) | ||
Unrecognized actual losses included in other comprehensive loss net of tax | (384,507) | (401,979) | ||
Prior service credit expected to be recognized in next fiscal year | 620 | |||
Actuarial loss expected to be recognized in next fiscal year | (33,169) | |||
Accumulated benefit obligation | $ 1,552,037 | 1,406,263 | ||
Weighted average assumed annual rate of increase in the cost of medical benefits | 6.75% | |||
Weighted average assumed annual rate of increase in trending linearly cost | 4.50% | |||
Defined contribution plan, employer discretionary contribution | 25,000 | |||
Contributed to domestic and foreign pension plans | $ 48,899 | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions to domestic and foreign pension plans | 45,000 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contributions to domestic and foreign pension plans | 55,000 | |||
United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 377,536 | 347,108 | ||
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,047,214 | 912,129 | ||
GERMANY | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,806 | 1,893 | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | 77,718 | 81,431 | ||
Plan amendment | 3,069 | 3,704 | ||
Fair market value of plan assets | 1,426,556 | 1,261,130 | 1,330,225 | |
Pension Plan | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | 18,196 | |||
Defined benefit plan, settlements charge | 4,262 | |||
Pension Plan | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | 63,176 | 63,542 | ||
Plan amendment | 3,069 | 0 | ||
Fair market value of plan assets | 1,047,214 | 912,129 | 944,346 | |
Pension Plan | Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefits paid | 14,542 | 17,889 | ||
Plan amendment | $ 3,704 | 0 | ||
Fair market value of plan assets | $ 379,342 | $ 349,001 | $ 385,879 |
Pensions and Postretirement B_4
Pensions and Postretirement Benefits Other than Pensions - Defined Benefit Pension and Other Postretirement Benefits Plans (Detail) - USD ($) $ in Thousands | Oct. 26, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Amounts recognized in the balance sheets: | ||||
Postretirement benefits other than pensions | $ (227,216) | $ (236,454) | ||
Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 1,409,380 | 1,550,059 | ||
Service cost - employer | 8,906 | 10,363 | ||
Interest cost | 50,560 | 48,001 | ||
Actuarial (gain)/loss | 162,549 | (95,607) | ||
Benefits paid | (77,718) | (81,431) | ||
Plan Amendment | 3,069 | 3,704 | ||
Settlements | (18,196) | 0 | ||
Foreign currency translation effect | 15,013 | (25,709) | ||
Projected Benefit Obligation at end of year | 1,553,563 | 1,409,380 | $ 1,550,059 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 1,261,130 | 1,330,225 | ||
Actual return on plans’ assets | 198,088 | (41,654) | ||
Employer contribution | 48,899 | 75,113 | ||
Benefits paid | (77,718) | (81,431) | ||
Settlements | (18,196) | 0 | ||
Foreign currency translation effect | 14,353 | (21,123) | ||
Fair value of plans’ assets at end of year | 1,426,556 | 1,261,130 | 1,330,225 | |
Funded status | (127,007) | (148,250) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (300) | (300) | ||
Postretirement benefits other than pensions | (126,707) | (147,950) | ||
Other Postretirement Benefits | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 251,798 | 271,726 | ||
Service cost - employer | 1,573 | 1,948 | 2,003 | |
Interest cost | 9,887 | 9,251 | 10,063 | |
Actuarial (gain)/loss | (9,664) | (19,909) | ||
Benefits paid | (12,044) | (11,218) | ||
Plan Amendment | 0 | 0 | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Projected Benefit Obligation at end of year | 241,550 | 251,798 | 271,726 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 0 | 0 | ||
Actual return on plans’ assets | 0 | 0 | ||
Employer contribution | 0 | 0 | ||
Benefits paid | 0 | 0 | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Fair value of plans’ assets at end of year | 0 | 0 | 0 | |
Funded status | (241,550) | (251,798) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (14,334) | (15,344) | ||
Postretirement benefits other than pensions | (227,216) | (236,454) | ||
United States | ||||
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 912,129 | |||
Fair value of plans’ assets at end of year | 1,047,214 | 912,129 | ||
United States | Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 1,004,751 | 1,088,633 | ||
Service cost - employer | 8,906 | 10,363 | 9,860 | |
Interest cost | 39,499 | 36,840 | 39,251 | |
Actuarial (gain)/loss | 113,828 | (67,543) | ||
Benefits paid | (63,176) | (63,542) | ||
Plan Amendment | 3,069 | 0 | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Projected Benefit Obligation at end of year | 1,106,877 | 1,004,751 | 1,088,633 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 912,129 | 944,346 | ||
Actual return on plans’ assets | 159,949 | (33,063) | ||
Employer contribution | 38,312 | 64,388 | ||
Benefits paid | (63,176) | (63,542) | ||
Settlements | 0 | 0 | ||
Foreign currency translation effect | 0 | 0 | ||
Fair value of plans’ assets at end of year | 1,047,214 | 912,129 | 944,346 | |
Funded status | (59,663) | (92,622) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | (300) | (300) | ||
Postretirement benefits other than pensions | (59,363) | (92,322) | ||
International | Pension Plan | ||||
Change in benefit obligation: | ||||
Projected Benefit Obligation at beginning of year | 404,629 | 461,426 | ||
Service cost - employer | 0 | 0 | ||
Interest cost | 11,061 | 11,161 | 11,525 | |
Actuarial (gain)/loss | 48,721 | (28,064) | ||
Benefits paid | (14,542) | (17,889) | ||
Plan Amendment | $ 3,704 | 0 | ||
Settlements | $ 0 | (18,196) | ||
Foreign currency translation effect | 15,013 | (25,709) | ||
Projected Benefit Obligation at end of year | 446,686 | 404,629 | 461,426 | |
Change in plans’ assets: | ||||
Fair value of plans’ assets at beginning of year | 349,001 | 385,879 | ||
Actual return on plans’ assets | 38,139 | (8,591) | ||
Employer contribution | 10,587 | 10,725 | ||
Benefits paid | (14,542) | (17,889) | ||
Settlements | (18,196) | 0 | ||
Foreign currency translation effect | 14,353 | (21,123) | ||
Fair value of plans’ assets at end of year | 379,342 | 349,001 | $ 385,879 | |
Funded status | (67,344) | (55,628) | ||
Amounts recognized in the balance sheets: | ||||
Accrued liabilities | 0 | 0 | ||
Postretirement benefits other than pensions | $ (67,344) | $ (55,628) |
Pensions and Postretirement B_5
Pensions and Postretirement Benefits Other than Pensions - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.78% | 3.70% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.12% | 4.05% |
United States | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.09% | 4.05% |
United States | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.12% | 4.05% |
Foreign Plan | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.99% | 2.80% |
Foreign Plan | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Pensions and Postretirement B_6
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,906 | $ 10,363 | |
Interest cost | 50,560 | 48,001 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1,573 | 1,948 | $ 2,003 |
Interest cost | 9,887 | 9,251 | 10,063 |
Amortization of prior service credit | (409) | (541) | (566) |
Net periodic benefit cost | 11,051 | 10,658 | 11,500 |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8,906 | 10,363 | 9,860 |
Interest cost | 39,499 | 36,840 | 39,251 |
Expected return on plan assets | (48,034) | (54,035) | (54,058) |
Amortization of actuarial loss | 32,432 | 32,939 | 37,122 |
Amortization of prior service credit | 703 | 0 | 0 |
Net periodic benefit cost | 33,506 | 26,107 | 32,175 |
International | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | |
Interest cost | 11,061 | 11,161 | 11,525 |
Expected return on plan assets | (11,554) | (12,073) | (11,262) |
Amortization of actuarial loss | 3,411 | 4,264 | 5,448 |
Amortization of prior service credit | 309 | 0 | 0 |
Effect of settlements | 4,262 | ||
Net periodic benefit cost | $ 7,489 | $ 3,352 | $ 5,711 |
Pensions and Postretirement B_7
Pensions and Postretirement Benefits Other than Pensions - Weighted Average Assumptions Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.70% | 3.20% | 3.54% |
Expected return on plan assets | 5.00% | 5.34% | 5.57% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.05% | 3.50% | 3.95% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.05% | 3.50% | 3.90% |
Expected return on plan assets | 5.66% | 6.25% | 6.50% |
United States | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.05% | 3.50% | 3.95% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.80% | 2.50% | 2.50% |
Expected return on plan assets | 3.34% | 3.19% | 3.29% |
Foreign Plan | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 0.00% | 0.00% | 0.00% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Pensions and Postretirement B_8
Pensions and Postretirement Benefits Other than Pensions - Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Pension Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
All Plans, Less Spectrum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation exceeds plan assets, Projected benefit obligation | $ 1,052,824 | $ 1,409,380 |
Accumulated benefit obligation exceeds plan assets, Projected benefit obligation | 1,051,298 | 1,406,263 |
Projected benefit obligation exceeds plan assets, Fair value of plan assets | 909,890 | 1,261,130 |
Spectrum Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation exceeds plan assets, Projected benefit obligation | 500,739 | 0 |
Accumulated benefit obligation exceeds plan assets, Projected benefit obligation | 500,739 | 0 |
Projected benefit obligation exceeds plan assets, Fair value of plan assets | $ 516,666 | $ 0 |
Pensions and Postretirement B_9
Pensions and Postretirement Benefits Other than Pensions - One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Retirement Benefits [Abstract] | |
Service and interest cost components, Increase | $ 16 |
Postretirement benefit obligation, Increase | 514 |
Service and interest cost components, Decrease | (17) |
Postretirement benefit obligation, Decrease | $ (548) |
Pensions and Postretirement _10
Pensions and Postretirement Benefits Other Than Pensions - Weighted Average Asset Allocations for Domestic and U.K. Pension Plans' Assets (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 100.00% | 100.00% |
United States | Fixed Income Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 65.00% | 68.00% |
United States | Equity Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 30.00% | 26.00% |
United States | Other Investment Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 3.00% | 3.00% |
United States | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 2.00% | 3.00% |
Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 100.00% | 100.00% |
Foreign Plan | Fixed Income Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 68.00% | 70.00% |
Foreign Plan | Equity Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 19.00% | 17.00% |
Foreign Plan | Other Investment Collective Trust Funds and Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 12.00% | 12.00% |
Foreign Plan | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocations (as a percent) | 1.00% | 1.00% |
Pensions and Postretirement _11
Pensions and Postretirement Benefits Other than Pensions - Assets of U.S and U.K Plans Using Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | $ 1,047,214 | $ 912,129 | ||
United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 377,536 | 347,108 | ||
Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 23,867 | 23,896 | ||
Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 333,497 | 304,754 | ||
Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 22,410 | 10,514 | ||
Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 13,859 | 13,416 | ||
Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 30,180 | 28,938 | $ 38,070 | $ 33,796 |
Fair Value Measured at Net Asset Value Per Share | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,000,937 | 877,719 | ||
Fair Value Measured at Net Asset Value Per Share | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 23,867 | 23,896 | ||
Cash and cash equivalents | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,802 | 1,644 | ||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 23,867 | 23,896 | ||
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 1,802 | 1,644 | ||
Cash and cash equivalents | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Fair Value Measured at Net Asset Value Per Share | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Fair Value Measured at Net Asset Value Per Share | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 309,794 | 238,795 | ||
Collective Trust Funds - Equity | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Equity | Fair Value Measured at Net Asset Value Per Share | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 309,794 | 238,795 | ||
Collective Trust Funds - Fixed income | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 682,279 | 622,576 | ||
Collective Trust Funds - Fixed income | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Fixed income | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 22,410 | 10,514 | ||
Collective Trust Funds - Fixed income | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Fixed income | Fair Value Measured at Net Asset Value Per Share | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 659,869 | 612,062 | ||
Collective Trust Funds - Real Estate | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 31,274 | 26,862 | ||
Collective Trust Funds - Real Estate | Quoted Prices in Active Markets for Identical Assets Level (1) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Real Estate | Significant Other Observable Inputs Level (2) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Real Estate | Significant Unobservable Inputs Level (3) | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Collective Trust Funds - Real Estate | Fair Value Measured at Net Asset Value Per Share | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 31,274 | 26,862 | ||
Equity securities | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 72,503 | 58,848 | ||
Equity securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 72,503 | 58,848 | ||
Equity securities | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Equity securities | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Equity securities | Fair Value Measured at Net Asset Value Per Share | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Fixed income securities | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 259,192 | 244,262 | ||
Fixed income securities | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 259,192 | 244,262 | ||
Fixed income securities | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Fixed income securities | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Fixed income securities | Fair Value Measured at Net Asset Value Per Share | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Other investments | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 44,039 | 42,354 | ||
Other investments | Quoted Prices in Active Markets for Identical Assets Level (1) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 0 | 0 | ||
Other investments | Significant Other Observable Inputs Level (2) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 13,859 | 13,416 | ||
Other investments | Significant Unobservable Inputs Level (3) | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | 30,180 | 28,938 | ||
Other investments | Fair Value Measured at Net Asset Value Per Share | United Kingdom plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair market value of plan assets | $ 0 | $ 0 |
Pensions and Postretirement _12
Pensions and Postretirement Benefits Other than Pensions - Details of Activity in Investment in European Infrastructure and Property Funds (Detail) - United Kingdom plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of plans’ assets at beginning of year | $ 347,108 | ||
Fair value of plans’ assets at end of year | 377,536 | $ 347,108 | |
Significant Unobservable Inputs Level (3) | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of plans’ assets at beginning of year | 28,938 | 38,070 | $ 33,796 |
Transfer into level 3 | 0 | 0 | 0 |
Disbursements | 0 | 0 | 0 |
Change in fair value | 97 | (7,294) | 969 |
Foreign currency translation effect | 1,145 | (1,838) | 3,305 |
Fair value of plans’ assets at end of year | $ 30,180 | $ 28,938 | $ 38,070 |
Pensions and Postretirement _13
Pensions and Postretirement Benefits Other than Pensions - Estimated Benefit Payments for Domestic and Foreign Pension Plans and Other Postretirement Benefit Plans (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 86,944 |
2021 | 86,886 |
2022 | 88,845 |
2023 | 88,431 |
2024 | 89,937 |
2025 through 2029 | 448,531 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 14,334 |
2021 | 14,557 |
2022 | 14,697 |
2023 | 14,748 |
2024 | 14,852 |
2025 through 2029 | $ 72,251 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Lease Commitments - Supplementa
Lease Commitments - Supplemental Balance Sheet (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets, net | $ 80,752 |
Finance lease assets | 4,577 |
Total leased assets | 85,329 |
Operating lease, liability, current | 27,663 |
Finance lease, liability, current | 265 |
Operating lease, liability, noncurrent | 55,371 |
Finance lease, liability, noncurrent | 935 |
Total lease liabilities | $ 84,234 |
Lease Commitments - Lease Cost
Lease Commitments - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost (a) | $ 41,953 |
Amortization of finance lease assets | 352 |
Interest on finance lease liabilities | 32 |
Total finance lease cost | 384 |
Net lease cost | 42,337 |
Short-term lease, cost | 7,328 |
Variable lease, cost | 3,480 |
Cost of Sales | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost (a) | 36,321 |
Selling, General and Administrative Expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost (a) | $ 5,632 |
Lease Commitments - Maturities
Lease Commitments - Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 31,397 |
2021 | 18,020 |
2022 | 13,691 |
2023 | 9,693 |
2024 | 6,236 |
After 2024 | 17,793 |
Total lease payments | 96,830 |
Less: Interest | (13,796) |
Present value of lease liabilities | 83,034 |
Finance Leases | |
2020 | 322 |
2021 | 323 |
2022 | 311 |
2023 | 275 |
2024 | 127 |
After 2024 | 0 |
Total lease payments | 1,358 |
Less: Interest | (158) |
Present value of lease liabilities | 1,200 |
Lease Liabilities, Payments Due [Abstract] | |
2020 | 31,719 |
2021 | 18,343 |
2022 | 14,002 |
2023 | 9,968 |
2024 | 6,363 |
After 2024 | 17,793 |
Total lease payments | 98,188 |
Less: Interest | (13,954) |
Present value of lease liabilities | $ 84,234 |
Lease Commitments - Weighted Av
Lease Commitments - Weighted Average (Details) | Dec. 31, 2019 |
Weighted Average Remaining Lease Term [Abstract] | |
Operating leases | 4 years 10 months 24 days |
Finance Leases | 4 years 3 months 3 days |
Leases, Weighted Average Discount Rate [Abstract] | |
Operating leases | 5.76% |
Finance Leases | 5.79% |
Lease Commitments - Supplemen_2
Lease Commitments - Supplemental Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash outflows from operating leases | $ 33,774 |
Operating cash outflows from finance leases | 332 |
Financing cash outflows from finance leases | (605) |
Leased assets obtained in exchange for new finance lease liabilities | 43 |
Leased assets obtained in exchange for new finance lease liabilities | $ 342 |
Other Long-Term Liabilities - C
Other Long-Term Liabilities - Components of Other Long Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Product liability | $ 91,853 | $ 81,574 |
Long-term income taxes payable | 20,434 | 20,145 |
Stock-based liabilities | 14,778 | 14,451 |
Other | 22,000 | 19,560 |
Other long-term liabilities | $ 149,065 | $ 135,730 |
Share Repurchase Program - Sche
Share Repurchase Program - Schedule of Share Repurchase Program (Details) - USD ($) | 12 Months Ended | 35 Months Ended | 65 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2019 | Feb. 16, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock repurchased (in shares) | 0 | 1,018,089 | 15,768,845 | |||
Average repurchase price per share (in dollars per share) | $ 34.11 | |||||
Payments for repurchase of common stock | $ 0 | $ 30,183,000 | $ 90,868,000 | |||
Share Repurchase Program February 16, 2017 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase, amount authorized (up to) | $ 300,000,000 | |||||
Stock repurchase amount (excluding commissions) | $ 106,877,000 | |||||
Common stock repurchased (in shares) | 0 | 1,018,089 | ||||
Average repurchase price per share (in dollars per share) | $ 0 | $ 29.65 | ||||
Payments for repurchase of common stock | $ 0 | $ 30,183,000 |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - $ / shares | 12 Months Ended | 65 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common stock repurchased (in shares) | 0 | 1,018,089 | 15,768,845 |
Average repurchase price per share (in dollars per share) | $ 34.11 | ||
Common shares reserved for compensation plans and contributions (in shares) | 2,138,910 | 2,138,910 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | $ 4,362 | $ 3,868 | $ 4,009 |
Stock options | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | 0 | 0 | 14 |
Restricted stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | 2,836 | 3,196 | 3,302 |
Performance stock units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | $ 1,526 | $ 672 | $ 693 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Feb. 28, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted (in shares) | 0 | ||||
Weighted average remaining contractual life of options outstanding | 3 years 1 month 6 days | ||||
Shares available for future issuance under equity compensation plans | 2,138,910 | ||||
Excess tax benefit from stock-based compensation | $ 1,877 | ||||
Long Term Incentive Plan 2014 - 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted (in shares) | 380,064 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Stock options | Vesting Period One | Long Term Incentive Plan 2014 - 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vested (as a percent) | 33.33% | ||||
Stock options | Vesting Period Two | Long Term Incentive Plan 2014 - 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vested (as a percent) | 33.33% | ||||
Stock options | Vesting Period Three | Long Term Incentive Plan 2014 - 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares vested (as a percent) | 33.33% | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested restricted stock (in shares) | 1,483 | 1,460 | |||
Unvested compensation cost | $ 2,458 | ||||
Unvested compensation cost period of recognition | 25 months | ||||
Restricted stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Performance stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested restricted stock (in shares) | 22,529 | ||||
Unvested compensation cost | $ 763 | ||||
Unvested compensation cost period of recognition | 19 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Information for the Plans (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 268,802 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (24,774) | ||
Expired (in shares) | 0 | ||
Canceled (in shares) | (5,280) | ||
Outstanding, Ending Balance (in shares) | 238,748 | 268,802 | |
Exercisable, Ending Balance (in shares) | 238,748 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Outstanding, Beginning Balance (in dollars per share) | $ 22.27 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 12.50 | ||
Expired (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 21.72 | ||
Weighted Average Exercise Price, Outstanding, Ending Balance (in dollars per share) | 23.30 | $ 22.27 | |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 23.30 | ||
Aggregate Intrinsic Value, Outstanding | $ 2,157 | ||
Aggregate Intrinsic Value, Exercisable | $ 2,157 | ||
Granted (in dollars per share) | $ 0 | $ 0 | $ 0 |
Aggregate intrinsic value of options exercised | $ 425 | $ 298 | $ 4,194 |
Weighted average grant-date fair value of shares vested | $ 0 | $ 0 | $ 1,400 |
Stock-Based Compensation - Segr
Stock-Based Compensation - Segregated Disclosure of Options Outstanding (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 238,748 | 268,802 |
Weighted average exercise price (in dollars per share) | $ 23.30 | $ 22.27 |
Remaining contractual life | 3 years 1 month 6 days | |
Options exercisable (in shares) | 238,748 | |
Weighted average exercise price (in dollars per share) | $ 23.30 | |
Option exercise price, minimum (in dollars per share) | 15.63 | |
Option exercise price, maximum (in dollars per share) | $ 15.63 | |
Less than or equal to $15.63 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 22,965 | |
Weighted average exercise price (in dollars per share) | $ 15.63 | |
Remaining contractual life | 2 years 1 month 6 days | |
Options exercisable (in shares) | 22,965 | |
Weighted average exercise price (in dollars per share) | $ 15.63 | |
Greater than $15.63 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding (in shares) | 215,783 | |
Weighted average exercise price (in dollars per share) | $ 24.11 | |
Remaining contractual life | 3 years 2 months 12 days | |
Options exercisable (in shares) | 215,783 | |
Weighted average exercise price (in dollars per share) | $ 24.11 |
Stock-Based Compensation - Deta
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance (in shares) | 240,991 | ||
Granted (in shares) | 120,001 | ||
Vested (in shares) | (91,237) | ||
Canceled (in shares) | (42,667) | ||
Accrued dividend equivalents (in shares) | 3,874 | ||
Ending Balance (in shares) | 230,962 | 240,991 | |
Vested but not released (in shares) | 1,483 | 1,460 | |
Outstanding (in shares) | 232,445 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance (in dollars per share) | $ 35.69 | ||
Granted (in dollars per share) | 32.52 | $ 34.53 | $ 38.33 |
Vested (in dollars per share) | 36.56 | ||
Canceled (in dollars per share) | 36.90 | ||
Accrued dividend equivalents (in dollars per share) | 34.07 | ||
Ending Balance (in dollars per share) | 33.49 | 35.69 | |
Vested but not released (in dollars per share) | 18.04 | ||
Outstanding (in dollars per share) | $ 33.39 | ||
Aggregate intrinsic value of shares outstanding | $ 7,761 | ||
Weighted-average remaining contractual term of shares outstanding | 21 months | ||
Granted (in dollars per share) | $ 32.52 | $ 34.53 | $ 38.33 |
Weighted average grant-date fair value of shares vested | $ 3,336 | $ 3,000 | $ 5,627 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Units Earned under Long-Term Incentive Plan (Detail) - Performance stock units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance (in shares) | 32,071 | ||
Earned (in shares) | 69,938 | ||
Vested (in shares) | (30,705) | ||
Canceled (in shares) | (12,472) | ||
Accrued dividend equivalents (in shares) | 503 | ||
Ending Balance (in shares) | 59,335 | 32,071 | |
Vested but not released (in shares) | 22,529 | ||
Outstanding (in shares) | 81,864 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance (in dollars per share) | $ 27.79 | ||
Earned (in dollars per share) | 33.27 | $ 36.08 | $ 38.23 |
Vested (in dollars per share) | 34.93 | ||
Canceled (in dollars per share) | 34.35 | ||
Accrued dividend equivalents (in dollars per share) | 36.13 | ||
Ending Balance (in dollars per share) | 33.79 | 27.79 | |
Vested but not released (in dollars per share) | 34.31 | ||
Outstanding (in dollars per share) | $ 33.93 | ||
Aggregate intrinsic value of shares outstanding | $ 2,778 | ||
Weighted-average remaining contractual term of shares outstanding | 12 months | ||
Earned (in dollars per share) | $ 33.27 | $ 36.08 | $ 38.23 |
Weighted average grant-date fair value of shares vested | $ 1,073 | $ 1,821 | $ 4,213 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component - Cumulative Other Comprehensive Loss in Accompanying Consolidated Statements of Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,172,043 | ||
Other comprehensive (loss) income before reclassifications | (11,542) | $ (4,240) | |
Foreign currency translation effect | (2,668) | (264) | $ (7,855) |
Income tax effect | 804 | (1,455) | |
Amount reclassified from accumulated other comprehensive income (loss) | (1,141) | (2,412) | |
Pension settlement charges | 4,262 | 0 | 0 |
Prior service effect of plan amendment | (3,069) | (3,704) | 0 |
Income tax effect | (9,083) | (7,698) | |
Other comprehensive (loss) income | 14,009 | 16,889 | |
Ending balance | 1,264,625 | 1,172,043 | |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (461,589) | (478,478) | |
Ending balance | (447,580) | (461,589) | (478,478) |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (62,133) | (39,940) | |
Other comprehensive (loss) income before reclassifications | 3,947 | (22,193) | |
Other comprehensive (loss) income | 3,947 | (22,193) | |
Ending balance | (58,186) | (62,133) | (39,940) |
Derivative Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 2,150 | 349 | |
Other comprehensive (loss) income before reclassifications | (2,612) | 5,040 | |
Income tax effect | 804 | (1,213) | |
Amount reclassified from accumulated other comprehensive income (loss) | (1,141) | (2,412) | |
Income tax effect | 250 | 386 | |
Other comprehensive (loss) income | (2,699) | 1,801 | |
Ending balance | (549) | 2,150 | 349 |
Post- retirement Benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (401,606) | (438,887) | |
Other comprehensive (loss) income before reclassifications | (12,877) | 12,913 | |
Foreign currency translation effect | (2,668) | (264) | |
Income tax effect | (242) | ||
Pension settlement charges | 4,262 | ||
Prior service effect of plan amendment | (3,069) | (3,704) | |
Income tax effect | (9,333) | (8,084) | |
Other comprehensive (loss) income | 12,761 | 37,281 | |
Ending balance | (388,845) | (401,606) | $ (438,887) |
Net Prior Service | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amount reclassified from accumulated other comprehensive income (loss) | 603 | (541) | |
Actuarial Loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Amount reclassified from accumulated other comprehensive income (loss) | $ 35,843 | $ 37,203 |
Comprehensive Income (Loss) A_3
Comprehensive Income (Loss) Attributable to Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Net income attributable to noncontrolling shareholders' interests | $ 1,913 | $ 3,977 | $ 1,345 |
Other comprehensive income (loss): | |||
Currency translation adjustments | 795 | (2,237) | 3,375 |
Comprehensive income attributable to noncontrolling shareholders’ interests | $ 2,708 | $ 1,740 | $ 4,720 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) Tire in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Tire | Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 30 | |
Maximum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 35 | |
Estimated number of Company produced tires of different specifications | Tire | 300 | |
Product liability expenses, minimum | $ 0 | |
Product liability expenses, maximum | 33,000,000 | |
Product liability reserve balance | 117,219,000 | $ 112,124,000 |
Increase in product liability reserve due to self insured incidents | 37,279,000 | |
Settlements and changes in amount of reserves estimated liability increase (decrease) | (8,272,000) | |
Company paid to resolve cases and claims | 24,020,000 | |
Current portion product liability reserve balance | $ 25,366,000 | $ 30,550,000 |
Workforce subject to collective bargaining units (as a percent) | 38.00% |
Contingent Liabilities - Produc
Contingent Liabilities - Product Liabilities Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product liability expense | $ 40,309 | $ 17,692 | $ 25,970 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | Jan. 17, 2019Employee | Dec. 31, 2019StoreSegment | Jan. 24, 2020 |
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 4 | ||
Noncontrolling Interest [Line Items] | |||
Number of stores | Store | 3 | ||
Number of segments combined | Segment | 2 | ||
Restructuring, expected number of positions eliminated | Employee | 300 | ||
Restructuring, remaining number of positions after elimination | Employee | 400 | ||
Subsequent Event | COOCSA | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest, ownership percentage | 41.57% |
Business Segments - Segment Fin
Business Segments - Segment Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 750,212 | $ 704,134 | $ 679,130 | $ 619,163 | $ 770,487 | $ 737,671 | $ 698,408 | $ 601,496 | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Operating profit (loss) | 63,583 | 52,769 | 31,671 | 26,431 | 24,826 | 81,201 | 32,763 | 26,454 | 174,455 | 165,245 | 309,247 |
Interest expense | (7,590) | (7,476) | (7,810) | (8,314) | (8,142) | (7,930) | (8,417) | (7,691) | (31,189) | (32,181) | (32,048) |
Interest income | 2,571 | 1,507 | 1,999 | 3,380 | 3,514 | 2,399 | 1,988 | 2,315 | 9,458 | 10,216 | 7,362 |
Other pension and postretirement benefit expense | (13,355) | (9,562) | (9,288) | (9,362) | (6,921) | (6,932) | (6,967) | (6,986) | (41,567) | (27,806) | (37,523) |
Other non-operating expense | (892) | (509) | (1,463) | 1,380 | (1,288) | 2,922 | (1,391) | (1,658) | (1,485) | (1,416) | (3,113) |
Income before income taxes | 44,317 | 36,729 | 15,109 | 13,515 | 11,989 | 71,660 | 17,976 | 12,434 | 109,672 | 114,058 | 243,925 |
Depreciation and amortization | 148,054 | 147,161 | 140,228 | ||||||||
Assets | 2,802,338 | 2,634,205 | 2,802,338 | 2,634,205 | 2,707,925 | ||||||
Expenditures for long-lived assets | 202,722 | 193,299 | 197,186 | ||||||||
Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,315,497 | 2,330,457 | 2,376,808 | ||||||||
International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 437,143 | 477,621 | 477,848 | ||||||||
Operating Segments | Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 654,526 | 601,957 | 582,307 | 514,936 | 664,138 | 628,704 | 584,412 | 485,392 | 2,353,726 | 2,362,646 | 2,416,778 |
Operating profit (loss) | 84,209 | 67,941 | 46,814 | 38,789 | 70,432 | 87,353 | 40,480 | 31,236 | 237,753 | 229,500 | 355,059 |
Depreciation and amortization | 44,551 | 57,265 | 91,324 | ||||||||
Assets | 1,543,779 | 1,513,534 | 1,543,779 | 1,513,534 | 1,552,855 | ||||||
Expenditures for long-lived assets | 111,819 | 112,444 | 109,175 | ||||||||
Operating Segments | International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 119,434 | 132,270 | 138,514 | 143,785 | 149,492 | 162,401 | 167,839 | 161,244 | 534,003 | 640,976 | 618,869 |
Operating profit (loss) | (5,924) | (4,831) | (1,296) | (1,339) | (33,124) | 5,994 | 5,652 | 7,434 | (13,390) | (14,044) | 15,168 |
Depreciation and amortization | 31,654 | 34,564 | 33,303 | ||||||||
Assets | 739,076 | 662,226 | 739,076 | 662,226 | 700,690 | ||||||
Expenditures for long-lived assets | 62,334 | 71,667 | 89,008 | ||||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (23,748) | (30,093) | (41,691) | (39,558) | (43,143) | (53,434) | (53,843) | (45,140) | (135,090) | (195,560) | (180,991) |
Operating profit (loss) | 484 | 710 | (569) | (566) | 894 | 372 | 336 | (250) | 60 | 1,353 | (1,827) |
Intercompany | Americas Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 38,229 | 32,189 | (39,970) | ||||||||
Intercompany | International Tire | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 96,860 | 163,355 | (141,021) | ||||||||
Corporation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating profit (loss) | (15,186) | $ (11,051) | $ (13,278) | $ (10,453) | (13,376) | $ (12,518) | $ (13,705) | $ (11,966) | (49,968) | (51,564) | (59,153) |
Depreciation and amortization | 71,849 | 55,332 | 15,601 | ||||||||
Assets | $ 519,483 | $ 458,445 | 519,483 | 458,445 | 454,380 | ||||||
Expenditures for long-lived assets | $ 28,569 | $ 9,188 | $ (997) |
Business Segments - Geographic
Business Segments - Geographic Information for Revenues, Based on Country of Origin, and Long-Lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 750,212 | $ 704,134 | $ 679,130 | $ 619,163 | $ 770,487 | $ 737,671 | $ 698,408 | $ 601,496 | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Long-lived assets | 1,127,994 | 1,001,921 | 1,127,994 | 1,001,921 | 966,747 | ||||||
Operating Segments | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 2,175,599 | 2,196,424 | 2,240,882 | ||||||||
Long-lived assets | 683,769 | 595,768 | 683,769 | 595,768 | 568,215 | ||||||
Operating Segments | PRC | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Long-lived assets | 239,889 | 232,339 | 239,889 | 232,339 | 218,044 | ||||||
Operating Segments | Rest of world | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 577,040 | 611,638 | 613,774 | ||||||||
Long-lived assets | $ 204,336 | $ 173,814 | $ 204,336 | $ 173,814 | $ 180,488 |
Business Segments - Net Sales a
Business Segments - Net Sales and Percentage of Consolidated Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Net sales | $ 750,212 | $ 704,134 | $ 679,130 | $ 619,163 | $ 770,487 | $ 737,671 | $ 698,408 | $ 601,496 | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Customer Concentration Risk | American Tire Distributors, Inc. | Net Sales | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | $ 311,559 | $ 310,070 | $ 252,395 | ||||||||
Consolidated Net Sales | 11.00% | 11.00% | 9.00% | ||||||||
Customer Concentration Risk | TBC/Treadways | Net Sales | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Net sales | $ 214,138 | $ 231,896 | $ 304,840 | ||||||||
Consolidated Net Sales | 8.00% | 8.00% | 11.00% |
Subsequent Events (Details)
Subsequent Events (Details) - COOCSA - Subsequent Event - USD ($) $ in Thousands | Jan. 25, 2020 | Jan. 24, 2020 |
Subsequent Event [Line Items] | ||
Noncontrolling interest, ownership percentage | 41.57% | |
Equity method investment, total cash price | $ 54,500 | |
Shareholder | ||
Subsequent Event [Line Items] | ||
Equity method investment, retrenchment payments | $ 15,984 |
Selected Quarterly Data (Detail
Selected Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 750,212 | $ 704,134 | $ 679,130 | $ 619,163 | $ 770,487 | $ 737,671 | $ 698,408 | $ 601,496 | $ 2,752,639 | $ 2,808,062 | $ 2,854,656 |
Gross profit | 131,524 | 114,366 | 99,141 | 88,259 | 124,638 | 139,947 | 94,223 | 84,485 | 433,290 | 443,293 | 551,395 |
Net income (loss) attributable to Cooper Tire & Rubber Company | $ 51,259 | $ 29,344 | $ 8,821 | $ 6,979 | $ (419) | $ 53,713 | $ 15,008 | $ 8,285 | $ 96,404 | $ 76,586 | $ 95,400 |
Basic earnings (loss) per share attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ 1.02 | $ 0.58 | $ 0.18 | $ 0.14 | $ (0.01) | $ 1.07 | $ 0.30 | $ 0.16 | $ 1.92 | $ 1.52 | $ 1.83 |
Diluted earnings (loss) per share attributable to Cooper Tire & Rubber Company common stockholders (in dollars per share) | $ 1.02 | $ 0.58 | $ 0.18 | $ 0.14 | $ (0.01) | $ 1.07 | $ 0.30 | $ 0.16 | $ 1.91 | $ 1.51 | $ 1.81 |
Consolidated operating profit | $ 63,583 | $ 52,769 | $ 31,671 | $ 26,431 | $ 24,826 | $ 81,201 | $ 32,763 | $ 26,454 | $ 174,455 | $ 165,245 | $ 309,247 |
Interest expense | (7,590) | (7,476) | (7,810) | (8,314) | (8,142) | (7,930) | (8,417) | (7,691) | (31,189) | (32,181) | (32,048) |
Interest income | 2,571 | 1,507 | 1,999 | 3,380 | 3,514 | 2,399 | 1,988 | 2,315 | 9,458 | 10,216 | 7,362 |
Other pension and postretirement benefit expense | (13,355) | (9,562) | (9,288) | (9,362) | (6,921) | (6,932) | (6,967) | (6,986) | (41,567) | (27,806) | (37,523) |
Other non-operating expense | (892) | (509) | (1,463) | 1,380 | (1,288) | 2,922 | (1,391) | (1,658) | (1,485) | (1,416) | (3,113) |
Income before income taxes | 44,317 | 36,729 | 15,109 | 13,515 | 11,989 | 71,660 | 17,976 | 12,434 | 109,672 | 114,058 | 243,925 |
Net income | 52,871 | 29,008 | 9,258 | 7,178 | 439 | 55,433 | 15,709 | 8,983 | 98,317 | 80,563 | 96,745 |
Unallocated corporate charges | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Consolidated operating profit | (15,186) | (11,051) | (13,278) | (10,453) | (13,376) | (12,518) | (13,705) | (11,966) | (49,968) | (51,564) | (59,153) |
Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | (23,748) | (30,093) | (41,691) | (39,558) | (43,143) | (53,434) | (53,843) | (45,140) | (135,090) | (195,560) | (180,991) |
Consolidated operating profit | 484 | 710 | (569) | (566) | 894 | 372 | 336 | (250) | 60 | 1,353 | (1,827) |
Americas Tire | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 2,315,497 | 2,330,457 | 2,376,808 | ||||||||
Americas Tire | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 654,526 | 601,957 | 582,307 | 514,936 | 664,138 | 628,704 | 584,412 | 485,392 | 2,353,726 | 2,362,646 | 2,416,778 |
Consolidated operating profit | 84,209 | 67,941 | 46,814 | 38,789 | 70,432 | 87,353 | 40,480 | 31,236 | 237,753 | 229,500 | 355,059 |
Americas Tire | Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 38,229 | 32,189 | (39,970) | ||||||||
International Tire | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 437,143 | 477,621 | 477,848 | ||||||||
International Tire | Operating Segments | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | 119,434 | 132,270 | 138,514 | 143,785 | 149,492 | 162,401 | 167,839 | 161,244 | 534,003 | 640,976 | 618,869 |
Consolidated operating profit | $ (5,924) | $ (4,831) | $ (1,296) | $ (1,339) | $ (33,124) | $ 5,994 | $ 5,652 | $ 7,434 | (13,390) | (14,044) | 15,168 |
International Tire | Intercompany | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Net sales | $ 96,860 | $ 163,355 | $ (141,021) |
Selected Quarterly Data - Addit
Selected Quarterly Data - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit | $ (11,355) | $ (33,495) | $ (147,180) | ||
Goodwill impairment charge | $ 33,827 | $ 0 | $ 33,827 | $ 0 | |
Foreign | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit | $ 18,606 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 5,836 | $ 7,570 | $ 7,290 |
Charged to Income | 3,401 | 2,019 | 1,799 |
Charged to Equity | 0 | 0 | 0 |
Acquisition of Business | 0 | 0 | 0 |
Deductions | 1,128 | 3,753 | 1,519 |
Balance at End of Year | 8,109 | 5,836 | 7,570 |
Tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 22,620 | 30,102 | 20,228 |
Charged to Income | 13,178 | 456 | 20,536 |
Charged to Equity | (6,337) | 0 | (2,828) |
Acquisition of Business | 0 | 0 | (1,057) |
Deductions | 2,191 | 7,938 | 6,777 |
Balance at End of Year | $ 27,270 | $ 22,620 | $ 30,102 |
Uncategorized Items - a20191231
Label | Element | Value |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | $ 2,025,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 1,422,000 |
Restricted Cash, Noncurrent | us-gaap_RestrictedCashNoncurrent | 1,488,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 19,200,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | 20,305,000 |
Restricted Cash, Current | us-gaap_RestrictedCashCurrent | $ 19,967,000 |