Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CTB | |
Entity Registrant Name | COOPER TIRE & RUBBER CO | |
Entity Central Index Key | 24,491 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 56,046,353 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 782,368 | $ 920,082 | $ 2,197,355 | $ 2,605,225 |
Cost of products sold | 628,414 | 762,878 | 1,751,754 | 2,152,810 |
Gross profit | 153,954 | 157,204 | 445,601 | 452,415 |
Selling, general and administrative expense | 71,787 | 67,829 | 193,652 | 205,540 |
Operating profit | 82,167 | 89,375 | 251,949 | 246,875 |
Interest expense | (5,889) | (7,050) | (18,485) | (20,960) |
Interest income | 533 | 305 | 1,609 | 1,088 |
Other non-operating income (expense) | 1,362 | (1,253) | 3,034 | (787) |
Income before income taxes | 78,173 | 81,377 | 238,107 | 226,216 |
Provision for income taxes | 24,524 | 26,740 | 81,818 | 75,093 |
Net income | 53,649 | 54,637 | 156,289 | 151,123 |
Net income attributable to noncontrolling shareholders' interests | 473 | 6,938 | 2,769 | 19,808 |
Net income attributable to Cooper Tire & Rubber Company | $ 53,176 | $ 47,699 | $ 153,520 | $ 131,315 |
Basic earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.94 | $ 0.79 | $ 2.68 | $ 2.10 |
Diluted earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | 0.93 | 0.77 | 2.65 | 2.07 |
Dividends per share | $ 0.105 | $ 0.105 | $ 0.315 | $ 0.315 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 53,649 | $ 54,637 | $ 156,289 | $ 151,123 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (22,506) | (13,537) | (26,072) | (12,730) |
Financial instruments | ||||
Change in the fair value of derivatives and marketable securities | 1,360 | 4,923 | (684) | 1,934 |
Income tax (provision) benefit on derivative instruments | (505) | (1,942) | 327 | (856) |
Financial instruments, net of tax | 855 | 2,981 | (357) | 1,078 |
Postretirement benefit plans | ||||
Amortization of actuarial loss | 11,708 | 9,147 | 35,066 | 27,438 |
Amortization of prior service credit | (141) | (141) | (425) | (424) |
Income tax provision on postretirement benefit plans | (4,108) | (3,075) | (12,313) | (9,267) |
Foreign currency translation effect | 3,934 | 5,435 | 2,943 | 2,193 |
Postretirement benefit plans, net of tax | 11,393 | 11,366 | 25,271 | 19,940 |
Other comprehensive income (loss) | (10,258) | 810 | (1,158) | 8,288 |
Comprehensive income | 43,391 | 55,447 | 155,131 | 159,411 |
Less comprehensive income (loss) attributable to noncontrolling shareholders' interests | (1,904) | 5,857 | (1,261) | 17,754 |
Comprehensive income attributable to Cooper Tire & Rubber Company | $ 45,295 | $ 49,590 | $ 156,392 | $ 141,657 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 424,232 | $ 551,652 |
Notes receivable | 10,917 | 4,546 |
Accounts receivable, less allowances of $8,792 at 2014 and $8,404 at 2015 | 423,731 | 368,393 |
Inventories at lower of cost or market: | ||
Finished goods | 335,081 | 302,032 |
Work in process | 28,247 | 28,611 |
Raw materials and supplies | 101,520 | 91,208 |
Inventories at lower of cost or market | 464,848 | 421,851 |
Other current assets | 92,127 | 81,110 |
Total current assets | 1,415,855 | 1,427,552 |
Property, plant and equipment: | ||
Land and land improvements | 48,853 | 49,760 |
Buildings | 277,354 | 277,602 |
Machinery and equipment | 1,613,234 | 1,552,140 |
Molds, cores and rings | 227,101 | 218,827 |
Total property, plant and equipment | 2,166,542 | 2,098,329 |
Less accumulated depreciation | 1,397,237 | 1,358,126 |
Net property, plant and equipment | 769,305 | 740,203 |
Goodwill | 18,851 | 18,851 |
Intangibles, net of accumulated amortization of $49,010 at 2014 and $58,932 at 2015 | 134,047 | 137,784 |
Restricted cash | 791 | 653 |
Deferred income tax assets | 131,228 | 148,183 |
Other assets | 17,267 | 16,705 |
Total assets | 2,487,344 | 2,489,931 |
Current liabilities: | ||
Notes payable | 17,646 | 64,551 |
Accounts payable | 228,939 | 258,373 |
Accrued liabilities | 222,385 | 184,332 |
Income taxes payable | 12,036 | 1,994 |
Current portion of long-term debt | 600 | 2,115 |
Total current liabilities | 481,606 | 511,365 |
Long-term debt | 297,320 | 298,931 |
Postretirement benefits other than pensions | 263,885 | 264,305 |
Pension benefits | 329,938 | 373,360 |
Other long-term liabilities | 146,015 | 152,775 |
Deferred income tax liabilities | $ 3,856 | $ 4,934 |
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 | $ 87,850 | $ 87,850 |
Capital in excess of par value | 12,239 | 5,742 |
Retained earnings | 2,042,443 | 1,867,126 |
Cumulative other comprehensive loss | (527,730) | (530,602) |
Parent stockholders' equity before treasury stock | 1,614,802 | 1,430,116 |
Less: common shares in treasury at cost (29,698,893 at 2014 and 31,550,219 at 2015) | (688,369) | (586,324) |
Total parent stockholders' equity | 926,433 | 843,792 |
Noncontrolling shareholder interest in consolidated subsidiary | 38,291 | 40,469 |
Total equity | 964,724 | 884,261 |
Total liabilities and equity | $ 2,487,344 | $ 2,489,931 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 8,404 | $ 8,792 |
Accumulated amortization of intangibles | $ 58,932 | $ 49,010 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 87,850,292 | 87,850,292 |
Treasury stock, shares | 31,550,219 | 29,698,893 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net income | $ 156,289 | $ 151,123 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 90,588 | 105,319 |
Deferred income taxes | 2,205 | 2,717 |
Stock-based compensation | 11,710 | 5,845 |
Change in LIFO inventory reserve | (45,132) | (54,464) |
Amortization of unrecognized postretirement benefits | 34,641 | 27,014 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (66,628) | (187,541) |
Inventories | (5,762) | (35,518) |
Other current assets | (19,193) | (2,681) |
Accounts payable | (24,849) | 58,482 |
Accrued liabilities | 45,489 | 52,519 |
Other items | (46,116) | (24,825) |
Net cash provided by operating activities | 133,242 | 97,990 |
Investing activities: | ||
Additions to property, plant and equipment | (128,601) | (112,126) |
Proceeds from the sale of assets | 1,555 | 1,089 |
Net cash used in investing activities | (127,046) | (111,037) |
Financing activities: | ||
Net issuances of (payments on) short-term debt | (39,131) | 163,473 |
Additions to long-term debt | 15,634 | |
Repayments of long-term debt | (3,125) | (13,363) |
Payment of financing fees | (2,586) | |
Repurchase of common stock | (82,800) | (200,000) |
Payment of dividends to noncontrolling shareholder | (917) | (2,570) |
Payment of dividends to Cooper Tire & Rubber Company shareholders | (17,998) | (19,432) |
Issuance of common shares and excess tax benefits on stock options | 19,665 | 3,890 |
Net cash used in financing activities | (126,892) | (52,368) |
Effects of exchange rate changes on cash | (6,724) | 3,462 |
Changes in cash and cash equivalents | (127,420) | (61,953) |
Cash and cash equivalents at beginning of year | 551,652 | 397,731 |
Cash and cash equivalents at end of period | $ 424,232 | $ 335,778 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | 1. Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. There is a year-round demand for the Company’s passenger and truck replacement tires, but sales of light vehicle replacement tires are generally strongest during the third and fourth quarters of the year. Winter tires are sold principally during the months of June through November. Operating results for the nine-month period ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The Company consolidates into its financial statements the accounts of the Company, all wholly-owned subsidiaries, and any partially-owned subsidiary that the Company has the ability to control. Control generally equates to ownership percentage, whereby investments that are more than 50 percent owned are consolidated, investments in affiliates of 50 percent or less but greater than 20 percent are accounted for using the equity method, and investments in affiliates of 20 percent or less are accounted for using the cost method. The Company does not consolidate any entity for which it has a variable interest based solely on power to direct the activities and significant participation in the entity’s expected results that would not otherwise be consolidated based on control through voting interests. Further, the Company’s joint venture is a business established and maintained in connection with the Company’s operating strategy. All intercompany transactions and balances have been eliminated. Debt Facilities In the second quarter, the Company entered into a revolving credit facility with a consortium of banks that provides up to $400,000 based on available collateral, including a $110,000 letter of credit subfacility, and expires in May 2020. The Company may elect to increase the commitments under the revolving credit facility or incur one or more tranches of term loans in an aggregate amount of up to $100,000, subject to the satisfaction of certain conditions. The Company may elect to add certain foreign subsidiaries as additional borrowers under the Credit Agreement (the “Foreign Borrowers”), subject to the satisfaction of certain conditions. All of the indebtedness of the Company and any Foreign Borrowers under the revolving credit facility is guaranteed by certain of the Company’s domestic subsidiaries and secured by substantially all of the assets of the Company and the domestic guarantors, subject to certain limitations. All of the indebtedness of any Foreign Borrower will be guaranteed by the Company and the material foreign subsidiaries and direct parent companies of such Foreign Borrower, subject to certain exceptions, and secured by substantially all of the assets of the Company, the Foreign Borrowers and the guarantors. Borrowings under the revolving credit facility bear interest at a rate per annum equal to, at the Company’s option, either (i) the base rate plus the applicable margin or (ii) the relevant adjusted LIBOR for an interest period of one, two, three or six months (as selected by the Company), or such other period of time approved by the Lenders, plus the applicable margin. The revolving credit facility contains certain customary non-financial covenants. In addition, the revolving credit facility contains financial covenants that require the Company to maintain a net leverage ratio and interest coverage ratio in accordance with the limits set forth therein. In connection with entering into the revolving credit facility, the Company terminated its former $200,000 credit facility. In the second quarter, the Company amended its accounts receivable securitization facility, reducing the borrowing limit from $175,000 to $150,000 and extending the maturity until May 2018. The accounts receivable securitization facility has no significant financial covenants until available credit is less than specified amounts. These credit facilities are undrawn, other than to secure letters of credit, at September 30, 2015. Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Discontinued Operations – In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which requires that a disposal representing a strategic shift that has or will have a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The standard is effective for the annual and interim periods beginning after December 15, 2014. Accordingly, the Company has formally adopted the new standard; however, the adoption did not have an impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – To be adopted Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard was proposed to be effective for annual and interim periods beginning after December 15, 2016. On August 12, 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which defers the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The standard permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and related disclosures. Consolidation – In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which modifies the existing consolidation model, particularly for those entities with a variable interest in other legal entities. The standard is effective for the annual and interim periods beginning after December 15, 2015 and can be applied using either a retrospective or modified retrospective approach. Early adoption is permitted. The Company has concluded that the adoption of this standard will not have a material impact on its condensed consolidated financial statements. Debt Issuance Costs – In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Application of the standard, which is required to be applied retrospectively, is required for the annual and interim periods beginning after December 15, 2015. The adoption of this standard will result in a reclassification of debt issuance costs associated with the Company’s long-term debt from other assets to long-term debt in the condensed consolidated financial statements. The Company will early adopt the new standard in the fourth quarter of 2015. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. This is consistent with the Company’s accounting policy for debt issuance costs associated with the aforementioned revolving credit and accounts receivable securitization facilities. Intangibles – In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company has concluded that the adoption of this standard will not have a material impact on its condensed consolidated financial statements. Fair Value Measurements – In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also limits disclosure to investments for which the practical expedient has been elected instead of all investments eligible for the practical expedient. Application of the standard, which must be applied retrospectively, is required for the annual and interim periods beginning after December 15, 2015. The Company is currently evaluating the impact the new standard will have on the footnote disclosures to its condensed consolidated financial statements. Inventory – In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which is intended to simplify the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Business Combinations – In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments,” which requires acquirers to recognize adjustments to provisional amounts identified during the reporting period in which the adjustment amounts are determined. Acquirers should record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The new standard may have an impact on the Company’s condensed consolidated financial statements in the event of a business combination. |
CCT Agreements
CCT Agreements | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
CCT Agreements | 2. CCT Agreements On January 29, 2014, the Company entered into an agreement (the “CCT Agreement”) with Chengshan Group Company Ltd. (“Chengshan”) and The Union of Cooper Chengshan (Shandong) Tire Company Co., Ltd. (the “Union”) regarding Cooper Chengshan (Shandong) Tire Company Ltd. (“CCT”) that, among other matters, provided Chengshan, with certain conditions and exceptions, a limited contractual right to either (i) purchase the Company’s 65 percent equity interest in CCT for 65 percent of the Option Price (as defined below) or (ii) sell its 35 percent equity interest in CCT to the Company for 35 percent of the Option Price. In the event Chengshan elected not to exercise its right to purchase the Company’s equity interest or sell its interest in CCT to the Company, the Company had the right to purchase Chengshan’s 35 percent equity interest in CCT for 35 percent of the Option Price subject to certain conditions. In the event neither Chengshan nor the Company exercised their respective options prior to their expiration, the agreement allowed for continuation of the joint venture as then structured. The “Option Price” under the CCT Agreement was defined as the greater of (i) the fair market value of CCT on a stand-alone basis, which value would not take into consideration the value of the trademarks and technologies licensed by the Company to CCT, as determined by an internationally recognized valuation firm (the “CCT valuation”) and (ii) $435,000. Under the terms of the CCT Agreement, once the Option Price was determined, the noncontrolling shareholder had 45 days to elect to either purchase the Company’s 65 percent ownership interest in CCT for 65 percent of the Option Price or sell to the Company its 35 percent ownership interest in CCT at 35 percent of the Option Price, or do neither. If the noncontrolling shareholder did not exercise these options, the options would expire and the Company would have the right to purchase the noncontrolling shareholder’s 35 percent ownership interest in CCT at 35 percent of the Option Price. The CCT Agreement provided that, if the CCT valuation was not provided on or before August 11, 2014 (as such date may be extended, the “Option Commencement Deadline”), the options of both parties would terminate and be of no effect unless the Company, at its sole discretion, elected to extend the deadline for the CCT valuation. On August 11, 2014, the Company extended the Option Commencement Deadline from August 11, 2014 to August 14, 2014 to allow the parties to finalize the Option Agreement, as defined below, and related matters. As contemplated by the CCT Agreement, on August 14, 2014, the Company, Cooper Tire Investment Holding (Barbados) Ltd., a wholly owned subsidiary of CTB, Chengshan and Prairie Investment Limited (“Prairie”), a wholly owned subsidiary of Chengshan, entered into an option agreement (the “Option Agreement”). The Option Agreement further extended the Option Commencement Deadline until August 24, 2014. Furthermore, the Option Agreement, among other matters, set forth the details for exercising the options under the CCT Agreement and effecting the transactions pursuant thereto. The CCT Agreement and the Option Agreement were separate and in addition to the purchase, sale, transfer, right of first refusal and other protective rights set forth in the existing joint venture agreement between the Company and Chengshan with respect to CCT, which continued to be in effect and fully operational. The Company determined the CCT Agreement constituted an accounting extinguishment and new issuance of the Chengshan Group’s equity interest in CCT. In accordance with ASC 810, “Consolidation”, changes in a parent’s interest while the parent retains its controlling financial interest in its subsidiary shall be accounted for as equity transactions. Therefore, gains and losses were not recorded in the Condensed Consolidated Statements of Income as a result of the CCT Agreement. The Company was required to measure the noncontrolling shareholder interest at fair value as of January 29, 2014, the transaction date (the “Transaction Date Assessment”). The measurement of the noncontrolling shareholder interest as of the transaction date related to the CCT Agreement was determined by assessing CCT as an ongoing component of the Company’s operations. The CCT Agreement Transaction Date Assessment was not meant to be representative of the fair market value of CCT as a stand-alone entity as defined by the CCT Agreement. Further, the Transaction Date Assessment also considered specific discounts attributable to a noncontrolling shareholder interest, including discounts for lack of control of the entity and lack of marketability. Any adjustment to the noncontrolling shareholder interest as a result of the Transaction Date Assessment was offset by a reduction to Capital in excess of par value, to the extent available, with any remaining amount treated as a reduction in Retained earnings. In addition, because the CCT Agreement provided put and call options to the noncontrolling shareholder interest owner, these options were measured at fair value (the “Options Assessment”). Adjustments to the carrying value of the noncontrolling shareholder interest as a result of the Options Assessment were to be treated like a dividend to the noncontrolling shareholder interest owner. Any adjustment to the noncontrolling shareholder interest as a result of the Options Assessment was to be offset by a reduction to Retained earnings and reflected in the computation of earnings per share available to the Company’s common stockholders. Further, as a result of the CCT Agreement, during the term of its put option rights, the noncontrolling shareholder interest in CCT had redemption features that were not within the control of the Company. Accordingly, the noncontrolling shareholder interest in CCT was recorded outside of total equity during the interim period between the CCT Agreement and eventual date of sale as described below. If the Transaction Date Assessment and Options Assessment resulted in a noncontrolling shareholder interest that was less than 35 percent of the minimum Option Price, ASC 480, “Distinguishing Liabilities from Equity”, required that the noncontrolling shareholder interest be adjusted to 35 percent of the minimum Option Price. The Company’s CCT Agreement Transaction Date Assessment, in accordance with the appropriate accounting guidance, resulted in an adjustment to the redeemable noncontrolling shareholder interest of $28,285, increasing the total noncontrolling shareholder interest to $152,250. The Options Assessment did not result in any further adjustment to the redeemable noncontrolling shareholder interest. The redeemable noncontrolling shareholder interest was classified outside of permanent equity on the Company’s Condensed Consolidated Balance Sheet, in accordance with the authoritative accounting guidance. On August 24, 2014, the CCT valuation was completed by an internationally recognized valuation firm. The CCT valuation amount was approximately $437,700. As contemplated by the CCT Agreement, the CCT Valuation amount was to be used as the Option Price, as it was greater than $435,000. Subsequent to the Transaction Date Assessment, in accordance with ASC 480, the carrying value of the redeemable noncontrolling shareholder interest was evaluated to determine if the redemption value as of the reporting date exceeded the carrying value. At September 30, 2014, no adjustment to the redeemable noncontrolling shareholder interest was required as the carrying value of $168,435 was greater than the redemption value of $153,206, which was 35 percent of the CCT valuation amount of $437,700. The Company determined that the recurring fair value measurements related to CCT relied primarily on Company-specific inputs and the Company’s assumptions about the use of the assets and settlements of liabilities, as observable inputs were not available and, as such, resided within Level 3 of the fair value hierarchy as defined in Note 5 – Fair Value Measurements. The Company utilized third parties to assist in the determination of the fair value of CCT based upon internal and external inputs considering various relevant market transactions, discounted cash flow valuation methods and probability weighting, among other factors. In October 2014, the Company received the required documentation from the noncontrolling shareholder interest owner indicating its intent to exercise its call option under the CCT Agreement. On November 26, 2014, the Chinese State Administration for Industry & Commerce issued a new business license for CCT and on November 30, 2014, the Company completed the sale of its 65 percent ownership interest in CCT to Prairie, all in accordance with the previously described Option Agreement between the Company and Chengshan, referred to as the “Sale.” In connection with the Sale, the name of CCT was changed to Prinx Chengshan (Shandong) Tire Company Ltd. Under the terms of the CCT Agreement, the Company received approximately $262,000, in cash, net of taxes and including dividends. The sale of CCT resulted in a gain on sale, net of tax, of $55,704. Subsequent to the Sale, the Company continues to have off-take rights, with CCT agreeing to produce Cooper branded products until mid-2018. The Company evaluated the Sale to determine if it met the discontinued operations criteria in accordance with ASC 205 “Presentation of Financial Statements”. Based upon the Company’s significant continuing involvement in the operations of CCT through the off-take agreements, the Sale is not deemed to meet the discontinued operations criteria. CCT was presented in the Condensed Consolidated Financial Statements of the Company through the Sale date. The following table reflects the results of CCT included in the Company’s Condensed Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2014: Three Months Nine Months Net Sales External Customers $ 150,387 $ 479,239 Intercompany 38,045 99,136 $ 188,432 $ 578,375 Operating Profit $ 23,482 $ 69,735 Net income attributable to Cooper Tire & Rubber Company $ 11,253 $ 34,296 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share Net income per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 47,699 $ 53,176 $ 131,315 $ 153,520 Denominator Denominator for basic earnings per share - weighted average shares outstanding 60,606 56,693 62,504 57,332 Effect of dilutive securities - stock options and other stock units 1,023 539 969 602 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 61,629 57,232 63,473 57,934 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.79 $ 0.94 $ 2.10 $ 2.68 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.77 $ 0.93 $ 2.07 $ 2.65 All options to purchase shares of the Company’s common stock were included in the computation of diluted earnings per share as the options’ exercise prices were less than the average market price of the common shares at both September 30, 2014 and 2015. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventory costs are determined using the last-in, first-out (“LIFO”) method for substantially all U.S. inventories. The current cost of the U.S. inventories under the first-in, first-out (“FIFO”) method was $419,977 and $413,180 at December 31, 2014 and September 30, 2015, respectively. These FIFO values have been reduced by approximately $126,231 and $81,099 at December 31, 2014 and September 30, 2015, respectively, to arrive at the LIFO value reported on the Condensed Consolidated Balance Sheets. The remaining inventories have been valued under the FIFO or average cost methods. All inventories are stated at the lower of cost or market. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company has established policies and procedures for risk assessment and the approval, reporting and monitoring of derivative financial instrument activities. The Company does not enter into financial instruments for trading or speculative purposes. The derivative financial instruments include fair value and cash flow hedges of foreign currency exposures. The change in values of the fair value foreign currency hedges offsets exchange rate fluctuations on the foreign currency-denominated intercompany loans and obligations. The Company presently hedges exposures in the Euro, Canadian dollar, British pound sterling, Swiss franc, Swedish krona, Norwegian krone, Mexican peso and Chinese yuan generally for transactions expected to occur within the next 12 months. The notional amount of these foreign currency derivative instruments at December 31, 2014 and September 30, 2015 was $170,750 and $158,062, respectively. The counterparties to each of these agreements are major commercial banks. The Company uses foreign currency forward contracts as hedges of the fair value of certain non-U.S. dollar denominated asset and liability positions, primarily accounts receivable and debt. Gains and losses resulting from the impact of currency exchange rate movements on these forward contracts are recognized in the accompanying Condensed 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 such forward contracts (approximately $5,719 and $5,035 as of December 31, 2014 and September 30, 2015, respectively) are recorded as a separate component of stockholders’ equity in the accompanying Condensed Consolidated Balance Sheets and reclassified into earnings as the hedged transactions occur. The Company assesses hedge ineffectiveness quarterly using the hypothetical derivative method. In doing so, the Company monitors the actual and forecasted foreign currency sales and purchases versus the amounts hedged to identify any hedge ineffectiveness. Any hedge ineffectiveness is recorded as an adjustment in the accompanying Condensed Consolidated Statements of Income in the period in which the ineffectiveness occurs. 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. The derivative instruments are subject to master netting arrangements with the counterparties to the contracts. The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: Assets/(liabilities) December 31, 2014 September 30, 2015 Designated as hedging instruments: Gross amounts recognized $ 6,483 $ 5,400 Gross amounts offset (504 ) (133 ) Net amounts $ 5,979 $ 5,267 Not designated as hedging instruments: Gross amounts recognized — 405 Other current assets $ 5,979 $ 5,672 The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedges 2014 2015 2014 2015 Amount of Gain Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 5,808 $ 5,712 $ 4,119 $ 10,658 Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 885 4,352 2,185 11,342 Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 218 (53 ) 45 28 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not Designated Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments 2014 2015 2014 2015 Foreign exchange contracts Other non-operating income (expense) $ 314 $ (879 ) $ 270 $ 405 The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into the three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within the different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the Condensed Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows: Level 1. Financial asset and liability values are based on unadjusted quoted prices for an identical asset or liability in an active market that the Company has the ability to access. Level 2. Financial asset and liability values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: a. Quoted prices for similar assets or liabilities in active markets; b. Quoted prices for identical or similar assets or liabilities in non-active markets; c. Pricing models whose inputs are observable for substantially the full term of the asset or liability; and d. Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level 3. Financial asset and liability values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The valuation of foreign exchange forward contracts was determined using widely accepted valuation techniques. This analysis reflected the contractual terms of the derivatives, including the period to maturity, and used observable market-based inputs, including forward points. The Company incorporated credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as current credit ratings, to evaluate the likelihood of default by itself and its counterparties. As of December 31, 2014 and September 30, 2015, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. The valuation of stock-based liabilities was determined using the Company’s stock price, and as a result, these liabilities are classified in Level 1 of the fair value hierarchy. The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: December 31, 2014 Total Quoted Prices Significant Significant Foreign Exchange Contracts $ 5,979 $ — $ 5,979 $ — Stock-based Liabilities $ (19,079 ) $ (19,079 ) $ — $ — September 30, 2015 Total Derivative Assets (Liabilities) Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 5,672 $ — $ 5,672 $ — Stock-based Liabilities $ (18,526 ) $ (18,526 ) $ — $ — The following tables present the carrying amounts and fair values for the Company’s financial instruments carried at cost on the Condensed Consolidated Balance Sheets. The fair value of the Company’s debt is based upon the market price of the Company’s publicly-traded debt. The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2014 Fair Value Measurements Using Carrying Quoted Prices Significant Significant Cash and cash equivalents $ 551,652 $ 551,652 $ — $ — Notes receivable 4,546 4,546 — — Restricted cash 653 653 Notes payable (64,551 ) (64,551 ) — — Current portion of long-term debt (2,115 ) (2,115 ) — — Long-term debt (298,931 ) (325,431 ) — — September 30, 2015 Fair Value Measurements Using Carrying Quoted Prices in Active Markets Significant Level (2) Significant Level (3) Cash and cash equivalents $ 424,232 $ 424,232 $ — $ — Notes receivable 10,917 10,917 — — Restricted cash 791 791 — — Notes payable (17,646 ) (17,646 ) — — Current portion of long-term debt (600 ) (600 ) — — Long-term debt (297,320 ) (317,620 ) — — |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes For the quarter ended September 30, 2015, the Company recorded income tax expense of $24,524 (effective rate of 31.4 percent) compared with $26,740 (effective rate of 32.9 percent) for the comparable period in 2014. For the nine-month period ended September 30, 2015, the Company recorded income tax expense of $81,818 (effective rate of 34.4 percent) compared with $75,093 (effective rate of 33.2 percent) for the comparable period in 2014. The 2015 quarter and nine-month period income tax expense is calculated using the forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. This rate differs from the U.S. federal statutory rate of 35 percent primarily because of the projected mix of earnings in international jurisdictions with lower tax rates, partially offset by losses in jurisdictions with no tax benefit due to valuation allowances. Income tax expense for the current quarter is lower due primarily to discrete benefits recorded during the quarter, compared with the same period of the prior year. Income tax expense for the nine-month period is higher due to increased earnings, primarily in the U.S, combined with decreased earnings in foreign jurisdictions, compared with the same period of the prior year. The Company continues to maintain a valuation allowance pursuant to ASC 740, “Accounting for Income Taxes,” against a portion of its U.S. and non-U.S. deferred tax asset position at September 30, 2015, as it cannot assure the utilization of these assets before they expire. In the U.S., the Company has offset a portion of its deferred tax asset relating primarily to a capital loss carryforward by a valuation allowance of $20,635. The capital loss carryforward in the U.S. is scheduled to expire in the fourth quarter of 2015. In addition, the Company has recorded valuation allowances of $12,645 relating to non-U.S. net operating losses for a total valuation allowance of $33,280. In conjunction with the Company’s ongoing review of its actual results and anticipated future earnings, the Company will continue to reassess the possibility of releasing all or part of the valuation allowances currently in place when they are deemed to be realizable. The Company maintains an ASC 740-10, “Accounting for Uncertainty in Income Taxes,” liability for unrecognized tax benefits for permanent and temporary differences. At September 30, 2015, the Company’s liability, exclusive of interest, totals approximately $6,238. The Company reduced the amount of unrecognized tax benefits during the quarter, primarily as a result of lapses in statutes. The Company accrued an immaterial amount of interest expense related to these unrecognized tax benefits during the quarter. Based upon the outcome of tax examinations, judicial proceedings, or expiration of statutes of limitations, it is 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. The Company and its subsidiaries are subject to income tax examination in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company has effectively settled U.S. federal tax examinations for years before 2011 and state and local examinations for years before 2010, with limited exceptions. Non-U.S. subsidiaries of the Company are no longer subject to income tax examinations in major foreign taxing jurisdictions for years prior to 2008. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | 7. Pensions and Postretirement Benefits Other than Pensions The following tables disclose the amount of net periodic benefit costs for the three and nine months ended September 30, 2014 and 2015 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 2,440 $ 2,759 $ 7,320 $ 8,278 Interest cost 10,711 10,051 32,132 30,151 Expected return on plan assets (13,136 ) (13,665 ) (39,407 ) (40,995 ) Amortization of actuarial loss 7,005 9,878 21,016 29,636 Net periodic benefit cost $ 7,020 $ 9,023 $ 21,061 $ 27,070 Pension Benefits - International Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 3 $ 2 $ 9 $ 7 Interest cost 4,972 4,018 14,907 11,920 Expected return on plan assets (5,063 ) (3,148 ) (15,178 ) (9,339 ) Amortization of actuarial loss 2,142 1,830 6,422 5,430 Net periodic benefit cost $ 2,054 $ 2,702 $ 6,160 $ 8,018 Other Postretirement Benefits Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 601 $ 628 $ 1,803 $ 1,884 Interest cost 2,827 2,580 8,479 7,740 Amortization of prior service cost (141 ) (141 ) (424 ) (425 ) Amortization of actuarial loss — — — — Net periodic benefit cost $ 3,287 $ 3,067 $ 9,858 $ 9,199 |
Product Warranty Liabilities
Product Warranty Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Product Warranty Liabilities | 8. Product Warranty Liabilities The Company provides for the estimated cost of product warranties at the time revenue is recognized based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities: Product Reserve at December 31, 2013 $ 30,853 Additions 13,983 Payments (14,886 ) Reserve at September 30, 2014 $ 29,950 Reserve at December 31, 2014 $ 14,005 Additions 7,106 Payments (8,272 ) Reserve at September 30, 2015 $ 12,839 The CCT portion of the warranty accrual consisted of a December 31, 2013 reserve of $16,807, additions to the reserve of $5,624 and payments of $6,976 for the nine months ended September 30, 2014. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholder’s interests: Total Equity Total Noncontrolling Total Balance at December 31, 2014 $ 843,792 $ 40,469 $ 884,261 Net income 153,520 2,769 156,289 Other comprehensive income 2,872 (4,030 ) (1,158 ) Share repurchase program (82,800 ) — (82,800 ) Stock compensation plans 27,047 — 27,047 Cash dividends - $0.315 per share (17,998 ) — (17,998 ) Dividend paid to noncontrolling shareholder — (917 ) (917 ) Balance at September 30, 2015 $ 926,433 $ 38,291 $ 964,724 |
Share Repurchase Programs
Share Repurchase Programs | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Share Repurchase Programs | 10. Share Repurchase Programs On August 6, 2014, the Board of Directors authorized the repurchase of up to $200,000 of the Company’s outstanding common stock pursuant to an accelerated share repurchase program, and the Company entered into a $200,000 accelerated share repurchase program (the “ASR program”) with J.P. Morgan Chase Bank (the “ASR Counterparty”). The Company paid $200,000 to the ASR Counterparty in August 2014 and received 5,567,154 shares of its common stock, which represented approximately 80 percent of the shares expected to be purchased pursuant to the ASR program, based on the closing price on August 6, 2014. Under the terms of the ASR program, the ASR Counterparty was permitted, in accordance with the applicable requirements of the federal securities laws, to separately trade in the Company’s shares in connection with the hedging activities related to the ASR program and as part of other aspects of the ASR Counterparty’s business. On February 13, 2015, the Company completed the ASR program. Based on the terms of the ASR program, the total number of shares repurchased under the ASR program was based on the volume-weighted average price of the Company’s common stock, less a discount, during the repurchase period, which resulted in the Company receiving an additional 784,694 shares of its common stock from the ASR Counterparty at maturity. As a result, under the ASR program, the Company paid a total of $200,000 to the ASR Counterparty and received a total of 6,351,848 shares (5,567,154 shares initially received, plus 784,694 shares received at maturity) of its common stock, which represents a volume weighted average price, as adjusted pursuant to the terms of the ASR program, of $31.49 over the duration of the ASR program. On February 20, 2015, the Board of Directors authorized a new program to repurchase up to $200,000 of the Company’s common stock through December 31, 2016. This share repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or discontinued at any time without notice. Under the program, shares may 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. During the nine months ended September 30, 2015, subsequent to the Board of Directors’ February 20, 2015 authorization, the Company repurchased 2,110,633 shares of the Company’s common stock under this program for $82,800, including applicable commissions, which represents an average price of $39.23 per share. As of September 30, 2015, approximately $117,263 remained of the $200,000 share repurchase program. All repurchases under this program were made using cash resources. Since the share repurchases began in August 2014, the Company to date has repurchased 8,462,481 shares of the Company’s common stock at an average cost of $33.42 per share. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation The Company’s incentive compensation plans allow the Company to grant awards to certain 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. 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 for the three- and nine-month periods ended September 30, 2014 and 2015: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Stock options $ 1,058 $ 303 $ 3,147 $ 3,681 Restricted stock units 749 1,027 1,058 4,109 Performance stock units 426 1,706 1,640 3,920 Total stock-based compensation $ 2,233 $ 3,036 $ 5,845 $ 11,710 Stock Options In February 2013, employees participating in the 2013-2015 Long-Term Incentive Plan were granted 330,639 stock options which vest one-third each year through February 2016. In February 2014, employees participating in the 2014-2016 Long-Term Incentive Plan were granted 380,064 stock options which vest one-third each year through February 2017. No stock options were granted in the nine-month period ended September 30, 2015. The fair value of the options granted was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2014 Risk-free interest rate 2.00 % Dividend yield 1.8 % Expected volatility of the Company’s common stock 0.64 Expected life in years 6.0 The weighted average fair value of options granted in 2014 was $12.26. The following table provides details of the stock option activity for the nine months ended September 30, 2015: Number of Outstanding at December 31, 2014 1,765,922 Granted — Exercised (852,413 ) Expired (18,459 ) Canceled (53,632 ) Outstanding at September 30, 2015 841,418 Exercisable 513,059 Restricted Stock Units In February 2015, employees participating in the 2015-2017 Long-Term Incentive Plan were granted 105,102 restricted stock units which vest one-third each year through February 2018. Compensation related to the restricted stock units granted is determined based on the fair value of the Company’s stock on the date of grant 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. The weighted average fair value of restricted stock units granted in 2015 was $36.78. The following table provides details of the nonvested restricted stock unit activity for the nine months ended September 30, 2015: Number of Nonvested at December 31, 2014 197,838 Granted 111,052 Vested (95,047 ) Canceled (19,869 ) Accrued dividend equivalents 2,236 Nonvested at September 30, 2015 196,210 Performance Stock Units Employees participating in the Company’s Long-Term Incentive Plan for the plan year 2013 – 2015, earn performance stock units and cash. Any units and cash earned during 2013, 2014 and 2015 will vest at December 31, 2015. Employees participating in the Company’s Long-Term Incentive Plan for the plan year 2014 – 2016, earn performance stock units and cash. Any units and cash earned during 2014 and 2015 will vest at December 31, 2016. Employees participating in the Company’s Long-Term Incentive Plan for the plan year 2015 – 2017, earn performance stock units and cash. Any units and cash earned during 2015 will vest at December 31, 2017. The following table provides details of the nonvested performance stock units under the Company’s Long-Term Incentive Plans: Number of Performance stock units outstanding at December 31, 2014 83,515 Granted 117,789 Canceled (11,008 ) Accrued dividend equivalents 798 Performance stock units outstanding at September 30, 2015 191,094 The Company’s restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been earned based upon Company performance metrics, until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units and performance stock units. Accordingly, such units do not represent participating securities. |
Changes in Cumulative Other Com
Changes in Cumulative Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Cumulative Other Comprehensive Loss by Component | 12. Changes in Cumulative Other Comprehensive Loss by Component The following table presents the changes in Cumulative Other Comprehensive Loss by Component for the three- and nine-month periods ended September 30, 2015. All amounts are presented net of tax. Amounts in parentheses indicate debits. Three Months Ended September 30, 2015 Cumulative Changes in the Fair (Losses) Unrecognized Plans Total June 30, 2015 $ 7,146 $ 3,550 $ (530,545 ) $ (519,849 ) Other comprehensive income (loss) before reclassifications (20,129 ) 3,548 (a) 3,934 (c) $ (12,647 ) Amount reclassified from accumulated other comprehensive income — (2,693 )(b) 7,459 (d) $ 4,766 Net current-period other comprehensive income (loss) (20,129 ) 855 11,393 (7,881 ) September 30, 2015 $ (12,983 ) $ 4,405 $ (519,152 ) $ (527,730 ) (a) This amount represents $5,712 of unrealized gains on cash flow hedges, net of tax of $2,164 that were recognized in Other Comprehensive Loss (see Footnote 5 for additional details). (b) This amount represents $4,352 of gains on cash flow hedges, net of tax of $1,659, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other non-operating income (expense) on the Condensed Consolidated Statements of Income (see Footnote 5 for additional details). (c) This amount represents $4,980 of other comprehensive income, net of tax of $1,046 that was recognized in Other Comprehensive Loss. (d) This amount represents amortization of prior service credit of $141 and amortization of actuarial losses of ($11,708) net of tax of $4,108 that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 7 for additional details). Nine Months Ended September 30, 2015 Cumulative Changes in the Fair (Losses) Unrecognized Plans Total December 31, 2014 $ 9,059 $ 4,762 $ (544,423 ) $ (530,602 ) Other comprehensive income (loss)before reclassifications (22,042 ) 6,732 (a) 2,943 (c) (12,367 ) Amount reclassified from accumulated other comprehensive income — (7,089 )(b) 22,328 (d) 15,239 Net current-period other comprehensive income (loss) (22,042 ) (357 ) 25,271 2,872 September 30, 2015 $ (12,983 ) $ 4,405 $ (519,152 ) $ (527,730 ) (a) This amount represents $10,658 of unrealized gains on cash flow hedges, net of tax of $3,926 that were recognized in Other Comprehensive Loss (see Footnote 5 for additional details). (b) This amount represents $11,342 of gains on cash flow hedges, net of tax of $4,253, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other non-operating income (expense) on the Condensed Consolidated Statements of Income (see Footnote 5 for additional details). (c) This amount represents $3,725 of other comprehensive income, net of tax of $782 that was recognized in Other Comprehensive Loss. (d) This amount represents amortization of prior service credit of $425 and amortization of actuarial losses of ($35,066) net of tax of $12,313, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 7 for additional details). |
Comprehensive Income Attributab
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | 13. Comprehensive Income Attributable to Noncontrolling Shareholders’ Interests The following table provides the details of the comprehensive income attributable to noncontrolling shareholders’ interests: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Net income attributable to noncontrolling shareholders’ interests $ 6,938 $ 473 $ 19,808 $ 2,769 Other comprehensive income: Currency translation adjustments (1,081 ) (2,377 ) (2,054 ) (4,030 ) Comprehensive income attributable to noncontrolling shareholders’ interests $ 5,857 $ (1,904 ) $ 17,754 $ (1,261 ) |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 14. 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 involve different types of tires, models and lines, different 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, light truck, SUV, radial medium truck and motorcycle tires per year in North America. The Company estimates that approximately 300 million Company-produced tires – made up of thousands of different specifications – are still on the road in North America. While tire disablements do occur, it is the Company’s and the tire industry’s experience that the vast majority of tire failures relate to service-related conditions, which are entirely out of the Company’s control – such as failure to maintain proper tire pressure, improper maintenance, road hazard and excessive speed. The Company accrues costs for product liability at the time a loss is probable and the amount of loss can be estimated. The Company believes the probability of loss can be established and the amount of loss can be estimated only after certain minimum information is available, including verification that Company-produced product were involved in the incident giving rise to the claim, the condition of the product purported to be involved in the claim, the nature of the incident giving rise to the claim and the extent of the purported injury or damages. In cases where such information is known, each product liability claim is evaluated based on its specific facts and circumstances. A judgment is then made to determine the requirement for establishment or revision of an accrual for any potential liability. The liability often cannot be determined with precision until the claim is resolved. Pursuant to applicable accounting rules, the Company accrues the minimum liability for each known claim when the estimated outcome is a range of possible loss and no one amount within that range is more likely than another. The Company uses a range of losses because an average cost would not be meaningful since the product liability claims faced by the Company are unique and widely variable, and accordingly, the resolutions of those claims have an enormous amount of variability. The costs have ranged from zero dollars to $33 million in one case with no “average” that is meaningful. No specific accrual is made for individual unasserted claims or for premature claims, asserted claims where the minimum information needed to evaluate the probability of a liability is not yet known. However, an accrual for such claims based, in part, on management’s expectations for future litigation activity and the settled claims history is maintained. Because of the speculative nature of litigation in the U.S., the Company does not believe a meaningful aggregate range of potential loss for asserted and unasserted claims can be determined. The Company’s experience has demonstrated that its estimates have been reasonably accurate and, on average, cases are settled at amounts close to the reserves established. However, it is possible an individual claim from time to time may result in an aberration from the norm and could have a material impact. The Company determines its reserves using the number of incidents expected during a year. During the first nine months of 2015, the Company increased its product liability reserve by $46,356. The addition of another year of self-insured incidents accounted for $36,593 of this increase. Settlements and changes in the amount of reserves for cases where sufficient information is known to estimate a liability increased by $9,763. The time frame for the payment of a product liability claim is too variable to be meaningful. From the time a claim is filed to its ultimate disposition depends on the unique nature of the case, how it is resolved – claim dismissed, negotiated settlement, trial verdict or appeals process – and is highly dependent on jurisdiction, specific facts, the plaintiff’s attorney, the court’s docket and other factors. Given that some claims may be resolved in weeks and others may take five years or more, it is impossible to predict with any reasonable reliability the time frame over which the accrued amounts may be paid. The Company paid $17,888 during the third quarter of 2015 to resolve cases and claims and has paid $51,346 through the first nine months of 2015. The Company’s product liability reserve balance at December 31, 2014 totaled $178,891 (the current portion of $69,892 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets), and the balance at September 30, 2015 totaled $173,901 (current portion of $69,699). 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 offset by recoveries of legal fees. Legal costs are expensed as incurred and product liability insurance premiums are amortized over coverage periods. For the three-month periods ended September 30, 2014 and 2015, product liability expenses totaled $21,227 and $20,067, respectively. For the nine-month periods ended September 30, 2014 and 2015, product liability expenses totaled $62,039 and $63,604, respectively. Product liability expenses are included in Cost of goods sold in the Condensed Consolidated Statements of Income. Federal Securities Litigation On January 17, 2014, alleged stockholders of the Company filed a putative class-action lawsuit against the Company and certain of its officers in the United States District Court for the District of Delaware relating to the terminated merger agreement with subsidiaries of Apollo Tyres Ltd. That lawsuit, captioned OFI Risk Arbitrages, et al. v. Cooper Tire & Rubber Co., et al., No. 1:14-cv-00068-LPS, generally alleges that the Company and certain officers violated the federal securities laws by issuing allegedly misleading disclosures in connection with the terminated transaction and seeks, among other things, damages. The Company and its officers believe that the allegations against them lack merit and intend to defend the lawsuit vigorously. On July 1, 2015, the court dismissed the plaintiffs’ amended complaint and closed the case. The plaintiffs have filed an appeal of the dismissal order. The Company regularly reviews the probable outcome of such legal 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. The outcome of these pending proceedings cannot be predicted with certainty and an estimate of any such loss cannot be made at this time. The Company believes that based upon information currently available, 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. Stockholder Derivative Litigation On February 24, March 6, and April 17, 2014, purported stockholders of the Company filed derivative actions on behalf of the Company in the U.S. District Court for the Northern District of Ohio and the U.S. District Court for the District of Delaware against certain officers and employees and the then current members of the Company’s board of directors. The lawsuits have been transferred to the U.S. District Court for the District of Delaware and consolidated under the caption Fitzgerald v. Armes, et al., No. 1:14-cv-479 (D. Del.). The Company is named as a nominal defendant in the lawsuits, and the lawsuits seek recovery for the benefit of the Company. The plaintiffs allege that the defendants breached their fiduciary duties to the Company by issuing allegedly misleading disclosures in connection with the terminated merger transaction and that the defendants violated Section 14(a) of the Securities Exchange Act of 1934 by means of the same allegedly misleading disclosures. The plaintiffs also assert claims for waste of corporate assets, unjust enrichment, “gross mismanagement” and “abuse of control.” The complaints seek, among other things, unspecified money damages from the defendants, injunctive relief and an award of attorney’s fees. A purported shareholder of the Company has also submitted a demand to the Company’s board of directors that it cause the Company to bring claims against certain of the Company’s officers and directors for the matters alleged in the shareholder derivative lawsuits; following an investigation, the board of directors determined that the actions requested in the demand were not in the Company’s interests and accordingly rejected the demand. The Company regularly reviews the probable outcome of such legal proceedings, the expenses expected to be incurred, the availability and limits of the insurance coverage, and accrues for such legal proceedings at the time a loss is probable and the amount of the loss can be estimated. These cases do not assert claims against the Company. The outcome of these pending proceedings cannot be predicted with certainty and an estimate of any loss cannot be made at this time. The Company believes that based upon information currently available, 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. 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. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | 15. Business Segments In the first quarter of 2015, the Company announced the creation of a Chief Operating Officer position with responsibility for Cooper’s worldwide operations throughout North America, Asia, Europe and Latin America. The Company made this organizational change to provide a more cohesive global approach to the Company’s business and to better leverage the Company’s brands, products and manufacturing footprint around the world. As a result of these organizational changes, the Company evaluated its segment reporting under ASC 280, “Segments.” Based on this evaluation, it was determined that the Company has four reportable 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” 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 has a joint venture manufacturing operation in Mexico, Corporacion de Occidente SA de CV (“COOCSA”), which supplies passenger car tires to the U.S., Mexican, Central American and South American markets. The segment also distributes tires for racing, medium truck and motorcycles. The racing and motorcycle tires are manufactured in the Company’s European Operations segment and by others. Subsequent to the Company’s sale of its ownership interest in CCT, the medium truck tires have been sourced through an off-take agreement with CCT. Major distribution channels and customers include independent tire dealers, wholesale distributors, regional and national retail tire chains, and large retail chains that sell tires as well as other automotive products. The segment does not currently sell its products directly to end users, except through three Company-owned retail stores. The segment sells a limited number of tires to original equipment manufacturers. Both the Asia and Europe segments have been determined to be individually immaterial, as they do not meet the quantitative requirements for segment disclosure under ASC 280. In accordance with ASC 280, information about operating segments that are not reportable shall be combined and disclosed in an all other category separate from other reconciling items. As a result, these two segments have been combined in the segment operating results discussion. The results of the combined Asia and Europe segments are presented as “International Tire”. The European operations have affiliated operations in the U.K. and Serbia. The U.K. entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material for domestic and global markets. The Serbian entity manufactures light vehicle tires primarily for the European markets. The Asian operations have affiliated operations in the People’s Republic of China (“PRC”). In the PRC, Cooper Kunshan Tire manufactures light vehicle tires and, under an agreement with the government of the PRC, these tires were exported to markets outside of the PRC through 2012. Beginning in 2013, tires produced at the facility have also been sold in the Chinese domestic market. The segment also had a joint venture in the PRC, CCT, which manufactured and marketed radial and bias medium truck tires, as well as passenger and light truck tires for domestic and global markets. The Company sold its ownership interest in this joint venture in November 2014, and the Company now procures these tires under off-take agreements through mid-2018. The majority of the tires manufactured by the segments are sold in the replacement market, with a portion also sold to original equipment manufacturers. The presentation of the aggregated Americas Tire segment under the Company’s new organizational structure is consistent with the segment reported as Americas Tire in prior years. Similarly, the International Tire disclosure is consistent with the Company’s previously reported International Tire segment. As a result, the Company has not restated its prior year reportable segments as the composition of reportable segments did not change. The following table details information on the Company’s operating segments. Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Net sales Americas Tire External customers $ 677,444 $ 688,982 $ 1,846,403 $ 1,929,222 Intercompany 16,494 13,478 50,263 44,771 693,938 702,460 1,896,666 1,973,993 International Tire External customers 242,638 93,386 758,822 268,133 Intercompany 70,777 25,517 191,359 82,720 313,415 118,903 950,181 350,853 Eliminations (87,271 ) (38,995 ) (241,622 ) (127,491 ) Net sales $ 920,082 $ 782,368 $ 2,605,225 $ 2,197,355 Segment profit (loss): Americas Tire $ 75,618 $ 102,475 $ 209,080 $ 301,039 International Tire 22,787 (5,329 ) 72,394 (11,755 ) Unallocated corporate charges (7,912 ) (15,416 ) (32,223 ) (40,084 ) Eliminations (1,118 ) 437 (2,376 ) 2,749 Operating profit 89,375 82,167 246,875 251,949 Interest expense (7,050 ) (5,889 ) (20,960 ) (18,485 ) Interest income 305 533 1,088 1,609 Other non-operating income (expense) (1,253 ) 1,362 (787 ) 3,034 Income before income taxes $ 81,377 $ 78,173 $ 226,216 $ 238,107 |
Basis of Presentation and Con22
Basis of Presentation and Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Pronouncements | Accounting Pronouncements Each change to U.S. GAAP is established by the Financial Accounting Standards Board (“FASB”) in the form of an accounting standards update (“ASU”) to the FASB’s Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all accounting standards updates. Accounting standards updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – Recently Adopted Discontinued Operations – In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which requires that a disposal representing a strategic shift that has or will have a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The standard is effective for the annual and interim periods beginning after December 15, 2014. Accordingly, the Company has formally adopted the new standard; however, the adoption did not have an impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements – To be adopted Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard was proposed to be effective for annual and interim periods beginning after December 15, 2016. On August 12, 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which defers the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. The standard permits the use of either a retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and related disclosures. Consolidation – In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis,” which modifies the existing consolidation model, particularly for those entities with a variable interest in other legal entities. The standard is effective for the annual and interim periods beginning after December 15, 2015 and can be applied using either a retrospective or modified retrospective approach. Early adoption is permitted. The Company has concluded that the adoption of this standard will not have a material impact on its condensed consolidated financial statements. Debt Issuance Costs – In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. Application of the standard, which is required to be applied retrospectively, is required for the annual and interim periods beginning after December 15, 2015. The adoption of this standard will result in a reclassification of debt issuance costs associated with the Company’s long-term debt from other assets to long-term debt in the condensed consolidated financial statements. The Company will early adopt the new standard in the fourth quarter of 2015. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which allows the presentation of debt issuance costs related to line-of-credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. This is consistent with the Company’s accounting policy for debt issuance costs associated with the aforementioned revolving credit and accounts receivable securitization facilities. Intangibles – In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company has concluded that the adoption of this standard will not have a material impact on its condensed consolidated financial statements. Fair Value Measurements – In May 2015, the FASB issued ASU 2015-07, “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also limits disclosure to investments for which the practical expedient has been elected instead of all investments eligible for the practical expedient. Application of the standard, which must be applied retrospectively, is required for the annual and interim periods beginning after December 15, 2015. The Company is currently evaluating the impact the new standard will have on the footnote disclosures to its condensed consolidated financial statements. Inventory – In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which is intended to simplify the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Business Combinations – In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments,” which requires acquirers to recognize adjustments to provisional amounts identified during the reporting period in which the adjustment amounts are determined. Acquirers should record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Application of the standard, which should be applied prospectively, is required for the annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The new standard may have an impact on the Company’s condensed consolidated financial statements in the event of a business combination. |
CCT Agreements (Tables)
CCT Agreements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
CCT Agreement [Member] | |
Summary of Effect of Sale | The following table reflects the results of CCT included in the Company’s Condensed Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2014: Three Months Nine Months Net Sales External Customers $ 150,387 $ 479,239 Intercompany 38,045 99,136 $ 188,432 $ 578,375 Operating Profit $ 23,482 $ 69,735 Net income attributable to Cooper Tire & Rubber Company $ 11,253 $ 34,296 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 47,699 $ 53,176 $ 131,315 $ 153,520 Denominator Denominator for basic earnings per share - weighted average shares outstanding 60,606 56,693 62,504 57,332 Effect of dilutive securities - stock options and other stock units 1,023 539 969 602 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 61,629 57,232 63,473 57,934 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.79 $ 0.94 $ 2.10 $ 2.68 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.77 $ 0.93 $ 2.07 $ 2.65 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets | The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: Assets/(liabilities) December 31, 2014 September 30, 2015 Designated as hedging instruments: Gross amounts recognized $ 6,483 $ 5,400 Gross amounts offset (504 ) (133 ) Net amounts $ 5,979 $ 5,267 Not designated as hedging instruments: Gross amounts recognized — 405 Other current assets $ 5,979 $ 5,672 |
Gains and Losses on Derivative Instruments in Condensed Consolidated Statement of Operations | The following table presents the location and amount of gains and losses on derivative instruments in the Condensed Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedges 2014 2015 2014 2015 Amount of Gain Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 5,808 $ 5,712 $ 4,119 $ 10,658 Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) 885 4,352 2,185 11,342 Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) 218 (53 ) 45 28 Location of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives not Designated Three Months Ended September 30, Nine Months Ended September 30, as Hedging Instruments 2014 2015 2014 2015 Foreign exchange contracts Other non-operating income (expense) $ 314 $ (879 ) $ 270 $ 405 |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: December 31, 2014 Total Quoted Prices Significant Significant Foreign Exchange Contracts $ 5,979 $ — $ 5,979 $ — Stock-based Liabilities $ (19,079 ) $ (19,079 ) $ — $ — September 30, 2015 Total Derivative Assets (Liabilities) Quoted Prices in Active Markets for Identical Assets Level (1) Significant Other Observable Inputs Level (2) Significant Unobservable Inputs Level (3) Foreign Exchange Contracts $ 5,672 $ — $ 5,672 $ — Stock-based Liabilities $ (18,526 ) $ (18,526 ) $ — $ — |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments are as follows: December 31, 2014 Fair Value Measurements Using Carrying Quoted Prices Significant Significant Cash and cash equivalents $ 551,652 $ 551,652 $ — $ — Notes receivable 4,546 4,546 — — Restricted cash 653 653 Notes payable (64,551 ) (64,551 ) — — Current portion of long-term debt (2,115 ) (2,115 ) — — Long-term debt (298,931 ) (325,431 ) — — September 30, 2015 Fair Value Measurements Using Carrying Quoted Prices in Active Markets Significant Level (2) Significant Level (3) Cash and cash equivalents $ 424,232 $ 424,232 $ — $ — Notes receivable 10,917 10,917 — — Restricted cash 791 791 — — Notes payable (17,646 ) (17,646 ) — — Current portion of long-term debt (600 ) (600 ) — — Long-term debt (297,320 ) (317,620 ) — — |
Pensions and Postretirement B26
Pensions and Postretirement Benefits Other than Pensions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Costs | The following tables disclose the amount of net periodic benefit costs for the three and nine months ended September 30, 2014 and 2015 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 2,440 $ 2,759 $ 7,320 $ 8,278 Interest cost 10,711 10,051 32,132 30,151 Expected return on plan assets (13,136 ) (13,665 ) (39,407 ) (40,995 ) Amortization of actuarial loss 7,005 9,878 21,016 29,636 Net periodic benefit cost $ 7,020 $ 9,023 $ 21,061 $ 27,070 Pension Benefits - International Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 3 $ 2 $ 9 $ 7 Interest cost 4,972 4,018 14,907 11,920 Expected return on plan assets (5,063 ) (3,148 ) (15,178 ) (9,339 ) Amortization of actuarial loss 2,142 1,830 6,422 5,430 Net periodic benefit cost $ 2,054 $ 2,702 $ 6,160 $ 8,018 Other Postretirement Benefits Three Months Ended Nine Months Ended 2014 2015 2014 2015 Components of net periodic benefit cost: Service cost $ 601 $ 628 $ 1,803 $ 1,884 Interest cost 2,827 2,580 8,479 7,740 Amortization of prior service cost (141 ) (141 ) (424 ) (425 ) Amortization of actuarial loss — — — — Net periodic benefit cost $ 3,287 $ 3,067 $ 9,858 $ 9,199 |
Product Warranty Liabilities (T
Product Warranty Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Summary of Activity in Product Warranty Liabilities | The following table summarizes the activity in the Company’s product warranty liabilities: Product Reserve at December 31, 2013 $ 30,853 Additions 13,983 Payments (14,886 ) Reserve at September 30, 2014 $ 29,950 Reserve at December 31, 2014 $ 14,005 Additions 7,106 Payments (8,272 ) Reserve at September 30, 2015 $ 12,839 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Reconciliation of Beginning and End of Period Equity Accounts | The following table reconciles the beginning and end of the period equity accounts attributable to Cooper Tire & Rubber Company and to the noncontrolling shareholder’s interests: Total Equity Total Noncontrolling Total Balance at December 31, 2014 $ 843,792 $ 40,469 $ 884,261 Net income 153,520 2,769 156,289 Other comprehensive income 2,872 (4,030 ) (1,158 ) Share repurchase program (82,800 ) — (82,800 ) Stock compensation plans 27,047 — 27,047 Cash dividends - $0.315 per share (17,998 ) — (17,998 ) Dividend paid to noncontrolling shareholder — (917 ) (917 ) Balance at September 30, 2015 $ 926,433 $ 38,291 $ 964,724 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Expense | The following table discloses the amount of stock-based compensation expense for the three- and nine-month periods ended September 30, 2014 and 2015: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Stock options $ 1,058 $ 303 $ 3,147 $ 3,681 Restricted stock units 749 1,027 1,058 4,109 Performance stock units 426 1,706 1,640 3,920 Total stock-based compensation $ 2,233 $ 3,036 $ 5,845 $ 11,710 |
Weighted-Average Assumptions | The fair value of the options granted was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2014 Risk-free interest rate 2.00 % Dividend yield 1.8 % Expected volatility of the Company’s common stock 0.64 Expected life in years 6.0 |
Details of Stock Options Activity | The following table provides details of the stock option activity for the nine months ended September 30, 2015: Number of Outstanding at December 31, 2014 1,765,922 Granted — Exercised (852,413 ) Expired (18,459 ) Canceled (53,632 ) Outstanding at September 30, 2015 841,418 Exercisable 513,059 |
Details of Nonvested Restricted Stock Units Activity | The following table provides details of the nonvested restricted stock unit activity for the nine months ended September 30, 2015: Number of Nonvested at December 31, 2014 197,838 Granted 111,052 Vested (95,047 ) Canceled (19,869 ) Accrued dividend equivalents 2,236 Nonvested at September 30, 2015 196,210 |
Performance Based Units Earned under Long-Term Incentive Plan | The following table provides details of the nonvested performance stock units under the Company’s Long-Term Incentive Plans: Number of Performance stock units outstanding at December 31, 2014 83,515 Granted 117,789 Canceled (11,008 ) Accrued dividend equivalents 798 Performance stock units outstanding at September 30, 2015 191,094 |
Changes in Cumulative Other C30
Changes in Cumulative Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Cumulative Other Comprehensive Loss by Component | The following table presents the changes in Cumulative Other Comprehensive Loss by Component for the three- and nine-month periods ended September 30, 2015. All amounts are presented net of tax. Amounts in parentheses indicate debits. Three Months Ended September 30, 2015 Cumulative Changes in the Fair (Losses) Unrecognized Plans Total June 30, 2015 $ 7,146 $ 3,550 $ (530,545 ) $ (519,849 ) Other comprehensive income (loss) before reclassifications (20,129 ) 3,548 (a) 3,934 (c) $ (12,647 ) Amount reclassified from accumulated other comprehensive income — (2,693 )(b) 7,459 (d) $ 4,766 Net current-period other comprehensive income (loss) (20,129 ) 855 11,393 (7,881 ) September 30, 2015 $ (12,983 ) $ 4,405 $ (519,152 ) $ (527,730 ) (a) This amount represents $5,712 of unrealized gains on cash flow hedges, net of tax of $2,164 that were recognized in Other Comprehensive Loss (see Footnote 5 for additional details). (b) This amount represents $4,352 of gains on cash flow hedges, net of tax of $1,659, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other non-operating income (expense) on the Condensed Consolidated Statements of Income (see Footnote 5 for additional details). (c) This amount represents $4,980 of other comprehensive income, net of tax of $1,046 that was recognized in Other Comprehensive Loss. (d) This amount represents amortization of prior service credit of $141 and amortization of actuarial losses of ($11,708) net of tax of $4,108 that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 7 for additional details). Nine Months Ended September 30, 2015 Cumulative Changes in the Fair (Losses) Unrecognized Plans Total December 31, 2014 $ 9,059 $ 4,762 $ (544,423 ) $ (530,602 ) Other comprehensive income (loss)before reclassifications (22,042 ) 6,732 (a) 2,943 (c) (12,367 ) Amount reclassified from accumulated other comprehensive income — (7,089 )(b) 22,328 (d) 15,239 Net current-period other comprehensive income (loss) (22,042 ) (357 ) 25,271 2,872 September 30, 2015 $ (12,983 ) $ 4,405 $ (519,152 ) $ (527,730 ) (a) This amount represents $10,658 of unrealized gains on cash flow hedges, net of tax of $3,926 that were recognized in Other Comprehensive Loss (see Footnote 5 for additional details). (b) This amount represents $11,342 of gains on cash flow hedges, net of tax of $4,253, that were reclassified out of Cumulative Other Comprehensive Loss and are included in Other non-operating income (expense) on the Condensed Consolidated Statements of Income (see Footnote 5 for additional details). (c) This amount represents $3,725 of other comprehensive income, net of tax of $782 that was recognized in Other Comprehensive Loss. (d) This amount represents amortization of prior service credit of $425 and amortization of actuarial losses of ($35,066) net of tax of $12,313, that were reclassified out of Cumulative Other Comprehensive Loss and are included in the computation of net periodic benefit cost (see Footnote 7 for additional details). |
Comprehensive Income Attribut31
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests | The following table provides the details of the comprehensive income attributable to noncontrolling shareholders’ interests: Three Months Ended Nine Months Ended 2014 2015 2014 2015 Net income attributable to noncontrolling shareholders’ interests $ 6,938 $ 473 $ 19,808 $ 2,769 Other comprehensive income: Currency translation adjustments (1,081 ) (2,377 ) (2,054 ) (4,030 ) Comprehensive income attributable to noncontrolling shareholders’ interests $ 5,857 $ (1,904 ) $ 17,754 $ (1,261 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Information on Operating Segments | The following table details information on the Company’s operating segments. Three Months Ended September 30, Nine Months Ended September 30, 2014 2015 2014 2015 Net sales Americas Tire External customers $ 677,444 $ 688,982 $ 1,846,403 $ 1,929,222 Intercompany 16,494 13,478 50,263 44,771 693,938 702,460 1,896,666 1,973,993 International Tire External customers 242,638 93,386 758,822 268,133 Intercompany 70,777 25,517 191,359 82,720 313,415 118,903 950,181 350,853 Eliminations (87,271 ) (38,995 ) (241,622 ) (127,491 ) Net sales $ 920,082 $ 782,368 $ 2,605,225 $ 2,197,355 Segment profit (loss): Americas Tire $ 75,618 $ 102,475 $ 209,080 $ 301,039 International Tire 22,787 (5,329 ) 72,394 (11,755 ) Unallocated corporate charges (7,912 ) (15,416 ) (32,223 ) (40,084 ) Eliminations (1,118 ) 437 (2,376 ) 2,749 Operating profit 89,375 82,167 246,875 251,949 Interest expense (7,050 ) (5,889 ) (20,960 ) (18,485 ) Interest income 305 533 1,088 1,609 Other non-operating income (expense) (1,253 ) 1,362 (787 ) 3,034 Income before income taxes $ 81,377 $ 78,173 $ 226,216 $ 238,107 |
Basis of Presentation and Con33
Basis of Presentation and Consolidation - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Consolidation And Basis Of Presentation [Line Items] | |
Line of Credit Facility, Terminated | $ 200,000,000 |
Revolving Credit Facility [Member] | |
Consolidation And Basis Of Presentation [Line Items] | |
Revolving credit facility, borrowing capacity | 400,000,000 |
Revolving credit facility, maximum additional borrowing capacity | 100,000,000 |
Accounts Receivable Securitization Facility [Member] | |
Consolidation And Basis Of Presentation [Line Items] | |
Accounts Receivable Securitization Facility, borrowing capacity | 150,000,000 |
Accounts Receivable Securitization Facility [Member] | Previously Reported [Member] | |
Consolidation And Basis Of Presentation [Line Items] | |
Accounts Receivable Securitization Facility, borrowing capacity | 175,000,000 |
Letter of Credit [Member] | Revolving Credit Facility [Member] | |
Consolidation And Basis Of Presentation [Line Items] | |
Revolving credit facility, borrowing capacity | $ 110,000,000 |
CCT Agreements - Additional Inf
CCT Agreements - Additional Information (Detail) - USD ($) | Nov. 30, 2014 | Sep. 30, 2014 | Aug. 24, 2014 | Dec. 31, 2014 |
Merger Related Items [Line Items] | ||||
Number of days for noncontrolling shareholder option price determined | 45 days | |||
CCT Agreement [Member] | ||||
Merger Related Items [Line Items] | ||||
Equity interest sale option price percentage | 65.00% | |||
Minimum value of joint venture | $ 435,000,000 | $ 435,000,000 | ||
Increase in shareholders interest | $ 28,285,000 | |||
Adjustment to the noncontrolling shareholders interest liability | 0 | $ 152,250,000 | ||
Valuation amount | $ 437,700,000 | |||
Redemption value of redeemable noncontrolling shareholder interest | 153,206,000 | |||
Carrying value of redeemable noncontrolling shareholder interest | $ 168,435,000 | |||
Proceeds from sale of ownership interest | 262,000,000 | |||
Gain on sale of ownership interest net of tax | $ 55,704,000 | |||
Chengshan Group Company Ltd [Member] | CCT Agreement [Member] | ||||
Merger Related Items [Line Items] | ||||
Purchase of equity interest | 65.00% | |||
Equity interest sale option price percentage | 35.00% | |||
Company's equity ownership percentage | 65.00% | |||
Noncontrolling interest's equity ownership percentage | 35.00% | 35.00% |
CCT Agreements - Summary of Eff
CCT Agreements - Summary of Effect of Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Sales | ||||
Net sales | $ 782,368 | $ 920,082 | $ 2,197,355 | $ 2,605,225 |
Operating Profit | 82,167 | 89,375 | 251,949 | 246,875 |
Net income attributable to Cooper Tire & Rubber Company | 53,176 | 47,699 | 153,520 | 131,315 |
Eliminations - Intercompany [Member] | ||||
Net Sales | ||||
Net sales | (38,995) | (87,271) | (127,491) | (241,622) |
Operating Profit | $ 437 | (1,118) | $ 2,749 | (2,376) |
CCT Agreement [Member] | ||||
Net Sales | ||||
Net sales | 188,432 | 578,375 | ||
Operating Profit | 23,482 | 69,735 | ||
Net income attributable to Cooper Tire & Rubber Company | 11,253 | 34,296 | ||
CCT Agreement [Member] | External Customers [Member] | ||||
Net Sales | ||||
Net sales | 150,387 | 479,239 | ||
CCT Agreement [Member] | Eliminations - Intercompany [Member] | ||||
Net Sales | ||||
Net sales | $ (38,045) | $ (99,136) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator | ||||
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $ 53,176 | $ 47,699 | $ 153,520 | $ 131,315 |
Denominator | ||||
Denominator for basic earnings per share - weighted average shares outstanding | 56,693 | 60,606 | 57,332 | 62,504 |
Effect of dilutive securities - stock options and other stock units | 539 | 1,023 | 602 | 969 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 57,232 | 61,629 | 57,934 | 63,473 |
Basic earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.94 | $ 0.79 | $ 2.68 | $ 2.10 |
Diluted earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.93 | $ 0.77 | $ 2.65 | $ 2.07 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 413,180 | $ 419,977 |
U.S. inventories, LIFO reserve | $ 81,099 | $ 126,231 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Effective portion of change in fair value of foreign currency forward contracts | $ 5,035,000 | $ 5,719,000 |
Maximum [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Maturities of forward contracts | 12 months | |
Foreign Exchange Contracts [Member] | ||
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items] | ||
Notional amount of the foreign currency derivative instruments | $ 158,062,000 | $ 170,750,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - Other Current Assets [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | $ 5,672 | $ 5,979 |
Designated as Hedging Instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | 5,267 | 5,979 |
Designated as Hedging Instruments [Member] | Gross Amounts Recognized [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | 5,400 | 6,483 |
Designated as Hedging Instruments [Member] | Gross Amounts Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | (133) | $ (504) |
Not Designated as Hedging Instruments [Member] | Gross Amounts Recognized [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | $ 405 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivatives Designated as Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | $ 5,712 | $ 5,808 | $ 10,658 | $ 4,119 |
Amount of Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) | 4,352 | 885 | 11,342 | 2,185 |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion) | (53) | 218 | 28 | 45 |
Not Designated as Hedging Instruments [Member] | Other Non-operating Income (Expense) [Member] | Foreign Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (879) | $ 314 | $ 405 | $ 270 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | $ 5,672 | $ 5,979 |
Stock Based Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | (18,526) | (19,079) |
Quoted Prices in Active Markets for Identical Assets Level (1) [Member] | Stock Based Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | (18,526) | (19,079) |
Significant Other Observable Inputs Level (2) [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Derivative Assets (Liabilities) | $ 5,672 | $ 5,979 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Carrying Value | $ 424,232 | $ 551,652 | $ 335,778 | $ 397,731 |
Notes receivable, Carrying Value | 10,917 | 4,546 | ||
Restricted cash, Carrying Value | 791 | 653 | ||
Notes payable, Carrying Value | (17,646) | (64,551) | ||
Current portion of long-term debt, Carrying Value | (600) | (2,115) | ||
Long-term debt, Carrying Value | (297,320) | (298,931) | ||
Quoted Prices in Active Markets for Identical Assets Level (1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Fair Value | 424,232 | 551,652 | ||
Notes receivable, Fair Value Disclosure | 10,917 | 4,546 | ||
Restricted cash, Carrying Value | 791 | 653 | ||
Notes payable, Fair Value Disclosure | (17,646) | (64,551) | ||
Current portion of long-term debt, Fair Value | (600) | (2,115) | ||
Long-term debt, Fair Value | $ (317,620) | $ (325,431) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense | $ 24,524 | $ 26,740 | $ 81,818 | $ 75,093 |
Effective tax rate for income tax expense | 31.40% | 32.90% | 34.40% | 33.20% |
U.S. federal statutory rate | 35.00% | |||
Valuation allowance amount | $ 33,280 | $ 33,280 | ||
Liability for uncertain tax positions noncurrent | 6,238 | 6,238 | ||
U.S. [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | 20,635 | 20,635 | ||
Foreign [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | $ 12,645 | $ 12,645 |
Pensions and Postretirement B44
Pensions and Postretirement Benefits Other than Pensions - Components of Net Periodic Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of actuarial loss | $ 11,708 | $ 35,066 | ||
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 628 | $ 601 | 1,884 | $ 1,803 |
Interest cost | 2,580 | 2,827 | 7,740 | 8,479 |
Amortization of prior service cost | (141) | (141) | (425) | (424) |
Net periodic benefit cost | 3,067 | 3,287 | 9,199 | 9,858 |
Pension Benefits - Domestic [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,759 | 2,440 | 8,278 | 7,320 |
Interest cost | 10,051 | 10,711 | 30,151 | 32,132 |
Expected return on plan assets | (13,665) | (13,136) | (40,995) | (39,407) |
Amortization of actuarial loss | 9,878 | 7,005 | 29,636 | 21,016 |
Net periodic benefit cost | 9,023 | 7,020 | 27,070 | 21,061 |
Pension Benefits - International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 3 | 7 | 9 |
Interest cost | 4,018 | 4,972 | 11,920 | 14,907 |
Expected return on plan assets | (3,148) | (5,063) | (9,339) | (15,178) |
Amortization of actuarial loss | 1,830 | 2,142 | 5,430 | 6,422 |
Net periodic benefit cost | $ 2,702 | $ 2,054 | $ 8,018 | $ 6,160 |
Product Warranty Liabilities -
Product Warranty Liabilities - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Product Warranties Disclosures [Abstract] | ||
Product Warranty, Reserve Beginning Balance | $ 14,005 | $ 30,853 |
Product Warranty, Additions | 7,106 | 13,983 |
Product Warranty, Payments | (8,272) | (14,886) |
Product Warranty, Reserve Ending Balance | $ 12,839 | $ 29,950 |
Product Warranty Liabilities 46
Product Warranty Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranty Liability [Line Items] | ||||
Product warranty accrual reserve | $ 12,839 | $ 29,950 | $ 14,005 | $ 30,853 |
Additions to product warranty accrual reserve | 7,106 | 13,983 | ||
Product warranty accrual payments | $ 8,272 | 14,886 | ||
CCT Agreement [Member] | ||||
Product Warranty Liability [Line Items] | ||||
Product warranty accrual reserve | $ 16,807 | |||
Additions to product warranty accrual reserve | 5,624 | |||
Product warranty accrual payments | $ 6,976 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | $ 843,792 | |||
Beginning Balance | 884,261 | |||
Beginning Balance | 40,469 | |||
Net income | $ 53,176 | $ 47,699 | 153,520 | $ 131,315 |
Net income | 53,649 | 54,637 | 156,289 | 151,123 |
Net income | 473 | 6,938 | 2,769 | 19,808 |
Other comprehensive income | (10,258) | $ 810 | (1,158) | 8,288 |
Share repurchase program | (82,800) | |||
Stock compensation plans | 27,047 | |||
Cash dividends - $0.315 per share | (17,998) | |||
Dividend paid to noncontrolling shareholder | (917) | $ (2,570) | ||
Ending Balance | 926,433 | 926,433 | ||
Ending Balance | 964,724 | 964,724 | ||
Ending Balance | 38,291 | 38,291 | ||
Total Parent Stockholders' Equity [Member] | ||||
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | 843,792 | |||
Net income | 153,520 | |||
Other comprehensive income | 2,872 | |||
Share repurchase program | (82,800) | |||
Stock compensation plans | 27,047 | |||
Cash dividends - $0.315 per share | (17,998) | |||
Ending Balance | 926,433 | 926,433 | ||
Noncontrolling Shareholders' Interests in Consolidated Subsidiaries [Member] | ||||
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | 40,469 | |||
Net income | 2,769 | |||
Other comprehensive income | (4,030) | |||
Dividend paid to noncontrolling shareholder | (917) | |||
Ending Balance | $ 38,291 | $ 38,291 |
Stockholders' Equity - Reconc48
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||||
Cash dividends per share | $ 0.105 | $ 0.105 | $ 0.315 | $ 0.315 |
Share Repurchase Programs - Add
Share Repurchase Programs - Additional Information (Detail) - USD ($) | Feb. 13, 2015 | Aug. 06, 2014 | Aug. 31, 2014 | Feb. 28, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Feb. 20, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock repurchased, shares | 2,110,633 | 8,462,481 | ||||||
Amount paid to counter party under share repurchase program | $ 82,800,000 | $ 200,000,000 | ||||||
Share repurchase, weighted average price | $ 33.42 | |||||||
Common stock repurchased, value | 82,800,000 | |||||||
Share repurchase, remaining amount authorized | $ 117,263,000 | $ 117,263,000 | ||||||
ASR Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Percentage of common shares initially delivered under share repurchase program | 80.00% | |||||||
Amount paid to counter party under share repurchase program | $ 200,000,000 | |||||||
Share repurchase, weighted average price | $ 31.49 | |||||||
ASR Program [Member] | Maximum [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized | 200,000,000 | |||||||
ASR Program [Member] | JP Morgan Securities LLC [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized | $ 200,000,000 | |||||||
Common stock repurchased, shares | 784,694 | 5,567,154 | 6,351,848 | |||||
New Share Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Share repurchase, amount authorized | $ 200,000,000 | |||||||
Share repurchase, weighted average price | $ 39.23 | |||||||
Common stock repurchased, value | $ 82,800,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation | $ 3,036 | $ 2,233 | $ 11,710 | $ 5,845 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation | 303 | 1,058 | 3,681 | 3,147 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation | 1,027 | 749 | 4,109 | 1,058 |
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock based compensation | $ 1,706 | $ 426 | $ 3,920 | $ 1,640 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 1 Months Ended | 9 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option long term incentive plan granted vesting portion per year | One-third each year | ||||
Performance stock units granted | 0 | ||||
Stock options, granted | 0 | ||||
Long-Term Incentive Plan 2013- 2015 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units granted | 330,639 | ||||
Long Term Incentive Plan 2014-2016 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance stock units granted | 380,064 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average fair value of option granted | $ 12.26 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of RSU's granted | 111,052 | ||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015-2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of RSU's granted | 105,102 | ||||
Weighted average fair value of RSU's granted | $ 36.78 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rate | 2.00% |
Dividend yield | 1.80% |
Expected volatility of the Company's common stock | 0.64% |
Expected life in years | 6 years |
Stock-Based Compensation - Deta
Stock-Based Compensation - Details of Stock Options Activity (Detail) | 9 Months Ended |
Sep. 30, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Beginning Balance | 1,765,922 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | (852,413) |
Number of Shares, Expired | (18,459) |
Number of Shares, Canceled | (53,632) |
Outstanding, Ending Balance | 841,418 |
Exercisable, Ending Balance | 513,059 |
Stock-Based Compensation - De54
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Units Outstanding, Beginning Balance | 197,838 |
Number of Stock Units, Granted | 111,052 |
Number of Stock Units, Vested | (95,047) |
Number of Stock Units, Canceled | (19,869) |
Number of Stock Units, Accrued dividend equivalents | 2,236 |
Number of Stock Units Outstanding, Ending Balance | 196,210 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Based Units Earned under Long-Term Incentive Plan (Detail) - Performance Stock Units [Member] | 9 Months Ended |
Sep. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Stock Units Outstanding, Beginning Balance | 83,515 |
Number of Stock Units, Granted | 117,789 |
Number of Stock Units, Canceled | (11,008) |
Number of Stock Units, Accrued dividend equivalents | 798 |
Number of Stock Units Outstanding, Ending Balance | 191,094 |
Changes in Cumulative Other C56
Changes in Cumulative Other Comprehensive Loss by Component - Changes in Cumulative Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (530,602) | |
Ending balance | $ (527,730) | (527,730) |
Cumulative Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 7,146 | 9,059 |
Other comprehensive income (loss) before reclassifications | (20,129) | (22,042) |
Net current-period other comprehensive income (loss) | (20,129) | (22,042) |
Ending balance | (12,983) | (12,983) |
Changes in the Fair Value of Derivatives and Unrealized Gains (Losses) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 3,550 | 4,762 |
Other comprehensive income (loss) before reclassifications | 3,548 | 6,732 |
Amount reclassified from accumulated other comprehensive loss | (2,693) | (7,089) |
Net current-period other comprehensive income (loss) | 855 | (357) |
Ending balance | 4,405 | 4,405 |
Unrecognized Postretirement Benefit Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (530,545) | (544,423) |
Other comprehensive income (loss) before reclassifications | 3,934 | 2,943 |
Amount reclassified from accumulated other comprehensive loss | 7,459 | 22,328 |
Net current-period other comprehensive income (loss) | 11,393 | 25,271 |
Ending balance | (519,152) | (519,152) |
Cumulative Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (519,849) | (530,602) |
Other comprehensive income (loss) before reclassifications | (12,647) | (12,367) |
Amount reclassified from accumulated other comprehensive loss | 4,766 | 15,239 |
Net current-period other comprehensive income (loss) | (7,881) | 2,872 |
Ending balance | $ (527,730) | $ (527,730) |
Changes in Cumulative Other C57
Changes in Cumulative Other Comprehensive Loss by Component - Changes in Cumulative Other Comprehensive Loss by Component (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of gain recognized in other comprehensive loss, tax portion | $ 505 | $ 1,942 | $ (327) | $ 856 |
Amount of gain reclassified from Cumulative Other Comprehensive Loss | 4,352 | 11,342 | ||
Income tax benefit (expense) on derivative instruments | 1,659 | 4,253 | ||
Other comprehensive income, pre-tax | 4,980 | 3,725 | ||
Other comprehensive loss, tax | 1,046 | 782 | ||
Amortization of prior service credit | 141 | 141 | 425 | 424 |
Amortization of actuarial loss | (11,708) | (35,066) | ||
Income tax provision on postretirement benefit plans | 4,108 | 3,075 | 12,313 | 9,267 |
Derivatives Designated as Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | 5,712 | $ 5,808 | 10,658 | $ 4,119 |
Amount of gain recognized in other comprehensive loss, tax portion | $ 2,164 | $ 3,926 |
Comprehensive Income Attribut58
Comprehensive Income Attributable to Noncontrolling Shareholders' Interests - Comprehensive Income Attributable to Noncontrolling Shareholders' Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net income attributable to noncontrolling shareholders' interests | $ 473 | $ 6,938 | $ 2,769 | $ 19,808 |
Other comprehensive income: | ||||
Currency translation adjustments | (2,377) | (1,081) | (4,030) | (2,054) |
Comprehensive income attributable to noncontrolling shareholders' interests | $ (1,904) | $ 5,857 | $ (1,261) | $ 17,754 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Tire | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
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 | 30,000,000 | ||||
Maximum estimated sale of passenger, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 35,000,000 | ||||
Estimated number of Company produced tires of different specifications | Tire | 300,000,000 | ||||
Product liability expenses, Minimum | $ 0 | ||||
Product liability expenses, Maximum | 33,000,000 | ||||
Increased its product liability reserve | 46,356,000 | ||||
Increase in product liability reserve due to self insured incidents | 36,593,000 | ||||
Increase (Decrease) in product liability reserve due to changes in estimated amounts on existing reserves | $ 9,763,000 | ||||
Period for resolution of few cases | 5 years | ||||
Company paid to resolve cases and claims | $ 17,888,000 | $ 51,346,000 | |||
Product liability reserve balance | 173,901,000 | 173,901,000 | $ 178,891,000 | ||
Current portion product liability reserve balance | 69,699,000 | 69,699,000 | $ 69,892,000 | ||
Product liability expenses | $ 20,067,000 | $ 21,227,000 | $ 63,604,000 | $ 62,039,000 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segment | 4 |
Business Segments - Information
Business Segments - Information on Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 782,368 | $ 920,082 | $ 2,197,355 | $ 2,605,225 |
Operating Profit | 82,167 | 89,375 | 251,949 | 246,875 |
Interest expense | (5,889) | (7,050) | (18,485) | (20,960) |
Interest income | 533 | 305 | 1,609 | 1,088 |
Other non-operating income (expense) | 1,362 | (1,253) | 3,034 | (787) |
Income before income taxes | 78,173 | 81,377 | 238,107 | 226,216 |
Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 688,982 | 677,444 | 1,929,222 | 1,846,403 |
Operating Profit | 102,475 | 75,618 | 301,039 | 209,080 |
International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 93,386 | 242,638 | 268,133 | 758,822 |
Operating Profit | (5,329) | 22,787 | (11,755) | 72,394 |
Eliminations - Intercompany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (38,995) | (87,271) | (127,491) | (241,622) |
Operating Profit | 437 | (1,118) | 2,749 | (2,376) |
Eliminations - Intercompany [Member] | Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 13,478 | 16,494 | 44,771 | 50,263 |
Eliminations - Intercompany [Member] | International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 25,517 | 70,777 | 82,720 | 191,359 |
Operating Segments [Member] | Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 702,460 | 693,938 | 1,973,993 | 1,896,666 |
Operating Segments [Member] | International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 118,903 | 313,415 | 350,853 | 950,181 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | $ (15,416) | $ (7,912) | $ (40,084) | $ (32,223) |