Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 26, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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 | 53,468,977 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 750,913 | $ 782,368 | $ 2,140,982 | $ 2,197,355 |
Cost of products sold | 597,961 | 628,414 | 1,657,932 | 1,751,754 |
Gross profit | 152,952 | 153,954 | 483,050 | 445,601 |
Selling, general and administrative expense | 63,262 | 71,787 | 192,339 | 193,652 |
Pension settlement charge | 11,462 | 11,462 | ||
Operating profit | 78,228 | 82,167 | 279,249 | 251,949 |
Interest expense | (6,795) | (5,889) | (19,717) | (18,485) |
Interest income | 1,018 | 533 | 2,907 | 1,609 |
Other non-operating income | 1,785 | 1,362 | 4,672 | 3,034 |
Income before income taxes | 74,236 | 78,173 | 267,111 | 238,107 |
Provision for income taxes | 23,757 | 24,524 | 86,509 | 81,818 |
Net income | 50,479 | 53,649 | 180,602 | 156,289 |
Net income attributable to noncontrolling shareholder interests | 1,176 | 473 | 1,545 | 2,769 |
Net income attributable to Cooper Tire & Rubber Company | $ 49,303 | $ 53,176 | $ 179,057 | $ 153,520 |
Basic earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.91 | $ 0.94 | $ 3.26 | $ 2.68 |
Diluted earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | 0.90 | 0.93 | 3.23 | 2.65 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 50,479 | $ 53,649 | $ 180,602 | $ 156,289 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | (10,946) | (22,506) | (36,137) | (26,072) |
Financial instruments | ||||
Change in the fair value of derivatives | 1,173 | 1,360 | (4,578) | (684) |
Income tax (provision) benefit on derivative instruments | (420) | (505) | 1,743 | 327 |
Financial instruments, net of tax | 753 | 855 | (2,835) | (357) |
Postretirement benefit plans | ||||
Amortization of actuarial loss | 10,820 | 11,708 | 32,690 | 35,066 |
Amortization of prior service credit | (141) | (141) | (424) | (425) |
Actuarial loss | (26,494) | (26,494) | ||
Pension settlement charge | 11,462 | 11,462 | ||
Income tax benefit (provision) on postretirement benefit plans | 6,314 | (4,108) | (1,366) | (12,313) |
Foreign currency translation effect | 2,513 | 3,934 | 9,748 | 2,943 |
Postretirement benefit plans, net of tax | 4,474 | 11,393 | 25,616 | 25,271 |
Other comprehensive income (loss) | (5,719) | (10,258) | (13,356) | (1,158) |
Comprehensive income | 44,760 | 43,391 | 167,246 | 155,131 |
Less: comprehensive loss attributable to noncontrolling shareholder interests | (144) | (1,904) | (1,571) | (1,261) |
Comprehensive income attributable to Cooper Tire & Rubber Company | $ 44,904 | $ 45,295 | $ 168,817 | $ 156,392 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 450,348 | $ 505,157 |
Notes receivable | 5,947 | 8,750 |
Accounts receivable, less allowances of $7,676 at 2016 and $7,533 at 2015 | 434,580 | 371,757 |
Inventories at lower of cost or market: | ||
Finished goods | 371,140 | 297,967 |
Work in process | 27,235 | 26,666 |
Raw materials and supplies | 97,720 | 87,928 |
Inventories at lower of cost or market | 496,095 | 412,561 |
Other current assets | 44,797 | 36,405 |
Total current assets | 1,431,767 | 1,334,630 |
Property, plant and equipment: | ||
Land and land improvements | 48,535 | 49,782 |
Buildings | 281,082 | 277,034 |
Machinery and equipment | 1,682,052 | 1,637,637 |
Molds, cores and rings | 222,466 | 236,370 |
Total property, plant and equipment | 2,234,135 | 2,200,823 |
Less: accumulated depreciation | 1,421,844 | 1,405,625 |
Net property, plant and equipment | 812,291 | 795,198 |
Goodwill | 18,851 | 18,851 |
Intangibles, net of accumulated amortization of $72,754 at 2016 and $62,274 at 2015 | 132,380 | 133,490 |
Restricted cash | 1,014 | 802 |
Deferred income tax assets | 133,990 | 136,310 |
Other assets | 15,575 | 16,895 |
Total assets | 2,545,868 | 2,436,176 |
Current liabilities: | ||
Notes payable | 12,222 | 12,437 |
Accounts payable | 225,662 | 215,850 |
Accrued liabilities | 221,258 | 199,368 |
Income taxes payable | 10,973 | 4,748 |
Current portion of long-term debt | 600 | 600 |
Total current liabilities | 470,715 | 433,003 |
Long-term debt | 295,874 | 296,412 |
Postretirement benefits other than pensions | 251,219 | 249,650 |
Pension benefits | 284,223 | 304,621 |
Other long-term liabilities | 145,048 | 132,594 |
Deferred income tax liabilities | 2,049 | 2,285 |
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 | 23,900 | 16,306 |
Retained earnings | 2,257,686 | 2,095,923 |
Accumulated other comprehensive loss | (520,007) | (509,767) |
Parent stockholders' equity before treasury stock | 1,849,429 | 1,690,312 |
Less: common shares in treasury at cost (34,185,177 at 2016 and 32,017,754 at 2015) | (788,677) | (711,064) |
Total parent stockholders' equity | 1,060,752 | 979,248 |
Noncontrolling shareholder interest in consolidated subsidiary | 35,988 | 38,363 |
Total equity | 1,096,740 | 1,017,611 |
Total liabilities and equity | $ 2,545,868 | $ 2,436,176 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 7,676 | $ 7,533 |
Accumulated amortization of intangibles | $ 72,754 | $ 62,274 |
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 | 34,185,177 | 32,017,754 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities: | ||
Net income | $ 180,602 | $ 156,289 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 96,928 | 90,588 |
Stock-based compensation | 11,800 | 11,710 |
Change in LIFO inventory reserve | (3,426) | (45,132) |
Amortization of unrecognized postretirement benefits | 32,266 | 34,641 |
Pension settlement charge | 11,462 | |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (67,940) | (66,628) |
Inventories | (89,877) | (5,762) |
Other current assets | (13,788) | (19,193) |
Accounts payable | 13,370 | (24,849) |
Accrued liabilities | 19,008 | 45,489 |
Other items | (13,725) | (43,911) |
Net cash provided by operating activities | 176,680 | 133,242 |
Investing activities: | ||
Additions to property, plant and equipment and capitalized software | (126,921) | (128,601) |
Proceeds from the sale of assets | 331 | 1,555 |
Net cash used in investing activities | (126,590) | (127,046) |
Financing activities: | ||
Net payments on short-term debt | (645) | (39,131) |
Repayments of long-term debt | (600) | (3,125) |
Payment of financing fees | (2,586) | |
Repurchase of common stock | (82,486) | (82,800) |
Payment of dividends to noncontrolling shareholder | (804) | (917) |
Payment of dividends to Cooper Tire & Rubber Company stockholders | (17,242) | (17,998) |
Issuance of common shares and excess tax benefits on stock options | 3,710 | 19,665 |
Net cash used in financing activities | (98,067) | (126,892) |
Effects of exchange rate changes on cash | (6,832) | (6,724) |
Net change in cash and cash equivalents | (54,809) | (127,420) |
Cash and cash equivalents at beginning of year | 505,157 | 551,652 |
Cash and cash equivalents at end of period | $ 450,348 | $ 424,232 |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2016 | |
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 U.S. GAAP 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, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. 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. Joint Venture Agreement On January 4, 2016, the Company announced that it had entered into an agreement to purchase a majority of China-based Qingdao Ge Rui Da Rubber Co., Ltd. (“GRT”). The Company will own 65 percent of the entity for 600,000 RMB, or approximately $92,000 as of the date the agreement was signed, including the acquisition and initial investments in the operation. The transaction is expected to close in the fourth quarter of 2016, pending certain permits and approvals by the Chinese government. In the first quarter, the Company made a down payment in the amount of $5,929 for this transaction in accordance with the purchase agreement. The down payment is fully refundable in the event that the transaction does not close and does not provide the Company with any power to direct the activities of the existing GRT entity prior to the transaction closing. The down payment is classified as a deposit within Other current assets on the balance sheet. After the acquisition, GRT is expected to serve as a global source of truck and bus radial tire production for the Company. Passenger car radial tires may also be manufactured at the facility in the future. 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 – To Be Adopted Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions of the standard include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard was proposed to be effective for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred 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. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations,” which clarifies that the determination of whether the reporting entity is a principal or an agent should be made for each specified good or service promised to the customer. In April 2016, the FASB issued ASU 2016-10 “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” which clarifies treatment related to immaterial items, shipping and handling activities, and assessing whether promised goods or services are distinct in identifying performance obligations. In May 2016, the FASB issued ASU 2016-12 “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients,” which provides additional guidance concerning collectibility, presentation of sales tax collected from customers, practical expedients with respect to contract modifications, and additional transition guidance. The new revenue recognition 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 standards will have on its condensed consolidated financial statements and related disclosures. 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. Leases – In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires balance sheet recognition of lease liabilities and right-of-use assets for most leases having terms of twelve months or longer. Application of the standard, which should be applied using a modified retrospective approach, is required for the annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Stock Compensation – In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. Application of the standard 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted earnings per share includes the dilutive effect of stock options and other stock units. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 49,303 $ 53,176 $ 179,057 $ 153,520 Denominator Denominator for basic earnings per share - weighted average shares outstanding 54,055 56,693 54,869 57,332 Effect of dilutive securities - stock options and other stock units 625 539 590 602 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 54,680 57,232 55,459 57,934 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.91 $ 0.94 $ 3.26 $ 2.68 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.90 $ 0.93 $ 3.23 $ 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, 2016 and 2015. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. 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 $433,004 and $361,779 at September 30, 2016 and December 31, 2015, respectively. These FIFO values have been reduced by approximately $69,697 and $73,123 at September 30, 2016 and December 31, 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, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. 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 September 30, 2016 and December 31, 2015 was $124,781 and $68,732, respectively. The counterparties to each of these agreements are major commercial banks. The Company uses non-designated foreign currency forward contracts to hedge its net foreign currency monetary assets and liabilities primarily resulting from non-functional currency denominated receivables and payables of certain U.S. and foreign entities. Foreign currency forward contracts are also used to hedge variable cash flows associated with forecasted sales and purchases denominated in currencies that are not the functional currency of certain entities. The forward contracts have maturities of less than twelve months pursuant to the Company’s policies and hedging practices. These forward contracts meet the criteria for and have been designated as cash flow hedges. Accordingly, the effective portion of the change in fair value of such forward contracts (approximately ($1,178) and $3,400 as of September 30, 2016 and December 31, 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 effectiveness, prospectively and retrospectively, based on regression of the change in foreign currency exchange rates. Time value of money is included in effectiveness testing. The Company measures ineffectiveness on a trade by trade basis, using the hypothetical derivative method. Any hedge ineffectiveness is recorded in the Condensed Consolidated Statements of Income in the period in which the ineffectiveness occurs. The derivative instruments are subject to master netting arrangements with the counterparties to the contracts. The following table presents the location and amounts of derivative instrument fair values in the Condensed Consolidated Balance Sheets: September 30, 2016 December 31, 2015 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ (1,260 ) $ 3,559 Gross amounts offset 82 (35 ) Net amounts $ (1,178 ) $ 3,524 Not designated as hedging instruments: Gross amounts recognized (214 ) 174 Net amounts presented: Accrued liabilities $ (1,392 ) $ — Other current assets $ — $ 3,698 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 Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedges 2016 2015 2016 2015 Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 599 $ 5,712 $ (3,757 ) $ 10,658 Amount of (Loss) Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) (574 ) 4,352 821 11,342 Amount of (Loss) Gain Recognized in Income on Derivatives (Ineffective Portion) — (53 ) — 28 Derivatives not Designated Location of Gain (Loss) Recognized in Income on Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended as Hedging Instruments Derivatives 2016 2015 2016 2015 Foreign exchange contracts Other non-operating income $ 330 $ (879 ) $ (645 ) $ 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 September 30, 2016 and December 31, 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: September 30, 2016 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Liabilities Level (1) Level (2) Level (3) Foreign Exchange Contracts $ (1,392 ) $ — $ (1,392 ) $ — Stock-based Liabilities $ (19,872 ) $ (19,872 ) $ — $ — December 31, 2015 Quoted Prices Significant in Active Markets Other Significant Total for Identical Observable Unobservable Assets Assets Inputs Inputs (Liabilities) Level (1) Level (2) Level (3) Foreign Exchange Contracts $ 3,698 $ — $ 3,698 $ — Stock-based Liabilities $ (18,057 ) $ (18,057 ) $ — $ — The fair market value of Cash and cash equivalents, Notes receivable, Restricted cash, Notes payable and Current portion of long-term debt at September 30, 2016 and December 31, 2015 are equal to their corresponding carrying values as reported on the Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively. Each of these classes of assets and liabilities is classified as Level 1 within the fair value hierarchy. The fair market value of Long-term debt is $332,121 and $323,522 at September 30, 2016 and December 31, 2015, respectively, and is classified within Level 1 of the fair value hierarchy. The carrying value of Long-term debt is $295,874 and $296,412 as reported on the Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes For the quarter ended September 30, 2016, the Company recorded income tax expense of $23,757 (effective rate of 32.0 percent) compared with $24,524 (effective rate of 31.4 percent) for the comparable period in 2015. For the nine-month period ended September 30, 2016, the Company recorded income tax expense of $86,509 (effective rate of 32.4 percent) compared with $81,818 (effective rate of 34.4 percent) for the comparable period in 2015. The 2016 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 comparable to the same period from the prior year on lower earnings primarily due to decreased discrete tax benefits recognized in the current period compared to the same period from the prior year. Income tax expense for the nine-month period is higher compared to the same period from the prior year due to increased earnings, partially offset by the benefit of a higher mix of earnings in international jurisdictions with lower tax rates. 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, 2016, as it cannot assure the utilization of these assets before they expire. In the U.S., the Company has offset a portion of its deferred tax asset relating primarily to a loss carryforward by a valuation allowance of $2,096. In addition, the Company has recorded valuation allowances of $12,799 relating to non-U.S. net operating losses for a total valuation allowance of $14,895. 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, 2016, the Company’s liability, exclusive of interest, totals approximately $3,756. The Company increased the amount of unrecognized tax benefits during the quarter primarily as a result of additional uncertain tax positions, partially offset by 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 possible that the ultimate resolution of these unrecognized tax benefits may result in a payment that is materially different from the current estimate of the tax liabilities. The Company and its subsidiaries are subject to income tax examination in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company has effectively settled U.S. federal tax examinations for years before 2013 and state and local examinations for years before 2011, with limited exceptions. Non-U.S. subsidiaries of the Company are no longer subject to income tax examinations in major foreign taxing jurisdictions for years prior to 2008. The income tax returns of various subsidiaries in various jurisdictions are currently under examination and it is possible that these examinations will conclude within the next twelve months. However, it is not possible to estimate net increases or decreases to the Company’s unrecognized tax benefits during the next twelve months. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | 6. 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, 2016 and 2015 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 2,403 $ 2,759 $ 7,210 $ 8,278 Interest cost 10,617 10,051 31,850 30,151 Expected return on plan assets (13,391 ) (13,665 ) (40,175 ) (40,995 ) Amortization of actuarial loss 9,576 9,878 28,729 29,636 Pension settlement charge 11,462 — 11,462 — Net periodic benefit cost $ 20,667 $ 9,023 $ 39,076 $ 27,070 Pension Benefits - International Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 7 $ 7 Interest cost 3,417 4,018 10,877 11,920 Expected return on plan assets (2,744 ) (3,148 ) (8,736 ) (9,339 ) Amortization of actuarial loss 1,244 1,830 3,961 5,430 Net periodic benefit cost $ 1,919 $ 2,702 $ 6,109 $ 8,018 Other Postretirement Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 537 $ 628 $ 1,611 $ 1,884 Interest cost 2,705 2,580 8,115 7,740 Amortization of prior service cost (141 ) (141 ) (424 ) (425 ) Net periodic benefit cost $ 3,101 $ 3,067 $ 9,302 $ 9,199 Pension Settlement Charge In order to reduce the size and potential future volatility of the Company’s domestic defined benefit pension plan obligations, the Company commenced an offer to approximately 1,200 former employees with deferred vested pension plan benefits. These former employees had the opportunity to make a one-time election to receive a lump-sum distribution of their benefits by the end of the third quarter of 2016. The vested benefit obligation associated with these former employees was approximately $42,000, equivalent to about 4 percent of the Company’s benefit obligation for the domestic plans. Cash payments of $22,701 were made from plan assets in September 2016 to the former employees electing the lump-sum distribution. These payments represented a reduction of approximately 2 percent of the Company’s benefit obligation for the domestic plans. Based on the lump-sum distributions that were paid, the Company incurred a non-cash settlement charge of $11,462 in the third quarter of 2016. |
Product Warranty Liabilities
Product Warranty Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Product Warranty Liabilities | 7. 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: 2016 2015 Reserve at beginning of year $ 12,339 $ 14,005 Additions 6,831 7,106 Payments (7,486 ) (8,272 ) Reserve at September 30 $ 11,684 $ 12,839 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 8. 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 interest: Total Equity Noncontrolling Total Shareholder Parent Interest in Total Stockholders’ Consolidated Stockholders’ Equity Subsidiary Equity Balance at December 31, 2015 $ 979,248 $ 38,363 $ 1,017,611 Net income 179,057 1,545 180,602 Other comprehensive income (loss) (10,240 ) (3,116 ) (13,356 ) Share repurchase program (82,486 ) — (82,486 ) Stock compensation plans 12,415 — 12,415 Cash dividends - $0.315 per share (17,242 ) — (17,242 ) Dividend paid to noncontrolling shareholder — (804 ) (804 ) Balance at September 30, 2016 $ 1,060,752 $ 35,988 $ 1,096,740 |
Share Repurchase Programs
Share Repurchase Programs | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Share Repurchase Programs | 9. 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, excluding commissions, of the Company’s common stock through December 31, 2016 (the “Repurchase Program”). The Repurchase Program did not obligate the Company to acquire any specific number of shares and could have been suspended or discontinued at any time without notice. Under the Repurchase Program, shares could have been repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During 2015, subsequent to the Board of Directors’ February 20, 2015 authorization, the Company repurchased 2,751,454 shares of the Company’s common stock under the Repurchase Program for $108,821, including applicable commissions, which represented an average price of $39.55 per share. As of December 31, 2015, approximately $91,261 remained of the $200,000 Repurchase Program. For the period January 1, 2016 through February 19, 2016, the Company repurchased an additional 497,094 shares of the Company’s common stock under the Repurchase Program for $17,622, including applicable commissions, which represented an average price of $35.45 per share. All repurchases under the Repurchase Program were made using cash resources. On February 19, 2016, the Board of Directors increased the amount under and expanded the duration of the Repurchase Program (as amended, the “Amended Repurchase Program”). The Amended Repurchase Program amended and superseded the Repurchase Program and allows the Company to repurchase up to $200,000, excluding commissions, of the Company’s common stock from February 22, 2016 through December 31, 2017. The approximately $73,654 remaining under the Repurchase Program as of February 19, 2016 is included in the $200,000 maximum amount authorized by the Amended Repurchase Program. No other changes were made. The Amended Repurchase Program does not obligate the Company to acquire any specific number of shares and can be suspended or discontinued at any time without notice. Under the Amended Repurchase Program, shares can be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. For the period February 22, 2016 through September 30, 2016, the Company repurchased 1,952,278 shares of the Company’s common stock under the Amended Repurchase Program for $64,864, including applicable commissions, which represented an average price of $33.22 per share. As of September 30, 2016, approximately $135,195 remained of the $200,000 Amended Repurchase Program. All repurchases under the Amended Repurchase Program were made using cash resources. In the first nine months of 2016, the Company repurchased 2,449,372 shares of the Company’s common stock under the Repurchase Program and the Amended Repurchase Program for $82,486, including applicable commissions, which represented an average price of $33.68 per share. Since the share repurchases began in August 2014 through September 30, 2016, the Company has repurchased 11,552,674 shares of the Company’s common stock at an average cost of $33.87 per share. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. 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 grant-date fair value and is amortized to expense over the vesting period. The Company recognizes compensation expense based on the earlier of the vesting date or the date when the employee becomes eligible to retire without forfeiture of the award. If awards can be settled in cash, these awards are recorded as liabilities and marked to market. The following table discloses the amount of stock-based compensation expense for the three- and nine-month periods ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock options $ 26 $ 303 $ 484 $ 3,681 Restricted stock units 1,348 1,027 5,117 4,109 Performance stock units 727 1,706 6,199 3,920 Total stock-based compensation $ 2,101 $ 3,036 $ 11,800 $ 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 three- or nine-month periods ended September 30, 2016 or 2015. The following table provides details of the stock option activity for the nine months ended September 30, 2016: Number of Outstanding at December 31, 2015 668,132 Exercised (153,614 ) Expired (1,596 ) Canceled (4,398 ) Outstanding at September 30, 2016 508,524 Exercisable 394,297 Restricted Stock Units Under the 1998, 2001, 2006, 2010 and 2014 Incentive Compensation Plans, restricted stock units may be granted to officers and certain other employees. In February 2016, employees participating in the 2016-2018 Long-Term Incentive Plan were granted 106,287 restricted stock units which vest one-third each year through February 2019. In February 2015, employees participating in the 2015-2017 Long-Term Incentive Plan were granted 105,102 restricted stock units which vest one-third each year through February 2018. Additional awards have been granted outside of the Long-Term Incentive Plans. 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 weighted average fair values of all restricted stock units granted in 2016 and 2015 were $36.02 and $36.78, respectively. The following table provides details of the nonvested restricted stock unit activity for the nine months ended September 30, 2016: Number of Nonvested at December 31, 2015 197,388 Granted 143,169 Vested (99,697 ) Canceled (1,637 ) Accrued dividend equivalents 2,484 Nonvested at September 30, 2016 241,707 Performance Stock Units Employees participating in the Company’s Long-Term Incentive Plan earn performance stock units. Under the Company’s 2016 – 2018 Long-Term Incentive Plan, any units earned during 2016 will vest at December 31, 2018. Under the Company’s 2015 – 2017 Long-Term Incentive Plan, any units earned during 2015 and 2016 will vest at December 31, 2017. Under the Company’s 2014 – 2016 Long-Term Incentive Plan, any units earned during 2014, 2015 and 2016 will vest at December 31, 2016. The following table provides details of the nonvested performance stock units under the Company’s Long-Term Incentive Plan: Number of Performance stock units outstanding at December 31, 2015 191,536 Granted 109,581 Canceled (18,874 ) Accrued dividend equivalents 1,886 Performance stock units outstanding at September 30, 2016 284,129 The Company’s restricted stock units and performance stock units are not participating securities. These units will be converted into shares of Company common stock in accordance with the distribution date indicated in the agreements. Restricted stock units earn dividend equivalents from the time of the award until distribution is made in common shares. Performance stock units earn dividend equivalents from the time the units have been notionally earned based upon Company performance metrics, until distribution is made in common shares. Dividend equivalents are only earned subject to vesting of the underlying restricted stock units and performance stock units. Accordingly, such units do not represent participating securities. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss by Component | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | 11. Changes in Accumulated Other Comprehensive Loss by Component The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three- and nine-month periods ended September 30, 2016 and 2015, respectively. Cumulative Derivative Post- Total Beginning balance, June 30, 2016 (45,429 ) (134 ) (470,045 ) (515,608 ) Other comprehensive (loss) income before reclassifications (9,626 ) 599 (26,494 ) (35,521 ) Foreign currency translation effect — — 2,513 2,513 Income tax effect — (211 ) 10,134 9,923 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 574 — 574 Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,820 10,820 Pension settlement charge — — 11,462 11,462 Income tax effect — (209 ) (3,820 ) (4,029 ) Other comprehensive (loss) income (9,626 ) 753 4,474 (4,399 ) Ending balance September 30, 2016 (55,055 ) 619 (465,571 ) (520,007 ) Cumulative Derivative Post- Total Beginning balance, June 30, 2015 7,146 3,550 (530,545 ) (519,849 ) Other comprehensive (loss) income before reclassifications (20,129 ) 5,712 3,934 (10,483 ) Income tax effect — (2,164 ) — (2,164 ) Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (4,352 ) — (4,352 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 11,708 11,708 Income tax effect — 1,659 (4,108 ) (2,449 ) Other comprehensive (loss) income (20,129 ) 855 11,393 (7,881 ) Ending balance September 30, 2015 (12,983 ) 4,405 (519,152 ) (527,730 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (33,021 ) (3,757 ) (26,494 ) (63,272 ) Foreign currency translation effect — — 9,748 9,748 Income tax effect — 1,448 10,134 11,582 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (821 ) — (821 ) Amortization of prior service credit — — (424 ) (424 ) Amortization of actuarial losses — — 32,690 32,690 Pension settlement charge — — 11,462 11,462 Income tax effect — 295 (11,500 ) (11,205 ) Other comprehensive (loss) income (33,021 ) (2,835 ) 25,616 (10,240 ) Ending balance September 30, 2016 (55,055 ) 619 (465,571 ) (520,007 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2014 9,059 4,762 (544,423 ) (530,602 ) Other comprehensive (loss) income before reclassifications (22,042 ) 10,658 2,943 (8,441 ) Income tax effect — (3,926 ) — (3,926 ) Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (11,342 ) — (11,342 ) Amortization of prior service credit — — (425 ) (425 ) Amortization of actuarial losses — — 35,066 35,066 Income tax effect — 4,253 (12,313 ) (8,060 ) Other comprehensive (loss) income (22,042 ) (357 ) 25,271 2,872 Ending balance September 30, 2015 (12,983 ) 4,405 (519,152 ) (527,730 ) |
Comprehensive Income Attributab
Comprehensive Income Attributable to Noncontrolling Shareholder Interests | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholder Interests | 12. Comprehensive Income Attributable to Noncontrolling Shareholder Interests The following table provides the details of the comprehensive income attributable to noncontrolling shareholder interests: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income attributable to noncontrolling shareholder interests $ 1,176 $ 473 $ 1,545 $ 2,769 Other comprehensive loss: Currency translation adjustments (1,320 ) (2,377 ) (3,116 ) (4,030 ) Comprehensive loss attributable to noncontrolling shareholder interests $ (144 ) $ (1,904 ) $ (1,571 ) $ (1,261 ) |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 13. 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 car, light truck, SUV, radial medium truck and motorcycle tires per year in North America. The Company estimates that approximately 300 million Company-produced tires – made up of thousands of different specifications – are still on the road in North America. While tire disablements do occur, it is the Company’s and the tire industry’s experience that the vast majority of tire failures relate to service-related conditions, which are entirely out of the Company’s control – such as failure to maintain proper tire pressure, improper maintenance, 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 2016, the Company increased its product liability reserve by $36,911. The addition of another year of self-insured incidents accounted for $36,769 of this increase. Settlements and changes in the amount of reserves for cases where sufficient information is known to estimate a liability increased by $593. 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 $4,485 during the third quarter of 2016 to resolve cases and claims and has paid $17,831 through the first nine months of 2016. The Company’s product liability reserve balance at September 30, 2016 totaled $183,651 (the current portion of $80,712 is included in Accrued liabilities and the long-term portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets), and the balance at December 31, 2015 totaled $163,890 (current portion of $74,018). 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, 2016 and 2015, product liability expenses totaled $17,884 and $20,067, respectively. For the nine-month periods ended September 30, 2016 and 2015, product liability expenses totaled $52,899 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 alleged that the Company and certain officers violated the federal securities laws by issuing allegedly misleading disclosures in connection with the terminated transaction and sought, among other things, damages. On July 1, 2015, the district court dismissed the plaintiffs’ amended complaint and closed the case. On August 22, 2016, the United States Court of Appeals for the Third Circuit affirmed the judgment of the district court. 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 stockholder 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 stockholder 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. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | 14. Business Segments The Company has four segments under ASC 280, “Segments”: • North America, composed of the Company’s operations in the United States and Canada; • Latin America, composed of the Company’s operations in Mexico, Central America and South America; • Europe; and • Asia. North America and Latin America meet the criteria for aggregation in accordance with ASC 280, as they are similar in their production and distribution processes and exhibit similar economic characteristics. The aggregated North America and Latin America segments are presented as “Americas Tire Operations” in the segment disclosure. The Americas Tire Operations segment manufactures and markets passenger car and light truck tires, primarily for sale in the U.S. replacement market. The segment also has a joint venture manufacturing operation in Mexico, Corporacion de Occidente SA de CV (“COOCSA”), which supplies passenger car tires to the U.S., Mexican, Central American and South American markets. The segment also distributes tires for racing, medium truck and motorcycles. The racing and motorcycle tires are manufactured in the Company’s European Operations segment and by others. The medium truck tires are sourced predominantly through an off-take agreement with Cooper Chengshan (Shandong) Tire Company Ltd. (“CCT”), the Company’s former joint venture, which is now known as Prinx Chengshan (Shandong) Tire Company Ltd. 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 Operations”. The European operations have operations in the U.K. and Serbia. The U.K. entity manufactures and markets passenger car, light truck, motorcycle and racing tires and tire retread material for domestic and global markets. The Serbian entity manufactures light vehicle tires primarily for the European markets and for export to the U.S. The Asian operations are located in the People’s Republic of China (“PRC”). In the PRC, Cooper Kunshan Tire manufactures light vehicle tires both for export to markets outside of the PRC and for 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 from this entity. 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 following table details information on the Company’s operating segments. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Americas Tire External customers $ 658,727 $ 688,982 $ 1,866,926 $ 1,929,222 Intercompany 13,914 13,478 39,773 44,771 672,641 702,460 1,906,699 1,973,993 International Tire External customers 92,186 93,386 274,056 268,133 Intercompany 20,603 25,517 65,637 82,720 112,789 118,903 339,693 350,853 Eliminations (34,517 ) (38,995 ) (105,410 ) (127,491 ) Consolidated net sales $ 750,913 $ 782,368 $ 2,140,982 $ 2,197,355 Operating profit (loss): Americas Tire $ 101,522 $ 102,475 $ 323,667 $ 301,039 International Tire 3,265 (5,329 ) 4,645 (11,755 ) Unallocated corporate charges (26,442 ) (15,416 ) (48,191 ) (40,084 ) Eliminations (117 ) 437 (872 ) 2,749 Operating profit 78,228 82,167 279,249 251,949 Interest expense (6,795 ) (5,889 ) (19,717 ) (18,485 ) Interest income 1,018 533 2,907 1,609 Other non-operating income 1,785 1,362 4,672 3,034 Income before income taxes $ 74,236 $ 78,173 $ 267,111 $ 238,107 |
Basis of Presentation and Con21
Basis of Presentation and Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP 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, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016. 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. |
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 – To Be Adopted Revenue Recognition – In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers in an amount that the entity expects to be entitled to in exchange for those goods or services. The standard provides a five-step model to determine when and how revenue is recognized. Other major provisions of the standard include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The standard also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard was proposed to be effective for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which deferred 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. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations,” which clarifies that the determination of whether the reporting entity is a principal or an agent should be made for each specified good or service promised to the customer. In April 2016, the FASB issued ASU 2016-10 “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing,” which clarifies treatment related to immaterial items, shipping and handling activities, and assessing whether promised goods or services are distinct in identifying performance obligations. In May 2016, the FASB issued ASU 2016-12 “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients,” which provides additional guidance concerning collectibility, presentation of sales tax collected from customers, practical expedients with respect to contract modifications, and additional transition guidance. The new revenue recognition 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 standards will have on its condensed consolidated financial statements and related disclosures. 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. Leases – In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires balance sheet recognition of lease liabilities and right-of-use assets for most leases having terms of twelve months or longer. Application of the standard, which should be applied using a modified retrospective approach, is required for the annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. Stock Compensation – In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which requires all excess tax benefits or deficiencies to be recognized as income tax expense or benefit in the income statement. In addition, excess tax benefits should be classified along with other income tax cash flows as an operating activity in the statement of cash flows. Application of the standard 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 2016 2015 2016 2015 Numerator Numerator for basic and diluted earnings per share - Net income attributable to common stockholders $ 49,303 $ 53,176 $ 179,057 $ 153,520 Denominator Denominator for basic earnings per share - weighted average shares outstanding 54,055 56,693 54,869 57,332 Effect of dilutive securities - stock options and other stock units 625 539 590 602 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 54,680 57,232 55,459 57,934 Basic earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.91 $ 0.94 $ 3.26 $ 2.68 Diluted earnings per share: Net income attributable to Cooper Tire & Rubber Company common stockholders $ 0.90 $ 0.93 $ 3.23 $ 2.65 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 December 31, 2015 Assets/(liabilities) Designated as hedging instruments: Gross amounts recognized $ (1,260 ) $ 3,559 Gross amounts offset 82 (35 ) Net amounts $ (1,178 ) $ 3,524 Not designated as hedging instruments: Gross amounts recognized (214 ) 174 Net amounts presented: Accrued liabilities $ (1,392 ) $ — Other current assets $ — $ 3,698 |
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 Nine Months Ended September 30, Derivatives Designated as Cash Flow Hedges 2016 2015 2016 2015 Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) $ 599 $ 5,712 $ (3,757 ) $ 10,658 Amount of (Loss) Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) (574 ) 4,352 821 11,342 Amount of (Loss) Gain Recognized in Income on Derivatives (Ineffective Portion) — (53 ) — 28 Derivatives not Designated Location of Gain (Loss) Recognized in Income on Amount of Gain (Loss) Recognized in Income on Derivatives Three Months Ended September 30, Nine Months Ended as Hedging Instruments Derivatives 2016 2015 2016 2015 Foreign exchange contracts Other non-operating income $ 330 $ (879 ) $ (645 ) $ 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: September 30, 2016 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Assets Inputs Inputs Liabilities Level (1) Level (2) Level (3) Foreign Exchange Contracts $ (1,392 ) $ — $ (1,392 ) $ — Stock-based Liabilities $ (19,872 ) $ (19,872 ) $ — $ — December 31, 2015 Quoted Prices Significant in Active Markets Other Significant Total for Identical Observable Unobservable Assets Assets Inputs Inputs (Liabilities) Level (1) Level (2) Level (3) Foreign Exchange Contracts $ 3,698 $ — $ 3,698 $ — Stock-based Liabilities $ (18,057 ) $ (18,057 ) $ — $ — |
Pensions and Postretirement B24
Pensions and Postretirement Benefits Other than Pensions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 and 2015 for the Company’s defined benefit plans and other postretirement benefits: Pension Benefits - Domestic Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 2,403 $ 2,759 $ 7,210 $ 8,278 Interest cost 10,617 10,051 31,850 30,151 Expected return on plan assets (13,391 ) (13,665 ) (40,175 ) (40,995 ) Amortization of actuarial loss 9,576 9,878 28,729 29,636 Pension settlement charge 11,462 — 11,462 — Net periodic benefit cost $ 20,667 $ 9,023 $ 39,076 $ 27,070 Pension Benefits - International Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 2 $ 2 $ 7 $ 7 Interest cost 3,417 4,018 10,877 11,920 Expected return on plan assets (2,744 ) (3,148 ) (8,736 ) (9,339 ) Amortization of actuarial loss 1,244 1,830 3,961 5,430 Net periodic benefit cost $ 1,919 $ 2,702 $ 6,109 $ 8,018 Other Postretirement Benefits Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 537 $ 628 $ 1,611 $ 1,884 Interest cost 2,705 2,580 8,115 7,740 Amortization of prior service cost (141 ) (141 ) (424 ) (425 ) Net periodic benefit cost $ 3,101 $ 3,067 $ 9,302 $ 9,199 |
Product Warranty Liabilities (T
Product Warranty Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Summary of Activity in Product Warranty Liabilities | The following table summarizes the activity in the Company’s product warranty liabilities: 2016 2015 Reserve at beginning of year $ 12,339 $ 14,005 Additions 6,831 7,106 Payments (7,486 ) (8,272 ) Reserve at September 30 $ 11,684 $ 12,839 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 interest: Total Equity Noncontrolling Total Shareholder Parent Interest in Total Stockholders’ Consolidated Stockholders’ Equity Subsidiary Equity Balance at December 31, 2015 $ 979,248 $ 38,363 $ 1,017,611 Net income 179,057 1,545 180,602 Other comprehensive income (loss) (10,240 ) (3,116 ) (13,356 ) Share repurchase program (82,486 ) — (82,486 ) Stock compensation plans 12,415 — 12,415 Cash dividends - $0.315 per share (17,242 ) — (17,242 ) Dividend paid to noncontrolling shareholder — (804 ) (804 ) Balance at September 30, 2016 $ 1,060,752 $ 35,988 $ 1,096,740 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 and 2015: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Stock options $ 26 $ 303 $ 484 $ 3,681 Restricted stock units 1,348 1,027 5,117 4,109 Performance stock units 727 1,706 6,199 3,920 Total stock-based compensation $ 2,101 $ 3,036 $ 11,800 $ 11,710 |
Details of Stock Options Activity | The following table provides details of the stock option activity for the nine months ended September 30, 2016: Number of Outstanding at December 31, 2015 668,132 Exercised (153,614 ) Expired (1,596 ) Canceled (4,398 ) Outstanding at September 30, 2016 508,524 Exercisable 394,297 |
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, 2016: Number of Nonvested at December 31, 2015 197,388 Granted 143,169 Vested (99,697 ) Canceled (1,637 ) Accrued dividend equivalents 2,484 Nonvested at September 30, 2016 241,707 |
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 Plan: Number of Performance stock units outstanding at December 31, 2015 191,536 Granted 109,581 Canceled (18,874 ) Accrued dividend equivalents 1,886 Performance stock units outstanding at September 30, 2016 284,129 |
Changes in Accumulated Other 28
Changes in Accumulated Other Comprehensive Loss by Component (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present the changes in Accumulated Other Comprehensive Loss by Component for the three- and nine-month periods ended September 30, 2016 and 2015, respectively. Cumulative Derivative Post- Total Beginning balance, June 30, 2016 (45,429 ) (134 ) (470,045 ) (515,608 ) Other comprehensive (loss) income before reclassifications (9,626 ) 599 (26,494 ) (35,521 ) Foreign currency translation effect — — 2,513 2,513 Income tax effect — (211 ) 10,134 9,923 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — 574 — 574 Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 10,820 10,820 Pension settlement charge — — 11,462 11,462 Income tax effect — (209 ) (3,820 ) (4,029 ) Other comprehensive (loss) income (9,626 ) 753 4,474 (4,399 ) Ending balance September 30, 2016 (55,055 ) 619 (465,571 ) (520,007 ) Cumulative Derivative Post- Total Beginning balance, June 30, 2015 7,146 3,550 (530,545 ) (519,849 ) Other comprehensive (loss) income before reclassifications (20,129 ) 5,712 3,934 (10,483 ) Income tax effect — (2,164 ) — (2,164 ) Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (4,352 ) — (4,352 ) Amortization of prior service credit — — (141 ) (141 ) Amortization of actuarial losses — — 11,708 11,708 Income tax effect — 1,659 (4,108 ) (2,449 ) Other comprehensive (loss) income (20,129 ) 855 11,393 (7,881 ) Ending balance September 30, 2015 (12,983 ) 4,405 (519,152 ) (527,730 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2015 (22,034 ) 3,454 (491,187 ) (509,767 ) Other comprehensive (loss) income before reclassifications (33,021 ) (3,757 ) (26,494 ) (63,272 ) Foreign currency translation effect — — 9,748 9,748 Income tax effect — 1,448 10,134 11,582 Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (821 ) — (821 ) Amortization of prior service credit — — (424 ) (424 ) Amortization of actuarial losses — — 32,690 32,690 Pension settlement charge — — 11,462 11,462 Income tax effect — 295 (11,500 ) (11,205 ) Other comprehensive (loss) income (33,021 ) (2,835 ) 25,616 (10,240 ) Ending balance September 30, 2016 (55,055 ) 619 (465,571 ) (520,007 ) Cumulative Derivative Post- Total Beginning balance, December 31, 2014 9,059 4,762 (544,423 ) (530,602 ) Other comprehensive (loss) income before reclassifications (22,042 ) 10,658 2,943 (8,441 ) Income tax effect — (3,926 ) — (3,926 ) Amount reclassified from accumulated other comprehensive income (loss) Cash flow hedges — (11,342 ) — (11,342 ) Amortization of prior service credit — — (425 ) (425 ) Amortization of actuarial losses — — 35,066 35,066 Income tax effect — 4,253 (12,313 ) (8,060 ) Other comprehensive (loss) income (22,042 ) (357 ) 25,271 2,872 Ending balance September 30, 2015 (12,983 ) 4,405 (519,152 ) (527,730 ) |
Comprehensive Income Attribut29
Comprehensive Income Attributable to Noncontrolling Shareholder Interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Comprehensive Income Attributable to Noncontrolling Shareholder Interests | The following table provides the details of the comprehensive income attributable to noncontrolling shareholder interests: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net income attributable to noncontrolling shareholder interests $ 1,176 $ 473 $ 1,545 $ 2,769 Other comprehensive loss: Currency translation adjustments (1,320 ) (2,377 ) (3,116 ) (4,030 ) Comprehensive loss attributable to noncontrolling shareholder interests $ (144 ) $ (1,904 ) $ (1,571 ) $ (1,261 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Information on Operating Segments | The following table details information on the Company’s operating segments. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Americas Tire External customers $ 658,727 $ 688,982 $ 1,866,926 $ 1,929,222 Intercompany 13,914 13,478 39,773 44,771 672,641 702,460 1,906,699 1,973,993 International Tire External customers 92,186 93,386 274,056 268,133 Intercompany 20,603 25,517 65,637 82,720 112,789 118,903 339,693 350,853 Eliminations (34,517 ) (38,995 ) (105,410 ) (127,491 ) Consolidated net sales $ 750,913 $ 782,368 $ 2,140,982 $ 2,197,355 Operating profit (loss): Americas Tire $ 101,522 $ 102,475 $ 323,667 $ 301,039 International Tire 3,265 (5,329 ) 4,645 (11,755 ) Unallocated corporate charges (26,442 ) (15,416 ) (48,191 ) (40,084 ) Eliminations (117 ) 437 (872 ) 2,749 Operating profit 78,228 82,167 279,249 251,949 Interest expense (6,795 ) (5,889 ) (19,717 ) (18,485 ) Interest income 1,018 533 2,907 1,609 Other non-operating income 1,785 1,362 4,672 3,034 Income before income taxes $ 74,236 $ 78,173 $ 267,111 $ 238,107 |
Basis of Presentation and Con31
Basis of Presentation and Consolidation - Additional Information (Detail) - GRT Joint Venture Agreement [Member] ¥ in Thousands, $ in Thousands | Jan. 04, 2016USD ($) | Jan. 04, 2016CNY (¥) | Sep. 30, 2016USD ($) |
Consolidation And Basis Of Presentation [Line Items] | |||
Expected percentage ownership in joint venture upon closure of acquisition | 65.00% | 65.00% | |
Expected aggregate cost of joint venture upon closure of acquisition | $ 92,000 | ¥ 600,000 | |
Down payment, for purchase agreement | $ 5,929 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator | ||||
Numerator for basic and diluted earnings per share - Net income attributable to common stockholders | $ 49,303 | $ 53,176 | $ 179,057 | $ 153,520 |
Denominator | ||||
Denominator for basic earnings per share - weighted average shares outstanding | 54,055 | 56,693 | 54,869 | 57,332 |
Effect of dilutive securities - stock options and other stock units | 625 | 539 | 590 | 602 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 54,680 | 57,232 | 55,459 | 57,934 |
Basic earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.91 | $ 0.94 | $ 3.26 | $ 2.68 |
Diluted earnings per share: | ||||
Net income attributable to Cooper Tire & Rubber Company common stockholders | $ 0.90 | $ 0.93 | $ 3.23 | $ 2.65 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Current cost of U.S. inventories under FIFO | $ 433,004 | $ 361,779 |
U.S. inventories, LIFO reserve | $ 69,697 | $ 73,123 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
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 | $ 1,178,000 | $ 3,400,000 |
Long-term debt, Carrying Value | 295,874,000 | 296,412,000 |
Long-term debt, Fair Value | $ 332,121,000 | 323,522,000 |
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 | $ 124,781,000 | $ 68,732,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Gross Position of Derivative Contracts in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | $ 3,698 | |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | $ (1,392) | |
Designated as Hedging Instruments [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | (1,178) | 3,524 |
Designated as Hedging Instruments [Member] | Other Current Assets [Member] | Gross Amounts Recognized [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | (1,260) | 3,559 |
Designated as Hedging Instruments [Member] | Other Current Assets [Member] | Gross Amounts Offset [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | 82 | (35) |
Not Designated as Hedging Instruments [Member] | Other Current Assets [Member] | Gross Amounts Recognized [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives Assets/ (liabilities) as hedging instruments | $ (214) | $ 174 |
Fair Value Measurements - Gains
Fair Value Measurements - Gains and Losses on Derivative Instruments in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivatives Designated as Cash Flow Hedges [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | $ 599 | $ 5,712 | $ (3,757) | $ 10,658 |
Amount of (Loss) Gain Reclassified from Cumulative Other Comprehensive Loss into Income (Effective Portion) | (574) | 4,352 | 821 | 11,342 |
Amount of (Loss) Gain Recognized in Income on Derivatives (Ineffective Portion) | (53) | 28 | ||
Not Designated as Hedging Instruments [Member] | Other Non-operating Income [Member] | Foreign Exchange Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 330 | $ (879) | $ (645) | $ 405 |
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, 2016 | Dec. 31, 2015 |
Foreign Exchange Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | $ (1,392) | $ 3,698 |
Stock Based Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets (Liabilities) | (19,872) | (18,057) |
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 Assets (Liabilities) | (19,872) | (18,057) |
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 Assets (Liabilities) | $ (1,392) | $ 3,698 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | ||||
Income tax expense | $ 23,757 | $ 24,524 | $ 86,509 | $ 81,818 |
Effective tax rate for income tax expense | 32.00% | 31.40% | 32.40% | 34.40% |
U.S. federal statutory rate | 35.00% | |||
Valuation allowance amount | $ 14,895 | $ 14,895 | ||
Liability for uncertain tax positions noncurrent | 3,756 | 3,756 | ||
U.S. [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | 2,096 | 2,096 | ||
Foreign [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Valuation allowance amount | $ 12,799 | $ 12,799 |
Pensions and Postretirement B39
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension settlement charge | $ 11,462 | $ 11,462 | ||
Other Postretirement Benefits - All Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 537 | $ 628 | 1,611 | $ 1,884 |
Interest cost | 2,705 | 2,580 | 8,115 | 7,740 |
Amortization of prior service cost | (141) | (141) | (424) | (425) |
Net periodic benefit cost | 3,101 | 3,067 | 9,302 | 9,199 |
Pension Benefits - Domestic [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,403 | 2,759 | 7,210 | 8,278 |
Interest cost | 10,617 | 10,051 | 31,850 | 30,151 |
Expected return on plan assets | (13,391) | (13,665) | (40,175) | (40,995) |
Amortization of actuarial loss | 9,576 | 9,878 | 28,729 | 29,636 |
Pension settlement charge | 11,462 | 11,462 | ||
Net periodic benefit cost | 20,667 | 9,023 | 39,076 | 27,070 |
Pension Benefits - International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 2 | 7 | 7 |
Interest cost | 3,417 | 4,018 | 10,877 | 11,920 |
Expected return on plan assets | (2,744) | (3,148) | (8,736) | (9,339) |
Amortization of actuarial loss | 1,244 | 1,830 | 3,961 | 5,430 |
Net periodic benefit cost | $ 1,919 | $ 2,702 | $ 6,109 | $ 8,018 |
Pensions and Postretirement B40
Pensions and Postretirement Benefits Other than Pensions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($)Employee | Sep. 30, 2016USD ($)Employee | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of former employees | Employee | 1,200 | 1,200 |
Defined benefit pension plans vested obligation | $ 42,000 | |
Cash payment from plan asset | 22,701 | |
Defined benefit plan, non-cash settlement | $ 11,462 | $ 11,462 |
Pension Benefits - Domestic [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit pension plans, domestic plan percentage | 4.00% | |
Defined benefit plan, non-cash settlement | $ 11,462 | $ 11,462 |
Product Warranty Liabilities -
Product Warranty Liabilities - Summary of Activity in Product Warranty Liabilities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Product Warranty, Reserve Beginning Balance | $ 12,339 | $ 14,005 |
Product Warranty, Additions | 6,831 | 7,106 |
Product Warranty, Payments | (7,486) | (8,272) |
Product Warranty, Reserve Ending Balance | $ 11,684 | $ 12,839 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | $ 979,248 | |||
Beginning Balance | 1,017,611 | |||
Beginning Balance | 38,363 | |||
Net income | $ 49,303 | $ 53,176 | 179,057 | $ 153,520 |
Net income | 50,479 | 53,649 | 180,602 | 156,289 |
Net income | 1,176 | 473 | 1,545 | 2,769 |
Other comprehensive income (loss) | (5,719) | $ (10,258) | (13,356) | $ (1,158) |
Share repurchase program | (82,486) | |||
Stock compensation plans | 12,415 | |||
Cash dividends - $0.315 per share | (17,242) | |||
Dividend paid to noncontrolling shareholder | (804) | |||
Ending Balance | 1,060,752 | 1,060,752 | ||
Ending Balance | 1,096,740 | 1,096,740 | ||
Ending Balance | 35,988 | 35,988 | ||
Total Parent Stockholders' Equity [Member] | ||||
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | 979,248 | |||
Net income | 179,057 | |||
Other comprehensive income (loss) | (10,240) | |||
Share repurchase program | (82,486) | |||
Stock compensation plans | 12,415 | |||
Cash dividends - $0.315 per share | (17,242) | |||
Ending Balance | 1,060,752 | 1,060,752 | ||
Noncontrolling Shareholders' Interests in Consolidated Subsidiaries [Member] | ||||
Schedule Of Stockholders Equity [Line Items] | ||||
Beginning Balance | 38,363 | |||
Net income | 1,545 | |||
Other comprehensive income (loss) | (3,116) | |||
Dividend paid to noncontrolling shareholder | (804) | |||
Ending Balance | $ 35,988 | $ 35,988 |
Stockholders' Equity - Reconc43
Stockholders' Equity - Reconciliation of Beginning and End of Period Equity Accounts (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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. 31, 2014 | Feb. 19, 2016 | Feb. 28, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2016 | Feb. 20, 2015 | Aug. 06, 2014 |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Common stock repurchased, shares | 2,449,372 | 2,751,454 | 11,552,674 | |||||||
Amount paid to counter party under share repurchase program | $ 82,486,000 | $ 82,800,000 | ||||||||
Share repurchase, weighted average price | $ 33.68 | $ 33.87 | ||||||||
Common stock repurchased, value | $ 82,486,000 | |||||||||
Share repurchase, remaining amount authorized | $ 91,261,000 | |||||||||
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 | |||||||||
Common stock repurchased, shares | 497,094 | |||||||||
Share repurchase, weighted average price | $ 35.45 | $ 39.55 | ||||||||
Common stock repurchased, value | $ 17,622,000 | $ 108,821,000 | ||||||||
Amended Share Repurchase Program [Member] | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Share repurchase, amount authorized | 200,000,000 | |||||||||
Common stock repurchased, shares | 1,952,278 | |||||||||
Share repurchase, weighted average price | $ 33.22 | |||||||||
Common stock repurchased, value | $ 64,864,000 | |||||||||
Share repurchase, remaining amount authorized | $ 73,654,000 | $ 135,195,000 | $ 135,195,000 | |||||||
Share repurchase, period description | February 22, 2016 through December 31, 2017 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 2,101 | $ 3,036 | $ 11,800 | $ 11,710 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 26 | 303 | 484 | 3,681 |
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 1,348 | 1,027 | 5,117 | 4,109 |
Performance Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 727 | $ 1,706 | $ 6,199 | $ 3,920 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
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 | |||||||
Stock options, granted | 0 | 0 | 0 | 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 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted | 143,169 | |||||||
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 values of RSU's granted | $ 36.78 | |||||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2016-2018 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of RSU's granted | 106,287 | |||||||
Weighted average fair values of RSU's granted | $ 36.02 |
Stock-Based Compensation - Deta
Stock-Based Compensation - Details of Stock Options Activity (Detail) | 9 Months Ended |
Sep. 30, 2016shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding, Beginning Balance | 668,132 |
Number of Shares, Exercised | (153,614) |
Number of Shares, Expired | (1,596) |
Number of Shares, Canceled | (4,398) |
Outstanding, Ending Balance | 508,524 |
Exercisable, Ending Balance | 394,297 |
Stock-Based Compensation - De48
Stock-Based Compensation - Details of Nonvested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units Outstanding, Beginning Balance, Nonvested | 197,388 |
Number of Units, Granted | 143,169 |
Number of Units, Vested | (99,697) |
Number of Units, Canceled | (1,637) |
Number of Units, Accrued dividend equivalents | 2,484 |
Number of Units Outstanding, Ending Balance, Nonvested | 241,707 |
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, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units Outstanding, Beginning Balance, Nonvested | 191,536 |
Number of Units, Granted | 109,581 |
Number of Units, Canceled | (18,874) |
Number of Units, Accrued dividend equivalents | 1,886 |
Number of Units Outstanding, Ending Balance, Nonvested | 284,129 |
Changes in Accumulated Other 50
Changes in Accumulated Other Comprehensive Loss by Component - Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 979,248 | |||
Other comprehensive (loss) income before reclassifications | $ (35,521) | $ (10,483) | (63,272) | $ (8,441) |
Foreign currency translation effect | 2,513 | 9,748 | ||
Income tax effect | 9,923 | (2,164) | 11,582 | (3,926) |
Cash flow hedges | 574 | (4,352) | (821) | (11,342) |
Amortization of prior service credit | (141) | (141) | (424) | (425) |
Amortization of actuarial losses | 10,820 | 11,708 | 32,690 | 35,066 |
Pension settlement charge | 11,462 | 11,462 | ||
Income tax effect | (4,029) | (2,449) | (11,205) | (8,060) |
Other comprehensive (loss) income | (4,399) | (7,881) | (10,240) | 2,872 |
Ending Balance | 1,060,752 | 1,060,752 | ||
Cumulative Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (45,429) | 7,146 | (22,034) | 9,059 |
Other comprehensive (loss) income before reclassifications | (9,626) | (20,129) | (33,021) | (22,042) |
Other comprehensive (loss) income | (9,626) | (20,129) | (33,021) | (22,042) |
Ending Balance | (55,055) | (12,983) | (55,055) | (12,983) |
Changes in the Fair Value of Derivatives and Unrealized Gains (Losses) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (134) | 3,550 | 3,454 | 4,762 |
Other comprehensive (loss) income before reclassifications | 599 | 5,712 | (3,757) | 10,658 |
Income tax effect | (211) | (2,164) | 1,448 | (3,926) |
Cash flow hedges | 574 | (4,352) | (821) | (11,342) |
Income tax effect | (209) | 1,659 | 295 | 4,253 |
Other comprehensive (loss) income | 753 | 855 | (2,835) | (357) |
Ending Balance | 619 | 4,405 | 619 | 4,405 |
Unrecognized Postretirement Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (470,045) | (530,545) | (491,187) | (544,423) |
Other comprehensive (loss) income before reclassifications | (26,494) | 3,934 | (26,494) | 2,943 |
Foreign currency translation effect | 2,513 | 9,748 | ||
Income tax effect | 10,134 | 10,134 | ||
Amortization of prior service credit | (141) | (141) | (424) | (425) |
Amortization of actuarial losses | 10,820 | 11,708 | 32,690 | 35,066 |
Pension settlement charge | 11,462 | 11,462 | ||
Income tax effect | (3,820) | (4,108) | (11,500) | (12,313) |
Other comprehensive (loss) income | 4,474 | 11,393 | 25,616 | 25,271 |
Ending Balance | (465,571) | (519,152) | (465,571) | (519,152) |
Cumulative Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (515,608) | (519,849) | (509,767) | (530,602) |
Ending Balance | $ (520,007) | $ (527,730) | $ (520,007) | $ (527,730) |
Comprehensive Income Attribut51
Comprehensive Income Attributable to Noncontrolling Shareholder Interests - Comprehensive Income Attributable to Noncontrolling Shareholder Interests (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net income attributable to noncontrolling shareholder interests | $ 1,176 | $ 473 | $ 1,545 | $ 2,769 |
Other comprehensive loss: | ||||
Currency translation adjustments | (1,320) | (2,377) | (3,116) | (4,030) |
Comprehensive loss attributable to noncontrolling shareholder interests | $ (144) | $ (1,904) | $ (1,571) | $ (1,261) |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Tire | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Minimum estimated sale of passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 30,000,000 | ||||
Maximum estimated sale of passenger car, light truck, SUV, radial medium truck and motorcycle tires per year in North America | Tire | 35,000,000 | ||||
Estimated number of Company produced tires of different specifications | Tire | 300,000,000 | ||||
Product liability expenses, Minimum | $ 0 | ||||
Product liability expenses, Maximum | 33,000,000 | ||||
Increased its product liability reserve | 36,911,000 | ||||
Increase in product liability reserve due to self insured incidents | 36,769,000 | ||||
Increase (Decrease) in product liability reserve due to changes in estimated amounts on existing reserves | $ 593,000 | ||||
Period for resolution of few cases | 5 years | ||||
Company paid to resolve cases and claims | $ 4,485,000 | $ 17,831,000 | |||
Product liability reserve balance | 183,651,000 | 183,651,000 | $ 163,890,000 | ||
Current portion product liability reserve balance | 80,712,000 | 80,712,000 | $ 74,018,000 | ||
Product liability expenses | $ 17,884,000 | $ 20,067,000 | $ 52,899,000 | $ 63,604,000 |
Business Segments - Information
Business Segments - Information on Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 750,913 | $ 782,368 | $ 2,140,982 | $ 2,197,355 |
Operating Profit | 78,228 | 82,167 | 279,249 | 251,949 |
Interest expense | (6,795) | (5,889) | (19,717) | (18,485) |
Interest income | 1,018 | 533 | 2,907 | 1,609 |
Other non-operating income | 1,785 | 1,362 | 4,672 | 3,034 |
Income before income taxes | 74,236 | 78,173 | 267,111 | 238,107 |
Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 658,727 | 688,982 | 1,866,926 | 1,929,222 |
Operating Profit | 101,522 | 102,475 | 323,667 | 301,039 |
International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 92,186 | 93,386 | 274,056 | 268,133 |
Operating Profit | 3,265 | (5,329) | 4,645 | (11,755) |
Eliminations - Intercompany [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (34,517) | (38,995) | (105,410) | (127,491) |
Operating Profit | (117) | 437 | (872) | 2,749 |
Eliminations - Intercompany [Member] | Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 13,914 | 13,478 | 39,773 | 44,771 |
Eliminations - Intercompany [Member] | International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 20,603 | 25,517 | 65,637 | 82,720 |
Operating Segments [Member] | Americas Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 672,641 | 702,460 | 1,906,699 | 1,973,993 |
Operating Segments [Member] | International Tire [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 112,789 | 118,903 | 339,693 | 350,853 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | $ (26,442) | $ (15,416) | $ (48,191) | $ (40,084) |