Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 21, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000026058 | |
Document Transition Report | false | |
Entity File Number | 1-4639 | |
Entity Registrant Name | CTS CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0225010 | |
Entity Address, Address Line One | 4925 Indiana Avenue | |
Entity Address, City or Town | Lisle | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60532 | |
City Area Code | 630 | |
Local Phone Number | 577-8800 | |
Title of Each Class | Common stock, without par value | |
Trading Symbol | CTS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,879,888 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) - UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 151,911 | $ 122,382 | $ 444,588 | $ 380,394 |
Cost of goods sold | 98,565 | 76,720 | 285,054 | 244,446 |
Gross margin | 53,346 | 45,662 | 159,534 | 135,948 |
Selling, general and administrative expenses | 24,003 | 19,922 | 68,029 | 59,184 |
Research and development expenses | 6,207 | 6,454 | 18,695 | 18,170 |
Restructuring charges | 492 | 319 | 1,434 | 551 |
Operating earnings | 22,644 | 18,967 | 71,376 | 58,043 |
Other (expense) income: | ||||
Interest expense | (342) | (514) | (1,490) | (1,577) |
Interest income | 167 | 230 | 610 | 689 |
Other expense, net | (5,171) | (108,502) | (10,530) | (132,786) |
Total other expense, net | (5,346) | (108,786) | (11,410) | (133,674) |
Earnings (loss) before income taxes | 17,298 | (89,819) | 59,966 | (75,631) |
Income tax expense (benefit) | 5,500 | (25,923) | 15,331 | (24,600) |
Net earnings (loss) | $ 11,798 | $ (63,896) | $ 44,635 | $ (51,031) |
Earnings (loss) per share: | ||||
Basic | $ 0.37 | $ (1.97) | $ 1.39 | $ (1.58) |
Diluted | $ 0.37 | $ (1.97) | $ 1.38 | $ (1.58) |
Basic weighted – average common shares outstanding: | 31,865 | 32,379 | 32,018 | 32,365 |
Effect of dilutive securities | 225 | 0 | 220 | 0 |
Diluted weighted – average common shares outstanding: | 32,090 | 32,379 | 32,238 | 32,365 |
Cash dividends declared per share | $ 0.04 | $ 0.04 | $ 0.12 | $ 0.12 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 11,798 | $ (63,896) | $ 44,635 | $ (51,031) |
Other comprehensive earnings (loss): | ||||
Changes in fair market value of derivatives, net of tax | 1,727 | (292) | 3,667 | 100 |
Changes in unrealized pension cost, net of tax | (1,835) | 72,530 | 341 | 90,976 |
Cumulative translation adjustment, net of tax | (6,071) | (10) | (8,332) | 2 |
Other comprehensive (loss) earnings | (6,179) | 72,228 | (4,324) | 91,078 |
Comprehensive earnings | $ 5,619 | $ 8,332 | $ 40,311 | $ 40,047 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 147,908 | $ 141,465 |
Accounts receivable, net | 97,004 | 82,191 |
Inventories, net | 63,465 | 49,506 |
Other current assets | 18,020 | 15,927 |
Total current assets | 326,397 | 289,089 |
Property, plant and equipment, net | 95,906 | 96,876 |
Operating lease assets, net | 22,630 | 21,594 |
Other Assets | ||
Prepaid pension asset | 5 | 49,382 |
Goodwill | 138,945 | 109,798 |
Other intangible assets, net | 106,207 | 69,888 |
Deferred income taxes | 22,992 | 25,415 |
Other | 21,597 | 2,420 |
Total other assets | 289,746 | 256,903 |
Total Assets | 734,679 | 664,462 |
Current Liabilities | ||
Accounts payable | 65,687 | 55,537 |
Operating lease obligations | 3,532 | 3,393 |
Accrued payroll and benefits | 16,979 | 18,418 |
Accrued expenses and other liabilities | 35,741 | 36,718 |
Total current liabilities | 121,939 | 114,066 |
Long-term debt | 85,478 | 50,000 |
Long-term operating lease obligations | 22,097 | 21,354 |
Long-term pension obligations | 6,248 | 6,886 |
Deferred income taxes | 5,515 | 5,894 |
Other long-term obligations | 2,790 | 2,684 |
Total Liabilities | 244,067 | 200,884 |
Commitments and Contingencies (Note 11) | ||
Shareholders’ Equity | ||
Common stock | 316,520 | 314,620 |
Additional contributed capital | 44,659 | 42,549 |
Retained earnings | 533,036 | 492,242 |
Accumulated other comprehensive loss | (8,849) | (4,525) |
Total shareholders’ equity before treasury stock | 885,366 | 844,886 |
Treasury stock | (394,754) | (381,308) |
Total shareholders’ equity | 490,612 | 463,578 |
Total Liabilities and Shareholders’ Equity | $ 734,679 | $ 664,462 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings (loss) | $ 44,635 | $ (51,031) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 21,727 | 20,231 |
Non-cash inventory charges | 3,342 | 0 |
Pension and other post-retirement plan (income) expense | (1,866) | 131,290 |
Stock-based compensation | 5,807 | 4,106 |
Deferred income taxes | 661 | (34,147) |
Gain on foreign currency hedges, net of cash | (123) | (27) |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (13,560) | 2,587 |
Inventories | (10,386) | (5,190) |
Operating lease assets | 1,338 | 825 |
Other assets | 2,249 | (5,334) |
Accounts payable | 11,393 | (1,792) |
Accrued payroll and benefits | (2,029) | 3,810 |
Operating lease liabilities | (1,492) | (841) |
Accrued expenses and other liabilities | 503 | (4,100) |
Pension and other post-retirement plans | 33,540 | (270) |
Net cash provided by operating activities | 95,739 | 60,117 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (9,260) | (8,140) |
Payments for acquisitions, net of cash acquired | (96,528) | (255) |
Net cash used in investing activities | (105,788) | (8,395) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of long-term debt | (517,939) | (597,200) |
Proceeds from borrowings of long-term debt | 553,417 | 592,600 |
Purchases of treasury stock | (13,446) | (4,939) |
Dividends paid | (3,855) | (3,882) |
Payments of contingent consideration | (1,050) | (500) |
Taxes paid on behalf of equity award participants | (1,504) | (1,490) |
Net cash provided by (used in) financing activities | 15,623 | (15,411) |
Effect of exchange rate changes on cash and cash equivalents | 869 | 443 |
Net increase in cash and cash equivalents | 6,443 | 36,754 |
Cash and cash equivalents at beginning of period | 141,465 | 91,773 |
Cash and cash equivalents at end of period | 147,908 | 128,527 |
Supplemental cash flow information: | ||
Cash paid for interest | 1,519 | 1,307 |
Cash paid for income taxes, net | 12,607 | 10,246 |
Capital expenditures incurred but not paid | $ 1,925 | $ 1,153 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Total | Common Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Dec. 31, 2020 | $ 423,682 | $ 311,190 | $ 41,654 | $ 539,281 | $ (95,921) | $ (372,522) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 11,990 | 11,990 | ||||
Changes in fair market value of derivatives, net of tax | 124 | 124 | ||||
Changes in unrealized pension cost, net of tax | 1,422 | 1,422 | ||||
Cumulative translation adjustment, net of tax | 12 | 12 | ||||
Cash dividends | (1,294) | (1,294) | ||||
Issued shares on vesting of restricted stock units | (1,400) | 1,818 | (3,218) | |||
Stock compensation | 1,180 | 1,180 | ||||
Ending Balance at Mar. 31, 2021 | 435,716 | 313,008 | 39,616 | 549,977 | (94,363) | (372,522) |
Beginning Balance at Dec. 31, 2020 | 423,682 | 311,190 | 41,654 | 539,281 | (95,921) | (372,522) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (51,031) | |||||
Changes in fair market value of derivatives, net of tax | 100 | |||||
Changes in unrealized pension cost, net of tax | 90,976 | |||||
Cumulative translation adjustment, net of tax | 2 | |||||
Acquired shares for treasury stock | (4,939) | |||||
Ending Balance at Sep. 30, 2021 | 457,374 | 314,351 | 40,958 | 484,368 | (4,842) | (377,461) |
Beginning Balance at Mar. 31, 2021 | 435,716 | 313,008 | 39,616 | 549,977 | (94,363) | (372,522) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 875 | 875 | ||||
Changes in fair market value of derivatives, net of tax | 268 | 268 | ||||
Changes in unrealized pension cost, net of tax | 17,024 | 17,024 | ||||
Cumulative translation adjustment, net of tax | 1 | 1 | ||||
Cash dividends | (1,299) | (1,299) | ||||
Issued shares on vesting of restricted stock units | (80) | 1,333 | (1,413) | |||
Stock compensation | 1,804 | 1,804 | ||||
Ending Balance at Jun. 30, 2021 | 454,309 | 314,341 | 40,007 | 549,553 | (77,070) | (372,522) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (63,896) | (63,896) | ||||
Changes in fair market value of derivatives, net of tax | (292) | (292) | ||||
Changes in unrealized pension cost, net of tax | 72,530 | 72,530 | ||||
Cumulative translation adjustment, net of tax | (10) | (10) | ||||
Cash dividends | (1,289) | (1,289) | ||||
Acquired shares for treasury stock | (4,939) | (4,939) | ||||
Issued shares on vesting of restricted stock units | (10) | 10 | (20) | |||
Stock compensation | 971 | 971 | ||||
Ending Balance at Sep. 30, 2021 | 457,374 | 314,351 | 40,958 | 484,368 | (4,842) | (377,461) |
Beginning Balance at Dec. 31, 2021 | 463,578 | 314,620 | 42,549 | 492,242 | (4,525) | (381,308) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 20,239 | 20,239 | ||||
Changes in fair market value of derivatives, net of tax | 1,235 | 1,235 | ||||
Changes in unrealized pension cost, net of tax | 94 | 94 | ||||
Cumulative translation adjustment, net of tax | (249) | (249) | ||||
Cash dividends | (1,284) | (1,284) | ||||
Acquired shares for treasury stock | (3,920) | (3,920) | ||||
Issued shares on vesting of restricted stock units | (1,413) | 1,876 | (3,289) | |||
Stock compensation | 1,898 | 1,898 | ||||
Ending Balance at Mar. 31, 2022 | 480,178 | 316,496 | 41,158 | 511,197 | (3,445) | (385,228) |
Beginning Balance at Dec. 31, 2021 | 463,578 | 314,620 | 42,549 | 492,242 | (4,525) | (381,308) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 44,635 | |||||
Changes in fair market value of derivatives, net of tax | 3,667 | |||||
Changes in unrealized pension cost, net of tax | 341 | |||||
Cumulative translation adjustment, net of tax | (8,332) | |||||
Acquired shares for treasury stock | (13,446) | |||||
Ending Balance at Sep. 30, 2022 | 490,612 | 316,520 | 44,659 | 533,036 | (8,849) | (394,754) |
Beginning Balance at Mar. 31, 2022 | 480,178 | 316,496 | 41,158 | 511,197 | (3,445) | (385,228) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 12,598 | 12,598 | ||||
Changes in fair market value of derivatives, net of tax | 705 | 705 | ||||
Changes in unrealized pension cost, net of tax | 2,082 | 2,082 | ||||
Cumulative translation adjustment, net of tax | (2,012) | (2,012) | ||||
Cash dividends | (1,289) | (1,289) | ||||
Acquired shares for treasury stock | (7,748) | (7,748) | ||||
Issued shares on vesting of restricted stock units | (78) | 6 | (84) | |||
Stock compensation | 1,511 | 1,511 | ||||
Ending Balance at Jun. 30, 2022 | 485,947 | 316,502 | 42,585 | 522,506 | (2,670) | (392,976) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 11,798 | 11,798 | ||||
Changes in fair market value of derivatives, net of tax | 1,727 | 1,727 | ||||
Changes in unrealized pension cost, net of tax | (1,835) | (1,835) | ||||
Cumulative translation adjustment, net of tax | (6,071) | (6,071) | ||||
Cash dividends | (1,268) | (1,268) | ||||
Acquired shares for treasury stock | (1,778) | (1,778) | ||||
Issued shares on vesting of restricted stock units | (12) | 18 | (30) | |||
Stock compensation | 2,104 | 2,104 | ||||
Ending Balance at Sep. 30, 2022 | $ 490,612 | $ 316,520 | $ 44,659 | $ 533,036 | $ (8,849) | $ (394,754) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Cash dividends declared per share | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.12 | $ 0.12 |
Treasury stock, shares, acquired | 52,000 | 216,252 | 116,176 | 148,035 | 384,428 | 148,035 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 1 — Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 2 – Revenue Recognition The core principle of Accounting Standard Codification (“ASC”) Topic 606 Revenue from Contracts with Customers is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step process to achieve that core principle: • Identify the contract(s) with a customer • Identify the performance obligations • Determine the transaction price • Allocate the transaction price • Recognize revenue when the performance obligations are met We recognize revenue when the performance obligations specified in our contracts have been satisfied, after considering the impact of variable consideration and other factors that may affect the transaction price. Our contracts normally contain a single performance obligation that is fulfilled on the date of delivery or shipment based on shipping terms stipulated in the contract. We usually expect payment within 30 to 90 days from the shipping date, depending on our terms with the customer. None of our contracts as of September 30, 2022 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced, collected from, or paid to our customers are recognized as contract assets or liabilities. Contract assets will be reviewed for impairment when events or circumstances indicate that they may not be recoverable. To the extent the transaction price includes variable consideration, we estimate the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method based on an analysis of historical experience and current facts and circumstances, which requires significant judgment. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Disaggregated Revenue The following table presents revenues disaggregated by the major markets we serve: Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Transportation $ 78,377 $ 62,342 $ 232,200 $ 209,750 Industrial 43,857 36,356 125,267 98,433 Medical 16,380 12,409 49,277 36,487 Aerospace & Defense 13,297 11,275 37,844 35,724 Total $ 151,911 $ 122,382 $ 444,588 $ 380,394 |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Business Acquisitions | NOTE 3 – Business Acquisitions TEWA Temperature Sensors SP. Zo.o. Acquisition On February 28, 2022, we acquired 100 % of the outstanding shares of TEWA Temperature Sensors SP. Zo.o. (“TEWA”). TEWA is a designer and manufacturer of high-quality temperature sensors. TEWA has complementary capabilities with our existing temperature sensing platform and the acquisition supports our end market diversification strategy by expanding our presence in Europe. The purchase price of $ 24,485 , which includes assumed changes in working capital, net of cash acquired of $ 2,945 , has been allocated to the fair values of assets and liabilities acquired as of February 28, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of September 30, 2022. The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Fair Values at Current assets $ 5,650 Property, plant and equipment 644 Other assets 27 Goodwill 7,669 Intangible assets 12,503 Fair value of assets acquired 26,493 Less fair value of liabilities acquired ( 2,008 ) Purchase price $ 24,485 Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes. The Company recorded a $ 1,113 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up was amortized as a non-cash charge to cost of goods sold as the acquired inventory was sold with all of it recognized in the nine months ended September 30, 2022. Intangible assets acquired have been assigned a provisional value of $ 12,503 with an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used historical experience and projections to estimate the potential value at September 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete. Ferroperm Piezoceramics A/S Acquisition On June 30, 2022, we acquired 100 % of the outstanding shares of Ferroperm Piezoceramics A/S (“Ferroperm”). Ferroperm specializes in the design and manufacture of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. Ferroperm has complementary capabilities with our existing medical diagnostics and imaging product lines. The acquisition supports our end market diversification strategy and expands our presence in European end markets. The purchase price of $ 72,043 , which includes assumed changes in working capital, net of cash acquired of $ 5,578 , has been allocated to the fair values of assets and liabilities acquired as of June 30, 2022. The allocation of the purchase price continues to be preliminary pending the completion of the valuation of intangible assets and finalization of management's estimates. The final purchase price allocation may result in a materially different allocation than that recorded as of September 30, 2022. The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Fair Values at Accounts Receivable $ 3,073 Inventory 6,848 Other current assets 1,001 Property, plant and equipment 3,953 Other assets 158 Goodwill 24,298 Intangible assets 36,448 Fair value of assets acquired 75,779 Less fair value of liabilities acquired ( 3,736 ) Purchase price $ 72,043 Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is expected to be deductible for tax purposes. The Company recorded a $ 3,012 step-up of inventory to its fair value as of the acquisition date based on the preliminary valuation. The step-up is being amortized as a non-cash charge to cost of goods sold as the acquired inventory is sold with $ 2,229 recognized in the third quarter of 2022 and the remaining is expected to be recognized in the fourth quarter of 2022. Intangible assets acquired have been assigned a provisional value of $ 36,448 with an estimated weighted average amortization period of 12 years. They are included as customer lists/relationships in our Condensed Consolidated Balance Sheets and subsequent notes. Due to the timing of the acquisition, the identification and valuation of all intangible assets remains incomplete; however, management used historical experience and projections to estimate the potential value at September 30, 2022. The amount and assumptions included above remain an estimate that will be adjusted once purchase accounting is complete. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 4 – Accounts Receivable, net The components of accounts receivable, net are as follows: As of September 30, December 31, 2022 2021 Accounts receivable, gross $ 98,388 $ 83,848 Less: Allowance for credit losses ( 1,384 ) ( 1,657 ) Accounts receivable, net $ 97,004 $ 82,191 |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | NOTE 5 – Inventories, net Inventories, net consists of the following: As of September 30, December 31, 2022 2021 Finished goods $ 13,539 $ 11,955 Work-in-process 22,328 18,878 Raw materials 38,460 28,078 Less: Inventory reserves ( 10,862 ) ( 9,405 ) Inventories, net $ 63,465 $ 49,506 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | NOTE 6 – Property, Plant and Equipment, net Property, plant and equipment, net is comprised of the following: As of September 30, December 31, 2022 2021 Land and land improvements $ 1,100 $ 1,095 Buildings and improvements 71,644 69,614 Machinery and equipment 253,659 247,708 Less: Accumulated depreciation ( 230,497 ) ( 221,541 ) Property, plant and equipment, net $ 95,906 $ 96,876 Depreciation expense for the nine months ended September 30, 2022 and September 30, 2021 was $ 13,548 and $ 13,166 , respectively. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | NOTE 7 – Retirement Plans Pension Plans Net pension (income) expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net pension (income) expense $ ( 2,076 ) $ 107,447 $ ( 1,944 ) $ 131,227 The components of net pension (income) expense for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ 6 $ 6 Interest cost 5 385 4 4 Expected return on plan assets (1) ( 2,139 ) 429 ( 3 ) ( 3 ) Amortization of loss 8 377 43 43 Settlement charges — 106,206 — — Total (income) expense, net $ ( 2,126 ) $ 107,397 $ 50 $ 50 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ 18 $ 18 Interest cost 15 2,856 12 12 Expected return on plan assets (1) ( 2,139 ) ( 1,742 ) ( 9 ) ( 9 ) Amortization of loss 24 3,694 135 129 Settlement charges — 126,269 — — Total (income) expense, net $ ( 2,100 ) $ 131,077 $ 156 $ 150 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. In February 2020, the Board of Directors authorized management to explore termination of the U.S.-based pension plan ("Plan"), subject to certain conditions. On June 1, 2020, we entered into the Fifth Amendment to the Plan whereby we set an effective termination date for the Plan of July 31, 2020. In February 2021, we received a determination letter from the Internal Revenue Service that allowed us to proceed with the termination process for the Plan. During the second quarter of 2021, the Company offered the option of receiving a lump sum payment to eligible participants with vested qualified Plan benefits in lieu of receiving monthly annuity payments. Approximately 365 participants elected to receive the settlement, and lump sum payments of approximately $ 35,594 were made from Plan assets to these participants in June 2021. As required under U.S. GAAP, the Company recognizes a settlement gain or loss when the aggregate amount of lump-sum distributions to participants equals or exceeds the sum of the service and interest cost components of the net periodic pension cost. The amount of settlement gain or loss recognized is the pro rata amount of the existing unrealized gain or loss immediately prior to the settlement. In general, both the projected benefit obligation and fair value of plan assets are required to be remeasured in order to determine the settlement gain or loss. Upon the partial settlement of the pension liability due to the lump sum offering in the second quarter of 2021, the Company recognized a non-cash and non-operating settlement charge of $ 20,063 related to pension losses, reclassified from accumulated other comprehensive loss to other income (expense) in the Company's Condensed Consolidated Statements of Earnings. On July 29, 2021, the Plan purchased a group annuity contract that transferred our benefit obligations for approximately 2,700 CTS participants and beneficiaries in the United States (“Transferred Participants”). As part of the purchase of the group annuity contract, Plan benefit obligations and related annuity administration services for Transferred Participants were irrevocably assumed and guaranteed by the insurance company effective as of August 3, 2021. There will be no change to pension benefits for Transferred Participants. The purchase of the group annuity contract was fully funded directly by Plan assets. As a result of the final settlement of the pension liability with the purchase of annuities, we reclassified the remaining related unrecognized pension losses of $ 106,206 that were previously recorded in accumulated other comprehensive loss to the Company’s Consolidated Statements of Earnings as a non-cash and non-operating settlement charge in the third quarter of 2021. In January 2022, we transferred approximately $ 17,500 of funds from Plan assets to a qualified replacement plan (“QRP”) managed by the Company. The QRP requires that these assets be used to fund future annual Company contributions to our U.S. 401(k) program. The remaining Plan assets were transferred to the Company in the third quarter of 2022 as part of the final termination process. Approximately $ 34,016 was transferred to the Company, which resulted in $ 6,803 of excise tax being recorded during the quarter. The excise tax was recorded as Other Expense in the Company's Condensed Consolidated Statements of Earnings and remained in Accounts Payable in the Company's Condensed Consolidated Balance Sheets as of September 30, 2022. Other Post-retirement Benefit Plan Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 26 20 78 63 Amortization of gain — — — — Total expense, net $ 26 $ 20 $ 78 $ 63 Defined Contribution Plans We sponsor a 401(k) plan that covers substantially all of our U.S. employees as well as offer similar defined contribution plans at certain foreign locations. In the third quarter of 2022, our investment committee, in consultation with the plan’s advisors, determined the 401(k) plan’s position in CTS stock would be liquidated and funds would be reinvested in other investments. CTS stock represented approximately 2 % of the 401(k) plan ’s investments as of December 31, 2021. The process is expected to begin and to be completed in the fourth quarter of 2022. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 8 – Goodwill and Other Intangible Assets Other Intangible Assets Other intangible assets, net consist of the following components: As of September 30, 2022 Gross Accumulated Net Amount Customer lists/relationships $ 141,339 $ ( 54,569 ) $ 86,770 Technology and other intangibles 47,441 ( 28,004 ) 19,437 Other intangible assets, net $ 188,780 $ ( 82,573 ) $ 106,207 Amortization expense for the three months ended $ 3,262 Amortization expense for the nine months ended $ 8,179 As of December 31, 2021 Gross Accumulated Net Amount Customer lists/relationships $ 96,889 $ ( 49,213 ) $ 47,676 Technology and other intangibles 47,441 ( 25,229 ) 22,212 Other intangible assets, net $ 144,330 $ ( 74,442 ) $ 69,888 Amortization expense for the three months ended $ 2,348 Amortization expense for the nine months ended $ 7,065 Remaining amortization expense for other intangible assets as of September 30, 2022 is as follows: Amortization 2022 $ 3,316 2023 10,825 2024 10,663 2025 10,441 2026 10,407 Thereafter 60,555 Total amortization expense $ 106,207 Goodwill Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2021 $ 109,798 Increase from acquisitions 31,967 Foreign exchange impact ( 2,820 ) Goodwill as of September 30, 2022 $ 138,945 |
Costs Associated with Exit and
Costs Associated with Exit and Restructuring Activities | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Costs Associated with Exit and Restructuring Activities | NOTE 9 – Costs Associated with Exit and Restructuring Activities Restructuring charges are reported as a separate line within operating earnings in the Condensed Consolidated Statement of Earnings. Total restructuring charges are as follows: Three Months Ended September 30, 2022 September 30, 2021 Restructuring charges $ 492 $ 319 Nine Months Ended September 30, 2022 September 30, 2021 Restructuring charges $ 1,434 $ 551 September 2020 Plan In September 2020, we initiated a restructuring plan focused on optimizing our manufacturing footprint and improving operational efficiency by better utilizing our systems capabilities (the "September 2020 Plan"). This plan includes transitioning certain administrative functions to a shared service center, realignment of manufacturing locations, and certain other efficiency improvement actions. The restructuring cost of the September 2020 Plan is now estimated to be in the range of $ 3,500 to $ 4,500 , including workforce reduction charges, building and equipment relocation charges and other contract and asset-related costs. We have incurred $ 1,793 in program costs to date. We recorded $ 238 and $ 396 in workforce reduction costs during the three and nine months ended September 30, 2022, respectively, under the 2020 Plan. Due to the robust market demand and COVID-19 limitations, some projects have been delayed. The total restructuring liability associated with these actions was $ 396 as of September 30, 2022. There was no liability related to the September 2020 Plan as of December 31, 2021. Other Restructuring Activities From time to time we undertake other restructuring activities that are not part of a formal plan. During the three and nine months ended September 30, 2022 , we incurred restructuring charges of $ 252 and $ 1,034 , respectively. During the three and nine months ended September 30, 2021, we incurred restructuring charges of $ 319 and $ 582 , respectively. The total restructuring liability associated with these actions was $ 588 at September 30, 2022 and $ 962 at December 31, 2021. The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the nine months ended September 30, 2022: Restructuring liability at January 1, 2022 $ 962 Restructuring charges 1,434 Cost paid ( 1,412 ) Restructuring liability at September 30, 2022 $ 984 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Liabilities | NOTE 10 – Accrued Expenses and Other Liabilities The components of accrued expenses and other liabilities are as follows: As of September 30, December 31, 2022 2021 Accrued product related costs $ 3,068 $ 3,188 Accrued income taxes 9,118 6,761 Accrued property and other taxes 1,916 2,370 Accrued professional fees 2,031 1,629 Accrued customer related liabilities 3,261 3,254 Dividends payable 1,274 1,289 Remediation reserves 10,635 10,979 Derivative liabilities — 437 Other accrued liabilities 4,438 6,811 Total accrued expenses and other liabilities $ 35,741 $ 36,718 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 11 – Commitments and Contingencies Certain processes in the manufacture of our current and past products create by-products classified as hazardous waste. We have been notified by the U.S. Environmental Protection Agency, state environmental agencies, and in some cases, groups of potentially responsible parties, that we may be potentially liable for environmental contamination at several sites currently and formerly owned or operated by us. Two of those sites, Asheville, North Carolina and Mountain View, California, are designated National Priorities List sites under the U.S. Environmental Protection Agency’s Superfund program. We accrue a liability for probable remediation activities, claims and proceedings against us with respect to environmental matters if the amount can be reasonably estimated, and provide disclosures including the nature of a loss whenever it is probable or reasonably possible that a potentially material loss may have occurred but cannot be estimated. We record contingent loss accruals on an undiscounted basis. A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following: As of September 30, December 31, 2022 2021 Balance at beginning of period $ 10,979 $ 10,642 Remediation expense 1,710 2,254 Net remediation payments ( 2,080 ) ( 1,929 ) Other activity (1) 26 12 Balance at end of the period $ 10,635 $ 10,979 (1) Other activity includes currency translation adjustments not recorded through remediation expense. Unrelated to the environmental claims described above, certain other legal claims are pending against us with respect to matters arising out of the ordinary conduct of our business. We provide product warranties when we sell our products and accrue for estimated liabilities at the time of sale. Warranty estimates are forecasts based on the best available information and historical claims experience. We accrue for specific warranty claims if we believe that the facts of a specific claim make it probable that a liability in excess of our historical experience has been or will be incurred, and provide disclosures for specific claims whenever it is reasonably possible that a material loss may be incurred which cannot be estimated. We cannot provide assurance that the ultimate disposition of environmental, legal, and product warranty claims will not materially exceed the amount of our accrued losses and adversely impact our consolidated financial position, results of operations, or cash flows. Our accrued liabilities and disclosures will be adjusted accordingly if additional information becomes available in the future. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 12 - Debt Long-term debt is comprised of the following: As of September 30, December 31, 2022 2021 Total credit facility $ 400,000 $ 400,000 Balance outstanding 85,478 50,000 Standby letters of credit 1,640 1,740 Amount available, subject to covenant restrictions $ 312,882 $ 348,260 Weighted-average interest rate 2.22 % 1.16 % On December 15, 2021, we entered into a second amended and restated five-year credit agreement with a group of banks (the “Revolving Credit Facility”) to (i) increase the total credit facility to $ 400,000 , which may be increased by $ 200,000 at the request of the Company, subject to the administrative agent's approval, (ii) extend the maturity of the Revolving Credit Facility from February 12, 2024 to December 15, 2026 , (iii) replace LIBOR with SOFR as the primary reference rate used to calculate interest on the loans under the Revolving Credit Facility, (iv) increase available sublimits for letters of credit, and swingline loans as well as providing for additional alternative currency borrowing capabilities, and (v) modify the financial and non-financial covenants to provide the Company additional flexibility. Borrowings in U.S. dollars under the Revolving Credit Facility bear interest, at a per annum rate equal to the applicable Term SOFR rate (but not less than 0.0 %), plus the Term SOFR adjustment, and plus an applicable margin, which ranges from 1.00 % to 1.75 %, based on our net leverage ratio. Similarly, borrowings of alternative currencies under the Revolving Credit Facility bear interest equal to a defined risk-free reference rate, plus the applicable risk-free rate adjustment and plus an applicable margin, which ranges from 1.00 % to 1.75 %, based on our net leverage ratio. The Revolving Credit Facility includes a swing line sublimit of $ 20,000 and a letter of credit sublimit of $ 20,000 . We also pay a quarterly commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee ranges from 0.175 % to 0.25 % based on our net leverage ratio. The Revolving Credit Facility requires, in addition to customary representations and warranties, that we comply with a maximum net leverage ratio and a minimum interest coverage ratio. Failure to comply with these covenants could reduce the borrowing availability under the Revolving Credit Facility. We were in compliance with all debt covenants at September 30, 2022. The Revolving Credit Facility requires that we deliver quarterly financial statements, annual financial statements, auditor certifications, and compliance certificates within a specified number of days after the end of a quarter and year. Additionally, the Revolving Credit Facility contains restrictions limiting our ability to: dispose of assets; incur certain additional debt; repay other debt or amend subordinated debt instruments; create liens on assets; make investments, loans or advances; make acquisitions or engage in mergers or consolidations; engage in certain transactions with our subsidiaries and affiliates; and make stock repurchases and dividend payments. We have debt issuance costs related to our long-term debt that are being amortized using the straight-line method over the life of the debt, which approximates the effective interest method. Amortization expense for the three and nine months ended September 30, 2022 was $ 48 and $ 145 , respectively. Amortization expense for the three and nine months ended September 30, 2021 was $ 42 and $ 126 , respectively. These costs are included in interest expense in our Consolidated Statements of Earnings. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 13 - Derivative Financial Instruments Our earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates and interest rates. We selectively use derivative financial instruments including foreign currency forward contracts as well as interest rate and cross-currency swaps to manage our exposure to these risks. The use of derivative financial instruments exposes the Company to credit risk, which relates to the risk of nonperformance by a counterparty to the derivative contracts. We manage our credit risk by entering into derivative contracts with only highly rated financial institutions and by using netting agreements. The effective portion of derivative gains and losses are recorded in accumulated other comprehensive loss until the hedged transaction affects earnings upon settlement, at which time they are reclassified to cost of goods sold or net sales. If it is probable that an anticipated hedged transaction will not occur by the end of the originally specified time period, we reclassify the gains or losses related to that hedge from accumulated other comprehensive loss to other income (expense), net. We assess hedge effectiveness qualitatively by verifying that the critical terms of the hedging instrument and the forecasted transaction continue to match, and that there have been no adverse developments that have increased the risk that the counterparty will default. No recognition of ineffectiveness was recorded in our Condensed Consolidated Statements of Earnings for the three and nine months ended September 30, 2022. Foreign Currency Hedges We use forward contracts to mitigate currency risk related to a portion of our forecasted foreign currency revenues and costs. The currency forward contracts are designed as cash flow hedges and are recorded in the Condensed Consolidated Balance Sheets at fair value. We continue to monitor the Company’s overall currency exposure and may elect to add cash flow hedges in the future. At September 30, 2022 , we had a net unrealized gain of $ 616 in accumulated other comprehensive (loss) income, $ 520 of which is expected to be reclassified to earnings within the next 12 months. The notional amount of foreign currency forward contracts outstanding was $ 14,701 at September 30, 2022. Interest Rate Swaps We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest to a fixed rate. As of September 30, 2022 , we have agreements to fix interest rates on $ 50,000 of long-term debt until December 2026. The difference to be paid or received under the terms of the swap agreements will be recognized as an adjustment to interest expense when settled. These swaps are treated as cash flow hedges and consequently, the changes in fair value are recorded in other comprehensive (loss) income. The estimated net amount of the existing gains that are reported in accumulated other comprehensive (loss) income that are expected to be reclassified into earnings within the next twelve months is approximately $ 968 . Cross-Currency Swap The Company has operations and investments in various international locations and is subject to risks associated with changing foreign exchange rates. In order to hedge the Krone-based purchase price of the Ferroperm acquisition, the Company entered into a cross currency interest rate swap agreement on June 27, 2022 that synthetically swapped $ 25,000 of variable rate debt to Krone denominated variable rate debt. Upon completion of the Ferroperm acquisition on June 30, 2022, the transaction was designated as a net investment hedge for accounting purposes and will mature on June 30, 2027 . Accordingly, any gains or losses on this derivative instrument will be included in the foreign currency translation component of other comprehensive income until the net investment is sold, diluted or liquidated. At September 30, 2022 we had a net unrealized gain of $ 1,561 in accumulated other comprehensive (loss) income. Interest payments received for the cross currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense in the Condensed Consolidated Statements of Earnings. The assumptions used in measuring fair value of the cross currency swap are considered level 2 inputs, which are based upon the Krone to United States Dollar exchange rate market. Prior to designation as a net investment hedge, a gain of $ 111 was recorded in other expense within the Condensed Consolidated Statements of Earnings during the second quarter of 2022. The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of September 30, 2022, are shown in the following table: As of September 30, December 31, 2022 2021 Interest rate swaps reported in Other current assets $ 1,258 $ — Interest rate swaps reported in Other assets $ 2,072 $ — Interest rate swaps reported in Accrued Expenses and other liabilities $ — $ ( 437 ) Interest rate swaps reported in Other long-term obligations $ — $ ( 353 ) Foreign currency hedges reported in Other current assets $ 789 $ 135 Net investment hedge reported in Other assets $ 1,675 $ — The Company has elected to net its foreign currency derivative assets and liabilities in the balance sheet in accordance with ASC 210-20 ( Balance Sheet, Offsetting ). On a gross basis, there were foreign currency derivative assets of $ 789 and foreign currency derivative liabilities of $ 0 at September 30, 2022. The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Cost of goods sold 216 442 524 992 Total gain reclassified from AOCI to earnings 216 442 524 992 Total derivative gain on foreign exchange contracts recognized in earnings $ 216 $ 442 $ 524 $ 992 Interest Rate Swaps: Income (expense) recorded in Interest expense $ 79 $ ( 191 ) $ ( 194 ) $ ( 554 ) Cross-Currency Swap: Income (expense) recorded in Interest expense $ 175 $ — $ 175 $ — Total net gains on derivatives $ 470 $ 251 $ 505 $ 438 Derivative Contracts Not Designated as Hedges In the second quarter of 2022, the Company used derivative contracts to manage foreign currency exchange risk related to funds to be used for the purchase price of the Ferroperm acquisition. These contracts were not designated as hedges and therefore changes in the fair values of these instruments were recognized directly in earnings. All contracts were settled in conjunction with the closing of the Ferroperm acquisition. As a result of these contracts, the Company recognized a $ 1,776 loss in other expense in the Condensed Consolidated Statements of Earnings during the second quarter of 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 14 – Accumulated Other Comprehensive Loss Shareholders’ equity includes certain items classified as accumulated other comprehensive loss (“AOCI”) in the Condensed Consolidated Balance Sheets, including: • Unrealized gains (losses) on hedges relate to interest rate swaps to convert a portion of our Revolving Credit Facility's outstanding balance from a variable rate of interest into a fixed rate, foreign currency forward contracts used to hedge our exposure to changes in exchange rates affecting certain revenues and costs denominated in foreign currencies, as well as a cross-currency swap that synthetically converts our U.S. Dollar variable rate debt to Krone denominated variable rate debt. These hedges are designated as cash flow hedges, and we have deferred income statement recognition of gains and losses until the hedged transactions occur, at which time amounts are reclassified into earnings. Further information related to our derivative financial instruments is included in Note 13 - Derivative Financial Instruments and Note 17 – Fair Value Measurements. • Unrealized gains (losses) on pension obligations are deferred from income statement recognition until the gains or losses are realized. Amounts reclassified to income from AOCI are included in net periodic pension income (expense). Further information related to our pension obligations is included in Note 7 – Retirement Plans. • Cumulative translation adjustments relate to our non-U.S. subsidiary companies that have designated a functional currency other than the U.S. Dollar. We are required to translate the subsidiary functional currency financial statements to dollars using a combination of historical, period-end, and average foreign exchange rates. This combination of rates creates the foreign currency translation adjustment component of other comprehensive income. Changes in exchange rates between the functional currency and the currency in which a transaction is denominated are foreign exchange transaction gains or losses. Transaction losses for the three and nine months ended September 30, 2022 were $ 451 and $ 3,980 , respectively. Transaction losses for the three and nine months ended September 30, 2021 were $ 1,011 and $ 1,412 , respectively. The impact of these changes have been included in other income (expense) in the Condensed Consolidated Statements of Earnings. The components of accumulated other comprehensive loss for the three months ended September 30, 2022 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2022 in OCI to Earnings 2022 Changes in fair market value of derivatives: Gross $ 1,884 $ 2,539 $ ( 295 ) $ 4,128 Income tax benefit (expense) ( 431 ) ( 585 ) 68 ( 948 ) Net 1,453 1,954 ( 227 ) 3,180 Changes in unrealized pension cost: Gross ( 504 ) 161 ( 1,954 ) ( 2,297 ) Income tax benefit (expense) 674 ( 492 ) 450 632 Net 170 ( 331 ) ( 1,504 ) ( 1,665 ) Cumulative translation adjustment: Gross ( 4,293 ) ( 6,071 ) — ( 10,364 ) Income tax benefit (expense) — — — — Net ( 4,293 ) ( 6,071 ) — ( 10,364 ) Total accumulated other comprehensive (loss) income $ ( 2,670 ) $ ( 4,448 ) $ ( 1,731 ) $ ( 8,849 ) The components of accumulated other comprehensive loss for the three months ended September 30, 2021, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2021 in OCI to Earnings 2021 Changes in fair market value of derivatives: Gross $ ( 529 ) $ ( 128 ) $ ( 251 ) $ ( 908 ) Income tax benefit (expense) 123 29 58 210 Net ( 406 ) ( 99 ) ( 193 ) ( 698 ) Changes in unrealized pension cost: Gross ( 104,052 ) ( 5,450 ) 106,622 ( 2,880 ) Income tax benefit (expense) 29,411 1,254 ( 29,896 ) 769 Net ( 74,641 ) ( 4,196 ) 76,726 ( 2,111 ) Cumulative translation adjustment: Gross ( 2,023 ) ( 10 ) — ( 2,033 ) Income tax benefit (expense) — — — — Net ( 2,023 ) ( 10 ) — ( 2,033 ) Total accumulated other comprehensive (loss) income $ ( 77,070 ) $ ( 4,305 ) $ 76,533 $ ( 4,842 ) The components of accumulated other comprehensive loss for the nine months ended September 30, 2022, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI September 30, 2021 in OCI to Earnings 2022 Changes in fair market value of derivatives: Gross $ ( 635 ) $ 5,093 ( 330 ) $ 4,128 Income tax benefit (expense) 147 ( 1,171 ) 76 ( 948 ) Net ( 488 ) 3,922 ( 254 ) 3,180 Changes in unrealized pension cost: Gross ( 2,744 ) 2,139 ( 1,692 ) ( 2,297 ) Income tax benefit (expense) 738 ( 492 ) 386 632 Net ( 2,006 ) 1,647 ( 1,306 ) ( 1,665 ) Cumulative translation adjustment: Gross ( 2,032 ) ( 8,332 ) — ( 10,364 ) Income tax benefit (expense) — — — — Net ( 2,032 ) ( 8,332 ) — ( 10,364 ) Total accumulated other comprehensive (loss) income $ ( 4,526 ) $ ( 2,763 ) $ ( 1,560 ) $ ( 8,849 ) The components of accumulated other comprehensive loss for the nine months ended September 30, 2021, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI September 30, 2020 in OCI to Earnings 2021 Changes in fair market value of derivatives: Gross $ ( 1,038 ) $ 568 ( 438 ) $ ( 908 ) Income tax benefit (expense) 240 ( 131 ) 101 210 Net ( 798 ) 437 ( 337 ) ( 698 ) Changes in unrealized pension cost: Gross ( 128,004 ) ( 4,951 ) 130,075 ( 2,880 ) Income tax benefit (expense) 34,917 1,139 ( 35,287 ) 769 Net ( 93,087 ) ( 3,812 ) 94,788 ( 2,111 ) Cumulative translation adjustment: Gross ( 2,036 ) 3 — ( 2,033 ) Income tax benefit (expense) — — — — Net ( 2,036 ) 3 — ( 2,033 ) Total accumulated other comprehensive (loss) income $ ( 95,921 ) $ ( 3,372 ) $ 94,451 $ ( 4,842 ) |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | NOTE 15 – Shareholders’ Equity Share count and par value data related to shareholders’ equity are as follows: As of September 30, December 31, 2022 2021 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 57,310,837 57,245,060 Shares outstanding 31,860,064 32,178,715 Treasury stock Shares held 25,450,773 25,066,345 On May 13, 2021, the Board of Directors approved a new share repurchase program that authorizes the Company to repurchase up to $ 50,000 of the Company’s common stock. The repurchase program has no set expiration date and replaces the repurchase program approved by the Board of Directors on February 7, 2019. During the three and nine months ended September 30, 2022, 52,000 and 384,428 shares of common stock were repurchased for $ 1,778 and $ 13,446 , respectively. During the three and nine months ended September 30, 2021, there were 148,035 shares of common stock that were repurchased for $ 4,939 . As of September 30, 2022, approximately $ 27,768 remains available for future purchases. A roll-forward of common shares outstanding is as follows: Nine months ended September 30, September 30, 2022 2021 Balance at the beginning of the year 32,178,715 32,276,787 Repurchases ( 384,428 ) ( 148,035 ) Restricted share issuances 65,777 159,397 Balance at the end of the period 31,860,064 32,288,149 Certain potentially dilutive restricted stock units are excluded from diluted earnings per share because they are anti-dilutive. The number of outstanding awards that were anti-dilutive for the three and nine months ended September 30, 2022 were 393 and 950 , respectively. The number of outstanding awards that were anti-dilutive for the three and nine months ended September 30, 2021 were 462 and 1,029 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 16- Stock-Based Compensation At September 30, 2022, we had five active stock-based compensation plans: the Non-Employee Directors’ Stock Retirement Plan (“Directors’ Plan”), the 2004 Omnibus Long-Term Incentive Plan (“2004 Plan”), the 2009 Omnibus Equity and Performance Incentive Plan (“2009 Plan”), the 2014 Performance and Incentive Compensation Plan (“2014 Plan”), and the 2018 Equity and Incentive Compensation Plan ("2018 Plan"). Future grants can only be made under the 2018 Plan. These plans allow for grants of stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance shares, performance units, and other stock awards subject to the terms of the specific plans under which the awards are granted. The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service-based RSUs $ 766 $ 588 $ 2,134 $ 2,013 Performance and Market-based RSUs 1,338 383 3,379 1,942 Cash-settled RSUs 137 16 294 151 Total $ 2,241 $ 987 $ 5,807 $ 4,106 Income tax benefit 515 227 1,336 945 Net expense $ 1,726 $ 760 $ 4,471 $ 3,161 The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average September 30, 2022 Period (years) Service-based RSUs $ 2,013 1.41 Performance and Market-based RSUs 5,282 1.82 Total $ 7,295 1.70 We recognize expense on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was, in substance, multiple awards. The following table summarizes the status of these plans as of September 30, 2022: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Maximum potential awards outstanding 718,268 35,100 30,000 14,545 4,722 RSUs and cash-settled awards vested and released 249,742 — — — — Awards available for grant 1,531,990 — — — — Service-Based Restricted Stock Units The following table summarizes the service-based RSU activity for the nine months ended September 30, 2022: Units Weighted Outstanding at December 31, 2021 283,216 $ 24.91 Granted 70,124 33.71 Vested and released ( 77,945 ) 26.71 Forfeited ( 7,838 ) 30.35 Outstanding at September 30, 2022 267,557 $ 26.54 Releasable at September 30, 2022 117,467 $ 18.29 Performance and Market-Based Restricted Stock Units The following table summarizes the performance and market-based RSU activity for the nine months ended September 30, 2022: Units Weighted Outstanding at December 31, 2021 237,767 $ 31.35 Granted 83,602 37.08 Attained by performance 5,136 29.50 Released ( 51,848 ) 30.64 Forfeited ( 15,601 ) 31.83 Outstanding at September 30, 2022 259,056 $ 33.26 Releasable at September 30, 2022 — $ — Cash-Settled Restricted Stock Units Cash-Settled RSUs entitle the holder to receive the cash equivalent of one share of common stock for each unit when the unit vests. These RSUs are issued to key employees residing in foreign locations as direct compensation. Generally, these RSUs vest over a three-year period. Cash-Settled RSUs are classified as liabilities and are remeasured at each reporting date until settled. At September 30, 2022 and December 31, 2021, we had 48,508 and 32,085 cash-settled RSUs outstanding, respectively. At September 30, 2022 and December 31, 2021, liabilities of $ 437 and $ 400 , respectively, were included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 17 — Fair Value Measurements The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2022: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 3,330 $ — $ 3,330 $ — Foreign currency hedges $ 789 $ — $ 789 $ — Cross-currency swap $ 1,675 $ — $ 1,675 $ — Qualified replacement plan assets $ 15,635 $ 15,635 $ — $ — Contingent consideration $ ( 300 ) $ — $ — $ ( 300 ) The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021: (Liability) Asset Carrying Quoted Prices Significant Significant Interest rate swaps $ ( 790 ) $ — $ ( 790 ) $ — Foreign currency hedges $ 135 $ — $ 135 $ — Contingent consideration $ ( 1,200 ) $ — $ — $ ( 1,200 ) We use interest rate swaps to convert a portion of our Revolving Credit Facility’s outstanding balance from a variable rate of interest into a fixed rate and foreign currency forward contracts to hedge the effect of foreign currency changes on certain revenues and costs denominated in foreign currencies. The Company entered into a cross currency swap agreement in order to manage its exposure to changes in interest rates related to foreign debt. These derivative financial instruments are measured at fair value on a recurring basis. The fair value of our interest rate swaps and foreign currency hedges were measured using standard valuation models using market-based observable inputs over the contractual terms, including forward yield curves, among others. There is a readily determinable market for these derivative instruments, but that market is not active and therefore they are classified within Level 2 of the fair value hierarchy. The fair value of the contingent consideration requires significant judgment. The Company's fair value estimates used in the contingent consideration valuation are considered Level 3 fair value measurements. The fair value estimates were based on assumptions management believes to be reasonable, but that are inherently uncertain, including estimates of future revenues and timing of events and activities that are expected to take place. A roll-forward of the contingent consideration is as follows: Contingent Balance at December 31, 2021 $ 1,200 Settled in cash ( 900 ) Balance at September 30, 2022 in accrued expenses and other liabilities $ 300 Our long-term debt consists of the Revolving Credit Facility, which is recorded at its carrying value. There is a readily determinable market for our long-term debt and it is classified within Level 2 of the fair value hierarchy as the market is not deemed to be active. The fair value of long-term debt approximates carrying value and was determined by valuing a similar hypothetical coupon bond and attributing that value to our long-term debt under the Revolving Credit Facility. The QRP assets consist of investment funds maintained for future contributions to the Company’s U.S. 401(k) program. See Note 7 for further information on the QRP. The investments are Level 1 marketable securities and are recorded in Other Assets on our Condensed Consolidated Balance Sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 18 — Income Taxes The effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Effective tax rate 31.8 % 28.9 % 25.6 % 32.5 % Our effective income tax rate was 31.8 % and 28.9 % in the third quarters of 2022 and 2021, respectively. The increase in effective income tax is primarily attributed to a nondeductible cost associated with the termination of the U.S. pension plan incurred in the third quarter of 2022. The third quarter 2022 effective income tax rate was higher than the U.S. statutory federal tax rate primarily due to the impact of a nondeductible cost associated with the termination of the U.S. pension plan. The third quarter 2021 effective tax rate was higher, primarily due to the non-cash settlement expense related to the final annuity purchase made for the U.S. pension plan termination. Our effective income tax rate was 25.6 % and 32.5 % in the nine months ending September 30, 2022 and 2021, respectively. The decrease is primarily attributed to a non-cash settlement expense related to the termination of the U.S. pension plan made in the second and third quarters of 2021. The tax rate in the first nine months of 2022 was higher than the U.S. statutory federal tax rate primarily due to the impact of a nondeductible cost associated with the termination of the U.S. pension plan. The tax rate in the first nine months of 2021 was higher than the U.S. statutory federal tax rate primarily due to settlement expenses related to the termination of the U.S. pension plan made in the second and third quarters of 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared by CTS Corporation (“CTS”, "we", "our", "us" or the "Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the financial statements, notes thereto, and other information included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2021. The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring items) necessary for a fair statement, in all material respects, of the financial position and results of operations for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ materially from those estimates. The results of operations for the interim periods are not necessarily indicative of the results for the entire year. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The reclassifications had no impact on previously reported net earnings. There have been no material changes in the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenues | The following table presents revenues disaggregated by the major markets we serve: Three months ended Nine months ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Transportation $ 78,377 $ 62,342 $ 232,200 $ 209,750 Industrial 43,857 36,356 125,267 98,433 Medical 16,380 12,409 49,277 36,487 Aerospace & Defense 13,297 11,275 37,844 35,724 Total $ 151,911 $ 122,382 $ 444,588 $ 380,394 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
TEWA Temperature Sennsors SP.Zo.o. | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Fair Values at Current assets $ 5,650 Property, plant and equipment 644 Other assets 27 Goodwill 7,669 Intangible assets 12,503 Fair value of assets acquired 26,493 Less fair value of liabilities acquired ( 2,008 ) Purchase price $ 24,485 |
Ferroperm Piezoceramics A/S Acquisition | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and the fair values of the assets acquired, and the liabilities assumed as of the date of acquisition: Fair Values at Accounts Receivable $ 3,073 Inventory 6,848 Other current assets 1,001 Property, plant and equipment 3,953 Other assets 158 Goodwill 24,298 Intangible assets 36,448 Fair value of assets acquired 75,779 Less fair value of liabilities acquired ( 3,736 ) Purchase price $ 72,043 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Components of Accounts Receivable, Net | The components of accounts receivable, net are as follows: As of September 30, December 31, 2022 2021 Accounts receivable, gross $ 98,388 $ 83,848 Less: Allowance for credit losses ( 1,384 ) ( 1,657 ) Accounts receivable, net $ 97,004 $ 82,191 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net | Inventories, net consists of the following: As of September 30, December 31, 2022 2021 Finished goods $ 13,539 $ 11,955 Work-in-process 22,328 18,878 Raw materials 38,460 28,078 Less: Inventory reserves ( 10,862 ) ( 9,405 ) Inventories, net $ 63,465 $ 49,506 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | Property, plant and equipment, net is comprised of the following: As of September 30, December 31, 2022 2021 Land and land improvements $ 1,100 $ 1,095 Buildings and improvements 71,644 69,614 Machinery and equipment 253,659 247,708 Less: Accumulated depreciation ( 230,497 ) ( 221,541 ) Property, plant and equipment, net $ 95,906 $ 96,876 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension (Income) Expense or Postretirement Expense | Net pension (income) expense for our domestic and foreign plans included in other expense, net in the Condensed Consolidated Statements of Earnings is as follows: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net pension (income) expense $ ( 2,076 ) $ 107,447 $ ( 1,944 ) $ 131,227 The components of net pension (income) expense for our domestic and foreign plans include the following: Domestic Pension Plans Foreign Pension Plans Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ 6 $ 6 Interest cost 5 385 4 4 Expected return on plan assets (1) ( 2,139 ) 429 ( 3 ) ( 3 ) Amortization of loss 8 377 43 43 Settlement charges — 106,206 — — Total (income) expense, net $ ( 2,126 ) $ 107,397 $ 50 $ 50 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. Domestic Pension Plans Foreign Pension Plans Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ 18 $ 18 Interest cost 15 2,856 12 12 Expected return on plan assets (1) ( 2,139 ) ( 1,742 ) ( 9 ) ( 9 ) Amortization of loss 24 3,694 135 129 Settlement charges — 126,269 — — Total (income) expense, net $ ( 2,100 ) $ 131,077 $ 156 $ 150 (1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses. |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension (Income) Expense or Postretirement Expense | Net post-retirement expense for our other post-retirement plan includes the following components: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 26 20 78 63 Amortization of gain — — — — Total expense, net $ 26 $ 20 $ 78 $ 63 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Other Intangible Assets | Other intangible assets, net consist of the following components: As of September 30, 2022 Gross Accumulated Net Amount Customer lists/relationships $ 141,339 $ ( 54,569 ) $ 86,770 Technology and other intangibles 47,441 ( 28,004 ) 19,437 Other intangible assets, net $ 188,780 $ ( 82,573 ) $ 106,207 Amortization expense for the three months ended $ 3,262 Amortization expense for the nine months ended $ 8,179 As of December 31, 2021 Gross Accumulated Net Amount Customer lists/relationships $ 96,889 $ ( 49,213 ) $ 47,676 Technology and other intangibles 47,441 ( 25,229 ) 22,212 Other intangible assets, net $ 144,330 $ ( 74,442 ) $ 69,888 Amortization expense for the three months ended $ 2,348 Amortization expense for the nine months ended $ 7,065 |
Summary of Amortization Expense Remaining for Other Intangible Assets | Remaining amortization expense for other intangible assets as of September 30, 2022 is as follows: Amortization 2022 $ 3,316 2023 10,825 2024 10,663 2025 10,441 2026 10,407 Thereafter 60,555 Total amortization expense $ 106,207 |
Summary Changes in Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill were as follows: Total Goodwill as of December 31, 2021 $ 109,798 Increase from acquisitions 31,967 Foreign exchange impact ( 2,820 ) Goodwill as of September 30, 2022 $ 138,945 |
Costs Associated with Exit an_2
Costs Associated with Exit and Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Charges | Total restructuring charges are as follows: Three Months Ended September 30, 2022 September 30, 2021 Restructuring charges $ 492 $ 319 Nine Months Ended September 30, 2022 September 30, 2021 Restructuring charges $ 1,434 $ 551 |
Schedule of Restructuring Liability Activity | The following table displays the restructuring liability activity included in accrued expenses and other liabilities for all plans for the nine months ended September 30, 2022: Restructuring liability at January 1, 2022 $ 962 Restructuring charges 1,434 Cost paid ( 1,412 ) Restructuring liability at September 30, 2022 $ 984 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses and Other Liabilities | The components of accrued expenses and other liabilities are as follows: As of September 30, December 31, 2022 2021 Accrued product related costs $ 3,068 $ 3,188 Accrued income taxes 9,118 6,761 Accrued property and other taxes 1,916 2,370 Accrued professional fees 2,031 1,629 Accrued customer related liabilities 3,261 3,254 Dividends payable 1,274 1,289 Remediation reserves 10,635 10,979 Derivative liabilities — 437 Other accrued liabilities 4,438 6,811 Total accrued expenses and other liabilities $ 35,741 $ 36,718 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities | A roll-forward of remediation reserves included in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets is comprised of the following: As of September 30, December 31, 2022 2021 Balance at beginning of period $ 10,979 $ 10,642 Remediation expense 1,710 2,254 Net remediation payments ( 2,080 ) ( 1,929 ) Other activity (1) 26 12 Balance at end of the period $ 10,635 $ 10,979 (1) Other activity includes currency translation adjustments not recorded through remediation expense. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is comprised of the following: As of September 30, December 31, 2022 2021 Total credit facility $ 400,000 $ 400,000 Balance outstanding 85,478 50,000 Standby letters of credit 1,640 1,740 Amount available, subject to covenant restrictions $ 312,882 $ 348,260 Weighted-average interest rate 2.22 % 1.16 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Location and Fair Values of Derivative Instruments | The location and fair values of derivative instruments designated as hedging instruments in the Condensed Consolidated Balance Sheets as of September 30, 2022, are shown in the following table: As of September 30, December 31, 2022 2021 Interest rate swaps reported in Other current assets $ 1,258 $ — Interest rate swaps reported in Other assets $ 2,072 $ — Interest rate swaps reported in Accrued Expenses and other liabilities $ — $ ( 437 ) Interest rate swaps reported in Other long-term obligations $ — $ ( 353 ) Foreign currency hedges reported in Other current assets $ 789 $ 135 Net investment hedge reported in Other assets $ 1,675 $ — |
Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings | The effect of derivative instruments on the Condensed Consolidated Statements of Earnings is as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Foreign Exchange Contracts: Amounts reclassified from AOCI to earnings: Cost of goods sold 216 442 524 992 Total gain reclassified from AOCI to earnings 216 442 524 992 Total derivative gain on foreign exchange contracts recognized in earnings $ 216 $ 442 $ 524 $ 992 Interest Rate Swaps: Income (expense) recorded in Interest expense $ 79 $ ( 191 ) $ ( 194 ) $ ( 554 ) Cross-Currency Swap: Income (expense) recorded in Interest expense $ 175 $ — $ 175 $ — Total net gains on derivatives $ 470 $ 251 $ 505 $ 438 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss for the three months ended September 30, 2022 are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2022 in OCI to Earnings 2022 Changes in fair market value of derivatives: Gross $ 1,884 $ 2,539 $ ( 295 ) $ 4,128 Income tax benefit (expense) ( 431 ) ( 585 ) 68 ( 948 ) Net 1,453 1,954 ( 227 ) 3,180 Changes in unrealized pension cost: Gross ( 504 ) 161 ( 1,954 ) ( 2,297 ) Income tax benefit (expense) 674 ( 492 ) 450 632 Net 170 ( 331 ) ( 1,504 ) ( 1,665 ) Cumulative translation adjustment: Gross ( 4,293 ) ( 6,071 ) — ( 10,364 ) Income tax benefit (expense) — — — — Net ( 4,293 ) ( 6,071 ) — ( 10,364 ) Total accumulated other comprehensive (loss) income $ ( 2,670 ) $ ( 4,448 ) $ ( 1,731 ) $ ( 8,849 ) The components of accumulated other comprehensive loss for the three months ended September 30, 2021, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of June 30, Recognized from AOCI September 30, 2021 in OCI to Earnings 2021 Changes in fair market value of derivatives: Gross $ ( 529 ) $ ( 128 ) $ ( 251 ) $ ( 908 ) Income tax benefit (expense) 123 29 58 210 Net ( 406 ) ( 99 ) ( 193 ) ( 698 ) Changes in unrealized pension cost: Gross ( 104,052 ) ( 5,450 ) 106,622 ( 2,880 ) Income tax benefit (expense) 29,411 1,254 ( 29,896 ) 769 Net ( 74,641 ) ( 4,196 ) 76,726 ( 2,111 ) Cumulative translation adjustment: Gross ( 2,023 ) ( 10 ) — ( 2,033 ) Income tax benefit (expense) — — — — Net ( 2,023 ) ( 10 ) — ( 2,033 ) Total accumulated other comprehensive (loss) income $ ( 77,070 ) $ ( 4,305 ) $ 76,533 $ ( 4,842 ) The components of accumulated other comprehensive loss for the nine months ended September 30, 2022, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI September 30, 2021 in OCI to Earnings 2022 Changes in fair market value of derivatives: Gross $ ( 635 ) $ 5,093 ( 330 ) $ 4,128 Income tax benefit (expense) 147 ( 1,171 ) 76 ( 948 ) Net ( 488 ) 3,922 ( 254 ) 3,180 Changes in unrealized pension cost: Gross ( 2,744 ) 2,139 ( 1,692 ) ( 2,297 ) Income tax benefit (expense) 738 ( 492 ) 386 632 Net ( 2,006 ) 1,647 ( 1,306 ) ( 1,665 ) Cumulative translation adjustment: Gross ( 2,032 ) ( 8,332 ) — ( 10,364 ) Income tax benefit (expense) — — — — Net ( 2,032 ) ( 8,332 ) — ( 10,364 ) Total accumulated other comprehensive (loss) income $ ( 4,526 ) $ ( 2,763 ) $ ( 1,560 ) $ ( 8,849 ) The components of accumulated other comprehensive loss for the nine months ended September 30, 2021, are as follows: (Gain) Loss As of Gain (Loss) Reclassified As of December 31, Recognized from AOCI September 30, 2020 in OCI to Earnings 2021 Changes in fair market value of derivatives: Gross $ ( 1,038 ) $ 568 ( 438 ) $ ( 908 ) Income tax benefit (expense) 240 ( 131 ) 101 210 Net ( 798 ) 437 ( 337 ) ( 698 ) Changes in unrealized pension cost: Gross ( 128,004 ) ( 4,951 ) 130,075 ( 2,880 ) Income tax benefit (expense) 34,917 1,139 ( 35,287 ) 769 Net ( 93,087 ) ( 3,812 ) 94,788 ( 2,111 ) Cumulative translation adjustment: Gross ( 2,036 ) 3 — ( 2,033 ) Income tax benefit (expense) — — — — Net ( 2,036 ) 3 — ( 2,033 ) Total accumulated other comprehensive (loss) income $ ( 95,921 ) $ ( 3,372 ) $ 94,451 $ ( 4,842 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Summary of Share Count and Par Value Data Related to Shareholders' Equity | Share count and par value data related to shareholders’ equity are as follows: As of September 30, December 31, 2022 2021 Preferred Stock Par value per share No par value No par value Shares authorized 25,000,000 25,000,000 Shares outstanding — — Common Stock Par value per share No par value No par value Shares authorized 75,000,000 75,000,000 Shares issued 57,310,837 57,245,060 Shares outstanding 31,860,064 32,178,715 Treasury stock Shares held 25,450,773 25,066,345 |
Summary of Common Shares Outstanding | A roll-forward of common shares outstanding is as follows: Nine months ended September 30, September 30, 2022 2021 Balance at the beginning of the year 32,178,715 32,276,787 Repurchases ( 384,428 ) ( 148,035 ) Restricted share issuances 65,777 159,397 Balance at the end of the period 31,860,064 32,288,149 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Compensation Expense | The following table summarizes the compensation expense included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings related to stock-based compensation plans: Three months ended Nine months ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Service-based RSUs $ 766 $ 588 $ 2,134 $ 2,013 Performance and Market-based RSUs 1,338 383 3,379 1,942 Cash-settled RSUs 137 16 294 151 Total $ 2,241 $ 987 $ 5,807 $ 4,106 Income tax benefit 515 227 1,336 945 Net expense $ 1,726 $ 760 $ 4,471 $ 3,161 |
Summary of Unrecognized Compensation Expense related to Non-Vested RSUs | The following table summarizes the unrecognized compensation expense related to non-vested RSUs by type and the weighted-average period in which the expense is to be recognized: Unrecognized Compensation Weighted- Expense at Average September 30, 2022 Period (years) Service-based RSUs $ 2,013 1.41 Performance and Market-based RSUs 5,282 1.82 Total $ 7,295 1.70 |
Summary of Status of Plans | The following table summarizes the status of these plans as of September 30, 2022: 2018 Plan 2014 Plan 2009 Plan 2004 Plan Directors' Awards originally available 2,500,000 1,500,000 3,400,000 6,500,000 N/A Maximum potential awards outstanding 718,268 35,100 30,000 14,545 4,722 RSUs and cash-settled awards vested and released 249,742 — — — — Awards available for grant 1,531,990 — — — — |
Summary of Service-Based Restricted Stock Units | The following table summarizes the service-based RSU activity for the nine months ended September 30, 2022: Units Weighted Outstanding at December 31, 2021 283,216 $ 24.91 Granted 70,124 33.71 Vested and released ( 77,945 ) 26.71 Forfeited ( 7,838 ) 30.35 Outstanding at September 30, 2022 267,557 $ 26.54 Releasable at September 30, 2022 117,467 $ 18.29 |
Summary of Performance and Market Based RSUs | The following table summarizes the performance and market-based RSU activity for the nine months ended September 30, 2022: Units Weighted Outstanding at December 31, 2021 237,767 $ 31.35 Granted 83,602 37.08 Attained by performance 5,136 29.50 Released ( 51,848 ) 30.64 Forfeited ( 15,601 ) 31.83 Outstanding at September 30, 2022 259,056 $ 33.26 Releasable at September 30, 2022 — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below summarizes our financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2022: Asset (Liability) Carrying Quoted Prices Significant Significant Interest rate swaps $ 3,330 $ — $ 3,330 $ — Foreign currency hedges $ 789 $ — $ 789 $ — Cross-currency swap $ 1,675 $ — $ 1,675 $ — Qualified replacement plan assets $ 15,635 $ 15,635 $ — $ — Contingent consideration $ ( 300 ) $ — $ — $ ( 300 ) The table below summarizes the financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021: (Liability) Asset Carrying Quoted Prices Significant Significant Interest rate swaps $ ( 790 ) $ — $ ( 790 ) $ — Foreign currency hedges $ 135 $ — $ 135 $ — Contingent consideration $ ( 1,200 ) $ — $ — $ ( 1,200 ) |
Roll-forward of the Contingent Consideration | A roll-forward of the contingent consideration is as follows: Contingent Balance at December 31, 2021 $ 1,200 Settled in cash ( 900 ) Balance at September 30, 2022 in accrued expenses and other liabilities $ 300 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate | The effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Effective tax rate 31.8 % 28.9 % 25.6 % 32.5 % |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 151,911 | $ 122,382 | $ 444,588 | $ 380,394 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,377 | 62,342 | 232,200 | 209,750 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,857 | 36,356 | 125,267 | 98,433 |
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,380 | 12,409 | 49,277 | 36,487 |
Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 13,297 | $ 11,275 | $ 37,844 | $ 35,724 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Feb. 28, 2022 | Sep. 30, 2022 | |
TEWA Temperature Sennsors SP.Zo.o. | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares acquired | 100% | ||
Purchase price of fair values of assets and liabilities acquired | $ 24,485 | ||
Cash acquired from acquisition | 2,945 | ||
Inventory | 1,113 | ||
TEWA Temperature Sennsors SP.Zo.o. | Customer Lists/Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets provisional value | $ 12,503 | ||
Estimated weighted average amortization period | 12 years | ||
Ferroperm Piezoceramics A/S Acquisition | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares acquired | 100% | ||
Purchase price of fair values of assets and liabilities acquired | $ 72,043 | ||
Cash acquired from acquisition | 5,578 | ||
Inventory | 3,012 | ||
Intangible assets provisional value | $ 36,448 | ||
Estimated weighted average amortization period | 12 years | ||
Ferroperm Piezoceramics A/S Acquisition | Cost of Goods Sold | |||
Business Acquisition [Line Items] | |||
Non-cash charge | $ 2,229 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Consideration Paid and Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2021 |
Fair Values | ||||
Goodwill | $ 138,945 | $ 109,798 | ||
TEWA Temperature Sennsors SP.Zo.o. | ||||
Fair Values | ||||
Current assets | $ 5,650 | |||
Property, plant and equipment | 644 | |||
Other assets | 27 | |||
Goodwill | 7,669 | |||
Intangible assets | 12,503 | |||
Fair value of assets acquired | 26,493 | |||
Less fair value of liabilities acquired | (2,008) | |||
Purchase price | $ 24,485 | |||
Ferroperm Piezoceramics A/S Acquisition | ||||
Fair Values | ||||
Accounts Receivable | $ 3,073 | |||
Inventory | 6,848 | |||
Other current assets | 1,001 | |||
Property, plant and equipment | 3,953 | |||
Other assets | 158 | |||
Goodwill | 24,298 | |||
Intangible assets | 36,448 | |||
Fair value of assets acquired | 75,779 | |||
Less fair value of liabilities acquired | (3,736) | |||
Purchase price | $ 72,043 |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Accounts receivable, gross | $ 98,388 | $ 83,848 |
Less: Allowance for credit losses | (1,384) | (1,657) |
Accounts receivable, net | $ 97,004 | $ 82,191 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 13,539 | $ 11,955 |
Work-in-process | 22,328 | 18,878 |
Raw materials | 38,460 | 28,078 |
Less: Inventory reserves | (10,862) | (9,405) |
Inventories, net | $ 63,465 | $ 49,506 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: Accumulated depreciation | $ (230,497) | $ (221,541) |
Property, plant and equipment, net | 95,906 | 96,876 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 1,100 | 1,095 |
Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | 71,644 | 69,614 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment gross | $ 253,659 | $ 247,708 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information - (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 13,548 | $ 13,166 |
Retirement Plans - Net Pension
Retirement Plans - Net Pension Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net pension (income) expense | $ (2,076) | $ 107,447 | $ (1,944) | $ 131,227 |
Retirement Plans - Net Pensio_2
Retirement Plans - Net Pension Expense Domestic and Foreign (Details) - Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net pension expense (income) | ||||
Total (income) expense, net | $ (2,076) | $ 107,447 | $ (1,944) | $ 131,227 |
UNITED STATES | ||||
Net pension expense (income) | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 5 | 385 | 15 | 2,856 |
Expected return on plan assets | (2,139) | 429 | (2,139) | (1,742) |
Amortization of loss | 8 | 377 | 24 | 3,694 |
Settlement charges | 0 | 106,206 | 0 | 126,269 |
Total (income) expense, net | (2,126) | 107,397 | (2,100) | 131,077 |
Foreign Plan | ||||
Net pension expense (income) | ||||
Service cost | 6 | 6 | 18 | 18 |
Interest cost | 4 | 4 | 12 | 12 |
Expected return on plan assets | (3) | (3) | (9) | (9) |
Amortization of loss | 43 | 43 | 135 | 129 |
Settlement charges | 0 | 0 | 0 | 0 |
Total (income) expense, net | $ 50 | $ 50 | $ 156 | $ 150 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 01, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) Participant | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jul. 29, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Benefit obligations | $ 2,700 | |||||||
Remaining unrecognized pension losses reclassified in accumulated other comprehensive loss | $ 106,206 | |||||||
Defined benefit plan, plan assets transferred to (from) plan | $ 17,500 | $ 34,016 | ||||||
Defined benefit plan, plan assets transfer excise tax | 6,803 | |||||||
Prepaid pension asset | $ 5 | $ 5 | $ 49,382 | |||||
Defined contribution plan, investment percentage | 2% | |||||||
Defined Contribution Plan, Tax Status [Extensible Enumeration] | us-gaap:QualifiedPlanMember | |||||||
Pension Plans | UNITED STATES | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined benefit plan, termination process description | In February 2021, we received a determination letter from the Internal Revenue Service that allowed us to proceed with the termination process for the Plan. During the second quarter of 2021, the Company offered the option of receiving a lump sum payment to eligible participants with vested qualified Plan benefits in lieu of receiving monthly annuity payments. | |||||||
Number of participants elected to receive settlement | Participant | 365 | |||||||
Lump sum payments from plan assets | $ 35,594 | |||||||
Non-operating settlement charge | $ 20,063 |
Retirement Plans - Other Postre
Retirement Plans - Other Postretirement Benefit Plan (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 26 | 20 | 78 | 63 |
Amortization of gain | 0 | 0 | 0 | 0 |
Total (income) expense, net | $ 26 | $ 20 | $ 78 | $ 63 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | $ 188,780 | $ 188,780 | $ 144,330 | ||
Accumulated Amortization | (82,573) | (82,573) | (74,442) | ||
Net Amount | 106,207 | 106,207 | 69,888 | ||
Amortization expense | 3,262 | $ 2,348 | 8,179 | $ 7,065 | |
Customer Lists/Relationships | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 141,339 | 141,339 | 96,889 | ||
Accumulated Amortization | (54,569) | (54,569) | (49,213) | ||
Net Amount | 86,770 | 86,770 | 47,676 | ||
Technology and Other Intangibles | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Gross Carrying Amount | 47,441 | 47,441 | 47,441 | ||
Accumulated Amortization | (28,004) | (28,004) | (25,229) | ||
Net Amount | $ 19,437 | $ 19,437 | $ 22,212 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule | ||
2022 | $ 3,316 | |
2023 | 10,825 | |
2024 | 10,663 | |
2025 | 10,441 | |
2026 | 10,407 | |
Thereafter | 60,555 | |
Net Amount | $ 106,207 | $ 69,888 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary Changes in Net Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill Roll Forward | |
Beginning balance | $ 109,798 |
Increase from acquisitions | 31,967 |
Foreign exchange impact | (2,820) |
Ending balance | $ 138,945 |
Costs Associated with Exit an_3
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring charges | $ 492 | $ 319 | $ 1,434 | $ 551 |
Costs Associated with Exit an_4
Costs Associated with Exit and Restructuring Activities -Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 25 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | $ 492,000 | $ 319,000 | $ 1,434,000 | $ 551,000 | |||
Restructuring reserve | 984,000 | 984,000 | $ 984,000 | $ 962,000 | |||
Exit and Disposal Activities, Building and Equipment Relocation and Workforce Reduction | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | 252,000 | $ 319,000 | 1,034,000 | $ 582,000 | |||
Restructuring reserve | 588,000 | 588,000 | 588,000 | 962,000 | |||
September 2020 Plan | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring charges | 238,000 | 396,000 | 1,793,000 | ||||
Restructuring reserve | $ 396,000 | $ 396,000 | $ 396,000 | $ 0 | |||
September 2020 Plan | Minimum | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost of plan | $ 3,500,000 | ||||||
September 2020 Plan | Maximum | |||||||
Restructuring Cost And Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost of plan | $ 4,500,000 |
Costs Associated with Exit an_5
Costs Associated with Exit and Restructuring Activities - Schedule of Restructuring Liability Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring liability | $ 962 | |||
Restructuring charges | $ 492 | $ 319 | 1,434 | $ 551 |
Cost paid | (1,412) | |||
Restructuring liability | $ 984 | $ 984 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Components of Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | |||
Accrued product related costs | $ 3,068 | $ 3,188 | |
Accrued income taxes | 9,118 | 6,761 | |
Accrued property and other taxes | 1,916 | 2,370 | |
Accrued professional fees | 2,031 | 1,629 | |
Accrued customer related liabilities | 3,261 | 3,254 | |
Dividends payable | 1,274 | 1,289 | |
Remediation reserves | 10,635 | 10,979 | $ 10,642 |
Derivative liabilities | 0 | 437 | |
Other accrued liabilities | 4,438 | 6,811 | |
Total accrued expenses and other liabilities | $ 35,741 | $ 36,718 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 Site | |
U.S. Environmental Protection Agency | |
Loss Contingencies [Line Items] | |
Number of sites under National Priorities List of Superfund program | 2 |
Commitments and Contingencies_2
Commitments and Contingencies - Roll-forward of Remediation Reserves Included in Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of period | $ 10,979 | $ 10,642 |
Remediation expense | 1,710 | 2,254 |
Net remediation payments | (2,080) | (1,929) |
Other activity | 26 | 12 |
Balance at end of the period | $ 10,635 | $ 10,979 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 15, 2021 |
Long-term debt | |||
Total credit facility | $ 400,000,000 | $ 400,000,000 | |
Balance outstanding | 85,478,000 | 50,000,000 | |
Standby letters of credit | 1,640,000 | 1,740,000 | |
Amount available, subject to covenant restrictions | 312,882,000 | 348,260,000 | |
Revolving Credit Facility Due 2024 | |||
Long-term debt | |||
Total credit facility | $ 400,000,000 | ||
Balance outstanding | $ 85,478,000 | $ 50,000,000 | |
Weighted-average interest rate | 2.22% | 1.16% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Dec. 15, 2021 | May 23, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||
Debt amortization expense | $ 48,000 | $ 42,000 | $ 145,000 | $ 126,000 | |||
Revolving Credit Facility Due 2024 | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 400,000,000 | ||||||
Line of credit facility contingent increase to maximum borrowing capacity | $ 200,000,000 | ||||||
Maturity date | Dec. 15, 2026 | Feb. 12, 2024 | |||||
Revolving Credit Facility Due 2024 | Minimum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.175% | ||||||
Revolving Credit Facility Due 2024 | Maximum | |||||||
Line of Credit Facility | |||||||
Commitment fee percentage per annum | 0.25% | ||||||
Revolving Credit Facility | SOFR | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate | 0% | ||||||
Revolving Credit Facility | U S Dollar Denominated Debt | SOFR | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1% | ||||||
Revolving Credit Facility | U S Dollar Denominated Debt | SOFR | Maximum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1.75% | ||||||
Revolving Credit Facility | Foreign Currency Denominated Debt | SOFR | Minimum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1% | ||||||
Revolving Credit Facility | Foreign Currency Denominated Debt | SOFR | Maximum | |||||||
Line of Credit Facility | |||||||
Interest rate plus an applicable margin | 1.75% | ||||||
Revolving Credit Facility Due 2024 Swingline Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 20,000,000 | ||||||
Revolving Credit Facility Due 2024 Letter Of Credit Sublimit | |||||||
Line of Credit Facility | |||||||
Line of credit maximum borrowing amount | $ 20,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Jun. 27, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Derivative hedge, Ineffectiveness recognized | $ 0 | $ 0 | |||
Unrealized gain on foreign currency derivatives, net, before tax | 616,000 | ||||
Derivative liabilities | 0 | 0 | $ 437,000 | ||
Foreign Currency Derivatives | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 0 | 0 | |||
Cross Currency Interest Rate Swap Agreement | |||||
Derivative [Line Items] | |||||
Unrealized gain on foreign currency derivatives, net, before tax | 1,561,000 | ||||
Cross Currency Interest Rate Swap Agreement | Krone | |||||
Derivative [Line Items] | |||||
Variable Rate debt | $ 25,000,000 | ||||
Foreign Currency Forward Contracts | |||||
Derivative [Line Items] | |||||
Derivative asset | 789,000 | 789,000 | |||
Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative asset | 789,000 | 789,000 | 135,000 | ||
Designated As Net Investment Hedge | |||||
Derivative [Line Items] | |||||
Derivative asset | 1,675,000 | $ 1,675,000 | $ 0 | ||
Designated As Net Investment Hedge | Ferroperm Acquisition | |||||
Derivative [Line Items] | |||||
Derivative maturity date | Jun. 30, 2027 | ||||
Designated As Net Investment Hedge | Cross Currency Interest Rate Swap Agreement | Other Expense | |||||
Derivative [Line Items] | |||||
Gain (loss) on foreign currency derivatives | $ 111,000 | ||||
Designated As Hedging | Cash Flow Hedging | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | 50,000,000 | $ 50,000,000 | |||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | 968,000 | 968,000 | |||
Designated As Hedging | Cash Flow Hedging | Foreign Currency Forward Contracts | |||||
Derivative [Line Items] | |||||
Foreign currency cash flow hedge (loss) gain to be reclassified during next 12 months | 520,000 | 520,000 | |||
Derivative, notional amount | $ 14,701,000 | $ 14,701,000 | |||
Not Designated As Hedges | Ferroperm Acquisition | |||||
Derivative [Line Items] | |||||
Loss on derivative | $ 1,776,000 | ||||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Location and Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ (437) |
Cash Flow Hedging | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 789 | $ 135 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Net Investment Hedge | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 1,675 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Interest Rate Swap | Cash Flow Hedging | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | $ 1,258 | $ 0 |
Interest Rate Swap | Cash Flow Hedging | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative asset | 2,072 | 0 |
Interest Rate Swap | Cash Flow Hedging | Accrued Expenses and Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | 0 | (437) |
Interest Rate Swap | Cash Flow Hedging | Other Long-term Obligations | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ (353) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 470 | $ 251 | $ 505 | $ 438 |
Foreign Currency Derivatives | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain reclassified from AOCI to earnings | 216 | 442 | 524 | 992 |
Derivative, Gain on Derivative, Net | $ 216 | $ 442 | $ 524 | $ 992 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold | Cost of Goods and Services Sold |
Interest Rate Swap | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 79 | $ (191) | $ (194) | $ (554) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | Interest Expense |
Cross Currency Interest Rate Swap Agreement | Designated As Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative, Net | $ 175 | $ 175 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense | Interest Expense |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Foreign currency transaction loss | ||||
Foreign currency transaction losses | $ 451 | $ 1,011 | $ 3,980 | $ 1,412 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive (loss) income, beginning of period | $ (4,525) | |||
Total accumulated other comprehensive (loss) income, end of period | $ (8,849) | (8,849) | ||
Changes in Fair Market Value of Derivatives | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | 1,884 | $ (529) | (635) | $ (1,038) |
Gross, gain (loss) recognized in OCI | 2,539 | (128) | 5,093 | 568 |
Gross, gain (loss) reclassified from AOCI to earnings | (295) | (251) | (330) | (438) |
Gross, ending balance | 4,128 | (908) | 4,128 | (908) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | (431) | 123 | 147 | 240 |
Income tax benefit (expense), gain (loss) recognized in OCI | (585) | 29 | (1,171) | (131) |
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings | 68 | 58 | 76 | 101 |
Income tax benefit (expense), ending of period | (948) | 210 | (948) | 210 |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive (loss) income, beginning of period | 1,453 | (406) | (488) | (798) |
Gain (loss) recognized in OCI, net | 1,954 | (99) | 3,922 | 437 |
(Gain) Loss reclassified from AOCI to earnings, net | (227) | (193) | (254) | (337) |
Total accumulated other comprehensive (loss) income, end of period | 3,180 | (698) | 3,180 | (698) |
Changes in Unrealized Pension Cost | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (504) | (104,052) | (2,744) | (128,004) |
Gross, gain (loss) recognized in OCI | 161 | (5,450) | 2,139 | (4,951) |
Gross, gain (loss) reclassified from AOCI to earnings | (1,954) | 106,622 | (1,692) | 130,075 |
Gross, ending balance | (2,297) | (2,880) | (2,297) | (2,880) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 674 | 29,411 | 738 | 34,917 |
Income tax benefit (expense), gain (loss) recognized in OCI | (492) | 1,254 | (492) | 1,139 |
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings | 450 | (29,896) | 386 | (35,287) |
Income tax benefit (expense), ending of period | 632 | 769 | 632 | 769 |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive (loss) income, beginning of period | 170 | (74,641) | (2,006) | (93,087) |
Gain (loss) recognized in OCI, net | (331) | (4,196) | 1,647 | (3,812) |
(Gain) Loss reclassified from AOCI to earnings, net | (1,504) | 76,726 | (1,306) | 94,788 |
Total accumulated other comprehensive (loss) income, end of period | (1,665) | (2,111) | (1,665) | (2,111) |
Cumulative Translation Adjustment | ||||
Changes in AOCI, Gross | ||||
Gross, beginning of the period | (4,293) | (2,023) | (2,032) | (2,036) |
Gross, gain (loss) recognized in OCI | (6,071) | (10) | (8,332) | 3 |
Gross, gain (loss) reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Gross, ending balance | (10,364) | (2,033) | (10,364) | (2,033) |
Changes in AOCI, Income tax benefit (expense) | ||||
Income tax benefit (expense), beginning of period | 0 | 0 | 0 | 0 |
Income tax benefit (expense), gain (loss) recognized in OCI | 0 | 0 | 0 | 0 |
Income tax benefit (expense), gain (loss) reclassified from AOCI to earnings | 0 | 0 | 0 | 0 |
Income tax benefit (expense), ending of period | 0 | 0 | 0 | 0 |
Changes in AOCI, Net | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (4,293) | (2,023) | (2,032) | (2,036) |
Gain (loss) recognized in OCI, net | (6,071) | (10) | (8,332) | 3 |
(Gain) Loss reclassified from AOCI to earnings, net | 0 | 0 | 0 | 0 |
Total accumulated other comprehensive (loss) income, end of period | (10,364) | (2,033) | (10,364) | (2,033) |
Accumulated Other Comprehensive (Loss) Income | ||||
Changes in AOCI, Net | ||||
Total accumulated other comprehensive (loss) income, beginning of period | (2,670) | (77,070) | (4,526) | (95,921) |
Gain (loss) recognized in OCI, net | (4,448) | (4,305) | (2,763) | (3,372) |
(Gain) Loss reclassified from AOCI to earnings, net | (1,731) | 76,533 | (1,560) | 94,451 |
Total accumulated other comprehensive (loss) income, end of period | $ (8,849) | $ (4,842) | $ (8,849) | $ (4,842) |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Share Count and Par Value Data Related to Shareholders' Equity (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred Stock | ||||
Preferred stock, par value per share | ||||
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Common Stock | ||||
Common stock, par value per share | ||||
Common stock, shares authorized | 75,000,000 | 75,000,000 | ||
Common stock, shares issued | 57,310,837 | 57,245,060 | ||
Common stock, shares outstanding | 31,860,064 | 32,178,715 | 32,288,149 | 32,276,787 |
Treasury stock | ||||
Treasury stock, shares held | 25,450,773 | 25,066,345 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | May 13, 2021 | |
Equity Class Of Treasury Stock [Line Items] | |||||||
Common stock repurchased, shares | 52,000 | 216,252 | 116,176 | 148,035 | 384,428 | 148,035 | |
Common stock repurchased, value | $ 1,778,000 | $ 7,748,000 | $ 3,920,000 | $ 4,939,000 | $ 13,446,000 | $ 4,939,000 | |
Shares available for future purchases | $ 27,768,000 | $ 27,768,000 | |||||
Antidilutive securities excluded from computation of earnings per share (shares) | 393 | 462 | 950 | 1,029 | |||
Maximum | |||||||
Equity Class Of Treasury Stock [Line Items] | |||||||
Treasury shares authorized to be purchased | $ 50,000,000 |
Shareholders' Equity - Summar_2
Shareholders' Equity - Summary of Common Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Roll forward of common shares outstanding | ||||||
Balance at the beginning of the year | 32,178,715 | 32,178,715 | 32,276,787 | |||
Repurchases | (52,000) | (216,252) | (116,176) | (148,035) | (384,428) | (148,035) |
Restricted share issuances | 65,777 | 159,397 | ||||
Balance at the end of the period | 31,860,064 | 32,288,149 | 31,860,064 | 32,288,149 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | Sep. 30, 2022 USD ($) Plan shares | Dec. 31, 2021 USD ($) shares |
Share-based Compensation | ||
Number of equity based compensation plans | Plan | 5 | |
Other accrued liabilities | $ 4,438 | $ 6,811 |
Cash Settled Awards | ||
Share-based Compensation | ||
Outstanding shares | shares | 48,508 | 32,085 |
Other accrued liabilities | $ 437 | $ 400 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 5,807 | $ 4,106 | ||
Service-Based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 766 | $ 588 | 2,134 | 2,013 |
Performance and Market-based RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 1,338 | 383 | 3,379 | 1,942 |
Cash Settled Awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 137 | 16 | 294 | 151 |
RSUs | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 2,241 | 987 | 5,807 | 4,106 |
Income tax benefit | 515 | 227 | 1,336 | 945 |
Net expense | $ 1,726 | $ 760 | $ 4,471 | $ 3,161 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Unrecognized Compensation Expense related to Non-vested RSUs (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Service-Based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 2,013 |
Weighted-average period (years) | 1 year 4 months 28 days |
Performance and Market-based RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 5,282 |
Weighted-average period (years) | 1 year 9 months 25 days |
RSUs | |
Share-based Compensation | |
Unrecognized compensation expense | $ 7,295 |
Weighted-average period (years) | 1 year 8 months 12 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Status of Plans (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
2018 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 2,500,000 |
Maximum potential awards outstanding | 718,268 |
RSUs and cash settled awards vested and released | 249,742 |
Awards available for grant | 1,531,990 |
2014 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 1,500,000 |
Maximum potential awards outstanding | 35,100 |
2009 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 3,400,000 |
Maximum potential awards outstanding | 30,000 |
2004 Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Awards originally available | 6,500,000 |
Maximum potential awards outstanding | 14,545 |
Directors' Plan | |
Summary of Status of Equity-Based Compensation Plans | |
Maximum potential awards outstanding | 4,722 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Service-Based Restricted Stock Units (Details) - Service-Based RSUs | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Units | |
Outstanding at beginning of year - Units | shares | 283,216 |
Granted - Units | shares | 70,124 |
Vested and released - Units | shares | (77,945) |
Forfeited - Units | shares | (7,838) |
Outstanding at end of year - Units | shares | 267,557 |
Releasable - Units | shares | 117,467 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 24.91 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 33.71 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 26.71 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 30.35 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | 26.54 |
Releasable - Weighted Average Grant Date Fair Value | $ / shares | $ 18.29 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Performance-Based RSUs (Details) - Performance and Market-based Restricted Stock Units | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Units | |
Outstanding at beginning of year - Units | shares | 237,767 |
Granted - Units | shares | 83,602 |
Attained by performance - Units | shares | 5,136 |
Released - Units | shares | (51,848) |
Forfeited - Units | shares | (15,601) |
Outstanding at end of year - Units | shares | 259,056 |
Releasable - Units | shares | 0 |
Weighted Average Grant Date Fair Value | |
Beginning of year - Weighted Average Grant Date Fair Value | $ / shares | $ 31.35 |
Granted - Weighted Average Grant Date Fair Value | $ / shares | 37.08 |
Attained by performance - Weighted Average Grant Date Fair Value | $ / shares | 29.50 |
Vested and released - Weighted Average Grant Date Fair Value | $ / shares | 30.64 |
Forfeited - Weighted Average Grant Date Fair Value | $ / shares | 31.83 |
End of year - Weighted Average Grant Date Fair Value | $ / shares | 33.26 |
Releasable - Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial assets (liabilities), measured at fair value | ||
Derivative liabilities | $ 0 | $ (437) |
Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 789 | 135 |
Foreign Currency Forward Contracts | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 789 | |
Recurring | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Contingent consideration | (300) | (1,200) |
Qualified replacement plan assets | 15,635 | |
Recurring | Interest Rate Swaps | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 3,330 | |
Derivative liabilities | (790) | |
Recurring | Foreign Currency Forward Contracts | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 789 | 135 |
Recurring | Cross-currency Swap | Carrying Value | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 1,675 | |
Recurring | Quoted Prices in Active Markets for Identical (Level 1) | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Qualified replacement plan assets | 15,635 | |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 3,330 | |
Derivative liabilities | (790) | |
Recurring | Significant Other Observable Inputs (Level 2) | Foreign Currency Forward Contracts | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 789 | 135 |
Recurring | Significant Other Observable Inputs (Level 2) | Cross-currency Swap | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Derivative Asset | 1,675 | |
Recurring | Significant Unobservable Inputs (Level 3) | Designated As Hedging | Cash Flow Hedge | ||
Financial assets (liabilities), measured at fair value | ||
Contingent consideration | $ (300) | $ (1,200) |
Fair Value Measurements - Roll-
Fair Value Measurements - Roll-forward of the Contingent Consideration (Details) - Contingent Consideration $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2021 | $ 1,200 |
Settled in cash | (900) |
Balance at September 30, 2022 | $ 300 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 31.80% | 28.90% | 25.60% | 32.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 31.80% | 28.90% | 25.60% | 32.50% |